101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5090

 

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

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/20  from Ch. 8, par. 37-20

    Amends the Illinois Horse Racing Act of 1975. Provides that for the third year of operation by an organization gaming licensee, the Illinois Racing Board shall award no fewer than 200 days in total of standardbred racing (rather than requiring the Board to award no fewer than 120 days of racing when a single entity requests standardbred racing dates). Deletes language authorizing the Board to reduce the number of days if no dates are requested for the first 3 months of a calendar year. Deletes language requiring the Board to award no fewer than 200 days of racing between applicants if more than one entity requests standardbred racing dates.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5090LRB101 17400 SMS 66805 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 Section 20 as follows:
 
6    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
7    Sec. 20. (a) Any person desiring to conduct a horse race
8meeting may apply to the Board for an organization license. The
9application shall be made on a form prescribed and furnished by
10the Board. The application shall specify:
11        (1) the dates on which it intends to conduct the horse
12    race meeting, which dates shall be provided under Section
13    21;
14        (2) the hours of each racing day between which it
15    intends to hold or conduct horse racing at such meeting;
16        (3) the location where it proposes to conduct the
17    meeting; and
18        (4) any other information the Board may reasonably
19    require.
20    (b) A separate application for an organization license
21shall be filed for each horse race meeting which such person
22proposes to hold. Any such application, if made by an
23individual, or by any individual as trustee, shall be signed

 

 

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1and verified under oath by such individual. If the application
2is made by individuals, then it shall be signed and verified
3under oath by at least 2 of the individuals; if the application
4is made by a partnership, an association, a corporation, a
5corporate trustee, a limited liability company, or any other
6entity, it shall be signed by an authorized officer, a partner,
7a member, or a manager, as the case may be, of the entity.
8    (c) The application shall specify:
9        (1) the name of the persons, association, trust, or
10    corporation making such application;
11        (2) the principal address of the applicant;
12        (3) if the applicant is a trustee, the names and
13    addresses of the beneficiaries; if the applicant is a
14    corporation, the names and addresses of all officers,
15    stockholders and directors; or if such stockholders hold
16    stock as a nominee or fiduciary, the names and addresses of
17    the parties who are the beneficial owners thereof or who
18    are beneficially interested therein; if the applicant is a
19    partnership, the names and addresses of all partners,
20    general or limited; if the applicant is a limited liability
21    company, the names and addresses of the manager and
22    members; and if the applicant is any other entity, the
23    names and addresses of all officers or other authorized
24    persons of the entity.
25    (d) The applicant shall execute and file with the Board a
26good faith affirmative action plan to recruit, train, and

 

 

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1upgrade minorities in all classifications within the
2association.
3    (e) With such application there shall be delivered to the
4Board a certified check or bank draft payable to the order of
5the Board for an amount equal to $1,000. All applications for
6the issuance of an organization license shall be filed with the
7Board before August 1 of the year prior to the year for which
8application is made and shall be acted upon by the Board at a
9meeting to be held on such date as shall be fixed by the Board
10during the last 15 days of September of such prior year. At
11such meeting, the Board shall announce the award of the racing
12meets, live racing schedule, and designation of host track to
13the applicants and its approval or disapproval of each
14application. No announcement shall be considered binding until
15a formal order is executed by the Board, which shall be
16executed no later than October 15 of that prior year. Absent
17the agreement of the affected organization licensees, the Board
18shall not grant overlapping race meetings to 2 or more tracks
19that are within 100 miles of each other to conduct the
20thoroughbred racing.
21    (e-1) The Board shall award standardbred racing dates to
22organization licensees with an organization gaming license
23pursuant to the following schedule:
24        (1) For the first calendar year of operation of
25    gambling games by an organization gaming licensee under
26    Public Act 101-31 this amendatory Act of the 101st General

 

 

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1    Assembly, when a single entity requests standardbred
2    racing dates, the Board shall award no fewer than 100 days
3    of racing. The 100-day requirement may be reduced to no
4    fewer than 80 days if no dates are requested for the first
5    3 months of a calendar year. If more than one entity
6    requests standardbred racing dates, the Board shall award
7    no fewer than 140 days of racing between the applicants.
8        (2) For the second calendar year of operation of
9    gambling games by an organization gaming licensee under
10    Public Act 101-31 this amendatory Act of the 101st General
11    Assembly, when a single entity requests standardbred
12    racing dates, the Board shall award no fewer than 100 days
13    of racing. The 100-day requirement may be reduced to no
14    fewer than 80 days if no dates are requested for the first
15    3 months of a calendar year. If more than one entity
16    requests standardbred racing dates, the Board shall award
17    no fewer than 160 days of racing between the applicants.
18        (3) For the third calendar year of operation of
19    gambling games by an organization gaming licensee under
20    Public Act 101-31 this amendatory Act of the 101st General
21    Assembly, and each calendar year thereafter, when a single
22    entity requests standardbred racing dates, the Board shall
23    award no fewer than 200 120 days in total of standardbred
24    racing. The 120-day requirement may be reduced to no fewer
25    than 100 days if no dates are requested for the first 3
26    months of a calendar year. If more than one entity requests

 

 

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1    standardbred racing dates, the Board shall award no fewer
2    than 200 days of racing between the applicants.
3    An organization licensee shall apply for racing dates
4pursuant to this subsection (e-1). In awarding racing dates
5under this subsection (e-1), the Board shall have the
6discretion to allocate those standardbred racing dates among
7these organization licensees.
8    (e-2) The Board shall award thoroughbred racing days to
9Cook County organization licensees pursuant to the following
10schedule:
11        (1) During the first year in which only one
12    organization licensee is awarded an organization gaming
13    license, the Board shall award no fewer than 110 days of
14    racing.
15        During the second year in which only one organization
16    licensee is awarded an organization gaming license, the
17    Board shall award no fewer than 115 racing days.
18        During the third year and every year thereafter, in
19    which only one organization licensee is awarded an
20    organization gaming license, the Board shall award no fewer
21    than 120 racing days.
22        (2) During the first year in which 2 organization
23    licensees are awarded an organization gaming license, the
24    Board shall award no fewer than 139 total racing days.
25        During the second year in which 2 organization
26    licensees are awarded an organization gaming license, the

 

 

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1    Board shall award no fewer than 160 total racing days.
2        During the third year and every year thereafter in
3    which 2 organization licensees are awarded an organization
4    gaming license, the Board shall award no fewer than 174
5    total racing days.
6    A Cook County organization licensee shall apply for racing
7dates pursuant to this subsection (e-2). In awarding racing
8dates under this subsection (e-2), the Board shall have the
9discretion to allocate those thoroughbred racing dates among
10these Cook County organization licensees.
11    (e-3) In awarding racing dates for calendar year 2020 and
12thereafter in connection with a racetrack in Madison County,
13the Board shall award racing dates and such organization
14licensee shall run at least 700 thoroughbred races at the
15racetrack in Madison County each year.
16    Notwithstanding Section 7.7 of the Illinois Gambling Act or
17any provision of this Act other than subsection (e-4.5), for
18each calendar year for which an organization gaming licensee
19located in Madison County requests racing dates resulting in
20less than 700 live thoroughbred races at its racetrack
21facility, the organization gaming licensee may not conduct
22gaming pursuant to an organization gaming license issued under
23the Illinois Gambling Act for the calendar year of such
24requested live races.
25    (e-4) Notwithstanding the provisions of Section 7.7 of the
26Illinois Gambling Act or any provision of this Act other than

 

 

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1subsections (e-3) and (e-4.5), for each calendar year for which
2an organization gaming licensee requests thoroughbred racing
3dates which results in a number of live races under its
4organization license that is less than the total number of live
5races which it conducted in 2017 at its racetrack facility, the
6organization gaming licensee may not conduct gaming pursuant to
7its organization gaming license for the calendar year of such
8requested live races.
9    (e-4.1) Notwithstanding the provisions of Section 7.7 of
10the Illinois Gambling Act or any provision of this Act other
11than subsections (e-3) and (e-4.5), for each calendar year for
12which an organization licensee requests racing dates for
13standardbred racing which results in a number of live races
14that is less than the total number of live races required in
15subsection (e-1), the organization gaming licensee may not
16conduct gaming pursuant to its organization gaming license for
17the calendar year of such requested live races.
18    (e-4.5) The Board shall award the minimum live racing
19guarantees contained in subsections (e-1), (e-2), and (e-3) to
20ensure that each organization licensee shall individually run a
21sufficient number of races per year to qualify for an
22organization gaming license under this Act. The General
23Assembly finds that the minimum live racing guarantees
24contained in subsections (e-1), (e-2), and (e-3) are in the
25best interest of the sport of horse racing, and that such
26guarantees may only be reduced in the calendar year in which

 

 

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1they will be conducted in the limited circumstances described
2in this subsection. The Board may decrease the number of racing
3days without affecting an organization licensee's ability to
4conduct gaming pursuant to an organization gaming license
5issued under the Illinois Gambling Act only if the Board
6determines, after notice and hearing, that:
7        (i) a decrease is necessary to maintain a sufficient
8    number of betting interests per race to ensure the
9    integrity of racing;
10        (ii) there are unsafe track conditions due to weather
11    or acts of God;
12        (iii) there is an agreement between an organization
13    licensee and the breed association that is applicable to
14    the involved live racing guarantee, such association
15    representing either the largest number of thoroughbred
16    owners and trainers or the largest number of standardbred
17    owners, trainers and drivers who race horses at the
18    involved organization licensee's racing meeting, so long
19    as the agreement does not compromise the integrity of the
20    sport of horse racing; or
21        (iv) the horse population or purse levels are
22    insufficient to provide the number of racing opportunities
23    otherwise required in this Act.
24    In decreasing the number of racing dates in accordance with
25this subsection, the Board shall hold a hearing and shall
26provide the public and all interested parties notice and an

 

 

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1opportunity to be heard. The Board shall accept testimony from
2all interested parties, including any association representing
3owners, trainers, jockeys, or drivers who will be affected by
4the decrease in racing dates. The Board shall provide a written
5explanation of the reasons for the decrease and the Board's
6findings. The written explanation shall include a listing and
7content of all communication between any party and any Illinois
8Racing Board member or staff that does not take place at a
9public meeting of the Board.
10    (e-5) In reviewing an application for the purpose of
11granting an organization license consistent with the best
12interests of the public and the sport of horse racing, the
13Board shall consider:
14        (1) the character, reputation, experience, and
15    financial integrity of the applicant and of any other
16    separate person that either:
17            (i) controls the applicant, directly or
18        indirectly, or
19            (ii) is controlled, directly or indirectly, by
20        that applicant or by a person who controls, directly or
21        indirectly, that applicant;
22        (2) the applicant's facilities or proposed facilities
23    for conducting horse racing;
24        (3) the total revenue without regard to Section 32.1 to
25    be derived by the State and horsemen from the applicant's
26    conducting a race meeting;

 

 

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1        (4) the applicant's good faith affirmative action plan
2    to recruit, train, and upgrade minorities in all employment
3    classifications;
4        (5) the applicant's financial ability to purchase and
5    maintain adequate liability and casualty insurance;
6        (6) the applicant's proposed and prior year's
7    promotional and marketing activities and expenditures of
8    the applicant associated with those activities;
9        (7) an agreement, if any, among organization licensees
10    as provided in subsection (b) of Section 21 of this Act;
11    and
12        (8) the extent to which the applicant exceeds or meets
13    other standards for the issuance of an organization license
14    that the Board shall adopt by rule.
15    In granting organization licenses and allocating dates for
16horse race meetings, the Board shall have discretion to
17determine an overall schedule, including required simulcasts
18of Illinois races by host tracks that will, in its judgment, be
19conducive to the best interests of the public and the sport of
20horse racing.
21    (e-10) The Illinois Administrative Procedure Act shall
22apply to administrative procedures of the Board under this Act
23for the granting of an organization license, except that (1)
24notwithstanding the provisions of subsection (b) of Section
2510-40 of the Illinois Administrative Procedure Act regarding
26cross-examination, the Board may prescribe rules limiting the

 

 

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1right of an applicant or participant in any proceeding to award
2an organization license to conduct cross-examination of
3witnesses at that proceeding where that cross-examination
4would unduly obstruct the timely award of an organization
5license under subsection (e) of Section 20 of this Act; (2) the
6provisions of Section 10-45 of the Illinois Administrative
7Procedure Act regarding proposals for decision are excluded
8under this Act; (3) notwithstanding the provisions of
9subsection (a) of Section 10-60 of the Illinois Administrative
10Procedure Act regarding ex parte communications, the Board may
11prescribe rules allowing ex parte communications with
12applicants or participants in a proceeding to award an
13organization license where conducting those communications
14would be in the best interest of racing, provided all those
15communications are made part of the record of that proceeding
16pursuant to subsection (c) of Section 10-60 of the Illinois
17Administrative Procedure Act; (4) the provisions of Section 14a
18of this Act and the rules of the Board promulgated under that
19Section shall apply instead of the provisions of Article 10 of
20the Illinois Administrative Procedure Act regarding
21administrative law judges; and (5) the provisions of subsection
22(d) of Section 10-65 of the Illinois Administrative Procedure
23Act that prevent summary suspension of a license pending
24revocation or other action shall not apply.
25    (f) The Board may allot racing dates to an organization
26licensee for more than one calendar year but for no more than 3

 

 

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

 

 

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

 

 

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1Upon compliance with the provisions of paragraphs (1), (2), and
2(3) of this subsection (h), the applicant shall be issued an
3organization license.
4    If any applicant fails to comply with this Section or fails
5to pay the organization license fees herein provided, no
6organization license shall be issued to such applicant.
7(Source: P.A. 101-31, eff. 6-28-19.)