Sen. Terry Link

Filed: 5/11/2016

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 940

2    AMENDMENT NO. ______. Amend House Bill 940 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Horse Racing Act of 1975 is
5amended by changing Section 26 as follows:
 
6    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
7    Sec. 26. Wagering.
8    (a) Any licensee may conduct and supervise the pari-mutuel
9system of wagering, as defined in Section 3.12 of this Act, on
10horse races conducted by an Illinois organization licensee or
11conducted at a racetrack located in another state or country
12and televised in Illinois in accordance with subsection (g) of
13Section 26 of this Act. Subject to the prior consent of the
14Board, licensees may supplement any pari-mutuel pool in order
15to guarantee a minimum distribution. Such pari-mutuel method of
16wagering shall not, under any circumstances if conducted under

 

 

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

 

 

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

 

 

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

 

 

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1established by other states.
2    (g) A host track may accept interstate simulcast wagers on
3horse races conducted in other states or countries and shall
4control the number of signals and types of breeds of racing in
5its simulcast program, subject to the disapproval of the Board.
6The Board may prohibit a simulcast program only if it finds
7that the simulcast program is clearly adverse to the integrity
8of racing. The host track simulcast program shall include the
9signal of live racing of all organization licensees. All
10non-host licensees and advance deposit wagering licensees
11shall carry the signal of and accept wagers on live racing of
12all organization licensees. Advance deposit wagering licensees
13shall not be permitted to accept out-of-state wagers on any
14Illinois signal provided pursuant to this Section without the
15approval and consent of the organization licensee providing the
16signal. For one year after the effective date of this
17amendatory Act of the 98th General Assembly, non-host licensees
18may carry the host track simulcast program and shall accept
19wagers on all races included as part of the simulcast program
20of horse races conducted at race tracks located within North
21America upon which wagering is permitted. For a period of one
22year after the effective date of this amendatory Act of the
2398th General Assembly, on horse races conducted at race tracks
24located outside of North America, non-host licensees may accept
25wagers on all races included as part of the simulcast program
26upon which wagering is permitted. Beginning one year after the

 

 

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1effective date of this amendatory Act of the 98th General
2Assembly, non-host licensees may carry the host track simulcast
3program and shall accept wagers on all races included as part
4of the simulcast program upon which wagering is permitted. All
5organization licensees shall provide their live signal to all
6advance deposit wagering licensees for a simulcast commission
7fee not to exceed 6% of the advance deposit wagering licensee's
8Illinois handle on the organization licensee's signal without
9prior approval by the Board. The Board may adopt rules under
10which it may permit simulcast commission fees in excess of 6%.
11The Board shall adopt rules limiting the interstate commission
12fees charged to an advance deposit wagering licensee. The Board
13shall adopt rules regarding advance deposit wagering on
14interstate simulcast races that shall reflect, among other
15things, the General Assembly's desire to maximize revenues to
16the State, horsemen purses, and organizational licensees.
17However, organization licensees providing live signals
18pursuant to the requirements of this subsection (g) may
19petition the Board to withhold their live signals from an
20advance deposit wagering licensee if the organization licensee
21discovers and the Board finds reputable or credible information
22that the advance deposit wagering licensee is under
23investigation by another state or federal governmental agency,
24the advance deposit wagering licensee's license has been
25suspended in another state, or the advance deposit wagering
26licensee's license is in revocation proceedings in another

 

 

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1state. The organization licensee's provision of their live
2signal to an advance deposit wagering licensee under this
3subsection (g) pertains to wagers placed from within Illinois.
4Advance deposit wagering licensees may place advance deposit
5wagering terminals at wagering facilities as a convenience to
6customers. The advance deposit wagering licensee shall not
7charge or collect any fee from purses for the placement of the
8advance deposit wagering terminals. The costs and expenses of
9the host track and non-host licensees associated with
10interstate simulcast wagering, other than the interstate
11commission fee, shall be borne by the host track and all
12non-host licensees incurring these costs. The interstate
13commission fee shall not exceed 5% of Illinois handle on the
14interstate simulcast race or races without prior approval of
15the Board. The Board shall promulgate rules under which it may
16permit interstate commission fees in excess of 5%. The
17interstate commission fee and other fees charged by the sending
18racetrack, including, but not limited to, satellite decoder
19fees, shall be uniformly applied to the host track and all
20non-host licensees.
21    Notwithstanding any other provision of this Act, until
22February 1, 2017, an organization licensee, with the consent of
23the horsemen association representing the largest number of
24owners, trainers, jockeys, or standardbred drivers who race
25horses at that organization licensee's racing meeting, may
26maintain a system whereby advance deposit wagering may take

 

 

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1place or an organization licensee, with the consent of the
2horsemen association representing the largest number of
3owners, trainers, jockeys, or standardbred drivers who race
4horses at that organization licensee's racing meeting, may
5contract with another person to carry out a system of advance
6deposit wagering. Such consent may not be unreasonably
7withheld. Only with respect to an appeal to the Board that
8consent for an organization licensee that maintains its own
9advance deposit wagering system is being unreasonably
10withheld, the Board shall issue a final order within 30 days
11after initiation of the appeal, and the organization licensee's
12advance deposit wagering system may remain operational during
13that 30-day period. The actions of any organization licensee
14who conducts advance deposit wagering or any person who has a
15contract with an organization licensee to conduct advance
16deposit wagering who conducts advance deposit wagering on or
17after January 1, 2013 and prior to the effective date of this
18amendatory Act of the 98th General Assembly taken in reliance
19on the changes made to this subsection (g) by this amendatory
20Act of the 98th General Assembly are hereby validated, provided
21payment of all applicable pari-mutuel taxes are remitted to the
22Board. All advance deposit wagers placed from within Illinois
23must be placed through a Board-approved advance deposit
24wagering licensee; no other entity may accept an advance
25deposit wager from a person within Illinois. All advance
26deposit wagering is subject to any rules adopted by the Board.

 

 

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1The Board may adopt rules necessary to regulate advance deposit
2wagering through the use of emergency rulemaking in accordance
3with Section 5-45 of the Illinois Administrative Procedure Act.
4The General Assembly finds that the adoption of rules to
5regulate advance deposit wagering is deemed an emergency and
6necessary for the public interest, safety, and welfare. An
7advance deposit wagering licensee may retain all moneys as
8agreed to by contract with an organization licensee. Any moneys
9retained by the organization licensee from advance deposit
10wagering, not including moneys retained by the advance deposit
11wagering licensee, shall be paid 50% to the organization
12licensee's purse account and 50% to the organization licensee.
13With the exception of any organization licensee that is owned
14by a publicly traded company that is incorporated in a state
15other than Illinois and advance deposit wagering licensees
16under contract with such organization licensees, organization
17licensees that maintain advance deposit wagering systems and
18advance deposit wagering licensees that contract with
19organization licensees shall provide sufficiently detailed
20monthly accountings to the horsemen association representing
21the largest number of owners, trainers, jockeys, or
22standardbred drivers who race horses at that organization
23licensee's racing meeting so that the horsemen association, as
24an interested party, can confirm the accuracy of the amounts
25paid to the purse account at the horsemen association's
26affiliated organization licensee from advance deposit

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        February, inclusive, if no live thoroughbred racing is
2        occurring in Illinois during this period, when the
3        interstate simulcast is a standardbred race, the purse
4        share to its standardbred purse account;
5            (B) Between January 1 and the third Friday in
6        February, inclusive, if no live thoroughbred racing is
7        occurring in Illinois during this period, and the
8        interstate simulcast is a thoroughbred race, the purse
9        share to its interstate simulcast purse pool to be
10        distributed under paragraph (10) of this subsection
11        (g);
12            (C) Between January 1 and the third Friday in
13        February, inclusive, if live thoroughbred racing is
14        occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
15        the purse share from wagers made during this time
16        period to its thoroughbred purse account and between
17        6:30 p.m. and 6:30 a.m. the purse share from wagers
18        made during this time period to its standardbred purse
19        accounts;
20            (D) Between the third Saturday in February and
21        December 31, when the interstate simulcast occurs
22        between the hours of 6:30 a.m. and 6:30 p.m., the purse
23        share to its thoroughbred purse account;
24            (E) Between the third Saturday in February and
25        December 31, when the interstate simulcast occurs
26        between the hours of 6:30 p.m. and 6:30 a.m., the purse

 

 

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1        share to its standardbred purse account.
2        (7.1) Notwithstanding any other provision of this Act
3    to the contrary, if no standardbred racing is conducted at
4    a racetrack located in Madison County during any calendar
5    year beginning on or after January 1, 2002, all moneys
6    derived by that racetrack from simulcast wagering and
7    inter-track wagering that (1) are to be used for purses and
8    (2) are generated between the hours of 6:30 p.m. and 6:30
9    a.m. during that calendar year shall be paid as follows:
10            (A) If the licensee that conducts horse racing at
11        that racetrack requests from the Board at least as many
12        racing dates as were conducted in calendar year 2000,
13        80% shall be paid to its thoroughbred purse account;
14        and
15            (B) Twenty percent shall be deposited into the
16        Illinois Colt Stakes Purse Distribution Fund and shall
17        be paid to purses for standardbred races for Illinois
18        conceived and foaled horses conducted at any county
19        fairgrounds. The moneys deposited into the Fund
20        pursuant to this subparagraph (B) shall be deposited
21        within 2 weeks after the day they were generated, shall
22        be in addition to and not in lieu of any other moneys
23        paid to standardbred purses under this Act, and shall
24        not be commingled with other moneys paid into that
25        Fund. The moneys deposited pursuant to this
26        subparagraph (B) shall be allocated as provided by the

 

 

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1        Department of Agriculture, with the advice and
2        assistance of the Illinois Standardbred Breeders Fund
3        Advisory Board.
4        (7.2) Notwithstanding any other provision of this Act
5    to the contrary, if no thoroughbred racing is conducted at
6    a racetrack located in Madison County during any calendar
7    year beginning on or after January 1, 2002, all moneys
8    derived by that racetrack from simulcast wagering and
9    inter-track wagering that (1) are to be used for purses and
10    (2) are generated between the hours of 6:30 a.m. and 6:30
11    p.m. during that calendar year shall be deposited as
12    follows:
13            (A) If the licensee that conducts horse racing at
14        that racetrack requests from the Board at least as many
15        racing dates as were conducted in calendar year 2000,
16        80% shall be deposited into its standardbred purse
17        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

 

 

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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) If no live standardbred racing is conducted at a
11    racetrack located in Madison County in calendar year 2000
12    or 2001, an organization licensee who is licensed to
13    conduct horse racing at that racetrack shall, before
14    January 1, 2002, pay all moneys derived from simulcast
15    wagering and inter-track wagering in calendar years 2000
16    and 2001 and paid into the licensee's standardbred purse
17    account as follows:
18            (A) Eighty percent to that licensee's thoroughbred
19        purse account to be used for thoroughbred purses; and
20            (B) Twenty percent to the Illinois Colt Stakes
21        Purse Distribution Fund.
22        Failure to make the payment to the Illinois Colt Stakes
23    Purse Distribution Fund before January 1, 2002 shall result
24    in the immediate revocation of the licensee's organization
25    license, inter-track wagering license, and inter-track
26    wagering location license.

 

 

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1        Moneys paid into the Illinois Colt Stakes Purse
2    Distribution Fund pursuant to this paragraph (7.3) shall be
3    paid to purses for standardbred races for Illinois
4    conceived and foaled horses conducted at any county
5    fairgrounds. Moneys paid into the Illinois Colt Stakes
6    Purse Distribution Fund pursuant to this paragraph (7.3)
7    shall be used as determined by the Department of
8    Agriculture, with the advice and assistance of the Illinois
9    Standardbred Breeders Fund Advisory Board, shall be in
10    addition to and not in lieu of any other moneys paid to
11    standardbred purses under this Act, and shall not be
12    commingled with any other moneys paid into that Fund.
13        (7.4) If live standardbred racing is conducted at a
14    racetrack located in Madison County at any time in calendar
15    year 2001 before the payment required under paragraph (7.3)
16    has been made, the organization licensee who is licensed to
17    conduct racing at that racetrack shall pay all moneys
18    derived by that racetrack from simulcast wagering and
19    inter-track wagering during calendar years 2000 and 2001
20    that (1) are to be used for purses and (2) are generated
21    between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or
22    2001 to the standardbred purse account at that racetrack to
23    be used for standardbred purses.
24        (8) Notwithstanding any provision in this Act to the
25    contrary, an organization licensee from a track located in
26    a county with a population in excess of 230,000 and that

 

 

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

 

 

09900HB0940sam001- 20 -LRB099 04769 AMC 48591 a

1    programs.
2        (13) Notwithstanding any other provision of this Act,
3    in the event that the total Illinois pari-mutuel handle on
4    Illinois horse races at all wagering facilities in any
5    calendar year is less than 75% of the total Illinois
6    pari-mutuel handle on Illinois horse races at all such
7    wagering facilities for calendar year 1994, then each
8    wagering facility that has an annual total Illinois
9    pari-mutuel handle on Illinois horse races that is less
10    than 75% of the total Illinois pari-mutuel handle on
11    Illinois horse races at such wagering facility for calendar
12    year 1994, shall be permitted to receive, from any amount
13    otherwise payable to the purse account at the race track
14    with which the wagering facility is affiliated in the
15    succeeding calendar year, an amount equal to 2% of the
16    differential in total Illinois pari-mutuel handle on
17    Illinois horse races at the wagering facility between that
18    calendar year in question and 1994 provided, however, that
19    a wagering facility shall not be entitled to any such
20    payment until the Board certifies in writing to the
21    wagering facility the amount to which the wagering facility
22    is entitled and a schedule for payment of the amount to the
23    wagering facility, based on: (i) the racing dates awarded
24    to the race track affiliated with the wagering facility
25    during the succeeding year; (ii) the sums available or
26    anticipated to be available in the purse account of the

 

 

09900HB0940sam001- 21 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 22 -LRB099 04769 AMC 48591 a

1    at a track where 60 or more days of racing were conducted
2    during the immediately preceding calendar year or where
3    over the 5 immediately preceding calendar years an average
4    of 30 or more days of racing were conducted annually may be
5    issued an inter-track wagering license; (ii) at a track
6    located in a county that is bounded by the Mississippi
7    River, which has a population of less than 150,000
8    according to the 1990 decennial census, and an average of
9    at least 60 days of racing per year between 1985 and 1993
10    may be issued an inter-track wagering license; or (iii) at
11    a track located in Madison County that conducted at least
12    100 days of live racing during the immediately preceding
13    calendar year may be issued an inter-track wagering
14    license, unless a lesser schedule of live racing is the
15    result of (A) weather, unsafe track conditions, or other
16    acts of God; (B) an agreement between the organization
17    licensee and the associations representing the largest
18    number of owners, trainers, jockeys, or standardbred
19    drivers who race horses at that organization licensee's
20    racing meeting; or (C) a finding by the Board of
21    extraordinary circumstances and that it was in the best
22    interest of the public and the sport to conduct fewer than
23    100 days of live racing. Any such person having operating
24    control of the racing facility may also receive up to 6
25    inter-track wagering location licenses. An In no event
26    shall more than 6 inter-track wagering locations be

 

 

09900HB0940sam001- 23 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 24 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 25 -LRB099 04769 AMC 48591 a

1    wagering location licensee may accept wagers at the track
2    or location where it is licensed, or as otherwise provided
3    under this Act.
4        (8) Inter-track wagering or simulcast wagering shall
5    not be conducted at any track less than 5 miles from a
6    track at which a racing meeting is in progress.
7        (8.1) Inter-track wagering location licensees who
8    derive their licenses from a particular organization
9    licensee shall conduct inter-track wagering and simulcast
10    wagering only at locations that are within 160 140 miles of
11    that race track where the particular organization licensee
12    is licensed to conduct racing. However, inter-track
13    wagering and simulcast wagering shall not be conducted by
14    those licensees at any location within 5 miles of any race
15    track at which a horse race meeting has been licensed in
16    the current year, unless the person having operating
17    control of such race track has given its written consent to
18    such inter-track wagering location licensees, which
19    consent must be filed with the Board at or prior to the
20    time application is made. In the case of any inter-track
21    wagering location licensee initially licensed after
22    December 31, 2013, inter-track wagering and simulcast
23    wagering shall not be conducted by those inter-track
24    wagering location licensees that are located outside the
25    City of Chicago at any location within 8 miles of any race
26    track at which a horse race meeting has been licensed in

 

 

09900HB0940sam001- 26 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 27 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 28 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 29 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 30 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 31 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 32 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 33 -LRB099 04769 AMC 48591 a

1    races; during the second 12 months, 5.25%; during the third
2    12 months, 5.75%; during the fourth 12 months, 6.25%; and
3    during the fifth 12 months and thereafter, 6.75%. The
4    following amounts shall be retained by the licensee to
5    satisfy all costs and expenses of conducting its wagering:
6    during the first 12 months the licensee is in operation,
7    8.25% of the pari-mutuel handle wagered at the location;
8    during the second 12 months, 8.25%; during the third 12
9    months, 7.75%; during the fourth 12 months, 7.25%; and
10    during the fifth 12 months and thereafter, 6.75%. For
11    additional intertrack wagering location licensees
12    authorized under this amendatory Act of 1995, purses for
13    the first 12 months the licensee is in operation shall be
14    5.75% of the pari-mutuel wagered at the location, purses
15    for the second 12 months the licensee is in operation shall
16    be 6.25%, and purses thereafter shall be 6.75%. For
17    additional intertrack location licensees authorized under
18    this amendatory Act of 1995, the licensee shall be allowed
19    to retain to satisfy all costs and expenses: 7.75% of the
20    pari-mutuel handle wagered at the location during its first
21    12 months of operation, 7.25% during its second 12 months
22    of operation, and 6.75% thereafter.
23        (C) There is hereby created the Horse Racing Tax
24    Allocation Fund which shall remain in existence until
25    December 31, 1999. Moneys remaining in the Fund after
26    December 31, 1999 shall be paid into the General Revenue

 

 

09900HB0940sam001- 34 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 35 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 36 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 37 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 38 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 39 -LRB099 04769 AMC 48591 a

1        fill that position. Committee members shall receive no
2        compensation for their services as members but shall be
3        reimbursed for all actual and necessary expenses and
4        disbursements incurred in the performance of their
5        official duties. The remaining 50% of this
6        two-sevenths shall be distributed to county fairs for
7        premiums and rehabilitation as set forth in the
8        Agricultural Fair Act;
9            Four-sevenths to museums and aquariums located in
10        park districts of over 500,000 population; provided
11        that the monies are distributed in accordance with the
12        previous year's distribution of the maintenance tax
13        for such museums and aquariums as provided in Section 2
14        of the Park District Aquarium and Museum Act; 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. This
22        subparagraph (C) shall be inoperative and of no force
23        and effect on and after January 1, 2000.
24            (D) Except as provided in paragraph (11) of this
25        subsection (h), with respect to purse allocation from
26        intertrack wagering, the monies so retained shall be

 

 

09900HB0940sam001- 40 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 41 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 42 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 43 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 44 -LRB099 04769 AMC 48591 a

1    meetings conducted by the Department of Agriculture at the
2    Illinois State Fair in Sangamon County or the DuQuoin State
3    Fair in Perry County, or to any wagering conducted on those
4    race meetings.
5    (i) Notwithstanding the other provisions of this Act, the
6conduct of wagering at wagering facilities is authorized on all
7days, except as limited by subsection (b) of Section 19 of this
8Act.
9(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
1098-624, eff. 1-29-14; 98-968, eff. 8-15-14.)
 
11    Section 10. The Video Gaming Act is amended by changing
12Sections 5 and 25 as follows:
 
13    (230 ILCS 40/5)
14    Sec. 5. Definitions. As used in this Act:
15    "Board" means the Illinois Gaming Board.
16    "Credit" means one, 5, 10, or 25 cents either won or
17purchased by a player.
18    "Distributor" means an individual, partnership,
19corporation, or limited liability company licensed under this
20Act to buy, sell, lease, or distribute video gaming terminals
21or major components or parts of video gaming terminals to or
22from terminal operators.
23    "Electronic card" means a card purchased from a licensed
24establishment, licensed fraternal establishment, licensed

 

 

09900HB0940sam001- 45 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 46 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 47 -LRB099 04769 AMC 48591 a

1of 1975, provided any contractual relationship shall not
2include any transfer or offer of revenue from the operation of
3video gaming under this Act to any licensee licensed under the
4Illinois Horse Racing Act of 1975. Provided, however, that the
5licensed establishment that has such a contractual
6relationship with an inter-track wagering location licensee
7may not, itself, be (i) an inter-track wagering location
8licensee, (ii) the corporate parent or subsidiary of any
9licensee licensed under the Illinois Horse Racing Act of 1975,
10or (iii) the corporate subsidiary of a corporation that is also
11the corporate parent or subsidiary of any licensee licensed
12under the Illinois Horse Racing Act of 1975. "Licensed
13establishment" does not include a facility operated by an
14organization licensee or , an inter-track wagering licensee, or
15an inter-track wagering location licensee licensed under the
16Illinois Horse Racing Act of 1975 or a riverboat licensed under
17the Riverboat Gambling Act, except as provided in this
18paragraph. The changes made to this definition by Public Act
1998-587 are declarative of existing law.
20    "Licensed fraternal establishment" means the location
21where a qualified fraternal organization that derives its
22charter from a national fraternal organization regularly
23meets.
24    "Licensed veterans establishment" means the location where
25a qualified veterans organization that derives its charter from
26a national veterans organization regularly meets.

 

 

09900HB0940sam001- 48 -LRB099 04769 AMC 48591 a

1    "Licensed truck stop establishment" means a facility (i)
2that is at least a 3-acre facility with a convenience store,
3(ii) with separate diesel islands for fueling commercial motor
4vehicles, (iii) that sells at retail more than 10,000 gallons
5of diesel or biodiesel fuel per month, and (iv) with parking
6spaces for commercial motor vehicles. "Commercial motor
7vehicles" has the same meaning as defined in Section 18b-101 of
8the Illinois Vehicle Code. The requirement of item (iii) of
9this paragraph may be met by showing that estimated future
10sales or past sales average at least 10,000 gallons per month.
11(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
1298-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
137-16-14.)
 
14    (230 ILCS 40/25)
15    Sec. 25. Restriction of licensees.
16    (a) Manufacturer. A person may not be licensed as a
17manufacturer of a video gaming terminal in Illinois unless the
18person has a valid manufacturer's license issued under this
19Act. A manufacturer may only sell video gaming terminals for
20use in Illinois to persons having a valid distributor's
21license.
22    (b) Distributor. A person may not sell, distribute, or
23lease or market a video gaming terminal in Illinois unless the
24person has a valid distributor's license issued under this Act.
25A distributor may only sell video gaming terminals for use in

 

 

09900HB0940sam001- 49 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 50 -LRB099 04769 AMC 48591 a

1by a terminal operator, distributor, or manufacturer.
2    (d-5) Licensed terminal handler. No person, including, but
3not limited to, an employee or independent contractor working
4for a manufacturer, distributor, supplier, technician, or
5terminal operator licensed pursuant to this Act, shall have
6possession or control of a video gaming terminal, or access to
7the inner workings of a video gaming terminal, unless that
8person possesses a valid terminal handler's license issued
9under this Act.
10    (e) Licensed establishment. No video gaming terminal may be
11placed in any licensed establishment, licensed veterans
12establishment, licensed truck stop establishment, or licensed
13fraternal establishment unless the owner or agent of the owner
14of the licensed establishment, licensed veterans
15establishment, licensed truck stop establishment, or licensed
16fraternal establishment has entered into a written use
17agreement with the terminal operator for placement of the
18terminals. A copy of the use agreement shall be on file in the
19terminal operator's place of business and available for
20inspection by individuals authorized by the Board. A licensed
21establishment, licensed truck stop establishment, licensed
22veterans establishment, or licensed fraternal establishment
23may operate up to 5 video gaming terminals on its premises at
24any time.
25    (f) (Blank).
26    (g) Financial interest restrictions. As used in this Act,

 

 

09900HB0940sam001- 51 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 52 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 53 -LRB099 04769 AMC 48591 a

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

 

 

09900HB0940sam001- 54 -LRB099 04769 AMC 48591 a

1to operate video gaming terminals if the Board determines such
2operation will result in undue economic concentration. For
3purposes of this Section, "undue economic concentration" means
4that a terminal operator would have such actual or potential
5influence over video gaming terminals in Illinois as to:
6        (1) substantially impede or suppress competition among
7    terminal operators;
8        (2) adversely impact the economic stability of the
9    video gaming industry in Illinois; or
10        (3) negatively impact the purposes of the Video Gaming
11    Act.
12    The Board shall adopt rules concerning undue economic
13concentration with respect to the operation of video gaming
14terminals in Illinois. The rules shall include, but not be
15limited to, (i) limitations on the number of video gaming
16terminals operated by any terminal operator within a defined
17geographic radius and (ii) guidelines on the discontinuation of
18operation of any such video gaming terminals the Board
19determines will cause undue economic concentration.
20    (j) The provisions of the Illinois Antitrust Act are fully
21and equally applicable to the activities of any licensee under
22this Act.
23(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
24eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

09900HB0940sam001- 55 -LRB099 04769 AMC 48591 a

1becoming law.".