HB5034 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5034

 

Introduced 2/18/2020, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/19.5
230 ILCS 5/21  from Ch. 8, par. 37-21
230 ILCS 5/26  from Ch. 8, par. 37-26
230 ILCS 5/27  from Ch. 8, par. 37-27
230 ILCS 5/31.1  from Ch. 8, par. 37-31.1
230 ILCS 5/34.3 rep.

    Amends the Illinois Horse Racing Act of 1975. Changes the bond requirement for an applicant for an organization license. Provides that the Illinois Racing Board may appoint the Director of Mutuels to serve as the State director for inter-track wagering and simulcast wagering by inter-track wagering licensees and inter-track wagering location licensees. Provides that the pari-mutuel tax imposed at all pari-mutuel wagering facilities and on advance deposit wagering shall be remitted to the Board (rather than the Department of Revenue). Provides that the Board shall distribute contributed funds to a charitable organization on a schedule determined by the Board, based on the charitable organization's estimated expenditures related to the grant (rather than by December 31 of each year). Repeals provisions requiring the Board and the Department of Agriculture to establish a program to conduct drug testing on horses at county fairs. Makes other changes. Effective immediately.


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A BILL FOR

 

HB5034LRB101 20532 SMS 70139 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Horse Racing Act of 1975 is amended
5by changing Sections 19.5, 21, 26, 27, and 31.1 as follows:
 
6    (230 ILCS 5/19.5)
7    Sec. 19.5. Standardbred racetrack in Cook County.
8Notwithstanding anything in this Act to the contrary, in
9addition to organization licenses issued by the Board on the
10effective date of this amendatory Act of the 101st General
11Assembly, the Board shall issue an organization license limited
12to standardbred racing to a racetrack located in one of the
13following townships of Cook County: Bloom, Bremen, Calumet,
14Orland, Rich, Thornton, or Worth. This additional organization
15license shall not be issued within a 35-mile radius of another
16organization license issued by the Board on the effective date
17of this amendatory Act of the 101st General Assembly, unless
18the person having operating control of such racetrack has given
19written consent to the organization licensee applicant, which
20consent must be filed with the Board at or prior to the time
21application is made. The organization license application
22shall be submitted to the Board and the Board may grant the
23organization license at any meeting of the Board shall be

 

 

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1granted upon application, and the licensee shall have all of
2the current and future rights of existing Illinois racetracks,
3including, but not limited to, the ability to obtain an
4inter-track wagering license, the ability to obtain
5inter-track wagering location licenses, the ability to obtain
6an organization gaming license pursuant to the Illinois
7Gambling Act with 1,200 gaming positions, and the ability to
8offer Internet wagering on horse racing.
9(Source: P.A. 101-31, eff. 6-28-19.)
 
10    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
11    Sec. 21. (a) Applications for organization licenses must be
12filed with the Board at a time and place prescribed by the
13rules and regulations of the Board. The Board shall examine the
14applications within 21 days after the date allowed for filing
15with respect to their conformity with this Act and such rules
16and regulations as may be prescribed by the Board. If any
17application does not comply with this Act or the rules and
18regulations prescribed by the Board, such application may be
19rejected and an organization license refused to the applicant,
20or the Board may, within 21 days of the receipt of such
21application, advise the applicant of the deficiencies of the
22application under the Act or the rules and regulations of the
23Board, and require the submittal of an amended application
24within a reasonable time determined by the Board; and upon
25submittal of the amended application by the applicant, the

 

 

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

 

 

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

 

 

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1to time prescribed by the Board, and every such organization
2license issued by the Board shall contain a recital to that
3effect.
4    (i) Each such organization licensee may provide that at
5least one race per day may be devoted to the racing of quarter
6horses, appaloosas, arabians, or paints.
7    (j) In acting on applications for organization licenses,
8the Board shall give weight to an organization license which
9has implemented a good faith affirmative action effort to
10recruit, train and upgrade minorities in all classifications
11within the organization license.
12(Source: P.A. 101-31, eff. 6-28-19.)
 
13    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
14    Sec. 26. Wagering.
15    (a) Any licensee may conduct and supervise the pari-mutuel
16system of wagering, as defined in Section 3.12 of this Act, on
17horse races conducted by an Illinois organization licensee or
18conducted at a racetrack located in another state or country in
19accordance with subsection (g) of Section 26 of this Act.
20Subject to the prior consent of the Board, licensees may
21supplement any pari-mutuel pool in order to guarantee a minimum
22distribution. Such pari-mutuel method of wagering shall not,
23under any circumstances if conducted under the provisions of
24this Act, be held or construed to be unlawful, other statutes
25of this State to the contrary notwithstanding. Subject to rules

 

 

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

 

 

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1purpose of guaranteeing minimum distributions of any
2pari-mutuel pool, shall be evenly distributed to the purse
3account of the organization licensee and the organization
4licensee, except that the balance of the sum of all outstanding
5pari-mutuel tickets generated from simulcast wagering and
6inter-track wagering by an organization licensee located in a
7county with a population in excess of 230,000 and borders the
8Mississippi River or any licensee that derives its license from
9that organization licensee shall be evenly distributed to the
10purse account of the organization licensee and the organization
11licensee.
12    (d) A pari-mutuel ticket shall be honored until December 31
13of the next calendar year, and the licensee shall pay the same
14and may charge the amount thereof against unpaid money
15similarly accumulated on account of pari-mutuel tickets not
16presented for payment.
17    (e) No licensee shall knowingly permit any minor, other
18than an employee of such licensee or an owner, trainer, jockey,
19driver, or employee thereof, to be admitted during a racing
20program unless accompanied by a parent or guardian, or any
21minor to be a patron of the pari-mutuel system of wagering
22conducted or supervised by it. The admission of any
23unaccompanied minor, other than an employee of the licensee or
24an owner, trainer, jockey, driver, or employee thereof at a
25race track is a Class C misdemeanor.
26    (f) Notwithstanding the other provisions of this Act, an

 

 

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

 

 

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1    (g) A host track may accept interstate simulcast wagers on
2horse races conducted in other states or countries and shall
3control the number of signals and types of breeds of racing in
4its simulcast program, subject to the disapproval of the Board.
5The Board may prohibit a simulcast program only if it finds
6that the simulcast program is clearly adverse to the integrity
7of racing. The host track simulcast program shall include the
8signal of live racing of all organization licensees. All
9non-host licensees and advance deposit wagering licensees
10shall carry the signal of and accept wagers on live racing of
11all organization licensees. Advance deposit wagering licensees
12shall not be permitted to accept out-of-state wagers on any
13Illinois signal provided pursuant to this Section without the
14approval and consent of the organization licensee providing the
15signal. For one year after August 15, 2014 (the effective date
16of Public Act 98-968), non-host licensees may carry the host
17track simulcast program and shall accept wagers on all races
18included as part of the simulcast program of horse races
19conducted at race tracks located within North America upon
20which wagering is permitted. For a period of one year after
21August 15, 2014 (the effective date of Public Act 98-968), on
22horse races conducted at race tracks located outside of North
23America, non-host licensees may accept wagers on all races
24included as part of the simulcast program upon which wagering
25is permitted. Beginning August 15, 2015 (one year after the
26effective date of Public Act 98-968), non-host licensees may

 

 

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1carry the host track simulcast program and shall accept wagers
2on all races included as part of the simulcast program upon
3which wagering is permitted. All organization licensees shall
4provide their live signal to all advance deposit wagering
5licensees for a simulcast commission fee not to exceed 6% of
6the advance deposit wagering licensee's Illinois handle on the
7organization licensee's signal without prior approval by the
8Board. The Board may adopt rules under which it may permit
9simulcast commission fees in excess of 6%. The Board shall
10adopt rules limiting the interstate commission fees charged to
11an advance deposit wagering licensee. The Board shall adopt
12rules regarding advance deposit wagering on interstate
13simulcast races that shall reflect, among other things, the
14General Assembly's desire to maximize revenues to the State,
15horsemen purses, and organization licensees. However,
16organization licensees providing live signals pursuant to the
17requirements of this subsection (g) may petition the Board to
18withhold their live signals from an advance deposit wagering
19licensee if the organization licensee discovers and the Board
20finds reputable or credible information that the advance
21deposit wagering licensee is under investigation by another
22state or federal governmental agency, the advance deposit
23wagering licensee's license has been suspended in another
24state, or the advance deposit wagering licensee's license is in
25revocation proceedings in another state. The organization
26licensee's provision of their live signal to an advance deposit

 

 

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1wagering licensee under this subsection (g) pertains to wagers
2placed from within Illinois. Advance deposit wagering
3licensees may place advance deposit wagering terminals at
4wagering facilities as a convenience to customers. The advance
5deposit wagering licensee shall not charge or collect any fee
6from purses for the placement of the advance deposit wagering
7terminals. The costs and expenses of the host track and
8non-host licensees associated with interstate simulcast
9wagering, other than the interstate commission fee, shall be
10borne by the host track and all non-host licensees incurring
11these costs. The interstate commission fee shall not exceed 5%
12of Illinois handle on the interstate simulcast race or races
13without prior approval of the Board. The Board shall promulgate
14rules under which it may permit interstate commission fees in
15excess of 5%. The interstate commission fee and other fees
16charged by the sending racetrack, including, but not limited
17to, satellite decoder fees, shall be uniformly applied to the
18host track and all non-host licensees.
19    Notwithstanding any other provision of this Act, an
20organization licensee, with the consent of the horsemen
21association representing the largest number of owners,
22trainers, jockeys, or standardbred drivers who race horses at
23that organization licensee's racing meeting, may maintain a
24system whereby advance deposit wagering may take place or an
25organization licensee, with the consent of the horsemen
26association representing the largest number of owners,

 

 

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1trainers, jockeys, or standardbred drivers who race horses at
2that organization licensee's racing meeting, may contract with
3another person to carry out a system of advance deposit
4wagering. Such consent may not be unreasonably withheld. Only
5with respect to an appeal to the Board that consent for an
6organization licensee that maintains its own advance deposit
7wagering system is being unreasonably withheld, the Board shall
8issue a final order within 30 days after initiation of the
9appeal, and the organization licensee's advance deposit
10wagering system may remain operational during that 30-day
11period. The actions of any organization licensee who conducts
12advance deposit wagering or any person who has a contract with
13an organization licensee to conduct advance deposit wagering
14who conducts advance deposit wagering on or after January 1,
152013 and prior to June 7, 2013 (the effective date of Public
16Act 98-18) taken in reliance on the changes made to this
17subsection (g) by Public Act 98-18 are hereby validated,
18provided payment of all applicable pari-mutuel taxes are
19remitted to the Board. All advance deposit wagers placed from
20within Illinois must be placed through a Board-approved advance
21deposit wagering licensee; no other entity may accept an
22advance deposit wager from a person within Illinois. All
23advance deposit wagering is subject to any rules adopted by the
24Board. The Board may adopt rules necessary to regulate advance
25deposit wagering through the use of emergency rulemaking in
26accordance with Section 5-45 of the Illinois Administrative

 

 

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1Procedure Act. The General Assembly finds that the adoption of
2rules to regulate advance deposit wagering is deemed an
3emergency and necessary for the public interest, safety, and
4welfare. An advance deposit wagering licensee may retain all
5moneys as agreed to by contract with an organization licensee.
6Any moneys retained by the organization licensee from advance
7deposit wagering, not including moneys retained by the advance
8deposit wagering licensee, shall be paid 50% to the
9organization licensee's purse account and 50% to the
10organization licensee. With the exception of any organization
11licensee that is owned by a publicly traded company that is
12incorporated in a state other than Illinois and advance deposit
13wagering licensees under contract with such organization
14licensees, organization licensees that maintain advance
15deposit wagering systems and advance deposit wagering
16licensees that contract with organization licensees shall
17provide sufficiently detailed monthly accountings to the
18horsemen association representing the largest number of
19owners, trainers, jockeys, or standardbred drivers who race
20horses at that organization licensee's racing meeting so that
21the horsemen association, as an interested party, can confirm
22the accuracy of the amounts paid to the purse account at the
23horsemen association's affiliated organization licensee from
24advance deposit wagering. If more than one breed races at the
25same race track facility, then the 50% of the moneys to be paid
26to an organization licensee's purse account shall be allocated

 

 

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1among all organization licensees' purse accounts operating at
2that race track facility proportionately based on the actual
3number of host days that the Board grants to that breed at that
4race track facility in the current calendar year. To the extent
5any fees from advance deposit wagering conducted in Illinois
6for wagers in Illinois or other states have been placed in
7escrow or otherwise withheld from wagers pending a
8determination of the legality of advance deposit wagering, no
9action shall be brought to declare such wagers or the
10disbursement of any fees previously escrowed illegal.
11        (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
12    inter-track wagering licensee other than the host track may
13    supplement the host track simulcast program with
14    additional simulcast races or race programs, provided that
15    between January 1 and the third Friday in February of any
16    year, inclusive, if no live thoroughbred racing is
17    occurring in Illinois during this period, only
18    thoroughbred races may be used for supplemental interstate
19    simulcast purposes. The Board shall withhold approval for a
20    supplemental interstate simulcast only if it finds that the
21    simulcast is clearly adverse to the integrity of racing. A
22    supplemental interstate simulcast may be transmitted from
23    an inter-track wagering licensee to its affiliated
24    non-host licensees. The interstate commission fee for a
25    supplemental interstate simulcast shall be paid by the
26    non-host licensee and its affiliated non-host licensees

 

 

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1    receiving the simulcast.
2        (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
3    inter-track wagering licensee other than the host track may
4    receive supplemental interstate simulcasts only with the
5    consent of the host track, except when the Board finds that
6    the simulcast is clearly adverse to the integrity of
7    racing. Consent granted under this paragraph (2) to any
8    inter-track wagering licensee shall be deemed consent to
9    all non-host licensees. The interstate commission fee for
10    the supplemental interstate simulcast shall be paid by all
11    participating non-host licensees.
12        (3) Each licensee conducting interstate simulcast
13    wagering may retain, subject to the payment of all
14    applicable taxes and the purses, an amount not to exceed
15    17% of all money wagered. If any licensee conducts the
16    pari-mutuel system wagering on races conducted at
17    racetracks in another state or country, each such race or
18    race program shall be considered a separate racing day for
19    the purpose of determining the daily handle and computing
20    the privilege tax of that daily handle as provided in
21    subsection (a) of Section 27. Until January 1, 2000, from
22    the sums permitted to be retained pursuant to this
23    subsection, each inter-track wagering location licensee
24    shall pay 1% of the pari-mutuel handle wagered on simulcast
25    wagering to the Horse Racing Tax Allocation Fund, subject
26    to the provisions of subparagraph (B) of paragraph (11) of

 

 

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1    subsection (h) of Section 26 of this Act.
2        (4) A licensee who receives an interstate simulcast may
3    combine its gross or net pools with pools at the sending
4    racetracks pursuant to rules established by the Board. All
5    licensees combining their gross pools at a sending
6    racetrack shall adopt the takeout percentages of the
7    sending racetrack. A licensee may also establish a separate
8    pool and takeout structure for wagering purposes on races
9    conducted at race tracks outside of the State of Illinois.
10    The licensee may permit pari-mutuel wagers placed in other
11    states or countries to be combined with its gross or net
12    wagering pools or other wagering pools.
13        (5) After the payment of the interstate commission fee
14    (except for the interstate commission fee on a supplemental
15    interstate simulcast, which shall be paid by the host track
16    and by each non-host licensee through the host track) and
17    all applicable State and local taxes, except as provided in
18    subsection (g) of Section 27 of this Act, the remainder of
19    moneys retained from simulcast wagering pursuant to this
20    subsection (g), and Section 26.2 shall be divided as
21    follows:
22            (A) For interstate simulcast wagers made at a host
23        track, 50% to the host track and 50% to purses at the
24        host track.
25            (B) For wagers placed on interstate simulcast
26        races, supplemental simulcasts as defined in

 

 

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1        subparagraphs (1) and (2), and separately pooled races
2        conducted outside of the State of Illinois made at a
3        non-host licensee, 25% to the host track, 25% to the
4        non-host licensee, and 50% to the purses at the host
5        track.
6        (6) Notwithstanding any provision in this Act to the
7    contrary, non-host licensees who derive their licenses
8    from a track located in a county with a population in
9    excess of 230,000 and that borders the Mississippi River
10    may receive supplemental interstate simulcast races at all
11    times subject to Board approval, which shall be withheld
12    only upon a finding that a supplemental interstate
13    simulcast is clearly adverse to the integrity of racing.
14        (7) Effective January 1, 2017, notwithstanding any
15    provision of this Act to the contrary, after payment of all
16    applicable State and local taxes and interstate commission
17    fees, non-host licensees who derive their licenses from a
18    track located in a county with a population in excess of
19    230,000 and that borders the Mississippi River shall retain
20    50% of the retention from interstate simulcast wagers and
21    shall pay 50% to purses at the track from which the
22    non-host licensee derives its license.
23        (7.1) Notwithstanding any other provision of this Act
24    to the contrary, if no standardbred racing is conducted at
25    a racetrack located in Madison County during any calendar
26    year beginning on or after January 1, 2002 and the licensee

 

 

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1    that conducts horse racing at that racetrack requests from
2    the Board at least as many racing dates as were conducted
3    in calendar year 2000, all moneys derived by that racetrack
4    from simulcast wagering and inter-track wagering that (1)
5    are to be used for purses and (2) are generated between the
6    hours of 6:30 p.m. and 6:30 a.m. during that calendar year
7    shall be paid as follows:
8            (A) Eighty percent If the licensee that conducts
9        horse racing at that racetrack requests from the Board
10        at least as many racing dates as were conducted in
11        calendar year 2000, 80% shall be paid to its
12        thoroughbred purse account; and
13            (B) Twenty percent shall be deposited into the
14        Illinois Colt Stakes Purse Distribution Fund and shall
15        be paid to purses for standardbred races for Illinois
16        conceived and foaled horses conducted at any county
17        fairgrounds. The moneys deposited into the Fund
18        pursuant to this subparagraph (B) shall be deposited
19        within 2 weeks after the day they were generated, shall
20        be in addition to and not in lieu of any other moneys
21        paid to standardbred purses under this Act, and shall
22        not be commingled with other moneys paid into that
23        Fund. The moneys deposited pursuant to this
24        subparagraph (B) shall be allocated as provided by the
25        Department of Agriculture, with the advice and
26        assistance of the Illinois Standardbred Breeders Fund

 

 

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1        Advisory Board.
2        (7.2) Notwithstanding any other provision of this Act
3    to the contrary, if no thoroughbred racing is conducted at
4    a racetrack located in Madison County during any calendar
5    year beginning on or after January 1, 2002 and the licensee
6    that conducts horse racing at that racetrack requests from
7    the Board at least as many racing dates as were conducted
8    in calendar year 2000, all moneys derived by that racetrack
9    from simulcast wagering and inter-track wagering that (1)
10    are to be used for purses and (2) are generated between the
11    hours of 6:30 a.m. and 6:30 p.m. during that calendar year
12    shall be deposited as follows:
13            (A) Eighty percent If the licensee that conducts
14        horse racing at that racetrack requests from the Board
15        at least as many racing dates as were conducted in
16        calendar year 2000, 80% shall be deposited into its
17        standardbred purse account; and
18            (B) Twenty percent shall be deposited into the
19        Illinois Colt Stakes Purse Distribution Fund. Moneys
20        deposited into the Illinois Colt Stakes Purse
21        Distribution Fund pursuant to this subparagraph (B)
22        shall be paid to Illinois conceived and foaled
23        thoroughbred breeders' programs and to thoroughbred
24        purses for races conducted at any county fairgrounds
25        for Illinois conceived and foaled horses at the
26        discretion of the Department of Agriculture, with the

 

 

HB5034- 20 -LRB101 20532 SMS 70139 b

1        advice and assistance of the Illinois Thoroughbred
2        Breeders Fund Advisory Board. The moneys deposited
3        into the Illinois Colt Stakes Purse Distribution Fund
4        pursuant to this subparagraph (B) shall be deposited
5        within 2 weeks after the day they were generated, shall
6        be in addition to and not in lieu of any other moneys
7        paid to thoroughbred purses under this Act, and shall
8        not be commingled with other moneys deposited into that
9        Fund.
10        (7.3) (Blank).
11        (7.4) (Blank).
12        (8) Notwithstanding any provision in this Act to the
13    contrary, an organization licensee from a track located in
14    a county with a population in excess of 230,000 and that
15    borders the Mississippi River and its affiliated non-host
16    licensees shall not be entitled to share in any retention
17    generated on racing, inter-track wagering, or simulcast
18    wagering at any other Illinois wagering facility.
19        (8.1) Notwithstanding any provisions in this Act to the
20    contrary, if 2 organization licensees are conducting
21    standardbred race meetings concurrently between the hours
22    of 6:30 p.m. and 6:30 a.m., after payment of all applicable
23    State and local taxes and interstate commission fees, the
24    remainder of the amount retained from simulcast wagering
25    otherwise attributable to the host track and to host track
26    purses shall be split daily between the 2 organization

 

 

HB5034- 21 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 22 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 23 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 24 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 25 -LRB101 20532 SMS 70139 b

1    may receive inter-track wagering location licenses. An
2    eligible race track located in a county that has a
3    population of more than 230,000 and that is bounded by the
4    Mississippi River may establish up to 9 inter-track
5    wagering locations, an eligible race track located in
6    Stickney Township in Cook County may establish up to 16
7    inter-track wagering locations, and an eligible race track
8    located in Palatine Township in Cook County may establish
9    up to 18 inter-track wagering locations. An eligible
10    racetrack conducting standardbred racing may have up to 16
11    inter-track wagering locations. An application for said
12    license shall be filed with the Board prior to such dates
13    as may be fixed by the Board. With an application for an
14    inter-track wagering location license there shall be
15    delivered to the Board a certified check or bank draft
16    payable to the order of the Board for an amount equal to
17    $500. The application shall be on forms prescribed and
18    furnished by the Board. The application shall comply with
19    all other rules, regulations and conditions imposed by the
20    Board in connection therewith.
21        (2) The Board shall examine the applications with
22    respect to their conformity with this Act and the rules and
23    regulations imposed by the Board. If found to be in
24    compliance with the Act and rules and regulations of the
25    Board, the Board may then issue a license to conduct
26    inter-track wagering and simulcast wagering to such

 

 

HB5034- 26 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 27 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 28 -LRB101 20532 SMS 70139 b

1    City of Chicago at any location within 8 miles of any race
2    track at which a horse race meeting has been licensed in
3    the current year, unless the person having operating
4    control of such race track has given its written consent to
5    such inter-track wagering location licensees, which
6    consent must be filed with the Board at or prior to the
7    time application is made.
8        (8.2) Inter-track wagering or simulcast wagering shall
9    not be conducted by an inter-track wagering location
10    licensee at any location within 100 feet of an existing
11    church, an existing elementary or secondary public school,
12    or an existing elementary or secondary private school
13    registered with or recognized by the State Board of
14    Education. The distance of 100 feet shall be measured to
15    the nearest part of any building used for worship services,
16    education programs, or conducting inter-track wagering by
17    an inter-track wagering location licensee, and not to
18    property boundaries. However, inter-track wagering or
19    simulcast wagering may be conducted at a site within 100
20    feet of a church or school if such church or school has
21    been erected or established after the Board issues the
22    original inter-track wagering location license at the site
23    in question. Inter-track wagering location licensees may
24    conduct inter-track wagering and simulcast wagering only
25    in areas that are zoned for commercial or manufacturing
26    purposes or in areas for which a special use has been

 

 

HB5034- 29 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 30 -LRB101 20532 SMS 70139 b

1    of the pari-mutuel handle at each location to the county in
2    which such location is situated. In the event that an
3    inter-track wagering location licensee is situated in an
4    unincorporated area of a county, such licensee shall pay 2%
5    of the pari-mutuel handle from such location to such
6    county. Inter-track wagering location licensees must pay
7    the handle percentage required under this paragraph to the
8    municipality and county no later than the 20th of the month
9    following the month such handle was generated.
10        (10.2) Notwithstanding any other provision of this
11    Act, with respect to inter-track wagering at a race track
12    located in a county that has a population of more than
13    230,000 and that is bounded by the Mississippi River ("the
14    first race track"), or at a facility operated by an
15    inter-track wagering licensee or inter-track wagering
16    location licensee that derives its license from the
17    organization licensee that operates the first race track,
18    on races conducted at the first race track or on races
19    conducted at another Illinois race track and
20    simultaneously televised to the first race track or to a
21    facility operated by an inter-track wagering licensee or
22    inter-track wagering location licensee that derives its
23    license from the organization licensee that operates the
24    first race track, those moneys shall be allocated as
25    follows:
26            (A) That portion of all moneys wagered on

 

 

HB5034- 31 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 32 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 33 -LRB101 20532 SMS 70139 b

1    amount shall be redistributed (I) to all inter-track
2    wagering location licensees, based on each licensee's pro
3    rata share of the total handle from inter-track wagering
4    and simulcast wagering for all inter-track wagering
5    location licensees during the calendar year in which this
6    provision is applicable; then (II) the amounts
7    redistributed to each inter-track wagering location
8    licensee as described in subpart (I) shall be further
9    redistributed as provided in subparagraph (B) of paragraph
10    (5) of subsection (g) of this Section 26 provided first,
11    that the shares of those amounts, which are to be
12    redistributed to the host track or to purses at the host
13    track under subparagraph (B) of paragraph (5) of subsection
14    (g) of this Section 26 shall be redistributed based on each
15    host track's pro rata share of the total inter-track
16    wagering and simulcast wagering handle at all host tracks
17    during the calendar year in question, and second, that any
18    amounts redistributed as described in part (I) to an
19    inter-track wagering location licensee that accepts wagers
20    on races conducted by an organization licensee that
21    conducts a race meet in a county with a population in
22    excess of 230,000 and that borders the Mississippi River
23    shall be further redistributed, effective January 1, 2017,
24    as provided in paragraph (7) of subsection (g) of this
25    Section 26, with the portion of that further redistribution
26    allocated to purses at that organization licensee to be

 

 

HB5034- 34 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 35 -LRB101 20532 SMS 70139 b

1    licensee is in operation, 5.25% of the pari-mutuel handle
2    wagered at the location on races; during the second 12
3    months, 5.25%; during the third 12 months, 5.75%; during
4    the fourth 12 months, 6.25%; and during the fifth 12 months
5    and thereafter, 6.75%. The following amounts shall be
6    retained by the licensee to satisfy all costs and expenses
7    of conducting its wagering: during the first 12 months the
8    licensee is in operation, 8.25% of the pari-mutuel handle
9    wagered at the location; during the second 12 months,
10    8.25%; during the third 12 months, 7.75%; during the fourth
11    12 months, 7.25%; and during the fifth 12 months and
12    thereafter, 6.75%. For additional inter-track wagering
13    location licensees authorized under Public Act 89-16,
14    purses for the first 12 months the licensee is in operation
15    shall be 5.75% of the pari-mutuel wagered at the location,
16    purses for the second 12 months the licensee is in
17    operation shall be 6.25%, and purses thereafter shall be
18    6.75%. For additional inter-track location licensees
19    authorized under Public Act 89-16, the licensee shall be
20    allowed to retain to satisfy all costs and expenses: 7.75%
21    of the pari-mutuel handle wagered at the location during
22    its first 12 months of operation, 7.25% during its second
23    12 months of operation, and 6.75% thereafter.
24        (C) There is hereby created the Horse Racing Tax
25    Allocation Fund which shall remain in existence until
26    December 31, 1999. Moneys remaining in the Fund after

 

 

HB5034- 36 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 37 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 38 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 39 -LRB101 20532 SMS 70139 b

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

 

 

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1        promote the Illinois horse racing and breeding
2        industry, and shall be distributed by the Department of
3        Agriculture upon the advice of a 9-member committee
4        appointed by the Governor consisting of the following
5        members: the Director of Agriculture, who shall serve
6        as chairman; 2 representatives of organization
7        licensees conducting thoroughbred race meetings in
8        this State, recommended by those licensees; 2
9        representatives of organization licensees conducting
10        standardbred race meetings in this State, recommended
11        by those licensees; a representative of the Illinois
12        Thoroughbred Breeders and Owners Foundation,
13        recommended by that Foundation; a representative of
14        the Illinois Standardbred Owners and Breeders
15        Association, recommended by that Association; a
16        representative of the Horsemen's Benevolent and
17        Protective Association or any successor organization
18        thereto established in Illinois comprised of the
19        largest number of owners and trainers, recommended by
20        that Association or that successor organization; and a
21        representative of the Illinois Harness Horsemen's
22        Association, recommended by that Association.
23        Committee members shall serve for terms of 2 years,
24        commencing January 1 of each even-numbered year. If a
25        representative of any of the above-named entities has
26        not been recommended by January 1 of any even-numbered

 

 

HB5034- 41 -LRB101 20532 SMS 70139 b

1        year, the Governor shall appoint a committee member to
2        fill that position. Committee members shall receive no
3        compensation for their services as members but shall be
4        reimbursed for all actual and necessary expenses and
5        disbursements incurred in the performance of their
6        official duties. The remaining 50% of this
7        two-sevenths shall be distributed to county fairs for
8        premiums and rehabilitation as set forth in the
9        Agricultural Fair Act;
10            Four-sevenths to museums and aquariums located in
11        park districts of over 500,000 population; provided
12        that the monies are distributed in accordance with the
13        previous year's distribution of the maintenance tax
14        for such museums and aquariums as provided in Section 2
15        of the Park District Aquarium and Museum Act; and
16            One-seventh to the Agricultural Premium Fund to be
17        used for distribution to agricultural home economics
18        extension councils in accordance with "An Act in
19        relation to additional support and finances for the
20        Agricultural and Home Economic Extension Councils in
21        the several counties of this State and making an
22        appropriation therefor", approved July 24, 1967. This
23        subparagraph (C) shall be inoperative and of no force
24        and effect on and after January 1, 2000.
25            (D) Except as provided in paragraph (11) of this
26        subsection (h), with respect to purse allocation from

 

 

HB5034- 42 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 43 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 44 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 45 -LRB101 20532 SMS 70139 b

1        civil penalties of up to $5,000 against individuals and
2        up to $10,000 against licensees for each violation of
3        any provision of this Act relating to the conduct of
4        this wagering, any rules adopted by the Board, any
5        order of the Board or any other action which in the
6        Board's discretion, is a detriment or impediment to
7        such wagering.
8        (13) The Department of Agriculture may enter into
9    agreements with licensees authorizing such licensees to
10    conduct inter-track wagering on races to be held at the
11    licensed race meetings conducted by the Department of
12    Agriculture. Such agreement shall specify the races of the
13    Department of Agriculture's licensed race meeting upon
14    which the licensees will conduct wagering. In the event
15    that a licensee conducts inter-track pari-mutuel wagering
16    on races from the Illinois State Fair or DuQuoin State Fair
17    which are in addition to the licensee's previously approved
18    racing program, those races shall be considered a separate
19    racing day for the purpose of determining the daily handle
20    and computing the privilege or pari-mutuel tax on that
21    daily handle as provided in Sections 27 and 27.1. Such
22    agreements shall be approved by the Board before such
23    wagering may be conducted. In determining whether to grant
24    approval, the Board shall give due consideration to the
25    best interests of the public and of horse racing. The
26    provisions of paragraphs (1), (8), (8.1), and (8.2) of

 

 

HB5034- 46 -LRB101 20532 SMS 70139 b

1    subsection (h) of this Section which are not specified in
2    this paragraph (13) shall not apply to licensed race
3    meetings conducted by the Department of Agriculture at the
4    Illinois State Fair in Sangamon County or the DuQuoin State
5    Fair in Perry County, or to any wagering conducted on those
6    race meetings.
7        (14) An inter-track wagering location license
8    authorized by the Board in 2016 that is owned and operated
9    by a race track in Rock Island County shall be transferred
10    to a commonly owned race track in Cook County on August 12,
11    2016 (the effective date of Public Act 99-757). The
12    licensee shall retain its status in relation to purse
13    distribution under paragraph (11) of this subsection (h)
14    following the transfer to the new entity. The pari-mutuel
15    tax credit under Section 32.1 shall not be applied toward
16    any pari-mutuel tax obligation of the inter-track wagering
17    location licensee of the license that is transferred under
18    this paragraph (14).
19    (i) Notwithstanding the other provisions of this Act, the
20conduct of wagering at wagering facilities is authorized on all
21days, except as limited by subsection (b) of Section 19 of this
22Act.
23(Source: P.A. 100-201, eff. 8-18-17; 100-627, eff. 7-20-18;
24100-1152, eff. 12-14-18; 101-31, eff. 6-28-19; 101-52, eff.
257-12-19; 101-81, eff. 7-12-19; 101-109, eff. 7-19-19; revised
269-27-19.)
 

 

 

HB5034- 47 -LRB101 20532 SMS 70139 b

1    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
2    Sec. 27. (a) In addition to the organization license fee
3provided by this Act, until January 1, 2000, a graduated
4privilege tax is hereby imposed for conducting the pari-mutuel
5system of wagering permitted under this Act. Until January 1,
62000, except as provided in subsection (g) of Section 27 of
7this Act, all of the breakage of each racing day held by any
8licensee in the State shall be paid to the State. Until January
91, 2000, such daily graduated privilege tax shall be paid by
10the licensee from the amount permitted to be retained under
11this Act. Until January 1, 2000, each day's graduated privilege
12tax, breakage, and Horse Racing Tax Allocation funds shall be
13remitted to the Department of Revenue within 48 hours after the
14close of the racing day upon which it is assessed or within
15such other time as the Board prescribes. The privilege tax
16hereby imposed, until January 1, 2000, shall be a flat tax at
17the rate of 2% of the daily pari-mutuel handle except as
18provided in Section 27.1.
19    In addition, every organization licensee, except as
20provided in Section 27.1 of this Act, which conducts multiple
21wagering shall pay, until January 1, 2000, as a privilege tax
22on multiple wagers an amount equal to 1.25% of all moneys
23wagered each day on such multiple wagers, plus an additional
24amount equal to 3.5% of the amount wagered each day on any
25other multiple wager which involves a single betting interest

 

 

HB5034- 48 -LRB101 20532 SMS 70139 b

1on 3 or more horses. The licensee shall remit the amount of
2such taxes to the Department of Revenue within 48 hours after
3the close of the racing day on which it is assessed or within
4such other time as the Board prescribes.
5    This subsection (a) shall be inoperative and of no force
6and effect on and after January 1, 2000.
7    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
8at the rate of 1.5% of the daily pari-mutuel handle is imposed
9at all pari-mutuel wagering facilities and on advance deposit
10wagering from a location other than a wagering facility, except
11as otherwise provided for in this subsection (a-5). In addition
12to the pari-mutuel tax imposed on advance deposit wagering
13pursuant to this subsection (a-5), beginning on August 24, 2012
14(the effective date of Public Act 97-1060), an additional
15pari-mutuel tax at the rate of 0.25% shall be imposed on
16advance deposit wagering. Until August 25, 2012, the additional
170.25% pari-mutuel tax imposed on advance deposit wagering by
18Public Act 96-972 shall be deposited into the Quarter Horse
19Purse Fund, which shall be created as a non-appropriated trust
20fund administered by the Board for grants to thoroughbred
21organization licensees for payment of purses for quarter horse
22races conducted by the organization licensee. Beginning on
23August 26, 2012, the additional 0.25% pari-mutuel tax imposed
24on advance deposit wagering shall be deposited into the
25Standardbred Purse Fund, which shall be created as a
26non-appropriated trust fund administered by the Board, for

 

 

HB5034- 49 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 50 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 51 -LRB101 20532 SMS 70139 b

1amount of taxes is being paid as provided. The Board shall
2require verified reports and a statement of the total of all
3monies wagered daily at each wagering facility upon which the
4taxes are assessed and may prescribe forms upon which such
5reports and statement shall be made.
6    (d) Before a license is issued or re-issued, the licensee
7shall post a bond in the sum of $500,000 to the State of
8Illinois. The bond shall be used to guarantee that the licensee
9faithfully makes the payments, keeps the books and records, and
10makes reports, and conducts games of chance in conformity with
11this Act and the rules adopted by the Board. The bond shall not
12be canceled by a surety on less than 30 days' notice in writing
13to the Board. If a bond is canceled and the licensee fails to
14file a new bond with the Board in the required amount on or
15before the effective date of cancellation, the licensee's
16license shall be revoked. The total and aggregate liability of
17the surety on the bond is limited to the amount specified in
18the bond.
19    (e) No other license fee, privilege tax, excise tax, or
20racing fee, except as provided in this Act, shall be assessed
21or collected from any such licensee by the State.
22    (f) No other license fee, privilege tax, excise tax or
23racing fee shall be assessed or collected from any such
24licensee by units of local government except as provided in
25paragraph 10.1 of subsection (h) and subsection (f) of Section
2626 of this Act. However, any municipality that has a Board

 

 

HB5034- 52 -LRB101 20532 SMS 70139 b

1licensed horse race meeting at a race track wholly within its
2corporate boundaries or a township that has a Board licensed
3horse race meeting at a race track wholly within the
4unincorporated area of the township may charge a local
5amusement tax not to exceed 10¢ per admission to such horse
6race meeting by the enactment of an ordinance. However, any
7municipality or county that has a Board licensed inter-track
8wagering location facility wholly within its corporate
9boundaries may each impose an admission fee not to exceed $1.00
10per admission to such inter-track wagering location facility,
11so that a total of not more than $2.00 per admission may be
12imposed. Except as provided in subparagraph (g) of Section 27
13of this Act, the inter-track wagering location licensee shall
14collect any and all such fees. Inter-track wagering location
15licensees must pay the admission fees required under this
16subsection (f) to the municipality and county no later than the
1720th of the month following the month such admission fees were
18imposed. as the Board prescribes
19    (g) Notwithstanding any provision in this Act to the
20contrary, if in any calendar year the total taxes and fees from
21wagering on live racing and from inter-track wagering required
22to be collected from licensees and distributed under this Act
23to all State and local governmental authorities exceeds the
24amount of such taxes and fees distributed to each State and
25local governmental authority to which each State and local
26governmental authority was entitled under this Act for calendar

 

 

HB5034- 53 -LRB101 20532 SMS 70139 b

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

 

 

HB5034- 54 -LRB101 20532 SMS 70139 b

1    Breeders Funds Advisory Board for the purposes listed in
2    subsection (g) of Section 31 of this Act, before the amount
3    allocated to standardbred purses under item (i) is
4    allocated to standardbred organization licensees in the
5    succeeding allocation year.
6    To the extent the excess amount of taxes and fees to be
7collected and distributed to State and local governmental
8authorities exceeds $11 million, that excess amount shall be
9collected and distributed to State and local authorities as
10provided for under this Act.
11(Source: P.A. 100-627, eff. 7-20-18; 101-31, eff. 6-28-19;
12101-52, eff. 7-12-19; revised 8-28-19.)
 
13    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
14    Sec. 31.1. (a) Unless subsection (a-5) applies,
15organization licensees collectively shall contribute annually
16to charity the sum of $750,000 to non-profit organizations that
17provide medical and family, counseling, and similar services to
18persons who reside or work on the backstretch of Illinois
19racetracks. Unless subsection (a-5) applies, these
20contributions shall be collected as follows: (i) no later than
21July 1st of each year the Board shall assess each organization
22licensee, except those tracks located in Madison County, which
23tracks shall pay $30,000 annually apiece into the Board charity
24fund, that amount which equals $690,000 multiplied by the
25amount of pari-mutuel wagering handled by the organization

 

 

HB5034- 55 -LRB101 20532 SMS 70139 b

1licensee in the year preceding assessment and divided by the
2total pari-mutuel wagering handled by all Illinois
3organization licensees, except those tracks located in Madison
4and Rock Island counties, in the year preceding assessment;
5(ii) notice of the assessed contribution shall be mailed to
6each organization licensee; (iii) within thirty days of its
7receipt of such notice, each organization licensee shall remit
8the assessed contribution to the Board. Unless subsection (a-5)
9applies, if an organization licensee commences operation of
10gaming at its facility pursuant to an organization gaming
11license under the Illinois Gambling Act, then the organization
12licensee shall contribute an additional $83,000 per year
13beginning in the year subsequent to the first year in which the
14organization licensee begins receiving funds from gaming
15pursuant to an organization gaming license. If an organization
16licensee wilfully fails to so remit the contribution, the Board
17may revoke its license to conduct horse racing.
18    (a-5) If (1) an organization licensee that did not operate
19live racing in 2017 is awarded racing dates in 2018 or in any
20subsequent year and (2) all organization licensees are
21operating gaming pursuant to an organization gaming license
22under the Illinois Gambling Act, then subsection (a) does not
23apply and organization licensees collectively shall contribute
24annually to charity the sum of $1,000,000 to non-profit
25organizations that provide medical and family, counseling, and
26similar services to persons who reside or work on the

 

 

HB5034- 56 -LRB101 20532 SMS 70139 b

1backstretch of Illinois racetracks. These contributions shall
2be collected as follows: (i) no later than July 1st of each
3year the Board shall assess each organization licensee an
4amount based on the proportionate amount of live racing days in
5the calendar year for which the Board has awarded to the
6organization licensee out of the total aggregate number of live
7racing days awarded; (ii) notice of the assessed contribution
8shall be mailed to each organization licensee; (iii) within 30
9days after its receipt of such notice, each organization
10licensee shall remit the assessed contribution to the Board. If
11an organization licensee willfully fails to so remit the
12contribution, the Board may revoke its license to conduct horse
13racing.
14    (b) No later than October 1st of each year, any qualified
15charitable organization seeking an allotment of contributed
16funds shall submit to the Board an application for those funds,
17using the Board's approved form. The No later than December
1831st of each year, the Board shall distribute all such amounts
19collected that year to such charitable organization applicants
20on a schedule determined by the Board, based on the charitable
21organization's estimated expenditures related to this grant.
22(Source: P.A. 101-31, eff. 6-28-19.)
 
23    (230 ILCS 5/34.3 rep.)
24    Section 10. The Illinois Horse Racing Act of 1975 is
25amended by repealing Section 34.3.
 

 

 

HB5034- 57 -LRB101 20532 SMS 70139 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.