102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0909

 

Introduced 2/25/2021, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/30  from Ch. 8, par. 37-30

    Amends the Illinois Horse Racing Act of 1975. Makes a technical change in a Section concerning thoroughbred horses.


LRB102 04742 SMS 14761 b

 

 

A BILL FOR

 

SB0909LRB102 04742 SMS 14761 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
5amended by changing Section 30 as follows:
 
6    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
7    Sec. 30. (a) The The General Assembly declares that it is
8the policy of this State to encourage the breeding of
9thoroughbred horses in this State and the ownership of such
10horses by residents of this State in order to provide for:
11sufficient numbers of high quality thoroughbred horses to
12participate in thoroughbred racing meetings in this State, and
13to establish and preserve the agricultural and commercial
14benefits of such breeding and racing industries to the State
15of Illinois. It is the intent of the General Assembly to
16further this policy by the provisions of this Act.
17    (b) Each organization licensee conducting a thoroughbred
18racing meeting pursuant to this Act shall provide at least two
19races each day limited to Illinois conceived and foaled horses
20or Illinois foaled horses or both. A minimum of 6 races shall
21be conducted each week limited to Illinois conceived and
22foaled or Illinois foaled horses or both. No horses shall be
23permitted to start in such races unless duly registered under

 

 

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1the rules of the Department of Agriculture.
2    (c) Conditions of races under subsection (b) shall be
3commensurate with past performance, quality, and class of
4Illinois conceived and foaled and Illinois foaled horses
5available. If, however, sufficient competition cannot be had
6among horses of that class on any day, the races may, with
7consent of the Board, be eliminated for that day and
8substitute races provided.
9    (d) There is hereby created a special fund of the State
10Treasury to be known as the Illinois Thoroughbred Breeders
11Fund.
12    Beginning on the effective date of this amendatory Act of
13the 101st General Assembly, the Illinois Thoroughbred Breeders
14Fund shall become a non-appropriated trust fund held separate
15from State moneys. Expenditures from this Fund shall no longer
16be subject to appropriation.
17    Except as provided in subsection (g) of Section 27 of this
18Act, 8.5% of all the monies received by the State as privilege
19taxes on Thoroughbred racing meetings shall be paid into the
20Illinois Thoroughbred Breeders Fund.
21    Notwithstanding any provision of law to the contrary,
22amounts deposited into the Illinois Thoroughbred Breeders Fund
23from revenues generated by gaming pursuant to an organization
24gaming license issued under the Illinois Gambling Act after
25the effective date of this amendatory Act of the 101st General
26Assembly shall be in addition to tax and fee amounts paid under

 

 

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1this Section for calendar year 2019 and thereafter.
2    (e) The Illinois Thoroughbred Breeders Fund shall be
3administered by the Department of Agriculture with the advice
4and assistance of the Advisory Board created in subsection (f)
5of this Section.
6    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
7shall consist of the Director of the Department of
8Agriculture, who shall serve as Chairman; a member of the
9Illinois Racing Board, designated by it; 2 representatives of
10the organization licensees conducting thoroughbred racing
11meetings, recommended by them; 2 representatives of the
12Illinois Thoroughbred Breeders and Owners Foundation,
13recommended by it; one representative of the Horsemen's
14Benevolent Protective Association; and one representative from
15the Illinois Thoroughbred Horsemen's Association. Advisory
16Board members shall serve for 2 years commencing January 1 of
17each odd numbered year. If representatives of the organization
18licensees conducting thoroughbred racing meetings, the
19Illinois Thoroughbred Breeders and Owners Foundation, the
20Horsemen's Benevolent Protection Association, and the Illinois
21Thoroughbred Horsemen's Association have not been recommended
22by January 1, of each odd numbered year, the Director of the
23Department of Agriculture shall make an appointment for the
24organization failing to so recommend a member of the Advisory
25Board. Advisory Board members shall receive no compensation
26for their services as members but shall be reimbursed for all

 

 

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1actual and necessary expenses and disbursements incurred in
2the execution of their official duties.
3    (g) Monies expended from the Illinois Thoroughbred
4Breeders Fund shall be expended by the Department of
5Agriculture, with the advice and assistance of the Illinois
6Thoroughbred Breeders Fund Advisory Board, for the following
7purposes only:
8        (1) To provide purse supplements to owners of horses
9    participating in races limited to Illinois conceived and
10    foaled and Illinois foaled horses. Any such purse
11    supplements shall not be included in and shall be paid in
12    addition to any purses, stakes, or breeders' awards
13    offered by each organization licensee as determined by
14    agreement between such organization licensee and an
15    organization representing the horsemen. No monies from the
16    Illinois Thoroughbred Breeders Fund shall be used to
17    provide purse supplements for claiming races in which the
18    minimum claiming price is less than $7,500.
19        (2) To provide stakes and awards to be paid to the
20    owners of the winning horses in certain races limited to
21    Illinois conceived and foaled and Illinois foaled horses
22    designated as stakes races.
23        (2.5) To provide an award to the owner or owners of an
24    Illinois conceived and foaled or Illinois foaled horse
25    that wins a maiden special weight, an allowance, overnight
26    handicap race, or claiming race with claiming price of

 

 

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1    $10,000 or more providing the race is not restricted to
2    Illinois conceived and foaled or Illinois foaled horses.
3    Awards shall also be provided to the owner or owners of
4    Illinois conceived and foaled and Illinois foaled horses
5    that place second or third in those races. To the extent
6    that additional moneys are required to pay the minimum
7    additional awards of 40% of the purse the horse earns for
8    placing first, second or third in those races for Illinois
9    foaled horses and of 60% of the purse the horse earns for
10    placing first, second or third in those races for Illinois
11    conceived and foaled horses, those moneys shall be
12    provided from the purse account at the track where earned.
13        (3) To provide stallion awards to the owner or owners
14    of any stallion that is duly registered with the Illinois
15    Thoroughbred Breeders Fund Program whose duly registered
16    Illinois conceived and foaled offspring wins a race
17    conducted at an Illinois thoroughbred racing meeting other
18    than a claiming race, provided that the stallion stood
19    service within Illinois at the time the offspring was
20    conceived and that the stallion did not stand for service
21    outside of Illinois at any time during the year in which
22    the offspring was conceived.
23        (4) To provide $75,000 annually for purses to be
24    distributed to county fairs that provide for the running
25    of races during each county fair exclusively for the
26    thoroughbreds conceived and foaled in Illinois. The

 

 

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

 

 

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1Finance Act.
2    (i) A sum equal to 13% of the first prize money of every
3purse won by an Illinois foaled or Illinois conceived and
4foaled horse in races not limited to Illinois foaled horses or
5Illinois conceived and foaled horses, or both, shall be paid
6by the organization licensee conducting the horse race
7meeting. Such sum shall be paid 50% from the organization
8licensee's share of the money wagered and 50% from the purse
9account as follows: 11 1/2% to the breeder of the winning horse
10and 1 1/2% to the organization representing thoroughbred
11breeders and owners who representative serves on the Illinois
12Thoroughbred Breeders Fund Advisory Board for verifying the
13amounts of breeders' awards earned, ensuring their
14distribution in accordance with this Act, and servicing and
15promoting the Illinois thoroughbred horse racing industry.
16Beginning in the calendar year in which an organization
17licensee that is eligible to receive payments under paragraph
18(13) of subsection (g) of Section 26 of this Act begins to
19receive funds from gaming pursuant to an organization gaming
20license issued under the Illinois Gambling Act, a sum equal to
2121 1/2% of the first prize money of every purse won by an
22Illinois foaled or an Illinois conceived and foaled horse in
23races not limited to an Illinois conceived and foaled horse,
24or both, shall be paid 30% from the organization licensee's
25account and 70% from the purse account as follows: 20% to the
26breeder of the winning horse and 1 1/2% to the organization

 

 

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1representing thoroughbred breeders and owners whose
2representatives serve on the Illinois Thoroughbred Breeders
3Fund Advisory Board for verifying the amounts of breeders'
4awards earned, ensuring their distribution in accordance with
5this Act, and servicing and promoting the Illinois
6Thoroughbred racing industry. The organization representing
7thoroughbred breeders and owners shall cause all expenditures
8of monies received under this subsection (i) to be audited at
9least annually by a registered public accountant. The
10organization shall file copies of each annual audit with the
11Racing Board, the Clerk of the House of Representatives and
12the Secretary of the Senate, and shall make copies of each
13annual audit available to the public upon request and upon
14payment of the reasonable cost of photocopying the requested
15number of copies. Such payments shall not reduce any award to
16the owner of the horse or reduce the taxes payable under this
17Act. Upon completion of its racing meet, each organization
18licensee shall deliver to the organization representing
19thoroughbred breeders and owners whose representative serves
20on the Illinois Thoroughbred Breeders Fund Advisory Board a
21listing of all the Illinois foaled and the Illinois conceived
22and foaled horses which won breeders' awards and the amount of
23such breeders' awards under this subsection to verify accuracy
24of payments and assure proper distribution of breeders' awards
25in accordance with the provisions of this Act. Such payments
26shall be delivered by the organization licensee within 30 days

 

 

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1of the end of each race meeting.
2    (j) A sum equal to 13% of the first prize money won in
3every race limited to Illinois foaled horses or Illinois
4conceived and foaled horses, or both, shall be paid in the
5following manner by the organization licensee conducting the
6horse race meeting, 50% from the organization licensee's share
7of the money wagered and 50% from the purse account as follows:
811 1/2% to the breeders of the horses in each such race which
9are the official first, second, third, and fourth finishers
10and 1 1/2% to the organization representing thoroughbred
11breeders and owners whose representatives serve on the
12Illinois Thoroughbred Breeders Fund Advisory Board for
13verifying the amounts of breeders' awards earned, ensuring
14their proper distribution in accordance with this Act, and
15servicing and promoting the Illinois horse racing industry.
16Beginning in the calendar year in which an organization
17licensee that is eligible to receive payments under paragraph
18(13) of subsection (g) of Section 26 of this Act begins to
19receive funds from gaming pursuant to an organization gaming
20license issued under the Illinois Gambling Act, a sum of 21
211/2% of every purse in a race limited to Illinois foaled horses
22or Illinois conceived and foaled horses, or both, shall be
23paid by the organization licensee conducting the horse race
24meeting. Such sum shall be paid 30% from the organization
25licensee's account and 70% from the purse account as follows:
2620% to the breeders of the horses in each such race who are

 

 

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1official first, second, third and fourth finishers and 1 1/2%
2to the organization representing thoroughbred breeders and
3owners whose representatives serve on the Illinois
4Thoroughbred Breeders Fund Advisory Board for verifying the
5amounts of breeders' awards earned, ensuring their proper
6distribution in accordance with this Act, and servicing and
7promoting the Illinois thoroughbred horse racing industry. The
8organization representing thoroughbred breeders and owners
9shall cause all expenditures of moneys received under this
10subsection (j) to be audited at least annually by a registered
11public accountant. The organization shall file copies of each
12annual audit with the Racing Board, the Clerk of the House of
13Representatives and the Secretary of the Senate, and shall
14make copies of each annual audit available to the public upon
15request and upon payment of the reasonable cost of
16photocopying the requested number of copies. The copies of the
17audit to the General Assembly shall be filed with the Clerk of
18the House of Representatives and the Secretary of the Senate
19in electronic form only, in the manner that the Clerk and the
20Secretary shall direct.
21    The amounts paid to the breeders in accordance with this
22subsection shall be distributed as follows:
23        (1) 60% of such sum shall be paid to the breeder of the
24    horse which finishes in the official first position;
25        (2) 20% of such sum shall be paid to the breeder of the
26    horse which finishes in the official second position;

 

 

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1        (3) 15% of such sum shall be paid to the breeder of the
2    horse which finishes in the official third position; and
3        (4) 5% of such sum shall be paid to the breeder of the
4    horse which finishes in the official fourth position.
5    Such payments shall not reduce any award to the owners of a
6horse or reduce the taxes payable under this Act. Upon
7completion of its racing meet, each organization licensee
8shall deliver to the organization representing thoroughbred
9breeders and owners whose representative serves on the
10Illinois Thoroughbred Breeders Fund Advisory Board a listing
11of all the Illinois foaled and the Illinois conceived and
12foaled horses which won breeders' awards and the amount of
13such breeders' awards in accordance with the provisions of
14this Act. Such payments shall be delivered by the organization
15licensee within 30 days of the end of each race meeting.
16    (k) The term "breeder", as used herein, means the owner of
17the mare at the time the foal is dropped. An "Illinois foaled
18horse" is a foal dropped by a mare which enters this State on
19or before December 1, in the year in which the horse is bred,
20provided the mare remains continuously in this State until its
21foal is born. An "Illinois foaled horse" also means a foal born
22of a mare in the same year as the mare enters this State on or
23before March 1, and remains in this State at least 30 days
24after foaling, is bred back during the season of the foaling to
25an Illinois Registered Stallion (unless a veterinarian
26certifies that the mare should not be bred for health

 

 

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1reasons), and is not bred to a stallion standing in any other
2state during the season of foaling. An "Illinois foaled horse"
3also means a foal born in Illinois of a mare purchased at
4public auction subsequent to the mare entering this State on
5or before March 1 of the foaling year providing the mare is
6owned solely by one or more Illinois residents or an Illinois
7entity that is entirely owned by one or more Illinois
8residents.
9    (l) The Department of Agriculture shall, by rule, with the
10advice and assistance of the Illinois Thoroughbred Breeders
11Fund Advisory Board:
12        (1) Qualify stallions for Illinois breeding; such
13    stallions to stand for service within the State of
14    Illinois at the time of a foal's conception. Such stallion
15    must not stand for service at any place outside the State
16    of Illinois during the calendar year in which the foal is
17    conceived. The Department of Agriculture may assess and
18    collect an application fee of up to $500 for the
19    registration of Illinois-eligible stallions. All fees
20    collected are to be held in trust accounts for the
21    purposes set forth in this Act and in accordance with
22    Section 205-15 of the Department of Agriculture Law.
23        (2) Provide for the registration of Illinois conceived
24    and foaled horses and Illinois foaled horses. No such
25    horse shall compete in the races limited to Illinois
26    conceived and foaled horses or Illinois foaled horses or

 

 

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1    both unless registered with the Department of Agriculture.
2    The Department of Agriculture may prescribe such forms as
3    are necessary to determine the eligibility of such horses.
4    The Department of Agriculture may assess and collect
5    application fees for the registration of Illinois-eligible
6    foals. All fees collected are to be held in trust accounts
7    for the purposes set forth in this Act and in accordance
8    with Section 205-15 of the Department of Agriculture Law.
9    No person shall knowingly prepare or cause preparation of
10    an application for registration of such foals containing
11    false information.
12    (m) The Department of Agriculture, with the advice and
13assistance of the Illinois Thoroughbred Breeders Fund Advisory
14Board, shall provide that certain races limited to Illinois
15conceived and foaled and Illinois foaled horses be stakes
16races and determine the total amount of stakes and awards to be
17paid to the owners of the winning horses in such races.
18    In determining the stakes races and the amount of awards
19for such races, the Department of Agriculture shall consider
20factors, including but not limited to, the amount of money
21appropriated for the Illinois Thoroughbred Breeders Fund
22program, organization licensees' contributions, availability
23of stakes caliber horses as demonstrated by past performances,
24whether the race can be coordinated into the proposed racing
25dates within organization licensees' racing dates, opportunity
26for colts and fillies and various age groups to race, public

 

 

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1wagering on such races, and the previous racing schedule.
2    (n) The Board and the organization licensee shall notify
3the Department of the conditions and minimum purses for races
4limited to Illinois conceived and foaled and Illinois foaled
5horses conducted for each organization licensee conducting a
6thoroughbred racing meeting. The Department of Agriculture
7with the advice and assistance of the Illinois Thoroughbred
8Breeders Fund Advisory Board may allocate monies for purse
9supplements for such races. In determining whether to allocate
10money and the amount, the Department of Agriculture shall
11consider factors, including but not limited to, the amount of
12money appropriated for the Illinois Thoroughbred Breeders Fund
13program, the number of races that may occur, and the
14organization licensee's purse structure.
15    (o) (Blank).
16(Source: P.A. 101-31, eff. 6-28-19.)