HB4194 95TH GENERAL ASSEMBLY

LRB095 15068 AMC 41028 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4194

Introduced , by Rep. Lou Lang - Robert S. Molaro

SYNOPSIS AS INTRODUCED:

See Index

Creates the Chicago Casino Development Authority Act. Creates the Chicago Casino Development Authority and vests its powers in the Chicago Casino Development Board. Provides that the Board shall select casino operators to develop and operate a land-based casino in Chicago. Amends the Illinois Horse Racing Act of 1975. Makes changes concerning the Illinois Racing Board. Allows advance deposit wagering. Adds provisions concerning drug testing for horses. Makes other changes. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to provide for the conduct of electronic gaming at tracks. Makes other changes. Amends the Riverboat Gambling Act. Makes changes concerning the Illinois Gaming Board. Authorizes the issuance of an additional license to conduct riverboat gambling and a casino license to conduct casino gambling in Chicago. Contains provisions regarding the re-issuance of the 10th riverboat license. Allows the Authority to receive a casino license and requires the Authority to contract with a casino operator to conduct casino gambling within that municipality. Changes the short title to the Illinois Gambling Act and makes corresponding changes in other Acts. Provides for the conduct of electronic poker. Makes other changes. Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY	FISCAL NOTE ACT MAY APPLY	HOME RULE NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY		STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

ARTICLE 1.

Section 1-1. Short title. This Act may be cited as the Chicago Casino Development Authority Act.

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

"Authority" means the Chicago Casino Development Authority created by this Act.

"Board" means the board appointed pursuant to this Act to govern and control the Authority.

"Casino" means one temporary land-based facility and a permanent land-based facility, at each of which lawful gambling is authorized and licensed as provided in the Illinois Gambling Act.

"City" means the City of Chicago.

"Casino operator licensee" means any person or entity selected by the Authority and approved and licensed by the Gaming Board to manage and operate a casino within the City of Chicago pursuant to a casino management contract.

"Casino management contract" means a legally binding agreement between the Authority and a casino operator licensee to operate or manage a casino.

"Executive director" means the person appointed by the Board to oversee the daily operations of the Authority.

"Gaming Board" means the Illinois Gaming Board created by the Illinois Gambling Act.

"Mayor" means the Mayor of the City.

Section 1-12. Creation of the Authority. After the 5 members of the Illinois Gaming Board are appointed and qualified pursuant to this amendatory Act of the 95th General Assembly, there is hereby created a political subdivision, unit of local government with only the powers authorized by law, body politic, and municipal corporation, by the name and style of the Chicago Casino Development Authority.

Section 1-13. Duties of the Authority. It shall be the duty of the Authority, as a casino licensee under the Illinois Gambling Act, to promote, operate, and maintain a casino in the City. The Authority shall construct, equip, and maintain grounds, buildings, and facilities for that purpose. The Authority has the right to contract with a casino operator licensee and other third parties in order to fulfill its purpose. The Authority is granted all rights and powers necessary to perform such duties.

Section 1-15. Board.

(a) The governing and administrative powers of the Authority shall be vested in a body known as the Chicago Casino Development Board. The Board shall consist of 3 members appointed by the Mayor. All appointees shall be subject to background investigation and approval by the Gaming Board. One of these members shall be designated by the Mayor to serve as chairperson. All of the members appointed by the Mayor shall be residents of the City.

(b) Board members shall receive $300 for each day the Authority meets and shall be entitled to reimbursement of reasonable expenses incurred in the performance of their official duties. A Board member who serves in the office of secretary-treasurer may also receive compensation for services provided as that officer.

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

(a) The Mayor shall appoint one member of the Board for an initial term expiring July 1 of the year following approval by the Gaming Board, one member for an initial term expiring July 1 three years following approval by the Gaming Board, and one member for an initial term expiring July 1 five years following approval by the Gaming Board.

(b) All successors shall hold office for a term of 5 years from the first day of July of the year in which they are appointed, except in the case of an appointment to fill a vacancy. Each member, including the chairperson, shall hold office until the expiration of his or her term and until his or her successor is appointed and qualified. Nothing shall preclude a member from serving consecutive terms. Any member may resign from office, to take effect when a successor has been appointed and qualified. A vacancy in office shall occur in the case of a member's death or indictment, conviction, or plea of guilty to a felony. A vacancy shall be filled for the unexpired term by the Mayor with the approval of the Gaming Board.

(c) The Mayor or the Gaming Board may remove any member of the Board upon a finding of incompetence, neglect of duty, or misfeasance or malfeasance in office or for a violation of this Act. The Gaming Board may remove any member of the Board for any violation of the Illinois Gambling Act or the rules and regulations of the Gaming Board.

Section 1-25. Organization of Board; meetings. After appointment by the Mayor and approval of the Gaming Board, the Board shall organize for the transaction of business. The Board shall prescribe the time and place for meetings, the manner in which special meetings may be called, and the notice that must be given to members. All actions and meetings of the Board shall be subject to the provisions of the Open Meetings Act. Two members of the Board shall constitute a quorum. All substantive action of the Board shall be by resolution with an affirmative vote of a majority of the members.

Section 1-30. Executive director; officers.

(a) The Board shall appoint an executive director, subject to completion of a background investigation and approval by the Gaming Board, who shall be the chief executive officer of the Authority. The Board shall fix the compensation of the executive director. Subject to the general control of the Board, the executive director shall be responsible for the management of the business, properties, and employees of the Authority. The executive director shall direct the enforcement of all resolutions, rules, and regulations of the Board, and shall perform such other duties as may be prescribed from time to time by the Board. All employees and independent contractors, consultants, engineers, architects, accountants, attorneys, financial experts, construction experts and personnel, superintendents, managers, and other personnel appointed or employed pursuant to this Act shall report to the executive director. In addition to any other duties set forth in this Act, the executive director shall do all of the following:

(1) Direct and supervise the administrative affairs and activities of the Authority in accordance with its rules, regulations, and policies.

(2) Attend meetings of the Board.

(3) Keep minutes of all proceedings of the Board.

(4) Approve all accounts for salaries, per diem payments, and allowable expenses of the Board and its employees and consultants.

(5) Report and make recommendations to the Board concerning the terms and conditions of any casino management contract.

(6) Perform any other duty that the Board requires for carrying out the provisions of this Act.

(7) Devote his or her full time to the duties of the office and not hold any other office or employment.

(b) The Board may select a secretary-treasurer to hold office at the pleasure of the Board. The Board shall fix the duties of such officer.

Section 1-31. General rights and powers of the Authority. In addition to the duties and powers set forth in this Act, the Authority shall have the following rights and powers:

(1) Adopt and alter an official seal.

(2) Establish and change its fiscal year.

(3) Sue and be sued, plead and be impleaded, all in its own name, and agree to binding arbitration of any dispute to which it is a party.

(4) Adopt, amend, and repeal by-laws, rules, and regulations consistent with the furtherance of the powers and duties provided for.

(5) Maintain its principal office within the City and such other offices as the Board may designate.

(6) Select locations in the City for a temporary and a permanent casino, subject to final approval by the Gaming Board.

(7) Conduct background investigations of potential casino operator licensees, including its principals or shareholders, and Authority staff. The Authority may request the assistance of the Office of Gaming Enforcement.

(8) Employ, either as regular employees or independent contractors, consultants, engineers, architects, accountants, attorneys, financial experts, construction experts and personnel, superintendents, managers and other professional personnel, and such other personnel as may be necessary in the judgment of the Board, and fix their compensation.

(9) Own, acquire, construct, equip, lease, operate, and maintain grounds, buildings, and facilities to carry out its corporate purposes and duties.

(10) Enter into, revoke, and modify contracts, subject to final approval of the Gaming Board.

(11) Enter into a casino management contract subject to the final approval of the Gaming Board.

(12) Develop, or cause to be developed by a third party, a master plan for the design, planning, and development of a casino.

(13) Negotiate and enter into intergovernmental agreements with the State and its agencies, the City, and other unites of local government, in furtherance of the powers and duties of the Board. However, the Authority may not enter into an agreement with the State Police.

(14) Receive and disburse funds for its own corporate purposes or as otherwise specified in this Act.

(15) Borrow money from any source, public or private, for any corporate purpose, including, without limitation, working capital for its operations, reserve funds, or payment of interest, and to mortgage, pledge, or otherwise encumber the property or funds of the Authority and to contract with or engage the services of any person in connection with any financing, including financial institutions, issuers of letters of credit, or insurers and enter into reimbursement agreements with this person or entity which may be secured as if money were borrowed from the person or entity.

(16) Issue bonds as provided for under this Act.

(17) Receive and accept from any source, private or public, contributions, gifts, or grants of money or property to the Authority.

(18) Provide for the insurance of any property, operations, officers, members, agents, or employees of the Authority against any risk or hazard, to self-insure or participate in joint self-insurance pools or entities to insure against such risk or hazard, and to provide for the indemnification of its officers, members, employees, contractors, or agents against any and all risks.

(19) Exercise all the corporate powers granted Illinois corporations under the Business Corporation Act of 1983, except to the extent that powers are inconsistent with those of a body politic and corporate of the State.

(20) Do all things necessary or convenient to carry out the powers granted by this Act.

Section 1-32. Ethical Conduct.

(a) Board members and employees of the Authority must carry out their duties and responsibilities in such a manner as to promote and preserve public trust and confidence in the integrity and conduct of gaming.

(b) Except as may be required in the conduct of official duties, Board members and employees of the Authority shall not engage in gambling on any riverboat, in any casino, or in an electronic gaming facility licensed by the Illinois Gaming Board or engage in legalized gambling in any establishment identified by Board action that, in the judgment of the Board, could represent a potential for a conflict of interest.

(c) A Board member or employee of the Authority shall not use or attempt to use his or her official position to secure or attempt to secure any privilege, advantage, favor, or influence for himself or herself or others.

(d) Board members and employees of the Authority shall not hold or pursue employment, office, position, business, or occupation that may conflict with his or her official duties. Employees may engage in other gainful employment so long as that employment does not interfere or conflict with their duties. Such employment must be disclosed to the Executive Director and approved by the Board.

(e) Board members and employees of the Authority may not engage in employment, communications, or any activity that may be deemed a conflict of interest. This prohibition shall extend to any act identified by Board action or Gaming Board action that, in the judgment of the either entity, could represent the potential for or the appearance of a conflict of interest.

(f) Board members and employees of the Authority may not have a financial interest, directly or indirectly, in his or her own name or in the name of any other person, partnership, association, trust, corporation, or other entity in any contract or subcontract for the performance of any work for the Authority. This prohibition shall extend to the holding or acquisition of an interest in any entity identified by Board action or Gaming Board action that, in the judgment of the either entity, could represent the potential for or the appearance of a financial interest. The holding or acquisition of an interest in such entities through an indirect means, such as through a mutual fund, shall not be prohibited, expect that the Gaming Board may identify specific investments or funds that, in its judgment, are so influenced by gaming holdings as to represent the potential for or the appearance of a conflict of interest.

(g) Board members and employees of the Authority may not accept any gift, gratuity, service, compensation, travel, lodging, or thing of value, with the exception of unsolicited items of an incidental nature, from any person, corporation, or entity doing business with the Authority.

(h) No Board member or employee of the Authority may, within a period of 2 years immediately after termination of employment, knowingly accept employment or receive compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Authority that resulted in contracts with an aggregate value of at least $25,000 or made a decision that directly applied to the person or entity, or its parent or affiliate.

(i) A spouse, child, or parent of a Board member or employee of the Authority may not have a financial interest, directly or indirectly, in his or her own name or in the name of any other person, partnership, association, trust, corporation, or other entity in any contract or subcontract for the performance of any work for the Authority. This prohibition shall extend to the holding or acquisition of an interest in any entity identified by Board action or Gaming Board action that, in the judgment of the either entity, could represent the potential for or the appearance of a conflict of interest. The holding or acquisition of an interest in such entities through an indirect means, such as through a mutual fund, shall not be prohibited, expect that the Gaming Board may identify specific investments or funds that, in its judgment, are so influenced by gaming holdings as to represent the potential for or the appearance of a conflict of interest.

(j) A spouse, child, or parent of a Board member or employee of the Authority may not accept any gift, gratuity, service, compensation, travel, lodging, or thing of value, with the exception of unsolicited items of an incidental nature, from any person, corporation, or entity doing business with the Authority.

(k) A spouse, child, or parent of a Board member or employee of the Authority may not, within a period of 2 years immediately after termination of employment, knowingly accept employment or receive compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Authority that resulted in contracts with an aggregate value of at least $25,000 or made a decision that directly applied to the person or entity, or its parent or affiliate.

(l) No Board member or employee of the Authority may attempt, in any way, to influence any person or corporation doing business with the Authority or any officer, agent, or employee thereof to hire or contract with any person or corporation for any compensated work.

(m) Any communication between an elected official of the City and any applicant for or party to a casino management contract with the Authority, or an officer, director, or employee thereof, concerning any manner relating in any way to gaming or the Authority shall be disclosed to the Board and the Gaming Board. Such disclosure shall be in writing by the official within 30 days of the communication and shall be filed with the Board. Disclosure must consist of the date of the communication, the identity and job title of the person with whom the communication was made, a brief summary of the communication, the action requested or recommended, all responses made, the identity and job title of the person making the response, and any other pertinent information.

(n) Any Board member or employee of the Authority who violates any provision of this Section is guilty of a Class 4 felony.

Section 1-45. Casino management contracts.

(a) The Board shall develop and administer a competitive sealed bidding process for the selection of a potential casino operator licensee to develop or operate a casino within the City. The Board shall issue one or more requests for proposals. The Board may establish minimum financial and investment requirements to determine the eligibility of persons to respond to the Board's requests for proposal, and may establish and consider such other criteria as it deems appropriate. The Board may impose a fee upon persons who respond to requests for proposal, in order to reimburse the Board for its costs in preparing and issuing the requests and reviewing the proposals.

(b) Within 5 days after the time limit for submitting bids and proposals has passed, the Board shall make all bids and proposals public. Thereafter, the Board shall evaluate the responses to its requests for proposal and the ability of all persons or entities responding to its request for proposal to meet the requirements of this Act and to undertake and perform the obligations set forth in its requests for proposal.

(c) After reviewing proposals and subject to Gaming Board approval, the Board shall enter into a casino management contract authorizing the development, construction, or operation of a casino. Validity of the casino management contract is contingent upon the issuance of a casino operator license to the successful bidder. If the Gaming Board approves the contract and grants a casino operator license, the Board shall transmit a copy of the executed casino management contract to the Gaming Board.

(d) After the Authority has been issued a casino license, the Gaming Board has issued a casino operator license, and the Gaming Board has approved the location of a temporary facility, the Authority may conduct gaming operations at a temporary facility for no longer than 12 months after gaming operations begin. The Gaming Board may, after holding a public hearing, grant an extension so long as a permanent facility is not operational and the Authority is working in good faith to complete the permanent facility. The Gaming Board may grant additional extensions following a public hearing. Each extension may be for a period of no longer than 6 months.

(e) Fifty percent of the total amount received by the Authority pursuant to a bid for a casino management contract or an executed casino management contract must be transmitted to the State and deposited into the GROW Fund.

Section 1-50. Transfer of funds. The revenues received by the Authority (other than amounts required to be paid pursuant to the Illinois Gambling Act and amounts required to pay the operating expenses of the Authority, to pay amounts due the casino operator licensee pursuant to a casino management contract, to repay any borrowing of the Authority made pursuant to Section 1-35, to pay debt service on any bonds issued under Section 1-75, and to pay any expenses in connection with the issuance of such bonds pursuant to Section 1-75 or derivative products pursuant to Section 1-85) shall be transferred to the City by the Authority.

Section 1-55. Municipal distributions of proceeds from a casino; gaming endowment funds. At least 70% of the moneys that a municipality in which a casino is located receives pursuant to Section 1-50 of this Act shall be described as "gaming endowment funds" and be expended or obligated by the municipality for the following purposes and in the following amounts:

(1) 40% of such gaming endowment funds shall be used for or pledged for the construction and maintenance of infrastructure within the municipality, including but not limited to roads, bridges, transit infrastructure, and municipal facilities.

(2) 60% of such gaming endowment funds shall be used for or pledged for the construction and maintenance of schools, parks and cultural institution facilities, and museums within the municipality.

Section 1-60. Auditor General.

(a) Prior to the issuance of bonds under this Act, the Authority shall submit to the Auditor General a certification that:

(1) it is legally authorized to issue bonds;

(2) scheduled annual payments of principal and interest on the bonds to be issued meet the requirements of Section 1-75 of this Act;

(3) no bond shall mature later than 25 years; and

(4) after payment of costs of issuance and necessary deposits to funds and accounts established with respect to debt service on the bonds, the net bond proceeds (exclusive of any proceeds to be used to refund outstanding bonds) will be used only for the purposes set forth in this Act.

The Authority also shall submit to the Auditor General its projections on revenues to be generated and pledged to repayment of the bonds as scheduled and such other information as the Auditor General may reasonably request.

The Auditor General shall examine the certifications and information submitted and submit a report to the Authority and the Gaming Board indicating whether the required certifications, projections, and other information have been submitted by the Authority and that the assumptions underlying the projections are not unreasonable in the aggregate. The Auditor General shall submit the report no later than 60 days after receiving the information required to be submitted by the Authority.

The Authority shall not issue bonds until it receives the report from the Auditor General indicating the requirements of this Section have been met. The Auditor General's report shall not be in the nature of a post-audit or examination and shall not lead to the issuance of an opinion, as that term is defined in generally accepted government auditing standards. The Auditor General shall submit a bill to the Authority for costs associated with the examinations and report required under this Section. The Authority shall reimburse in a timely manner.

(b) The Auditor General has the authority and is required to conduct a financial and management audit of the Authority every 2 years. The Auditor General shall also conduct one post-construction and financing audit of the casino after it is completed and in operation. The Auditor General's audits must be posted on his or her Internet website. The Auditor General shall submit a bill to the Authority for costs associated with the audits required under this Section. The Authority shall reimburse in a timely manner.

Section 1-65. Acquisition of property; eminent domain proceedings. For the lawful purposes of this Act, the City or the Authority may acquire by eminent domain or by condemnation proceedings in the manner provided by the Eminent Domain Act, real or personal property or interests in real or personal property located in the City, and the City may convey to the Authority property so acquired. The acquisition of property under this Section is declared to be for a public use.

Section 1-70. Local regulation. The casino facilities and operations therein shall be subject to all ordinances and regulations of the City. The construction, development, and operation of the casino shall comply with all ordinances, regulations, rules, and controls of the City, including but not limited to those relating to zoning and planned development, building, fire prevention, and land use. However, the regulation of gaming operations is subject to the exclusive jurisdiction of the Gaming Board.

Section 1-75. Borrowing.

(a) The Authority may borrow money and issue bonds as provided in this Section. Bonds of the Authority may be issued to provide funds for land acquisition, site assembly and preparation, and the design and construction of the casino, as defined in the Illinois Gambling Act, all ancillary and related facilities comprising the casino complex, and all on-site and off-site infrastructure improvements required in connection with the development of the casino; to refund (at the time or in advance of any maturity or redemption) or redeem any bonds of the Authority; to provide or increase a debt service reserve fund or other reserves with respect to any or all of its bonds; or to pay the legal, financial, administrative, bond insurance, credit enhancement, and other legal expenses of the authorization, issuance, or delivery of bonds. In this Act, the term "bonds" also includes notes of any kind, interim certificates, refunding bonds, or any other evidence of obligation for borrowed money issued under this Section. Bonds may be issued in one or more series and may be payable and secured either on a parity with or separately from other bonds.

(b) The bonds of the Authority shall be payable from one or more of the following sources: (i) the property or revenues of the Authority; (ii) revenues derived from the casino; (iii) revenues derived from any casino operator licensee; (iv) fees, bid proceeds, charges, lease payments, payments required pursuant to any casino management contract or other revenues payable to the Authority, or any receipts of the Authority; (v) payments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements; (vi) investment earnings from funds or accounts maintained pursuant to a bond resolution or trust indenture; (vii) proceeds of refunding bonds; (viii) any other revenues derived from or payments by the City; and (ix) any payments by any casino operator licensee or others pursuant to any guaranty agreement.

(c) Bonds shall be authorized by a resolution of the Authority and may be secured by a trust indenture by and between the Authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State. Bonds shall meet the following requirements:

(1) Bonds shall bear interest at a rate not to exceed the maximum rate authorized by the Bond Authorization Act.

(2) Bonds issued pursuant to this Section must be issued with principal or mandatory redemption amounts in equal amounts, with the first maturity issued occurring within the fiscal year in which the bonds are issued or within the next succeeding fiscal year, and with bonds maturing or subject to mandatory redemption each fiscal year thereafter up to 25 years.

(3) At least 25%, based on total principal amount, of all bonds issued pursuant to this Section shall be sold pursuant to notice of sale and public bid. No more than 75%, based on total principal amount, of all bonds issued pursuant to this Section shall be sold by negotiated sale.

(4) Bonds shall be payable at a time or times, in the denominations and form, including book entry form, either coupon, registered, or both, and carry the registration and privileges as to exchange, transfer or conversion, and replacement of mutilated, lost, or destroyed bonds as the resolution or trust indenture may provide.

(5) Bonds shall be payable in lawful money of the United States at a designated place.

(6) Bonds shall be subject to the terms of purchase, payment, redemption, refunding, or refinancing that the resolution or trust indenture provides.

(7) Bonds shall be executed by the manual or facsimile signatures of the officers of the Authority designated by the Board, which signatures shall be valid at delivery even for one who has ceased to hold office.

(8) Bonds shall be sold at public or private sale in the manner and upon the terms determined by the Authority.

(9) Bonds shall be issued in accordance with the provisions of the Local Government Debt Reform Act.

(d) The Authority shall adopt a procurement program with respect to contracts relating to underwriters, bond counsel, financial advisors, and accountants. The program shall include goals for the payment of not less than 30% of the total dollar value of the fees from these contracts to minority owned businesses and female owned businesses as defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. The Authority shall conduct outreach to minority owned businesses and female owned businesses. Outreach shall include, but is not limited to, advertisements in periodicals and newspapers, mailings, and other appropriate media. The Authority shall submit to the General Assembly a comprehensive report that shall include, at a minimum, the details of the procurement plan, outreach efforts, and the results of the efforts to achieve goals for the payment of fees.

(e) Subject to the Illinois Gambling Act and rules of the Gaming Board regarding pledging of interests in holders of owners licenses, any resolution or trust indenture may contain provisions that may be a part of the contract with the holders of the bonds as to the following:

(1) Pledging, assigning, or directing the use, investment, or disposition of revenues of the Authority or proceeds or benefits of any contract, including without limitation, any rights in any casino management contract.

(2) The setting aside of loan funding deposits, debt service reserves, replacement or operating reserves, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof.

(3) Limitations on the purposes to which or the investments in which the proceeds of sale of any issue of bonds or the Authority's revenues and receipts may be applied or made.

(4) Limitations on the issue of additional bonds, the terms upon which additional bonds may be issued and secured, the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, other bonds.

(5) The refunding, advance refunding, or refinancing of outstanding bonds.

(6) The procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds and holders of which must consent thereto and the manner in which consent shall be given.

(7) Defining the acts or omissions which shall constitute a default in the duties of the Authority to holders of bonds and providing the rights or remedies of such holders in the event of a default, which may include provisions restricting individual rights of action by bondholders.

(8) Providing for guarantees, pledges of property, letters of credit, or other security, or insurance for the benefit of bondholders.

(f) No member of the Board, nor any person executing the bonds, shall be liable personally on the bonds or subject to any personal liability by reason of the issuance of the bonds.

(g) The Authority may issue and secure bonds in accordance with the provisions of the Local Government Credit Enhancement Act.

(h) A pledge by the Authority of revenues and receipts as security for an issue of bonds or for the performance of its obligations under any casino management contract shall be valid and binding from the time when the pledge is made. The revenues and receipts pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract, or otherwise against the Authority, irrespective of whether the person has notice. No resolution, trust indenture, management agreement or financing statement, continuation statement, or other instrument adopted or entered into by the Authority need be filed or recorded in any public record other than the records of the Authority in order to perfect the lien against third persons, regardless of any contrary provision of law.

(i) Bonds that are being paid or retired by issuance, sale, or delivery of bonds, and bonds for which sufficient funds have been deposited with the paying agent or trustee to provide for payment of principal and interest thereon, and any redemption premium, as provided in the authorizing resolution, shall not be considered outstanding for the purposes of this subsection.

(j) The bonds of the Authority shall not be indebtedness of the State. The bonds of the Authority are not general obligations of the State and are not secured by a pledge of the full faith and credit of the State and the holders of bonds of the Authority may not require, except as provided in this Act, the application of State revenues or funds to the payment of bonds of the Authority.

(k) The State of Illinois pledges and agrees with the owners of the bonds that it will not limit or alter the rights and powers vested in the Authority by this Act so as to impair the terms of any contract made by the Authority with the owners or in any way impair the rights and remedies of the owners until the bonds, together with interest on them, and all costs and expenses in connection with any action or proceedings by or on behalf of the owners, are fully met and discharged. The Authority is authorized to include this pledge and agreement in any contract with the owners of bonds issued under this Section.

(l) No person holding an elective office in this State, holding a seat in the General Assembly, or serving as a board member, trustee, officer, or employee of the Authority, including the spouse of that person, may receive a legal, banking, consulting, or other fee related to the issuance of bonds.

Section 1-85. Derivative products. With respect to all or part of any issue of its bonds, the Authority may enter into agreements or contracts with any necessary or appropriate person, which will have the benefit of providing to the Authority an interest rate basis, cash flow basis, or other basis different from that provided in the bonds for the payment of interest. Such agreements or contracts may include, without limitation, agreements or contracts commonly known as "interest rate swap agreements", "forward payment conversion agreements", "futures", "options", "puts", or "calls" and agreements or contracts providing for payments based on levels of or changes in interest rates, agreements or contracts to exchange cash flows or a series of payments, or to hedge payment, rate spread, or similar exposure.

Section 1-90. Legality for investment. The State of Illinois, all governmental entities, all public officers, banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, insurance companies, insurance associations, and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds issued under this Act. However, nothing in this Section shall be construed as relieving any person, firm,