99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3564

 

Introduced , by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act throughout the statutes. Adds 4 additional owners licenses. Authorizes the Illinois Gaming Board to conduct gambling operations on a riverboat or in a casino, through a licensed manager, within the City of Chicago. Provides that the City of Chicago shall select the site for the operation and acquire, upon consultation with the Capital Development Board, any land necessary for its construction, including by condemnation or eminent domain, and the City of Chicago shall convey to the Illinois Gaming Board property so acquired upon reimbursement, plus reasonable interest costs, to the City of Chicago. Requires the Capital Development Board to construct, repair, and maintain, or contract for and supervise the construction, repair, and maintenance of, facilities for use by the Board to conduct the gambling operations. Limits the number of positions that may be operated. Provides that no admissions tax shall be imposed upon admissions. Makes changes in provisions concerning the admission tax and privilege tax. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability clause. Effective September 1, 2015.


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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3564LRB099 06481 MLM 31222 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 1. Findings. The General Assembly makes all of the
5following findings:
6        (1) That the cumulative reduction to pre-K through 12
7    education funding since 2009 is approximately
8    $861,000,000.
9        (2) That during the last 2 years, general State aid to
10    Illinois common schools has been underfunded as a result of
11    budget cuts, resulting in pro-rated payments to school
12    districts that are less than the foundational level of
13    $6,119 per pupil, which represents the minimum each pupil
14    needs to be educated.
15        (3) That a significant infusion of new revenue is
16    necessary in order to fully fund the foundation level and
17    to maintain and support education in Illinois.
18        (4) That the decline of the Illinois horse racing and
19    breeding program, a $2.5 billion industry, would be
20    reversed if this amendatory Act of the 99th General
21    Assembly would be enacted.
22        (5) That the Illinois horse racing industry is on the
23    verge of extinction due to fierce competition from fully
24    developed horse racing and gaming operations in other

 

 

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1    states.
2        (6) That allowing the State's horse racing venues,
3    currently licensed gaming destinations, to maximize their
4    capacities with gaming machines, would generate up to $120
5    million to $200 million for the State in the form of extra
6    licensing fees, plus an additional $100 million to $300
7    million in recurring annual tax revenue for the State to
8    help ensure that school, road, and other building projects
9    promised under the capital plan occur on schedule.
10        (7) That Illinois agriculture and other businesses
11    that support and supply the horse racing industry, already
12    a sector that employs over 37,000 Illinoisans, also stand
13    to substantially benefit and would be much more likely to
14    create additional jobs should Illinois horse racing once
15    again become competitive with other states.
16        (8) That by keeping these projects on track, the State
17    can be sure that significant job and economic growth will
18    in fact result from previously enacted legislation.
19        (9) That gaming machines at Illinois horse racing
20    tracks would create an estimated 1,200 to 1,500 permanent
21    jobs, and an estimated capital investment of up to $200
22    million to $400 million at these race tracks would prompt
23    additional trade organization jobs necessary to construct
24    new facilities or remodel race tracks to operate electronic
25    gaming.
 

 

 

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1    Section 5. The State Officials and Employees Ethics Act is
2amended by changing Sections 5-45 and 20-10 as follows:
 
3    (5 ILCS 430/5-45)
4    Sec. 5-45. Procurement; revolving door prohibition.
5    (a) No former officer, member, or State employee, or spouse
6or immediate family member living with such person, shall,
7within a period of one year immediately after termination of
8State employment, knowingly accept employment or receive
9compensation or fees for services from a person or entity if
10the officer, member, or State employee, during the year
11immediately preceding termination of State employment,
12participated personally and substantially in the award of State
13contracts, or the issuance of State contract change orders,
14with a cumulative value of $25,000 or more to the person or
15entity, or its parent or subsidiary.
16    (b) No former officer of the executive branch or State
17employee of the executive branch with regulatory or licensing
18authority, or spouse or immediate family member living with
19such person, shall, within a period of one year immediately
20after termination of State employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity if the officer or State employee, during the
23year immediately preceding termination of State employment,
24participated personally and substantially in making a
25regulatory or licensing decision that directly applied to the

 

 

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1person or entity, or its parent or subsidiary.
2    (c) Within 6 months after the effective date of this
3amendatory Act of the 96th General Assembly, each executive
4branch constitutional officer and legislative leader, the
5Auditor General, and the Joint Committee on Legislative Support
6Services shall adopt a policy delineating which State positions
7under his or her jurisdiction and control, by the nature of
8their duties, may have the authority to participate personally
9and substantially in the award of State contracts or in
10regulatory or licensing decisions. The Governor shall adopt
11such a policy for all State employees of the executive branch
12not under the jurisdiction and control of any other executive
13branch constitutional officer.
14    The policies required under subsection (c) of this Section
15shall be filed with the appropriate ethics commission
16established under this Act or, for the Auditor General, with
17the Office of the Auditor General.
18    (d) Each Inspector General shall have the authority to
19determine that additional State positions under his or her
20jurisdiction, not otherwise subject to the policies required by
21subsection (c) of this Section, are nonetheless subject to the
22notification requirement of subsection (f) below due to their
23involvement in the award of State contracts or in regulatory or
24licensing decisions.
25    (e) The Joint Committee on Legislative Support Services,
26the Auditor General, and each of the executive branch

 

 

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1constitutional officers and legislative leaders subject to
2subsection (c) of this Section shall provide written
3notification to all employees in positions subject to the
4policies required by subsection (c) or a determination made
5under subsection (d): (1) upon hiring, promotion, or transfer
6into the relevant position; and (2) at the time the employee's
7duties are changed in such a way as to qualify that employee.
8An employee receiving notification must certify in writing that
9the person was advised of the prohibition and the requirement
10to notify the appropriate Inspector General in subsection (f).
11    (f) Any State employee in a position subject to the
12policies required by subsection (c) or to a determination under
13subsection (d), but who does not fall within the prohibition of
14subsection (h) below, who is offered non-State employment
15during State employment or within a period of one year
16immediately after termination of State employment shall, prior
17to accepting such non-State employment, notify the appropriate
18Inspector General. Within 10 calendar days after receiving
19notification from an employee in a position subject to the
20policies required by subsection (c), such Inspector General
21shall make a determination as to whether the State employee is
22restricted from accepting such employment by subsection (a) or
23(b). In making a determination, in addition to any other
24relevant information, an Inspector General shall assess the
25effect of the prospective employment or relationship upon
26decisions referred to in subsections (a) and (b), based on the

 

 

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1totality of the participation by the former officer, member, or
2State employee in those decisions. A determination by an
3Inspector General must be in writing, signed and dated by the
4Inspector General, and delivered to the subject of the
5determination within 10 calendar days or the person is deemed
6eligible for the employment opportunity. For purposes of this
7subsection, "appropriate Inspector General" means (i) for
8members and employees of the legislative branch, the
9Legislative Inspector General; (ii) for the Auditor General and
10employees of the Office of the Auditor General, the Inspector
11General provided for in Section 30-5 of this Act; and (iii) for
12executive branch officers and employees, the Inspector General
13having jurisdiction over the officer or employee. Notice of any
14determination of an Inspector General and of any such appeal
15shall be given to the ultimate jurisdictional authority, the
16Attorney General, and the Executive Ethics Commission.
17    (g) An Inspector General's determination regarding
18restrictions under subsection (a) or (b) may be appealed to the
19appropriate Ethics Commission by the person subject to the
20decision or the Attorney General no later than the 10th
21calendar day after the date of the determination.
22    On appeal, the Ethics Commission or Auditor General shall
23seek, accept, and consider written public comments regarding a
24determination. In deciding whether to uphold an Inspector
25General's determination, the appropriate Ethics Commission or
26Auditor General shall assess, in addition to any other relevant

 

 

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1information, the effect of the prospective employment or
2relationship upon the decisions referred to in subsections (a)
3and (b), based on the totality of the participation by the
4former officer, member, or State employee in those decisions.
5The Ethics Commission shall decide whether to uphold an
6Inspector General's determination within 10 calendar days or
7the person is deemed eligible for the employment opportunity.
8    (h) The following officers, members, or State employees
9shall not, within a period of one year immediately after
10termination of office or State employment, knowingly accept
11employment or receive compensation or fees for services from a
12person or entity if the person or entity or its parent or
13subsidiary, during the year immediately preceding termination
14of State employment, was a party to a State contract or
15contracts with a cumulative value of $25,000 or more involving
16the officer, member, or State employee's State agency, or was
17the subject of a regulatory or licensing decision involving the
18officer, member, or State employee's State agency, regardless
19of whether he or she participated personally and substantially
20in the award of the State contract or contracts or the making
21of the regulatory or licensing decision in question:
22        (1) members or officers;
23        (2) members of a commission or board created by the
24    Illinois Constitution;
25        (3) persons whose appointment to office is subject to
26    the advice and consent of the Senate;

 

 

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1        (4) the head of a department, commission, board,
2    division, bureau, authority, or other administrative unit
3    within the government of this State;
4        (5) chief procurement officers, State purchasing
5    officers, and their designees whose duties are directly
6    related to State procurement; and
7        (6) chiefs of staff, deputy chiefs of staff, associate
8    chiefs of staff, assistant chiefs of staff, and deputy
9    governors; .
10        (7) employees of the Illinois Racing Board; and
11        (8) employees of the Illinois Gaming Board.
12    (i) For the purposes of this Section, with respect to
13officers or employees of a regional transit board, as defined
14in this Act, the phrase "person or entity" does not include:
15(i) the United States government, (ii) the State, (iii)
16municipalities, as defined under Article VII, Section 1 of the
17Illinois Constitution, (iv) units of local government, as
18defined under Article VII, Section 1 of the Illinois
19Constitution, or (v) school districts.
20(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
 
21    (5 ILCS 430/20-10)
22    Sec. 20-10. Offices of Executive Inspectors General.
23    (a) Six Five independent Offices of the Executive Inspector
24General are created, one each for the Governor, the Attorney
25General, the Secretary of State, the Comptroller, and the

 

 

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1Treasurer and one for gaming activities. Each Office shall be
2under the direction and supervision of an Executive Inspector
3General and shall be a fully independent office with separate
4appropriations.
5    (b) The Governor, Attorney General, Secretary of State,
6Comptroller, and Treasurer shall each appoint an Executive
7Inspector General, and the Governor shall appoint an Executive
8Inspector General for gaming activities. Each appointment must
9be made without regard to political affiliation and solely on
10the basis of integrity and demonstrated ability. Appointments
11shall be made by and with the advice and consent of the Senate
12by three-fifths of the elected members concurring by record
13vote. Any nomination not acted upon by the Senate within 60
14session days of the receipt thereof shall be deemed to have
15received the advice and consent of the Senate. If, during a
16recess of the Senate, there is a vacancy in an office of
17Executive Inspector General, the appointing authority shall
18make a temporary appointment until the next meeting of the
19Senate when the appointing authority shall make a nomination to
20fill that office. No person rejected for an office of Executive
21Inspector General shall, except by the Senate's request, be
22nominated again for that office at the same session of the
23Senate or be appointed to that office during a recess of that
24Senate.
25    Nothing in this Article precludes the appointment by the
26Governor, Attorney General, Secretary of State, Comptroller,

 

 

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1or Treasurer of any other inspector general required or
2permitted by law. The Governor, Attorney General, Secretary of
3State, Comptroller, and Treasurer each may appoint an existing
4inspector general as the Executive Inspector General required
5by this Article, provided that such an inspector general is not
6prohibited by law, rule, jurisdiction, qualification, or
7interest from serving as the Executive Inspector General
8required by this Article. An appointing authority may not
9appoint a relative as an Executive Inspector General.
10    Each Executive Inspector General shall have the following
11qualifications:
12        (1) has not been convicted of any felony under the laws
13    of this State, another State, or the United States;
14        (2) has earned a baccalaureate degree from an
15    institution of higher education; and
16        (3) has 5 or more years of cumulative service (A) with
17    a federal, State, or local law enforcement agency, at least
18    2 years of which have been in a progressive investigatory
19    capacity; (B) as a federal, State, or local prosecutor; (C)
20    as a senior manager or executive of a federal, State, or
21    local agency; (D) as a member, an officer, or a State or
22    federal judge; or (E) representing any combination of (A)
23    through (D).
24    The term of each initial Executive Inspector General shall
25commence upon qualification and shall run through June 30,
262008. The initial appointments shall be made within 60 days

 

 

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1after the effective date of this Act.
2    After the initial term, each Executive Inspector General
3shall serve for 5-year terms commencing on July 1 of the year
4of appointment and running through June 30 of the fifth
5following year. An Executive Inspector General may be
6reappointed to one or more subsequent terms.
7    A vacancy occurring other than at the end of a term shall
8be filled by the appointing authority only for the balance of
9the term of the Executive Inspector General whose office is
10vacant.
11    Terms shall run regardless of whether the position is
12filled.
13    (c) The Executive Inspector General appointed by the
14Attorney General shall have jurisdiction over the Attorney
15General and all officers and employees of, and vendors and
16others doing business with, State agencies within the
17jurisdiction of the Attorney General. The Executive Inspector
18General appointed by the Secretary of State shall have
19jurisdiction over the Secretary of State and all officers and
20employees of, and vendors and others doing business with, State
21agencies within the jurisdiction of the Secretary of State. The
22Executive Inspector General appointed by the Comptroller shall
23have jurisdiction over the Comptroller and all officers and
24employees of, and vendors and others doing business with, State
25agencies within the jurisdiction of the Comptroller. The
26Executive Inspector General appointed by the Treasurer shall

 

 

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1have jurisdiction over the Treasurer and all officers and
2employees of, and vendors and others doing business with, State
3agencies within the jurisdiction of the Treasurer. The
4Executive Inspector General appointed by the Governor shall
5have jurisdiction over (i) the Governor, (ii) the Lieutenant
6Governor, (iii) all officers and employees of, and vendors and
7others doing business with, executive branch State agencies
8under the jurisdiction of the Executive Ethics Commission and
9not within the jurisdiction of the Attorney General, the
10Secretary of State, the Comptroller, or the Treasurer, or the
11Executive Inspector General for gaming activities, and (iv) all
12board members and employees of the Regional Transit Boards and
13all vendors and others doing business with the Regional Transit
14Boards. The Executive Inspector General for gaming activities
15appointed by the Governor has jurisdiction over the Illinois
16Gaming Board, all officers and employees of the Illinois Gaming
17Board, and all activities of the Illinois Gaming Board.
18    The jurisdiction of each Executive Inspector General is to
19investigate allegations of fraud, waste, abuse, mismanagement,
20misconduct, nonfeasance, misfeasance, malfeasance, or
21violations of this Act or violations of other related laws and
22rules.
23    (d) The compensation for each Executive Inspector General
24shall be determined by the Executive Ethics Commission and
25shall be made from appropriations made to the Comptroller for
26this purpose. Subject to Section 20-45 of this Act, each

 

 

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1Executive Inspector General has full authority to organize his
2or her Office of the Executive Inspector General, including the
3employment and determination of the compensation of staff, such
4as deputies, assistants, and other employees, as
5appropriations permit. A separate appropriation shall be made
6for each Office of Executive Inspector General.
7    (e) No Executive Inspector General or employee of the
8Office of the Executive Inspector General may, during his or
9her term of appointment or employment:
10        (1) become a candidate for any elective office;
11        (2) hold any other elected or appointed public office
12    except for appointments on governmental advisory boards or
13    study commissions or as otherwise expressly authorized by
14    law;
15        (3) be actively involved in the affairs of any
16    political party or political organization; or
17        (4) advocate for the appointment of another person to
18    an appointed or elected office or position or actively
19    participate in any campaign for any elective office.
20    In this subsection an appointed public office means a
21position authorized by law that is filled by an appointing
22authority as provided by law and does not include employment by
23hiring in the ordinary course of business.
24    (e-1) No Executive Inspector General or employee of the
25Office of the Executive Inspector General may, for one year
26after the termination of his or her appointment or employment:

 

 

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1        (1) become a candidate for any elective office;
2        (2) hold any elected public office; or
3        (3) hold any appointed State, county, or local judicial
4    office.
5    (e-2) The requirements of item (3) of subsection (e-1) may
6be waived by the Executive Ethics Commission.
7    (f) An Executive Inspector General may be removed only for
8cause and may be removed only by the appointing constitutional
9officer. At the time of the removal, the appointing
10constitutional officer must report to the Executive Ethics
11Commission the justification for the removal.
12(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
 
13    Section 10. The Alcoholism and Other Drug Abuse and
14Dependency Act is amended by changing Section 5-20 as follows:
 
15    (20 ILCS 301/5-20)
16    Sec. 5-20. Compulsive gambling program.
17    (a) Subject to appropriation, the Department shall
18establish a program for public education, research, and
19training regarding problem and compulsive gambling and the
20treatment and prevention of problem and compulsive gambling.
21Subject to specific appropriation for these stated purposes,
22the program must include all of the following:
23        (1) Establishment and maintenance of a toll-free "800"
24    telephone number to provide crisis counseling and referral

 

 

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1    services to families experiencing difficulty as a result of
2    problem or compulsive gambling.
3        (2) Promotion of public awareness regarding the
4    recognition and prevention of problem and compulsive
5    gambling.
6        (3) Facilitation, through in-service training and
7    other means, of the availability of effective assistance
8    programs for problem and compulsive gamblers.
9        (4) Conducting studies to identify adults and
10    juveniles in this State who are, or who are at risk of
11    becoming, problem or compulsive gamblers.
12    (b) Subject to appropriation, the Department shall either
13establish and maintain the program or contract with a private
14or public entity for the establishment and maintenance of the
15program. Subject to appropriation, either the Department or the
16private or public entity shall implement the toll-free
17telephone number, promote public awareness, and conduct
18in-service training concerning problem and compulsive
19gambling.
20    (c) Subject to appropriation, the Department shall produce
21and supply the signs specified in Section 10.7 of the Illinois
22Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
231975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
24of the Charitable Games Act, and Section 13.1 of the Illinois
25Riverboat Gambling Act.
26(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
 

 

 

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1    Section 15. The Illinois Lottery Law is amended by changing
2Section 9.1 as follows:
 
3    (20 ILCS 1605/9.1)
4    Sec. 9.1. Private manager and management agreement.
5    (a) As used in this Section:
6    "Offeror" means a person or group of persons that responds
7to a request for qualifications under this Section.
8    "Request for qualifications" means all materials and
9documents prepared by the Department to solicit the following
10from offerors:
11        (1) Statements of qualifications.
12        (2) Proposals to enter into a management agreement,
13    including the identity of any prospective vendor or vendors
14    that the offeror intends to initially engage to assist the
15    offeror in performing its obligations under the management
16    agreement.
17    "Final offer" means the last proposal submitted by an
18offeror in response to the request for qualifications,
19including the identity of any prospective vendor or vendors
20that the offeror intends to initially engage to assist the
21offeror in performing its obligations under the management
22agreement.
23    "Final offeror" means the offeror ultimately selected by
24the Governor to be the private manager for the Lottery under

 

 

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1subsection (h) of this Section.
2    (b) By September 15, 2010, the Governor shall select a
3private manager for the total management of the Lottery with
4integrated functions, such as lottery game design, supply of
5goods and services, and advertising and as specified in this
6Section.
7    (c) Pursuant to the terms of this subsection, the
8Department shall endeavor to expeditiously terminate the
9existing contracts in support of the Lottery in effect on the
10effective date of this amendatory Act of the 96th General
11Assembly in connection with the selection of the private
12manager. As part of its obligation to terminate these contracts
13and select the private manager, the Department shall establish
14a mutually agreeable timetable to transfer the functions of
15existing contractors to the private manager so that existing
16Lottery operations are not materially diminished or impaired
17during the transition. To that end, the Department shall do the
18following:
19        (1) where such contracts contain a provision
20    authorizing termination upon notice, the Department shall
21    provide notice of termination to occur upon the mutually
22    agreed timetable for transfer of functions;
23        (2) upon the expiration of any initial term or renewal
24    term of the current Lottery contracts, the Department shall
25    not renew such contract for a term extending beyond the
26    mutually agreed timetable for transfer of functions; or

 

 

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1        (3) in the event any current contract provides for
2    termination of that contract upon the implementation of a
3    contract with the private manager, the Department shall
4    perform all necessary actions to terminate the contract on
5    the date that coincides with the mutually agreed timetable
6    for transfer of functions.
7    If the contracts to support the current operation of the
8Lottery in effect on the effective date of this amendatory Act
9of the 96th General Assembly are not subject to termination as
10provided for in this subsection (c), then the Department may
11include a provision in the contract with the private manager
12specifying a mutually agreeable methodology for incorporation.
13    (c-5) The Department shall include provisions in the
14management agreement whereby the private manager shall, for a
15fee, and pursuant to a contract negotiated with the Department
16(the "Employee Use Contract"), utilize the services of current
17Department employees to assist in the administration and
18operation of the Lottery. The Department shall be the employer
19of all such bargaining unit employees assigned to perform such
20work for the private manager, and such employees shall be State
21employees, as defined by the Personnel Code. Department
22employees shall operate under the same employment policies,
23rules, regulations, and procedures, as other employees of the
24Department. In addition, neither historical representation
25rights under the Illinois Public Labor Relations Act, nor
26existing collective bargaining agreements, shall be disturbed

 

 

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1by the management agreement with the private manager for the
2management of the Lottery.
3    (d) The management agreement with the private manager shall
4include all of the following:
5        (1) A term not to exceed 10 years, including any
6    renewals.
7        (2) A provision specifying that the Department:
8            (A) shall exercise actual control over all
9        significant business decisions;
10            (A-5) has the authority to direct or countermand
11        operating decisions by the private manager at any time;
12            (B) has ready access at any time to information
13        regarding Lottery operations;
14            (C) has the right to demand and receive information
15        from the private manager concerning any aspect of the
16        Lottery operations at any time; and
17            (D) retains ownership of all trade names,
18        trademarks, and intellectual property associated with
19        the Lottery.
20        (3) A provision imposing an affirmative duty on the
21    private manager to provide the Department with material
22    information and with any information the private manager
23    reasonably believes the Department would want to know to
24    enable the Department to conduct the Lottery.
25        (4) A provision requiring the private manager to
26    provide the Department with advance notice of any operating

 

 

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1    decision that bears significantly on the public interest,
2    including, but not limited to, decisions on the kinds of
3    games to be offered to the public and decisions affecting
4    the relative risk and reward of the games being offered, so
5    the Department has a reasonable opportunity to evaluate and
6    countermand that decision.
7        (5) A provision providing for compensation of the
8    private manager that may consist of, among other things, a
9    fee for services and a performance based bonus as
10    consideration for managing the Lottery, including terms
11    that may provide the private manager with an increase in
12    compensation if Lottery revenues grow by a specified
13    percentage in a given year.
14        (6) (Blank).
15        (7) A provision requiring the deposit of all Lottery
16    proceeds to be deposited into the State Lottery Fund except
17    as otherwise provided in Section 20 of this Act.
18        (8) A provision requiring the private manager to locate
19    its principal office within the State.
20        (8-5) A provision encouraging that at least 20% of the
21    cost of contracts entered into for goods and services by
22    the private manager in connection with its management of
23    the Lottery, other than contracts with sales agents or
24    technical advisors, be awarded to businesses that are a
25    minority owned business, a female owned business, or a
26    business owned by a person with disability, as those terms

 

 

HB3564- 21 -LRB099 06481 MLM 31222 b

1    are defined in the Business Enterprise for Minorities,
2    Females, and Persons with Disabilities Act.
3        (9) A requirement that so long as the private manager
4    complies with all the conditions of the agreement under the
5    oversight of the Department, the private manager shall have
6    the following duties and obligations with respect to the
7    management of the Lottery:
8            (A) The right to use equipment and other assets
9        used in the operation of the Lottery.
10            (B) The rights and obligations under contracts
11        with retailers and vendors.
12            (C) The implementation of a comprehensive security
13        program by the private manager.
14            (D) The implementation of a comprehensive system
15        of internal audits.
16            (E) The implementation of a program by the private
17        manager to curb compulsive gambling by persons playing
18        the Lottery.
19            (F) A system for determining (i) the type of
20        Lottery games, (ii) the method of selecting winning
21        tickets, (iii) the manner of payment of prizes to
22        holders of winning tickets, (iv) the frequency of
23        drawings of winning tickets, (v) the method to be used
24        in selling tickets, (vi) a system for verifying the
25        validity of tickets claimed to be winning tickets,
26        (vii) the basis upon which retailer commissions are

 

 

HB3564- 22 -LRB099 06481 MLM 31222 b

1        established by the manager, and (viii) minimum
2        payouts.
3        (10) A requirement that advertising and promotion must
4    be consistent with Section 7.8a of this Act.
5        (11) A requirement that the private manager market the
6    Lottery to those residents who are new, infrequent, or
7    lapsed players of the Lottery, especially those who are
8    most likely to make regular purchases on the Internet as
9    permitted by law.
10        (12) A code of ethics for the private manager's
11    officers and employees.
12        (13) A requirement that the Department monitor and
13    oversee the private manager's practices and take action
14    that the Department considers appropriate to ensure that
15    the private manager is in compliance with the terms of the
16    management agreement, while allowing the manager, unless
17    specifically prohibited by law or the management
18    agreement, to negotiate and sign its own contracts with
19    vendors.
20        (14) A provision requiring the private manager to
21    periodically file, at least on an annual basis, appropriate
22    financial statements in a form and manner acceptable to the
23    Department.
24        (15) Cash reserves requirements.
25        (16) Procedural requirements for obtaining the prior
26    approval of the Department when a management agreement or

 

 

HB3564- 23 -LRB099 06481 MLM 31222 b

1    an interest in a management agreement is sold, assigned,
2    transferred, or pledged as collateral to secure financing.
3        (17) Grounds for the termination of the management
4    agreement by the Department or the private manager.
5        (18) Procedures for amendment of the agreement.
6        (19) A provision requiring the private manager to
7    engage in an open and competitive bidding process for any
8    procurement having a cost in excess of $50,000 that is not
9    a part of the private manager's final offer. The process
10    shall favor the selection of a vendor deemed to have
11    submitted a proposal that provides the Lottery with the
12    best overall value. The process shall not be subject to the
13    provisions of the Illinois Procurement Code, unless
14    specifically required by the management agreement.
15        (20) The transition of rights and obligations,
16    including any associated equipment or other assets used in
17    the operation of the Lottery, from the manager to any
18    successor manager of the lottery, including the
19    Department, following the termination of or foreclosure
20    upon the management agreement.
21        (21) Right of use of copyrights, trademarks, and
22    service marks held by the Department in the name of the
23    State. The agreement must provide that any use of them by
24    the manager shall only be for the purpose of fulfilling its
25    obligations under the management agreement during the term
26    of the agreement.

 

 

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1        (22) The disclosure of any information requested by the
2    Department to enable it to comply with the reporting
3    requirements and information requests provided for under
4    subsection (p) of this Section.
5    (e) Notwithstanding any other law to the contrary, the
6Department shall select a private manager through a competitive
7request for qualifications process consistent with Section
820-35 of the Illinois Procurement Code, which shall take into
9account:
10        (1) the offeror's ability to market the Lottery to
11    those residents who are new, infrequent, or lapsed players
12    of the Lottery, especially those who are most likely to
13    make regular purchases on the Internet;
14        (2) the offeror's ability to address the State's
15    concern with the social effects of gambling on those who
16    can least afford to do so;
17        (3) the offeror's ability to provide the most
18    successful management of the Lottery for the benefit of the
19    people of the State based on current and past business
20    practices or plans of the offeror; and
21        (4) the offeror's poor or inadequate past performance
22    in servicing, equipping, operating or managing a lottery on
23    behalf of Illinois, another State or foreign government and
24    attracting persons who are not currently regular players of
25    a lottery.
26    (f) The Department may retain the services of an advisor or

 

 

HB3564- 25 -LRB099 06481 MLM 31222 b

1advisors with significant experience in financial services or
2the management, operation, and procurement of goods, services,
3and equipment for a government-run lottery to assist in the
4preparation of the terms of the request for qualifications and
5selection of the private manager. Any prospective advisor
6seeking to provide services under this subsection (f) shall
7disclose any material business or financial relationship
8during the past 3 years with any potential offeror, or with a
9contractor or subcontractor presently providing goods,
10services, or equipment to the Department to support the
11Lottery. The Department shall evaluate the material business or
12financial relationship of each prospective advisor. The
13Department shall not select any prospective advisor with a
14substantial business or financial relationship that the
15Department deems to impair the objectivity of the services to
16be provided by the prospective advisor. During the course of
17the advisor's engagement by the Department, and for a period of
18one year thereafter, the advisor shall not enter into any
19business or financial relationship with any offeror or any
20vendor identified to assist an offeror in performing its
21obligations under the management agreement. Any advisor
22retained by the Department shall be disqualified from being an
23offeror. The Department shall not include terms in the request
24for qualifications that provide a material advantage whether
25directly or indirectly to any potential offeror, or any
26contractor or subcontractor presently providing goods,

 

 

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1services, or equipment to the Department to support the
2Lottery, including terms contained in previous responses to
3requests for proposals or qualifications submitted to
4Illinois, another State or foreign government when those terms
5are uniquely associated with a particular potential offeror,
6contractor, or subcontractor. The request for proposals
7offered by the Department on December 22, 2008 as
8"LOT08GAMESYS" and reference number "22016176" is declared
9void.
10    (g) The Department shall select at least 2 offerors as
11finalists to potentially serve as the private manager no later
12than August 9, 2010. Upon making preliminary selections, the
13Department shall schedule a public hearing on the finalists'
14proposals and provide public notice of the hearing at least 7
15calendar days before the hearing. The notice must include all
16of the following:
17        (1) The date, time, and place of the hearing.
18        (2) The subject matter of the hearing.
19        (3) A brief description of the management agreement to
20    be awarded.
21        (4) The identity of the offerors that have been
22    selected as finalists to serve as the private manager.
23        (5) The address and telephone number of the Department.
24    (h) At the public hearing, the Department shall (i) provide
25sufficient time for each finalist to present and explain its
26proposal to the Department and the Governor or the Governor's

 

 

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1designee, including an opportunity to respond to questions
2posed by the Department, Governor, or designee and (ii) allow
3the public and non-selected offerors to comment on the
4presentations. The Governor or a designee shall attend the
5public hearing. After the public hearing, the Department shall
6have 14 calendar days to recommend to the Governor whether a
7management agreement should be entered into with a particular
8finalist. After reviewing the Department's recommendation, the
9Governor may accept or reject the Department's recommendation,
10and shall select a final offeror as the private manager by
11publication of a notice in the Illinois Procurement Bulletin on
12or before September 15, 2010. The Governor shall include in the
13notice a detailed explanation and the reasons why the final
14offeror is superior to other offerors and will provide
15management services in a manner that best achieves the
16objectives of this Section. The Governor shall also sign the
17management agreement with the private manager.
18    (i) Any action to contest the private manager selected by
19the Governor under this Section must be brought within 7
20calendar days after the publication of the notice of the
21designation of the private manager as provided in subsection
22(h) of this Section.
23    (j) The Lottery shall remain, for so long as a private
24manager manages the Lottery in accordance with provisions of
25this Act, a Lottery conducted by the State, and the State shall
26not be authorized to sell or transfer the Lottery to a third

 

 

HB3564- 28 -LRB099 06481 MLM 31222 b

1party.
2    (k) Any tangible personal property used exclusively in
3connection with the lottery that is owned by the Department and
4leased to the private manager shall be owned by the Department
5in the name of the State and shall be considered to be public
6property devoted to an essential public and governmental
7function.
8    (l) The Department may exercise any of its powers under
9this Section or any other law as necessary or desirable for the
10execution of the Department's powers under this Section.
11    (m) Neither this Section nor any management agreement
12entered into under this Section prohibits the General Assembly
13from authorizing forms of gambling that are not in direct
14competition with the Lottery. The forms of gambling authorized
15by this amendatory Act of the 99th General Assembly constitute
16authorized forms of gambling that are not in direct competition
17with the Lottery.
18    (n) The private manager shall be subject to a complete
19investigation in the third, seventh, and tenth years of the
20agreement (if the agreement is for a 10-year term) by the
21Department in cooperation with the Auditor General to determine
22whether the private manager has complied with this Section and
23the management agreement. The private manager shall bear the
24cost of an investigation or reinvestigation of the private
25manager under this subsection.
26    (o) The powers conferred by this Section are in addition

 

 

HB3564- 29 -LRB099 06481 MLM 31222 b

1and supplemental to the powers conferred by any other law. If
2any other law or rule is inconsistent with this Section,
3including, but not limited to, provisions of the Illinois
4Procurement Code, then this Section controls as to any
5management agreement entered into under this Section. This
6Section and any rules adopted under this Section contain full
7and complete authority for a management agreement between the
8Department and a private manager. No law, procedure,
9proceeding, publication, notice, consent, approval, order, or
10act by the Department or any other officer, Department, agency,
11or instrumentality of the State or any political subdivision is
12required for the Department to enter into a management
13agreement under this Section. This Section contains full and
14complete authority for the Department to approve any contracts
15entered into by a private manager with a vendor providing
16goods, services, or both goods and services to the private
17manager under the terms of the management agreement, including
18subcontractors of such vendors.
19    Upon receipt of a written request from the Chief
20Procurement Officer, the Department shall provide to the Chief
21Procurement Officer a complete and un-redacted copy of the
22management agreement or any contract that is subject to the
23Department's approval authority under this subsection (o). The
24Department shall provide a copy of the agreement or contract to
25the Chief Procurement Officer in the time specified by the
26Chief Procurement Officer in his or her written request, but no

 

 

HB3564- 30 -LRB099 06481 MLM 31222 b

1later than 5 business days after the request is received by the
2Department. The Chief Procurement Officer must retain any
3portions of the management agreement or of any contract
4designated by the Department as confidential, proprietary, or
5trade secret information in complete confidence pursuant to
6subsection (g) of Section 7 of the Freedom of Information Act.
7The Department shall also provide the Chief Procurement Officer
8with reasonable advance written notice of any contract that is
9pending Department approval.
10    Notwithstanding any other provision of this Section to the
11contrary, the Chief Procurement Officer shall adopt
12administrative rules, including emergency rules, to establish
13a procurement process to select a successor private manager if
14a private management agreement has been terminated. The
15selection process shall at a minimum take into account the
16criteria set forth in items (1) through (4) of subsection (e)
17of this Section and may include provisions consistent with
18subsections (f), (g), (h), and (i) of this Section. The Chief
19Procurement Officer shall also implement and administer the
20adopted selection process upon the termination of a private
21management agreement. The Department, after the Chief
22Procurement Officer certifies that the procurement process has
23been followed in accordance with the rules adopted under this
24subsection (o), shall select a final offeror as the private
25manager and sign the management agreement with the private
26manager.

 

 

HB3564- 31 -LRB099 06481 MLM 31222 b

1    Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
221.8, and 21.9, the Department shall distribute all proceeds of
3lottery tickets and shares sold in the following priority and
4manner:
5        (1) The payment of prizes and retailer bonuses.
6        (2) The payment of costs incurred in the operation and
7    administration of the Lottery, including the payment of
8    sums due to the private manager under the management
9    agreement with the Department.
10        (3) On the last day of each month or as soon thereafter
11    as possible, the State Comptroller shall direct and the
12    State Treasurer shall transfer from the State Lottery Fund
13    to the Common School Fund an amount that is equal to the
14    proceeds transferred in the corresponding month of fiscal
15    year 2009, as adjusted for inflation, to the Common School
16    Fund.
17        (4) On or before the last day of each fiscal year,
18    deposit any remaining proceeds, subject to payments under
19    items (1), (2), and (3) into the Capital Projects Fund each
20    fiscal year.
21    (p) The Department shall be subject to the following
22reporting and information request requirements:
23        (1) the Department shall submit written quarterly
24    reports to the Governor and the General Assembly on the
25    activities and actions of the private manager selected
26    under this Section;

 

 

HB3564- 32 -LRB099 06481 MLM 31222 b

1        (2) upon request of the Chief Procurement Officer, the
2    Department shall promptly produce information related to
3    the procurement activities of the Department and the
4    private manager requested by the Chief Procurement
5    Officer; the Chief Procurement Officer must retain
6    confidential, proprietary, or trade secret information
7    designated by the Department in complete confidence
8    pursuant to subsection (g) of Section 7 of the Freedom of
9    Information Act; and
10        (3) at least 30 days prior to the beginning of the
11    Department's fiscal year, the Department shall prepare an
12    annual written report on the activities of the private
13    manager selected under this Section and deliver that report
14    to the Governor and General Assembly.
15(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
1698-649, eff. 6-16-14.)
 
17    Section 20. The Department of Revenue Law of the Civil
18Administrative Code of Illinois is amended by changing Section
192505-305 as follows:
 
20    (20 ILCS 2505/2505-305)  (was 20 ILCS 2505/39b15.1)
21    Sec. 2505-305. Investigators.
22    (a) The Department has the power to appoint investigators
23to conduct all investigations, searches, seizures, arrests,
24and other duties imposed under the provisions of any law

 

 

HB3564- 33 -LRB099 06481 MLM 31222 b

1administered by the Department. Except as provided in
2subsection (c), these investigators have and may exercise all
3the powers of peace officers solely for the purpose of
4enforcing taxing measures administered by the Department.
5    (b) The Director must authorize to each investigator
6employed under this Section and to any other employee of the
7Department exercising the powers of a peace officer a distinct
8badge that, on its face, (i) clearly states that the badge is
9authorized by the Department and (ii) contains a unique
10identifying number. No other badge shall be authorized by the
11Department.
12    (c) The Department may enter into agreements with the
13Illinois Gaming Board providing that investigators appointed
14under this Section shall exercise the peace officer powers set
15forth in paragraph (20.6) of subsection (c) of Section 5 of the
16Illinois Riverboat Gambling Act.
17(Source: P.A. 96-37, eff. 7-13-09.)
 
18    Section 25. The State Finance Act is amended by adding
19Sections 5.866 and 6z-101 and by changing Sections 5d and 6z-45
20as follows:
 
21    (30 ILCS 105/5.866 new)
22    Sec. 5.866. The Gaming Facilities Fee Revenue Fund.
 
23    (30 ILCS 105/5d)  (from Ch. 127, par. 141d)

 

 

HB3564- 34 -LRB099 06481 MLM 31222 b

1    Sec. 5d. State Construction Account Fund.
2    (a) Except as provided in subsection (b) of this Section or
3by Section 5e of this Act, the State Construction Account Fund
4shall be used exclusively for the construction, reconstruction
5and maintenance of the State maintained highway system. Except
6as provided by Section 5e of this Act, none of the money
7deposited in the State Construction Account Fund shall be used
8to pay the cost of administering the Motor Fuel Tax Law as now
9or hereafter amended, nor be appropriated for use by the
10Department of Transportation to pay the cost of its operations
11or administration, nor be used in any manner for the payment of
12regular or contractual employees of the State, nor be
13transferred or allocated by the Comptroller and Treasurer or be
14otherwise used, except for the sole purpose of construction,
15reconstruction and maintenance of the State maintained highway
16system as the Illinois General Assembly shall provide by
17appropriation from this fund. Beginning with the month
18immediately following the effective date of this amendatory Act
19of 1985, investment income which is attributable to the
20investment of moneys of the State Construction Account Fund
21shall be retained in that fund for the uses specified in this
22Section.
23    (b) None of the money deposited into the State Construction
24Account Fund pursuant to subsection (c-40) of Section 13 of the
25Illinois Gambling Act shall be used for the construction,
26reconstruction, or maintenance of highways located within the

 

 

HB3564- 35 -LRB099 06481 MLM 31222 b

1City of Chicago.
2(Source: P.A. 84-431.)
 
3    (30 ILCS 105/6z-45)
4    Sec. 6z-45. The School Infrastructure Fund.
5    (a) The School Infrastructure Fund is created as a special
6fund in the State Treasury.
7    In addition to any other deposits authorized by law,
8beginning January 1, 2000, on the first day of each month, or
9as soon thereafter as may be practical, the State Treasurer and
10State Comptroller shall transfer the sum of $5,000,000 from the
11General Revenue Fund to the School Infrastructure Fund, except
12that, notwithstanding any other provision of law, and in
13addition to any other transfers that may be provided for by
14law, before June 30, 2012, the Comptroller and the Treasurer
15shall transfer $45,000,000 from the General Revenue Fund into
16the School Infrastructure Fund, and, for fiscal year 2013 only,
17the Treasurer and the Comptroller shall transfer $1,250,000
18from the General Revenue Fund to the School Infrastructure Fund
19on the first day of each month; provided, however, that no such
20transfers shall be made from July 1, 2001 through June 30,
212003.
22    (b) Subject to the transfer provisions set forth below,
23money in the School Infrastructure Fund shall, if and when the
24State of Illinois incurs any bonded indebtedness for the
25construction of school improvements under the School

 

 

HB3564- 36 -LRB099 06481 MLM 31222 b

1Construction Law, be set aside and used for the purpose of
2paying and discharging annually the principal and interest on
3that bonded indebtedness then due and payable, and for no other
4purpose.
5    In addition to other transfers to the General Obligation
6Bond Retirement and Interest Fund made pursuant to Section 15
7of the General Obligation Bond Act, upon each delivery of bonds
8issued for construction of school improvements under the School
9Construction Law, the State Comptroller shall compute and
10certify to the State Treasurer the total amount of principal
11of, interest on, and premium, if any, on such bonds during the
12then current and each succeeding fiscal year. With respect to
13the interest payable on variable rate bonds, such
14certifications shall be calculated at the maximum rate of
15interest that may be payable during the fiscal year, after
16taking into account any credits permitted in the related
17indenture or other instrument against the amount of such
18interest required to be appropriated for that period.
19    On or before the last day of each month, the State
20Treasurer and State Comptroller shall transfer from the School
21Infrastructure Fund to the General Obligation Bond Retirement
22and Interest Fund an amount sufficient to pay the aggregate of
23the principal of, interest on, and premium, if any, on the
24bonds payable on their next payment date, divided by the number
25of monthly transfers occurring between the last previous
26payment date (or the delivery date if no payment date has yet

 

 

HB3564- 37 -LRB099 06481 MLM 31222 b

1occurred) and the next succeeding payment date. Interest
2payable on variable rate bonds shall be calculated at the
3maximum rate of interest that may be payable for the relevant
4period, after taking into account any credits permitted in the
5related indenture or other instrument against the amount of
6such interest required to be appropriated for that period.
7Interest for which moneys have already been deposited into the
8capitalized interest account within the General Obligation
9Bond Retirement and Interest Fund shall not be included in the
10calculation of the amounts to be transferred under this
11subsection.
12    (b-5) The money deposited into the School Infrastructure
13Fund from transfers pursuant to subsections (c-30) and (c-35)
14of Section 13 of the Illinois Riverboat Gambling Act shall be
15applied, without further direction, as provided in subsection
16(b-3) of Section 5-35 of the School Construction Law.
17    (c) The surplus, if any, in the School Infrastructure Fund
18after payments made pursuant to subsections (b) and (b-5) of
19this Section shall, subject to appropriation, be used as
20follows:
21    First - to make 3 payments to the School Technology
22Revolving Loan Fund as follows:
23        Transfer of $30,000,000 in fiscal year 1999;
24        Transfer of $20,000,000 in fiscal year 2000; and
25        Transfer of $10,000,000 in fiscal year 2001.
26    Second - to pay the expenses of the State Board of

 

 

HB3564- 38 -LRB099 06481 MLM 31222 b

1Education and the Capital Development Board in administering
2programs under the School Construction Law, the total expenses
3not to exceed $1,200,000 in any fiscal year.
4    Third - to pay any amounts due for grants for school
5construction projects and debt service under the School
6Construction Law.
7    Fourth - to pay any amounts due for grants for school
8maintenance projects under the School Construction Law.
9(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)
 
10    (30 ILCS 105/6z-101 new)
11    Sec. 6z-101. The Gaming Facilities Fee Revenue Fund.
12    (a) The Gaming Facilities Fee Revenue Fund is created as a
13special fund in the State treasury.
14    (b) The revenues in the Fund shall be used, subject to
15appropriation, by the Comptroller for the purpose of (i)
16providing appropriations to the Illinois Gaming Board for the
17administration and enforcement of the Illinois Gambling Act,
18(ii) providing appropriations to the Illinois Racing Board for
19the administration and enforcement of the Illinois Horse Racing
20Act of 1975, and (iii) payment of vouchers that are outstanding
21for more than 60 days. Whenever practical, the Comptroller must
22prioritize voucher payments for expenses related to medical
23assistance under the Illinois Public Aid Code, the Children's
24Health Insurance Program Act, and the Covering ALL KIDS Health
25Insurance Act.

 

 

HB3564- 39 -LRB099 06481 MLM 31222 b

1    (c) The Fund shall consist of fee revenues received
2pursuant to subsection (e-10) of Section 7 and subsections (b),
3(c), and (d) of Section 7.7 of the Illinois Gambling Act. All
4interest earned on moneys in the Fund shall be deposited into
5the Fund.
6    (d) The Fund shall not be subject to administrative charges
7or chargebacks, including, but not limited to, those authorized
8under Section 8h of this Act.
 
9    Section 27. The General Obligation Bond Act is amended by
10changing Sections 2 and 3 as follows:
 
11    (30 ILCS 330/2)  (from Ch. 127, par. 652)
12    Sec. 2. Authorization for Bonds. The State of Illinois is
13authorized to issue, sell and provide for the retirement of
14General Obligation Bonds of the State of Illinois for the
15categories and specific purposes expressed in Sections 2
16through 8 of this Act, in the total amount of $50,817,925,743
17$49,917,925,743.
18    The bonds authorized in this Section 2 and in Section 16 of
19this Act are herein called "Bonds".
20    Of the total amount of Bonds authorized in this Act, up to
21$2,200,000,000 in aggregate original principal amount may be
22issued and sold in accordance with the Baccalaureate Savings
23Act in the form of General Obligation College Savings Bonds.
24    Of the total amount of Bonds authorized in this Act, up to

 

 

HB3564- 40 -LRB099 06481 MLM 31222 b

1$300,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Retirement Savings Act
3in the form of General Obligation Retirement Savings Bonds.
4    Of the total amount of Bonds authorized in this Act, the
5additional $10,000,000,000 authorized by Public Act 93-2, the
6$3,466,000,000 authorized by Public Act 96-43, and the
7$4,096,348,300 authorized by Public Act 96-1497 shall be used
8solely as provided in Section 7.2.
9    The issuance and sale of Bonds pursuant to the General
10Obligation Bond Act is an economical and efficient method of
11financing the long-term capital needs of the State. This Act
12will permit the issuance of a multi-purpose General Obligation
13Bond with uniform terms and features. This will not only lower
14the cost of registration but also reduce the overall cost of
15issuing debt by improving the marketability of Illinois General
16Obligation Bonds.
17(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
1897-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
198-16-13; 98-781, eff. 7-22-14.)
 
20    (30 ILCS 330/3)  (from Ch. 127, par. 653)
21    Sec. 3. Capital Facilities. The amount of $10,653,963,443
22$9,753,963,443 is authorized to be used for the acquisition,
23development, construction, reconstruction, improvement,
24financing, architectural planning and installation of capital
25facilities within the State, consisting of buildings,

 

 

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1structures, durable equipment, land, interests in land, and the
2costs associated with the purchase and implementation of
3information technology, including but not limited to the
4purchase of hardware and software, for the following specific
5purposes:
6        (a) $3,393,228,000 for educational purposes by State
7    universities and colleges, the Illinois Community College
8    Board created by the Public Community College Act and for
9    grants to public community colleges as authorized by
10    Sections 5-11 and 5-12 of the Public Community College Act;
11        (b) $1,648,420,000 for correctional purposes at State
12    prison and correctional centers;
13        (c) $599,183,000 for open spaces, recreational and
14    conservation purposes and the protection of land;
15        (d) $751,317,000 for child care facilities, mental and
16    public health facilities, and facilities for the care of
17    disabled veterans and their spouses;
18        (e) $2,152,790,000 for use by the State, its
19    departments, authorities, public corporations, commissions
20    and agencies;
21        (f) $818,100 for cargo handling facilities at port
22    districts and for breakwaters, including harbor entrances,
23    at port districts in conjunction with facilities for small
24    boats and pleasure crafts;
25        (g) $297,177,074 for water resource management
26    projects;

 

 

HB3564- 42 -LRB099 06481 MLM 31222 b

1        (h) $16,940,269 for the provision of facilities for
2    food production research and related instructional and
3    public service activities at the State universities and
4    public community colleges;
5        (i) $36,000,000 for grants by the Secretary of State,
6    as State Librarian, for central library facilities
7    authorized by Section 8 of the Illinois Library System Act
8    and for grants by the Capital Development Board to units of
9    local government for public library facilities;
10        (j) $25,000,000 for the acquisition, development,
11    construction, reconstruction, improvement, financing,
12    architectural planning and installation of capital
13    facilities consisting of buildings, structures, durable
14    equipment and land for grants to counties, municipalities
15    or public building commissions with correctional
16    facilities that do not comply with the minimum standards of
17    the Department of Corrections under Section 3-15-2 of the
18    Unified Code of Corrections;
19        (k) $5,000,000 for grants in fiscal year 1988 by the
20    Department of Conservation for improvement or expansion of
21    aquarium facilities located on property owned by a park
22    district;
23        (l) $599,590,000 to State agencies for grants to local
24    governments for the acquisition, financing, architectural
25    planning, development, alteration, installation, and
26    construction of capital facilities consisting of

 

 

HB3564- 43 -LRB099 06481 MLM 31222 b

1    buildings, structures, durable equipment, and land; and
2        (m) $228,500,000 for the Illinois Open Land Trust
3    Program as defined by the Illinois Open Land Trust Act.
4        (n) $900,000,000 for the acquisition, development,
5    construction, reconstruction, improvement, financing,
6    architectural planning, and installation of capital
7    facilities consisting of buildings, structures, durable
8    equipment, and land for gambling operations authorized
9    under Section 7.3a of the Illinois Gambling Act.
10    The amounts authorized above for capital facilities may be
11used for the acquisition, installation, alteration,
12construction, or reconstruction of capital facilities and for
13the purchase of equipment for the purpose of major capital
14improvements which will reduce energy consumption in State
15buildings or facilities.
16(Source: P.A. 98-94, eff. 7-17-13.)
 
17    Section 30. The Illinois Income Tax Act is amended by
18changing Section 201 as follows:
 
19    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
20    Sec. 201. Tax Imposed.
21    (a) In general. A tax measured by net income is hereby
22imposed on every individual, corporation, trust and estate for
23each taxable year ending after July 31, 1969 on the privilege
24of earning or receiving income in or as a resident of this

 

 

HB3564- 44 -LRB099 06481 MLM 31222 b

1State. Such tax shall be in addition to all other occupation or
2privilege taxes imposed by this State or by any municipal
3corporation or political subdivision thereof.
4    (b) Rates. The tax imposed by subsection (a) of this
5Section shall be determined as follows, except as adjusted by
6subsection (d-1):
7        (1) In the case of an individual, trust or estate, for
8    taxable years ending prior to July 1, 1989, an amount equal
9    to 2 1/2% of the taxpayer's net income for the taxable
10    year.
11        (2) In the case of an individual, trust or estate, for
12    taxable years beginning prior to July 1, 1989 and ending
13    after June 30, 1989, an amount equal to the sum of (i) 2
14    1/2% of the taxpayer's net income for the period prior to
15    July 1, 1989, as calculated under Section 202.3, and (ii)
16    3% of the taxpayer's net income for the period after June
17    30, 1989, as calculated under Section 202.3.
18        (3) In the case of an individual, trust or estate, for
19    taxable years beginning after June 30, 1989, and ending
20    prior to January 1, 2011, an amount equal to 3% of the
21    taxpayer's net income for the taxable year.
22        (4) In the case of an individual, trust, or estate, for
23    taxable years beginning prior to January 1, 2011, and
24    ending after December 31, 2010, an amount equal to the sum
25    of (i) 3% of the taxpayer's net income for the period prior
26    to January 1, 2011, as calculated under Section 202.5, and

 

 

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1    (ii) 5% of the taxpayer's net income for the period after
2    December 31, 2010, as calculated under Section 202.5.
3        (5) In the case of an individual, trust, or estate, for
4    taxable years beginning on or after January 1, 2011, and
5    ending prior to January 1, 2015, an amount equal to 5% of
6    the taxpayer's net income for the taxable year.
7        (5.1) In the case of an individual, trust, or estate,
8    for taxable years beginning prior to January 1, 2015, and
9    ending after December 31, 2014, an amount equal to the sum
10    of (i) 5% of the taxpayer's net income for the period prior
11    to January 1, 2015, as calculated under Section 202.5, and
12    (ii) 3.75% of the taxpayer's net income for the period
13    after December 31, 2014, as calculated under Section 202.5.
14        (5.2) In the case of an individual, trust, or estate,
15    for taxable years beginning on or after January 1, 2015,
16    and ending prior to January 1, 2025, an amount equal to
17    3.75% of the taxpayer's net income for the taxable year.
18        (5.3) In the case of an individual, trust, or estate,
19    for taxable years beginning prior to January 1, 2025, and
20    ending after December 31, 2024, an amount equal to the sum
21    of (i) 3.75% of the taxpayer's net income for the period
22    prior to January 1, 2025, as calculated under Section
23    202.5, and (ii) 3.25% of the taxpayer's net income for the
24    period after December 31, 2024, as calculated under Section
25    202.5.
26        (5.4) In the case of an individual, trust, or estate,

 

 

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1    for taxable years beginning on or after January 1, 2025, an
2    amount equal to 3.25% of the taxpayer's net income for the
3    taxable year.
4        (6) In the case of a corporation, for taxable years
5    ending prior to July 1, 1989, an amount equal to 4% of the
6    taxpayer's net income for the taxable year.
7        (7) In the case of a corporation, for taxable years
8    beginning prior to July 1, 1989 and ending after June 30,
9    1989, an amount equal to the sum of (i) 4% of the
10    taxpayer's net income for the period prior to July 1, 1989,
11    as calculated under Section 202.3, and (ii) 4.8% of the
12    taxpayer's net income for the period after June 30, 1989,
13    as calculated under Section 202.3.
14        (8) In the case of a corporation, for taxable years
15    beginning after June 30, 1989, and ending prior to January
16    1, 2011, an amount equal to 4.8% of the taxpayer's net
17    income for the taxable year.
18        (9) In the case of a corporation, for taxable years
19    beginning prior to January 1, 2011, and ending after
20    December 31, 2010, an amount equal to the sum of (i) 4.8%
21    of the taxpayer's net income for the period prior to
22    January 1, 2011, as calculated under Section 202.5, and
23    (ii) 7% of the taxpayer's net income for the period after
24    December 31, 2010, as calculated under Section 202.5.
25        (10) In the case of a corporation, for taxable years
26    beginning on or after January 1, 2011, and ending prior to

 

 

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1    January 1, 2015, an amount equal to 7% of the taxpayer's
2    net income for the taxable year.
3        (11) In the case of a corporation, for taxable years
4    beginning prior to January 1, 2015, and ending after
5    December 31, 2014, an amount equal to the sum of (i) 7% of
6    the taxpayer's net income for the period prior to January
7    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
8    of the taxpayer's net income for the period after December
9    31, 2014, as calculated under Section 202.5.
10        (12) In the case of a corporation, for taxable years
11    beginning on or after January 1, 2015, and ending prior to
12    January 1, 2025, an amount equal to 5.25% of the taxpayer's
13    net income for the taxable year.
14        (13) In the case of a corporation, for taxable years
15    beginning prior to January 1, 2025, and ending after
16    December 31, 2024, an amount equal to the sum of (i) 5.25%
17    of the taxpayer's net income for the period prior to
18    January 1, 2025, as calculated under Section 202.5, and
19    (ii) 4.8% of the taxpayer's net income for the period after
20    December 31, 2024, as calculated under Section 202.5.
21        (14) In the case of a corporation, for taxable years
22    beginning on or after January 1, 2025, an amount equal to
23    4.8% of the taxpayer's net income for the taxable year.
24    The rates under this subsection (b) are subject to the
25provisions of Section 201.5.
26    (b-5) Surcharge; sale or exchange of assets, properties,

 

 

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1and intangibles of electronic gaming licensees. For each of
2taxable years 2015 through 2023, a surcharge is imposed on all
3taxpayers on income arising from the sale or exchange of
4capital assets, depreciable business property, real property
5used in the trade or business, and Section 197 intangibles (i)
6of an organization licensee under the Illinois Horse Racing Act
7of 1975 and (ii) of an electronic gaming licensee under the
8Illinois Gambling Act. The amount of the surcharge is equal to
9the amount of federal income tax liability for the taxable year
10attributable to those sales and exchanges. The surcharge
11imposed shall not apply if:
12        (1) the electronic gaming license, organization
13    license, or race track property is transferred as a result
14    of any of the following:
15            (A) bankruptcy, a receivership, or a debt
16        adjustment initiated by or against the initial
17        licensee or the substantial owners of the initial
18        licensee;
19            (B) cancellation, revocation, or termination of
20        any such license by the Illinois Gaming Board or the
21        Illinois Racing Board;
22            (C) a determination by the Illinois Gaming Board
23        that transfer of the license is in the best interests
24        of Illinois gaming;
25            (D) the death of an owner of the equity interest in
26        a licensee;

 

 

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1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the license when the license was issued;
9        (2) the controlling interest in the electronic gaming
10    license, organization license, or race track property is
11    transferred in a transaction to lineal descendants in which
12    no gain or loss is recognized or as a result of a
13    transaction in accordance with Section 351 of the Internal
14    Revenue Code in which no gain or loss is recognized; or
15        (3) live horse racing was not conducted in 2011 under a
16    license issued pursuant to the Illinois Horse Racing Act of
17    1975.
18    The transfer of an electronic gaming license, organization
19license, or race track property by a person other than the
20initial licensee to receive the electronic gaming license is
21not subject to a surcharge. The Department shall adopt rules
22necessary to implement and administer this subsection.
23    (c) Personal Property Tax Replacement Income Tax.
24Beginning on July 1, 1979 and thereafter, in addition to such
25income tax, there is also hereby imposed the Personal Property
26Tax Replacement Income Tax measured by net income on every

 

 

HB3564- 50 -LRB099 06481 MLM 31222 b

1corporation (including Subchapter S corporations), partnership
2and trust, for each taxable year ending after June 30, 1979.
3Such taxes are imposed on the privilege of earning or receiving
4income in or as a resident of this State. The Personal Property
5Tax Replacement Income Tax shall be in addition to the income
6tax imposed by subsections (a) and (b) of this Section and in
7addition to all other occupation or privilege taxes imposed by
8this State or by any municipal corporation or political
9subdivision thereof.
10    (d) Additional Personal Property Tax Replacement Income
11Tax Rates. The personal property tax replacement income tax
12imposed by this subsection and subsection (c) of this Section
13in the case of a corporation, other than a Subchapter S
14corporation and except as adjusted by subsection (d-1), shall
15be an additional amount equal to 2.85% of such taxpayer's net
16income for the taxable year, except that beginning on January
171, 1981, and thereafter, the rate of 2.85% specified in this
18subsection shall be reduced to 2.5%, and in the case of a
19partnership, trust or a Subchapter S corporation shall be an
20additional amount equal to 1.5% of such taxpayer's net income
21for the taxable year.
22    (d-1) Rate reduction for certain foreign insurers. In the
23case of a foreign insurer, as defined by Section 35A-5 of the
24Illinois Insurance Code, whose state or country of domicile
25imposes on insurers domiciled in Illinois a retaliatory tax
26(excluding any insurer whose premiums from reinsurance assumed

 

 

HB3564- 51 -LRB099 06481 MLM 31222 b

1are 50% or more of its total insurance premiums as determined
2under paragraph (2) of subsection (b) of Section 304, except
3that for purposes of this determination premiums from
4reinsurance do not include premiums from inter-affiliate
5reinsurance arrangements), beginning with taxable years ending
6on or after December 31, 1999, the sum of the rates of tax
7imposed by subsections (b) and (d) shall be reduced (but not
8increased) to the rate at which the total amount of tax imposed
9under this Act, net of all credits allowed under this Act,
10shall equal (i) the total amount of tax that would be imposed
11on the foreign insurer's net income allocable to Illinois for
12the taxable year by such foreign insurer's state or country of
13domicile if that net income were subject to all income taxes
14and taxes measured by net income imposed by such foreign
15insurer's state or country of domicile, net of all credits
16allowed or (ii) a rate of zero if no such tax is imposed on such
17income by the foreign insurer's state of domicile. For the
18purposes of this subsection (d-1), an inter-affiliate includes
19a mutual insurer under common management.
20        (1) For the purposes of subsection (d-1), in no event
21    shall the sum of the rates of tax imposed by subsections
22    (b) and (d) be reduced below the rate at which the sum of:
23            (A) the total amount of tax imposed on such foreign
24        insurer under this Act for a taxable year, net of all
25        credits allowed under this Act, plus
26            (B) the privilege tax imposed by Section 409 of the

 

 

HB3564- 52 -LRB099 06481 MLM 31222 b

1        Illinois Insurance Code, the fire insurance company
2        tax imposed by Section 12 of the Fire Investigation
3        Act, and the fire department taxes imposed under
4        Section 11-10-1 of the Illinois Municipal Code,
5    equals 1.25% for taxable years ending prior to December 31,
6    2003, or 1.75% for taxable years ending on or after
7    December 31, 2003, of the net taxable premiums written for
8    the taxable year, as described by subsection (1) of Section
9    409 of the Illinois Insurance Code. This paragraph will in
10    no event increase the rates imposed under subsections (b)
11    and (d).
12        (2) Any reduction in the rates of tax imposed by this
13    subsection shall be applied first against the rates imposed
14    by subsection (b) and only after the tax imposed by
15    subsection (a) net of all credits allowed under this
16    Section other than the credit allowed under subsection (i)
17    has been reduced to zero, against the rates imposed by
18    subsection (d).
19    This subsection (d-1) is exempt from the provisions of
20Section 250.
21    (e) Investment credit. A taxpayer shall be allowed a credit
22against the Personal Property Tax Replacement Income Tax for
23investment in qualified property.
24        (1) A taxpayer shall be allowed a credit equal to .5%
25    of the basis of qualified property placed in service during
26    the taxable year, provided such property is placed in

 

 

HB3564- 53 -LRB099 06481 MLM 31222 b

1    service on or after July 1, 1984. There shall be allowed an
2    additional credit equal to .5% of the basis of qualified
3    property placed in service during the taxable year,
4    provided such property is placed in service on or after
5    July 1, 1986, and the taxpayer's base employment within
6    Illinois has increased by 1% or more over the preceding
7    year as determined by the taxpayer's employment records
8    filed with the Illinois Department of Employment Security.
9    Taxpayers who are new to Illinois shall be deemed to have
10    met the 1% growth in base employment for the first year in
11    which they file employment records with the Illinois
12    Department of Employment Security. The provisions added to
13    this Section by Public Act 85-1200 (and restored by Public
14    Act 87-895) shall be construed as declaratory of existing
15    law and not as a new enactment. If, in any year, the
16    increase in base employment within Illinois over the
17    preceding year is less than 1%, the additional credit shall
18    be limited to that percentage times a fraction, the
19    numerator of which is .5% and the denominator of which is
20    1%, but shall not exceed .5%. The investment credit shall
21    not be allowed to the extent that it would reduce a
22    taxpayer's liability in any tax year below zero, nor may
23    any credit for qualified property be allowed for any year
24    other than the year in which the property was placed in
25    service in Illinois. For tax years ending on or after
26    December 31, 1987, and on or before December 31, 1988, the

 

 

HB3564- 54 -LRB099 06481 MLM 31222 b

1    credit shall be allowed for the tax year in which the
2    property is placed in service, or, if the amount of the
3    credit exceeds the tax liability for that year, whether it
4    exceeds the original liability or the liability as later
5    amended, such excess may be carried forward and applied to
6    the tax liability of the 5 taxable years following the
7    excess credit years if the taxpayer (i) makes investments
8    which cause the creation of a minimum of 2,000 full-time
9    equivalent jobs in Illinois, (ii) is located in an
10    enterprise zone established pursuant to the Illinois
11    Enterprise Zone Act and (iii) is certified by the
12    Department of Commerce and Community Affairs (now
13    Department of Commerce and Economic Opportunity) as
14    complying with the requirements specified in clause (i) and
15    (ii) by July 1, 1986. The Department of Commerce and
16    Community Affairs (now Department of Commerce and Economic
17    Opportunity) shall notify the Department of Revenue of all
18    such certifications immediately. For tax years ending
19    after December 31, 1988, the credit shall be allowed for
20    the tax year in which the property is placed in service,
21    or, if the amount of the credit exceeds the tax liability
22    for that year, whether it exceeds the original liability or
23    the liability as later amended, such excess may be carried
24    forward and applied to the tax liability of the 5 taxable
25    years following the excess credit years. The credit shall
26    be applied to the earliest year for which there is a

 

 

HB3564- 55 -LRB099 06481 MLM 31222 b

1    liability. If there is credit from more than one tax year
2    that is available to offset a liability, earlier credit
3    shall be applied first.
4        (2) The term "qualified property" means property
5    which:
6            (A) is tangible, whether new or used, including
7        buildings and structural components of buildings and
8        signs that are real property, but not including land or
9        improvements to real property that are not a structural
10        component of a building such as landscaping, sewer
11        lines, local access roads, fencing, parking lots, and
12        other appurtenances;
13            (B) is depreciable pursuant to Section 167 of the
14        Internal Revenue Code, except that "3-year property"
15        as defined in Section 168(c)(2)(A) of that Code is not
16        eligible for the credit provided by this subsection
17        (e);
18            (C) is acquired by purchase as defined in Section
19        179(d) of the Internal Revenue Code;
20            (D) is used in Illinois by a taxpayer who is
21        primarily engaged in manufacturing, or in mining coal
22        or fluorite, or in retailing, or was placed in service
23        on or after July 1, 2006 in a River Edge Redevelopment
24        Zone established pursuant to the River Edge
25        Redevelopment Zone Act; and
26            (E) has not previously been used in Illinois in

 

 

HB3564- 56 -LRB099 06481 MLM 31222 b

1        such a manner and by such a person as would qualify for
2        the credit provided by this subsection (e) or
3        subsection (f).
4        (3) For purposes of this subsection (e),
5    "manufacturing" means the material staging and production
6    of tangible personal property by procedures commonly
7    regarded as manufacturing, processing, fabrication, or
8    assembling which changes some existing material into new
9    shapes, new qualities, or new combinations. For purposes of
10    this subsection (e) the term "mining" shall have the same
11    meaning as the term "mining" in Section 613(c) of the
12    Internal Revenue Code. For purposes of this subsection (e),
13    the term "retailing" means the sale of tangible personal
14    property for use or consumption and not for resale, or
15    services rendered in conjunction with the sale of tangible
16    personal property for use or consumption and not for
17    resale. For purposes of this subsection (e), "tangible
18    personal property" has the same meaning as when that term
19    is used in the Retailers' Occupation Tax Act, and, for
20    taxable years ending after December 31, 2008, does not
21    include the generation, transmission, or distribution of
22    electricity.
23        (4) The basis of qualified property shall be the basis
24    used to compute the depreciation deduction for federal
25    income tax purposes.
26        (5) If the basis of the property for federal income tax

 

 

HB3564- 57 -LRB099 06481 MLM 31222 b

1    depreciation purposes is increased after it has been placed
2    in service in Illinois by the taxpayer, the amount of such
3    increase shall be deemed property placed in service on the
4    date of such increase in basis.
5        (6) The term "placed in service" shall have the same
6    meaning as under Section 46 of the Internal Revenue Code.
7        (7) If during any taxable year, any property ceases to
8    be qualified property in the hands of the taxpayer within
9    48 months after being placed in service, or the situs of
10    any qualified property is moved outside Illinois within 48
11    months after being placed in service, the Personal Property
12    Tax Replacement Income Tax for such taxable year shall be
13    increased. Such increase shall be determined by (i)
14    recomputing the investment credit which would have been
15    allowed for the year in which credit for such property was
16    originally allowed by eliminating such property from such
17    computation and, (ii) subtracting such recomputed credit
18    from the amount of credit previously allowed. For the
19    purposes of this paragraph (7), a reduction of the basis of
20    qualified property resulting from a redetermination of the
21    purchase price shall be deemed a disposition of qualified
22    property to the extent of such reduction.
23        (8) Unless the investment credit is extended by law,
24    the basis of qualified property shall not include costs
25    incurred after December 31, 2018, except for costs incurred
26    pursuant to a binding contract entered into on or before

 

 

HB3564- 58 -LRB099 06481 MLM 31222 b

1    December 31, 2018.
2        (9) Each taxable year ending before December 31, 2000,
3    a partnership may elect to pass through to its partners the
4    credits to which the partnership is entitled under this
5    subsection (e) for the taxable year. A partner may use the
6    credit allocated to him or her under this paragraph only
7    against the tax imposed in subsections (c) and (d) of this
8    Section. If the partnership makes that election, those
9    credits shall be allocated among the partners in the
10    partnership in accordance with the rules set forth in
11    Section 704(b) of the Internal Revenue Code, and the rules
12    promulgated under that Section, and the allocated amount of
13    the credits shall be allowed to the partners for that
14    taxable year. The partnership shall make this election on
15    its Personal Property Tax Replacement Income Tax return for
16    that taxable year. The election to pass through the credits
17    shall be irrevocable.
18        For taxable years ending on or after December 31, 2000,
19    a partner that qualifies its partnership for a subtraction
20    under subparagraph (I) of paragraph (2) of subsection (d)
21    of Section 203 or a shareholder that qualifies a Subchapter
22    S corporation for a subtraction under subparagraph (S) of
23    paragraph (2) of subsection (b) of Section 203 shall be
24    allowed a credit under this subsection (e) equal to its
25    share of the credit earned under this subsection (e) during
26    the taxable year by the partnership or Subchapter S

 

 

HB3564- 59 -LRB099 06481 MLM 31222 b

1    corporation, determined in accordance with the
2    determination of income and distributive share of income
3    under Sections 702 and 704 and Subchapter S of the Internal
4    Revenue Code. This paragraph is exempt from the provisions
5    of Section 250.
6    (f) Investment credit; Enterprise Zone; River Edge
7Redevelopment Zone.
8        (1) A taxpayer shall be allowed a credit against the
9    tax imposed by subsections (a) and (b) of this Section for
10    investment in qualified property which is placed in service
11    in an Enterprise Zone created pursuant to the Illinois
12    Enterprise Zone Act or, for property placed in service on
13    or after July 1, 2006, a River Edge Redevelopment Zone
14    established pursuant to the River Edge Redevelopment Zone
15    Act. For partners, shareholders of Subchapter S
16    corporations, and owners of limited liability companies,
17    if the liability company is treated as a partnership for
18    purposes of federal and State income taxation, there shall
19    be allowed a credit under this subsection (f) to be
20    determined in accordance with the determination of income
21    and distributive share of income under Sections 702 and 704
22    and Subchapter S of the Internal Revenue Code. The credit
23    shall be .5% of the basis for such property. The credit
24    shall be available only in the taxable year in which the
25    property is placed in service in the Enterprise Zone or
26    River Edge Redevelopment Zone and shall not be allowed to

 

 

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1    the extent that it would reduce a taxpayer's liability for
2    the tax imposed by subsections (a) and (b) of this Section
3    to below zero. For tax years ending on or after December
4    31, 1985, the credit shall be allowed for the tax year in
5    which the property is placed in service, or, if the amount
6    of the credit exceeds the tax liability for that year,
7    whether it exceeds the original liability or the liability
8    as later amended, such excess may be carried forward and
9    applied to the tax liability of the 5 taxable years
10    following the excess credit year. The credit shall be
11    applied to the earliest year for which there is a
12    liability. If there is credit from more than one tax year
13    that is available to offset a liability, the credit
14    accruing first in time shall be applied first.
15        (2) The term qualified property means property which:
16            (A) is tangible, whether new or used, including
17        buildings and structural components of buildings;
18            (B) is depreciable pursuant to Section 167 of the
19        Internal Revenue Code, except that "3-year property"
20        as defined in Section 168(c)(2)(A) of that Code is not
21        eligible for the credit provided by this subsection
22        (f);
23            (C) is acquired by purchase as defined in Section
24        179(d) of the Internal Revenue Code;
25            (D) is used in the Enterprise Zone or River Edge
26        Redevelopment Zone by the taxpayer; and

 

 

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1            (E) has not been previously used in Illinois in
2        such a manner and by such a person as would qualify for
3        the credit provided by this subsection (f) or
4        subsection (e).
5        (3) The basis of qualified property shall be the basis
6    used to compute the depreciation deduction for federal
7    income tax purposes.
8        (4) If the basis of the property for federal income tax
9    depreciation purposes is increased after it has been placed
10    in service in the Enterprise Zone or River Edge
11    Redevelopment Zone by the taxpayer, the amount of such
12    increase shall be deemed property placed in service on the
13    date of such increase in basis.
14        (5) The term "placed in service" shall have the same
15    meaning as under Section 46 of the Internal Revenue Code.
16        (6) If during any taxable year, any property ceases to
17    be qualified property in the hands of the taxpayer within
18    48 months after being placed in service, or the situs of
19    any qualified property is moved outside the Enterprise Zone
20    or River Edge Redevelopment Zone within 48 months after
21    being placed in service, the tax imposed under subsections
22    (a) and (b) of this Section for such taxable year shall be
23    increased. Such increase shall be determined by (i)
24    recomputing the investment credit which would have been
25    allowed for the year in which credit for such property was
26    originally allowed by eliminating such property from such

 

 

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1    computation, and (ii) subtracting such recomputed credit
2    from the amount of credit previously allowed. For the
3    purposes of this paragraph (6), a reduction of the basis of
4    qualified property resulting from a redetermination of the
5    purchase price shall be deemed a disposition of qualified
6    property to the extent of such reduction.
7        (7) There shall be allowed an additional credit equal
8    to 0.5% of the basis of qualified property placed in
9    service during the taxable year in a River Edge
10    Redevelopment Zone, provided such property is placed in
11    service on or after July 1, 2006, and the taxpayer's base
12    employment within Illinois has increased by 1% or more over
13    the preceding year as determined by the taxpayer's
14    employment records filed with the Illinois Department of
15    Employment Security. Taxpayers who are new to Illinois
16    shall be deemed to have met the 1% growth in base
17    employment for the first year in which they file employment
18    records with the Illinois Department of Employment
19    Security. If, in any year, the increase in base employment
20    within Illinois over the preceding year is less than 1%,
21    the additional credit shall be limited to that percentage
22    times a fraction, the numerator of which is 0.5% and the
23    denominator of which is 1%, but shall not exceed 0.5%.
24    (g) (Blank).
25    (h) Investment credit; High Impact Business.
26        (1) Subject to subsections (b) and (b-5) of Section 5.5

 

 

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1    of the Illinois Enterprise Zone Act, a taxpayer shall be
2    allowed a credit against the tax imposed by subsections (a)
3    and (b) of this Section for investment in qualified
4    property which is placed in service by a Department of
5    Commerce and Economic Opportunity designated High Impact
6    Business. The credit shall be .5% of the basis for such
7    property. The credit shall not be available (i) until the
8    minimum investments in qualified property set forth in
9    subdivision (a)(3)(A) of Section 5.5 of the Illinois
10    Enterprise Zone Act have been satisfied or (ii) until the
11    time authorized in subsection (b-5) of the Illinois
12    Enterprise Zone Act for entities designated as High Impact
13    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
14    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
15    Act, and shall not be allowed to the extent that it would
16    reduce a taxpayer's liability for the tax imposed by
17    subsections (a) and (b) of this Section to below zero. The
18    credit applicable to such investments shall be taken in the
19    taxable year in which such investments have been completed.
20    The credit for additional investments beyond the minimum
21    investment by a designated high impact business authorized
22    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
23    Enterprise Zone Act shall be available only in the taxable
24    year in which the property is placed in service and shall
25    not be allowed to the extent that it would reduce a
26    taxpayer's liability for the tax imposed by subsections (a)

 

 

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1    and (b) of this Section to below zero. For tax years ending
2    on or after December 31, 1987, the credit shall be allowed
3    for the tax year in which the property is placed in
4    service, or, if the amount of the credit exceeds the tax
5    liability for that year, whether it exceeds the original
6    liability or the liability as later amended, such excess
7    may be carried forward and applied to the tax liability of
8    the 5 taxable years following the excess credit year. The
9    credit shall be applied to the earliest year for which
10    there is a liability. If there is credit from more than one
11    tax year that is available to offset a liability, the
12    credit accruing first in time shall be applied first.
13        Changes made in this subdivision (h)(1) by Public Act
14    88-670 restore changes made by Public Act 85-1182 and
15    reflect existing law.
16        (2) The term qualified property means property which:
17            (A) is tangible, whether new or used, including
18        buildings and structural components of buildings;
19            (B) is depreciable pursuant to Section 167 of the
20        Internal Revenue Code, except that "3-year property"
21        as defined in Section 168(c)(2)(A) of that Code is not
22        eligible for the credit provided by this subsection
23        (h);
24            (C) is acquired by purchase as defined in Section
25        179(d) of the Internal Revenue Code; and
26            (D) is not eligible for the Enterprise Zone

 

 

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1        Investment Credit provided by subsection (f) of this
2        Section.
3        (3) The basis of qualified property shall be the basis
4    used to compute the depreciation deduction for federal
5    income tax purposes.
6        (4) If the basis of the property for federal income tax
7    depreciation purposes is increased after it has been placed
8    in service in a federally designated Foreign Trade Zone or
9    Sub-Zone located in Illinois by the taxpayer, the amount of
10    such increase shall be deemed property placed in service on
11    the date of such increase in basis.
12        (5) The term "placed in service" shall have the same
13    meaning as under Section 46 of the Internal Revenue Code.
14        (6) If during any taxable year ending on or before
15    December 31, 1996, any property ceases to be qualified
16    property in the hands of the taxpayer within 48 months
17    after being placed in service, or the situs of any
18    qualified property is moved outside Illinois within 48
19    months after being placed in service, the tax imposed under
20    subsections (a) and (b) of this Section for such taxable
21    year shall be increased. Such increase shall be determined
22    by (i) recomputing the investment credit which would have
23    been allowed for the year in which credit for such property
24    was originally allowed by eliminating such property from
25    such computation, and (ii) subtracting such recomputed
26    credit from the amount of credit previously allowed. For

 

 

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1    the purposes of this paragraph (6), a reduction of the
2    basis of qualified property resulting from a
3    redetermination of the purchase price shall be deemed a
4    disposition of qualified property to the extent of such
5    reduction.
6        (7) Beginning with tax years ending after December 31,
7    1996, if a taxpayer qualifies for the credit under this
8    subsection (h) and thereby is granted a tax abatement and
9    the taxpayer relocates its entire facility in violation of
10    the explicit terms and length of the contract under Section
11    18-183 of the Property Tax Code, the tax imposed under
12    subsections (a) and (b) of this Section shall be increased
13    for the taxable year in which the taxpayer relocated its
14    facility by an amount equal to the amount of credit
15    received by the taxpayer under this subsection (h).
16    (i) Credit for Personal Property Tax Replacement Income
17Tax. For tax years ending prior to December 31, 2003, a credit
18shall be allowed against the tax imposed by subsections (a) and
19(b) of this Section for the tax imposed by subsections (c) and
20(d) of this Section. This credit shall be computed by
21multiplying the tax imposed by subsections (c) and (d) of this
22Section by a fraction, the numerator of which is base income
23allocable to Illinois and the denominator of which is Illinois
24base income, and further multiplying the product by the tax
25rate imposed by subsections (a) and (b) of this Section.
26    Any credit earned on or after December 31, 1986 under this

 

 

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1subsection which is unused in the year the credit is computed
2because it exceeds the tax liability imposed by subsections (a)
3and (b) for that year (whether it exceeds the original
4liability or the liability as later amended) may be carried
5forward and applied to the tax liability imposed by subsections
6(a) and (b) of the 5 taxable years following the excess credit
7year, provided that no credit may be carried forward to any
8year ending on or after December 31, 2003. This credit shall be
9applied first to the earliest year for which there is a
10liability. If there is a credit under this subsection from more
11than one tax year that is available to offset a liability the
12earliest credit arising under this subsection shall be applied
13first.
14    If, during any taxable year ending on or after December 31,
151986, the tax imposed by subsections (c) and (d) of this
16Section for which a taxpayer has claimed a credit under this
17subsection (i) is reduced, the amount of credit for such tax
18shall also be reduced. Such reduction shall be determined by
19recomputing the credit to take into account the reduced tax
20imposed by subsections (c) and (d). If any portion of the
21reduced amount of credit has been carried to a different
22taxable year, an amended return shall be filed for such taxable
23year to reduce the amount of credit claimed.
24    (j) Training expense credit. Beginning with tax years
25ending on or after December 31, 1986 and prior to December 31,
262003, a taxpayer shall be allowed a credit against the tax

 

 

HB3564- 68 -LRB099 06481 MLM 31222 b

1imposed by subsections (a) and (b) under this Section for all
2amounts paid or accrued, on behalf of all persons employed by
3the taxpayer in Illinois or Illinois residents employed outside
4of Illinois by a taxpayer, for educational or vocational
5training in semi-technical or technical fields or semi-skilled
6or skilled fields, which were deducted from gross income in the
7computation of taxable income. The credit against the tax
8imposed by subsections (a) and (b) shall be 1.6% of such
9training expenses. For partners, shareholders of subchapter S
10corporations, and owners of limited liability companies, if the
11liability company is treated as a partnership for purposes of
12federal and State income taxation, there shall be allowed a
13credit under this subsection (j) to be determined in accordance
14with the determination of income and distributive share of
15income under Sections 702 and 704 and subchapter S of the
16Internal Revenue Code.
17    Any credit allowed under this subsection which is unused in
18the year the credit is earned may be carried forward to each of
19the 5 taxable years following the year for which the credit is
20first computed until it is used. This credit shall be applied
21first to the earliest year for which there is a liability. If
22there is a credit under this subsection from more than one tax
23year that is available to offset a liability the earliest
24credit arising under this subsection shall be applied first. No
25carryforward credit may be claimed in any tax year ending on or
26after December 31, 2003.

 

 

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1    (k) Research and development credit. For tax years ending
2after July 1, 1990 and prior to December 31, 2003, and
3beginning again for tax years ending on or after December 31,
42004, and ending prior to January 1, 2016, a taxpayer shall be
5allowed a credit against the tax imposed by subsections (a) and
6(b) of this Section for increasing research activities in this
7State. The credit allowed against the tax imposed by
8subsections (a) and (b) shall be equal to 6 1/2% of the
9qualifying expenditures for increasing research activities in
10this State. For partners, shareholders of subchapter S
11corporations, and owners of limited liability companies, if the
12liability company is treated as a partnership for purposes of
13federal and State income taxation, there shall be allowed a
14credit under this subsection to be determined in accordance
15with the determination of income and distributive share of
16income under Sections 702 and 704 and subchapter S of the
17Internal Revenue Code.
18    For purposes of this subsection, "qualifying expenditures"
19means the qualifying expenditures as defined for the federal
20credit for increasing research activities which would be
21allowable under Section 41 of the Internal Revenue Code and
22which are conducted in this State, "qualifying expenditures for
23increasing research activities in this State" means the excess
24of qualifying expenditures for the taxable year in which
25incurred over qualifying expenditures for the base period,
26"qualifying expenditures for the base period" means the average

 

 

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1of the qualifying expenditures for each year in the base
2period, and "base period" means the 3 taxable years immediately
3preceding the taxable year for which the determination is being
4made.
5    Any credit in excess of the tax liability for the taxable
6year may be carried forward. A taxpayer may elect to have the
7unused credit shown on its final completed return carried over
8as a credit against the tax liability for the following 5
9taxable years or until it has been fully used, whichever occurs
10first; provided that no credit earned in a tax year ending
11prior to December 31, 2003 may be carried forward to any year
12ending on or after December 31, 2003.
13    If an unused credit is carried forward to a given year from
142 or more earlier years, that credit arising in the earliest
15year will be applied first against the tax liability for the
16given year. If a tax liability for the given year still
17remains, the credit from the next earliest year will then be
18applied, and so on, until all credits have been used or no tax
19liability for the given year remains. Any remaining unused
20credit or credits then will be carried forward to the next
21following year in which a tax liability is incurred, except
22that no credit can be carried forward to a year which is more
23than 5 years after the year in which the expense for which the
24credit is given was incurred.
25    No inference shall be drawn from this amendatory Act of the
2691st General Assembly in construing this Section for taxable

 

 

HB3564- 71 -LRB099 06481 MLM 31222 b

1years beginning before January 1, 1999.
2    (l) Environmental Remediation Tax Credit.
3        (i) For tax years ending after December 31, 1997 and on
4    or before December 31, 2001, a taxpayer shall be allowed a
5    credit against the tax imposed by subsections (a) and (b)
6    of this Section for certain amounts paid for unreimbursed
7    eligible remediation costs, as specified in this
8    subsection. For purposes of this Section, "unreimbursed
9    eligible remediation costs" means costs approved by the
10    Illinois Environmental Protection Agency ("Agency") under
11    Section 58.14 of the Environmental Protection Act that were
12    paid in performing environmental remediation at a site for
13    which a No Further Remediation Letter was issued by the
14    Agency and recorded under Section 58.10 of the
15    Environmental Protection Act. The credit must be claimed
16    for the taxable year in which Agency approval of the
17    eligible remediation costs is granted. The credit is not
18    available to any taxpayer if the taxpayer or any related
19    party caused or contributed to, in any material respect, a
20    release of regulated substances on, in, or under the site
21    that was identified and addressed by the remedial action
22    pursuant to the Site Remediation Program of the
23    Environmental Protection Act. After the Pollution Control
24    Board rules are adopted pursuant to the Illinois
25    Administrative Procedure Act for the administration and
26    enforcement of Section 58.9 of the Environmental

 

 

HB3564- 72 -LRB099 06481 MLM 31222 b

1    Protection Act, determinations as to credit availability
2    for purposes of this Section shall be made consistent with
3    those rules. For purposes of this Section, "taxpayer"
4    includes a person whose tax attributes the taxpayer has
5    succeeded to under Section 381 of the Internal Revenue Code
6    and "related party" includes the persons disallowed a
7    deduction for losses by paragraphs (b), (c), and (f)(1) of
8    Section 267 of the Internal Revenue Code by virtue of being
9    a related taxpayer, as well as any of its partners. The
10    credit allowed against the tax imposed by subsections (a)
11    and (b) shall be equal to 25% of the unreimbursed eligible
12    remediation costs in excess of $100,000 per site, except
13    that the $100,000 threshold shall not apply to any site
14    contained in an enterprise zone as determined by the
15    Department of Commerce and Community Affairs (now
16    Department of Commerce and Economic Opportunity). The
17    total credit allowed shall not exceed $40,000 per year with
18    a maximum total of $150,000 per site. For partners and
19    shareholders of subchapter S corporations, there shall be
20    allowed a credit under this subsection to be determined in
21    accordance with the determination of income and
22    distributive share of income under Sections 702 and 704 and
23    subchapter S of the Internal Revenue Code.
24        (ii) A credit allowed under this subsection that is
25    unused in the year the credit is earned may be carried
26    forward to each of the 5 taxable years following the year

 

 

HB3564- 73 -LRB099 06481 MLM 31222 b

1    for which the credit is first earned until it is used. The
2    term "unused credit" does not include any amounts of
3    unreimbursed eligible remediation costs in excess of the
4    maximum credit per site authorized under paragraph (i).
5    This credit shall be applied first to the earliest year for
6    which there is a liability. If there is a credit under this
7    subsection from more than one tax year that is available to
8    offset a liability, the earliest credit arising under this
9    subsection shall be applied first. A credit allowed under
10    this subsection may be sold to a buyer as part of a sale of
11    all or part of the remediation site for which the credit
12    was granted. The purchaser of a remediation site and the
13    tax credit shall succeed to the unused credit and remaining
14    carry-forward period of the seller. To perfect the
15    transfer, the assignor shall record the transfer in the
16    chain of title for the site and provide written notice to
17    the Director of the Illinois Department of Revenue of the
18    assignor's intent to sell the remediation site and the
19    amount of the tax credit to be transferred as a portion of
20    the sale. In no event may a credit be transferred to any
21    taxpayer if the taxpayer or a related party would not be
22    eligible under the provisions of subsection (i).
23        (iii) For purposes of this Section, the term "site"
24    shall have the same meaning as under Section 58.2 of the
25    Environmental Protection Act.
26    (m) Education expense credit. Beginning with tax years

 

 

HB3564- 74 -LRB099 06481 MLM 31222 b

1ending after December 31, 1999, a taxpayer who is the custodian
2of one or more qualifying pupils shall be allowed a credit
3against the tax imposed by subsections (a) and (b) of this
4Section for qualified education expenses incurred on behalf of
5the qualifying pupils. The credit shall be equal to 25% of
6qualified education expenses, but in no event may the total
7credit under this subsection claimed by a family that is the
8custodian of qualifying pupils exceed $500. In no event shall a
9credit under this subsection reduce the taxpayer's liability
10under this Act to less than zero. This subsection is exempt
11from the provisions of Section 250 of this Act.
12    For purposes of this subsection:
13    "Qualifying pupils" means individuals who (i) are
14residents of the State of Illinois, (ii) are under the age of
1521 at the close of the school year for which a credit is
16sought, and (iii) during the school year for which a credit is
17sought were full-time pupils enrolled in a kindergarten through
18twelfth grade education program at any school, as defined in
19this subsection.
20    "Qualified education expense" means the amount incurred on
21behalf of a qualifying pupil in excess of $250 for tuition,
22book fees, and lab fees at the school in which the pupil is
23enrolled during the regular school year.
24    "School" means any public or nonpublic elementary or
25secondary school in Illinois that is in compliance with Title
26VI of the Civil Rights Act of 1964 and attendance at which

 

 

HB3564- 75 -LRB099 06481 MLM 31222 b

1satisfies the requirements of Section 26-1 of the School Code,
2except that nothing shall be construed to require a child to
3attend any particular public or nonpublic school to qualify for
4the credit under this Section.
5    "Custodian" means, with respect to qualifying pupils, an
6Illinois resident who is a parent, the parents, a legal
7guardian, or the legal guardians of the qualifying pupils.
8    (n) River Edge Redevelopment Zone site remediation tax
9credit.
10        (i) For tax years ending on or after December 31, 2006,
11    a taxpayer shall be allowed a credit against the tax
12    imposed by subsections (a) and (b) of this Section for
13    certain amounts paid for unreimbursed eligible remediation
14    costs, as specified in this subsection. For purposes of
15    this Section, "unreimbursed eligible remediation costs"
16    means costs approved by the Illinois Environmental
17    Protection Agency ("Agency") under Section 58.14a of the
18    Environmental Protection Act that were paid in performing
19    environmental remediation at a site within a River Edge
20    Redevelopment Zone for which a No Further Remediation
21    Letter was issued by the Agency and recorded under Section
22    58.10 of the Environmental Protection Act. The credit must
23    be claimed for the taxable year in which Agency approval of
24    the eligible remediation costs is granted. The credit is
25    not available to any taxpayer if the taxpayer or any
26    related party caused or contributed to, in any material

 

 

HB3564- 76 -LRB099 06481 MLM 31222 b

1    respect, a release of regulated substances on, in, or under
2    the site that was identified and addressed by the remedial
3    action pursuant to the Site Remediation Program of the
4    Environmental Protection Act. Determinations as to credit
5    availability for purposes of this Section shall be made
6    consistent with rules adopted by the Pollution Control
7    Board pursuant to the Illinois Administrative Procedure
8    Act for the administration and enforcement of Section 58.9
9    of the Environmental Protection Act. For purposes of this
10    Section, "taxpayer" includes a person whose tax attributes
11    the taxpayer has succeeded to under Section 381 of the
12    Internal Revenue Code and "related party" includes the
13    persons disallowed a deduction for losses by paragraphs
14    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
15    Code by virtue of being a related taxpayer, as well as any
16    of its partners. The credit allowed against the tax imposed
17    by subsections (a) and (b) shall be equal to 25% of the
18    unreimbursed eligible remediation costs in excess of
19    $100,000 per site.
20        (ii) A credit allowed under this subsection that is
21    unused in the year the credit is earned may be carried
22    forward to each of the 5 taxable years following the year
23    for which the credit is first earned until it is used. This
24    credit shall be applied first to the earliest year for
25    which there is a liability. If there is a credit under this
26    subsection from more than one tax year that is available to

 

 

HB3564- 77 -LRB099 06481 MLM 31222 b

1    offset a liability, the earliest credit arising under this
2    subsection shall be applied first. A credit allowed under
3    this subsection may be sold to a buyer as part of a sale of
4    all or part of the remediation site for which the credit
5    was granted. The purchaser of a remediation site and the
6    tax credit shall succeed to the unused credit and remaining
7    carry-forward period of the seller. To perfect the
8    transfer, the assignor shall record the transfer in the
9    chain of title for the site and provide written notice to
10    the Director of the Illinois Department of Revenue of the
11    assignor's intent to sell the remediation site and the
12    amount of the tax credit to be transferred as a portion of
13    the sale. In no event may a credit be transferred to any
14    taxpayer if the taxpayer or a related party would not be
15    eligible under the provisions of subsection (i).
16        (iii) For purposes of this Section, the term "site"
17    shall have the same meaning as under Section 58.2 of the
18    Environmental Protection Act.
19    (o) For each of taxable years during the Compassionate Use
20of Medical Cannabis Pilot Program, a surcharge is imposed on
21all taxpayers on income arising from the sale or exchange of
22capital assets, depreciable business property, real property
23used in the trade or business, and Section 197 intangibles of
24an organization registrant under the Compassionate Use of
25Medical Cannabis Pilot Program Act. The amount of the surcharge
26is equal to the amount of federal income tax liability for the

 

 

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1taxable year attributable to those sales and exchanges. The
2surcharge imposed does not apply if:
3        (1) the medical cannabis cultivation center
4    registration, medical cannabis dispensary registration, or
5    the property of a registration is transferred as a result
6    of any of the following:
7            (A) bankruptcy, a receivership, or a debt
8        adjustment initiated by or against the initial
9        registration or the substantial owners of the initial
10        registration;
11            (B) cancellation, revocation, or termination of
12        any registration by the Illinois Department of Public
13        Health;
14            (C) a determination by the Illinois Department of
15        Public Health that transfer of the registration is in
16        the best interests of Illinois qualifying patients as
17        defined by the Compassionate Use of Medical Cannabis
18        Pilot Program Act;
19            (D) the death of an owner of the equity interest in
20        a registrant;
21            (E) the acquisition of a controlling interest in
22        the stock or substantially all of the assets of a
23        publicly traded company;
24            (F) a transfer by a parent company to a wholly
25        owned subsidiary; or
26            (G) the transfer or sale to or by one person to

 

 

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1        another person where both persons were initial owners
2        of the registration when the registration was issued;
3        or
4        (2) the cannabis cultivation center registration,
5    medical cannabis dispensary registration, or the
6    controlling interest in a registrant's property is
7    transferred in a transaction to lineal descendants in which
8    no gain or loss is recognized or as a result of a
9    transaction in accordance with Section 351 of the Internal
10    Revenue Code in which no gain or loss is recognized.
11(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
12eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
13eff. 7-16-14.)
 
14    Section 35. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
 
16    (70 ILCS 1825/5.1)  (from Ch. 19, par. 255.1)
17    Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino
23licensed under the Illinois Riverboat Gambling Act. The General
24Assembly declares that the powers to regulate the operation,

 

 

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1conduct, and navigation of riverboat gambling casinos and to
2license, tax, and levy assessments upon riverboat gambling
3casinos are exclusive powers of the State of Illinois and the
4Illinois Gaming Board as provided in the Illinois Riverboat
5Gambling Act.
6(Source: P.A. 87-1175.)
 
7    Section 40. The Consumer Installment Loan Act is amended by
8changing Section 12.5 as follows:
 
9    (205 ILCS 670/12.5)
10    Sec. 12.5. Limited purpose branch.
11    (a) Upon the written approval of the Director, a licensee
12may maintain a limited purpose branch for the sole purpose of
13making loans as permitted by this Act. A limited purpose branch
14may include an automatic loan machine. No other activity shall
15be conducted at the site, including but not limited to,
16accepting payments, servicing the accounts, or collections.
17    (b) The licensee must submit an application for a limited
18purpose branch to the Director on forms prescribed by the
19Director with an application fee of $300. The approval for the
20limited purpose branch must be renewed concurrently with the
21renewal of the licensee's license along with a renewal fee of
22$300 for the limited purpose branch.
23    (c) The books, accounts, records, and files of the limited
24purpose branch's transactions shall be maintained at the

 

 

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1licensee's licensed location. The licensee shall notify the
2Director of the licensed location at which the books, accounts,
3records, and files shall be maintained.
4    (d) The licensee shall prominently display at the limited
5purpose branch the address and telephone number of the
6licensee's licensed location.
7    (e) No other business shall be conducted at the site of the
8limited purpose branch unless authorized by the Director.
9    (f) The Director shall make and enforce reasonable rules
10for the conduct of a limited purpose branch.
11    (g) A limited purpose branch may not be located within
121,000 feet of a facility operated by an inter-track wagering
13licensee or an organization licensee subject to the Illinois
14Horse Racing Act of 1975, on a riverboat or in a casino subject
15to the Illinois Riverboat Gambling Act, or within 1,000 feet of
16the location at which the riverboat docks or within 1,000 feet
17of a casino.
18(Source: P.A. 90-437, eff. 1-1-98.)
 
19    Section 45. The Illinois Horse Racing Act of 1975 is
20amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 19, 20,
2121, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, 54, and
2254.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2334.3, 39.2, and 56 as follows:
 
24    (230 ILCS 5/1.2)

 

 

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1    Sec. 1.2. Legislative intent. This Act is intended to
2benefit the people of the State of Illinois by encouraging the
3breeding and production of race horses, assisting economic
4development and promoting Illinois tourism. The General
5Assembly finds and declares it to be the public policy of the
6State of Illinois to:
7    (a) support and enhance Illinois' horse racing industry,
8which is a significant component within the agribusiness
9industry;
10    (b) ensure that Illinois' horse racing industry remains
11competitive with neighboring states;
12    (c) stimulate growth within Illinois' horse racing
13industry, thereby encouraging new investment and development
14to produce additional tax revenues and to create additional
15jobs;
16    (d) promote the further growth of tourism;
17    (e) encourage the breeding of thoroughbred and
18standardbred horses in this State; and
19    (f) ensure that public confidence and trust in the
20credibility and integrity of racing operations and the
21regulatory process is maintained.
22(Source: P.A. 91-40, eff. 6-25-99.)
 
23    (230 ILCS 5/3.11)  (from Ch. 8, par. 37-3.11)
24    Sec. 3.11. "Organization Licensee" means any person
25receiving an organization license from the Board to conduct a

 

 

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1race meeting or meetings. With respect only to electronic
2gaming, "organization licensee" includes the authorization for
3an electronic gaming license under subsection (a) of Section 56
4of this Act.
5(Source: P.A. 79-1185.)
 
6    (230 ILCS 5/3.12)  (from Ch. 8, par. 37-3.12)
7    Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
8system of wagering" means a form of wagering on the outcome of
9horse races in which wagers are made in various denominations
10on a horse or horses and all wagers for each race are pooled
11and held by a licensee for distribution in a manner approved by
12the Board. "Pari-mutuel system of wagering" does not include
13wagering on historic races. Wagers may be placed via any method
14or at any location authorized under this Act.
15(Source: P.A. 96-762, eff. 8-25-09.)
 
16    (230 ILCS 5/3.31 new)
17    Sec. 3.31. Adjusted gross receipts. "Adjusted gross
18receipts" means the gross receipts less winnings paid to
19wagerers.
 
20    (230 ILCS 5/3.32 new)
21    Sec. 3.32. Gross receipts. "Gross receipts" means the total
22amount of money exchanged for the purchase of chips, tokens, or
23electronic cards by riverboat or casino patrons or electronic

 

 

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1gaming patrons.
 
2    (230 ILCS 5/3.33 new)
3    Sec. 3.33. Electronic gaming. "Electronic gaming" means
4slot machine gambling, video game of chance gambling, or
5gambling with electronic gambling games as defined in the
6Illinois Gambling Act or defined by the Illinois Gaming Board
7that is conducted at a race track pursuant to an electronic
8gaming license.
 
9    (230 ILCS 5/3.35 new)
10    Sec. 3.35. Electronic gaming license. "Electronic gaming
11license" means a license issued by the Illinois Gaming Board
12under Section 7.7 of the Illinois Gambling Act authorizing
13electronic gaming at an electronic gaming facility.
 
14    (230 ILCS 5/3.36 new)
15    Sec. 3.36. Electronic gaming facility. "Electronic gaming
16facility" means that portion of an organization licensee's race
17track facility at which electronic gaming is conducted.
 
18    (230 ILCS 5/6)  (from Ch. 8, par. 37-6)
19    Sec. 6. Restrictions on Board members.
20    (a) No person shall be appointed a member of the Board or
21continue to be a member of the Board if the person or any
22member of their immediate family is a member of the Board of

 

 

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1Directors, employee, or financially interested in any of the
2following: (i) any licensee or other person who has applied for
3racing dates to the Board, or the operations thereof including,
4but not limited to, concessions, data processing, track
5maintenance, track security, and pari-mutuel operations,
6located, scheduled, or doing business within the State of
7Illinois, (ii) any race horse competing at a meeting under the
8Board's jurisdiction, or (iii) any licensee under the Illinois
9Gambling Act. No person shall be appointed a member of the
10Board or continue to be a member of the Board who is (or any
11member of whose family is) a member of the Board of Directors
12of, or who is a person financially interested in, any licensee
13or other person who has applied for racing dates to the Board,
14or the operations thereof including, but not limited to,
15concessions, data processing, track maintenance, track
16security and pari-mutuel operations, located, scheduled or
17doing business within the State of Illinois, or in any race
18horse competing at a meeting under the Board's jurisdiction. No
19Board member shall hold any other public office for which he
20shall receive compensation other than necessary travel or other
21incidental expenses.
22    (b) No person shall be a member of the Board who is not of
23good moral character or who has been convicted of, or is under
24indictment for, a felony under the laws of Illinois or any
25other state, or the United States.
26    (c) No member of the Board or employee shall engage in any

 

 

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1political activity.
2    For the purposes of this subsection (c):
3    "Political activity" means any activity in support of or in
4connection with any campaign for State or local elective office
5or any political organization, but does not include activities
6(i) relating to the support or opposition of any executive,
7legislative, or administrative action (as those terms are
8defined in Section 2 of the Lobbyist Registration Act), (ii)
9relating to collective bargaining, or (iii) that are otherwise
10in furtherance of the person's official State duties or
11governmental and public service functions.
12    "Political organization" means a party, committee,
13association, fund, or other organization (whether or not
14incorporated) that is required to file a statement of
15organization with the State Board of Elections or county clerk
16under Section 9-3 of the Election Code, but only with regard to
17those activities that require filing with the State Board of
18Elections or county clerk.
19    (d) Board members and employees may not engage in
20communications or any activity that may cause or have the
21appearance of causing a conflict of interest. A conflict of
22interest exists if a situation influences or creates the
23appearance that it may influence judgment or performance of
24regulatory duties and responsibilities. This prohibition shall
25extend to any act identified by Board action that, in the
26judgment of the Board, could represent the potential for or the

 

 

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1appearance of a conflict of interest.
2    (e) Board members and employees may not accept any gift,
3gratuity, service, compensation, travel, lodging, or thing of
4value, with the exception of unsolicited items of an incidental
5nature, from any person, corporation, limited liability
6company, or entity doing business with the Board.
7    (f) A Board member or employee shall not use or attempt to
8use his or her official position to secure, or attempt to
9secure, any privilege, advantage, favor, or influence for
10himself or herself or others. No Board member or employee,
11within a period of one year immediately preceding nomination by
12the Governor or employment, shall have been employed by or
13received compensation or fees for services from a person or
14entity, or its parent or affiliate, that has engaged in
15business with the Board, a licensee under this Act, or a
16licensee under the Illinois Gambling Act. In addition, all
17Board members and employees are subject to the restrictions set
18forth in Section 5-45 of the State Officials and Employees
19Ethics Act.
20(Source: P.A. 89-16, eff. 5-30-95.)
 
21    (230 ILCS 5/9)  (from Ch. 8, par. 37-9)
22    Sec. 9. The Board shall have all powers necessary and
23proper to fully and effectively execute the provisions of this
24Act, including, but not limited to, the following:
25    (a) The Board is vested with jurisdiction and supervision

 

 

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1over all race meetings in this State, over all licensees doing
2business in this State, over all occupation licensees, and over
3all persons on the facilities of any licensee. Such
4jurisdiction shall include the power to issue licenses to the
5Illinois Department of Agriculture authorizing the pari-mutuel
6system of wagering on harness and Quarter Horse races held (1)
7at the Illinois State Fair in Sangamon County, and (2) at the
8DuQuoin State Fair in Perry County. The jurisdiction of the
9Board shall also include the power to issue licenses to county
10fairs which are eligible to receive funds pursuant to the
11Agricultural Fair Act, as now or hereafter amended, or their
12agents, authorizing the pari-mutuel system of wagering on horse
13races conducted at the county fairs receiving such licenses.
14Such licenses shall be governed by subsection (n) of this
15Section.
16    Upon application, the Board shall issue a license to the
17Illinois Department of Agriculture to conduct harness and
18Quarter Horse races at the Illinois State Fair and at the
19DuQuoin State Fairgrounds during the scheduled dates of each
20fair. The Board shall not require and the Department of
21Agriculture shall be exempt from the requirements of Sections
2215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
23(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
24and 25. The Board and the Department of Agriculture may extend
25any or all of these exemptions to any contractor or agent
26engaged by the Department of Agriculture to conduct its race

 

 

HB3564- 89 -LRB099 06481 MLM 31222 b

1meetings when the Board determines that this would best serve
2the public interest and the interest of horse racing.
3    Notwithstanding any provision of law to the contrary, it
4shall be lawful for any licensee to operate pari-mutuel
5wagering or contract with the Department of Agriculture to
6operate pari-mutuel wagering at the DuQuoin State Fairgrounds
7or for the Department to enter into contracts with a licensee,
8employ its owners, employees or agents and employ such other
9occupation licensees as the Department deems necessary in
10connection with race meetings and wagerings.
11    (b) The Board is vested with the full power to promulgate
12reasonable rules and regulations for the purpose of
13administering the provisions of this Act and to prescribe
14reasonable rules, regulations and conditions under which all
15horse race meetings or wagering in the State shall be
16conducted. Such reasonable rules and regulations are to provide
17for the prevention of practices detrimental to the public
18interest and to promote the best interests of horse racing and
19to impose penalties for violations thereof.
20    (c) The Board, and any person or persons to whom it
21delegates this power, is vested with the power to enter the
22facilities and other places of business of any licensee to
23determine whether there has been compliance with the provisions
24of this Act and its rules and regulations.
25    (d) The Board, and any person or persons to whom it
26delegates this power, is vested with the authority to

 

 

HB3564- 90 -LRB099 06481 MLM 31222 b

1investigate alleged violations of the provisions of this Act,
2its reasonable rules and regulations, orders and final
3decisions; the Board shall take appropriate disciplinary
4action against any licensee or occupation licensee for
5violation thereof or institute appropriate legal action for the
6enforcement thereof.
7    (e) The Board, and any person or persons to whom it
8delegates this power, may eject or exclude from any race
9meeting or the facilities of any licensee, or any part thereof,
10any occupation licensee or any other individual whose conduct
11or reputation is such that his presence on those facilities
12may, in the opinion of the Board, call into question the
13honesty and integrity of horse racing or wagering or interfere
14with the orderly conduct of horse racing or wagering; provided,
15however, that no person shall be excluded or ejected from the
16facilities of any licensee solely on the grounds of race,
17color, creed, national origin, ancestry, or sex. The power to
18eject or exclude an occupation licensee or other individual may
19be exercised for just cause by the licensee or the Board,
20subject to subsequent hearing by the Board as to the propriety
21of said exclusion.
22    (f) The Board is vested with the power to acquire,
23establish, maintain and operate (or provide by contract to
24maintain and operate) testing laboratories and related
25facilities, for the purpose of conducting saliva, blood, urine
26and other tests on the horses run or to be run in any horse race

 

 

HB3564- 91 -LRB099 06481 MLM 31222 b

1meeting, including races run at county fairs, and to purchase
2all equipment and supplies deemed necessary or desirable in
3connection with any such testing laboratories and related
4facilities and all such tests.
5    (g) The Board may require that the records, including
6financial or other statements of any licensee or any person
7affiliated with the licensee who is involved directly or
8indirectly in the activities of any licensee as regulated under
9this Act to the extent that those financial or other statements
10relate to such activities be kept in such manner as prescribed
11by the Board, and that Board employees shall have access to
12those records during reasonable business hours. Within 120 days
13of the end of its fiscal year, each licensee shall transmit to
14the Board an audit of the financial transactions and condition
15of the licensee's total operations. All audits shall be
16conducted by certified public accountants. Each certified
17public accountant must be registered in the State of Illinois
18under the Illinois Public Accounting Act. The compensation for
19each certified public accountant shall be paid directly by the
20licensee to the certified public accountant. A licensee shall
21also submit any other financial or related information the
22Board deems necessary to effectively administer this Act and
23all rules, regulations, and final decisions promulgated under
24this Act.
25    (h) The Board shall name and appoint in the manner provided
26by the rules and regulations of the Board: an Executive

 

 

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1Director; a State director of mutuels; State veterinarians and
2representatives to take saliva, blood, urine and other tests on
3horses; licensing personnel; revenue inspectors; and State
4seasonal employees (excluding admission ticket sellers and
5mutuel clerks). All of those named and appointed as provided in
6this subsection shall serve during the pleasure of the Board;
7their compensation shall be determined by the Board and be paid
8in the same manner as other employees of the Board under this
9Act.
10    (i) The Board shall require that there shall be 3 stewards
11at each horse race meeting, at least 2 of whom shall be named
12and appointed by the Board. Stewards appointed or approved by
13the Board, while performing duties required by this Act or by
14the Board, shall be entitled to the same rights and immunities
15as granted to Board members and Board employees in Section 10
16of this Act.
17    (j) The Board may discharge any Board employee who fails or
18refuses for any reason to comply with the rules and regulations
19of the Board, or who, in the opinion of the Board, is guilty of
20fraud, dishonesty or who is proven to be incompetent. The Board
21shall have no right or power to determine who shall be
22officers, directors or employees of any licensee, or their
23salaries except the Board may, by rule, require that all or any
24officials or employees in charge of or whose duties relate to
25the actual running of races be approved by the Board.
26    (k) The Board is vested with the power to appoint delegates

 

 

HB3564- 93 -LRB099 06481 MLM 31222 b

1to execute any of the powers granted to it under this Section
2for the purpose of administering this Act and any rules or
3regulations promulgated in accordance with this Act.
4    (l) The Board is vested with the power to impose civil
5penalties of up to $5,000 against an individual and up to
6$10,000 against a licensee for each violation of any provision
7of this Act, any rules adopted by the Board, any order of the
8Board or any other action which, in the Board's discretion, is
9a detriment or impediment to horse racing or wagering.
10Beginning on the date when any organization licensee begins
11conducting electronic gaming pursuant to an electronic gaming
12license issued under the Illinois Gambling Act, the power
13granted to the Board pursuant to this subsection (l) shall
14authorize the Board to impose penalties of up to $10,000
15against an individual and up to $25,000 against a licensee. All
16such civil penalties shall be deposited into the Horse Racing
17Fund.
18    (m) The Board is vested with the power to prescribe a form
19to be used by licensees as an application for employment for
20employees of each licensee.
21    (n) The Board shall have the power to issue a license to
22any county fair, or its agent, authorizing the conduct of the
23pari-mutuel system of wagering. The Board is vested with the
24full power to promulgate reasonable rules, regulations and
25conditions under which all horse race meetings licensed
26pursuant to this subsection shall be held and conducted,

 

 

HB3564- 94 -LRB099 06481 MLM 31222 b

1including rules, regulations and conditions for the conduct of
2the pari-mutuel system of wagering. The rules, regulations and
3conditions shall provide for the prevention of practices
4detrimental to the public interest and for the best interests
5of horse racing, and shall prescribe penalties for violations
6thereof. Any authority granted the Board under this Act shall
7extend to its jurisdiction and supervision over county fairs,
8or their agents, licensed pursuant to this subsection. However,
9the Board may waive any provision of this Act or its rules or
10regulations which would otherwise apply to such county fairs or
11their agents.
12    (o) Whenever the Board is authorized or required by law to
13consider some aspect of criminal history record information for
14the purpose of carrying out its statutory powers and
15responsibilities, then, upon request and payment of fees in
16conformance with the requirements of Section 2605-400 of the
17Department of State Police Law (20 ILCS 2605/2605-400), the
18Department of State Police is authorized to furnish, pursuant
19to positive identification, such information contained in
20State files as is necessary to fulfill the request.
21    (p) To insure the convenience, comfort, and wagering
22accessibility of race track patrons, to provide for the
23maximization of State revenue, and to generate increases in
24purse allotments to the horsemen, the Board shall require any
25licensee to staff the pari-mutuel department with adequate
26personnel.

 

 

HB3564- 95 -LRB099 06481 MLM 31222 b

1(Source: P.A. 97-1060, eff. 8-24-12.)
 
2    (230 ILCS 5/15)  (from Ch. 8, par. 37-15)
3    Sec. 15. (a) The Board shall, in its discretion, issue
4occupation licenses to horse owners, trainers, harness
5drivers, jockeys, agents, apprentices, grooms, stable foremen,
6exercise persons, veterinarians, valets, blacksmiths,
7concessionaires and others designated by the Board whose work,
8in whole or in part, is conducted upon facilities within the
9State. Such occupation licenses will be obtained prior to the
10persons engaging in their vocation upon such facilities. The
11Board shall not license pari-mutuel clerks, parking
12attendants, security guards and employees of concessionaires.
13No occupation license shall be required of any person who works
14at facilities within this State as a pari-mutuel clerk, parking
15attendant, security guard or as an employee of a
16concessionaire. Concessionaires of the Illinois State Fair and
17DuQuoin State Fair and employees of the Illinois Department of
18Agriculture shall not be required to obtain an occupation
19license by the Board.
20    (b) Each application for an occupation license shall be on
21forms prescribed by the Board. Such license, when issued, shall
22be for the period ending December 31 of each year, except that
23the Board in its discretion may grant 3-year licenses. The
24application shall be accompanied by a fee of not more than $25
25per year or, in the case of 3-year occupation license

 

 

HB3564- 96 -LRB099 06481 MLM 31222 b

1applications, a fee of not more than $60. Each applicant shall
2set forth in the application his full name and address, and if
3he had been issued prior occupation licenses or has been
4licensed in any other state under any other name, such name,
5his age, whether or not a permit or license issued to him in
6any other state has been suspended or revoked and if so whether
7such suspension or revocation is in effect at the time of the
8application, and such other information as the Board may
9require. Fees for registration of stable names shall not exceed
10$50.00. Beginning on the date when any organization licensee
11begins conducting electronic gaming pursuant to an electronic
12gaming license issued under the Illinois Gambling Act, the fee
13for registration of stable names shall not exceed $150, and the
14application fee for an occupation license shall not exceed $75,
15per year or, in the case of a 3-year occupation license
16application, the fee shall not exceed $180.
17    (c) The Board may in its discretion refuse an occupation
18license to any person:
19        (1) who has been convicted of a crime;
20        (2) who is unqualified to perform the duties required
21    of such applicant;
22        (3) who fails to disclose or states falsely any
23    information called for in the application;
24        (4) who has been found guilty of a violation of this
25    Act or of the rules and regulations of the Board; or
26        (5) whose license or permit has been suspended, revoked

 

 

HB3564- 97 -LRB099 06481 MLM 31222 b

1    or denied for just cause in any other state.
2    (d) The Board may suspend or revoke any occupation license:
3        (1) for violation of any of the provisions of this Act;
4    or
5        (2) for violation of any of the rules or regulations of
6    the Board; or
7        (3) for any cause which, if known to the Board, would
8    have justified the Board in refusing to issue such
9    occupation license; or
10        (4) for any other just cause.
11    (e)   Each applicant shall submit his or her fingerprints
12to the Department of State Police in the form and manner
13prescribed by the Department of State Police. These
14fingerprints shall be checked against the fingerprint records
15now and hereafter filed in the Department of State Police and
16Federal Bureau of Investigation criminal history records
17databases. The Department of State Police shall charge a fee
18for conducting the criminal history records check, which shall
19be deposited in the State Police Services Fund and shall not
20exceed the actual cost of the records check. The Department of
21State Police shall furnish, pursuant to positive
22identification, records of conviction to the Board. Each
23applicant for licensure shall submit with his occupation
24license application, on forms provided by the Board, 2 sets of
25his fingerprints. All such applicants shall appear in person at
26the location designated by the Board for the purpose of

 

 

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1submitting such sets of fingerprints; however, with the prior
2approval of a State steward, an applicant may have such sets of
3fingerprints taken by an official law enforcement agency and
4submitted to the Board.
5    (f) The Board may, in its discretion, issue an occupation
6license without submission of fingerprints if an applicant has
7been duly licensed in another recognized racing jurisdiction
8after submitting fingerprints that were subjected to a Federal
9Bureau of Investigation criminal history background check in
10that jurisdiction.
11    (g) Beginning on the date when any organization licensee
12begins conducting electronic gambling pursuant to an
13electronic gaming license issued under the Illinois Gambling
14Act, the Board may charge each applicant a reasonable
15non-refundable fee to defray the costs associated with the
16background investigation conducted by the Board. This fee shall
17be exclusive of any other fee or fees charged in connection
18with an application for and, if applicable, the issuance of, an
19electronic gaming license. If the costs of the investigation
20exceed the amount of the fee charged, the Board shall
21immediately notify the applicant of the additional amount owed,
22payment of which must be submitted to the Board within 7 days
23after such notification. All information, records, interviews,
24reports, statements, memoranda, or other data supplied to or
25used by the Board in the course of its review or investigation
26of an applicant for a license or renewal under this Act shall

 

 

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1be privileged, strictly confidential, and shall be used only
2for the purpose of evaluating an applicant for a license or a
3renewal. Such information, records, interviews, reports,
4statements, memoranda, or other data shall not be admissible as
5evidence, nor discoverable, in any action of any kind in any
6court or before any tribunal, board, agency, or person, except
7for any action deemed necessary by the Board.
8(Source: P.A. 93-418, eff. 1-1-04.)
 
9    (230 ILCS 5/19)  (from Ch. 8, par. 37-19)
10    Sec. 19. (a) No organization license may be granted to
11conduct a horse race meeting:
12        (1) except as provided in subsection (c) of Section 21
13    of this Act, to any person at any place within 35 miles of
14    any other place licensed by the Board to hold a race
15    meeting on the same date during the same hours, the mileage
16    measurement used in this subsection (a) shall be certified
17    to the Board by the Bureau of Systems and Services in the
18    Illinois Department of Transportation as the most commonly
19    used public way of vehicular travel;
20        (2) to any person in default in the payment of any
21    obligation or debt due the State under this Act, provided
22    no applicant shall be deemed in default in the payment of
23    any obligation or debt due to the State under this Act as
24    long as there is pending a hearing of any kind relevant to
25    such matter;

 

 

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1        (3) to any person who has been convicted of the
2    violation of any law of the United States or any State law
3    which provided as all or part of its penalty imprisonment
4    in any penal institution; to any person against whom there
5    is pending a Federal or State criminal charge; to any
6    person who is or has been connected with or engaged in the
7    operation of any illegal business; to any person who does
8    not enjoy a general reputation in his community of being an
9    honest, upright, law-abiding person; provided that none of
10    the matters set forth in this subparagraph (3) shall make
11    any person ineligible to be granted an organization license
12    if the Board determines, based on circumstances of any such
13    case, that the granting of a license would not be
14    detrimental to the interests of horse racing and of the
15    public;
16        (4) to any person who does not at the time of
17    application for the organization license own or have a
18    contract or lease for the possession of a finished race
19    track suitable for the type of racing intended to be held
20    by the applicant and for the accommodation of the public.
21    (b) (Blank) Horse racing on Sunday shall be prohibited
22unless authorized by ordinance or referendum of the
23municipality in which a race track or any of its appurtenances
24or facilities are located, or utilized.
25    (c) If any person is ineligible to receive an organization
26license because of any of the matters set forth in subsection

 

 

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1(a) (2) or subsection (a) (3) of this Section, any other or
2separate person that either (i) controls, directly or
3indirectly, such ineligible person or (ii) is controlled,
4directly or indirectly, by such ineligible person or by a
5person which controls, directly or indirectly, such ineligible
6person shall also be ineligible.
7(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
8    (230 ILCS 5/20)  (from Ch. 8, par. 37-20)
9    Sec. 20. (a) Any person desiring to conduct a horse race
10meeting may apply to the Board for an organization license. The
11application shall be made on a form prescribed and furnished by
12the Board. The application shall specify:
13        (1) the dates on which it intends to conduct the horse
14    race meeting, which dates shall be provided under Section
15    21;
16        (2) the hours of each racing day between which it
17    intends to hold or conduct horse racing at such meeting;
18        (3) the location where it proposes to conduct the
19    meeting; and
20        (4) any other information the Board may reasonably
21    require.
22    (b) A separate application for an organization license
23shall be filed for each horse race meeting which such person
24proposes to hold. Any such application, if made by an
25individual, 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 or a partnership, it shall be signed and verified
5under oath by at least 2 of such individuals or members of such
6partnership as the case may be. If made by an association, a
7corporation, a corporate trustee, a limited liability company,
8or any other entity, it shall be signed by an authorized
9officer, a partner, a member, or a manager, as the case may be,
10of the entity the president and attested by the secretary or
11assistant secretary under the seal of such association, trust
12or corporation if it has a seal, and shall also be verified
13under oath by one of the signing officers.
14    (c) The application shall specify:
15        (1) the name of the persons, association, trust, or
16    corporation making such application; and
17        (2) the principal post office address of the applicant;
18        (3) if the applicant is a trustee, the names and
19    addresses of the beneficiaries; if the applicant is a
20    corporation, the names and post office addresses of all
21    officers, stockholders and directors; or if such
22    stockholders hold stock as a nominee or fiduciary, the
23    names and post office addresses of the parties these
24    persons, partnerships, corporations, or trusts who are the
25    beneficial owners thereof or who are beneficially
26    interested therein; and if the applicant is a partnership,

 

 

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1    the names and post office addresses of all partners,
2    general or limited; if the applicant is a limited liability
3    company, the names and addresses of the manager and
4    members; and if the applicant is any other entity, the
5    names and addresses of all officers or other authorized
6    persons of the entity corporation, the name of the state of
7    its incorporation shall be specified.
8    (d) The applicant shall execute and file with the Board a
9good faith affirmative action plan to recruit, train, and
10upgrade minorities in all classifications within the
11association.
12    (e) With such application there shall be delivered to the
13Board a certified check or bank draft payable to the order of
14the Board for an amount equal to $1,000. All applications for
15the issuance of an organization license shall be filed with the
16Board before August 1 of the year prior to the year for which
17application is made and shall be acted upon by the Board at a
18meeting to be held on such date as shall be fixed by the Board
19during the last 15 days of September of such prior year. At
20such meeting, the Board shall announce the award of the racing
21meets, live racing schedule, and designation of host track to
22the applicants and its approval or disapproval of each
23application. No announcement shall be considered binding until
24a formal order is executed by the Board, which shall be
25executed no later than October 15 of that prior year. Absent
26the agreement of the affected organization licensees, the Board

 

 

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1shall not grant overlapping race meetings to 2 or more tracks
2that are within 100 miles of each other to conduct the
3thoroughbred racing.
4    (e-1) In awarding standardbred racing dates for calendar
5year 2016 and thereafter, the Board shall award at least 310
6racing days, and each organization licensee shall average at
7least 12 races for each racing day awarded. The Board shall
8have the discretion to allocate those racing days among
9organization licensees requesting standardbred racing dates.
10Once awarded by the Board, organization licensees awarded
11standardbred racing dates shall run at least 3,500 races in
12total during that calendar year. Standardbred racing conducted
13in Sangamon County shall not be considered races under this
14subsection (e-1).
15    (e-2) In awarding racing dates for calendar year 2016 and
16thereafter, the Board shall award thoroughbred racing days to
17Cook County organization licensees commensurate with these
18organization licensees' requirement that they shall run at
19least 1,950 thoroughbred races in the aggregate, so long as 2
20organization licensees are conducting electronic gaming
21operations. Additionally, if the organization licensees that
22run thoroughbred races in Cook County are conducting electronic
23gaming operations, the Board shall increase the number of
24thoroughbred races to be run in Cook County in the aggregate to
25at least the following:
26        (i) 2,050 races in any year following the most recent

 

 

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1    preceding complete calendar year when the combined
2    adjusted gross receipts of the electronic gaming licensees
3    operating at Cook County race tracks total in excess of
4    $200,000,000, but do not exceed $250,000,000;
5        (ii) 2,125 races in any year following the most recent
6    preceding complete calendar year when the combined
7    adjusted gross receipts of the electronic gaming licensees
8    operating at Cook County race tracks total in excess of
9    $250,000,000, but do not exceed $300,000,000;
10        (iii) 2,200 races in any year following the most recent
11    preceding complete calendar year when the combined
12    adjusted gross receipts of the electronic gaming licensees
13    operating at Cook County race tracks total in excess of
14    $300,000,000, but do not exceed $350,000,000;
15        (iv) 2,300 races in any year following the most recent
16    preceding complete calendar year when the combined
17    adjusted gross receipts of the electronic gaming licensees
18    operating at Cook County race tracks total in excess of
19    $350,000,000, but do not exceed $400,000,000;
20        (v) 2,375 races in any year following the most recent
21    preceding complete calendar year when the combined
22    adjusted gross receipts of the electronic gaming licensees
23    operating at Cook County race tracks total in excess of
24    $400,000,000, but do not exceed $450,000,000;
25        (vi) 2,450 races in any year following the most recent
26    preceding complete calendar year when the combined

 

 

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1    adjusted gross receipts of the electronic gaming licensees
2    operating at Cook County race tracks total in excess of
3    $450,000,000, but do not exceed $500,000,000;
4        (vii) 2,550 races in any year following the most recent
5    preceding complete calendar year when the combined
6    adjusted gross receipts of the electronic gaming licensees
7    operating at Cook County race tracks exceeds $500,000,000.
8    In awarding racing dates under this subsection (e-2), the
9Board shall have the discretion to allocate those thoroughbred
10racing dates among these Cook County organization licensees.
11    (e-3) Notwithstanding the provisions of Section 7.7 of the
12Illinois Gambling Act or any provision of this Act other than
13subsection (e-4), for each calendar year for which an
14electronic gaming licensee requests racing dates for a specific
15horse breed which results in a number of live races for that
16specific breed under its organization license that is less than
17the total number of live races for that specific breed which it
18conducted in 2011 for standardbred racing and in 2009 for
19thoroughbred racing at its race track facility, the electronic
20gaming licensee may not conduct electronic gaming for the
21calendar year of such requested live races.
22    (e-4) The Board shall ensure that each organization
23licensee shall individually run a sufficient number of races
24per year to qualify for an electronic gaming license under this
25Act. The General Assembly finds that the minimum live racing
26guarantees contained in subsections (e-1) and (e-2) are in the

 

 

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1best interest of the sport of horse racing, and that such
2guarantees may only be reduced in the limited circumstances
3described in this subsection. The Board may decrease the number
4of racing days without affecting an organization licensee's
5ability to conduct electronic gaming 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. 97-333, eff. 8-12-11.)
 
8    (230 ILCS 5/21)  (from Ch. 8, par. 37-21)
9    Sec. 21. (a) Applications for organization licenses must be
10filed with the Board at a time and place prescribed by the
11rules and regulations of the Board. The Board shall examine the
12applications within 21 days after the date allowed for filing
13with respect to their conformity with this Act and such rules
14and regulations as may be prescribed by the Board. If any
15application does not comply with this Act or the rules and
16regulations prescribed by the Board, such application may be
17rejected and an organization license refused to the applicant,
18or the Board may, within 21 days of the receipt of such
19application, advise the applicant of the deficiencies of the
20application under the Act or the rules and regulations of the
21Board, and require the submittal of an amended application
22within a reasonable time determined by the Board; and upon
23submittal of the amended application by the applicant, the
24Board may consider the application consistent with the process
25described in subsection (e-5) of Section 20 of this Act. If it

 

 

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

 

 

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

 

 

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1    (i) Each such organization licensee may provide that at
2least one race per day may be devoted to the racing of quarter
3horses, appaloosas, arabians, or paints.
4    (j) In acting on applications for organization licenses,
5the Board shall give weight to an organization license which
6has implemented a good faith affirmative action effort to
7recruit, train and upgrade minorities in all classifications
8within the organization license.
9(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
 
10    (230 ILCS 5/24)  (from Ch. 8, par. 37-24)
11    Sec. 24. (a) No license shall be issued to or held by an
12organization licensee unless all of its officers, directors,
13and holders of ownership interests of at least 5% are first
14approved by the Board. The Board shall not give approval of an
15organization license application to any person who has been
16convicted of or is under an indictment for a crime of moral
17turpitude or has violated any provision of the racing law of
18this State or any rules of the Board.
19    (b) An organization licensee must notify the Board within
2010 days of any change in the holders of a direct or indirect
21interest in the ownership of the organization licensee. The
22Board may, after hearing, revoke the organization license of
23any person who registers on its books or knowingly permits a
24direct or indirect interest in the ownership of that person
25without notifying the Board of the name of the holder in

 

 

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1interest within this period.
2    (c) In addition to the provisions of subsection (a) of this
3Section, no person shall be granted an organization license if
4any public official of the State or member of his or her family
5holds any ownership or financial interest, directly or
6indirectly, in the person.
7    (d) No person which has been granted an organization
8license to hold a race meeting shall give to any public
9official or member of his family, directly or indirectly, for
10or without consideration, any interest in the person. The Board
11shall, after hearing, revoke the organization license granted
12to a person which has violated this subsection.
13    (e) (Blank).
14    (f) No organization licensee or concessionaire or officer,
15director or holder or controller of 5% or more legal or
16beneficial interest in any organization licensee or concession
17shall make any sort of gift or contribution that is prohibited
18under Article 10 of the State Officials and Employees Ethics
19Act of any kind or pay or give any money or other thing of value
20to any person who is a public official, or a candidate or
21nominee for public office if that payment or gift is prohibited
22under Article 10 of the State Officials and Employees Ethics
23Act.
24(Source: P.A. 89-16, eff. 5-30-95.)
 
25    (230 ILCS 5/25)  (from Ch. 8, par. 37-25)

 

 

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1    Sec. 25. Admission charge; bond; fine.
2    (a) There shall be paid to the Board at such time or times
3as it shall prescribe, the sum of fifteen cents (15) for each
4person entering the grounds or enclosure of each organization
5licensee and inter-track wagering licensee upon a ticket of
6admission except as provided in subsection (g) of Section 27 of
7this Act. If tickets are issued for more than one day then the
8sum of fifteen cents (15) shall be paid for each person using
9such ticket on each day that the same shall be used. Provided,
10however, that no charge shall be made on tickets of admission
11issued to and in the name of directors, officers, agents or
12employees of the organization licensee, or inter-track
13wagering licensee, or to owners, trainers, jockeys, drivers and
14their employees or to any person or persons entering the
15grounds or enclosure for the transaction of business in
16connection with such race meeting. The organization licensee or
17inter-track wagering licensee may, if it desires, collect such
18amount from each ticket holder in addition to the amount or
19amounts charged for such ticket of admission. Beginning on the
20date when any organization licensee begins conducting
21electronic gaming pursuant to an electronic gaming license
22issued under the Illinois Gambling Act, the admission charge
23imposed by this subsection (a) shall be 40 cents for each
24person entering the grounds or enclosure of each organization
25licensee and inter-track wagering licensee upon a ticket of
26admission, and if such tickets are issued for more than one

 

 

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1day, 40 cents shall be paid for each person using such ticket
2on each day that the same shall be used.
3    (b) Accurate records and books shall at all times be kept
4and maintained by the organization licensees and inter-track
5wagering licensees showing the admission tickets issued and
6used on each racing day and the attendance thereat of each
7horse racing meeting. The Board or its duly authorized
8representative or representatives shall at all reasonable
9times have access to the admission records of any organization
10licensee and inter-track wagering licensee for the purpose of
11examining and checking the same and ascertaining whether or not
12the proper amount has been or is being paid the State of
13Illinois as herein provided. The Board shall also require,
14before issuing any license, that the licensee shall execute and
15deliver to it a bond, payable to the State of Illinois, in such
16sum as it shall determine, not, however, in excess of fifty
17thousand dollars ($50,000), with a surety or sureties to be
18approved by it, conditioned for the payment of all sums due and
19payable or collected by it under this Section upon admission
20fees received for any particular racing meetings. The Board may
21also from time to time require sworn statements of the number
22or numbers of such admissions and may prescribe blanks upon
23which such reports shall be made. Any organization licensee or
24inter-track wagering licensee failing or refusing to pay the
25amount found to be due as herein provided, shall be deemed
26guilty of a business offense and upon conviction shall be

 

 

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1punished by a fine of not more than five thousand dollars
2($5,000) in addition to the amount due from such organization
3licensee or inter-track wagering licensee as herein provided.
4All fines paid into court by an organization licensee or
5inter-track wagering licensee found guilty of violating this
6Section shall be transmitted and paid over by the clerk of the
7court to the Board. Beginning on the date when any organization
8licensee begins conducting electronic gaming pursuant to an
9electronic gaming license issued under the Illinois Gambling
10Act, any fine imposed pursuant to this subsection (b) shall not
11exceed $10,000.
12(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
 
13    (230 ILCS 5/26)  (from Ch. 8, par. 37-26)
14    Sec. 26. Wagering.
15    (a) Any licensee may conduct and supervise the pari-mutuel
16system of wagering, as defined in Section 3.12 of this Act, on
17horse races conducted by an Illinois organization licensee or
18conducted at a racetrack located in another state or country
19and televised in Illinois in accordance with subsection (g) of
20Section 26 of this Act. Subject to the prior consent of the
21Board, licensees may supplement any pari-mutuel pool in order
22to guarantee a minimum distribution. Such pari-mutuel method of
23wagering shall not, under any circumstances if conducted under
24the provisions of this Act, be held or construed to be
25unlawful, other statutes of this State to the contrary

 

 

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

 

 

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

 

 

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

 

 

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1with its gross or net wagering pools or with wagering pools
2established by other states.
3    (g) A host track may accept interstate simulcast wagers on
4horse races conducted in other states or countries and shall
5control the number of signals and types of breeds of racing in
6its simulcast program, subject to the disapproval of the Board.
7The Board may prohibit a simulcast program only if it finds
8that the simulcast program is clearly adverse to the integrity
9of racing. The host track simulcast program shall include the
10signal of live racing of all organization licensees. All
11non-host licensees and advance deposit wagering licensees
12shall carry the signal of and accept wagers on live racing of
13all organization licensees. Advance deposit wagering licensees
14shall not be permitted to accept out-of-state wagers on any
15Illinois signal provided pursuant to this Section without the
16approval and consent of the organization licensee providing the
17signal. For one year after the effective date of this
18amendatory Act of the 98th General Assembly, non-host licensees
19may carry the host track simulcast program and shall accept
20wagers on all races included as part of the simulcast program
21of horse races conducted at race tracks located within North
22America upon which wagering is permitted. For a period of one
23year after the effective date of this amendatory Act of the
2498th General Assembly, on horse races conducted at race tracks
25located outside of North America, non-host licensees may accept
26wagers on all races included as part of the simulcast program

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB3564- 129 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 130 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 131 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 132 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 133 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 134 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 135 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 136 -LRB099 06481 MLM 31222 b

1        discretion of the Department of Agriculture, with the
2        advice and assistance of the Illinois Thoroughbred
3        Breeders Fund Advisory Board. The moneys deposited
4        into the Illinois Colt Stakes Purse Distribution Fund
5        pursuant to this subparagraph (B) shall be deposited
6        within 2 weeks after the day they were generated, shall
7        be in addition to and not in lieu of any other moneys
8        paid to thoroughbred purses under this Act, and shall
9        not be commingled with other moneys deposited into that
10        Fund.
11        (7.3) If no live standardbred racing is conducted at a
12    racetrack located in Madison County in calendar year 2000
13    or 2001, an organization licensee who is licensed to
14    conduct horse racing at that racetrack shall, before
15    January 1, 2002, pay all moneys derived from simulcast
16    wagering and inter-track wagering in calendar years 2000
17    and 2001 and paid into the licensee's standardbred purse
18    account as follows:
19            (A) Eighty percent to that licensee's thoroughbred
20        purse account to be used for thoroughbred purses; and
21            (B) Twenty percent to the Illinois Colt Stakes
22        Purse Distribution Fund.
23        Failure to make the payment to the Illinois Colt Stakes
24    Purse Distribution Fund before January 1, 2002 shall result
25    in the immediate revocation of the licensee's organization
26    license, inter-track wagering license, and inter-track

 

 

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

 

 

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

 

 

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

 

 

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1    anticipated to be available in the purse account of the
2    race track affiliated with the wagering facility for purses
3    during the succeeding year; and (iii) the need to ensure
4    reasonable purse levels during the payment period. The
5    Board's certification shall be provided no later than
6    January 31 of the succeeding year. In the event a wagering
7    facility entitled to a payment under this paragraph (13) is
8    affiliated with a race track that maintains purse accounts
9    for both standardbred and thoroughbred racing, the amount
10    to be paid to the wagering facility shall be divided
11    between each purse account pro rata, based on the amount of
12    Illinois handle on Illinois standardbred and thoroughbred
13    racing respectively at the wagering facility during the
14    previous calendar year. Annually, the General Assembly
15    shall appropriate sufficient funds from the General
16    Revenue Fund to the Department of Agriculture for payment
17    into the thoroughbred and standardbred horse racing purse
18    accounts at Illinois pari-mutuel tracks. The amount paid to
19    each purse account shall be the amount certified by the
20    Illinois Racing Board in January to be transferred from
21    each account to each eligible racing facility in accordance
22    with the provisions of this Section. Beginning in the
23    calendar year in which an organization licensee that is
24    eligible to receive payment under this paragraph (13)
25    begins to receive funds from electronic gaming, the amount
26    of the payment due to all wagering facilities licensed

 

 

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1    under that organization licensee under this paragraph (13)
2    shall be the amount certified by the Board in January of
3    that year. An organization licensee and its related
4    wagering facilities shall no longer be able to receive
5    payments under this paragraph (13) beginning in the year
6    subsequent to the first year in which the organization
7    licensee begins to receive funds from electronic gaming.
8    (h) The Board may approve and license the conduct of
9inter-track wagering and simulcast wagering by inter-track
10wagering licensees and inter-track wagering location licensees
11subject to the following terms and conditions:
12        (1) Any person licensed to conduct a race meeting (i)
13    at a track where 60 or more days of racing were conducted
14    during the immediately preceding calendar year or where
15    over the 5 immediately preceding calendar years an average
16    of 30 or more days of racing were conducted annually may be
17    issued an inter-track wagering license; (ii) at a track
18    located in a county that is bounded by the Mississippi
19    River, which has a population of less than 150,000
20    according to the 1990 decennial census, and an average of
21    at least 60 days of racing per year between 1985 and 1993
22    may be issued an inter-track wagering license; or (iii) at
23    a track located in Madison County that conducted at least
24    100 days of live racing during the immediately preceding
25    calendar year may be issued an inter-track wagering
26    license, unless a lesser schedule of live racing is the

 

 

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1    result of (A) weather, unsafe track conditions, or other
2    acts of God; (B) an agreement between the organization
3    licensee and the associations representing the largest
4    number of owners, trainers, jockeys, or standardbred
5    drivers who race horses at that organization licensee's
6    racing meeting; or (C) a finding by the Board of
7    extraordinary circumstances and that it was in the best
8    interest of the public and the sport to conduct fewer than
9    100 days of live racing. Any such person having operating
10    control of the racing facility may also receive up to 6
11    inter-track wagering location licenses. In no event shall
12    more than 6 inter-track wagering locations be established
13    for each eligible race track, except that an eligible race
14    track located in a county that has a population of more
15    than 230,000 and that is bounded by the Mississippi River
16    may establish up to 7 inter-track wagering locations and an
17    eligible race track located in Cook County may establish up
18    to 8 inter-track wagering locations. An application for
19    said license shall be filed with the Board prior to such
20    dates as may be fixed by the Board. With an application for
21    an inter-track wagering location license there shall be
22    delivered to the Board a certified check or bank draft
23    payable to the order of the Board for an amount equal to
24    $500. The application shall be on forms prescribed and
25    furnished by the Board. The application shall comply with
26    all other rules, regulations and conditions imposed by the

 

 

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

 

 

HB3564- 144 -LRB099 06481 MLM 31222 b

1    simulcast wagering shall specify the person to whom it is
2    issued, the dates on which such wagering is permitted, and
3    the track or location where the wagering is to be
4    conducted.
5        (6) All wagering under such license is subject to this
6    Act and to the rules and regulations from time to time
7    prescribed by the Board, and every such license issued by
8    the Board shall contain a recital to that effect.
9        (7) An inter-track wagering licensee or inter-track
10    wagering location licensee may accept wagers at the track
11    or location where it is licensed, or as otherwise provided
12    under this Act.
13        (8) Inter-track wagering or simulcast wagering shall
14    not be conducted at any track less than 5 miles from a
15    track at which a racing meeting is in progress.
16        (8.1) Inter-track wagering location licensees who
17    derive their licenses from a particular organization
18    licensee shall conduct inter-track wagering and simulcast
19    wagering only at locations that are within 140 miles of
20    that race track where the particular organization licensee
21    is licensed to conduct racing. However, inter-track
22    wagering and simulcast wagering shall not be conducted by
23    those licensees at any location within 5 miles of any race
24    track at which a horse race meeting has been licensed in
25    the current year, unless the person having operating
26    control of such race track has given its written consent to

 

 

HB3564- 145 -LRB099 06481 MLM 31222 b

1    such inter-track wagering location licensees, which
2    consent must be filed with the Board at or prior to the
3    time application is made. In the case of any inter-track
4    wagering location licensee initially licensed after
5    December 31, 2013, inter-track wagering and simulcast
6    wagering shall not be conducted by those inter-track
7    wagering location licensees that are located outside the
8    City of Chicago at any location within 8 miles of any race
9    track at which a horse race meeting has been licensed in
10    the current year, unless the person having operating
11    control of such race track has given its written consent to
12    such inter-track wagering location licensees, which
13    consent must be filed with the Board at or prior to the
14    time application is made.
15        (8.2) Inter-track wagering or simulcast wagering shall
16    not be conducted by an inter-track wagering location
17    licensee at any location within 500 feet of an existing
18    church, an or existing elementary or secondary public
19    school, or an existing elementary or secondary private
20    school registered with or recognized by the State Board of
21    Education school, nor within 500 feet of the residences of
22    more than 50 registered voters without receiving written
23    permission from a majority of the registered voters at such
24    residences. Such written permission statements shall be
25    filed with the Board. The distance of 500 feet shall be
26    measured to the nearest part of any building used for

 

 

HB3564- 146 -LRB099 06481 MLM 31222 b

1    worship services, education programs, residential
2    purposes, or conducting inter-track wagering by an
3    inter-track wagering location licensee, and not to
4    property boundaries. However, inter-track wagering or
5    simulcast wagering may be conducted at a site within 500
6    feet of a church, school or residences of 50 or more
7    registered voters if such church, school or residences have
8    been erected or established, or such voters have been
9    registered, after the Board issues the original
10    inter-track wagering location license at the site in
11    question. Inter-track wagering location licensees may
12    conduct inter-track wagering and simulcast wagering only
13    in areas that are zoned for commercial or manufacturing
14    purposes or in areas for which a special use has been
15    approved by the local zoning authority. However, no license
16    to conduct inter-track wagering and simulcast wagering
17    shall be granted by the Board with respect to any
18    inter-track wagering location within the jurisdiction of
19    any local zoning authority which has, by ordinance or by
20    resolution, prohibited the establishment of an inter-track
21    wagering location within its jurisdiction. However,
22    inter-track wagering and simulcast wagering may be
23    conducted at a site if such ordinance or resolution is
24    enacted after the Board licenses the original inter-track
25    wagering location licensee for the site in question.
26        (9) (Blank).

 

 

HB3564- 147 -LRB099 06481 MLM 31222 b

1        (10) An inter-track wagering licensee or an
2    inter-track wagering location licensee may retain, subject
3    to the payment of the privilege taxes and the purses, an
4    amount not to exceed 17% of all money wagered. Each program
5    of racing conducted by each inter-track wagering licensee
6    or inter-track wagering location licensee shall be
7    considered a separate racing day for the purpose of
8    determining the daily handle and computing the privilege
9    tax or pari-mutuel tax on such daily handle as provided in
10    Section 27.
11        (10.1) Except as provided in subsection (g) of Section
12    27 of this Act, inter-track wagering location licensees
13    shall pay 1% of the pari-mutuel handle at each location to
14    the municipality in which such location is situated and 1%
15    of the pari-mutuel handle at each location to the county in
16    which such location is situated. In the event that an
17    inter-track wagering location licensee is situated in an
18    unincorporated area of a county, such licensee shall pay 2%
19    of the pari-mutuel handle from such location to such
20    county.
21        (10.2) Notwithstanding any other provision of this
22    Act, with respect to intertrack wagering at a race track
23    located in a county that has a population of more than
24    230,000 and that is bounded by the Mississippi River ("the
25    first race track"), or at a facility operated by an
26    inter-track wagering licensee or inter-track wagering

 

 

HB3564- 148 -LRB099 06481 MLM 31222 b

1    location licensee that derives its license from the
2    organization licensee that operates the first race track,
3    on races conducted at the first race track or on races
4    conducted at another Illinois race track and
5    simultaneously televised to the first race track or to a
6    facility operated by an inter-track wagering licensee or
7    inter-track wagering location licensee that derives its
8    license from the organization licensee that operates the
9    first race track, those moneys shall be allocated as
10    follows:
11            (A) That portion of all moneys wagered on
12        standardbred racing that is required under this Act to
13        be paid to purses shall be paid to purses for
14        standardbred races.
15            (B) That portion of all moneys wagered on
16        thoroughbred racing that is required under this Act to
17        be paid to purses shall be paid to purses for
18        thoroughbred races.
19        (11) (A) After payment of the privilege or pari-mutuel
20    tax, any other applicable taxes, and the costs and expenses
21    in connection with the gathering, transmission, and
22    dissemination of all data necessary to the conduct of
23    inter-track wagering, the remainder of the monies retained
24    under either Section 26 or Section 26.2 of this Act by the
25    inter-track wagering licensee on inter-track wagering
26    shall be allocated with 50% to be split between the 2

 

 

HB3564- 149 -LRB099 06481 MLM 31222 b

1    participating licensees and 50% to purses, except that an
2    intertrack wagering licensee that derives its license from
3    a track located in a county with a population in excess of
4    230,000 and that borders the Mississippi River shall not
5    divide any remaining retention with the Illinois
6    organization licensee that provides the race or races, and
7    an intertrack wagering licensee that accepts wagers on
8    races conducted by an organization licensee that conducts a
9    race meet in a county with a population in excess of
10    230,000 and that borders the Mississippi River shall not
11    divide any remaining retention with that organization
12    licensee.
13        (B) From the sums permitted to be retained pursuant to
14    this Act each inter-track wagering location licensee shall
15    pay (i) the privilege or pari-mutuel tax to the State; (ii)
16    4.75% of the pari-mutuel handle on intertrack wagering at
17    such location on races as purses, except that an intertrack
18    wagering location licensee that derives its license from a
19    track located in a county with a population in excess of
20    230,000 and that borders the Mississippi River shall retain
21    all purse moneys for its own purse account consistent with
22    distribution set forth in this subsection (h), and
23    intertrack wagering location licensees that accept wagers
24    on races conducted by an organization licensee located in a
25    county with a population in excess of 230,000 and that
26    borders the Mississippi River shall distribute all purse

 

 

HB3564- 150 -LRB099 06481 MLM 31222 b

1    moneys to purses at the operating host track; (iii) until
2    January 1, 2000, except as provided in subsection (g) of
3    Section 27 of this Act, 1% of the pari-mutuel handle
4    wagered on inter-track wagering and simulcast wagering at
5    each inter-track wagering location licensee facility to
6    the Horse Racing Tax Allocation Fund, provided that, to the
7    extent the total amount collected and distributed to the
8    Horse Racing Tax Allocation Fund under this subsection (h)
9    during any calendar year exceeds the amount collected and
10    distributed to the Horse Racing Tax Allocation Fund during
11    calendar year 1994, that excess amount shall be
12    redistributed (I) to all inter-track wagering location
13    licensees, based on each licensee's pro-rata share of the
14    total handle from inter-track wagering and simulcast
15    wagering for all inter-track wagering location licensees
16    during the calendar year in which this provision is
17    applicable; then (II) the amounts redistributed to each
18    inter-track wagering location licensee as described in
19    subpart (I) shall be further redistributed as provided in
20    subparagraph (B) of paragraph (5) of subsection (g) of this
21    Section 26 provided first, that the shares of those
22    amounts, which are to be redistributed to the host track or
23    to purses at the host track under subparagraph (B) of
24    paragraph (5) of subsection (g) of this Section 26 shall be
25    redistributed based on each host track's pro rata share of
26    the total inter-track wagering and simulcast wagering

 

 

HB3564- 151 -LRB099 06481 MLM 31222 b

1    handle at all host tracks during the calendar year in
2    question, and second, that any amounts redistributed as
3    described in part (I) to an inter-track wagering location
4    licensee that accepts wagers on races conducted by an
5    organization licensee that conducts a race meet in a county
6    with a population in excess of 230,000 and that borders the
7    Mississippi River shall be further redistributed as
8    provided in subparagraphs (D) and (E) of paragraph (7) of
9    subsection (g) of this Section 26, with the portion of that
10    further redistribution allocated to purses at that
11    organization licensee to be divided between standardbred
12    purses and thoroughbred purses based on the amounts
13    otherwise allocated to purses at that organization
14    licensee during the calendar year in question; and (iv) 8%
15    of the pari-mutuel handle on inter-track wagering wagered
16    at such location to satisfy all costs and expenses of
17    conducting its wagering. The remainder of the monies
18    retained by the inter-track wagering location licensee
19    shall be allocated 40% to the location licensee and 60% to
20    the organization licensee which provides the Illinois
21    races to the location, except that an intertrack wagering
22    location licensee that derives its license from a track
23    located in a county with a population in excess of 230,000
24    and that borders the Mississippi River shall not divide any
25    remaining retention with the organization licensee that
26    provides the race or races and an intertrack wagering

 

 

HB3564- 152 -LRB099 06481 MLM 31222 b

1    location licensee that accepts wagers on races conducted by
2    an organization licensee that conducts a race meet in a
3    county with a population in excess of 230,000 and that
4    borders the Mississippi River shall not divide any
5    remaining retention with the organization licensee.
6    Notwithstanding the provisions of clauses (ii) and (iv) of
7    this paragraph, in the case of the additional inter-track
8    wagering location licenses authorized under paragraph (1)
9    of this subsection (h) by this amendatory Act of 1991,
10    those licensees shall pay the following amounts as purses:
11    during the first 12 months the licensee is in operation,
12    5.25% of the pari-mutuel handle wagered at the location on
13    races; during the second 12 months, 5.25%; during the third
14    12 months, 5.75%; during the fourth 12 months, 6.25%; and
15    during the fifth 12 months and thereafter, 6.75%. The
16    following amounts shall be retained by the licensee to
17    satisfy all costs and expenses of conducting its wagering:
18    during the first 12 months the licensee is in operation,
19    8.25% of the pari-mutuel handle wagered at the location;
20    during the second 12 months, 8.25%; during the third 12
21    months, 7.75%; during the fourth 12 months, 7.25%; and
22    during the fifth 12 months and thereafter, 6.75%. For
23    additional intertrack wagering location licensees
24    authorized under this amendatory Act of 1995, purses for
25    the first 12 months the licensee is in operation shall be
26    5.75% of the pari-mutuel wagered at the location, purses

 

 

HB3564- 153 -LRB099 06481 MLM 31222 b

1    for the second 12 months the licensee is in operation shall
2    be 6.25%, and purses thereafter shall be 6.75%. For
3    additional intertrack location licensees authorized under
4    this amendatory Act of 1995, the licensee shall be allowed
5    to retain to satisfy all costs and expenses: 7.75% of the
6    pari-mutuel handle wagered at the location during its first
7    12 months of operation, 7.25% during its second 12 months
8    of operation, and 6.75% thereafter.
9        (C) There is hereby created the Horse Racing Tax
10    Allocation Fund which shall remain in existence until
11    December 31, 1999. Moneys remaining in the Fund after
12    December 31, 1999 shall be paid into the General Revenue
13    Fund. Until January 1, 2000, all monies paid into the Horse
14    Racing Tax Allocation Fund pursuant to this paragraph (11)
15    by inter-track wagering location licensees located in park
16    districts of 500,000 population or less, or in a
17    municipality that is not included within any park district
18    but is included within a conservation district and is the
19    county seat of a county that (i) is contiguous to the state
20    of Indiana and (ii) has a 1990 population of 88,257
21    according to the United States Bureau of the Census, and
22    operating on May 1, 1994 shall be allocated by
23    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

 

 

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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

 

 

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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 park districts or municipalities
10        that do not have a park district of 500,000 population
11        or less for museum purposes (if an inter-track wagering
12        location licensee is located in such a park district)
13        or to conservation districts for museum purposes (if an
14        inter-track wagering location licensee is located in a
15        municipality that is not included within any park
16        district but is included within a conservation
17        district and is the county seat of a county that (i) is
18        contiguous to the state of Indiana and (ii) has a 1990
19        population of 88,257 according to the United States
20        Bureau of the Census, except that if the conservation
21        district does not maintain a museum, the monies shall
22        be allocated equally between the county and the
23        municipality in which the inter-track wagering
24        location licensee is located for general purposes) or
25        to a municipal recreation board for park purposes (if
26        an inter-track wagering location licensee is located

 

 

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1        in a municipality that is not included within any park
2        district and park maintenance is the function of the
3        municipal recreation board and the municipality has a
4        1990 population of 9,302 according to the United States
5        Bureau of the Census); provided that the monies are
6        distributed to each park district or conservation
7        district or municipality that does not have a park
8        district in an amount equal to four-sevenths of the
9        amount collected by each inter-track wagering location
10        licensee within the park district or conservation
11        district or municipality for the Fund. Monies that were
12        paid into the Horse Racing Tax Allocation Fund before
13        the effective date of this amendatory Act of 1991 by an
14        inter-track wagering location licensee located in a
15        municipality that is not included within any park
16        district but is included within a conservation
17        district as provided in this paragraph shall, as soon
18        as practicable after the effective date of this
19        amendatory Act of 1991, be allocated and paid to that
20        conservation district as provided in this paragraph.
21        Any park district or municipality not maintaining a
22        museum may deposit the monies in the corporate fund of
23        the park district or municipality where the
24        inter-track wagering location is located, to be used
25        for general purposes; and
26            One-seventh to the Agricultural Premium Fund to be

 

 

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1        used for distribution to agricultural home economics
2        extension councils in accordance with "An Act in
3        relation to additional support and finances for the
4        Agricultural and Home Economic Extension Councils in
5        the several counties of this State and making an
6        appropriation therefor", approved July 24, 1967.
7        Until January 1, 2000, all other monies paid into the
8    Horse Racing Tax Allocation Fund pursuant to this paragraph
9    (11) shall be allocated by appropriation as follows:
10            Two-sevenths to the Department of Agriculture.
11        Fifty percent of this two-sevenths shall be used to
12        promote the Illinois horse racing and breeding
13        industry, and shall be distributed by the Department of
14        Agriculture upon the advice of a 9-member committee
15        appointed by the Governor consisting of the following
16        members: the Director of Agriculture, who shall serve
17        as chairman; 2 representatives of organization
18        licensees conducting thoroughbred race meetings in
19        this State, recommended by those licensees; 2
20        representatives of organization licensees conducting
21        standardbred race meetings in this State, recommended
22        by those licensees; a representative of the Illinois
23        Thoroughbred Breeders and Owners Foundation,
24        recommended by that Foundation; a representative of
25        the Illinois Standardbred Owners and Breeders
26        Association, recommended by that Association; a

 

 

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1        representative of the Horsemen's Benevolent and
2        Protective Association or any successor organization
3        thereto established in Illinois comprised of the
4        largest number of owners and trainers, recommended by
5        that Association or that successor organization; and a
6        representative of the Illinois Harness Horsemen's
7        Association, recommended by that Association.
8        Committee members shall serve for terms of 2 years,
9        commencing January 1 of each even-numbered year. If a
10        representative of any of the above-named entities has
11        not been recommended by January 1 of any even-numbered
12        year, the Governor shall appoint a committee member to
13        fill that position. Committee members shall receive no
14        compensation for their services as members but shall be
15        reimbursed for all actual and necessary expenses and
16        disbursements incurred in the performance of their
17        official duties. The remaining 50% of this
18        two-sevenths shall be distributed to county fairs for
19        premiums and rehabilitation as set forth in the
20        Agricultural Fair Act;
21            Four-sevenths to museums and aquariums located in
22        park districts of over 500,000 population; provided
23        that the monies are distributed in accordance with the
24        previous year's distribution of the maintenance tax
25        for such museums and aquariums as provided in Section 2
26        of the Park District Aquarium and Museum Act; and

 

 

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1            One-seventh to the Agricultural Premium Fund to be
2        used for distribution to agricultural home economics
3        extension councils in accordance with "An Act in
4        relation to additional support and finances for the
5        Agricultural and Home Economic Extension Councils in
6        the several counties of this State and making an
7        appropriation therefor", approved July 24, 1967. This
8        subparagraph (C) shall be inoperative and of no force
9        and effect on and after January 1, 2000.
10            (D) Except as provided in paragraph (11) of this
11        subsection (h), with respect to purse allocation from
12        intertrack wagering, the monies so retained shall be
13        divided as follows:
14                (i) If the inter-track wagering licensee,
15            except an intertrack wagering licensee that
16            derives its license from an organization licensee
17            located in a county with a population in excess of
18            230,000 and bounded by the Mississippi River, is
19            not conducting its own race meeting during the same
20            dates, then the entire purse allocation shall be to
21            purses at the track where the races wagered on are
22            being conducted.
23                (ii) If the inter-track wagering licensee,
24            except an intertrack wagering licensee that
25            derives its license from an organization licensee
26            located in a county with a population in excess of

 

 

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1            230,000 and bounded by the Mississippi River, is
2            also conducting its own race meeting during the
3            same dates, then the purse allocation shall be as
4            follows: 50% to purses at the track where the races
5            wagered on are being conducted; 50% to purses at
6            the track where the inter-track wagering licensee
7            is accepting such wagers.
8                (iii) If the inter-track wagering is being
9            conducted by an inter-track wagering location
10            licensee, except an intertrack wagering location
11            licensee that derives its license from an
12            organization licensee located in a county with a
13            population in excess of 230,000 and bounded by the
14            Mississippi River, the entire purse allocation for
15            Illinois races shall be to purses at the track
16            where the race meeting being wagered on is being
17            held.
18        (12) The Board shall have all powers necessary and
19    proper to fully supervise and control the conduct of
20    inter-track wagering and simulcast wagering by inter-track
21    wagering licensees and inter-track wagering location
22    licensees, including, but not limited to the following:
23            (A) The Board is vested with power to promulgate
24        reasonable rules and regulations for the purpose of
25        administering the conduct of this wagering and to
26        prescribe reasonable rules, regulations and conditions

 

 

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1        under which such wagering shall be held and conducted.
2        Such rules and regulations are to provide for the
3        prevention of practices detrimental to the public
4        interest and for the best interests of said wagering
5        and to impose penalties for violations thereof.
6            (B) The Board, and any person or persons to whom it
7        delegates this power, is vested with the power to enter
8        the facilities of any licensee to determine whether
9        there has been compliance with the provisions of this
10        Act and the rules and regulations relating to the
11        conduct of such wagering.
12            (C) The Board, and any person or persons to whom it
13        delegates this power, may eject or exclude from any
14        licensee's facilities, any person whose conduct or
15        reputation is such that his presence on such premises
16        may, in the opinion of the Board, call into the
17        question the honesty and integrity of, or interfere
18        with the orderly conduct of such wagering; provided,
19        however, that no person shall be excluded or ejected
20        from such premises solely on the grounds of race,
21        color, creed, national origin, ancestry, or sex.
22            (D) (Blank).
23            (E) The Board is vested with the power to appoint
24        delegates to execute any of the powers granted to it
25        under this Section for the purpose of administering
26        this wagering and any rules and regulations

 

 

HB3564- 162 -LRB099 06481 MLM 31222 b

1        promulgated in accordance with this Act.
2            (F) The Board shall name and appoint a State
3        director of this wagering who shall be a representative
4        of the Board and whose duty it shall be to supervise
5        the conduct of inter-track wagering as may be provided
6        for by the rules and regulations of the Board; such
7        rules and regulation shall specify the method of
8        appointment and the Director's powers, authority and
9        duties.
10            (G) The Board is vested with the power to impose
11        civil penalties of up to $5,000 against individuals and
12        up to $10,000 against licensees for each violation of
13        any provision of this Act relating to the conduct of
14        this wagering, any rules adopted by the Board, any
15        order of the Board or any other action which in the
16        Board's discretion, is a detriment or impediment to
17        such wagering.
18        (13) The Department of Agriculture may enter into
19    agreements with licensees authorizing such licensees to
20    conduct inter-track wagering on races to be held at the
21    licensed race meetings conducted by the Department of
22    Agriculture. Such agreement shall specify the races of the
23    Department of Agriculture's licensed race meeting upon
24    which the licensees will conduct wagering. In the event
25    that a licensee conducts inter-track pari-mutuel wagering
26    on races from the Illinois State Fair or DuQuoin State Fair

 

 

HB3564- 163 -LRB099 06481 MLM 31222 b

1    which are in addition to the licensee's previously approved
2    racing program, those races shall be considered a separate
3    racing day for the purpose of determining the daily handle
4    and computing the privilege or pari-mutuel tax on that
5    daily handle as provided in Sections 27 and 27.1. Such
6    agreements shall be approved by the Board before such
7    wagering may be conducted. In determining whether to grant
8    approval, the Board shall give due consideration to the
9    best interests of the public and of horse racing. The
10    provisions of paragraphs (1), (8), (8.1), and (8.2) of
11    subsection (h) of this Section which are not specified in
12    this paragraph (13) shall not apply to licensed race
13    meetings conducted by the Department of Agriculture at the
14    Illinois State Fair in Sangamon County or the DuQuoin State
15    Fair in Perry County, or to any wagering conducted on those
16    race meetings.
17    (i) Notwithstanding the other provisions of this Act, the
18conduct of wagering at wagering facilities is authorized on all
19days, except as limited by subsection (b) of Section 19 of this
20Act.
21(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
2298-624, eff. 1-29-14; 98-968, eff. 8-15-14.)
 
23    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
24    Sec. 27. (a) In addition to the organization license fee
25provided by this Act, until January 1, 2000, a graduated

 

 

HB3564- 164 -LRB099 06481 MLM 31222 b

1privilege tax is hereby imposed for conducting the pari-mutuel
2system of wagering permitted under this Act. Until January 1,
32000, except as provided in subsection (g) of Section 27 of
4this Act, all of the breakage of each racing day held by any
5licensee in the State shall be paid to the State. Until January
61, 2000, such daily graduated privilege tax shall be paid by
7the licensee from the amount permitted to be retained under
8this Act. Until January 1, 2000, each day's graduated privilege
9tax, breakage, and Horse Racing Tax Allocation funds shall be
10remitted to the Department of Revenue within 48 hours after the
11close of the racing day upon which it is assessed or within
12such other time as the Board prescribes. The privilege tax
13hereby imposed, until January 1, 2000, shall be a flat tax at
14the rate of 2% of the daily pari-mutuel handle except as
15provided in Section 27.1.
16    In addition, every organization licensee, except as
17provided in Section 27.1 of this Act, which conducts multiple
18wagering shall pay, until January 1, 2000, as a privilege tax
19on multiple wagers an amount equal to 1.25% of all moneys
20wagered each day on such multiple wagers, plus an additional
21amount equal to 3.5% of the amount wagered each day on any
22other multiple wager which involves a single betting interest
23on 3 or more horses. The licensee shall remit the amount of
24such taxes to the Department of Revenue within 48 hours after
25the close of the racing day on which it is assessed or within
26such other time as the Board prescribes.

 

 

HB3564- 165 -LRB099 06481 MLM 31222 b

1    This subsection (a) shall be inoperative and of no force
2and effect on and after January 1, 2000.
3    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
4at the rate of 1.5% of the daily pari-mutuel handle is imposed
5at all pari-mutuel wagering facilities and on advance deposit
6wagering from a location other than a wagering facility, except
7as otherwise provided for in this subsection (a-5). In addition
8to the pari-mutuel tax imposed on advance deposit wagering
9pursuant to this subsection (a-5), beginning on August 24, 2012
10(the effective date of Public Act 97-1060) until February 1,
112017, an additional pari-mutuel tax at the rate of 0.25% shall
12be imposed on advance deposit wagering. Until August 25, 2012,
13the additional 0.25% pari-mutuel tax imposed on advance deposit
14wagering by Public Act 96-972 shall be deposited into the
15Quarter Horse Purse Fund, which shall be created as a
16non-appropriated trust fund administered by the Board for
17grants to thoroughbred organization licensees for payment of
18purses for quarter horse races conducted by the organization
19licensee. Beginning on August 26, 2012, the additional 0.25%
20pari-mutuel tax imposed on advance deposit wagering shall be
21deposited into the Standardbred Purse Fund, which shall be
22created as a non-appropriated trust fund administered by the
23Board, for grants to the standardbred organization licensees
24for payment of purses for standardbred horse races conducted by
25the organization licensee. Thoroughbred organization licensees
26may petition the Board to conduct quarter horse racing and

 

 

HB3564- 166 -LRB099 06481 MLM 31222 b

1receive purse grants from the Quarter Horse Purse Fund. The
2Board shall have complete discretion in distributing the
3Quarter Horse Purse Fund to the petitioning organization
4licensees. Beginning on July 26, 2010 (the effective date of
5Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
6the daily pari-mutuel handle is imposed at a pari-mutuel
7facility whose license is derived from a track located in a
8county that borders the Mississippi River and conducted live
9racing in the previous year. The pari-mutuel tax imposed by
10this subsection (a-5) shall be remitted to the Department of
11Revenue within 48 hours after the close of the racing day upon
12which it is assessed or within such other time as the Board
13prescribes.
14    (a-10) Beginning on the date when an organization licensee
15begins conducting electronic gaming pursuant to an electronic
16gaming license, the following pari-mutuel tax is imposed upon
17an organization licensee on Illinois races at the licensee's
18race track:
19        1.5% of the pari-mutuel handle at or below the average
20    daily pari-mutuel handle for 2011.
21        2% of the pari-mutuel handle above the average daily
22    pari-mutuel handle for 2011 up to 125% of the average daily
23    pari-mutuel handle for 2011.
24        2.5% of the pari-mutuel handle 125% or more above the
25    average daily pari-mutuel handle for 2011 up to 150% of the
26    average daily pari-mutuel handle for 2011.

 

 

HB3564- 167 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 168 -LRB099 06481 MLM 31222 b

1reports and statement shall be made.
2    (d) Before a license is issued or re-issued, the licensee
3shall post a bond in the sum of $500,000 to the State of
4Illinois. The bond shall be used to guarantee that the licensee
5faithfully makes the payments, keeps the books and records and
6makes reports, and conducts games of chance in conformity with
7this Act and the rules adopted by the Board. The bond shall not
8be canceled by a surety on less than 30 days' notice in writing
9to the Board. If a bond is canceled and the licensee fails to
10file a new bond with the Board in the required amount on or
11before the effective date of cancellation, the licensee's
12license shall be revoked. The total and aggregate liability of
13the surety on the bond is limited to the amount specified in
14the bond. Any licensee failing or refusing to pay the amount of
15any tax due under this Section shall be guilty of a business
16offense and upon conviction shall be fined not more than $5,000
17in addition to the amount found due as tax under this Section.
18Each day's violation shall constitute a separate offense. All
19fines paid into Court by a licensee hereunder shall be
20transmitted and paid over by the Clerk of the Court to the
21Board.
22    (e) No other license fee, privilege tax, excise tax, or
23racing fee, except as provided in this Act, shall be assessed
24or collected from any such licensee by the State.
25    (f) No other license fee, privilege tax, excise tax or
26racing fee shall be assessed or collected from any such

 

 

HB3564- 169 -LRB099 06481 MLM 31222 b

1licensee by units of local government except as provided in
2paragraph 10.1 of subsection (h) and subsection (f) of Section
326 of this Act. However, any municipality that has a Board
4licensed horse race meeting at a race track wholly within its
5corporate boundaries or a township that has a Board licensed
6horse race meeting at a race track wholly within the
7unincorporated area of the township may charge a local
8amusement tax not to exceed 10 per admission to such horse
9race meeting by the enactment of an ordinance. However, any
10municipality or county that has a Board licensed inter-track
11wagering location facility wholly within its corporate
12boundaries may each impose an admission fee not to exceed $1.00
13per admission to such inter-track wagering location facility,
14so that a total of not more than $2.00 per admission may be
15imposed. Except as provided in subparagraph (g) of Section 27
16of this Act, the inter-track wagering location licensee shall
17collect any and all such fees and within 48 hours remit the
18fees to the Board, which shall, pursuant to rule, cause the
19fees to be distributed to the county or municipality.
20    (g) Notwithstanding any provision in this Act to the
21contrary, if in any calendar year the total taxes and fees from
22wagering on live racing and from inter-track wagering required
23to be collected from licensees and distributed under this Act
24to all State and local governmental authorities exceeds the
25amount of such taxes and fees distributed to each State and
26local governmental authority to which each State and local

 

 

HB3564- 170 -LRB099 06481 MLM 31222 b

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

 

 

HB3564- 171 -LRB099 06481 MLM 31222 b

1    assistance and advice of the Illinois Standardbred
2    Breeders Funds Advisory Board for the purposes listed in
3    subsection (g) of Section 31 of this Act, before the amount
4    allocated to standardbred purses under item (i) is
5    allocated to standardbred organization licensees in the
6    succeeding allocation year.
7    To the extent the excess amount of taxes and fees to be
8collected and distributed to State and local governmental
9authorities exceeds $11 million, that excess amount shall be
10collected and distributed to State and local authorities as
11provided for under this Act.
12(Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;
1398-624, eff. 1-29-14.)
 
14    (230 ILCS 5/30)  (from Ch. 8, par. 37-30)
15    Sec. 30. (a) The General Assembly declares that it is the
16policy of this State to encourage the breeding of thoroughbred
17horses in this State and the ownership of such horses by
18residents of this State in order to provide for: sufficient
19numbers of high quality thoroughbred horses to participate in
20thoroughbred racing meetings in this State, and to establish
21and preserve the agricultural and commercial benefits of such
22breeding and racing industries to the State of Illinois. It is
23the intent of the General Assembly to further this policy by
24the provisions of this Act.
25    (b) Each organization licensee conducting a thoroughbred

 

 

HB3564- 172 -LRB099 06481 MLM 31222 b

1racing meeting pursuant to this Act shall provide at least two
2races each day limited to Illinois conceived and foaled horses
3or Illinois foaled horses or both. A minimum of 6 races shall
4be conducted each week limited to Illinois conceived and foaled
5or Illinois foaled horses or both. No horses shall be permitted
6to start in such races unless duly registered under the rules
7of the Department of Agriculture.
8    (c) Conditions of races under subsection (b) shall be
9commensurate with past performance, quality, and class of
10Illinois conceived and foaled and Illinois foaled horses
11available. If, however, sufficient competition cannot be had
12among horses of that class on any day, the races may, with
13consent of the Board, be eliminated for that day and substitute
14races provided.
15    (d) There is hereby created a special fund of the State
16Treasury to be known as the Illinois Thoroughbred Breeders
17Fund.
18    Beginning on the effective date of this amendatory Act of
19the 99th General Assembly, the Illinois Thoroughbred Breeders
20Fund shall become a non-appropriated trust fund held separately
21from State moneys. Expenditures from this Fund shall no longer
22be subject to appropriation.
23    Except as provided in subsection (g) of Section 27 of this
24Act, 8.5% of all the monies received by the State as privilege
25taxes on Thoroughbred racing meetings shall be paid into the
26Illinois Thoroughbred Breeders Fund.

 

 

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1    Notwithstanding any provision of law to the contrary,
2amounts deposited into the Illinois Thoroughbred Breeders Fund
3from revenues generated by electronic gaming after the
4effective date of this amendatory Act of the 99th General
5Assembly shall be in addition to tax and fee amounts paid under
6this Section for calendar year 2015 and thereafter.
7    (e) The Illinois Thoroughbred Breeders Fund shall be
8administered by the Department of Agriculture with the advice
9and assistance of the Advisory Board created in subsection (f)
10of this Section.
11    (f) The Illinois Thoroughbred Breeders Fund Advisory Board
12shall consist of the Director of the Department of Agriculture,
13who shall serve as Chairman; a member of the Illinois Racing
14Board, designated by it; 2 representatives of the organization
15licensees conducting thoroughbred racing meetings, recommended
16by them; 2 representatives of the Illinois Thoroughbred
17Breeders and Owners Foundation, recommended by it; one
18representative and 2 representatives of the Horsemen's
19Benevolent Protective Association; and one representative from
20the Illinois Thoroughbred Horsemen's Association or any
21successor organization established in Illinois comprised of
22the largest number of owners and trainers, recommended by it,
23with one representative of the Horsemen's Benevolent and
24Protective Association to come from its Illinois Division, and
25one from its Chicago Division. Advisory Board members shall
26serve for 2 years commencing January 1 of each odd numbered

 

 

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1year. If representatives of the organization licensees
2conducting thoroughbred racing meetings, the Illinois
3Thoroughbred Breeders and Owners Foundation, and the
4Horsemen's Benevolent Protection Association, and the Illinois
5Thoroughbred Horsemen's Association have not been recommended
6by January 1, of each odd numbered year, the Director of the
7Department of Agriculture shall make an appointment for the
8organization failing to so recommend a member of the Advisory
9Board. Advisory Board members shall receive no compensation for
10their services as members but shall be reimbursed for all
11actual and necessary expenses and disbursements incurred in the
12execution of their official duties.
13    (g) No monies shall be expended from the Illinois
14Thoroughbred Breeders Fund except as appropriated by the
15General Assembly. Monies expended appropriated from the
16Illinois Thoroughbred Breeders Fund shall be expended by the
17Department of Agriculture, with the advice and assistance of
18the Illinois Thoroughbred Breeders Fund Advisory Board, for the
19following purposes only:
20        (1) To provide purse supplements to owners of horses
21    participating in races limited to Illinois conceived and
22    foaled and Illinois foaled horses. Any such purse
23    supplements shall not be included in and shall be paid in
24    addition to any purses, stakes, or breeders' awards offered
25    by each organization licensee as determined by agreement
26    between such organization licensee and an organization

 

 

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1    representing the horsemen. No monies from the Illinois
2    Thoroughbred Breeders Fund shall be used to provide purse
3    supplements for claiming races in which the minimum
4    claiming price is less than $7,500.
5        (2) To provide stakes and awards to be paid to the
6    owners of the winning horses in certain races limited to
7    Illinois conceived and foaled and Illinois foaled horses
8    designated as stakes races.
9        (2.5) To provide an award to the owner or owners of an
10    Illinois conceived and foaled or Illinois foaled horse that
11    wins a maiden special weight, an allowance, overnight
12    handicap race, or claiming race with claiming price of
13    $10,000 or more providing the race is not restricted to
14    Illinois conceived and foaled or Illinois foaled horses.
15    Awards shall also be provided to the owner or owners of
16    Illinois conceived and foaled and Illinois foaled horses
17    that place second or third in those races. To the extent
18    that additional moneys are required to pay the minimum
19    additional awards of 40% of the purse the horse earns for
20    placing first, second or third in those races for Illinois
21    foaled horses and of 60% of the purse the horse earns for
22    placing first, second or third in those races for Illinois
23    conceived and foaled horses, those moneys shall be provided
24    from the purse account at the track where earned.
25        (3) To provide stallion awards to the owner or owners
26    of any stallion that is duly registered with the Illinois

 

 

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1    Thoroughbred Breeders Fund Program prior to the effective
2    date of this amendatory Act of 1995 whose duly registered
3    Illinois conceived and foaled offspring wins a race
4    conducted at an Illinois thoroughbred racing meeting other
5    than a claiming race, provided that the stallion stood
6    service within Illinois at the time the offspring was
7    conceived and that the stallion did not stand for service
8    outside of Illinois at any time during the year in which
9    the offspring was conceived. Such award shall not be paid
10    to the owner or owners of an Illinois stallion that served
11    outside this State at any time during the calendar year in
12    which such race was conducted.
13        (4) To provide $75,000 annually for purses to be
14    distributed to county fairs that provide for the running of
15    races during each county fair exclusively for the
16    thoroughbreds conceived and foaled in Illinois. The
17    conditions of the races shall be developed by the county
18    fair association and reviewed by the Department with the
19    advice and assistance of the Illinois Thoroughbred
20    Breeders Fund Advisory Board. There shall be no wagering of
21    any kind on the running of Illinois conceived and foaled
22    races at county fairs.
23        (4.1) To provide purse money for an Illinois stallion
24    stakes program.
25        (5) No less than 90% 80% of all monies expended
26    appropriated from the Illinois Thoroughbred Breeders Fund

 

 

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1    shall be expended for the purposes in paragraphs (1), (2),
2    (2.5), (3), (4), (4.1), and (5) as shown above.
3        (6) To provide for educational programs regarding the
4    thoroughbred breeding industry.
5        (7) To provide for research programs concerning the
6    health, development and care of the thoroughbred horse.
7        (8) To provide for a scholarship and training program
8    for students of equine veterinary medicine.
9        (9) To provide for dissemination of public information
10    designed to promote the breeding of thoroughbred horses in
11    Illinois.
12        (10) To provide for all expenses incurred in the
13    administration of the Illinois Thoroughbred Breeders Fund.
14    (h) The Illinois Thoroughbred Breeders Fund is not subject
15to administrative charges or chargebacks, including, but not
16limited to, those authorized under Section 8h of the State
17Finance Act. Whenever the Governor finds that the amount in the
18Illinois Thoroughbred Breeders Fund is more than the total of
19the outstanding appropriations from such fund, the Governor
20shall notify the State Comptroller and the State Treasurer of
21such fact. The Comptroller and the State Treasurer, upon
22receipt of such notification, shall transfer such excess amount
23from the Illinois Thoroughbred Breeders Fund to the General
24Revenue Fund.
25    (i) A sum equal to 13% 12 1/2% of the first prize money of
26every purse won by an Illinois foaled or an Illinois conceived

 

 

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1and foaled horse in races not limited to Illinois foaled horses
2or Illinois conceived and foaled horses, or both, shall be paid
3by the organization licensee conducting the horse race meeting.
4Such sum shall be paid 50% from the organization licensee's
5account and 50% from the purse account of the licensee share of
6the money wagered as follows: 11 1/2% to the breeder of the
7winning horse and 1 1/2% 1% to the organization representing
8thoroughbred breeders and owners whose representative serves
9on the Illinois Thoroughbred Breeders Fund Advisory Board for
10verifying the amounts of breeders' awards earned, assuring
11their distribution in accordance with this Act, and servicing
12and promoting the Illinois thoroughbred horse racing industry.
13Except for that track that races in Madison County, beginning
14in the calendar year in which an organization licensee that is
15eligible to receive payment under paragraph (13) of subsection
16(g) of Section 26 of this Act begins to receive funds from
17electronic gaming, a sum equal to 21 1/2% of the first prize
18money of every purse won by an Illinois foaled or an Illinois
19conceived and foaled horse in races not limited to Illinois
20foaled horses or Illinois conceived and foaled horses, or both,
21shall be paid by the organization licensee conducting the horse
22race meeting. Such sum shall be paid 30% from the organization
23licensee's account and 70% from the purse account of the
24licensee as follows: 20% to the breeder of the winning horse
25and 1 1/2% to the organization representing thoroughbred
26breeders and owners whose representative serves on the Illinois

 

 

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

 

 

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1    (j) A sum equal to 13% 12 1/2% of the first prize money won
2in each race limited to Illinois foaled horses or Illinois
3conceived and foaled horses, or both, shall be paid in the
4following manner by the organization licensee conducting the
5horse race meeting, 50% from the organization licensee's
6account and 50% from the purse account of the licensee share of
7the money wagered: 11 1/2% to the breeders of the horses in
8each such race which are the official first, second, third and
9fourth finishers and 1 1/2% 1% to the organization representing
10thoroughbred breeders and owners whose representative serves
11on the Illinois Thoroughbred Breeders Fund Advisory Board for
12verifying the amounts of breeders' awards earned, assuring
13their proper distribution in accordance with this Act, and
14servicing and promoting the Illinois thoroughbred horse racing
15industry. The organization representing thoroughbred breeders
16and owners shall cause all expenditures of monies received
17under this subsection (j) to be audited at least annually by a
18registered public accountant. The organization shall file
19copies of each annual audit with the Racing Board, the Clerk of
20the House of Representatives and the Secretary of the Senate,
21and shall make copies of each annual audit available to the
22public upon request and upon payment of the reasonable cost of
23photocopying the requested number of copies.
24    The 11 1/2% paid to the breeders in accordance with this
25subsection shall be distributed as follows:
26        (1) 60% of such sum shall be paid to the breeder of the

 

 

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1    horse which finishes in the official first position;
2        (2) 20% of such sum shall be paid to the breeder of the
3    horse which finishes in the official second position;
4        (3) 15% of such sum shall be paid to the breeder of the
5    horse which finishes in the official third position; and
6        (4) 5% of such sum shall be paid to the breeder of the
7    horse which finishes in the official fourth position.
8    Such payments shall not reduce any award to the owners of a
9horse or reduce the taxes payable under this Act. Upon
10completion of its racing meet, each organization licensee shall
11deliver to the organization representing thoroughbred breeders
12and owners whose representative serves on the Illinois
13Thoroughbred Breeders Fund Advisory Board a listing of all the
14Illinois foaled and the Illinois conceived and foaled horses
15which won breeders' awards and the amount of such breeders'
16awards in accordance with the provisions of this Act. Such
17payments shall be delivered by the organization licensee within
1830 days of the end of each race meeting.
19    (k) The term "breeder", as used herein, means the owner of
20the mare at the time the foal is dropped. An "Illinois foaled
21horse" is a foal dropped by a mare which enters this State on
22or before December 1, in the year in which the horse is bred,
23provided the mare remains continuously in this State until its
24foal is born. An "Illinois foaled horse" also means a foal born
25of a mare in the same year as the mare enters this State on or
26before March 1, and remains in this State at least 30 days

 

 

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1after foaling, is bred back during the season of the foaling to
2an Illinois Registered Stallion (unless a veterinarian
3certifies that the mare should not be bred for health reasons),
4and is not bred to a stallion standing in any other state
5during the season of foaling. An "Illinois foaled horse" also
6means a foal born in Illinois of a mare purchased at public
7auction subsequent to the mare entering this State on or before
8March 1 prior to February 1 of the foaling year providing the
9mare is owned solely by one or more Illinois residents or an
10Illinois entity that is entirely owned by one or more Illinois
11residents.
12    (l) The Department of Agriculture shall, by rule, with the
13advice and assistance of the Illinois Thoroughbred Breeders
14Fund Advisory Board:
15        (1) Qualify stallions for Illinois breeding; such
16    stallions to stand for service within the State of Illinois
17    at the time of a foal's conception. Such stallion must not
18    stand for service at any place outside the State of
19    Illinois during the calendar year in which the foal is
20    conceived. The Department of Agriculture may assess and
21    collect an application fee of up to $500 fees for the
22    registration of Illinois-eligible stallions. All fees
23    collected are to be held in trust accounts for the purposes
24    set forth in this Act and in accordance with Section 205-15
25    of the Department of Agriculture Law paid into the Illinois
26    Thoroughbred Breeders Fund.

 

 

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

 

 

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1program, organization licensees' contributions, availability
2of stakes caliber horses as demonstrated by past performances,
3whether the race can be coordinated into the proposed racing
4dates within organization licensees' racing dates, opportunity
5for colts and fillies and various age groups to race, public
6wagering on such races, and the previous racing schedule.
7    (n) The Board and the organizational licensee shall notify
8the Department of the conditions and minimum purses for races
9limited to Illinois conceived and foaled and Illinois foaled
10horses conducted for each organizational licensee conducting a
11thoroughbred racing meeting. The Department of Agriculture
12with the advice and assistance of the Illinois Thoroughbred
13Breeders Fund Advisory Board may allocate monies for purse
14supplements for such races. In determining whether to allocate
15money and the amount, the Department of Agriculture shall
16consider factors, including but not limited to, the amount of
17money appropriated for the Illinois Thoroughbred Breeders Fund
18program, the number of races that may occur, and the
19organizational licensee's purse structure.
20    (o) (Blank).
21(Source: P.A. 98-692, eff. 7-1-14.)
 
22    (230 ILCS 5/30.5)
23    Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
24    (a) The General Assembly declares that it is the policy of
25this State to encourage the breeding of racing quarter horses

 

 

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1in this State and the ownership of such horses by residents of
2this State in order to provide for sufficient numbers of high
3quality racing quarter horses in this State and to establish
4and preserve the agricultural and commercial benefits of such
5breeding and racing industries to the State of Illinois. It is
6the intent of the General Assembly to further this policy by
7the provisions of this Act.
8    (b) There is hereby created a non-appropriated trust
9special fund in the State Treasury to be known as the Illinois
10Racing Quarter Horse Breeders Fund, which is held separately
11from State moneys. Except as provided in subsection (g) of
12Section 27 of this Act, 8.5% of all the moneys received by the
13State as pari-mutuel taxes on quarter horse racing shall be
14paid into the Illinois Racing Quarter Horse Breeders Fund. The
15Illinois Racing Quarter Horse Breeders Fund shall not be
16subject to administrative charges or chargebacks, including,
17but not limited to, those authorized under Section 8h of the
18State Finance Act.
19    (c) The Illinois Racing Quarter Horse Breeders Fund shall
20be administered by the Department of Agriculture with the
21advice and assistance of the Advisory Board created in
22subsection (d) of this Section.
23    (d) The Illinois Racing Quarter Horse Breeders Fund
24Advisory Board shall consist of the Director of the Department
25of Agriculture, who shall serve as Chairman; a member of the
26Illinois Racing Board, designated by it; one representative of

 

 

HB3564- 186 -LRB099 06481 MLM 31222 b

1the organization licensees conducting pari-mutuel quarter
2horse racing meetings, recommended by them; 2 representatives
3of the Illinois Running Quarter Horse Association, recommended
4by it; and the Superintendent of Fairs and Promotions from the
5Department of Agriculture. Advisory Board members shall serve
6for 2 years commencing January 1 of each odd numbered year. If
7representatives have not been recommended by January 1 of each
8odd numbered year, the Director of the Department of
9Agriculture may make an appointment for the organization
10failing to so recommend a member of the Advisory Board.
11Advisory Board members shall receive no compensation for their
12services as members but may be reimbursed for all actual and
13necessary expenses and disbursements incurred in the execution
14of their official duties.
15    (e) Moneys in No moneys shall be expended from the Illinois
16Racing Quarter Horse Breeders Fund except as appropriated by
17the General Assembly. Moneys appropriated from the Illinois
18Racing Quarter Horse Breeders Fund shall be expended by the
19Department of Agriculture, with the advice and assistance of
20the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
21for the following purposes only:
22        (1) To provide stakes and awards to be paid to the
23    owners of the winning horses in certain races. This
24    provision is limited to Illinois conceived and foaled
25    horses.
26        (2) To provide an award to the owner or owners of an

 

 

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1    Illinois conceived and foaled horse that wins a race when
2    pari-mutuel wagering is conducted; providing the race is
3    not restricted to Illinois conceived and foaled horses.
4        (3) To provide purse money for an Illinois stallion
5    stakes program.
6        (4) To provide for purses to be distributed for the
7    running of races during the Illinois State Fair and the
8    DuQuoin State Fair exclusively for quarter horses
9    conceived and foaled in Illinois.
10        (5) To provide for purses to be distributed for the
11    running of races at Illinois county fairs exclusively for
12    quarter horses conceived and foaled in Illinois.
13        (6) To provide for purses to be distributed for running
14    races exclusively for quarter horses conceived and foaled
15    in Illinois at locations in Illinois determined by the
16    Department of Agriculture with advice and consent of the
17    Illinois Racing Quarter Horse Breeders Fund Advisory
18    Board.
19        (7) No less than 90% of all moneys expended
20    appropriated from the Illinois Racing Quarter Horse
21    Breeders Fund shall be expended for the purposes in items
22    (1), (2), (3), (4), and (5) of this subsection (e).
23        (8) To provide for research programs concerning the
24    health, development, and care of racing quarter horses.
25        (9) To provide for dissemination of public information
26    designed to promote the breeding of racing quarter horses

 

 

HB3564- 188 -LRB099 06481 MLM 31222 b

1    in Illinois.
2        (10) To provide for expenses incurred in the
3    administration of the Illinois Racing Quarter Horse
4    Breeders Fund.
5    (f) The Department of Agriculture shall, by rule, with the
6advice and assistance of the Illinois Racing Quarter Horse
7Breeders Fund Advisory Board:
8        (1) Qualify stallions for Illinois breeding; such
9    stallions to stand for service within the State of
10    Illinois, at the time of a foal's conception. Such stallion
11    must not stand for service at any place outside the State
12    of Illinois during the calendar year in which the foal is
13    conceived. The Department of Agriculture may assess and
14    collect application fees for the registration of
15    Illinois-eligible stallions. All fees collected are to be
16    paid into the Illinois Racing Quarter Horse Breeders Fund.
17        (2) Provide for the registration of Illinois conceived
18    and foaled horses. No such horse shall compete in the races
19    limited to Illinois conceived and foaled horses unless it
20    is registered with the Department of Agriculture. The
21    Department of Agriculture may prescribe such forms as are
22    necessary to determine the eligibility of such horses. The
23    Department of Agriculture may assess and collect
24    application fees for the registration of Illinois-eligible
25    foals. All fees collected are to be paid into the Illinois
26    Racing Quarter Horse Breeders Fund. No person shall

 

 

HB3564- 189 -LRB099 06481 MLM 31222 b

1    knowingly prepare or cause preparation of an application
2    for registration of such foals that contains false
3    information.
4    (g) The Department of Agriculture, with the advice and
5assistance of the Illinois Racing Quarter Horse Breeders Fund
6Advisory Board, shall provide that certain races limited to
7Illinois conceived and foaled be stakes races and determine the
8total amount of stakes and awards to be paid to the owners of
9the winning horses in such races.
10(Source: P.A. 98-463, eff. 8-16-13.)
 
11    (230 ILCS 5/31)  (from Ch. 8, par. 37-31)
12    Sec. 31. (a) The General Assembly declares that it is the
13policy of this State to encourage the breeding of standardbred
14horses in this State and the ownership of such horses by
15residents of this State in order to provide for: sufficient
16numbers of high quality standardbred horses to participate in
17harness racing meetings in this State, and to establish and
18preserve the agricultural and commercial benefits of such
19breeding and racing industries to the State of Illinois. It is
20the intent of the General Assembly to further this policy by
21the provisions of this Section of this Act.
22    (b) Each organization licensee conducting a harness racing
23meeting pursuant to this Act shall provide for at least two
24races each race program limited to Illinois conceived and
25foaled horses. A minimum of 6 races shall be conducted each

 

 

HB3564- 190 -LRB099 06481 MLM 31222 b

1week limited to Illinois conceived and foaled horses. No horses
2shall be permitted to start in such races unless duly
3registered under the rules of the Department of Agriculture.
4    (b-5) Organization licensees, not including the Illinois
5State Fair or the DuQuoin State Fair, shall provide stake races
6and early closer races for Illinois conceived and foaled horses
7so that purses distributed for such races shall be no less than
817% of total purses distributed for harness racing in that
9calendar year in addition to any stakes payments and starting
10fees contributed by horse owners.
11    (b-10) Each organization licensee conducting a harness
12racing meeting pursuant to this Act shall provide an owner
13award to be paid from the purse account equal to 25% of the
14amount earned by Illinois conceived and foaled horses in races
15that are not restricted to Illinois conceived and foaled
16horses. The owner awards shall not be paid on races below the
17$10,000 claiming class.
18    (c) Conditions of races under subsection (b) shall be
19commensurate with past performance, quality and class of
20Illinois conceived and foaled horses available. If, however,
21sufficient competition cannot be had among horses of that class
22on any day, the races may, with consent of the Board, be
23eliminated for that day and substitute races provided.
24    (d) There is hereby created a special fund of the State
25Treasury to be known as the Illinois Standardbred Breeders
26Fund.

 

 

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1    During the calendar year 1981, and each year thereafter,
2except as provided in subsection (g) of Section 27 of this Act,
3eight and one-half per cent of all the monies received by the
4State as privilege taxes on harness racing meetings shall be
5paid into the Illinois Standardbred Breeders Fund.
6    (e) The Illinois Standardbred Breeders Fund shall be
7administered by the Department of Agriculture with the
8assistance and advice of the Advisory Board created in
9subsection (f) of this Section.
10    (f) The Illinois Standardbred Breeders Fund Advisory Board
11is hereby created. The Advisory Board shall consist of the
12Director of the Department of Agriculture, who shall serve as
13Chairman; the Superintendent of the Illinois State Fair; a
14member of the Illinois Racing Board, designated by it; a
15representative of the Illinois Standardbred Owners and
16Breeders Association, recommended by it; a representative of
17the Illinois Association of Agricultural Fairs, recommended by
18it, such representative to be from a fair at which Illinois
19conceived and foaled racing is conducted; a representative of
20the organization licensees conducting harness racing meetings,
21recommended by them and a representative of the Illinois
22Harness Horsemen's Association, recommended by it. Advisory
23Board members shall serve for 2 years commencing January 1, of
24each odd numbered year. If representatives of the Illinois
25Standardbred Owners and Breeders Associations, the Illinois
26Association of Agricultural Fairs, the Illinois Harness

 

 

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1Horsemen's Association, and the organization licensees
2conducting harness racing meetings have not been recommended by
3January 1, of each odd numbered year, the Director of the
4Department of Agriculture shall make an appointment for the
5organization failing to so recommend a member of the Advisory
6Board. Advisory Board members shall receive no compensation for
7their services as members but shall be reimbursed for all
8actual and necessary expenses and disbursements incurred in the
9execution of their official duties.
10    (g) No monies shall be expended from the Illinois
11Standardbred Breeders Fund except as appropriated by the
12General Assembly. Monies appropriated from the Illinois
13Standardbred Breeders Fund shall be expended by the Department
14of Agriculture, with the assistance and advice of the Illinois
15Standardbred Breeders Fund Advisory Board for the following
16purposes only:
17        1. To provide purses for races limited to Illinois
18    conceived and foaled horses at the State Fair and the
19    DuQuoin State Fair.
20        2. To provide purses for races limited to Illinois
21    conceived and foaled horses at county fairs.
22        3. To provide purse supplements for races limited to
23    Illinois conceived and foaled horses conducted by
24    associations conducting harness racing meetings.
25        4. No less than 75% of all monies in the Illinois
26    Standardbred Breeders Fund shall be expended for purses in

 

 

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1    1, 2 and 3 as shown above.
2        5. In the discretion of the Department of Agriculture
3    to provide awards to harness breeders of Illinois conceived
4    and foaled horses which win races conducted by organization
5    licensees conducting harness racing meetings. A breeder is
6    the owner of a mare at the time of conception. No more than
7    10% of all monies appropriated from the Illinois
8    Standardbred Breeders Fund shall be expended for such
9    harness breeders awards. No more than 25% of the amount
10    expended for harness breeders awards shall be expended for
11    expenses incurred in the administration of such harness
12    breeders awards.
13        6. To pay for the improvement of racing facilities
14    located at the State Fair and County fairs.
15        7. To pay the expenses incurred in the administration
16    of the Illinois Standardbred Breeders Fund.
17        8. To promote the sport of harness racing, including
18    grants up to a maximum of $7,500 per fair per year for
19    conducting pari-mutuel wagering during the advertised
20    dates of a county fair.
21        9. To pay up to $50,000 annually for the Department of
22    Agriculture to conduct drug testing at county fairs racing
23    standardbred horses.
24        10. To pay up to $100,000 annually for distribution to
25    Illinois county fairs to supplement premiums offered in
26    junior classes.

 

 

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1    (h) (Blank) Whenever the Governor finds that the amount in
2the Illinois Standardbred Breeders Fund is more than the total
3of the outstanding appropriations from such fund, the Governor
4shall notify the State Comptroller and the State Treasurer of
5such fact. The Comptroller and the State Treasurer, upon
6receipt of such notification, shall transfer such excess amount
7from the Illinois Standardbred Breeders Fund to the General
8Revenue Fund.
9    (i) A sum equal to 13% 12 1/2% of the first prize money of
10the gross every purse won by an Illinois conceived and foaled
11horse shall be paid 50% by the organization licensee conducting
12the horse race meeting to the breeder of such winning horse
13from the organization licensee's account and 50% from the purse
14account of the licensee share of the money wagered. Such
15payment shall not reduce any award to the owner of the horse or
16reduce the taxes payable under this Act. Such payment shall be
17delivered by the organization licensee at the end of each
18quarter race meeting.
19    (j) The Department of Agriculture shall, by rule, with the
20assistance and advice of the Illinois Standardbred Breeders
21Fund Advisory Board:
22        1. Qualify stallions for Illinois Standardbred
23    Breeders Fund breeding; such stallion shall be owned by a
24    resident of the State of Illinois or by an Illinois
25    corporation all of whose shareholders, directors, officers
26    and incorporators are residents of the State of Illinois.

 

 

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1    Such stallion shall stand for service at and within the
2    State of Illinois at the time of a foal's conception, and
3    such stallion must not stand for service at any place, nor
4    may semen from such stallion be transported, outside the
5    State of Illinois during that calendar year in which the
6    foal is conceived and that the owner of the stallion was
7    for the 12 months prior, a resident of Illinois. Foals
8    conceived outside the State of Illinois from shipped semen
9    from a stallion qualified for breeders' awards under this
10    Section are not eligible to participate in the Illinois
11    conceived and foaled program. The articles of agreement of
12    any partnership, joint venture, limited partnership,
13    syndicate, association or corporation and any bylaws and
14    stock certificates must contain a restriction that
15    provides that the ownership or transfer of interest by any
16    one of the persons a party to the agreement can only be
17    made to a person who qualifies as an Illinois resident.
18        2. Provide for the registration of Illinois conceived
19    and foaled horses and no such horse shall compete in the
20    races limited to Illinois conceived and foaled horses
21    unless registered with the Department of Agriculture. The
22    Department of Agriculture may prescribe such forms as may
23    be necessary to determine the eligibility of such horses.
24    No person shall knowingly prepare or cause preparation of
25    an application for registration of such foals containing
26    false information. A mare (dam) must be in the state at

 

 

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1    least 180 30 days prior to foaling and or remain in the
2    State at least 30 days after at the time of foaling.
3    Beginning with the 1996 breeding season and for foals of
4    1997 and thereafter, a foal conceived in the State of
5    Illinois by transported fresh semen may be eligible for
6    Illinois conceived and foaled registration provided all
7    breeding and foaling requirements are met. The stallion
8    must be qualified for Illinois Standardbred Breeders Fund
9    breeding at the time of conception and the mare must be
10    inseminated within the State of Illinois. The foal must be
11    dropped in Illinois and properly registered with the
12    Department of Agriculture in accordance with this Act.
13        3. Provide that at least a 5 day racing program shall
14    be conducted at the State Fair each year, which program
15    shall include at least the following races limited to
16    Illinois conceived and foaled horses: (a) a two year old
17    Trot and Pace, and Filly Division of each; (b) a three year
18    old Trot and Pace, and Filly Division of each; (c) an aged
19    Trot and Pace, and Mare Division of each.
20        4. Provide for the payment of nominating, sustaining
21    and starting fees for races promoting the sport of harness
22    racing and for the races to be conducted at the State Fair
23    as provided in subsection (j) 3 of this Section provided
24    that the nominating, sustaining and starting payment
25    required from an entrant shall not exceed 2% of the purse
26    of such race. All nominating, sustaining and starting

 

 

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1    payments shall be held for the benefit of entrants and
2    shall be paid out as part of the respective purses for such
3    races. Nominating, sustaining and starting fees shall be
4    held in trust accounts for the purposes as set forth in
5    this Act and in accordance with Section 205-15 of the
6    Department of Agriculture Law (20 ILCS 205/205-15).
7        5. Provide for the registration with the Department of
8    Agriculture of Colt Associations or county fairs desiring
9    to sponsor races at county fairs.
10        6. Provide for the promotion of producing standardbred
11    racehorses by providing a bonus award program for owners of
12    2-year-old horses that win multiple major stakes races that
13    are limited to Illinois conceived and foaled horses.
14    (k) The Department of Agriculture, with the advice and
15assistance of the Illinois Standardbred Breeders Fund Advisory
16Board, may allocate monies for purse supplements for such
17races. In determining whether to allocate money and the amount,
18the Department of Agriculture shall consider factors,
19including but not limited to, the amount of money appropriated
20for the Illinois Standardbred Breeders Fund program, the number
21of races that may occur, and an organizational licensee's purse
22structure. The organizational licensee shall notify the
23Department of Agriculture of the conditions and minimum purses
24for races limited to Illinois conceived and foaled horses to be
25conducted by each organizational licensee conducting a harness
26racing meeting for which purse supplements have been

 

 

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1negotiated.
2    (l) All races held at county fairs and the State Fair which
3receive funds from the Illinois Standardbred Breeders Fund
4shall be conducted in accordance with the rules of the United
5States Trotting Association unless otherwise modified by the
6Department of Agriculture.
7    (m) At all standardbred race meetings held or conducted
8under authority of a license granted by the Board, and at all
9standardbred races held at county fairs which are approved by
10the Department of Agriculture or at the Illinois or DuQuoin
11State Fairs, no one shall jog, train, warm up or drive a
12standardbred horse unless he or she is wearing a protective
13safety helmet, with the chin strap fastened and in place, which
14meets the standards and requirements as set forth in the 1984
15Standard for Protective Headgear for Use in Harness Racing and
16Other Equestrian Sports published by the Snell Memorial
17Foundation, or any standards and requirements for headgear the
18Illinois Racing Board may approve. Any other standards and
19requirements so approved by the Board shall equal or exceed
20those published by the Snell Memorial Foundation. Any
21equestrian helmet bearing the Snell label shall be deemed to
22have met those standards and requirements.
23(Source: P.A. 91-239, eff. 1-1-00.)
 
24    (230 ILCS 5/31.1)  (from Ch. 8, par. 37-31.1)
25    Sec. 31.1. (a) Organization licensees collectively shall

 

 

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1contribute annually to charity the sum of $1,000,000 $750,000
2to non-profit organizations that provide medical and family,
3counseling, and similar services to persons who reside or work
4on the backstretch of Illinois racetracks. These contributions
5shall be collected as follows: (i) no later than July 1st of
6each year the Board shall assess each organization licensee,
7except those tracks which are not within 100 miles of each
8other which tracks shall pay $40,000 $30,000 annually apiece
9into the Board charity fund, that amount which equals $920,000
10$690,000 multiplied by the amount of pari-mutuel wagering
11handled by the organization licensee in the year preceding
12assessment and divided by the total pari-mutuel wagering
13handled by all Illinois organization licensees, except those
14tracks which are not within 100 miles of each other, in the
15year preceding assessment; (ii) notice of the assessed
16contribution shall be mailed to each organization licensee;
17(iii) within thirty days of its receipt of such notice, each
18organization licensee shall remit the assessed contribution to
19the Board. If an organization licensee wilfully fails to so
20remit the contribution, the Board may revoke its license to
21conduct horse racing.
22    (b) No later than October 1st of each year, any qualified
23charitable organization seeking an allotment of contributed
24funds shall submit to the Board an application for those funds,
25using the Board's approved form. No later than December 31st of
26each year, the Board shall distribute all such amounts

 

 

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1collected that year to such charitable organization
2applicants.
3(Source: P.A. 87-110.)
 
4    (230 ILCS 5/32.1)
5    Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
6real estate equalization.
7    (a) In order to encourage new investment in Illinois
8racetrack facilities and mitigate differing real estate tax
9burdens among all racetracks, the licensees affiliated or
10associated with each racetrack that has been awarded live
11racing dates in the current year shall receive an immediate
12pari-mutuel tax credit in an amount equal to the greater of (i)
1350% of the amount of the real estate taxes paid in the prior
14year attributable to that racetrack, or (ii) the amount by
15which the real estate taxes paid in the prior year attributable
16to that racetrack exceeds 60% of the average real estate taxes
17paid in the prior year for all racetracks awarded live horse
18racing meets in the current year.
19    Each year, regardless of whether the organization licensee
20conducted live racing in the year of certification, the Board
21shall certify in writing, prior to December 31, the real estate
22taxes paid in that year for each racetrack and the amount of
23the pari-mutuel tax credit that each organization licensee,
24intertrack wagering licensee, and intertrack wagering location
25licensee that derives its license from such racetrack is

 

 

HB3564- 201 -LRB099 06481 MLM 31222 b

1entitled in the succeeding calendar year. The real estate taxes
2considered under this Section for any racetrack shall be those
3taxes on the real estate parcels and related facilities used to
4conduct a horse race meeting and inter-track wagering at such
5racetrack under this Act. In no event shall the amount of the
6tax credit under this Section exceed the amount of pari-mutuel
7taxes otherwise calculated under this Act. The amount of the
8tax credit under this Section shall be retained by each
9licensee and shall not be subject to any reallocation or
10further distribution under this Act. The Board may promulgate
11emergency rules to implement this Section.
12    (b) Beginning on January 1 following the calendar year
13during which an organization licensee begins conducting
14electronic gaming operations pursuant to an electronic gaming
15license issued under the Illinois Gambling Act, the
16organization licensee shall be ineligible to receive a tax
17credit under this Section.
18(Source: P.A. 91-40, eff. 6-25-99.)
 
19    (230 ILCS 5/34.3 new)
20    Sec. 34.3. Drug testing. The Illinois Racing Board and the
21Department of Agriculture shall jointly establish a program for
22the purpose of conducting drug testing of horses at county
23fairs and shall adopt any rules necessary for enforcement of
24the program. The rules shall include appropriate penalties for
25violations.
 

 

 

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1    (230 ILCS 5/36)   (from Ch. 8, par. 37-36)
2    Sec. 36. (a) Whoever administers or conspires to administer
3to any horse a hypnotic, narcotic, stimulant, depressant or any
4chemical substance which may affect the speed of a horse at any
5time in any race where the purse or any part of the purse is
6made of money authorized by any Section of this Act, except
7those chemical substances permitted by ruling of the Board,
8internally, externally or by hypodermic method in a race or
9prior thereto, or whoever knowingly enters a horse in any race
10within a period of 24 hours after any hypnotic, narcotic,
11stimulant, depressant or any other chemical substance which may
12affect the speed of a horse at any time, except those chemical
13substances permitted by ruling of the Board, has been
14administered to such horse either internally or externally or
15by hypodermic method for the purpose of increasing or retarding
16the speed of such horse shall be guilty of a Class 4 felony.
17The Board shall suspend or revoke such violator's license.
18    (b) The term "hypnotic" as used in this Section includes
19all barbituric acid preparations and derivatives.
20    (c) The term "narcotic" as used in this Section includes
21opium and all its alkaloids, salts, preparations and
22derivatives, cocaine and all its salts, preparations and
23derivatives and substitutes.
24    (d) The provisions of this Section 36 and the treatment
25authorized herein apply to horses entered in and competing in

 

 

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1race meetings as defined in Section 3.07 of this Act and to
2horses entered in and competing at any county fair.
3(Source: P.A. 79-1185.)
 
4    (230 ILCS 5/39.2 new)
5    Sec. 39.2. Prohibition of political contributions from
6certain licensees and applicants.
7    (a) The General Assembly has a compelling interest in
8protecting the integrity of both the electoral process and the
9legislative process by preventing corruption and the
10appearance of corruption which may arise through permitting
11certain political campaign contributions by certain persons
12involved in the horse racing industry and regulated by the
13State. Unlike most other regulated industries, horse racing is
14especially susceptible to corruption and potential criminal
15influence. In Illinois, only licensed horse racing is legal and
16all other such activities are strictly prohibited. Given these
17circumstances, it is imperative to eliminate any potential
18corrupt influence in the horse racing industry and the
19electoral process.
20    Banning political campaign contributions by certain
21persons subject to this Section to State officeholders and
22candidates for such offices and to county and municipal
23officeholders and candidates for such offices in counties and
24municipalities that receive financial benefits from horse
25racing is necessary to prevent corruption and the appearance of

 

 

HB3564- 204 -LRB099 06481 MLM 31222 b

1corruption that may arise when political campaign
2contributions and horse racing that is regulated by the State
3and that confers benefits on counties and municipalities are
4intermingled.
5    (b) As used in this Section:
6    "Affiliated entity" means (i) any corporate parent and each
7operating subsidiary of the business entity applying for or
8holding a license, (ii) each operating subsidiary of the
9corporate parent of the business entity applying for or holding
10a license, (iii) any organization recognized by the United
11States Internal Revenue Service as a tax-exempt organization
12described in Section 501(c) of the Internal Revenue Code of
131986 (or any successor provision of federal tax law)
14established by one or more business entities seeking or holding
15a license, any affiliated entity of such business entity, or
16any affiliated person of such business entity, and (iv) any
17political committee for which the business entity applying for
18or holding a license, or any 501(c) organization described in
19item (iii) related to that business entity, is the sponsoring
20entity, as defined in Section 9-3 of the Election Code. For
21purposes of item (iv), the funding of all business entities
22applying for or holding a license shall be aggregated in
23determining whether such political committee is an affiliated
24entity.
25    "Affiliated person" means (i) any person with any ownership
26interest or distributive share in excess of 1% of any business

 

 

HB3564- 205 -LRB099 06481 MLM 31222 b

1entity applying for or holding a license, (ii) executive
2employees of any such business entity, and (iii) the spouse of
3the persons described in items (i) and (ii).
4    "Business entity" means any entity doing business for
5profit, whether organized as a corporation, partnership, sole
6proprietorship, limited liability company, or otherwise.
7    "Contribution" means a contribution as defined in Section
89-1.4 of the Election Code.
9    "Declared candidate" means a person who has filed a
10statement of candidacy and petition for nomination or election
11in the principal office of the State Board of Elections, or in
12the office of the appropriate election authority for any county
13or municipality in which a race track is located.
14    "Executive employee" means (i) any person who is an officer
15or director or who fulfills duties equivalent to those of an
16officer or director of a business entity applying for or
17holding a license and (ii) any employee of such business entity
18who is required to register under the Lobbyist Registration
19Act.
20    "License" means any organization, inter-track wagering,
21inter-track wagering location, advance deposit wagering or
22concessionaire license issued pursuant to this Act.
23    "Officeholder" means the Governor, Lieutenant Governor,
24Attorney General, Secretary of State, Comptroller, Treasurer,
25member of the General Assembly, or any officeholder in any
26county or municipality in which a race track is located.

 

 

HB3564- 206 -LRB099 06481 MLM 31222 b

1    (c) Any person or business entity applying for or holding a
2license, any affiliated entities or persons of such business
3entity, any horsemen's association, and any entities or persons
4soliciting a contribution or causing a contribution to be made
5on behalf of such person, business entity, or horsemen's
6association, are prohibited from making any contribution to any
7officeholder or declared candidate or any political committee
8affiliated with any officeholder or declared candidate, as
9defined in Section 9-1.8 of the Election Code. This prohibition
10shall commence upon filing of an application for a license and
11shall continue for a period of 2 years after termination,
12suspension or revocation of the license.
13    The Board shall have authority to suspend, revoke, or
14restrict the license and to impose civil penalties of up to
15$100,000 for each violation of this subsection (c). A notice of
16each such violation and the penalty imposed shall be published
17on the Board's Internet website and in the Illinois Register.
18Payments received by the State pursuant to this subsection
19shall be deposited into the General Revenue Fund.
20    Any officeholder or declared candidate or any political
21committee affiliated with any officeholder or declared
22candidate that has received a contribution in violation of this
23subsection (c) shall pay an amount equal to the value of the
24contribution to the State no more than 30 days after notice of
25the violation concerning the contribution appears in the
26Illinois Register. Payments received by the State pursuant to

 

 

HB3564- 207 -LRB099 06481 MLM 31222 b

1this subsection (c) shall be deposited into the General Revenue
2Fund.
3    (d) The Board shall post on its website a list of all
4persons, business entities, horsemen's associations, and
5affiliated entities prohibited from making contributions to
6any officeholder or declared candidate political committee
7pursuant to subsection (c), which list shall be updated and
8published, at a minimum, every 6 months.
9    Any person, business entity, horsemen's association, or
10affiliated entity prohibited from making contributions to any
11officeholder or declared candidate political committee
12pursuant to subsection (c) shall notify the Board within 7 days
13after discovering any necessary change or addition to the
14information relating to that person, business entity,
15horsemen's association, or affiliated entity contained in the
16list.
17    An individual who acts in good faith and in reliance on any
18information contained in the list shall not be subject to any
19penalties or liability imposed for a violation of this Section.
20    (e) If any provision of this Section is held invalid or its
21application to any person or circumstance is held invalid, the
22invalidity of that provision or application does not affect the
23other provisions or applications of this Section that can be
24given effect without the invalid application or provision.
 
25    (230 ILCS 5/40)  (from Ch. 8, par. 37-40)

 

 

HB3564- 208 -LRB099 06481 MLM 31222 b

1    Sec. 40. (a) The imposition of any fine or penalty provided
2in this Act shall not preclude the Board in its rules and
3regulations from imposing a fine or penalty for any other
4action which, in the Board's discretion, is a detriment or
5impediment to horse racing.
6    (b) The Director of Agriculture or his or her authorized
7representative shall impose the following monetary penalties
8and hold administrative hearings as required for failure to
9submit the following applications, lists, or reports within the
10time period, date or manner required by statute or rule or for
11removing a foal from Illinois prior to inspection:
12        (1) late filing of a renewal application for offering
13    or standing stallion for service:
14            (A) if an application is submitted no more than 30
15        days late, $50;
16            (B) if an application is submitted no more than 45
17        days late, $150; or
18            (C) if an application is submitted more than 45
19        days late, if filing of the application is allowed
20        under an administrative hearing, $250;
21        (2) late filing of list or report of mares bred:
22            (A) if a list or report is submitted no more than
23        30 days late, $50;
24            (B) if a list or report is submitted no more than
25        60 days late $150; or
26            (C) if a list or report is submitted more than 60

 

 

HB3564- 209 -LRB099 06481 MLM 31222 b

1        days late, if filing of the list or report is allowed
2        under an administrative hearing, $250;
3        (3) filing an Illinois foaled thoroughbred mare status
4    report after the statutory deadline as provided in
5    subsection (k) of Section 30 of this Act December 31:
6            (A) if a report is submitted no more than 30 days
7        late, $50;
8            (B) if a report is submitted no more than 90 days
9        late, $150;
10            (C) if a report is submitted no more than 150 days
11        late, $250; or
12            (D) if a report is submitted more than 150 days
13        late, if filing of the report is allowed under an
14        administrative hearing, $500;
15        (4) late filing of application for foal eligibility
16    certificate:
17            (A) if an application is submitted no more than 30
18        days late, $50;
19            (B) if an application is submitted no more than 90
20        days late, $150;
21            (C) if an application is submitted no more than 150
22        days late, $250; or
23            (D) if an application is submitted more than 150
24        days late, if filing of the application is allowed
25        under an administrative hearing, $500;
26        (5) failure to report the intent to remove a foal from

 

 

HB3564- 210 -LRB099 06481 MLM 31222 b

1    Illinois prior to inspection, identification and
2    certification by a Department of Agriculture investigator,
3    $50; and
4        (6) if a list or report of mares bred is incomplete,
5    $50 per mare not included on the list or report.
6    Any person upon whom monetary penalties are imposed under
7this Section 3 times within a 5 year period shall have any
8further monetary penalties imposed at double the amounts set
9forth above. All monies assessed and collected for violations
10relating to thoroughbreds shall be paid into the Thoroughbred
11Breeders Fund. All monies assessed and collected for violations
12relating to standardbreds shall be paid into the