Rep. Chad Hays

Filed: 3/23/2017

 

 


 

 


 
10000HB2498ham001LRB100 03891 MJP 22700 a

1
AMENDMENT TO HOUSE BILL 2498

2    AMENDMENT NO. ______. Amend House Bill 2498 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 1.

 
5    Section 1-1. Short title. This Article may be cited as the
6Chicago Casino Development Authority Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-2. Legislative intent.
9    (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support the City's pension obligation in accordance with Public
14Act 99-506.
15    (b) While authorization of casino gambling in Chicago will

 

 

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1enhance investment, development, and tourism in Illinois, it is
2recognized that it will do so successfully only if public
3confidence and trust in the credibility and integrity of the
4gambling operations and the regulatory process is maintained.
5Therefore, the provisions of this Act are designed to allow the
6Illinois Gaming Board to strictly regulate the facilities,
7persons, associations, and practices related to gambling
8operations pursuant to the police powers of the State,
9including comprehensive law enforcement supervision.
10Consistent with the Gaming Board's authority, the Gaming Board
11alone shall regulate any Chicago casino, just as it now
12regulates every other casino in Illinois.
 
13    Section 1-5. Definitions. As used in this Act:
14    "Authority" means the Chicago Casino Development Authority
15created by this Act.
16    "Casino" means one temporary land-based or water-based
17facility and one permanent land-based or water-based facility
18at which lawful gambling is authorized and licensed as provided
19in the Illinois Gambling Act.
20    "Casino Board" means the board appointed pursuant to this
21Act to govern and control the Authority.
22    "Casino management contract" means a legally binding
23agreement between the Authority and a casino operator licensee
24to operate or manage a casino.
25    "Casino operator licensee" means any person or entity

 

 

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1selected by the Authority and approved and licensed by the
2Gaming Board to manage and operate a casino within the City of
3Chicago pursuant to a casino management contract.
4    "City" means the City of Chicago.
5    "Entity" means a corporation, joint venture, partnership,
6limited liability company, trust, or unincorporated
7association.
8    "Executive director" means the person appointed by the
9Casino Board to oversee the daily operations of the Authority.
10    "Gaming Board" means the Illinois Gaming Board created by
11the Illinois Gambling Act.
12    "Mayor" means the Mayor of the City.
 
13    Section 1-12. Creation of the Authority. There is hereby
14created a political subdivision, unit of local government with
15only the powers authorized by law, body politic, and municipal
16corporation, by the name and style of the Chicago Casino
17Development Authority.
 
18    Section 1-13. Duties of the Authority. It shall be the duty
19of the Authority, as an owners licensee under the Illinois
20Gambling Act, to promote and maintain a casino in the City. The
21Authority shall own, acquire, construct, lease, equip, and
22maintain grounds, buildings, and facilities for that purpose.
23However, the Authority shall contract with a casino operator
24licensee to manage and operate the casino and in no event shall

 

 

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1the Authority or City manage or operate the casino. The
2Authority may contract pursuant to the procedures set forth in
3Section 1-115 with other third parties in order to fulfill its
4purpose. The Authority is responsible for the payment of any
5fees required of a casino operator under subsection (a) of
6Section 7.9 of the Illinois Gambling Act if the casino operator
7licensee is late in paying any such fees. The Authority is
8granted all rights and powers necessary to perform such duties.
9Subject to the provisions of this Act, the Authority and casino
10operator licensee are subject to the Illinois Gambling Act and
11all of the rules of the Gaming Board, which shall be applied to
12the Authority and the casino operator licensee in a manner
13consistent with that of other owners licensees under the
14Illinois Gambling Act. Nothing in this Act shall confer
15regulatory authority on the Chicago Casino Development
16Authority. The Illinois Gaming Board shall have exclusive
17regulatory authority over all gambling operations governed by
18this Act.
 
19    Section 1-15. Casino Board.
20    (a) The governing and administrative powers of the
21Authority shall be vested in a body known as the Chicago Casino
22Development Board. The Casino Board shall consist of 5 members
23appointed by the Mayor. One of these members shall be
24designated by the Mayor to serve as chairperson. All of the
25members appointed by the Mayor shall be residents of the City.

 

 

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1    Each Casino Board appointee shall be subject to a
2preliminary background investigation completed by the Gaming
3Board within 30 days after the appointee's submission of his or
4her application to the Gaming Board. If the Gaming Board
5determines that there is a substantial likelihood that it will
6not find the appointee to be suitable to serve on the Casino
7Board (applying the same standards for suitability to the
8appointee as the Gaming Board would apply to an owners licensee
9key person under the Gaming Board's adopted rules), then the
10Gaming Board shall provide a written notice of such
11determination to the appointee and the Corporation Counsel of
12the City. The Mayor may then appoint a new candidate. If no
13such notice is delivered with respect to a particular
14appointee, then commencing on the 31st day following the date
15of the appointee's submission of his or her application to the
16Gaming Board, the appointee shall be deemed an acting member of
17the Casino Board and shall participate as a Casino Board
18member.
19    Each appointee shall be subject to a full background
20investigation and final approval by the Gaming Board prior to
21the opening of the casino. The Gaming Board shall complete its
22full background investigation of the Casino Board appointee
23within 3 months after the date of the appointee's submission of
24his or her application to the Gaming Board. If the Gaming Board
25does not complete its background investigation within the
263-month period, then the Gaming Board shall give a written

 

 

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1explanation to the appointee, as well as the Mayor, the
2Governor, the President of the Senate, and the Speaker of the
3House of Representatives, as to why it has not reached a final
4determination and set forth a reasonable time when such
5determination shall be made.
6    (b) Casino Board members shall receive $300 for each day
7the Authority meets and shall be entitled to reimbursement of
8reasonable expenses incurred in the performance of their
9official duties. A Casino Board member who serves in the office
10of secretary-treasurer may also receive compensation for
11services provided as that officer.
 
12    Section 1-20. Terms of appointments; resignation and
13removal.
14    (a) The Mayor shall appoint 2 members of the Casino Board
15for an initial term expiring July 1 of the year following final
16approval by the Gaming Board, 2 members for an initial term
17expiring July 1 three years following final approval by the
18Gaming Board, and one member for an initial term expiring July
191 five years following final approval by the Gaming Board.
20    (b) All successors shall be appointed by the Mayor to hold
21office for a term of 5 years from the first day of July of the
22year in which they are appointed, except in the case of an
23appointment to fill a vacancy. Each member, including the
24chairperson, shall hold office until the expiration of his or
25her term and until his or her successor is appointed and

 

 

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1qualified. Nothing shall preclude a member from serving
2consecutive terms. Any member may resign from office, to take
3effect when a successor has been appointed and qualified. A
4vacancy in office shall occur in the case of a member's death
5or indictment, conviction, or plea of guilty to a felony. A
6vacancy shall be filled for the unexpired term by the Mayor
7subject to the approval of the Gaming Board as provided in this
8Section.
9    (c) Members of the Casino Board shall serve at the pleasure
10of the Mayor. The Mayor or the Gaming Board may remove any
11member of the Casino Board upon a finding of incompetence,
12neglect of duty, or misfeasance or malfeasance in office or for
13a violation of this Act. The Gaming Board may remove any member
14of the Casino Board for any violation of the Illinois Gambling
15Act or the rules and regulations of the Gaming Board.
16    (d) No member of the Casino Board shall engage in any
17political activity. For the purpose of this Section, "political
18activity" means any activity in support of or in connection
19with any campaign for federal, State, or local elective office
20or any political organization, but does not include activities
21(i) relating to the support or opposition of any executive,
22legislative, or administrative action, as those terms are
23defined in Section 2 of the Lobbyist Registration Act, (ii)
24relating to collective bargaining, or (iii) that are otherwise
25in furtherance of the person's official duties or governmental
26and public service functions.
 

 

 

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1    Section 1-25. Organization of Casino Board; meetings.
2After appointment by the Mayor, the Casino Board shall organize
3for the transaction of business, provided that the Casino Board
4shall not take any formal action until after the Gaming Board
5has completed its preliminary background investigation of at
6least a quorum of the Casino Board as provided in subsection
7(a) of Section 1-15. The Casino Board shall prescribe the time
8and place for meetings, the manner in which special meetings
9may be called, and the notice that must be given to members.
10All actions and meetings of the Casino Board shall be subject
11to the provisions of the Open Meetings Act. Three members of
12the Casino Board shall constitute a quorum. All substantive
13action of the Casino Board shall be by resolution with an
14affirmative vote of a majority of the members.
 
15    Section 1-30. Executive director; officers.
16    (a) The Casino Board shall appoint an executive director,
17who shall be the chief executive officer of the Authority.
18    The executive director shall be subject to a preliminary
19background investigation to be completed by the Gaming Board
20within 30 days after the executive director's submission of his
21or her application to the Gaming Board. If the Gaming Board
22determines that there is a substantial likelihood that it will
23not find the executive director to be suitable to serve in that
24position (applying the same standards for suitability as the

 

 

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1Gaming Board would apply to an owners licensee key person under
2the Gaming Board's adopted rules), then the Gaming Board shall
3provide a written notice of such determination to the appointee
4and the Corporation Counsel of the City. The Casino Board may
5then appoint a new executive director. If no such notice is
6delivered, then commencing on the 31st day following the date
7of the executive director's submission of his or her
8application to the Gaming Board, the executive director shall
9commence all duties as the acting executive director of the
10Authority.
11    The executive director shall be subject to a full
12background investigation and final approval by the Gaming Board
13prior to the opening of the casino. The Gaming Board shall
14complete its full background investigation of the executive
15director within 3 months after the date of the executive
16director's submission of his or her application to the Gaming
17Board. If the Gaming Board does not complete its background
18investigation within the 3-month period, then the Gaming Board
19shall give a written explanation to the appointee, as well as
20the Mayor, the Governor, the President of the Senate, and the
21Speaker of the House of Representatives, as to why it has not
22reached a final determination and set forth a reasonable time
23when such determination shall be made.
24    (b) The Casino Board shall fix the compensation of the
25executive director. Subject to the general control of the
26Casino Board, the executive director shall be responsible for

 

 

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1the management of the business, properties, and employees of
2the Authority. The executive director shall direct the
3enforcement of all resolutions, rules, and regulations of the
4Casino Board, and shall perform such other duties as may be
5prescribed from time to time by the Casino Board. All employees
6and independent contractors, consultants, engineers,
7architects, accountants, attorneys, financial experts,
8construction experts and personnel, superintendents, managers,
9and other personnel appointed or employed pursuant to this Act
10shall report to the executive director. In addition to any
11other duties set forth in this Act, the executive director
12shall do or shall delegate to an employee or agent of the
13Authority to do all of the following:
14        (1) Direct and supervise the administrative affairs
15    and activities of the Authority in accordance with its
16    rules, regulations, and policies.
17        (2) Attend meetings of the Casino Board.
18        (3) Keep minutes of all proceedings of the Casino
19    Board.
20        (4) Approve all accounts for salaries, per diem
21    payments, and allowable expenses of the Casino Board and
22    its employees and consultants.
23        (5) Report and make recommendations to the Casino Board
24    concerning the terms and conditions of any casino
25    management contract.
26        (6) Perform any other duty that the Casino Board

 

 

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1    requires for carrying out the provisions of this Act.
2        (7) Devote his or her full time to the duties of the
3    office and not hold any other office or employment.
4    (c) The Casino Board may select a secretary-treasurer and
5other officers to hold office at the pleasure of the Casino
6Board. The Casino Board shall fix the duties of such officers.
 
7    Section 1-31. General rights and powers of the Authority.
8    (a) In addition to the duties and powers set forth in this
9Act, the Authority shall have the following rights and powers:
10        (1) Adopt and alter an official seal.
11        (2) Establish and change its fiscal year.
12        (3) Sue and be sued, plead and be impleaded, all in its
13    own name, and agree to binding arbitration of any dispute
14    to which it is a party.
15        (4) Adopt, amend, and repeal bylaws, rules, and
16    regulations consistent with the furtherance of the powers
17    and duties provided for.
18        (5) Maintain its principal office within the City and
19    such other offices as the Casino Board may designate.
20        (6) Select locations in the City for a temporary and a
21    permanent casino.
22        (7) Subject to the bidding procedures of Section 1-115
23    of this Act, retain or employ, either as regular employees
24    or independent contractors, consultants, engineers,
25    architects, accountants, attorneys, financial experts,

 

 

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1    construction experts and personnel, superintendents,
2    managers and other professional personnel, and such other
3    personnel as may be necessary in the judgment of the Casino
4    Board, and fix their compensation; however, employees of
5    the Authority shall be hired pursuant to and in accordance
6    with the rules and policies the Authority may adopt.
7        (8) Pursuant to Section 1-115 of this Act, own,
8    acquire, construct, equip, lease, operate, manage, and
9    maintain grounds, buildings, and facilities to carry out
10    its corporate purposes and duties.
11        (9) Pursuant to Section 1-115, and subject to the
12    oversight, review, and approval of the Gaming Board, enter
13    into, revoke, and modify contracts in accordance with the
14    rules of the Gaming Board as consistently applied to all
15    owners licensees under the Illinois Gambling Act, provided
16    that the Authority may enter into contracts for the design,
17    construction, and outfitting of a temporary casino prior to
18    the Gaming Board's final approval of the Authority's
19    executive director and the members of the Casino Board and
20    prior to the Gaming Board's issuance of the Authority's
21    owners license. Provided further that the entities
22    selected by the Authority for the design, construction, and
23    outfitting of the temporary casino shall be subject to a
24    preliminary background investigation to be completed by
25    the Gaming Board within 30 days after the Gaming Board is
26    provided the identities of the entities. If the Gaming

 

 

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1    Board determines that there is a substantial likelihood
2    that the entities are not suitable or acceptable to perform
3    their respective functions, then the Gaming Board shall
4    immediately provide notice of that determination to the
5    Authority. If no such notice is delivered, then, commencing
6    on the 31st day following the date on which the information
7    identifying such entities is provided to the Gaming Board,
8    such entities shall be permitted to commence the services
9    contemplated for the design, construction, and outfitting
10    of the temporary casino. In no event, however, shall the
11    Authority open a casino until after the Gaming Board has
12    finally approved the Authority's executive director and
13    the members of the Casino Board and the Gaming Board has
14    issued the Authority's owners license and the casino
15    operator's casino operator license.
16        (10) Enter into a casino management contract subject to
17    the provisions of Section 1-45 of this Act.
18        (11) Negotiate and enter into intergovernmental
19    agreements with the State and its agencies, the City, and
20    other units of local government, in furtherance of the
21    powers and duties of the Casino Board.
22        (12) Receive and disburse funds for its own corporate
23    purposes or as otherwise specified in this Act.
24        (13) Borrow money from any source, public or private,
25    for any corporate purpose, including, without limitation,
26    working capital for its operations, reserve funds, or

 

 

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1    payment of interest, and to mortgage, pledge, or otherwise
2    encumber the property or funds of the Authority and to
3    contract with or engage the services of any person in
4    connection with any financing, including financial
5    institutions, issuers of letters of credit, or insurers and
6    enter into reimbursement agreements with this person or
7    entity which may be secured as if money were borrowed from
8    the person or entity.
9        (14) Issue bonds as provided for under this Act.
10        (15) Receive and accept from any source, private or
11    public, contributions, gifts, or grants of money or
12    property to the Authority.
13        (16) Provide for the insurance of any property,
14    operations, officers, members, agents, or employees of the
15    Authority against any risk or hazard, to self-insure or
16    participate in joint self-insurance pools or entities to
17    insure against such risk or hazard, and to provide for the
18    indemnification of its officers, members, employees,
19    contractors, or agents against any and all risks.
20        (17) Exercise all the corporate powers granted
21    Illinois corporations under the Business Corporation Act
22    of 1983, except to the extent that powers are inconsistent
23    with those of a body politic and municipal corporation.
24        (18) Do all things necessary or convenient to carry out
25    the powers granted by this Act.
26    (b) The Casino Board shall comply with all applicable legal

 

 

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1requirements imposed on other owners licensees to conduct all
2background investigations required under the Illinois Gambling
3Act and the rules of the Gaming Board. This requirement shall
4also extend to senior legal, financial, and administrative
5staff of the Authority.
 
6    Section 1-32. Ethical conduct.
7    (a) Casino Board members and employees of the Authority
8must carry out their duties and responsibilities in such a
9manner as to promote and preserve public trust and confidence
10in the integrity and conduct of gaming.
11    (b) Except as may be required in the conduct of official
12duties, Casino Board members and employees of the Authority
13shall not engage in gambling on any riverboat, in any casino,
14or in an electronic gaming facility licensed by the Illinois
15Gaming Board or engage in legalized gambling in any
16establishment identified by Gaming Board action that, in the
17judgment of the Gaming Board, could represent a potential for a
18conflict of interest.
19    (c) A Casino Board member or employee of the Authority
20shall not use or attempt to use his or her official position to
21secure or attempt to secure any privilege, advantage, favor, or
22influence for himself or herself or others.
23    (d) Casino Board members and employees of the Authority
24shall not hold or pursue employment, office, position,
25business, or occupation that may conflict with his or her

 

 

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1official duties. Employees may engage in other gainful
2employment so long as that employment does not interfere or
3conflict with their duties. Such employment must be disclosed
4to the executive director and approved by the Casino Board.
5    (e) Casino Board members, employees of the Authority, and
6elected officials and employees of the City may not engage in
7employment, communications, or any activity identified by the
8Casino Board or Gaming Board that, in the judgment of either
9entity, could represent the potential for or the appearance of
10a conflict of interest.
11    (f) Casino Board members, employees of the Authority, and
12elected officials and employees of the City may not have a
13financial interest, directly or indirectly, in his or her own
14name or in the name of any other person, partnership,
15association, trust, corporation, or other entity in any
16contract or subcontract for the performance of any work for the
17Authority. This prohibition shall extend to the holding or
18acquisition of an interest in any entity identified by the
19Casino Board or the Gaming Board that, in the judgment of
20either entity, could represent the potential for or the
21appearance of a financial interest. The holding or acquisition
22of an interest in such entities through an indirect means, such
23as through a mutual fund, shall not be prohibited, except that
24the Gaming Board may identify specific investments or funds
25that, in its judgment, are so influenced by gaming holdings as
26to represent the potential for or the appearance of a conflict

 

 

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1of interest.
2    (g) Casino Board members, employees of the Authority, and
3elected officials and employees of the City may not accept any
4gift, gratuity, service, compensation, travel, lodging, or
5thing of value, with the exception of unsolicited items of an
6incidental nature, from any person, corporation, or entity
7doing business with the Authority.
8    (h) No Casino Board member, employee of the Authority, or
9elected official or employee of the City may, during employment
10or within a period of 2 years immediately after termination of
11employment, knowingly accept employment or receive
12compensation or fees for services from a person or entity, or
13its parent or affiliate, that has engaged in business with the
14Authority that resulted in contracts with an aggregate value of
15at least $25,000 or if that Casino Board member or employee has
16made a decision that directly applied to the person or entity,
17or its parent or affiliate.
18    (i) A spouse, child, or parent of a Casino Board member,
19employee of the Authority, or elected official or employee of
20the City may not have a financial interest, directly or
21indirectly, in his or her own name or in the name of any other
22person, partnership, association, trust, corporation, or other
23entity in any contract or subcontract for the performance of
24any work for the Authority. This prohibition shall extend to
25the holding or acquisition of an interest in any entity
26identified by the Casino Board or Gaming Board that, in the

 

 

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1judgment of either entity, could represent the potential for or
2the appearance of a conflict of interest. The holding or
3acquisition of an interest in such entities through an indirect
4means, such as through a mutual fund, shall not be prohibited,
5except that the Gaming Board may identify specific investments
6or funds that, in its judgment, are so influenced by gaming
7holdings as to represent the potential for or the appearance of
8a conflict of interest.
9    (j) A spouse, child, or parent of a Casino Board member,
10employee of the Authority, or elected official or employee of
11the City may not accept any gift, gratuity, service,
12compensation, travel, lodging, or thing of value, with the
13exception of unsolicited items of an incidental nature, from
14any person, corporation, or entity doing business with the
15Authority.
16    (k) A spouse, child, or parent of a Casino Board member,
17employee of the Authority, or elected official or employee of
18the City may not, while the person is a Board member or
19employee of the spouse or within a period of 2 years
20immediately after termination of employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity, or its parent or affiliate, that has engaged
23in business with the Authority that resulted in contracts with
24an aggregate value of at least $25,000 or if that Casino Board
25member, employee, or elected official or employee of the City
26has made a decision that directly applied to the person or

 

 

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1entity, or its parent or affiliate.
2    (l) No Casino Board member, employee of the Authority, or
3elected official or employee of the City may attempt, in any
4way, to influence any person or entity doing business with the
5Authority or any officer, agent, or employee thereof to hire or
6contract with any person or entity for any compensated work.
7    (m) No Casino Board member, employee of the Authority, or
8elected official or employee of the City shall use or attempt
9to use his or her official position to secure, or attempt to
10secure, any privilege, advantage, favor, or influence for
11himself or herself or others. No Casino Board member, employee
12of the Authority, or elected official or employee of the City
13shall, within one year immediately preceding appointment by the
14Mayor or employment, have been employed or received
15compensation or fees for services from a person or entity, or
16its parent or affiliate, that has engaged in business with the
17Casino Board, a licensee under this Act, or a licensee under
18the Illinois Gambling Act.
19    (n) Any communication between an elected official of the
20City and any applicant for or party to a casino management
21contract with the Authority, or an officer, director, or
22employee thereof, concerning any matter relating in any way to
23gaming or the Authority shall be disclosed to the Casino Board
24and the Gaming Board. Such disclosure shall be in writing by
25the official within 30 days after the communication and shall
26be filed with the Casino Board and the Gaming Board. Disclosure

 

 

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1must consist of the date of the communication, the identity and
2job title of the person with whom the communication was made, a
3brief summary of the communication, the action requested or
4recommended, all responses made, the identity and job title of
5the person making the response, and any other pertinent
6information. In addition, if the communication is written or
7digital, then the entire communication shall be disclosed.
8    Public disclosure of the written summary provided to the
9Casino Board and the Gaming Board shall be subject to the
10exemptions provided under Section 7 of the Freedom of
11Information Act.
12    This subsection (n) shall not apply to communications
13regarding traffic, law enforcement, security, environmental
14issues, City services, transportation, or other routine
15matters concerning the ordinary operations of the casino.
16    (o) For purposes of this Section:
17    "Ordinary operations" means operations relating to the
18casino facility other than the conduct of gambling activities.
19    "Routine matters" includes the application for, issuance,
20renewal, and other processes associated with City permits and
21licenses.
22    "Employee of the City" means only those employees of the
23City who provide services to the Authority or otherwise
24influence the decisions of the Authority or the Casino Board.
25    (p) Any Casino Board member or employee of the Authority
26who violates any provision of this Section is guilty of a Class

 

 

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14 felony.
 
2    Section 1-45. Casino management contracts.
3    (a) In accordance with all applicable procurement laws and
4rules, the Casino Board shall develop and administer a
5competitive sealed bidding process for the selection of a
6potential casino operator licensee to develop or operate a
7casino within the City. The Casino Board shall issue one or
8more requests for proposals. The Casino Board may establish
9minimum financial and investment requirements to determine the
10eligibility of persons to respond to the Casino Board's
11requests for proposals, and may establish and consider such
12other criteria as it deems appropriate. The Casino Board may
13impose a reasonable fee upon persons who respond to requests
14for proposals, in order to reimburse the Casino Board for its
15costs in preparing and issuing the requests and reviewing the
16proposals. At least 30 days prior to the commencement of the
17competitive bidding process, the Gaming Board shall be given an
18opportunity to review the competitive bidding process
19established by the Casino Board. During the competitive bidding
20process, the Casino Board shall keep the Gaming Board apprised
21of the process and the responses received in connection with
22the Casino Board's requests for proposals.
23    (b) Within 5 business days after the time limit for
24submitting bids and proposals has passed, the Casino Board
25shall make all bids and proposals public, provided, however,

 

 

10000HB2498ham001- 22 -LRB100 03891 MJP 22700 a

1the Casino Board shall not be required to disclose any
2information which would be exempt from disclosure under Section
37 of the Freedom of Information Act. Thereafter, the Casino
4Board shall evaluate the responses to its requests for
5proposals and the ability of all persons or entities responding
6to its requests for proposals to meet the requirements of this
7Act and any relevant provisions of the Illinois Gambling Act
8and to undertake and perform the obligations set forth in its
9requests for proposals.
10    (c) After reviewing proposals and selecting a successful
11bidder, the Casino Board shall enter into a casino management
12contract with the successful bidder authorizing the operation
13of a casino. The casino operator shall be subject to a
14background investigation and approval by the Gaming Board. The
15Gaming Board shall complete its background investigation and
16approval of the casino operator within 6 months after the date
17that the proposed casino operator submits its application to
18the Gaming Board. If the Gaming Board does not complete its
19background investigation and approval within the 6-month
20period, then the Gaming Board shall give a written explanation
21to the proposed casino operator and the chief legal officer of
22the Authority as to why it has not reached a final
23determination and when it reasonably expects to make a final
24determination. Validity of the casino management contract is
25contingent upon the issuance of a casino operator license to
26the successful bidder. If the Gaming Board grants a casino

 

 

10000HB2498ham001- 23 -LRB100 03891 MJP 22700 a

1operator license, the Casino Board shall transmit a copy of the
2executed casino management contract to the Gaming Board.
3    (d) After (1) the Authority has been issued an owners
4license, (2) the Gaming Board has issued a casino operator
5license, and (3) the Gaming Board has approved the members of
6the Casino Board, the Authority may conduct gaming operations
7at a temporary facility, subject to the adopted rules of the
8Gaming Board, for no longer than 24 months after gaming
9operations begin. The Gaming Board may, after holding a public
10hearing, grant an extension so long as a permanent facility is
11not operational and the Authority is working in good faith to
12complete the permanent facility. The Gaming Board may grant
13additional extensions following further public hearings. Each
14extension may be for a period of no longer than 6 months.
15    (e) Fifty percent of any initial consideration received by
16the Authority that was paid as an inducement pursuant to a bid
17for a casino management contract or an executed casino
18management contract must be transmitted to the State and
19deposited into the Gaming Facilities Fee Revenue Fund. The
20initial consideration shall not include (1) any amounts paid to
21the Authority as reimbursement for its costs in preparing or
22issuing the requests for proposals and reviewing the proposals
23or (2) any amounts loaned to the Authority or paid by an entity
24on behalf of the Authority for the design, construction,
25outfitting, or equipping of the casino, pre-opening expenses,
26bank roll or similar expenses required to open and operate the

 

 

10000HB2498ham001- 24 -LRB100 03891 MJP 22700 a

1casino, or any license or per position fees imposed pursuant to
2the Illinois Gambling Act or any other financial obligation of
3the Authority.
 
4    Section 1-47. Freedom of Information Act. The Authority
5shall be a public body as defined in the Freedom of Information
6Act and shall be subject to the provisions of the Freedom of
7Information Act.
 
8    Section 1-50. Transfer of funds. The revenues received by
9the Authority (other than amounts required to be paid pursuant
10to the Illinois Gambling Act and amounts required to pay the
11operating expenses of the Authority, to pay amounts due the
12casino operator licensee pursuant to a casino management
13contract, to repay any borrowing of the Authority made pursuant
14to Section 1-31, to pay debt service on any bonds issued under
15Section 1-75, and to pay any expenses in connection with the
16issuance of such bonds pursuant to Section 1-75 or derivative
17products pursuant to Section 1-85) shall be transferred to the
18City by the Authority. Moneys transferred to the City pursuant
19to this Section shall be expended or obligated by the City for
20pension payments in accordance with Public Act 99-506.
 
21    Section 1-60. Auditor General.
22    (a) Prior to the issuance of bonds under this Act, the
23Authority shall submit to the Auditor General a certification

 

 

10000HB2498ham001- 25 -LRB100 03891 MJP 22700 a

1that:
2        (1) it is legally authorized to issue bonds;
3        (2) scheduled annual payments of principal and
4    interest on the bonds to be issued meet the requirements of
5    Section 1-75 of this Act;
6        (3) no bond shall mature later than 30 years; and
7        (4) after payment of costs of issuance and necessary
8    deposits to funds and accounts established with respect to
9    debt service on the bonds, the net bond proceeds (exclusive
10    of any proceeds to be used to refund outstanding bonds)
11    will be used only for the purposes set forth in this Act.
12    The Authority also shall submit to the Auditor General its
13projections on revenues to be generated and pledged to
14repayment of the bonds as scheduled and such other information
15as the Auditor General may reasonably request.
16    The Auditor General shall examine the certifications and
17information submitted and submit a report to the Authority and
18the Gaming Board indicating whether the required
19certifications, projections, and other information have been
20submitted by the Authority and whether the assumptions
21underlying the projections are not unreasonable in the
22aggregate. The Auditor General shall submit the report no later
23than 60 days after receiving the information required to be
24submitted by the Authority.
25    The Auditor General shall submit a bill to the Authority
26for costs associated with the examinations and report required

 

 

10000HB2498ham001- 26 -LRB100 03891 MJP 22700 a

1under this Section. The Authority shall reimburse in a timely
2manner.
3    (b) The Authority shall enter into an intergovernmental
4agreement with the Auditor General authorizing the Auditor
5General to, every 2 years, (i) review the financial audit of
6the Authority performed by the Authority's certified public
7accountants, (ii) perform a management audit of the Authority,
8and (iii) perform a management audit of the casino operator
9licensee. The Auditor General shall provide the Authority and
10the General Assembly with the audits and shall post on his or
11her Internet website such portions of the audit or other
12financial information as generally would be made publicly
13available for other owners licensees under the Illinois
14Gambling Act. The Auditor General shall submit a bill to the
15Authority for costs associated with the review and the audit
16required under this Section, which costs shall not exceed
17$100,000, and the Authority shall reimburse the Auditor General
18for such costs in a timely manner.
 
19    Section 1-62. Advisory committee. An Advisory Committee is
20established to monitor, review, and report on (1) the
21Authority's utilization of minority-owned business enterprises
22and female-owned business enterprises, (2) employment of
23females, and (3) employment of minorities with regard to the
24development and construction of the casino as authorized under
25Section 7 of the Illinois Gambling Act. The Authority shall

 

 

10000HB2498ham001- 27 -LRB100 03891 MJP 22700 a

1work with the Advisory Committee in accumulating necessary
2information for the Committee to submit reports, as necessary,
3to the General Assembly and to the City.
4    The Committee shall consist of 9 members as provided in
5this Section. Five members shall be selected by the Governor
6and 4 members shall be selected by the Mayor. The Governor and
7Mayor shall each appoint at least one current member of the
8General Assembly. The Advisory Committee shall meet
9periodically and shall report the information to the Mayor of
10the City and to the General Assembly by December 31st of every
11year.
12    The Advisory Committee shall be dissolved on the date that
13casino gambling operations are first conducted at a permanent
14facility under the license authorized under Section 7 of the
15Illinois Gambling Act. For the purposes of this Section, the
16terms "female" and "minority person" have the meanings provided
17in Section 2 of the Business Enterprise for Minorities,
18Females, and Persons with Disabilities Act.
 
19    Section 1-65. Acquisition of property; eminent domain
20proceedings. For the lawful purposes of this Act, the City may
21acquire, by eminent domain or by condemnation proceedings in
22the manner provided by the Eminent Domain Act, real or personal
23property or interests in real or personal property located in
24the City, and the City may convey to the Authority property so
25acquired. The acquisition of property under this Section is

 

 

10000HB2498ham001- 28 -LRB100 03891 MJP 22700 a

1declared to be for a public use.
 
2    Section 1-70. Local regulation. In addition to this Act,
3the Illinois Gambling Act, and all of the rules of the Gaming
4Board, the casino facilities and operations therein shall be
5subject to all ordinances and regulations of the City. The
6construction, development, and operation of the casino shall
7comply with all ordinances, regulations, rules, and controls of
8the City, including, but not limited to, those relating to
9zoning and planned development, building, fire prevention, and
10land use. However, the regulation of gaming operations is
11subject to the exclusive jurisdiction of the Gaming Board. The
12Gaming Board shall be responsible for the investigation for and
13issuance of all licenses required by this Act and the Illinois
14Gambling Act.
 
15    Section 1-75. Borrowing.
16    (a) The Authority may borrow money and issue bonds as
17provided in this Section. Bonds of the Authority may be issued
18to provide funds for land acquisition, site assembly and
19preparation, and the design and construction of the casino, as
20defined in the Illinois Gambling Act, all ancillary and related
21facilities comprising the casino complex, and all on-site and
22off-site infrastructure improvements required in connection
23with the development of the casino; to refund (at the time or
24in advance of any maturity or redemption) or redeem any bonds

 

 

10000HB2498ham001- 29 -LRB100 03891 MJP 22700 a

1of the Authority; to provide or increase a debt service reserve
2fund or other reserves with respect to any or all of its bonds;
3or to pay the legal, financial, administrative, bond insurance,
4credit enhancement, and other legal expenses of the
5authorization, issuance, or delivery of bonds. In this Act, the
6term "bonds" also includes notes of any kind, interim
7certificates, refunding bonds, or any other evidence of
8obligation for borrowed money issued under this Section. Bonds
9may be issued in one or more series and may be payable and
10secured either on a parity with or separately from other bonds.
11    (b) The bonds of the Authority shall be payable from one or
12more of the following sources: (i) the property or revenues of
13the Authority; (ii) revenues derived from the casino; (iii)
14revenues derived from any casino operator licensee; (iv) fees,
15bid proceeds, charges, lease payments, payments required
16pursuant to any casino management contract or other revenues
17payable to the Authority, or any receipts of the Authority; (v)
18payments by financial institutions, insurance companies, or
19others pursuant to letters or lines of credit, policies of
20insurance, or purchase agreements; (vi) investment earnings
21from funds or accounts maintained pursuant to a bond resolution
22or trust indenture; (vii) proceeds of refunding bonds; (viii)
23any other revenues derived from or payments by the City; and
24(ix) any payments by any casino operator licensee or others
25pursuant to any guaranty agreement.
26    (c) Bonds shall be authorized by a resolution of the

 

 

10000HB2498ham001- 30 -LRB100 03891 MJP 22700 a

1Authority and may be secured by a trust indenture by and
2between the Authority and a corporate trustee or trustees,
3which may be any trust company or bank having the powers of a
4trust company within or without the State. Bonds shall meet the
5following requirements:
6        (1) Bonds may bear interest payable at any time or
7    times and at any rate or rates, notwithstanding any other
8    provision of law to the contrary, and may be subject to
9    such other terms and conditions as may be provided by the
10    resolution or indenture authorizing the issuance of such
11    bonds.
12        (2) Bonds issued pursuant to this Section may be
13    payable on such dates and times as may be provided for by
14    the resolution or indenture authorizing the issuance of
15    such bonds; provided, however, that such bonds shall mature
16    no later than 30 years from the date of issuance.
17        (3) Bonds issued pursuant to this Section may be sold
18    pursuant to notice of sale and public bid or by negotiated
19    sale.
20        (4) Bonds shall be payable at a time or times, in the
21    denominations and form, including book entry form, either
22    coupon, registered, or both, and carry the registration and
23    privileges as to exchange, transfer or conversion, and
24    replacement of mutilated, lost, or destroyed bonds as the
25    resolution or trust indenture may provide.
26        (5) Bonds shall be payable in lawful money of the

 

 

10000HB2498ham001- 31 -LRB100 03891 MJP 22700 a

1    United States at a designated place.
2        (6) Bonds shall be subject to the terms of purchase,
3    payment, redemption, refunding, or refinancing that the
4    resolution or trust indenture provides.
5        (7) Bonds shall be executed by the manual or facsimile
6    signatures of the officers of the Authority designated by
7    the Board, which signatures shall be valid at delivery even
8    for one who has ceased to hold office.
9        (8) Bonds shall be sold at public or private sale in
10    the manner and upon the terms determined by the Authority.
11        (9) Bonds shall be issued in accordance with the
12    provisions of the Local Government Debt Reform Act.
13    (d) The Authority shall adopt a procurement program with
14respect to contracts relating to underwriters, bond counsel,
15financial advisors, and accountants. The program shall include
16goals for the payment of not less than 30% of the total dollar
17value of the fees from these contracts to minority-owned
18businesses and female-owned businesses as defined in the
19Business Enterprise for Minorities, Females, and Persons with
20Disabilities Act. The Authority shall conduct outreach to
21minority-owned businesses and female-owned businesses.
22Outreach shall include, but is not limited to, advertisements
23in periodicals and newspapers, mailings, and other appropriate
24media. The Authority shall submit to the General Assembly a
25comprehensive report that shall include, at a minimum, the
26details of the procurement plan, outreach efforts, and the

 

 

10000HB2498ham001- 32 -LRB100 03891 MJP 22700 a

1results of the efforts to achieve goals for the payment of
2fees.
3    (e) Subject to the Illinois Gambling Act and rules of the
4Gaming Board regarding pledging of interests in holders of
5owners licenses, any resolution or trust indenture may contain
6provisions that may be a part of the contract with the holders
7of the bonds as to the following:
8        (1) Pledging, assigning, or directing the use,
9    investment, or disposition of revenues of the Authority or
10    proceeds or benefits of any contract, including without
11    limitation any rights in any casino management contract.
12        (2) The setting aside of loan funding deposits, debt
13    service reserves, replacement or operating reserves, cost
14    of issuance accounts and sinking funds, and the regulation,
15    investment, and disposition thereof.
16        (3) Limitations on the purposes to which or the
17    investments in which the proceeds of sale of any issue of
18    bonds or the Authority's revenues and receipts may be
19    applied or made.
20        (4) Limitations on the issue of additional bonds, the
21    terms upon which additional bonds may be issued and
22    secured, the terms upon which additional bonds may rank on
23    a parity with, or be subordinate or superior to, other
24    bonds.
25        (5) The refunding, advance refunding, or refinancing
26    of outstanding bonds.

 

 

10000HB2498ham001- 33 -LRB100 03891 MJP 22700 a

1        (6) The procedure, if any, by which the terms of any
2    contract with bondholders may be altered or amended and the
3    amount of bonds and holders of which must consent thereto
4    and the manner in which consent shall be given.
5        (7) Defining the acts or omissions that shall
6    constitute a default in the duties of the Authority to
7    holders of bonds and providing the rights or remedies of
8    such holders in the event of a default, which may include
9    provisions restricting individual rights of action by
10    bondholders.
11        (8) Providing for guarantees, pledges of property,
12    letters of credit, or other security, or insurance for the
13    benefit of bondholders.
14    (f) No member of the Casino Board, nor any person executing
15the bonds, shall be liable personally on the bonds or subject
16to any personal liability by reason of the issuance of the
17bonds.
18    (g) The Authority may issue and secure bonds in accordance
19with the provisions of the Local Government Credit Enhancement
20Act.
21    (h) A pledge by the Authority of revenues and receipts as
22security for an issue of bonds or for the performance of its
23obligations under any casino management contract shall be valid
24and binding from the time when the pledge is made. The revenues
25and receipts pledged shall immediately be subject to the lien
26of the pledge without any physical delivery or further act, and

 

 

10000HB2498ham001- 34 -LRB100 03891 MJP 22700 a

1the lien of any pledge shall be valid and binding against any
2person having any claim of any kind in tort, contract, or
3otherwise against the Authority, irrespective of whether the
4person has notice. No resolution, trust indenture, management
5agreement or financing statement, continuation statement, or
6other instrument adopted or entered into by the Authority need
7be filed or recorded in any public record other than the
8records of the Authority in order to perfect the lien against
9third persons, regardless of any contrary provision of law.
10    (i) Bonds that are being paid or retired by issuance, sale,
11or delivery of bonds, and bonds for which sufficient funds have
12been deposited with the paying agent or trustee to provide for
13payment of principal and interest thereon, and any redemption
14premium, as provided in the authorizing resolution, shall not
15be considered outstanding for the purposes of this subsection.
16    (j) The bonds of the Authority shall not be indebtedness of
17the State. The bonds of the Authority are not general
18obligations of the State and are not secured by a pledge of the
19full faith and credit of the State and the holders of bonds of
20the Authority may not require the application of State revenues
21or funds to the payment of bonds of the Authority. The
22foregoing non-recourse language must be printed in bold-face
23type on the face of the bonds and in the preliminary and final
24official statements on the bonds.
25    (k) The State of Illinois pledges and agrees with the
26owners of the bonds that it will not limit or alter the rights

 

 

10000HB2498ham001- 35 -LRB100 03891 MJP 22700 a

1and powers vested in the Authority by this Act so as to impair
2the terms of any contract made by the Authority with the owners
3or in any way impair the rights and remedies of the owners
4until the bonds, together with interest on them, and all costs
5and expenses in connection with any action or proceedings by or
6on behalf of the owners, are fully met and discharged. The
7Authority is authorized to include this pledge and agreement in
8any contract with the owners of bonds issued under this
9Section.
10    (l) No person holding an elective office in the City, in
11Cook County, or in this State, holding a seat in the General
12Assembly, or serving as a board member, trustee, officer, or
13employee of the Authority, including the spouse of that person,
14may receive a legal, banking, consulting, or other fee related
15to the issuance of bonds. This prohibition shall also apply to
16a company or firm that employs a person holding an elective
17office in the City, in Cook County, or in this State, holding a
18seat in the General Assembly, or serving as a board member,
19trustee, officer, or employee of the Authority, including the
20spouse of that person, if the person or his or her spouse has
21greater than 7.5% ownership of the company or firm.
 
22    Section 1-85. Derivative products. With respect to all or
23part of any issue of its bonds, the Authority may enter into
24agreements or contracts with any necessary or appropriate
25person, which will have the benefit of providing to the

 

 

10000HB2498ham001- 36 -LRB100 03891 MJP 22700 a

1Authority an interest rate basis, cash flow basis, or other
2basis different from that provided in the bonds for the payment
3of interest. Such agreements or contracts may include, without
4limitation, agreements or contracts commonly known as
5"interest rate swap agreements", "forward payment conversion
6agreements", "futures", "options", "puts", or "calls" and
7agreements or contracts providing for payments based on levels
8of or changes in interest rates, agreements or contracts to
9exchange cash flows or a series of payments, or to hedge
10payment, rate spread, or similar exposure. Any such agreement
11or contract shall be solely an obligation or indebtedness of
12the Authority and shall not be an obligation or indebtedness of
13the State, nor shall any party thereto have any recourse
14against the State in connection with the agreement or contract.
 
15    Section 1-90. Legality for investment. The State of
16Illinois, all governmental entities, all public officers,
17banks, bankers, trust companies, savings banks and
18institutions, building and loan associations, savings and loan
19associations, investment companies, and other persons carrying
20on a banking business, insurance companies, insurance
21associations, and other persons carrying on an insurance
22business, and all executors, administrators, guardians,
23trustees, and other fiduciaries may legally invest any sinking
24funds, moneys, or other funds belonging to them or within their
25control in any bonds issued under this Act. However, nothing in

 

 

10000HB2498ham001- 37 -LRB100 03891 MJP 22700 a

1this Section shall be construed as relieving any person or
2entity from any duty of exercising reasonable care in selecting
3securities for purchase or investment.
 
4    Section 1-105. Budgets and reporting.
5    (a) The Casino Board shall annually adopt a budget for each
6fiscal year. The budget may be modified from time to time in
7the same manner and upon the same vote as it may be adopted.
8The budget shall include the Authority's available funds and
9estimated revenues and shall provide for payment of its
10obligations and estimated expenditures for the fiscal year,
11including, without limitation, expenditures for
12administration, operation, maintenance and repairs, debt
13service, and deposits into reserve and other funds and capital
14projects.
15    (b) The Casino Board shall annually cause the finances of
16the Authority to be audited by a firm of certified public
17accountants selected by the Casino Board in accordance with the
18rules of the Gaming Board and post on the Authority's Internet
19website such financial information as is required to be posted
20by all other owners licensees under the Illinois Gambling Act.
21    (c) The Casino Board shall, for each fiscal year, prepare
22an annual report setting forth information concerning its
23activities in the fiscal year and the status of the development
24of the casino. The annual report shall include financial
25information of the Authority consistent with that which is

 

 

10000HB2498ham001- 38 -LRB100 03891 MJP 22700 a

1required for all other owners licensees under the Illinois
2Gambling Act, the budget for the succeeding fiscal year, and
3the current capital plan as of the date of the report. Copies
4of the annual report shall be made available to persons who
5request them and shall be submitted not later than 120 days
6after the end of the Authority's fiscal year or, if the audit
7of the Authority's financial statements is not completed within
8120 days after the end of the Authority's fiscal year, as soon
9as practical after completion of the audit, to the Governor,
10the Mayor, the General Assembly, and the Commission on
11Government Forecasting and Accountability.
 
12    Section 1-110. Deposit and withdrawal of funds.
13    (a) All funds deposited by the Authority in any bank or
14savings and loan association shall be placed in the name of the
15Authority and shall be withdrawn or paid out only by check or
16draft upon the bank or savings and loan association, signed by
172 officers or employees designated by the Casino Board.
18Notwithstanding any other provision of this Section, the Casino
19Board may designate any of its members or any officer or
20employee of the Authority to authorize the wire transfer of
21funds deposited by the secretary-treasurer of funds in a bank
22or savings and loan association for the payment of payroll and
23employee benefits-related expenses.
24    No bank or savings and loan association shall receive
25public funds as permitted by this Section unless it has

 

 

10000HB2498ham001- 39 -LRB100 03891 MJP 22700 a

1complied with the requirements established pursuant to Section
26 of the Public Funds Investment Act.
3    (b) If any officer or employee whose signature appears upon
4any check or draft issued pursuant to this Act ceases (after
5attaching his signature) to hold his or her office before the
6delivery of such a check or draft to the payee, his or her
7signature shall nevertheless be valid and sufficient for all
8purposes with the same effect as if he or she had remained in
9office until delivery thereof.
 
10    Section 1-112. Contracts with the Authority or casino
11operator licensee; disclosure requirements.
12    (a) A bidder, respondent, offeror, or contractor for
13contracts with the Authority or casino operator licensee shall
14disclose the identity of all officers and directors and every
15owner, beneficiary, or person with beneficial interest of more
16than 1% or shareholder entitled to receive more than 1% of the
17total distributable income of any corporation having any
18interest in the contract or in the bidder, respondent, offeror,
19or contractor. The disclosure shall be in writing and attested
20to by an owner, trustee, corporate official, or agent. If stock
21in a corporation is publicly traded and there is no readily
22known individual having greater than a 1% interest, then a
23statement to that effect attested to by an officer or agent of
24the corporation shall fulfill the disclosure statement
25requirement of this Section. A bidder, respondent, offeror, or

 

 

10000HB2498ham001- 40 -LRB100 03891 MJP 22700 a

1contractor shall notify the Authority of any changes in
2officers, directors, ownership, or individuals having a
3beneficial interest of more than 1%. Notwithstanding the
4provisions of this subsection (a), the Gaming Board may adopt
5rules in connection with contractors for contracts with the
6Authority or the casino operator licensee.
7    (b) A bidder, respondent, offeror, or contractor for
8contracts with an annual value of $25,000 or more or for a
9period to exceed one year shall disclose all political
10contributions of the bidder, respondent, offeror, or
11contractor and any affiliated person or entity. Disclosure
12shall include at least the names and addresses of the
13contributors and the dollar amounts of any contributions to any
14political committee made within the previous 2 years. The
15disclosure must be submitted to the Gaming Board with a copy of
16the contract. All such disclosures shall be posted on the
17websites of the Authority and the Gaming Board.
18    (c) As used in this Section:
19    "Contribution" means contribution as defined in Section
209-1.4 of the Election Code.
21    "Affiliated person" means (i) any person with any ownership
22interest or distributive share of the bidding, responding, or
23contracting entity in excess of 1%, (ii) executive employees of
24the bidding, responding, or contracting entity, and (iii) the
25spouse, minor children, and parents of any such persons.
26    "Affiliated entity" means (i) any parent or subsidiary of

 

 

10000HB2498ham001- 41 -LRB100 03891 MJP 22700 a

1the bidding or contracting entity, (ii) any member of the same
2unitary business group, or (iii) any political committee for
3which the bidding, responding, or contracting entity is the
4sponsoring entity.
5    (d) The Gaming Board may direct the Authority or a casino
6operator licensee to void a contract if a violation of this
7Section occurs. The Authority may direct a casino operator
8licensee to void a contract if a violation of this Section
9occurs.
10    (e) All contracts pertaining to the actual operation of the
11casino and related gaming activities shall be entered into by
12the casino operator licensee and not the Authority and shall be
13subject to the regulation, oversight, and approval of the
14Gaming Board, applying the same regulation, oversight, and
15approval requirements as would be applied to any other owners
16licensee under the Illinois Gambling Act.
 
17    Section 1-115. Purchasing.
18    (a) The Casino Board shall designate an officer of the
19Authority to serve as the Chief Procurement Officer for the
20Authority. The Chief Procurement Officer shall have all powers
21and duties set forth in Section 15 of Division 10 of Article 8
22of the Illinois Municipal Code. Except as otherwise provided in
23this Section, the Chief Procurement Officer of the Authority
24shall conduct procurements on behalf of the Authority subject
25to Title 2, Chapter 92 of the Municipal Code of Chicago, which

 

 

10000HB2498ham001- 42 -LRB100 03891 MJP 22700 a

1by its terms incorporates Division 10 of Article 8 of the
2Illinois Municipal Code.
3    (b) All contracts for amounts greater than $25,000 must be
4approved by the Casino Board and executed by the chairperson of
5the Casino Board and executive director of the Authority.
6Contracts for amounts of $25,000 or less may be approved and
7executed by the Chief Procurement Officer for the Authority and
8executive director of the Authority, with approval by the chief
9legal counsel for the Authority as to form and legality.
10    (c) All construction contracts and contracts for supplies,
11materials, equipment, and services for amounts greater than
12$25,000 shall be let by a competitive selection process to the
13lowest responsible proposer, after advertising for proposals,
14except for the following:
15        (1) when repair parts, accessories, equipment, or
16    services are required for equipment or services previously
17    furnished or contracted for;
18        (2) when services such as water, light, heat, power,
19    telephone (other than long-distance service), or telegraph
20    are required;
21        (3) casino management contracts, which shall be
22    awarded as set forth in Section 1-45 of this Act;
23        (4) contracts where there is only one economically
24    feasible source;
25        (5) when a purchase is needed on an immediate,
26    emergency basis because there exists a threat to public

 

 

10000HB2498ham001- 43 -LRB100 03891 MJP 22700 a

1    health or public safety, or when immediate expenditure is
2    necessary for repairs to Authority property in order to
3    protect against further loss of or damage to Authority
4    property, to prevent or minimize serious disruption in
5    Authority services or to ensure the integrity of Authority
6    records;
7        (6) contracts for professional services other than for
8    management of the casino, except such contracts described
9    in subsection (d) of this Section; and
10        (7) contracts for the use, purchase, delivery,
11    movement, or installation of (i) data processing
12    equipment, software, and services and (ii)
13    telecommunications equipment, software, and services.
14    (d) Contracts for professional services for a term of more
15than one year or contracts that may require payment in excess
16of $25,000 in one year shall be let by a competitive bidding
17process to the most highly qualified firm that agrees to
18compensation and other terms of engagement that are both
19reasonable and acceptable to the Casino Board.
20    (e) All contracts involving less than $25,000 shall be let
21by competitive selection process whenever possible, and in any
22event in a manner calculated to ensure the best interests of
23the public.
24    (f) In determining the responsibility of any proposer, the
25Authority may take into account the proposer's (or an
26individual having a beneficial interest, directly or

 

 

10000HB2498ham001- 44 -LRB100 03891 MJP 22700 a

1indirectly, of more than 1% in such proposing entity) past
2record of dealings with the Authority, the proposer's
3experience, adequacy of equipment, and ability to complete
4performance within the time set, and other factors besides
5financial responsibility. No such contract shall be awarded to
6any proposer other than the lowest proposer (in case of
7purchase or expenditure) unless authorized or approved by a
8vote of at least 3 members of the Casino Board and such action
9is accompanied by a written statement setting forth the reasons
10for not awarding the contract to the highest or lowest
11proposer, as the case may be. The statement shall be kept on
12file in the principal office of the Authority and open to
13public inspection.
14    (g) The Authority shall have the right to reject all
15proposals and to re-advertise for proposals. If after any such
16re-advertisement, no responsible and satisfactory proposals,
17within the terms of the re-advertisement, is received, the
18Authority may award such contract without competitive
19selection. The contract must not be less advantageous to the
20Authority than any valid proposal received pursuant to
21advertisement.
22    (h) Advertisements for proposals and re-proposals shall be
23published at least once in a daily newspaper of general
24circulation published in the City at least 10 calendar days
25before the time for receiving proposals and in an online
26bulletin published on the Authority's website. Such

 

 

10000HB2498ham001- 45 -LRB100 03891 MJP 22700 a

1advertisements shall state the time and place for receiving and
2opening of proposals and, by reference to plans and
3specifications on file at the time of the first publication or
4in the advertisement itself, shall describe the character of
5the proposed contract in sufficient detail to fully advise
6prospective proposers of their obligations and to ensure free
7and open competitive selection.
8    (i) All proposals in response to advertisements shall be
9sealed and shall be publicly opened by the Authority. All
10proposers shall be entitled to be present in person or by
11representatives. Cash or a certified or satisfactory cashier's
12check, as a deposit of good faith, in a reasonable amount to be
13fixed by the Authority before advertising for proposals, shall
14be required with the proposal. A bond for faithful performance
15of the contract with surety or sureties satisfactory to the
16Authority and adequate insurance may be required in reasonable
17amounts to be fixed by the Authority before advertising for
18proposals.
19    (j) The contract shall be awarded as promptly as possible
20after the opening of proposals. The proposal of the successful
21proposer, as well as the bids of the unsuccessful proposers,
22shall be placed on file and be open to public inspection
23subject to the exemptions from disclosure provided under
24Section 7 of the Freedom of Information Act. All proposals
25shall be void if any disclosure of the terms of any proposals
26in response to an advertisement is made or permitted to be made

 

 

10000HB2498ham001- 46 -LRB100 03891 MJP 22700 a

1by the Authority before the time fixed for opening proposals.
2    (k) Notice of each and every contract that is offered,
3including renegotiated contracts and change orders, shall be
4published in an online bulletin. The online bulletin must
5include at least the date first offered, the date submission of
6offers is due, the location that offers are to be submitted to,
7a brief purchase description, the method of source selection,
8information of how to obtain a comprehensive purchase
9description and any disclosure and contract forms, and
10encouragement to prospective vendors to hire qualified
11veterans, as defined by Section 45-67 of the Illinois
12Procurement Code, and Illinois residents discharged from any
13Illinois adult correctional center subject to Gaming Board
14licensing and eligibility rules. Notice of each and every
15contract that is let or awarded, including renegotiated
16contracts and change orders, shall be published in the online
17bulletin and must include at least all of the information
18specified in this subsection (k), as well as the name of the
19successful responsible proposer or offeror, the contract
20price, and the number of unsuccessful responsive proposers and
21any other disclosure specified in this Section. This notice
22must be posted in the online electronic bulletin prior to
23execution of the contract.
 
24    Section 1-130. Affirmative action and equal opportunity
25obligations of Authority.

 

 

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1    (a) The Authority is subject to the requirements of Article
2IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
3inclusive) of the Chicago Municipal Code, as now or hereafter
4amended, renumbered, or succeeded, concerning a Minority-Owned
5and Women-Owned Business Enterprise Procurement Program for
6construction contracts, and Section 2-92-420 et seq. of the
7Chicago Municipal Code, as now or hereafter amended,
8renumbered, or succeeded, concerning a Minority-Owned and
9Women-Owned Business Enterprise Procurement Program.
10    (b) The Authority is authorized to enter into agreements
11with contractors' associations, labor unions, and the
12contractors working on the development of the casino to
13establish an apprenticeship preparedness training program to
14provide for an increase in the number of minority and female
15journeymen and apprentices in the building trades and to enter
16into agreements with community college districts or other
17public or private institutions to provide readiness training.
18The Authority is further authorized to enter into contracts
19with public and private educational institutions and persons in
20the gaming, entertainment, hospitality, and tourism industries
21to provide training for employment in those industries.
 
22    Section 1-135. Transfer of interest. Neither the Authority
23nor the City may sell, lease, rent, transfer, exchange, or
24otherwise convey any interest that they have in the casino
25without prior approval of the General Assembly.
 

 

 

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1    Section 1-140. Home rule. The regulation and licensing of
2casinos and casino gaming, casino gaming facilities, and casino
3operator licensees under this Act are exclusive powers and
4functions of the State. A home rule unit may not regulate or
5license casinos, casino gaming, casino gaming facilities, or
6casino operator licensees under this Act, except as provided
7under this Act. This Section is a denial and limitation of home
8rule powers and functions under subsection (h) of Section 6 of
9Article VII of the Illinois Constitution.
 
10
ARTICLE 90.

 
11    Section 90-1. Findings. The General Assembly makes all of
12the following findings:
13        (1) That the cumulative reduction to pre-K through 12
14    education funding since 2009 is approximately
15    $861,000,000.
16        (2) That general state aid to Illinois common schools
17    has been underfunded as a result of budget cuts, resulting
18    in pro-rated payments to school districts that are less
19    than the foundational level of $6,119 per pupil, which
20    represents the minimum each pupil needs to be educated.
21        (3) That a significant infusion of new revenue is
22    necessary in order to fully fund the foundation level and
23    to maintain and support education in Illinois.

 

 

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1        (4) That the decline of the Illinois horse racing and
2    breeding program, a $2.5 billion industry, would be
3    reversed if this amendatory Act of the 100th General
4    Assembly would be enacted.
5        (5) That the Illinois horse racing industry is on the
6    verge of extinction due to fierce competition from fully
7    developed horse racing and gaming operations in other
8    states.
9        (6) That allowing the State's horse racing venues,
10    currently licensed gaming destinations, to maximize their
11    capacities with gaming machines, would generate up to $120
12    million to $200 million for the State in the form of extra
13    licensing fees, plus an additional $100 million to $300
14    million in recurring annual tax revenue for the State to
15    help ensure that school, road, and other building projects
16    promised under the capital plan occur on schedule.
17        (7) That Illinois agriculture and other businesses
18    that support and supply the horse racing industry, already
19    a sector that employs over 37,000 Illinoisans, also stand
20    to substantially benefit and would be much more likely to
21    create additional jobs should Illinois horse racing once
22    again become competitive with other states.
23        (8) That by keeping these projects on track, the State
24    can be sure that significant job and economic growth will
25    in fact result from the previously enacted legislation.
26        (9) That gaming machines at Illinois horse racing

 

 

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1    tracks would create an estimated 1,200 to 1,500 permanent
2    jobs, and an estimated capital investment of up to $200
3    million to $400 million at these race tracks would prompt
4    additional trade organization jobs necessary to construct
5    new facilities or remodel race tracks to operate electronic
6    gaming.
 
7    Section 90-3. The State Officials and Employees Ethics Act
8is amended by changing Sections 5-45 and 20-10 as follows:
 
9    (5 ILCS 430/5-45)
10    Sec. 5-45. Procurement; revolving door prohibition.
11    (a) No former officer, member, or State employee, or spouse
12or immediate family member living with such person, shall,
13within a period of one year immediately after termination of
14State employment, knowingly accept employment or receive
15compensation or fees for services from a person or entity if
16the officer, member, or State employee, during the year
17immediately preceding termination of State employment,
18participated personally and substantially in the award of State
19contracts, or the issuance of State contract change orders,
20with a cumulative value of $25,000 or more to the person or
21entity, or its parent or subsidiary.
22    (b) No former officer of the executive branch or State
23employee of the executive branch with regulatory or licensing
24authority, or spouse or immediate family member living with

 

 

10000HB2498ham001- 51 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 52 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 53 -LRB100 03891 MJP 22700 a

1policies required by subsection (c), such Inspector General
2shall make a determination as to whether the State employee is
3restricted from accepting such employment by subsection (a) or
4(b). In making a determination, in addition to any other
5relevant information, an Inspector General shall assess the
6effect of the prospective employment or relationship upon
7decisions referred to in subsections (a) and (b), based on the
8totality of the participation by the former officer, member, or
9State employee in those decisions. A determination by an
10Inspector General must be in writing, signed and dated by the
11Inspector General, and delivered to the subject of the
12determination within 10 calendar days or the person is deemed
13eligible for the employment opportunity. For purposes of this
14subsection, "appropriate Inspector General" means (i) for
15members and employees of the legislative branch, the
16Legislative Inspector General; (ii) for the Auditor General and
17employees of the Office of the Auditor General, the Inspector
18General provided for in Section 30-5 of this Act; and (iii) for
19executive branch officers and employees, the Inspector General
20having jurisdiction over the officer or employee. Notice of any
21determination of an Inspector General and of any such appeal
22shall be given to the ultimate jurisdictional authority, the
23Attorney General, and the Executive Ethics Commission.
24    (g) An Inspector General's determination regarding
25restrictions under subsection (a) or (b) may be appealed to the
26appropriate Ethics Commission by the person subject to the

 

 

10000HB2498ham001- 54 -LRB100 03891 MJP 22700 a

1decision or the Attorney General no later than the 10th
2calendar day after the date of the determination.
3    On appeal, the Ethics Commission or Auditor General shall
4seek, accept, and consider written public comments regarding a
5determination. In deciding whether to uphold an Inspector
6General's determination, the appropriate Ethics Commission or
7Auditor General shall assess, in addition to any other relevant
8information, the effect of the prospective employment or
9relationship upon the decisions referred to in subsections (a)
10and (b), based on the totality of the participation by the
11former officer, member, or State employee in those decisions.
12The Ethics Commission shall decide whether to uphold an
13Inspector General's determination within 10 calendar days or
14the person is deemed eligible for the employment opportunity.
15    (h) The following officers, members, or State employees
16shall not, within a period of one year immediately after
17termination of office or State employment, knowingly accept
18employment or receive compensation or fees for services from a
19person or entity if the person or entity or its parent or
20subsidiary, during the year immediately preceding termination
21of State employment, was a party to a State contract or
22contracts with a cumulative value of $25,000 or more involving
23the officer, member, or State employee's State agency, or was
24the subject of a regulatory or licensing decision involving the
25officer, member, or State employee's State agency, regardless
26of whether he or she participated personally and substantially

 

 

10000HB2498ham001- 55 -LRB100 03891 MJP 22700 a

1in the award of the State contract or contracts or the making
2of the regulatory or licensing decision in question:
3        (1) members or officers;
4        (2) members of a commission or board created by the
5    Illinois Constitution;
6        (3) persons whose appointment to office is subject to
7    the advice and consent of the Senate;
8        (4) the head of a department, commission, board,
9    division, bureau, authority, or other administrative unit
10    within the government of this State;
11        (5) chief procurement officers, State purchasing
12    officers, and their designees whose duties are directly
13    related to State procurement; and
14        (6) chiefs of staff, deputy chiefs of staff, associate
15    chiefs of staff, assistant chiefs of staff, and deputy
16    governors; .
17        (7) employees of the Illinois Racing Board; and
18        (8) employees of the Illinois Gaming Board.
19    (i) For the purposes of this Section, with respect to
20officers or employees of a regional transit board, as defined
21in this Act, the phrase "person or entity" does not include:
22(i) the United States government, (ii) the State, (iii)
23municipalities, as defined under Article VII, Section 1 of the
24Illinois Constitution, (iv) units of local government, as
25defined under Article VII, Section 1 of the Illinois
26Constitution, or (v) school districts.

 

 

10000HB2498ham001- 56 -LRB100 03891 MJP 22700 a

1(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
2    (5 ILCS 430/20-10)
3    Sec. 20-10. Offices of Executive Inspectors General.
4    (a) Six Five independent Offices of the Executive Inspector
5General are created, one each for the Governor, the Attorney
6General, the Secretary of State, the Comptroller, and the
7Treasurer and one for gaming activities. Each Office shall be
8under the direction and supervision of an Executive Inspector
9General and shall be a fully independent office with separate
10appropriations.
11    (b) The Governor, Attorney General, Secretary of State,
12Comptroller, and Treasurer shall each appoint an Executive
13Inspector General, and the Governor shall appoint an Executive
14Inspector General for gaming activities. Each appointment must
15be made without regard to political affiliation and solely on
16the basis of integrity and demonstrated ability. Appointments
17shall be made by and with the advice and consent of the Senate
18by three-fifths of the elected members concurring by record
19vote. Any nomination not acted upon by the Senate within 60
20session days of the receipt thereof shall be deemed to have
21received the advice and consent of the Senate. If, during a
22recess of the Senate, there is a vacancy in an office of
23Executive Inspector General, the appointing authority shall
24make a temporary appointment until the next meeting of the
25Senate when the appointing authority shall make a nomination to

 

 

10000HB2498ham001- 57 -LRB100 03891 MJP 22700 a

1fill that office. No person rejected for an office of Executive
2Inspector General shall, except by the Senate's request, be
3nominated again for that office at the same session of the
4Senate or be appointed to that office during a recess of that
5Senate.
6    Nothing in this Article precludes the appointment by the
7Governor, Attorney General, Secretary of State, Comptroller,
8or Treasurer of any other inspector general required or
9permitted by law. The Governor, Attorney General, Secretary of
10State, Comptroller, and Treasurer each may appoint an existing
11inspector general as the Executive Inspector General required
12by this Article, provided that such an inspector general is not
13prohibited by law, rule, jurisdiction, qualification, or
14interest from serving as the Executive Inspector General
15required by this Article. An appointing authority may not
16appoint a relative as an Executive Inspector General.
17    Each Executive Inspector General shall have the following
18qualifications:
19        (1) has not been convicted of any felony under the laws
20    of this State, another State, or the United States;
21        (2) has earned a baccalaureate degree from an
22    institution of higher education; and
23        (3) has 5 or more years of cumulative service (A) with
24    a federal, State, or local law enforcement agency, at least
25    2 years of which have been in a progressive investigatory
26    capacity; (B) as a federal, State, or local prosecutor; (C)

 

 

10000HB2498ham001- 58 -LRB100 03891 MJP 22700 a

1    as a senior manager or executive of a federal, State, or
2    local agency; (D) as a member, an officer, or a State or
3    federal judge; or (E) representing any combination of (A)
4    through (D).
5    The term of each initial Executive Inspector General shall
6commence upon qualification and shall run through June 30,
72008. The initial appointments shall be made within 60 days
8after the effective date of this Act.
9    After the initial term, each Executive Inspector General
10shall serve for 5-year terms commencing on July 1 of the year
11of appointment and running through June 30 of the fifth
12following year. An Executive Inspector General may be
13reappointed to one or more subsequent terms.
14    A vacancy occurring other than at the end of a term shall
15be filled by the appointing authority only for the balance of
16the term of the Executive Inspector General whose office is
17vacant.
18    Terms shall run regardless of whether the position is
19filled.
20    (c) The Executive Inspector General appointed by the
21Attorney General shall have jurisdiction over the Attorney
22General and all officers and employees of, and vendors and
23others doing business with, State agencies within the
24jurisdiction of the Attorney General. The Executive Inspector
25General appointed by the Secretary of State shall have
26jurisdiction over the Secretary of State and all officers and

 

 

10000HB2498ham001- 59 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 60 -LRB100 03891 MJP 22700 a

1misconduct, nonfeasance, misfeasance, malfeasance, or
2violations of this Act or violations of other related laws and
3rules.
4    (d) The compensation for each Executive Inspector General
5shall be determined by the Executive Ethics Commission and
6shall be made from appropriations made to the Comptroller for
7this purpose. Subject to Section 20-45 of this Act, each
8Executive Inspector General has full authority to organize his
9or her Office of the Executive Inspector General, including the
10employment and determination of the compensation of staff, such
11as deputies, assistants, and other employees, as
12appropriations permit. A separate appropriation shall be made
13for each Office of Executive Inspector General.
14    (e) No Executive Inspector General or employee of the
15Office of the Executive Inspector General may, during his or
16her term of appointment or employment:
17        (1) become a candidate for any elective office;
18        (2) hold any other elected or appointed public office
19    except for appointments on governmental advisory boards or
20    study commissions or as otherwise expressly authorized by
21    law;
22        (3) be actively involved in the affairs of any
23    political party or political organization; or
24        (4) advocate for the appointment of another person to
25    an appointed or elected office or position or actively
26    participate in any campaign for any elective office.

 

 

10000HB2498ham001- 61 -LRB100 03891 MJP 22700 a

1    In this subsection an appointed public office means a
2position authorized by law that is filled by an appointing
3authority as provided by law and does not include employment by
4hiring in the ordinary course of business.
5    (e-1) No Executive Inspector General or employee of the
6Office of the Executive Inspector General may, for one year
7after the termination of his or her appointment or employment:
8        (1) become a candidate for any elective office;
9        (2) hold any elected public office; or
10        (3) hold any appointed State, county, or local judicial
11    office.
12    (e-2) The requirements of item (3) of subsection (e-1) may
13be waived by the Executive Ethics Commission.
14    (f) An Executive Inspector General may be removed only for
15cause and may be removed only by the appointing constitutional
16officer. At the time of the removal, the appointing
17constitutional officer must report to the Executive Ethics
18Commission the justification for the removal.
19(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
20    Section 90-5. The Alcoholism and Other Drug Abuse and
21Dependency Act is amended by changing Section 5-20 as follows:
 
22    (20 ILCS 301/5-20)
23    Sec. 5-20. Compulsive gambling program.
24    (a) Subject to appropriation, the Department shall

 

 

10000HB2498ham001- 62 -LRB100 03891 MJP 22700 a

1establish a program for public education, research, and
2training regarding problem and compulsive gambling and the
3treatment and prevention of problem and compulsive gambling.
4Subject to specific appropriation for these stated purposes,
5the program must include all of the following:
6        (1) Establishment and maintenance of a toll-free "800"
7    telephone number to provide crisis counseling and referral
8    services to families experiencing difficulty as a result of
9    problem or compulsive gambling.
10        (2) Promotion of public awareness regarding the
11    recognition and prevention of problem and compulsive
12    gambling.
13        (3) Facilitation, through in-service training and
14    other means, of the availability of effective assistance
15    programs for problem and compulsive gamblers.
16        (4) Conducting studies to identify adults and
17    juveniles in this State who are, or who are at risk of
18    becoming, problem or compulsive gamblers.
19    (b) Subject to appropriation, the Department shall either
20establish and maintain the program or contract with a private
21or public entity for the establishment and maintenance of the
22program. Subject to appropriation, either the Department or the
23private or public entity shall implement the toll-free
24telephone number, promote public awareness, and conduct
25in-service training concerning problem and compulsive
26gambling.

 

 

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1    (c) Subject to appropriation, the Department shall produce
2and supply the signs specified in Section 10.7 of the Illinois
3Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
41975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
5of the Charitable Games Act, and Section 13.1 of the Illinois
6Riverboat Gambling Act.
7(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 
8    Section 90-6. The Department of Commerce and Economic
9Opportunity Law of the Civil Administrative Code of Illinois is
10amended by adding Sections 605-530 and 605-535 as follows:
 
11    (20 ILCS 605/605-530 new)
12    Sec. 605-530. The Depressed Communities Economic
13Development Board.
14    (a) The Depressed Communities Economic Development Board
15is created as an advisory board within the Department of
16Commerce and Economic Opportunity. The Board shall consist of
17the following members:
18        (1) 3 members appointed by the Governor, one of whom
19    shall be appointed to serve an initial term of one year and
20    2 of whom shall be appointed to serve an initial term of 2
21    years;
22        (2) 2 members appointed by the Speaker of the House of
23    Representatives, one of whom shall be appointed to serve an
24    initial term of one year and one of whom shall be appointed

 

 

10000HB2498ham001- 64 -LRB100 03891 MJP 22700 a

1    to serve an initial term of 2 years;
2        (3) 2 members appointed by the President of the Senate,
3    one of whom shall be appointed to serve an initial term of
4    one year and one of whom shall be appointed to serve an
5    initial term of 2 years;
6        (4) 2 members appointed by the Minority Leader of the
7    House of Representatives, one of whom shall be appointed to
8    serve an initial term of one year and one of whom shall be
9    appointed to serve an initial term of 2 years; and
10        (5) 2 members appointed by the Minority Leader of the
11    Senate, one of whom shall be appointed to serve an initial
12    term of one year and one of whom shall be appointed to
13    serve an initial term of 2 years.
14    The members of the Board shall elect a member to serve as
15chair of the Board. The members of the Board shall reflect the
16composition of the Illinois population with regard to ethnic
17and racial composition.
18    After the initial terms, each member shall be appointed to
19serve a term of 2 years and until his or her successor has been
20appointed and assumes office. If a vacancy occurs in the Board
21membership, then the vacancy shall be filled in the same manner
22as the initial appointment. No member of the Board shall, at
23the time of his or her appointment or within 2 years before the
24appointment, hold elected office or be appointed to a State
25board, commission, or agency. All Board members are subject to
26the State Officials and Employees Ethics Act.

 

 

10000HB2498ham001- 65 -LRB100 03891 MJP 22700 a

1    (b) Board members shall serve without compensation, but may
2be reimbursed for their reasonable travel expenses from funds
3available for that purpose. The Department of Commerce and
4Economic Opportunity shall provide staff and administrative
5support services to the Board.
6    (c) The Board must make recommendations, which must be
7approved by a majority of the Board, to the Department of
8Commerce and Economic Opportunity concerning the award of
9grants from amounts appropriated to the Department from the
10Depressed Communities Economic Development Fund, a special
11fund created in the State treasury. The Department must make
12grants to public or private entities submitting proposals to
13the Board to revitalize an Illinois depressed community. Grants
14may be used by these entities only for those purposes
15conditioned with the grant. For the purposes of this subsection
16(c), plans for revitalizing an Illinois depressed community
17include plans intended to curb high levels of poverty,
18unemployment, job and population loss, and general distress. An
19Illinois depressed community is an area where the poverty rate,
20as determined by using the most recent data released by the
21United States Census Bureau, is at least 3% greater than the
22State poverty rate as determined by using the most recent data
23released by the United States Census Bureau.
 
24    (20 ILCS 605/605-535 new)
25    Sec. 605-535. The Commission on the Future of Economic

 

 

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1Development of the Latino Community.
2    (a) There is hereby created the Commission on the Future of
3Economic Development of the Latino Community within the
4Department. The purpose of the Commission shall be to maintain
5and develop the economy of Latinos and to provide opportunities
6for this community, which will enhance and expand the quality
7of their lives.
8    The Commission shall concentrate its major efforts on
9strategic planning, policy research and analysis, advocacy,
10evaluation, and promoting coordination and collaboration.
11    During each regular legislative session, the Commission
12must consult with appropriate legislative committees about the
13State's economic development needs and opportunities in the
14Latino community.
15    By October 1st of each even-numbered year, the Commission
16must submit to the Governor and the General Assembly a biennial
17comprehensive statewide economic development strategy for the
18Latino community with a report on progress from the previous
19comprehensive strategy.
20    The comprehensive statewide economic development strategy
21may include, but is not limited to:
22        (1) an assessment of the Latino community's economic
23    vitality;
24        (2) recommended goals, objectives, and priorities for
25    the next biennium and the future;
26        (3) a common set of outcomes and benchmarks for the

 

 

10000HB2498ham001- 67 -LRB100 03891 MJP 22700 a

1    economic development system as a whole for the Latino
2    community;
3        (4) recommendations for removing barriers for Latinos
4    in employment;
5        (5) an inventory of existing relevant programs
6    compiled by the Commission from materials submitted by
7    agencies;
8        (6) recommendations for expanding, discontinuing, or
9    redirecting existing programs or adding new programs to
10    better serve the Latino community; and
11        (7) recommendations of best practices and public and
12    private sector roles in implementing the comprehensive
13    statewide economic development strategy.
14    In developing the biennial statewide economic development
15strategy, goals, objectives, priorities, and recommendations,
16the Commission shall consult, collaborate, and coordinate with
17relevant State agencies, private sector business, nonprofit
18organizations involved in economic development, trade
19associations, associate development organizations, and
20relevant local organizations in order to avoid duplication of
21effort.
22    State agencies shall cooperate with the Commission and
23provide information as the Commission may reasonably request.
24    The Commission shall review and make budget
25recommendations to the Governor's Office of Management and
26Budget and the General Assembly in areas relating to the

 

 

10000HB2498ham001- 68 -LRB100 03891 MJP 22700 a

1economic development in the State's Latino community.
2    The Commission shall evaluate its own performance on a
3regular basis.
4    The Commission may accept gifts, grants, donations,
5sponsorships, or contributions from any federal, State, or
6local governmental agency or program, or any private source,
7and expend the same for any purpose consistent with this
8Section.
9    (b) The Commission shall consist of 12 voting members,
10appointed by the Governor, 4 of whom shall be appointed to
11serve an initial term of one year, 4 of whom shall be appointed
12to serve an initial term of 2 years, and 4 of whom shall be
13appointed to serve an initial term of 3 years. After the
14initial term, each member shall be appointed to a term of 3
15years. Members of the Commission shall serve at the pleasure of
16the Governor for not more than 2 consecutive 3-year terms. In
17appointing members, the Governor shall appoint individuals
18from the following private industry sectors:
19        (1) production agriculture;
20        (2) at least 2 individuals from manufacturing, one of
21    whom shall represent a company with no more than 75
22    employees;
23        (3) transportation, construction, and logistics;
24        (4) travel and tourism;
25        (5) financial services and insurance;
26        (6) information technology and communications; and

 

 

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1        (7) biotechnology.
2    The members of the Commission shall choose a member to
3serve as chair of the Commission. The members of the Commission
4shall be representative, to the extent possible, of the various
5geographic areas of the State. The Director shall serve as an
6ad hoc nonvoting member of the Commission. Vacancies shall be
7filled in the same manner as the original appointments. The
8members of the Commission shall serve without compensation.
9    (c) The Commission shall meet at least 4 times per year,
10with at least one meeting each calendar quarter, at the call of
11the director or 4 voting members of the Commission. The staff
12and support for the Commission shall be provided by the
13Department.
14    (d) The Commission and Department are encouraged to involve
15other essential groups in the work of the Commission,
16including, but not limited to:
17        (1) public universities;
18        (2) community colleges;
19        (3) other educational institutions; and
20        (4) the Department of Labor.
21    (e) The Commission shall make recommendations, which must
22be approved by a majority of the members of the Commission, to
23the Department concerning the award of grants from amounts
24appropriated to the Department from the Latino Community
25Economic Development Fund, a special fund in the State
26treasury. The Department shall make grants to public or private

 

 

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1entities submitting proposals to the Commission to assist in
2the economic development of the Latino community. Grants may be
3used by these entities only for those purposes conditioned with
4the grant. The Commission shall coordinate with the Department
5to develop grant criteria.
6    (f) For the purposes of this Section:
7    "Department" means the Department of Commerce and Economic
8Development.
9    "Director" means the Director of Commerce and Economic
10Development.
11    "Educational institutions" means nonprofit public and
12private colleges, community colleges, State colleges, and
13universities in this State.
 
14    Section 90-8. The Illinois Lottery Law is amended by
15changing Section 9.1 as follows:
 
16    (20 ILCS 1605/9.1)
17    Sec. 9.1. Private manager and management agreement.
18    (a) As used in this Section:
19    "Offeror" means a person or group of persons that responds
20to a request for qualifications under this Section.
21    "Request for qualifications" means all materials and
22documents prepared by the Department to solicit the following
23from offerors:
24        (1) Statements of qualifications.

 

 

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

 

 

10000HB2498ham001- 72 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 73 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 74 -LRB100 03891 MJP 22700 a

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

 

 

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

 

 

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

 

 

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

 

 

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1    specifically required by the management agreement.
2        (20) The transition of rights and obligations,
3    including any associated equipment or other assets used in
4    the operation of the Lottery, from the manager to any
5    successor manager of the lottery, including the
6    Department, following the termination of or foreclosure
7    upon the management agreement.
8        (21) Right of use of copyrights, trademarks, and
9    service marks held by the Department in the name of the
10    State. The agreement must provide that any use of them by
11    the manager shall only be for the purpose of fulfilling its
12    obligations under the management agreement during the term
13    of the agreement.
14        (22) The disclosure of any information requested by the
15    Department to enable it to comply with the reporting
16    requirements and information requests provided for under
17    subsection (p) of this Section.
18    (e) Notwithstanding any other law to the contrary, the
19Department shall select a private manager through a competitive
20request for qualifications process consistent with Section
2120-35 of the Illinois Procurement Code, which shall take into
22account:
23        (1) the offeror's ability to market the Lottery to
24    those residents who are new, infrequent, or lapsed players
25    of the Lottery, especially those who are most likely to
26    make regular purchases on the Internet;

 

 

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

 

 

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

 

 

10000HB2498ham001- 81 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 82 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 83 -LRB100 03891 MJP 22700 a

1competition with the Lottery. The forms of gambling authorized
2by this amendatory Act of the 100th General Assembly constitute
3authorized forms of gambling that are not in direct competition
4with the Lottery.
5    (n) The private manager shall be subject to a complete
6investigation in the third, seventh, and tenth years of the
7agreement (if the agreement is for a 10-year term) by the
8Department in cooperation with the Auditor General to determine
9whether the private manager has complied with this Section and
10the management agreement. The private manager shall bear the
11cost of an investigation or reinvestigation of the private
12manager under this subsection.
13    (o) The powers conferred by this Section are in addition
14and supplemental to the powers conferred by any other law. If
15any other law or rule is inconsistent with this Section,
16including, but not limited to, provisions of the Illinois
17Procurement Code, then this Section controls as to any
18management agreement entered into under this Section. This
19Section and any rules adopted under this Section contain full
20and complete authority for a management agreement between the
21Department and a private manager. No law, procedure,
22proceeding, publication, notice, consent, approval, order, or
23act by the Department or any other officer, Department, agency,
24or instrumentality of the State or any political subdivision is
25required for the Department to enter into a management
26agreement under this Section. This Section contains full and

 

 

10000HB2498ham001- 84 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 85 -LRB100 03891 MJP 22700 a

1a private management agreement has been terminated. The
2selection process shall at a minimum take into account the
3criteria set forth in items (1) through (4) of subsection (e)
4of this Section and may include provisions consistent with
5subsections (f), (g), (h), and (i) of this Section. The Chief
6Procurement Officer shall also implement and administer the
7adopted selection process upon the termination of a private
8management agreement. The Department, after the Chief
9Procurement Officer certifies that the procurement process has
10been followed in accordance with the rules adopted under this
11subsection (o), shall select a final offeror as the private
12manager and sign the management agreement with the private
13manager.
14    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
1521.9, the Department shall distribute all proceeds of lottery
16tickets and shares sold in the following priority and manner:
17        (1) The payment of prizes and retailer bonuses.
18        (2) The payment of costs incurred in the operation and
19    administration of the Lottery, including the payment of
20    sums due to the private manager under the management
21    agreement with the Department.
22        (3) On the last day of each month or as soon thereafter
23    as possible, the State Comptroller shall direct and the
24    State Treasurer shall transfer from the State Lottery Fund
25    to the Common School Fund an amount that is equal to the
26    proceeds transferred in the corresponding month of fiscal

 

 

10000HB2498ham001- 86 -LRB100 03891 MJP 22700 a

1    year 2009, as adjusted for inflation, to the Common School
2    Fund.
3        (4) On or before the last day of each fiscal year,
4    deposit any remaining proceeds, subject to payments under
5    items (1), (2), and (3) into the Capital Projects Fund each
6    fiscal year.
7    (p) The Department shall be subject to the following
8reporting and information request requirements:
9        (1) the Department shall submit written quarterly
10    reports to the Governor and the General Assembly on the
11    activities and actions of the private manager selected
12    under this Section;
13        (2) upon request of the Chief Procurement Officer, the
14    Department shall promptly produce information related to
15    the procurement activities of the Department and the
16    private manager requested by the Chief Procurement
17    Officer; the Chief Procurement Officer must retain
18    confidential, proprietary, or trade secret information
19    designated by the Department in complete confidence
20    pursuant to subsection (g) of Section 7 of the Freedom of
21    Information Act; and
22        (3) at least 30 days prior to the beginning of the
23    Department's fiscal year, the Department shall prepare an
24    annual written report on the activities of the private
25    manager selected under this Section and deliver that report
26    to the Governor and General Assembly.

 

 

10000HB2498ham001- 87 -LRB100 03891 MJP 22700 a

1(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
299-933, eff. 1-27-17.)
 
3    Section 90-10. The Department of Revenue Law of the Civil
4Administrative Code of Illinois is amended by changing Section
52505-305 as follows:
 
6    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
7    Sec. 2505-305. Investigators.
8    (a) The Department has the power to appoint investigators
9to conduct all investigations, searches, seizures, arrests,
10and other duties imposed under the provisions of any law
11administered by the Department. Except as provided in
12subsection (c), these investigators have and may exercise all
13the powers of peace officers solely for the purpose of
14enforcing taxing measures administered by the Department.
15    (b) The Director must authorize to each investigator
16employed under this Section and to any other employee of the
17Department exercising the powers of a peace officer a distinct
18badge that, on its face, (i) clearly states that the badge is
19authorized by the Department and (ii) contains a unique
20identifying number. No other badge shall be authorized by the
21Department.
22    (c) The Department may enter into agreements with the
23Illinois Gaming Board providing that investigators appointed
24under this Section shall exercise the peace officer powers set

 

 

10000HB2498ham001- 88 -LRB100 03891 MJP 22700 a

1forth in paragraph (20.6) of subsection (c) of Section 5 of the
2Illinois Riverboat Gambling Act.
3(Source: P.A. 96-37, eff. 7-13-09.)
 
4    Section 90-12. The Illinois State Auditing Act is amended
5by changing Section 3-1 as follows:
 
6    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
7    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
8General has jurisdiction over all State agencies to make post
9audits and investigations authorized by or under this Act or
10the Constitution.
11    The Auditor General has jurisdiction over local government
12agencies and private agencies only:
13        (a) to make such post audits authorized by or under
14    this Act as are necessary and incidental to a post audit of
15    a State agency or of a program administered by a State
16    agency involving public funds of the State, but this
17    jurisdiction does not include any authority to review local
18    governmental agencies in the obligation, receipt,
19    expenditure or use of public funds of the State that are
20    granted without limitation or condition imposed by law,
21    other than the general limitation that such funds be used
22    for public purposes;
23        (b) to make investigations authorized by or under this
24    Act or the Constitution; and

 

 

10000HB2498ham001- 89 -LRB100 03891 MJP 22700 a

1        (c) to make audits of the records of local government
2    agencies to verify actual costs of state-mandated programs
3    when directed to do so by the Legislative Audit Commission
4    at the request of the State Board of Appeals under the
5    State Mandates Act.
6    In addition to the foregoing, the Auditor General may
7conduct an audit of the Metropolitan Pier and Exposition
8Authority, the Regional Transportation Authority, the Suburban
9Bus Division, the Commuter Rail Division and the Chicago
10Transit Authority and any other subsidized carrier when
11authorized by the Legislative Audit Commission. Such audit may
12be a financial, management or program audit, or any combination
13thereof.
14    The audit shall determine whether they are operating in
15accordance with all applicable laws and regulations. Subject to
16the limitations of this Act, the Legislative Audit Commission
17may by resolution specify additional determinations to be
18included in the scope of the audit.
19    In addition to the foregoing, the Auditor General must also
20conduct a financial audit of the Illinois Sports Facilities
21Authority's expenditures of public funds in connection with the
22reconstruction, renovation, remodeling, extension, or
23improvement of all or substantially all of any existing
24"facility", as that term is defined in the Illinois Sports
25Facilities Authority Act.
26    The Auditor General may also conduct an audit, when

 

 

10000HB2498ham001- 90 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 91 -LRB100 03891 MJP 22700 a

1Facilities and Services Review Board pursuant to Section 19.5
2of the Illinois Health Facilities Planning Act.
3    The Auditor General must conduct an audit of the Chicago
4Casino Development Authority pursuant to Section 1-60 of the
5Chicago Casino Development Authority Act.
6    The Auditor General of the State of Illinois shall annually
7conduct or cause to be conducted a financial and compliance
8audit of the books and records of any county water commission
9organized pursuant to the Water Commission Act of 1985 and
10shall file a copy of the report of that audit with the Governor
11and the Legislative Audit Commission. The filed audit shall be
12open to the public for inspection. The cost of the audit shall
13be charged to the county water commission in accordance with
14Section 6z-27 of the State Finance Act. The county water
15commission shall make available to the Auditor General its
16books and records and any other documentation, whether in the
17possession of its trustees or other parties, necessary to
18conduct the audit required. These audit requirements apply only
19through July 1, 2007.
20    The Auditor General must conduct audits of the Rend Lake
21Conservancy District as provided in Section 25.5 of the River
22Conservancy Districts Act.
23    The Auditor General must conduct financial audits of the
24Southeastern Illinois Economic Development Authority as
25provided in Section 70 of the Southeastern Illinois Economic
26Development Authority Act.

 

 

10000HB2498ham001- 92 -LRB100 03891 MJP 22700 a

1    The Auditor General shall conduct a compliance audit in
2accordance with subsections (d) and (f) of Section 30 of the
3Innovation Development and Economy Act.
4(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
596-939, eff. 6-24-10.)
 
6    Section 90-15. The State Finance Act is amended by adding
7Sections 5.878, 5.879, 5.880, and 6z-102 and by changing
8Section 6z-45 as follows:
 
9    (30 ILCS 105/5.878 new)
10    Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
 
11    (30 ILCS 105/5.879 new)
12    Sec. 5.879. The Depressed Communities Economic Development
13Fund.
 
14    (30 ILCS 105/5.880 new)
15    Sec. 5.880. The Latino Community Economic Development
16Fund.
 
17    (30 ILCS 105/6z-45)
18    Sec. 6z-45. The School Infrastructure Fund.
19    (a) The School Infrastructure Fund is created as a special
20fund in the State Treasury.
21    In addition to any other deposits authorized by law,

 

 

10000HB2498ham001- 93 -LRB100 03891 MJP 22700 a

1beginning January 1, 2000, on the first day of each month, or
2as soon thereafter as may be practical, the State Treasurer and
3State Comptroller shall transfer the sum of $5,000,000 from the
4General Revenue Fund to the School Infrastructure Fund, except
5that, notwithstanding any other provision of law, and in
6addition to any other transfers that may be provided for by
7law, before June 30, 2012, the Comptroller and the Treasurer
8shall transfer $45,000,000 from the General Revenue Fund into
9the School Infrastructure Fund, and, for fiscal year 2013 only,
10the Treasurer and the Comptroller shall transfer $1,250,000
11from the General Revenue Fund to the School Infrastructure Fund
12on the first day of each month; provided, however, that no such
13transfers shall be made from July 1, 2001 through June 30,
142003.
15    (b) Subject to the transfer provisions set forth below,
16money in the School Infrastructure Fund shall, if and when the
17State of Illinois incurs any bonded indebtedness for the
18construction of school improvements under the School
19Construction Law, be set aside and used for the purpose of
20paying and discharging annually the principal and interest on
21that bonded indebtedness then due and payable, and for no other
22purpose.
23    In addition to other transfers to the General Obligation
24Bond Retirement and Interest Fund made pursuant to Section 15
25of the General Obligation Bond Act, upon each delivery of bonds
26issued for construction of school improvements under the School

 

 

10000HB2498ham001- 94 -LRB100 03891 MJP 22700 a

1Construction Law, the State Comptroller shall compute and
2certify to the State Treasurer the total amount of principal
3of, interest on, and premium, if any, on such bonds during the
4then current and each succeeding fiscal year. With respect to
5the interest payable on variable rate bonds, such
6certifications shall be calculated at the maximum rate of
7interest that may be payable during the fiscal year, after
8taking into account any credits permitted in the related
9indenture or other instrument against the amount of such
10interest required to be appropriated for that period.
11    On or before the last day of each month, the State
12Treasurer and State Comptroller shall transfer from the School
13Infrastructure Fund to the General Obligation Bond Retirement
14and Interest Fund an amount sufficient to pay the aggregate of
15the principal of, interest on, and premium, if any, on the
16bonds payable on their next payment date, divided by the number
17of monthly transfers occurring between the last previous
18payment date (or the delivery date if no payment date has yet
19occurred) and the next succeeding payment date. Interest
20payable on variable rate bonds shall be calculated at the
21maximum rate of interest that may be payable for the relevant
22period, after taking into account any credits permitted in the
23related indenture or other instrument against the amount of
24such interest required to be appropriated for that period.
25Interest for which moneys have already been deposited into the
26capitalized interest account within the General Obligation

 

 

10000HB2498ham001- 95 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 96 -LRB100 03891 MJP 22700 a

1(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
2    (30 ILCS 105/6z-102 new)
3    Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
4    (a) The Gaming Facilities Fee Revenue Fund is created as a
5special fund in the State treasury.
6    (b) The revenues in the Fund shall be used, subject to
7appropriation, by the Comptroller for the purpose of (i)
8providing appropriations to the Illinois Gaming Board for the
9administration and enforcement of the Illinois Gambling Act and
10the applicable provisions of the Chicago Casino Development
11Authority Act and (ii) payment of vouchers that are outstanding
12for more than 60 days. Whenever practical, the Comptroller must
13prioritize voucher payments for expenses related to medical
14assistance under the Illinois Public Aid Code, the Children's
15Health Insurance Program Act, and the Covering ALL KIDS Health
16Insurance 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

 

 

10000HB2498ham001- 97 -LRB100 03891 MJP 22700 a

1under subsection (h) of Section 8 of this Act.
 
2    Section 90-20. The Illinois Income Tax Act is amended by
3changing Sections 201, 303, 304 and 710 as follows:
 
4    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
5    Sec. 201. Tax Imposed.
6    (a) In general. A tax measured by net income is hereby
7imposed on every individual, corporation, trust and estate for
8each taxable year ending after July 31, 1969 on the privilege
9of earning or receiving income in or as a resident of this
10State. Such tax shall be in addition to all other occupation or
11privilege taxes imposed by this State or by any municipal
12corporation or political subdivision thereof.
13    (b) Rates. The tax imposed by subsection (a) of this
14Section shall be determined as follows, except as adjusted by
15subsection (d-1):
16        (1) In the case of an individual, trust or estate, for
17    taxable years ending prior to July 1, 1989, an amount equal
18    to 2 1/2% of the taxpayer's net income for the taxable
19    year.
20        (2) In the case of an individual, trust or estate, for
21    taxable years beginning prior to July 1, 1989 and ending
22    after June 30, 1989, an amount equal to the sum of (i) 2
23    1/2% of the taxpayer's net income for the period prior to
24    July 1, 1989, as calculated under Section 202.3, and (ii)

 

 

10000HB2498ham001- 98 -LRB100 03891 MJP 22700 a

1    3% of the taxpayer's net income for the period after June
2    30, 1989, as calculated under Section 202.3.
3        (3) In the case of an individual, trust or estate, for
4    taxable years beginning after June 30, 1989, and ending
5    prior to January 1, 2011, an amount equal to 3% of the
6    taxpayer's net income for the taxable year.
7        (4) In the case of an individual, trust, or estate, for
8    taxable years beginning prior to January 1, 2011, and
9    ending after December 31, 2010, an amount equal to the sum
10    of (i) 3% of the taxpayer's net income for the period prior
11    to January 1, 2011, as calculated under Section 202.5, and
12    (ii) 5% of the taxpayer's net income for the period after
13    December 31, 2010, as calculated under Section 202.5.
14        (5) In the case of an individual, trust, or estate, for
15    taxable years beginning on or after January 1, 2011, and
16    ending prior to January 1, 2015, an amount equal to 5% of
17    the taxpayer's net income for the taxable year.
18        (5.1) In the case of an individual, trust, or estate,
19    for taxable years beginning prior to January 1, 2015, and
20    ending after December 31, 2014, an amount equal to the sum
21    of (i) 5% of the taxpayer's net income for the period prior
22    to January 1, 2015, as calculated under Section 202.5, and
23    (ii) 3.75% of the taxpayer's net income for the period
24    after December 31, 2014, as calculated under Section 202.5.
25        (5.2) In the case of an individual, trust, or estate,
26    for taxable years beginning on or after January 1, 2015,

 

 

10000HB2498ham001- 99 -LRB100 03891 MJP 22700 a

1    and ending prior to January 1, 2025, an amount equal to
2    3.75% of the taxpayer's net income for the taxable year.
3        (5.3) In the case of an individual, trust, or estate,
4    for taxable years beginning prior to January 1, 2025, and
5    ending after December 31, 2024, an amount equal to the sum
6    of (i) 3.75% of the taxpayer's net income for the period
7    prior to January 1, 2025, as calculated under Section
8    202.5, and (ii) 3.25% of the taxpayer's net income for the
9    period after December 31, 2024, as calculated under Section
10    202.5.
11        (5.4) In the case of an individual, trust, or estate,
12    for taxable years beginning on or after January 1, 2025, an
13    amount equal to 3.25% of the taxpayer's net income for the
14    taxable year.
15        (6) In the case of a corporation, for taxable years
16    ending prior to July 1, 1989, an amount equal to 4% of the
17    taxpayer's net income for the taxable year.
18        (7) In the case of a corporation, for taxable years
19    beginning prior to July 1, 1989 and ending after June 30,
20    1989, an amount equal to the sum of (i) 4% of the
21    taxpayer's net income for the period prior to July 1, 1989,
22    as calculated under Section 202.3, and (ii) 4.8% of the
23    taxpayer's net income for the period after June 30, 1989,
24    as calculated under Section 202.3.
25        (8) In the case of a corporation, for taxable years
26    beginning after June 30, 1989, and ending prior to January

 

 

10000HB2498ham001- 100 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 101 -LRB100 03891 MJP 22700 a

1    December 31, 2024, an amount equal to the sum of (i) 5.25%
2    of the taxpayer's net income for the period prior to
3    January 1, 2025, as calculated under Section 202.5, and
4    (ii) 4.8% of the taxpayer's net income for the period after
5    December 31, 2024, as calculated under Section 202.5.
6        (14) In the case of a corporation, for taxable years
7    beginning on or after January 1, 2025, an amount equal to
8    4.8% of the taxpayer's net income for the taxable year.
9    The rates under this subsection (b) are subject to the
10provisions of Section 201.5.
11    (b-5) Surcharge; sale or exchange of assets, properties,
12and intangibles of electronic gaming licensees. For each of
13taxable years 2017 through 2025, a surcharge is imposed on all
14taxpayers on income arising from the sale or exchange of
15capital assets, depreciable business property, real property
16used in the trade or business, and Section 197 intangibles (i)
17of an organization licensee under the Illinois Horse Racing Act
18of 1975 and (ii) of an electronic gaming licensee under the
19Illinois Gambling Act. The amount of the surcharge is equal to
20the amount of federal income tax liability for the taxable year
21attributable to those sales and exchanges. The surcharge
22imposed shall not apply if:
23        (1) the electronic gaming license, organization
24    license, or race track property is transferred as a result
25    of any of the following:
26            (A) bankruptcy, a receivership, or a debt

 

 

10000HB2498ham001- 102 -LRB100 03891 MJP 22700 a

1        adjustment initiated by or against the initial
2        licensee or the substantial owners of the initial
3        licensee;
4            (B) cancellation, revocation, or termination of
5        any such license by the Illinois Gaming Board or the
6        Illinois Racing Board;
7            (C) a determination by the Illinois Gaming Board
8        that transfer of the license is in the best interests
9        of Illinois gaming;
10            (D) the death of an owner of the equity interest in
11        a licensee;
12            (E) the acquisition of a controlling interest in
13        the stock or substantially all of the assets of a
14        publicly traded company;
15            (F) a transfer by a parent company to a wholly
16        owned subsidiary; or
17            (G) the transfer or sale to or by one person to
18        another person where both persons were initial owners
19        of the license when the license was issued; or
20        (2) the controlling interest in the electronic gaming
21    license, organization license, or race track property is
22    transferred in a transaction to lineal descendants in which
23    no gain or loss is recognized or as a result of a
24    transaction in accordance with Section 351 of the Internal
25    Revenue Code in which no gain or loss is recognized; or
26        (3) live horse racing was not conducted in 2011 under a

 

 

10000HB2498ham001- 103 -LRB100 03891 MJP 22700 a

1    license issued pursuant to the Illinois Horse Racing Act of
2    1975.
3    The transfer of an electronic gaming license, organization
4license, or race track property by a person other than the
5initial licensee to receive the electronic gaming license is
6not subject to a surcharge. The Department shall adopt rules
7necessary to implement and administer this subsection.
8    (c) Personal Property Tax Replacement Income Tax.
9Beginning on July 1, 1979 and thereafter, in addition to such
10income tax, there is also hereby imposed the Personal Property
11Tax Replacement Income Tax measured by net income on every
12corporation (including Subchapter S corporations), partnership
13and trust, for each taxable year ending after June 30, 1979.
14Such taxes are imposed on the privilege of earning or receiving
15income in or as a resident of this State. The Personal Property
16Tax Replacement Income Tax shall be in addition to the income
17tax imposed by subsections (a) and (b) of this Section and in
18addition to all other occupation or privilege taxes imposed by
19this State or by any municipal corporation or political
20subdivision thereof.
21    (d) Additional Personal Property Tax Replacement Income
22Tax Rates. The personal property tax replacement income tax
23imposed by this subsection and subsection (c) of this Section
24in the case of a corporation, other than a Subchapter S
25corporation and except as adjusted by subsection (d-1), shall
26be an additional amount equal to 2.85% of such taxpayer's net

 

 

10000HB2498ham001- 104 -LRB100 03891 MJP 22700 a

1income for the taxable year, except that beginning on January
21, 1981, and thereafter, the rate of 2.85% specified in this
3subsection shall be reduced to 2.5%, and in the case of a
4partnership, trust or a Subchapter S corporation shall be an
5additional amount equal to 1.5% of such taxpayer's net income
6for the taxable year.
7    (d-1) Rate reduction for certain foreign insurers. In the
8case of a foreign insurer, as defined by Section 35A-5 of the
9Illinois Insurance Code, whose state or country of domicile
10imposes on insurers domiciled in Illinois a retaliatory tax
11(excluding any insurer whose premiums from reinsurance assumed
12are 50% or more of its total insurance premiums as determined
13under paragraph (2) of subsection (b) of Section 304, except
14that for purposes of this determination premiums from
15reinsurance do not include premiums from inter-affiliate
16reinsurance arrangements), beginning with taxable years ending
17on or after December 31, 1999, the sum of the rates of tax
18imposed by subsections (b) and (d) shall be reduced (but not
19increased) to the rate at which the total amount of tax imposed
20under this Act, net of all credits allowed under this Act,
21shall equal (i) the total amount of tax that would be imposed
22on the foreign insurer's net income allocable to Illinois for
23the taxable year by such foreign insurer's state or country of
24domicile if that net income were subject to all income taxes
25and taxes measured by net income imposed by such foreign
26insurer's state or country of domicile, net of all credits

 

 

10000HB2498ham001- 105 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 106 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 107 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 108 -LRB100 03891 MJP 22700 a

1    Community Affairs (now Department of Commerce and Economic
2    Opportunity) shall notify the Department of Revenue of all
3    such certifications immediately. For tax years ending
4    after December 31, 1988, the credit shall be allowed for
5    the tax year in which the property is placed in service,
6    or, if the amount of the credit exceeds the tax liability
7    for that year, whether it exceeds the original liability or
8    the liability as later amended, such excess may be carried
9    forward and applied to the tax liability of the 5 taxable
10    years following the excess credit years. The credit shall
11    be applied to the earliest year for which there is a
12    liability. If there is credit from more than one tax year
13    that is available to offset a liability, earlier credit
14    shall be applied first.
15        (2) The term "qualified property" means property
16    which:
17            (A) is tangible, whether new or used, including
18        buildings and structural components of buildings and
19        signs that are real property, but not including land or
20        improvements to real property that are not a structural
21        component of a building such as landscaping, sewer
22        lines, local access roads, fencing, parking lots, and
23        other appurtenances;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

10000HB2498ham001- 109 -LRB100 03891 MJP 22700 a

1        eligible for the credit provided by this subsection
2        (e);
3            (C) is acquired by purchase as defined in Section
4        179(d) of the Internal Revenue Code;
5            (D) is used in Illinois by a taxpayer who is
6        primarily engaged in manufacturing, or in mining coal
7        or fluorite, or in retailing, or was placed in service
8        on or after July 1, 2006 in a River Edge Redevelopment
9        Zone established pursuant to the River Edge
10        Redevelopment Zone Act; and
11            (E) has not previously been used in Illinois in
12        such a manner and by such a person as would qualify for
13        the credit provided by this subsection (e) or
14        subsection (f).
15        (3) For purposes of this subsection (e),
16    "manufacturing" means the material staging and production
17    of tangible personal property by procedures commonly
18    regarded as manufacturing, processing, fabrication, or
19    assembling which changes some existing material into new
20    shapes, new qualities, or new combinations. For purposes of
21    this subsection (e) the term "mining" shall have the same
22    meaning as the term "mining" in Section 613(c) of the
23    Internal Revenue Code. For purposes of this subsection (e),
24    the term "retailing" means the sale of tangible personal
25    property for use or consumption and not for resale, or
26    services rendered in conjunction with the sale of tangible

 

 

10000HB2498ham001- 110 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 111 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 112 -LRB100 03891 MJP 22700 a

1    that taxable year. The election to pass through the credits
2    shall be irrevocable.
3        For taxable years ending on or after December 31, 2000,
4    a partner that qualifies its partnership for a subtraction
5    under subparagraph (I) of paragraph (2) of subsection (d)
6    of Section 203 or a shareholder that qualifies a Subchapter
7    S corporation for a subtraction under subparagraph (S) of
8    paragraph (2) of subsection (b) of Section 203 shall be
9    allowed a credit under this subsection (e) equal to its
10    share of the credit earned under this subsection (e) during
11    the taxable year by the partnership or Subchapter S
12    corporation, determined in accordance with the
13    determination of income and distributive share of income
14    under Sections 702 and 704 and Subchapter S of the Internal
15    Revenue Code. This paragraph is exempt from the provisions
16    of Section 250.
17    (f) Investment credit; Enterprise Zone; River Edge
18Redevelopment Zone.
19        (1) A taxpayer shall be allowed a credit against the
20    tax imposed by subsections (a) and (b) of this Section for
21    investment in qualified property which is placed in service
22    in an Enterprise Zone created pursuant to the Illinois
23    Enterprise Zone Act or, for property placed in service on
24    or after July 1, 2006, a River Edge Redevelopment Zone
25    established pursuant to the River Edge Redevelopment Zone
26    Act. For partners, shareholders of Subchapter S

 

 

10000HB2498ham001- 113 -LRB100 03891 MJP 22700 a

1    corporations, and owners of limited liability companies,
2    if the liability company is treated as a partnership for
3    purposes of federal and State income taxation, there shall
4    be allowed a credit under this subsection (f) to be
5    determined in accordance with the determination of income
6    and distributive share of income under Sections 702 and 704
7    and Subchapter S of the Internal Revenue Code. The credit
8    shall be .5% of the basis for such property. The credit
9    shall be available only in the taxable year in which the
10    property is placed in service in the Enterprise Zone or
11    River Edge Redevelopment Zone and shall not be allowed to
12    the extent that it would reduce a taxpayer's liability for
13    the tax imposed by subsections (a) and (b) of this Section
14    to below zero. For tax years ending on or after December
15    31, 1985, the credit shall be allowed for the tax year in
16    which the property is placed in service, or, if the amount
17    of the credit exceeds the tax liability for that year,
18    whether it exceeds the original liability or the liability
19    as later amended, such excess may be carried forward and
20    applied to the tax liability of the 5 taxable years
21    following the excess credit year. The credit shall be
22    applied to the earliest year for which there is a
23    liability. If there is credit from more than one tax year
24    that is available to offset a liability, the credit
25    accruing first in time shall be applied first.
26        (2) The term qualified property means property which:

 

 

10000HB2498ham001- 114 -LRB100 03891 MJP 22700 a

1            (A) is tangible, whether new or used, including
2        buildings and structural components of buildings;
3            (B) is depreciable pursuant to Section 167 of the
4        Internal Revenue Code, except that "3-year property"
5        as defined in Section 168(c)(2)(A) of that Code is not
6        eligible for the credit provided by this subsection
7        (f);
8            (C) is acquired by purchase as defined in Section
9        179(d) of the Internal Revenue Code;
10            (D) is used in the Enterprise Zone or River Edge
11        Redevelopment Zone by the taxpayer; and
12            (E) has not been previously used in Illinois in
13        such a manner and by such a person as would qualify for
14        the credit provided by this subsection (f) or
15        subsection (e).
16        (3) The basis of qualified property shall be the basis
17    used to compute the depreciation deduction for federal
18    income tax purposes.
19        (4) If the basis of the property for federal income tax
20    depreciation purposes is increased after it has been placed
21    in service in the Enterprise Zone or River Edge
22    Redevelopment Zone by the taxpayer, the amount of such
23    increase shall be deemed property placed in service on the
24    date of such increase in basis.
25        (5) The term "placed in service" shall have the same
26    meaning as under Section 46 of the Internal Revenue Code.

 

 

10000HB2498ham001- 115 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 116 -LRB100 03891 MJP 22700 a

1    shall be deemed to have met the 1% growth in base
2    employment for the first year in which they file employment
3    records with the Illinois Department of Employment
4    Security. If, in any year, the increase in base employment
5    within Illinois over the preceding year is less than 1%,
6    the additional credit shall be limited to that percentage
7    times a fraction, the numerator of which is 0.5% and the
8    denominator of which is 1%, but shall not exceed 0.5%.
9    (g) (Blank).
10    (h) Investment credit; High Impact Business.
11        (1) Subject to subsections (b) and (b-5) of Section 5.5
12    of the Illinois Enterprise Zone Act, a taxpayer shall be
13    allowed a credit against the tax imposed by subsections (a)
14    and (b) of this Section for investment in qualified
15    property which is placed in service by a Department of
16    Commerce and Economic Opportunity designated High Impact
17    Business. The credit shall be .5% of the basis for such
18    property. The credit shall not be available (i) until the
19    minimum investments in qualified property set forth in
20    subdivision (a)(3)(A) of Section 5.5 of the Illinois
21    Enterprise Zone Act have been satisfied or (ii) until the
22    time authorized in subsection (b-5) of the Illinois
23    Enterprise Zone Act for entities designated as High Impact
24    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
25    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
26    Act, and shall not be allowed to the extent that it would

 

 

10000HB2498ham001- 117 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 118 -LRB100 03891 MJP 22700 a

1        (2) The term qualified property means property which:
2            (A) is tangible, whether new or used, including
3        buildings and structural components of buildings;
4            (B) is depreciable pursuant to Section 167 of the
5        Internal Revenue Code, except that "3-year property"
6        as defined in Section 168(c)(2)(A) of that Code is not
7        eligible for the credit provided by this subsection
8        (h);
9            (C) is acquired by purchase as defined in Section
10        179(d) of the Internal Revenue Code; and
11            (D) is not eligible for the Enterprise Zone
12        Investment Credit provided by subsection (f) of this
13        Section.
14        (3) The basis of qualified property shall be the basis
15    used to compute the depreciation deduction for federal
16    income tax purposes.
17        (4) If the basis of the property for federal income tax
18    depreciation purposes is increased after it has been placed
19    in service in a federally designated Foreign Trade Zone or
20    Sub-Zone located in Illinois by the taxpayer, the amount of
21    such increase shall be deemed property placed in service on
22    the date of such increase in basis.
23        (5) The term "placed in service" shall have the same
24    meaning as under Section 46 of the Internal Revenue Code.
25        (6) If during any taxable year ending on or before
26    December 31, 1996, any property ceases to be qualified

 

 

10000HB2498ham001- 119 -LRB100 03891 MJP 22700 a

1    property in the hands of the taxpayer within 48 months
2    after being placed in service, or the situs of any
3    qualified property is moved outside Illinois within 48
4    months after being placed in service, the tax imposed under
5    subsections (a) and (b) of this Section for such taxable
6    year shall be increased. Such increase shall be determined
7    by (i) recomputing the investment credit which would have
8    been allowed for the year in which credit for such property
9    was originally allowed by eliminating such property from
10    such computation, and (ii) subtracting such recomputed
11    credit from the amount of credit previously allowed. For
12    the purposes of this paragraph (6), a reduction of the
13    basis of qualified property resulting from a
14    redetermination of the purchase price shall be deemed a
15    disposition of qualified property to the extent of such
16    reduction.
17        (7) Beginning with tax years ending after December 31,
18    1996, if a taxpayer qualifies for the credit under this
19    subsection (h) and thereby is granted a tax abatement and
20    the taxpayer relocates its entire facility in violation of
21    the explicit terms and length of the contract under Section
22    18-183 of the Property Tax Code, the tax imposed under
23    subsections (a) and (b) of this Section shall be increased
24    for the taxable year in which the taxpayer relocated its
25    facility by an amount equal to the amount of credit
26    received by the taxpayer under this subsection (h).

 

 

10000HB2498ham001- 120 -LRB100 03891 MJP 22700 a

1    (i) Credit for Personal Property Tax Replacement Income
2Tax. For tax years ending prior to December 31, 2003, a credit
3shall be allowed against the tax imposed by subsections (a) and
4(b) of this Section for the tax imposed by subsections (c) and
5(d) of this Section. This credit shall be computed by
6multiplying the tax imposed by subsections (c) and (d) of this
7Section by a fraction, the numerator of which is base income
8allocable to Illinois and the denominator of which is Illinois
9base income, and further multiplying the product by the tax
10rate imposed by subsections (a) and (b) of this Section.
11    Any credit earned on or after December 31, 1986 under this
12subsection which is unused in the year the credit is computed
13because it exceeds the tax liability imposed by subsections (a)
14and (b) for that year (whether it exceeds the original
15liability or the liability as later amended) may be carried
16forward and applied to the tax liability imposed by subsections
17(a) and (b) of the 5 taxable years following the excess credit
18year, provided that no credit may be carried forward to any
19year ending on or after December 31, 2003. This credit shall be
20applied first to the earliest year for which there is a
21liability. If there is a credit under this subsection from more
22than one tax year that is available to offset a liability the
23earliest credit arising under this subsection shall be applied
24first.
25    If, during any taxable year ending on or after December 31,
261986, the tax imposed by subsections (c) and (d) of this

 

 

10000HB2498ham001- 121 -LRB100 03891 MJP 22700 a

1Section for which a taxpayer has claimed a credit under this
2subsection (i) is reduced, the amount of credit for such tax
3shall also be reduced. Such reduction shall be determined by
4recomputing the credit to take into account the reduced tax
5imposed by subsections (c) and (d). If any portion of the
6reduced amount of credit has been carried to a different
7taxable year, an amended return shall be filed for such taxable
8year to reduce the amount of credit claimed.
9    (j) Training expense credit. Beginning with tax years
10ending on or after December 31, 1986 and prior to December 31,
112003, a taxpayer shall be allowed a credit against the tax
12imposed by subsections (a) and (b) under this Section for all
13amounts paid or accrued, on behalf of all persons employed by
14the taxpayer in Illinois or Illinois residents employed outside
15of Illinois by a taxpayer, for educational or vocational
16training in semi-technical or technical fields or semi-skilled
17or skilled fields, which were deducted from gross income in the
18computation of taxable income. The credit against the tax
19imposed by subsections (a) and (b) shall be 1.6% of such
20training expenses. For partners, shareholders of subchapter S
21corporations, and owners of limited liability companies, if the
22liability company is treated as a partnership for purposes of
23federal and State income taxation, there shall be allowed a
24credit under this subsection (j) to be determined in accordance
25with the determination of income and distributive share of
26income under Sections 702 and 704 and subchapter S of the

 

 

10000HB2498ham001- 122 -LRB100 03891 MJP 22700 a

1Internal Revenue Code.
2    Any credit allowed under this subsection which is unused in
3the year the credit is earned may be carried forward to each of
4the 5 taxable years following the year for which the credit is
5first computed until it is used. This credit shall be applied
6first to the earliest year for which there is a liability. If
7there is a credit under this subsection from more than one tax
8year that is available to offset a liability the earliest
9credit arising under this subsection shall be applied first. No
10carryforward credit may be claimed in any tax year ending on or
11after December 31, 2003.
12    (k) Research and development credit. For tax years ending
13after July 1, 1990 and prior to December 31, 2003, and
14beginning again for tax years ending on or after December 31,
152004, and ending prior to January 1, 2016, a taxpayer shall be
16allowed a credit against the tax imposed by subsections (a) and
17(b) of this Section for increasing research activities in this
18State. The credit allowed against the tax imposed by
19subsections (a) and (b) shall be equal to 6 1/2% of the
20qualifying expenditures for increasing research activities in
21this State. For partners, shareholders of subchapter S
22corporations, and owners of limited liability companies, if the
23liability company is treated as a partnership for purposes of
24federal and State income taxation, there shall be allowed a
25credit under this subsection to be determined in accordance
26with the determination of income and distributive share of

 

 

10000HB2498ham001- 123 -LRB100 03891 MJP 22700 a

1income under Sections 702 and 704 and subchapter S of the
2Internal Revenue Code.
3    For purposes of this subsection, "qualifying expenditures"
4means the qualifying expenditures as defined for the federal
5credit for increasing research activities which would be
6allowable under Section 41 of the Internal Revenue Code and
7which are conducted in this State, "qualifying expenditures for
8increasing research activities in this State" means the excess
9of qualifying expenditures for the taxable year in which
10incurred over qualifying expenditures for the base period,
11"qualifying expenditures for the base period" means the average
12of the qualifying expenditures for each year in the base
13period, and "base period" means the 3 taxable years immediately
14preceding the taxable year for which the determination is being
15made.
16    Any credit in excess of the tax liability for the taxable
17year may be carried forward. A taxpayer may elect to have the
18unused credit shown on its final completed return carried over
19as a credit against the tax liability for the following 5
20taxable years or until it has been fully used, whichever occurs
21first; provided that no credit earned in a tax year ending
22prior to December 31, 2003 may be carried forward to any year
23ending on or after December 31, 2003.
24    If an unused credit is carried forward to a given year from
252 or more earlier years, that credit arising in the earliest
26year will be applied first against the tax liability for the

 

 

10000HB2498ham001- 124 -LRB100 03891 MJP 22700 a

1given year. If a tax liability for the given year still
2remains, the credit from the next earliest year will then be
3applied, and so on, until all credits have been used or no tax
4liability for the given year remains. Any remaining unused
5credit or credits then will be carried forward to the next
6following year in which a tax liability is incurred, except
7that no credit can be carried forward to a year which is more
8than 5 years after the year in which the expense for which the
9credit is given was incurred.
10    No inference shall be drawn from this amendatory Act of the
1191st General Assembly in construing this Section for taxable
12years beginning before January 1, 1999.
13    (l) Environmental Remediation Tax Credit.
14        (i) For tax years ending after December 31, 1997 and on
15    or before December 31, 2001, a taxpayer shall be allowed a
16    credit against the tax imposed by subsections (a) and (b)
17    of this Section for certain amounts paid for unreimbursed
18    eligible remediation costs, as specified in this
19    subsection. For purposes of this Section, "unreimbursed
20    eligible remediation costs" means costs approved by the
21    Illinois Environmental Protection Agency ("Agency") under
22    Section 58.14 of the Environmental Protection Act that were
23    paid in performing environmental remediation at a site for
24    which a No Further Remediation Letter was issued by the
25    Agency and recorded under Section 58.10 of the
26    Environmental Protection Act. The credit must be claimed

 

 

10000HB2498ham001- 125 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 126 -LRB100 03891 MJP 22700 a

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

 

 

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1    chain of title for the site and provide written notice to
2    the Director of the Illinois Department of Revenue of the
3    assignor's intent to sell the remediation site and the
4    amount of the tax credit to be transferred as a portion of
5    the sale. In no event may a credit be transferred to any
6    taxpayer if the taxpayer or a related party would not be
7    eligible under the provisions of subsection (i).
8        (iii) For purposes of this Section, the term "site"
9    shall have the same meaning as under Section 58.2 of the
10    Environmental Protection Act.
11    (m) Education expense credit. Beginning with tax years
12ending after December 31, 1999, a taxpayer who is the custodian
13of one or more qualifying pupils shall be allowed a credit
14against the tax imposed by subsections (a) and (b) of this
15Section for qualified education expenses incurred on behalf of
16the qualifying pupils. The credit shall be equal to 25% of
17qualified education expenses, but in no event may the total
18credit under this subsection claimed by a family that is the
19custodian of qualifying pupils exceed $500. In no event shall a
20credit under this subsection reduce the taxpayer's liability
21under this Act to less than zero. This subsection is exempt
22from the provisions of Section 250 of this Act.
23    For purposes of this subsection:
24    "Qualifying pupils" means individuals who (i) are
25residents of the State of Illinois, (ii) are under the age of
2621 at the close of the school year for which a credit is

 

 

10000HB2498ham001- 128 -LRB100 03891 MJP 22700 a

1sought, and (iii) during the school year for which a credit is
2sought were full-time pupils enrolled in a kindergarten through
3twelfth grade education program at any school, as defined in
4this subsection.
5    "Qualified education expense" means the amount incurred on
6behalf of a qualifying pupil in excess of $250 for tuition,
7book fees, and lab fees at the school in which the pupil is
8enrolled during the regular school year.
9    "School" means any public or nonpublic elementary or
10secondary school in Illinois that is in compliance with Title
11VI of the Civil Rights Act of 1964 and attendance at which
12satisfies the requirements of Section 26-1 of the School Code,
13except that nothing shall be construed to require a child to
14attend any particular public or nonpublic school to qualify for
15the credit under this Section.
16    "Custodian" means, with respect to qualifying pupils, an
17Illinois resident who is a parent, the parents, a legal
18guardian, or the legal guardians of the qualifying pupils.
19    (n) River Edge Redevelopment Zone site remediation tax
20credit.
21        (i) For tax years ending on or after December 31, 2006,
22    a taxpayer shall be allowed a credit against the tax
23    imposed by subsections (a) and (b) of this Section for
24    certain amounts paid for unreimbursed eligible remediation
25    costs, as specified in this subsection. For purposes of
26    this Section, "unreimbursed eligible remediation costs"

 

 

10000HB2498ham001- 129 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 130 -LRB100 03891 MJP 22700 a

1    of its partners. The credit allowed against the tax imposed
2    by subsections (a) and (b) shall be equal to 25% of the
3    unreimbursed eligible remediation costs in excess of
4    $100,000 per site.
5        (ii) A credit allowed under this subsection that is
6    unused in the year the credit is earned may be carried
7    forward to each of the 5 taxable years following the year
8    for which the credit is first earned until it is used. This
9    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).

 

 

10000HB2498ham001- 131 -LRB100 03891 MJP 22700 a

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    (o) For each of taxable years during the Compassionate Use
5of Medical Cannabis Pilot Program, a surcharge is imposed on
6all taxpayers on income arising from the sale or exchange of
7capital assets, depreciable business property, real property
8used in the trade or business, and Section 197 intangibles of
9an organization registrant under the Compassionate Use of
10Medical Cannabis Pilot Program Act. The amount of the surcharge
11is equal to the amount of federal income tax liability for the
12taxable year attributable to those sales and exchanges. The
13surcharge imposed does not apply if:
14        (1) the medical cannabis cultivation center
15    registration, medical cannabis dispensary registration, or
16    the property of a registration is transferred as a result
17    of any of the following:
18            (A) bankruptcy, a receivership, or a debt
19        adjustment initiated by or against the initial
20        registration or the substantial owners of the initial
21        registration;
22            (B) cancellation, revocation, or termination of
23        any registration by the Illinois Department of Public
24        Health;
25            (C) a determination by the Illinois Department of
26        Public Health that transfer of the registration is in

 

 

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1        the best interests of Illinois qualifying patients as
2        defined by the Compassionate Use of Medical Cannabis
3        Pilot Program Act;
4            (D) the death of an owner of the equity interest in
5        a registrant;
6            (E) the acquisition of a controlling interest in
7        the stock or substantially all of the assets of a
8        publicly traded company;
9            (F) a transfer by a parent company to a wholly
10        owned subsidiary; or
11            (G) the transfer or sale to or by one person to
12        another person where both persons were initial owners
13        of the registration when the registration was issued;
14        or
15        (2) the cannabis cultivation center registration,
16    medical cannabis dispensary registration, or the
17    controlling interest in a registrant's property is
18    transferred in a transaction to lineal descendants in which
19    no gain or loss is recognized or as a result of a
20    transaction in accordance with Section 351 of the Internal
21    Revenue Code in which no gain or loss is recognized.
22(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
23eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
24eff. 7-16-14.)
 
25    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)

 

 

10000HB2498ham001- 133 -LRB100 03891 MJP 22700 a

1    Sec. 303. (a) In general. Any item of capital gain or loss,
2and any item of income from rents or royalties from real or
3tangible personal property, interest, dividends, and patent or
4copyright royalties, and prizes awarded under the Illinois
5Lottery Law, and, for taxable years ending on or after December
631, 2017, wagering and gambling winnings from Illinois sources
7as set forth in subsection (e-1) of this Section, to the extent
8such item constitutes nonbusiness income, together with any
9item of deduction directly allocable thereto, shall be
10allocated by any person other than a resident as provided in
11this Section.
12    (b) Capital gains and losses.
13        (1) Real property. Capital gains and losses from sales
14    or exchanges of real property are allocable to this State
15    if the property is located in this State.
16        (2) Tangible personal property. Capital gains and
17    losses from sales or exchanges of tangible personal
18    property are allocable to this State if, at the time of
19    such sale or exchange:
20            (A) The property had its situs in this State; or
21            (B) The taxpayer had its commercial domicile in
22        this State and was not taxable in the state in which
23        the property had its situs.
24        (3) Intangibles. Capital gains and losses from sales or
25    exchanges of intangible personal property are allocable to
26    this State if the taxpayer had its commercial domicile in

 

 

10000HB2498ham001- 134 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 135 -LRB100 03891 MJP 22700 a

1        unascertainable by the taxpayer, tangible personal
2        property is utilized in the state in which the property
3        was located at the time the rental or royalty payer
4        obtained possession.
5    (d) Patent and copyright royalties.
6        (1) Allocation. Patent and copyright royalties are
7    allocable to this State:
8            (A) If and to the extent that the patent or
9        copyright is utilized by the payer in this State; or
10            (B) If and to the extent that the patent or
11        copyright is utilized by the payer in a state in which
12        the taxpayer is not taxable with respect to such
13        royalties and, at the time such royalties were paid or
14        accrued, the taxpayer had its commercial domicile in
15        this State.
16        (2) Utilization.
17            (A) A patent is utilized in a state to the extent
18        that it is employed in production, fabrication,
19        manufacturing or other processing in the state or to
20        the extent that a patented product is produced in the
21        state. If the basis of receipts from patent royalties
22        does not permit allocation to states or if the
23        accounting procedures do not reflect states of
24        utilization, the patent is utilized in this State if
25        the taxpayer has its commercial domicile in this State.
26            (B) A copyright is utilized in a state to the

 

 

10000HB2498ham001- 136 -LRB100 03891 MJP 22700 a

1        extent that printing or other publication originates
2        in the state. If the basis of receipts from copyright
3        royalties does not permit allocation to states or if
4        the accounting procedures do not reflect states of
5        utilization, the copyright is utilized in this State if
6        the taxpayer has its commercial domicile in this State.
7    (e) Illinois lottery prizes. Prizes awarded under the
8Illinois Lottery Law are allocable to this State. Payments
9received in taxable years ending on or after December 31, 2013,
10from the assignment of a prize under Section 13.1 of the
11Illinois Lottery Law are allocable to this State.
12    (e-1) Wagering and gambling winnings. Payments received in
13taxable years ending on or after December 31, 2017 of winnings
14from pari-mutuel wagering conducted at a wagering facility
15licensed under the Illinois Horse Racing Act of 1975 and from
16gambling games conducted on a riverboat or in a casino or
17electronic gaming facility licensed under the Illinois
18Gambling Act are allocable to this State.
19    (e-5) Unemployment benefits. Unemployment benefits paid by
20the Illinois Department of Employment Security are allocable to
21this State.
22    (f) Taxability in other state. For purposes of allocation
23of income pursuant to this Section, a taxpayer is taxable in
24another state if:
25        (1) In that state he is subject to a net income tax, a
26    franchise tax measured by net income, a franchise tax for

 

 

10000HB2498ham001- 137 -LRB100 03891 MJP 22700 a

1    the privilege of doing business, or a corporate stock tax;
2    or
3        (2) That state has jurisdiction to subject the taxpayer
4    to a net income tax regardless of whether, in fact, the
5    state does or does not.
6    (g) Cross references.
7        (1) For allocation of interest and dividends by persons
8    other than residents, see Section 301(c)(2).
9        (2) For allocation of nonbusiness income by residents,
10    see Section 301(a).
11(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
 
12    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
13    Sec. 304. Business income of persons other than residents.
14    (a) In general. The business income of a person other than
15a resident shall be allocated to this State if such person's
16business income is derived solely from this State. If a person
17other than a resident derives business income from this State
18and one or more other states, then, for tax years ending on or
19before December 30, 1998, and except as otherwise provided by
20this Section, such person's business income shall be
21apportioned to this State by multiplying the income by a
22fraction, the numerator of which is the sum of the property
23factor (if any), the payroll factor (if any) and 200% of the
24sales factor (if any), and the denominator of which is 4
25reduced by the number of factors other than the sales factor

 

 

10000HB2498ham001- 138 -LRB100 03891 MJP 22700 a

1which have a denominator of zero and by an additional 2 if the
2sales factor has a denominator of zero. For tax years ending on
3or after December 31, 1998, and except as otherwise provided by
4this Section, persons other than residents who derive business
5income from this State and one or more other states shall
6compute their apportionment factor by weighting their
7property, payroll, and sales factors as provided in subsection
8(h) of this Section.
9    (1) Property factor.
10        (A) The property factor is a fraction, the numerator of
11    which is the average value of the person's real and
12    tangible personal property owned or rented and used in the
13    trade or business in this State during the taxable year and
14    the denominator of which is the average value of all the
15    person's real and tangible personal property owned or
16    rented and used in the trade or business during the taxable
17    year.
18        (B) Property owned by the person is valued at its
19    original cost. Property rented by the person is valued at 8
20    times the net annual rental rate. Net annual rental rate is
21    the annual rental rate paid by the person less any annual
22    rental rate received by the person from sub-rentals.
23        (C) The average value of property shall be determined
24    by averaging the values at the beginning and ending of the
25    taxable year but the Director may require the averaging of
26    monthly values during the taxable year if reasonably

 

 

10000HB2498ham001- 139 -LRB100 03891 MJP 22700 a

1    required to reflect properly the average value of the
2    person's property.
3    (2) Payroll factor.
4        (A) The payroll factor is a fraction, the numerator of
5    which is the total amount paid in this State during the
6    taxable year by the person for compensation, and the
7    denominator of which is the total compensation paid
8    everywhere during the taxable year.
9        (B) Compensation is paid in this State if:
10            (i) The individual's service is performed entirely
11        within this State;
12            (ii) The individual's service is performed both
13        within and without this State, but the service
14        performed without this State is incidental to the
15        individual's service performed within this State; or
16            (iii) Some of the service is performed within this
17        State and either the base of operations, or if there is
18        no base of operations, the place from which the service
19        is directed or controlled is within this State, or the
20        base of operations or the place from which the service
21        is directed or controlled is not in any state in which
22        some part of the service is performed, but the
23        individual's residence is in this State.
24            (iv) Compensation paid to nonresident professional
25        athletes.
26            (a) General. The Illinois source income of a

 

 

10000HB2498ham001- 140 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 141 -LRB100 03891 MJP 22700 a

1            professional athletic team on a regular basis.
2            This includes, but is not limited to, coaches,
3            managers, and trainers.
4                (3) Except as provided in items (C) and (D) of
5            this subpart (3), the term "duty days" means all
6            days during the taxable year from the beginning of
7            the professional athletic team's official
8            pre-season training period through the last game
9            in which the team competes or is scheduled to
10            compete. Duty days shall be counted for the year in
11            which they occur, including where a team's
12            official pre-season training period through the
13            last game in which the team competes or is
14            scheduled to compete, occurs during more than one
15            tax year.
16                    (A) Duty days shall also include days on
17                which a member of a professional athletic team
18                performs service for a team on a date that does
19                not fall within the foregoing period (e.g.,
20                participation in instructional leagues, the
21                "All Star Game", or promotional "caravans").
22                Performing a service for a professional
23                athletic team includes conducting training and
24                rehabilitation activities, when such
25                activities are conducted at team facilities.
26                    (B) Also included in duty days are game

 

 

10000HB2498ham001- 142 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 143 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 144 -LRB100 03891 MJP 22700 a

1            professional athletic team for services performed
2            in that year. This compensation does not include
3            strike benefits, severance pay, termination pay,
4            contract or option year buy-out payments,
5            expansion or relocation payments, or any other
6            payments not related to services performed for the
7            team.
8                For purposes of this subparagraph, "bonuses"
9            included in "total compensation for services
10            performed as a member of a professional athletic
11            team" subject to the allocation described in
12            Section 302(c)(1) are: bonuses earned as a result
13            of play (i.e., performance bonuses) during the
14            season, including bonuses paid for championship,
15            playoff or "bowl" games played by a team, or for
16            selection to all-star league or other honorary
17            positions; and bonuses paid for signing a
18            contract, unless the payment of the signing bonus
19            is not conditional upon the signee playing any
20            games for the team or performing any subsequent
21            services for the team or even making the team, the
22            signing bonus is payable separately from the
23            salary and any other compensation, and the signing
24            bonus is nonrefundable.
25    (3) Sales factor.
26        (A) The sales factor is a fraction, the numerator of

 

 

10000HB2498ham001- 145 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 146 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 147 -LRB100 03891 MJP 22700 a

1            in more than one state, the extent to which it is
2            utilized in any one state shall be a fraction equal
3            to the gross receipts from sales or licenses of
4            materials printed or published in that state
5            divided by the total of such gross receipts for all
6            states in which the copyright is utilized.
7                (III) Trademarks and other items of intangible
8            personal property governed by this paragraph (B-1)
9            are utilized in the state in which the commercial
10            domicile of the licensee or purchaser is located.
11            (iii) If the state of utilization of an item of
12        property governed by this paragraph (B-1) cannot be
13        determined from the taxpayer's books and records or
14        from the books and records of any person related to the
15        taxpayer within the meaning of Section 267(b) of the
16        Internal Revenue Code, 26 U.S.C. 267, the gross
17        receipts attributable to that item shall be excluded
18        from both the numerator and the denominator of the
19        sales factor.
20        (B-2) Gross receipts from the license, sale, or other
21    disposition of patents, copyrights, trademarks, and
22    similar items of intangible personal property, other than
23    gross receipts governed by paragraph (B-7) of this item
24    (3), may be included in the numerator or denominator of the
25    sales factor only if gross receipts from licenses, sales,
26    or other disposition of such items comprise more than 50%

 

 

10000HB2498ham001- 148 -LRB100 03891 MJP 22700 a

1    of the taxpayer's total gross receipts included in gross
2    income during the tax year and during each of the 2
3    immediately preceding tax years; provided that, when a
4    taxpayer is a member of a unitary business group, such
5    determination shall be made on the basis of the gross
6    receipts of the entire unitary business group.
7        (B-5) For taxable years ending on or after December 31,
8    2008, except as provided in subsections (ii) through (vii),
9    receipts from the sale of telecommunications service or
10    mobile telecommunications service are in this State if the
11    customer's service address is in this State.
12            (i) For purposes of this subparagraph (B-5), the
13        following terms have the following meanings:
14            "Ancillary services" means services that are
15        associated with or incidental to the provision of
16        "telecommunications services", including but not
17        limited to "detailed telecommunications billing",
18        "directory assistance", "vertical service", and "voice
19        mail services".
20            "Air-to-Ground Radiotelephone service" means a
21        radio service, as that term is defined in 47 CFR 22.99,
22        in which common carriers are authorized to offer and
23        provide radio telecommunications service for hire to
24        subscribers in aircraft.
25            "Call-by-call Basis" means any method of charging
26        for telecommunications services where the price is

 

 

10000HB2498ham001- 149 -LRB100 03891 MJP 22700 a

1        measured by individual calls.
2            "Communications Channel" means a physical or
3        virtual path of communications over which signals are
4        transmitted between or among customer channel
5        termination points.
6            "Conference bridging service" means an "ancillary
7        service" that links two or more participants of an
8        audio or video conference call and may include the
9        provision of a telephone number. "Conference bridging
10        service" does not include the "telecommunications
11        services" used to reach the conference bridge.
12            "Customer Channel Termination Point" means the
13        location where the customer either inputs or receives
14        the communications.
15            "Detailed telecommunications billing service"
16        means an "ancillary service" of separately stating
17        information pertaining to individual calls on a
18        customer's billing statement.
19            "Directory assistance" means an "ancillary
20        service" of providing telephone number information,
21        and/or address information.
22            "Home service provider" means the facilities based
23        carrier or reseller with which the customer contracts
24        for the provision of mobile telecommunications
25        services.
26            "Mobile telecommunications service" means

 

 

10000HB2498ham001- 150 -LRB100 03891 MJP 22700 a

1        commercial mobile radio service, as defined in Section
2        20.3 of Title 47 of the Code of Federal Regulations as
3        in effect on June 1, 1999.
4            "Place of primary use" means the street address
5        representative of where the customer's use of the
6        telecommunications service primarily occurs, which
7        must be the residential street address or the primary
8        business street address of the customer. In the case of
9        mobile telecommunications services, "place of primary
10        use" must be within the licensed service area of the
11        home service provider.
12            "Post-paid telecommunication service" means the
13        telecommunications service obtained by making a
14        payment on a call-by-call basis either through the use
15        of a credit card or payment mechanism such as a bank
16        card, travel card, credit card, or debit card, or by
17        charge made to a telephone number which is not
18        associated with the origination or termination of the
19        telecommunications service. A post-paid calling
20        service includes telecommunications service, except a
21        prepaid wireless calling service, that would be a
22        prepaid calling service except it is not exclusively a
23        telecommunication service.
24            "Prepaid telecommunication service" means the
25        right to access exclusively telecommunications
26        services, which must be paid for in advance and which

 

 

10000HB2498ham001- 151 -LRB100 03891 MJP 22700 a

1        enables the origination of calls using an access number
2        or authorization code, whether manually or
3        electronically dialed, and that is sold in
4        predetermined units or dollars of which the number
5        declines with use in a known amount.
6            "Prepaid Mobile telecommunication service" means a
7        telecommunications service that provides the right to
8        utilize mobile wireless service as well as other
9        non-telecommunication services, including but not
10        limited to ancillary services, which must be paid for
11        in advance that is sold in predetermined units or
12        dollars of which the number declines with use in a
13        known amount.
14            "Private communication service" means a
15        telecommunication service that entitles the customer
16        to exclusive or priority use of a communications
17        channel or group of channels between or among
18        termination points, regardless of the manner in which
19        such channel or channels are connected, and includes
20        switching capacity, extension lines, stations, and any
21        other associated services that are provided in
22        connection with the use of such channel or channels.
23            "Service address" means:
24                (a) The location of the telecommunications
25            equipment to which a customer's call is charged and
26            from which the call originates or terminates,

 

 

10000HB2498ham001- 152 -LRB100 03891 MJP 22700 a

1            regardless of where the call is billed or paid;
2                (b) If the location in line (a) is not known,
3            service address means the origination point of the
4            signal of the telecommunications services first
5            identified by either the seller's
6            telecommunications system or in information
7            received by the seller from its service provider
8            where the system used to transport such signals is
9            not that of the seller; and
10                (c) If the locations in line (a) and line (b)
11            are not known, the service address means the
12            location of the customer's place of primary use.
13            "Telecommunications service" means the electronic
14        transmission, conveyance, or routing of voice, data,
15        audio, video, or any other information or signals to a
16        point, or between or among points. The term
17        "telecommunications service" includes such
18        transmission, conveyance, or routing in which computer
19        processing applications are used to act on the form,
20        code or protocol of the content for purposes of
21        transmission, conveyance or routing without regard to
22        whether such service is referred to as voice over
23        Internet protocol services or is classified by the
24        Federal Communications Commission as enhanced or value
25        added. "Telecommunications service" does not include:
26                (a) Data processing and information services

 

 

10000HB2498ham001- 153 -LRB100 03891 MJP 22700 a

1            that allow data to be generated, acquired, stored,
2            processed, or retrieved and delivered by an
3            electronic transmission to a purchaser when such
4            purchaser's primary purpose for the underlying
5            transaction is the processed data or information;
6                (b) Installation or maintenance of wiring or
7            equipment on a customer's premises;
8                (c) Tangible personal property;
9                (d) Advertising, including but not limited to
10            directory advertising; .
11                (e) Billing and collection services provided
12            to third parties;
13                (f) Internet access service;
14                (g) Radio and television audio and video
15            programming services, regardless of the medium,
16            including the furnishing of transmission,
17            conveyance and routing of such services by the
18            programming service provider. Radio and television
19            audio and video programming services shall include
20            but not be limited to cable service as defined in
21            47 USC 522(6) and audio and video programming
22            services delivered by commercial mobile radio
23            service providers, as defined in 47 CFR 20.3;
24                (h) "Ancillary services"; or
25                (i) Digital products "delivered
26            electronically", including but not limited to

 

 

10000HB2498ham001- 154 -LRB100 03891 MJP 22700 a

1            software, music, video, reading materials or ring
2            tones.
3            "Vertical service" means an "ancillary service"
4        that is offered in connection with one or more
5        "telecommunications services", which offers advanced
6        calling features that allow customers to identify
7        callers and to manage multiple calls and call
8        connections, including "conference bridging services".
9            "Voice mail service" means an "ancillary service"
10        that enables the customer to store, send or receive
11        recorded messages. "Voice mail service" does not
12        include any "vertical services" that the customer may
13        be required to have in order to utilize the "voice mail
14        service".
15            (ii) Receipts from the sale of telecommunications
16        service sold on an individual call-by-call basis are in
17        this State if either of the following applies:
18                (a) The call both originates and terminates in
19            this State.
20                (b) The call either originates or terminates
21            in this State and the service address is located in
22            this State.
23            (iii) Receipts from the sale of postpaid
24        telecommunications service at retail are in this State
25        if the origination point of the telecommunication
26        signal, as first identified by the service provider's

 

 

10000HB2498ham001- 155 -LRB100 03891 MJP 22700 a

1        telecommunication system or as identified by
2        information received by the seller from its service
3        provider if the system used to transport
4        telecommunication signals is not the seller's, is
5        located in this State.
6            (iv) Receipts from the sale of prepaid
7        telecommunications service or prepaid mobile
8        telecommunications service at retail are in this State
9        if the purchaser obtains the prepaid card or similar
10        means of conveyance at a location in this State.
11        Receipts from recharging a prepaid telecommunications
12        service or mobile telecommunications service is in
13        this State if the purchaser's billing information
14        indicates a location in this State.
15            (v) Receipts from the sale of private
16        communication services are in this State as follows:
17                (a) 100% of receipts from charges imposed at
18            each channel termination point in this State.
19                (b) 100% of receipts from charges for the total
20            channel mileage between each channel termination
21            point in this State.
22                (c) 50% of the total receipts from charges for
23            service segments when those segments are between 2
24            customer channel termination points, 1 of which is
25            located in this State and the other is located
26            outside of this State, which segments are

 

 

10000HB2498ham001- 156 -LRB100 03891 MJP 22700 a

1            separately charged.
2                (d) The receipts from charges for service
3            segments with a channel termination point located
4            in this State and in two or more other states, and
5            which segments are not separately billed, are in
6            this State based on a percentage determined by
7            dividing the number of customer channel
8            termination points in this State by the total
9            number of customer channel termination points.
10            (vi) Receipts from charges for ancillary services
11        for telecommunications service sold to customers at
12        retail are in this State if the customer's primary
13        place of use of telecommunications services associated
14        with those ancillary services is in this State. If the
15        seller of those ancillary services cannot determine
16        where the associated telecommunications are located,
17        then the ancillary services shall be based on the
18        location of the purchaser.
19            (vii) Receipts to access a carrier's network or
20        from the sale of telecommunication services or
21        ancillary services for resale are in this State as
22        follows:
23                (a) 100% of the receipts from access fees
24            attributable to intrastate telecommunications
25            service that both originates and terminates in
26            this State.

 

 

10000HB2498ham001- 157 -LRB100 03891 MJP 22700 a

1                (b) 50% of the receipts from access fees
2            attributable to interstate telecommunications
3            service if the interstate call either originates
4            or terminates in this State.
5                (c) 100% of the receipts from interstate end
6            user access line charges, if the customer's
7            service address is in this State. As used in this
8            subdivision, "interstate end user access line
9            charges" includes, but is not limited to, the
10            surcharge approved by the federal communications
11            commission and levied pursuant to 47 CFR 69.
12                (d) Gross receipts from sales of
13            telecommunication services or from ancillary
14            services for telecommunications services sold to
15            other telecommunication service providers for
16            resale shall be sourced to this State using the
17            apportionment concepts used for non-resale
18            receipts of telecommunications services if the
19            information is readily available to make that
20            determination. If the information is not readily
21            available, then the taxpayer may use any other
22            reasonable and consistent method.
23        (B-7) For taxable years ending on or after December 31,
24    2008, receipts from the sale of broadcasting services are
25    in this State if the broadcasting services are received in
26    this State. For purposes of this paragraph (B-7), the

 

 

10000HB2498ham001- 158 -LRB100 03891 MJP 22700 a

1    following terms have the following meanings:
2            "Advertising revenue" means consideration received
3        by the taxpayer in exchange for broadcasting services
4        or allowing the broadcasting of commercials or
5        announcements in connection with the broadcasting of
6        film or radio programming, from sponsorships of the
7        programming, or from product placements in the
8        programming.
9            "Audience factor" means the ratio that the
10        audience or subscribers located in this State of a
11        station, a network, or a cable system bears to the
12        total audience or total subscribers for that station,
13        network, or cable system. The audience factor for film
14        or radio programming shall be determined by reference
15        to the books and records of the taxpayer or by
16        reference to published rating statistics provided the
17        method used by the taxpayer is consistently used from
18        year to year for this purpose and fairly represents the
19        taxpayer's activity in this State.
20            "Broadcast" or "broadcasting" or "broadcasting
21        services" means the transmission or provision of film
22        or radio programming, whether through the public
23        airwaves, by cable, by direct or indirect satellite
24        transmission, or by any other means of communication,
25        either through a station, a network, or a cable system.
26            "Film" or "film programming" means the broadcast

 

 

10000HB2498ham001- 159 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 160 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 161 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 162 -LRB100 03891 MJP 22700 a

1            which the services were ordered in the regular
2            course of the customer's trade or business.
3            Accordingly, in such a case the revenue derived by
4            the taxpayer that is included in the taxpayer's
5            Illinois numerator of the sales factor is the
6            revenue from such customers who receive the
7            broadcasting service in Illinois.
8        (B-8) Gross receipts from winnings under the Illinois
9    Lottery Law from the assignment of a prize under Section
10    13.1 of the Illinois Lottery Law are received in this
11    State. This paragraph (B-8) applies only to taxable years
12    ending on or after December 31, 2013.
13        (B-9) For taxable years ending on or after December 31,
14    2017, gross receipts from winnings from pari-mutuel
15    wagering conducted at a wagering facility licensed under
16    the Illinois Horse Racing Act of 1975 or from winnings from
17    gambling games conducted on a riverboat or in a casino or
18    electronic gaming facility licensed under the Illinois
19    Gambling Act are in this State.
20        (C) For taxable years ending before December 31, 2008,
21    sales, other than sales governed by paragraphs (B), (B-1),
22    (B-2), and (B-8) are in this State if:
23            (i) The income-producing activity is performed in
24        this State; or
25            (ii) The income-producing activity is performed
26        both within and without this State and a greater

 

 

10000HB2498ham001- 163 -LRB100 03891 MJP 22700 a

1        proportion of the income-producing activity is
2        performed within this State than without this State,
3        based on performance costs.
4        (C-5) For taxable years ending on or after December 31,
5    2008, sales, other than sales governed by paragraphs (B),
6    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
7    the following criteria are met:
8            (i) Sales from the sale or lease of real property
9        are in this State if the property is located in this
10        State.
11            (ii) Sales from the lease or rental of tangible
12        personal property are in this State if the property is
13        located in this State during the rental period. Sales
14        from the lease or rental of tangible personal property
15        that is characteristically moving property, including,
16        but not limited to, motor vehicles, rolling stock,
17        aircraft, vessels, or mobile equipment are in this
18        State to the extent that the property is used in this
19        State.
20            (iii) In the case of interest, net gains (but not
21        less than zero) and other items of income from
22        intangible personal property, the sale is in this State
23        if:
24                (a) in the case of a taxpayer who is a dealer
25            in the item of intangible personal property within
26            the meaning of Section 475 of the Internal Revenue

 

 

10000HB2498ham001- 164 -LRB100 03891 MJP 22700 a

1            Code, the income or gain is received from a
2            customer in this State. For purposes of this
3            subparagraph, a customer is in this State if the
4            customer is an individual, trust or estate who is a
5            resident of this State and, for all other
6            customers, if the customer's commercial domicile
7            is in this State. Unless the dealer has actual
8            knowledge of the residence or commercial domicile
9            of a customer during a taxable year, the customer
10            shall be deemed to be a customer in this State if
11            the billing address of the customer, as shown in
12            the records of the dealer, is in this State; or
13                (b) in all other cases, if the
14            income-producing activity of the taxpayer is
15            performed in this State or, if the
16            income-producing activity of the taxpayer is
17            performed both within and without this State, if a
18            greater proportion of the income-producing
19            activity of the taxpayer is performed within this
20            State than in any other state, based on performance
21            costs.
22            (iv) Sales of services are in this State if the
23        services are received in this State. For the purposes
24        of this section, gross receipts from the performance of
25        services provided to a corporation, partnership, or
26        trust may only be attributed to a state where that

 

 

10000HB2498ham001- 165 -LRB100 03891 MJP 22700 a

1        corporation, partnership, or trust has a fixed place of
2        business. If the state where the services are received
3        is not readily determinable or is a state where the
4        corporation, partnership, or trust receiving the
5        service does not have a fixed place of business, the
6        services shall be deemed to be received at the location
7        of the office of the customer from which the services
8        were ordered in the regular course of the customer's
9        trade or business. If the ordering office cannot be
10        determined, the services shall be deemed to be received
11        at the office of the customer to which the services are
12        billed. If the taxpayer is not taxable in the state in
13        which the services are received, the sale must be
14        excluded from both the numerator and the denominator of
15        the sales factor. The Department shall adopt rules
16        prescribing where specific types of service are
17        received, including, but not limited to, publishing,
18        and utility service.
19        (D) For taxable years ending on or after December 31,
20    1995, the following items of income shall not be included
21    in the numerator or denominator of the sales factor:
22    dividends; amounts included under Section 78 of the
23    Internal Revenue Code; and Subpart F income as defined in
24    Section 952 of the Internal Revenue Code. No inference
25    shall be drawn from the enactment of this paragraph (D) in
26    construing this Section for taxable years ending before

 

 

10000HB2498ham001- 166 -LRB100 03891 MJP 22700 a

1    December 31, 1995.
2        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
3    ending on or after December 31, 1999, provided that a
4    taxpayer may elect to apply the provisions of these
5    paragraphs to prior tax years. Such election shall be made
6    in the form and manner prescribed by the Department, shall
7    be irrevocable, and shall apply to all tax years; provided
8    that, if a taxpayer's Illinois income tax liability for any
9    tax year, as assessed under Section 903 prior to January 1,
10    1999, was computed in a manner contrary to the provisions
11    of paragraphs (B-1) or (B-2), no refund shall be payable to
12    the taxpayer for that tax year to the extent such refund is
13    the result of applying the provisions of paragraph (B-1) or
14    (B-2) retroactively. In the case of a unitary business
15    group, such election shall apply to all members of such
16    group for every tax year such group is in existence, but
17    shall not apply to any taxpayer for any period during which
18    that taxpayer is not a member of such group.
19    (b) Insurance companies.
20        (1) In general. Except as otherwise provided by
21    paragraph (2), business income of an insurance company for
22    a taxable year shall be apportioned to this State by
23    multiplying such income by a fraction, the numerator of
24    which is the direct premiums written for insurance upon
25    property or risk in this State, and the denominator of
26    which is the direct premiums written for insurance upon

 

 

10000HB2498ham001- 167 -LRB100 03891 MJP 22700 a

1    property or risk everywhere. For purposes of this
2    subsection, the term "direct premiums written" means the
3    total amount of direct premiums written, assessments and
4    annuity considerations as reported for the taxable year on
5    the annual statement filed by the company with the Illinois
6    Director of Insurance in the form approved by the National
7    Convention of Insurance Commissioners or such other form as
8    may be prescribed in lieu thereof.
9        (2) Reinsurance. If the principal source of premiums
10    written by an insurance company consists of premiums for
11    reinsurance accepted by it, the business income of such
12    company shall be apportioned to this State by multiplying
13    such income by a fraction, the numerator of which is the
14    sum of (i) direct premiums written for insurance upon
15    property or risk in this State, plus (ii) premiums written
16    for reinsurance accepted in respect of property or risk in
17    this State, and the denominator of which is the sum of
18    (iii) direct premiums written for insurance upon property
19    or risk everywhere, plus (iv) premiums written for
20    reinsurance accepted in respect of property or risk
21    everywhere. For purposes of this paragraph, premiums
22    written for reinsurance accepted in respect of property or
23    risk in this State, whether or not otherwise determinable,
24    may, at the election of the company, be determined on the
25    basis of the proportion which premiums written for
26    reinsurance accepted from companies commercially domiciled

 

 

10000HB2498ham001- 168 -LRB100 03891 MJP 22700 a

1    in Illinois bears to premiums written for reinsurance
2    accepted from all sources, or, alternatively, in the
3    proportion which the sum of the direct premiums written for
4    insurance upon property or risk in this State by each
5    ceding company from which reinsurance is accepted bears to
6    the sum of the total direct premiums written by each such
7    ceding company for the taxable year. The election made by a
8    company under this paragraph for its first taxable year
9    ending on or after December 31, 2011, shall be binding for
10    that company for that taxable year and for all subsequent
11    taxable years, and may be altered only with the written
12    permission of the Department, which shall not be
13    unreasonably withheld.
14    (c) Financial organizations.
15        (1) In general. For taxable years ending before
16    December 31, 2008, business income of a financial
17    organization shall be apportioned to this State by
18    multiplying such income by a fraction, the numerator of
19    which is its business income from sources within this
20    State, and the denominator of which is its business income
21    from all sources. For the purposes of this subsection, the
22    business income of a financial organization from sources
23    within this State is the sum of the amounts referred to in
24    subparagraphs (A) through (E) following, but excluding the
25    adjusted income of an international banking facility as
26    determined in paragraph (2):

 

 

10000HB2498ham001- 169 -LRB100 03891 MJP 22700 a

1            (A) Fees, commissions or other compensation for
2        financial services rendered within this State;
3            (B) Gross profits from trading in stocks, bonds or
4        other securities managed within this State;
5            (C) Dividends, and interest from Illinois
6        customers, which are received within this State;
7            (D) Interest charged to customers at places of
8        business maintained within this State for carrying
9        debit balances of margin accounts, without deduction
10        of any costs incurred in carrying such accounts; and
11            (E) Any other gross income resulting from the
12        operation as a financial organization within this
13        State. In computing the amounts referred to in
14        paragraphs (A) through (E) of this subsection, any
15        amount received by a member of an affiliated group
16        (determined under Section 1504(a) of the Internal
17        Revenue Code but without reference to whether any such
18        corporation is an "includible corporation" under
19        Section 1504(b) of the Internal Revenue Code) from
20        another member of such group shall be included only to
21        the extent such amount exceeds expenses of the
22        recipient directly related thereto.
23        (2) International Banking Facility. For taxable years
24    ending before December 31, 2008:
25            (A) Adjusted Income. The adjusted income of an
26        international banking facility is its income reduced

 

 

10000HB2498ham001- 170 -LRB100 03891 MJP 22700 a

1        by the amount of the floor amount.
2            (B) Floor Amount. The floor amount shall be the
3        amount, if any, determined by multiplying the income of
4        the international banking facility by a fraction, not
5        greater than one, which is determined as follows:
6                (i) The numerator shall be:
7                The average aggregate, determined on a
8            quarterly basis, of the financial organization's
9            loans to banks in foreign countries, to foreign
10            domiciled borrowers (except where secured
11            primarily by real estate) and to foreign
12            governments and other foreign official
13            institutions, as reported for its branches,
14            agencies and offices within the state on its
15            "Consolidated Report of Condition", Schedule A,
16            Lines 2.c., 5.b., and 7.a., which was filed with
17            the Federal Deposit Insurance Corporation and
18            other regulatory authorities, for the year 1980,
19            minus
20                The average aggregate, determined on a
21            quarterly basis, of such loans (other than loans of
22            an international banking facility), as reported by
23            the financial institution for its branches,
24            agencies and offices within the state, on the
25            corresponding Schedule and lines of the
26            Consolidated Report of Condition for the current

 

 

10000HB2498ham001- 171 -LRB100 03891 MJP 22700 a

1            taxable year, provided, however, that in no case
2            shall the amount determined in this clause (the
3            subtrahend) exceed the amount determined in the
4            preceding clause (the minuend); and
5                (ii) the denominator shall be the average
6            aggregate, determined on a quarterly basis, of the
7            international banking facility's loans to banks in
8            foreign countries, to foreign domiciled borrowers
9            (except where secured primarily by real estate)
10            and to foreign governments and other foreign
11            official institutions, which were recorded in its
12            financial accounts for the current taxable year.
13            (C) Change to Consolidated Report of Condition and
14        in Qualification. In the event the Consolidated Report
15        of Condition which is filed with the Federal Deposit
16        Insurance Corporation and other regulatory authorities
17        is altered so that the information required for
18        determining the floor amount is not found on Schedule
19        A, lines 2.c., 5.b. and 7.a., the financial institution
20        shall notify the Department and the Department may, by
21        regulations or otherwise, prescribe or authorize the
22        use of an alternative source for such information. The
23        financial institution shall also notify the Department
24        should its international banking facility fail to
25        qualify as such, in whole or in part, or should there
26        be any amendment or change to the Consolidated Report

 

 

10000HB2498ham001- 172 -LRB100 03891 MJP 22700 a

1        of Condition, as originally filed, to the extent such
2        amendment or change alters the information used in
3        determining the floor amount.
4        (3) For taxable years ending on or after December 31,
5    2008, the business income of a financial organization shall
6    be apportioned to this State by multiplying such income by
7    a fraction, the numerator of which is its gross receipts
8    from sources in this State or otherwise attributable to
9    this State's marketplace and the denominator of which is
10    its gross receipts everywhere during the taxable year.
11    "Gross receipts" for purposes of this subparagraph (3)
12    means gross income, including net taxable gain on
13    disposition of assets, including securities and money
14    market instruments, when derived from transactions and
15    activities in the regular course of the financial
16    organization's trade or business. The following examples
17    are illustrative:
18            (i) Receipts from the lease or rental of real or
19        tangible personal property are in this State if the
20        property is located in this State during the rental
21        period. Receipts from the lease or rental of tangible
22        personal property that is characteristically moving
23        property, including, but not limited to, motor
24        vehicles, rolling stock, aircraft, vessels, or mobile
25        equipment are from sources in this State to the extent
26        that the property is used in this State.

 

 

10000HB2498ham001- 173 -LRB100 03891 MJP 22700 a

1            (ii) Interest income, commissions, fees, gains on
2        disposition, and other receipts from assets in the
3        nature of loans that are secured primarily by real
4        estate or tangible personal property are from sources
5        in this State if the security is located in this State.
6            (iii) Interest income, commissions, fees, gains on
7        disposition, and other receipts from consumer loans
8        that are not secured by real or tangible personal
9        property are from sources in this State if the debtor
10        is a resident of this State.
11            (iv) Interest income, commissions, fees, gains on
12        disposition, and other receipts from commercial loans
13        and installment obligations that are not secured by
14        real or tangible personal property are from sources in
15        this State if the proceeds of the loan are to be
16        applied in this State. If it cannot be determined where
17        the funds are to be applied, the income and receipts
18        are from sources in this State if the office of the
19        borrower from which the loan was negotiated in the
20        regular course of business is located in this State. If
21        the location of this office cannot be determined, the
22        income and receipts shall be excluded from the
23        numerator and denominator of the sales factor.
24            (v) Interest income, fees, gains on disposition,
25        service charges, merchant discount income, and other
26        receipts from credit card receivables are from sources

 

 

10000HB2498ham001- 174 -LRB100 03891 MJP 22700 a

1        in this State if the card charges are regularly billed
2        to a customer in this State.
3            (vi) Receipts from the performance of services,
4        including, but not limited to, fiduciary, advisory,
5        and brokerage services, are in this State if the
6        services are received in this State within the meaning
7        of subparagraph (a)(3)(C-5)(iv) of this Section.
8            (vii) Receipts from the issuance of travelers
9        checks and money orders are from sources in this State
10        if the checks and money orders are issued from a
11        location within this State.
12            (viii) Receipts from investment assets and
13        activities and trading assets and activities are
14        included in the receipts factor as follows:
15                (1) Interest, dividends, net gains (but not
16            less than zero) and other income from investment
17            assets and activities from trading assets and
18            activities shall be included in the receipts
19            factor. Investment assets and activities and
20            trading assets and activities include but are not
21            limited to: investment securities; trading account
22            assets; federal funds; securities purchased and
23            sold under agreements to resell or repurchase;
24            options; futures contracts; forward contracts;
25            notional principal contracts such as swaps;
26            equities; and foreign currency transactions. With

 

 

10000HB2498ham001- 175 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 176 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 177 -LRB100 03891 MJP 22700 a

1                denominator of which is the gross income from
2                all such funds and such securities.
3                    (C) The amount of interest, dividends,
4                gains, and other income from trading assets and
5                activities, including but not limited to
6                assets and activities in the matched book, in
7                the arbitrage book and foreign currency
8                transactions (but excluding amounts described
9                in subparagraphs (A) or (B) of this paragraph),
10                attributable to this State and included in the
11                numerator is determined by multiplying the
12                amount described in subparagraph (B) of
13                paragraph (1) of this subsection by a fraction,
14                the numerator of which is the gross income from
15                such trading assets and activities which are
16                properly assigned to a fixed place of business
17                of the taxpayer within this State and the
18                denominator of which is the gross income from
19                all such assets and activities.
20                    (D) Properly assigned, for purposes of
21                this paragraph (2) of this subsection, means
22                the investment or trading asset or activity is
23                assigned to the fixed place of business with
24                which it has a preponderance of substantive
25                contacts. An investment or trading asset or
26                activity assigned by the taxpayer to a fixed

 

 

10000HB2498ham001- 178 -LRB100 03891 MJP 22700 a

1                place of business without the State shall be
2                presumed to have been properly assigned if:
3                        (i) the taxpayer has assigned, in the
4                    regular course of its business, such asset
5                    or activity on its records to a fixed place
6                    of business consistent with federal or
7                    state regulatory requirements;
8                        (ii) such assignment on its records is
9                    based upon substantive contacts of the
10                    asset or activity to such fixed place of
11                    business; and
12                        (iii) the taxpayer uses such records
13                    reflecting assignment of such assets or
14                    activities for the filing of all state and
15                    local tax returns for which an assignment
16                    of such assets or activities to a fixed
17                    place of business is required.
18                    (E) The presumption of proper assignment
19                of an investment or trading asset or activity
20                provided in subparagraph (D) of paragraph (2)
21                of this subsection may be rebutted upon a
22                showing by the Department, supported by a
23                preponderance of the evidence, that the
24                preponderance of substantive contacts
25                regarding such asset or activity did not occur
26                at the fixed place of business to which it was

 

 

10000HB2498ham001- 179 -LRB100 03891 MJP 22700 a

1                assigned on the taxpayer's records. If the
2                fixed place of business that has a
3                preponderance of substantive contacts cannot
4                be determined for an investment or trading
5                asset or activity to which the presumption in
6                subparagraph (D) of paragraph (2) of this
7                subsection does not apply or with respect to
8                which that presumption has been rebutted, that
9                asset or activity is properly assigned to the
10                state in which the taxpayer's commercial
11                domicile is located. For purposes of this
12                subparagraph (E), it shall be presumed,
13                subject to rebuttal, that taxpayer's
14                commercial domicile is in the state of the
15                United States or the District of Columbia to
16                which the greatest number of employees are
17                regularly connected with the management of the
18                investment or trading income or out of which
19                they are working, irrespective of where the
20                services of such employees are performed, as of
21                the last day of the taxable year.
22        (4) (Blank).
23        (5) (Blank).
24    (c-1) Federally regulated exchanges. For taxable years
25ending on or after December 31, 2012, business income of a
26federally regulated exchange shall, at the option of the

 

 

10000HB2498ham001- 180 -LRB100 03891 MJP 22700 a

1federally regulated exchange, be apportioned to this State by
2multiplying such income by a fraction, the numerator of which
3is its business income from sources within this State, and the
4denominator of which is its business income from all sources.
5For purposes of this subsection, the business income within
6this State of a federally regulated exchange is the sum of the
7following:
8        (1) Receipts attributable to transactions executed on
9    a physical trading floor if that physical trading floor is
10    located in this State.
11        (2) Receipts attributable to all other matching,
12    execution, or clearing transactions, including without
13    limitation receipts from the provision of matching,
14    execution, or clearing services to another entity,
15    multiplied by (i) for taxable years ending on or after
16    December 31, 2012 but before December 31, 2013, 63.77%; and
17    (ii) for taxable years ending on or after December 31,
18    2013, 27.54%.
19        (3) All other receipts not governed by subparagraphs
20    (1) or (2) of this subsection (c-1), to the extent the
21    receipts would be characterized as "sales in this State"
22    under item (3) of subsection (a) of this Section.
23    "Federally regulated exchange" means (i) a "registered
24entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
25or (C), (ii) an "exchange" or "clearing agency" within the
26meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such

 

 

10000HB2498ham001- 181 -LRB100 03891 MJP 22700 a

1entities regulated under any successor regulatory structure to
2the foregoing, and (iv) all taxpayers who are members of the
3same unitary business group as a federally regulated exchange,
4determined without regard to the prohibition in Section
51501(a)(27) of this Act against including in a unitary business
6group taxpayers who are ordinarily required to apportion
7business income under different subsections of this Section;
8provided that this subparagraph (iv) shall apply only if 50% or
9more of the business receipts of the unitary business group
10determined by application of this subparagraph (iv) for the
11taxable year are attributable to the matching, execution, or
12clearing of transactions conducted by an entity described in
13subparagraph (i), (ii), or (iii) of this paragraph.
14    In no event shall the Illinois apportionment percentage
15computed in accordance with this subsection (c-1) for any
16taxpayer for any tax year be less than the Illinois
17apportionment percentage computed under this subsection (c-1)
18for that taxpayer for the first full tax year ending on or
19after December 31, 2013 for which this subsection (c-1) applied
20to the taxpayer.
21    (d) Transportation services. For taxable years ending
22before December 31, 2008, business income derived from
23furnishing transportation services shall be apportioned to
24this State in accordance with paragraphs (1) and (2):
25        (1) Such business income (other than that derived from
26    transportation by pipeline) shall be apportioned to this

 

 

10000HB2498ham001- 182 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 183 -LRB100 03891 MJP 22700 a

1    1,000 cubic feet of gas, or of any specified quantity of
2    any other substance, the distance of 1 mile for a
3    consideration.
4        (3) For taxable years ending on or after December 31,
5    2008, business income derived from providing
6    transportation services other than airline services shall
7    be apportioned to this State by using a fraction, (a) the
8    numerator of which shall be (i) all receipts from any
9    movement or shipment of people, goods, mail, oil, gas, or
10    any other substance (other than by airline) that both
11    originates and terminates in this State, plus (ii) that
12    portion of the person's gross receipts from movements or
13    shipments of people, goods, mail, oil, gas, or any other
14    substance (other than by airline) that originates in one
15    state or jurisdiction and terminates in another state or
16    jurisdiction, that is determined by the ratio that the
17    miles traveled in this State bears to total miles
18    everywhere and (b) the denominator of which shall be all
19    revenue derived from the movement or shipment of people,
20    goods, mail, oil, gas, or any other substance (other than
21    by airline). Where a taxpayer is engaged in the
22    transportation of both passengers and freight, the
23    fraction above referred to shall first be determined
24    separately for passenger miles and freight miles. Then an
25    average of the passenger miles fraction and the freight
26    miles fraction shall be weighted to reflect the taxpayer's:

 

 

10000HB2498ham001- 184 -LRB100 03891 MJP 22700 a

1            (A) relative railway operating income from total
2        passenger and total freight service, as reported to the
3        Surface Transportation Board, in the case of
4        transportation by railroad; and
5            (B) relative gross receipts from passenger and
6        freight transportation, in case of transportation
7        other than by railroad.
8        (4) For taxable years ending on or after December 31,
9    2008, business income derived from furnishing airline
10    transportation services shall be apportioned to this State
11    by multiplying such income by a fraction, the numerator of
12    which is the revenue miles of the person in this State, and
13    the denominator of which is the revenue miles of the person
14    everywhere. For purposes of this paragraph, a revenue mile
15    is the transportation of one passenger or one net ton of
16    freight the distance of one mile for a consideration. If a
17    person is engaged in the transportation of both passengers
18    and freight, the fraction above referred to shall be
19    determined by means of an average of the passenger revenue
20    mile fraction and the freight revenue mile fraction,
21    weighted to reflect the person's relative gross receipts
22    from passenger and freight airline transportation.
23    (e) Combined apportionment. Where 2 or more persons are
24engaged in a unitary business as described in subsection
25(a)(27) of Section 1501, a part of which is conducted in this
26State by one or more members of the group, the business income

 

 

10000HB2498ham001- 185 -LRB100 03891 MJP 22700 a

1attributable to this State by any such member or members shall
2be apportioned by means of the combined apportionment method.
3    (f) Alternative allocation. If the allocation and
4apportionment provisions of subsections (a) through (e) and of
5subsection (h) do not, for taxable years ending before December
631, 2008, fairly represent the extent of a person's business
7activity in this State, or, for taxable years ending on or
8after December 31, 2008, fairly represent the market for the
9person's goods, services, or other sources of business income,
10the person may petition for, or the Director may, without a
11petition, permit or require, in respect of all or any part of
12the person's business activity, if reasonable:
13        (1) Separate accounting;
14        (2) The exclusion of any one or more factors;
15        (3) The inclusion of one or more additional factors
16    which will fairly represent the person's business
17    activities or market in this State; or
18        (4) The employment of any other method to effectuate an
19    equitable allocation and apportionment of the person's
20    business income.
21    (g) Cross reference. For allocation of business income by
22residents, see Section 301(a).
23    (h) For tax years ending on or after December 31, 1998, the
24apportionment factor of persons who apportion their business
25income to this State under subsection (a) shall be equal to:
26        (1) for tax years ending on or after December 31, 1998

 

 

10000HB2498ham001- 186 -LRB100 03891 MJP 22700 a

1    and before December 31, 1999, 16 2/3% of the property
2    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
3    the sales factor;
4        (2) for tax years ending on or after December 31, 1999
5    and before December 31, 2000, 8 1/3% of the property factor
6    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
7    factor;
8        (3) for tax years ending on or after December 31, 2000,
9    the sales factor.
10If, in any tax year ending on or after December 31, 1998 and
11before December 31, 2000, the denominator of the payroll,
12property, or sales factor is zero, the apportionment factor
13computed in paragraph (1) or (2) of this subsection for that
14year shall be divided by an amount equal to 100% minus the
15percentage weight given to each factor whose denominator is
16equal to zero.
17(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
18eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
 
19    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
20    Sec. 710. Withholding from lottery winnings.
21    (a) In general.
22        (1) Any person making a payment to a resident or
23    nonresident of winnings under the Illinois Lottery Law and
24    not required to withhold Illinois income tax from such
25    payment under Subsection (b) of Section 701 of this Act

 

 

10000HB2498ham001- 187 -LRB100 03891 MJP 22700 a

1    because those winnings are not subject to Federal income
2    tax withholding, must withhold Illinois income tax from
3    such payment at a rate equal to the percentage tax rate for
4    individuals provided in subsection (b) of Section 201,
5    provided that withholding is not required if such payment
6    of winnings is less than $1,000.
7        (2) In the case of an assignment of a lottery prize
8    under Section 13.1 of the Illinois Lottery Law, any person
9    making a payment of the purchase price after December 31,
10    2013, shall withhold from the amount of each payment at a
11    rate equal to the percentage tax rate for individuals
12    provided in subsection (b) of Section 201.
13        (3) Any person making a payment after December 31, 2017
14    to a resident or nonresident of winnings from pari-mutuel
15    wagering conducted at a wagering facility licensed under
16    the Illinois Horse Racing Act of 1975 or from gambling
17    games conducted on a riverboat or in a casino or electronic
18    gaming facility licensed under the Illinois Gambling Act
19    must withhold Illinois income tax from such payment at a
20    rate equal to the percentage tax rate for individuals
21    provided in subsection (b) of Section 201, provided that
22    the person making the payment is required to withhold under
23    Section 3402(q) of the Internal Revenue Code.
24    (b) Credit for taxes withheld. Any amount withheld under
25Subsection (a) shall be a credit against the Illinois income
26tax liability of the person to whom the payment of winnings was

 

 

10000HB2498ham001- 188 -LRB100 03891 MJP 22700 a

1made for the taxable year in which that person incurred an
2Illinois income tax liability with respect to those winnings.
3(Source: P.A. 98-496, eff. 1-1-14.)
 
4    Section 90-23. The Property Tax Code is amended by adding
5Section 15-144 as follows:
 
6    (35 ILCS 200/15-144 new)
7    Sec. 15-144. Chicago Casino Development Authority. All
8property owned by the Chicago Casino Development Authority is
9exempt. Any property owned by the Chicago Casino Development
10Authority and leased to any other entity is not exempt.
 
11    Section 90-24. The Illinois Municipal Code is amended by
12adding Section 8-10-2.6 as follows:
 
13    (65 ILCS 5/8-10-2.6 new)
14    Sec. 8-10-2.6. Chicago Casino Development Authority.
15Except as otherwise provided in the Chicago Casino Development
16Authority Act, this Division 10 applies to purchase orders and
17contracts relating to the Chicago Casino Development
18Authority.
 
19    Section 90-25. The Joliet Regional Port District Act is
20amended by changing Section 5.1 as follows:
 

 

 

10000HB2498ham001- 189 -LRB100 03891 MJP 22700 a

1    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
2    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
3any other provision of this Act, the District may not regulate
4the operation, conduct, or navigation of any riverboat gambling
5casino licensed under the Illinois Riverboat Gambling Act, and
6the District may not license, tax, or otherwise levy any
7assessment of any kind on any riverboat gambling casino
8licensed under the Illinois Riverboat Gambling Act. The General
9Assembly declares that the powers to regulate the operation,
10conduct, and navigation of riverboat gambling casinos and to
11license, tax, and levy assessments upon riverboat gambling
12casinos are exclusive powers of the State of Illinois and the
13Illinois Gaming Board as provided in the Illinois Riverboat
14Gambling Act.
15(Source: P.A. 87-1175.)
 
16    Section 90-30. The Consumer Installment Loan Act is amended
17by changing Section 12.5 as follows:
 
18    (205 ILCS 670/12.5)
19    Sec. 12.5. Limited purpose branch.
20    (a) Upon the written approval of the Director, a licensee
21may maintain a limited purpose branch for the sole purpose of
22making loans as permitted by this Act. A limited purpose branch
23may include an automatic loan machine. No other activity shall
24be conducted at the site, including but not limited to,

 

 

10000HB2498ham001- 190 -LRB100 03891 MJP 22700 a

1accepting payments, servicing the accounts, or collections.
2    (b) The licensee must submit an application for a limited
3purpose branch to the Director on forms prescribed by the
4Director with an application fee of $300. The approval for the
5limited purpose branch must be renewed concurrently with the
6renewal of the licensee's license along with a renewal fee of
7$300 for the limited purpose branch.
8    (c) The books, accounts, records, and files of the limited
9purpose branch's transactions shall be maintained at the
10licensee's licensed location. The licensee shall notify the
11Director of the licensed location at which the books, accounts,
12records, and files shall be maintained.
13    (d) The licensee shall prominently display at the limited
14purpose branch the address and telephone number of the
15licensee's licensed location.
16    (e) No other business shall be conducted at the site of the
17limited purpose branch unless authorized by the Director.
18    (f) The Director shall make and enforce reasonable rules
19for the conduct of a limited purpose branch.
20    (g) A limited purpose branch may not be located within
211,000 feet of a facility operated by an inter-track wagering
22licensee or an organization licensee subject to the Illinois
23Horse Racing Act of 1975, on a riverboat or in a casino subject
24to the Illinois Riverboat Gambling Act, or within 1,000 feet of
25the location at which the riverboat docks or within 1,000 feet
26of a casino.

 

 

10000HB2498ham001- 191 -LRB100 03891 MJP 22700 a

1(Source: P.A. 90-437, eff. 1-1-98.)
 
2    Section 90-35. The Illinois Horse Racing Act of 1975 is
3amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
420, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
5and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
634.3, and 56 as follows:
 
7    (230 ILCS 5/1.2)
8    Sec. 1.2. Legislative intent. This Act is intended to
9benefit the people of the State of Illinois by encouraging the
10breeding and production of race horses, assisting economic
11development and promoting Illinois tourism. The General
12Assembly finds and declares it to be the public policy of the
13State of Illinois to:
14    (a) support and enhance Illinois' horse racing industry,
15which is a significant component within the agribusiness
16industry;
17    (b) ensure that Illinois' horse racing industry remains
18competitive with neighboring states;
19    (c) stimulate growth within Illinois' horse racing
20industry, thereby encouraging new investment and development
21to produce additional tax revenues and to create additional
22jobs;
23    (d) promote the further growth of tourism;
24    (e) encourage the breeding of thoroughbred and

 

 

10000HB2498ham001- 192 -LRB100 03891 MJP 22700 a

1standardbred horses in this State; and
2    (f) ensure that public confidence and trust in the
3credibility and integrity of racing operations and the
4regulatory process is maintained.
5(Source: P.A. 91-40, eff. 6-25-99.)
 
6    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
7    Sec. 3.11. "Organization Licensee" means any person
8receiving an organization license from the Board to conduct a
9race meeting or meetings. With respect only to electronic
10gaming, "organization licensee" includes the authorization for
11an electronic gaming license under subsection (a) of Section 56
12of this Act.
13(Source: P.A. 79-1185.)
 
14    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
15    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
16system of wagering" means a form of wagering on the outcome of
17horse races in which wagers are made in various denominations
18on a horse or horses and all wagers for each race are pooled
19and held by a licensee for distribution in a manner approved by
20the Board. "Pari-mutuel system of wagering" shall not include
21wagering on historic races. Wagers may be placed via any method
22or at any location authorized under this Act.
23(Source: P.A. 96-762, eff. 8-25-09.)
 

 

 

10000HB2498ham001- 193 -LRB100 03891 MJP 22700 a

1    (230 ILCS 5/3.31 new)
2    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
3receipts" means the gross receipts less winnings paid to
4wagerers.
 
5    (230 ILCS 5/3.32 new)
6    Sec. 3.32. Gross receipts. "Gross receipts" means the total
7amount of money exchanged for the purchase of chips, tokens, or
8electronic cards by riverboat or casino patrons or electronic
9gaming patrons.
 
10    (230 ILCS 5/3.33 new)
11    Sec. 3.33. Electronic gaming. "Electronic gaming" means
12slot machine gambling or gambling with table games positioned
13within an electronic gaming facility as defined in the Illinois
14Gambling Act or defined by the Illinois Gaming Board that is
15conducted at a race track pursuant to an electronic gaming
16license.
 
17    (230 ILCS 5/3.35 new)
18    Sec. 3.35. Electronic gaming license. "Electronic gaming
19license" means a license issued by the Illinois Gaming Board
20under Section 7.7 of the Illinois Gambling Act authorizing
21electronic gaming at an electronic gaming facility.
 
22    (230 ILCS 5/3.36 new)

 

 

10000HB2498ham001- 194 -LRB100 03891 MJP 22700 a

1    Sec. 3.36. Electronic gaming facility. "Electronic gaming
2facility" means that portion of an organization licensee's race
3track facility at which electronic gaming is conducted.
 
4    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
5    Sec. 6. Restrictions on Board members.
6    (a) No person shall be appointed a member of the Board or
7continue to be a member of the Board if the person or any
8member of their immediate family is a member of the Board of
9Directors, employee, or financially interested in any of the
10following: (i) any licensee or other person who has applied for
11racing dates to the Board, or the operations thereof including,
12but not limited to, concessions, data processing, track
13maintenance, track security, and pari-mutuel operations,
14located, scheduled or doing business within the State of
15Illinois, (ii) any race horse competing at a meeting under the
16Board's jurisdiction, or (iii) any licensee under the Illinois
17Gambling Act. No person shall be appointed a member of the
18Board or continue to be a member of the Board who is (or any
19member of whose family is) a member of the Board of Directors
20of, or who is a person financially interested in, any licensee
21or other person who has applied for racing dates to the Board,
22or the operations thereof including, but not limited to,
23concessions, data processing, track maintenance, track
24security and pari-mutuel operations, located, scheduled or
25doing business within the State of Illinois, or in any race

 

 

10000HB2498ham001- 195 -LRB100 03891 MJP 22700 a

1horse competing at a meeting under the Board's jurisdiction. No
2Board member shall hold any other public office for which he
3shall receive compensation other than necessary travel or other
4incidental expenses.
5    (b) No person shall be a member of the Board who is not of
6good moral character or who has been convicted of, or is under
7indictment for, a felony under the laws of Illinois or any
8other state, or the United States.
9    (c) No member of the Board or employee shall engage in any
10political activity.
11    For the purposes of this subsection (c):
12    "Political" means any activity in support of or in
13connection with any campaign for State or local elective office
14or any political organization, but does not include activities
15(i) relating to the support or opposition of any executive,
16legislative, or administrative action (as those terms are
17defined in Section 2 of the Lobbyist Registration Act), (ii)
18relating to collective bargaining, or (iii) that are otherwise
19in furtherance of the person's official State duties or
20governmental and public service functions.
21    "Political organization" means a party, committee,
22association, fund, or other organization (whether or not
23incorporated) that is required to file a statement of
24organization with the State Board of Elections or county clerk
25under Section 9-3 of the Election Code, but only with regard to
26those activities that require filing with the State Board of

 

 

10000HB2498ham001- 196 -LRB100 03891 MJP 22700 a

1Elections or county clerk.
2    (d) Board members and employees may not engage in
3communications or any activity that may cause or have the
4appearance of causing a conflict of interest. A conflict of
5interest exists if a situation influences or creates the
6appearance that it may influence judgment or performance of
7regulatory duties and responsibilities. This prohibition shall
8extend to any act identified by Board action that, in the
9judgment of the Board, could represent the potential for or the
10appearance of a conflict of interest.
11    (e) Board members and employees may not accept any gift,
12gratuity, service, compensation, travel, lodging, or thing of
13value, with the exception of unsolicited items of an incidental
14nature, from any person, corporation, limited liability
15company, or entity doing business with the Board.
16    (f) A Board member or employee shall not use or attempt to
17use his or her official position to secure, or attempt to
18secure, any privilege, advantage, favor, or influence for
19himself or herself or others. No Board member or employee,
20within a period of one year immediately preceding nomination by
21the Governor or employment, shall have been employed or
22received compensation or fees for services from a person or
23entity, or its parent or affiliate, that has engaged in
24business with the Board, a licensee or a licensee under the
25Illinois Gambling Act. In addition, all Board members and
26employees are subject to the restrictions set forth in Section

 

 

10000HB2498ham001- 197 -LRB100 03891 MJP 22700 a

15-45 of the State Officials and Employees Ethics Act.
2(Source: P.A. 89-16, eff. 5-30-95.)
 
3    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
4    Sec. 9. The Board shall have all powers necessary and
5proper to fully and effectively execute the provisions of this
6Act, including, but not limited to, the following:
7    (a) The Board is vested with jurisdiction and supervision
8over all race meetings in this State, over all licensees doing
9business in this State, over all occupation licensees, and over
10all persons on the facilities of any licensee. Such
11jurisdiction shall include the power to issue licenses to the
12Illinois Department of Agriculture authorizing the pari-mutuel
13system of wagering on harness and Quarter Horse races held (1)
14at the Illinois State Fair in Sangamon County, and (2) at the
15DuQuoin State Fair in Perry County. The jurisdiction of the
16Board shall also include the power to issue licenses to county
17fairs which are eligible to receive funds pursuant to the
18Agricultural Fair Act, as now or hereafter amended, or their
19agents, authorizing the pari-mutuel system of wagering on horse
20races conducted at the county fairs receiving such licenses.
21Such licenses shall be governed by subsection (n) of this
22Section.
23    Upon application, the Board shall issue a license to the
24Illinois Department of Agriculture to conduct harness and
25Quarter Horse races at the Illinois State Fair and at the

 

 

10000HB2498ham001- 198 -LRB100 03891 MJP 22700 a

1DuQuoin State Fairgrounds during the scheduled dates of each
2fair. The Board shall not require and the Department of
3Agriculture shall be exempt from the requirements of Sections
415.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
5(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
6and 25. The Board and the Department of Agriculture may extend
7any or all of these exemptions to any contractor or agent
8engaged by the Department of Agriculture to conduct its race
9meetings when the Board determines that this would best serve
10the public interest and the interest of horse racing.
11    Notwithstanding any provision of law to the contrary, it
12shall be lawful for any licensee to operate pari-mutuel
13wagering or contract with the Department of Agriculture to
14operate pari-mutuel wagering at the DuQuoin State Fairgrounds
15or for the Department to enter into contracts with a licensee,
16employ its owners, employees or agents and employ such other
17occupation licensees as the Department deems necessary in
18connection with race meetings and wagerings.
19    (b) The Board is vested with the full power to promulgate
20reasonable rules and regulations for the purpose of
21administering the provisions of this Act and to prescribe
22reasonable rules, regulations and conditions under which all
23horse race meetings or wagering in the State shall be
24conducted. Such reasonable rules and regulations are to provide
25for the prevention of practices detrimental to the public
26interest and to promote the best interests of horse racing and

 

 

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1to impose penalties for violations thereof.
2    (c) The Board, and any person or persons to whom it
3delegates this power, is vested with the power to enter the
4facilities and other places of business of any licensee to
5determine whether there has been compliance with the provisions
6of this Act and its rules and regulations.
7    (d) The Board, and any person or persons to whom it
8delegates this power, is vested with the authority to
9investigate alleged violations of the provisions of this Act,
10its reasonable rules and regulations, orders and final
11decisions; the Board shall take appropriate disciplinary
12action against any licensee or occupation licensee for
13violation thereof or institute appropriate legal action for the
14enforcement thereof.
15    (e) The Board, and any person or persons to whom it
16delegates this power, may eject or exclude from any race
17meeting or the facilities of any licensee, or any part thereof,
18any occupation licensee or any other individual whose conduct
19or reputation is such that his presence on those facilities
20may, in the opinion of the Board, call into question the
21honesty and integrity of horse racing or wagering or interfere
22with the orderly conduct of horse racing or wagering; provided,
23however, that no person shall be excluded or ejected from the
24facilities of any licensee solely on the grounds of race,
25color, creed, national origin, ancestry, or sex. The power to
26eject or exclude an occupation licensee or other individual may

 

 

10000HB2498ham001- 200 -LRB100 03891 MJP 22700 a

1be exercised for just cause by the licensee or the Board,
2subject to subsequent hearing by the Board as to the propriety
3of said exclusion.
4    (f) The Board is vested with the power to acquire,
5establish, maintain and operate (or provide by contract to
6maintain and operate) testing laboratories and related
7facilities, for the purpose of conducting saliva, blood, urine
8and other tests on the horses run or to be run in any horse race
9meeting, including races run at county fairs, and to purchase
10all equipment and supplies deemed necessary or desirable in
11connection with any such testing laboratories and related
12facilities and all such tests.
13    (g) The Board may require that the records, including
14financial or other statements of any licensee or any person
15affiliated with the licensee who is involved directly or
16indirectly in the activities of any licensee as regulated under
17this Act to the extent that those financial or other statements
18relate to such activities be kept in such manner as prescribed
19by the Board, and that Board employees shall have access to
20those records during reasonable business hours. Within 120 days
21of the end of its fiscal year, each licensee shall transmit to
22the Board an audit of the financial transactions and condition
23of the licensee's total operations. All audits shall be
24conducted by certified public accountants. Each certified
25public accountant must be registered in the State of Illinois
26under the Illinois Public Accounting Act. The compensation for

 

 

10000HB2498ham001- 201 -LRB100 03891 MJP 22700 a

1each certified public accountant shall be paid directly by the
2licensee to the certified public accountant. A licensee shall
3also submit any other financial or related information the
4Board deems necessary to effectively administer this Act and
5all rules, regulations, and final decisions promulgated under
6this Act.
7    (h) The Board shall name and appoint in the manner provided
8by the rules and regulations of the Board: an Executive
9Director; a State director of mutuels; State veterinarians and
10representatives to take saliva, blood, urine and other tests on
11horses; licensing personnel; revenue inspectors; and State
12seasonal employees (excluding admission ticket sellers and
13mutuel clerks). All of those named and appointed as provided in
14this subsection shall serve during the pleasure of the Board;
15their compensation shall be determined by the Board and be paid
16in the same manner as other employees of the Board under this
17Act.
18    (i) The Board shall require that there shall be 3 stewards
19at each horse race meeting, at least 2 of whom shall be named
20and appointed by the Board. Stewards appointed or approved by
21the Board, while performing duties required by this Act or by
22the Board, shall be entitled to the same rights and immunities
23as granted to Board members and Board employees in Section 10
24of this Act.
25    (j) The Board may discharge any Board employee who fails or
26refuses for any reason to comply with the rules and regulations

 

 

10000HB2498ham001- 202 -LRB100 03891 MJP 22700 a

1of the Board, or who, in the opinion of the Board, is guilty of
2fraud, dishonesty or who is proven to be incompetent. The Board
3shall have no right or power to determine who shall be
4officers, directors or employees of any licensee, or their
5salaries except the Board may, by rule, require that all or any
6officials or employees in charge of or whose duties relate to
7the actual running of races be approved by the Board.
8    (k) The Board is vested with the power to appoint delegates
9to execute any of the powers granted to it under this Section
10for the purpose of administering this Act and any rules or
11regulations promulgated in accordance with this Act.
12    (l) The Board is vested with the power to impose civil
13penalties of up to $5,000 against an individual and up to
14$10,000 against a licensee for each violation of any provision
15of this Act, any rules adopted by the Board, any order of the
16Board or any other action which, in the Board's discretion, is
17a detriment or impediment to horse racing or wagering.
18Beginning on the date when any organization licensee begins
19conducting electronic gaming pursuant to an electronic gaming
20license issued under the Illinois Gambling Act, the power
21granted to the Board pursuant to this subsection (l) shall
22authorize the Board to impose penalties of up to $10,000
23against an individual and up to $25,000 against a licensee. All
24such civil penalties shall be deposited into the Horse Racing
25Fund.
26    (m) The Board is vested with the power to prescribe a form

 

 

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1to be used by licensees as an application for employment for
2employees of each licensee.
3    (n) The Board shall have the power to issue a license to
4any county fair, or its agent, authorizing the conduct of the
5pari-mutuel system of wagering. The Board is vested with the
6full power to promulgate reasonable rules, regulations and
7conditions under which all horse race meetings licensed
8pursuant to this subsection shall be held and conducted,
9including rules, regulations and conditions for the conduct of
10the pari-mutuel system of wagering. The rules, regulations and
11conditions shall provide for the prevention of practices
12detrimental to the public interest and for the best interests
13of horse racing, and shall prescribe penalties for violations
14thereof. Any authority granted the Board under this Act shall
15extend to its jurisdiction and supervision over county fairs,
16or their agents, licensed pursuant to this subsection. However,
17the Board may waive any provision of this Act or its rules or
18regulations which would otherwise apply to such county fairs or
19their agents.
20    (o) Whenever the Board is authorized or required by law to
21consider some aspect of criminal history record information for
22the purpose of carrying out its statutory powers and
23responsibilities, then, upon request and payment of fees in
24conformance with the requirements of Section 2605-400 of the
25Department of State Police Law (20 ILCS 2605/2605-400), the
26Department of State Police is authorized to furnish, pursuant

 

 

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1to positive identification, such information contained in
2State files as is necessary to fulfill the request.
3    (p) To insure the convenience, comfort, and wagering
4accessibility of race track patrons, to provide for the
5maximization of State revenue, and to generate increases in
6purse allotments to the horsemen, the Board shall require any
7licensee to staff the pari-mutuel department with adequate
8personnel.
9(Source: P.A. 97-1060, eff. 8-24-12.)
 
10    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
11    Sec. 15. (a) The Board shall, in its discretion, issue
12occupation licenses to horse owners, trainers, harness
13drivers, jockeys, agents, apprentices, grooms, stable foremen,
14exercise persons, veterinarians, valets, blacksmiths,
15concessionaires and others designated by the Board whose work,
16in whole or in part, is conducted upon facilities within the
17State. Such occupation licenses will be obtained prior to the
18persons engaging in their vocation upon such facilities. The
19Board shall not license pari-mutuel clerks, parking
20attendants, security guards and employees of concessionaires.
21No occupation license shall be required of any person who works
22at facilities within this State as a pari-mutuel clerk, parking
23attendant, security guard or as an employee of a
24concessionaire. Concessionaires of the Illinois State Fair and
25DuQuoin State Fair and employees of the Illinois Department of

 

 

10000HB2498ham001- 205 -LRB100 03891 MJP 22700 a

1Agriculture shall not be required to obtain an occupation
2license by the Board.
3    (b) Each application for an occupation license shall be on
4forms prescribed by the Board. Such license, when issued, shall
5be for the period ending December 31 of each year, except that
6the Board in its discretion may grant 3-year licenses. The
7application shall be accompanied by a fee of not more than $25
8per year or, in the case of 3-year occupation license
9applications, a fee of not more than $60. Each applicant shall
10set forth in the application his full name and address, and if
11he had been issued prior occupation licenses or has been
12licensed in any other state under any other name, such name,
13his age, whether or not a permit or license issued to him in
14any other state has been suspended or revoked and if so whether
15such suspension or revocation is in effect at the time of the
16application, and such other information as the Board may
17require. Fees for registration of stable names shall not exceed
18$50.00. Beginning on the date when any organization licensee
19begins conducting electronic gaming pursuant to an electronic
20gaming license issued under the Illinois Gambling Act, the fee
21for registration of stable names shall not exceed $150, and the
22application fee for an occupation license shall not exceed $75,
23per year or, in the case of a 3-year occupation license
24application, the fee shall not exceed $180.
25    (c) The Board may in its discretion refuse an occupation
26license to any person:

 

 

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1        (1) who has been convicted of a crime;
2        (2) who is unqualified to perform the duties required
3    of such applicant;
4        (3) who fails to disclose or states falsely any
5    information called for in the application;
6        (4) who has been found guilty of a violation of this
7    Act or of the rules and regulations of the Board; or
8        (5) whose license or permit has been suspended, revoked
9    or denied for just cause in any other state.
10    (d) The Board may suspend or revoke any occupation license:
11        (1) for violation of any of the provisions of this Act;
12    or
13        (2) for violation of any of the rules or regulations of
14    the Board; or
15        (3) for any cause which, if known to the Board, would
16    have justified the Board in refusing to issue such
17    occupation license; or
18        (4) for any other just cause.
19    (e)   Each applicant shall submit his or her fingerprints
20to the Department of State Police in the form and manner
21prescribed by the Department of State Police. These
22fingerprints shall be checked against the fingerprint records
23now and hereafter filed in the Department of State Police and
24Federal Bureau of Investigation criminal history records
25databases. The Department of State Police shall charge a fee
26for conducting the criminal history records check, which shall

 

 

10000HB2498ham001- 207 -LRB100 03891 MJP 22700 a

1be deposited in the State Police Services Fund and shall not
2exceed the actual cost of the records check. The Department of
3State Police shall furnish, pursuant to positive
4identification, records of conviction to the Board. Each
5applicant for licensure shall submit with his occupation
6license application, on forms provided by the Board, 2 sets of
7his fingerprints. All such applicants shall appear in person at
8the location designated by the Board for the purpose of
9submitting such sets of fingerprints; however, with the prior
10approval of a State steward, an applicant may have such sets of
11fingerprints taken by an official law enforcement agency and
12submitted to the Board.
13    (f) The Board may, in its discretion, issue an occupation
14license without submission of fingerprints if an applicant has
15been duly licensed in another recognized racing jurisdiction
16after submitting fingerprints that were subjected to a Federal
17Bureau of Investigation criminal history background check in
18that jurisdiction.
19    (g) Beginning on the date when any organization licensee
20begins conducting electronic gaming pursuant to an electronic
21gaming license issued under the Illinois Gambling Act, the
22Board may charge each applicant a reasonable non-refundable fee
23to defray the costs associated with the background
24investigation conducted by the Board. This fee shall be
25exclusive of any other fee or fees charged in connection with
26an application for and, if applicable, the issuance of, an

 

 

10000HB2498ham001- 208 -LRB100 03891 MJP 22700 a

1electronic gaming license. If the costs of the investigation
2exceed the amount of the fee charged, the Board shall
3immediately notify the applicant of the additional amount owed,
4payment of which must be submitted to the Board within 7 days
5after such notification. 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 applicant for a license or renewal under this Act shall
9be privileged, strictly confidential, and shall be used only
10for the 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(Source: P.A. 93-418, eff. 1-1-04.)
 
17    (230 ILCS 5/18)  (from Ch. 8, par. 37-18)
18    Sec. 18. (a) Together with its application, each applicant
19for racing dates shall deliver to the Board a certified check
20or bank draft payable to the order of the Board for $1,000. In
21the event the applicant applies for racing dates in 2 or 3
22successive calendar years as provided in subsection (b) of
23Section 21, the fee shall be $2,000. Filing fees shall not be
24refunded in the event the application is denied. Beginning on
25the date when any organization licensee begins conducting

 

 

10000HB2498ham001- 209 -LRB100 03891 MJP 22700 a

1electronic gaming pursuant to an electronic gaming license
2issued under the Illinois Gambling Act, the application fee for
3racing dates imposed by this subsection (a) shall be $10,000
4and the application fee for racing dates in 2 or 3 successive
5calendar years as provided in subsection (b) of Section 21
6shall be $20,000. All filing fees shall be deposited into the
7Horse Racing Fund.
8    (b) In addition to the filing fee imposed by subsection (a)
9of $1000 and the fees provided in subsection (j) of Section 20,
10each organization licensee shall pay a license fee of $100 for
11each racing program on which its daily pari-mutuel handle is
12$400,000 or more but less than $700,000, and a license fee of
13$200 for each racing program on which its daily pari-mutuel
14handle is $700,000 or more. The additional fees required to be
15paid under this Section by this amendatory Act of 1982 shall be
16remitted by the organization licensee to the Illinois Racing
17Board with each day's graduated privilege tax or pari-mutuel
18tax and breakage as provided under Section 27. Beginning on the
19date when any organization licensee begins conducting
20electronic gaming pursuant to an electronic gaming license
21issued under the Illinois Gambling Act, the license fee imposed
22by this subsection (b) shall be $200 for each racing program on
23which the organization licensee's daily pari-mutuel handle is
24$100,000 or more, but less than $400,000, and the license fee
25imposed by this subsection (b) shall be $400 for each racing
26program on which the organization licensee's daily pari-mutuel

 

 

10000HB2498ham001- 210 -LRB100 03891 MJP 22700 a

1handle is $400,000 or more.
2    (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
3Municipal Code," approved May 29, 1961, as now or hereafter
4amended, shall not apply to any license under this Act.
5(Source: P.A. 97-1060, eff. 8-24-12.)
 
6    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
7    Sec. 19. (a) No organization license may be granted to
8conduct a horse race meeting:
9        (1) except as provided in subsection (c) of Section 21
10    of this Act, to any person at any place within 35 miles of
11    any other place licensed by the Board to hold a race
12    meeting on the same date during the same hours, the mileage
13    measurement used in this subsection (a) shall be certified
14    to the Board by the Bureau of Systems and Services in the
15    Illinois Department of Transportation as the most commonly
16    used public way of vehicular travel;
17        (2) to any person in default in the payment of any
18    obligation or debt due the State under this Act, provided
19    no applicant shall be deemed in default in the payment of
20    any obligation or debt due to the State under this Act as
21    long as there is pending a hearing of any kind relevant to
22    such matter;
23        (3) to any person who has been convicted of the
24    violation of any law of the United States or any State law
25    which provided as all or part of its penalty imprisonment

 

 

10000HB2498ham001- 211 -LRB100 03891 MJP 22700 a

1    in any penal institution; to any person against whom there
2    is pending a Federal or State criminal charge; to any
3    person who is or has been connected with or engaged in the
4    operation of any illegal business; to any person who does
5    not enjoy a general reputation in his community of being an
6    honest, upright, law-abiding person; provided that none of
7    the matters set forth in this subparagraph (3) shall make
8    any person ineligible to be granted an organization license
9    if the Board determines, based on circumstances of any such
10    case, that the granting of a license would not be
11    detrimental to the interests of horse racing and of the
12    public;
13        (4) to any person who does not at the time of
14    application for the organization license own or have a
15    contract or lease for the possession of a finished race
16    track suitable for the type of racing intended to be held
17    by the applicant and for the accommodation of the public.
18    (b) (Blank) Horse racing on Sunday shall be prohibited
19unless authorized by ordinance or referendum of the
20municipality in which a race track or any of its appurtenances
21or facilities are located, or utilized.
22    (c) If any person is ineligible to receive an organization
23license because of any of the matters set forth in subsection
24(a) (2) or subsection (a) (3) of this Section, any other or
25separate person that either (i) controls, directly or
26indirectly, such ineligible person or (ii) is controlled,

 

 

10000HB2498ham001- 212 -LRB100 03891 MJP 22700 a

1directly or indirectly, by such ineligible person or by a
2person which controls, directly or indirectly, such ineligible
3person shall also be ineligible.
4(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
5    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
6    Sec. 20. (a) Any person desiring to conduct a horse race
7meeting may apply to the Board for an organization license. The
8application shall be made on a form prescribed and furnished by
9the Board. The application shall specify:
10        (1) the dates on which it intends to conduct the horse
11    race meeting, which dates shall be provided under Section
12    21;
13        (2) the hours of each racing day between which it
14    intends to hold or conduct horse racing at such meeting;
15        (3) the location where it proposes to conduct the
16    meeting; and
17        (4) any other information the Board may reasonably
18    require.
19    (b) A separate application for an organization license
20shall be filed for each horse race meeting which such person
21proposes to hold. Any such application, if made by an
22individual, or by any individual as trustee, shall be signed
23and verified under oath by such individual. If the application
24is made by individuals, then it shall be signed and verified
25under oath by at least 2 of the individuals; if the application

 

 

10000HB2498ham001- 213 -LRB100 03891 MJP 22700 a

1is made by or a partnership, it shall be signed and verified
2under oath by at least 2 of such individuals or members of such
3partnership as the case may be. If made by an association, a
4corporation, a corporate trustee, a limited liability company,
5or any other entity, it shall be signed by an authorized
6officer, a partner, a member, or a manager, as the case may be,
7of the entity the president and attested by the secretary or
8assistant secretary under the seal of such association, trust
9or corporation if it has a seal, and shall also be verified
10under oath by one of the signing officers.
11    (c) The application shall specify:
12        (1) the name of the persons, association, trust, or
13    corporation making such application; and
14        (2) the principal post office address of the applicant;
15        (3) if the applicant is a trustee, the names and
16    addresses of the beneficiaries; if the applicant is a
17    corporation, the names and post office addresses of all
18    officers, stockholders and directors; or if such
19    stockholders hold stock as a nominee or fiduciary, the
20    names and post office addresses of the parties these
21    persons, partnerships, corporations, or trusts who are the
22    beneficial owners thereof or who are beneficially
23    interested therein; and if the applicant is a partnership,
24    the names and post office addresses of all partners,
25    general or limited; if the applicant is a limited liability
26    company, the names and addresses of the manager and

 

 

10000HB2498ham001- 214 -LRB100 03891 MJP 22700 a

1    members; and if the applicant is any other entity, the
2    names and addresses of all officers or other authorized
3    persons of the entity corporation, the name of the state of
4    its incorporation shall be specified.
5    (d) The applicant shall execute and file with the Board a
6good faith affirmative action plan to recruit, train, and
7upgrade minorities in all classifications within the
8association.
9    (e) With such application there shall be delivered to the
10Board a certified check or bank draft payable to the order of
11the Board for an amount equal to $1,000. All applications for
12the issuance of an organization license shall be filed with the
13Board before August 1 of the year prior to the year for which
14application is made and shall be acted upon by the Board at a
15meeting to be held on such date as shall be fixed by the Board
16during the last 15 days of September of such prior year. At
17such meeting, the Board shall announce the award of the racing
18meets, live racing schedule, and designation of host track to
19the applicants and its approval or disapproval of each
20application. No announcement shall be considered binding until
21a formal order is executed by the Board, which shall be
22executed no later than October 15 of that prior year. Absent
23the agreement of the affected organization licensees, the Board
24shall not grant overlapping race meetings to 2 or more tracks
25that are within 100 miles of each other to conduct the
26thoroughbred racing.

 

 

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1    (e-1) In awarding standardbred racing dates for calendar
2year 2018 and thereafter, the Board shall award at least 310
3racing days, and each organization licensee shall average at
4least 12 races for each racing day awarded. The Board shall
5have the discretion to allocate those racing days among
6organization licensees requesting standardbred racing dates.
7Once awarded by the Board, organization licensees awarded
8standardbred racing dates shall run at least 3,500 races in
9total during that calendar year. Standardbred racing conducted
10in Sangamon County shall not be considered races under this
11subsection (e-1).
12    (e-2) In awarding racing dates for calendar year 2018 and
13thereafter, the Board shall award thoroughbred racing days to
14Cook County organization licensees commensurate with these
15organization licensees' requirement that they shall run at
16least 1,950 thoroughbred races in the aggregate, so long as 2
17organization licensees are conducting electronic gaming
18operations. Additionally, if the organization licensees that
19run thoroughbred races in Cook County are conducting electronic
20gaming operations, the Board shall increase the number of
21thoroughbred races to be run in Cook County in the aggregate to
22at least the following:
23        (i) 2,050 races in any year following the most recent
24    preceding complete calendar year when the combined
25    adjusted gross receipts of the electronic gaming licensees
26    operating at Cook County race tracks total in excess of

 

 

10000HB2498ham001- 216 -LRB100 03891 MJP 22700 a

1    $200,000,000, but do not exceed $250,000,000;
2        (ii) 2,125 races in any year following the most recent
3    preceding complete calendar year when the combined
4    adjusted gross receipts of the electronic gaming licensees
5    operating at Cook County race tracks total in excess of
6    $250,000,000, but do not exceed $300,000,000;
7        (iii) 2,200 races in any year following the most recent
8    preceding complete calendar year when the combined
9    adjusted gross receipts of the electronic gaming licensees
10    operating at Cook County race tracks total in excess of
11    $300,000,000, but do not exceed $350,000,000;
12        (iv) 2,300 races in any year following the most recent
13    preceding complete calendar year when the combined
14    adjusted gross receipts of the electronic gaming licensees
15    operating at Cook County race tracks total in excess of
16    $350,000,000, but do not exceed $400,000,000;
17        (v) 2,375 races in any year following the most recent
18    preceding complete calendar year when the combined
19    adjusted gross receipts of the electronic gaming licensees
20    operating at Cook County race tracks total in excess of
21    $400,000,000, but do not exceed $450,000,000;
22        (vi) 2,450 races in any year following the most recent
23    preceding complete calendar year when the combined
24    adjusted gross receipts of the electronic gaming licensees
25    operating at Cook County race tracks total in excess of
26    $450,000,000, but do not exceed $500,000,000;

 

 

10000HB2498ham001- 217 -LRB100 03891 MJP 22700 a

1        (vii) 2,550 races in any year following the most recent
2    preceding complete calendar year when the combined
3    adjusted gross receipts of the electronic gaming licensees
4    operating at Cook County race tracks exceeds $500,000,000.
5    In awarding racing dates under this subsection (e-2), the
6Board shall have the discretion to allocate those thoroughbred
7racing dates among these Cook County organization licensees.
8    (e-3) In awarding racing dates for calendar year 2018 and
9thereafter in connection with a race track in Madison County,
10the Board shall award racing dates and such organization
11licensee shall run at least 700 thoroughbred races at the race
12track in Madison County each year.
13    Notwithstanding Section 7.7 of the Illinois Gambling Act or
14any provision of this Act other than subsection (e-4.5), for
15each calendar year for which an electronic gaming licensee
16located in Madison County requests racing dates resulting in
17less than 700 live thoroughbred races at its race track
18facility, the electronic gaming licensee may not conduct
19electronic gaming for the calendar year of such requested live
20races.
21    (e-4) Notwithstanding the provisions of Section 7.7 of the
22Illinois Gambling Act or any provision of this Act other than
23subsections (e-3) and (e-4.5), for each calendar year for which
24an electronic gaming licensee requests racing dates for a
25specific horse breed which results in a number of live races
26for that specific breed under its organization license that is

 

 

10000HB2498ham001- 218 -LRB100 03891 MJP 22700 a

1less than the total number of live races for that specific
2breed which it conducted in 2011 for standardbred racing and in
32016 for thoroughbred racing at its race track facility, the
4electronic gaming licensee may not conduct electronic gaming
5for the calendar year of such requested live races.
6    (e-4.5) The Board shall ensure that each organization
7licensee shall individually run a sufficient number of races
8per year to qualify for an electronic gaming license under this
9Act. The General Assembly finds that the minimum live racing
10guarantees contained in subsections (e-1), (e-2), and (e-3) are
11in the best interest of the sport of horse racing, and that
12such guarantees may only be reduced in the limited
13circumstances described in this subsection. The Board may
14decrease the number of racing days without affecting an
15organization licensee's ability to conduct electronic gaming
16only if the Board determines, after notice and hearing, that:
17        (i) a decrease is necessary to maintain a sufficient
18    number of betting interests per race to ensure the
19    integrity of racing;
20        (ii) there are unsafe track conditions due to weather
21    or acts of God;
22        (iii) there is an agreement between an organization
23    licensee and the breed association that is applicable to
24    the involved live racing guarantee, such association
25    representing either the largest number of thoroughbred
26    owners and trainers or the largest number of standardbred

 

 

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

 

 

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

 

 

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1determine an overall schedule, including required simulcasts
2of Illinois races by host tracks that will, in its judgment, be
3conducive to the best interests of the public and the sport of
4horse racing.
5    (e-10) The Illinois Administrative Procedure Act shall
6apply to administrative procedures of the Board under this Act
7for the granting of an organization license, except that (1)
8notwithstanding the provisions of subsection (b) of Section
910-40 of the Illinois Administrative Procedure Act regarding
10cross-examination, the Board may prescribe rules limiting the
11right of an applicant or participant in any proceeding to award
12an organization license to conduct cross-examination of
13witnesses at that proceeding where that cross-examination
14would unduly obstruct the timely award of an organization
15license under subsection (e) of Section 20 of this Act; (2) the
16provisions of Section 10-45 of the Illinois Administrative
17Procedure Act regarding proposals for decision are excluded
18under this Act; (3) notwithstanding the provisions of
19subsection (a) of Section 10-60 of the Illinois Administrative
20Procedure Act regarding ex parte communications, the Board may
21prescribe rules allowing ex parte communications with
22applicants or participants in a proceeding to award an
23organization license where conducting those communications
24would be in the best interest of racing, provided all those
25communications are made part of the record of that proceeding
26pursuant to subsection (c) of Section 10-60 of the Illinois

 

 

10000HB2498ham001- 222 -LRB100 03891 MJP 22700 a

1Administrative Procedure Act; (4) the provisions of Section 14a
2of this Act and the rules of the Board promulgated under that
3Section shall apply instead of the provisions of Article 10 of
4the Illinois Administrative Procedure Act regarding
5administrative law judges; and (5) the provisions of subsection
6(d) of Section 10-65 of the Illinois Administrative Procedure
7Act that prevent summary suspension of a license pending
8revocation or other action shall not apply.
9    (f) The Board may allot racing dates to an organization
10licensee for more than one calendar year but for no more than 3
11successive calendar years in advance, provided that the Board
12shall review such allotment for more than one calendar year
13prior to each year for which such allotment has been made. The
14granting of an organization license to a person constitutes a
15privilege to conduct a horse race meeting under the provisions
16of this Act, and no person granted an organization license
17shall be deemed to have a vested interest, property right, or
18future expectation to receive an organization license in any
19subsequent year as a result of the granting of an organization
20license. Organization licenses shall be subject to revocation
21if the organization licensee has violated any provision of this
22Act or the rules and regulations promulgated under this Act or
23has been convicted of a crime or has failed to disclose or has
24stated falsely any information called for in the application
25for an organization license. Any organization license
26revocation proceeding shall be in accordance with Section 16

 

 

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1regarding suspension and revocation of occupation licenses.
2    (f-5) If, (i) an applicant does not file an acceptance of
3the racing dates awarded by the Board as required under part
4(1) of subsection (h) of this Section 20, or (ii) an
5organization licensee has its license suspended or revoked
6under this Act, the Board, upon conducting an emergency hearing
7as provided for in this Act, may reaward on an emergency basis
8pursuant to rules established by the Board, racing dates not
9accepted or the racing dates associated with any suspension or
10revocation period to one or more organization licensees, new
11applicants, or any combination thereof, upon terms and
12conditions that the Board determines are in the best interest
13of racing, provided, the organization licensees or new
14applicants receiving the awarded racing dates file an
15acceptance of those reawarded racing dates as required under
16paragraph (1) of subsection (h) of this Section 20 and comply
17with the other provisions of this Act. The Illinois
18Administrative Procedure Act shall not apply to the
19administrative procedures of the Board in conducting the
20emergency hearing and the reallocation of racing dates on an
21emergency basis.
22    (g) (Blank).
23    (h) The Board shall send the applicant a copy of its
24formally executed order by certified mail addressed to the
25applicant at the address stated in his application, which
26notice shall be mailed within 5 days of the date the formal

 

 

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1order is executed.
2    Each applicant notified shall, within 10 days after receipt
3of the final executed order of the Board awarding racing dates:
4        (1) file with the Board an acceptance of such award in
5    the form prescribed by the Board;
6        (2) pay to the Board an additional amount equal to $110
7    for each racing date awarded; and
8        (3) file with the Board the bonds required in Sections
9    21 and 25 at least 20 days prior to the first day of each
10    race meeting.
11Upon compliance with the provisions of paragraphs (1), (2), and
12(3) of this subsection (h), the applicant shall be issued an
13organization license.
14    If any applicant fails to comply with this Section or fails
15to pay the organization license fees herein provided, no
16organization license shall be issued to such applicant.
17(Source: P.A. 97-333, eff. 8-12-11.)
 
18    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
19    Sec. 21. (a) Applications for organization licenses must be
20filed with the Board at a time and place prescribed by the
21rules and regulations of the Board. The Board shall examine the
22applications within 21 days after the date allowed for filing
23with respect to their conformity with this Act and such rules
24and regulations as may be prescribed by the Board. If any
25application does not comply with this Act or the rules and

 

 

10000HB2498ham001- 225 -LRB100 03891 MJP 22700 a

1regulations prescribed by the Board, such application may be
2rejected and an organization license refused to the applicant,
3or the Board may, within 21 days of the receipt of such
4application, advise the applicant of the deficiencies of the
5application under the Act or the rules and regulations of the
6Board, and require the submittal of an amended application
7within a reasonable time determined by the Board; and upon
8submittal of the amended application by the applicant, the
9Board may consider the application consistent with the process
10described in subsection (e-5) of Section 20 of this Act. If it
11is found to be in compliance with this Act and the rules and
12regulations of the Board, the Board may then issue an
13organization license to such applicant.
14    (b) The Board may exercise discretion in granting racing
15dates to qualified applicants different from those requested by
16the applicants in their applications. However, if all eligible
17applicants for organization licenses whose tracks are located
18within 100 miles of each other execute and submit to the Board
19a written agreement among such applicants as to the award of
20racing dates, including where applicable racing programs, for
21up to 3 consecutive years, then subject to annual review of
22each applicant's compliance with Board rules and regulations,
23provisions of this Act and conditions contained in annual dates
24orders issued by the Board, the Board may grant such dates and
25programs to such applicants as so agreed by them if the Board
26determines that the grant of these racing dates is in the best

 

 

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1interests of racing. The Board shall treat any such agreement
2as the agreement signatories' joint and several application for
3racing dates during the term of the agreement.
4    (c) Where 2 or more applicants propose to conduct horse
5race meetings within 35 miles of each other, as certified to
6the Board under Section 19 (a) (1) of this Act, on conflicting
7dates, the Board may determine and grant the number of racing
8days to be awarded to the several applicants in accordance with
9the provisions of subsection (e-5) of Section 20 of this Act.
10    (d) (Blank).
11    (e) Prior to the issuance of an organization license, the
12applicant shall file with the Board a bond payable to the State
13of Illinois in the sum of $200,000, executed by the applicant
14and a surety company or companies authorized to do business in
15this State, and conditioned upon the payment by the
16organization licensee of all taxes due under Section 27, other
17monies due and payable under this Act, all purses due and
18payable, and that the organization licensee will upon
19presentation of the winning ticket or tickets distribute all
20sums due to the patrons of pari-mutuel pools. Beginning on the
21date when any organization licensee begins conducting
22electronic gaming pursuant to an electronic gaming license
23issued under the Illinois Gambling Act, the amount of the bond
24required under this subsection (e) shall be $500,000.
25    (f) Each organization license shall specify the person to
26whom it is issued, the dates upon which horse racing is

 

 

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1permitted, and the location, place, track, or enclosure where
2the horse race meeting is to be held.
3    (g) Any person who owns one or more race tracks within the
4State may seek, in its own name, a separate organization
5license for each race track.
6    (h) All racing conducted under such organization license is
7subject to this Act and to the rules and regulations from time
8to time prescribed by the Board, and every such organization
9license issued by the Board shall contain a recital to that
10effect.
11    (i) Each such organization licensee may provide that at
12least one race per day may be devoted to the racing of quarter
13horses, appaloosas, arabians, or paints.
14    (j) In acting on applications for organization licenses,
15the Board shall give weight to an organization license which
16has implemented a good faith affirmative action effort to
17recruit, train and upgrade minorities in all classifications
18within the organization license.
19(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
20    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
21    Sec. 24. (a) No license shall be issued to or held by an
22organization licensee unless all of its officers, directors,
23and holders of ownership interests of at least 5% are first
24approved by the Board. The Board shall not give approval of an
25organization license application to any person who has been

 

 

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1convicted of or is under an indictment for a crime of moral
2turpitude or has violated any provision of the racing law of
3this State or any rules of the Board.
4    (b) An organization licensee must notify the Board within
510 days of any change in the holders of a direct or indirect
6interest in the ownership of the organization licensee. The
7Board may, after hearing, revoke the organization license of
8any person who registers on its books or knowingly permits a
9direct or indirect interest in the ownership of that person
10without notifying the Board of the name of the holder in
11interest within this period.
12    (c) In addition to the provisions of subsection (a) of this
13Section, no person shall be granted an organization license if
14any public official of the State or member of his or her family
15holds any ownership or financial interest, directly or
16indirectly, in the person.
17    (d) No person which has been granted an organization
18license to hold a race meeting shall give to any public
19official or member of his family, directly or indirectly, for
20or without consideration, any interest in the person. The Board
21shall, after hearing, revoke the organization license granted
22to a person which has violated this subsection.
23    (e) (Blank).
24    (f) No organization licensee or concessionaire or officer,
25director or holder or controller of 5% or more legal or
26beneficial interest in any organization licensee or concession

 

 

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1shall make any sort of gift or contribution that is prohibited
2under Article 10 of the State Officials and Employees Ethics
3Act of any kind or pay or give any money or other thing of value
4to any person who is a public official, or a candidate or
5nominee for public office if that payment or gift is prohibited
6under Article 10 of the State Officials and Employees Ethics
7Act.
8(Source: P.A. 89-16, eff. 5-30-95.)
 
9    (230 ILCS 5/25)  (from Ch. 8, par. 37-25)
10    Sec. 25. Admission charge; bond; fine.
11    (a) There shall be paid to the Board at such time or times
12as it shall prescribe, the sum of fifteen cents (15¢) for each
13person entering the grounds or enclosure of each organization
14licensee and inter-track wagering licensee upon a ticket of
15admission except as provided in subsection (g) of Section 27 of
16this Act. If tickets are issued for more than one day then the
17sum of fifteen cents (15¢) shall be paid for each person using
18such ticket on each day that the same shall be used. Provided,
19however, that no charge shall be made on tickets of admission
20issued to and in the name of directors, officers, agents or
21employees of the organization licensee, or inter-track
22wagering licensee, or to owners, trainers, jockeys, drivers and
23their employees or to any person or persons entering the
24grounds or enclosure for the transaction of business in
25connection with such race meeting. The organization licensee or

 

 

10000HB2498ham001- 230 -LRB100 03891 MJP 22700 a

1inter-track wagering licensee may, if it desires, collect such
2amount from each ticket holder in addition to the amount or
3amounts charged for such ticket of admission. Beginning on the
4date when any organization licensee begins conducting
5electronic gaming pursuant to an electronic gaming license
6issued under the Illinois Gambling Act, the admission charge
7imposed by this subsection (a) shall be 40 cents for each
8person entering the grounds or enclosure of each organization
9licensee and inter-track wagering licensee upon a ticket of
10admission, and if such tickets are issued for more than one
11day, 40 cents shall be paid for each person using such ticket
12on each day that the same shall be used.
13    (b) Accurate records and books shall at all times be kept
14and maintained by the organization licensees and inter-track
15wagering licensees showing the admission tickets issued and
16used on each racing day and the attendance thereat of each
17horse racing meeting. The Board or its duly authorized
18representative or representatives shall at all reasonable
19times have access to the admission records of any organization
20licensee and inter-track wagering licensee for the purpose of
21examining and checking the same and ascertaining whether or not
22the proper amount has been or is being paid the State of
23Illinois as herein provided. The Board shall also require,
24before issuing any license, that the licensee shall execute and
25deliver to it a bond, payable to the State of Illinois, in such
26sum as it shall determine, not, however, in excess of fifty

 

 

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1thousand dollars ($50,000), with a surety or sureties to be
2approved by it, conditioned for the payment of all sums due and
3payable or collected by it under this Section upon admission
4fees received for any particular racing meetings. The Board may
5also from time to time require sworn statements of the number
6or numbers of such admissions and may prescribe blanks upon
7which such reports shall be made. Any organization licensee or
8inter-track wagering licensee failing or refusing to pay the
9amount found to be due as herein provided, shall be deemed
10guilty of a business offense and upon conviction shall be
11punished by a fine of not more than five thousand dollars
12($5,000) in addition to the amount due from such organization
13licensee or inter-track wagering licensee as herein provided.
14All fines paid into court by an organization licensee or
15inter-track wagering licensee found guilty of violating this
16Section shall be transmitted and paid over by the clerk of the
17court to the Board. Beginning on the date when any organization
18licensee begins conducting electronic gaming pursuant to an
19electronic gaming license issued under the Illinois Gambling
20Act, any fine imposed pursuant to this subsection (b) shall not
21exceed $10,000.
22(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
23    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
24    Sec. 26. Wagering.
25    (a) Any licensee may conduct and supervise the pari-mutuel

 

 

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1system of wagering, as defined in Section 3.12 of this Act, on
2horse races conducted by an Illinois organization licensee or
3conducted at a racetrack located in another state or country
4and televised in Illinois in accordance with subsection (g) of
5Section 26 of this Act. Subject to the prior consent of the
6Board, licensees may supplement any pari-mutuel pool in order
7to guarantee a minimum distribution. Such pari-mutuel method of
8wagering shall not, under any circumstances if conducted under
9the provisions of this Act, be held or construed to be
10unlawful, other statutes of this State to the contrary
11notwithstanding. Subject to rules for advance wagering
12promulgated by the Board, any licensee may accept wagers in
13advance of the day of the race wagered upon occurs.
14    (b) Except for those gaming activities for which a license
15is obtained and authorized under the Illinois Lottery Law, the
16Charitable Games Act, the Raffles and Poker Runs Act, or the
17Illinois Gambling Act, no No other method of betting, pool
18making, wagering or gambling shall be used or permitted by the
19licensee. Each licensee may retain, subject to the payment of
20all applicable taxes and purses, an amount not to exceed 17% of
21all money wagered under subsection (a) of this Section, except
22as may otherwise be permitted under this Act.
23    (b-5) An individual may place a wager under the pari-mutuel
24system from any licensed location authorized under this Act
25provided that wager is electronically recorded in the manner
26described in Section 3.12 of this Act. Any wager made

 

 

10000HB2498ham001- 233 -LRB100 03891 MJP 22700 a

1electronically by an individual while physically on the
2premises of a licensee shall be deemed to have been made at the
3premises of that licensee.
4    (c) Until January 1, 2000, the sum held by any licensee for
5payment of outstanding pari-mutuel tickets, if unclaimed prior
6to December 31 of the next year, shall be retained by the
7licensee for payment of such tickets until that date. Within 10
8days thereafter, the balance of such sum remaining unclaimed,
9less any uncashed supplements contributed by such licensee for
10the purpose of guaranteeing minimum distributions of any
11pari-mutuel pool, shall be paid to the Illinois Veterans'
12Rehabilitation Fund of the State treasury, except as provided
13in subsection (g) of Section 27 of this Act.
14    (c-5) Beginning January 1, 2000, the sum held by any
15licensee for payment of outstanding pari-mutuel tickets, if
16unclaimed prior to December 31 of the next year, shall be
17retained by the licensee for payment of such tickets until that
18date. Within 10 days thereafter, the balance of such sum
19remaining unclaimed, less any uncashed supplements contributed
20by such licensee for the purpose of guaranteeing minimum
21distributions of any pari-mutuel pool, shall be evenly
22distributed to the purse account of the organization licensee
23and the organization licensee.
24    (d) A pari-mutuel ticket shall be honored until December 31
25of the next calendar year, and the licensee shall pay the same
26and may charge the amount thereof against unpaid money

 

 

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1similarly accumulated on account of pari-mutuel tickets not
2presented for payment.
3    (e) No licensee shall knowingly permit any minor, other
4than an employee of such licensee or an owner, trainer, jockey,
5driver, or employee thereof, to be admitted during a racing
6program unless accompanied by a parent or guardian, or any
7minor to be a patron of the pari-mutuel system of wagering
8conducted or supervised by it. The admission of any
9unaccompanied minor, other than an employee of the licensee or
10an owner, trainer, jockey, driver, or employee thereof at a
11race track is a Class C misdemeanor.
12    (f) Notwithstanding the other provisions of this Act, an
13organization licensee may contract with an entity in another
14state or country to permit any legal wagering entity in another
15state or country to accept wagers solely within such other
16state or country on races conducted by the organization
17licensee in this State. Beginning January 1, 2000, these wagers
18shall not be subject to State taxation. Until January 1, 2000,
19when the out-of-State entity conducts a pari-mutuel pool
20separate from the organization licensee, a privilege tax equal
21to 7 1/2% of all monies received by the organization licensee
22from entities in other states or countries pursuant to such
23contracts is imposed on the organization licensee, and such
24privilege tax shall be remitted to the Department of Revenue
25within 48 hours of receipt of the moneys from the simulcast.
26When the out-of-State entity conducts a combined pari-mutuel

 

 

10000HB2498ham001- 235 -LRB100 03891 MJP 22700 a

1pool with the organization licensee, the tax shall be 10% of
2all monies received by the organization licensee with 25% of
3the receipts from this 10% tax to be distributed to the county
4in which the race was conducted.
5    An organization licensee may permit one or more of its
6races to be utilized for pari-mutuel wagering at one or more
7locations in other states and may transmit audio and visual
8signals of races the organization licensee conducts to one or
9more locations outside the State or country and may also permit
10pari-mutuel pools in other states or countries to be combined
11with its gross or net wagering pools or with wagering pools
12established by other states.
13    (g) A host track may accept interstate simulcast wagers on
14horse races conducted in other states or countries and shall
15control the number of signals and types of breeds of racing in
16its simulcast program, subject to the disapproval of the Board.
17The Board may prohibit a simulcast program only if it finds
18that the simulcast program is clearly adverse to the integrity
19of racing. The host track simulcast program shall include the
20signal of live racing of all organization licensees. All
21non-host licensees and advance deposit wagering licensees
22shall carry the signal of and accept wagers on live racing of
23all organization licensees. Advance deposit wagering licensees
24shall not be permitted to accept out-of-state wagers on any
25Illinois signal provided pursuant to this Section without the
26approval and consent of the organization licensee providing the

 

 

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1signal. For one year after August 15, 2014 (the effective date
2of Public Act 98-968) this amendatory Act of the 98th General
3Assembly, non-host licensees may carry the host track simulcast
4program and shall accept wagers on all races included as part
5of the simulcast program of horse races conducted at race
6tracks located within North America upon which wagering is
7permitted. For a period of one year after August 15, 2014 (the
8effective date of Public Act 98-968) this amendatory Act of the
998th General Assembly, on horse races conducted at race tracks
10located outside of North America, non-host licensees may accept
11wagers on all races included as part of the simulcast program
12upon which wagering is permitted. Beginning August 15, 2015
13(one year after the effective date of Public Act 98-968) this
14amendatory Act of the 98th General Assembly, non-host licensees
15may carry the host track simulcast program and shall accept
16wagers on all races included as part of the simulcast program
17upon which wagering is permitted. All organization licensees
18shall provide their live signal to all advance deposit wagering
19licensees for a simulcast commission fee not to exceed 6% of
20the advance deposit wagering licensee's Illinois handle on the
21organization licensee's signal without prior approval by the
22Board. The Board may adopt rules under which it may permit
23simulcast commission fees in excess of 6%. The Board shall
24adopt rules limiting the interstate commission fees charged to
25an advance deposit wagering licensee. The Board shall adopt
26rules regarding advance deposit wagering on interstate

 

 

10000HB2498ham001- 237 -LRB100 03891 MJP 22700 a

1simulcast races that shall reflect, among other things, the
2General Assembly's desire to maximize revenues to the State,
3horsemen purses, and organizational licensees. However,
4organization licensees providing live signals pursuant to the
5requirements of this subsection (g) may petition the Board to
6withhold their live signals from an advance deposit wagering
7licensee if the organization licensee discovers and the Board
8finds reputable or credible information that the advance
9deposit wagering licensee is under investigation by another
10state or federal governmental agency, the advance deposit
11wagering licensee's license has been suspended in another
12state, or the advance deposit wagering licensee's license is in
13revocation proceedings in another state. The organization
14licensee's provision of their live signal to an advance deposit
15wagering licensee under this subsection (g) pertains to wagers
16placed from within Illinois. Advance deposit wagering
17licensees may place advance deposit wagering terminals at
18wagering facilities as a convenience to customers. The advance
19deposit wagering licensee shall not charge or collect any fee
20from purses for the placement of the advance deposit wagering
21terminals. The costs and expenses of the host track and
22non-host licensees associated with interstate simulcast
23wagering, other than the interstate commission fee, shall be
24borne by the host track and all non-host licensees incurring
25these costs. The interstate commission fee shall not exceed 5%
26of Illinois handle on the interstate simulcast race or races

 

 

10000HB2498ham001- 238 -LRB100 03891 MJP 22700 a

1without prior approval of the Board. The Board shall promulgate
2rules under which it may permit interstate commission fees in
3excess of 5%. The interstate commission fee and other fees
4charged by the sending racetrack, including, but not limited
5to, satellite decoder fees, shall be uniformly applied to the
6host track and all non-host licensees.
7    Notwithstanding any other provision of this Act, through
8December 31, 2018, an organization licensee, with the consent
9of the horsemen association representing the largest number of
10owners, trainers, jockeys, or standardbred drivers who race
11horses at that organization licensee's racing meeting, may
12maintain a system whereby advance deposit wagering may take
13place or an organization licensee, with the consent of the
14horsemen association representing the largest number of
15owners, trainers, jockeys, or standardbred drivers who race
16horses at that organization licensee's racing meeting, may
17contract with another person to carry out a system of advance
18deposit wagering. Such consent may not be unreasonably
19withheld. Only with respect to an appeal to the Board that
20consent for an organization licensee that maintains its own
21advance deposit wagering system is being unreasonably
22withheld, the Board shall issue a final order within 30 days
23after initiation of the appeal, and the organization licensee's
24advance deposit wagering system may remain operational during
25that 30-day period. The actions of any organization licensee
26who conducts advance deposit wagering or any person who has a

 

 

10000HB2498ham001- 239 -LRB100 03891 MJP 22700 a

1contract with an organization licensee to conduct advance
2deposit wagering who conducts advance deposit wagering on or
3after January 1, 2013 and prior to June 7, 2013 (the effective
4date of Public Act 98-18) this amendatory Act of the 98th
5General Assembly taken in reliance on the changes made to this
6subsection (g) by Public Act 98-18 this amendatory Act of the
798th General Assembly are hereby validated, provided payment of
8all applicable pari-mutuel taxes are remitted to the Board. All
9advance deposit wagers placed from within Illinois must be
10placed through a Board-approved advance deposit wagering
11licensee; no other entity may accept an advance deposit wager
12from a person within Illinois. All advance deposit wagering is
13subject to any rules adopted by the Board. The Board may adopt
14rules necessary to regulate advance deposit wagering through
15the use of emergency rulemaking in accordance with Section 5-45
16of the Illinois Administrative Procedure Act. The General
17Assembly finds that the adoption of rules to regulate advance
18deposit wagering is deemed an emergency and necessary for the
19public interest, safety, and welfare. An advance deposit
20wagering licensee may retain all moneys as agreed to by
21contract with an organization licensee. Any moneys retained by
22the organization licensee from advance deposit wagering, not
23including moneys retained by the advance deposit wagering
24licensee, shall be paid 50% to the organization licensee's
25purse account and 50% to the organization licensee. With the
26exception of any organization licensee that is owned by a

 

 

10000HB2498ham001- 240 -LRB100 03891 MJP 22700 a

1publicly traded company that is incorporated in a state other
2than Illinois and advance deposit wagering licensees under
3contract with such organization licensees, organization
4licensees that maintain advance deposit wagering systems and
5advance deposit wagering licensees that contract with
6organization licensees shall provide sufficiently detailed
7monthly accountings to the horsemen association representing
8the largest number of owners, trainers, jockeys, or
9standardbred drivers who race horses at that organization
10licensee's racing meeting so that the horsemen association, as
11an interested party, can confirm the accuracy of the amounts
12paid to the purse account at the horsemen association's
13affiliated organization licensee from advance deposit
14wagering. If more than one breed races at the same race track
15facility, then the 50% of the moneys to be paid to an
16organization licensee's purse account shall be allocated among
17all organization licensees' purse accounts operating at that
18race track facility proportionately based on the actual number
19of host days that the Board grants to that breed at that race
20track facility in the current calendar year. To the extent any
21fees from advance deposit wagering conducted in Illinois for
22wagers in Illinois or other states have been placed in escrow
23or otherwise withheld from wagers pending a determination of
24the legality of advance deposit wagering, no action shall be
25brought to declare such wagers or the disbursement of any fees
26previously escrowed illegal.

 

 

10000HB2498ham001- 241 -LRB100 03891 MJP 22700 a

1        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
2    inter-track intertrack wagering licensee other than the
3    host track may supplement the host track simulcast program
4    with additional simulcast races or race programs, provided
5    that between January 1 and the third Friday in February of
6    any year, inclusive, if no live thoroughbred racing is
7    occurring in Illinois during this period, only
8    thoroughbred races may be used for supplemental interstate
9    simulcast purposes. The Board shall withhold approval for a
10    supplemental interstate simulcast only if it finds that the
11    simulcast is clearly adverse to the integrity of racing. A
12    supplemental interstate simulcast may be transmitted from
13    an inter-track intertrack wagering licensee to its
14    affiliated non-host licensees. The interstate commission
15    fee for a supplemental interstate simulcast shall be paid
16    by the non-host licensee and its affiliated non-host
17    licensees receiving the simulcast.
18        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
19    inter-track intertrack wagering licensee other than the
20    host track may receive supplemental interstate simulcasts
21    only with the consent of the host track, except when the
22    Board finds that the simulcast is clearly adverse to the
23    integrity of racing. Consent granted under this paragraph
24    (2) to any inter-track intertrack wagering licensee shall
25    be deemed consent to all non-host licensees. The interstate
26    commission fee for the supplemental interstate simulcast

 

 

10000HB2498ham001- 242 -LRB100 03891 MJP 22700 a

1    shall be paid by all participating non-host licensees.
2        (3) Each licensee conducting interstate simulcast
3    wagering may retain, subject to the payment of all
4    applicable taxes and the purses, an amount not to exceed
5    17% of all money wagered. If any licensee conducts the
6    pari-mutuel system wagering on races conducted at
7    racetracks in another state or country, each such race or
8    race program shall be considered a separate racing day for
9    the purpose of determining the daily handle and computing
10    the privilege tax of that daily handle as provided in
11    subsection (a) of Section 27. Until January 1, 2000, from
12    the sums permitted to be retained pursuant to this
13    subsection, each inter-track intertrack wagering location
14    licensee shall pay 1% of the pari-mutuel handle wagered on
15    simulcast wagering to the Horse Racing Tax Allocation Fund,
16    subject to the provisions of subparagraph (B) of paragraph
17    (11) of subsection (h) of Section 26 of this Act.
18        (4) A licensee who receives an interstate simulcast may
19    combine its gross or net pools with pools at the sending
20    racetracks pursuant to rules established by the Board. All
21    licensees combining their gross pools at a sending
22    racetrack shall adopt the take-out percentages of the
23    sending racetrack. A licensee may also establish a separate
24    pool and takeout structure for wagering purposes on races
25    conducted at race tracks outside of the State of Illinois.
26    The licensee may permit pari-mutuel wagers placed in other

 

 

10000HB2498ham001- 243 -LRB100 03891 MJP 22700 a

1    states or countries to be combined with its gross or net
2    wagering pools or other wagering pools.
3        (5) After the payment of the interstate commission fee
4    (except for the interstate commission fee on a supplemental
5    interstate simulcast, which shall be paid by the host track
6    and by each non-host licensee through the host-track) and
7    all applicable State and local taxes, except as provided in
8    subsection (g) of Section 27 of this Act, the remainder of
9    moneys retained from simulcast wagering pursuant to this
10    subsection (g), and Section 26.2 shall be divided as
11    follows:
12            (A) For interstate simulcast wagers made at a host
13        track, 50% to the host track and 50% to purses at the
14        host track.
15            (B) For wagers placed on interstate simulcast
16        races, supplemental simulcasts as defined in
17        subparagraphs (1) and (2), and separately pooled races
18        conducted outside of the State of Illinois made at a
19        non-host licensee, 25% to the host track, 25% to the
20        non-host licensee, and 50% to the purses at the host
21        track.
22        (6) Notwithstanding any provision in this Act to the
23    contrary, non-host licensees who derive their licenses
24    from a track located in a county with a population in
25    excess of 230,000 and that borders the Mississippi River
26    may receive supplemental interstate simulcast races at all

 

 

10000HB2498ham001- 244 -LRB100 03891 MJP 22700 a

1    times subject to Board approval, which shall be withheld
2    only upon a finding that a supplemental interstate
3    simulcast is clearly adverse to the integrity of racing.
4        (7) Notwithstanding any provision of this Act to the
5    contrary, after payment of all applicable State and local
6    taxes and interstate commission fees, non-host licensees
7    who derive their licenses from a track located in a county
8    with a population in excess of 230,000 and that borders the
9    Mississippi River shall retain 50% of the retention from
10    interstate simulcast wagers and shall pay 50% to purses at
11    the track from which the non-host licensee derives its
12    license as follows:
13            (A) Between January 1 and the third Friday in
14        February, inclusive, if no live thoroughbred racing is
15        occurring in Illinois during this period, when the
16        interstate simulcast is a standardbred race, the purse
17        share to its standardbred purse account;
18            (B) Between January 1 and the third Friday in
19        February, inclusive, if no live thoroughbred racing is
20        occurring in Illinois during this period, and the
21        interstate simulcast is a thoroughbred race, the purse
22        share to its interstate simulcast purse pool to be
23        distributed under paragraph (10) of this subsection
24        (g);
25            (C) Between January 1 and the third Friday in
26        February, inclusive, if live thoroughbred racing is

 

 

10000HB2498ham001- 245 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 246 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 247 -LRB100 03891 MJP 22700 a

1        that racetrack requests from the Board at least as many
2        racing dates as were conducted in calendar year 2000,
3        80% shall be deposited into its standardbred purse
4        account; and
5            (B) Twenty percent shall be deposited into the
6        Illinois Colt Stakes Purse Distribution Fund. Moneys
7        deposited into the Illinois Colt Stakes Purse
8        Distribution Fund pursuant to this subparagraph (B)
9        shall be paid to Illinois conceived and foaled
10        thoroughbred breeders' programs and to thoroughbred
11        purses for races conducted at any county fairgrounds
12        for Illinois conceived and foaled horses at the
13        discretion of the Department of Agriculture, with the
14        advice and assistance of the Illinois Thoroughbred
15        Breeders Fund Advisory Board. The moneys deposited
16        into the Illinois Colt Stakes Purse Distribution Fund
17        pursuant to this subparagraph (B) shall be deposited
18        within 2 weeks after the day they were generated, shall
19        be in addition to and not in lieu of any other moneys
20        paid to thoroughbred purses under this Act, and shall
21        not be commingled with other moneys deposited into that
22        Fund.
23        (7.3) If no live standardbred racing is conducted at a
24    racetrack located in Madison County in calendar year 2000
25    or 2001, an organization licensee who is licensed to
26    conduct horse racing at that racetrack shall, before

 

 

10000HB2498ham001- 248 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 249 -LRB100 03891 MJP 22700 a

1    racetrack located in Madison County at any time in calendar
2    year 2001 before the payment required under paragraph (7.3)
3    has been made, the organization licensee who is licensed to
4    conduct racing at that racetrack shall pay all moneys
5    derived by that racetrack from simulcast wagering and
6    inter-track wagering during calendar years 2000 and 2001
7    that (1) are to be used for purses and (2) are generated
8    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
9    2001 to the standardbred purse account at that racetrack to
10    be used for standardbred purses.
11        (8) Notwithstanding any provision in this Act to the
12    contrary, an organization licensee from a track located in
13    a county with a population in excess of 230,000 and that
14    borders the Mississippi River and its affiliated non-host
15    licensees shall not be entitled to share in any retention
16    generated on racing, inter-track wagering, or simulcast
17    wagering at any other Illinois wagering facility.
18        (8.1) Notwithstanding any provisions in this Act to the
19    contrary, if 2 organization licensees are conducting
20    standardbred race meetings concurrently between the hours
21    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
22    State and local taxes and interstate commission fees, the
23    remainder of the amount retained from simulcast wagering
24    otherwise attributable to the host track and to host track
25    purses shall be split daily between the 2 organization
26    licensees and the purses at the tracks of the 2

 

 

10000HB2498ham001- 250 -LRB100 03891 MJP 22700 a

1    organization licensees, respectively, based on each
2    organization licensee's share of the total live handle for
3    that day, provided that this provision shall not apply to
4    any non-host licensee that derives its license from a track
5    located in a county with a population in excess of 230,000
6    and that borders the Mississippi River.
7        (9) (Blank).
8        (10) (Blank).
9        (11) (Blank).
10        (12) The Board shall have authority to compel all host
11    tracks to receive the simulcast of any or all races
12    conducted at the Springfield or DuQuoin State fairgrounds
13    and include all such races as part of their simulcast
14    programs.
15        (13) Notwithstanding any other provision of this Act,
16    in the event that the total Illinois pari-mutuel handle on
17    Illinois horse races at all wagering facilities in any
18    calendar year is less than 75% of the total Illinois
19    pari-mutuel handle on Illinois horse races at all such
20    wagering facilities for calendar year 1994, then each
21    wagering facility that has an annual total Illinois
22    pari-mutuel handle on Illinois horse races that is less
23    than 75% of the total Illinois pari-mutuel handle on
24    Illinois horse races at such wagering facility for calendar
25    year 1994, shall be permitted to receive, from any amount
26    otherwise payable to the purse account at the race track

 

 

10000HB2498ham001- 251 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 252 -LRB100 03891 MJP 22700 a

1    shall appropriate sufficient funds from the General
2    Revenue Fund to the Department of Agriculture for payment
3    into the thoroughbred and standardbred horse racing purse
4    accounts at Illinois pari-mutuel tracks. The amount paid to
5    each purse account shall be the amount certified by the
6    Illinois Racing Board in January to be transferred from
7    each account to each eligible racing facility in accordance
8    with the provisions of this Section. Beginning in the
9    calendar year in which an organization licensee that is
10    eligible to receive payment under this paragraph (13)
11    begins to receive funds from electronic gaming, the amount
12    of the payment due to all wagering facilities licensed
13    under that organization licensee under this paragraph (13)
14    shall be the amount certified by the Board in January of
15    that year. An organization licensee and its related
16    wagering facilities shall no longer be able to receive
17    payments under this paragraph (13) beginning in the year
18    subsequent to the first year in which the organization
19    licensee begins to receive funds from electronic gaming.
20    (h) The Board may approve and license the conduct of
21inter-track wagering and simulcast wagering by inter-track
22wagering licensees and inter-track wagering location licensees
23subject to the following terms and conditions:
24        (1) Any person licensed to conduct a race meeting (i)
25    at a track where 60 or more days of racing were conducted
26    during the immediately preceding calendar year or where

 

 

10000HB2498ham001- 253 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 254 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 255 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 256 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 257 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 258 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 259 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 260 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 261 -LRB100 03891 MJP 22700 a

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

 

 

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

 

 

10000HB2498ham001- 263 -LRB100 03891 MJP 22700 a

1    otherwise allocated to purses at that organization
2    licensee during the calendar year in question; and (iv) 8%
3    of the pari-mutuel handle on inter-track wagering wagered
4    at such location to satisfy all costs and expenses of
5    conducting its wagering. The remainder of the monies
6    retained by the inter-track wagering location licensee
7    shall be allocated 40% to the location licensee and 60% to
8    the organization licensee which provides the Illinois
9    races to the location, except that an inter-track
10    intertrack wagering location licensee that derives its
11    license from a track located in a county with a population
12    in excess of 230,000 and that borders the Mississippi River
13    shall not divide any remaining retention with the
14    organization licensee that provides the race or races and
15    an inter-track intertrack wagering location licensee that
16    accepts wagers on races conducted by an organization
17    licensee that conducts a race meet in a county with a
18    population in excess of 230,000 and that borders the
19    Mississippi River shall not divide any remaining retention
20    with the organization licensee. Notwithstanding the
21    provisions of clauses (ii) and (iv) of this paragraph, in
22    the case of the additional inter-track wagering location
23    licenses authorized under paragraph (1) of this subsection
24    (h) by Public Act 87-110 this amendatory Act of 1991, those
25    licensees shall pay the following amounts as purses: during
26    the first 12 months the licensee is in operation, 5.25% of

 

 

10000HB2498ham001- 264 -LRB100 03891 MJP 22700 a

1    the pari-mutuel handle wagered at the location on races;
2    during the second 12 months, 5.25%; during the third 12
3    months, 5.75%; during the fourth 12 months, 6.25%; and
4    during the fifth 12 months and thereafter, 6.75%. The
5    following amounts shall be retained by the licensee to
6    satisfy all costs and expenses of conducting its wagering:
7    during the first 12 months the licensee is in operation,
8    8.25% of the pari-mutuel handle wagered at the location;
9    during the second 12 months, 8.25%; during the third 12
10    months, 7.75%; during the fourth 12 months, 7.25%; and
11    during the fifth 12 months and thereafter, 6.75%. For
12    additional inter-track intertrack wagering location
13    licensees authorized under Public Act 89-16 this
14    amendatory Act of 1995, purses for the first 12 months the
15    licensee is in operation shall be 5.75% of the pari-mutuel
16    wagered at the location, purses for the second 12 months
17    the licensee is in operation shall be 6.25%, and purses
18    thereafter shall be 6.75%. For additional inter-track
19    intertrack location licensees authorized under Public Act
20    89-16 this amendatory Act of 1995, the licensee shall be
21    allowed to retain to satisfy all costs and expenses: 7.75%
22    of the pari-mutuel handle wagered at the location during
23    its first 12 months of operation, 7.25% during its second
24    12 months of operation, and 6.75% thereafter.
25        (C) There is hereby created the Horse Racing Tax
26    Allocation Fund which shall remain in existence until

 

 

10000HB2498ham001- 265 -LRB100 03891 MJP 22700 a

1    December 31, 1999. Moneys remaining in the Fund after
2    December 31, 1999 shall be paid into the General Revenue
3    Fund. Until January 1, 2000, all monies paid into the Horse
4    Racing Tax Allocation Fund pursuant to this paragraph (11)
5    by inter-track wagering location licensees located in park
6    districts of 500,000 population or less, or in a
7    municipality that is not included within any park district
8    but is included within a conservation district and is the
9    county seat of a county that (i) is contiguous to the state
10    of Indiana and (ii) has a 1990 population of 88,257
11    according to the United States Bureau of the Census, and
12    operating on May 1, 1994 shall be allocated by
13    appropriation as follows:
14            Two-sevenths to the Department of Agriculture.
15        Fifty percent of this two-sevenths shall be used to
16        promote the Illinois horse racing and breeding
17        industry, and shall be distributed by the Department of
18        Agriculture upon the advice of a 9-member committee
19        appointed by the Governor consisting of the following
20        members: the Director of Agriculture, who shall serve
21        as chairman; 2 representatives of organization
22        licensees conducting thoroughbred race meetings in
23        this State, recommended by those licensees; 2
24        representatives of organization licensees conducting
25        standardbred race meetings in this State, recommended
26        by those licensees; a representative of the Illinois

 

 

10000HB2498ham001- 266 -LRB100 03891 MJP 22700 a

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

 

 

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

 

 

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

 

 

10000HB2498ham001- 269 -LRB100 03891 MJP 22700 a

1            Two-sevenths to the Department of Agriculture.
2        Fifty percent of this two-sevenths shall be used to
3        promote the Illinois horse racing and breeding
4        industry, and shall be distributed by the Department of
5        Agriculture upon the advice of a 9-member committee
6        appointed by the Governor consisting of the following
7        members: the Director of Agriculture, who shall serve
8        as chairman; 2 representatives of organization
9        licensees conducting thoroughbred race meetings in
10        this State, recommended by those licensees; 2
11        representatives of organization licensees conducting
12        standardbred race meetings in this State, recommended
13        by those licensees; a representative of the Illinois
14        Thoroughbred Breeders and Owners Foundation,
15        recommended by that Foundation; a representative of
16        the Illinois Standardbred Owners and Breeders
17        Association, recommended by that Association; a
18        representative of the Horsemen's Benevolent and
19        Protective Association or any successor organization
20        thereto established in Illinois comprised of the
21        largest number of owners and trainers, recommended by
22        that Association or that successor organization; and a
23        representative of the Illinois Harness Horsemen's
24        Association, recommended by that Association.
25        Committee members shall serve for terms of 2 years,
26        commencing January 1 of each even-numbered year. If a

 

 

10000HB2498ham001- 270 -LRB100 03891 MJP 22700 a

1        representative of any of the above-named entities has
2        not been recommended by January 1 of any even-numbered
3        year, the Governor shall appoint a committee member to
4        fill that position. Committee members shall receive no
5        compensation for their services as members but shall be
6        reimbursed for all actual and necessary expenses and
7        disbursements incurred in the performance of their
8        official duties. The remaining 50% of this
9        two-sevenths shall be distributed to county fairs for
10        premiums and rehabilitation as set forth in the
11        Agricultural Fair Act;
12            Four-sevenths to museums and aquariums located in
13        park districts of over 500,000 population; provided
14        that the monies are distributed in accordance with the
15        previous year's distribution of the maintenance tax
16        for such museums and aquariums as provided in Section 2
17        of the Park District Aquarium and Museum Act; and
18            One-seventh to the Agricultural Premium Fund to be
19        used for distribution to agricultural home economics
20        extension councils in accordance with "An Act in
21        relation to additional support and finances for the
22        Agricultural and Home Economic Extension Councils in
23        the several counties of this State and making an
24        appropriation therefor", approved July 24, 1967. This
25        subparagraph (C) shall be inoperative and of no force
26        and effect on and after January 1, 2000.

 

 

10000HB2498ham001- 271 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 272 -LRB100 03891 MJP 22700 a

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

 

 

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

 

 

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1            (G) The Board is vested with the power to impose
2        civil penalties of up to $5,000 against individuals and
3        up to $10,000 against licensees for each violation of
4        any provision of this Act relating to the conduct of
5        this wagering, any rules adopted by the Board, any
6        order of the Board or any other action which in the
7        Board's discretion, is a detriment or impediment to
8        such wagering.
9        (13) The Department of Agriculture may enter into
10    agreements with licensees authorizing such licensees to
11    conduct inter-track wagering on races to be held at the
12    licensed race meetings conducted by the Department of
13    Agriculture. Such agreement shall specify the races of the
14    Department of Agriculture's licensed race meeting upon
15    which the licensees will conduct wagering. In the event
16    that a licensee conducts inter-track pari-mutuel wagering
17    on races from the Illinois State Fair or DuQuoin State Fair
18    which are in addition to the licensee's previously approved
19    racing program, those races shall be considered a separate
20    racing day for the purpose of determining the daily handle
21    and computing the privilege or pari-mutuel tax on that
22    daily handle as provided in Sections 27 and 27.1. Such
23    agreements shall be approved by the Board before such
24    wagering may be conducted. In determining whether to grant
25    approval, the Board shall give due consideration to the
26    best interests of the public and of horse racing. The

 

 

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1    provisions of paragraphs (1), (8), (8.1), and (8.2) of
2    subsection (h) of this Section which are not specified in
3    this paragraph (13) shall not apply to licensed race
4    meetings conducted by the Department of Agriculture at the
5    Illinois State Fair in Sangamon County or the DuQuoin State
6    Fair in Perry County, or to any wagering conducted on those
7    race meetings.
8        (14) An inter-track wagering location license
9    authorized by the Board in 2016 that is owned and operated
10    by a race track in Rock Island County shall be transferred
11    to a commonly owned race track in Cook County on August 12,
12    2016 (the effective date of Public Act 99-757) this
13    amendatory Act of the 99th General Assembly. The licensee
14    shall retain its status in relation to purse distribution
15    under paragraph (11) of this subsection (h) following the
16    transfer to the new entity. The pari-mutuel tax credit
17    under Section 32.1 shall not be applied toward any
18    pari-mutuel tax obligation of the inter-track wagering
19    location licensee of the license that is transferred under
20    this paragraph (14).
21    (i) Notwithstanding the other provisions of this Act, the
22conduct of wagering at wagering facilities is authorized on all
23days, except as limited by subsection (b) of Section 19 of this
24Act.
25(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 98-968,
26eff. 8-15-14; 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;

 

 

10000HB2498ham001- 276 -LRB100 03891 MJP 22700 a

1revised 9-14-16.)
 
2    (230 ILCS 5/26.8)
3    Sec. 26.8. Beginning on February 1, 2014 and through
4December 31, 2018, each wagering licensee may impose a
5surcharge of up to 0.5% on winning wagers and winnings from
6wagers. The surcharge shall be deducted from winnings prior to
7payout. All amounts collected from the imposition of this
8surcharge shall be evenly distributed to the organization
9licensee and the purse account of the organization licensee
10with which the licensee is affiliated. The amounts distributed
11under this Section shall be in addition to the amounts paid
12pursuant to paragraph (10) of subsection (h) of Section 26,
13Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
14(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
15    (230 ILCS 5/26.9)
16    Sec. 26.9. Beginning on February 1, 2014 and through
17December 31, 2018, in addition to the surcharge imposed in
18Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
19licensee shall impose a surcharge of 0.2% on winning wagers and
20winnings from wagers. The surcharge shall be deducted from
21winnings prior to payout. All amounts collected from the
22surcharges imposed under this Section shall be remitted to the
23Board. From amounts collected under this Section, the Board
24shall deposit an amount not to exceed $100,000 annually into

 

 

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1the Quarter Horse Purse Fund and all remaining amounts into the
2Horse Racing Fund.
3(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
 
4    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
5    Sec. 27. (a) In addition to the organization license fee
6provided by this Act, until January 1, 2000, a graduated
7privilege tax is hereby imposed for conducting the pari-mutuel
8system of wagering permitted under this Act. Until January 1,
92000, except as provided in subsection (g) of Section 27 of
10this Act, all of the breakage of each racing day held by any
11licensee in the State shall be paid to the State. Until January
121, 2000, such daily graduated privilege tax shall be paid by
13the licensee from the amount permitted to be retained under
14this Act. Until January 1, 2000, each day's graduated privilege
15tax, breakage, and Horse Racing Tax Allocation funds shall be
16remitted to the Department of Revenue within 48 hours after the
17close of the racing day upon which it is assessed or within
18such other time as the Board prescribes. The privilege tax
19hereby imposed, until January 1, 2000, shall be a flat tax at
20the rate of 2% of the daily pari-mutuel handle except as
21provided in Section 27.1.
22    In addition, every organization licensee, except as
23provided in Section 27.1 of this Act, which conducts multiple
24wagering shall pay, until January 1, 2000, as a privilege tax
25on multiple wagers an amount equal to 1.25% of all moneys

 

 

10000HB2498ham001- 278 -LRB100 03891 MJP 22700 a

1wagered each day on such multiple wagers, plus an additional
2amount equal to 3.5% of the amount wagered each day on any
3other multiple wager which involves a single betting interest
4on 3 or more horses. The licensee shall remit the amount of
5such taxes to the Department of Revenue within 48 hours after
6the close of the racing day on which it is assessed or within
7such other time as the Board prescribes.
8    This subsection (a) shall be inoperative and of no force
9and effect on and after January 1, 2000.
10    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
11at the rate of 1.5% of the daily pari-mutuel handle is imposed
12at all pari-mutuel wagering facilities and on advance deposit
13wagering from a location other than a wagering facility, except
14as otherwise provided for in this subsection (a-5). In addition
15to the pari-mutuel tax imposed on advance deposit wagering
16pursuant to this subsection (a-5), beginning on August 24, 2012
17(the effective date of Public Act 97-1060) and through December
1831, 2018, an additional pari-mutuel tax at the rate of 0.25%
19shall be imposed on advance deposit wagering. Until August 25,
202012, the additional 0.25% pari-mutuel tax imposed on advance
21deposit wagering by Public Act 96-972 shall be deposited into
22the Quarter Horse Purse Fund, which shall be created as a
23non-appropriated trust fund administered by the Board for
24grants to thoroughbred organization licensees for payment of
25purses for quarter horse races conducted by the organization
26licensee. Beginning on August 26, 2012, the additional 0.25%

 

 

10000HB2498ham001- 279 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 280 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 281 -LRB100 03891 MJP 22700 a

1representative or representatives shall at all reasonable
2times have access to such records for the purpose of examining
3and checking the same and ascertaining whether the proper
4amount of taxes is being paid as provided. The Board shall
5require verified reports and a statement of the total of all
6monies wagered daily at each wagering facility upon which the
7taxes are assessed and may prescribe forms upon which such
8reports and statement shall be made.
9    (d) Before a license is issued or re-issued, the licensee
10shall post a bond in the sum of $500,000 to the State of
11Illinois. The bond shall be used to guarantee that the licensee
12faithfully makes the payments, keeps the books and records and
13makes reports, and conducts games of chance in conformity with
14this Act and the rules adopted by the Board. The bond shall not
15be canceled by a surety on less than 30 days' notice in writing
16to the Board. If a bond is canceled and the licensee fails to
17file a new bond with the Board in the required amount on or
18before the effective date of cancellation, the licensee's
19license shall be revoked. The total and aggregate liability of
20the surety on the bond is limited to the amount specified in
21the bond. Any licensee failing or refusing to pay the amount of
22any tax due under this Section shall be guilty of a business
23offense and upon conviction shall be fined not more than $5,000
24in addition to the amount found due as tax under this Section.
25Each day's violation shall constitute a separate offense. All
26fines paid into Court by a licensee hereunder shall be

 

 

10000HB2498ham001- 282 -LRB100 03891 MJP 22700 a

1transmitted and paid over by the Clerk of the Court to the
2Board.
3    (e) No other license fee, privilege tax, excise tax, or
4racing fee, except as provided in this Act, shall be assessed
5or collected from any such licensee by the State.
6    (f) No other license fee, privilege tax, excise tax or
7racing fee shall be assessed or collected from any such
8licensee by units of local government except as provided in
9paragraph 10.1 of subsection (h) and subsection (f) of Section
1026 of this Act. However, any municipality that has a Board
11licensed horse race meeting at a race track wholly within its
12corporate boundaries or a township that has a Board licensed
13horse race meeting at a race track wholly within the
14unincorporated area of the township may charge a local
15amusement tax not to exceed 10¢ per admission to such horse
16race meeting by the enactment of an ordinance. However, any
17municipality or county that has a Board licensed inter-track
18wagering location facility wholly within its corporate
19boundaries may each impose an admission fee not to exceed $1.00
20per admission to such inter-track wagering location facility,
21so that a total of not more than $2.00 per admission may be
22imposed. Except as provided in subparagraph (g) of Section 27
23of this Act, the inter-track wagering location licensee shall
24collect any and all such fees and within 48 hours remit the
25fees to the Board as the Board prescribes, which shall,
26pursuant to rule, cause the fees to be distributed to the

 

 

10000HB2498ham001- 283 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 284 -LRB100 03891 MJP 22700 a

1    year 1994 (the total to be determined based on the sum of
2    1994 on-track wagering for all organization licensees
3    issued organization licenses in both the allocation year
4    and the preceding year) multiplied by the total amount
5    allocated for standardbred or thoroughbred purses,
6    provided that the first $1,500,000 of the amount allocated
7    to standardbred purses under item (i) shall be allocated to
8    the Department of Agriculture to be expended with the
9    assistance and advice of the Illinois Standardbred
10    Breeders Funds Advisory Board for the purposes listed in
11    subsection (g) of Section 31 of this Act, before the amount
12    allocated to standardbred purses under item (i) is
13    allocated to standardbred organization licensees in the
14    succeeding allocation year.
15    To the extent the excess amount of taxes and fees to be
16collected and distributed to State and local governmental
17authorities exceeds $11 million, that excess amount shall be
18collected and distributed to State and local authorities as
19provided for under this Act.
20(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
21eff. 8-12-16.)
 
22    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
23    Sec. 30. (a) The General Assembly declares that it is the
24policy of this State to encourage the breeding of thoroughbred
25horses in this State and the ownership of such horses by

 

 

10000HB2498ham001- 285 -LRB100 03891 MJP 22700 a

1residents of this State in order to provide for: sufficient
2numbers of high quality thoroughbred horses to participate in
3thoroughbred racing meetings in this State, and to establish
4and preserve the agricultural and commercial benefits of such
5breeding and racing industries to the State of Illinois. It is
6the intent of the General Assembly to further this policy by
7the provisions of this Act.
8    (b) Each organization licensee conducting a thoroughbred
9racing meeting pursuant to this Act shall provide at least two
10races each day limited to Illinois conceived and foaled horses
11or Illinois foaled horses or both. A minimum of 6 races shall
12be conducted each week limited to Illinois conceived and foaled
13or Illinois foaled horses or both. No horses shall be permitted
14to start in such races unless duly registered under the rules
15of the Department of Agriculture.
16    (c) Conditions of races under subsection (b) shall be
17commensurate with past performance, quality, and class of
18Illinois conceived and foaled and Illinois foaled horses
19available. If, however, sufficient competition cannot be had
20among horses of that class on any day, the races may, with
21consent of the Board, be eliminated for that day and substitute
22races provided.
23    (d) There is hereby created a special fund of the State
24Treasury to be known as the Illinois Thoroughbred Breeders
25Fund.
26    Beginning on the effective date of this amendatory Act of

 

 

10000HB2498ham001- 286 -LRB100 03891 MJP 22700 a

1the 100th General Assembly, the Illinois Thoroughbred Breeders
2Fund shall become a non-appropriated trust fund held separately
3from State moneys. Expenditures from this Fund shall no longer
4be subject to appropriation.
5    Except as provided in subsection (g) of Section 27 of this
6Act, 8.5% of all the monies received by the State as privilege
7taxes on Thoroughbred racing meetings shall be paid into the
8Illinois Thoroughbred Breeders Fund.
9    Notwithstanding any provision of law to the contrary,
10amounts deposited into the Illinois Thoroughbred Breeders Fund
11from revenues generated by electronic gaming after the
12effective date of this amendatory Act of the 100th General
13Assembly shall be in addition to tax and fee amounts paid under
14this Section for calendar year 2017 and thereafter.
15    (e) The Illinois Thoroughbred Breeders Fund shall be
16administered by the Department of Agriculture with the advice
17and assistance of the Advisory Board created in subsection (f)
18of this Section.
19    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
20shall consist of the Director of the Department of Agriculture,
21who shall serve as Chairman; a member of the Illinois Racing
22Board, designated by it; 2 representatives of the organization
23licensees conducting thoroughbred racing meetings, recommended
24by them; 2 representatives of the Illinois Thoroughbred
25Breeders and Owners Foundation, recommended by it; one
26representative and 2 representatives of the Horsemen's

 

 

10000HB2498ham001- 287 -LRB100 03891 MJP 22700 a

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

 

 

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1following purposes only:
2        (1) To provide purse supplements to owners of horses
3    participating in races limited to Illinois conceived and
4    foaled and Illinois foaled horses. Any such purse
5    supplements shall not be included in and shall be paid in
6    addition to any purses, stakes, or breeders' awards offered
7    by each organization licensee as determined by agreement
8    between such organization licensee and an organization
9    representing the horsemen. No monies from the Illinois
10    Thoroughbred Breeders Fund shall be used to provide purse
11    supplements for claiming races in which the minimum
12    claiming price is less than $7,500.
13        (2) To provide stakes and awards to be paid to the
14    owners of the winning horses in certain races limited to
15    Illinois conceived and foaled and Illinois foaled horses
16    designated as stakes races.
17        (2.5) To provide an award to the owner or owners of an
18    Illinois conceived and foaled or Illinois foaled horse that
19    wins a maiden special weight, an allowance, overnight
20    handicap race, or claiming race with claiming price of
21    $10,000 or more providing the race is not restricted to
22    Illinois conceived and foaled or Illinois foaled horses.
23    Awards shall also be provided to the owner or owners of
24    Illinois conceived and foaled and Illinois foaled horses
25    that place second or third in those races. To the extent
26    that additional moneys are required to pay the minimum

 

 

10000HB2498ham001- 289 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 290 -LRB100 03891 MJP 22700 a

1    advice and assistance of the Illinois Thoroughbred
2    Breeders Fund Advisory Board. There shall be no wagering of
3    any kind on the running of Illinois conceived and foaled
4    races at county fairs.
5        (4.1) To provide purse money for an Illinois stallion
6    stakes program.
7        (5) No less than 90% 80% of all monies appropriated
8    from the Illinois Thoroughbred Breeders Fund shall be
9    expended for the purposes in (1), (2), (2.5), (3), (4),
10    (4.1), and (5) as shown above.
11        (6) To provide for educational programs regarding the
12    thoroughbred breeding industry.
13        (7) To provide for research programs concerning the
14    health, development and care of the thoroughbred horse.
15        (8) To provide for a scholarship and training program
16    for students of equine veterinary medicine.
17        (9) To provide for dissemination of public information
18    designed to promote the breeding of thoroughbred horses in
19    Illinois.
20        (10) To provide for all expenses incurred in the
21    administration of the Illinois Thoroughbred Breeders Fund.
22    (h) The Illinois Thoroughbred Breeders Fund is not subject
23to administrative charges or chargebacks, including, but not
24limited to, those authorized under Section 8h of the State
25Finance Act. Whenever the Governor finds that the amount in the
26Illinois Thoroughbred Breeders Fund is more than the total of

 

 

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

 

 

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1conceived and foaled horse, or both, shall be paid 30% from the
2organization licensee's account and 70% from the purse account
3as follows: 20% to the breeder of the winning horse and 1 1/2%
4to the organization representing thoroughbred breeders and
5owners whose representatives serves on the Illinois
6Thoroughbred Breeders Fund Advisory Board for verifying the
7amounts of breeders' awards earned, assuring their
8distribution in accordance with this Act, and servicing and
9promoting the Illinois Thoroughbred racing industry. A sum
10equal to 12 1/2% of the first prize money of every purse won by
11an Illinois foaled or an Illinois conceived and foaled horse in
12races not limited to Illinois foaled horses or Illinois
13conceived and foaled horses, or both, shall be paid by the
14organization licensee conducting the horse race meeting. Such
15sum shall be paid from the organization licensee's share of the
16money wagered as follows: 11 1/2% to the breeder of the winning
17horse and 1% to the organization representing thoroughbred
18breeders and owners whose representative serves on the Illinois
19Thoroughbred Breeders Fund Advisory Board for verifying the
20amounts of breeders' awards earned, assuring their
21distribution in accordance with this Act, and servicing and
22promoting the Illinois thoroughbred horse racing industry. The
23organization representing thoroughbred breeders and owners
24shall cause all expenditures of monies received under this
25subsection (i) to be audited at least annually by a registered
26public accountant. The organization shall file copies of each

 

 

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1annual audit with the Racing Board, the Clerk of the House of
2Representatives and the Secretary of the Senate, and shall make
3copies of each annual audit available to the public upon
4request and upon payment of the reasonable cost of photocopying
5the requested number of copies. Such payments shall not reduce
6any award to the owner of the horse or reduce the taxes payable
7under this Act. Upon completion of its racing meet, each
8organization licensee shall deliver to the organization
9representing thoroughbred breeders and owners whose
10representative serves on the Illinois Thoroughbred Breeders
11Fund Advisory Board a listing of all the Illinois foaled and
12the Illinois conceived and foaled horses which won breeders'
13awards and the amount of such breeders' awards under this
14subsection to verify accuracy of payments and assure proper
15distribution of breeders' awards in accordance with the
16provisions of this Act. Such payments shall be delivered by the
17organization licensee within 30 days of the end of each race
18meeting.
19    (j) A sum equal to 13% of the first prize money won in
20every race limited to Illinois foaled horses or Illinois
21conceived and foaled horses, or both, shall be paid in the
22following manner by the organization licensee conducting the
23horse race meeting, 50% from the organization licensee's share
24of the money wagered and 50% from the purse account as follows:
2511 1/2% to the breeders of the horses in each such race which
26are the official first, second, third, and fourth finishers and

 

 

10000HB2498ham001- 294 -LRB100 03891 MJP 22700 a

11 1/2% to the organization representing thoroughbred breeders
2and owners whose representatives serves on the Illinois
3Thoroughbred Breeders Fund Advisory Board for verifying the
4amounts of breeders' awards earned, ensuring their proper
5distribution in accordance with this Act, and servicing and
6promoting the Illinois horse racing industry. Beginning in the
7calendar year in which an organization licensee that is
8eligible to receive payments under paragraph (13) of subsection
9(g) of Section 26 of this Act begins to receive funds from
10electronic gaming, a sum of 21 1/2% of every purse in a race
11limited to Illinois foaled horses or Illinois conceived and
12foaled horses, or both, shall be paid by the organization
13licensee conducting the horse race meeting. Such sum shall be
14paid 30% from the organization licensee's account and 70% from
15the purse account as follows: 20% to the breeders of the horses
16in each such race who are official first, second, third and
17fourth finishers and 1 1/2% to the organization representing
18thoroughbred breeders and owners whose representatives serve
19on the Illinois Thoroughbred Breeders Fund Advisory Board for
20verifying the amounts of breeders' awards earned, ensuring
21their proper distribution in accordance with this Act, and
22servicing and promoting the Illinois thoroughbred horse racing
23industry. The organization representing thoroughbred breeders
24and owners shall cause all expenditures of moneys received
25under this subsection (j) to be audited at least annually by a
26registered public accountant. The organization shall file

 

 

10000HB2498ham001- 295 -LRB100 03891 MJP 22700 a

1copies of each annual audit with the Racing Board, the Clerk of
2the House of Representatives and the Secretary of the Senate,
3and shall make copies of each annual audit available to the
4public upon request and upon payment of the reasonable cost of
5photocopying the requested number of copies. A sum equal to 12
61/2% of the first prize money won in each race limited to
7Illinois foaled horses or Illinois conceived and foaled horses,
8or both, shall be paid in the following manner by the
9organization licensee conducting the horse race meeting, from
10the organization licensee's share of the money wagered: 11 1/2%
11to the breeders of the horses in each such race which are the
12official first, second, third and fourth finishers and 1% to
13the organization representing thoroughbred breeders and owners
14whose representative serves on the Illinois Thoroughbred
15Breeders Fund Advisory Board for verifying the amounts of
16breeders' awards earned, assuring their proper distribution in
17accordance with this Act, and servicing and promoting the
18Illinois thoroughbred horse racing industry. The organization
19representing thoroughbred breeders and owners shall cause all
20expenditures of monies received under this subsection (j) to be
21audited at least annually by a registered public accountant.
22The organization shall file copies of each annual audit with
23the Racing Board, the Clerk of the House of Representatives and
24the Secretary of the Senate, and shall make copies of each
25annual audit available to the public upon request and upon
26payment of the reasonable cost of photocopying the requested

 

 

10000HB2498ham001- 296 -LRB100 03891 MJP 22700 a

1number of copies.
2    The amounts 11 1/2% paid to the breeders in accordance with
3this subsection shall be distributed as follows:
4        (1) 60% of such sum shall be paid to the breeder of the
5    horse which finishes in the official first position;
6        (2) 20% of such sum shall be paid to the breeder of the
7    horse which finishes in the official second position;
8        (3) 15% of such sum shall be paid to the breeder of the
9    horse which finishes in the official third position; and
10        (4) 5% of such sum shall be paid to the breeder of the
11    horse which finishes in the official fourth position.
12    Such payments shall not reduce any award to the owners of a
13horse or reduce the taxes payable under this Act. Upon
14completion of its racing meet, each organization licensee shall
15deliver to the organization representing thoroughbred breeders
16and owners whose representative serves on the Illinois
17Thoroughbred Breeders Fund Advisory Board a listing of all the
18Illinois foaled and the Illinois conceived and foaled horses
19which won breeders' awards and the amount of such breeders'
20awards in accordance with the provisions of this Act. Such
21payments shall be delivered by the organization licensee within
2230 days of the end of each race meeting.
23    (k) The term "breeder", as used herein, means the owner of
24the mare at the time the foal is dropped. An "Illinois foaled
25horse" is a foal dropped by a mare which enters this State on
26or before December 1, in the year in which the horse is bred,

 

 

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1provided the mare remains continuously in this State until its
2foal is born. An "Illinois foaled horse" also means a foal born
3of a mare in the same year as the mare enters this State on or
4before March 1, and remains in this State at least 30 days
5after foaling, is bred back during the season of the foaling to
6an Illinois Registered Stallion (unless a veterinarian
7certifies that the mare should not be bred for health reasons),
8and is not bred to a stallion standing in any other state
9during the season of foaling. An "Illinois foaled horse" also
10means a foal born in Illinois of a mare purchased at public
11auction subsequent to the mare entering this State on or before
12March 1 prior to February 1 of the foaling year providing the
13mare is owned solely by one or more Illinois residents or an
14Illinois entity that is entirely owned by one or more Illinois
15residents.
16    (l) The Department of Agriculture shall, by rule, with the
17advice and assistance of the Illinois Thoroughbred Breeders
18Fund Advisory Board:
19        (1) Qualify stallions for Illinois breeding; such
20    stallions to stand for service within the State of Illinois
21    at the time of a foal's conception. Such stallion must not
22    stand for service at any place outside the State of
23    Illinois during the calendar year in which the foal is
24    conceived. The Department of Agriculture may assess and
25    collect an application fee of up to $500 fees for the
26    registration of Illinois-eligible stallions. All fees

 

 

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

 

 

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1    In determining the stakes races and the amount of awards
2for such races, the Department of Agriculture shall consider
3factors, including but not limited to, the amount of money
4appropriated for the Illinois Thoroughbred Breeders Fund
5program, organization licensees' contributions, availability
6of stakes caliber horses as demonstrated by past performances,
7whether the race can be coordinated into the proposed racing
8dates within organization licensees' racing dates, opportunity
9for colts and fillies and various age groups to race, public
10wagering on such races, and the previous racing schedule.
11    (n) The Board and the organizational licensee shall notify
12the Department of the conditions and minimum purses for races
13limited to Illinois conceived and foaled and Illinois foaled
14horses conducted for each organizational licensee conducting a
15thoroughbred racing meeting. The Department of Agriculture
16with the advice and assistance of the Illinois Thoroughbred
17Breeders Fund Advisory Board may allocate monies for purse
18supplements for such races. In determining whether to allocate
19money and the amount, the Department of Agriculture shall
20consider factors, including but not limited to, the amount of
21money appropriated for the Illinois Thoroughbred Breeders Fund
22program, the number of races that may occur, and the
23organizational licensee's purse structure.
24    (o) (Blank).
25(Source: P.A. 98-692, eff. 7-1-14.)
 

 

 

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1    (230 ILCS 5/30.5)
2    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
3    (a) The General Assembly declares that it is the policy of
4this State to encourage the breeding of racing quarter horses
5in this State and the ownership of such horses by residents of
6this State in order to provide for sufficient numbers of high
7quality racing quarter horses in this State and to establish
8and preserve the agricultural and commercial benefits of such
9breeding and racing industries to the State of Illinois. It is
10the intent of the General Assembly to further this policy by
11the provisions of this Act.
12    (b) There is hereby created non-appropriated trust a
13special fund in the State Treasury to be known as the Illinois
14Racing Quarter Horse Breeders Fund, which is held separately
15from State moneys. Except as provided in subsection (g) of
16Section 27 of this Act, 8.5% of all the moneys received by the
17State as pari-mutuel taxes on quarter horse racing shall be
18paid into the Illinois Racing Quarter Horse Breeders Fund. The
19Illinois Racing Quarter Horse Breeders Fund shall not be
20subject to administrative charges or chargebacks, including,
21but not limited to, those authorized under Section 8h of the
22State Finance Act.
23    (c) The Illinois Racing Quarter Horse Breeders Fund shall
24be administered by the Department of Agriculture with the
25advice and assistance of the Advisory Board created in
26subsection (d) of this Section.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (b) Each organization licensee conducting a harness racing
2meeting pursuant to this Act shall provide for at least two
3races each race program limited to Illinois conceived and
4foaled horses. A minimum of 6 races shall be conducted each
5week limited to Illinois conceived and foaled horses. No horses
6shall be permitted to start in such races unless duly
7registered under the rules of the Department of Agriculture.
8    (b-5) Organization licensees, not including the Illinois
9State Fair or the DuQuoin State Fair, shall provide stake races
10and early closer races for Illinois conceived and foaled horses
11so that purses distributed for such races shall be no less than
1217% of total purses distributed for harness racing in that
13calendar year in addition to any stakes payments and starting
14fees contributed by horse owners.
15    (b-10) Each organization licensee conducting a harness
16racing meeting pursuant to this Act shall provide an owner
17award to be paid from the purse account equal to 25% of the
18amount earned by Illinois conceived and foaled horses in races
19that are not restricted to Illinois conceived and foaled
20horses. The owner awards shall not be paid on races below the
21$10,000 claiming class.
22    (c) Conditions of races under subsection (b) shall be
23commensurate with past performance, quality and class of
24Illinois conceived and foaled horses available. If, however,
25sufficient competition cannot be had among horses of that class
26on any day, the races may, with consent of the Board, be

 

 

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1eliminated for that day and substitute races provided.
2    (d) There is hereby created a special fund of the State
3Treasury to be known as the Illinois Standardbred Breeders
4Fund.
5    During the calendar year 1981, and each year thereafter,
6except as provided in subsection (g) of Section 27 of this Act,
7eight and one-half per cent of all the monies received by the
8State as privilege taxes on harness racing meetings shall be
9paid into the Illinois Standardbred Breeders Fund.
10    (e) The Illinois Standardbred Breeders Fund shall be
11administered by the Department of Agriculture with the
12assistance and advice of the Advisory Board created in
13subsection (f) of this Section.
14    (f) The Illinois Standardbred Breeders Fund Advisory Board
15is hereby created. The Advisory Board shall consist of the
16Director of the Department of Agriculture, who shall serve as
17Chairman; the Superintendent of the Illinois State Fair; a
18member of the Illinois Racing Board, designated by it; a
19representative of the largest association of Illinois
20standardbred owners and breeders, recommended by it; a
21representative of a statewide association representing
22agricultural fairs in Illinois, recommended by it, such
23representative to be from a fair at which Illinois conceived
24and foaled racing is conducted; a representative of the
25organization licensees conducting harness racing meetings,
26recommended by them; a representative of the Breeder's

 

 

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

 

 

10000HB2498ham001- 308 -LRB100 03891 MJP 22700 a

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

 

 

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

 

 

10000HB2498ham001- 310 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 311 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 312 -LRB100 03891 MJP 22700 a

1    requirements are met. The stallion must be qualified for
2    Illinois Standardbred Breeders Fund breeding at the time of
3    conception and the mare must be inseminated within the
4    State of Illinois. The foal must be dropped in Illinois and
5    properly registered with the Department of Agriculture in
6    accordance with this Act.
7        3. Provide that at least a 5 day racing program shall
8    be conducted at the State Fair each year, which program
9    shall include at least the following races limited to
10    Illinois conceived and foaled horses: (a) a two year old
11    Trot and Pace, and Filly Division of each; (b) a three year
12    old Trot and Pace, and Filly Division of each; (c) an aged
13    Trot and Pace, and Mare Division of each.
14        4. Provide for the payment of nominating, sustaining
15    and starting fees for races promoting the sport of harness
16    racing and for the races to be conducted at the State Fair
17    as provided in subsection (j) 3 of this Section provided
18    that the nominating, sustaining and starting payment
19    required from an entrant shall not exceed 2% of the purse
20    of such race. All nominating, sustaining and starting
21    payments shall be held for the benefit of entrants and
22    shall be paid out as part of the respective purses for such
23    races. Nominating, sustaining and starting fees shall be
24    held in trust accounts for the purposes as set forth in
25    this Act and in accordance with Section 205-15 of the
26    Department of Agriculture Law (20 ILCS 205/205-15).

 

 

10000HB2498ham001- 313 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 314 -LRB100 03891 MJP 22700 a

1    (m) At all standardbred race meetings held or conducted
2under authority of a license granted by the Board, and at all
3standardbred races held at county fairs which are approved by
4the Department of Agriculture or at the Illinois or DuQuoin
5State Fairs, no one shall jog, train, warm up or drive a
6standardbred horse unless he or she is wearing a protective
7safety helmet, with the chin strap fastened and in place, which
8meets the standards and requirements as set forth in the 1984
9Standard for Protective Headgear for Use in Harness Racing and
10Other Equestrian Sports published by the Snell Memorial
11Foundation, or any standards and requirements for headgear the
12Illinois Racing Board may approve. Any other standards and
13requirements so approved by the Board shall equal or exceed
14those published by the Snell Memorial Foundation. Any
15equestrian helmet bearing the Snell label shall be deemed to
16have met those standards and requirements.
17(Source: P.A. 99-756, eff. 8-12-16.)
 
18    (230 ILCS 5/32.1)
19    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
20real estate equalization.
21    (a) In order to encourage new investment in Illinois
22racetrack facilities and mitigate differing real estate tax
23burdens among all racetracks, the licensees affiliated or
24associated with each racetrack that has been awarded live
25racing dates in the current year shall receive an immediate

 

 

10000HB2498ham001- 315 -LRB100 03891 MJP 22700 a

1pari-mutuel tax credit in an amount equal to the greater of (i)
250% of the amount of the real estate taxes paid in the prior
3year attributable to that racetrack, or (ii) the amount by
4which the real estate taxes paid in the prior year attributable
5to that racetrack exceeds 60% of the average real estate taxes
6paid in the prior year for all racetracks awarded live horse
7racing meets in the current year.
8    Each year, regardless of whether the organization licensee
9conducted live racing in the year of certification, the Board
10shall certify in writing, prior to December 31, the real estate
11taxes paid in that year for each racetrack and the amount of
12the pari-mutuel tax credit that each organization licensee,
13inter-track intertrack wagering licensee, and inter-track
14intertrack wagering location licensee that derives its license
15from such racetrack is entitled in the succeeding calendar
16year. The real estate taxes considered under this Section for
17any racetrack shall be those taxes on the real estate parcels
18and related facilities used to conduct a horse race meeting and
19inter-track wagering at such racetrack under this Act. In no
20event shall the amount of the tax credit under this Section
21exceed the amount of pari-mutuel taxes otherwise calculated
22under this Act. The amount of the tax credit under this Section
23shall be retained by each licensee and shall not be subject to
24any reallocation or further distribution under this Act. The
25Board may promulgate emergency rules to implement this Section.
26    (b) After the end of the 7-year period beginning on January

 

 

10000HB2498ham001- 316 -LRB100 03891 MJP 22700 a

11 of the calendar year immediately following the effective date
2of this amendatory Act of the 100th General Assembly, the
3organization licensee shall be ineligible to receive a tax
4credit under this Section.
5(Source: P.A. 91-40, eff. 6-25-99; revised 9-2-16.)
 
6    (230 ILCS 5/34.3 new)
7    Sec. 34.3. Drug testing. The Illinois Racing Board and the
8Department of Agriculture shall jointly establish a program for
9the purpose of conducting drug testing of horses at county
10fairs and shall adopt any rules necessary for enforcement of
11the program. The rules shall include appropriate penalties for
12violations.
 
13    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
14    Sec. 36. (a) Whoever administers or conspires to administer
15to any horse a hypnotic, narcotic, stimulant, depressant or any
16chemical substance which may affect the speed of a horse at any
17time in any race where the purse or any part of the purse is
18made of money authorized by any Section of this Act, except
19those chemical substances permitted by ruling of the Board,
20internally, externally or by hypodermic method in a race or
21prior thereto, or whoever knowingly enters a horse in any race
22within a period of 24 hours after any hypnotic, narcotic,
23stimulant, depressant or any other chemical substance which may
24affect the speed of a horse at any time, except those chemical

 

 

10000HB2498ham001- 317 -LRB100 03891 MJP 22700 a

1substances permitted by ruling of the Board, has been
2administered to such horse either internally or externally or
3by hypodermic method for the purpose of increasing or retarding
4the speed of such horse shall be guilty of a Class 4 felony.
5The Board shall suspend or revoke such violator's license.
6    (b) The term "hypnotic" as used in this Section includes
7all barbituric acid preparations and derivatives.
8    (c) The term "narcotic" as used in this Section includes
9opium and all its alkaloids, salts, preparations and
10derivatives, cocaine and all its salts, preparations and
11derivatives and substitutes.
12    (d) The provisions of this Section 36 and the treatment
13authorized herein apply to horses entered in and competing in
14race meetings as defined in Section 3.07 of this Act and to
15horses entered in and competing at any county fair.
16(Source: P.A. 79-1185.)
 
17    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)
18    Sec. 40. (a) The imposition of any fine or penalty provided
19in this Act shall not preclude the Board in its rules and
20regulations from imposing a fine or penalty for any other
21action which, in the Board's discretion, is a detriment or
22impediment to horse racing.
23    (b) The Director of Agriculture or his or her authorized
24representative shall impose the following monetary penalties
25and hold administrative hearings as required for failure to

 

 

10000HB2498ham001- 318 -LRB100 03891 MJP 22700 a

1submit the following applications, lists, or reports within the
2time period, date or manner required by statute or rule or for
3removing a foal from Illinois prior to inspection:
4        (1) late filing of a renewal application for offering
5    or standing stallion for service:
6            (A) if an application is submitted no more than 30
7        days late, $50;
8            (B) if an application is submitted no more than 45
9        days late, $150; or
10            (C) if an application is submitted more than 45
11        days late, if filing of the application is allowed
12        under an administrative hearing, $250;
13        (2) late filing of list or report of mares bred:
14            (A) if a list or report is submitted no more than
15        30 days late, $50;
16            (B) if a list or report is submitted no more than
17        60 days late, $150; or
18            (C) if a list or report is submitted more than 60
19        days late, if filing of the list or report is allowed
20        under an administrative hearing, $250;
21        (3) filing an Illinois foaled thoroughbred mare status
22    report after the statutory deadline as provided in
23    subsection (k) of Section 30 of this Act December 31:
24            (A) if a report is submitted no more than 30 days
25        late, $50;
26            (B) if a report is submitted no more than 90 days

 

 

10000HB2498ham001- 319 -LRB100 03891 MJP 22700 a

1        late, $150;
2            (C) if a report is submitted no more than 150 days
3        late, $250; or
4            (D) if a report is submitted more than 150 days
5        late, if filing of the report is allowed under an
6        administrative hearing, $500;
7        (4) late filing of application for foal eligibility
8    certificate:
9            (A) if an application is submitted no more than 30
10        days late, $50;
11            (B) if an application is submitted no more than 90
12        days late, $150;
13            (C) if an application is submitted no more than 150
14        days late, $250; or
15            (D) if an application is submitted more than 150
16        days late, if filing of the application is allowed
17        under an administrative hearing, $500;
18        (5) failure to report the intent to remove a foal from
19    Illinois prior to inspection, identification and
20    certification by a Department of Agriculture investigator,
21    $50; and
22        (6) if a list or report of mares bred is incomplete,
23    $50 per mare not included on the list or report.
24    Any person upon whom monetary penalties are imposed under
25this Section 3 times within a 5-year 5 year period shall have
26any further monetary penalties imposed at double the amounts

 

 

10000HB2498ham001- 320 -LRB100 03891 MJP 22700 a

1set forth above. All monies assessed and collected for
2violations relating to thoroughbreds shall be paid into the
3Illinois Thoroughbred Breeders Fund. All monies assessed and
4collected for violations relating to standardbreds shall be
5paid into the Illinois Standardbred Breeders Fund.
6(Source: P.A. 99-933, eff. 1-27-17.)
 
7    (230 ILCS 5/54.75)
8    Sec. 54.75. Horse Racing Equity Trust Fund.
9    (a) There is created a Fund to be known as the Horse Racing
10Equity Trust Fund, which is a non-appropriated trust fund held
11separate and apart from State moneys. The Fund shall consist of
12moneys paid into it by owners licensees under the Illinois
13Riverboat Gambling Act for the purposes described in this
14Section. The Fund shall be administered by the Board. Moneys in
15the Fund shall be distributed as directed and certified by the
16Board in accordance with the provisions of subsection (b).
17    (b) The moneys deposited into the Fund, plus any accrued
18interest on those moneys, shall be distributed within 10 days
19after those moneys are deposited into the Fund as follows:
20        (1) Sixty percent of all moneys distributed under this
21    subsection shall be distributed to organization licensees
22    to be distributed at their race meetings as purses.
23    Fifty-seven percent of the amount distributed under this
24    paragraph (1) shall be distributed for thoroughbred race
25    meetings and 43% shall be distributed for standardbred race

 

 

10000HB2498ham001- 321 -LRB100 03891 MJP 22700 a

1    meetings. Within each breed, moneys shall be allocated to
2    each organization licensee's purse fund in accordance with
3    the ratio between the purses generated for that breed by
4    that licensee during the prior calendar year and the total
5    purses generated throughout the State for that breed during
6    the prior calendar year by licensees in the current
7    calendar year.
8        (2) The remaining 40% of the moneys distributed under
9    this subsection (b) shall be distributed as follows:
10            (A) 11% shall be distributed to any person (or its
11        successors or assigns) who had operating control of a
12        racetrack that conducted live racing in 2002 at a
13        racetrack in a county with at least 230,000 inhabitants
14        that borders the Mississippi River and is a licensee in
15        the current year; and
16            (B) the remaining 89% shall be distributed pro rata
17        according to the aggregate proportion of total handle
18        from wagering on live races conducted in Illinois
19        (irrespective of where the wagers are placed) for
20        calendar years 2004 and 2005 to any person (or its
21        successors or assigns) who (i) had majority operating
22        control of a racing facility at which live racing was
23        conducted in calendar year 2002, (ii) is a licensee in
24        the current year, and (iii) is not eligible to receive
25        moneys under subparagraph (A) of this paragraph (2).
26            The moneys received by an organization licensee

 

 

10000HB2498ham001- 322 -LRB100 03891 MJP 22700 a

1        under this paragraph (2) shall be used by each
2        organization licensee to improve, maintain, market,
3        and otherwise operate its racing facilities to conduct
4        live racing, which shall include backstretch services
5        and capital improvements related to live racing and the
6        backstretch. Any organization licensees sharing common
7        ownership may pool the moneys received and spent at all
8        racing facilities commonly owned in order to meet these
9        requirements.
10        If any person identified in this paragraph (2) becomes
11    ineligible to receive moneys from the Fund, such amount
12    shall be redistributed among the remaining persons in
13    proportion to their percentages otherwise calculated.
14    (c) The Board shall monitor organization licensees to
15ensure that moneys paid to organization licensees under this
16Section are distributed by the organization licensees as
17provided in subsection (b).
18(Source: P.A. 95-1008, eff. 12-15-08.)
 
19    (230 ILCS 5/56 new)
20    Sec. 56. Electronic gaming.
21    (a) A person, firm, corporation, or limited liability
22company having operating control of a race track may apply to
23the Gaming Board for an electronic gaming license. An
24electronic gaming license shall authorize its holder to conduct
25electronic gaming on the grounds of the race track controlled

 

 

10000HB2498ham001- 323 -LRB100 03891 MJP 22700 a

1by the licensee's race track. Only one electronic gaming
2license may be awarded for any race track. A holder of an
3electronic gaming license shall be subject to the Illinois
4Gambling Act and rules of the Illinois Gaming Board concerning
5electronic gaming. If the person, firm, corporation, or limited
6liability company having operating control of a race track is
7found by the Illinois Gaming Board to be unsuitable for an
8electronic gaming license under the Illinois Gambling Act and
9rules of the Gaming Board, that person, firm, corporation, or
10limited liability company shall not be granted an electronic
11gaming license. Each license shall specify the number of gaming
12positions that its holder may operate.
13    An electronic gaming licensee may not permit persons under
1421 years of age to be present in its electronic gaming
15facility, but the licensee may accept wagers on live racing and
16inter-track wagers at its electronic gaming facility.
17    (b) For purposes of this subsection, "adjusted gross
18receipts" means an electronic gaming licensee's gross receipts
19less winnings paid to wagerers and shall also include any
20amounts that would otherwise be deducted pursuant to subsection
21(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
22gross receipts by an electronic gaming licensee from electronic
23gaming remaining after the payment of taxes under Section 13 of
24the Illinois Gambling Act shall be distributed as follows:
25        (1) Amounts shall be paid to the purse account at the
26    track at which the organization licensee is conducting

 

 

10000HB2498ham001- 324 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 325 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 326 -LRB100 03891 MJP 22700 a

1electronic gaming receipts shall be used to operate laundry
2facilities or a kitchen for backstretch workers at that race
3track, and an amount equal to 0.33 1/3% of the electronic
4gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
5non-profit organization that cares for injured and unwanted
6horses that race at that race track.
7    Annually, from the purse account of organization licensees
8conducting thoroughbred races at race tracks in Cook County,
9$100,000 shall be paid for division and equal distribution to
10the animal sciences department of each Illinois public
11university system engaged in equine research and education on
12or before the effective date of this amendatory Act of the
13100th General Assembly for equine research and education.
14    (d) Annually, from the purse account of an organization
15licensee racing standardbred horses, an amount equal to 15% of
16the electronic gaming receipts placed into that purse account
17shall be paid to the Illinois Colt Stakes Purse Distribution
18Fund. Moneys deposited into the Illinois Colt Stakes Purse
19Distribution Fund shall be used for standardbred racing as
20authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
21subsection (g) of Section 31 of this Act and for bonus awards
22as authorized under paragraph 6 of subsection (j) of Section 31
23of this Act.
 
24    Section 90-40. The Riverboat Gambling Act is amended by
25changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,

 

 

10000HB2498ham001- 327 -LRB100 03891 MJP 22700 a

111.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
2and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
37.12, and 7.13 as follows:
 
4    (230 ILCS 10/1)  (from Ch. 120, par. 2401)
5    Sec. 1. Short title. This Act shall be known and may be
6cited as the Illinois Riverboat Gambling Act.
7(Source: P.A. 86-1029.)
 
8    (230 ILCS 10/2)  (from Ch. 120, par. 2402)
9    Sec. 2. Legislative Intent.
10    (a) This Act is intended to benefit the people of the State
11of Illinois by assisting economic development, and promoting
12Illinois tourism, and by increasing the amount of revenues
13available to the State to assist and support education, and to
14defray State expenses, including unpaid bills.
15    (b) While authorization of riverboat and casino gambling
16will enhance investment, beautification, development and
17tourism in Illinois, it is recognized that it will do so
18successfully only if public confidence and trust in the
19credibility and integrity of the gambling operations and the
20regulatory process is maintained. Therefore, regulatory
21provisions of this Act are designed to strictly regulate the
22facilities, persons, associations and practices related to
23gambling operations pursuant to the police powers of the State,
24including comprehensive law enforcement supervision.

 

 

10000HB2498ham001- 328 -LRB100 03891 MJP 22700 a

1    (c) The Illinois Gaming Board established under this Act
2should, as soon as possible, inform each applicant for an
3owners license of the Board's intent to grant or deny a
4license.
5(Source: P.A. 93-28, eff. 6-20-03.)
 
6    (230 ILCS 10/3)  (from Ch. 120, par. 2403)
7    Sec. 3. Riverboat Gambling Authorized.
8    (a) Riverboat and casino gambling operations and
9electronic gaming operations and the system of wagering
10incorporated therein, as defined in this Act, are hereby
11authorized to the extent that they are carried out in
12accordance with the provisions of this Act.
13    (b) This Act does not apply to the pari-mutuel system of
14wagering used or intended to be used in connection with the
15horse-race meetings as authorized under the Illinois Horse
16Racing Act of 1975, lottery games authorized under the Illinois
17Lottery Law, bingo authorized under the Bingo License and Tax
18Act, charitable games authorized under the Charitable Games Act
19or pull tabs and jar games conducted under the Illinois Pull
20Tabs and Jar Games Act. This Act applies to electronic gaming
21authorized under the Illinois Horse Racing Act of 1975 to the
22extent provided in that Act and in this Act.
23    (c) Riverboat gambling conducted pursuant to this Act may
24be authorized upon any water within the State of Illinois or
25any water other than Lake Michigan which constitutes a boundary

 

 

10000HB2498ham001- 329 -LRB100 03891 MJP 22700 a

1of the State of Illinois. Notwithstanding any provision in this
2subsection (c) to the contrary, a licensee that receives its
3license pursuant to subsection (e-5) of Section 7 may conduct
4riverboat gambling on Lake Michigan from a home dock located on
5Lake Michigan subject to any limitations contained in Section
67. Notwithstanding any provision in this subsection (c) to the
7contrary, a licensee may conduct gambling at its home dock
8facility as provided in Sections 7 and 11. A licensee may
9conduct riverboat gambling authorized under this Act
10regardless of whether it conducts excursion cruises. A licensee
11may permit the continuous ingress and egress of passengers for
12the purpose of gambling.
13    (d) Gambling that is conducted in accordance with this Act
14using slot machines and video games of chance and other
15electronic gambling games as defined in both this Act and the
16Illinois Horse Racing Act of 1975 is authorized.
17(Source: P.A. 91-40, eff. 6-25-99.)
 
18    (230 ILCS 10/4)  (from Ch. 120, par. 2404)
19    Sec. 4. Definitions. As used in this Act:
20    (a) "Board" means the Illinois Gaming Board.
21    (b) "Occupational license" means a license issued by the
22Board to a person or entity to perform an occupation which the
23Board has identified as requiring a license to engage in
24riverboat gambling, casino gambling, or electronic gaming in
25Illinois.

 

 

10000HB2498ham001- 330 -LRB100 03891 MJP 22700 a

1    (c) "Gambling game" includes, but is not limited to,
2baccarat, twenty-one, poker, craps, slot machine, video game of
3chance, roulette wheel, klondike table, punchboard, faro
4layout, keno layout, numbers ticket, push card, jar ticket, or
5pull tab which is authorized by the Board as a wagering device
6under this Act.
7    (d) "Riverboat" means a self-propelled excursion boat, a
8permanently moored barge, or permanently moored barges that are
9permanently fixed together to operate as one vessel, on which
10lawful gambling is authorized and licensed as provided in this
11Act.
12    "Slot machine" means any mechanical, electrical, or other
13device, contrivance, or machine that is authorized by the Board
14as a wagering device under this Act which, upon insertion of a
15coin, currency, token, or similar object therein, or upon
16payment of any consideration whatsoever, is available to play
17or operate, the play or operation of which may deliver or
18entitle the person playing or operating the machine to receive
19cash, premiums, merchandise, tokens, or anything of value
20whatsoever, whether the payoff is made automatically from the
21machine or in any other manner whatsoever. A slot machine:
22        (1) may utilize spinning reels or video displays or
23    both;
24        (2) may or may not dispense coins, tickets, or tokens
25    to winning patrons;
26        (3) may use an electronic credit system for receiving

 

 

10000HB2498ham001- 331 -LRB100 03891 MJP 22700 a

1    wagers and making payouts; and
2        (4) may simulate a table game.
3    "Slot machine" does not include table games authorized by
4the Board as a wagering device under this Act.
5    (e) "Managers license" means a license issued by the Board
6to a person or entity to manage gambling operations conducted
7by the State pursuant to Section 7.3.
8    (f) "Dock" means the location where a riverboat moors for
9the purpose of embarking passengers for and disembarking
10passengers from the riverboat.
11    (g) "Gross receipts" means the total amount of money
12exchanged for the purchase of chips, tokens, or electronic
13cards by riverboat patrons.
14    (h) "Adjusted gross receipts" means the gross receipts less
15winnings paid to wagerers.
16    (i) "Cheat" means to alter the selection of criteria which
17determine the result of a gambling game or the amount or
18frequency of payment in a gambling game.
19    (j) (Blank).
20    (k) "Gambling operation" means the conduct of authorized
21gambling games authorized under this Act upon a riverboat or in
22a casino or authorized under this Act and the Illinois Horse
23Racing Act of 1975 at an electronic gaming facility.
24    (l) "License bid" means the lump sum amount of money that
25an applicant bids and agrees to pay the State in return for an
26owners license that is issued or re-issued on or after July 1,

 

 

10000HB2498ham001- 332 -LRB100 03891 MJP 22700 a

12003.
2    "Table game" means a live gaming apparatus upon which
3gaming is conducted or that determines an outcome that is the
4object of a wager, including, but not limited to, baccarat,
5twenty-one, blackjack, poker, craps, roulette wheel, klondike
6table, punchboard, faro layout, keno layout, numbers ticket,
7push card, jar ticket, pull tab, or other similar games that
8are authorized by the Board as a wagering device under this
9Act. "Table game" does not include slot machines or video games
10of chance.
11    (m) The terms "minority person", "female", and "person with
12a disability" shall have the same meaning as defined in Section
132 of the Business Enterprise for Minorities, Females, and
14Persons with Disabilities Act.
15    "Authority" means the Chicago Casino Development
16Authority.
17    "Casino" means a facility at which lawful gambling is
18authorized as provided in this Act.
19    "Owners license" means a license to conduct riverboat or
20casino gambling operations, but does not include an electronic
21gaming license.
22    "Licensed owner" means a person who holds an owners
23license.
24    "Electronic gaming" means slot machine gambling or
25gambling with table games positioned within an electronic
26gaming facility as defined in the Illinois Gambling Act, as

 

 

10000HB2498ham001- 333 -LRB100 03891 MJP 22700 a

1defined in this Act, or defined by the Board that is conducted
2at a race track pursuant to an electronic gaming license.
3    "Electronic gaming facility" means the area where the Board
4has authorized electronic gaming at a race track of an
5organization licensee under the Illinois Horse Racing Act of
61975 that holds an electronic gaming license.
7    "Electronic gaming license" means a license issued by the
8Board under Section 7.7 of this Act authorizing electronic
9gaming at an electronic gaming facility.
10    "Electronic gaming licensee" means an entity that holds an
11electronic gaming license.
12    "Organization licensee" means an entity authorized by the
13Illinois Racing Board to conduct pari-mutuel wagering in
14accordance with the Illinois Horse Racing Act of 1975. With
15respect only to electronic gaming, "organization licensee"
16includes the authorization for electronic gaming created under
17subsection (a) of Section 56 of the Illinois Horse Racing Act
18of 1975.
19    "Casino operator license" means the license held by the
20person or entity selected by the Authority to manage and
21operate a riverboat or casino within the geographic area of the
22authorized municipality pursuant to this Act and the Chicago
23Casino Development Authority Act.
24(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)
 
25    (230 ILCS 10/5)  (from Ch. 120, par. 2405)

 

 

10000HB2498ham001- 334 -LRB100 03891 MJP 22700 a

1    Sec. 5. Gaming Board.
2    (a) (1) There is hereby established the Illinois Gaming
3Board, which shall have the powers and duties specified in this
4Act and in the Chicago Casino Development Authority Act, and
5all other powers necessary and proper to fully and effectively
6execute this Act for the purpose of administering, regulating,
7and enforcing the system of riverboat and casino gambling and
8electronic gaming established by this Act and by the Chicago
9Casino Development Authority Act. Its jurisdiction shall
10extend under this Act and the Chicago Casino Development
11Authority Act to every person, association, corporation,
12partnership and trust involved in riverboat and casino gambling
13operations and electronic gaming in the State of Illinois.
14    (2) The Board shall consist of 5 members to be appointed by
15the Governor with the advice and consent of the Senate, one of
16whom shall be designated by the Governor to be chairperson
17chairman. Each member shall have a reasonable knowledge of the
18practice, procedure and principles of gambling operations.
19Each member shall either be a resident of Illinois or shall
20certify that he or she will become a resident of Illinois
21before taking office.
22    On and after the effective date of this amendatory Act of
23the 100th General Assembly, new appointees to the Board must
24include the following:
25        (A) One member who has received, at a minimum, a
26    bachelor's degree from an accredited school and at least 10

 

 

10000HB2498ham001- 335 -LRB100 03891 MJP 22700 a

1    years of verifiable training and experience in the fields
2    of investigation and law enforcement.
3        (B) One member who is a certified public accountant
4    with experience in auditing and with knowledge of complex
5    corporate structures and transactions.
6        (C) One member who has 5 years' experience as a
7    principal, senior officer, or director of a company or
8    business with either material responsibility for the daily
9    operations and management of the overall company or
10    business or material responsibility for the policy making
11    of the company or business.
12        (D) One member who is a lawyer licensed to practice law
13    in Illinois.
14    Notwithstanding any provision of this subsection (a), the
15requirements of subparagraphs (A) through (D) of this paragraph
16(2) shall not apply to any person reappointed pursuant to
17paragraph (3).
18    No more than 3 members of the Board may be from the same
19political party. The Board should reflect the ethnic, cultural,
20and geographic diversity of the State. No Board member shall,
21within a period of one year immediately preceding nomination,
22have been employed or received compensation or fees for
23services from a person or entity, or its parent or affiliate,
24that has engaged in business with the Board, a licensee, or a
25licensee under the Illinois Horse Racing Act of 1975. Board
26members must publicly disclose all prior affiliations with

 

 

10000HB2498ham001- 336 -LRB100 03891 MJP 22700 a

1gaming interests, including any compensation, fees, bonuses,
2salaries, and other reimbursement received from a person or
3entity, or its parent or affiliate, that has engaged in
4business with the Board, a licensee, or a licensee under the
5Illinois Horse Racing Act of 1975. This disclosure must be made
6within 30 days after nomination but prior to confirmation by
7the Senate and must be made available to the members of the
8Senate. At least one member shall be experienced in law
9enforcement and criminal investigation, at least one member
10shall be a certified public accountant experienced in
11accounting and auditing, and at least one member shall be a
12lawyer licensed to practice law in Illinois.
13    (3) The terms of office of the Board members shall be 3
14years, except that the terms of office of the initial Board
15members appointed pursuant to this Act will commence from the
16effective date of this Act and run as follows: one for a term
17ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
18a term ending July 1, 1993. Upon the expiration of the
19foregoing terms, the successors of such members shall serve a
20term for 3 years and until their successors are appointed and
21qualified for like terms. Vacancies in the Board shall be
22filled for the unexpired term in like manner as original
23appointments. Each member of the Board shall be eligible for
24reappointment at the discretion of the Governor with the advice
25and consent of the Senate.
26    (4) Each member of the Board shall receive $300 for each

 

 

10000HB2498ham001- 337 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 338 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 339 -LRB100 03891 MJP 22700 a

1for compliance with this Act, the Board may utilize the
2services of one or more independent outside testing
3laboratories that have been accredited by a national
4accreditation body and that, in the judgment of the Board, are
5qualified to perform such examinations.
6    (8) The Board shall employ such personnel as may be
7necessary to carry out its functions and shall determine the
8salaries of all personnel, except those personnel whose
9salaries are determined under the terms of a collective
10bargaining agreement. No person shall be employed to serve the
11Board who is, or whose spouse, parent or child is, an official
12of, or has a financial interest in or financial relation with,
13any operator engaged in gambling operations within this State
14or any organization engaged in conducting horse racing within
15this State. For the one year immediately preceding employment,
16an employee shall not have been employed or received
17compensation or fees for services from a person or entity, or
18its parent or affiliate, that has engaged in business with the
19Board, a licensee, or a licensee under the Illinois Horse
20Racing Act of 1975. Any employee violating these prohibitions
21shall be subject to termination of employment. In addition, all
22Board members and employees are subject to the restrictions set
23forth in Section 5-45 of the State Officials and Employees
24Ethics Act.
25    (9) An Administrator shall perform any and all duties that
26the Board shall assign him. The salary of the Administrator

 

 

10000HB2498ham001- 340 -LRB100 03891 MJP 22700 a

1shall be determined by the Board and, in addition, he shall be
2reimbursed for all actual and necessary expenses incurred by
3him in discharge of his official duties. The Administrator
4shall keep records of all proceedings of the Board and shall
5preserve all records, books, documents and other papers
6belonging to the Board or entrusted to its care. The
7Administrator shall devote his full time to the duties of the
8office and shall not hold any other office or employment.
9    (b) The Board shall have general responsibility for the
10implementation of this Act. Its duties include, without
11limitation, the following:
12        (1) To decide promptly and in reasonable order all
13    license applications. Any party aggrieved by an action of
14    the Board denying, suspending, revoking, restricting or
15    refusing to renew a license may request a hearing before
16    the Board. A request for a hearing must be made to the
17    Board in writing within 5 days after service of notice of
18    the action of the Board. Notice of the action of the Board
19    shall be served either by personal delivery or by certified
20    mail, postage prepaid, to the aggrieved party. Notice
21    served by certified mail shall be deemed complete on the
22    business day following the date of such mailing. The Board
23    shall conduct all requested hearings promptly and in
24    reasonable order;
25        (2) To conduct all hearings pertaining to civil
26    violations of this Act or rules and regulations promulgated

 

 

10000HB2498ham001- 341 -LRB100 03891 MJP 22700 a

1    hereunder;
2        (3) To promulgate such rules and regulations as in its
3    judgment may be necessary to protect or enhance the
4    credibility and integrity of gambling operations
5    authorized by this Act and the regulatory process
6    hereunder;
7        (4) To provide for the establishment and collection of
8    all license and registration fees and taxes imposed by this
9    Act and the rules and regulations issued pursuant hereto.
10    All such fees and taxes shall be deposited into the State
11    Gaming Fund;
12        (5) To provide for the levy and collection of penalties
13    and fines for the violation of provisions of this Act and
14    the rules and regulations promulgated hereunder. All such
15    fines and penalties shall be deposited into the Education
16    Assistance Fund, created by Public Act 86-0018, of the
17    State of Illinois;
18        (6) To be present through its inspectors and agents any
19    time gambling operations are conducted on any riverboat, in
20    any casino, or at any electronic gaming facility for the
21    purpose of certifying the revenue thereof, receiving
22    complaints from the public, and conducting such other
23    investigations into the conduct of the gambling games and
24    the maintenance of the equipment as from time to time the
25    Board may deem necessary and proper;
26        (7) To review and rule upon any complaint by a licensee

 

 

10000HB2498ham001- 342 -LRB100 03891 MJP 22700 a

1    regarding any investigative procedures of the State which
2    are unnecessarily disruptive of gambling operations. The
3    need to inspect and investigate shall be presumed at all
4    times. The disruption of a licensee's operations shall be
5    proved by clear and convincing evidence, and establish
6    that: (A) the procedures had no reasonable law enforcement
7    purposes, and (B) the procedures were so disruptive as to
8    unreasonably inhibit gambling operations;
9        (8) To hold at least one meeting each quarter of the
10    fiscal year. In addition, special meetings may be called by
11    the Chairman or any 2 Board members upon 72 hours written
12    notice to each member. All Board meetings shall be subject
13    to the Open Meetings Act. Three members of the Board shall
14    constitute a quorum, and 3 votes shall be required for any
15    final determination by the Board. The Board shall keep a
16    complete and accurate record of all its meetings. A
17    majority of the members of the Board shall constitute a
18    quorum for the transaction of any business, for the
19    performance of any duty, or for the exercise of any power
20    which this Act requires the Board members to transact,
21    perform or exercise en banc, except that, upon order of the
22    Board, one of the Board members or an administrative law
23    judge designated by the Board may conduct any hearing
24    provided for under this Act or by Board rule and may
25    recommend findings and decisions to the Board. The Board
26    member or administrative law judge conducting such hearing

 

 

10000HB2498ham001- 343 -LRB100 03891 MJP 22700 a

1    shall have all powers and rights granted to the Board in
2    this Act. The record made at the time of the hearing shall
3    be reviewed by the Board, or a majority thereof, and the
4    findings and decision of the majority of the Board shall
5    constitute the order of the Board in such case;
6        (9) To maintain records which are separate and distinct
7    from the records of any other State board or commission.
8    Such records shall be available for public inspection and
9    shall accurately reflect all Board proceedings;
10        (10) To file a written annual report with the Governor
11    on or before March 1 each year and such additional reports
12    as the Governor may request. The annual report shall
13    include a statement of receipts and disbursements by the
14    Board, actions taken by the Board, and any additional
15    information and recommendations which the Board may deem
16    valuable or which the Governor may request;
17        (11) (Blank);
18        (12) (Blank);
19        (13) To assume responsibility for administration and
20    enforcement of the Video Gaming Act; and
21        (13.1) To assume responsibility for the administration
22    and enforcement of operations at electronic gaming
23    facilities pursuant to this Act and the Illinois Horse
24    Racing Act of 1975;
25        (13.2) To assume responsibility for the administration
26    and enforcement of gambling operations at the Chicago

 

 

10000HB2498ham001- 344 -LRB100 03891 MJP 22700 a

1    Casino Development Authority's casino pursuant to this Act
2    and the Chicago Casino Development Authority Act; and
3        (14) To adopt, by rule, a code of conduct governing
4    Board members and employees that ensure, to the maximum
5    extent possible, that persons subject to this Code avoid
6    situations, relationships, or associations that may
7    represent or lead to a conflict of interest.
8    Internal controls and changes submitted by licensees must
9be reviewed and either approved or denied with cause within 90
10days after receipt of submission is deemed final by the
11Illinois Gaming Board. In the event an internal control
12submission or change does not meet the standards set by the
13Board, staff of the Board must provide technical assistance to
14the licensee to rectify such deficiencies within 90 days after
15the initial submission and the revised submission must be
16reviewed and approved or denied with cause within 90 days after
17the date the revised submission is deemed final by the Board.
18For the purposes of this paragraph, "with cause" means that the
19approval of the submission would jeopardize the integrity of
20gaming. In the event the Board staff has not acted within the
21timeframe, the submission shall be deemed approved.
22    (c) The Board shall have jurisdiction over and shall
23supervise all gambling operations governed by this Act and the
24Chicago Casino Development Authority Act. The Board shall have
25all powers necessary and proper to fully and effectively
26execute the provisions of this Act and the Chicago Casino

 

 

10000HB2498ham001- 345 -LRB100 03891 MJP 22700 a

1Development Authority Act, including, but not limited to, the
2following:
3        (1) To investigate applicants and determine the
4    eligibility of applicants for licenses and to select among
5    competing applicants the applicants which best serve the
6    interests of the citizens of Illinois.
7        (2) To have jurisdiction and supervision over all
8    riverboat gambling operations authorized under this Act
9    and the Chicago Casino Development Authority Act in this
10    State and all persons in places on riverboats where
11    gambling operations are conducted.
12        (3) To promulgate rules and regulations for the purpose
13    of administering the provisions of this Act and the Chicago
14    Casino Development Authority Act and to prescribe rules,
15    regulations and conditions under which all riverboat
16    gambling operations subject to this Act and the Chicago
17    Casino Development Authority Act in the State shall be
18    conducted. Such rules and regulations are to provide for
19    the prevention of practices detrimental to the public
20    interest and for the best interests of riverboat gambling,
21    including rules and regulations regarding the inspection
22    of electronic gaming facilities, casinos, and such
23    riverboats, and the review of any permits or licenses
24    necessary to operate a riverboat, casino, or electronic
25    gaming facilities under any laws or regulations applicable
26    to riverboats, casinos, or electronic gaming facilities

 

 

10000HB2498ham001- 346 -LRB100 03891 MJP 22700 a

1    and to impose penalties for violations thereof.
2        (4) To enter the office, riverboats, casinos,
3    electronic gaming facilities, and other facilities, or
4    other places of business of a licensee, where evidence of
5    the compliance or noncompliance with the provisions of this
6    Act and the Chicago Casino Development Authority Act is
7    likely to be found.
8        (5) To investigate alleged violations of this Act, the
9    Chicago Casino Development Authority Act, or the rules of
10    the Board and to take appropriate disciplinary action
11    against a licensee or a holder of an occupational license
12    for a violation, or institute appropriate legal action for
13    enforcement, or both.
14        (6) To adopt standards for the licensing of all persons
15    and entities under this Act and the Chicago Casino
16    Development Authority Act, as well as for electronic or
17    mechanical gambling games, and to establish fees for such
18    licenses.
19        (7) To adopt appropriate standards for all electronic
20    gaming facilities, riverboats, casinos, and other
21    facilities authorized under this Act and the Chicago Casino
22    Development Authority Act.
23        (8) To require that the records, including financial or
24    other statements of any licensee under this Act and the
25    Chicago Casino Development Authority Act, shall be kept in
26    such manner as prescribed by the Board and that any such

 

 

10000HB2498ham001- 347 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 348 -LRB100 03891 MJP 22700 a

1    procedures, and to review applications for the renewal of
2    licenses. The Board may suspend an owners license (other
3    than the license issued to the Chicago Casino Development
4    Authority), electronic gaming license, or casino operator
5    license, without notice or hearing upon a determination
6    that the safety or health of patrons or employees is
7    jeopardized by continuing a gambling operation conducted
8    under that license riverboat's operation. The suspension
9    may remain in effect until the Board determines that the
10    cause for suspension has been abated. The Board may revoke
11    an the owners license (other than the license issued to the
12    Chicago Casino Development Authority), electronic gaming
13    license, or casino operator license upon a determination
14    that the licensee owner has not made satisfactory progress
15    toward abating the hazard.
16        (12) To eject or exclude or authorize the ejection or
17    exclusion of, any person from riverboat gambling
18    facilities where that such person is in violation of this
19    Act or the Chicago Casino Development Authority Act, rules
20    and regulations thereunder, or final orders of the Board,
21    or where such person's conduct or reputation is such that
22    his or her presence within the riverboat gambling
23    facilities may, in the opinion of the Board, call into
24    question the honesty and integrity of the gambling
25    operations or interfere with the orderly conduct thereof;
26    provided that the propriety of such ejection or exclusion

 

 

10000HB2498ham001- 349 -LRB100 03891 MJP 22700 a

1    is subject to subsequent hearing by the Board.
2        (13) To require all licensees of gambling operations to
3    utilize a cashless wagering system whereby all players'
4    money is converted to tokens, electronic cards, or chips
5    which shall be used only for wagering in the gambling
6    establishment.
7        (14) (Blank).
8        (15) To suspend, revoke or restrict licenses, other
9    than the license issued to the Chicago Casino Development
10    Authority, to require the removal of a licensee or an
11    employee of a licensee for a violation of this Act, the
12    Chicago Casino Development Authority Act, or a Board rule
13    or for engaging in a fraudulent practice, and to impose
14    civil penalties of up to $5,000 against individuals and up
15    to $10,000 or an amount equal to the daily gross receipts,
16    whichever is larger, against licensees for each violation
17    of any provision of the Act, the Chicago Casino Development
18    Authority Act, any rules adopted by the Board, any order of
19    the Board or any other action which, in the Board's
20    discretion, is a detriment or impediment to riverboat
21    gambling operations.
22        (16) To hire employees to gather information, conduct
23    investigations and carry out any other tasks contemplated
24    under this Act or the Chicago Casino Development Authority
25    Act.
26        (17) To establish minimum levels of insurance to be

 

 

10000HB2498ham001- 350 -LRB100 03891 MJP 22700 a

1    maintained by licensees.
2        (18) To authorize a licensee to sell or serve alcoholic
3    liquors, wine or beer as defined in the Liquor Control Act
4    of 1934 on board a riverboat or in a casino and to have
5    exclusive authority to establish the hours for sale and
6    consumption of alcoholic liquor on board a riverboat or in
7    a casino, notwithstanding any provision of the Liquor
8    Control Act of 1934 or any local ordinance, and regardless
9    of whether the riverboat makes excursions. The
10    establishment of the hours for sale and consumption of
11    alcoholic liquor on board a riverboat or in a casino is an
12    exclusive power and function of the State. A home rule unit
13    may not establish the hours for sale and consumption of
14    alcoholic liquor on board a riverboat or in a casino. This
15    subdivision (18) amendatory Act of 1991 is a denial and
16    limitation of home rule powers and functions under
17    subsection (h) of Section 6 of Article VII of the Illinois
18    Constitution.
19        (19) After consultation with the U.S. Army Corps of
20    Engineers, to establish binding emergency orders upon the
21    concurrence of a majority of the members of the Board
22    regarding the navigability of water, relative to
23    excursions, in the event of extreme weather conditions,
24    acts of God or other extreme circumstances.
25        (20) To delegate the execution of any of its powers
26    under this Act or the Chicago Casino Development Authority

 

 

10000HB2498ham001- 351 -LRB100 03891 MJP 22700 a

1    Act for the purpose of administering and enforcing this
2    Act, the Chicago Casino Development Authority Act, and the
3    its rules adopted by the Board under both Acts and
4    regulations hereunder.
5        (20.5) To approve any contract entered into on its
6    behalf.
7        (20.6) To appoint investigators to conduct
8    investigations, searches, seizures, arrests, and other
9    duties imposed under this Act, as deemed necessary by the
10    Board. These investigators have and may exercise all of the
11    rights and powers of peace officers, provided that these
12    powers shall be limited to offenses or violations occurring
13    or committed in a casino, in an electronic gaming facility,
14    or on a riverboat or dock, as defined in subsections (d)
15    and (f) of Section 4, or as otherwise provided by this Act,
16    the Chicago Casino Development Authority Act, or any other
17    law.
18        (20.7) To contract with the Department of State Police
19    for the use of trained and qualified State police officers
20    and with the Department of Revenue for the use of trained
21    and qualified Department of Revenue investigators to
22    conduct investigations, searches, seizures, arrests, and
23    other duties imposed under this Act or the Chicago Casino
24    Development Authority Act and to exercise all of the rights
25    and powers of peace officers, provided that the powers of
26    Department of Revenue investigators under this subdivision

 

 

10000HB2498ham001- 352 -LRB100 03891 MJP 22700 a

1    (20.7) 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    or any other law. In the event the Department of State
6    Police or the Department of Revenue is unable to fill
7    contracted police or investigative positions, the Board
8    may appoint investigators to fill those positions pursuant
9    to subdivision (20.6).
10        (21) To adopt rules concerning the conduct of
11    electronic gaming.
12        (22) To have the same jurisdiction and supervision over
13    casinos and electronic gaming facilities as the Board has
14    over riverboats, including, but not limited to, the power
15    to (i) investigate, review, and approve contracts as that
16    power is applied to riverboats, (ii) adopt rules for
17    administering the provisions of this Act or the Chicago
18    Casino Development Authority Act, (iii) adopt standards
19    for the licensing of all persons involved with a casino or
20    electronic gaming facility, (iv) investigate alleged
21    violations of this Act by any person involved with a casino
22    or electronic gaming facility, and (v) require that
23    records, including financial or other statements of any
24    casino or electronic gaming facility, shall be kept in such
25    manner as prescribed by the Board.
26        (23) To supervise and regulate the Chicago Casino

 

 

10000HB2498ham001- 353 -LRB100 03891 MJP 22700 a

1    Development Authority in accordance with the Chicago
2    Casino Development Authority Act and the provisions of this
3    Act.
4        (24) (21) To take any other action as may be reasonable
5    or appropriate to enforce this Act, the Chicago Casino
6    Development Authority Act, and the rules adopted by the
7    Board under both Acts and regulations hereunder.
8    All Board powers enumerated in this Section in relation to
9licensees shall apply equally to the holder of any casino
10management contract entered into pursuant to the Chicago Casino
11Development Authority Act.
12    (d) The Board may seek and shall receive the cooperation of
13the Department of State Police in conducting background
14investigations of applicants and in fulfilling its
15responsibilities under this Section. Costs incurred by the
16Department of State Police as a result of such cooperation
17shall be paid by the Board in conformance with the requirements
18of Section 2605-400 of the Department of State Police Law (20
19ILCS 2605/2605-400).
20    (e) The Board must authorize to each investigator and to
21any other employee of the Board exercising the powers of a
22peace officer a distinct badge that, on its face, (i) clearly
23states that the badge is authorized by the Board and (ii)
24contains a unique identifying number. No other badge shall be
25authorized by the Board.
26(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
 

 

 

10000HB2498ham001- 354 -LRB100 03891 MJP 22700 a

1    (230 ILCS 10/5.1)  (from Ch. 120, par. 2405.1)
2    Sec. 5.1. Disclosure of records.
3    (a) Notwithstanding any applicable statutory provision to
4the contrary, the Board shall, on written request from any
5person, provide information furnished by an applicant or
6licensee concerning the applicant or licensee, his products,
7services or gambling enterprises and his business holdings, as
8follows:
9        (1) The name, business address and business telephone
10    number of any applicant or licensee.
11        (2) An identification of any applicant or licensee
12    including, if an applicant or licensee is not an
13    individual, the names and addresses of all stockholders and
14    directors, if the entity is a corporation; the names and
15    addresses of all members, if the entity is a limited
16    liability company; the names and addresses of all partners,
17    both general and limited, if the entity is a partnership;
18    and the names and addresses of all beneficiaries, if the
19    entity is a trust the state of incorporation or
20    registration, the corporate officers, and the identity of
21    all shareholders or participants. If an applicant or
22    licensee has a pending registration statement filed with
23    the Securities and Exchange Commission, only the names of
24    those persons or entities holding interest of 5% or more
25    must be provided.

 

 

10000HB2498ham001- 355 -LRB100 03891 MJP 22700 a

1        (3) An identification of any business, including, if
2    applicable, the state of incorporation or registration, in
3    which an applicant or licensee or an applicant's or
4    licensee's spouse or children has an equity interest of
5    more than 1%. If an applicant or licensee is a corporation,
6    partnership or other business entity, the applicant or
7    licensee shall identify any other corporation, partnership
8    or business entity in which it has an equity interest of 1%
9    or more, including, if applicable, the state of
10    incorporation or registration. This information need not
11    be provided by a corporation, partnership or other business
12    entity that has a pending registration statement filed with
13    the Securities and Exchange Commission.
14        (4) Whether an applicant or licensee has been indicted,
15    convicted, pleaded guilty or nolo contendere, or forfeited
16    bail concerning any criminal offense under the laws of any
17    jurisdiction, either felony or misdemeanor (except for
18    traffic violations), including the date, the name and
19    location of the court, arresting agency and prosecuting
20    agency, the case number, the offense, the disposition and
21    the location and length of incarceration.
22        (5) Whether an applicant or licensee has had any
23    license or certificate issued by a licensing authority in
24    Illinois or any other jurisdiction denied, restricted,
25    suspended, revoked or not renewed and a statement
26    describing the facts and circumstances concerning the

 

 

10000HB2498ham001- 356 -LRB100 03891 MJP 22700 a

1    denial, restriction, suspension, revocation or
2    non-renewal, including the licensing authority, the date
3    each such action was taken, and the reason for each such
4    action.
5        (6) Whether an applicant or licensee has ever filed or
6    had filed against it a proceeding in bankruptcy or has ever
7    been involved in any formal process to adjust, defer,
8    suspend or otherwise work out the payment of any debt
9    including the date of filing, the name and location of the
10    court, the case and number of the disposition.
11        (7) Whether an applicant or licensee has filed, or been
12    served with a complaint or other notice filed with any
13    public body, regarding the delinquency in the payment of,
14    or a dispute over the filings concerning the payment of,
15    any tax required under federal, State or local law,
16    including the amount, type of tax, the taxing agency and
17    time periods involved.
18        (8) A statement listing the names and titles of all
19    public officials or officers of any unit of government, and
20    relatives of said public officials or officers who,
21    directly or indirectly, own any financial interest in, have
22    any beneficial interest in, are the creditors of or hold
23    any debt instrument issued by, or hold or have any interest
24    in any contractual or service relationship with, an
25    applicant or licensee.
26        (9) Whether an applicant or licensee has made, directly

 

 

10000HB2498ham001- 357 -LRB100 03891 MJP 22700 a

1    or indirectly, any political contribution, or any loans,
2    donations or other payments, to any candidate or office
3    holder, within 5 years from the date of filing the
4    application, including the amount and the method of
5    payment.
6        (10) The name and business telephone number of the
7    counsel representing an applicant or licensee in matters
8    before the Board.
9        (11) A description of any proposed or approved
10    riverboat or casino gaming or electronic gaming operation,
11    including the type of boat, home dock or casino or
12    electronic gaming location, expected economic benefit to
13    the community, anticipated or actual number of employees,
14    any statement from an applicant or licensee regarding
15    compliance with federal and State affirmative action
16    guidelines, projected or actual admissions and projected
17    or actual adjusted gross gaming receipts.
18        (12) A description of the product or service to be
19    supplied by an applicant for a supplier's license.
20    (b) Notwithstanding any applicable statutory provision to
21the contrary, the Board shall, on written request from any
22person, also provide the following information:
23        (1) The amount of the wagering tax and admission tax
24    paid daily to the State of Illinois by the holder of an
25    owner's license.
26        (2) Whenever the Board finds an applicant for an

 

 

10000HB2498ham001- 358 -LRB100 03891 MJP 22700 a

1    owner's license unsuitable for licensing, a copy of the
2    written letter outlining the reasons for the denial.
3        (3) Whenever the Board has refused to grant leave for
4    an applicant to withdraw his application, a copy of the
5    letter outlining the reasons for the refusal.
6    (c) Subject to the above provisions, the Board shall not
7disclose any information which would be barred by:
8        (1) Section 7 of the Freedom of Information Act; or
9        (2) The statutes, rules, regulations or
10    intergovernmental agreements of any jurisdiction.
11    (d) The Board may assess fees for the copying of
12information in accordance with Section 6 of the Freedom of
13Information Act.
14(Source: P.A. 96-1392, eff. 1-1-11.)
 
15    (230 ILCS 10/5.3 new)
16    Sec. 5.3. Ethical conduct.
17    (a) Officials and employees of the corporate authority of a
18host community must carry out their duties and responsibilities
19in such a manner as to promote and preserve public trust and
20confidence in the integrity and conduct of gaming.
21    (b) Officials and employees of the corporate authority of a
22host community shall not use or attempt to use his or her
23official position to secure or attempt to secure any privilege,
24advantage, favor, or influence for himself or herself or
25others.

 

 

10000HB2498ham001- 359 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 360 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 361 -LRB100 03891 MJP 22700 a

1thing of value, with the exception of unsolicited items of an
2incidental nature, from any person, corporation, or entity
3doing business with the riverboat or casino that is located in
4the host community.
5    (h) A spouse, child, or parent of an official or employee
6of the corporate authority of a host community may not, during
7the period that the person is an official of the corporate
8authority or for a period of 2 years immediately after leaving
9such office or employment, knowingly accept employment or
10receive compensation or fees for services from a person or
11entity, or its parent or affiliate, that has engaged in
12business with the riverboat or casino that is located in the
13host community that resulted in contracts with an aggregate
14value of at least $25,000 or if that official or employee has
15made a decision that directly applied to the person or entity,
16or its parent or affiliate.
17    (i) Officials and employees of the corporate authority of a
18host community shall not attempt, in any way, to influence any
19person or entity doing business with the riverboat or casino
20that is located in the host community or any officer, agent, or
21employee thereof to hire or contract with any person or entity
22for any compensated work.
23    (j) Any communication between an official of the corporate
24authority of a host community and any applicant for an owners
25license in the host community, or an officer, director, or
26employee of a riverboat or casino in the host community,

 

 

10000HB2498ham001- 362 -LRB100 03891 MJP 22700 a

1concerning any matter relating in any way to gaming shall be
2disclosed to the Board. Such disclosure shall be in writing by
3the official within 30 days after the communication and shall
4be filed with the Board. Disclosure must consist of the date of
5the communication, the identity and job title of the person
6with whom the communication was made, a brief summary of the
7communication, the action requested or recommended, all
8responses made, the identity and job title of the person making
9the response, and any other pertinent information. Public
10disclosure of the written summary provided to the Board and the
11Gaming Board shall be subject to the exemptions provided under
12the Freedom of Information Act.
13    This subsection (j) shall not apply to communications
14regarding traffic, law enforcement, security, environmental
15issues, city services, transportation, or other routine
16matters concerning the ordinary operations of the riverboat or
17casino. For purposes of this subsection (j), "ordinary
18operations" means operations relating to the casino or
19riverboat facility other than the conduct of gambling
20activities, and "routine matters" includes the application
21for, issuance of, renewal of, and other processes associated
22with municipal permits and licenses.
23    (k) Any official or employee who violates any provision of
24this Section is guilty of a Class 4 felony.
25    (l) For purposes of this Section, "host community" or "host
26municipality" means a unit of local government that contains a

 

 

10000HB2498ham001- 363 -LRB100 03891 MJP 22700 a

1riverboat or casino within its borders, but does not include
2the City of Chicago or the Chicago Casino Development
3Authority.
 
4    (230 ILCS 10/6)  (from Ch. 120, par. 2406)
5    Sec. 6. Application for Owners License.
6    (a) A qualified person may apply to the Board for an owners
7license to conduct a riverboat gambling operation as provided
8in this Act. The application shall be made on forms provided by
9the Board and shall contain such information as the Board
10prescribes, including but not limited to the identity of the
11riverboat on which such gambling operation is to be conducted,
12if applicable, and the exact location where such riverboat or
13casino will be located docked, a certification that the
14riverboat will be registered under this Act at all times during
15which gambling operations are conducted on board, detailed
16information regarding the ownership and management of the
17applicant, and detailed personal information regarding the
18applicant. Any application for an owners license to be
19re-issued on or after June 1, 2003 shall also include the
20applicant's license bid in a form prescribed by the Board.
21Information provided on the application shall be used as a
22basis for a thorough background investigation which the Board
23shall conduct with respect to each applicant. An incomplete
24application shall be cause for denial of a license by the
25Board.

 

 

10000HB2498ham001- 364 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 365 -LRB100 03891 MJP 22700 a

1    increased demand for public health care, child care, public
2    transportation, affordable housing, and social services,
3    and a plan to mitigate those adverse effects.
4        (6) The record, if any, of the applicant and its
5    developer regarding compliance with:
6            (A) federal, state, and local discrimination, wage
7        and hour, disability, and occupational and
8        environmental health and safety laws; and
9            (B) state and local labor relations and employment
10        laws.
11        (7) The applicant's record, if any, in dealing with its
12    employees and their representatives at other locations.
13        (8) A plan concerning the utilization of
14    minority-owned and female-owned businesses and concerning
15    the hiring of minorities and females.
16        (9) Evidence the applicant used its best efforts to
17    reach a goal of 25% ownership representation by minority
18    persons and 5% ownership representation by females.
19    (b) Applicants shall submit with their application all
20documents, resolutions, and letters of support from the
21governing body that represents the municipality or county
22wherein the licensee will be located dock.
23    (c) Each applicant shall disclose the identity of every
24person or entity , association, trust or corporation having a
25greater than 1% direct or indirect pecuniary interest in the
26riverboat gambling operation with respect to which the license

 

 

10000HB2498ham001- 366 -LRB100 03891 MJP 22700 a

1is sought. If the disclosed entity is a trust, the application
2shall disclose the names and addresses of all the
3beneficiaries; if a corporation, the names and addresses of all
4stockholders and directors; if a partnership, the names and
5addresses of all partners, both general and limited.
6    (d) An application shall be filed and considered in
7accordance with the rules of the Board. Each application shall
8be accompanied by a non-refundable An application fee of
9$100,000. In addition, a non-refundable fee of $50,000 shall be
10paid at the time of filing to defray the costs associated with
11the background investigation conducted by the Board. If the
12costs of the investigation exceed $50,000, the applicant shall
13pay the additional amount to the Board within 7 days after
14requested by the Board. If the costs of the investigation are
15less than $50,000, the applicant shall receive a refund of the
16remaining amount. All information, records, interviews,
17reports, statements, memoranda or other data supplied to or
18used by the Board in the course of its review or investigation
19of an application for a license or a renewal under this Act
20shall be privileged, strictly confidential and shall be used
21only for the purpose of evaluating an applicant for a license
22or a renewal. Such information, records, interviews, reports,
23statements, memoranda or other data shall not be admissible as
24evidence, nor discoverable in any action of any kind in any
25court or before any tribunal, board, agency or person, except
26for any action deemed necessary by the Board. The application

 

 

10000HB2498ham001- 367 -LRB100 03891 MJP 22700 a

1fee shall be deposited into the Gaming Facilities Fee Revenue
2Fund.
3    (e) The Board shall charge each applicant a fee set by the
4Department of State Police to defray the costs associated with
5the search and classification of fingerprints obtained by the
6Board with respect to the applicant's application. These fees
7shall be paid into the State Police Services Fund.
8    (f) The licensed owner shall be the person primarily
9responsible for the boat or casino itself. Only one riverboat
10gambling operation may be authorized by the Board on any
11riverboat or in any casino. The applicant must identify the
12each riverboat or premises it intends to use and certify that
13the riverboat or premises: (1) has the authorized capacity
14required in this Act; (2) is accessible to persons with
15disabilities; and (3) is fully registered and licensed in
16accordance with any applicable laws.
17    (g) A person who knowingly makes a false statement on an
18application is guilty of a Class A misdemeanor.
19(Source: P.A. 99-143, eff. 7-27-15.)
 
20    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
21    Sec. 7. Owners Licenses.
22    (a) The Board shall issue owners licenses to persons or
23entities , firms or corporations which apply for such licenses
24upon payment to the Board of the non-refundable license fee as
25provided in subsection (e) or (e-5) set by the Board, upon

 

 

10000HB2498ham001- 368 -LRB100 03891 MJP 22700 a

1payment of a $25,000 license fee for the first year of
2operation and a $5,000 license fee for each succeeding year and
3upon a determination by the Board that the applicant is
4eligible for an owners license pursuant to this Act, the
5Chicago Casino Development Authority Act, and the rules of the
6Board. From the effective date of this amendatory Act of the
795th General Assembly until (i) 3 years after the effective
8date of this amendatory Act of the 95th General Assembly, (ii)
9the date any organization licensee begins to operate a slot
10machine or video game of chance under the Illinois Horse Racing
11Act of 1975 or this Act, (iii) the date that payments begin
12under subsection (c-5) of Section 13 of the Act, or (iv) the
13wagering tax imposed under Section 13 of this Act is increased
14by law to reflect a tax rate that is at least as stringent or
15more stringent than the tax rate contained in subsection (a-3)
16of Section 13, or (v) when an owners licensee holding a license
17issued pursuant to Section 7.1 of this Act begins conducting
18gaming, whichever occurs first, as a condition of licensure and
19as an alternative source of payment for those funds payable
20under subsection (c-5) of Section 13 of this the Riverboat
21Gambling Act, any owners licensee that holds or receives its
22owners license on or after the effective date of this
23amendatory Act of the 94th General Assembly, other than an
24owners licensee operating a riverboat with adjusted gross
25receipts in calendar year 2004 of less than $200,000,000, must
26pay into the Horse Racing Equity Trust Fund, in addition to any

 

 

10000HB2498ham001- 369 -LRB100 03891 MJP 22700 a

1other payments required under this Act, an amount equal to 3%
2of the adjusted gross receipts received by the owners licensee.
3The payments required under this Section shall be made by the
4owners licensee to the State Treasurer no later than 3:00
5o'clock p.m. of the day after the day when the adjusted gross
6receipts were received by the owners licensee. A person, firm
7or entity corporation is ineligible to receive an owners
8license if:
9        (1) the person has been convicted of a felony under the
10    laws of this State, any other state, or the United States;
11        (2) the person has been convicted of any violation of
12    Article 28 of the Criminal Code of 1961 or the Criminal
13    Code of 2012, or substantially similar laws of any other
14    jurisdiction;
15        (3) the person has submitted an application for a
16    license under this Act or the Chicago Casino Development
17    Authority Act which contains false information;
18        (4) the person is a member of the Board;
19        (5) a person defined in (1), (2), (3) or (4) is an
20    officer, director or managerial employee of the entity firm
21    or corporation;
22        (6) the entity firm or corporation employs a person
23    defined in (1), (2), (3) or (4) who participates in the
24    management or operation of gambling operations authorized
25    under this Act or the Chicago Casino Development Authority
26    Act;

 

 

10000HB2498ham001- 370 -LRB100 03891 MJP 22700 a

1        (7) (blank); or
2        (8) a license of the person or entity , firm or
3    corporation issued under this Act or the Chicago Casino
4    Development Authority Act, or a license to own or operate
5    gambling facilities in any other jurisdiction, has been
6    revoked.
7    The Board is expressly prohibited from making changes to
8the requirement that licensees make payment into the Horse
9Racing Equity Trust Fund without the express authority of the
10Illinois General Assembly and making any other rule to
11implement or interpret this amendatory Act of the 95th General
12Assembly. For the purposes of this paragraph, "rules" is given
13the meaning given to that term in Section 1-70 of the Illinois
14Administrative Procedure Act.
15    (a-1) Upon approval of the members of the Chicago Casino
16Development Board, the Chicago Casino Development Authority's
17executive director, and the Chicago casino operator licensee,
18the Board shall issue an owners license to the Chicago Casino
19Development Authority that authorizes the conduct of gambling
20operations in a casino located in the City of Chicago.
21    (b) In determining whether to grant an owners license to an
22applicant other than the Chicago Casino Development Authority,
23the Board shall consider:
24        (1) the character, reputation, experience and
25    financial integrity of the applicants and of any other or
26    separate person that either:

 

 

10000HB2498ham001- 371 -LRB100 03891 MJP 22700 a

1            (A) controls, directly or indirectly, such
2        applicant, or
3            (B) is controlled, directly or indirectly, by such
4        applicant or by a person which controls, directly or
5        indirectly, such applicant;
6        (2) the facilities or proposed facilities for the
7    conduct of riverboat gambling;
8        (3) the highest prospective total revenue to be derived
9    by the State from the conduct of riverboat gambling;
10        (4) the extent to which the ownership of the applicant
11    reflects the diversity of the State by including minority
12    persons, females, and persons with a disability and the
13    good faith affirmative action plan of each applicant to
14    recruit, train and upgrade minority persons, females, and
15    persons with a disability in all employment
16    classifications;
17        (5) the financial ability of the applicant to purchase
18    and maintain adequate liability and casualty insurance;
19        (6) whether the applicant has adequate capitalization
20    to provide and maintain, for the duration of a license, a
21    riverboat or casino;
22        (7) the extent to which the applicant exceeds or meets
23    other standards for the issuance of an owners license which
24    the Board may adopt by rule; and
25        (8) the The amount of the applicant's license bid; .
26        (9) the extent to which the applicant or the proposed

 

 

10000HB2498ham001- 372 -LRB100 03891 MJP 22700 a

1    host municipality plans to enter into revenue sharing
2    agreements with communities other than the host
3    municipality; and
4        (10) the extent to which the ownership of an applicant
5    includes the most qualified number of minority persons,
6    females, and persons with a disability.
7    (c) Each owners license shall specify the place where the
8casino riverboats shall operate or the riverboat shall operate
9and dock.
10    (d) Each applicant shall submit with his application, on
11forms provided by the Board, 2 sets of his fingerprints.
12    (e) In addition to any licenses authorized under subsection
13(e-5) of this Section, the The Board may issue up to 10
14licenses authorizing the holders of such licenses to own
15riverboats. In the application for an owners license, the
16applicant shall state the dock at which the riverboat is based
17and the water on which the riverboat will be located. The Board
18shall issue 5 licenses to become effective not earlier than
19January 1, 1991. Three of such licenses shall authorize
20riverboat gambling on the Mississippi River, or, with approval
21by the municipality in which the riverboat was docked on August
227, 2003 and with Board approval, be authorized to relocate to a
23new location, in a municipality that (1) borders on the
24Mississippi River or is within 5 miles of the city limits of a
25municipality that borders on the Mississippi River and (2), on
26August 7, 2003, had a riverboat conducting riverboat gambling

 

 

10000HB2498ham001- 373 -LRB100 03891 MJP 22700 a

1operations pursuant to a license issued under this Act; one of
2which shall authorize riverboat gambling from a home dock in
3the city of East St. Louis. One other license shall authorize
4riverboat gambling on the Illinois River in Tazewell County or,
5with Board approval, shall authorize the riverboat to relocate
6to a new location that is no more than 10 miles away from its
7original location, in a municipality that borders on the
8Illinois River or is within 5 miles of the city limits of a
9municipality that borders on the Illinois River south of
10Marshall County. The Board shall issue one additional license
11to become effective not earlier than March 1, 1992, which shall
12authorize riverboat gambling on the Des Plaines River in Will
13County. The Board may issue 4 additional licenses to become
14effective not earlier than March 1, 1992. In determining the
15water upon which riverboats will operate, the Board shall
16consider the economic benefit which riverboat gambling confers
17on the State, and shall seek to assure that all regions of the
18State share in the economic benefits of riverboat gambling.
19    In granting all licenses, the Board may give favorable
20consideration to economically depressed areas of the State, to
21applicants presenting plans which provide for significant
22economic development over a large geographic area, and to
23applicants who currently operate non-gambling riverboats in
24Illinois. The Board shall review all applications for owners
25licenses, and shall inform each applicant of the Board's
26decision. The Board may grant an owners license to an applicant

 

 

10000HB2498ham001- 374 -LRB100 03891 MJP 22700 a

1that has not submitted the highest license bid, but if it does
2not select the highest bidder, the Board shall issue a written
3decision explaining why another applicant was selected and
4identifying the factors set forth in this Section that favored
5the winning bidder. The fee for issuance or renewal of a
6license pursuant to this subsection (e) shall be $100,000.
7    (e-5) In addition to licenses authorized under subsection
8(e) of this Section:
9        (1) the Board shall issue one owners license
10    authorizing the conduct of casino gambling in the City of
11    Chicago;
12        (2) the Board may issue one owners license authorizing
13    the conduct of riverboat gambling in the City of Danville;
14        (3) the Board may issue one owners license authorizing
15    the conduct of riverboat gambling located in one of the
16    following municipalities in Lake County: Park City, North
17    Chicago, or Waukegan;
18        (4) the Board may issue one owners license authorizing
19    the conduct of riverboat gambling in the City of Rockford;
20        (5) the Board may issue one owners license authorizing
21    the conduct of riverboat gambling in a municipality that is
22    wholly or partially located in one of the following
23    townships of Cook County: Bloom, Bremen, Calumet, Rich,
24    Thornton, or Worth Township; and
25        (6) the Board may issue one owners license authorizing
26    the conduct of riverboat gambling in the unincorporated

 

 

10000HB2498ham001- 375 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 376 -LRB100 03891 MJP 22700 a

1    county board have mutually agreed on the temporary location
2    of the riverboat;
3        (iv) that the applicant and the corporate authority or
4    the county board have mutually agreed on the percentage of
5    revenues that will be shared with the municipality or
6    county, if any; and
7        (v) that the applicant and the corporate authority or
8    county board have mutually agreed on any zoning, licensing,
9    public health, or other issues that are within the
10    jurisdiction of the municipality or county.
11    At least 7 days before the corporate authority of a
12municipality or county board of the county submits a
13certification to the Board concerning items (i) through (v) of
14this subsection, it shall hold a public hearing to discuss
15items (i) through (v), as well as any other details concerning
16the proposed riverboat in the municipality or county. The
17corporate authority or county board must subsequently
18memorialize the details concerning the proposed riverboat in a
19resolution that must be adopted by a majority of the corporate
20authority or county board before any certification is sent to
21the Board. The Board shall not alter, amend, change, or
22otherwise interfere with any agreement between the applicant
23and the corporate authority of the municipality or county board
24of the county regarding the location of any temporary or
25permanent facility.
26    In addition, prior to the Board issuing the owners license

 

 

10000HB2498ham001- 377 -LRB100 03891 MJP 22700 a

1authorized under paragraph (4) of subsection (e-5), an impact
2study shall be completed to determine what location in the city
3will provide the greater impact to the region, including the
4creation of jobs and the generation of tax revenue.
5    (e-10) The licenses authorized under subsection (e-5) of
6this Section shall be issued within 12 months after the date
7the license application is submitted. If the Board does not
8issue the licenses within that time period, then the Board
9shall give a written explanation to the applicant as to why it
10has not reached a determination and when it reasonably expects
11to make a determination. The fee for the issuance or renewal of
12a license issued pursuant to this subsection (e-10) shall be
13$100,000. Additionally, a licensee located outside of Cook
14County shall pay a minimum initial fee of $17,500 per gaming
15position, and a licensee located in Cook County shall pay a
16minimum initial fee of $30,000 per gaming position. The initial
17fees payable under this subsection (e-10) shall be deposited
18into the Gaming Facilities Fee Revenue Fund.
19    (e-15) Each licensee of a license authorized under
20subsection (e-5) of this Section shall make a reconciliation
21payment 3 years after the date the licensee begins operating in
22an amount equal to 75% of the adjusted gross receipts for the
23most lucrative 12-month period of operations, minus an amount
24equal to the initial payment per gaming position paid by the
25specific licensee. If this calculation results in a negative
26amount, then the licensee is not entitled to any reimbursement

 

 

10000HB2498ham001- 378 -LRB100 03891 MJP 22700 a

1of fees previously paid. This reconciliation payment may be
2made in installments over a period of no more than 2 years,
3subject to Board approval. Any installment payments shall
4include an annual market interest rate as determined by the
5Board. All payments by licensees under this subsection (e-15)
6shall be deposited into the Gaming Facilities Fee Revenue Fund.
7    (e-20) In addition to any other revocation powers granted
8to the Board under this Act, the Board may revoke the owners
9license of a licensee, other than the Chicago Casino
10Development Authority, which fails to begin conducting
11gambling within 15 months of receipt of the Board's approval of
12the application if the Board determines that license revocation
13is in the best interests of the State.
14    (f) The first 10 owners licenses issued under this Act
15shall permit the holder to own up to 2 riverboats and equipment
16thereon for a period of 3 years after the effective date of the
17license. Holders of the first 10 owners licenses must pay the
18annual license fee for each of the 3 years during which they
19are authorized to own riverboats.
20    (g) Upon the termination, expiration, or revocation of each
21of the first 10 licenses, which shall be issued for a 3 year
22period, all licenses are renewable annually upon payment of the
23fee and a determination by the Board that the licensee
24continues to meet all of the requirements of this Act and the
25Board's rules. However, for licenses renewed on or after May 1,
261998, including casino operator licenses, renewal shall be for

 

 

10000HB2498ham001- 379 -LRB100 03891 MJP 22700 a

1a period of 4 years, unless the Board sets a shorter period.
2Notwithstanding any provision in this subsection (g) to the
3contrary, any license that is awarded to the Chicago Casino
4Development Authority shall not expire, but it shall be subject
5to the provisions of this Act and the rules of the Board.
6    (h) An owners license, except for an owners license issued
7under subsection (e-5) of this Section, shall entitle the
8licensee to own up to 2 riverboats.
9    An owners licensee of a casino or riverboat that is located
10in the City of Chicago pursuant to paragraph (1) of subsection
11(e-5) of this Section shall limit the number of gaming
12positions to 4,000 for such owner. An owners licensee
13authorized under paragraphs (2) through (5) of subsection (e-5)
14of this Section shall limit the number of gaming positions to
151,600 for any such owners license, except as further provided
16in subsection (h-10) of this Section. An owners licensee
17authorized under paragraph (6) of subsection (e-5) of this
18Section A licensee shall limit the number of gaming positions
19gambling participants to 1,200 for any such owner. The initial
20fee for each gaming position obtained on or after the effective
21date of this amendatory Act of the 100th General Assembly shall
22be a minimum of $17,500 for licensees not located in Cook
23County and a minimum of $30,000 for licensees located in Cook
24County, in addition to the reconciliation payment, as set forth
25in subsections (e-15) or (h-5) of this Section owners license.
26    Each owners licensee shall reserve its gaming positions

 

 

10000HB2498ham001- 380 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 381 -LRB100 03891 MJP 22700 a

1(h-10) begin operating in an amount equal to 75% of the owners
2licensee's average gross receipts for the most lucrative
312-month period of operations minus an amount equal to the
4initial fee that the owners licensee paid per additional gaming
5position. For purposes of this subsection (h-5), "average gross
6receipts" means (i) the increase in adjusted gross receipts for
7the most lucrative 12-month period of operations over the
8adjusted gross receipts for 2017, multiplied by (ii) the
9percentage derived by dividing the number of additional gaming
10positions that an owners licensee had obtained pursuant to
11subsection (h-10) by the total number of gaming positions
12operated by the owners licensee. If this calculation results in
13a negative amount, then the owners licensee is not entitled to
14any reimbursement of fees previously paid. This reconciliation
15payment may be made in installments over a period of no more
16than 2 years, subject to Board approval. Any installment
17payments shall include an annual market interest rate as
18determined by the Board. These reconciliation payments shall be
19deposited into the Gaming Facilities Fee Revenue Fund.
20    (h-10) For owners licensees authorized under paragraphs
21(2) through (5) of subsection (e-5) of this Section, the
22application for such new owners licenses shall ask the
23applicants to stipulate in their applications the number of
24gaming positions each applicant would like to reserve, up to
251,600 gaming positions. Once the last winning applicant for
26each of these owners licenses has been selected by the Board,

 

 

10000HB2498ham001- 382 -LRB100 03891 MJP 22700 a

1the Board shall publish the number of gaming positions reserved
2and unreserved by each winning applicant, shall accept requests
3for additional gaming positions from any winning applicants or
4owners licensee who initially reserved 1,600 gaming positions,
5and shall allocate expeditiously the unreserved gaming
6positions to such requesting winning applicants or owners
7licensees in a manner to maximize revenue to the State;
8provided, however, that no owners licensee (other than the
9Chicago Casino Development Authority) shall obtain more than
102,000 positions total. The Board may allocate any such unused
11gaming positions through a competitive bidding process
12pursuant to Section 7.5 of this Act.
13    In the event that not all of the unreserved gaming
14positions described in the first and second paragraphs of this
15subsection (h-10) were requested by owners licensees and
16applicants, then until there are no longer unreserved gaming
17positions, the Board periodically shall govern a process to
18allocate the unreserved gaming positions in a manner to
19maximize revenue to the State.
20    Unreserved gaming positions retained from and allocated to
21owners licensees by the Board pursuant to this subsection
22(h-10) shall not be allocated to electronic gaming licensees
23pursuant to subsection (e) of Section 7.7 of this Act.
24    (i) A licensed owner is authorized to apply to the Board
25for and, if approved therefor, to receive all licenses from the
26Board necessary for the operation of a riverboat or a casino,

 

 

10000HB2498ham001- 383 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 384 -LRB100 03891 MJP 22700 a

1licensee, the Board shall extend the period during which the
2licensee may conduct gaming at a temporary facility by up to 12
3months. The Board shall make rules concerning the conduct of
4gaming from temporary facilities.
5(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
6    (230 ILCS 10/7.3)
7    Sec. 7.3. State conduct of gambling operations.
8    (a) If, after reviewing each application for a re-issued
9license, the Board determines that the highest prospective
10total revenue to the State would be derived from State conduct
11of the gambling operation in lieu of re-issuing the license,
12the Board shall inform each applicant of its decision. The
13Board shall thereafter have the authority, without obtaining an
14owners license, to conduct casino or riverboat gambling
15operations as previously authorized by the terminated,
16expired, revoked, or nonrenewed license through a licensed
17manager selected pursuant to an open and competitive bidding
18process as set forth in Section 7.5 and as provided in Section
197.4.
20    (b) The Board may locate any casino or riverboat on which a
21gambling operation is conducted by the State in any home dock
22or other location authorized by Section 3(c) upon receipt of
23approval from a majority vote of the governing body of the
24municipality or county, as the case may be, in which the
25riverboat will dock.

 

 

10000HB2498ham001- 385 -LRB100 03891 MJP 22700 a

1    (c) The Board shall have jurisdiction over and shall
2supervise all gambling operations conducted by the State
3provided for in this Act and the Chicago Casino Development
4Authority Act and shall have all powers necessary and proper to
5fully and effectively execute the provisions of this Act and
6the Chicago Casino Development Authority Act relating to
7gambling operations conducted by the State.
8    (d) The maximum number of owners licenses authorized under
9Section 7 7(e) shall be reduced by one for each instance in
10which the Board authorizes the State to conduct a casino or
11riverboat gambling operation under subsection (a) in lieu of
12re-issuing a license to an applicant under Section 7.1.
13(Source: P.A. 93-28, eff. 6-20-03.)
 
14    (230 ILCS 10/7.5)
15    Sec. 7.5. Competitive Bidding. When the Board determines
16that (i) it will re-issue an owners license pursuant to an open
17and competitive bidding process, as set forth in Section 7.1,
18(ii) or that it will issue a managers license pursuant to an
19open and competitive bidding process, as set forth in Section
207.4, (iii) it will issue an owners license pursuant to an open
21and competitive bidding process, as set forth in Section 7.12,
22or (iv) it will allocate unused gaming positions pursuant to an
23open and competitive bidding process, as set forth in
24subsection (h-10) of Section 7, the open and competitive
25bidding process shall adhere to the following procedures:

 

 

10000HB2498ham001- 386 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 387 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 388 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 389 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 390 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 391 -LRB100 03891 MJP 22700 a

1    The electronic gaming licensee shall purchase up to the
2amount of electronic gaming positions authorized under this Act
3within 120 days after receiving its electronic gaming license.
4If an electronic gaming licensee is prepared to purchase the
5electronic gaming positions, but is temporarily prohibited
6from doing so by order of a court of competent jurisdiction or
7the Board, then the 120-day period is tolled until a resolution
8is reached.
9    An electronic gaming license shall authorize its holder to
10conduct gaming under this Act at its racetracks on the same
11days of the year and hours of the day that owner licenses are
12allowed to operate under approval of the Board.
13    A license to conduct electronic gaming and any renewal of
14an electronic gaming license shall authorize electronic gaming
15for a period of 4 years. The fee for the issuance or renewal of
16an electronic gaming license shall be $100,000.
17    (d) To be eligible to conduct electronic gaming, a person
18or entity having operating control of a race track must (i)
19obtain an electronic gaming license, (ii) hold an organization
20license under the Illinois Horse Racing Act of 1975, (iii) hold
21an inter-track wagering license, (iv) pay an initial fee of
22$30,000 per gaming position from electronic gaming licensees
23where electronic gaming is conducted in Cook County and $17,500
24for electronic gaming licensees where electronic gaming is
25located outside of Cook County before beginning to conduct
26electronic gaming plus make the reconciliation payment

 

 

10000HB2498ham001- 392 -LRB100 03891 MJP 22700 a

1required under subsection (i), (v) conduct at least 240 live
2races at each track per year or for a licensee that is only
3authorized 350 gaming positions pursuant to subsection (d) of
4Section 7.7 of this Act, have a fully operational facility
5running at least 96 live races over a period of at least 15
6days per year until such time as the total number of gaming
7positions is increased to 900, (vi) meet the requirements of
8subsection (a) of Section 56 of the Illinois Horse Racing Act
9of 1975, (vii) for organization licensees conducting
10standardbred race meetings that had an open backstretch in
112009, keep backstretch barns and dormitories open and
12operational year-round unless a lesser schedule is mutually
13agreed to by the organization licensee and the horsemen's
14association racing at that organization licensee's race
15meeting, (viii) for organization licensees conducting
16thoroughbred race meetings, the organization licensee must
17maintain accident medical expense liability insurance coverage
18of $1,000,000 for jockeys, and (ix) meet all other requirements
19of this Act that apply to owners licensees. Only those persons
20or entities (or its successors or assigns) that had operating
21control of a race track and held an inter-track wagering
22license authorized by the Illinois Racing Board in 2009 are
23eligible.
24    An electronic gaming licensee may enter into a joint
25venture with a licensed owner to own, manage, conduct, or
26otherwise operate the electronic gaming licensee's electronic

 

 

10000HB2498ham001- 393 -LRB100 03891 MJP 22700 a

1gaming facilities, unless the electronic gaming licensee has a
2parent company or other affiliated company that is, directly or
3indirectly, wholly owned by a parent company that is also
4licensed to conduct electronic gaming, casino gaming, or their
5equivalent in another state.
6    All payments by licensees under this subsection (c) shall
7be deposited into the Gaming Facilities Fee Revenue Fund.
8    (e) A person or entity is ineligible to receive an
9electronic gaming license if:
10        (1) the person or entity has been convicted of a felony
11    under the laws of this State, any other state, or the
12    United States, including a conviction under the Racketeer
13    Influenced and Corrupt Organizations Act;
14        (2) the person or entity has been convicted of any
15    violation of Article 28 of the Criminal Code of 2012, or
16    substantially similar laws of any other jurisdiction;
17        (3) the person or entity has submitted an application
18    for a license under this Act that contains false
19    information;
20        (4) the person is a member of the Board;
21        (5) a person defined in (1), (2), (3), or (4) of this
22    subsection (e) is an officer, director, or managerial
23    employee of the entity;
24        (6) the person or entity employs a person defined in
25    (1), (2), (3), or (4) of this subsection (e) who
26    participates in the management or operation of gambling

 

 

10000HB2498ham001- 394 -LRB100 03891 MJP 22700 a

1    operations authorized under this Act; or
2        (7) a license of the person or entity issued under this
3    Act or a license to own or operate gambling facilities in
4    any other jurisdiction has been revoked.
5    (f) The Board may approve electronic gaming positions
6statewide as provided in this Section. The authority to operate
7electronic gaming positions under this Section shall be
8allocated as follows: up to 1,200 gaming positions for any
9electronic gaming licensee in Cook County whose electronic
10gaming license originates with an organization licensee that
11conducted live racing in calendar year 2016; up to 900 gaming
12positions for any electronic gaming licensee outside of Cook
13County whose electronic gaming license originates with an
14organization licensee that conducted live racing in calendar
15year 2016; and up to 350 gaming positions for any electronic
16gaming licensee whose electronic gaming license originates
17with an organization licensee that did not conduct live racing
18in calendar year 2010, which shall increase to 900 gaming
19positions in the calendar year following the year in which the
20electronic gaming licensee conducts 96 live races.
21    (g) Each applicant for an electronic gaming license shall
22specify in its application for licensure the number of gaming
23positions it will operate, up to the applicable limitation set
24forth in subsection (f) of this Section. Any unreserved gaming
25positions that are not specified shall be forfeited and
26retained by the Board. For the purposes of this subsection (g),

 

 

10000HB2498ham001- 395 -LRB100 03891 MJP 22700 a

1an electronic gaming licensee that did not conduct live racing
2in 2010 may reserve up to 900 positions and shall not be
3penalized under this Section for not operating those positions
4until it meets the requirements of subsection (f) of this
5Section, but such licensee shall not request unreserved gaming
6positions under this subsection (g) until its 900 positions are
7all operational.
8    Thereafter, the Board shall publish the number of
9unreserved electronic gaming positions and shall accept
10requests for additional positions from any electronic gaming
11licensee that initially reserved all of the positions that were
12offered. The Board shall allocate expeditiously the unreserved
13electronic gaming positions to requesting electronic gaming
14licensees in a manner that maximizes revenue to the State. The
15Board may allocate any such unused electronic gaming positions
16pursuant to an open and competitive bidding process, as
17provided under Section 7.5 of this Act. This process shall
18continue until all unreserved gaming positions have been
19purchased. All positions obtained pursuant to this process and
20all positions the electronic gaming licensee specified it would
21operate in its application must be in operation within 18
22months after they were obtained or the electronic gaming
23licensee forfeits the right to operate those positions, but is
24not entitled to a refund of any fees paid. The Board may, after
25holding a public hearing, grant extensions so long as the
26electronic gaming licensee is working in good faith to make the

 

 

10000HB2498ham001- 396 -LRB100 03891 MJP 22700 a

1positions operational. The extension may be for a period of 6
2months. If, after the period of the extension, the electronic
3gaming licensee has not made the positions operational, then
4another public hearing must be held by the Board before it may
5grant another extension.
6    Unreserved gaming positions retained from and allocated to
7electronic gaming licensees by the Board pursuant to this
8subsection (g) shall not be allocated to owners licensees
9pursuant to subsection (h-10) of Section 7 of this Act.
10    For the purpose of this subsection (g), the unreserved
11gaming positions for each electronic gaming licensee shall be
12the applicable limitation set forth in subsection (f) of this
13Section, less the number of reserved gaming positions by such
14electronic gaming licensee, and the total unreserved gaming
15positions shall be the aggregate of the unreserved gaming
16positions for all electronic gaming licensees.
17    (h) Subject to the approval of the Illinois Gaming Board,
18an electronic gaming licensee may make modification or
19additions to any existing buildings and structures to comply
20with the requirements of this Act. The Illinois Gaming Board
21shall make its decision after consulting with the Illinois
22Racing Board. In no case, however, shall the Illinois Gaming
23Board approve any modification or addition that alters the
24grounds of the organization licensee such that the act of live
25racing is an ancillary activity to electronic gaming.
26Electronic gaming may take place in existing structures where

 

 

10000HB2498ham001- 397 -LRB100 03891 MJP 22700 a

1inter-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.
5    (i) An electronic gaming licensee may conduct electronic
6gaming at a temporary facility pending the construction of a
7permanent facility or the remodeling or relocation of an
8existing facility to accommodate electronic gaming
9participants for up to 24 months after the temporary facility
10begins to conduct electronic gaming. Upon request by an
11electronic gaming licensee and upon a showing of good cause by
12the electronic gaming licensee, the Board shall extend the
13period during which the licensee may conduct electronic gaming
14at a temporary facility by up to 12 months. The Board shall
15make rules concerning the conduct of electronic gaming from
16temporary facilities.
17    Electronic gaming may take place in existing structures
18where inter-track wagering is conducted at the race track or a
19facility within 300 yards of the race track in accordance with
20the provisions of this Act and the Illinois Horse Racing Act of
211975.
22    (j) The Illinois Gaming Board must adopt emergency rules in
23accordance with Section 5-45 of the Illinois Administrative
24Procedure Act as necessary to ensure compliance with the
25provisions of this amendatory Act of the 100th General Assembly
26concerning electronic gaming. The adoption of emergency rules

 

 

10000HB2498ham001- 398 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 399 -LRB100 03891 MJP 22700 a

1    (230 ILCS 10/7.8 new)
2    Sec. 7.8. Home rule. The regulation and licensing of
3electronic gaming and electronic gaming licensees are
4exclusive powers and functions of the State. A home rule unit
5may not regulate or license electronic gaming or electronic
6gaming licensees. This Section is a denial and limitation of
7home rule powers and functions under subsection (h) of Section
86 of Article VII of the Illinois Constitution.
 
9    (230 ILCS 10/7.9 new)
10    Sec. 7.9. Casino operator license.
11    (a) A qualified person may apply to the Board for a casino
12operator license to operate and manage any gambling operation
13conducted by the Authority. The application shall be made on
14forms provided by the Board and shall contain such information
15as the Board prescribes, including but not limited to
16information required in Sections 6(a), (b), and (c) and
17information relating to the applicant's proposed price to
18manage the Authority's gambling operations and to provide the
19casino, gambling equipment, and supplies necessary to conduct
20Authority gambling operations. The application shall also
21include a non-refundable application fee of $100,000. This
22application fee shall be deposited into the Gaming Facilities
23Fee Revenue Fund.
24    (b) A person or entity is ineligible to receive a casino
25operator license if:

 

 

10000HB2498ham001- 400 -LRB100 03891 MJP 22700 a

1        (1) the person has been convicted of a felony under the
2    laws of this State, any other state, or the United States;
3        (2) the person has been convicted of any violation of
4    Article 28 of the Criminal Code of 2012, or substantially
5    similar laws of any other jurisdiction;
6        (3) the person has submitted an application for a
7    license under this Act or the Chicago Casino Development
8    Authority Act which contains false information;
9        (4) the person is a member of the Board or the Chicago
10    Casino Development Board or the person is an official or
11    employee of the Chicago Casino Development Authority or the
12    City of Chicago;
13        (5) a person defined in (1), (2), (3), or (4) is an
14    officer, director, or managerial employee of the entity;
15        (6) the entity employs a person defined in (1), (2),
16    (3), or (4) who participates in the management or operation
17    of gambling operations authorized under this Act; or
18        (7) a license of the person or entity issued under this
19    Act, or a license to own or operate gambling facilities in
20    any other jurisdiction, has been revoked.
21    (c) In determining whether to grant a casino operator
22license, the Board shall consider:
23        (1) the character, reputation, experience and
24    financial integrity of the applicants and of any other or
25    separate person that either:
26            (A) controls, directly or indirectly, such

 

 

10000HB2498ham001- 401 -LRB100 03891 MJP 22700 a

1        applicant, or
2            (B) is controlled, directly or indirectly, by such
3        applicant or by a person which controls, directly or
4        indirectly, such applicant;
5        (2) the facilities or proposed facilities for the
6    conduct of gambling;
7        (3) the preference of the municipality in which the
8    licensee will operate;
9        (4) the extent to which the ownership of the applicant
10    reflects the diversity of the State by including minority
11    persons and females and the good faith affirmative action
12    plan of each applicant to recruit, train, and upgrade
13    minority persons and females in all employment
14    classifications;
15        (5) the financial ability of the applicant to purchase
16    and maintain adequate liability and casualty insurance;
17        (6) whether the applicant has adequate capitalization
18    to provide and maintain, for the duration of a license, a
19    casino; and
20        (7) the extent to which the applicant exceeds or meets
21    other standards for the issuance of a casino operator
22    license that the Board may adopt by rule.
23    (d) Each applicant shall submit with his or her
24application, on forms prescribed by the Board, 2 sets of his or
25her fingerprints. The Board shall charge each applicant a fee
26set by the Department of State Police to defray the costs

 

 

10000HB2498ham001- 402 -LRB100 03891 MJP 22700 a

1associated with the search and classification of fingerprints
2obtained by the Board with respect to the applicant's
3application. This fee shall be paid into the State Police
4Services Fund.
5    (e) A person who knowingly makes a false statement on an
6application is guilty of a Class A misdemeanor.
7    (f) The Board shall charge each applicant a non-refundable
8fee of $50,000 to defray the costs associated with the
9background investigation conducted by the Board. This fee shall
10be exclusive of any other fee or fees charged in connection
11with an application for and, if applicable, the issuance of, a
12casino operator license. If the costs of the investigation
13exceed $50,000, the Board shall immediately notify the
14applicant of the additional amount owed, payment of which must
15be submitted to the Board within 7 days after such
16notification. All information, records, interviews, reports,
17statements, memoranda, or other data supplied to or used by the
18Board in the course of its review or investigation of an
19application for a license or a renewal under this Act shall be
20privileged and strictly confidential and shall be used only for
21the purpose of evaluating an applicant for a license or a
22renewal. Such information, records, interviews, reports,
23statements, memoranda, or other data shall not be admissible as
24evidence, nor discoverable in any action of any kind in any
25court or before any tribunal, board, agency, or person, except
26for any action deemed necessary by the Board.

 

 

10000HB2498ham001- 403 -LRB100 03891 MJP 22700 a

1    (g) The casino operator license shall be issued only upon
2proof that the applicant has entered into a labor peace
3agreement with each labor organization that is actively engaged
4in representing and attempting to represent casino and
5hospitality industry workers in this State. The labor peace
6agreement must be a valid and enforceable agreement under 29
7U.S.C. 185 that protects the city's and State's revenues from
8the operation of the casino facility by prohibiting the labor
9organization and its members from engaging in any picketing,
10work stoppages, boycotts, or any other economic interference
11with the casino facility for at least the first 5 years of the
12casino license and must cover all operations at the casino
13facility that are conducted by lessees or tenants or under
14management agreements.
15    (h) The casino operator license shall be for a term of 4
16years, shall be renewable by the Board, and shall contain such
17terms and provisions as the Board deems necessary to protect or
18enhance the credibility and integrity of State gambling
19operations, achieve the highest prospective total revenue to
20the State, and otherwise serve the interests of the citizens of
21Illinois. The Board may suspend, restrict, or revoke the
22license:
23        (1) for violation of any provision of this Act;
24        (2) for violation of any rules of the Board;
25        (3) for any cause which, if known to the Board, would
26    have disqualified the applicant from receiving the

 

 

10000HB2498ham001- 404 -LRB100 03891 MJP 22700 a

1    license; or
2        (4) for any other just cause.
 
3    (230 ILCS 10/7.10 new)
4    Sec. 7.10. Diversity program.
5    (a) Each owners licensee, electronic gaming licensee,
6casino operator licensee, and suppliers licensee shall
7establish and maintain a diversity program to ensure
8non-discrimination in the award and administration of
9contracts. The programs shall establish goals of awarding not
10less than 20% of the annual dollar value of all contracts,
11purchase orders, or other agreements to minority-owned
12businesses and 5% of the annual dollar value of all contracts
13to female-owned businesses.
14    (b) Each owners licensee, electronic gaming licensee,
15casino operator licensee, and suppliers licensee shall
16establish and maintain a diversity program designed to promote
17equal opportunity for employment. The program shall establish
18hiring goals as the Board and each licensee determines
19appropriate. The Board shall monitor the progress of the gaming
20licensee's progress with respect to the program's goals.
21    (c) No later than May 31 of each year, each licensee shall
22report to the Board (1) the number of respective employees and
23the number of its respective employees who have designated
24themselves as members of a minority group and gender and (2)
25the total goals achieved under subsection (a) of this Section

 

 

10000HB2498ham001- 405 -LRB100 03891 MJP 22700 a

1as a percentage of the total contracts awarded by the license.
2In addition, all licensees shall submit a report with respect
3to the minority-owned and female-owned businesses program
4created in this Section to the Board.
5    (d) When considering whether to re-issue or renew a license
6to an owners licensee, electronic gaming licensee, casino
7operator licensee, or suppliers licensee, the Board shall take
8into account the licensee's success in complying with the
9provisions of this Section. If an owners licensee, electronic
10gaming licensee, casino operator licensee, or suppliers
11licensee has not satisfied the goals contained in this Section,
12the Board shall require a written explanation as to why the
13licensee is not in compliance and shall require the licensee to
14file multi-year metrics designed to achieve compliance with the
15provisions by the next renewal period, consistent with State
16and federal law.
 
17    (230 ILCS 10/7.11 new)
18    Sec. 7.11. Annual report on diversity.
19    (a) Each licensee that receives a license under Sections 7,
207.1, and 7.7 shall execute and file a report with the Board no
21later than December 31 of each year that shall contain, but not
22be limited to, the following information:
23        (i) a good faith affirmative action plan to recruit,
24    train, and upgrade minority persons, females, and persons
25    with a disability in all employment classifications;

 

 

10000HB2498ham001- 406 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 407 -LRB100 03891 MJP 22700 a

1    (b) To be a qualified applicant, a person or entity may not
2be ineligible to receive an owners license under subsection (a)
3of Section 7 of this Act and must submit an application for an
4owners license that complies with Section 6 of this Act.
5    (c) In determining whether to grant an owners license to an
6applicant, the Board shall consider all of the factors set
7forth in subsections (b) and (e-10) of Section 7 of this Act,
8as well as the amount of the applicant's license bid. The Board
9may grant the owners license to an applicant that has not
10submitted the highest license bid, but if it does not select
11the highest bidder, the Board shall issue a written decision
12explaining why another applicant was selected and identifying
13the factors set forth in subsections (b) and (e-10) of Section
147 of this Act that favored the winning bidder.
 
15    (230 ILCS 10/7.13 new)
16    Sec. 7.13. Environmental standards. All permanent
17casinos, riverboats, and electronic gaming facilities shall
18consist of buildings that are certified as meeting the U.S.
19Green Building Council's Leadership in Energy and
20Environmental Design standards. The provisions of this Section
21apply to a holder of an owners license, casino operator
22license, or electronic gaming license that (i) begins
23operations on or after January 1, 2017 or (ii) relocates its
24facilities on or after the effective date of this amendatory
25Act of the 100th General Assembly.
 

 

 

10000HB2498ham001- 408 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 409 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 410 -LRB100 03891 MJP 22700 a

1without a value impressed, engraved, or imprinted on it, for
2gambling operations. The Board may waive this requirement for
3any specific product or products if it determines that the
4requirement is not necessary to protect the integrity of the
5game. Items purchased from a licensed supplier may continue to
6be used even though the supplier subsequently changes its name,
7distinctive logo, or other mark or design element; undergoes a
8change in ownership; or ceases to be licensed as a supplier for
9any reason. Any supplier's equipment, devices or supplies which
10are used by any person in an unauthorized gambling operation
11shall be forfeited to the State. A holder of an owners license
12or an electronic gaming license A licensed owner may own its
13own equipment, devices and supplies. Each holder of an owners
14license or an electronic gaming license under the Act shall
15file an annual report listing its inventories of gambling
16equipment, devices and supplies.
17    (f) Any person who knowingly makes a false statement on an
18application is guilty of a Class A misdemeanor.
19    (g) Any gambling equipment, devices and supplies provided
20by any licensed supplier may either be repaired on the
21riverboat, in the casino, or at the electronic gaming facility
22or removed from the riverboat, casino, or electronic gaming
23facility to a an on-shore facility owned by the holder of an
24owners license or electronic gaming license for repair.
25(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
2698-756, eff. 7-16-14.)
 

 

 

10000HB2498ham001- 411 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 412 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 413 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 414 -LRB100 03891 MJP 22700 a

1an agreement with a public community college or a school
2approved under the Private Business and Vocational Schools Act
3of 2012 for the training of any occupational licensee. Any
4training offered by such a school shall be in accordance with a
5written agreement between the licensed owner or electronic
6gaming licensee and the school.
7    (i) Any training provided for occupational licensees may be
8conducted either at the site of the gambling facility on the
9riverboat or at a school with which a licensed owner or
10electronic gaming licensee has entered into an agreement
11pursuant to subsection (h).
12(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
1397-1150, eff. 1-25-13.)
 
14    (230 ILCS 10/11)  (from Ch. 120, par. 2411)
15    Sec. 11. Conduct of gambling. Gambling may be conducted by
16licensed owners or licensed managers on behalf of the State
17aboard riverboats. Gambling may be conducted by electronic
18gaming licensees at electronic gaming facilities. Gambling may
19be conducted by a casino operator licensee at a casino.
20Gambling authorized under this Section is , subject to the
21following standards:
22        (1) A licensee may conduct riverboat gambling
23    authorized under this Act regardless of whether it conducts
24    excursion cruises. A licensee may permit the continuous
25    ingress and egress of patrons passengers on a riverboat not

 

 

10000HB2498ham001- 415 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 416 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 417 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 418 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 419 -LRB100 03891 MJP 22700 a

1to the contrary, a licensed owner, licensed or manager,
2licensed casino operator, or electronic gaming licensee who
3extends credit to a riverboat gambling patron or an electronic
4gaming patron pursuant to Section 11 (a) (12) of this Act is
5expressly authorized to institute a cause of action to collect
6any amounts due and owing under the extension of credit, as
7well as the licensed owner's, licensed or manager's, licensed
8casino operator's, or electronic gaming licensee's costs,
9expenses and reasonable attorney's fees incurred in
10collection.
11(Source: P.A. 93-28, eff. 6-20-03.)
 
12    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
13    Sec. 12. Admission tax; fees.
14    (a) A tax is hereby imposed upon admissions to riverboat
15and casino gambling facilities riverboats operated by licensed
16owners authorized pursuant to this Act and the Chicago Casino
17Development Authority Act. Until July 1, 2002, the rate is $2
18per person admitted. From July 1, 2002 until July 1, 2003, the
19rate is $3 per person admitted. From July 1, 2003 until August
2023, 2005 (the effective date of Public Act 94-673), for a
21licensee that admitted 1,000,000 persons or fewer in the
22previous calendar year, the rate is $3 per person admitted; for
23a licensee that admitted more than 1,000,000 but no more than
242,300,000 persons in the previous calendar year, the rate is $4
25per person admitted; and for a licensee that admitted more than

 

 

10000HB2498ham001- 420 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 421 -LRB100 03891 MJP 22700 a

1licensee that admitted 1,000,000 persons or fewer in the
2previous calendar year, the rate is $3 per person admitted; for
3a licensee that admitted more than 1,000,000 but no more than
42,300,000 persons in the previous calendar year, the rate is $4
5per person admitted; and for a licensee that admitted more than
62,300,000 persons in the previous calendar year, the rate is $5
7per person admitted.
8        (1) The admission fee shall be paid for each admission.
9        (2) (Blank).
10        (3) The licensed manager may issue fee-free passes to
11    actual and necessary officials and employees of the manager
12    or other persons actually working on the riverboat.
13        (4) The number and issuance of fee-free passes is
14    subject to the rules of the Board, and a list of all
15    persons to whom the fee-free passes are issued shall be
16    filed with the Board.
17    (b) Except as provided in subsection (b-5), from From the
18tax imposed under subsection (a) and the fee imposed under
19subsection (a-5), a municipality shall receive from the State
20$1 for each person embarking on a riverboat docked within the
21municipality or entering a casino located within the
22municipality, and a county shall receive $1 for each person
23entering a casino or embarking on a riverboat docked within the
24county but outside the boundaries of any municipality. The
25municipality's or county's share shall be collected by the
26Board on behalf of the State and remitted quarterly by the

 

 

10000HB2498ham001- 422 -LRB100 03891 MJP 22700 a

1State, subject to appropriation, to the treasurer of the unit
2of local government for deposit in the general fund.
3    (b-5) From the tax imposed under subsection (a) and the fee
4imposed under subsection (a-5), $1 for each person embarking on
5a riverboat designated in paragraph (4) of subsection (e-5) of
6Section 7 shall be divided as follows: $0.70 to the City of
7Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
8of Machesney Park, and $0.20 to Winnebago County.
9    The municipality's or county's share shall be collected by
10the Board on behalf of the State and remitted monthly by the
11State, subject to appropriation, to the treasurer of the unit
12of local government for deposit in the general fund.
13    (c) The licensed owner shall pay the entire admission tax
14to the Board and the licensed manager or the casino operator
15licensee shall pay the entire admission fee to the Board. Such
16payments shall be made daily. Accompanying each payment shall
17be a return on forms provided by the Board which shall include
18other information regarding admissions as the Board may
19require. Failure to submit either the payment or the return
20within the specified time may result in suspension or
21revocation of the owners or managers license.
22    (c-5) A tax is imposed on admissions to electronic gaming
23facilities at the rate of $3 per person admitted by an
24electronic gaming licensee. The tax is imposed upon the
25electronic gaming licensee.
26        (1) The admission tax shall be paid for each admission,

 

 

10000HB2498ham001- 423 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 424 -LRB100 03891 MJP 22700 a

1or if the electronic gaming facility is not located within a
2municipality, then the county in which the electronic gaming
3facility is located, except as otherwise provided in this
4Section, shall receive, subject to appropriation, $1 for each
5person who enters the electronic gaming facility. For each
6admission to the electronic gaming facility in excess of
71,500,000 in a year, from the tax imposed under this subsection
8(c-5), the county in which the electronic gaming facility is
9located shall receive, subject to appropriation, $0.30, which
10shall be in addition to any other moneys paid to the county
11under this Section.
12    From the tax imposed under this subsection (c-5) on an
13electronic gaming facility located in the Village of Stickney,
14$1 for each person who enters the electronic gaming facility
15shall be distributed as follows, subject to appropriation:
16$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
17$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
18Health District, and $0.05 to the City of Bridgeview.
19    From the tax imposed under this subsection (c-5) on an
20electronic gaming facility located in the City of Collinsville,
21$1 for each person who enters the electronic gaming facility
22shall be distributed as follows, subject to appropriation:
23$0.45 to the City of Alton, $0.45 to the City of East St.
24Louis, and $0.10 to the City of Collinsville.
25    After payments required under this subsection (c-5) have
26been made, all remaining amounts shall be deposited into the

 

 

10000HB2498ham001- 425 -LRB100 03891 MJP 22700 a

1Education Assistance Fund.
2    (d) The Board shall administer and collect the admission
3tax imposed by this Section, to the extent practicable, in a
4manner consistent with the provisions of Sections 4, 5, 5a, 5b,
55c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
6Retailers' Occupation Tax Act and Section 3-7 of the Uniform
7Penalty and Interest Act.
8(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
9    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
10    Sec. 13. Wagering tax; rate; distribution.
11    (a) Until January 1, 1998, a tax is imposed on the adjusted
12gross receipts received from gambling games authorized under
13this Act at the rate of 20%.
14    (a-1) From January 1, 1998 until July 1, 2002, a privilege
15tax is imposed on persons engaged in the business of conducting
16riverboat gambling operations, based on the adjusted gross
17receipts received by a licensed owner from gambling games
18authorized under this Act at the following rates:
19        15% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        20% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;
23        25% of annual adjusted gross receipts in excess of
24    $50,000,000 but not exceeding $75,000,000;
25        30% of annual adjusted gross receipts in excess of

 

 

10000HB2498ham001- 426 -LRB100 03891 MJP 22700 a

1    $75,000,000 but not exceeding $100,000,000;
2        35% of annual adjusted gross receipts in excess of
3    $100,000,000.
4    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
5is imposed on persons engaged in the business of conducting
6riverboat gambling operations, other than licensed managers
7conducting riverboat gambling operations on behalf of the
8State, based on the adjusted gross receipts received by a
9licensed owner from gambling games authorized under this Act at
10the following rates:
11        15% of annual adjusted gross receipts up to and
12    including $25,000,000;
13        22.5% of annual adjusted gross receipts in excess of
14    $25,000,000 but not exceeding $50,000,000;
15        27.5% of annual adjusted gross receipts in excess of
16    $50,000,000 but not exceeding $75,000,000;
17        32.5% of annual adjusted gross receipts in excess of
18    $75,000,000 but not exceeding $100,000,000;
19        37.5% of annual adjusted gross receipts in excess of
20    $100,000,000 but not exceeding $150,000,000;
21        45% of annual adjusted gross receipts in excess of
22    $150,000,000 but not exceeding $200,000,000;
23        50% of annual adjusted gross receipts in excess of
24    $200,000,000.
25    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
26persons engaged in the business of conducting riverboat

 

 

10000HB2498ham001- 427 -LRB100 03891 MJP 22700 a

1gambling operations, other than licensed managers conducting
2riverboat gambling operations on behalf of the State, based on
3the adjusted gross receipts received by a licensed owner from
4gambling games authorized under this Act at the following
5rates:
6        15% of annual adjusted gross receipts up to and
7    including $25,000,000;
8        27.5% of annual adjusted gross receipts in excess of
9    $25,000,000 but not exceeding $37,500,000;
10        32.5% of annual adjusted gross receipts in excess of
11    $37,500,000 but not exceeding $50,000,000;
12        37.5% of annual adjusted gross receipts in excess of
13    $50,000,000 but not exceeding $75,000,000;
14        45% of annual adjusted gross receipts in excess of
15    $75,000,000 but not exceeding $100,000,000;
16        50% of annual adjusted gross receipts in excess of
17    $100,000,000 but not exceeding $250,000,000;
18        70% of annual adjusted gross receipts in excess of
19    $250,000,000.
20    An amount equal to the amount of wagering taxes collected
21under this subsection (a-3) that are in addition to the amount
22of wagering taxes that would have been collected if the
23wagering tax rates under subsection (a-2) were in effect shall
24be paid into the Common School Fund.
25    The privilege tax imposed under this subsection (a-3) shall
26no longer be imposed beginning on the earlier of (i) July 1,

 

 

10000HB2498ham001- 428 -LRB100 03891 MJP 22700 a

12005; (ii) the first date after June 20, 2003 that riverboat
2gambling operations are conducted pursuant to a dormant
3license; or (iii) the first day that riverboat gambling
4operations are conducted under the authority of an owners
5license that is in addition to the 10 owners licenses initially
6authorized under this Act. For the purposes of this subsection
7(a-3), the term "dormant license" means an owners license that
8is authorized by this Act under which no riverboat gambling
9operations are being conducted on June 20, 2003.
10    (a-4) Beginning on the first day on which the tax imposed
11under subsection (a-3) is no longer imposed and ending upon the
12imposition of the privilege tax under subsection (a-5) of this
13Section, a privilege tax is imposed on persons engaged in the
14business of conducting riverboat or casino gambling or
15electronic gaming 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

 

 

10000HB2498ham001- 429 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 430 -LRB100 03891 MJP 22700 a

1        17.5% of annual adjusted gross receipts in excess of
2    $25,000,000 but not exceeding $50,000,000;
3        22.5% of annual adjusted gross receipts in excess of
4    $50,000,000 but not exceeding $75,000,000;
5        27.5% of annual adjusted gross receipts in excess of
6    $75,000,000 but not exceeding $100,000,000;
7        32.5% of annual adjusted gross receipts in excess of
8    $100,000,000 but not exceeding $150,000,000;
9        35% of annual adjusted gross receipts in excess of
10    $150,000,000 but not exceeding $200,000,000;
11        40% of annual adjusted gross receipts in excess of
12    $200,000,000 but not exceeding $300,000,000;
13        30% of annual adjusted gross receipts in excess of
14    $300,000,000 but not exceeding $350,000,000;
15        20% of annual adjusted gross receipts in excess of
16    $350,000,000, but not exceeding $800,000,000;
17        50% of annual adjusted gross receipts in excess of
18    $800,000,000.
19    The privilege tax for table games shall be at the following
20rates:
21        10% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        17.5% of annual adjusted gross receipts in excess of
24    $25,000,000 but not exceeding $50,000,000;
25        22.5% of annual adjusted gross receipts in excess of
26    $50,000,000 but not exceeding $70,000,000;

 

 

10000HB2498ham001- 431 -LRB100 03891 MJP 22700 a

1        16% of annual adjusted gross receipts in excess of
2    $70,000,000.
3    For the imposition of the privilege tax in this subsection
4(a-5), amounts paid pursuant to item (1) of subsection (b) of
5Section 56 of the Illinois Horse Racing Act of 1975 shall not
6be included in the determination of adjusted gross receipts.
7    (a-6) From the effective date of this amendatory Act of the
8100th General Assembly until June 30, 2021, an owners licensee
9that conducted gambling operations prior to January 1, 2011
10shall receive a dollar-for-dollar credit against the tax
11imposed under this Section for any renovation or construction
12costs paid by the owners licensee, but in no event shall the
13credit exceed $2,000,000.
14    Additionally, from the effective date of this amendatory
15Act of the 100th General Assembly until December 31, 2020, an
16owners licensee that (i) is located within 15 miles of the
17Missouri border, and (ii) has at least 3 riverboats, casinos,
18or their equivalent within a 45-mile radius, may be authorized
19to relocate to a new location with the approval of both the
20unit of local government designated as the home dock and the
21Board, so long as the new location is within the same unit of
22local government and no more than 3 miles away from its
23original location. Such owners licensee shall receive a credit
24against the tax imposed under this Section equal to 8% of the
25total project costs, as approved by the Board, for any
26renovation or construction costs paid by the owners licensee

 

 

10000HB2498ham001- 432 -LRB100 03891 MJP 22700 a

1for the construction of the new facility, provided that the new
2facility is operational by July 1, 2020. In determining whether
3or not to approve a relocation, the Board must consider the
4extent to which the relocation will diminish the gaming
5revenues received by other Illinois gaming facilities.
6    (a-8) Riverboat gambling operations conducted by a
7licensed manager on behalf of the State are not subject to the
8tax imposed under this Section.
9    (a-9) Beginning on January 1, 2018, the calculation of
10gross receipts or adjusted gross receipts, for the purposes of
11this Section, for a riverboat, casino, or electronic gaming
12facility shall not include the dollar amount of non-cashable
13vouchers, coupons, and electronic promotions redeemed by
14wagerers upon the riverboat, in the casino, or in the
15electronic gaming facility up to and including an amount not to
16exceed 30% of a riverboat casino or electronic gaming
17facility's adjusted gross receipts.
18    The Illinois Gaming Board shall submit to the General
19Assembly a comprehensive report no later than March 31, 2021
20detailing, at a minimum, the effect of removing non-cashable
21vouchers, coupons, and electronic promotions from this
22calculation on net gaming revenues to the State in calendar
23years 2018 through 2020, the increase or reduction in wagerers
24as a result of removing non-cashable vouchers, coupons, and
25electronic promotions from this calculation, the effect of the
26tax rates in subsection (a-5) on net gaming revenues to the

 

 

10000HB2498ham001- 433 -LRB100 03891 MJP 22700 a

1State, and proposed modifications to the calculation.
2    (a-10) The taxes imposed by this Section shall be paid by
3the licensed owner or the electronic gaming licensee to the
4Board not later than 5:00 o'clock p.m. of the day after the day
5when the wagers were made.
6    (a-15) If the privilege tax imposed under subsection (a-3)
7is no longer imposed pursuant to item (i) of the last paragraph
8of subsection (a-3), then by June 15 of each year, each owners
9licensee, other than an owners licensee that admitted 1,000,000
10persons or fewer in calendar year 2004, must, in addition to
11the payment of all amounts otherwise due under this Section,
12pay to the Board a reconciliation payment in the amount, if
13any, by which the licensed owner's base amount exceeds the
14amount of net privilege tax paid by the licensed owner to the
15Board in the then current State fiscal year. A licensed owner's
16net privilege tax obligation due for the balance of the State
17fiscal year shall be reduced up to the total of the amount paid
18by the licensed owner in its June 15 reconciliation payment.
19The obligation imposed by this subsection (a-15) is binding on
20any person, firm, corporation, or other entity that acquires an
21ownership interest in any such owners license. The obligation
22imposed under this subsection (a-15) terminates on the earliest
23of: (i) July 1, 2007, (ii) the first day after the effective
24date of this amendatory Act of the 94th General Assembly that
25riverboat gambling operations are conducted pursuant to a
26dormant license, (iii) the first day that riverboat gambling

 

 

10000HB2498ham001- 434 -LRB100 03891 MJP 22700 a

1operations are conducted under the authority of an owners
2license that is in addition to the 10 owners licenses initially
3authorized under this Act, or (iv) the first day that a
4licensee under the Illinois Horse Racing Act of 1975 conducts
5gaming operations with slot machines or other electronic gaming
6devices. The Board must reduce the obligation imposed under
7this subsection (a-15) by an amount the Board deems reasonable
8for any of the following reasons: (A) an act or acts of God,
9(B) an act of bioterrorism or terrorism or a bioterrorism or
10terrorism threat that was investigated by a law enforcement
11agency, or (C) a condition beyond the control of the owners
12licensee that does not result from any act or omission by the
13owners licensee or any of its agents and that poses a hazardous
14threat to the health and safety of patrons. If an owners
15licensee pays an amount in excess of its liability under this
16Section, the Board shall apply the overpayment to future
17payments required under this Section.
18    For purposes of this subsection (a-15):
19    "Act of God" means an incident caused by the operation of
20an extraordinary force that cannot be foreseen, that cannot be
21avoided by the exercise of due care, and for which no person
22can be held liable.
23    "Base amount" means the following:
24        For a riverboat in Alton, $31,000,000.
25        For a riverboat in East Peoria, $43,000,000.
26        For the Empress riverboat in Joliet, $86,000,000.

 

 

10000HB2498ham001- 435 -LRB100 03891 MJP 22700 a

1        For a riverboat in Metropolis, $45,000,000.
2        For the Harrah's riverboat in Joliet, $114,000,000.
3        For a riverboat in Aurora, $86,000,000.
4        For a riverboat in East St. Louis, $48,500,000.
5        For a riverboat in Elgin, $198,000,000.
6    "Dormant license" has the meaning ascribed to it in
7subsection (a-3).
8    "Net privilege tax" means all privilege taxes paid by a
9licensed owner to the Board under this Section, less all
10payments made from the State Gaming Fund pursuant to subsection
11(b) of this Section.
12    The changes made to this subsection (a-15) by Public Act
1394-839 are intended to restate and clarify the intent of Public
14Act 94-673 with respect to the amount of the payments required
15to be made under this subsection by an owners licensee to the
16Board.
17    (b) Until January 1, 1998, 25% of the tax revenue deposited
18in the State Gaming Fund under this Section shall be paid,
19subject to appropriation by the General Assembly, to the unit
20of local government which is designated as the home dock of the
21riverboat. Beginning January 1, 1998, from the tax revenue from
22riverboat or casino gambling deposited in the State Gaming Fund
23under this Section, an amount equal to 5% of adjusted gross
24receipts generated by a riverboat or a casino other than a
25riverboat designated in paragraph (3) or (4) of subsection
26(e-5) of Section 7, shall be paid monthly, subject to

 

 

10000HB2498ham001- 436 -LRB100 03891 MJP 22700 a

1appropriation by the General Assembly, to the unit of local
2government in which the casino is located or that is designated
3as the home dock of the riverboat. From the tax revenue
4deposited in the State Gaming Fund pursuant to riverboat or
5casino gambling operations conducted by a licensed manager on
6behalf of the State, an amount equal to 5% of adjusted gross
7receipts generated pursuant to those riverboat or casino
8gambling operations shall be paid monthly, subject to
9appropriation by the General Assembly, to the unit of local
10government that is designated as the home dock of the riverboat
11upon which those riverboat gambling operations are conducted or
12in which the casino is located. From the tax revenue from
13riverboat or casino gambling deposited in the State Gaming Fund
14under this Section, an amount equal to 5% of the adjusted gross
15receipts generated by a riverboat designated in paragraph (3)
16of subsection (e-5) of Section 7 shall be divided and remitted
17monthly, subject to appropriation, as follows: 50% to Waukegan,
1825% to Park City, and 25% to North Chicago. From the tax
19revenue from riverboat or casino gambling deposited in the
20State Gaming Fund under this Section, an amount equal to 5% of
21the adjusted gross receipts generated by a riverboat designated
22in paragraph (4) of subsection (e-5) of Section 7 shall be
23remitted monthly, subject to appropriation, as follows: 70% to
24the City of Rockford, 5% to the City of Loves Park, 5% to the
25Village of Machesney, and 20% to Winnebago County. Units of
26local government may refund any portion of the payment that

 

 

10000HB2498ham001- 437 -LRB100 03891 MJP 22700 a

1they receive pursuant to this subsection (b) to the riverboat
2or casino.
3    (b-5) Beginning on the effective date of this amendatory
4Act of the 100th General Assembly, from the tax revenue
5deposited in the State Gaming Fund under this Section, an
6amount equal to 3% of adjusted gross receipts generated by each
7electronic gaming facility located outside Madison County
8shall be paid monthly, subject to appropriation by the General
9Assembly, to a municipality other than the Village of Stickney
10in which each electronic gaming facility is located or, if the
11electronic gaming facility is not located within a
12municipality, to the county in which the electronic gaming
13facility is located, except as otherwise provided in this
14Section. From the tax revenue deposited in the State Gaming
15Fund under this Section, an amount equal to 3% of adjusted
16gross receipts generated by an electronic gaming facility
17located in the Village of Stickney shall be paid monthly,
18subject to appropriation by the General Assembly, as follows:
1925% to the Village of Stickney, 5% to the City of Berwyn, 50%
20to the Town of Cicero, and 20% to the Stickney Public Health
21District.
22    From the tax revenue deposited in the State Gaming Fund
23under this Section, an amount equal to 5% of adjusted gross
24receipts generated by an electronic gaming facility located in
25the City of Collinsville shall be paid monthly, subject to
26appropriation by the General Assembly, as follows: 45% to the

 

 

10000HB2498ham001- 438 -LRB100 03891 MJP 22700 a

1City of Alton, 45% to the City of East St. Louis, and 10% to the
2City of Collinsville.
3    Municipalities and counties may refund any portion of the
4payment that they receive pursuant to this subsection (b-5) to
5the electronic gaming facility.
6    (b-6) Beginning on the effective date of this amendatory
7Act of the 100th General Assembly, from the tax revenue
8deposited in the State Gaming Fund under this Section, an
9amount equal to 2% of adjusted gross receipts generated by an
10electronic gaming facility located outside Madison County
11shall be paid monthly, subject to appropriation by the General
12Assembly, to the county in which the electronic gaming facility
13is located for the purposes of its criminal justice system or
14health care system.
15    Counties may refund any portion of the payment that they
16receive pursuant to this subsection (b-6) to the electronic
17gaming facility.
18    (c) Appropriations, as approved by the General Assembly,
19may be made from the State Gaming Fund to the Board (i) for the
20administration and enforcement of this Act, the Chicago Casino
21Development Authority Act, and the Video Gaming Act, (ii) for
22distribution to the Department of State Police and to the
23Department of Revenue for the enforcement of this Act, the
24Chicago Casino Development Authority Act, and the Video Gaming
25Act, and (iii) to the Department of Human Services for the
26administration of programs to treat problem gambling. The

 

 

10000HB2498ham001- 439 -LRB100 03891 MJP 22700 a

1Board's annual appropriations request must separately state
2its funding needs for the regulation of electronic gaming,
3riverboat gaming, casino gaming within the City of Chicago, and
4video gaming. From the tax revenue deposited in the Gaming
5Facilities Fee Revenue Fund, the first $50,000,000 shall be
6paid to the Board, subject to appropriation, for the
7administration and enforcement of the provisions of this
8amendatory Act of the 100th General Assembly.
9    (c-3) Appropriations, as approved by the General Assembly,
10may be made from the tax revenue deposited into the State
11Gaming Fund from electronic gaming pursuant to this Section for
12the administration and enforcement of this Act.
13    (c-4) After payments required under subsections (b),
14(b-5), (b-6), (c), and (c-3) have been made from the tax
15revenue from electronic gaming deposited into the State Gaming
16Fund under this Section, all remaining amounts from electronic
17gaming shall be deposited into the Education Assistance Fund.
18    (c-5) Before May 26, 2006 (the effective date of Public Act
1994-804) and beginning on the effective date of this amendatory
20Act of the 95th General Assembly, unless any organization
21licensee under the Illinois Horse Racing Act of 1975 begins to
22operate a slot machine or video game of chance under the
23Illinois Horse Racing Act of 1975 or this Act, after the
24payments required under subsections (b) and (c) have been made,
25an amount equal to 15% of the adjusted gross receipts of (1) an
26owners licensee that relocates pursuant to Section 11.2, (2) an

 

 

10000HB2498ham001- 440 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 441 -LRB100 03891 MJP 22700 a

1subsection (c-15) in the prior calendar year.
2    (c-25) On July 1, 2013 and each July 1 thereafter,
3$1,600,000 shall be transferred from the State Gaming Fund to
4the Chicago State University Education Improvement Fund.
5    (c-30) On July 1, 2013 or as soon as possible thereafter,
6$92,000,000 shall be transferred from the State Gaming Fund to
7the School Infrastructure Fund and $23,000,000 shall be
8transferred from the State Gaming Fund to the Horse Racing
9Equity Fund.
10    (c-35) Beginning on July 1, 2013, in addition to any amount
11transferred under subsection (c-30) of this Section,
12$5,530,000 shall be transferred monthly from the State Gaming
13Fund to the School Infrastructure Fund.
14    (d) From time to time, the Board shall transfer the
15remainder of the funds generated by this Act into the Education
16Assistance Fund, created by Public Act 86-0018, of the State of
17Illinois.
18    (e) Nothing in this Act shall prohibit the unit of local
19government designated as the home dock of the riverboat from
20entering into agreements with other units of local government
21in this State or in other states to share its portion of the
22tax revenue.
23    (f) To the extent practicable, the Board shall administer
24and collect the wagering taxes imposed by this Section in a
25manner consistent with the provisions of Sections 4, 5, 5a, 5b,
265c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

 

 

10000HB2498ham001- 442 -LRB100 03891 MJP 22700 a

1Retailers' Occupation Tax Act and Section 3-7 of the Uniform
2Penalty and Interest Act.
3(Source: P.A. 98-18, eff. 6-7-13.)
 
4    (230 ILCS 10/14)  (from Ch. 120, par. 2414)
5    Sec. 14. Licensees - Records - Reports - Supervision.
6    (a) Licensed owners and electronic gaming licensees A
7licensed owner shall keep his books and records so as to
8clearly show the following:
9    (1) The amount received daily from admission fees.
10    (2) The total amount of gross receipts.
11    (3) The total amount of the adjusted gross receipts.
12    (b) Licensed owners and electronic gaming licensees The
13licensed owner shall furnish to the Board reports and
14information as the Board may require with respect to its
15activities on forms designed and supplied for such purpose by
16the Board.
17    (c) The books and records kept by a licensed owner as
18provided by this Section are public records and the
19examination, publication, and dissemination of the books and
20records are governed by the provisions of The Freedom of
21Information Act.
22(Source: P.A. 86-1029.)
 
23    (230 ILCS 10/15)  (from Ch. 120, par. 2415)
24    Sec. 15. Audit of Licensee Operations. Annually, the

 

 

10000HB2498ham001- 443 -LRB100 03891 MJP 22700 a

1licensed owner, or manager, or electronic gaming licensee shall
2transmit to the Board an audit of the financial transactions
3and condition of the licensee's or manager's total operations.
4Additionally, within 90 days after the end of each quarter of
5each fiscal year, the licensed owner, or manager, or electronic
6gaming licensee shall transmit to the Board a compliance report
7on engagement procedures determined by the Board. All audits
8and compliance engagements shall be conducted by certified
9public accountants selected by the Board. Each certified public
10accountant must be registered in the State of Illinois under
11the Illinois Public Accounting Act. The compensation for each
12certified public accountant shall be paid directly by the
13licensed owner, or manager, or electronic gaming licensee to
14the certified public accountant.
15(Source: P.A. 96-1392, eff. 1-1-11.)
 
16    (230 ILCS 10/16)  (from Ch. 120, par. 2416)
17    Sec. 16. Annual Report of Board. The Board shall make an
18annual report to the Governor, for the period ending December
1931 of each year. Included in the report shall be an account of
20the Board actions, its financial position and results of
21operation under this Act and the Chicago Casino Development
22Authority Act, the practical results attained under this Act
23and the Chicago Casino Development Authority Act and any
24recommendations for legislation which the Board deems
25advisable.

 

 

10000HB2498ham001- 444 -LRB100 03891 MJP 22700 a

1(Source: P.A. 86-1029.)
 
2    (230 ILCS 10/17)  (from Ch. 120, par. 2417)
3    Sec. 17. Administrative Procedures. The Illinois
4Administrative Procedure Act shall apply to all administrative
5rules and procedures of the Board under this Act, the Chicago
6Casino Development Authority Act, and or the Video Gaming Act,
7except that: (1) subsection (b) of Section 5-10 of the Illinois
8Administrative Procedure Act does not apply to final orders,
9decisions and opinions of the Board; (2) subsection (a) of
10Section 5-10 of the Illinois Administrative Procedure Act does
11not apply to forms established by the Board for use under this
12Act, the Chicago Casino Development Authority Act, and or the
13Video Gaming Act; (3) the provisions of Section 10-45 of the
14Illinois Administrative Procedure Act regarding proposals for
15decision are excluded under this Act, the Chicago Casino
16Development Authority Act, and or the Video Gaming Act; and (4)
17the provisions of subsection (d) of Section 10-65 of the
18Illinois Administrative Procedure Act do not apply so as to
19prevent summary suspension of any license pending revocation or
20other action, which suspension shall remain in effect unless
21modified by the Board or unless the Board's decision is
22reversed on the merits upon judicial review.
23(Source: P.A. 96-34, eff. 7-13-09.)
 
24    (230 ILCS 10/17.1)  (from Ch. 120, par. 2417.1)

 

 

10000HB2498ham001- 445 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 446 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 447 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 448 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 449 -LRB100 03891 MJP 22700 a

1under paragraph (10) of Section 11, enters upon a riverboat or
2in a casino or electronic gaming facility commits a petty
3offense and is subject to a fine of not less than $100 or more
4than $250 for a first offense and of not less than $200 or more
5than $500 for a second or subsequent offense.
6    An action to prosecute any crime occurring on a riverboat
7shall be tried in the county of the dock at which the riverboat
8is based. An action to prosecute any crime occurring in a
9casino or electronic gaming facility shall be tried in the
10county in which the casino or electronic gaming facility is
11located.
12(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 
13    (230 ILCS 10/18.1)
14    Sec. 18.1. Distribution of certain fines. If a fine is
15imposed on an owner licensee or an electronic gaming licensee
16for knowingly sending marketing or promotional materials to any
17person placed on the self-exclusion list, then the Board shall
18distribute an amount equal to 15% of the fine imposed to the
19unit of local government in which the casino, riverboat, or
20electronic gaming facility is located for the purpose of
21awarding grants to non-profit entities that assist gambling
22addicts.
23(Source: P.A. 96-224, eff. 8-11-09.)
 
24    (230 ILCS 10/19)  (from Ch. 120, par. 2419)

 

 

10000HB2498ham001- 450 -LRB100 03891 MJP 22700 a

1    Sec. 19. Forfeiture of property.
2    (a) Except as provided in subsection (b), any riverboat,
3casino, or electronic gaming facility used for the conduct of
4gambling games in violation of this Act shall be considered a
5gambling place in violation of Section 28-3 of the Criminal
6Code of 2012. Every gambling device found on a riverboat, in a
7casino, or at an electronic gaming facility operating gambling
8games in violation of this Act and every slot machine and video
9game of chance found at an electronic gaming facility operating
10gambling games in violation of this Act or the Chicago Casino
11Development Authority Act shall be subject to seizure,
12confiscation and destruction as provided in Section 28-5 of the
13Criminal Code of 2012.
14    (b) It is not a violation of this Act for a riverboat or
15other watercraft which is licensed for gaming by a contiguous
16state to dock on the shores of this State if the municipality
17having jurisdiction of the shores, or the county in the case of
18unincorporated areas, has granted permission for docking and no
19gaming is conducted on the riverboat or other watercraft while
20it is docked on the shores of this State. No gambling device
21shall be subject to seizure, confiscation or destruction if the
22gambling device is located on a riverboat or other watercraft
23which is licensed for gaming by a contiguous state and which is
24docked on the shores of this State if the municipality having
25jurisdiction of the shores, or the county in the case of
26unincorporated areas, has granted permission for docking and no

 

 

10000HB2498ham001- 451 -LRB100 03891 MJP 22700 a

1gaming is conducted on the riverboat or other watercraft while
2it is docked on the shores of this State.
3(Source: P.A. 97-1150, eff. 1-25-13.)
 
4    (230 ILCS 10/20)  (from Ch. 120, par. 2420)
5    Sec. 20. Prohibited activities - civil penalties. Any
6person who conducts a gambling operation without first
7obtaining a license to do so, or who continues to conduct such
8games after revocation of his license, or any licensee who
9conducts or allows to be conducted any unauthorized gambling
10games on a riverboat, in a casino, or at an electronic gaming
11facility where it is authorized to conduct its riverboat
12gambling operation, in addition to other penalties provided,
13shall be subject to a civil penalty equal to the amount of
14gross receipts derived from wagering on the gambling games,
15whether unauthorized or authorized, conducted on that day as
16well as confiscation and forfeiture of all gambling game
17equipment used in the conduct of unauthorized gambling games.
18(Source: P.A. 86-1029.)
 
19    (230 ILCS 10/21)  (from Ch. 120, par. 2421)
20    Sec. 21. Limitation on taxation of licensees. Licensees
21shall not be subjected to any excise tax, license tax, permit
22tax, privilege tax, occupation tax or excursion tax which is
23imposed exclusively upon the licensee by the State or any
24political subdivision thereof, except as provided in this Act

 

 

10000HB2498ham001- 452 -LRB100 03891 MJP 22700 a

1or the Chicago Casino Development Authority Act.
2(Source: P.A. 86-1029.)
 
3    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
4    Sec. 23. The State Gaming Fund. On or after the effective
5date of this Act, except as provided for payments into the
6Horse Racing Equity Trust Fund under subsection (a) of Section
77, all of the fees and taxes collected pursuant to this Act or
8the Chicago Casino Development Authority Act shall be deposited
9into the State Gaming Fund, a special fund in the State
10Treasury, which is hereby created. The adjusted gross receipts
11of any riverboat gambling operations conducted by a licensed
12manager on behalf of the State remaining after the payment of
13the fees and expenses of the licensed manager shall be
14deposited into the State Gaming Fund. Fines and penalties
15collected pursuant to this Act or the Chicago Casino
16Development Authority Act shall be deposited into the Education
17Assistance Fund, created by Public Act 86-0018, of the State of
18Illinois.
19(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
 
20    (230 ILCS 10/24)
21    Sec. 24. Applicability of this Illinois Riverboat Gambling
22Act. The provisions of the this Illinois Riverboat Gambling
23Act, and all rules promulgated thereunder, shall apply to the
24Chicago Casino Development Authority Act and the Video Gaming

 

 

10000HB2498ham001- 453 -LRB100 03891 MJP 22700 a

1Act, except where there is a conflict between the 2 Acts. In
2the event of a conflict between this Act and the Chicago Casino
3Development Authority Act, the terms of the Chicago Casino
4Development Authority Act shall prevail. In the event of a
5conflict between this Act and the Video Gaming Act, the terms
6of this Act shall prevail.
7(Source: P.A. 96-37, eff. 7-13-09.)
 
8    Section 90-42. The Video Gaming Act is amended by changing
9Sections 5, 25, 45, 79, and 80 as follows:
 
10    (230 ILCS 40/5)
11    Sec. 5. Definitions. As used in this Act:
12    "Board" means the Illinois Gaming Board.
13    "Credit" means one, 5, 10, or 25 cents either won or
14purchased by a player.
15    "Distributor" means an individual, partnership,
16corporation, or limited liability company licensed under this
17Act to buy, sell, lease, or distribute video gaming terminals
18or major components or parts of video gaming terminals to or
19from terminal operators.
20    "Electronic card" means a card purchased from a licensed
21establishment, licensed fraternal establishment, licensed
22veterans establishment, or licensed truck stop establishment
23for use in that establishment as a substitute for cash in the
24conduct of gaming on a video gaming terminal.

 

 

10000HB2498ham001- 454 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 455 -LRB100 03891 MJP 22700 a

1    "Supplier" means an individual, partnership, corporation,
2or limited liability company that is licensed under this Act to
3supply major components or parts to video gaming terminals to
4licensed terminal operators.
5    "Net terminal income" means money put into a video gaming
6terminal minus credits paid out to players.
7    "Video gaming terminal" means any electronic video game
8machine that, upon insertion of cash, electronic cards or
9vouchers, or any combination thereof, is available to play or
10simulate the play of a video game, including but not limited to
11video poker, line up, and blackjack, as authorized by the Board
12utilizing a video display and microprocessors in which the
13player may receive free games or credits that can be redeemed
14for cash. The term does not include a machine that directly
15dispenses coins, cash, or tokens or is for amusement purposes
16only.
17    "Licensed establishment" means any licensed retail
18establishment where alcoholic liquor is drawn, poured, mixed,
19or otherwise served for consumption on the premises, whether
20the establishment operates on a nonprofit or for-profit basis.
21"Licensed establishment" includes any such establishment that
22has a contractual relationship with an inter-track wagering
23location licensee licensed under the Illinois Horse Racing Act
24of 1975, provided any contractual relationship shall not
25include any transfer or offer of revenue from the operation of
26video gaming under this Act to any licensee licensed under the

 

 

10000HB2498ham001- 456 -LRB100 03891 MJP 22700 a

1Illinois Horse Racing Act of 1975. Provided, however, that the
2licensed establishment that has such a contractual
3relationship with an inter-track wagering location licensee
4may not, itself, be (i) an inter-track wagering location
5licensee, (ii) the corporate parent or subsidiary of any
6licensee licensed under the Illinois Horse Racing Act of 1975,
7or (iii) the corporate subsidiary of a corporation that is also
8the corporate parent or subsidiary of any licensee licensed
9under the Illinois Horse Racing Act of 1975. "Licensed
10establishment" does not include a facility operated by an
11organization licensee, an inter-track wagering licensee, or an
12inter-track wagering location licensee licensed under the
13Illinois Horse Racing Act of 1975 or a riverboat licensed under
14the Illinois Riverboat Gambling Act, except as provided in this
15paragraph. The changes made to this definition by Public Act
1698-587 are declarative of existing law.
17    "Licensed fraternal establishment" means the location
18where a qualified fraternal organization that derives its
19charter from a national fraternal organization regularly
20meets.
21    "Licensed veterans establishment" means the location where
22a qualified veterans organization that derives its charter from
23a national veterans organization regularly meets.
24    "Licensed truck stop establishment" means a facility (i)
25that is at least a 3-acre facility with a convenience store,
26(ii) with separate diesel islands for fueling commercial motor

 

 

10000HB2498ham001- 457 -LRB100 03891 MJP 22700 a

1vehicles, (iii) that sells at retail more than 10,000 gallons
2of diesel or biodiesel fuel per month, and (iv) with parking
3spaces for commercial motor vehicles. "Commercial motor
4vehicles" has the same meaning as defined in Section 18b-101 of
5the Illinois Vehicle Code. The requirement of item (iii) of
6this paragraph may be met by showing that estimated future
7sales or past sales average at least 10,000 gallons per month.
8(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
998-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
107-16-14.)
 
11    (230 ILCS 40/25)
12    Sec. 25. Restriction of licensees.
13    (a) Manufacturer. A person may not be licensed as a
14manufacturer of a video gaming terminal in Illinois unless the
15person has a valid manufacturer's license issued under this
16Act. A manufacturer may only sell video gaming terminals for
17use in Illinois to persons having a valid distributor's
18license.
19    (b) Distributor. A person may not sell, distribute, or
20lease or market a video gaming terminal in Illinois unless the
21person has a valid distributor's license issued under this Act.
22A distributor may only sell video gaming terminals for use in
23Illinois to persons having a valid distributor's or terminal
24operator's license.
25    (c) Terminal operator. A person may not own, maintain, or

 

 

10000HB2498ham001- 458 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 459 -LRB100 03891 MJP 22700 a

1for a manufacturer, distributor, supplier, technician, or
2terminal operator licensed pursuant to this Act, shall have
3possession or control of a video gaming terminal, or access to
4the inner workings of a video gaming terminal, unless that
5person possesses a valid terminal handler's license issued
6under this Act.
7    (e) Licensed establishment. No video gaming terminal may be
8placed in any licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment unless the owner or agent of the owner
11of the licensed establishment, licensed veterans
12establishment, licensed truck stop establishment, or licensed
13fraternal establishment has entered into a written use
14agreement with the terminal operator for placement of the
15terminals. A copy of the use agreement shall be on file in the
16terminal operator's place of business and available for
17inspection by individuals authorized by the Board. A licensed
18establishment, licensed truck stop establishment, licensed
19veterans establishment, or licensed fraternal establishment
20may operate up to 5 video gaming terminals on its premises at
21any time.
22    (f) (Blank).
23    (g) Financial interest restrictions. As used in this Act,
24"substantial interest" in a partnership, a corporation, an
25organization, an association, a business, or a limited
26liability company means:

 

 

10000HB2498ham001- 460 -LRB100 03891 MJP 22700 a

1        (A) When, with respect to a sole proprietorship, an
2    individual or his or her spouse owns, operates, manages, or
3    conducts, directly or indirectly, the organization,
4    association, or business, or any part thereof; or
5        (B) When, with respect to a partnership, the individual
6    or his or her spouse shares in any of the profits, or
7    potential profits, of the partnership activities; or
8        (C) When, with respect to a corporation, an individual
9    or his or her spouse is an officer or director, or the
10    individual or his or her spouse is a holder, directly or
11    beneficially, of 5% or more of any class of stock of the
12    corporation; or
13        (D) When, with respect to an organization not covered
14    in (A), (B) or (C) above, an individual or his or her
15    spouse is an officer or manages the business affairs, or
16    the individual or his or her spouse is the owner of or
17    otherwise controls 10% or more of the assets of the
18    organization; or
19        (E) When an individual or his or her spouse furnishes
20    5% or more of the capital, whether in cash, goods, or
21    services, for the operation of any business, association,
22    or organization during any calendar year; or
23        (F) When, with respect to a limited liability company,
24    an individual or his or her spouse is a member, or the
25    individual or his or her spouse is a holder, directly or
26    beneficially, of 5% or more of the membership interest of

 

 

10000HB2498ham001- 461 -LRB100 03891 MJP 22700 a

1    the limited liability company.
2    For purposes of this subsection (g), "individual" includes
3all individuals or their spouses whose combined interest would
4qualify as a substantial interest under this subsection (g) and
5whose activities with respect to an organization, association,
6or business are so closely aligned or coordinated as to
7constitute the activities of a single entity.
8    (h) Location restriction. A licensed establishment,
9licensed truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment that is (i)
11located within 1,000 feet of a facility operated by an
12organization licensee licensed under the Illinois Horse Racing
13Act of 1975 or the home dock of a riverboat licensed under the
14Illinois Riverboat Gambling Act or (ii) located within 100 feet
15of a school or a place of worship under the Religious
16Corporation Act, is ineligible to operate a video gaming
17terminal. The location restrictions in this subsection (h) do
18not apply if (A) a facility operated by an organization
19licensee, a school, or a place of worship moves to or is
20established within the restricted area after a licensed
21establishment, licensed truck stop establishment, licensed
22fraternal establishment, or licensed veterans establishment
23becomes licensed under this Act or (B) a school or place of
24worship moves to or is established within the restricted area
25after a licensed establishment, licensed truck stop
26establishment, licensed fraternal establishment, or licensed

 

 

10000HB2498ham001- 462 -LRB100 03891 MJP 22700 a

1veterans establishment obtains its original liquor license.
2For the purpose of this subsection, "school" means an
3elementary or secondary public school, or an elementary or
4secondary private school registered with or recognized by the
5State Board of Education.
6    Notwithstanding the provisions of this subsection (h), the
7Board may waive the requirement that a licensed establishment,
8licensed truck stop establishment, licensed fraternal
9establishment, or licensed veterans establishment not be
10located within 1,000 feet from a facility operated by an
11organization licensee licensed under the Illinois Horse Racing
12Act of 1975 or the home dock of a riverboat licensed under the
13Illinois Riverboat Gambling Act. The Board shall not grant such
14waiver if there is any common ownership or control, shared
15business activity, or contractual arrangement of any type
16between the establishment and the organization licensee or
17owners licensee of a riverboat. The Board shall adopt rules to
18implement the provisions of this paragraph.
19    (i) Undue economic concentration. In addition to
20considering all other requirements under this Act, in deciding
21whether to approve the operation of video gaming terminals by a
22terminal operator in a location, the Board shall consider the
23impact of any economic concentration of such operation of video
24gaming terminals. The Board shall not allow a terminal operator
25to operate video gaming terminals if the Board determines such
26operation will result in undue economic concentration. For

 

 

10000HB2498ham001- 463 -LRB100 03891 MJP 22700 a

1purposes of this Section, "undue economic concentration" means
2that a terminal operator would have such actual or potential
3influence over video gaming terminals in Illinois as to:
4        (1) substantially impede or suppress competition among
5    terminal operators;
6        (2) adversely impact the economic stability of the
7    video gaming industry in Illinois; or
8        (3) negatively impact the purposes of the Video Gaming
9    Act.
10    The Board shall adopt rules concerning undue economic
11concentration with respect to the operation of video gaming
12terminals in Illinois. The rules shall include, but not be
13limited to, (i) limitations on the number of video gaming
14terminals operated by any terminal operator within a defined
15geographic radius and (ii) guidelines on the discontinuation of
16operation of any such video gaming terminals the Board
17determines will cause undue economic concentration.
18    (j) The provisions of the Illinois Antitrust Act are fully
19and equally applicable to the activities of any licensee under
20this Act.
21(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
22eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
23    (230 ILCS 40/45)
24    Sec. 45. Issuance of license.
25    (a) The burden is upon each applicant to demonstrate his

 

 

10000HB2498ham001- 464 -LRB100 03891 MJP 22700 a

1suitability for licensure. Each video gaming terminal
2manufacturer, distributor, supplier, operator, handler,
3licensed establishment, licensed truck stop establishment,
4licensed fraternal establishment, and licensed veterans
5establishment shall be licensed by the Board. The Board may
6issue or deny a license under this Act to any person pursuant
7to the same criteria set forth in Section 9 of the Illinois
8Riverboat Gambling Act.
9    (a-5) The Board shall not grant a license to a person who
10has facilitated, enabled, or participated in the use of
11coin-operated devices for gambling purposes or who is under the
12significant influence or control of such a person. For the
13purposes of this Act, "facilitated, enabled, or participated in
14the use of coin-operated amusement devices for gambling
15purposes" means that the person has been convicted of any
16violation of Article 28 of the Criminal Code of 1961 or the
17Criminal Code of 2012. If there is pending legal action against
18a person for any such violation, then the Board shall delay the
19licensure of that person until the legal action is resolved.
20    (b) 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 submit to a background
25investigation conducted by the Board with the assistance of the
26State Police or other law enforcement. To the extent that the

 

 

10000HB2498ham001- 465 -LRB100 03891 MJP 22700 a

1corporate structure of the applicant allows, the background
2investigation shall include any or all of the following as the
3Board deems appropriate or as provided by rule for each
4category of licensure: (i) each beneficiary of a trust, (ii)
5each partner of a partnership, (iii) each member of a limited
6liability company, (iv) each director and officer of a publicly
7or non-publicly held corporation, (v) each stockholder of a
8non-publicly held corporation, (vi) each stockholder of 5% or
9more of a publicly held corporation, or (vii) each stockholder
10of 5% or more in a parent or subsidiary corporation.
11    (c) Each person seeking and possessing a license as a video
12gaming terminal manufacturer, distributor, supplier, operator,
13handler, licensed establishment, licensed truck stop
14establishment, licensed fraternal establishment, or licensed
15veterans establishment shall disclose the identity of every
16person, association, trust, corporation, or limited liability
17company having a greater than 1% direct or indirect pecuniary
18interest in the video gaming terminal operation for which the
19license is sought. If the disclosed entity is a trust, the
20application shall disclose the names and addresses of the
21beneficiaries; if a corporation, the names and addresses of all
22stockholders and directors; if a limited liability company, the
23names and addresses of all members; or if a partnership, the
24names and addresses of all partners, both general and limited.
25    (d) No person may be licensed as a video gaming terminal
26manufacturer, distributor, supplier, operator, handler,

 

 

10000HB2498ham001- 466 -LRB100 03891 MJP 22700 a

1licensed establishment, licensed truck stop establishment,
2licensed fraternal establishment, or licensed veterans
3establishment if that person has been found by the Board to:
4        (1) have a background, including a criminal record,
5    reputation, habits, social or business associations, or
6    prior activities that pose a threat to the public interests
7    of the State or to the security and integrity of video
8    gaming;
9        (2) create or enhance the dangers of unsuitable,
10    unfair, or illegal practices, methods, and activities in
11    the conduct of video gaming; or
12        (3) present questionable business practices and
13    financial arrangements incidental to the conduct of video
14    gaming activities.
15    (e) Any applicant for any license under this Act has the
16burden of proving his or her qualifications to the satisfaction
17of the Board. The Board may adopt rules to establish additional
18qualifications and requirements to preserve the integrity and
19security of video gaming in this State.
20    (f) A non-refundable application fee shall be paid at the
21time an application for a license is filed with the Board in
22the following amounts:
23        (1) Manufacturer..........................$5,000
24        (2) Distributor...........................$5,000
25        (3) Terminal operator.....................$5,000
26        (4) Supplier..............................$2,500

 

 

10000HB2498ham001- 467 -LRB100 03891 MJP 22700 a

1        (5) Technician..............................$100
2        (6) Terminal Handler..............................$50
3    (g) The Board shall establish an annual fee for each
4license not to exceed the following:
5        (1) Manufacturer.........................$10,000
6        (2) Distributor..........................$10,000
7        (3) Terminal operator.....................$5,000
8        (4) Supplier..............................$2,000
9        (5) Technician..............................$100
10        (6) Licensed establishment, licensed truck stop
11    establishment, licensed fraternal establishment,
12    or licensed veterans establishment..............$100
13        (7) Video gaming terminal...................$100
14        (8) Terminal Handler..............................$50
15    (h) A terminal operator and a licensed establishment,
16licensed truck stop establishment, licensed fraternal
17establishment, or licensed veterans establishment shall
18equally split the fees specified in item (7) of subsection (g).
19(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
2098-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
 
21    (230 ILCS 40/79)
22    Sec. 79. Investigators. Investigators appointed by the
23Board pursuant to the powers conferred upon the Board by
24paragraph (20.6) of subsection (c) of Section 5 of the Illinois
25Riverboat Gambling Act and Section 80 of this Act shall have

 

 

10000HB2498ham001- 468 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 469 -LRB100 03891 MJP 22700 a

1the Illinois Gambling Act shall prevail. All provisions of the
2Uniform Penalty and Interest Act shall apply, as far as
3practicable, to the subject matter of this Act to the same
4extent as if such provisions were included herein.
5(Source: P.A. 96-37, eff. 7-13-09.)
 
6    Section 90-45. The Liquor Control Act of 1934 is amended by
7changing Sections 5-1 and 6-30 as follows:
 
8    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
9    Sec. 5-1. Licenses issued by the Illinois Liquor Control
10Commission shall be of the following classes:
11    (a) Manufacturer's license - Class 1. Distiller, Class 2.
12Rectifier, Class 3. Brewer, Class 4. First Class Wine
13Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
14First Class Winemaker, Class 7. Second Class Winemaker, Class
158. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1610. Class 1 Brewer, Class 11. Class 2 Brewer,
17    (b) Distributor's license,
18    (c) Importing Distributor's license,
19    (d) Retailer's license,
20    (e) Special Event Retailer's license (not-for-profit),
21    (f) Railroad license,
22    (g) Boat license,
23    (h) Non-Beverage User's license,
24    (i) Wine-maker's premises license,

 

 

10000HB2498ham001- 470 -LRB100 03891 MJP 22700 a

1    (j) Airplane license,
2    (k) Foreign importer's license,
3    (l) Broker's license,
4    (m) Non-resident dealer's license,
5    (n) Brew Pub license,
6    (o) Auction liquor license,
7    (p) Caterer retailer license,
8    (q) Special use permit license,
9    (r) Winery shipper's license,
10    (s) Craft distiller tasting permit.
11    No person, firm, partnership, corporation, or other legal
12business entity that is engaged in the manufacturing of wine
13may concurrently obtain and hold a wine-maker's license and a
14wine manufacturer's license.
15    (a) A manufacturer's license shall allow the manufacture,
16importation in bulk, storage, distribution and sale of
17alcoholic liquor to persons without the State, as may be
18permitted by law and to licensees in this State as follows:
19    Class 1. A Distiller may make sales and deliveries of
20alcoholic liquor to distillers, rectifiers, importing
21distributors, distributors and non-beverage users and to no
22other licensees.
23    Class 2. A Rectifier, who is not a distiller, as defined
24herein, may make sales and deliveries of alcoholic liquor to
25rectifiers, importing distributors, distributors, retailers
26and non-beverage users and to no other licensees.

 

 

10000HB2498ham001- 471 -LRB100 03891 MJP 22700 a

1    Class 3. A Brewer may make sales and deliveries of beer to
2importing distributors and distributors and may make sales as
3authorized under subsection (e) of Section 6-4 of this Act.
4    Class 4. A first class wine-manufacturer may make sales and
5deliveries of up to 50,000 gallons of wine to manufacturers,
6importing distributors and distributors, and to no other
7licensees.
8    Class 5. A second class Wine manufacturer may make sales
9and deliveries of more than 50,000 gallons of wine to
10manufacturers, importing distributors and distributors and to
11no other licensees.
12    Class 6. A first-class wine-maker's license shall allow the
13manufacture of up to 50,000 gallons of wine per year, and the
14storage and sale of such wine to distributors in the State and
15to persons without the State, as may be permitted by law. A
16person who, prior to June 1, 2008 (the effective date of Public
17Act 95-634), is a holder of a first-class wine-maker's license
18and annually produces more than 25,000 gallons of its own wine
19and who distributes its wine to licensed retailers shall cease
20this practice on or before July 1, 2008 in compliance with
21Public Act 95-634.
22    Class 7. A second-class wine-maker's license shall allow
23the manufacture of between 50,000 and 150,000 gallons of wine
24per year, and the storage and sale of such wine to distributors
25in this State and to persons without the State, as may be
26permitted by law. A person who, prior to June 1, 2008 (the

 

 

10000HB2498ham001- 472 -LRB100 03891 MJP 22700 a

1effective date of Public Act 95-634), is a holder of a
2second-class wine-maker's license and annually produces more
3than 25,000 gallons of its own wine and who distributes its
4wine to licensed retailers shall cease this practice on or
5before July 1, 2008 in compliance with Public Act 95-634.
6    Class 8. A limited wine-manufacturer may make sales and
7deliveries not to exceed 40,000 gallons of wine per year to
8distributors, and to non-licensees in accordance with the
9provisions of this Act.
10    Class 9. A craft distiller license shall allow the
11manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
12gallons of spirits by distillation per year and the storage of
13such spirits. If a craft distiller licensee, including a craft
14distiller licensee who holds more than one craft distiller
15license, is not affiliated with any other manufacturer of
16spirits, then the craft distiller licensee may sell such
17spirits to distributors in this State and up to 2,500 gallons
18of such spirits to non-licensees to the extent permitted by any
19exemption approved by the Commission pursuant to Section 6-4 of
20this Act. A craft distiller license holder may store such
21spirits at a non-contiguous licensed location, but at no time
22shall a craft distiller license holder directly or indirectly
23produce in the aggregate more than 100,000 gallons of spirits
24per year.
25    A craft distiller licensee may hold more than one craft
26distiller's license. However, a craft distiller that holds more

 

 

10000HB2498ham001- 473 -LRB100 03891 MJP 22700 a

1than one craft distiller license shall not manufacture, in the
2aggregate, more than 100,000 gallons of spirits by distillation
3per year and shall not sell, in the aggregate, more than 2,500
4gallons of such spirits to non-licensees in accordance with an
5exemption approved by the State Commission pursuant to Section
66-4 of this Act.
7    Any craft distiller licensed under this Act who on July 28,
82010 (the effective date of Public Act 96-1367) was licensed as
9a distiller and manufactured no more spirits than permitted by
10this Section shall not be required to pay the initial licensing
11fee.
12    Class 10. A class 1 brewer license, which may only be
13issued to a licensed brewer or licensed non-resident dealer,
14shall allow the manufacture of up to 930,000 gallons of beer
15per year provided that the class 1 brewer licensee does not
16manufacture more than a combined 930,000 gallons of beer per
17year and is not a member of or affiliated with, directly or
18indirectly, a manufacturer that produces more than 930,000
19gallons of beer per year or any other alcoholic liquor. A class
201 brewer licensee may make sales and deliveries to importing
21distributors and distributors and to retail licensees in
22accordance with the conditions set forth in paragraph (18) of
23subsection (a) of Section 3-12 of this Act.
24    Class 11. A class 2 brewer license, which may only be
25issued to a licensed brewer or licensed non-resident dealer,
26shall allow the manufacture of up to 3,720,000 gallons of beer

 

 

10000HB2498ham001- 474 -LRB100 03891 MJP 22700 a

1per year provided that the class 2 brewer licensee does not
2manufacture more than a combined 3,720,000 gallons of beer per
3year and is not a member of or affiliated with, directly or
4indirectly, a manufacturer that produces more than 3,720,000
5gallons of beer per year or any other alcoholic liquor. A class
62 brewer licensee may make sales and deliveries to importing
7distributors and distributors, but shall not make sales or
8deliveries to any other licensee. If the State Commission
9provides prior approval, a class 2 brewer licensee may annually
10transfer up to 3,720,000 gallons of beer manufactured by that
11class 2 brewer licensee to the premises of a licensed class 2
12brewer wholly owned and operated by the same licensee.
13    (a-1) A manufacturer which is licensed in this State to
14make sales or deliveries of alcoholic liquor to licensed
15distributors or importing distributors and which enlists
16agents, representatives, or individuals acting on its behalf
17who contact licensed retailers on a regular and continual basis
18in this State must register those agents, representatives, or
19persons acting on its behalf with the State Commission.
20    Registration of agents, representatives, or persons acting
21on behalf of a manufacturer is fulfilled by submitting a form
22to the Commission. The form shall be developed by the
23Commission and shall include the name and address of the
24applicant, the name and address of the manufacturer he or she
25represents, the territory or areas assigned to sell to or
26discuss pricing terms of alcoholic liquor, and any other

 

 

10000HB2498ham001- 475 -LRB100 03891 MJP 22700 a

1questions deemed appropriate and necessary. All statements in
2the forms required to be made by law or by rule shall be deemed
3material, and any person who knowingly misstates any material
4fact under oath in an application is guilty of a Class B
5misdemeanor. Fraud, misrepresentation, false statements,
6misleading statements, evasions, or suppression of material
7facts in the securing of a registration are grounds for
8suspension or revocation of the registration. The State
9Commission shall post a list of registered agents on the
10Commission's website.
11    (b) A distributor's license shall allow the wholesale
12purchase and storage of alcoholic liquors and sale of alcoholic
13liquors to licensees in this State and to persons without the
14State, as may be permitted by law. No person licensed as a
15distributor shall be granted a non-resident dealer's license.
16    (c) An importing distributor's license may be issued to and
17held by those only who are duly licensed distributors, upon the
18filing of an application by a duly licensed distributor, with
19the Commission and the Commission shall, without the payment of
20any fee, immediately issue such importing distributor's
21license to the applicant, which shall allow the importation of
22alcoholic liquor by the licensee into this State from any point
23in the United States outside this State, and the purchase of
24alcoholic liquor in barrels, casks or other bulk containers and
25the bottling of such alcoholic liquors before resale thereof,
26but all bottles or containers so filled shall be sealed,

 

 

10000HB2498ham001- 476 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 477 -LRB100 03891 MJP 22700 a

1event retailer licensee for resale to the extent permitted
2under subsection (e).
3    (e) A special event retailer's license (not-for-profit)
4shall permit the licensee to purchase alcoholic liquors from an
5Illinois licensed distributor (unless the licensee purchases
6less than $500 of alcoholic liquors for the special event, in
7which case the licensee may purchase the alcoholic liquors from
8a licensed retailer) and shall allow the licensee to sell and
9offer for sale, at retail, alcoholic liquors for use or
10consumption, but not for resale in any form and only at the
11location and on the specific dates designated for the special
12event in the license. An applicant for a special event retailer
13license must (i) furnish with the application: (A) a resale
14number issued under Section 2c of the Retailers' Occupation Tax
15Act or evidence that the applicant is registered under Section
162a of the Retailers' Occupation Tax Act, (B) a current, valid
17exemption identification number issued under Section 1g of the
18Retailers' Occupation Tax Act, and a certification to the
19Commission that the purchase of alcoholic liquors will be a
20tax-exempt purchase, or (C) a statement that the applicant is
21not registered under Section 2a of the Retailers' Occupation
22Tax Act, does not hold a resale number under Section 2c of the
23Retailers' Occupation Tax Act, and does not hold an exemption
24number under Section 1g of the Retailers' Occupation Tax Act,
25in which event the Commission shall set forth on the special
26event retailer's license a statement to that effect; (ii)

 

 

10000HB2498ham001- 478 -LRB100 03891 MJP 22700 a

1submit with the application proof satisfactory to the State
2Commission that the applicant will provide dram shop liability
3insurance in the maximum limits; and (iii) show proof
4satisfactory to the State Commission that the applicant has
5obtained local authority approval.
6    (f) A railroad license shall permit the licensee to import
7alcoholic liquors into this State from any point in the United
8States outside this State and to store such alcoholic liquors
9in this State; to make wholesale purchases of alcoholic liquors
10directly from manufacturers, foreign importers, distributors
11and importing distributors from within or outside this State;
12and to store such alcoholic liquors in this State; provided
13that the above powers may be exercised only in connection with
14the importation, purchase or storage of alcoholic liquors to be
15sold or dispensed on a club, buffet, lounge or dining car
16operated on an electric, gas or steam railway in this State;
17and provided further, that railroad licensees exercising the
18above powers shall be subject to all provisions of Article VIII
19of this Act as applied to importing distributors. A railroad
20license shall also permit the licensee to sell or dispense
21alcoholic liquors on any club, buffet, lounge or dining car
22operated on an electric, gas or steam railway regularly
23operated by a common carrier in this State, but shall not
24permit the sale for resale of any alcoholic liquors to any
25licensee within this State. A license shall be obtained for
26each car in which such sales are made.

 

 

10000HB2498ham001- 479 -LRB100 03891 MJP 22700 a

1    (g) A boat license shall allow the sale of alcoholic liquor
2in individual drinks, on any passenger boat regularly operated
3as a common carrier on navigable waters in this State or on any
4riverboat operated under the Illinois Riverboat Gambling Act,
5which boat or riverboat maintains a public dining room or
6restaurant thereon.
7    (h) A non-beverage user's license shall allow the licensee
8to purchase alcoholic liquor from a licensed manufacturer or
9importing distributor, without the imposition of any tax upon
10the business of such licensed manufacturer or importing
11distributor as to such alcoholic liquor to be used by such
12licensee solely for the non-beverage purposes set forth in
13subsection (a) of Section 8-1 of this Act, and such licenses
14shall be divided and classified and shall permit the purchase,
15possession and use of limited and stated quantities of
16alcoholic liquor as follows:
17Class 1, not to exceed ......................... 500 gallons
18Class 2, not to exceed ....................... 1,000 gallons
19Class 3, not to exceed ....................... 5,000 gallons
20Class 4, not to exceed ...................... 10,000 gallons
21Class 5, not to exceed ....................... 50,000 gallons
22    (i) A wine-maker's premises license shall allow a licensee
23that concurrently holds a first-class wine-maker's license to
24sell and offer for sale at retail in the premises specified in
25such license not more than 50,000 gallons of the first-class
26wine-maker's wine that is made at the first-class wine-maker's

 

 

10000HB2498ham001- 480 -LRB100 03891 MJP 22700 a

1licensed premises per year for use or consumption, but not for
2resale in any form. A wine-maker's premises license shall allow
3a licensee who concurrently holds a second-class wine-maker's
4license to sell and offer for sale at retail in the premises
5specified in such license up to 100,000 gallons of the
6second-class wine-maker's wine that is made at the second-class
7wine-maker's licensed premises per year for use or consumption
8but not for resale in any form. A wine-maker's premises license
9shall allow a licensee that concurrently holds a first-class
10wine-maker's license or a second-class wine-maker's license to
11sell and offer for sale at retail at the premises specified in
12the wine-maker's premises license, for use or consumption but
13not for resale in any form, any beer, wine, and spirits
14purchased from a licensed distributor. Upon approval from the
15State Commission, a wine-maker's premises license shall allow
16the licensee to sell and offer for sale at (i) the wine-maker's
17licensed premises and (ii) at up to 2 additional locations for
18use and consumption and not for resale. Each location shall
19require additional licensing per location as specified in
20Section 5-3 of this Act. A wine-maker's premises licensee shall
21secure liquor liability insurance coverage in an amount at
22least equal to the maximum liability amounts set forth in
23subsection (a) of Section 6-21 of this Act.
24    (j) An airplane license shall permit the licensee to import
25alcoholic liquors into this State from any point in the United
26States outside this State and to store such alcoholic liquors

 

 

10000HB2498ham001- 481 -LRB100 03891 MJP 22700 a

1in this State; to make wholesale purchases of alcoholic liquors
2directly from manufacturers, foreign importers, distributors
3and importing distributors from within or outside this State;
4and to store such alcoholic liquors in this State; provided
5that the above powers may be exercised only in connection with
6the importation, purchase or storage of alcoholic liquors to be
7sold or dispensed on an airplane; and provided further, that
8airplane licensees exercising the above powers shall be subject
9to all provisions of Article VIII of this Act as applied to
10importing distributors. An airplane licensee shall also permit
11the sale or dispensing of alcoholic liquors on any passenger
12airplane regularly operated by a common carrier in this State,
13but shall not permit the sale for resale of any alcoholic
14liquors to any licensee within this State. A single airplane
15license shall be required of an airline company if liquor
16service is provided on board aircraft in this State. The annual
17fee for such license shall be as determined in Section 5-3.
18    (k) A foreign importer's license shall permit such licensee
19to purchase alcoholic liquor from Illinois licensed
20non-resident dealers only, and to import alcoholic liquor other
21than in bulk from any point outside the United States and to
22sell such alcoholic liquor to Illinois licensed importing
23distributors and to no one else in Illinois; provided that (i)
24the foreign importer registers with the State Commission every
25brand of alcoholic liquor that it proposes to sell to Illinois
26licensees during the license period, (ii) the foreign importer

 

 

10000HB2498ham001- 482 -LRB100 03891 MJP 22700 a

1complies with all of the provisions of Section 6-9 of this Act
2with respect to registration of such Illinois licensees as may
3be granted the right to sell such brands at wholesale, and
4(iii) the foreign importer complies with the provisions of
5Sections 6-5 and 6-6 of this Act to the same extent that these
6provisions apply to manufacturers.
7    (l) (i) A broker's license shall be required of all persons
8who solicit orders for, offer to sell or offer to supply
9alcoholic liquor to retailers in the State of Illinois, or who
10offer to retailers to ship or cause to be shipped or to make
11contact with distillers, rectifiers, brewers or manufacturers
12or any other party within or without the State of Illinois in
13order that alcoholic liquors be shipped to a distributor,
14importing distributor or foreign importer, whether such
15solicitation or offer is consummated within or without the
16State of Illinois.
17    No holder of a retailer's license issued by the Illinois
18Liquor Control Commission shall purchase or receive any
19alcoholic liquor, the order for which was solicited or offered
20for sale to such retailer by a broker unless the broker is the
21holder of a valid broker's license.
22    The broker shall, upon the acceptance by a retailer of the
23broker's solicitation of an order or offer to sell or supply or
24deliver or have delivered alcoholic liquors, promptly forward
25to the Illinois Liquor Control Commission a notification of
26said transaction in such form as the Commission may by

 

 

10000HB2498ham001- 483 -LRB100 03891 MJP 22700 a

1regulations prescribe.
2    (ii) A broker's license shall be required of a person
3within this State, other than a retail licensee, who, for a fee
4or commission, promotes, solicits, or accepts orders for
5alcoholic liquor, for use or consumption and not for resale, to
6be shipped from this State and delivered to residents outside
7of this State by an express company, common carrier, or
8contract carrier. This Section does not apply to any person who
9promotes, solicits, or accepts orders for wine as specifically
10authorized in Section 6-29 of this Act.
11    A broker's license under this subsection (l) shall not
12entitle the holder to buy or sell any alcoholic liquors for his
13own account or to take or deliver title to such alcoholic
14liquors.
15    This subsection (l) shall not apply to distributors,
16employees of distributors, or employees of a manufacturer who
17has registered the trademark, brand or name of the alcoholic
18liquor pursuant to Section 6-9 of this Act, and who regularly
19sells such alcoholic liquor in the State of Illinois only to
20its registrants thereunder.
21    Any agent, representative, or person subject to
22registration pursuant to subsection (a-1) of this Section shall
23not be eligible to receive a broker's license.
24    (m) A non-resident dealer's license shall permit such
25licensee to ship into and warehouse alcoholic liquor into this
26State from any point outside of this State, and to sell such

 

 

10000HB2498ham001- 484 -LRB100 03891 MJP 22700 a

1alcoholic liquor to Illinois licensed foreign importers and
2importing distributors and to no one else in this State;
3provided that (i) said non-resident dealer shall register with
4the Illinois Liquor Control Commission each and every brand of
5alcoholic liquor which it proposes to sell to Illinois
6licensees during the license period, (ii) it shall comply with
7all of the provisions of Section 6-9 hereof with respect to
8registration of such Illinois licensees as may be granted the
9right to sell such brands at wholesale, and (iii) the
10non-resident dealer shall comply with the provisions of
11Sections 6-5 and 6-6 of this Act to the same extent that these
12provisions apply to manufacturers. No person licensed as a
13non-resident dealer shall be granted a distributor's or
14importing distributor's license.
15    (n) A brew pub license shall allow the licensee to only (i)
16manufacture up to 155,000 gallons of beer per year only on the
17premises specified in the license, (ii) make sales of the beer
18manufactured on the premises or, with the approval of the
19Commission, beer manufactured on another brew pub licensed
20premises that is wholly owned and operated by the same licensee
21to importing distributors, distributors, and to non-licensees
22for use and consumption, (iii) store the beer upon the
23premises, (iv) sell and offer for sale at retail from the
24licensed premises for off-premises consumption no more than
25155,000 gallons per year so long as such sales are only made
26in-person, (v) sell and offer for sale at retail for use and

 

 

10000HB2498ham001- 485 -LRB100 03891 MJP 22700 a

1consumption on the premises specified in the license any form
2of alcoholic liquor purchased from a licensed distributor or
3importing distributor, and (vi) with the prior approval of the
4Commission, annually transfer no more than 155,000 gallons of
5beer manufactured on the premises to a licensed brew pub wholly
6owned and operated by the same licensee.
7    A brew pub licensee shall not under any circumstance sell
8or offer for sale beer manufactured by the brew pub licensee to
9retail licensees.
10    A person who holds a class 2 brewer license may
11simultaneously hold a brew pub license if the class 2 brewer
12(i) does not, under any circumstance, sell or offer for sale
13beer manufactured by the class 2 brewer to retail licensees;
14(ii) does not hold more than 3 brew pub licenses in this State;
15(iii) does not manufacture more than a combined 3,720,000
16gallons of beer per year, including the beer manufactured at
17the brew pub; and (iv) is not a member of or affiliated with,
18directly or indirectly, a manufacturer that produces more than
193,720,000 gallons of beer per year or any other alcoholic
20liquor.
21    Notwithstanding any other provision of this Act, a licensed
22brewer, class 2 brewer, or non-resident dealer who before July
231, 2015 manufactured less than 3,720,000 gallons of beer per
24year and held a brew pub license on or before July 1, 2015 may
25(i) continue to qualify for and hold that brew pub license for
26the licensed premises and (ii) manufacture more than 3,720,000

 

 

10000HB2498ham001- 486 -LRB100 03891 MJP 22700 a

1gallons of beer per year and continue to qualify for and hold
2that brew pub license if that brewer, class 2 brewer, or
3non-resident dealer does not simultaneously hold a class 1
4brewer license and is not a member of or affiliated with,
5directly or indirectly, a manufacturer that produces more than
63,720,000 gallons of beer per year or that produces any other
7alcoholic liquor.
8    (o) A caterer retailer license shall allow the holder to
9serve alcoholic liquors as an incidental part of a food service
10that serves prepared meals which excludes the serving of snacks
11as the primary meal, either on or off-site whether licensed or
12unlicensed.
13    (p) An auction liquor license shall allow the licensee to
14sell and offer for sale at auction wine and spirits for use or
15consumption, or for resale by an Illinois liquor licensee in
16accordance with provisions of this Act. An auction liquor
17license will be issued to a person and it will permit the
18auction liquor licensee to hold the auction anywhere in the
19State. An auction liquor license must be obtained for each
20auction at least 14 days in advance of the auction date.
21    (q) A special use permit license shall allow an Illinois
22licensed retailer to transfer a portion of its alcoholic liquor
23inventory from its retail licensed premises to the premises
24specified in the license hereby created, and to sell or offer
25for sale at retail, only in the premises specified in the
26license hereby created, the transferred alcoholic liquor for

 

 

10000HB2498ham001- 487 -LRB100 03891 MJP 22700 a

1use or consumption, but not for resale in any form. A special
2use permit license may be granted for the following time
3periods: one day or less; 2 or more days to a maximum of 15 days
4per location in any 12-month 12 month period. An applicant for
5the special use permit license must also submit with the
6application proof satisfactory to the State Commission that the
7applicant will provide dram shop liability insurance to the
8maximum limits and have local authority approval.
9    (r) A winery shipper's license shall allow a person with a
10first-class or second-class wine manufacturer's license, a
11first-class or second-class wine-maker's license, or a limited
12wine manufacturer's license or who is licensed to make wine
13under the laws of another state to ship wine made by that
14licensee directly to a resident of this State who is 21 years
15of age or older for that resident's personal use and not for
16resale. Prior to receiving a winery shipper's license, an
17applicant for the license must provide the Commission with a
18true copy of its current license in any state in which it is
19licensed as a manufacturer of wine. An applicant for a winery
20shipper's license must also complete an application form that
21provides any other information the Commission deems necessary.
22The application form shall include all addresses from which the
23applicant for a winery shipper's license intends to ship wine,
24including the name and address of any third party, except for a
25common carrier, authorized to ship wine on behalf of the
26manufacturer. The application form shall include an

 

 

10000HB2498ham001- 488 -LRB100 03891 MJP 22700 a

1acknowledgement consenting to the jurisdiction of the
2Commission, the Illinois Department of Revenue, and the courts
3of this State concerning the enforcement of this Act and any
4related laws, rules, and regulations, including authorizing
5the Department of Revenue and the Commission to conduct audits
6for the purpose of ensuring compliance with Public Act 95-634,
7and an acknowledgement that the wine manufacturer is in
8compliance with Section 6-2 of this Act. Any third party,
9except for a common carrier, authorized to ship wine on behalf
10of a first-class or second-class wine manufacturer's licensee,
11a first-class or second-class wine-maker's licensee, a limited
12wine manufacturer's licensee, or a person who is licensed to
13make wine under the laws of another state shall also be
14disclosed by the winery shipper's licensee, and a copy of the
15written appointment of the third-party wine provider, except
16for a common carrier, to the wine manufacturer shall be filed
17with the State Commission as a supplement to the winery
18shipper's license application or any renewal thereof. The
19winery shipper's license holder shall affirm under penalty of
20perjury, as part of the winery shipper's license application or
21renewal, that he or she only ships wine, either directly or
22indirectly through a third-party provider, from the licensee's
23own production.
24    Except for a common carrier, a third-party provider
25shipping wine on behalf of a winery shipper's license holder is
26the agent of the winery shipper's license holder and, as such,

 

 

10000HB2498ham001- 489 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 490 -LRB100 03891 MJP 22700 a

1by the licensee and shipped to persons in this State. If a
2licensee fails to remit the tax imposed under this Act in
3accordance with the provisions of Article VIII of this Act, the
4winery shipper's license shall be revoked in accordance with
5the provisions of Article VII of this Act. If a licensee fails
6to properly register and remit tax under the Use Tax Act or the
7Retailers' Occupation Tax Act for all wine that is sold by the
8winery shipper and shipped to persons in this State, the winery
9shipper's license shall be revoked in accordance with the
10provisions of Article VII of this Act.
11    A winery shipper licensee must collect, maintain, and
12submit to the Commission on a semi-annual basis the total
13number of cases per resident of wine shipped to residents of
14this State. A winery shipper licensed under this subsection (r)
15must comply with the requirements of Section 6-29 of this Act.
16    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
17Section 3-12, the State Commission may receive, respond to, and
18investigate any complaint and impose any of the remedies
19specified in paragraph (1) of subsection (a) of Section 3-12.
20    (s) A craft distiller tasting permit license shall allow an
21Illinois licensed craft distiller to transfer a portion of its
22alcoholic liquor inventory from its craft distiller licensed
23premises to the premises specified in the license hereby
24created and to conduct a sampling, only in the premises
25specified in the license hereby created, of the transferred
26alcoholic liquor in accordance with subsection (c) of Section

 

 

10000HB2498ham001- 491 -LRB100 03891 MJP 22700 a

16-31 of this Act. The transferred alcoholic liquor may not be
2sold or resold in any form. An applicant for the craft
3distiller tasting permit license must also submit with the
4application proof satisfactory to the State Commission that the
5applicant will provide dram shop liability insurance to the
6maximum limits and have local authority approval.
7(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
898-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
97-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
10eff. 1-1-17; revised 9-15-16.)
 
11    (235 ILCS 5/6-30)  (from Ch. 43, par. 144f)
12    Sec. 6-30. Notwithstanding any other provision of this Act,
13the Illinois Gaming Board shall have exclusive authority to
14establish the hours for sale and consumption of alcoholic
15liquor on board a riverboat during riverboat gambling
16excursions and in a casino conducted in accordance with the
17Illinois Riverboat Gambling Act.
18(Source: P.A. 87-826.)
 
19    Section 90-46. The Illinois Public Aid Code is amended by
20changing Section 10-17.15 as follows:
 
21    (305 ILCS 5/10-17.15)
22    Sec. 10-17.15. Certification of information to State
23gaming licensees.

 

 

10000HB2498ham001- 492 -LRB100 03891 MJP 22700 a

1    (a) For purposes of this Section, "State gaming licensee"
2means, as applicable, an organization licensee or advance
3deposit wagering licensee licensed under the Illinois Horse
4Racing Act of 1975, an owners licensee licensed under the
5Illinois Riverboat Gambling Act, or a licensee that operates,
6under any law of this State, one or more facilities or gaming
7locations at which lawful gambling is authorized and licensed
8as provided in the Illinois Riverboat Gambling Act.
9    (b) The Department may provide, by rule, for certification
10to any State gaming licensee of past due child support owed by
11a responsible relative under a support order entered by a court
12or administrative body of this or any other State on behalf of
13a resident or non-resident receiving child support services
14under this Article in accordance with the requirements of Title
15IV-D, Part D, of the Social Security Act. The State gaming
16licensee shall have the ability to withhold from winnings
17required to be reported to the Internal Revenue Service on Form
18W-2G, up to the full amount of winnings necessary to pay the
19winner's past due child support. The rule shall provide for
20notice to and an opportunity to be heard by each responsible
21relative affected and any final administrative decision
22rendered by the Department shall be reviewed only under and in
23accordance with the Administrative Review Law.
24    (c) For withholding of winnings, the State gaming licensee
25shall be entitled to an administrative fee not to exceed the
26lesser of 4% of the total amount of cash winnings paid to the

 

 

10000HB2498ham001- 493 -LRB100 03891 MJP 22700 a

1gambling winner or $150.
2    (d) In no event may the total amount withheld from the cash
3payout, including the administrative fee, exceed the total cash
4winnings claimed by the obligor. If the cash payout claimed is
5greater than the amount sufficient to satisfy the obligor's
6delinquent child support payments, the State gaming licensee
7shall pay the obligor the remaining balance of the payout, less
8the administrative fee authorized by subsection (c) of this
9Section, at the time it is claimed.
10    (e) A State gaming licensee who in good faith complies with
11the requirements of this Section shall not be liable to the
12gaming winner or any other individual or entity.
13(Source: P.A. 98-318, eff. 8-12-13.)
 
14    Section 90-47. The Firearm Concealed Carry Act is amended
15by changing Section 65 as follows:
 
16    (430 ILCS 66/65)
17    Sec. 65. Prohibited areas.
18    (a) A licensee under this Act shall not knowingly carry a
19firearm on or into:
20        (1) Any building, real property, and parking area under
21    the control of a public or private elementary or secondary
22    school.
23        (2) Any building, real property, and parking area under
24    the control of a pre-school or child care facility,

 

 

10000HB2498ham001- 494 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 495 -LRB100 03891 MJP 22700 a

1    correctional institution, prison, or jail.
2        (7) Any building, real property, and parking area under
3    the control of a public or private hospital or hospital
4    affiliate, mental health facility, or nursing home.
5        (8) Any bus, train, or form of transportation paid for
6    in whole or in part with public funds, and any building,
7    real property, and parking area under the control of a
8    public transportation facility paid for in whole or in part
9    with public funds.
10        (9) Any building, real property, and parking area under
11    the control of an establishment that serves alcohol on its
12    premises, if more than 50% of the establishment's gross
13    receipts within the prior 3 months is from the sale of
14    alcohol. The owner of an establishment who knowingly fails
15    to prohibit concealed firearms on its premises as provided
16    in this paragraph or who knowingly makes a false statement
17    or record to avoid the prohibition on concealed firearms
18    under this paragraph is subject to the penalty under
19    subsection (c-5) of Section 10-1 of the Liquor Control Act
20    of 1934.
21        (10) Any public gathering or special event conducted on
22    property open to the public that requires the issuance of a
23    permit from the unit of local government, provided this
24    prohibition shall not apply to a licensee who must walk
25    through a public gathering in order to access his or her
26    residence, place of business, or vehicle.

 

 

10000HB2498ham001- 496 -LRB100 03891 MJP 22700 a

1        (11) Any building or real property that has been issued
2    a Special Event Retailer's license as defined in Section
3    1-3.17.1 of the Liquor Control Act during the time
4    designated for the sale of alcohol by the Special Event
5    Retailer's license, or a Special use permit license as
6    defined in subsection (q) of Section 5-1 of the Liquor
7    Control Act during the time designated for the sale of
8    alcohol by the Special use permit license.
9        (12) Any public playground.
10        (13) Any public park, athletic area, or athletic
11    facility under the control of a municipality or park
12    district, provided nothing in this Section shall prohibit a
13    licensee from carrying a concealed firearm while on a trail
14    or bikeway if only a portion of the trail or bikeway
15    includes a public park.
16        (14) Any real property under the control of the Cook
17    County Forest Preserve District.
18        (15) Any building, classroom, laboratory, medical
19    clinic, hospital, artistic venue, athletic venue,
20    entertainment venue, officially recognized
21    university-related organization property, whether owned or
22    leased, and any real property, including parking areas,
23    sidewalks, and common areas under the control of a public
24    or private community college, college, or university.
25        (16) Any building, real property, or parking area under
26    the control of a gaming facility licensed under the

 

 

10000HB2498ham001- 497 -LRB100 03891 MJP 22700 a

1    Illinois Riverboat Gambling Act or the Illinois Horse
2    Racing Act of 1975, including an inter-track wagering
3    location licensee.
4        (17) Any stadium, arena, or the real property or
5    parking area under the control of a stadium, arena, or any
6    collegiate or professional sporting event.
7        (18) Any building, real property, or parking area under
8    the control of a public library.
9        (19) Any building, real property, or parking area under
10    the control of an airport.
11        (20) Any building, real property, or parking area under
12    the control of an amusement park.
13        (21) Any building, real property, or parking area under
14    the control of a zoo or museum.
15        (22) Any street, driveway, parking area, property,
16    building, or facility, owned, leased, controlled, or used
17    by a nuclear energy, storage, weapons, or development site
18    or facility regulated by the federal Nuclear Regulatory
19    Commission. The licensee shall not under any circumstance
20    store a firearm or ammunition in his or her vehicle or in a
21    compartment or container within a vehicle located anywhere
22    in or on the street, driveway, parking area, property,
23    building, or facility described in this paragraph.
24        (23) Any area where firearms are prohibited under
25    federal law.
26    (a-5) Nothing in this Act shall prohibit a public or

 

 

10000HB2498ham001- 498 -LRB100 03891 MJP 22700 a

1private community college, college, or university from:
2        (1) prohibiting persons from carrying a firearm within
3    a vehicle owned, leased, or controlled by the college or
4    university;
5        (2) developing resolutions, regulations, or policies
6    regarding student, employee, or visitor misconduct and
7    discipline, including suspension and expulsion;
8        (3) developing resolutions, regulations, or policies
9    regarding the storage or maintenance of firearms, which
10    must include designated areas where persons can park
11    vehicles that carry firearms; and
12        (4) permitting the carrying or use of firearms for the
13    purpose of instruction and curriculum of officially
14    recognized programs, including but not limited to military
15    science and law enforcement training programs, or in any
16    designated area used for hunting purposes or target
17    shooting.
18    (a-10) The owner of private real property of any type may
19prohibit the carrying of concealed firearms on the property
20under his or her control. The owner must post a sign in
21accordance with subsection (d) of this Section indicating that
22firearms are prohibited on the property, unless the property is
23a private residence.
24    (b) Notwithstanding subsections (a), (a-5), and (a-10) of
25this Section except under paragraph (22) or (23) of subsection
26(a), any licensee prohibited from carrying a concealed firearm

 

 

10000HB2498ham001- 499 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 500 -LRB100 03891 MJP 22700 a

1premises is a private residence. Signs shall be of a uniform
2design as established by the Department and shall be 4 inches
3by 6 inches in size. The Department shall adopt rules for
4standardized signs to be used under this subsection.
5(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
 
6    Section 90-50. The Criminal Code of 2012 is amended by
7changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
8follows:
 
9    (720 ILCS 5/28-1)  (from Ch. 38, par. 28-1)
10    Sec. 28-1. Gambling.
11    (a) A person commits gambling when he or she:
12        (1) knowingly plays a game of chance or skill for money
13    or other thing of value, unless excepted in subsection (b)
14    of this Section;
15        (2) knowingly makes a wager upon the result of any
16    game, contest, or any political nomination, appointment or
17    election;
18        (3) knowingly operates, keeps, owns, uses, purchases,
19    exhibits, rents, sells, bargains for the sale or lease of,
20    manufactures or distributes any gambling device;
21        (4) contracts to have or give himself or herself or
22    another the option to buy or sell, or contracts to buy or
23    sell, at a future time, any grain or other commodity
24    whatsoever, or any stock or security of any company, where

 

 

10000HB2498ham001- 501 -LRB100 03891 MJP 22700 a

1    it is at the time of making such contract intended by both
2    parties thereto that the contract to buy or sell, or the
3    option, whenever exercised, or the contract resulting
4    therefrom, shall be settled, not by the receipt or delivery
5    of such property, but by the payment only of differences in
6    prices thereof; however, the issuance, purchase, sale,
7    exercise, endorsement or guarantee, by or through a person
8    registered with the Secretary of State pursuant to Section
9    8 of the Illinois Securities Law of 1953, or by or through
10    a person exempt from such registration under said Section
11    8, of a put, call, or other option to buy or sell
12    securities which have been registered with the Secretary of
13    State or which are exempt from such registration under
14    Section 3 of the Illinois Securities Law of 1953 is not
15    gambling within the meaning of this paragraph (4);
16        (5) knowingly owns or possesses any book, instrument or
17    apparatus by means of which bets or wagers have been, or
18    are, recorded or registered, or knowingly possesses any
19    money which he has received in the course of a bet or
20    wager;
21        (6) knowingly sells pools upon the result of any game
22    or contest of skill or chance, political nomination,
23    appointment or election;
24        (7) knowingly sets up or promotes any lottery or sells,
25    offers to sell or transfers any ticket or share for any
26    lottery;

 

 

10000HB2498ham001- 502 -LRB100 03891 MJP 22700 a

1        (8) knowingly sets up or promotes any policy game or
2    sells, offers to sell or knowingly possesses or transfers
3    any policy ticket, slip, record, document or other similar
4    device;
5        (9) knowingly drafts, prints or publishes any lottery
6    ticket or share, or any policy ticket, slip, record,
7    document or similar device, except for such activity
8    related to lotteries, bingo games and raffles authorized by
9    and conducted in accordance with the laws of Illinois or
10    any other state or foreign government;
11        (10) knowingly advertises any lottery or policy game,
12    except for such activity related to lotteries, bingo games
13    and raffles authorized by and conducted in accordance with
14    the laws of Illinois or any other state;
15        (11) knowingly transmits information as to wagers,
16    betting odds, or changes in betting odds by telephone,
17    telegraph, radio, semaphore or similar means; or knowingly
18    installs or maintains equipment for the transmission or
19    receipt of such information; except that nothing in this
20    subdivision (11) prohibits transmission or receipt of such
21    information for use in news reporting of sporting events or
22    contests; or
23        (12) knowingly establishes, maintains, or operates an
24    Internet site that permits a person to play a game of
25    chance or skill for money or other thing of value by means
26    of the Internet or to make a wager upon the result of any

 

 

10000HB2498ham001- 503 -LRB100 03891 MJP 22700 a

1    game, contest, political nomination, appointment, or
2    election by means of the Internet. This item (12) does not
3    apply to activities referenced in items (6) and (6.1) of
4    subsection (b) of this Section.
5    (b) Participants in any of the following activities shall
6not be convicted of gambling:
7        (1) Agreements to compensate for loss caused by the
8    happening of chance including without limitation contracts
9    of indemnity or guaranty and life or health or accident
10    insurance.
11        (2) Offers of prizes, award or compensation to the
12    actual contestants in any bona fide contest for the
13    determination of skill, speed, strength or endurance or to
14    the owners of animals or vehicles entered in such contest.
15        (3) Pari-mutuel betting as authorized by the law of
16    this State.
17        (4) Manufacture of gambling devices, including the
18    acquisition of essential parts therefor and the assembly
19    thereof, for transportation in interstate or foreign
20    commerce to any place outside this State when such
21    transportation is not prohibited by any applicable Federal
22    law; or the manufacture, distribution, or possession of
23    video gaming terminals, as defined in the Video Gaming Act,
24    by manufacturers, distributors, and terminal operators
25    licensed to do so under the Video Gaming Act.
26        (5) The game commonly known as "bingo", when conducted

 

 

10000HB2498ham001- 504 -LRB100 03891 MJP 22700 a

1    in accordance with the Bingo License and Tax Act.
2        (6) Lotteries when conducted by the State of Illinois
3    in accordance with the Illinois Lottery Law. This exemption
4    includes any activity conducted by the Department of
5    Revenue to sell lottery tickets pursuant to the provisions
6    of the Illinois Lottery Law and its rules.
7        (6.1) The purchase of lottery tickets through the
8    Internet for a lottery conducted by the State of Illinois
9    under the program established in Section 7.12 of the
10    Illinois Lottery Law.
11        (7) Possession of an antique slot machine that is
12    neither used nor intended to be used in the operation or
13    promotion of any unlawful gambling activity or enterprise.
14    For the purpose of this subparagraph (b)(7), an antique
15    slot machine is one manufactured 25 years ago or earlier.
16        (8) Raffles and poker runs when conducted in accordance
17    with the Raffles and Poker Runs Act.
18        (9) Charitable games when conducted in accordance with
19    the Charitable Games Act.
20        (10) Pull tabs and jar games when conducted under the
21    Illinois Pull Tabs and Jar Games Act.
22        (11) Gambling games conducted on riverboats when
23    authorized by the Illinois Riverboat Gambling Act.
24        (12) Video gaming terminal games at a licensed
25    establishment, licensed truck stop establishment, licensed
26    fraternal establishment, or licensed veterans

 

 

10000HB2498ham001- 505 -LRB100 03891 MJP 22700 a

1    establishment when conducted in accordance with the Video
2    Gaming Act.
3        (13) Games of skill or chance where money or other
4    things of value can be won but no payment or purchase is
5    required to participate.
6        (14) Savings promotion raffles authorized under
7    Section 5g of the Illinois Banking Act, Section 7008 of the
8    Savings Bank Act, Section 42.7 of the Illinois Credit Union
9    Act, Section 5136B of the National Bank Act (12 U.S.C.
10    25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
11    1463).
12    (c) Sentence.
13    Gambling is a Class A misdemeanor. A second or subsequent
14conviction under subsections (a)(3) through (a)(12), is a Class
154 felony.
16    (d) Circumstantial evidence.
17    In prosecutions under this Section circumstantial evidence
18shall have the same validity and weight as in any criminal
19prosecution.
20(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
21    (720 ILCS 5/28-1.1)   (from Ch. 38, par. 28-1.1)
22    Sec. 28-1.1. Syndicated gambling.
23    (a) Declaration of Purpose. Recognizing the close
24relationship between professional gambling and other organized
25crime, it is declared to be the policy of the legislature to

 

 

10000HB2498ham001- 506 -LRB100 03891 MJP 22700 a

1restrain persons from engaging in the business of gambling for
2profit in this State. This Section shall be liberally construed
3and administered with a view to carrying out this policy.
4    (b) A person commits syndicated gambling when he or she
5operates a "policy game" or engages in the business of
6bookmaking.
7    (c) A person "operates a policy game" when he or she
8knowingly uses any premises or property for the purpose of
9receiving or knowingly does receive from what is commonly
10called "policy":
11        (1) money from a person other than the bettor or player
12    whose bets or plays are represented by the money; or
13        (2) written "policy game" records, made or used over
14    any period of time, from a person other than the bettor or
15    player whose bets or plays are represented by the written
16    record.
17    (d) A person engages in bookmaking when he or she knowingly
18receives or accepts more than five bets or wagers upon the
19result of any trials or contests of skill, speed or power of
20endurance or upon any lot, chance, casualty, unknown or
21contingent event whatsoever, which bets or wagers shall be of
22such size that the total of the amounts of money paid or
23promised to be paid to the bookmaker on account thereof shall
24exceed $2,000. Bookmaking is the receiving or accepting of bets
25or wagers regardless of the form or manner in which the
26bookmaker records them.

 

 

10000HB2498ham001- 507 -LRB100 03891 MJP 22700 a

1    (e) Participants in any of the following activities shall
2not be convicted of syndicated gambling:
3        (1) Agreements to compensate for loss caused by the
4    happening of chance including without limitation contracts
5    of indemnity or guaranty and life or health or accident
6    insurance;
7        (2) Offers of prizes, award or compensation to the
8    actual contestants in any bona fide contest for the
9    determination of skill, speed, strength or endurance or to
10    the owners of animals or vehicles entered in the contest;
11        (3) Pari-mutuel betting as authorized by law of this
12    State;
13        (4) Manufacture of gambling devices, including the
14    acquisition of essential parts therefor and the assembly
15    thereof, for transportation in interstate or foreign
16    commerce to any place outside this State when the
17    transportation is not prohibited by any applicable Federal
18    law;
19        (5) Raffles and poker runs when conducted in accordance
20    with the Raffles and Poker Runs Act;
21        (6) Gambling games conducted on riverboats, in
22    casinos, or at electronic gaming facilities when
23    authorized by the Illinois Riverboat Gambling Act;
24        (7) Video gaming terminal games at a licensed
25    establishment, licensed truck stop establishment, licensed
26    fraternal establishment, or licensed veterans

 

 

10000HB2498ham001- 508 -LRB100 03891 MJP 22700 a

1    establishment when conducted in accordance with the Video
2    Gaming Act; and
3        (8) Savings promotion raffles authorized under Section
4    5g of the Illinois Banking Act, Section 7008 of the Savings
5    Bank Act, Section 42.7 of the Illinois Credit Union Act,
6    Section 5136B of the National Bank Act (12 U.S.C. 25a), or
7    Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
8    (f) Sentence. Syndicated gambling is a Class 3 felony.
9(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
 
10    (720 ILCS 5/28-3)   (from Ch. 38, par. 28-3)
11    Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
12any real estate, vehicle, boat or any other property whatsoever
13used for the purposes of gambling other than gambling conducted
14in the manner authorized by the Illinois Riverboat Gambling Act
15or the Video Gaming Act. Any person who knowingly permits any
16premises or property owned or occupied by him or under his
17control to be used as a gambling place commits a Class A
18misdemeanor. Each subsequent offense is a Class 4 felony. When
19any premises is determined by the circuit court to be a
20gambling place:
21    (a) Such premises is a public nuisance and may be proceeded
22against as such, and
23    (b) All licenses, permits or certificates issued by the
24State of Illinois or any subdivision or public agency thereof
25authorizing the serving of food or liquor on such premises

 

 

10000HB2498ham001- 509 -LRB100 03891 MJP 22700 a

1shall be void; and no license, permit or certificate so
2cancelled shall be reissued for such premises for a period of
360 days thereafter; nor shall any person convicted of keeping a
4gambling place be reissued such license for one year from his
5conviction and, after a second conviction of keeping a gambling
6place, any such person shall not be reissued such license, and
7    (c) Such premises of any person who knowingly permits
8thereon a violation of any Section of this Article shall be
9held liable for, and may be sold to pay any unsatisfied
10judgment that may be recovered and any unsatisfied fine that
11may be levied under any Section of this Article.
12(Source: P.A. 96-34, eff. 7-13-09.)
 
13    (720 ILCS 5/28-5)  (from Ch. 38, par. 28-5)
14    Sec. 28-5. Seizure of gambling devices and gambling funds.
15    (a) Every device designed for gambling which is incapable
16of lawful use or every device used unlawfully for gambling
17shall be considered a "gambling device", and shall be subject
18to seizure, confiscation and destruction by the Department of
19State Police or by any municipal, or other local authority,
20within whose jurisdiction the same may be found. As used in
21this Section, a "gambling device" includes any slot machine,
22and includes any machine or device constructed for the
23reception of money or other thing of value and so constructed
24as to return, or to cause someone to return, on chance to the
25player thereof money, property or a right to receive money or

 

 

10000HB2498ham001- 510 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 511 -LRB100 03891 MJP 22700 a

1seized property was a gambling device at the time of seizure,
2an order of forfeiture and disposition of the seized property
3shall be entered: a gambling device shall be received by the
4State's Attorney, who shall effect its destruction, except that
5valuable parts thereof may be liquidated and the resultant
6money shall be deposited in the general fund of the county
7wherein such seizure occurred; money and other things of value
8shall be received by the State's Attorney and, upon
9liquidation, shall be deposited in the general fund of the
10county wherein such seizure occurred. However, in the event
11that a defendant raises the defense that the seized slot
12machine is an antique slot machine described in subparagraph
13(b) (7) of Section 28-1 of this Code and therefore he is exempt
14from the charge of a gambling activity participant, the seized
15antique slot machine shall not be destroyed or otherwise
16altered until a final determination is made by the Court as to
17whether it is such an antique slot machine. Upon a final
18determination by the Court of this question in favor of the
19defendant, such slot machine shall be immediately returned to
20the defendant. Such order of forfeiture and disposition shall,
21for the purposes of appeal, be a final order and judgment in a
22civil proceeding.
23    (d) If a seizure pursuant to subparagraph (b) of this
24Section is not followed by a charge pursuant to subparagraph
25(c) of this Section, or if the prosecution of such charge is
26permanently terminated or indefinitely discontinued without

 

 

10000HB2498ham001- 512 -LRB100 03891 MJP 22700 a

1any judgment of conviction or acquittal (1) the State's
2Attorney shall commence an in rem proceeding for the forfeiture
3and destruction of a gambling device, or for the forfeiture and
4deposit in the general fund of the county of any seized money
5or other things of value, or both, in the circuit court and (2)
6any person having any property interest in such seized gambling
7device, money or other thing of value may commence separate
8civil proceedings in the manner provided by law.
9    (e) Any gambling device displayed for sale to a riverboat
10gambling operation, casino gambling operation, or electronic
11gaming facility or used to train occupational licensees of a
12riverboat gambling operation, casino gambling operation, or
13electronic gaming facility as authorized under the Illinois
14Riverboat Gambling Act is exempt from seizure under this
15Section.
16    (f) Any gambling equipment, devices and supplies provided
17by a licensed supplier in accordance with the Illinois
18Riverboat Gambling Act which are removed from a the riverboat,
19casino, or electronic gaming facility for repair are exempt
20from seizure under this Section.
21    (g) The following video gaming terminals are exempt from
22seizure under this Section:
23        (1) Video gaming terminals for sale to a licensed
24    distributor or operator under the Video Gaming Act.
25        (2) Video gaming terminals used to train licensed
26    technicians or licensed terminal handlers.

 

 

10000HB2498ham001- 513 -LRB100 03891 MJP 22700 a

1        (3) Video gaming terminals that are removed from a
2    licensed establishment, licensed truck stop establishment,
3    licensed fraternal establishment, or licensed veterans
4    establishment for repair.
5(Source: P.A. 98-31, eff. 6-24-13.)
 
6    (720 ILCS 5/28-7)   (from Ch. 38, par. 28-7)
7    Sec. 28-7. Gambling contracts void.
8    (a) All promises, notes, bills, bonds, covenants,
9contracts, agreements, judgments, mortgages, or other
10securities or conveyances made, given, granted, drawn, or
11entered into, or executed by any person whatsoever, where the
12whole or any part of the consideration thereof is for any money
13or thing of value, won or obtained in violation of any Section
14of this Article are null and void.
15    (b) Any obligation void under this Section may be set aside
16and vacated by any court of competent jurisdiction, upon a
17complaint filed for that purpose, by the person so granting,
18giving, entering into, or executing the same, or by his
19executors or administrators, or by any creditor, heir, legatee,
20purchaser or other person interested therein; or if a judgment,
21the same may be set aside on motion of any person stated above,
22on due notice thereof given.
23    (c) No assignment of any obligation void under this Section
24may in any manner affect the defense of the person giving,
25granting, drawing, entering into or executing such obligation,

 

 

10000HB2498ham001- 514 -LRB100 03891 MJP 22700 a

1or the remedies of any person interested therein.
2    (d) This Section shall not prevent a licensed owner of a
3riverboat gambling operation, casino gambling operation, or an
4electronic gaming licensee under the Illinois Gambling Act and
5the Illinois Horse Racing Act of 1975 from instituting a cause
6of action to collect any amount due and owing under an
7extension of credit to a riverboat gambling patron as
8authorized under Section 11.1 of the Illinois Riverboat
9Gambling Act.
10(Source: P.A. 87-826.)
 
11    Section 90-55. The Eminent Domain Act is amended by adding
12Section 15-5-48 as follows:
 
13    (735 ILCS 30/15-5-48 new)
14    Sec. 15-5-48. Eminent domain powers in new Acts. The
15following provisions of law may include express grants of the
16power to acquire property by condemnation or eminent domain:
 
17    Chicago Casino Development Authority Act; City of Chicago; for
18    the purposes of the Act.
 
19    Section 90-60. The Payday Loan Reform Act is amended by
20changing Section 3-5 as follows:
 
21    (815 ILCS 122/3-5)

 

 

10000HB2498ham001- 515 -LRB100 03891 MJP 22700 a

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

 

 

10000HB2498ham001- 516 -LRB100 03891 MJP 22700 a

1as if served on the licensee. A copy of the written
2appointment, duly certified, shall be filed in the office of
3the Secretary, and a copy thereof certified by the Secretary
4shall be sufficient evidence to subject a licensee to
5jurisdiction in a court of law. This appointment shall remain
6in effect while any liability remains outstanding in this State
7against the licensee. When summons is served upon the Secretary
8as attorney-in-fact for a licensee, the Secretary shall
9immediately notify the licensee by registered mail, enclosing
10the summons and specifying the hour and day of service.
11    (e) A licensee must pay an annual fee of $1,000. In
12addition to the license fee, the reasonable expense of any
13examination or hearing by the Secretary under any provisions of
14this Act shall be borne by the licensee. If a licensee fails to
15renew its license by December 31, its license shall
16automatically expire; however, the Secretary, in his or her
17discretion, may reinstate an expired license upon:
18        (1) payment of the annual fee within 30 days of the
19    date of expiration; and
20        (2) proof of good cause for failure to renew.
21    (f) Not more than one place of business shall be maintained
22under the same license, but the Secretary may issue more than
23one license to the same licensee upon compliance with all the
24provisions of this Act governing issuance of a single license.
25The location, except those locations already in existence as of
26June 1, 2005, may not be within one mile of a horse race track

 

 

10000HB2498ham001- 517 -LRB100 03891 MJP 22700 a

1subject to the Illinois Horse Racing Act of 1975, within one
2mile of a facility at which gambling is conducted under the
3Illinois Riverboat Gambling Act, within one mile of the
4location at which a riverboat subject to the Illinois Riverboat
5Gambling Act docks, or within one mile of any State of Illinois
6or United States military base or naval installation.
7    (g) No licensee shall conduct the business of making loans
8under this Act within any office, suite, room, or place of
9business in which (1) any loans are offered or made under the
10Consumer Installment Loan Act other than title secured loans as
11defined in subsection (a) of Section 15 of the Consumer
12Installment Loan Act and governed by Title 38, Section 110.330
13of the Illinois Administrative Code or (2) any other business
14is solicited or engaged in unless the other business is
15licensed by the Department or, in the opinion of the Secretary,
16the other business would not be contrary to the best interests
17of consumers and is authorized by the Secretary in writing.
18    (g-5) Notwithstanding subsection (g) of this Section, a
19licensee may obtain a license under the Consumer Installment
20Loan Act (CILA) for the exclusive purpose and use of making
21title secured loans, as defined in subsection (a) of Section 15
22of CILA and governed by Title 38, Section 110.300 of the
23Illinois Administrative Code. A licensee may continue to
24service Consumer Installment Loan Act loans that were
25outstanding as of the effective date of this amendatory Act of
26the 96th General Assembly.

 

 

10000HB2498ham001- 518 -LRB100 03891 MJP 22700 a

1    (h) The Secretary shall maintain a list of licensees that
2shall be available to interested consumers and lenders and the
3public. The Secretary shall maintain a toll-free number whereby
4consumers may obtain information about licensees. The
5Secretary shall also establish a complaint process under which
6an aggrieved consumer may file a complaint against a licensee
7or non-licensee who violates any provision of this Act.
8(Source: P.A. 96-936, eff. 3-21-11.)
 
9    Section 90-65. The Travel Promotion Consumer Protection
10Act is amended by changing Section 2 as follows:
 
11    (815 ILCS 420/2)  (from Ch. 121 1/2, par. 1852)
12    Sec. 2. Definitions.
13    (a) "Travel promoter" means a person, including a tour
14operator, who sells, provides, furnishes, contracts for,
15arranges or advertises that he or she will arrange wholesale or
16retail transportation by air, land, sea or navigable stream,
17either separately or in conjunction with other services.
18"Travel promoter" does not include (1) an air carrier; (2) a
19sea carrier; (3) an officially appointed agent of an air
20carrier who is a member in good standing of the Airline
21Reporting Corporation; (4) a travel promoter who has in force
22$1,000,000 or more of liability insurance coverage for
23professional errors and omissions and a surety bond or
24equivalent surety in the amount of $100,000 or more for the

 

 

10000HB2498ham001- 519 -LRB100 03891 MJP 22700 a

1benefit of consumers in the event of a bankruptcy on the part
2of the travel promoter; or (5) a riverboat subject to
3regulation under the Illinois Riverboat Gambling Act.
4    (b) "Advertise" means to make any representation in the
5solicitation of passengers and includes communication with
6other members of the same partnership, corporation, joint
7venture, association, organization, group or other entity.
8    (c) "Passenger" means a person on whose behalf money or
9other consideration has been given or is to be given to
10another, including another member of the same partnership,
11corporation, joint venture, association, organization, group
12or other entity, for travel.
13    (d) "Ticket or voucher" means a writing or combination of
14writings which is itself good and sufficient to obtain
15transportation and other services for which the passenger has
16contracted.
17(Source: P.A. 91-357, eff. 7-29-99.)
 
18    (30 ILCS 105/5.490 rep.)
19    Section 90-70. The State Finance Act is amended by
20repealing Section 5.490.
 
21    (230 ILCS 5/54 rep.)
22    Section 90-75. The Illinois Horse Racing Act of 1975 is
23amended by repealing Section 54.
 

 

 

10000HB2498ham001- 520 -LRB100 03891 MJP 22700 a

1
ARTICLE 99.

 
2    Section 99-97. Severability. The provisions of this Act are
3severable under Section 1.31 of the Statute on Statutes.
 
4    Section 99-99. Effective date. This Act takes effect upon
5becoming law.".