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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A BILL FOR

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1 AN ACT concerning gaming.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Findings. The General Assembly makes all of the

5 following 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

2 amended 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

6 or immediate family member living with such person, shall,

7 within a period of one year immediately after termination of

8 State employment, knowingly accept employment or receive

9 compensation or fees for services from a person or entity if

10 the officer, member, or State employee, during the year

11 immediately preceding termination of State employment,

12 participated personally and substantially in the award of State

13 contracts, or the issuance of State contract change orders,

14 with a cumulative value of $25,000 or more to the person or

15 entity, or its parent or subsidiary.

16 (b) No former officer of the executive branch or State

17 employee of the executive branch with regulatory or licensing

18 authority, or spouse or immediate family member living with

19 such person, shall, within a period of one year immediately

20 after termination of State employment, knowingly accept

21 employment or receive compensation or fees for services from a

22 person or entity if the officer or State employee, during the

23 year immediately preceding termination of State employment,

24 participated personally and substantially in making a

25 regulatory or licensing decision that directly applied to the

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1 person or entity, or its parent or subsidiary.

2 (c) Within 6 months after the effective date of this

3 amendatory Act of the 96th General Assembly, each executive

4 branch constitutional officer and legislative leader, the

5 Auditor General, and the Joint Committee on Legislative Support

6 Services shall adopt a policy delineating which State positions

7 under his or her jurisdiction and control, by the nature of

8 their duties, may have the authority to participate personally

9 and substantially in the award of State contracts or in

10 regulatory or licensing decisions. The Governor shall adopt

11 such a policy for all State employees of the executive branch

12 not under the jurisdiction and control of any other executive

13 branch constitutional officer.

14 The policies required under subsection (c) of this Section

15 shall be filed with the appropriate ethics commission

16 established under this Act or, for the Auditor General, with

17 the Office of the Auditor General.

18 (d) Each Inspector General shall have the authority to

19 determine that additional State positions under his or her

20 jurisdiction, not otherwise subject to the policies required by

21 subsection (c) of this Section, are nonetheless subject to the

22 notification requirement of subsection (f) below due to their

23 involvement in the award of State contracts or in regulatory or

24 licensing decisions.

25 (e) The Joint Committee on Legislative Support Services,

26 the Auditor General, and each of the executive branch

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1 constitutional officers and legislative leaders subject to

2 subsection (c) of this Section shall provide written

3 notification to all employees in positions subject to the

4 policies required by subsection (c) or a determination made

5 under subsection (d): (1) upon hiring, promotion, or transfer

6 into the relevant position; and (2) at the time the employee's

7 duties are changed in such a way as to qualify that employee.

8 An employee receiving notification must certify in writing that

9 the person was advised of the prohibition and the requirement

10 to notify the appropriate Inspector General in subsection (f).

11 (f) Any State employee in a position subject to the

12 policies required by subsection (c) or to a determination under

13 subsection (d), but who does not fall within the prohibition of

14 subsection (h) below, who is offered non-State employment

15 during State employment or within a period of one year

16 immediately after termination of State employment shall, prior

17 to accepting such non-State employment, notify the appropriate

18 Inspector General. Within 10 calendar days after receiving

19 notification from an employee in a position subject to the

20 policies required by subsection (c), such Inspector General

21 shall make a determination as to whether the State employee is

22 restricted from accepting such employment by subsection (a) or

23 (b). In making a determination, in addition to any other

24 relevant information, an Inspector General shall assess the

25 effect of the prospective employment or relationship upon

26 decisions referred to in subsections (a) and (b), based on the

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1 totality of the participation by the former officer, member, or

2 State employee in those decisions. A determination by an

3 Inspector General must be in writing, signed and dated by the

4 Inspector General, and delivered to the subject of the

5 determination within 10 calendar days or the person is deemed

6 eligible for the employment opportunity. For purposes of this

7 subsection, "appropriate Inspector General" means (i) for

8 members and employees of the legislative branch, the

9 Legislative Inspector General; (ii) for the Auditor General and

10 employees of the Office of the Auditor General, the Inspector

11 General provided for in Section 30-5 of this Act; and (iii) for

12 executive branch officers and employees, the Inspector General

13 having jurisdiction over the officer or employee. Notice of any

14 determination of an Inspector General and of any such appeal

15 shall be given to the ultimate jurisdictional authority, the

16 Attorney General, and the Executive Ethics Commission.

17 (g) An Inspector General's determination regarding

18 restrictions under subsection (a) or (b) may be appealed to the

19 appropriate Ethics Commission by the person subject to the

20 decision or the Attorney General no later than the 10th

21 calendar day after the date of the determination.

22 On appeal, the Ethics Commission or Auditor General shall

23 seek, accept, and consider written public comments regarding a

24 determination. In deciding whether to uphold an Inspector

25 General's determination, the appropriate Ethics Commission or

26 Auditor General shall assess, in addition to any other relevant

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1 information, the effect of the prospective employment or

2 relationship upon the decisions referred to in subsections (a)

3 and (b), based on the totality of the participation by the

4 former officer, member, or State employee in those decisions.

5 The Ethics Commission shall decide whether to uphold an

6 Inspector General's determination within 10 calendar days or

7 the person is deemed eligible for the employment opportunity.

8 (h) The following officers, members, or State employees

9 shall not, within a period of one year immediately after

10 termination of office or State employment, knowingly accept

11 employment or receive compensation or fees for services from a

12 person or entity if the person or entity or its parent or

13 subsidiary, during the year immediately preceding termination

14 of State employment, was a party to a State contract or

15 contracts with a cumulative value of $25,000 or more involving

16 the officer, member, or State employee's State agency, or was

17 the subject of a regulatory or licensing decision involving the

18 officer, member, or State employee's State agency, regardless

19 of whether he or she participated personally and substantially

20 in the award of the State contract or contracts or the making

21 of 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

13 officers or employees of a regional transit board, as defined

14 in this Act, the phrase "person or entity" does not include:

15 (i) the United States government, (ii) the State, (iii)

16 municipalities, as defined under Article VII, Section 1 of the

17 Illinois Constitution, (iv) units of local government, as

18 defined under Article VII, Section 1 of the Illinois

19 Constitution, 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

24 General are created, one each for the Governor, the Attorney

25 General, the Secretary of State, the Comptroller, and the

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1 Treasurer and one for gaming activities. Each Office shall be

2 under the direction and supervision of an Executive Inspector

3 General and shall be a fully independent office with separate

4 appropriations.

5 (b) The Governor, Attorney General, Secretary of State,

6 Comptroller, and Treasurer shall each appoint an Executive

7 Inspector General, and the Governor shall appoint an Executive

8 Inspector General for gaming activities. Each appointment must

9 be madewithout regard to political affiliation and solely on

10 the basis of integrity and demonstrated ability. Appointments

11 shall be made by and with the advice and consent of the Senate

12 by three-fifths of the elected members concurring by record

13 vote. Any nomination not acted upon by the Senate within 60

14 session days of the receipt thereof shall be deemed to have

15 received the advice and consent of the Senate. If, during a

16 recess of the Senate, there is a vacancy in an office of

17 Executive Inspector General, the appointing authority shall

18 make a temporary appointment until the next meeting of the

19 Senate when the appointing authority shall make a nomination to

20 fill that office. No person rejected for an office of Executive

21 Inspector General shall, except by the Senate's request, be

22 nominated again for that office at the same session of the

23 Senate or be appointed to that office during a recess of that

24 Senate.

25 Nothing in this Article precludes the appointment by the

26 Governor, Attorney General, Secretary of State, Comptroller,

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1 or Treasurer of any other inspector general required or

2 permitted by law. The Governor, Attorney General, Secretary of

3 State, Comptroller, and Treasurer each may appoint an existing

4 inspector general as the Executive Inspector General required

5 by this Article, provided that such an inspector general is not

6 prohibited by law, rule, jurisdiction, qualification, or

7 interest from serving as the Executive Inspector General

8 required by this Article. An appointing authority may not

9 appoint a relative as an Executive Inspector General.

10 Each Executive Inspector General shall have the following

11 qualifications:

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

25 commence upon qualification and shall run through June 30,

26 2008. The initial appointments shall be made within 60 days

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1 after the effective date of this Act.

2 After the initial term, each Executive Inspector General

3 shall serve for 5-year terms commencing on July 1 of the year

4 of appointment and running through June 30 of the fifth

5 following year. An Executive Inspector General may be

6 reappointed to one or more subsequent terms.

7 A vacancy occurring other than at the end of a term shall

8 be filled by the appointing authority only for the balance of

9 the term of the Executive Inspector General whose office is

10 vacant.

11 Terms shall run regardless of whether the position is

12 filled.

13 (c) The Executive Inspector General appointed by the

14 Attorney General shall have jurisdiction over the Attorney

15 General and all officers and employees of, and vendors and

16 others doing business with, State agencies within the

17 jurisdiction of the Attorney General. The Executive Inspector

18 General appointed by the Secretary of State shall have

19 jurisdiction over the Secretary of State and all officers and

20 employees of, and vendors and others doing business with, State

21 agencies within the jurisdiction of the Secretary of State. The

22 Executive Inspector General appointed by the Comptroller shall

23 have jurisdiction over the Comptroller and all officers and

24 employees of, and vendors and others doing business with, State

25 agencies within the jurisdiction of the Comptroller. The

26 Executive Inspector General appointed by the Treasurer shall

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1 have jurisdiction over the Treasurer and all officers and

2 employees of, and vendors and others doing business with, State

3 agencies within the jurisdiction of the Treasurer. The

4 Executive Inspector General appointed by the Governor shall

5 have jurisdiction over (i) the Governor, (ii) the Lieutenant

6 Governor, (iii) all officers and employees of, and vendors and

7 others doing business with, executive branch State agencies

8 under the jurisdiction of the Executive Ethics Commission and

9 not within the jurisdiction of the Attorney General, the

10 Secretary of State, the Comptroller, ~~or~~ the Treasurer, or the

11 Executive Inspector General for gaming activities, and (iv) all

12 board members and employees of the Regional Transit Boards and

13 all vendors and others doing business with the Regional Transit

14 Boards.The Executive Inspector General for gaming activities

15 appointed by the Governor has jurisdiction over the Illinois

16 Gaming Board, all officers and employees of the Illinois Gaming

17 Board, and all activities of the Illinois Gaming Board.

18 The jurisdiction of each Executive Inspector General is to

19 investigate allegations of fraud, waste, abuse, mismanagement,

20 misconduct, nonfeasance, misfeasance, malfeasance, or

21 violations of this Act or violations of other related laws and

22 rules.

23 (d) The compensation for each Executive Inspector General

24 shall be determined by the Executive Ethics Commission and

25 shall be made from appropriations made to the Comptroller for

26 this purpose. Subject to Section 20-45 of this Act, each

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1 Executive Inspector General has full authority to organize his

2 or her Office of the Executive Inspector General, including the

3 employment and determination of the compensation of staff, such

4 as deputies, assistants, and other employees, as

5 appropriations permit. A separate appropriation shall be made

6 for each Office of Executive Inspector General.

7 (e) No Executive Inspector General or employee of the

8 Office of the Executive Inspector General may, during his or

9 her 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

21 position authorized by law that is filled by an appointing

22 authority as provided by law and does not include employment by

23 hiring in the ordinary course of business.

24 (e-1) No Executive Inspector General or employee of the

25 Office of the Executive Inspector General may, for one year

26 after 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

6 be waived by the Executive Ethics Commission.

7 (f) An Executive Inspector General may be removed only for

8 cause and may be removed only by the appointing~~constitutional~~

9 officer. At the time of the removal, the appointing

10 ~~constitutional~~officer must report to the Executive Ethics

11 Commission 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

14 Dependency 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

18 establish a program for public education, research, and

19 training regarding problem and compulsive gambling and the

20 treatment and prevention of problem and compulsive gambling.

21 Subject to specific appropriation for these stated purposes,

22 the 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

13 establish and maintain the program or contract with a private

14 or public entity for the establishment and maintenance of the

15 program. Subject to appropriation, either the Department or the

16 private or public entity shall implement the toll-free

17 telephone number, promote public awareness, and conduct

18 in-service training concerning problem and compulsive

19 gambling.

20 (c) Subject to appropriation, the Department shall produce

21 and supply the signs specified in Section 10.7 of the Illinois

22 Lottery Law, Section 34.1 of the Illinois Horse Racing Act of

23 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1

24 of the Charitable Games Act, and Section 13.1 of the Illinois

25 ~~Riverboat~~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

2 Section 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

7 to a request for qualifications under this Section.

8 "Request for qualifications" means all materials and

9 documents prepared by the Department to solicit the following

10 from 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

18 offeror in response to the request for qualifications,

19 including the identity of any prospective vendor or vendors

20 that the offeror intends to initially engage to assist the

21 offeror in performing its obligations under the management

22 agreement.

23 "Final offeror" means the offeror ultimately selected by

24 the Governor to be the private manager for the Lottery under

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1 subsection (h) of this Section.

2 (b) By September 15, 2010, the Governor shall select a

3 private manager for the total management of the Lottery with

4 integrated functions, such as lottery game design, supply of

5 goods and services, and advertising and as specified in this

6 Section.

7 (c) Pursuant to the terms of this subsection, the

8 Department shall endeavor to expeditiously terminate the

9 existing contracts in support of the Lottery in effect on the

10 effective date of this amendatory Act of the 96th General

11 Assembly in connection with the selection of the private

12 manager. As part of its obligation to terminate these contracts

13 and select the private manager, the Department shall establish

14 a mutually agreeable timetable to transfer the functions of

15 existing contractors to the private manager so that existing

16 Lottery operations are not materially diminished or impaired

17 during the transition. To that end, the Department shall do the

18 following:

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

8 Lottery in effect on the effective date of this amendatory Act

9 of the 96th General Assembly are not subject to termination as

10 provided for in this subsection (c), then the Department may

11 include a provision in the contract with the private manager

12 specifying a mutually agreeable methodology for incorporation.

13 (c-5) The Department shall include provisions in the

14 management agreement whereby the private manager shall, for a

15 fee, and pursuant to a contract negotiated with the Department

16 (the "Employee Use Contract"), utilize the services of current

17 Department employees to assist in the administration and

18 operation of the Lottery. The Department shall be the employer

19 of all such bargaining unit employees assigned to perform such

20 work for the private manager, and such employees shall be State

21 employees, as defined by the Personnel Code. Department

22 employees shall operate under the same employment policies,

23 rules, regulations, and procedures, as other employees of the

24 Department. In addition, neither historical representation

25 rights under the Illinois Public Labor Relations Act, nor

26 existing collective bargaining agreements, shall be disturbed

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1 by the management agreement with the private manager for the

2 management of the Lottery.

3 (d) The management agreement with the private manager shall

4 include 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

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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

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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

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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

6 Department shall select a private manager through a competitive

7 request for qualifications process consistent with Section

8 20-35 of the Illinois Procurement Code, which shall take into

9 account:

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

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1 advisors with significant experience in financial services or

2 the management, operation, and procurement of goods, services,

3 and equipment for a government-run lottery to assist in the

4 preparation of the terms of the request for qualifications and

5 selection of the private manager. Any prospective advisor

6 seeking to provide services under this subsection (f) shall

7 disclose any material business or financial relationship

8 during the past 3 years with any potential offeror, or with a

9 contractor or subcontractor presently providing goods,

10 services, or equipment to the Department to support the

11 Lottery. The Department shall evaluate the material business or

12 financial relationship of each prospective advisor. The

13 Department shall not select any prospective advisor with a

14 substantial business or financial relationship that the

15 Department deems to impair the objectivity of the services to

16 be provided by the prospective advisor. During the course of

17 the advisor's engagement by the Department, and for a period of

18 one year thereafter, the advisor shall not enter into any

19 business or financial relationship with any offeror or any

20 vendor identified to assist an offeror in performing its

21 obligations under the management agreement. Any advisor

22 retained by the Department shall be disqualified from being an

23 offeror. The Department shall not include terms in the request

24 for qualifications that provide a material advantage whether

25 directly or indirectly to any potential offeror, or any

26 contractor or subcontractor presently providing goods,

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1 services, or equipment to the Department to support the

2 Lottery, including terms contained in previous responses to

3 requests for proposals or qualifications submitted to

4 Illinois, another State or foreign government when those terms

5 are uniquely associated with a particular potential offeror,

6 contractor, or subcontractor. The request for proposals

7 offered by the Department on December 22, 2008 as

8 "LOT08GAMESYS" and reference number "22016176" is declared

9 void.

10 (g) The Department shall select at least 2 offerors as

11 finalists to potentially serve as the private manager no later

12 than August 9, 2010. Upon making preliminary selections, the

13 Department shall schedule a public hearing on the finalists'

14 proposals and provide public notice of the hearing at least 7

15 calendar days before the hearing. The notice must include all

16 of 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

25 sufficient time for each finalist to present and explain its

26 proposal to the Department and the Governor or the Governor's

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1 designee, including an opportunity to respond to questions

2 posed by the Department, Governor, or designee and (ii) allow

3 the public and non-selected offerors to comment on the

4 presentations. The Governor or a designee shall attend the

5 public hearing. After the public hearing, the Department shall

6 have 14 calendar days to recommend to the Governor whether a

7 management agreement should be entered into with a particular

8 finalist. After reviewing the Department's recommendation, the

9 Governor may accept or reject the Department's recommendation,

10 and shall select a final offeror as the private manager by

11 publication of a notice in the Illinois Procurement Bulletin on

12 or before September 15, 2010. The Governor shall include in the

13 notice a detailed explanation and the reasons why the final

14 offeror is superior to other offerors and will provide

15 management services in a manner that best achieves the

16 objectives of this Section. The Governor shall also sign the

17 management agreement with the private manager.

18 (i) Any action to contest the private manager selected by

19 the Governor under this Section must be brought within 7

20 calendar days after the publication of the notice of the

21 designation 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

24 manager manages the Lottery in accordance with provisions of

25 this Act, a Lottery conducted by the State, and the State shall

26 not be authorized to sell or transfer the Lottery to a third

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1 party.

2 (k) Any tangible personal property used exclusively in

3 connection with the lottery that is owned by the Department and

4 leased to the private manager shall be owned by the Department

5 in the name of the State and shall be considered to be public

6 property devoted to an essential public and governmental

7 function.

8 (l) The Department may exercise any of its powers under

9 this Section or any other law as necessary or desirable for the

10 execution of the Department's powers under this Section.

11 (m) Neither this Section nor any management agreement

12 entered into under this Section prohibits the General Assembly

13 from authorizing forms of gambling that are not in direct

14 competition with the Lottery. The forms of gambling authorized

15 by this amendatory Act of the 99th General Assembly constitute

16 authorized forms of gambling that are not in direct competition

17 with the Lottery.

18 (n) The private manager shall be subject to a complete

19 investigation in the third, seventh, and tenth years of the

20 agreement (if the agreement is for a 10-year term) by the

21 Department in cooperation with the Auditor General to determine

22 whether the private manager has complied with this Section and

23 the management agreement. The private manager shall bear the

24 cost of an investigation or reinvestigation of the private

25 manager under this subsection.

26 (o) The powers conferred by this Section are in addition

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1 and supplemental to the powers conferred by any other law. If

2 any other law or rule is inconsistent with this Section,

3 including, but not limited to, provisions of the Illinois

4 Procurement Code, then this Section controls as to any

5 management agreement entered into under this Section. This

6 Section and any rules adopted under this Section contain full

7 and complete authority for a management agreement between the

8 Department and a private manager. No law, procedure,

9 proceeding, publication, notice, consent, approval, order, or

10 act by the Department or any other officer, Department, agency,

11 or instrumentality of the State or any political subdivision is

12 required for the Department to enter into a management

13 agreement under this Section. This Section contains full and

14 complete authority for the Department to approve any contracts

15 entered into by a private manager with a vendor providing

16 goods, services, or both goods and services to the private

17 manager under the terms of the management agreement, including

18 subcontractors of such vendors.

19 Upon receipt of a written request from the Chief

20 Procurement Officer, the Department shall provide to the Chief

21 Procurement Officer a complete and un-redacted copy of the

22 management agreement or any contract that is subject to the

23 Department's approval authority under this subsection (o). The

24 Department shall provide a copy of the agreement or contract to

25 the Chief Procurement Officer in the time specified by the

26 Chief Procurement Officer in his or her written request, but no

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1 later than 5 business days after the request is received by the

2 Department. The Chief Procurement Officer must retain any

3 portions of the management agreement or of any contract

4 designated by the Department as confidential, proprietary, or

5 trade secret information in complete confidence pursuant to

6 subsection (g) of Section 7 of the Freedom of Information Act.

7 The Department shall also provide the Chief Procurement Officer

8 with reasonable advance written notice of any contract that is

9 pending Department approval.

10 Notwithstanding any other provision of this Section to the

11 contrary, the Chief Procurement Officer shall adopt

12 administrative rules, including emergency rules, to establish

13 a procurement process to select a successor private manager if

14 a private management agreement has been terminated. The

15 selection process shall at a minimum take into account the

16 criteria set forth in items (1) through (4) of subsection (e)

17 of this Section and may include provisions consistent with

18 subsections (f), (g), (h), and (i) of this Section. The Chief

19 Procurement Officer shall also implement and administer the

20 adopted selection process upon the termination of a private

21 management agreement. The Department, after the Chief

22 Procurement Officer certifies that the procurement process has

23 been followed in accordance with the rules adopted under this

24 subsection (o), shall select a final offeror as the private

25 manager and sign the management agreement with the private

26 manager.

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1 Except as provided in Sections 21.2, 21.5, 21.6, 21.7,

2 21.8, and 21.9, the Department shall distribute all proceeds of

3 lottery tickets and shares sold in the following priority and

4 manner:

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

22 reporting 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;

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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;

16 98-649, eff. 6-16-14.)

17 Section 20. The Department of Revenue Law of the Civil

18 Administrative Code of Illinois is amended by changing Section

19 2505-305 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

23 to conduct all investigations, searches, seizures, arrests,

24 and other duties imposed under the provisions of any law

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1 administered by the Department. Except as provided in

2 subsection (c), these investigators have and may exercise all

3 the powers of peace officers solely for the purpose of

4 enforcing taxing measures administered by the Department.

5 (b) The Director must authorize to each investigator

6 employed under this Section and to any other employee of the

7 Department exercising the powers of a peace officer a distinct

8 badge that, on its face, (i) clearly states that the badge is

9 authorized by the Department and (ii) contains a unique

10 identifying number. No other badge shall be authorized by the

11 Department.

12 (c) The Department may enter into agreements with the

13 Illinois Gaming Board providing that investigators appointed

14 under this Section shall exercise the peace officer powers set

15 forth in paragraph (20.6) of subsection (c) of Section 5 of the

16 Illinois ~~Riverboat~~Gambling Act.

17 (Source: P.A. 96-37, eff. 7-13-09.)

18 Section 25. The State Finance Act is amended by adding

19 Sections 5.866 and 6z-101 and by changing Sections 5d and 6z-45

20 as 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)

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1 Sec. 5d. State Construction Account Fund.

2 (a) Except as provided in subsection (b) of this Section or

3 ~~by~~Section 5e of this Act, the State Construction Account Fund

4 shall be used exclusively for the construction, reconstruction

5 and maintenance of the State maintained highway system. Except

6 as provided by Section 5e of this Act, none of the money

7 deposited in the State Construction Account Fund shall be used

8 to pay the cost of administering the Motor Fuel Tax Law as now

9 or hereafter amended, nor be appropriated for use by the

10 Department of Transportation to pay the cost of its operations

11 or administration, nor be used in any manner for the payment of

12 regular or contractual employees of the State, nor be

13 transferred or allocated by the Comptroller and Treasurer or be

14 otherwise used, except for the sole purpose of construction,

15 reconstruction and maintenance of the State maintained highway

16 system as the Illinois General Assembly shall provide by

17 appropriation from this fund. Beginning with the month

18 immediately following the effective date of this amendatory Act

19 of 1985, investment income which is attributable to the

20 investment of moneys of the State Construction Account Fund

21 shall be retained in that fund for the uses specified in this

22 Section.

23 (b) None of the money deposited into the State Construction

24 Account Fund pursuant to subsection (c-40) of Section 13 of the

25 Illinois Gambling Act shall be used for the construction,

26 reconstruction, or maintenance of highways located within the

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1 City 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

6 fund in the State Treasury.

7 In addition to any other deposits authorized by law,

8 beginning January 1, 2000, on the first day of each month, or

9 as soon thereafter as may be practical, the State Treasurer and

10 State Comptroller shall transfer the sum of $5,000,000 from the

11 General Revenue Fund to the School Infrastructure Fund, except

12 that, notwithstanding any other provision of law, and in

13 addition to any other transfers that may be provided for by

14 law, before June 30, 2012, the Comptroller and the Treasurer

15 shall transfer $45,000,000 from the General Revenue Fund into

16 the School Infrastructure Fund, and, for fiscal year 2013 only,

17 the Treasurer and the Comptroller shall transfer $1,250,000

18 from the General Revenue Fund to the School Infrastructure Fund

19 on the first day of each month; provided, however, that no such

20 transfers shall be made from July 1, 2001 through June 30,

21 2003.

22 (b) Subject to the transfer provisions set forth below,

23 money in the School Infrastructure Fund shall, if and when the

24 State of Illinois incurs any bonded indebtedness for the

25 construction of school improvements under the School

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1 Construction Law, be set aside and used for the purpose of

2 paying and discharging annually the principal and interest on

3 that bonded indebtedness then due and payable, and for no other

4 purpose.

5 In addition to other transfers to the General Obligation

6 Bond Retirement and Interest Fund made pursuant to Section 15

7 of the General Obligation Bond Act, upon each delivery of bonds

8 issued for construction of school improvements under the School

9 Construction Law, the State Comptroller shall compute and

10 certify to the State Treasurer the total amount of principal

11 of, interest on, and premium, if any, on such bonds during the

12 then current and each succeeding fiscal year. With respect to

13 the interest payable on variable rate bonds, such

14 certifications shall be calculated at the maximum rate of

15 interest that may be payable during the fiscal year, after

16 taking into account any credits permitted in the related

17 indenture or other instrument against the amount of such

18 interest required to be appropriated for that period.

19 On or before the last day of each month, the State

20 Treasurer and State Comptroller shall transfer from the School

21 Infrastructure Fund to the General Obligation Bond Retirement

22 and Interest Fund an amount sufficient to pay the aggregate of

23 the principal of, interest on, and premium, if any, on the

24 bonds payable on their next payment date, divided by the number

25 of monthly transfers occurring between the last previous

26 payment date (or the delivery date if no payment date has yet

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1 occurred) and the next succeeding payment date. Interest

2 payable on variable rate bonds shall be calculated at the

3 maximum rate of interest that may be payable for the relevant

4 period, after taking into account any credits permitted in the

5 related indenture or other instrument against the amount of

6 such interest required to be appropriated for that period.

7 Interest for which moneys have already been deposited into the

8 capitalized interest account within the General Obligation

9 Bond Retirement and Interest Fund shall not be included in the

10 calculation of the amounts to be transferred under this

11 subsection.

12 (b-5) The money deposited into the School Infrastructure

13 Fund from transfers pursuant to subsections (c-30) and (c-35)

14 of Section 13 of the Illinois ~~Riverboat~~ Gambling Act shall be

15 applied, 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

18 after payments made pursuant to subsections (b) and (b-5) of

19 this Section shall, subject to appropriation, be used as

20 follows:

21 First - to make 3 payments to the School Technology

22 Revolving 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

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1 Education and the Capital Development Board in administering

2 programs under the School Construction Law, the total expenses

3 not to exceed $1,200,000 in any fiscal year.

4 Third - to pay any amounts due for grants for school

5 construction projects and debt service under the School

6 Construction Law.

7 Fourth - to pay any amounts due for grants for school

8 maintenance 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

13 special fund in the State treasury.

14 (b) The revenues in the Fund shall be used, subject to

15 appropriation, by the Comptroller for the purpose of (i)

16 providing appropriations to the Illinois Gaming Board for the

17 administration and enforcement of the Illinois Gambling Act,

18 (ii) providing appropriations to the Illinois Racing Board for

19 the administration and enforcement of the Illinois Horse Racing

20 Act of 1975, and (iii) payment of vouchers that are outstanding

21 for more than 60 days. Whenever practical, the Comptroller must

22 prioritize voucher payments for expenses related to medical

23 assistance under the Illinois Public Aid Code, the Children's

24 Health Insurance Program Act, and the Covering ALL KIDS Health

25 Insurance Act.

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1 (c) The Fund shall consist of fee revenues received

2 pursuant to subsection (e-10) of Section 7 and subsections (b),

3 (c), and (d) of Section 7.7 of the Illinois Gambling Act. All

4 interest earned on moneys in the Fund shall be deposited into

5 the Fund.

6 (d) The Fund shall not be subject to administrative charges

7 or chargebacks, including, but not limited to, those authorized

8 under Section 8h of this Act.

9 Section 27. The General Obligation Bond Act is amended by

10 changing 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

13 authorized to issue, sell and provide for the retirement of

14 General Obligation Bonds of the State of Illinois for the

15 categories and specific purposes expressed in Sections 2

16 through 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

19 this 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

22 issued and sold in accordance with the Baccalaureate Savings

23 Act in the form of General Obligation College Savings Bonds.

24 Of the total amount of Bonds authorized in this Act, up to

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1 $300,000,000 in aggregate original principal amount may be

2 issued and sold in accordance with the Retirement Savings Act

3 in the form of General Obligation Retirement Savings Bonds.

4 Of the total amount of Bonds authorized in this Act, the

5 additional $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

8 solely as provided in Section 7.2.

9 The issuance and sale of Bonds pursuant to the General

10 Obligation Bond Act is an economical and efficient method of

11 financing the long-term capital needs of the State. This Act

12 will permit the issuance of a multi-purpose General Obligation

13 Bond with uniform terms and features. This will not only lower

14 the cost of registration but also reduce the overall cost of

15 issuing debt by improving the marketability of Illinois General

16 Obligation Bonds.

17 (Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;

18 97-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.

19 8-16-13; 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,

23 development, construction, reconstruction, improvement,

24 financing, architectural planning and installation of capital

25 facilities within the State, consisting of buildings,

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1 structures, durable equipment, land, interests in land, and the

2 costs associated with the purchase and implementation of

3 information technology, including but not limited to the

4 purchase of hardware and software, for the following specific

5 purposes:

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;

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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

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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

11 used for the acquisition, installation, alteration,

12 construction, or reconstruction of capital facilities and for

13 the purchase of equipment for the purpose of major capital

14 improvements which will reduce energy consumption in State

15 buildings or facilities.

16 (Source: P.A. 98-94, eff. 7-17-13.)

17 Section 30. The Illinois Income Tax Act is amended by

18 changing 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

22 imposed on every individual, corporation, trust and estate for

23 each taxable year ending after July 31, 1969 on the privilege

24 of earning or receiving income in or as a resident of this

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1 State. Such tax shall be in addition to all other occupation or

2 privilege taxes imposed by this State or by any municipal

3 corporation or political subdivision thereof.

4 (b) Rates. The tax imposed by subsection (a) of this

5 Section shall be determined as follows, except as adjusted by

6 subsection (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

25 provisions of Section 201.5.

26 (b-5) Surcharge; sale or exchange of assets, properties,

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1 and intangibles of electronic gaming licensees. For each of

2 taxable years 2015 through 2023, a surcharge is imposed on all

3 taxpayers on income arising from the sale or exchange of

4 capital assets, depreciable business property, real property

5 used in the trade or business, and Section 197 intangibles (i)

6 of an organization licensee under the Illinois Horse Racing Act

7 of 1975 and (ii) of an electronic gaming licensee under the

8 Illinois Gambling Act. The amount of the surcharge is equal to

9 the amount of federal income tax liability for the taxable year

10 attributable to those sales and exchanges. The surcharge

11 imposed 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

19 license, or race track property by a person other than the

20 initial licensee to receive the electronic gaming license is

21 not subject to a surcharge. The Department shall adopt rules

22 necessary to implement and administer this subsection.

23 (c) Personal Property Tax Replacement Income Tax.

24 Beginning on July 1, 1979 and thereafter, in addition to such

25 income tax, there is also hereby imposed the Personal Property

26 Tax Replacement Income Tax measured by net income on every

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1 corporation (including Subchapter S corporations), partnership

2 and trust, for each taxable year ending after June 30, 1979.

3 Such taxes are imposed on the privilege of earning or receiving

4 income in or as a resident of this State. The Personal Property

5 Tax Replacement Income Tax shall be in addition to the income

6 tax imposed by subsections (a) and (b) of this Section and in

7 addition to all other occupation or privilege taxes imposed by

8 this State or by any municipal corporation or political

9 subdivision thereof.

10 (d) Additional Personal Property Tax Replacement Income

11 Tax Rates. The personal property tax replacement income tax

12 imposed by this subsection and subsection (c) of this Section

13 in the case of a corporation, other than a Subchapter S

14 corporation and except as adjusted by subsection (d-1), shall

15 be an additional amount equal to 2.85% of such taxpayer's net

16 income for the taxable year, except that beginning on January

17 1, 1981, and thereafter, the rate of 2.85% specified in this

18 subsection shall be reduced to 2.5%, and in the case of a

19 partnership, trust or a Subchapter S corporation shall be an

20 additional amount equal to 1.5% of such taxpayer's net income

21 for the taxable year.

22 (d-1) Rate reduction for certain foreign insurers. In the

23 case of a foreign insurer, as defined by Section 35A-5 of the

24 Illinois Insurance Code, whose state or country of domicile

25 imposes on insurers domiciled in Illinois a retaliatory tax

26 (excluding any insurer whose premiums from reinsurance assumed

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1 are 50% or more of its total insurance premiums as determined

2 under paragraph (2) of subsection (b) of Section 304, except

3 that for purposes of this determination premiums from

4 reinsurance do not include premiums from inter-affiliate

5 reinsurance arrangements), beginning with taxable years ending

6 on or after December 31, 1999, the sum of the rates of tax

7 imposed by subsections (b) and (d) shall be reduced (but not

8 increased) to the rate at which the total amount of tax imposed

9 under this Act, net of all credits allowed under this Act,

10 shall equal (i) the total amount of tax that would be imposed

11 on the foreign insurer's net income allocable to Illinois for

12 the taxable year by such foreign insurer's state or country of

13 domicile if that net income were subject to all income taxes

14 and taxes measured by net income imposed by such foreign

15 insurer's state or country of domicile, net of all credits

16 allowed or (ii) a rate of zero if no such tax is imposed on such

17 income by the foreign insurer's state of domicile. For the

18 purposes of this subsection (d-1), an inter-affiliate includes

19 a 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

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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

20 Section 250.

21 (e) Investment credit. A taxpayer shall be allowed a credit

22 against the Personal Property Tax Replacement Income Tax for

23 investment 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

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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

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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

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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

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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

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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

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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

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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

7 Redevelopment 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

17 Tax. For tax years ending prior to December 31, 2003, a credit

18 shall 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

21 multiplying the tax imposed by subsections (c) and (d) of this

22 Section by a fraction, the numerator of which is base income

23 allocable to Illinois and the denominator of which is Illinois

24 base income, and further multiplying the product by the tax

25 rate 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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1 subsection which is unused in the year the credit is computed

2 because it exceeds the tax liability imposed by subsections (a)

3 and (b) for that year (whether it exceeds the original

4 liability or the liability as later amended) may be carried

5 forward and applied to the tax liability imposed by subsections

6 (a) and (b) of the 5 taxable years following the excess credit

7 year, provided that no credit may be carried forward to any

8 year ending on or after December 31, 2003. This credit shall be

9 applied first to the earliest year for which there is a

10 liability. If there is a credit under this subsection from more

11 than one tax year that is available to offset a liability the

12 earliest credit arising under this subsection shall be applied

13 first.

14 If, during any taxable year ending on or after December 31,

15 1986, the tax imposed by subsections (c) and (d) of this

16 Section for which a taxpayer has claimed a credit under this

17 subsection (i) is reduced, the amount of credit for such tax

18 shall also be reduced. Such reduction shall be determined by

19 recomputing the credit to take into account the reduced tax

20 imposed by subsections (c) and (d). If any portion of the

21 reduced amount of credit has been carried to a different

22 taxable year, an amended return shall be filed for such taxable

23 year to reduce the amount of credit claimed.

24 (j) Training expense credit. Beginning with tax years

25 ending on or after December 31, 1986 and prior to December 31,

26 2003, a taxpayer shall be allowed a credit against the tax

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1 imposed by subsections (a) and (b) under this Section for all

2 amounts paid or accrued, on behalf of all persons employed by

3 the taxpayer in Illinois or Illinois residents employed outside

4 of Illinois by a taxpayer, for educational or vocational

5 training in semi-technical or technical fields or semi-skilled

6 or skilled fields, which were deducted from gross income in the

7 computation of taxable income. The credit against the tax

8 imposed by subsections (a) and (b) shall be 1.6% of such

9 training expenses. For partners, shareholders of subchapter S

10 corporations, and owners of limited liability companies, if the

11 liability company is treated as a partnership for purposes of

12 federal and State income taxation, there shall be allowed a

13 credit under this subsection (j) to be determined in accordance

14 with the determination of income and distributive share of

15 income under Sections 702 and 704 and subchapter S of the

16 Internal Revenue Code.

17 Any credit allowed under this subsection which is unused in

18 the year the credit is earned may be carried forward to each of

19 the 5 taxable years following the year for which the credit is

20 first computed until it is used. This credit shall be applied

21 first to the earliest year for which there is a liability. If

22 there is a credit under this subsection from more than one tax

23 year that is available to offset a liability the earliest

24 credit arising under this subsection shall be applied first. No

25 carryforward credit may be claimed in any tax year ending on or

26 after December 31, 2003.

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1 (k) Research and development credit. For tax years ending

2 after July 1, 1990 and prior to December 31, 2003, and

3 beginning again for tax years ending on or after December 31,

4 2004, and ending prior to January 1, 2016, a taxpayer shall be

5 allowed a credit against the tax imposed by subsections (a) and

6 (b) of this Section for increasing research activities in this

7 State. The credit allowed against the tax imposed by

8 subsections (a) and (b) shall be equal to 6 1/2% of the

9 qualifying expenditures for increasing research activities in

10 this State. For partners, shareholders of subchapter S

11 corporations, and owners of limited liability companies, if the

12 liability company is treated as a partnership for purposes of

13 federal and State income taxation, there shall be allowed a

14 credit under this subsection to be determined in accordance

15 with the determination of income and distributive share of

16 income under Sections 702 and 704 and subchapter S of the

17 Internal Revenue Code.

18 For purposes of this subsection, "qualifying expenditures"

19 means the qualifying expenditures as defined for the federal

20 credit for increasing research activities which would be

21 allowable under Section 41 of the Internal Revenue Code and

22 which are conducted in this State, "qualifying expenditures for

23 increasing research activities in this State" means the excess

24 of qualifying expenditures for the taxable year in which

25 incurred over qualifying expenditures for the base period,

26 "qualifying expenditures for the base period" means the average

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1 of the qualifying expenditures for each year in the base

2 period, and "base period" means the 3 taxable years immediately

3 preceding the taxable year for which the determination is being

4 made.

5 Any credit in excess of the tax liability for the taxable

6 year may be carried forward. A taxpayer may elect to have the

7 unused credit shown on its final completed return carried over

8 as a credit against the tax liability for the following 5

9 taxable years or until it has been fully used, whichever occurs

10 first; provided that no credit earned in a tax year ending

11 prior to December 31, 2003 may be carried forward to any year

12 ending on or after December 31, 2003.

13 If an unused credit is carried forward to a given year from

14 2 or more earlier years, that credit arising in the earliest

15 year will be applied first against the tax liability for the

16 given year. If a tax liability for the given year still

17 remains, the credit from the next earliest year will then be

18 applied, and so on, until all credits have been used or no tax

19 liability for the given year remains. Any remaining unused

20 credit or credits then will be carried forward to the next

21 following year in which a tax liability is incurred, except

22 that no credit can be carried forward to a year which is more

23 than 5 years after the year in which the expense for which the

24 credit is given was incurred.

25 No inference shall be drawn from this amendatory Act of the

26 91st General Assembly in construing this Section for taxable

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1 years 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

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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

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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

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1 ending after December 31, 1999, a taxpayer who is the custodian

2 of one or more qualifying pupils shall be allowed a credit

3 against the tax imposed by subsections (a) and (b) of this

4 Section for qualified education expenses incurred on behalf of

5 the qualifying pupils. The credit shall be equal to 25% of

6 qualified education expenses, but in no event may the total

7 credit under this subsection claimed by a family that is the

8 custodian of qualifying pupils exceed $500. In no event shall a

9 credit under this subsection reduce the taxpayer's liability

10 under this Act to less than zero. This subsection is exempt

11 from the provisions of Section 250 of this Act.

12 For purposes of this subsection:

13 "Qualifying pupils" means individuals who (i) are

14 residents of the State of Illinois, (ii) are under the age of

15 21 at the close of the school year for which a credit is

16 sought, and (iii) during the school year for which a credit is

17 sought were full-time pupils enrolled in a kindergarten through

18 twelfth grade education program at any school, as defined in

19 this subsection.

20 "Qualified education expense" means the amount incurred on

21 behalf of a qualifying pupil in excess of $250 for tuition,

22 book fees, and lab fees at the school in which the pupil is

23 enrolled during the regular school year.

24 "School" means any public or nonpublic elementary or

25 secondary school in Illinois that is in compliance with Title

26 VI of the Civil Rights Act of 1964 and attendance at which

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1 satisfies the requirements of Section 26-1 of the School Code,

2 except that nothing shall be construed to require a child to

3 attend any particular public or nonpublic school to qualify for

4 the credit under this Section.

5 "Custodian" means, with respect to qualifying pupils, an

6 Illinois resident who is a parent, the parents, a legal

7 guardian, or the legal guardians of the qualifying pupils.

8 (n) River Edge Redevelopment Zone site remediation tax

9 credit.

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

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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

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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

20 of Medical Cannabis Pilot Program, a surcharge is imposed on

21 all taxpayers on income arising from the sale or exchange of

22 capital assets, depreciable business property, real property

23 used in the trade or business, and Section 197 intangibles of

24 an organization registrant under the Compassionate Use of

25 Medical Cannabis Pilot Program Act. The amount of the surcharge

26 is equal to the amount of federal income tax liability for the

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1 taxable year attributable to those sales and exchanges. The

2 surcharge 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,

12 eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,

13 eff. 7-16-14.)

14 Section 35. The Joliet Regional Port District Act is

15 amended 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

18 any other provision of this Act, the District may not regulate

19 the operation, conduct, or navigation of any riverboat gambling

20 casino licensed under the Illinois ~~Riverboat~~Gambling Act, and

21 the District may not license, tax, or otherwise levy any

22 assessment of any kind on any riverboat gambling casino

23 licensed under the Illinois ~~Riverboat~~Gambling Act. The General

24 Assembly declares that the powers to regulate the operation,

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1 conduct, and navigation of riverboat gambling casinos and to

2 license, tax, and levy assessments upon riverboat gambling

3 casinos are exclusive powers of the State of Illinois and the

4 Illinois Gaming Board as provided in theIllinois ~~Riverboat~~

5 Gambling Act.

6 (Source: P.A. 87-1175.)

7 Section 40. The Consumer Installment Loan Act is amended by

8 changing 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

12 may maintain a limited purpose branch for the sole purpose of

13 making loans as permitted by this Act. A limited purpose branch

14 may include an automatic loan machine. No other activity shall

15 be conducted at the site, including but not limited to,

16 accepting payments, servicing the accounts, or collections.

17 (b) The licensee must submit an application for a limited

18 purpose branch to the Director on forms prescribed by the

19 Director with an application fee of $300. The approval for the

20 limited purpose branch must be renewed concurrently with the

21 renewal 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

24 purpose branch's transactions shall be maintained at the

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1 licensee's licensed location. The licensee shall notify the

2 Director of the licensed location at which the books, accounts,

3 records, and files shall be maintained.

4 (d) The licensee shall prominently display at the limited

5 purpose branch the address and telephone number of the

6 licensee's licensed location.

7 (e) No other business shall be conducted at the site of the

8 limited purpose branch unless authorized by the Director.

9 (f) The Director shall make and enforce reasonable rules

10 for the conduct of a limited purpose branch.

11 (g) A limited purpose branch may not be located within

12 1,000 feet of a facility operated by an inter-track wagering

13 licensee or an organization licensee subject to the Illinois

14 Horse Racing Act of 1975, on a riverboator in a casino subject

15 to theIllinois ~~Riverboat~~ Gambling Act, or within 1,000 feet of

16 the location at which the riverboat docksor within 1,000 feet

17 of a casino.

18 (Source: P.A. 90-437, eff. 1-1-98.)

19 Section 45. The Illinois Horse Racing Act of 1975 is

20 amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 19, 20,

21 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, 54, and

22 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,

23 34.3, 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

2 benefit the people of the State of Illinois byencouraging the

3 breeding and production of race horses,assisting economic

4 development and promoting Illinois tourism. The General

5 Assembly finds and declares it to be the public policy of the

6 State of Illinois to:

7 (a) support and enhance Illinois' horse racing industry,

8 which is a significant component within the agribusiness

9 industry;

10 (b) ensure that Illinois' horse racing industry remains

11 competitive with neighboring states;

12 (c) stimulate growth within Illinois' horse racing

13 industry, thereby encouraging new investment and development

14 to produce additional tax revenues and to create additional

15 jobs;

16 (d) promote the further growth of tourism;

17 (e) encourage the breeding of thoroughbred and

18 standardbred horses in this State; and

19 (f) ensure that public confidence and trust in the

20 credibility and integrity of racing operations and the

21 regulatory 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

25 receiving an organization license from the Board to conduct a

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1 race meeting or meetings. With respect only to electronic

2 gaming, "organization licensee" includes the authorization for

3 an electronic gaming license under subsection (a) of Section 56

4 of 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

8 system of wagering" means a form of wagering on the outcome of

9 horse races in which wagers are made in various denominations

10 on a horse or horses and all wagers for each race are pooled

11 and held by a licensee for distribution in a manner approved by

12 the Board. "Pari-mutuel system of wagering" does not include

13 wagering on historic races. Wagers may be placed via any method

14 or 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

18 receipts" means the gross receipts less winnings paid to

19 wagerers.

20 (230 ILCS 5/3.32 new)

21 Sec. 3.32. Gross receipts. "Gross receipts" means the total

22 amount of money exchanged for the purchase of chips, tokens, or

23 electronic cards by riverboat or casino patrons or electronic

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1 gaming patrons.

2 (230 ILCS 5/3.33 new)

3 Sec. 3.33. Electronic gaming. "Electronic gaming" means

4 slot machine gambling, video game of chance gambling, or

5 gambling with electronic gambling games as defined in the

6 Illinois Gambling Act or defined by the Illinois Gaming Board

7 that is conducted at a race track pursuant to an electronic

8 gaming license.

9 (230 ILCS 5/3.35 new)

10 Sec. 3.35. Electronic gaming license. "Electronic gaming

11 license" means a license issued by the Illinois Gaming Board

12 under Section 7.7 of the Illinois Gambling Act authorizing

13 electronic gaming at an electronic gaming facility.

14 (230 ILCS 5/3.36 new)

15 Sec. 3.36. Electronic gaming facility. "Electronic gaming

16 facility" means that portion of an organization licensee's race

17 track 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

21 continue to be a member of the Board if the person or any

22 member of their immediate family is a member of the Board of

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1 Directors, employee, or financially interested in any of the

2 following: (i) any licensee or other person who has applied for

3 racing dates to the Board, or the operations thereof including,

4 but not limited to, concessions, data processing, track

5 maintenance, track security, and pari-mutuel operations,

6 located, scheduled, or doing business within the State of

7 Illinois, (ii) any race horse competing at a meeting under the

8 Board's jurisdiction, or (iii) any licensee under the Illinois

9 Gambling Act. ~~No person shall be appointed a member of the~~

10 ~~Board or continue to be a member of the Board who is (or any~~

11 ~~member of whose family is) a member of the Board of Directors~~

12 ~~of, or who is a person financially interested in, any licensee~~

13 ~~or other person who has applied for racing dates to the Board,~~

14 ~~or the operations thereof including, but not limited to,~~

15 ~~concessions, data processing, track maintenance, track~~

16 ~~security and pari-mutuel operations, located, scheduled or~~

17 ~~doing business within the State of Illinois, or in any race~~

18 ~~horse competing at a meeting under the Board's jurisdiction. No~~

19 ~~Board member shall hold any other public office for which he~~

20 ~~shall receive compensation other than necessary travel or other~~

21 ~~incidental expenses.~~

22 (b) No person shall be a member of the Board who is not of

23 good moral character or who has been convicted of, or is under

24 indictment for, a felony under the laws of Illinois or any

25 other state, or the United States.

26 (c) No member of the Board or employee shall engage in any

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1 political activity.

2 For the purposes of this subsection (c):

3 "Political activity" means any activity in support of or in

4 connection with any campaign for State or local elective office

5 or any political organization, but does not include activities

6 (i) relating to the support or opposition of any executive,

7 legislative, or administrative action (as those terms are

8 defined in Section 2 of the Lobbyist Registration Act), (ii)

9 relating to collective bargaining, or (iii) that are otherwise

10 in furtherance of the person's official State duties or

11 governmental and public service functions.

12 "Political organization" means a party, committee,

13 association, fund, or other organization (whether or not

14 incorporated) that is required to file a statement of

15 organization with the State Board of Elections or county clerk

16 under Section 9-3 of the Election Code, but only with regard to

17 those activities that require filing with the State Board of

18 Elections or county clerk.

19 (d) Board members and employees may not engage in

20 communications or any activity that may cause or have the

21 appearance of causing a conflict of interest. A conflict of

22 interest exists if a situation influences or creates the

23 appearance that it may influence judgment or performance of

24 regulatory duties and responsibilities. This prohibition shall

25 extend to any act identified by Board action that, in the

26 judgment of the Board, could represent the potential for or the

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1 appearance of a conflict of interest.

2 (e) Board members and employees may not accept any gift,

3 gratuity, service, compensation, travel, lodging, or thing of

4 value, with the exception of unsolicited items of an incidental

5 nature, from any person, corporation, limited liability

6 company, or entity doing business with the Board.

7 (f) A Board member or employee shall not use or attempt to

8 use his or her official position to secure, or attempt to

9 secure, any privilege, advantage, favor, or influence for

10 himself or herself or others. No Board member or employee,

11 within a period of one year immediately preceding nomination by

12 the Governor or employment, shall have been employed by or

13 received compensation or fees for services from a person or

14 entity, or its parent or affiliate, that has engaged in

15 business with the Board, a licensee under this Act, or a

16 licensee under the Illinois Gambling Act. In addition, all

17 Board members and employees are subject to the restrictions set

18 forth in Section 5-45 of the State Officials and Employees

19 Ethics 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

23 proper to fully and effectively execute the provisions of this

24 Act, including, but not limited to, the following:

25 (a) The Board is vested with jurisdiction and supervision

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1 over all race meetings in this State, over all licensees doing

2 business in this State, over all occupation licensees, and over

3 all persons on the facilities of any licensee. Such

4 jurisdiction shall include the power to issue licenses to the

5 Illinois Department of Agriculture authorizing the pari-mutuel

6 system of wagering on harness and Quarter Horse races held (1)

7 at the Illinois State Fair in Sangamon County, and (2) at the

8 DuQuoin State Fair in Perry County. The jurisdiction of the

9 Board shall also include the power to issue licenses to county

10 fairs which are eligible to receive funds pursuant to the

11 Agricultural Fair Act, as now or hereafter amended, or their

12 agents, authorizing the pari-mutuel system of wagering on horse

13 races conducted at the county fairs receiving such licenses.

14 Such licenses shall be governed by subsection (n) of this

15 Section.

16 Upon application, the Board shall issue a license to the

17 Illinois Department of Agriculture to conduct harness and

18 Quarter Horse races at the Illinois State Fair and at the

19 DuQuoin State Fairgrounds during the scheduled dates of each

20 fair. The Board shall not require and the Department of

21 Agriculture shall be exempt from the requirements of Sections

22 15.3, 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

24 and 25. The Board and the Department of Agriculture may extend

25 any or all of these exemptions to any contractor or agent

26 engaged by the Department of Agriculture to conduct its race

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1 meetings when the Board determines that this would best serve

2 the public interest and the interest of horse racing.

3 Notwithstanding any provision of law to the contrary, it

4 shall be lawful for any licensee to operate pari-mutuel

5 wagering or contract with the Department of Agriculture to

6 operate pari-mutuel wagering at the DuQuoin State Fairgrounds

7 or for the Department to enter into contracts with a licensee,

8 employ its owners, employees or agents and employ such other

9 occupation licensees as the Department deems necessary in

10 connection with race meetings and wagerings.

11 (b) The Board is vested with the full power to promulgate

12 reasonable rules and regulations for the purpose of

13 administering the provisions of this Act and to prescribe

14 reasonable rules, regulations and conditions under which all

15 horse race meetings or wagering in the State shall be

16 conducted. Such reasonable rules and regulations are to provide

17 for the prevention of practices detrimental to the public

18 interest and to promote the best interests of horse racing and

19 to impose penalties for violations thereof.

20 (c) The Board, and any person or persons to whom it

21 delegates this power, is vested with the power to enter the

22 facilities and other places of business of any licensee to

23 determine whether there has been compliance with the provisions

24 of this Act and its rules and regulations.

25 (d) The Board, and any person or persons to whom it

26 delegates this power, is vested with the authority to

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1 investigate alleged violations of the provisions of this Act,

2 its reasonable rules and regulations, orders and final

3 decisions; the Board shall take appropriate disciplinary

4 action against any licensee or occupation licensee for

5 violation thereof or institute appropriate legal action for the

6 enforcement thereof.

7 (e) The Board, and any person or persons to whom it

8 delegates this power, may eject or exclude from any race

9 meeting or the facilities of any licensee, or any part thereof,

10 any occupation licensee or any other individual whose conduct

11 or reputation is such that his presence on those facilities

12 may, in the opinion of the Board, call into question the

13 honesty and integrity of horse racing or wagering or interfere

14 with the orderly conduct of horse racing or wagering; provided,

15 however, that no person shall be excluded or ejected from the

16 facilities of any licensee solely on the grounds of race,

17 color, creed, national origin, ancestry, or sex. The power to

18 eject or exclude an occupation licensee or other individual may

19 be exercised for just cause by the licensee or the Board,

20 subject to subsequent hearing by the Board as to the propriety

21 of said exclusion.

22 (f) The Board is vested with the power to acquire,

23 establish, maintain and operate (or provide by contract to

24 maintain and operate) testing laboratories and related

25 facilities, for the purpose of conducting saliva, blood, urine

26 and other tests on the horses run or to be run in any horse race

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1 meeting, including races run at county fairs, and to purchase

2 all equipment and supplies deemed necessary or desirable in

3 connection with any such testing laboratories and related

4 facilities and all such tests.

5 (g) The Board may require that the records, including

6 financial or other statements of any licensee or any person

7 affiliated with the licensee who is involved directly or

8 indirectly in the activities of any licensee as regulated under

9 this Act to the extent that those financial or other statements

10 relate to such activities be kept in such manner as prescribed

11 by the Board, and that Board employees shall have access to

12 those records during reasonable business hours. Within 120 days

13 of the end of its fiscal year, each licensee shall transmit to

14 the Board an audit of the financial transactions and condition

15 of the licensee's total operations. All audits shall be

16 conducted by certified public accountants. Each certified

17 public accountant must be registered in the State of Illinois

18 under the Illinois Public Accounting Act. The compensation for

19 each certified public accountant shall be paid directly by the

20 licensee to the certified public accountant. A licensee shall

21 also submit any other financial or related information the

22 Board deems necessary to effectively administer this Act and

23 all rules, regulations, and final decisions promulgated under

24 this Act.

25 (h) The Board shall name and appoint in the manner provided

26 by the rules and regulations of the Board: an Executive

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1 Director; a State director of mutuels; State veterinarians and

2 representatives to take saliva, blood, urine and other tests on

3 horses; licensing personnel; revenue inspectors; and State

4 seasonal employees (excluding admission ticket sellers and

5 mutuel clerks). All of those named and appointed as provided in

6 this subsection shall serve during the pleasure of the Board;

7 their compensation shall be determined by the Board and be paid

8 in the same manner as other employees of the Board under this

9 Act.

10 (i) The Board shall require that there shall be 3 stewards

11 at each horse race meeting, at least 2 of whom shall be named

12 and appointed by the Board. Stewards appointed or approved by

13 the Board, while performing duties required by this Act or by

14 the Board, shall be entitled to the same rights and immunities

15 as granted to Board members and Board employees in Section 10

16 of this Act.

17 (j) The Board may discharge any Board employee who fails or

18 refuses for any reason to comply with the rules and regulations

19 of the Board, or who, in the opinion of the Board, is guilty of

20 fraud, dishonesty or who is proven to be incompetent. The Board

21 shall have no right or power to determine who shall be

22 officers, directors or employees of any licensee, or their

23 salaries except the Board may, by rule, require that all or any

24 officials or employees in charge of or whose duties relate to

25 the actual running of races be approved by the Board.

26 (k) The Board is vested with the power to appoint delegates

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1 to execute any of the powers granted to it under this Section

2 for the purpose of administering this Act and any rules or

3 regulations promulgated in accordance with this Act.

4 (l) The Board is vested with the power to impose civil

5 penalties of up to $5,000 against an individual and up to

6 $10,000 against a licensee for each violation of any provision

7 of this Act, any rules adopted by the Board, any order of the

8 Board or any other action which, in the Board's discretion, is

9 a detriment or impediment to horse racing or wagering.

10 Beginning on the date when any organization licensee begins

11 conducting electronic gaming pursuant to an electronic gaming

12 license issued under the Illinois Gambling Act, the power

13 granted to the Board pursuant to this subsection (l) shall

14 authorize the Board to impose penalties of up to $10,000

15 against an individual and up to $25,000 against a licensee. All

16 such civil penalties shall be deposited into the Horse Racing

17 Fund.

18 (m) The Board is vested with the power to prescribe a form

19 to be used by licensees as an application for employment for

20 employees of each licensee.

21 (n) The Board shall have the power to issue a license to

22 any county fair, or its agent, authorizing the conduct of the

23 pari-mutuel system of wagering. The Board is vested with the

24 full power to promulgate reasonable rules, regulations and

25 conditions under which all horse race meetings licensed

26 pursuant to this subsection shall be held and conducted,

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1 including rules, regulations and conditions for the conduct of

2 the pari-mutuel system of wagering. The rules, regulations and

3 conditions shall provide for the prevention of practices

4 detrimental to the public interest and for the best interests

5 of horse racing, and shall prescribe penalties for violations

6 thereof. Any authority granted the Board under this Act shall

7 extend to its jurisdiction and supervision over county fairs,

8 or their agents, licensed pursuant to this subsection. However,

9 the Board may waive any provision of this Act or its rules or

10 regulations which would otherwise apply to such county fairs or

11 their agents.

12 (o) Whenever the Board is authorized or required by law to

13 consider some aspect of criminal history record information for

14 the purpose of carrying out its statutory powers and

15 responsibilities, then, upon request and payment of fees in

16 conformance with the requirements of Section 2605-400 of the

17 Department of State Police Law (20 ILCS 2605/2605-400), the

18 Department of State Police is authorized to furnish, pursuant

19 to positive identification, such information contained in

20 State files as is necessary to fulfill the request.

21 (p) To insure the convenience, comfort, and wagering

22 accessibility of race track patrons, to provide for the

23 maximization of State revenue, and to generate increases in

24 purse allotments to the horsemen, the Board shall require any

25 licensee to staff the pari-mutuel department with adequate

26 personnel.

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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

4 occupation licenses to horse owners, trainers, harness

5 drivers, jockeys, agents, apprentices, grooms, stable foremen,

6 exercise persons, veterinarians, valets, blacksmiths,

7 concessionaires and others designated by the Board whose work,

8 in whole or in part, is conducted upon facilities within the

9 State. Such occupation licenses will be obtained prior to the

10 persons engaging in their vocation upon such facilities. The

11 Board shall not license pari-mutuel clerks, parking

12 attendants, security guards and employees of concessionaires.

13 No occupation license shall be required of any person who works

14 at facilities within this State as a pari-mutuel clerk, parking

15 attendant, security guard or as an employee of a

16 concessionaire. Concessionaires of the Illinois State Fair and

17 DuQuoin State Fair and employees of the Illinois Department of

18 Agriculture shall not be required to obtain an occupation

19 license by the Board.

20 (b) Each application for an occupation license shall be on

21 forms prescribed by the Board. Such license, when issued, shall

22 be for the period ending December 31 of each year, except that

23 the Board in its discretion may grant 3-year licenses. The

24 application shall be accompanied by a fee of not more than $25

25 per year or, in the case of 3-year occupation license

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1 applications, a fee of not more than $60. Each applicant shall

2 set forth in the application his full name and address, and if

3 he had been issued prior occupation licenses or has been

4 licensed in any other state under any other name, such name,

5 his age, whether or not a permit or license issued to him in

6 any other state has been suspended or revoked and if so whether

7 such suspension or revocation is in effect at the time of the

8 application, and such other information as the Board may

9 require. Fees for registration of stable names shall not exceed

10 $50.00. Beginning on the date when any organization licensee

11 begins conducting electronic gaming pursuant to an electronic

12 gaming license issued under the Illinois Gambling Act, the fee

13 for registration of stable names shall not exceed $150, and the

14 application fee for an occupation license shall not exceed $75,

15 per year or, in the case of a 3-year occupation license

16 application, the fee shall not exceed $180.

17 (c) The Board may in its discretion refuse an occupation

18 license 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

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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

12 to the Department of State Police in the form and manner

13 prescribed by the Department of State Police. These

14 fingerprints shall be checked against the fingerprint records

15 now and hereafter filed in the Department of State Police and

16 Federal Bureau of Investigation criminal history records

17 databases. The Department of State Police shall charge a fee

18 for conducting the criminal history records check, which shall

19 be deposited in the State Police Services Fund and shall not

20 exceed the actual cost of the records check. The Department of

21 State Police shall furnish, pursuant to positive

22 identification, records of conviction to the Board. Each

23 applicant for licensure shall submit with his occupation

24 license application, on forms provided by the Board, 2 sets of

25 his fingerprints. All such applicants shall appear in person at

26 the location designated by the Board for the purpose of

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1 submitting such sets of fingerprints; however, with the prior

2 approval of a State steward, an applicant may have such sets of

3 fingerprints taken by an official law enforcement agency and

4 submitted to the Board.

5 (f) The Board may, in its discretion, issue an occupation

6 license without submission of fingerprints if an applicant has

7 been duly licensed in another recognized racing jurisdiction

8 after submitting fingerprints that were subjected to a Federal

9 Bureau of Investigation criminal history background check in

10 that jurisdiction.

11 (g) Beginning on the date when any organization licensee

12 begins conducting electronic gambling pursuant to an

13 electronic gaming license issued under the Illinois Gambling

14 Act, the Board may charge each applicant a reasonable

15 non-refundable fee to defray the costs associated with the

16 background investigation conducted by the Board. This fee shall

17 be exclusive of any other fee or fees charged in connection

18 with an application for and, if applicable, the issuance of, an

19 electronic gaming license. If the costs of the investigation

20 exceed the amount of the fee charged, the Board shall

21 immediately notify the applicant of the additional amount owed,

22 payment of which must be submitted to the Board within 7 days

23 after such notification. All information, records, interviews,

24 reports, statements, memoranda, or other data supplied to or

25 used by the Board in the course of its review or investigation

26 of an applicant for a license or renewal under this Act shall

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1 be privileged, strictly confidential, and shall be used only

2 for the purpose of evaluating an applicant for a license or a

3 renewal. Such information, records, interviews, reports,

4 statements, memoranda, or other data shall not be admissible as

5 evidence, nor discoverable, in any action of any kind in any

6 court or before any tribunal, board, agency, or person, except

7 for 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

11 conduct 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~~

22 ~~unless authorized by ordinance or referendum of the~~

23 ~~municipality in which a race track or any of its appurtenances~~

24 ~~or facilities are located, or utilized~~.

25 (c) If any person is ineligible to receive an organization

26 license 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

2 separate person that either (i) controls, directly or

3 indirectly, such ineligible person or (ii) is controlled,

4 directly or indirectly, by such ineligible person or by a

5 person which controls, directly or indirectly, such ineligible

6 person 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

10 meeting may apply to the Board for an organization license. The

11 application shall be made on a form prescribed and furnished by

12 the 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

23 shall be filed for each horse race meeting which such person

24 proposes to hold. Any such application, if made by an

25 individual, or by any individual as trustee, shall be signed

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1 and verified under oath by such individual. If the application

2 ismade by individuals, then it shall be signed and verified

3 under oath by at least 2 of the individuals; if the application

4 is made by ~~or~~ a partnership, ~~it shall be signed and verified~~

5 ~~under oath by at least 2 of such individuals or members of such~~

6 ~~partnership as the case may be. If made by~~ an association, a

7 corporation, acorporate trustee, a limited liability company,

8 or any other entity, it shall be signed by an authorized

9 officer, a partner, a member, or a manager, as the case may be,

10 of the entity ~~the president and attested by the secretary or~~

11 ~~assistant secretary under the seal of such association, trust~~

12 ~~or corporation if it has a seal, and shall also be verified~~

13 ~~under 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

9 good faith affirmative action plan to recruit, train, and

10 upgrade minorities in all classifications within the

11 association.

12 (e) With such application there shall be delivered to the

13 Board a certified check or bank draft payable to the order of

14 the Board for an amount equal to $1,000. All applications for

15 the issuance of an organization license shall be filed with the

16 Board before August 1 of the year prior to the year for which

17 application is made and shall be acted upon by the Board at a

18 meeting to be held on such date as shall be fixed by the Board

19 during the last 15 days of September of such prior year. At

20 such meeting, the Board shall announce the award of the racing

21 meets, live racing schedule, and designation of host track to

22 the applicants and its approval or disapproval of each

23 application. No announcement shall be considered binding until

24 a formal order is executed by the Board, which shall be

25 executed no later than October 15 of that prior year. Absent

26 the agreement of the affected organization licensees, the Board

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1 shall not grant overlapping race meetings to 2 or more tracks

2 that are within 100 miles of each other to conduct the

3 thoroughbred racing.

4 (e-1) In awarding standardbred racing dates for calendar

5 year 2016 and thereafter, the Board shall award at least 310

6 racing days, and each organization licensee shall average at

7 least 12 races for each racing day awarded. The Board shall

8 have the discretion to allocate those racing days among

9 organization licensees requesting standardbred racing dates.

10 Once awarded by the Board, organization licensees awarded

11 standardbred racing dates shall run at least 3,500 races in

12 total during that calendar year. Standardbred racing conducted

13 in Sangamon County shall not be considered races under this

14 subsection (e-1).

15 (e-2) In awarding racing dates for calendar year 2016 and

16 thereafter, the Board shall award thoroughbred racing days to

17 Cook County organization licensees commensurate with these

18 organization licensees' requirement that they shall run at

19 least 1,950 thoroughbred races in the aggregate, so long as 2

20 organization licensees are conducting electronic gaming

21 operations. Additionally, if the organization licensees that

22 run thoroughbred races in Cook County are conducting electronic

23 gaming operations, the Board shall increase the number of

24 thoroughbred races to be run in Cook County in the aggregate to

25 at 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

9 Board shall have the discretion to allocate those thoroughbred

10 racing dates among these Cook County organization licensees.

11 (e-3) Notwithstanding the provisions of Section 7.7 of the

12 Illinois Gambling Act or any provision of this Act other than

13 subsection (e-4), for each calendar year for which an

14 electronic gaming licensee requests racing dates for a specific

15 horse breed which results in a number of live races for that

16 specific breed under its organization license that is less than

17 the total number of live races for that specific breed which it

18 conducted in 2011 for standardbred racing and in 2009 for

19 thoroughbred racing at its race track facility, the electronic

20 gaming licensee may not conduct electronic gaming for the

21 calendar year of such requested live races.

22 (e-4) The Board shall ensure that each organization

23 licensee shall individually run a sufficient number of races

24 per year to qualify for an electronic gaming license under this

25 Act. The General Assembly finds that the minimum live racing

26 guarantees contained in subsections (e-1) and (e-2) are in the

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1 best interest of the sport of horse racing, and that such

2 guarantees may only be reduced in the limited circumstances

3 described in this subsection. The Board may decrease the number

4 of racing days without affecting an organization licensee's

5 ability to conduct electronic gaming only if the Board

6 determines, 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

25 this subsection, the Board shall hold a hearing and shall

26 provide the public and all interested parties notice and an

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1 opportunity to be heard. The Board shall accept testimony from

2 all interested parties, including any association representing

3 owners, trainers, jockeys, or drivers who will be affected by

4 the decrease in racing dates. The Board shall provide a written

5 explanation of the reasons for the decrease and the Board's

6 findings. The written explanation shall include a listing and

7 content of all communication between any party and any Illinois

8 Racing Board member or staff that does not take place at a

9 public meeting of the Board.

10 (e-5) In reviewing an application for the purpose of

11 granting an organization license consistent with the best

12 interests of the public and the sport of horse racing, the

13 Board 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

16 horse race meetings, the Board shall have discretion to

17 determine an overall schedule, including required simulcasts

18 of Illinois races by host tracks that will, in its judgment, be

19 conducive to the best interests of the public and the sport of

20 horse racing.

21 (e-10) The Illinois Administrative Procedure Act shall

22 apply to administrative procedures of the Board under this Act

23 for the granting of an organization license, except that (1)

24 notwithstanding the provisions of subsection (b) of Section

25 10-40 of the Illinois Administrative Procedure Act regarding

26 cross-examination, the Board may prescribe rules limiting the

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1 right of an applicant or participant in any proceeding to award

2 an organization license to conduct cross-examination of

3 witnesses at that proceeding where that cross-examination

4 would unduly obstruct the timely award of an organization

5 license under subsection (e) of Section 20 of this Act; (2) the

6 provisions of Section 10-45 of the Illinois Administrative

7 Procedure Act regarding proposals for decision are excluded

8 under this Act; (3) notwithstanding the provisions of

9 subsection (a) of Section 10-60 of the Illinois Administrative

10 Procedure Act regarding ex parte communications, the Board may

11 prescribe rules allowing ex parte communications with

12 applicants or participants in a proceeding to award an

13 organization license where conducting those communications

14 would be in the best interest of racing, provided all those

15 communications are made part of the record of that proceeding

16 pursuant to subsection (c) of Section 10-60 of the Illinois

17 Administrative Procedure Act; (4) the provisions of Section 14a

18 of this Act and the rules of the Board promulgated under that

19 Section shall apply instead of the provisions of Article 10 of

20 the Illinois Administrative Procedure Act regarding

21 administrative law judges; and (5) the provisions of subsection

22 (d) of Section 10-65 of the Illinois Administrative Procedure

23 Act that prevent summary suspension of a license pending

24 revocation or other action shall not apply.

25 (f) The Board may allot racing dates to an organization

26 licensee for more than one calendar year but for no more than 3

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1 successive calendar years in advance, provided that the Board

2 shall review such allotment for more than one calendar year

3 prior to each year for which such allotment has been made. The

4 granting of an organization license to a person constitutes a

5 privilege to conduct a horse race meeting under the provisions

6 of this Act, and no person granted an organization license

7 shall be deemed to have a vested interest, property right, or

8 future expectation to receive an organization license in any

9 subsequent year as a result of the granting of an organization

10 license. Organization licenses shall be subject to revocation

11 if the organization licensee has violated any provision of this

12 Act or the rules and regulations promulgated under this Act or

13 has been convicted of a crime or has failed to disclose or has

14 stated falsely any information called for in the application

15 for an organization license. Any organization license

16 revocation proceeding shall be in accordance with Section 16

17 regarding suspension and revocation of occupation licenses.

18 (f-5) If, (i) an applicant does not file an acceptance of

19 the racing dates awarded by the Board as required under part

20 (1) of subsection (h) of this Section 20, or (ii) an

21 organization licensee has its license suspended or revoked

22 under this Act, the Board, upon conducting an emergency hearing

23 as provided for in this Act, may reaward on an emergency basis

24 pursuant to rules established by the Board, racing dates not

25 accepted or the racing dates associated with any suspension or

26 revocation period to one or more organization licensees, new

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1 applicants, or any combination thereof, upon terms and

2 conditions that the Board determines are in the best interest

3 of racing, provided, the organization licensees or new

4 applicants receiving the awarded racing dates file an

5 acceptance of those reawarded racing dates as required under

6 paragraph (1) of subsection (h) of this Section 20 and comply

7 with the other provisions of this Act. The Illinois

8 Administrative Procedure Act shall not apply to the

9 administrative procedures of the Board in conducting the

10 emergency hearing and the reallocation of racing dates on an

11 emergency basis.

12 (g) (Blank).

13 (h) The Board shall send the applicant a copy of its

14 formally executed order by certified mail addressed to the

15 applicant at the address stated in his application, which

16 notice shall be mailed within 5 days of the date the formal

17 order is executed.

18 Each applicant notified shall, within 10 days after receipt

19 of 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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1 Upon compliance with the provisions of paragraphs (1), (2), and

2 (3) of this subsection (h), the applicant shall be issued an

3 organization license.

4 If any applicant fails to comply with this Section or fails

5 to pay the organization license fees herein provided, no

6 organization 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

10 filed with the Board at a time and place prescribed by the

11 rules and regulations of the Board. The Board shall examine the

12 applications within 21 days after the date allowed for filing

13 with respect to their conformity with this Act and such rules

14 and regulations as may be prescribed by the Board. If any

15 application does not comply with this Act or the rules and

16 regulations prescribed by the Board, such application may be

17 rejected and an organization license refused to the applicant,

18 or the Board may, within 21 days of the receipt of such

19 application, advise the applicant of the deficiencies of the

20 application under the Act or the rules and regulations of the

21 Board, and require the submittal of an amended application

22 within a reasonable time determined by the Board; and upon

23 submittal of the amended application by the applicant, the

24 Board may consider the application consistent with the process

25 described in subsection (e-5) of Section 20 of this Act. If it

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1 is found to be in compliance with this Act and the rules and

2 regulations of the Board, the Board may then issue an

3 organization license to such applicant.

4 (b) The Board may exercise discretion in granting racing

5 dates to qualified applicants different from those requested by

6 the applicants in their applications. However, if all eligible

7 applicants for organization licenses whose tracks are located

8 within 100 miles of each other execute and submit to the Board

9 a written agreement among such applicants as to the award of

10 racing dates, including where applicable racing programs, for

11 up to 3 consecutive years, then subject to annual review of

12 each applicant's compliance with Board rules and regulations,

13 provisions of this Act and conditions contained in annual dates

14 orders issued by the Board, the Board may grant such dates and

15 programs to such applicants as so agreed by them if the Board

16 determines that the grant of these racing dates is in the best

17 interests of racing. The Board shall treat any such agreement

18 as the agreement signatories' joint and several application for

19 racing dates during the term of the agreement.

20 (c) Where 2 or more applicants propose to conduct horse

21 race meetings within 35 miles of each other, as certified to

22 the Board under Section 19 (a) (1) of this Act, on conflicting

23 dates, the Board may determine and grant the number of racing

24 days to be awarded to the several applicants in accordance with

25 the 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

2 applicant shall file with the Board a bond payable to the State

3 of Illinois in the sum of $200,000, executed by the applicant

4 and a surety company or companies authorized to do business in

5 this State, and conditioned upon the payment by the

6 organization licensee of all taxes due under Section 27, other

7 monies due and payable under this Act, all purses due and

8 payable, and that the organization licensee will upon

9 presentation of the winning ticket or tickets distribute all

10 sums due to the patrons of pari-mutuel pools. Beginning on the

11 date when any organization licensee begins conducting

12 electronic gaming pursuant to an electronic gaming license

13 issued under the Illinois Gambling Act, the amount of the bond

14 required under this subsection (e) shall be $500,000.

15 (f) Each organization license shall specify the person to

16 whom it is issued, the dates upon which horse racing is

17 permitted, and the location, place, track, or enclosure where

18 the horse race meeting is to be held.

19 (g) Any person who owns one or more race tracks within the

20 State may seek, in its own name, a separate organization

21 license for each race track.

22 (h) All racing conducted under such organization license is

23 subject to this Act and to the rules and regulations from time

24 to time prescribed by the Board, and every such organization

25 license issued by the Board shall contain a recital to that

26 effect.

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1 (i) Each such organization licensee may provide that at

2 least one race per day may be devoted to the racing of quarter

3 horses, appaloosas, arabians, or paints.

4 (j) In acting on applications for organization licenses,

5 the Board shall give weight to an organization license which

6 has implemented a good faith affirmative action effort to

7 recruit, train and upgrade minorities in all classifications

8 within 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

12 organization licensee unless all of its officers, directors,

13 and holders of ownership interests of at least 5% are first

14 approved by the Board. The Board shall not give approval of an

15 organization license application to any person who has been

16 convicted of or is under an indictment for a crime of moral

17 turpitude or has violated any provision of the racing law of

18 this State or any rules of the Board.

19 (b) An organization licensee must notify the Board within

20 10 days of any change in the holders of a direct or indirect

21 interest in the ownership of the organization licensee. The

22 Board may, after hearing, revoke the organization license of

23 any person who registers on its books or knowingly permits a

24 direct or indirect interest in the ownership of that person

25 without notifying the Board of the name of the holder in

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1 interest within this period.

2 (c) In addition to the provisions of subsection (a) of this

3 Section, no person shall be granted an organization license if

4 any public official of the State or member of his or her family

5 holds any ownership or financial interest, directly or

6 indirectly, in the person.

7 (d) No person which has been granted an organization

8 license to hold a race meeting shall give to any public

9 official or member of his family, directly or indirectly, for

10 or without consideration, any interest in the person. The Board

11 shall, after hearing, revoke the organization license granted

12 to a person which has violated this subsection.

13 (e) (Blank).

14 (f) No organization licensee or concessionaire or officer,

15 director or holder or controller of 5% or more legal or

16 beneficial interest in any organization licensee or concession

17 shall make any sort of gift or contributionthat is prohibited

18 under Article 10 of the State Officials and Employees Ethics

19 Act ~~of any kind~~or pay or give any money or other thing of value

20 to any person who is a public official, or a candidate or

21 nominee for public office if that payment or gift is prohibited

22 under Article 10 of the State Officials and Employees Ethics

23 Act.

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

3 as it shall prescribe, the sum of fifteen cents (15�) for each

4 person entering the grounds or enclosure of each organization

5 licensee and inter-track wagering licensee upon a ticket of

6 admission except as provided in subsection (g) of Section 27 of

7 this Act. If tickets are issued for more than one day then the

8 sum of fifteen cents (15�) shall be paid for each person using

9 such ticket on each day that the same shall be used. Provided,

10 however, that no charge shall be made on tickets of admission

11 issued to and in the name of directors, officers, agents or

12 employees of the organization licensee, or inter-track

13 wagering licensee, or to owners, trainers, jockeys, drivers and

14 their employees or to any person or persons entering the

15 grounds or enclosure for the transaction of business in

16 connection with such race meeting. The organization licensee or

17 inter-track wagering licensee may, if it desires, collect such

18 amount from each ticket holder in addition to the amount or

19 amounts charged for such ticket of admission.Beginning on the

20 date when any organization licensee begins conducting

21 electronic gaming pursuant to an electronic gaming license

22 issued under the Illinois Gambling Act, the admission charge

23 imposed by this subsection (a) shall be 40 cents for each

24 person entering the grounds or enclosure of each organization

25 licensee and inter-track wagering licensee upon a ticket of

26 admission, and if such tickets are issued for more than one

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1 day, 40 cents shall be paid for each person using such ticket

2 on each day that the same shall be used.

3 (b) Accurate records and books shall at all times be kept

4 and maintained by the organization licensees and inter-track

5 wagering licensees showing the admission tickets issued and

6 used on each racing day and the attendance thereat of each

7 horse racing meeting. The Board or its duly authorized

8 representative or representatives shall at all reasonable

9 times have access to the admission records of any organization

10 licensee and inter-track wagering licensee for the purpose of

11 examining and checking the same and ascertaining whether or not

12 the proper amount has been or is being paid the State of

13 Illinois as herein provided. The Board shall also require,

14 before issuing any license, that the licensee shall execute and

15 deliver to it a bond, payable to the State of Illinois, in such

16 sum as it shall determine, not, however, in excess of fifty

17 thousand dollars ($50,000), with a surety or sureties to be

18 approved by it, conditioned for the payment of all sums due and

19 payable or collected by it under this Section upon admission

20 fees received for any particular racing meetings. The Board may

21 also from time to time require sworn statements of the number

22 or numbers of such admissions and may prescribe blanks upon

23 which such reports shall be made. Any organization licensee or

24 inter-track wagering licensee failing or refusing to pay the

25 amount found to be due as herein provided, shall be deemed

26 guilty of a business offense and upon conviction shall be

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1 punished by a fine of not more than five thousand dollars

2 ($5,000) in addition to the amount due from such organization

3 licensee or inter-track wagering licensee as herein provided.

4 All fines paid into court by an organization licensee or

5 inter-track wagering licensee found guilty of violating this

6 Section shall be transmitted and paid over by the clerk of the

7 court to the Board. Beginning on the date when any organization

8 licensee begins conducting electronic gaming pursuant to an

9 electronic gaming license issued under the Illinois Gambling

10 Act, any fine imposed pursuant to this subsection (b) shall not

11 exceed $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

16 system of wagering, as defined in Section 3.12 of this Act, on

17 horse races conducted by an Illinois organization licensee or

18 conducted at a racetrack located in another state or country

19 and televised in Illinois in accordance with subsection (g) of

20 Section 26 of this Act. Subject to the prior consent of the

21 Board, licensees may supplement any pari-mutuel pool in order

22 to guarantee a minimum distribution. Such pari-mutuel method of

23 wagering shall not, under any circumstances if conducted under

24 the provisions of this Act, be held or construed to be

25 unlawful, other statutes of this State to the contrary

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1 notwithstanding. Subject to rules for advance wagering

2 promulgated by the Board, any licensee may accept wagers in

3 advance of the day of the race wagered upon occurs.

4 (b) Except for those gaming activities for which a license

5 is obtained and authorized under the Illinois Lottery Law, the

6 Charitable Games Act, the Raffles and Poker Runs Act, or the

7 Illinois Gambling Act, no ~~No~~ other method of betting, pool

8 making, wagering or gambling shall be used or permitted by the

9 licensee. Each licensee may retain, subject to the payment of

10 all applicable taxes and purses, an amount not to exceed 17% of

11 all money wagered under subsection (a) of this Section, except

12 as may otherwise be permitted under this Act.

13 (b-5) An individual may place a wager under the pari-mutuel

14 system from any licensed location authorized under this Act

15 provided that wager is electronically recorded in the manner

16 described in Section 3.12 of this Act. Any wager made

17 electronically by an individual while physically on the

18 premises of a licensee shall be deemed to have been made at the

19 premises of that licensee.

20 (c) Until January 1, 2000, the sum held by any licensee for

21 payment of outstanding pari-mutuel tickets, if unclaimed prior

22 to December 31 of the next year, shall be retained by the

23 licensee for payment of such tickets until that date. Within 10

24 days thereafter, the balance of such sum remaining unclaimed,

25 less any uncashed supplements contributed by such licensee for

26 the purpose of guaranteeing minimum distributions of any

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1 pari-mutuel pool, shall be paid to the Illinois Veterans'

2 Rehabilitation Fund of the State treasury, except as provided

3 in subsection (g) of Section 27 of this Act.

4 (c-5) Beginning January 1, 2000, the sum held by any

5 licensee for payment of outstanding pari-mutuel tickets, if

6 unclaimed prior to December 31 of the next year, shall be

7 retained by the licensee for payment of such tickets until that

8 date. Within 10 days thereafter, the balance of such sum

9 remaining unclaimed, less any uncashed supplements contributed

10 by such licensee for the purpose of guaranteeing minimum

11 distributions of any pari-mutuel pool, shall be evenly

12 distributed to the purse account of the organization licensee

13 and the organization licensee.

14 (d) A pari-mutuel ticket shall be honored until December 31

15 of the next calendar year, and the licensee shall pay the same

16 and may charge the amount thereof against unpaid money

17 similarly accumulated on account of pari-mutuel tickets not

18 presented for payment.

19 (e) No licensee shall knowingly permit any minor, other

20 than an employee of such licensee or an owner, trainer, jockey,

21 driver, or employee thereof, to be admitted during a racing

22 program unless accompanied by a parent or guardian, or any

23 minor to be a patron of the pari-mutuel system of wagering

24 conducted or supervised by it. The admission of any

25 unaccompanied minor, other than an employee of the licensee or

26 an owner, trainer, jockey, driver, or employee thereof at a

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1 race track is a Class C misdemeanor.

2 (f) Notwithstanding the other provisions of this Act, an

3 organization licensee may contract with an entity in another

4 state or country to permit any legal wagering entity in another

5 state or country to accept wagers solely within such other

6 state or country on races conducted by the organization

7 licensee in this State. Beginning January 1, 2000, these wagers

8 shall not be subject to State taxation. Until January 1, 2000,

9 when the out-of-State entity conducts a pari-mutuel pool

10 separate from the organization licensee, a privilege tax equal

11 to 7 1/2% of all monies received by the organization licensee

12 from entities in other states or countries pursuant to such

13 contracts is imposed on the organization licensee, and such

14 privilege tax shall be remitted to the Department of Revenue

15 within 48 hours of receipt of the moneys from the simulcast.

16 When the out-of-State entity conducts a combined pari-mutuel

17 pool with the organization licensee, the tax shall be 10% of

18 all monies received by the organization licensee with 25% of

19 the receipts from this 10% tax to be distributed to the county

20 in which the race was conducted.

21 An organization licensee may permit one or more of its

22 races to be utilized for pari-mutuel wagering at one or more

23 locations in other states and may transmit audio and visual

24 signals of races the organization licensee conducts to one or

25 more locations outside the State or country and may also permit

26 pari-mutuel pools in other states or countries to be combined

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1 with its gross or net wagering pools or with wagering pools

2 established by other states.

3 (g) A host track may accept interstate simulcast wagers on

4 horse races conducted in other states or countries and shall

5 control the number of signals and types of breeds of racing in

6 its simulcast program, subject to the disapproval of the Board.

7 The Board may prohibit a simulcast program only if it finds

8 that the simulcast program is clearly adverse to the integrity

9 of racing. The host track simulcast program shall include the

10 signal of live racing of all organization licensees. All

11 non-host licensees and advance deposit wagering licensees

12 shall carry the signal of and accept wagers on live racing of

13 all organization licensees. Advance deposit wagering licensees

14 shall not be permitted to accept out-of-state wagers on any

15 Illinois signal provided pursuant to this Section without the

16 approval and consent of the organization licensee providing the

17 signal. For one year after the effective date of this

18 amendatory Act of the 98th General Assembly, non-host licensees

19 may carry the host track simulcast program and shall accept

20 wagers on all races included as part of the simulcast program

21 of horse races conducted at race tracks located within North

22 America upon which wagering is permitted. For a period of one

23 year after the effective date of this amendatory Act of the

24 98th General Assembly, on horse races conducted at race tracks

25 located outside of North America, non-host licensees may accept

26 wagers on all races included as part of the simulcast program

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1 upon which wagering is permitted. Beginning one year after the

2 effective date of this amendatory Act of the 98th General

3 Assembly, non-host licensees may carry the host track simulcast

4 program and shall accept wagers on all races included as part

5 of the simulcast program upon which wagering is permitted. All

6 organization licensees shall provide their live signal to all

7 advance deposit wagering licensees for a simulcast commission

8 fee not to exceed 6% of the advance deposit wagering licensee's

9 Illinois handle on the organization licensee's signal without

10 prior approval by the Board. The Board may adopt rules under

11 which it may permit simulcast commission fees in excess of 6%.

12 The Board shall adopt rules limiting the interstate commission

13 fees charged to an advance deposit wagering licensee. The Board

14 shall adopt rules regarding advance deposit wagering on

15 interstate simulcast races that shall reflect, among other

16 things, the General Assembly's desire to maximize revenues to

17 the State, horsemen purses, and organizational licensees.

18 However, organization licensees providing live signals

19 pursuant to the requirements of this subsection (g) may

20 petition the Board to withhold their live signals from an

21 advance deposit wagering licensee if the organization licensee

22 discovers and the Board finds reputable or credible information

23 that the advance deposit wagering licensee is under

24 investigation by another state or federal governmental agency,

25 the advance deposit wagering licensee's license has been

26 suspended in another state, or the advance deposit wagering

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1 licensee's license is in revocation proceedings in another

2 state. The organization licensee's provision of their live

3 signal to an advance deposit wagering licensee under this

4 subsection (g) pertains to wagers placed from within Illinois.

5 Advance deposit wagering licensees may place advance deposit

6 wagering terminals at wagering facilities as a convenience to

7 customers. The advance deposit wagering licensee shall not

8 charge or collect any fee from purses for the placement of the

9 advance deposit wagering terminals. The costs and expenses of

10 the host track and non-host licensees associated with

11 interstate simulcast wagering, other than the interstate

12 commission fee, shall be borne by the host track and all

13 non-host licensees incurring these costs. The interstate

14 commission fee shall not exceed 5% of Illinois handle on the

15 interstate simulcast race or races without prior approval of

16 the Board. The Board shall promulgate rules under which it may

17 permit interstate commission fees in excess of 5%. The

18 interstate commission fee and other fees charged by the sending

19 racetrack, including, but not limited to, satellite decoder

20 fees, shall be uniformly applied to the host track and all

21 non-host licensees.

22 Notwithstanding any other provision of this Act, until

23 February 1, 2017, an organization licensee, with the consent of

24 the horsemen association representing the largest number of

25 owners, trainers, jockeys, or standardbred drivers who race

26 horses at that organization licensee's racing meeting, may

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1 maintain a system whereby advance deposit wagering may take

2 place or an organization licensee, with the consent of the

3 horsemen association representing the largest number of

4 owners, trainers, jockeys, or standardbred drivers who race

5 horses at that organization licensee's racing meeting, may

6 contract with another person to carry out a system of advance

7 deposit wagering. Such consent may not be unreasonably

8 withheld. Only with respect to an appeal to the Board that

9 consent for an organization licensee that maintains its own

10 advance deposit wagering system is being unreasonably

11 withheld, the Board shall issue a final order within 30 days

12 after initiation of the appeal, and the organization licensee's

13 advance deposit wagering system may remain operational during

14 that 30-day period. The actions of any organization licensee

15 who conducts advance deposit wagering or any person who has a

16 contract with an organization licensee to conduct advance

17 deposit wagering who conducts advance deposit wagering on or

18 after January 1, 2013 and prior to the effective date of this

19 amendatory Act of the 98th General Assembly taken in reliance

20 on the changes made to this subsection (g) by this amendatory

21 Act of the 98th General Assembly are hereby validated, provided

22 payment of all applicable pari-mutuel taxes are remitted to the

23 Board. All advance deposit wagers placed from within Illinois

24 must be placed through a Board-approved advance deposit

25 wagering licensee; no other entity may accept an advance

26 deposit wager from a person within Illinois. All advance

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1 deposit wagering is subject to any rules adopted by the Board.

2 The Board may adopt rules necessary to regulate advance deposit

3 wagering through the use of emergency rulemaking in accordance

4 with Section 5-45 of the Illinois Administrative Procedure Act.

5 The General Assembly finds that the adoption of rules to

6 regulate advance deposit wagering is deemed an emergency and

7 necessary for the public interest, safety, and welfare. An

8 advance deposit wagering licensee may retain all moneys as

9 agreed to by contract with an organization licensee. Any moneys

10 retained by the organization licensee from advance deposit

11 wagering, not including moneys retained by the advance deposit

12 wagering licensee, shall be paid 50% to the organization

13 licensee's purse account and 50% to the organization licensee.

14 With the exception of any organization licensee that is owned

15 by a publicly traded company that is incorporated in a state

16 other than Illinois and advance deposit wagering licensees

17 under contract with such organization licensees, organization

18 licensees that maintain advance deposit wagering systems and

19 advance deposit wagering licensees that contract with

20 organization licensees shall provide sufficiently detailed

21 monthly accountings to the horsemen association representing

22 the largest number of owners, trainers, jockeys, or

23 standardbred drivers who race horses at that organization

24 licensee's racing meeting so that the horsemen association, as

25 an interested party, can confirm the accuracy of the amounts

26 paid to the purse account at the horsemen association's

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1 affiliated organization licensee from advance deposit

2 wagering. If more than one breed races at the same race track

3 facility, then the 50% of the moneys to be paid to an

4 organization licensee's purse account shall be allocated among

5 all organization licensees' purse accounts operating at that

6 race track facility proportionately based on the actual number

7 of host days that the Board grants to that breed at that race

8 track facility in the current calendar year. To the extent any

9 fees from advance deposit wagering conducted in Illinois for

10 wagers in Illinois or other states have been placed in escrow

11 or otherwise withheld from wagers pending a determination of

12 the legality of advance deposit wagering, no action shall be

13 brought to declare such wagers or the disbursement of any fees

14 previously 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

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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

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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

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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:

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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

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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

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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

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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

9 inter-track wagering and simulcast wagering by inter-track

10 wagering licensees and inter-track wagering location licensees

11 subject 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

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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

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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

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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).

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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

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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

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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

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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

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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

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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

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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

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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

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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

18 conduct of wagering at wagering facilities is authorized on all

19 days, except as limited by subsection (b) of Section 19 of this

20 Act.

21 (Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;

22 98-624, 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

25 provided by this Act, until January 1, 2000, a graduated

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1 privilege tax is hereby imposed for conducting the pari-mutuel

2 system of wagering permitted under this Act. Until January 1,

3 2000, except as provided in subsection (g) of Section 27 of

4 this Act, all of the breakage of each racing day held by any

5 licensee in the State shall be paid to the State. Until January

6 1, 2000, such daily graduated privilege tax shall be paid by

7 the licensee from the amount permitted to be retained under

8 this Act. Until January 1, 2000, each day's graduated privilege

9 tax, breakage, and Horse Racing Tax Allocation funds shall be

10 remitted to the Department of Revenue within 48 hours after the

11 close of the racing day upon which it is assessed or within

12 such other time as the Board prescribes. The privilege tax

13 hereby imposed, until January 1, 2000, shall be a flat tax at

14 the rate of 2% of the daily pari-mutuel handle except as

15 provided in Section 27.1.

16 In addition, every organization licensee, except as

17 provided in Section 27.1 of this Act, which conducts multiple

18 wagering shall pay, until January 1, 2000, as a privilege tax

19 on multiple wagers an amount equal to 1.25% of all moneys

20 wagered each day on such multiple wagers, plus an additional

21 amount equal to 3.5% of the amount wagered each day on any

22 other multiple wager which involves a single betting interest

23 on 3 or more horses. The licensee shall remit the amount of

24 such taxes to the Department of Revenue within 48 hours after

25 the close of the racing day on which it is assessed or within

26 such other time as the Board prescribes.

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1 This subsection (a) shall be inoperative and of no force

2 and effect on and after January 1, 2000.

3 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax

4 at the rate of 1.5% of the daily pari-mutuel handle is imposed

5 at all pari-mutuel wagering facilities and on advance deposit

6 wagering from a location other than a wagering facility, except

7 as otherwise provided for in this subsection (a-5). In addition

8 to the pari-mutuel tax imposed on advance deposit wagering

9 pursuant to this subsection (a-5), beginning on August 24, 2012

10 (the effective date of Public Act 97-1060) until February 1,

11 2017, an additional pari-mutuel tax at the rate of 0.25% shall

12 be imposed on advance deposit wagering. Until August 25, 2012,

13 the additional 0.25% pari-mutuel tax imposed on advance deposit

14 wagering by Public Act 96-972 shall be deposited into the

15 Quarter Horse Purse Fund, which shall be created as a

16 non-appropriated trust fund administered by the Board for

17 grants to thoroughbred organization licensees for payment of

18 purses for quarter horse races conducted by the organization

19 licensee. Beginning on August 26, 2012, the additional 0.25%

20 pari-mutuel tax imposed on advance deposit wagering shall be

21 deposited into the Standardbred Purse Fund, which shall be

22 created as a non-appropriated trust fund administered by the

23 Board, for grants to the standardbred organization licensees

24 for payment of purses for standardbred horse races conducted by

25 the organization licensee. Thoroughbred organization licensees

26 may petition the Board to conduct quarter horse racing and

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1 receive purse grants from the Quarter Horse Purse Fund. The

2 Board shall have complete discretion in distributing the

3 Quarter Horse Purse Fund to the petitioning organization

4 licensees. Beginning on July 26, 2010 (the effective date of

5 Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of

6 the daily pari-mutuel handle is imposed at a pari-mutuel

7 facility whose license is derived from a track located in a

8 county that borders the Mississippi River and conducted live

9 racing in the previous year. The pari-mutuel tax imposed by

10 this subsection (a-5) shall be remitted to the Department of

11 Revenue within 48 hours after the close of the racing day upon

12 which it is assessed or within such other time as the Board

13 prescribes.

14 (a-10) Beginning on the date when an organization licensee

15 begins conducting electronic gaming pursuant to an electronic

16 gaming license, the following pari-mutuel tax is imposed upon

17 an organization licensee on Illinois races at the licensee's

18 race 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.

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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

7 be remitted to the Board within 48 hours after the close of the

8 racing day upon which it is assessed or within such other time

9 as the Board prescribes.

10 (b) On or before December 31, 1999, in the event that any

11 organization licensee conducts 2 separate programs of races on

12 any day, each such program shall be considered a separate

13 racing day for purposes of determining the daily handle and

14 computing the privilege tax on such daily handle as provided in

15 subsection (a) of this Section.

16 (c) Licensees shall at all times keep accurate books and

17 records of all monies wagered on each day of a race meeting and

18 of the taxes paid to the Department of Revenue under the

19 provisions of this Section. The Board or its duly authorized

20 representative or representatives shall at all reasonable

21 times have access to such records for the purpose of examining

22 and checking the same and ascertaining whether the proper

23 amount of taxes is being paid as provided. The Board shall

24 require verified reports and a statement of the total of all

25 monies wagered daily at each wagering facility upon which the

26 taxes are assessed and may prescribe forms upon which such

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1 reports and statement shall be made.

2 (d) Before a license is issued or re-issued, the licensee

3 shall post a bond in the sum of $500,000 to the State of

4 Illinois. The bond shall be used to guarantee that the licensee

5 faithfully makes the payments, keeps the books and records and

6 makes reports, and conducts games of chance in conformity with

7 this Act and the rules adopted by the Board. The bond shall not

8 be canceled by a surety on less than 30 days' notice in writing

9 to the Board. If a bond is canceled and the licensee fails to

10 file a new bond with the Board in the required amount on or

11 before the effective date of cancellation, the licensee's

12 license shall be revoked. The total and aggregate liability of

13 the surety on the bond is limited to the amount specified in

14 the bond. ~~Any licensee failing or refusing to pay the amount of~~

15 ~~any tax due under this Section shall be guilty of a business~~

16 ~~offense and upon conviction shall be fined not more than $5,000~~

17 ~~in addition to the amount found due as tax under this Section.~~

18 ~~Each day's violation shall constitute a separate offense. All~~

19 ~~fines paid into Court by a licensee hereunder shall be~~

20 ~~transmitted and paid over by the Clerk of the Court to the~~

21 ~~Board.~~

22 (e) No other license fee, privilege tax, excise tax, or

23 racing fee, except as provided in this Act, shall be assessed

24 or collected from any such licensee by the State.

25 (f) No other license fee, privilege tax, excise tax or

26 racing fee shall be assessed or collected from any such

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1 licensee by units of local government except as provided in

2 paragraph 10.1 of subsection (h) and subsection (f) of Section

3 26 of this Act. However, any municipality that has a Board

4 licensed horse race meeting at a race track wholly within its

5 corporate boundaries or a township that has a Board licensed

6 horse race meeting at a race track wholly within the

7 unincorporated area of the township may charge a local

8 amusement tax not to exceed 10� per admission to such horse

9 race meeting by the enactment of an ordinance. However, any

10 municipality or county that has a Board licensed inter-track

11 wagering location facility wholly within its corporate

12 boundaries may each impose an admission fee not to exceed $1.00

13 per admission to such inter-track wagering location facility,

14 so that a total of not more than $2.00 per admission may be

15 imposed. Except as provided in subparagraph (g) of Section 27

16 of this Act, the inter-track wagering location licensee shall

17 collect any and all such fees and within 48 hours remit the

18 fees to the Board, which shall, pursuant to rule, cause the

19 fees to be distributed to the county or municipality.

20 (g) Notwithstanding any provision in this Act to the

21 contrary, if in any calendar year the total taxes and feesfrom

22 wagering on live racing and from inter-track wagering required

23 to be collected from licensees and distributed under this Act

24 to all State and local governmental authorities exceeds the

25 amount of such taxes and fees distributed to each State and

26 local governmental authority to which each State and local

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1 governmental authority was entitled under this Act for calendar

2 year 1994, then the first $11 million of that excess amount

3 shall be allocated at the earliest possible date for

4 distribution as purse money for the succeeding calendar year.

5 Upon reaching the 1994 level, and until the excess amount of

6 taxes and fees exceeds $11 million, the Board shall direct all

7 licensees to cease paying the subject taxes and fees and the

8 Board shall direct all licensees to allocate any such excess

9 amount 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

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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

8 collected and distributed to State and local governmental

9 authorities exceeds $11 million, that excess amount shall be

10 collected and distributed to State and local authorities as

11 provided for under this Act.

12 (Source: P.A. 97-1060, eff. 8-24-12; 98-18, eff. 6-7-13;

13 98-624, 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

16 policy of this State to encourage the breeding of thoroughbred

17 horses in this State and the ownership of such horses by

18 residents of this State in order to provide for: sufficient

19 numbers of high quality thoroughbred horses to participate in

20 thoroughbred racing meetings in this State, and to establish

21 and preserve the agricultural and commercial benefits of such

22 breeding and racing industries to the State of Illinois. It is

23 the intent of the General Assembly to further this policy by

24 the provisions of this Act.

25 (b) Each organization licensee conducting a thoroughbred

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1 racing meeting pursuant to this Act shall provide at least two

2 races each day limited to Illinois conceived and foaled horses

3 or Illinois foaled horses or both. A minimum of 6 races shall

4 be conducted each week limited to Illinois conceived and foaled

5 or Illinois foaled horses or both. No horses shall be permitted

6 to start in such races unless duly registered under the rules

7 of the Department of Agriculture.

8 (c) Conditions of races under subsection (b) shall be

9 commensurate with past performance, quality, and class of

10 Illinois conceived and foaled and Illinois foaled horses

11 available. If, however, sufficient competition cannot be had

12 among horses of that class on any day, the races may, with

13 consent of the Board, be eliminated for that day and substitute

14 races provided.

15 (d) There is hereby created a special fund of the State

16 Treasury to be known as the Illinois Thoroughbred Breeders

17 Fund.

18 Beginning on the effective date of this amendatory Act of

19 the 99th General Assembly, the Illinois Thoroughbred Breeders

20 Fund shall become a non-appropriated trust fund held separately

21 from State moneys. Expenditures from this Fund shall no longer

22 be subject to appropriation.

23 Except as provided in subsection (g) of Section 27 of this

24 Act, 8.5% of all the monies received by the State as privilege

25 taxes on Thoroughbred racing meetings shall be paid into the

26 Illinois Thoroughbred Breeders Fund.

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1 Notwithstanding any provision of law to the contrary,

2 amounts deposited into the Illinois Thoroughbred Breeders Fund

3 from revenues generated by electronic gaming after the

4 effective date of this amendatory Act of the 99th General

5 Assembly shall be in addition to tax and fee amounts paid under

6 this Section for calendar year 2015 and thereafter.

7 (e) The Illinois Thoroughbred Breeders Fund shall be

8 administered by the Department of Agriculture with the advice

9 and assistance of the Advisory Board created in subsection (f)

10 of this Section.

11 (f) The Illinois Thoroughbred Breeders Fund Advisory Board

12 shall consist of the Director of the Department of Agriculture,

13 who shall serve as Chairman; a member of the Illinois Racing

14 Board, designated by it; 2 representatives of the organization

15 licensees conducting thoroughbred racing meetings, recommended

16 by them; 2 representatives of the Illinois Thoroughbred

17 Breeders and Owners Foundation, recommended by it; one

18 representative ~~and 2 representatives~~ of the Horsemen's

19 Benevolent Protective Association; and one representative from

20 the Illinois Thoroughbred Horsemen's Association ~~or any~~

21 ~~successor organization established in Illinois comprised of~~

22 ~~the largest number of owners and trainers, recommended by it,~~

23 ~~with one representative of the Horsemen's Benevolent and~~

24 ~~Protective Association to come from its Illinois Division, and~~

25 ~~one from its Chicago Division~~. Advisory Board members shall

26 serve for 2 years commencing January 1 of each odd numbered

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1 year. If representatives of the organization licensees

2 conducting thoroughbred racing meetings, the Illinois

3 Thoroughbred Breeders and Owners Foundation,~~and~~ the

4 Horsemen's Benevolent Protection Association, and the Illinois

5 Thoroughbred Horsemen's Associationhave not been recommended

6 by January 1, of each odd numbered year, the Director of the

7 Department of Agriculture shall make an appointment for the

8 organization failing to so recommend a member of the Advisory

9 Board. Advisory Board members shall receive no compensation for

10 their services as members but shall be reimbursed for all

11 actual and necessary expenses and disbursements incurred in the

12 execution of their official duties.

13 (g) ~~No monies shall be expended from the Illinois~~

14 ~~Thoroughbred Breeders Fund except as appropriated by the~~

15 ~~General Assembly.~~Moniesexpended ~~appropriated~~ from the

16 Illinois Thoroughbred Breeders Fund shall be expended by the

17 Department of Agriculture, with the advice and assistance of

18 the Illinois Thoroughbred Breeders Fund Advisory Board, for the

19 following 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

15 to administrative charges or chargebacks, including, but not

16 limited to, those authorized under Section 8h of the State

17 Finance Act. ~~Whenever the Governor finds that the amount in the~~

18 ~~Illinois Thoroughbred Breeders Fund is more than the total of~~

19 ~~the outstanding appropriations from such fund, the Governor~~

20 ~~shall notify the State Comptroller and the State Treasurer of~~

21 ~~such fact. The Comptroller and the State Treasurer, upon~~

22 ~~receipt of such notification, shall transfer such excess amount~~

23 ~~from the Illinois Thoroughbred Breeders Fund to the General~~

24 ~~Revenue Fund.~~

25 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

26 every purse won by an Illinois foaled or an Illinois conceived

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1 and foaled horse in races not limited to Illinois foaled horses

2 or Illinois conceived and foaled horses, or both, shall be paid

3 by the organization licensee conducting the horse race meeting.

4 Such sum shall be paid 50%from the organization licensee's

5 account and 50% from the purse account of the licensee ~~share of~~

6 ~~the money wagered~~as follows: 11 1/2% to the breeder of the

7 winning horse and 1 1/2% ~~1%~~ to the organization representing

8 thoroughbred breeders and owners whose representative serves

9 on the Illinois Thoroughbred Breeders Fund Advisory Board for

10 verifying the amounts of breeders' awards earned, assuring

11 their distribution in accordance with this Act, and servicing

12 and promoting the Illinois thoroughbred horse racing industry.

13 Except for that track that races in Madison County, beginning

14 in the calendar year in which an organization licensee that is

15 eligible to receive payment under paragraph (13) of subsection

16 (g) of Section 26 of this Act begins to receive funds from

17 electronic gaming, a sum equal to 21 1/2% of the first prize

18 money of every purse won by an Illinois foaled or an Illinois

19 conceived and foaled horse in races not limited to Illinois

20 foaled horses or Illinois conceived and foaled horses, or both,

21 shall be paid by the organization licensee conducting the horse

22 race meeting. Such sum shall be paid 30% from the organization

23 licensee's account and 70% from the purse account of the

24 licensee as follows: 20% to the breeder of the winning horse

25 and 1 1/2% to the organization representing thoroughbred

26 breeders and owners whose representative serves on the Illinois

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1 Thoroughbred Breeders Fund Advisory Board for verifying the

2 amounts of breeders' awards earned, ensuring their

3 distribution in accordance with this Act, and service and

4 promotion of the Illinois thoroughbred horse racing industry.

5 The organization representing thoroughbred breeders and owners

6 shall cause all expenditures of monies received under this

7 subsection (i) to be audited at least annually by a registered

8 public accountant. The organization shall file copies of each

9 annual audit with the Racing Board, the Clerk of the House of

10 Representatives and the Secretary of the Senate, and shall make

11 copies of each annual audit available to the public upon

12 request and upon payment of the reasonable cost of photocopying

13 the requested number of copies. Such payments shall not reduce

14 any award to the owner of the horse or reduce the taxes payable

15 under this Act. Upon completion of its racing meet, each

16 organization licensee shall deliver to the organization

17 representing thoroughbred breeders and owners whose

18 representative serves on the Illinois Thoroughbred Breeders

19 Fund Advisory Board a listing of all the Illinois foaled and

20 the Illinois conceived and foaled horses which won breeders'

21 awards and the amount of such breeders' awards under this

22 subsection to verify accuracy of payments and assure proper

23 distribution of breeders' awards in accordance with the

24 provisions of this Act. Such payments shall be delivered by the

25 organization licensee within 30 days of the end of each race

26 meeting.

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1 (j) A sum equal to 13% ~~12 1/2%~~ of the first prize money won

2 in each race limited to Illinois foaled horses or Illinois

3 conceived and foaled horses, or both, shall be paid in the

4 following manner by the organization licensee conducting the

5 horse race meeting, 50%from the organization licensee's

6 account and 50% from the purse account of the licensee ~~share of~~

7 ~~the money wagered~~: 11 1/2% to the breeders of the horses in

8 each such race which are the official first, second, third and

9 fourth finishers and 1 1/2% ~~1%~~ to the organization representing

10 thoroughbred breeders and owners whose representative serves

11 on the Illinois Thoroughbred Breeders Fund Advisory Board for

12 verifying the amounts of breeders' awards earned, assuring

13 their proper distribution in accordance with this Act, and

14 servicing and promoting the Illinois thoroughbred horse racing

15 industry. The organization representing thoroughbred breeders

16 and owners shall cause all expenditures of monies received

17 under this subsection (j) to be audited at least annually by a

18 registered public accountant. The organization shall file

19 copies of each annual audit with the Racing Board, the Clerk of

20 the House of Representatives and the Secretary of the Senate,

21 and shall make copies of each annual audit available to the

22 public upon request and upon payment of the reasonable cost of

23 photocopying the requested number of copies.

24 The 11 1/2% paid to the breeders in accordance with this

25 subsection 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

9 horse or reduce the taxes payable under this Act. Upon

10 completion of its racing meet, each organization licensee shall

11 deliver to the organization representing thoroughbred breeders

12 and owners whose representative serves on the Illinois

13 Thoroughbred Breeders Fund Advisory Board a listing of all the

14 Illinois foaled and the Illinois conceived and foaled horses

15 which won breeders' awards and the amount of such breeders'

16 awards in accordance with the provisions of this Act. Such

17 payments shall be delivered by the organization licensee within

18 30 days of the end of each race meeting.

19 (k) The term "breeder", as used herein, means the owner of

20 the mare at the time the foal is dropped. An "Illinois foaled

21 horse" is a foal dropped by a mare which enters this State on

22 or before December 1, in the year in which the horse is bred,

23 provided the mare remains continuously in this State until its

24 foal is born. An "Illinois foaled horse" also means a foal born

25 of a mare in the same year as the mare enters this State on or

26 before March 1, and remains in this State at least 30 days

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1 after foaling, is bred back during the season of the foaling to

2 an Illinois Registered Stallion (unless a veterinarian

3 certifies that the mare should not be bred for health reasons),

4 and is not bred to a stallion standing in any other state

5 during the season of foaling. An "Illinois foaled horse" also

6 means a foal born in Illinois of a mare purchased at public

7 auction subsequent to the mare entering this Stateon or before

8 March 1 ~~prior to February 1~~of the foaling year providing the

9 mare is owned solely by one or more Illinois residents or an

10 Illinois entity that is entirely owned by one or more Illinois

11 residents.

12 (l) The Department of Agriculture shall, by rule, with the

13 advice and assistance of the Illinois Thoroughbred Breeders

14 Fund 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

18 assistance of the Illinois Thoroughbred Breeders Fund Advisory

19 Board, shall provide that certain races limited to Illinois

20 conceived and foaled and Illinois foaled horses be stakes races

21 and determine the total amount of stakes and awards to be paid

22 to the owners of the winning horses in such races.

23 In determining the stakes races and the amount of awards

24 for such races, the Department of Agriculture shall consider

25 factors, including but not limited to, the amount of money

26 appropriated for the Illinois Thoroughbred Breeders Fund

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1 program, organization licensees' contributions, availability

2 of stakes caliber horses as demonstrated by past performances,

3 whether the race can be coordinated into the proposed racing

4 dates within organization licensees' racing dates, opportunity

5 for colts and fillies and various age groups to race, public

6 wagering on such races, and the previous racing schedule.

7 (n) The Board and the organizational licensee shall notify

8 the Department of the conditions and minimum purses for races

9 limited to Illinois conceived and foaled and Illinois foaled

10 horses conducted for each organizational licensee conducting a

11 thoroughbred racing meeting. The Department of Agriculture

12 with the advice and assistance of the Illinois Thoroughbred

13 Breeders Fund Advisory Board may allocate monies for purse

14 supplements for such races. In determining whether to allocate

15 money and the amount, the Department of Agriculture shall

16 consider factors, including but not limited to, the amount of

17 money appropriated for the Illinois Thoroughbred Breeders Fund

18 program, the number of races that may occur, and the

19 organizational 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

25 this State to encourage the breeding of racing quarter horses

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1 in this State and the ownership of such horses by residents of

2 this State in order to provide for sufficient numbers of high

3 quality racing quarter horses in this State and to establish

4 and preserve the agricultural and commercial benefits of such

5 breeding and racing industries to the State of Illinois. It is

6 the intent of the General Assembly to further this policy by

7 the provisions of this Act.

8 (b) There is hereby created a non-appropriated trust

9 ~~special~~ fund ~~in the State Treasury~~to be known as the Illinois

10 Racing Quarter Horse Breeders Fund, which is held separately

11 from State moneys. Except as provided in subsection (g) of

12 Section 27 of this Act, 8.5% of all the moneys received by the

13 State as pari-mutuel taxes on quarter horse racing shall be

14 paid into the Illinois Racing Quarter Horse Breeders Fund.The

15 Illinois Racing Quarter Horse Breeders Fund shall not be

16 subject to administrative charges or chargebacks, including,

17 but not limited to, those authorized under Section 8h of the

18 State Finance Act.

19 (c) The Illinois Racing Quarter Horse Breeders Fund shall

20 be administered by the Department of Agriculture with the

21 advice and assistance of the Advisory Board created in

22 subsection (d) of this Section.

23 (d) The Illinois Racing Quarter Horse Breeders Fund

24 Advisory Board shall consist of the Director of the Department

25 of Agriculture, who shall serve as Chairman; a member of the

26 Illinois Racing Board, designated by it; one representative of

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1 the organization licensees conducting pari-mutuel quarter

2 horse racing meetings, recommended by them; 2 representatives

3 of the Illinois Running Quarter Horse Association, recommended

4 by it; and the Superintendent of Fairs and Promotions from the

5 Department of Agriculture. Advisory Board members shall serve

6 for 2 years commencing January 1 of each odd numbered year. If

7 representatives have not been recommended by January 1 of each

8 odd numbered year, the Director of the Department of

9 Agriculture may make an appointment for the organization

10 failing to so recommend a member of the Advisory Board.

11 Advisory Board members shall receive no compensation for their

12 services as members but may be reimbursed for all actual and

13 necessary expenses and disbursements incurred in the execution

14 of their official duties.

15 (e) Moneys in ~~No moneys shall be expended from the Illinois~~

16 ~~Racing Quarter Horse Breeders Fund except as appropriated by~~

17 ~~the General Assembly. Moneys appropriated from~~ the Illinois

18 Racing Quarter Horse Breeders Fund shall be expended by the

19 Department of Agriculture, with the advice and assistance of

20 the Illinois Racing Quarter Horse Breeders Fund Advisory Board,

21 for 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

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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

6 advice and assistance of the Illinois Racing Quarter Horse

7 Breeders 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

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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

5 assistance of the Illinois Racing Quarter Horse Breeders Fund

6 Advisory Board, shall provide that certain races limited to

7 Illinois conceived and foaled be stakes races and determine the

8 total amount of stakes and awards to be paid to the owners of

9 the 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

13 policy of this State to encourage the breeding of standardbred

14 horses in this State and the ownership of such horses by

15 residents of this State in order to provide for: sufficient

16 numbers of high quality standardbred horses to participate in

17 harness racing meetings in this State, and to establish and

18 preserve the agricultural and commercial benefits of such

19 breeding and racing industries to the State of Illinois. It is

20 the intent of the General Assembly to further this policy by

21 the provisions of this Section of this Act.

22 (b) Each organization licensee conducting a harness racing

23 meeting pursuant to this Act shall provide for at least two

24 races each race program limited to Illinois conceived and

25 foaled horses. A minimum of 6 races shall be conducted each

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1 week limited to Illinois conceived and foaled horses. No horses

2 shall be permitted to start in such races unless duly

3 registered under the rules of the Department of Agriculture.

4 (b-5) Organization licensees, not including the Illinois

5 State Fair or the DuQuoin State Fair, shall provide stake races

6 and early closer races for Illinois conceived and foaled horses

7 so that purses distributed for such races shall be no less than

8 17% of total purses distributed for harness racing in that

9 calendar year in addition to any stakes payments and starting

10 fees contributed by horse owners.

11 (b-10) Each organization licensee conducting a harness

12 racing meeting pursuant to this Act shall provide an owner

13 award to be paid from the purse account equal to 25% of the

14 amount earned by Illinois conceived and foaled horses in races

15 that are not restricted to Illinois conceived and foaled

16 horses. 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

19 commensurate with past performance, quality and class of

20 Illinois conceived and foaled horses available. If, however,

21 sufficient competition cannot be had among horses of that class

22 on any day, the races may, with consent of the Board, be

23 eliminated for that day and substitute races provided.

24 (d) There is hereby created a special fund of the State

25 Treasury to be known as the Illinois Standardbred Breeders

26 Fund.

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1 During the calendar year 1981, and each year thereafter,

2 except as provided in subsection (g) of Section 27 of this Act,

3 eight and one-half per cent of all the monies received by the

4 State as privilege taxes on harness racing meetings shall be

5 paid into the Illinois Standardbred Breeders Fund.

6 (e) The Illinois Standardbred Breeders Fund shall be

7 administered by the Department of Agriculture with the

8 assistance and advice of the Advisory Board created in

9 subsection (f) of this Section.

10 (f) The Illinois Standardbred Breeders Fund Advisory Board

11 is hereby created. The Advisory Board shall consist of the

12 Director of the Department of Agriculture, who shall serve as

13 Chairman; the Superintendent of the Illinois State Fair; a

14 member of the Illinois Racing Board, designated by it; a

15 representative of the Illinois Standardbred Owners and

16 Breeders Association, recommended by it; a representative of

17 the Illinois Association of Agricultural Fairs, recommended by

18 it, such representative to be from a fair at which Illinois

19 conceived and foaled racing is conducted; a representative of

20 the organization licensees conducting harness racing meetings,

21 recommended by them and a representative of the Illinois

22 Harness Horsemen's Association, recommended by it. Advisory

23 Board members shall serve for 2 years commencing January 1, of

24 each odd numbered year. If representatives of the Illinois

25 Standardbred Owners and Breeders Associations, the Illinois

26 Association of Agricultural Fairs, the Illinois Harness

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1 Horsemen's Association, and the organization licensees

2 conducting harness racing meetings have not been recommended by

3 January 1, of each odd numbered year, the Director of the

4 Department of Agriculture shall make an appointment for the

5 organization failing to so recommend a member of the Advisory

6 Board. Advisory Board members shall receive no compensation for

7 their services as members but shall be reimbursed for all

8 actual and necessary expenses and disbursements incurred in the

9 execution of their official duties.

10 (g) No monies shall be expended from the Illinois

11 Standardbred Breeders Fund except as appropriated by the

12 General Assembly. Monies appropriated from the Illinois

13 Standardbred Breeders Fund shall be expended by the Department

14 of Agriculture, with the assistance and advice of the Illinois

15 Standardbred Breeders Fund Advisory Board for the following

16 purposes only:

17 1. To provide purses for races limited to Illinois

18 conceived and foaled horses at the State Fairand 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~~

2 ~~the Illinois Standardbred Breeders Fund is more than the total~~

3 ~~of the outstanding appropriations from such fund, the Governor~~

4 ~~shall notify the State Comptroller and the State Treasurer of~~

5 ~~such fact. The Comptroller and the State Treasurer, upon~~

6 ~~receipt of such notification, shall transfer such excess amount~~

7 ~~from the Illinois Standardbred Breeders Fund to the General~~

8 ~~Revenue Fund~~.

9 (i) A sum equal to 13% ~~12 1/2%~~ of the first prize money of

10 the gross ~~every~~purse won by an Illinois conceived and foaled

11 horse shall be paid 50%by the organization licensee conducting

12 the horse race meeting to the breeder of such winning horse

13 from the organization licensee's account and 50% from the purse

14 account of the licensee ~~share of the money wagered~~. Such

15 payment shall not reduce any award to the owner of the horse or

16 reduce the taxes payable under this Act. Such payment shall be

17 delivered by the organization licensee at the end of each

18 quarter ~~race meeting~~.

19 (j) The Department of Agriculture shall, by rule, with the

20 assistance and advice of the Illinois Standardbred Breeders

21 Fund 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 conceivedin 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

15 assistance of the Illinois Standardbred Breeders Fund Advisory

16 Board, may allocate monies for purse supplements for such

17 races. In determining whether to allocate money and the amount,

18 the Department of Agriculture shall consider factors,

19 including but not limited to, the amount of money appropriated

20 for the Illinois Standardbred Breeders Fund program, the number

21 of races that may occur, and an organizational licensee's purse

22 structure. The organizational licensee shall notify the

23 Department of Agriculture of the conditions and minimum purses

24 for races limited to Illinois conceived and foaled horses to be

25 conducted by each organizational licensee conducting a harness

26 racing meeting for which purse supplements have been

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1 negotiated.

2 (l) All races held at county fairs and the State Fair which

3 receive funds from the Illinois Standardbred Breeders Fund

4 shall be conducted in accordance with the rules of the United

5 States Trotting Association unless otherwise modified by the

6 Department of Agriculture.

7 (m) At all standardbred race meetings held or conducted

8 under authority of a license granted by the Board, and at all

9 standardbred races held at county fairs which are approved by

10 the Department of Agriculture or at the Illinois or DuQuoin

11 State Fairs, no one shall jog, train, warm up or drive a

12 standardbred horse unless he or she is wearing a protective

13 safety helmet, with the chin strap fastened and in place, which

14 meets the standards and requirements as set forth in the 1984

15 Standard for Protective Headgear for Use in Harness Racing and

16 Other Equestrian Sports published by the Snell Memorial

17 Foundation, or any standards and requirements for headgear the

18 Illinois Racing Board may approve. Any other standards and

19 requirements so approved by the Board shall equal or exceed

20 those published by the Snell Memorial Foundation. Any

21 equestrian helmet bearing the Snell label shall be deemed to

22 have 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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1 contribute annually to charity the sum of $1,000,000~~$750,000~~

2 to non-profit organizations that provide medical and family,

3 counseling, and similar services to persons who reside or work

4 on the backstretch of Illinois racetracks. These contributions

5 shall be collected as follows: (i) no later than July 1st of

6 each year the Board shall assess each organization licensee,

7 except those tracks which are not within 100 miles of each

8 other which tracks shall pay$40,000 ~~$30,000~~ annually apiece

9 into the Board charity fund, that amount which equals$920,000

10 ~~$690,000~~multiplied by the amount of pari-mutuel wagering

11 handled by the organization licensee in the year preceding

12 assessment and divided by the total pari-mutuel wagering

13 handled by all Illinois organization licensees, except those

14 tracks which are not within 100 miles of each other, in the

15 year preceding assessment; (ii) notice of the assessed

16 contribution shall be mailed to each organization licensee;

17 (iii) within thirty days of its receipt of such notice, each

18 organization licensee shall remit the assessed contribution to

19 the Board. If an organization licensee wilfully fails to so

20 remit the contribution, the Board may revoke its license to

21 conduct horse racing.

22 (b) No later than October 1st of each year, any qualified

23 charitable organization seeking an allotment of contributed

24 funds shall submit to the Board an application for those funds,

25 using the Board's approved form. No later than December 31st of

26 each year, the Board shall distribute all such amounts

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1 collected that year to such charitable organization

2 applicants.

3 (Source: P.A. 87-110.)

4 (230 ILCS 5/32.1)

5 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

6 real estate equalization.

7 (a) In order to encourage new investment in Illinois

8 racetrack facilities and mitigate differing real estate tax

9 burdens among all racetracks, the licensees affiliated or

10 associated with each racetrack that has been awarded live

11 racing dates in the current year shall receive an immediate

12 pari-mutuel tax credit in an amount equal to the greater of (i)

13 50% of the amount of the real estate taxes paid in the prior

14 year attributable to that racetrack, or (ii) the amount by

15 which the real estate taxes paid in the prior year attributable

16 to that racetrack exceeds 60% of the average real estate taxes

17 paid in the prior year for all racetracks awarded live horse

18 racing meets in the current year.

19 Each year, regardless of whether the organization licensee

20 conducted live racing in the year of certification, the Board

21 shall certify in writing, prior to December 31, the real estate

22 taxes paid in that year for each racetrack and the amount of

23 the pari-mutuel tax credit that each organization licensee,

24 intertrack wagering licensee, and intertrack wagering location

25 licensee that derives its license from such racetrack is

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1 entitled in the succeeding calendar year. The real estate taxes

2 considered under this Section for any racetrack shall be those

3 taxes on the real estate parcels and related facilities used to

4 conduct a horse race meeting and inter-track wagering at such

5 racetrack under this Act. In no event shall the amount of the

6 tax credit under this Section exceed the amount of pari-mutuel

7 taxes otherwise calculated under this Act. The amount of the

8 tax credit under this Section shall be retained by each

9 licensee and shall not be subject to any reallocation or

10 further distribution under this Act. The Board may promulgate

11 emergency rules to implement this Section.

12 (b) Beginning on January 1 following the calendar year

13 during which an organization licensee begins conducting

14 electronic gaming operations pursuant to an electronic gaming

15 license issued under the Illinois Gambling Act, the

16 organization licensee shall be ineligible to receive a tax

17 credit 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

21 Department of Agriculture shall jointly establish a program for

22 the purpose of conducting drug testing of horses at county

23 fairs and shall adopt any rules necessary for enforcement of

24 the program. The rules shall include appropriate penalties for

25 violations.

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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

3 to any horse a hypnotic, narcotic, stimulant, depressant or any

4 chemical substance which may affect the speed of a horse at any

5 time in any race where the purse or any part of the purse is

6 made of money authorized by any Section of this Act, except

7 those chemical substances permitted by ruling of the Board,

8 internally, externally or by hypodermic method in a race or

9 prior thereto, or whoever knowingly enters a horse in any race

10 within a period of 24 hours after any hypnotic, narcotic,

11 stimulant, depressant or any other chemical substance which may

12 affect the speed of a horse at any time, except those chemical

13 substances permitted by ruling of the Board, has been

14 administered to such horse either internally or externally or

15 by hypodermic method for the purpose of increasing or retarding

16 the speed of such horse shall be guilty of a Class 4 felony.

17 The Board shall suspend or revoke such violator's license.

18 (b) The term "hypnotic" as used in this Section includes

19 all barbituric acid preparations and derivatives.

20 (c) The term "narcotic" as used in this Section includes

21 opium and all its alkaloids, salts, preparations and

22 derivatives, cocaine and all its salts, preparations and

23 derivatives and substitutes.

24 (d) The provisions of this Section 36 and the treatment

25 authorized herein apply to horses entered in and competing in

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1 race meetings as defined in Section 3.07 of this Act and to

2 horses 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

6 certain licensees and applicants.

7 (a) The General Assembly has a compelling interest in

8 protecting the integrity of both the electoral process and the

9 legislative process by preventing corruption and the

10 appearance of corruption which may arise through permitting

11 certain political campaign contributions by certain persons

12 involved in the horse racing industry and regulated by the

13 State. Unlike most other regulated industries, horse racing is

14 especially susceptible to corruption and potential criminal

15 influence. In Illinois, only licensed horse racing is legal and

16 all other such activities are strictly prohibited. Given these

17 circumstances, it is imperative to eliminate any potential

18 corrupt influence in the horse racing industry and the

19 electoral process.

20 Banning political campaign contributions by certain

21 persons subject to this Section to State officeholders and

22 candidates for such offices and to county and municipal

23 officeholders and candidates for such offices in counties and

24 municipalities that receive financial benefits from horse

25 racing is necessary to prevent corruption and the appearance of

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1 corruption that may arise when political campaign

2 contributions and horse racing that is regulated by the State

3 and that confers benefits on counties and municipalities are

4 intermingled.

5 (b) As used in this Section:

6 "Affiliated entity" means (i) any corporate parent and each

7 operating subsidiary of the business entity applying for or

8 holding a license, (ii) each operating subsidiary of the

9 corporate parent of the business entity applying for or holding

10 a license, (iii) any organization recognized by the United

11 States Internal Revenue Service as a tax-exempt organization

12 described in Section 501(c) of the Internal Revenue Code of

13 1986 (or any successor provision of federal tax law)

14 established by one or more business entities seeking or holding

15 a license, any affiliated entity of such business entity, or

16 any affiliated person of such business entity, and (iv) any

17 political committee for which the business entity applying for

18 or holding a license, or any 501(c) organization described in

19 item (iii) related to that business entity, is the sponsoring

20 entity, as defined in Section 9-3 of the Election Code. For

21 purposes of item (iv), the funding of all business entities

22 applying for or holding a license shall be aggregated in

23 determining whether such political committee is an affiliated

24 entity.

25 "Affiliated person" means (i) any person with any ownership

26 interest or distributive share in excess of 1% of any business

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1 entity applying for or holding a license, (ii) executive

2 employees of any such business entity, and (iii) the spouse of

3 the persons described in items (i) and (ii).

4 "Business entity" means any entity doing business for

5 profit, whether organized as a corporation, partnership, sole

6 proprietorship, limited liability company, or otherwise.

7 "Contribution" means a contribution as defined in Section

8 9-1.4 of the Election Code.

9 "Declared candidate" means a person who has filed a

10 statement of candidacy and petition for nomination or election

11 in the principal office of the State Board of Elections, or in

12 the office of the appropriate election authority for any county

13 or municipality in which a race track is located.

14 "Executive employee" means (i) any person who is an officer

15 or director or who fulfills duties equivalent to those of an

16 officer or director of a business entity applying for or

17 holding a license and (ii) any employee of such business entity

18 who is required to register under the Lobbyist Registration

19 Act.

20 "License" means any organization, inter-track wagering,

21 inter-track wagering location, advance deposit wagering or

22 concessionaire license issued pursuant to this Act.

23 "Officeholder" means the Governor, Lieutenant Governor,

24 Attorney General, Secretary of State, Comptroller, Treasurer,

25 member of the General Assembly, or any officeholder in any

26 county or municipality in which a race track is located.

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1 (c) Any person or business entity applying for or holding a

2 license, any affiliated entities or persons of such business

3 entity, any horsemen's association, and any entities or persons

4 soliciting a contribution or causing a contribution to be made

5 on behalf of such person, business entity, or horsemen's

6 association, are prohibited from making any contribution to any

7 officeholder or declared candidate or any political committee

8 affiliated with any officeholder or declared candidate, as

9 defined in Section 9-1.8 of the Election Code. This prohibition

10 shall commence upon filing of an application for a license and

11 shall continue for a period of 2 years after termination,

12 suspension or revocation of the license.

13 The Board shall have authority to suspend, revoke, or

14 restrict the license and to impose civil penalties of up to

15 $100,000 for each violation of this subsection (c). A notice of

16 each such violation and the penalty imposed shall be published

17 on the Board's Internet website and in the Illinois Register.

18 Payments received by the State pursuant to this subsection

19 shall be deposited into the General Revenue Fund.

20 Any officeholder or declared candidate or any political

21 committee affiliated with any officeholder or declared

22 candidate that has received a contribution in violation of this

23 subsection (c) shall pay an amount equal to the value of the

24 contribution to the State no more than 30 days after notice of

25 the violation concerning the contribution appears in the

26 Illinois Register. Payments received by the State pursuant to

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1 this subsection (c) shall be deposited into the General Revenue

2 Fund.

3 (d) The Board shall post on its website a list of all

4 persons, business entities, horsemen's associations, and

5 affiliated entities prohibited from making contributions to

6 any officeholder or declared candidate political committee

7 pursuant to subsection (c), which list shall be updated and

8 published, at a minimum, every 6 months.

9 Any person, business entity, horsemen's association, or

10 affiliated entity prohibited from making contributions to any

11 officeholder or declared candidate political committee

12 pursuant to subsection (c) shall notify the Board within 7 days

13 after discovering any necessary change or addition to the

14 information relating to that person, business entity,

15 horsemen's association, or affiliated entity contained in the

16 list.

17 An individual who acts in good faith and in reliance on any

18 information contained in the list shall not be subject to any

19 penalties or liability imposed for a violation of this Section.

20 (e) If any provision of this Section is held invalid or its

21 application to any person or circumstance is held invalid, the

22 invalidity of that provision or application does not affect the

23 other provisions or applications of this Section that can be

24 given effect without the invalid application or provision.

25 (230 ILCS 5/40) (from Ch. 8, par. 37-40)

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1 Sec. 40. (a) The imposition of any fine or penalty provided

2 in this Act shall not preclude the Board in its rules and

3 regulations from imposing a fine or penalty for any other

4 action which, in the Board's discretion, is a detriment or

5 impediment to horse racing.

6 (b) The Director of Agriculture or his or her authorized

7 representative shall impose the following monetary penalties

8 and hold administrative hearings as required for failure to

9 submit the following applications, lists, or reports within the

10 time period, date or manner required by statute or rule or for

11 removing 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

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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

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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

7 this Section 3 times within a 5 year period shall have any

8 further monetary penalties imposed at double the amounts set

9 forth above. All monies assessed and collected for violations

10 relating to thoroughbreds shall be paid into the Thoroughbred

11 Breeders Fund. All monies assessed and collected for violations

12 relating to standardbreds shall be paid into the Standardbred

13 Breeders Fund.

14 (Source: P.A. 87-397.)

15 (230 ILCS 5/54)

16 Sec. 54. Horse Racing Equity Fund.

17 (a) There is created in the State Treasury a Fund to be

18 known as the Horse Racing Equity Fund. The Fund shall consist

19 of moneys paid into it pursuant to subsection (c-5) of Section

20 13 of the Illinois ~~Riverboat~~Gambling Act. The Fund shall be

21 administered by the Racing Board.

22 (b) The moneys deposited into the Fund shall be distributed

23 by the Racing Board within 10 days after those moneys are

24 deposited into the Fund as follows:

25 (1) Fifty percent of all moneys distributed under this

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1 subsection shall be distributed to organization licensees

2 to be distributed at their race meetings as purses.

3 Fifty-seven percent of the amount distributed under this

4 paragraph (1) shall be distributed for thoroughbred race

5 meetings and 43% shall be distributed for standardbred race

6 meetings. Within each breed, moneys shall be allocated to

7 each organization licensee's purse fund in accordance with

8 the ratio between the purses generated for that breed by

9 that licensee during the prior calendar year and the total

10 purses generated throughout the State for that breed during

11 the prior calendar year.

12 (2) The remaining 50% of the moneys distributed under

13 this subsection (b) shall be distributed pro rata according

14 to the aggregate proportion of state-wide handle at the

15 racetrack, inter-track, and inter-track wagering locations

16 that derive their licenses from a racetrack identified in

17 this paragraph (2) for calendar years 1994, 1996, and 1997

18 to (i) any person (or its successors or assigns) who had

19 operating control of a racing facility at which live racing

20 was conducted in calendar year 1997 and who has operating

21 control of an organization licensee that conducted racing

22 in calendar year 1997 and is a licensee in the current

23 year, or (ii) any person (or its successors or assigns) who

24 has operating control of a racing facility located in a

25 county that is bounded by the Mississippi River that has a

26 population of less than 150,000 according to the 1990

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1 decennial census and conducted an average of 60 days of

2 racing per year between 1985 and 1993 and has been awarded

3 an inter-track wagering license in the current year.

4 If any person identified in this paragraph (2) becomes

5 ineligible to receive moneys from the Fund, such amount

6 shall be redistributed among the remaining persons in

7 proportion to their percentages otherwise calculated.

8 (Source: P.A. 98-18, eff. 6-7-13.)

9 (230 ILCS 5/54.75)

10 Sec. 54.75. Horse Racing Equity Trust Fund.

11 (a) There is created a Fund to be known as the Horse Racing

12 Equity Trust Fund, which is a non-appropriated trust fund held

13 separate and apart from State moneys. The Fund shall consist of

14 moneys paid into it by owners licensees under theIllinois

15 ~~Riverboat~~ Gambling Act for the purposes described in this

16 Section. The Fund shall be administered by the Board. Moneys in

17 the Fund shall be distributed as directed and certified by the

18 Board in accordance with the provisions of subsection (b).

19 (b) The moneys deposited into the Fund, plus any accrued

20 interest on those moneys, shall be distributed within 10 days

21 after those moneys are deposited into the Fund as follows:

22 (1) Sixty percent of all moneys distributed under this

23 subsection shall be distributed to organization licensees

24 to be distributed at their race meetings as purses.

25 Fifty-seven percent of the amount distributed under this

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1 paragraph (1) shall be distributed for thoroughbred race

2 meetings and 43% shall be distributed for standardbred race

3 meetings. Within each breed, moneys shall be allocated to

4 each organization licensee's purse fund in accordance with

5 the ratio between the purses generated for that breed by

6 that licensee during the prior calendar year and the total

7 purses generated throughout the State for that breed during

8 the prior calendar year by licensees in the current

9 calendar year.

10 (2) The remaining 40% of the moneys distributed under

11 this subsection (b) shall be distributed as follows:

12 (A) 11% shall be distributed to any person (or its

13 successors or assigns) who had operating control of a

14 racetrack that conducted live racing in 2002 at a

15 racetrack in a county with at least 230,000 inhabitants

16 that borders the Mississippi River and is a licensee in

17 the current year; and

18 (B) the remaining 89% shall be distributed pro rata

19 according to the aggregate proportion of total handle

20 from wagering on live races conducted in Illinois

21 (irrespective of where the wagers are placed) for

22 calendar years 2004 and 2005 to any person (or its

23 successors or assigns) who (i) had majority operating

24 control of a racing facility at which live racing was

25 conducted in calendar year 2002, (ii) is a licensee in

26 the current year, and (iii) is not eligible to receive

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1 moneys under subparagraph (A) of this paragraph (2).

2 The moneys received by an organization licensee

3 under this paragraph (2) shall be used by each

4 organization licensee to improve, maintain, market,

5 and otherwise operate its racing facilities to conduct

6 live racing, which shall include backstretch services

7 and capital improvements related to live racing and the

8 backstretch. Any organization licensees sharing common

9 ownership may pool the moneys received and spent at all

10 racing facilities commonly owned in order to meet these

11 requirements.

12 If any person identified in this paragraph (2) becomes

13 ineligible to receive moneys from the Fund, such amount

14 shall be redistributed among the remaining persons in

15 proportion to their percentages otherwise calculated.

16 (c) The Board shall monitor organization licensees to

17 ensure that moneys paid to organization licensees under this

18 Section are distributed by the organization licensees as

19 provided in subsection (b).

20 (Source: P.A. 95-1008, eff. 12-15-08.)

21 (230 ILCS 5/56 new)

22 Sec. 56. Electronic gaming.

23 (a) A person, firm, corporation, or limited liability

24 company having operating control of a race track located in

25 Cook, Will, or Rock Island counties may apply to the Gaming

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1 Board for an electronic gaming license. An electronic gaming

2 license shall authorize its holder to conduct electronic gaming

3 on the grounds of the race track controlled by the licensee's

4 race track. Only one electronic gaming license may be awarded

5 for any race track. A holder of an electronic gaming license

6 shall be subject to the Illinois Gambling Act and rules of the

7 Illinois Gaming Board concerning electronic gaming. If the

8 person, firm, corporation, or limited liability company having

9 operating control of a race track is found by the Illinois

10 Gaming Board to be unsuitable for an electronic gaming license

11 under the Illinois Gambling Act and rules of the Gaming Board,

12 that person, firm, corporation, or limited liability company

13 shall not be granted an electronic gaming license. Each license

14 shall specify the number of gaming positions that its holder

15 may operate.

16 An electronic gaming licensee may not permit persons under

17 21 years of age to be present in its electronic gaming

18 facility, but the licensee may accept wagers on live racing and

19 inter-track wagers at its electronic gaming facility.

20 (b) For purposes of this subsection, "adjusted gross

21 receipts" means an electronic gaming licensee's gross receipts

22 less winnings paid to wagerers. The adjusted gross receipts by

23 an electronic gaming licensee from electronic gaming remaining

24 after the payment of taxes under Section 13 of the Illinois

25 Gambling Act shall be distributed as follows:

26 (1) Amounts shall be paid to the purse account at the

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1 track at which the organization licensee is conducting

2 racing equal to the following:

3 12.75% of annual adjusted gross receipts up to and

4 including $75,000,000;

5 20% of annual adjusted gross receipts in excess of

6 $75,000,000 but not exceeding $100,000,000;

7 26.5% of annual adjusted gross receipts in excess

8 of $100,000,000 but not exceeding $125,000,000; and

9 20.5% of annual adjusted gross receipts in excess

10 of $125,000,000.

11 (2) The remainder shall be retained by the electronic

12 gaming licensee.

13 (c) Electronic gaming receipts placed into the purse

14 account of an organization licensee racing thoroughbred horses

15 shall be used for purses, for health care services or worker's

16 compensation for racing industry workers, for equine research,

17 for programs to care for and transition injured and retired

18 thoroughbred horses that race at the race track, or for horse

19 ownership promotion, in accordance with the agreement of the

20 horsemen's association representing the largest number of

21 owners and trainers who race at that organization licensee's

22 race meetings.

23 Annually, from the purse account of an organization

24 licensee racing thoroughbred horses in this State, except for

25 in Madison County, an amount equal to 12% of the electronic

26 gaming receipts placed into the purse accounts shall be paid to

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1 the Illinois Thoroughbred Breeders Fund and shall be used for

2 owner awards; a stallion program pursuant to paragraph (3) of

3 subsection (g) of Section 30 of this Act; and Illinois

4 conceived and foaled stakes races pursuant to paragraph (2) of

5 subsection (g) of Section 30 of this Act, as specifically

6 designated by the horsemen's association representing the

7 largest number of owners and trainers who race at the

8 organization licensee's race meetings.

9 (e) The Illinois Gaming Board shall submit a report to the

10 General Assembly on or before December 31, 2016 that examines

11 the feasibility of conducting electronic gaming at the Illinois

12 State Fairgrounds in Sangamon County. At a minimum, this report

13 shall analyze the projected revenues that will be generated,

14 the potential for cannibalization of existing riverboats,

15 casinos, or other electronic gaming facilities, and the

16 potential detriment to the surrounding area and its population.

17 The report shall include the Illinois Gaming Board's findings

18 together with appropriate recommendations for legislative

19 action.

20 Section 50. The Riverboat Gambling Act is amended by

21 changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.4, 7.5, 8, 9,

22 11, 11.1, 12, 13, 14, 15, 17.1, 18, 18.1, 19, 20, and 24 and by

23 adding Sections 5.3, 7.3a, 7.7, 7.8, 7.9, 7.10, 7.11, 7.12, and

24 18.2 as follows:

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1 (230 ILCS 10/1) (from Ch. 120, par. 2401)

2 Sec. 1. Short title. This Act shall be known and may be

3 cited as theIllinois ~~Riverboat~~ Gambling Act.

4 (Source: P.A. 86-1029.)

5 (230 ILCS 10/2) (from Ch. 120, par. 2402)

6 Sec. 2. Legislative Intent.

7 (a) This Act is intended to benefit the people of the State

8 of Illinois by assisting economic development, ~~and~~ promoting

9 Illinois tourism,and~~by~~ increasing the amount of revenues

10 available to the State to assist and support education, to fund

11 capital projects, and to defray State expenses, including

12 unpaid bills.

13 (b) While authorization of riverboat and casino gambling

14 will enhance investment,beautification, development and

15 tourism in Illinois, it is recognized that it will do so

16 successfully only if public confidence and trust in the

17 credibility and integrity of the gambling operations and the

18 regulatory process is maintained. Therefore, regulatory

19 provisions of this Act are designed to strictly regulate the

20 facilities, persons, associations and practices related to

21 gambling operations pursuant to the police powers of the State,

22 including comprehensive law enforcement supervision.

23 (c) The Illinois Gaming Board established under this Act

24 should, as soon as possible, inform each applicant for an

25 owners license of the Board's intent to grant or deny a

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1 license.

2 (Source: P.A. 93-28, eff. 6-20-03.)

3 (230 ILCS 10/3) (from Ch. 120, par. 2403)

4 Sec. 3. ~~Riverboat~~ Gambling Authorized.

5 (a) Riverboat and casinogambling operationsand

6 electronic gaming operations ~~and the system of wagering~~

7 ~~incorporated therein~~, as defined in this Act, are hereby

8 authorized to the extent that they are carried out in

9 accordance with the provisions of this Act.

10 (b) This Act does not apply to the pari-mutuel system of

11 wagering used or intended to be used in connection with the

12 horse-race meetings as authorized under the Illinois Horse

13 Racing Act of 1975, lottery games authorized under the Illinois

14 Lottery Law, bingo authorized under the Bingo License and Tax

15 Act, charitable games authorized under the Charitable Games Act

16 or pull tabs and jar games conducted under the Illinois Pull

17 Tabs and Jar Games Act.This Act applies to electronic gaming

18 authorized under the Illinois Horse Racing Act of 1975 to the

19 extent provided in that Act and in this Act.

20 (c) Riverboat gambling conducted pursuant to this Act may

21 be authorized upon any water within the State of Illinois or

22 any water other than Lake Michigan which constitutes a boundary

23 of the State of Illinois.Notwithstanding any provision in this

24 subsection (c) to the contrary, a manager conducting gambling

25 operations on behalf of the State may conduct riverboat

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1 gambling on Lake Michigan from a home dock located on Lake

2 Michigan. Notwithstanding any provision in this subsection (c)

3 to the contrary, a licensee may conduct gambling at its home

4 dock facility as provided in Sections 7 and 11. A licensee may

5 conduct riverboat gambling authorized under this Act

6 regardless of whether it conducts excursion cruises. A licensee

7 may permit the continuous ingress and egress of passengers for

8 the purpose of gambling.

9 (d) Gambling that is conducted in accordance with this Act

10 using slot machines and video games of chance and other

11 electronic gambling games as defined in both the Illinois

12 Gambling Act and the Illinois Horse Racing Act of 1975 is

13 authorized.

14 (Source: P.A. 91-40, eff. 6-25-99.)

15 (230 ILCS 10/4) (from Ch. 120, par. 2404)

16 Sec. 4. Definitions. As used in this Act:

17 ~~(a)~~ "Board" means the Illinois Gaming Board.

18 ~~(b)~~ "Occupational license" means a license issued by the

19 Board to a person or entity to perform an occupation which the

20 Board has identified as requiring a license to engage in

21 riverboat gambling, casino gambling, or electronic gaming in

22 Illinois.

23 ~~(c)~~ "Gambling game" includes, but is not limited to,

24 baccarat, twenty-one, poker, craps, slot machine, video game of

25 chance, roulette wheel, klondike table, punchboard, faro

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1 layout, keno layout, numbers ticket, push card, jar ticket, or

2 pull tab which is authorized by the Board as a wagering device

3 under this Act.

4 ~~(d)~~"Riverboat" means a self-propelled excursion boat, a

5 permanently moored barge, or permanently moored barges that are

6 permanently fixed together to operate as one vessel, on which

7 lawful gambling is authorized and licensed as provided in this

8 Act.

9 "Slot machine" means any mechanical, electrical, or other

10 device, contrivance, or machine that is authorized by the Board

11 as a wagering device under this Act which, upon insertion of a

12 coin, currency, token, or similar object therein, or upon

13 payment of any consideration whatsoever, is available to play

14 or operate, the play or operation of which may deliver or

15 entitle the person playing or operating the machine to receive

16 cash, premiums, merchandise, tokens, or anything of value

17 whatsoever, whether the payoff is made automatically from the

18 machine or in any other manner whatsoever. A slot machine:

19 (1) may utilize spinning reels or video displays or

20 both;

21 (2) may or may not dispense coins, tickets, or tokens

22 to winning patrons;

23 (3) may use an electronic credit system for receiving

24 wagers and making payouts; and

25 (4) may simulate a table game.

26 "Slot machine" does not include table games authorized by

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1 the Board as a wagering device under this Act.

2 ~~(e)~~ "Managers license" means a license issued by the Board

3 to a person or entity to manage gambling operations conducted

4 by the State pursuant to Section 7.3 or Section 7.3a.

5 ~~(f)~~ "Dock" means the location where a riverboat moors for

6 the purpose of embarking passengers for and disembarking

7 passengers from the riverboat.

8 ~~(g)~~ "Gross receipts" means the total amount of money

9 exchanged for the purchase of chips, tokens, or electronic

10 cards by riverboat patrons.

11 ~~(h)~~"Adjusted gross receipts" means the gross receipts less

12 winnings paid to wagerers.

13 ~~(i)~~ "Cheat" means to alter the selection of criteria which

14 determine the result of a gambling game or the amount or

15 frequency of payment in a gambling game.

16 ~~(j) (Blank).~~

17 ~~(k)~~ "Gambling operation" means the conduct of ~~authorized~~

18 gambling games authorized under this Actupon a riverboator in

19 a casino or authorized under this Act and the Illinois Horse

20 Racing Act of 1975 at an electronic gaming facility.

21 ~~(l)~~ "License bid" means the lump sum amount of money that

22 an applicant bids and agrees to pay the State in return for an

23 owners license that is issued orre-issued on or after July 1,

24 2003.

25 "Table game" means a live gaming apparatus upon which

26 gaming is conducted or that determines an outcome that is the

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1 object of a wager, including, but not limited to, baccarat,

2 twenty-one, blackjack, poker, craps, roulette wheel, klondike

3 table, punchboard, faro layout, keno layout, numbers ticket,

4 push card, jar ticket, pull tab, or other similar games that

5 are authorized by the Board as a wagering device under this

6 Act. "Table game" does not include slot machines or video games

7 of chance.

8 ~~(m)~~ The terms "minority person", "female", and "person with

9 a disability" shall have the same meaning as defined in Section

10 2 of the Business Enterprise for Minorities, Females, and

11 Persons with Disabilities Act.

12 "Casino" means a facility at which lawful gambling is

13 authorized as provided in this Act.

14 "Owners license" means a license to conduct riverboat or

15 casino gambling operations and the authorization to conduct

16 gambling operations under Section 7.3a of this Act, but does

17 not include an electronic gaming license.

18 "Licensed owner" means a person who holds an owners

19 license.

20 "Electronic gaming" means slot machine gambling, video

21 game of chance gambling, or gambling with electronic gambling

22 games as defined in the Illinois Gambling Act or defined by the

23 Board that is conducted at a race track pursuant to an

24 electronic gaming license.

25 "Electronic gaming facility" means the area where the Board

26 has authorized electronic gaming at a race track of an

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1 organization licensee under the Illinois Horse Racing Act of

2 1975 that holds an electronic gaming license.

3 "Electronic gaming license" means a license issued by the

4 Board under Section 7.7 of this Act authorizing electronic

5 gaming at an electronic gaming facility.

6 "Electronic gaming licensee" means an entity that holds an

7 electronic gaming license.

8 "Organization licensee" means an entity authorized by the

9 Illinois Racing Board to conduct pari-mutuel wagering in

10 accordance with the Illinois Horse Racing Act of 1975. With

11 respect only to electronic gaming, "organization licensee"

12 includes the authorization for electronic gaming created under

13 subsection (a) of Section 56 of the Illinois Horse Racing Act

14 of 1975.

15 (Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)

16 (230 ILCS 10/5) (from Ch. 120, par. 2405)

17 Sec. 5. Gaming Board.

18 (a) (1) There is hereby established the Illinois Gaming

19 Board, which shall have the powers and duties specified in this

20 Act, and all other powers necessary and proper to fully and

21 effectively execute this Act for the purpose of administering,

22 regulating, and enforcing the system of riverboatand casino

23 gambling and electronic gamingestablished by this Act. Its

24 jurisdiction shall extend under this Act to every person,

25 association, corporation, partnership and trust involved in

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1 riverboat and casinogambling operationsand electronic gaming

2 in the State of Illinois.

3 (2) The Board shall consist of 5 members to be appointed by

4 the Governor with the advice and consent of the Senate, one of

5 whom shall be designated by the Governor to bechairperson

6 ~~chairman~~. Each member shall have a reasonable knowledge of the

7 practice, procedure and principles of gambling operations.

8 Each member shall either be a resident of Illinois or shall

9 certify that he or shewill become a resident of Illinois

10 before taking office.

11 On and after the effective date of this amendatory Act of

12 the 99th General Assembly, new appointees to the Board must

13 include the following:

14 (A) One member who has received, at a minimum, a

15 bachelor's degree from an accredited school and at least 10

16 years of verifiable training and experience in the fields

17 of investigation and law enforcement.

18 (B) One member who is a certified public accountant

19 with experience in auditing and with knowledge of complex

20 corporate structures and transactions.

21 (C) One member who has 5 years' experience as a

22 principal, senior officer, or director of a company or

23 business with either material responsibility for the daily

24 operations and management of the overall company or

25 business or material responsibility for the policy making

26 of the company or business.

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1 (D) One member who is a lawyer licensed to practice law

2 in Illinois.

3 Notwithstanding any provision of this subsection (a), the

4 requirements of subparagraphs (A) through (D) of this paragraph

5 (2) shall not apply to any person reappointed pursuant to

6 paragraph (3).

7 No more than 3 members of the Board may be from the same

8 political party. The Board should reflect the ethnic, cultural,

9 and geographic diversity of the State. No Board member shall,

10 within a period of one year immediately preceding nomination,

11 have been employed or received compensation or fees for

12 services from a person or entity, or its parent or affiliate,

13 that has engaged in business with the Board, a licensee, or a

14 licensee under the Illinois Horse Racing Act of 1975. Board

15 members must publicly disclose all prior affiliations with

16 gaming interests, including any compensation, fees, bonuses,

17 salaries, and other reimbursement received from a person or

18 entity, or its parent or affiliate, that has engaged in

19 business with the Board, a licensee, or a licensee under the

20 Illinois Horse Racing Act of 1975. This disclosure must be made

21 within 30 days after nomination but prior to confirmation by

22 the Senate and must be made available to the members of the

23 Senate. ~~At least one member shall be experienced in law~~

24 ~~enforcement and criminal investigation, at least one member~~

25 ~~shall be a certified public accountant experienced in~~

26 ~~accounting and auditing, and at least one member shall be a~~

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1 ~~lawyer licensed to practice law in Illinois.~~

2 (3) The terms of office of the Board members shall be 3

3 years, except that the terms of office of the initial Board

4 members appointed pursuant to this Act will commence from the

5 effective date of this Act and run as follows: one for a term

6 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

7 a term ending July 1, 1993. Upon the expiration of the

8 foregoing terms, the successors of such members shall serve a

9 term for 3 years and until their successors are appointed and

10 qualified for like terms. Vacancies in the Board shall be

11 filled for the unexpired term in like manner as original

12 appointments. Each member of the Board shall be eligible for

13 reappointment at the discretion of the Governor with the advice

14 and consent of the Senate.

15 (4) Each member of the Board shall receive $300 for each

16 day the Board meets and for each day the member conducts any

17 hearing pursuant to this Act. Each member of the Board shall

18 also be reimbursed for all actual and necessary expenses and

19 disbursements incurred in the execution of official duties.

20 (5) No person shall be appointed a member of the Board or

21 continue to be a member of the Board who is, or whose spouse,

22 child or parent is, a member of the board of directors of, or a

23 person financially interested in, any gambling operation

24 subject to the jurisdiction of this Board, or any race track,

25 race meeting, racing association or the operations thereof

26 subject to the jurisdiction of the Illinois Racing Board. No

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1 Board member shall hold any other public office. No person

2 shall be a member of the Board who is not of good moral

3 character or who has been convicted of, or is under indictment

4 for, a felony under the laws of Illinois or any other state, or

5 the United States.

6 (5.5) No member of the Board shall engage in any political

7 activity. For the purposes of this Section, "political" means

8 any activity in support of or in connection with any campaign

9 for federal, State, or local elective office or any political

10 organization, but does not include activities (i) relating to

11 the support or opposition of any executive, legislative, or

12 administrative action (as those terms are defined in Section 2

13 of the Lobbyist Registration Act), (ii) relating to collective

14 bargaining, or (iii) that are otherwise in furtherance of the

15 person's official State duties or governmental and public

16 service functions.

17 (6) Any member of the Board may be removed by the Governor

18 for neglect of duty, misfeasance, malfeasance, or nonfeasance

19 in office or for engaging in any political activity.

20 (7) Before entering upon the discharge of the duties of his

21 office, each member of the Board shall take an oath that he

22 will faithfully execute the duties of his office according to

23 the laws of the State and the rules and regulations adopted

24 therewith and shall give bond to the State of Illinois,

25 approved by the Governor, in the sum of $25,000. Every such

26 bond, when duly executed and approved, shall be recorded in the

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1 office of the Secretary of State. Whenever the Governor

2 determines that the bond of any member of the Board has become

3 or is likely to become invalid or insufficient, he shall

4 require such member forthwith to renew his bond, which is to be

5 approved by the Governor. Any member of the Board who fails to

6 take oath and give bond within 30 days from the date of his

7 appointment, or who fails to renew his bond within 30 days

8 after it is demanded by the Governor, shall be guilty of

9 neglect of duty and may be removed by the Governor. The cost of

10 any bond given by any member of the Board under this Section

11 shall be taken to be a part of the necessary expenses of the

12 Board.

13 (7.5) For the examination of all mechanical,

14 electromechanical, or electronic table games, slot machines,

15 slot accounting systems, and other electronic gaming equipment

16 for compliance with this Act, the Board may utilize the

17 services of one or more independent outside testing

18 laboratories that have been accredited by a national

19 accreditation body and that, in the judgment of the Board, are

20 qualified to perform such examinations.

21 (8) The Board shall employ such personnel as may be

22 necessary to carry out its functions and shall determine the

23 salaries of all personnel, except those personnel whose

24 salaries are determined under the terms of a collective

25 bargaining agreement. No person shall be employed to serve the

26 Board who is, or whose spouse, parent or child is, an official

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1 of, or has a financial interest in or financial relation with,

2 any operator engaged in gambling operations within this State

3 or any organization engaged in conducting horse racing within

4 this State.For the one year immediately preceding employment,

5 an employee shall not have been employed or received

6 compensation or fees for services from a person or entity, or

7 its parent or affiliate, that has engaged in business with the

8 Board, a licensee, or a licensee under the Illinois Horse

9 Racing Act of 1975. Any employee violating these prohibitions

10 shall be subject to termination of employment.In addition, all

11 Board members and employees are subject to the restrictions set

12 forth in Section 5-45 of the State Officials and Employees

13 Ethics Act.

14 (9) An Administrator shall perform any and all duties that

15 the Board shall assign him. The salary of the Administrator

16 shall be determined by the Board and, in addition, he shall be

17 reimbursed for all actual and necessary expenses incurred by

18 him in discharge of his official duties. The Administrator

19 shall keep records of all proceedings of the Board and shall

20 preserve all records, books, documents and other papers

21 belonging to the Board or entrusted to its care. The

22 Administrator shall devote his full time to the duties of the

23 office and shall not hold any other office or employment.

24 (b) The Board shall have general responsibility for the

25 implementation of this Act. Its duties include, without

26 limitation, the following:

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1 (1) To decide promptly and in reasonable order all

2 license applications. Any party aggrieved by an action of

3 the Board denying, suspending, revoking, restricting or

4 refusing to renew a license may request a hearing before

5 the Board. A request for a hearing must be made to the

6 Board in writing within 5 days after service of notice of

7 the action of the Board. Notice of the action of the Board

8 shall be served either by personal delivery or by certified

9 mail, postage prepaid, to the aggrieved party. Notice

10 served by certified mail shall be deemed complete on the

11 business day following the date of such mailing. The Board

12 shall conduct all requested hearings promptly and in

13 reasonable order;

14 (2) To conduct all hearings pertaining to civil

15 violations of this Act or rules and regulations promulgated

16 hereunder;

17 (3) To promulgate such rules and regulations as in its

18 judgment may be necessary to protect or enhance the

19 credibility and integrity of gambling operations

20 authorized by this Act and the regulatory process

21 hereunder;

22 (4) To provide for the establishment and collection of

23 all license and registration fees and taxes imposed by this

24 Act and the rules and regulations issued pursuant hereto.

25 All such fees and taxes shall be deposited into the State

26 Gaming Fund;

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1 (5) To provide for the levy and collection of penalties

2 and fines for the violation of provisions of this Act and

3 the rules and regulations promulgated hereunder. All such

4 fines and penalties shall be deposited into the Education

5 Assistance Fund, created by Public Act 86-0018, of the

6 State of Illinois;

7 (6) To be present through its inspectors and agents any

8 time gambling operations are conducted on any riverboat, in

9 any casino, or at any electronic gaming facility for the

10 purpose of certifying the revenue thereof, receiving

11 complaints from the public, and conducting such other

12 investigations into the conduct of the gambling games and

13 the maintenance of the equipment as from time to time the

14 Board may deem necessary and proper;

15 (7) To review and rule upon any complaint by a licensee

16 regarding any investigative procedures of the State which

17 are unnecessarily disruptive of gambling operations. The

18 need to inspect and investigate shall be presumed at all

19 times. The disruption of a licensee's operations shall be

20 proved by clear and convincing evidence, and establish

21 that: (A) the procedures had no reasonable law enforcement

22 purposes, and (B) the procedures were so disruptive as to

23 unreasonably inhibit gambling operations;

24 (8) To hold at least one meeting each quarter of the

25 fiscal year. In addition, special meetings may be called by

26 the Chairman or any 2 Board members upon 72 hours written

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1 notice to each member. All Board meetings shall be subject

2 to the Open Meetings Act. Three members of the Board shall

3 constitute a quorum, and 3 votes shall be required for any

4 final determination by the Board. The Board shall keep a

5 complete and accurate record of all its meetings. A

6 majority of the members of the Board shall constitute a

7 quorum for the transaction of any business, for the

8 performance of any duty, or for the exercise of any power

9 which this Act requires the Board members to transact,

10 perform or exercise en banc, except that, upon order of the

11 Board, one of the Board members or an administrative law

12 judge designated by the Board may conduct any hearing

13 provided for under this Act or by Board rule and may

14 recommend findings and decisions to the Board. The Board

15 member or administrative law judge conducting such hearing

16 shall have all powers and rights granted to the Board in

17 this Act. The record made at the time of the hearing shall

18 be reviewed by the Board, or a majority thereof, and the

19 findings and decision of the majority of the Board shall

20 constitute the order of the Board in such case;

21 (9) To maintain records which are separate and distinct

22 from the records of any other State board or commission.

23 Such records shall be available for public inspection and

24 shall accurately reflect all Board proceedings;

25 (10) To file a written annual report with the Governor

26 on or before March 1 each year and such additional reports

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1 as the Governor may request. The annual report shall

2 include a statement of receipts and disbursements by the

3 Board, actions taken by the Board, and any additional

4 information and recommendations which the Board may deem

5 valuable or which the Governor may request;

6 (11) (Blank);

7 (12) (Blank);

8 (13) To assume responsibility for administration and

9 enforcement of the Video Gaming Act;~~and~~

10 (13.1) To assume responsibility for the administration

11 and enforcement of operations at electronic gaming

12 facilities pursuant to this Act and the Illinois Horse

13 Racing Act of 1975; and

14 (14) To adopt, by rule, a code of conduct governing

15 Board members and employees that ensures ~~ensure~~, to the

16 maximum extent possible, that persons subject to this Code

17 avoid situations, relationships, or associations that may

18 represent or lead to a conflict of interest.

19 (c) The Board shall have jurisdiction over and shall

20 supervise all gambling operations governed by this Act. The

21 Board shall have all powers necessary and proper to fully and

22 effectively execute the provisions of this Act, including, but

23 not limited to, the following:

24 (1) To investigate applicants and determine the

25 eligibility of applicants for licenses and to select among

26 competing applicants the applicants which best serve the

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1 interests of the citizens of Illinois.

2 (2) To have jurisdiction and supervision over all

3 ~~riverboat~~gambling operationsauthorized under this Act ~~in~~

4 ~~this State~~ and all persons in places ~~on riverboats~~ where

5 gambling operations are conducted.

6 (3) To promulgate rules and regulations for the purpose

7 of administering the provisions of this Act and to

8 prescribe rules, regulations and conditions under which

9 all ~~riverboat~~ gambling operations subject to this Act ~~in~~

10 ~~the State~~shall be conducted. Such rules and regulations

11 are to provide for the prevention of practices detrimental

12 to the public interest and for the best interests of

13 ~~riverboat~~ gambling, including rules and regulations

14 regarding the inspection ofelectronic gaming facilities,

15 casinos, and ~~such~~ riverboats and the review of any permits

16 or licenses necessary to operate a riverboat, casino, or

17 electronic gaming facility under any laws or regulations

18 applicable to riverboats,casinos, or electronic gaming

19 facilities, and to impose penalties for violations

20 thereof.

21 (4) To enter the office, riverboats, casinos,

22 electronic gaming facilities, and other facilities, or

23 other places of business of a licensee, where evidence of

24 the compliance or noncompliance with the provisions of this

25 Act is likely to be found.

26 (5) To investigate alleged violations of this Act or

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1 the rules of the Board and to take appropriate disciplinary

2 action against a licensee or a holder of an occupational

3 license for a violation, or institute appropriate legal

4 action for enforcement, or both.

5 (6) To adopt standards for the licensing of all persons

6 and entities under Section 7 ofthis Act, as well as for

7 electronic or mechanical gambling games, and to establish

8 fees for such licenses.

9 (7) To adopt appropriate standards for all electronic

10 gaming facilities, riverboats, casinos,andother

11 facilities authorized under this Act.

12 (8) To require that the records, including financial or

13 other statements of any licensee under this Act, shall be

14 kept in such manner as prescribed by the Board and that any

15 such licensee involved in the ownership or management of

16 gambling operations submit to the Board an annual balance

17 sheet and profit and loss statement, list of the

18 stockholders or other persons having a 1% or greater

19 beneficial interest in the gambling activities of each

20 licensee, and any other information the Board deems

21 necessary in order to effectively administer this Act and

22 all rules, regulations, orders and final decisions

23 promulgated under this Act.

24 (9) To conduct hearings, issue subpoenas for the

25 attendance of witnesses and subpoenas duces tecum for the

26 production of books, records and other pertinent documents

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1 in accordance with the Illinois Administrative Procedure

2 Act, and to administer oaths and affirmations to the

3 witnesses, when, in the judgment of the Board, it is

4 necessary to administer or enforce this Act or the Board

5 rules.

6 (10) To prescribe a form to be used by any licensee

7 involved in the ownership or management of gambling

8 operations as an application for employment for their

9 employees.

10 (11) To revoke or suspend licenses, as the Board may

11 see fit and in compliance with applicable laws of the State

12 regarding administrative procedures, and to review

13 applications for the renewal of licenses. The Board may

14 suspend an owners license, electronic gaming license, or

15 managers license, without notice or hearing,upon a

16 determination that the safety or health of patrons or

17 employees is jeopardized by continuing agambling

18 operation conducted under that license ~~riverboat's~~

19 ~~operation~~. The suspension may remain in effect until the

20 Board determines that the cause for suspension has been

21 abated. The Board may revoke an ~~the~~ owners license,

22 electronic gaming license, or managers licenseupon a

23 determination that the licensee ~~owner~~ has not made

24 satisfactory progress toward abating the hazard.The

25 authority to revoke or suspend licenses under this

26 paragraph (11) does not extend to the authorization to

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1 conduct casino gambling operations under Section 7.3a of

2 this Act.

3 (12) To eject or exclude or authorize the ejection or

4 exclusion of, any person from~~riverboat~~ gambling

5 facilities where that ~~such~~person is in violation of this

6 Act, rules and regulations thereunder, or final orders of

7 the Board, or where such person's conduct or reputation is

8 such that his or herpresence within the~~riverboat~~ gambling

9 facilities may, in the opinion of the Board, call into

10 question the honesty and integrity of the gambling

11 operations or interfere with the orderly conduct thereof;

12 provided that the propriety of such ejection or exclusion

13 is subject to subsequent hearing by the Board.

14 (13) To require all licensees of gambling operations to

15 utilize a cashless wagering system whereby all players'

16 money is converted to tokens, electronic cards, or chips

17 which shall be used only for wagering in the gambling

18 establishment.

19 (14) (Blank).

20 (15) To suspend, revoke, or restrict licenses, to

21 require the removal of a licensee or an employee of a

22 licensee for a violation of this Act or a Board rule or for

23 engaging in a fraudulent practice, and to impose civil

24 penalties of up to $5,000 against individuals and up to

25 $10,000 or an amount equal to the daily gross receipts,

26 whichever is larger, against licensees for each violation

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1 of any provision of the Act, any rules adopted by the

2 Board, any order of the Board or any other action which, in

3 the Board's discretion, is a detriment or impediment to

4 ~~riverboat~~gambling operations.The authority to suspend,

5 revoke, or restrict licenses under this paragraph (15) does

6 not extend to the authorization to conduct casino gambling

7 operations under Section 7.3a of this Act.

8 (16) To hire employees to gather information, conduct

9 investigations and carry out any other tasks contemplated

10 under this Act.

11 (17) To establish minimum levels of insurance to be

12 maintained by licensees.

13 (18) To authorize a licensee to sell or serve alcoholic

14 liquors, wine or beer as defined in the Liquor Control Act

15 of 1934 on board a riverboat or in a casinoand to have

16 exclusive authority to establish the hours for sale and

17 consumption of alcoholic liquor on board a riverboat or in

18 a casino, notwithstanding any provision of the Liquor

19 Control Act of 1934 or any local ordinance, and regardless

20 of whether the riverboat makes excursions. The

21 establishment of the hours for sale and consumption of

22 alcoholic liquor on board a riverboator in a casino is an

23 exclusive power and function of the State. A home rule unit

24 may not establish the hours for sale and consumption of

25 alcoholic liquor on board a riverboator in a casino. This

26 paragraph (18) ~~amendatory Act of 1991~~is a denial and

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1 limitation of home rule powers and functions under

2 subsection (h) of Section 6 of Article VII of the Illinois

3 Constitution.

4 (19) After consultation with the U.S. Army Corps of

5 Engineers, to establish binding emergency orders upon the

6 concurrence of a majority of the members of the Board

7 regarding the navigability of water, relative to

8 excursions, in the event of extreme weather conditions,

9 acts of God or other extreme circumstances.

10 (20) To delegate the execution of any of its powers

11 under this Act for the purpose of administering and

12 enforcing this Act and the ~~its~~ rules adopted by the Board

13 under this Act ~~and regulations hereunder~~.

14 (20.5) To approve any contract entered into on its

15 behalf.

16 (20.6) To appoint investigators to conduct

17 investigations, searches, seizures, arrests, and other

18 duties imposed under this Act, as deemed necessary by the

19 Board. These investigators have and may exercise all of the

20 rights and powers of peace officers, provided that these

21 powers shall be limited to offenses or violations occurring

22 or committed in a casino, in an electronic gaming facility,

23 or on a riverboat or dock, as defined in subsections (d)

24 and (f) of Section 4, or as otherwise provided by this Act

25 or any other law.

26 (20.7) To contract with the Department of State Police

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1 for the use of trained and qualified State police officers

2 and with the Department of Revenue for the use of trained

3 and qualified Department of Revenue investigators to

4 conduct investigations, searches, seizures, arrests, and

5 other duties imposed under this Act and to exercise all of

6 the rights and powers of peace officers, provided that the

7 powers of Department of Revenue investigators under this

8 paragraph ~~subdivision~~ (20.7) shall be limited to offenses

9 or violations occurring or committed in a casino, in an

10 electronic gaming facility, or on a riverboat or dock, as

11 defined in subsections (d) and (f) of Section 4, or as

12 otherwise provided by this Act or any other law. In the

13 event the Department of State Police or the Department of

14 Revenue is unable to fill contracted police or

15 investigative positions, the Board may appoint

16 investigators to fill those positions pursuant to

17 paragraph ~~subdivision~~(20.6).

18 (21) To adopt rules concerning the conduct of

19 electronic gaming.

20 (22) To have the same jurisdiction and supervision over

21 casinos and electronic gaming facilities as the Board has

22 over riverboats, including, but not limited to, the power

23 to (i) investigate, review, and approve contracts as that

24 power is applied to riverboats, (ii) adopt standards for

25 the licensing of all persons involved with a casino or

26 electronic gaming facility, (iii) investigate alleged

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1 violations of this Act by any person involved with a casino

2 or electronic gaming facility, and (iv) require that

3 records, including financial or other statements of any

4 casino or electronic gaming facility, shall be kept in such

5 manner as prescribed by the Board.

6 (23) ~~(21)~~ To take any other action as may be reasonable

7 or appropriate to enforce this Act andthe rules adopted by

8 the board under this Act ~~and regulations hereunder~~.

9 All Board powers enumerated in this Section in relation to

10 licensees shall apply equally to the holder of a managers

11 license issued pursuant to Section 7.3 of this Act.

12 (d) The Board may seek and shall receive the cooperation of

13 the Department of State Police in conducting background

14 investigations of applicants and in fulfilling its

15 responsibilities under this Section. Costs incurred by the

16 Department of State Police as a result of such cooperation

17 shall be paid by the Board in conformance with the requirements

18 of Section 2605-400 of the Department of State Police Law (20

19 ILCS 2605/2605-400).

20 (e) The Board must authorize to each investigator and to

21 any other employee of the Board exercising the powers of a

22 peace officer a distinct badge that, on its face, (i) clearly

23 states that the badge is authorized by the Board and (ii)

24 contains a unique identifying number. No other badge shall be

25 authorized by the Board.

26 (f) The Board, on behalf of the State of Illinois, is

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1 authorized to acquire by conveyance from the City of Chicago in

2 Cook County, Illinois real estate acquired by the City of

3 Chicago under subsection (b) of Section 7.3a of this Act.

4 The Board shall have the authority to hold title to

5 property as provided in subsection (b) of Section 7.3a of this

6 Act.

7 (Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)

8 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)

9 Sec. 5.1. Disclosure of records.

10 (a) Notwithstanding any applicable statutory provision to

11 the contrary, the Board shall, on written request from any

12 person, provide information furnished by an applicant or

13 licensee concerning the applicant or licensee, his products,

14 services or gambling enterprises and his business holdings, as

15 follows:

16 (1) The name, business address and business telephone

17 number of any applicant or licensee.

18 (2) An identification of any applicant or licensee

19 including, if an applicant or licensee is not an

20 individual, the names and addresses of all stockholders and

21 directors, if the entity is a corporation; the names and

22 addresses of all members, if the entity is a limited

23 liability company; the names and addresses of all partners,

24 both general and limited, if the entity is a partnership;

25 and the names and addresses of all beneficiaries, if the

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1 entity is a trust ~~the state of incorporation or~~

2 ~~registration, the corporate officers, and the identity of~~

3 ~~all shareholders or participants~~. If an applicant or

4 licensee has a pending registration statement filed with

5 the Securities and Exchange Commission, only the names of

6 those persons or entities holding interest of 5% or more

7 must be provided.

8 (3) An identification of any business, including, if

9 applicable, the state of incorporation or registration, in

10 which an applicant or licensee or an applicant's or

11 licensee's spouse or children has an equity interest of

12 more than 1%. If an applicant or licensee is a corporation,

13 partnership or other business entity, the applicant or

14 licensee shall identify any other corporation, partnership

15 or business entity in which it has an equity interest of 1%

16 or more, including, if applicable, the state of

17 incorporation or registration. This information need not

18 be provided by a corporation, partnership or other business

19 entity that has a pending registration statement filed with

20 the Securities and Exchange Commission.

21 (4) Whether an applicant or licensee has been indicted,

22 convicted, pleaded guilty or nolo contendere, or forfeited

23 bail concerning any criminal offense under the laws of any

24 jurisdiction, either felony or misdemeanor (except for

25 traffic violations), including the date, the name and

26 location of the court, arresting agency and prosecuting

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1 agency, the case number, the offense, the disposition and

2 the location and length of incarceration.

3 (5) Whether an applicant or licensee has had any

4 license or certificate issued by a licensing authority in

5 Illinois or any other jurisdiction denied, restricted,

6 suspended, revoked or not renewed and a statement

7 describing the facts and circumstances concerning the

8 denial, restriction, suspension, revocation or

9 non-renewal, including the licensing authority, the date

10 each such action was taken, and the reason for each such

11 action.

12 (6) Whether an applicant or licensee has ever filed or

13 had filed against it a proceeding in bankruptcy or has ever

14 been involved in any formal process to adjust, defer,

15 suspend or otherwise work out the payment of any debt

16 including the date of filing, the name and location of the

17 court, the case and number of the disposition.

18 (7) Whether an applicant or licensee has filed, or been

19 served with a complaint or other notice filed with any

20 public body, regarding the delinquency in the payment of,

21 or a dispute over the filings concerning the payment of,

22 any tax required under federal, State or local law,

23 including the amount, type of tax, the taxing agency and

24 time periods involved.

25 (8) A statement listing the names and titles of all

26 public officials or officers of any unit of government, and

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1 relatives of said public officials or officers who,

2 directly or indirectly, own any financial interest in, have

3 any beneficial interest in, are the creditors of or hold

4 any debt instrument issued by, or hold or have any interest

5 in any contractual or service relationship with, an

6 applicant or licensee.

7 (9) Whether an applicant or licensee has made, directly

8 or indirectly, any political contribution, or any loans,

9 donations or other payments, to any candidate or office

10 holder, within 5 years from the date of filing the

11 application, including the amount and the method of

12 payment.

13 (10) The name and business telephone number of the

14 counsel representing an applicant or licensee in matters

15 before the Board.

16 (11) A description of any proposed or approved

17 riverboat or casinogamingor electronic gaming operation,

18 including the type of boat, home dock or casino or

19 electronic gaminglocation, expected economic benefit to

20 the community, anticipated or actual number of employees,

21 any statement from an applicant or licensee regarding

22 compliance with federal and State affirmative action

23 guidelines, projected or actual admissions and projected

24 or actual adjusted gross gaming receipts.

25 (12) A description of the product or service to be

26 supplied by an applicant for a supplier's license.

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1 (b) Notwithstanding any applicable statutory provision to

2 the contrary, the Board shall, on written request from any

3 person, also provide the following information:

4 (1) The amount of the wagering tax and admission tax

5 paid daily to the State of Illinois by the holder of an

6 owner's license.

7 (2) Whenever the Board finds an applicant for an

8 owner's license unsuitable for licensing, a copy of the

9 written letter outlining the reasons for the denial.

10 (3) Whenever the Board has refused to grant leave for

11 an applicant to withdraw his application, a copy of the

12 letter outlining the reasons for the refusal.

13 (c) Subject to the above provisions, the Board shall not

14 disclose any information which would be barred by:

15 (1) Section 7 of the Freedom of Information Act; or

16 (2) The statutes, rules, regulations or

17 intergovernmental agreements of any jurisdiction.

18 (d) The Board may assess fees for the copying of

19 information in accordance with Section 6 of the Freedom of

20 Information Act.

21 (Source: P.A. 96-1392, eff. 1-1-11.)

22 (230 ILCS 10/5.3 new)

23 Sec. 5.3. Ethical conduct.

24 (a) Officials and employees of the corporate authority of a

25 host community must carry out their duties and responsibilities

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1 in such a manner as to promote and preserve public trust and

2 confidence in the integrity and conduct of gaming.

3 (b) Officials and employees of the corporate authority of a

4 host community shall not use or attempt to use his or her

5 official position to secure or attempt to secure any privilege,

6 advantage, favor, or influence for himself or herself or

7 others.

8 (c) Officials and employees of the corporate authority of a

9 host community may not have a financial interest, directly or

10 indirectly, in his or her own name or in the name of any other

11 person, partnership, association, trust, corporation, or other

12 entity in any contract or subcontract for the performance of

13 any work for a riverboat or casino that is located in the host

14 community. This prohibition shall extend to the holding or

15 acquisition of an interest in any entity identified by Board

16 action that, in the Board's judgment, could represent the

17 potential for or the appearance of a financial interest. The

18 holding or acquisition of an interest in such entities through

19 an indirect means, such as through a mutual fund, shall not be

20 prohibited, except that the Board may identify specific

21 investments or funds that, in its judgment, are so influenced

22 by gaming holdings as to represent the potential for or the

23 appearance of a conflict of interest.

24 (d) Officials and employees of the corporate authority of a

25 host community may not accept any gift, gratuity, service,

26 compensation, travel, lodging, or thing of value, with the

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1 exception of unsolicited items of an incidental nature, from

2 any person, corporation, or entity doing business with the

3 riverboat or casino that is located in the host community.

4 (e) Officials and employees of the corporate authority of a

5 host community shall not, during the period that the person is

6 an official or employee of the corporate authority or for a

7 period of 2 years immediately after leaving such office,

8 knowingly accept employment or receive compensation or fees for

9 services from a person or entity, or its parent or affiliate,

10 that has engaged in business with the riverboat or casino that

11 is located in the host community that resulted in contracts

12 with an aggregate value of at least $25,000 or if that official

13 or employee has made a decision that directly applied to the

14 person or entity, or its parent or affiliate.

15 (f) A spouse, child, or parent of an official or employee

16 of the corporate authority of a host community may not have a

17 financial interest, directly or indirectly, in his or her own

18 name or in the name of any other person, partnership,

19 association, trust, corporation, or other entity in any

20 contract or subcontract for the performance of any work for a

21 riverboat or casino in the host community. This prohibition

22 shall extend to the holding or acquisition of an interest in

23 any entity identified by Board action that, in the judgment of

24 the Board, could represent the potential for or the appearance

25 of a conflict of interest. The holding or acquisition of an

26 interest in such entities through an indirect means, such as

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1 through a mutual fund, shall not be prohibited, expect that the

2 Board may identify specific investments or funds that, in its

3 judgment, are so influenced by gaming holdings as to represent

4 the potential for or the appearance of a conflict of interest.

5 (g) A spouse, child, or parent of an official or employee

6 of the corporate authority of a host community may not accept

7 any gift, gratuity, service, compensation, travel, lodging, or

8 thing of value, with the exception of unsolicited items of an

9 incidental nature, from any person, corporation, or entity

10 doing business with the riverboat or casino that is located in

11 the host community.

12 (h) A spouse, child, or parent of an official or employee

13 of the corporate authority of a host community may not, during

14 the period that the person is an official of the corporate

15 authority or for a period of 2 years immediately after leaving

16 such office or employment, knowingly accept employment or

17 receive compensation or fees for services from a person or

18 entity, or its parent or affiliate, that has engaged in

19 business with the riverboat or casino that is located in the

20 host community that resulted in contracts with an aggregate

21 value of at least $25,000 or if that official or employee has

22 made a decision that directly applied to the person or entity,

23 or its parent or affiliate.

24 (i) Officials and employees of the corporate authority of a

25 host community shall not attempt, in any way, to influence any

26 person or entity doing business with the riverboat or casino

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1 that is located in the host community or any officer, agent, or

2 employee thereof to hire or contract with any person or entity

3 for any compensated work.

4 (j) Any communication between an official of the corporate

5 authority of a host community and any applicant for an owners

6 license in the host community, or an officer, director, or

7 employee of a riverboat or casino in the host community,

8 concerning any matter relating in any way to gaming shall be

9 disclosed to the Board. Such disclosure shall be in writing by

10 the official within 30 days after the communication and shall

11 be filed with the Board. Disclosure must consist of the date of

12 the communication, the identity and job title of the person

13 with whom the communication was made, a brief summary of the

14 communication, the action requested or recommended, all

15 responses made, the identity and job title of the person making

16 the response, and any other pertinent information. Public

17 disclosure of the written summary provided to the Board and the

18 Gaming Board shall be subject to the exemptions provided under

19 the Freedom of Information Act.

20 This subsection (j) shall not apply to communications

21 regarding traffic, law enforcement, security, environmental

22 issues, city services, transportation, or other routine

23 matters concerning the ordinary operations of the riverboat or

24 casino. For purposes of this subsection (j), "ordinary

25 operations" means operations relating to the casino or

26 riverboat facility other than the conduct of gambling

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1 activities, and "routine matters" includes the application

2 for, issuance of, renewal of, and other processes associated

3 with municipal permits and licenses.

4 (k) Any official or employee who violates any provision of

5 this Section is guilty of a Class 4 felony.

6 (l) For purposes of this Section, "host community" or "host

7 municipality" means a unit of local government that contains a

8 riverboat or casino within its borders, but does not include

9 the City of Chicago.

10 (230 ILCS 10/6) (from Ch. 120, par. 2406)

11 Sec. 6. Application for Owners License.

12 (a) A qualified person may apply to the Board for an owners

13 license to conduct a riverboat gambling operation as provided

14 in Section 7 ofthis Act. The application shall be made on

15 forms provided by the Board and shall contain such information

16 as the Board prescribes, including but not limited to the

17 identity of the riverboat on which such gambling operation is

18 to be conducted, if applicable, and the exact location where

19 such riverboat or casino will be located ~~docked~~, a

20 certification that the riverboat will be registered under this

21 Act at all times during which gambling operations are conducted

22 on board, detailed information regarding the ownership and

23 management of the applicant, and detailed personal information

24 regarding the applicant. Any application for an owners license

25 to be re-issued on or after June 1, 2003 shall also include the

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1 applicant's license bid in a form prescribed by the Board.

2 Information provided on the application shall be used as a

3 basis for a thorough background investigation which the Board

4 shall conduct with respect to each applicant. An incomplete

5 application shall be cause for denial of a license by the

6 Board.

7 (a-5) In addition to any other information required under

8 this Section, each application for an owners license must

9 include the following information:

10 (1) The history and success of the applicant and each

11 person and entity disclosed under subsection (c) of this

12 Section in developing tourism facilities ancillary to

13 gaming, if applicable.

14 (2) The likelihood that granting a license to the

15 applicant will lead to the creation of quality, living wage

16 jobs and permanent, full-time jobs for residents of the

17 State and residents of the unit of local government that is

18 designated as the home dock of the proposed facility where

19 gambling is to be conducted by the applicant.

20 (3) The projected number of jobs that would be created

21 if the license is granted and the projected number of new

22 employees at the proposed facility where gambling is to be

23 conducted by the applicant.

24 (4) The record, if any, of the applicant and its

25 developer in meeting commitments to local agencies,

26 community-based organizations, and employees at other

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1 locations where the applicant or its developer has

2 performed similar functions as they would perform if the

3 applicant were granted a license.

4 (5) Identification of adverse effects that might be

5 caused by the proposed facility where gambling is to be

6 conducted by the applicant, including the costs of meeting

7 increased demand for public health care, child care, public

8 transportation, affordable housing, and social services,

9 and a plan to mitigate those adverse effects.

10 (6) The record, if any, of the applicant and its

11 developer regarding compliance with:

12 (A) federal, state, and local discrimination, wage

13 and hour, disability, and occupational and

14 environmental health and safety laws; and

15 (B) state and local labor relations and employment

16 laws.

17 (7) The applicant's record, if any, in dealing with its

18 employees and their representatives at other locations.

19 (8) A plan concerning the utilization of

20 minority-owned and female-owned businesses and concerning

21 the hiring of minorities and females.

22 (9) Evidence the applicant used its best efforts to

23 reach a goal of 25% ownership representation by minority

24 persons and 5% ownership representation by females.

25 (b) Applicants shall submit with their application all

26 documents, resolutions, and letters of support from the

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1 governing body that represents the municipality or county

2 wherein the licensee will be located ~~dock~~.

3 (c) Each applicant shall disclose the identity of every

4 person or entity ~~, association, trust or corporation~~ having a

5 greater than 1% direct or indirect pecuniary interest in the

6 ~~riverboat~~gambling operation with respect to which the license

7 is sought. If the disclosed entity is a trust, the application

8 shall disclose the names and addresses of all ~~the~~

9 beneficiaries; if a corporation, the names and addresses of all

10 stockholders and directors; if a partnership, the names and

11 addresses of all partners, both general and limited.

12 (d) An application shall be filed and considered in

13 accordance with the rules of the Board. Each application shall

14 be accompanied by a non-refundable ~~An~~application fee of

15 $100,000. In addition, a non-refundable fee of $50,000 shall be

16 paid at the time of filing to defray the costs associated with

17 the background investigation conducted by the Board. If the

18 costs of the investigation exceed $50,000, the applicant shall

19 pay the additional amount to the Boardwithin 7 days after

20 requested by the Board. If the costs of the investigation are

21 less than $50,000, the applicant shall receive a refund of the

22 remaining amount. All information, records, interviews,

23 reports, statements, memoranda or other data supplied to or

24 used by the Board in the course of its review or investigation

25 of an application for a license or a renewal under this Act

26 shall be privileged, strictly confidential and shall be used

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1 only for the purpose of evaluating an applicant for a license

2 or a renewal. Such information, records, interviews, reports,

3 statements, memoranda or other data shall not be admissible as

4 evidence, nor discoverable in any action of any kind in any

5 court or before any tribunal, board, agency or person, except

6 for any action deemed necessary by the Board.The application

7 fee shall be deposited into the Gaming Facilities Fee Revenue

8 Fund.

9 (e) The Board shall charge each applicant a fee set by the

10 Department of State Police to defray the costs associated with

11 the search and classification of fingerprints obtained by the

12 Board with respect to the applicant's application. These fees

13 shall be paid into the State Police Services Fund.

14 (f) The licensed owner shall be the person primarily

15 responsible for the boator casino itself. Only one ~~riverboat~~

16 gambling operation may be authorized by the Board on any

17 riverboat or in any casino. The applicant must identify the

18 ~~each~~ riverboat or premisesit intends to use and certify that

19 the riverboat or premises: (1) has the authorized capacity

20 required in this Act; (2) is accessible to disabled persons;

21 and (3) is fully registered and licensed in accordance with any

22 applicable laws.

23 (g) A person who knowingly makes a false statement on an

24 application is guilty of a Class A misdemeanor.

25 (Source: P.A. 96-1392, eff. 1-1-11.)

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1 (230 ILCS 10/7) (from Ch. 120, par. 2407)

2 Sec. 7. Owners Licenses.

3 (a) The Board shall issue owners licenses to persons or

4 entities ~~, firms or corporations~~ which apply for such licenses

5 upon payment to the Board of the non-refundable license feeas

6 provided in subsection (e) or (e-5) ~~set by the Board, upon~~

7 ~~payment of a $25,000 license fee for the first year of~~

8 ~~operation and a $5,000 license fee for each succeeding year~~ and

9 upon a determination by the Board that the applicant is

10 eligible for an owners license pursuant to this Act and the

11 rules of the Board. From the effective date of this amendatory

12 Act of the 95th General Assembly until (i) 3 years after the

13 effective date of this amendatory Act of the 95th General

14 Assembly, (ii) the date any organization licensee begins to

15 operate a slot machine or video game of chance under the

16 Illinois Horse Racing Act of 1975 or this Act, (iii) the date

17 that payments begin under subsection (c-5) of Section 13 of the

18 Act, ~~or~~ (iv) the wagering tax imposed under Section 13 of this

19 Act is increased by law to reflect a tax rate that is at least

20 as stringent or more stringent than the tax rate contained in

21 subsection (a-3) of Section 13, or (v) when an owners licensee

22 holding a license issued pursuant to Section 7.1 of this Act

23 begins conducting gaming, whichever occurs first, as a

24 condition of licensure and as an alternative source of payment

25 for those funds payable under subsection (c-5) of Section 13 of

26 this ~~the Riverboat Gambling~~ Act, any owners licensee that holds

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1 or receives its owners license on or after the effective date

2 of this amendatory Act of the 94th General Assembly, other than

3 an owners licensee operating a riverboat with adjusted gross

4 receipts in calendar year 2004 of less than $200,000,000, must

5 pay into the Horse Racing Equity Trust Fund, in addition to any

6 other payments required under this Act, an amount equal to 3%

7 of the adjusted gross receipts received by the owners licensee.

8 The payments required under this Section shall be made by the

9 owners licensee to the State Treasurer no later than 3:00

10 o'clock p.m. of the day after the day when the adjusted gross

11 receipts were received by the owners licensee. A person~~, firm~~

12 or entity ~~corporation~~is ineligible to receive an owners

13 license if:

14 (1) the person has been convicted of a felony under the

15 laws of this State, any other state, or the United States;

16 (2) the person has been convicted of any violation of

17 Article 28 of the Criminal Code of 1961 or the Criminal

18 Code of 2012, or substantially similar laws of any other

19 jurisdiction;

20 (3) the person or entity has submitted an application

21 for a license under this Act which contains false

22 information;

23 (4) the person is a member of the Board;

24 (5) a person defined in paragraph (1), (2), (3), or (4)

25 is an officer, director or managerial employee of the

26 entity ~~firm or corporation~~;

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1 (6) the entity ~~firm or corporation~~ employs a person

2 defined in paragraph (1), (2), (3),or (4) who participates

3 in the management or operation of gambling operations

4 authorized under this Act;

5 (7) (blank); or

6 (8) a license of the person or entity ~~, firm or~~

7 ~~corporation~~issued under this Act, or a license to own or

8 operate gambling facilities in any other jurisdiction, has

9 been revoked.

10 The Board is expressly prohibited from making changes to

11 the requirement that licensees make payment into the Horse

12 Racing Equity Trust Fund without the express authority of the

13 Illinois General Assembly and making any other rule to

14 implement or interpret this amendatory Act of the 95th General

15 Assembly. For the purposes of this paragraph, "rules" is given

16 the meaning given to that term in Section 1-70 of the Illinois

17 Administrative Procedure Act.

18 (b) In determining whether to grant an owners license to an

19 applicant, the Board shall consider:

20 (1) the character, reputation, experience and

21 financial integrity of the applicants and of any other or

22 separate person that either:

23 (A) controls, directly or indirectly, such

24 applicant, or

25 (B) is controlled, directly or indirectly, by such

26 applicant or by a person which controls, directly or

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1 indirectly, such applicant;

2 (2) the facilities or proposed facilities for the

3 conduct of ~~riverboat~~gambling;

4 (3) the highest prospective total revenue to be derived

5 by the State from the conduct of~~riverboat~~ gambling;

6 (4) the extent to which the ownership of the applicant

7 reflects the diversity of the State by including minority

8 persons, females, and persons with a disability and the

9 good faith affirmative action plan of each applicant to

10 recruit, train and upgrade minority persons, females, and

11 persons with a disability in all employment

12 classifications;

13 (5) the financial ability of the applicant to purchase

14 and maintain adequate liability and casualty insurance;

15 (6) whether the applicant has adequate capitalization

16 to provide and maintain, for the duration of a license, a

17 riverboat or casino;

18 (7) the extent to which the applicant exceeds or meets

19 other standards for the issuance of an owners license which

20 the Board may adopt by rule;~~and~~

21 (8) the ~~The~~ amount of the applicant's license bid; ~~.~~

22 (9) the extent to which the applicant or the proposed

23 host municipality plans to enter into revenue sharing

24 agreements with communities other than the host

25 municipality; and

26 (10) the extent to which the ownership of an applicant

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1 includes the most qualified number of minority persons,

2 females, and persons with a disability.

3 (c) Each owners license shall specify the place where the

4 casino ~~riverboats~~shall operateor the riverboat shall operate

5 and dock.

6 (d) Each applicant shall submit with his application, on

7 forms provided by the Board, 2 sets of his fingerprints.

8 (e) In addition to any licenses authorized under subsection

9 (e-5) of this Section, the ~~The~~ Board may issue up to 10

10 licenses authorizing the holders of such licenses to own

11 riverboats. In the application for an owners license, the

12 applicant shall state the dock at which the riverboat is based

13 and the water on which the riverboat will be located. The Board

14 shall issue 5 licenses to become effective not earlier than

15 January 1, 1991. Three of such licenses shall authorize

16 riverboat gambling on the Mississippi River, or, with approval

17 by the municipality in which the riverboat was docked on August

18 7, 2003 and with Board approval, be authorized to relocate to a

19 new location, in a municipality that (1) borders on the

20 Mississippi River or is within 5 miles of the city limits of a

21 municipality that borders on the Mississippi River and (2), on

22 August 7, 2003, had a riverboat conducting riverboat gambling

23 operations pursuant to a license issued under this Act; one of

24 which shall authorize riverboat gambling from a home dock in

25 the city of East St. Louis. One other license shall authorize

26 riverboat gambling on the Illinois Riverin Tazewell County or,

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1 with Board approval, shall authorize the riverboat to relocate

2 to a new location that is no more than 10 miles away from its

3 original location, in a municipality that borders on the

4 Illinois River or is within 5 miles of the city limits of a

5 municipality that borders on the Illinois River ~~south of~~

6 ~~Marshall County~~. The Board shall issue one additional license

7 to become effective not earlier than March 1, 1992, which shall

8 authorize riverboat gambling on the Des Plaines River in Will

9 County. The Board may issue 4 additional licenses to become

10 effective not earlier than March 1, 1992. In determining the

11 water upon which riverboats will operate, the Board shall

12 consider the economic benefit which riverboat gambling confers

13 on the State, and shall seek to assure that all regions of the

14 State share in the economic benefits of riverboat gambling.

15 In granting all licenses, the Board may give favorable

16 consideration to economically depressed areas of the State, to

17 applicants presenting plans which provide for significant

18 economic development over a large geographic area, and to

19 applicants who currently operate non-gambling riverboats in

20 Illinois. The Board shall review all applications for owners

21 licenses, and shall inform each applicant of the Board's

22 decision. The Board may grant an owners license to an applicant

23 that has not submitted the highest license bid, but if it does

24 not select the highest bidder, the Board shall issue a written

25 decision explaining why another applicant was selected and

26 identifying the factors set forth in this Section that favored

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1 the winning bidder. The fee for issuance or renewal of a

2 license pursuant to this subsection (e) shall be $100,000.

3 (e-5) In addition to licenses authorized under subsection

4 (e) of this Section the Board may issue:

5 (1) one owners license authorizing the conduct of

6 riverboat gambling in Vermilion County;

7 (2) one owners license authorizing the conduct of

8 riverboat gambling in Lake County;

9 (3) one owners license authorizing the conduct of

10 riverboat gambling in Winnebago County; and

11 (4) one owners license authorizing the conduct of

12 riverboat gambling in a municipality that is located in one

13 of the following townships of Cook County: Bloom, Bremen,

14 Calumet, Rich, Thornton, or Worth Township.

15 Each application for a license pursuant to this subsection

16 (e-5) shall be submitted to the Board no later than 6 months

17 after the effective date of this amendatory Act of the 99th

18 General Assembly and shall include the non-refundable

19 application fee and the non-refundable background

20 investigation fee as provided in subsection (d) of Section 6 of

21 this Act. In the event that an applicant submits an application

22 for a license pursuant to this subsection (e-5) prior to the

23 effective date of this amendatory Act of the 99th General

24 Assembly, such applicant shall submit the non-refundable

25 application fee and background investigation fee as provided in

26 subsection (d) of Section 6 of this Act no later than 6 months

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1 after the effective date of this amendatory Act of the 99th

2 General Assembly.

3 The Board shall consider issuing a license pursuant this

4 subsection only after the corporate authority of the

5 municipality in which the riverboat shall be located has

6 certified to the Board the following:

7 (i) that the applicant has negotiated with the

8 corporate authority in good faith;

9 (ii) that the applicant and the corporate authority

10 have mutually agreed on the permanent location of the

11 riverboat;

12 (iii) that the applicant and the corporate authority

13 have mutually agreed on the temporary location of the

14 riverboat;

15 (iv) that the applicant and the corporate authority

16 have mutually agreed on the percentage of revenues that

17 will be shared with the municipality, if any; and

18 (v) that the applicant and the corporate authority have

19 mutually agreed on any zoning, licensing, public health, or

20 other issues that are within the jurisdiction of the

21 municipality.

22 At least 7 days before the corporate authority of a

23 municipality submits a certification to the Board concerning

24 items (i) through (v) of this subsection, it shall hold a

25 public hearing to discuss items (i) through (v), as well as any

26 other details concerning the proposed riverboat in the

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1 municipality. The corporate authority must subsequently

2 memorialize the details concerning the proposed riverboat or

3 casino in a resolution that must be adopted by a majority of

4 the corporate authority before any certification is sent to the

5 Board. The Board shall not alter, amend, change, or otherwise

6 interfere with any agreement between the applicant and the

7 corporate authority of the municipality regarding the location

8 of any temporary or permanent facility.

9 (e-10) The licenses authorized under subsection (e-5) of

10 this Section shall be issued within 12 months after the date

11 the license application is submitted. If the Board does not

12 issue the licenses within that time period, then the Board

13 shall give a written explanation to the applicant as to why it

14 has not reached a determination and when it reasonably expects

15 to make a determination. The fee for the issuance or renewal of

16 a license issued pursuant to this subsection (e-10) shall be

17 $100,000. Additionally, a licensee located outside of Cook

18 County shall pay a minimum initial fee of $12,500 per gaming

19 position, and a licensee located in Cook County shall pay a

20 minimum initial fee of $25,000 per gaming position. The initial

21 fees payable under this subsection (e-10) shall be deposited

22 into the Gaming Facilities Fee Revenue Fund.

23 (e-20) In addition to any other revocation powers granted

24 to the Board under this Act, the Board may revoke the owners

25 license of a licensee which fails to begin conducting gambling

26 within 15 months of receipt of the Board's approval of the

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1 application if the Board determines that license revocation is

2 in the best interests of the State.

3 (f) The first 10 owners licenses issued under this Act

4 shall permit the holder to own up to 2 riverboats and equipment

5 thereon for a period of 3 years after the effective date of the

6 license. Holders of the first 10 owners licenses must pay the

7 annual license fee for each of the 3 years during which they

8 are authorized to own riverboats.

9 (g) Upon the termination, expiration, or revocation of each

10 of the first 10 licenses, which shall be issued for a 3 year

11 period, all licenses are renewable annually upon payment of the

12 fee and a determination by the Board that the licensee

13 continues to meet all of the requirements of this Act and the

14 Board's rules. However, for licenses renewed on or after May 1,

15 1998, renewal shall be for a period of 4 years, unless the

16 Board sets a shorter period.

17 (h) An owners license issued under this Section, except for

18 an owners license issued under subsection (e-5) of this

19 Section,shall entitle the licensee to own up to 2 riverboats.

20 A licensee shall limit the number of gaming positions

21 ~~gambling participants~~to 1,200 for any such owners license.

22 A licensee may operate both of its riverboats concurrently,

23 provided that the total number ofgaming positions ~~gambling~~

24 ~~participants~~on both riverboats does not exceed 1,200.

25 Riverboats licensed to operate on the Mississippi River and the

26 Illinois River south of Marshall County shall have an

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1 authorized capacity of at least 500 persons. Any other

2 riverboat licensed under this Act shall have an authorized

3 capacity of at least 400 persons.

4 (i) A licensed owner is authorized to apply to the Board

5 for and, if approved therefor, to receive all licenses from the

6 Board necessary for the operation of a riverboator a casino,

7 including a liquor license, a license to prepare and serve food

8 for human consumption, and other necessary licenses. All use,

9 occupation and excise taxes which apply to the sale of food and

10 beverages in this State and all taxes imposed on the sale or

11 use of tangible personal property apply to such sales aboard

12 the riverboat or in the casino.

13 (j) The Board may issue or re-issue a license authorizing a

14 riverboat to dock in a municipality or approve a relocation

15 under Section 11.2 only if, prior to the issuance or

16 re-issuance of the license or approval, the governing body of

17 the municipality in which the riverboat will dock has by a

18 majority vote approved the docking of riverboats in the

19 municipality. The Board may issue or re-issue a license

20 authorizing a riverboat to dock in areas of a county outside

21 any municipality or approve a relocation under Section 11.2

22 only if, prior to the issuance or re-issuance of the license or

23 approval, the governing body of the county has by a majority

24 vote approved of the docking of riverboats within such areas.

25 (k) An owners licensee may conduct land-based gambling

26 operations upon approval by the Board.

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1 (l) An owners licensee may conduct gaming at a temporary

2 facility pending the construction of a permanent facility or

3 the remodeling or relocation of an existing facility to

4 accommodate gaming participants for up to 24 months after the

5 temporary facility begins to conduct gaming. Upon request by an

6 owners licensee and upon a showing of good cause by the owners

7 licensee, the Board shall extend the period during which the

8 licensee may conduct gaming at a temporary facility by up to 12

9 months. The Board shall make rules concerning the conduct of

10 gaming from temporary facilities.

11 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

12 (230 ILCS 10/7.3)

13 Sec. 7.3. State conduct of gambling operations; reissued

14 license.

15 (a) If, after reviewing each application for a re-issued

16 license, the Board determines that the highest prospective

17 total revenue to the State would be derived from State conduct

18 of the gambling operation in lieu of re-issuing the license,

19 the Board shall inform each applicant of its decision. The

20 Board shall thereafter have the authority, without obtaining an

21 owners license, to conductcasino or riverboat gambling

22 operations as previously authorized by the terminated,

23 expired, revoked, or nonrenewed license through a licensed

24 manager selected pursuant to an open and competitive bidding

25 process as set forth in Section 7.5 and as provided in Section

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1 7.4.

2 (b) The Board may locate any casino or riverboat on which a

3 gambling operation is conducted by the State in any home dock

4 or otherlocation authorized by Section 3(c) upon receipt of

5 approval from a majority vote of the governing body of the

6 municipality or county, as the case may be, in which the

7 riverboat will dock.

8 (c) The Board shall have jurisdiction over and shall

9 supervise all gambling operations conducted by the State

10 provided for in this Act and shall have all powers necessary

11 and proper to fully and effectively execute the provisions of

12 this Act relating to gambling operations conducted by the

13 State.

14 (d) The maximum number of owners licenses authorized under

15 Section 7~~7(e)~~shall be reduced by one for each instance in

16 which the Board authorizes the State to conduct acasino or

17 riverboat gambling operation under subsection (a) in lieu of

18 re-issuing a license to an applicant under Section 7.1.

19 (Source: P.A. 93-28, eff. 6-20-03.)

20 (230 ILCS 10/7.3a new)

21 Sec. 7.3a. State conduct of gambling operations; Chicago

22 casino.

23 (a) The Board is authorized to conduct gambling operations

24 on a riverboat or in a casino, through a licensed manager,

25 within the City of Chicago.

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1 (b) The City of Chicago shall select the site for the

2 gambling operation and acquire, upon consultation with the

3 Capital Development Board, any land necessary for its

4 construction. For the purposes of this subsection (b), the City

5 of Chicago may acquire, by eminent domain or by condemnation

6 proceedings in the manner provided by the Eminent Domain Act,

7 real or personal property or interests in real or personal

8 property located in the City of Chicago, and the City of

9 Chicago shall convey to the Illinois Gaming Board property so

10 acquired upon reimbursement to the City of Chicago of the

11 purchase price of the property, plus reasonable interest costs.

12 The acquisition of property under this subsection (b) is

13 declared to be for a public use.

14 (c) The Capital Development Board shall construct, repair,

15 and maintain, or contract for and supervise the construction,

16 repair, or maintenance of, facilities for use by the Board to

17 conduct gambling operations under this Section.

18 (d) The Board must select and license a manager for the

19 gambling operations authorized under this Section pursuant to

20 Section 7.4 of this Act within 6 months after the effective

21 date of this amendatory Act of the 99th General Assembly. The

22 Board may, upon written request to the majority and minority

23 leaders of the House of Representatives and the Senate no less

24 than 14 days prior to the expiration of the 6-month period,

25 request an extension on this deadline to select and license a

26 manager of no more than 45 days. Either house of the General

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1 Assembly may, by resolution, deny the 45-day extension.

2 (e) The gambling operation authorized under this Section

3 shall operate not less than 4,000 positions or more than 6,000

4 positions.

5 (f) The Board shall have jurisdiction over and shall

6 supervise all gambling operations conducted by the State

7 provided for in this Section and shall have all powers

8 necessary and proper to fully and effectively execute the

9 provisions of this Section relating to gambling operations

10 conducted by the State.

11 (230 ILCS 10/7.4)

12 Sec. 7.4. Managers licenses.

13 (a) A qualified person may apply to the Board for a

14 managers license to operate and manage any gambling operation

15 conducted by the State. The application shall be made on forms

16 provided by the Board and shall contain such information as the

17 Board prescribes, including but not limited to information

18 required in Sections 6(a), (b), and (c) and information

19 relating to the applicant's proposed price to manage State

20 gambling operations and to provide the riverboat, gambling

21 equipment, and supplies necessary to conduct State gambling

22 operations.

23 (b) Each applicant must submit evidence to the Board that

24 minority persons and females hold ownership interests in the

25 applicant of at least 16% and 4%, respectively.

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1 (c) A person, firm, or corporation is ineligible to receive

2 a managers license if:

3 (1) the person has been convicted of a felony under the

4 laws of this State, any other state, or the United States;

5 (2) the person has been convicted of any violation of

6 Article 28 of the Criminal Code of 1961 or the Criminal

7 Code of 2012, or substantially similar laws of any other

8 jurisdiction;

9 (3) the person has submitted an application for a

10 license under this Act which contains false information;

11 (4) the person is a member of the Board;

12 (5) a person defined in paragraph (1), (2), (3), or (4)

13 is an officer, director, or managerial employee of the firm

14 or corporation;

15 (6) the firm or corporation employs a person defined in

16 paragraph(1), (2), (3), or (4) who participates in the

17 management or operation of gambling operations authorized

18 under this Act; or

19 (7) a license of the person, firm, or corporation

20 issued under this Act, or a license to own or operate

21 gambling facilities in any other jurisdiction, has been

22 revoked.

23 (d) Each applicant shall submit with his or her

24 application, on forms prescribed by the Board, 2 sets of his or

25 her fingerprints.

26 (e) The Board shall charge each applicant a fee, set by the

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1 Board, to defray the costs associated with the background

2 investigation conducted by the Board.

3 (f) A person who knowingly makes a false statement on an

4 application is guilty of a Class A misdemeanor.

5 (g) The managers license shall be for a term not less than

6 4 years but not more than ~~to exceed~~10 years, shall be

7 renewable at the Board's option, and shall contain such terms

8 and provisions as the Board deems necessary to protect or

9 enhance the credibility and integrity of State gambling

10 operations, achieve the highest prospective total revenue to

11 the State, and otherwise serve the interests of the citizens of

12 Illinois.

13 (h) Issuance of a managers license shall be subject to an

14 open and competitive bidding process. The Board may select an

15 applicant other than the lowest bidder by price. If it does not

16 select the lowest bidder, the Board shall issue a notice of who

17 the lowest bidder was and a written decision as to why another

18 bidder was selected.

19 (Source: P.A. 97-1150, eff. 1-25-13.)

20 (230 ILCS 10/7.5)

21 Sec. 7.5. Competitive Bidding. When the Board determines

22 that (i)it will re-issue an owners license pursuant to an open

23 and competitive bidding process, as set forth in Section 7.1,

24 (ii) ~~or that~~it will issue a managers license pursuant to an

25 open and competitive bidding process, as set forth in Section

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1 7.4, or (iii) it will issue an owners license pursuant to an

2 open and competitive bidding process, as set forth in Section

3 7.12,the open and competitive bidding process shall adhere to

4 the following procedures:

5 (1) The Board shall make applications for owners and

6 managers licenses available to the public and allow a

7 reasonable time for applicants to submit applications to the

8 Board.

9 (2) During the filing period for owners or managers license

10 applications, the Board may retain the services of an

11 investment banking firm to assist the Board in conducting the

12 open and competitive bidding process.

13 (3) After receiving all of the bid proposals, the Board

14 shall open all of the proposals in a public forum and disclose

15 the prospective owners or managers names, venture partners, if

16 any, and, in the case of applicants for owners licenses, the

17 locations of the proposed development sites.

18 (4) The Board shall summarize the terms of the proposals

19 and may make this summary available to the public.

20 (5) The Board shall evaluate the proposals within a

21 reasonable time and select no more than 3 final applicants to

22 make presentations of their proposals to the Board.

23 (6) The final applicants shall make their presentations to

24 the Board on the same day during an open session of the Board.

25 (7) As soon as practicable after the public presentations

26 by the final applicants, the Board, in its discretion, may

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1 conduct further negotiations among the 3 final applicants.

2 During such negotiations, each final applicant may increase its

3 license bid or otherwise enhance its bid proposal. At the

4 conclusion of such negotiations, the Board shall select the

5 winning proposal. In the case of negotiations for an owners

6 license, the Board may, at the conclusion of such negotiations,

7 make the determination allowed under Section 7.3(a).

8 (8) Upon selection of a winning bid, the Board shall

9 evaluate the winning bid within a reasonable period of time for

10 licensee suitability in accordance with all applicable

11 statutory and regulatory criteria.

12 (9) If the winning bidder is unable or otherwise fails to

13 consummate the transaction, (including if the Board determines

14 that the winning bidder does not satisfy the suitability

15 requirements), the Board may, on the same criteria, select from

16 the remaining bidders or make the determination allowed under

17 Section 7.3(a).

18 (Source: P.A. 93-28, eff. 6-20-03.)

19 (230 ILCS 10/7.7 new)

20 Sec. 7.7. Electronic gaming.

21 (a) The General Assembly finds that the horse racing and

22 riverboat gambling industries share many similarities and

23 collectively comprise the bulk of the State's gaming industry.

24 One feature common to both industries is that each is highly

25 regulated by the State of Illinois. The General Assembly

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1 further finds, however, that despite their shared features each

2 industry is distinct from the other in that horse racing is and

3 continues to be intimately tied to Illinois' agricultural

4 economy and is, at its core, a spectator sport. This

5 distinction requires the General Assembly to utilize different

6 methods to regulate and promote the horse racing industry

7 throughout the State. The General Assembly finds that in order

8 to promote live horse racing as a spectator sport in Illinois

9 and the agricultural economy of this State, it is necessary to

10 allow electronic gaming at Illinois race tracks as an ancillary

11 use given the success of other states in increasing live racing

12 purse accounts and improving the quality of horses

13 participating in horse race meetings.

14 (b) The Illinois Gaming Board shall award one electronic

15 gaming license to each person or entity having operating

16 control of a race track that applies under Section 56 of the

17 Illinois Horse Racing Act of 1975, subject to the application

18 and eligibility requirements of this Section. Within 60 days

19 after the effective date of this amendatory Act of the 99th

20 General Assembly, a person or entity having operating control

21 of a race track may submit an application for an electronic

22 gaming license. The application shall be made on such forms as

23 provided by the Board and shall contain such information as the

24 Board prescribes, including, but not limited to, the identity

25 of any race track at which electronic gaming will be conducted,

26 detailed information regarding the ownership and management of

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1 the applicant, and detailed personal information regarding the

2 applicant. The application shall specify the number of gaming

3 positions the applicant intends to use and the place where the

4 electronic gaming facility will operate. A person who knowingly

5 makes a false statement on an application is guilty of a Class

6 A misdemeanor.

7 Each applicant shall disclose the identity of every person

8 or entity having a direct or indirect pecuniary interest

9 greater than 1% in any race track with respect to which the

10 license is sought. If the disclosed entity is a corporation,

11 the applicant shall disclose the names and addresses of all

12 stockholders and directors. If the disclosed entity is a

13 limited liability company, the applicant shall disclose the

14 names and addresses of all members and managers. If the

15 disclosed entity is a partnership, the applicant shall disclose

16 the names and addresses of all partners, both general and

17 limited. If the disclosed entity is a trust, the applicant

18 shall disclose the names and addresses of all beneficiaries.

19 An application shall be filed and considered in accordance

20 with the rules of the Board. Each application for an electronic

21 gaming license shall include a non-refundable application fee

22 of $100,000. In addition, a non-refundable fee of $50,000 shall

23 be paid at the time of filing to defray the costs associated

24 with background investigations conducted by the Board. If the

25 costs of the background investigation exceed $50,000, the

26 applicant shall pay the additional amount to the Board within 7

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1 days after a request by the Board. If the costs of the

2 investigation are less than $50,000, the applicant shall

3 receive a refund of the remaining amount. All information,

4 records, interviews, reports, statements, memoranda, or other

5 data supplied to or used by the Board in the course of this

6 review or investigation of an applicant for an electronic

7 gaming license under this Act shall be privileged and strictly

8 confidential and shall be used only for the purpose of

9 evaluating an applicant for an electronic gaming license or a

10 renewal. Such information, records, interviews, reports,

11 statements, memoranda, or other data shall not be admissible as

12 evidence nor discoverable in any action of any kind in any

13 court or before any tribunal, board, agency or person, except

14 for any action deemed necessary by the Board. The application

15 fee shall be deposited into the Gaming Facilities Fee Revenue

16 Fund.

17 Each applicant shall submit with his or her application, on

18 forms provided by the Board, 2 sets of his or her fingerprints.

19 The Board shall charge each applicant a fee set by the

20 Department of State Police to defray the costs associated with

21 the search and classification of fingerprints obtained by the

22 Board with respect to the applicant's application. This fee

23 shall be paid into the State Police Services Fund.

24 An application of any person or entity having operating

25 control of a race track at which 10 or more persons have worked

26 in the prior year providing or preparing food or beverage or

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1 performing custodial or maintenance work must include written

2 proof that the person or entity has entered into a labor peace

3 agreement with each labor organization that is actively engaged

4 in representing and attempting to represent food and beverage,

5 hospitality, custodial, and maintenance workers in this State.

6 If the application does not include the written proof that the

7 applicant has entered into the labor peace agreement, then the

8 application shall not be processed and the application must be

9 resubmitted. For the purposes of this paragraph, "labor peace

10 agreement" means an agreement in which a labor organization

11 waives the right of itself and its members to strike, picket,

12 or otherwise boycott the operation for at least 3 years.

13 (c) The Board shall determine within 120 days after

14 receiving an application for an electronic gaming license

15 whether to grant an electronic gaming license to the applicant.

16 If the Board does not make a determination within that time

17 period, then the Board shall give a written explanation to the

18 applicant as to why it has not reached a determination and when

19 it reasonably expects to make a determination.

20 The electronic gaming licensee shall purchase up to the

21 amount of electronic gaming positions authorized under this Act

22 within 120 days after receiving its electronic gaming license.

23 If an electronic gaming licensee is prepared to purchase the

24 electronic gaming positions, but is temporarily prohibited

25 from doing so by order of a court of competent jurisdiction or

26 the Board, then the 120-day period is tolled until a resolution

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1 is reached.

2 An electronic gaming license shall authorize its holder to

3 conduct electronic gaming at its race track at the following

4 times:

5 (1) On days when it conducts live racing at the track

6 where its electronic gaming facility is located, from 8:00

7 a.m. until 3:00 a.m. on the following day.

8 (2) On days when it is scheduled to conduct simulcast

9 wagering on races run in the United States, from 8:00 a.m.

10 until 3:00 a.m. on the following day.

11 Additionally, the Board may extend these days of operation

12 and hours upon request by an organization licensee as the Board

13 sees fit.

14 A license to conduct electronic gaming and any renewal of

15 an electronic gaming license shall authorize electronic gaming

16 for a period of 4 years. The fee for the issuance or renewal of

17 an electronic gaming license shall be $100,000.

18 (d) To be eligible to conduct electronic gaming, a person

19 or entity having operating control of a race track must (i)

20 obtain an electronic gaming license, (ii) hold an organization

21 license under the Illinois Horse Racing Act of 1975, (iii) hold

22 an inter-track wagering license, (iv) pay an initial fee of

23 $25,000 per gaming position from electronic gaming licensees

24 where electronic gaming is conducted in Cook County and $12,500

25 for electronic gaming licensees where electronic gaming is

26 located outside of Cook County before beginning to conduct

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1 electronic gaming, (v) conduct at least 240 live races at each

2 track per year or, for a licensee that is only authorized 175

3 gaming positions pursuant to subsection (f) of this Section,

4 have a fully operational facility running at least 96 live

5 races over a period of at least 15 days per year until such

6 time as the total number of gaming positions is increased to

7 450, (vi) meet the requirements of subsection (a) of Section 56

8 of the Illinois Horse Racing Act of 1975, (vii) for

9 organization licensees conducting standardbred race meetings

10 that had an open backstretch in 2009, keep backstretch barns

11 and dormitories open and operational year-round unless a lesser

12 schedule is mutually agreed to by the organization licensee and

13 the horsemen's association racing at that organization

14 licensee's race meeting, (viii) for organization licensees

15 conducting thoroughbred race meetings, the organization

16 licensee must maintain accident medical expense liability

17 insurance coverage of $1,000,000 for jockeys, and (ix) meet all

18 other requirements of this Act that apply to owners licensees.

19 Only those persons or entities (or its successors or assigns)

20 that had operating control of a race track and held an

21 inter-track wagering license authorized by the Illinois Racing

22 Board in 2009 are eligible.

23 An electronic gaming licensee may enter into a joint

24 venture with a licensed owner to own, manage, conduct, or

25 otherwise operate the electronic gaming licensee's electronic

26 gaming facilities, unless the electronic gaming licensee has a

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1 parent company or other affiliated company that is, directly or

2 indirectly, wholly owned by a parent company that is also

3 licensed to conduct electronic gaming, casino gaming, or their

4 equivalent in another state.

5 All payments by licensees under this subsection (c) shall

6 be deposited into the Gaming Facilities Fee Revenue Fund.

7 (e) A person or entity is ineligible to receive an

8 electronic gaming license if:

9 (1) the person or entity has been convicted of a felony

10 under the laws of this State, any other state, or the

11 United States, including a conviction under the Racketeer

12 Influenced and Corrupt Organizations Act;

13 (2) the person or entity has been convicted of any

14 violation of Article 28 of the Criminal Code of 2012, or

15 substantially similar laws of any other jurisdiction;

16 (3) the person or entity has submitted an application

17 for a license under this Act that contains false

18 information;

19 (4) the person is a member of the Board;

20 (5) a person defined in paragraph (1), (2), (3), or (4)

21 of this subsection (e) is an officer, director, or

22 managerial employee of the entity;

23 (6) the person or entity employs a person defined in

24 paragraph (1), (2), (3), or (4) of this subsection (e) who

25 participates in the management or operation of gambling

26 operations authorized under this Act; or

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1 (7) a license of the person or entity issued under this

2 Act or a license to own or operate gambling facilities in

3 any other jurisdiction has been revoked.

4 (f) The Board may approve electronic gaming positions

5 statewide as provided in this Section. The authority to operate

6 electronic gaming positions under this Section shall be

7 allocated as follows: up to 600 gaming positions for any

8 electronic gaming licensee in Cook County whose electronic

9 gaming license originates with an organization licensee that

10 conducted live racing in calendar year 2010; up to 450 gaming

11 positions for any electronic gaming licensee outside of Cook

12 County whose electronic gaming license originates with an

13 organization licensee that conducted live racing in calendar

14 year 2010; and up to 175 gaming positions for any electronic

15 gaming licensee whose electronic gaming license originates

16 with an organization licensee that did not conduct live racing

17 in calendar year 2010, which shall increase to 450 gaming

18 positions in the calendar year following the year in which the

19 electronic gaming licensee conducts 96 live races.

20 (g) Subject to the approval of the Illinois Gaming Board,

21 an electronic gaming licensee may make modification or

22 additions to any existing buildings and structures to comply

23 with the requirements of this Act. The Illinois Gaming Board

24 shall make its decision after consulting with the Illinois

25 Racing Board. In no case, however, shall the Illinois Gaming

26 Board approve any modification or addition that alters the

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1 grounds of the organizational licensee such that the act of

2 live racing is an ancillary activity to electronic gaming.

3 Electronic gaming may take place in existing structures where

4 inter-track wagering is conducted at the race track or a

5 facility within 300 yards of the race track in accordance with

6 the provisions of this Act and the Illinois Horse Racing Act of

7 1975.

8 (h) An electronic gaming licensee may conduct electronic

9 gaming at a temporary facility pending the construction of a

10 permanent facility or the remodeling or relocation of an

11 existing facility to accommodate electronic gaming

12 participants for up to 24 months after the temporary facility

13 begins to conduct electronic gaming. Upon request by an

14 electronic gaming licensee and upon a showing of good cause by

15 the electronic gaming licensee, the Board shall extend the

16 period during which the licensee may conduct electronic gaming

17 at a temporary facility by up to 12 months. The Board shall

18 make rules concerning the conduct of electronic gaming from

19 temporary facilities.

20 Electronic gaming may take place in existing structures

21 where inter-track wagering is conducted at the race track or a

22 facility within 300 yards of the race track in accordance with

23 the provisions of this Act and the Illinois Horse Racing Act of

24 1975. Any electronic gaming conducted at a permanent facility

25 within 300 yards of the race track in accordance with this Act

26 and the Illinois Horse Racing Act of 1975 shall have an

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1 all-weather egress connecting the electronic gaming facility

2 and the race track facility or, on days and hours of live

3 racing, a complimentary shuttle service between the permanent

4 electronic gaming facility and the race track facility and

5 shall not charge electronic gaming participants an additional

6 admission fee to the race track facility.

7 (i) The Illinois Gaming Board must adopt emergency rules in

8 accordance with Section 5-45 of the Illinois Administrative

9 Procedure Act as necessary to ensure compliance with the

10 provisions of this amendatory Act of the 99th General Assembly

11 concerning electronic gaming. The adoption of emergency rules

12 authorized by this subsection (i) shall be deemed to be

13 necessary for the public interest, safety, and welfare.

14 (j) As soon as practical after a request is made by the

15 Illinois Gaming Board, to minimize duplicate submissions by the

16 applicant, the Illinois Racing Board must provide information

17 on an applicant for an electronic gaming license to the

18 Illinois Gaming Board.

19 (k) Subject to the approval of the Illinois Gaming Board,

20 an organization licensee that has received an electronic gaming

21 license under this Act and has operating control of a race

22 track facility located in Cook County may relocate its race

23 track facility as follows:

24 (1) the organization licensee may relocate within a

25 3-mile radius of its existing race track facility so long

26 as the organization licensee remains in Cook County and

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1 submits its plan to construct a new structure to conduct

2 electronic gaming operations; and

3 (2) the organization licensee may not relocate within a

4 5-mile radius of a riverboat if the owners license was

5 issued prior to December 31, 2011.

6 The relocation must include the race track facility, including

7 the race track operations used to conduct live racing and the

8 electronic gaming facility in its entirety. For the purposes of

9 this subsection (k), "race track facility" means all operations

10 conducted on the race track property for which it was awarded a

11 license for pari-mutuel wagering and live racing in the year

12 2010, except for the real estate itself. The Illinois Gaming

13 Board shall make its decision after consulting with the

14 Illinois Racing Board, and any relocation application shall be

15 subject to all of the provisions of this Act and the Illinois

16 Horse Racing Act of 1975.

17 (230 ILCS 10/7.8 new)

18 Sec. 7.8. Home rule. The regulation and licensing of

19 electronic gaming and electronic gaming licensees are

20 exclusive powers and functions of the State. A home rule unit

21 may not regulate or license electronic gaming or electronic

22 gaming licensees. This Section is a denial and limitation of

23 home rule powers and functions under subsection (h) of Section

24 6 of Article VII of the Illinois Constitution.

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1 (230 ILCS 10/7.9 new)

2 Sec. 7.9. Diversity program.

3 (a) Each owners licensee, electronic gaming licensee, and

4 suppliers licensee shall establish and maintain a diversity

5 program to ensure non-discrimination in the award and

6 administration of contracts. The programs shall establish

7 goals of awarding not less than 20% of the annual dollar value

8 of all contracts, purchase orders, or other agreements to

9 minority-owned businesses and 5% of the annual dollar value of

10 all contracts to female-owned businesses.

11 (b) Each owners licensee, electronic gaming licensee, and

12 suppliers licensee shall establish and maintain a diversity

13 program designed to promote equal opportunity for employment.

14 The program shall establish hiring goals as the Board and each

15 licensee determines appropriate. The Board shall monitor the

16 progress of the gaming licensee's progress with respect to the

17 program's goals.

18 (c) No later than May 31 of each year, each licensee shall

19 report to the Board the number of respective employees and the

20 number of their respective employees who have designated

21 themselves as members of a minority group and gender. In

22 addition, all licensees shall submit a report with respect to

23 the minority-owned and female-owned businesses program created

24 in this Section to the Board.

25 (230 ILCS 10/7.10 new)

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1 Sec. 7.10. Annual report on diversity.

2 (a) Each licensee that receives a license under Sections 7,

3 7.1, and 7.7 shall execute and file a report with the Board no

4 later than December 31 of each year that shall contain, but not

5 be limited to, the following information:

6 (i) a good faith affirmative action plan to recruit,

7 train, and upgrade minority persons, females, and persons

8 with a disability in all employment classifications;

9 (ii) the total dollar amount of contracts that were

10 awarded to businesses owned by minority persons, females,

11 and persons with a disability;

12 (iii) the total number of businesses owned by minority

13 persons, females, and persons with a disability that were

14 utilized by the licensee;

15 (iv) the utilization of businesses owned by minority

16 persons, females, and persons with disabilities during the

17 preceding year; and

18 (v) the outreach efforts used by the licensee to

19 attract investors and businesses consisting of minority

20 persons, females, and persons with a disability.

21 (b) The Board shall forward a copy of each licensee's

22 annual reports to the General Assembly no later than February 1

23 of each year.

24 (230 ILCS 10/7.11 new)

25 Sec. 7.11. Issuance of new owners licenses.

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1 (a) Owners licenses authorized pursuant to subsection

2 (e-5) of Section 7 of this Act may be issued by the Board to a

3 qualified applicant pursuant to an open and competitive bidding

4 process, as set forth in Section 7.5, and subject to the

5 maximum number of authorized licenses set forth in subsection

6 (e-5) of Section 7 of this Act.

7 (b) To be a qualified applicant, a person or entity may not

8 be ineligible to receive an owners license under subsection (a)

9 of Section 7 of this Act and must submit an application for an

10 owners license that complies with Section 6 of this Act.

11 (c) In determining whether to grant an owners license to an

12 applicant, the Board shall consider all of the factors set

13 forth in subsections (b) and (e-10) of Section 7 of this Act,

14 as well as the amount of the applicant's license bid. The Board

15 may grant the owners license to an applicant that has not

16 submitted the highest license bid, but if it does not select

17 the highest bidder, the Board shall issue a written decision

18 explaining why another applicant was selected and identifying

19 the factors set forth in subsections (b) and (e-10) of Section

20 7 of this Act that favored the winning bidder.

21 (230 ILCS 10/7.12 new)

22 Sec. 7.12. Environmental standards. All permanent

23 casinos, riverboats, and electronic gaming facilities shall

24 consist of buildings that are certified as meeting the U.S.

25 Green Building Council's Leadership in Energy and

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1 Environmental Design standards. The provisions of this Section

2 apply to a holder of an owners license, or electronic gaming

3 license that (i) begins operations on or after January 1, 2016

4 or (ii) relocates its facilities on or after the effective date

5 of this amendatory Act of the 99th General Assembly.

6 (230 ILCS 10/8) (from Ch. 120, par. 2408)

7 Sec. 8. Suppliers licenses.

8 (a) The Board may issue a suppliers license to such

9 persons, firms or corporations which apply therefor upon the

10 payment of a non-refundable application fee set by the Board,

11 upon a determination by the Board that the applicant is

12 eligible for a suppliers license and upon payment of a $5,000

13 annual license fee.

14 (b) The holder of a suppliers license is authorized to sell

15 or lease, and to contract to sell or lease, gambling equipment

16 and supplies to any licensee involved in the ownership or

17 management of gambling operations.

18 (c) Gambling supplies and equipment may not be distributed

19 unless supplies and equipment conform to standards adopted by

20 rules of the Board.

21 (d) A person, firm or corporation is ineligible to receive

22 a suppliers license if:

23 (1) the person has been convicted of a felony under the

24 laws of this State, any other state, or the United States;

25 (2) the person has been convicted of any violation of

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1 Article 28 of the Criminal Code of 1961 or the Criminal

2 Code of 2012, or substantially similar laws of any other

3 jurisdiction;

4 (3) the person has submitted an application for a

5 license under this Act which contains false information;

6 (4) the person is a member of the Board;

7 (5) the entity ~~firm or corporation~~ is one in which a

8 person defined in paragraph(1), (2), (3), or (4), is an

9 officer, director, or managerial employee;

10 (6) the firm or corporation employs a person who

11 participates in the management or operation of riverboat

12 gambling authorized under this Act;

13 (7) the license of the person, firm, or corporation

14 issued under this Act, or a license to own or operate

15 gambling facilities in any other jurisdiction, has been

16 revoked.

17 (e) Any person that supplies any equipment, devices, or

18 supplies to a licensed riverboator casino gambling operation

19 or electronic gaming operationmust first obtain a suppliers

20 license. A supplier shall furnish to the Board a list of all

21 equipment, devices and supplies offered for sale or lease in

22 connection with gambling games authorized under this Act. A

23 supplier shall keep books and records for the furnishing of

24 equipment, devices and supplies to gambling operations

25 separate and distinct from any other business that the supplier

26 might operate. A supplier shall file a quarterly return with

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1 the Board listing all sales and leases. A supplier shall

2 permanently affix its name or a distinctive logo or other mark

3 or design element identifying the manufacturer or supplier to

4 all its equipment, devices, and supplies, except gaming chips

5 without a value impressed, engraved, or imprinted on it, for

6 gambling operations. The Board may waive this requirement for

7 any specific product or products if it determines that the

8 requirement is not necessary to protect the integrity of the

9 game. Items purchased from a licensed supplier may continue to

10 be used even though the supplier subsequently changes its name,

11 distinctive logo, or other mark or design element; undergoes a

12 change in ownership; or ceases to be licensed as a supplier for

13 any reason. Any supplier's equipment, devices or supplies which

14 are used by any person in an unauthorized gambling operation

15 shall be forfeited to the State. A holder of an owners license

16 or an electronic gaming license ~~A licensed owner~~ may own its

17 own equipment, devices and supplies. Each holder of an owners

18 license or an electronic gaming license or, in the case of a

19 gambling operation conducted on behalf of the State, a

20 manager's license under this ~~the~~ Act shall file an annual

21 report listing its inventories of gambling equipment, devices

22 and supplies.

23 (f) Any person who knowingly makes a false statement on an

24 application is guilty of a Class A misdemeanor.

25 (g) Any gambling equipment, devices, and supplies provided

26 by any licensed supplier may either be repaired on the

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1 riverboat, in the casino, or at the electronic gaming facility

2 orremoved from the riverboat, casino, or electronic gaming

3 facility to a ~~an on-shore~~ facility owned by the holder of an

4 owners licenseor electronic gaming license for repair.

5 (Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;

6 98-756, eff. 7-16-14.)

7 (230 ILCS 10/9) (from Ch. 120, par. 2409)

8 Sec. 9. Occupational licenses.

9 (a) The Board may issue an occupational license to an

10 applicant upon the payment of a non-refundable fee set by the

11 Board, upon a determination by the Board that the applicant is

12 eligible for an occupational license and upon payment of an

13 annual license fee in an amount to be established. To be

14 eligible for an occupational license, an applicant must:

15 (1) be at least 21 years of age if the applicant will

16 perform any function involved in gaming by patrons. Any

17 applicant seeking an occupational license for a non-gaming

18 function shall be at least 18 years of age;

19 (2) not have been convicted of a felony offense, a

20 violation of Article 28 of the Criminal Code of 1961 or the

21 Criminal Code of 2012, or a similar statute of any other

22 jurisdiction;

23 (2.5) not have been convicted of a crime, other than a

24 crime described in item (2) of this subsection (a),

25 involving dishonesty or moral turpitude, except that the

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1 Board may, in its discretion, issue an occupational license

2 to a person who has been convicted of a crime described in

3 this item (2.5) more than 10 years prior to his or her

4 application and has not subsequently been convicted of any

5 other crime;

6 (3) have demonstrated a level of skill or knowledge

7 which the Board determines to be necessary in order to

8 operate gambling aboard a riverboat, in a casino, or at an

9 electronic gaming facility; and

10 (4) have met standards for the holding of an

11 occupational license as adopted by rules of the Board. Such

12 rules shall provide that any person or entity seeking an

13 occupational license to manage gambling operationsunder

14 this Act ~~hereunder~~ shall be subject to background inquiries

15 and further requirements similar to those required of

16 applicants for an owners license. Furthermore, such rules

17 shall provide that each such entity shall be permitted to

18 manage gambling operations for only one licensed owner.

19 (b) Each application for an occupational license shall be

20 on forms prescribed by the Board and shall contain all

21 information required by the Board. The applicant shall set

22 forth in the application: whether he has been issued prior

23 gambling related licenses; whether he has been licensed in any

24 other state under any other name, and, if so, such name and his

25 age; and whether or not a permit or license issued to him in

26 any other state has been suspended, restricted or revoked, and,

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1 if so, for what period of time.

2 (c) Each applicant shall submit with his application, on

3 forms provided by the Board, 2 sets of his fingerprints. The

4 Board shall charge each applicant a fee set by the Department

5 of State Police to defray the costs associated with the search

6 and classification of fingerprints obtained by the Board with

7 respect to the applicant's application. These fees shall be

8 paid into the State Police Services Fund.

9 (d) The Board may in its discretion refuse an occupational

10 license to any person: (1) who is unqualified to perform the

11 duties required of such applicant; (2) who fails to disclose or

12 states falsely any information called for in the application;

13 (3) who has been found guilty of a violation of this Act or

14 whose prior gambling related license or application therefor

15 has been suspended, restricted, revoked or denied for just

16 cause in any other state; or (4) for any other just cause.

17 (e) The Board may suspend, revoke or restrict any

18 occupational licensee: (1) for violation of any provision of

19 this Act; (2) for violation of any of the rules and regulations

20 of the Board; (3) for any cause which, if known to the Board,

21 would have disqualified the applicant from receiving such

22 license; or (4) for default in the payment of any obligation or

23 debt due to the State of Illinois; or (5) for any other just

24 cause.

25 (f) A person who knowingly makes a false statement on an

26 application is guilty of a Class A misdemeanor.

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1 (g) Any license issued pursuant to this Section shall be

2 valid for a period of one year from the date of issuance.

3 (h) Nothing in this Act shall be interpreted to prohibit a

4 licensed owneror electronic gaming licensee from entering into

5 an agreement with a public community college or a school

6 approved under the Private Business and Vocational Schools Act

7 of 2012 for the training of any occupational licensee. Any

8 training offered by such a school shall be in accordance with a

9 written agreement between the licensed owner or electronic

10 gaming licensee and the school.

11 (i) Any training provided for occupational licensees may be

12 conducted eitherat the site of the gambling facility ~~on the~~

13 ~~riverboat~~ or at a school with which a licensed owner or

14 electronic gaming licenseehas entered into an agreement

15 pursuant to subsection (h).

16 (Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;

17 97-1150, eff. 1-25-13.)

18 (230 ILCS 10/11) (from Ch. 120, par. 2411)

19 Sec. 11. Conduct of gambling. Gambling may be conducted by

20 licensed owners or licensed managers on behalf of the State

21 aboard riverboats or in a casino. Gambling may be conducted by

22 electronic gaming licensees at electronic gaming facilities.

23 Gambling authorized under this Section is ~~,~~subject to the

24 following standards:

25 (1) A licensee may conduct riverboat gambling

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1 authorized under this Act regardless of whether it conducts

2 excursion cruises. A licensee may permit the continuous

3 ingress and egress of patrons ~~passengers~~ on a riverboat not

4 used for excursion cruises for the purpose of gambling.

5 Excursion cruises shall not exceed 4 hours for a round

6 trip. However, the Board may grant express approval for an

7 extended cruise on a case-by-case basis.

8 (2) (Blank).

9 (3) Minimum and maximum wagers on games shall be set by

10 the licensee.

11 (4) Agents of the Board and the Department of State

12 Police may board and inspect any riverboat, enter and

13 inspect any portion of a casino, or enter and inspect any

14 portion of an electronic gaming facility at any time for

15 the purpose of determining whether this Act is being

16 complied with. Every riverboat, if under way and being

17 hailed by a law enforcement officer or agent of the Board,

18 must stop immediately and lay to.

19 (5) Employees of the Board shall have the right to be

20 present on the riverboator in the casino or on adjacent

21 facilities under the control of the licensee and at the

22 electronic gaming facility under the control of the

23 electronic gaming licensee.

24 (6) Gambling equipment and supplies customarily used

25 in conducting riverboator casino gambling or electronic

26 gaming must be purchased or leased only from suppliers

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1 licensed for such purpose under this Act. The Board may

2 approve the transfer, sale, or lease of gambling equipment

3 and supplies by a licensed owner from or to an affiliate of

4 the licensed owner as long as the gambling equipment and

5 supplies were initially acquired from a supplier licensed

6 in Illinois.

7 (7) Persons licensed under this Act shall permit no

8 form of wagering on gambling games except as permitted by

9 this Act.

10 (8) Wagers may be received only from a person present

11 on a licensed riverboat, in a casino, or at an electronic

12 gaming facility. No person present on a licensed riverboat,

13 in a casino, or at an electronic gaming facility shall

14 place or attempt to place a wager on behalf of another

15 person who is not present on the riverboat, in a casino, or

16 at the electronic gaming facility.

17 (9) Wagering, including electronic gaming, shall not

18 be conducted with money or other negotiable currency.

19 (10) A person under age 21 shall not be permitted on an

20 area of a riverboator casino where gambling is being

21 conducted or at an electronic gaming facility where

22 gambling is being conducted, except for a person at least

23 18 years of age who is an employee of the riverboat or

24 casino gambling operation or electronic gaming operation.

25 No employee under age 21 shall perform any function

26 involved in gambling by the patrons. No person under age 21

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1 shall be permitted to make a wager under this Act, and any

2 winnings that are a result of a wager by a person under age

3 21, whether or not paid by a licensee, shall be treated as

4 winnings for the privilege tax purposes, confiscated, and

5 forfeited to the State and deposited into the Education

6 Assistance Fund.

7 (11) Gambling excursion cruises are permitted only

8 when the waterway for which the riverboat is licensed is

9 navigable, as determined by the Board in consultation with

10 the U.S. Army Corps of Engineers. This paragraph (11) does

11 not limit the ability of a licensee to conduct gambling

12 authorized under this Act when gambling excursion cruises

13 are not permitted.

14 (12) All tokens, chips or electronic cards used to make

15 wagers must be purchased(i) from a licensed owner or

16 manager, in the case of a riverboat, either aboard a

17 riverboat or at an onshore facility which has been approved

18 by the Board and which is located where the riverboat

19 docks, (ii) in the case of a casino, from a licensed owner

20 or licensed manager at the casino, or (iii) from an

21 electronic gaming licensee at the electronic gaming

22 facility. The tokens, chips or electronic cards may be

23 purchased by means of an agreement under which the owner or

24 manager extends credit to the patron. Such tokens, chips or

25 electronic cards may be used while aboard the riverboat, in

26 the casino, or at the electronic gaming facility only for

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1 the purpose of making wagers on gambling games.

2 (13) Notwithstanding any other Section of this Act, in

3 addition to the other licenses authorized under this Act,

4 the Board may issue special event licenses allowing persons

5 who are not otherwise licensed to conduct riverboat

6 gambling to conduct such gambling on a specified date or

7 series of dates. Riverboat gambling under such a license

8 may take place on a riverboat not normally used for

9 riverboat gambling. The Board shall establish standards,

10 fees and fines for, and limitations upon, such licenses,

11 which may differ from the standards, fees, fines and

12 limitations otherwise applicable under this Act. All such

13 fees shall be deposited into the State Gaming Fund. All

14 such fines shall be deposited into the Education Assistance

15 Fund, created by Public Act 86-0018, of the State of

16 Illinois.

17 (14) In addition to the above, gambling must be

18 conducted in accordance with all rules adopted by the

19 Board.

20 (Source: P.A. 96-1392, eff. 1-1-11.)

21 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)

22 Sec. 11.1. Collection of amounts owing under credit

23 agreements. Notwithstanding any applicable statutory provision

24 to the contrary, a licensed owner, licensed ~~or~~ manager, or

25 electronic gaming licensee who extends credit to a ~~riverboat~~

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1 gambling patron or an electronic gaming patronpursuant to

2 Section 11 (a) (12) of this Act is expressly authorized to

3 institute a cause of action to collect any amounts due and

4 owing under the extension of credit, as well as thelicensed

5 owner's, licensed ~~or~~ manager's, or electronic gaming

6 licensee'scosts, expenses and reasonable attorney's fees

7 incurred in collection.

8 (Source: P.A. 93-28, eff. 6-20-03.)

9 (230 ILCS 10/12) (from Ch. 120, par. 2412)

10 Sec. 12. Admission tax; fees.

11 (a) A tax is hereby imposed upon admissions to riverboat

12 and casino gambling facilities ~~riverboats~~operated by licensed

13 owners authorized pursuant to Section 7 of this Act. Until July

14 1, 2002, the rate is $2 per person admitted. From July 1, 2002

15 until July 1, 2003, the rate is $3 per person admitted. From

16 July 1, 2003 until August 23, 2005 (the effective date of

17 Public Act 94-673), for a licensee that admitted 1,000,000

18 persons or fewer in the previous calendar year, the rate is $3

19 per person admitted; for a licensee that admitted more than

20 1,000,000 but no more than 2,300,000 persons in the previous

21 calendar year, the rate is $4 per person admitted; and for a

22 licensee that admitted more than 2,300,000 persons in the

23 previous calendar year, the rate is $5 per person admitted.

24 Beginning on August 23, 2005 (the effective date of Public Act

25 94-673), for a licensee that admitted 1,000,000 persons or

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1 fewer in calendar year 2004, the rate is $2 per person

2 admitted, and for all other licensees, including licensees that

3 were not conducting gambling operations in 2004, the rate is $3

4 per person admitted. This admission tax is imposed upon the

5 licensed owner conducting gambling.

6 (1) The admission tax shall be paid for each admission,

7 except that a person who exits a riverboat gambling

8 facility and reenters that riverboat gambling facility

9 within the same gaming day shall be subject only to the

10 initial admission tax.

11 (2) (Blank).

12 (3) The riverboat licensee may issue tax-free passes to

13 actual and necessary officials and employees of the

14 licensee or other persons actually working on the

15 riverboat.

16 (4) The number and issuance of tax-free passes is

17 subject to the rules of the Board, and a list of all

18 persons to whom the tax-free passes are issued shall be

19 filed with the Board.

20 (a-5) A fee is hereby imposed upon admissions to gambling

21 operationsoperated by licensed managers on behalf of the State

22 pursuant to Section 7.3 at the rates provided in this

23 subsection (a-5). For a licensee that admitted 1,000,000

24 persons or fewer in the previous calendar year, the rate is $3

25 per person admitted; for a licensee that admitted more than

26 1,000,000 but no more than 2,300,000 persons in the previous

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1 calendar year, the rate is $4 per person admitted; and for a

2 licensee that admitted more than 2,300,000 persons in the

3 previous calendar year, the rate is $5 per person admitted.

4 (1) The admission fee shall be paid for each admission.

5 (2) (Blank).

6 (3) The licensed manager may issue fee-free passes to

7 actual and necessary officials and employees of the manager

8 or other persons actually working on the riverboat.

9 (4) The number and issuance of fee-free passes is

10 subject to the rules of the Board, and a list of all

11 persons to whom the fee-free passes are issued shall be

12 filed with the Board.

13 (a-10) No fee shall be imposed upon admissions to the

14 gambling operation operated by a licensed manager on behalf of

15 the State pursuant to Section 7.3a.

16 (b) Except as otherwise provided in subsection (b-1), from

17 ~~From~~ the tax imposed under subsection (a) and the fee imposed

18 under subsection (a-5), a municipality shall receive from the

19 State $1 for each person embarking on a riverboat docked within

20 the municipality or entering a casino located within the

21 municipality, and a county shall receive $1 for each person

22 entering a casino orembarking on a riverboat docked within the

23 county but outside the boundaries of any municipality. The

24 municipality's or county's share shall be collected by the

25 Board on behalf of the State and remitted quarterly by the

26 State, subject to appropriation, to the treasurer of the unit

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1 of local government for deposit in the general fund. The moneys

2 remitted to units of local government under this subsection (b)

3 for riverboats and casinos authorized under subsection (e-5) of

4 Section 7, other than the riverboat or casino authorized under

5 paragraph (4) of subsection (e-5) of Section 7, shall be used

6 for capital expenditures or public pension payments, or both.

7 (b-1) From the tax imposed under subsection (a) and the fee

8 imposed under subsection (a-5) on admissions to a riverboat or

9 casino gambling facility authorized under paragraph (4) of

10 subsection (e-5) of Section 7, $1 shall be distributed as

11 provided in subsection (b-1) of Section 13.

12 (c) The licensed owner shall pay the entire admission tax

13 to the Board and the licensed manager shall pay the entire

14 admission fee to the Board. Such payments shall be made daily.

15 Accompanying each payment shall be a return on forms provided

16 by the Board which shall include other information regarding

17 admissions as the Board may require. Failure to submit either

18 the payment or the return within the specified time may result

19 in suspension or revocation of the owners or managers license.

20 (c-1) After payments required under subsection (b) have

21 been made, all remaining amounts collected under this Section

22 for riverboats and casinos authorized under subsection (e-5) of

23 Section 7, other than the riverboat or casino authorized under

24 paragraph (4) of subsection (e-5) of Section 7, shall be

25 divided equally and transferred into the Education Assistance

26 Fund and the Capital Projects Fund.

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1 (c-5) A tax is imposed on admissions to electronic gaming

2 facilities at the rate of $3 per person admitted by an

3 electronic gaming licensee. The tax is imposed upon the

4 electronic gaming licensee.

5 (1) The admission tax shall be paid for each admission,

6 except that a person who exits an electronic gaming

7 facility and reenters that electronic gaming facility

8 within the same gaming day, as the term "gaming day" is

9 defined by the Board by rule, shall be subject only to the

10 initial admission tax. The Board shall establish, by rule,

11 a procedure to determine whether a person admitted to an

12 electronic gaming facility has paid the admission tax.

13 (2) An electronic gaming licensee may issue tax-free

14 passes to actual and necessary officials and employees of

15 the licensee and other persons associated with electronic

16 gaming operations.

17 (3) The number and issuance of tax-free passes is

18 subject to the rules of the Board, and a list of all

19 persons to whom the tax-free passes are issued shall be

20 filed with the Board.

21 (4) The electronic gaming licensee shall pay the entire

22 admission tax to the Board.

23 Such payments shall be made daily. Accompanying each

24 payment shall be a return on forms provided by the Board, which

25 shall include other information regarding admission as the

26 Board may require. Failure to submit either the payment or the

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1 return within the specified time may result in suspension or

2 revocation of the electronic gaming license.

3 From the tax imposed under this subsection (c-5), a

4 municipality in which an electronic gaming facility is located,

5 or if the electronic gaming facility is not located within a

6 municipality, then the county in which the electronic gaming

7 facility is located, shall receive from the State $1 for each

8 person who enters the electronic gaming facility. The

9 municipality's or county's share shall be collected by the

10 Board on behalf of the State and remitted quarterly by the

11 State, subject to appropriation, to the unit of local

12 government and shall be used for capital expenditures or public

13 pension payments, or both.

14 After payments required under this subsection (c-5) have

15 been made, all remaining amounts shall be divided equally and

16 transferred into the Education Assistance Fund and the Capital

17 Projects Fund.

18 (d) The Board shall administer and collect the admission

19 tax imposed by this Section, to the extent practicable, in a

20 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

21 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the

22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

23 Penalty and Interest Act.

24 (Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)

25 (230 ILCS 10/13) (from Ch. 120, par. 2413)

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1 Sec. 13. Wagering tax; rate; distribution.

2 (a) Until January 1, 1998, a tax is imposed on the adjusted

3 gross receipts received from gambling games authorized under

4 this Act at the rate of 20%.

5 (a-1) From January 1, 1998 until July 1, 2002, a privilege

6 tax is imposed on persons engaged in the business of conducting

7 riverboat gambling operations, based on the adjusted gross

8 receipts received by a licensed owner from gambling games

9 authorized under this Act at the following rates:

10 15% of annual adjusted gross receipts up to and

11 including $25,000,000;

12 20% of annual adjusted gross receipts in excess of

13 $25,000,000 but not exceeding $50,000,000;

14 25% of annual adjusted gross receipts in excess of

15 $50,000,000 but not exceeding $75,000,000;

16 30% of annual adjusted gross receipts in excess of

17 $75,000,000 but not exceeding $100,000,000;

18 35% of annual adjusted gross receipts in excess of

19 $100,000,000.

20 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

21 is imposed on persons engaged in the business of conducting

22 riverboat gambling operations, other than licensed managers

23 conducting riverboat gambling operations on behalf of the

24 State, based on the adjusted gross receipts received by a

25 licensed owner from gambling games authorized under this Act at

26 the following rates:

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1 15% of annual adjusted gross receipts up to and

2 including $25,000,000;

3 22.5% of annual adjusted gross receipts in excess of

4 $25,000,000 but not exceeding $50,000,000;

5 27.5% of annual adjusted gross receipts in excess of

6 $50,000,000 but not exceeding $75,000,000;

7 32.5% of annual adjusted gross receipts in excess of

8 $75,000,000 but not exceeding $100,000,000;

9 37.5% of annual adjusted gross receipts in excess of

10 $100,000,000 but not exceeding $150,000,000;

11 45% of annual adjusted gross receipts in excess of

12 $150,000,000 but not exceeding $200,000,000;

13 50% of annual adjusted gross receipts in excess of

14 $200,000,000.

15 (a-3) Beginning July 1, 2003, a privilege tax is imposed on

16 persons engaged in the business of conducting riverboat

17 gambling operations, other than licensed managers conducting

18 riverboat gambling operations on behalf of the State, based on

19 the adjusted gross receipts received by a licensed owner from

20 gambling games authorized under this Act at the following

21 rates:

22 15% of annual adjusted gross receipts up to and

23 including $25,000,000;

24 27.5% of annual adjusted gross receipts in excess of

25 $25,000,000 but not exceeding $37,500,000;

26 32.5% of annual adjusted gross receipts in excess of

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1 $37,500,000 but not exceeding $50,000,000;

2 37.5% of annual adjusted gross receipts in excess of

3 $50,000,000 but not exceeding $75,000,000;

4 45% of annual adjusted gross receipts in excess of

5 $75,000,000 but not exceeding $100,000,000;

6 50% of annual adjusted gross receipts in excess of

7 $100,000,000 but not exceeding $250,000,000;

8 70% of annual adjusted gross receipts in excess of

9 $250,000,000.

10 An amount equal to the amount of wagering taxes collected

11 under this subsection (a-3) that are in addition to the amount

12 of wagering taxes that would have been collected if the

13 wagering tax rates under subsection (a-2) were in effect shall

14 be paid into the Common School Fund.

15 The privilege tax imposed under this subsection (a-3) shall

16 no longer be imposed beginning on the earlier of (i) July 1,

17 2005; (ii) the first date after June 20, 2003 that riverboat

18 gambling operations are conducted pursuant to a dormant

19 license; or (iii) the first day that riverboat gambling

20 operations are conducted under the authority of an owners

21 license that is in addition to the 10 owners licenses initially

22 authorized under this Act. For the purposes of this subsection

23 (a-3), the term "dormant license" means an owners license that

24 is authorized by this Act under which no riverboat gambling

25 operations are being conducted on June 20, 2003.

26 (a-4) Beginning on the first day on which the tax imposed

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1 under subsection (a-3) is no longer imposed, a privilege tax is

2 imposed on persons engaged in the business of conducting

3 riverboat or casino gambling operations or electronic gaming,

4 other than licensed managers conducting riverboat gambling

5 operations on behalf of the State, based on the adjusted gross

6 receipts received by a licensed owner from gambling games

7 authorized under this Act at the following rates:

8 15% of annual adjusted gross receipts up to and

9 including $25,000,000;

10 22.5% of annual adjusted gross receipts in excess of

11 $25,000,000 but not exceeding $50,000,000;

12 27.5% of annual adjusted gross receipts in excess of

13 $50,000,000 but not exceeding $75,000,000;

14 32.5% of annual adjusted gross receipts in excess of

15 $75,000,000 but not exceeding $100,000,000;

16 37.5% of annual adjusted gross receipts in excess of

17 $100,000,000 but not exceeding $150,000,000;

18 45% of annual adjusted gross receipts in excess of

19 $150,000,000 but not exceeding $200,000,000;

20 50% of annual adjusted gross receipts in excess of

21 $200,000,000.

22 For the imposition of the privilege tax in this subsection

23 (a-4), amounts paid pursuant to item (1) of subsection (b) of

24 Section 56 of the Illinois Horse Racing Act of 1975 shall not

25 be included in the determination of adjusted gross receipts.

26 (a-8) Riverboat gambling operations conducted by a

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1 licensed manager on behalf of the State are not subject to the

2 tax imposed under this Section.

3 (a-10) The taxes imposed by this Section shall be paid by

4 the licensed owneror the electronic gaming licensee to the

5 Board not later than 5:00 o'clock p.m. of the day after the day

6 when the wagers were made.

7 (a-15) If the privilege tax imposed under subsection (a-3)

8 is no longer imposed pursuant to item (i) of the last paragraph

9 of subsection (a-3), then by June 15 of each year, each owners

10 licensee, other than an owners licensee that admitted 1,000,000

11 persons or fewer in calendar year 2004, must, in addition to

12 the payment of all amounts otherwise due under this Section,

13 pay to the Board a reconciliation payment in the amount, if

14 any, by which the licensed owner's base amount exceeds the

15 amount of net privilege tax paid by the licensed owner to the

16 Board in the then current State fiscal year. A licensed owner's

17 net privilege tax obligation due for the balance of the State

18 fiscal year shall be reduced up to the total of the amount paid

19 by the licensed owner in its June 15 reconciliation payment.

20 The obligation imposed by this subsection (a-15) is binding on

21 any person, firm, corporation, or other entity that acquires an

22 ownership interest in any such owners license. The obligation

23 imposed under this subsection (a-15) terminates on the earliest

24 of: (i) July 1, 2007, (ii) the first day after the effective

25 date of this amendatory Act of the 94th General Assembly that

26 riverboat gambling operations are conducted pursuant to a

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1 dormant license, (iii) the first day that riverboat gambling

2 operations are conducted under the authority of an owners

3 license that is in addition to the 10 owners licenses initially

4 authorized under this Act, or (iv) the first day that a

5 licensee under the Illinois Horse Racing Act of 1975 conducts

6 gaming operations with slot machines or other electronic gaming

7 devices. The Board must reduce the obligation imposed under

8 this subsection (a-15) by an amount the Board deems reasonable

9 for any of the following reasons: (A) an act or acts of God,

10 (B) an act of bioterrorism or terrorism or a bioterrorism or

11 terrorism threat that was investigated by a law enforcement

12 agency, or (C) a condition beyond the control of the owners

13 licensee that does not result from any act or omission by the

14 owners licensee or any of its agents and that poses a hazardous

15 threat to the health and safety of patrons. If an owners

16 licensee pays an amount in excess of its liability under this

17 Section, the Board shall apply the overpayment to future

18 payments required under this Section.

19 For purposes of this subsection (a-15):

20 "Act of God" means an incident caused by the operation of

21 an extraordinary force that cannot be foreseen, that cannot be

22 avoided by the exercise of due care, and for which no person

23 can be held liable.

24 "Base amount" means the following:

25 For a riverboat in Alton, $31,000,000.

26 For a riverboat in East Peoria, $43,000,000.

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1 For the Empress riverboat in Joliet, $86,000,000.

2 For a riverboat in Metropolis, $45,000,000.

3 For the Harrah's riverboat in Joliet, $114,000,000.

4 For a riverboat in Aurora, $86,000,000.

5 For a riverboat in East St. Louis, $48,500,000.

6 For a riverboat in Elgin, $198,000,000.

7 "Dormant license" has the meaning ascribed to it in

8 subsection (a-3).

9 "Net privilege tax" means all privilege taxes paid by a

10 licensed owner to the Board under this Section, less all

11 payments made from the State Gaming Fund pursuant to subsection

12 (b) of this Section.

13 The changes made to this subsection (a-15) by Public Act

14 94-839 are intended to restate and clarify the intent of Public

15 Act 94-673 with respect to the amount of the payments required

16 to be made under this subsection by an owners licensee to the

17 Board.

18 (b) Until January 1, 1998, 25% of the tax revenue deposited

19 in the State Gaming Fund under this Section shall be paid,

20 subject to appropriation by the General Assembly, to the unit

21 of local government which is designated as the home dock of the

22 riverboat. Except as otherwise provided in this subsection (b),

23 beginning ~~Beginning~~January 1, 1998, from the tax revenue

24 deposited in the State Gaming Fund under this Section, an

25 amount equal to 5% of adjusted gross receipts generated by a

26 riverboat or a casino licensed under Section 7 of this Act or

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1 by an electronic gaming facilityshall be paid monthly, subject

2 to appropriation by the General Assembly, to the unit of local

3 government in which the electronic gaming facility or casino is

4 located orthat is designated as the home dock of the

5 riverboat. The moneys paid to units of local government under

6 this subsection (b) for electronic gaming facilities and

7 riverboats and casinos authorized under subsection (e-5) of

8 Section 7, other than the riverboat or casino authorized under

9 paragraph (4) of subsection (e-5) of Section 7, shall be used

10 for capital expenditures or public pension payments, or both.

11 From the tax revenue deposited in the State Gaming Fund

12 under this Section, an amount equal to 5% of adjusted gross

13 receipts from riverboat or casino gambling operations

14 authorized by paragraph (4) of subsection (e-5) of Section 7

15 shall be distributed as provided in subsection (b-1) of this

16 Section.

17 From the tax revenue deposited in the State Gaming Fund

18 pursuant to riverboat or casinogambling operations conducted

19 by a licensed manager on behalf of the State pursuant to

20 Section 7.3 of this Act, an amount equal to 5% of adjusted

21 gross receipts generated pursuant to those riverboat or casino

22 gambling operations shall be paid monthly, subject to

23 appropriation by the General Assembly, to the unit of local

24 government that is designated as the home dock of the riverboat

25 upon which those riverboat gambling operations are conductedor

26 in which the casino is located.

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1 (b-1) The moneys held in the State Gaming Fund pursuant to

2 this subsection (b) of this Section and subsection (b-1) of

3 Section 12 from riverboat or casino gambling operations

4 authorized by paragraph (4) of subsection (e-5) of Section 7,

5 shall be paid monthly, subject to appropriation by the General

6 Assembly, as follows: (i) 20% shall be paid to the municipality

7 in which the riverboat is docked or the casino is located and

8 (ii) 80% shall be divided equally among the following

9 communities: Village of Beecher, City of Blue Island, Village

10 of Burnham, Calumet City, Village of Calumet Park, City of

11 Chicago Heights, City of County Club Hills, Village of Dixmoor,

12 Village of Dolton, Village of East Hazel Crest, Village of

13 Flossmoor, Village of Ford Heights, Village of Glenwood, City

14 of Harvey, Village of Hazel Crest, Village of Homewood, Village

15 of Lansing, Village of Lynwood, City of Markham, Village of

16 Matteson, Village of Midlothian, City of Oak Forest, Village of

17 Olympia Fields, Village of Orland Hills, Village of Orland

18 Park, City of Palos Heights, Village of Park Forest, Village of

19 Phoenix, Village of Posen, Village of Richton Park, Village of

20 Riverdale, Village of Robbins, Village of Sauk Village, Village

21 of South Chicago Heights, Village of South Holland, Village of

22 Steger, Village of Thornton, Village of Tinley Park; however,

23 if a community listed in item (ii) is the municipality in which

24 the riverboat is docked or the casino is located, then that

25 municipality shall not receive moneys under item (ii).

26 (b-5) Beginning on the effective date of this amendatory

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1 Act of the 99th General Assembly, from the tax revenue

2 deposited in the State Gaming Fund under this Section,

3 $5,000,000 shall be paid annually, subject to appropriation, to

4 the Department of Human Services for the administration of

5 programs to treat problem gambling.

6 (c) Appropriations, as approved by the General Assembly,

7 may be made from the State Gaming Fund to the Board (i) for the

8 administration and enforcement of this Act and the Video Gaming

9 Act, (ii) for distribution to the Department of State Police

10 and to the Department of Revenue for the enforcement of this

11 Act and the Video Gaming Act, and (iii) to the Department of

12 Human Services for the administration of programs to treat

13 problem gambling. The Board's annual appropriations request

14 must separately state its funding needs for the regulation of

15 electronic gaming, riverboat gaming, casino gaming within the

16 City of Chicago, and video gaming. From the tax revenue

17 deposited in the Gaming Facilities Fee Revenue Fund, the first

18 $50,000,000 shall be paid to the Board, subject to

19 appropriation, for the administration and enforcement of the

20 provisions of this amendatory Act of the 99th General Assembly.

21 (c-3) Appropriations, as approved by the General Assembly,

22 may be made from the tax revenue deposited into the State

23 Gaming Fund from electronic gaming pursuant to this Section for

24 the administration and enforcement of this Act.

25 (c-4) After payments required under subsections (b), (c),

26 and (c-3) have been made from the tax revenue from electronic

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1 gaming facilities and riverboats and casinos authorized under

2 subsection (e-5) of Section 7, other than the riverboat or

3 casino authorized under paragraph (4) of subsection (e-5) of

4 Section 7, deposited into the State Gaming Fund under this

5 Section, all remaining amounts from electronic gaming

6 facilities and riverboats and casinos authorized under

7 subsection (e-5) of Section 7, other than the riverboat or

8 casino authorized under paragraph (4) of subsection (e-5) of

9 Section 7, shall be divided equally and transferred into the

10 Education Assistance Fund and the Capital Projects Fund.

11 (c-5) Before May 26, 2006 (the effective date of Public Act

12 94-804) and beginning on the effective date of this amendatory

13 Act of the 95th General Assembly, unless any organization

14 licensee under the Illinois Horse Racing Act of 1975 begins to

15 operate a slot machine or video game of chance under the

16 Illinois Horse Racing Act of 1975 or this Act, after the

17 payments required under subsections (b) and (c) have been made,

18 an amount equal to 15% of the adjusted gross receipts of (1) an

19 owners licensee that relocates pursuant to Section 11.2, (2) an

20 owners licensee conducting riverboat gambling operations

21 pursuant to an owners license that is initially issued after

22 June 25, 1999, or (3) the first riverboat gambling operations

23 conducted by a licensed manager on behalf of the State under

24 Section 7.3, whichever comes first, shall be paid from the

25 State Gaming Fund into the Horse Racing Equity Fund.

26 (c-10) Each year the General Assembly shall appropriate

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1 from the General Revenue Fund to the Education Assistance Fund

2 an amount equal to the amount paid into the Horse Racing Equity

3 Fund pursuant to subsection (c-5) in the prior calendar year.

4 (c-15) After the payments required under subsections (b),

5 (c), and (c-5) have been made, an amount equal to 2% of the

6 adjusted gross receipts of (1) an owners licensee that

7 relocates pursuant to Section 11.2, (2) an owners licensee

8 conducting riverboat gambling operations pursuant to an owners

9 license that is initially issued after June 25, 1999, or (3)

10 the first riverboat gambling operations conducted by a licensed

11 manager on behalf of the State under Section 7.3, whichever

12 comes first, shall be paid, subject to appropriation from the

13 General Assembly, from the State Gaming Fund to each home rule

14 county with a population of over 3,000,000 inhabitants for the

15 purpose of enhancing the county's criminal justice system.

16 (c-20) Each year the General Assembly shall appropriate

17 from the General Revenue Fund to the Education Assistance Fund

18 an amount equal to the amount paid to each home rule county

19 with a population of over 3,000,000 inhabitants pursuant to

20 subsection (c-15) in the prior calendar year.

21 (c-25) On July 1, 2013 and each July 1 thereafter,

22 $1,600,000 shall be transferred from the State Gaming Fund to

23 the Chicago State University Education Improvement Fund.

24 (c-30) On July 1, 2013 or as soon as possible thereafter,

25 $92,000,000 shall be transferred from the State Gaming Fund to

26 the School Infrastructure Fund and $23,000,000 shall be

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1 transferred from the State Gaming Fund to the Horse Racing

2 Equity Fund.

3 (c-35) Beginning on July 1, 2013, in addition to any amount

4 transferred under subsection (c-30) of this Section,

5 $5,530,000 shall be transferred monthly from the State Gaming

6 Fund to the School Infrastructure Fund.

7 (c-40) Revenues from the gambling operation operated by a

8 licensed manager on behalf of the State pursuant to Section

9 7.3a deposited into the State Gaming Fund shall be distributed

10 as follows:

11 (1) reimbursement of any construction costs of the

12 gambling facility, including debt service on any bonds

13 issued for that purpose, shall be made to the Capital

14 Development Board;

15 (2) any amounts due to the licensed manager of the

16 gambling operation shall be paid in accordance with the

17 terms of any agreement made with the managers licensee

18 under Section 7.4 of this Act and during the competitive

19 bidding process under Section 7.5 of this Act; and

20 (3) the remainder of amounts deposited shall be

21 distributed as follows:

22 (A) an amount equal to 50% of the remainder shall

23 be distributed as follows:

24 (i) an amount equal to 2%, at least $8,000,000

25 annually, shall be distributed to Cook County to be

26 used for capital expenditures or public pension

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1 payments, or both; and

2 (ii) the remainder shall be distributed to the

3 City of Chicago to be used for capital

4 expenditures, public pension payments, or

5 education purposes, or any combination thereof; if

6 used for education purposes, moneys must be

7 allocated on a per-student basis;

8 (B) an amount equal to 25% of the remainder shall

9 be appropriated each month to the State Board of

10 Education to be used for grants to school districts by

11 the State Board of Education in amounts determined as

12 follows: the total amount appropriated to the State

13 Board of Education divided by the number of students in

14 the State outside of City of Chicago School District

15 299 and then multiplied by the number of students in

16 the school district, based on average daily attendance

17 in that district; moneys distributed under this item

18 (B) shall be in addition to and not in lieu of other

19 moneys provided to school districts by the State; and

20 (C) an amount equal to 25% of the remainder shall

21 be transferred monthly into the State Construction

22 Account Fund.

23 (d) From time to time, the Board shall transfer the

24 remainder of the funds generated by this Act into the Education

25 Assistance Fund, created by Public Act 86-0018, of the State of

26 Illinois.

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1 (e) Nothing in this Act shall prohibit the unit of local

2 government designated as the home dock of the riverboat from

3 entering into agreements with other units of local government

4 in this State or in other states to share its portion of the

5 tax revenue.

6 (f) To the extent practicable, the Board shall administer

7 and collect the wagering taxes imposed by this Section in a

8 manner consistent with the provisions of Sections 4, 5, 5a, 5b,

9 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the

10 Retailers' Occupation Tax Act and Section 3-7 of the Uniform

11 Penalty and Interest Act.

12 (Source: P.A. 98-18, eff. 6-7-13.)

13 (230 ILCS 10/14) (from Ch. 120, par. 2414)

14 Sec. 14. Licensees - Records - Reports - Supervision.

15 (a) Licensed owners or, in the case of gambling operations

16 operated by licensed managers on behalf of the State, licensed

17 managers and electronic gaming licensees ~~A licensed owner~~ shall

18 keep ~~his~~books and records so as to clearly show the following:

19 (1) The amount received daily from admission fees.

20 (2) The total amount of gross receipts.

21 (3) The total amount of the adjusted gross receipts.

22 (b) Licensed owners or, in the case of gambling operations

23 operated by licensed managers on behalf of the State, licensed

24 managers and electronic gaming licensees ~~The licensed owner~~

25 shall furnish to the Board reports and information as the Board

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1 may require with respect to its activities on forms designed

2 and supplied for such purpose by the Board.

3 (c) The books and records kept by a licensed owner as

4 provided by this Section are public records and the

5 examination, publication, and dissemination of the books and

6 records are governed by the provisions of The Freedom of

7 Information Act.

8 (Source: P.A. 86-1029.)

9 (230 ILCS 10/15) (from Ch. 120, par. 2415)

10 Sec. 15. Audit of Licensee Operations. Annually, the

11 licensed owner, ~~or~~ manager, or electronic gaming licenseeshall

12 transmit to the Board an audit of the financial transactions

13 and condition of the licensee's or manager's total operations.

14 Additionally, within 90 days after the end of each quarter of

15 each fiscal year, the licensed owner, ~~or~~ manager, or electronic

16 gaming licensee shall transmit to the Board a compliance report

17 on engagement procedures determined by the Board. All audits

18 and compliance engagements shall be conducted by certified

19 public accountants selected by the Board. Each certified public

20 accountant must be registered in the State of Illinois under

21 the Illinois Public Accounting Act. The compensation for each

22 certified public accountant shall be paid directly by the

23 licensed owner, ~~or~~ manager, or electronic gaming licensee to

24 the certified public accountant.

25 (Source: P.A. 96-1392, eff. 1-1-11.)

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1 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)

2 Sec. 17.1. Judicial Review.

3 (a) Jurisdiction and venue for the judicial review of a

4 final order of the Board relating to licensed owners,

5 suppliers, electronic gaming licensees, and ~~or~~special event

6 licenses is vested in the Appellate Court of the judicial

7 district in which Sangamon County is located. A petition for

8 judicial review of a final order of the Board must be filed in

9 the Appellate Court, within 35 days from the date that a copy

10 of the decision sought to be reviewed was served upon the party

11 affected by the decision.

12 (b) Judicial review of all other final orders of the Board

13 shall be conducted in accordance with the Administrative Review

14 Law.

15 (Source: P.A. 88-1.)

16 (230 ILCS 10/18) (from Ch. 120, par. 2418)

17 Sec. 18. Prohibited Activities - Penalty.

18 (a) A person is guilty of a Class A misdemeanor for doing

19 any of the following:

20 (1) Conducting gambling where wagering is used or to be

21 used without a license issued by the Board.

22 (2) Conducting gambling where wagering is permitted

23 other than in the manner specified by Section 11.

24 (b) A person is guilty of a Class B misdemeanor for doing

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1 any of the following:

2 (1) permitting a person under 21 years to make a wager;

3 or

4 (2) violating paragraph (12) of subsection (a) of

5 Section 11 of this Act.

6 (c) A person wagering or accepting a wager at any location

7 outside the riverboat, casino, or electronic gaming facility in

8 violation of paragraph ~~is subject to the penalties in~~

9 ~~paragraphs~~(1) or (2) of subsection (a) of Section 28-1 of the

10 Criminal Code of 2012 is subject to the penalties provided in

11 that Section.

12 (d) A person commits a Class 4 felony and, in addition,

13 shall be barred for life fromgambling operations ~~riverboats~~

14 under the jurisdiction of the Board, if the person does any of

15 the following:

16 (1) Offers, promises, or gives anything of value or

17 benefit to a person who is connected with a riverboator

18 casino owner or electronic gaming licensee,including, but

19 not limited to, an officer or employee of a licensed owner,

20 electronic gaming licensee,or holder of an occupational

21 license pursuant to an agreement or arrangement or with the

22 intent that the promise or thing of value or benefit will

23 influence the actions of the person to whom the offer,

24 promise, or gift was made in order to affect or attempt to

25 affect the outcome of a gambling game, or to influence

26 official action of a member of the Board.

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1 (2) Solicits or knowingly accepts or receives a promise

2 of anything of value or benefit while the person is

3 connected with a riverboat, casino, or electronic gaming

4 facility,including, but not limited to, an officer or

5 employee of a licensed owner or electronic gaming licensee,

6 or the holder of an occupational license, pursuant to an

7 understanding or arrangement or with the intent that the

8 promise or thing of value or benefit will influence the

9 actions of the person to affect or attempt to affect the

10 outcome of a gambling game, or to influence official action

11 of a member of the Board.

12 (3) Uses or possesses with the intent to use a device

13 to assist:

14 (i) In projecting the outcome of the game.

15 (ii) In keeping track of the cards played.

16 (iii) In analyzing the probability of the

17 occurrence of an event relating to the gambling game.

18 (iv) In analyzing the strategy for playing or

19 betting to be used in the game except as permitted by

20 the Board.

21 (4) Cheats at a gambling game.

22 (5) Manufactures, sells, or distributes any cards,

23 chips, dice, game or device which is intended to be used to

24 violate any provision of this Act.

25 (6) Alters or misrepresents the outcome of a gambling

26 game on which wagers have been made after the outcome is

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1 made sure but before it is revealed to the players.

2 (7) Places a bet after acquiring knowledge, not

3 available to all players, of the outcome of the gambling

4 game which is subject of the bet or to aid a person in

5 acquiring the knowledge for the purpose of placing a bet

6 contingent on that outcome.

7 (8) Claims, collects, or takes, or attempts to claim,

8 collect, or take, money or anything of value in or from the

9 gambling games, with intent to defraud, without having made

10 a wager contingent on winning a gambling game, or claims,

11 collects, or takes an amount of money or thing of value of

12 greater value than the amount won.

13 (9) Uses counterfeit chips or tokens in a gambling

14 game.

15 (10) Possesses any key or device designed for the

16 purpose of opening, entering, or affecting the operation of

17 a gambling game, drop box, or an electronic or mechanical

18 device connected with the gambling game or for removing

19 coins, tokens, chips or other contents of a gambling game.

20 This paragraph (10) does not apply to a gambling licensee

21 or employee of a gambling licensee acting in furtherance of

22 the employee's employment.

23 (e) The possession of more than one of the devices

24 described in subsection (d), paragraphs (3), (5), or (10)

25 permits a rebuttable presumption that the possessor intended to

26 use the devices for cheating.

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1 (f) A person under the age of 21 who, except as authorized

2 under paragraph (10) of Section 11, enters upon a riverboat or

3 in a casino or electronic gaming facility commits a petty

4 offense and is subject to a fine of not less than $100 or more

5 than $250 for a first offense and of not less than $200 or more

6 than $500 for a second or subsequent offense.

7 An action to prosecute any crime occurring on a riverboat

8 shall be tried in the county of the dock at which the riverboat

9 is based. An action to prosecute any crime occurring in a

10 casino or electronic gaming facility shall be tried in the

11 county in which the casino or electronic gaming facility is

12 located.

13 (Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)

14 (230 ILCS 10/18.1)

15 Sec. 18.1. Distribution of certain fines. If a fine is

16 imposed on an owner licensee or an electronic gaming licensee

17 for knowingly sending marketing or promotional materials to any

18 person placed on the self-exclusion list, then the Board shall

19 distribute an amount equal to 15% of the fine imposed to the

20 unit of local government in which the casino, riverboat, or

21 electronic gaming facility is located for the purpose of

22 awarding grants to non-profit entities that assist gambling

23 addicts.

24 (Source: P.A. 96-224, eff. 8-11-09.)

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1 (230 ILCS 10/18.2 new)

2 Sec. 18.2. Prohibition on political contributions from

3 certain licensees and applicants.

4 (a) The General Assembly has a compelling interest in

5 protecting the integrity of both the electoral process and the

6 legislative process by preventing corruption and the

7 appearance of corruption which may arise through permitting

8 certain political campaign contributions by certain persons

9 involved in the gaming industry and regulated by the State.

10 Unlike most other regulated industries, gaming is especially

11 susceptible to corruption and potential criminal influence.

12 In Illinois, only licensed gaming activities are legal and

13 all other gaming activities are strictly prohibited. Given

14 these circumstances, it is imperative to eliminate any

15 potential corrupt influence in the gaming industry and the

16 electoral process. Banning political campaign contributions by

17 certain persons subject to this Section to State officeholders

18 and candidates for such offices and to county and municipal

19 officeholders and candidates for such offices in counties and

20 municipalities that receive financial benefits from gaming

21 activities is necessary to prevent corruption and the

22 appearance of corruption that may arise when political campaign

23 contributions and gaming that is regulated by the State and

24 that confers benefits on counties and municipalities are

25 intermingled.

26 The General Assembly has prohibited political campaign

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1 contributions to certain State and local officeholders and

2 candidates for such offices by certain persons with State of

3 Illinois and Metropolitan Pier and Exposition Authority

4 contracts and pending bids or proposals for contracts of over

5 $50,000 and certain individuals and entities affiliated with

6 such persons. Certain gaming licensees will receive receipts

7 far in excess of the base level of contract amounts subject to

8 such other campaign contribution prohibitions.

9 (b) As used in this Section:

10 "Affiliated entity" means (i) any corporate parent and each

11 operating subsidiary of the business entity applying for or

12 holding a license, (ii) each operating subsidiary of the

13 corporate parent of the business entity applying for or holding

14 a license, (iii) any organization recognized by the United

15 States Internal Revenue Service as a tax-exempt organization

16 described in Section 501(c) of the Internal Revenue Code of

17 1986 (or any successor provision of federal tax law)

18 established by one or more business entities seeking or holding

19 a license, any affiliated entity of such business entity, or

20 any affiliated person of such business entity, and (iv) any

21 political committee for which the business entity applying for

22 or holding a license, or any 501(c) organization described in

23 item (iii) related to that business entity, is the sponsoring

24 entity, as defined in Section 9-3 of the Election Code. For

25 purposes of item (iv), the funding of all business entities

26 applying for or holding a license shall be aggregated in

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1 determining whether such political committee is an affiliated

2 entity.

3 "Affiliated person" means (i) any person with any ownership

4 interest or distributive share in excess of 1% of any business

5 entity applying for or holding a license, (ii) executive

6 employees of any such business entity, (iii) any person

7 designated as a key person under this Act, and (iv) the spouse

8 of such persons.

9 "Contribution" means a contribution as defined in Section

10 9-1.4 of the Election Code.

11 "Declared candidate" means a person who has filed a

12 statement of candidacy and petition for nomination or election

13 in the principal office of the State Board of Elections, or in

14 the office of the appropriate election authority for any county

15 or municipality in which a casino or electronic gaming device

16 is located or proposed or which receives any gaming revenue.

17 "Executive employee" means any person who is (i) an officer

18 or director or who fulfills duties equivalent to those of an

19 officer or director of a business entity applying for or

20 holding a license and (ii) any employee of such business entity

21 who is required to register under the Lobbyist Registration

22 Act.

23 "License" means any owners license issued pursuant to

24 Section 7 of this Act, electronic gaming license issued

25 pursuant to Section 7.7 of this Act, or managers license issued

26 pursuant to Section 7.4 of this Act.

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1 "Officeholder" means the Governor, Lieutenant Governor,

2 Attorney General, Secretary of State, Comptroller, Treasurer,

3 member of the General Assembly, or any officeholder in any

4 county or municipality in which a riverboat, casino, or

5 electronic gaming device is located or proposed or which

6 receives any gaming revenue.

7 "Business entity" means any entity doing business for

8 profit, whether organized as a corporation, partnership, sole

9 proprietorship, limited liability company, or partnership or

10 otherwise.

11 (c) Any person or business entity applying for or holding a

12 license, any affiliated entities or persons of such business

13 entity, and any entities or persons soliciting a contribution

14 or causing a contribution to be made on behalf of such person

15 or business entity, are prohibited from making any contribution

16 to any officeholder or declared candidate or any political

17 committee affiliated with any officeholder or declared

18 candidate, as defined in Section 9-1.8 of the Election Code.

19 This prohibition shall commence upon filing of an application

20 for a license and shall continue for a period of 2 years after

21 termination, suspension, or revocation of the license.

22 The Board shall have authority to suspend, revoke, or

23 restrict the license and to impose civil penalties of up to

24 $100,000 for each violation of this subsection (c). A notice of

25 each such violation and the penalty imposed shall be published

26 on the Board's website and in the Illinois Register. Payments

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1 received by the State pursuant to this subsection (c) shall be

2 deposited into the General Revenue Fund.

3 Any officeholder or declared candidate or any political

4 committee affiliated with any officeholder or declared

5 candidate that has received a contribution in violation of this

6 subsection (c) shall pay an amount equal to the value of the

7 contribution to the State no more than 30 days after notice of

8 the violation concerning the contribution appears in the

9 Illinois Register. Payments received by the State pursuant to

10 this subsection (c) shall be deposited into the General Revenue

11 Fund.

12 (d) The Board shall post on its website a list of all

13 persons, business entities, and affiliated entities prohibited

14 from making contributions to any officeholder or declared

15 candidate political committee pursuant to subsection (c),

16 which list shall be updated and published on, at a minimum, a

17 semiannual basis.

18 Any person, business entity, or affiliated entity

19 prohibited from making contributions to any officeholder or

20 declared candidate political committee pursuant to subsection

21 (c) shall notify the Board within 7 days after discovering any

22 necessary change or addition to the information relating to

23 that person, business entity, or affiliated entity contained in

24 the list.

25 An individual who acts in good faith and in reliance on any

26 information contained in the list shall not be subject to any

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1 penalties or liability imposed for a violation of this Section.

2 (e) If any provision of this Section is held invalid or its

3 application to any person or circumstance is held invalid, the

4 invalidity of that provision or application does not affect the

5 other provisions or applications of this Section that can be

6 given effect without the invalid application or provision.

7 (230 ILCS 10/19) (from Ch. 120, par. 2419)

8 Sec. 19. Forfeiture of property.

9 (a) Except as provided in subsection (b), any riverboat,

10 casino, or electronic gaming facilityused for the conduct of

11 gambling games in violation of this Act shall be considered a

12 gambling place in violation of Section 28-3 of the Criminal

13 Code of 2012. Every gambling device found on a riverboat, in a

14 casino, or at an electronic gaming facility operating gambling

15 games in violation of this Actand every slot machine and video

16 game of chance found at an electronic gaming facility operating

17 gambling games in violation of this Act shall be subject to

18 seizure, confiscation and destruction as provided in Section

19 28-5 of the Criminal Code of 2012.

20 (b) It is not a violation of this Act for a riverboat or

21 other watercraft which is licensed for gaming by a contiguous

22 state to dock on the shores of this State if the municipality

23 having jurisdiction of the shores, or the county in the case of

24 unincorporated areas, has granted permission for docking and no

25 gaming is conducted on the riverboat or other watercraft while

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1 it is docked on the shores of this State. No gambling device

2 shall be subject to seizure, confiscation or destruction if the

3 gambling device is located on a riverboat or other watercraft

4 which is licensed for gaming by a contiguous state and which is

5 docked on the shores of this State if the municipality having

6 jurisdiction of the shores, or the county in the case of

7 unincorporated areas, has granted permission for docking and no

8 gaming is conducted on the riverboat or other watercraft while

9 it is docked on the shores of this State.

10 (Source: P.A. 97-1150, eff. 1-25-13.)

11 (230 ILCS 10/20) (from Ch. 120, par. 2420)

12 Sec. 20. Prohibited activities - civil penalties. Any

13 person who conducts a gambling operation without first

14 obtaining a license to do so, or who continues to conduct such

15 games after revocation of his license, or any licensee who

16 conducts or allows to be conducted any unauthorized gambling

17 games on a riverboat, in a casino, or at an electronic gaming

18 facilitywhere it is authorized to conduct its~~riverboat~~

19 gambling operation, in addition to other penalties provided,

20 shall be subject to a civil penalty equal to the amount of

21 gross receipts derived from wagering on the gambling games,

22 whether unauthorized or authorized, conducted on that day as

23 well as confiscation and forfeiture of all gambling game

24 equipment used in the conduct of unauthorized gambling games.

25 (Source: P.A. 86-1029.)

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1 (230 ILCS 10/24)

2 Sec. 24. Applicability of this ~~Illinois Riverboat Gambling~~

3 Act. The provisions of the this ~~Illinois Riverboat Gambling~~

4 Act, and all rules promulgated thereunder, shall apply to the

5 Video Gaming Act, except where there is a conflict between the

6 2 Acts.

7 (Source: P.A. 96-37, eff. 7-13-09.)

8 Section 55. The Video Gaming Act is amended by changing

9 Sections 5, 25, 45, 79, and 80 and by adding Section 81 as

10 follows:

11 (230 ILCS 40/5)

12 Sec. 5. Definitions. As used in this Act:

13 "Board" means the Illinois Gaming Board.

14 "Credit" means one, 5, 10, or 25 cents either won or

15 purchased by a player.

16 "Distributor" means an individual, partnership,

17 corporation, or limited liability company licensed under this

18 Act to buy, sell, lease, or distribute video gaming terminals

19 or major components or parts of video gaming terminals to or

20 from terminal operators.

21 "Electronic card" means a card purchased from a licensed

22 establishment, licensed fraternal establishment, licensed

23 veterans establishment, or licensed truck stop establishment

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1 for use in that establishment as a substitute for cash in the

2 conduct of gaming on a video gaming terminal.

3 "Electronic voucher" means a voucher printed by an

4 electronic video game machine that is redeemable in the

5 licensed establishment for which it was issued.

6 "Terminal operator" means an individual, partnership,

7 corporation, or limited liability company that is licensed

8 under this Act and that owns, services, and maintains video

9 gaming terminals for placement in licensed establishments,

10 licensed truck stop establishments, licensed fraternal

11 establishments, or licensed veterans establishments.

12 "Licensed technician" means an individual who is licensed

13 under this Act to repair, service, and maintain video gaming

14 terminals.

15 "Licensed terminal handler" means a person, including but

16 not limited to an employee or independent contractor working

17 for a manufacturer, distributor, supplier, technician, or

18 terminal operator, who is licensed under this Act to possess or

19 control a video gaming terminal or to have access to the inner

20 workings of a video gaming terminal. A licensed terminal

21 handler does not include an individual, partnership,

22 corporation, or limited liability company defined as a

23 manufacturer, distributor, supplier, technician, or terminal

24 operator under this Act.

25 "Manufacturer" means an individual, partnership,

26 corporation, or limited liability company that is licensed

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1 under this Act and that manufactures or assembles video gaming

2 terminals.

3 "Supplier" means an individual, partnership, corporation,

4 or limited liability company that is licensed under this Act to

5 supply major components or parts to video gaming terminals to

6 licensed terminal operators.

7 "Net terminal income" means money put into a video gaming

8 terminal minus credits paid out to players.

9 "Video gaming terminal" means any electronic video game

10 machine that, upon insertion of cash, electronic cards or

11 vouchers, or any combination thereof, is available to play or

12 simulate the play of a video game, including but not limited to

13 video poker, line up, and blackjack, as authorized by the Board

14 utilizing a video display and microprocessors in which the

15 player may receive free games or credits that can be redeemed

16 for cash. The term does not include a machine that directly

17 dispenses coins, cash, or tokens or is for amusement purposes

18 only.

19 "Licensed establishment" means any licensed retail

20 establishment where alcoholic liquor is drawn, poured, mixed,

21 or otherwise served for consumption on the premises, whether

22 the establishment operates on a nonprofit or for-profit basis.

23 "Licensed establishment" includes any such establishment that

24 has a contractual relationship with an inter-track wagering

25 location licensee licensed under the Illinois Horse Racing Act

26 of 1975, provided any contractual relationship shall not

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1 include any transfer or offer of revenue from the operation of

2 video gaming under this Act to any licensee licensed under the

3 Illinois Horse Racing Act of 1975. Provided, however, that the

4 licensed establishment that has such a contractual

5 relationship with an inter-track wagering location licensee

6 may not, itself, be (i) an inter-track wagering location

7 licensee, (ii) the corporate parent or subsidiary of any

8 licensee licensed under the Illinois Horse Racing Act of 1975,

9 or (iii) the corporate subsidiary of a corporation that is also

10 the corporate parent or subsidiary of any licensee licensed

11 under the Illinois Horse Racing Act of 1975. "Licensed

12 establishment" does not include a facility operated by an

13 organization licensee, an inter-track wagering licensee, or an

14 inter-track wagering location licensee licensed under the

15 Illinois Horse Racing Act of 1975 or a riverboat licensed under

16 the Illinois ~~Riverboat~~ Gambling Act, except as provided in this

17 paragraph. The changes made to this definition by Public Act

18 98-587 are declarative of existing law.

19 "Licensed fraternal establishment" means the location

20 where a qualified fraternal organization that derives its

21 charter from a national fraternal organization regularly

22 meets.

23 "Licensed veterans establishment" means the location where

24 a qualified veterans organization that derives its charter from

25 a national veterans organization regularly meets.

26 "Licensed truck stop establishment" means a facility (i)

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1 that is at least a 3-acre facility with a convenience store,

2 (ii) with separate diesel islands for fueling commercial motor

3 vehicles, (iii) that sells at retail more than 10,000 gallons

4 of diesel or biodiesel fuel per month, and (iv) with parking

5 spaces for commercial motor vehicles. "Commercial motor

6 vehicles" has the same meaning as defined in Section 18b-101 of

7 the Illinois Vehicle Code. The requirement of item (iii) of

8 this paragraph may be met by showing that estimated future

9 sales or past sales average at least 10,000 gallons per month.

10 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;

11 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.

12 7-16-14.)

13 (230 ILCS 40/25)

14 Sec. 25. Restriction of licensees.

15 (a) Manufacturer. A person may not be licensed as a

16 manufacturer of a video gaming terminal in Illinois unless the

17 person has a valid manufacturer's license issued under this

18 Act. A manufacturer may only sell video gaming terminals for

19 use in Illinois to persons having a valid distributor's

20 license.

21 (b) Distributor. A person may not sell, distribute, or

22 lease or market a video gaming terminal in Illinois unless the

23 person has a valid distributor's license issued under this Act.

24 A distributor may only sell video gaming terminals for use in

25 Illinois to persons having a valid distributor's or terminal

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1 operator's license.

2 (c) Terminal operator. A person may not own, maintain, or

3 place a video gaming terminal unless he has a valid terminal

4 operator's license issued under this Act. A terminal operator

5 may only place video gaming terminals for use in Illinois in

6 licensed establishments, licensed truck stop establishments,

7 licensed fraternal establishments, and licensed veterans

8 establishments. No terminal operator may give anything of

9 value, including but not limited to a loan or financing

10 arrangement, to a licensed establishment, licensed truck stop

11 establishment, licensed fraternal establishment, or licensed

12 veterans establishment as any incentive or inducement to locate

13 video terminals in that establishment. Of the after-tax profits

14 from a video gaming terminal, 50% shall be paid to the terminal

15 operator and 50% shall be paid to the licensed establishment,

16 licensed truck stop establishment, licensed fraternal

17 establishment, or licensed veterans establishment,

18 notwithstanding any agreement to the contrary. A video terminal

19 operator that violates one or more requirements of this

20 subsection is guilty of a Class 4 felony and is subject to

21 termination of his or her license by the Board.

22 (d) Licensed technician. A person may not service,

23 maintain, or repair a video gaming terminal in this State

24 unless he or she (1) has a valid technician's license issued

25 under this Act, (2) is a terminal operator, or (3) is employed

26 by a terminal operator, distributor, or manufacturer.

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1 (d-5) Licensed terminal handler. No person, including, but

2 not limited to, an employee or independent contractor working

3 for a manufacturer, distributor, supplier, technician, or

4 terminal operator licensed pursuant to this Act, shall have

5 possession or control of a video gaming terminal, or access to

6 the inner workings of a video gaming terminal, unless that

7 person possesses a valid terminal handler's license issued

8 under this Act.

9 (e) Licensed establishment. No video gaming terminal may be

10 placed in any licensed establishment, licensed veterans

11 establishment, licensed truck stop establishment, or licensed

12 fraternal establishment unless the owner or agent of the owner

13 of the licensed establishment, licensed veterans

14 establishment, licensed truck stop establishment, or licensed

15 fraternal establishment has entered into a written use

16 agreement with the terminal operator for placement of the

17 terminals. A copy of the use agreement shall be on file in the

18 terminal operator's place of business and available for

19 inspection by individuals authorized by the Board. A licensed

20 establishment, licensed truck stop establishment, licensed

21 veterans establishment, or licensed fraternal establishment

22 may operate up to 5 video gaming terminals on its premises at

23 any time.

24 (f) (Blank).

25 (g) Financial interest restrictions. As used in this Act,

26 "substantial interest" in a partnership, a corporation, an

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1 organization, an association, a business, or a limited

2 liability company means:

3 (A) When, with respect to a sole proprietorship, an

4 individual or his or her spouse owns, operates, manages, or

5 conducts, directly or indirectly, the organization,

6 association, or business, or any part thereof; or

7 (B) When, with respect to a partnership, the individual

8 or his or her spouse shares in any of the profits, or

9 potential profits, of the partnership activities; or

10 (C) When, with respect to a corporation, an individual

11 or his or her spouse is an officer or director, or the

12 individual or his or her spouse is a holder, directly or

13 beneficially, of 5% or more of any class of stock of the

14 corporation; or

15 (D) When, with respect to an organization not covered

16 in (A), (B) or (C) above, an individual or his or her

17 spouse is an officer or manages the business affairs, or

18 the individual or his or her spouse is the owner of or

19 otherwise controls 10% or more of the assets of the

20 organization; or

21 (E) When an individual or his or her spouse furnishes

22 5% or more of the capital, whether in cash, goods, or

23 services, for the operation of any business, association,

24 or organization during any calendar year; or

25 (F) When, with respect to a limited liability company,

26 an individual or his or her spouse is a member, or the

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1 individual or his or her spouse is a holder, directly or

2 beneficially, of 5% or more of the membership interest of

3 the limited liability company.

4 For purposes of this subsection (g), "individual" includes

5 all individuals or their spouses whose combined interest would

6 qualify as a substantial interest under this subsection (g) and

7 whose activities with respect to an organization, association,

8 or business are so closely aligned or coordinated as to

9 constitute the activities of a single entity.

10 (h) Location restriction. A licensed establishment,

11 licensed truck stop establishment, licensed fraternal

12 establishment, or licensed veterans establishment that is (i)

13 located within 1,000 feet of a facility operated by an

14 organization licensee licensed under the Illinois Horse Racing

15 Act of 1975 or a casino or the home dock of a riverboat

16 licensed under the Illinois ~~Riverboat~~Gambling Act or (ii)

17 located within 100 feet of a school or a place of worship under

18 the Religious Corporation Act, is ineligible to operate a video

19 gaming terminal. The location restrictions in this subsection

20 (h) do not apply if (A) a facility operated by an organization

21 licensee, a school, or a place of worship moves to or is

22 established within the restricted area after a licensed

23 establishment, licensed truck stop establishment, licensed

24 fraternal establishment, or licensed veterans establishment

25 becomes licensed under this Act or (B) a school or place of

26 worship moves to or is established within the restricted area

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1 after a licensed establishment, licensed truck stop

2 establishment, licensed fraternal establishment, or licensed

3 veterans establishment obtains its original liquor license.

4 For the purpose of this subsection, "school" means an

5 elementary or secondary public school, or an elementary or

6 secondary private school registered with or recognized by the

7 State Board of Education.

8 Notwithstanding the provisions of this subsection (h), the

9 Board may waive the requirement that a licensed establishment,

10 licensed truck stop establishment, licensed fraternal

11 establishment, or licensed veterans establishment not be

12 located within 1,000 feet from a facility operated by an

13 organization licensee licensed under the Illinois Horse Racing

14 Act of 1975 or a casino or the home dock of a riverboat

15 licensed under the Illinois ~~Riverboat~~ Gambling Act. The Board

16 shall not grant such waiver if there is any common ownership or

17 control, shared business activity, or contractual arrangement

18 of any type between the establishment and the organization

19 licensee or owners licensee of a riverboat. The Board shall

20 adopt rules to implement the provisions of this paragraph.

21 (i) Undue economic concentration. In addition to

22 considering all other requirements under this Act, in deciding

23 whether to approve the operation of video gaming terminals by a

24 terminal operator in a location, the Board shall consider the

25 impact of any economic concentration of such operation of video

26 gaming terminals. The Board shall not allow a terminal operator

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1 to operate video gaming terminals if the Board determines such

2 operation will result in undue economic concentration. For

3 purposes of this Section, "undue economic concentration" means

4 that a terminal operator would have such actual or potential

5 influence over video gaming terminals in Illinois as to:

6 (1) substantially impede or suppress competition among

7 terminal operators;

8 (2) adversely impact the economic stability of the

9 video gaming industry in Illinois; or

10 (3) negatively impact the purposes of the Video Gaming

11 Act.

12 The Board shall adopt rules concerning undue economic

13 concentration with respect to the operation of video gaming

14 terminals in Illinois. The rules shall include, but not be

15 limited to, (i) limitations on the number of video gaming

16 terminals operated by any terminal operator within a defined

17 geographic radius and (ii) guidelines on the discontinuation of

18 operation of any such video gaming terminals the Board

19 determines will cause undue economic concentration.

20 (j) The provisions of the Illinois Antitrust Act are fully

21 and equally applicable to the activities of any licensee under

22 this Act.

23 (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,

24 eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)

25 (230 ILCS 40/45)

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1 Sec. 45. Issuance of license.

2 (a) The burden is upon each applicant to demonstrate his

3 suitability for licensure. Each video gaming terminal

4 manufacturer, distributor, supplier, operator, handler,

5 licensed establishment, licensed truck stop establishment,

6 licensed fraternal establishment, and licensed veterans

7 establishment shall be licensed by the Board. The Board may

8 issue or deny a license under this Act to any person pursuant

9 to the same criteria set forth in Section 9 of the Illinois

10 ~~Riverboat~~ Gambling Act.

11 (a-5) The Board shall not grant a license to a person who

12 has facilitated, enabled, or participated in the use of

13 coin-operated devices for gambling purposes or who is under the

14 significant influence or control of such a person. For the

15 purposes of this Act, "facilitated, enabled, or participated in

16 the use of coin-operated amusement devices for gambling

17 purposes" means that the person has been convicted of any

18 violation of Article 28 of the Criminal Code of 1961 or the

19 Criminal Code of 2012. If there is pending legal action against

20 a person for any such violation, then the Board shall delay the

21 licensure of that person until the legal action is resolved.

22 (b) Each person seeking and possessing a license as a video

23 gaming terminal manufacturer, distributor, supplier, operator,

24 handler, licensed establishment, licensed truck stop

25 establishment, licensed fraternal establishment, or licensed

26 veterans establishment shall submit to a background

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1 investigation conducted by the Board with the assistance of the

2 State Police or other law enforcement. To the extent that the

3 corporate structure of the applicant allows, the background

4 investigation shall include any or all of the following as the

5 Board deems appropriate or as provided by rule for each

6 category of licensure: (i) each beneficiary of a trust, (ii)

7 each partner of a partnership, (iii) each member of a limited

8 liability company, (iv) each director and officer of a publicly

9 or non-publicly held corporation, (v) each stockholder of a

10 non-publicly held corporation, (vi) each stockholder of 5% or

11 more of a publicly held corporation, or (vii) each stockholder

12 of 5% or more in a parent or subsidiary corporation.

13 (c) Each person seeking and possessing a license as a video

14 gaming terminal manufacturer, distributor, supplier, operator,

15 handler, licensed establishment, licensed truck stop

16 establishment, licensed fraternal establishment, or licensed

17 veterans establishment shall disclose the identity of every

18 person, association, trust, corporation, or limited liability

19 company having a greater than 1% direct or indirect pecuniary

20 interest in the video gaming terminal operation for which the

21 license is sought. If the disclosed entity is a trust, the

22 application shall disclose the names and addresses of the

23 beneficiaries; if a corporation, the names and addresses of all

24 stockholders and directors; if a limited liability company, the

25 names and addresses of all members; or if a partnership, the

26 names and addresses of all partners, both general and limited.

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1 (d) No person may be licensed as a video gaming terminal

2 manufacturer, distributor, supplier, operator, handler,

3 licensed establishment, licensed truck stop establishment,

4 licensed fraternal establishment, or licensed veterans

5 establishment if that person has been found by the Board to:

6 (1) have a background, including a criminal record,

7 reputation, habits, social or business associations, or

8 prior activities that pose a threat to the public interests

9 of the State or to the security and integrity of video

10 gaming;

11 (2) create or enhance the dangers of unsuitable,

12 unfair, or illegal practices, methods, and activities in

13 the conduct of video gaming; or

14 (3) present questionable business practices and

15 financial arrangements incidental to the conduct of video

16 gaming activities.

17 (e) Any applicant for any license under this Act has the

18 burden of proving his or her qualifications to the satisfaction

19 of the Board. The Board may adopt rules to establish additional

20 qualifications and requirements to preserve the integrity and

21 security of video gaming in this State.

22 (f) A non-refundable application fee shall be paid at the

23 time an application for a license is filed with the Board in

24 the following amounts:

25 (1) Manufacturer..........................$5,000

26 (2) Distributor...........................$5,000

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1 (3) Terminal operator.....................$5,000

2 (4) Supplier..............................$2,500

3 (5) Technician..............................$100

4 (6) Terminal Handler..............................$50

5 (g) The Board shall establish an annual fee for each

6 license not to exceed the following:

7 (1) Manufacturer.........................$10,000

8 (2) Distributor..........................$10,000

9 (3) Terminal operator.....................$5,000

10 (4) Supplier..............................$2,000

11 (5) Technician..............................$100

12 (6) Licensed establishment, licensed truck stop

13 establishment, licensed fraternal establishment,

14 or licensed veterans establishment..............$100

15 (7) Video gaming terminal...................$100

16 (8) Terminal Handler..............................$50

17 (h) A terminal operator and a licensed establishment,

18 licensed truck stop establishment, licensed fraternal

19 establishment, or licensed veterans establishment shall

20 equally split the fees specified in item (7) of subsection (g).

21 (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;

22 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)

23 (230 ILCS 40/79)

24 Sec. 79. Investigators. Investigators appointed by the

25 Board pursuant to the powers conferred upon the Board by

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1 paragraph (20.6) of subsection (c) of Section 5 of the Illinois

2 ~~Riverboat~~ Gambling Act and Section 80 of this Act shall have

3 authority to conduct investigations, searches, seizures,

4 arrests, and other duties imposed under this Act and the

5 Illinois ~~Riverboat~~ Gambling Act, as deemed necessary by the

6 Board. These investigators have and may exercise all of the

7 rights and powers of peace officers, provided that these powers

8 shall be (1) limited to offenses or violations occurring or

9 committed in connection with conduct subject to this Act,

10 including, but not limited to, the manufacture, distribution,

11 supply, operation, placement, service, maintenance, or play of

12 video gaming terminals and the distribution of profits and

13 collection of revenues resulting from such play, and (2)

14 exercised, to the fullest extent practicable, in cooperation

15 with the local police department of the applicable municipality

16 or, if these powers are exercised outside the boundaries of an

17 incorporated municipality or within a municipality that does

18 not have its own police department, in cooperation with the

19 police department whose jurisdiction encompasses the

20 applicable locality.

21 (Source: P.A. 97-809, eff. 7-13-12.)

22 (230 ILCS 40/80)

23 Sec. 80. Applicability of Illinois ~~Riverboat~~ Gambling Act.

24 The provisions of the Illinois ~~Riverboat~~ Gambling Act, and all

25 rules promulgated thereunder, shall apply to the Video Gaming

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1 Act, except where there is a conflict between the 2 Acts. In

2 the event of a conflict between the 2 Acts, the provisions of

3 the Illinois Gambling Act shall prevail. All provisions of the

4 Uniform Penalty and Interest Act shall apply, as far as

5 practicable, to the subject matter of this Act to the same

6 extent as if such provisions were included herein.

7 (Source: P.A. 96-37, eff. 7-13-09.)

8 (230 ILCS 40/81 new)

9 Sec. 81. Prohibition of political contributions from

10 certain licensees and applicants.

11 (a) The General Assembly has a compelling interest in

12 protecting the integrity of both the electoral process and the

13 legislative process by preventing corruption and the

14 appearance of corruption which may arise through permitting

15 certain political campaign contributions by certain persons

16 involved in the gaming industry and regulated by the State.

17 Unlike most other regulated industries, gaming is especially

18 susceptible to corruption and potential criminal influence.

19 In Illinois, only licensed gaming activities are legal and

20 all other gaming activities are strictly prohibited. Given

21 these circumstances, it is imperative to eliminate any

22 potential corrupt influence in the gaming industry and the

23 electoral process. Banning political campaign contributions by

24 certain persons subject to this Section to State officeholders

25 and candidates for such offices and, where necessary, to county

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1 and municipal officeholders and candidates for such offices in

2 counties and municipalities that receive financial benefits

3 from gaming activities is necessary to prevent corruption and

4 the appearance of corruption that may arise when political

5 campaign contributions and gaming that is regulated by the

6 State and that confers benefits on counties and municipalities

7 are intermingled.

8 (b) As used in this Section:

9 "Affiliated entity" means (i) any corporate parent and each

10 operating subsidiary of the business entity applying for or

11 holding a license, (ii) each operating subsidiary of the

12 corporate parent of the business entity applying for or holding

13 a license, (iii) any organization recognized by the United

14 States Internal Revenue Service as a tax-exempt organization

15 described in Section 501(c) of the Internal Revenue Code of

16 1986 (or any successor provision of federal tax law)

17 established by one or more business entities seeking or holding

18 a license, any affiliated entity of such business entity, or

19 any affiliated person of such business entity, and (iv) any

20 political committee for which the business entity applying for

21 or holding a license, or any 501(c) organization described in

22 item (iii) related to that business entity, is the sponsoring

23 entity, as defined in Section 9-3 of the Election Code. For

24 purposes of item (iv), the funding of all business entities

25 applying for or holding a license shall be aggregated in

26 determining whether such political committee is an affiliated

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1 entity.

2 "Affiliated person" means (i) any person with any ownership

3 interest or distributive share in excess of 1% of any business

4 entity applying for or holding a license, (ii) executive

5 employees of any such business entity, (iii) any person

6 designated as a person of significant influence and control

7 under the Video Gaming Act, and (iv) the spouse of such

8 persons.

9 "Business entity" means any entity doing business for

10 profit, whether organized as a corporation, partnership, sole

11 proprietorship, limited liability company, or partnership or

12 otherwise.

13 "Contribution" means a contribution as defined in Section

14 9-1.4 of the Election Code.

15 "Declared candidate" means a person who has filed a

16 statement of candidacy and petition for nomination or election

17 in the principal office of the State Board of Elections, or in

18 the office of the appropriate election authority for any county

19 or municipality in which a video gaming terminal is located or

20 proposed or which receives any video gaming revenue, for the

21 office of Governor, Lieutenant Governor, Attorney General,

22 Secretary of State, Comptroller, Treasurer, member of the

23 General Assembly, chief executive or any member of the

24 legislative body of any municipality in which a video gaming

25 terminal is located or proposed or which receives any video

26 gaming revenue, or chief executive or any member of the

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1 legislative body of any county containing any unincorporated

2 area in which a video gaming terminal is located or which

3 receives any video gaming revenue.

4 "Executive employee" means any person who is an officer or

5 director or who fulfills duties equivalent to those of an

6 officer or director of a business entity applying for or

7 holding a license; and (ii) any employee of such business

8 entity who is required to register under the Lobbyist

9 Registration Act.

10 "License" means any license issued pursuant to this Act.

11 "Officeholder" means the Governor, the Lieutenant

12 Governor, the Attorney General, the Secretary of State, the

13 Comptroller, the Treasurer, a member of the General Assembly,

14 the chief executive or any member of the legislative body of

15 any municipality in which a video gaming terminal is located or

16 proposed or which receives any video gaming revenue, or the

17 chief executive or any member of the legislative body of any

18 county containing any unincorporated area in which a video

19 gaming terminal is located or which receives any video gaming

20 revenue.

21 (c) Any person or business entity applying for or holding a

22 manufacturer or distributor license, any affiliated entities

23 or persons of such business entity, and any entities or persons

24 soliciting a contribution or causing a contribution to be made

25 on behalf of such person or business entity, are prohibited

26 from making any contribution to any officeholder or declared

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1 candidate or any political committee affiliated with any

2 officeholder or declared candidate, as defined in Section 9-1.8

3 of the Election Code.

4 The Board shall have authority to suspend, revoke, or

5 restrict the license and to impose civil penalties of up to

6 $100,000, for each violation of this subsection (c). A notice

7 of each such violation and the penalty imposed shall be

8 published on the Board's website and in the Illinois Register.

9 Payments received by the State pursuant to this subsection

10 shall be deposited into the General Revenue Fund.

11 Any person or business entity applying for or holding a

12 terminal operator license, any affiliated entities or persons

13 of such business entity, and any entities or persons soliciting

14 a contribution or causing a contribution to be made on behalf

15 of such person or business entity, are prohibited from making

16 any contribution to any officeholder or declared candidate or

17 any political committee affiliated with any officeholder or

18 declared candidate, as defined in Section 9-1.8 of the Election

19 Code, except that any such person or entity may make a

20 contribution to the chief executive or any member of the

21 legislative body of any municipality in which a video gaming

22 terminal is located or proposed or which receives any video

23 gaming revenue, the chief executive or any member of the

24 legislative body of any county containing any unincorporated

25 area in which a video gaming terminal is located or which

26 receives any video gaming revenue, or any declared candidates

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1 for such offices, so long as the video gaming terminal

2 associated with the terminal operator license held or applied

3 for is not located in the same municipality or county in which

4 the officeholder or declared candidate holds or is seeking

5 office. This prohibition shall commence upon filing of an

6 application for a license and shall continue for a period of 2

7 years after termination, suspension, or revocation of the

8 license.

9 Any officeholder or declared candidate or any political

10 committee affiliated with any officeholder or declared

11 candidate that has received a contribution in violation of this

12 subsection (c) shall pay an amount equal to the value of the

13 contribution to the State no more than 30 days after notice of

14 the violation concerning the contribution appears in the

15 Illinois Register. Payments received by the State pursuant to

16 this subsection shall be deposited into the General Revenue

17 Fund.

18 The provisions of this subsection (c) shall apply only to

19 persons or entities applying for or holding a manufacturer

20 license, a distributor license, or a terminal operator license

21 and shall not apply to persons or entities applying for or

22 holding any other licenses under this Act.

23 (d) The Board shall post on its website a list of all

24 persons, business entities, and affiliated entities prohibited

25 from making contributions to any officeholder or declared

26 candidate political committee pursuant to subsection (c),

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1 which list shall be updated and published on, at a minimum, a

2 semiannual basis.

3 Any person, business entity, or affiliated entity

4 prohibited from making contributions to any officeholder or

5 declared candidate political committee pursuant to subsection

6 (c) of this Section shall notify the Board within 7 days after

7 discovering any necessary change or addition to the information

8 relating to that person, business entity, or affiliated entity

9 contained in the list.

10 An individual who acts in good faith and in reliance on any

11 information contained in the list shall not be subject to any

12 penalties or liability imposed for a violation of this Section.

13 (e) If any provision of this Section is held invalid or its

14 application to any person or circumstance is held invalid, the

15 invalidity of that provision or application does not affect the

16 other provisions or applications of this Section that can be

17 given effect without the invalid application or provision.

18 Section 60. The Liquor Control Act of 1934 is amended by

19 changing Sections 5-1 and 6-30 as follows:

20 (235 ILCS 5/5-1) (from Ch. 43, par. 115)

21 Sec. 5-1. Licenses issued by the Illinois Liquor Control

22 Commission shall be of the following classes:

23 (a) Manufacturer's license - Class 1. Distiller, Class 2.

24 Rectifier, Class 3. Brewer, Class 4. First Class Wine

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1 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.

2 First Class Winemaker, Class 7. Second Class Winemaker, Class

3 8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class

4 10. Craft Brewer,

5 (b) Distributor's license,

6 (c) Importing Distributor's license,

7 (d) Retailer's license,

8 (e) Special Event Retailer's license (not-for-profit),

9 (f) Railroad license,

10 (g) Boat license,

11 (h) Non-Beverage User's license,

12 (i) Wine-maker's premises license,

13 (j) Airplane license,

14 (k) Foreign importer's license,

15 (l) Broker's license,

16 (m) Non-resident dealer's license,

17 (n) Brew Pub license,

18 (o) Auction liquor license,

19 (p) Caterer retailer license,

20 (q) Special use permit license,

21 (r) Winery shipper's license.

22 No person, firm, partnership, corporation, or other legal

23 business entity that is engaged in the manufacturing of wine

24 may concurrently obtain and hold a wine-maker's license and a

25 wine manufacturer's license.

26 (a) A manufacturer's license shall allow the manufacture,

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1 importation in bulk, storage, distribution and sale of

2 alcoholic liquor to persons without the State, as may be

3 permitted by law and to licensees in this State as follows:

4 Class 1. A Distiller may make sales and deliveries of

5 alcoholic liquor to distillers, rectifiers, importing

6 distributors, distributors and non-beverage users and to no

7 other licensees.

8 Class 2. A Rectifier, who is not a distiller, as defined

9 herein, may make sales and deliveries of alcoholic liquor to

10 rectifiers, importing distributors, distributors, retailers

11 and non-beverage users and to no other licensees.

12 Class 3. A Brewer may make sales and deliveries of beer to

13 importing distributors and distributors and may make sales as

14 authorized under subsection (e) of Section 6-4 of this Act.

15 Class 4. A first class wine-manufacturer may make sales and

16 deliveries of up to 50,000 gallons of wine to manufacturers,

17 importing distributors and distributors, and to no other

18 licensees.

19 Class 5. A second class Wine manufacturer may make sales

20 and deliveries of more than 50,000 gallons of wine to

21 manufacturers, importing distributors and distributors and to

22 no other licensees.

23 Class 6. A first-class wine-maker's license shall allow the

24 manufacture of up to 50,000 gallons of wine per year, and the

25 storage and sale of such wine to distributors in the State and

26 to persons without the State, as may be permitted by law. A

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1 person who, prior to the effective date of this amendatory Act

2 of the 95th General Assembly, is a holder of a first-class

3 wine-maker's license and annually produces more than 25,000

4 gallons of its own wine and who distributes its wine to

5 licensed retailers shall cease this practice on or before July

6 1, 2008 in compliance with this amendatory Act of the 95th

7 General Assembly.

8 Class 7. A second-class wine-maker's license shall allow

9 the manufacture of between 50,000 and 150,000 gallons of wine

10 per year, and the storage and sale of such wine to distributors

11 in this State and to persons without the State, as may be

12 permitted by law. A person who, prior to the effective date of

13 this amendatory Act of the 95th General Assembly, is a holder

14 of a second-class wine-maker's license and annually produces

15 more than 25,000 gallons of its own wine and who distributes

16 its wine to licensed retailers shall cease this practice on or

17 before July 1, 2008 in compliance with this amendatory Act of

18 the 95th General Assembly.

19 Class 8. A limited wine-manufacturer may make sales and

20 deliveries not to exceed 40,000 gallons of wine per year to

21 distributors, and to non-licensees in accordance with the

22 provisions of this Act.

23 Class 9. A craft distiller license shall allow the

24 manufacture of up to 30,000 gallons of spirits by distillation

25 for one year after the effective date of this amendatory Act of

26 the 97th General Assembly and up to 35,000 gallons of spirits

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1 by distillation per year thereafter and the storage of such

2 spirits. If a craft distiller licensee is not affiliated with

3 any other manufacturer, then the craft distiller licensee may

4 sell such spirits to distributors in this State and up to 2,500

5 gallons of such spirits to non-licensees to the extent

6 permitted by any exemption approved by the Commission pursuant

7 to Section 6-4 of this Act.

8 Any craft distiller licensed under this Act who on the

9 effective date of this amendatory Act of the 96th General

10 Assembly was licensed as a distiller and manufactured no more

11 spirits than permitted by this Section shall not be required to

12 pay the initial licensing fee.

13 Class 10. A craft brewer's license, which may only be

14 issued to a licensed brewer or licensed non-resident dealer,

15 shall allow the manufacture of up to 930,000 gallons of beer

16 per year. A craft brewer licensee may make sales and deliveries

17 to importing distributors and distributors and to retail

18 licensees in accordance with the conditions set forth in

19 paragraph (18) of subsection (a) of Section 3-12 of this Act.

20 (a-1) A manufacturer which is licensed in this State to

21 make sales or deliveries of alcoholic liquor to licensed

22 distributors or importing distributors and which enlists

23 agents, representatives, or individuals acting on its behalf

24 who contact licensed retailers on a regular and continual basis

25 in this State must register those agents, representatives, or

26 persons acting on its behalf with the State Commission.

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1 Registration of agents, representatives, or persons acting

2 on behalf of a manufacturer is fulfilled by submitting a form

3 to the Commission. The form shall be developed by the

4 Commission and shall include the name and address of the

5 applicant, the name and address of the manufacturer he or she

6 represents, the territory or areas assigned to sell to or

7 discuss pricing terms of alcoholic liquor, and any other

8 questions deemed appropriate and necessary. All statements in

9 the forms required to be made by law or by rule shall be deemed

10 material, and any person who knowingly misstates any material

11 fact under oath in an application is guilty of a Class B

12 misdemeanor. Fraud, misrepresentation, false statements,

13 misleading statements, evasions, or suppression of material

14 facts in the securing of a registration are grounds for

15 suspension or revocation of the registration. The State

16 Commission shall post a list of registered agents on the

17 Commission's website.

18 (b) A distributor's license shall allow the wholesale

19 purchase and storage of alcoholic liquors and sale of alcoholic

20 liquors to licensees in this State and to persons without the

21 State, as may be permitted by law.

22 (c) An importing distributor's license may be issued to and

23 held by those only who are duly licensed distributors, upon the

24 filing of an application by a duly licensed distributor, with

25 the Commission and the Commission shall, without the payment of

26 any fee, immediately issue such importing distributor's

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1 license to the applicant, which shall allow the importation of

2 alcoholic liquor by the licensee into this State from any point

3 in the United States outside this State, and the purchase of

4 alcoholic liquor in barrels, casks or other bulk containers and

5 the bottling of such alcoholic liquors before resale thereof,

6 but all bottles or containers so filled shall be sealed,

7 labeled, stamped and otherwise made to comply with all

8 provisions, rules and regulations governing manufacturers in

9 the preparation and bottling of alcoholic liquors. The

10 importing distributor's license shall permit such licensee to

11 purchase alcoholic liquor from Illinois licensed non-resident

12 dealers and foreign importers only.

13 (d) A retailer's license shall allow the licensee to sell

14 and offer for sale at retail, only in the premises specified in

15 the license, alcoholic liquor for use or consumption, but not

16 for resale in any form. Nothing in this amendatory Act of the

17 95th General Assembly shall deny, limit, remove, or restrict

18 the ability of a holder of a retailer's license to transfer,

19 deliver, or ship alcoholic liquor to the purchaser for use or

20 consumption subject to any applicable local law or ordinance.

21 Any retail license issued to a manufacturer shall only permit

22 the manufacturer to sell beer at retail on the premises

23 actually occupied by the manufacturer. For the purpose of

24 further describing the type of business conducted at a retail

25 licensed premises, a retailer's licensee may be designated by

26 the State Commission as (i) an on premise consumption retailer,

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1 (ii) an off premise sale retailer, or (iii) a combined on

2 premise consumption and off premise sale retailer.

3 Notwithstanding any other provision of this subsection

4 (d), a retail licensee may sell alcoholic liquors to a special

5 event retailer licensee for resale to the extent permitted

6 under subsection (e).

7 (e) A special event retailer's license (not-for-profit)

8 shall permit the licensee to purchase alcoholic liquors from an

9 Illinois licensed distributor (unless the licensee purchases

10 less than $500 of alcoholic liquors for the special event, in

11 which case the licensee may purchase the alcoholic liquors from

12 a licensed retailer) and shall allow the licensee to sell and

13 offer for sale, at retail, alcoholic liquors for use or

14 consumption, but not for resale in any form and only at the

15 location and on the specific dates designated for the special

16 event in the license. An applicant for a special event retailer

17 license must (i) furnish with the application: (A) a resale

18 number issued under Section 2c of the Retailers' Occupation Tax

19 Act or evidence that the applicant is registered under Section

20 2a of the Retailers' Occupation Tax Act, (B) a current, valid

21 exemption identification number issued under Section 1g of the

22 Retailers' Occupation Tax Act, and a certification to the

23 Commission that the purchase of alcoholic liquors will be a

24 tax-exempt purchase, or (C) a statement that the applicant is

25 not registered under Section 2a of the Retailers' Occupation

26 Tax Act, does not hold a resale number under Section 2c of the

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1 Retailers' Occupation Tax Act, and does not hold an exemption

2 number under Section 1g of the Retailers' Occupation Tax Act,

3 in which event the Commission shall set forth on the special

4 event retailer's license a statement to that effect; (ii)

5 submit with the application proof satisfactory to the State

6 Commission that the applicant will provide dram shop liability

7 insurance in the maximum limits; and (iii) show proof

8 satisfactory to the State Commission that the applicant has

9 obtained local authority approval.

10 (f) A railroad license shall permit the licensee to import

11 alcoholic liquors into this State from any point in the United

12 States outside this State and to store such alcoholic liquors

13 in this State; to make wholesale purchases of alcoholic liquors

14 directly from manufacturers, foreign importers, distributors

15 and importing distributors from within or outside this State;

16 and to store such alcoholic liquors in this State; provided

17 that the above powers may be exercised only in connection with

18 the importation, purchase or storage of alcoholic liquors to be

19 sold or dispensed on a club, buffet, lounge or dining car

20 operated on an electric, gas or steam railway in this State;

21 and provided further, that railroad licensees exercising the

22 above powers shall be subject to all provisions of Article VIII

23 of this Act as applied to importing distributors. A railroad

24 license shall also permit the licensee to sell or dispense

25 alcoholic liquors on any club, buffet, lounge or dining car

26 operated on an electric, gas or steam railway regularly

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1 operated by a common carrier in this State, but shall not

2 permit the sale for resale of any alcoholic liquors to any

3 licensee within this State. A license shall be obtained for

4 each car in which such sales are made.

5 (g) A boat license shall allow the sale of alcoholic liquor

6 in individual drinks, on any passenger boat regularly operated

7 as a common carrier on navigable waters in this State or on any

8 riverboat operated under theIllinois ~~Riverboat~~ Gambling Act,

9 which boat or riverboat maintains a public dining room or

10 restaurant thereon.

11 (h) A non-beverage user's license shall allow the licensee

12 to purchase alcoholic liquor from a licensed manufacturer or

13 importing distributor, without the imposition of any tax upon

14 the business of such licensed manufacturer or importing

15 distributor as to such alcoholic liquor to be used by such

16 licensee solely for the non-beverage purposes set forth in

17 subsection (a) of Section 8-1 of this Act, and such licenses

18 shall be divided and classified and shall permit the purchase,

19 possession and use of limited and stated quantities of

20 alcoholic liquor as follows:

21 Class 1, not to exceed .........................500 gallons

22 Class 2, not to exceed .......................1,000 gallons

23 Class 3, not to exceed .......................5,000 gallons

24 Class 4, not to exceed ......................10,000 gallons

25 Class 5, not to exceed ....................... 50,000 gallons

26 (i) A wine-maker's premises license shall allow a licensee

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1 that concurrently holds a first-class wine-maker's license to

2 sell and offer for sale at retail in the premises specified in

3 such license not more than 50,000 gallons of the first-class

4 wine-maker's wine that is made at the first-class wine-maker's

5 licensed premises per year for use or consumption, but not for

6 resale in any form. A wine-maker's premises license shall allow

7 a licensee who concurrently holds a second-class wine-maker's

8 license to sell and offer for sale at retail in the premises

9 specified in such license up to 100,000 gallons of the

10 second-class wine-maker's wine that is made at the second-class

11 wine-maker's licensed premises per year for use or consumption

12 but not for resale in any form. A wine-maker's premises license

13 shall allow a licensee that concurrently holds a first-class

14 wine-maker's license or a second-class wine-maker's license to

15 sell and offer for sale at retail at the premises specified in

16 the wine-maker's premises license, for use or consumption but

17 not for resale in any form, any beer, wine, and spirits

18 purchased from a licensed distributor. Upon approval from the

19 State Commission, a wine-maker's premises license shall allow

20 the licensee to sell and offer for sale at (i) the wine-maker's

21 licensed premises and (ii) at up to 2 additional locations for

22 use and consumption and not for resale. Each location shall

23 require additional licensing per location as specified in

24 Section 5-3 of this Act. A wine-maker's premises licensee shall

25 secure liquor liability insurance coverage in an amount at

26 least equal to the maximum liability amounts set forth in

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1 subsection (a) of Section 6-21 of this Act.

2 (j) An airplane license shall permit the licensee to import

3 alcoholic liquors into this State from any point in the United

4 States outside this State and to store such alcoholic liquors

5 in this State; to make wholesale purchases of alcoholic liquors

6 directly from manufacturers, foreign importers, distributors

7 and importing distributors from within or outside this State;

8 and to store such alcoholic liquors in this State; provided

9 that the above powers may be exercised only in connection with

10 the importation, purchase or storage of alcoholic liquors to be

11 sold or dispensed on an airplane; and provided further, that

12 airplane licensees exercising the above powers shall be subject

13 to all provisions of Article VIII of this Act as applied to

14 importing distributors. An airplane licensee shall also permit

15 the sale or dispensing of alcoholic liquors on any passenger

16 airplane regularly operated by a common carrier in this State,

17 but shall not permit the sale for resale of any alcoholic

18 liquors to any licensee within this State. A single airplane

19 license shall be required of an airline company if liquor

20 service is provided on board aircraft in this State. The annual

21 fee for such license shall be as determined in Section 5-3.

22 (k) A foreign importer's license shall permit such licensee

23 to purchase alcoholic liquor from Illinois licensed

24 non-resident dealers only, and to import alcoholic liquor other

25 than in bulk from any point outside the United States and to

26 sell such alcoholic liquor to Illinois licensed importing

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1 distributors and to no one else in Illinois; provided that (i)

2 the foreign importer registers with the State Commission every

3 brand of alcoholic liquor that it proposes to sell to Illinois

4 licensees during the license period, (ii) the foreign importer

5 complies with all of the provisions of Section 6-9 of this Act

6 with respect to registration of such Illinois licensees as may

7 be granted the right to sell such brands at wholesale, and

8 (iii) the foreign importer complies with the provisions of

9 Sections 6-5 and 6-6 of this Act to the same extent that these

10 provisions apply to manufacturers.

11 (l) (i) A broker's license shall be required of all persons

12 who solicit orders for, offer to sell or offer to supply

13 alcoholic liquor to retailers in the State of Illinois, or who

14 offer to retailers to ship or cause to be shipped or to make

15 contact with distillers, rectifiers, brewers or manufacturers

16 or any other party within or without the State of Illinois in

17 order that alcoholic liquors be shipped to a distributor,

18 importing distributor or foreign importer, whether such

19 solicitation or offer is consummated within or without the

20 State of Illinois.

21 No holder of a retailer's license issued by the Illinois

22 Liquor Control Commission shall purchase or receive any

23 alcoholic liquor, the order for which was solicited or offered

24 for sale to such retailer by a broker unless the broker is the

25 holder of a valid broker's license.

26 The broker shall, upon the acceptance by a retailer of the

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1 broker's solicitation of an order or offer to sell or supply or

2 deliver or have delivered alcoholic liquors, promptly forward

3 to the Illinois Liquor Control Commission a notification of

4 said transaction in such form as the Commission may by

5 regulations prescribe.

6 (ii) A broker's license shall be required of a person

7 within this State, other than a retail licensee, who, for a fee

8 or commission, promotes, solicits, or accepts orders for

9 alcoholic liquor, for use or consumption and not for resale, to

10 be shipped from this State and delivered to residents outside

11 of this State by an express company, common carrier, or

12 contract carrier. This Section does not apply to any person who

13 promotes, solicits, or accepts orders for wine as specifically

14 authorized in Section 6-29 of this Act.

15 A broker's license under this subsection (l) shall not

16 entitle the holder to buy or sell any alcoholic liquors for his

17 own account or to take or deliver title to such alcoholic

18 liquors.

19 This subsection (l) shall not apply to distributors,

20 employees of distributors, or employees of a manufacturer who

21 has registered the trademark, brand or name of the alcoholic

22 liquor pursuant to Section 6-9 of this Act, and who regularly

23 sells such alcoholic liquor in the State of Illinois only to

24 its registrants thereunder.

25 Any agent, representative, or person subject to

26 registration pursuant to subsection (a-1) of this Section shall

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1 not be eligible to receive a broker's license.

2 (m) A non-resident dealer's license shall permit such

3 licensee to ship into and warehouse alcoholic liquor into this

4 State from any point outside of this State, and to sell such

5 alcoholic liquor to Illinois licensed foreign importers and

6 importing distributors and to no one else in this State;

7 provided that (i) said non-resident dealer shall register with

8 the Illinois Liquor Control Commission each and every brand of

9 alcoholic liquor which it proposes to sell to Illinois

10 licensees during the license period, (ii) it shall comply with

11 all of the provisions of Section 6-9 hereof with respect to

12 registration of such Illinois licensees as may be granted the

13 right to sell such brands at wholesale, and (iii) the

14 non-resident dealer shall comply with the provisions of

15 Sections 6-5 and 6-6 of this Act to the same extent that these

16 provisions apply to manufacturers.

17 (n) A brew pub license shall allow the licensee (i) to

18 manufacture beer only on the premises specified in the license,

19 (ii) to make sales of the beer manufactured on the premises or,

20 with the approval of the Commission, beer manufactured on

21 another brew pub licensed premises that is substantially owned

22 and operated by the same licensee to importing distributors,

23 distributors, and to non-licensees for use and consumption,

24 (iii) to store the beer upon the premises, and (iv) to sell and

25 offer for sale at retail from the licensed premises, provided

26 that a brew pub licensee shall not sell for off-premises

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1 consumption more than 50,000 gallons per year. A person who

2 holds a brew pub license may simultaneously hold a craft brewer

3 license if he or she otherwise qualifies for the craft brewer

4 license and the craft brewer license is for a location separate

5 from the brew pub's licensed premises. A brew pub license shall

6 permit a person who has received prior approval from the

7 Commission to annually transfer no more than a total of 50,000

8 gallons of beer manufactured on premises to all other licensed

9 brew pubs that are substantially owned and operated by the same

10 person.

11 (o) A caterer retailer license shall allow the holder to

12 serve alcoholic liquors as an incidental part of a food service

13 that serves prepared meals which excludes the serving of snacks

14 as the primary meal, either on or off-site whether licensed or

15 unlicensed.

16 (p) An auction liquor license shall allow the licensee to

17 sell and offer for sale at auction wine and spirits for use or

18 consumption, or for resale by an Illinois liquor licensee in

19 accordance with provisions of this Act. An auction liquor

20 license will be issued to a person and it will permit the

21 auction liquor licensee to hold the auction anywhere in the

22 State. An auction liquor license must be obtained for each

23 auction at least 14 days in advance of the auction date.

24 (q) A special use permit license shall allow an Illinois

25 licensed retailer to transfer a portion of its alcoholic liquor

26 inventory from its retail licensed premises to the premises

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1 specified in the license hereby created, and to sell or offer

2 for sale at retail, only in the premises specified in the

3 license hereby created, the transferred alcoholic liquor for

4 use or consumption, but not for resale in any form. A special

5 use permit license may be granted for the following time

6 periods: one day or less; 2 or more days to a maximum of 15 days

7 per location in any 12 month period. An applicant for the

8 special use permit license must also submit with the

9 application proof satisfactory to the State Commission that the

10 applicant will provide dram shop liability insurance to the

11 maximum limits and have local authority approval.

12 (r) A winery shipper's license shall allow a person with a

13 first-class or second-class wine manufacturer's license, a

14 first-class or second-class wine-maker's license, or a limited

15 wine manufacturer's license or who is licensed to make wine

16 under the laws of another state to ship wine made by that

17 licensee directly to a resident of this State who is 21 years

18 of age or older for that resident's personal use and not for

19 resale. Prior to receiving a winery shipper's license, an

20 applicant for the license must provide the Commission with a

21 true copy of its current license in any state in which it is

22 licensed as a manufacturer of wine. An applicant for a winery

23 shipper's license must also complete an application form that

24 provides any other information the Commission deems necessary.

25 The application form shall include an acknowledgement

26 consenting to the jurisdiction of the Commission, the Illinois

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1 Department of Revenue, and the courts of this State concerning

2 the enforcement of this Act and any related laws, rules, and

3 regulations, including authorizing the Department of Revenue

4 and the Commission to conduct audits for the purpose of

5 ensuring compliance with this amendatory Act.

6 A winery shipper licensee must pay to the Department of

7 Revenue the State liquor gallonage tax under Section 8-1 for

8 all wine that is sold by the licensee and shipped to a person

9 in this State. For the purposes of Section 8-1, a winery

10 shipper licensee shall be taxed in the same manner as a

11 manufacturer of wine. A licensee who is not otherwise required

12 to register under the Retailers' Occupation Tax Act must

13 register under the Use Tax Act to collect and remit use tax to

14 the Department of Revenue for all gallons of wine that are sold

15 by the licensee and shipped to persons in this State. If a

16 licensee fails to remit the tax imposed under this Act in

17 accordance with the provisions of Article VIII of this Act, the

18 winery shipper's license shall be revoked in accordance with

19 the provisions of Article VII of this Act. If a licensee fails

20 to properly register and remit tax under the Use Tax Act or the

21 Retailers' Occupation Tax Act for all wine that is sold by the

22 winery shipper and shipped to persons in this State, the winery

23 shipper's license shall be revoked in accordance with the

24 provisions of Article VII of this Act.

25 A winery shipper licensee must collect, maintain, and

26 submit to the Commission on a semi-annual basis the total

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1 number of cases per resident of wine shipped to residents of

2 this State. A winery shipper licensed under this subsection (r)

3 must comply with the requirements of Section 6-29 of this

4 amendatory Act.

5 (Source: P.A. 97-5, eff. 6-1-11; 97-455, eff. 8-19-11; 97-813,

6 eff. 7-13-12; 97-1166, eff. 3-1-13; 98-394, eff. 8-16-13;

7 98-401, eff. 8-16-13; 98-756, eff. 7-16-14.)

8 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)

9 Sec. 6-30. Notwithstanding any other provision of this Act,

10 the Illinois Gaming Board shall have exclusive authority to

11 establish the hours for sale and consumption of alcoholic

12 liquor on board a riverboat during riverboat gambling

13 excursions conducted in accordance with the Illinois ~~Riverboat~~

14 Gambling Act.

15 (Source: P.A. 87-826.)

16 Section 65. The Illinois Public Aid Code is amended by

17 changing Section 10-17.15 as follows:

18 (305 ILCS 5/10-17.15)

19 Sec. 10-17.15. Certification of information to State

20 gaming licensees.

21 (a) For purposes of this Section, "State gaming licensee"

22 means, as applicable, an organization licensee or advance

23 deposit wagering licensee licensed under the Illinois Horse

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1 Racing Act of 1975, an owners licensee licensed under the

2 Illinois ~~Riverboat~~ Gambling Act, an electronic gaming licensee

3 under the Illinois Gambling Act and the Illinois Horse Racing

4 Act of 1975, or a licensee that operates, under any law of this

5 State, one or more facilities or gaming locations at which

6 lawful gambling is authorized and licensed as provided in the

7 Illinois ~~Riverboat~~ Gambling Act.

8 (b) The Department may provide, by rule, for certification

9 to any State gaming licensee of past due child support owed by

10 a responsible relative under a support order entered by a court

11 or administrative body of this or any other State on behalf of

12 a resident or non-resident receiving child support services

13 under this Article in accordance with the requirements of Title

14 IV-D, Part D, of the Social Security Act. The State gaming

15 licensee shall have the ability to withhold from winnings

16 required to be reported to the Internal Revenue Service on Form

17 W-2G, up to the full amount of winnings necessary to pay the

18 winner's past due child support. The rule shall provide for

19 notice to and an opportunity to be heard by each responsible

20 relative affected and any final administrative decision

21 rendered by the Department shall be reviewed only under and in

22 accordance with the Administrative Review Law.

23 (c) For withholding of winnings, the State gaming licensee

24 shall be entitled to an administrative fee not to exceed the

25 lesser of 4% of the total amount of cash winnings paid to the

26 gambling winner or $150.

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1 (d) In no event may the total amount withheld from the cash

2 payout, including the administrative fee, exceed the total cash

3 winnings claimed by the obligor. If the cash payout claimed is

4 greater than the amount sufficient to satisfy the obligor's

5 delinquent child support payments, the State gaming licensee

6 shall pay the obligor the remaining balance of the payout, less

7 the administrative fee authorized by subsection (c) of this

8 Section, at the time it is claimed.

9 (e) A State gaming licensee who in good faith complies with

10 the requirements of this Section shall not be liable to the

11 gaming winner or any other individual or entity.

12 (Source: P.A. 98-318, eff. 8-12-13.)

13 Section 70. The Firearm Concealed Carry Act is amended by

14 changing Section 65 as follows:

15 (430 ILCS 66/65)

16 Sec. 65. Prohibited areas.

17 (a) A licensee under this Act shall not knowingly carry a

18 firearm on or into:

19 (1) Any building, real property, and parking area under

20 the control of a public or private elementary or secondary

21 school.

22 (2) Any building, real property, and parking area under

23 the control of a pre-school or child care facility,

24 including any room or portion of a building under the

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1 control of a pre-school or child care facility. Nothing in

2 this paragraph shall prevent the operator of a child care

3 facility in a family home from owning or possessing a

4 firearm in the home or license under this Act, if no child

5 under child care at the home is present in the home or the

6 firearm in the home is stored in a locked container when a

7 child under child care at the home is present in the home.

8 (3) Any building, parking area, or portion of a

9 building under the control of an officer of the executive

10 or legislative branch of government, provided that nothing

11 in this paragraph shall prohibit a licensee from carrying a

12 concealed firearm onto the real property, bikeway, or trail

13 in a park regulated by the Department of Natural Resources

14 or any other designated public hunting area or building

15 where firearm possession is permitted as established by the

16 Department of Natural Resources under Section 1.8 of the

17 Wildlife Code.

18 (4) Any building designated for matters before a

19 circuit court, appellate court, or the Supreme Court, or

20 any building or portion of a building under the control of

21 the Supreme Court.

22 (5) Any building or portion of a building under the

23 control of a unit of local government.

24 (6) Any building, real property, and parking area under

25 the control of an adult or juvenile detention or

26 correctional institution, prison, or jail.

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1 (7) Any building, real property, and parking area under

2 the control of a public or private hospital or hospital

3 affiliate, mental health facility, or nursing home.

4 (8) Any bus, train, or form of transportation paid for

5 in whole or in part with public funds, and any building,

6 real property, and parking area under the control of a

7 public transportation facility paid for in whole or in part

8 with public funds.

9 (9) Any building, real property, and parking area under

10 the control of an establishment that serves alcohol on its

11 premises, if more than 50% of the establishment's gross

12 receipts within the prior 3 months is from the sale of

13 alcohol. The owner of an establishment who knowingly fails

14 to prohibit concealed firearms on its premises as provided

15 in this paragraph or who knowingly makes a false statement

16 or record to avoid the prohibition on concealed firearms

17 under this paragraph is subject to the penalty under

18 subsection (c-5) of Section 10-1 of the Liquor Control Act

19 of 1934.

20 (10) Any public gathering or special event conducted on

21 property open to the public that requires the issuance of a

22 permit from the unit of local government, provided this

23 prohibition shall not apply to a licensee who must walk

24 through a public gathering in order to access his or her

25 residence, place of business, or vehicle.

26 (11) Any building or real property that has been issued

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1 a Special Event Retailer's license as defined in Section

2 1-3.17.1 of the Liquor Control Act during the time

3 designated for the sale of alcohol by the Special Event

4 Retailer's license, or a Special use permit license as

5 defined in subsection (q) of Section 5-1 of the Liquor

6 Control Act during the time designated for the sale of

7 alcohol by the Special use permit license.

8 (12) Any public playground.

9 (13) Any public park, athletic area, or athletic

10 facility under the control of a municipality or park

11 district, provided nothing in this Section shall prohibit a

12 licensee from carrying a concealed firearm while on a trail

13 or bikeway if only a portion of the trail or bikeway

14 includes a public park.

15 (14) Any real property under the control of the Cook

16 County Forest Preserve District.

17 (15) Any building, classroom, laboratory, medical

18 clinic, hospital, artistic venue, athletic venue,

19 entertainment venue, officially recognized

20 university-related organization property, whether owned or

21 leased, and any real property, including parking areas,

22 sidewalks, and common areas under the control of a public

23 or private community college, college, or university.

24 (16) Any building, real property, or parking area under

25 the control of a gaming facility licensed under the

26 Illinois ~~Riverboat~~ Gambling Act or the Illinois Horse

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1 Racing Act of 1975, including an inter-track wagering

2 location licensee.

3 (17) Any stadium, arena, or the real property or

4 parking area under the control of a stadium, arena, or any

5 collegiate or professional sporting event.

6 (18) Any building, real property, or parking area under

7 the control of a public library.

8 (19) Any building, real property, or parking area under

9 the control of an airport.

10 (20) Any building, real property, or parking area under

11 the control of an amusement park.

12 (21) Any building, real property, or parking area under

13 the control of a zoo or museum.

14 (22) Any street, driveway, parking area, property,

15 building, or facility, owned, leased, controlled, or used

16 by a nuclear energy, storage, weapons, or development site

17 or facility regulated by the federal Nuclear Regulatory

18 Commission. The licensee shall not under any circumstance

19 store a firearm or ammunition in his or her vehicle or in a

20 compartment or container within a vehicle located anywhere

21 in or on the street, driveway, parking area, property,

22 building, or facility described in this paragraph.

23 (23) Any area where firearms are prohibited under

24 federal law.

25 (a-5) Nothing in this Act shall prohibit a public or

26 private community college, college, or university from:

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1 (1) prohibiting persons from carrying a firearm within

2 a vehicle owned, leased, or controlled by the college or

3 university;

4 (2) developing resolutions, regulations, or policies

5 regarding student, employee, or visitor misconduct and

6 discipline, including suspension and expulsion;

7 (3) developing resolutions, regulations, or policies

8 regarding the storage or maintenance of firearms, which

9 must include designated areas where persons can park

10 vehicles that carry firearms; and

11 (4) permitting the carrying or use of firearms for the

12 purpose of instruction and curriculum of officially

13 recognized programs, including but not limited to military

14 science and law enforcement training programs, or in any

15 designated area used for hunting purposes or target

16 shooting.

17 (a-10) The owner of private real property of any type may

18 prohibit the carrying of concealed firearms on the property

19 under his or her control. The owner must post a sign in

20 accordance with subsection (d) of this Section indicating that

21 firearms are prohibited on the property, unless the property is

22 a private residence.

23 (b) Notwithstanding subsections (a), (a-5), and (a-10) of

24 this Section except under paragraph (22) or (23) of subsection

25 (a), any licensee prohibited from carrying a concealed firearm

26 into the parking area of a prohibited location specified in

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1 subsection (a), (a-5), or (a-10) of this Section shall be

2 permitted to carry a concealed firearm on or about his or her

3 person within a vehicle into the parking area and may store a

4 firearm or ammunition concealed in a case within a locked

5 vehicle or locked container out of plain view within the

6 vehicle in the parking area. A licensee may carry a concealed

7 firearm in the immediate area surrounding his or her vehicle

8 within a prohibited parking lot area only for the limited

9 purpose of storing or retrieving a firearm within the vehicle's

10 trunk, provided the licensee ensures the concealed firearm is

11 unloaded prior to exiting the vehicle. For purposes of this

12 subsection, "case" includes a glove compartment or console that

13 completely encloses the concealed firearm or ammunition, the

14 trunk of the vehicle, or a firearm carrying box, shipping box,

15 or other container.

16 (c) A licensee shall not be in violation of this Section

17 while he or she is traveling along a public right of way that

18 touches or crosses any of the premises under subsection (a),

19 (a-5), or (a-10) of this Section if the concealed firearm is

20 carried on his or her person in accordance with the provisions

21 of this Act or is being transported in a vehicle by the

22 licensee in accordance with all other applicable provisions of

23 law.

24 (d) Signs stating that the carrying of firearms is

25 prohibited shall be clearly and conspicuously posted at the

26 entrance of a building, premises, or real property specified in

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1 this Section as a prohibited area, unless the building or

2 premises is a private residence. Signs shall be of a uniform

3 design as established by the Department and shall be 4 inches

4 by 6 inches in size. The Department shall adopt rules for

5 standardized signs to be used under this subsection.

6 (Source: P.A. 98-63, eff. 7-9-13.)

7 Section 75. The Criminal Code of 2012 is amended by

8 changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as

9 follows:

10 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)

11 Sec. 28-1. Gambling.

12 (a) A person commits gambling when he or she:

13 (1) knowingly plays a game of chance or skill for money

14 or other thing of value, unless excepted in subsection (b)

15 of this Section;

16 (2) knowingly makes a wager upon the result of any

17 game, contest, or any political nomination, appointment or

18 election;

19 (3) knowingly operates, keeps, owns, uses, purchases,

20 exhibits, rents, sells, bargains for the sale or lease of,

21 manufactures or distributes any gambling device;

22 (4) contracts to have or give himself or herself or

23 another the option to buy or sell, or contracts to buy or

24 sell, at a future time, any grain or other commodity

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1 whatsoever, or any stock or security of any company, where

2 it is at the time of making such contract intended by both

3 parties thereto that the contract to buy or sell, or the

4 option, whenever exercised, or the contract resulting

5 therefrom, shall be settled, not by the receipt or delivery

6 of such property, but by the payment only of differences in

7 prices thereof; however, the issuance, purchase, sale,

8 exercise, endorsement or guarantee, by or through a person

9 registered with the Secretary of State pursuant to Section

10 8 of the Illinois Securities Law of 1953, or by or through

11 a person exempt from such registration under said Section

12 8, of a put, call, or other option to buy or sell

13 securities which have been registered with the Secretary of

14 State or which are exempt from such registration under

15 Section 3 of the Illinois Securities Law of 1953 is not

16 gambling within the meaning of this paragraph (4);

17 (5) knowingly owns or possesses any book, instrument or

18 apparatus by means of which bets or wagers have been, or

19 are, recorded or registered, or knowingly possesses any

20 money which he has received in the course of a bet or

21 wager;

22 (6) knowingly sells pools upon the result of any game

23 or contest of skill or chance, political nomination,

24 appointment or election;

25 (7) knowingly sets up or promotes any lottery or sells,

26 offers to sell or transfers any ticket or share for any

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1 lottery;

2 (8) knowingly sets up or promotes any policy game or

3 sells, offers to sell or knowingly possesses or transfers

4 any policy ticket, slip, record, document or other similar

5 device;

6 (9) knowingly drafts, prints or publishes any lottery

7 ticket or share, or any policy ticket, slip, record,

8 document or similar device, except for such activity

9 related to lotteries, bingo games and raffles authorized by

10 and conducted in accordance with the laws of Illinois or

11 any other state or foreign government;

12 (10) knowingly advertises any lottery or policy game,

13 except for such activity related to lotteries, bingo games

14 and raffles authorized by and conducted in accordance with

15 the laws of Illinois or any other state;

16 (11) knowingly transmits information as to wagers,

17 betting odds, or changes in betting odds by telephone,

18 telegraph, radio, semaphore or similar means; or knowingly

19 installs or maintains equipment for the transmission or

20 receipt of such information; except that nothing in this

21 subdivision (11) prohibits transmission or receipt of such

22 information for use in news reporting of sporting events or

23 contests; or

24 (12) knowingly establishes, maintains, or operates an

25 Internet site that permits a person to play a game of

26 chance or skill for money or other thing of value by means

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1 of the Internet or to make a wager upon the result of any

2 game, contest, political nomination, appointment, or

3 election by means of the Internet. This item (12) does not

4 apply to activities referenced in items (6) and (6.1) of

5 subsection (b) of this Section.

6 (b) Participants in any of the following activities shall

7 not be convicted of gambling:

8 (1) Agreements to compensate for loss caused by the

9 happening of chance including without limitation contracts

10 of indemnity or guaranty and life or health or accident

11 insurance.

12 (2) Offers of prizes, award or compensation to the

13 actual contestants in any bona fide contest for the

14 determination of skill, speed, strength or endurance or to

15 the owners of animals or vehicles entered in such contest.

16 (3) Pari-mutuel betting as authorized by the law of

17 this State.

18 (4) Manufacture of gambling devices, including the

19 acquisition of essential parts therefor and the assembly

20 thereof, for transportation in interstate or foreign

21 commerce to any place outside this State when such

22 transportation is not prohibited by any applicable Federal

23 law; or the manufacture, distribution, or possession of

24 video gaming terminals, as defined in the Video Gaming Act,

25 by manufacturers, distributors, and terminal operators

26 licensed to do so under the Video Gaming Act.

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1 (5) The game commonly known as "bingo", when conducted

2 in accordance with the Bingo License and Tax Act.

3 (6) Lotteries when conducted by the State of Illinois

4 in accordance with the Illinois Lottery Law. This exemption

5 includes any activity conducted by the Department of

6 Revenue to sell lottery tickets pursuant to the provisions

7 of the Illinois Lottery Law and its rules.

8 (6.1) The purchase of lottery tickets through the

9 Internet for a lottery conducted by the State of Illinois

10 under the program established in Section 7.12 of the

11 Illinois Lottery Law.

12 (7) Possession of an antique slot machine that is

13 neither used nor intended to be used in the operation or

14 promotion of any unlawful gambling activity or enterprise.

15 For the purpose of this subparagraph (b)(7), an antique

16 slot machine is one manufactured 25 years ago or earlier.

17 (8) Raffles and poker runs when conducted in accordance

18 with the Raffles and Poker Runs Act.

19 (9) Charitable games when conducted in accordance with

20 the Charitable Games Act.

21 (10) Pull tabs and jar games when conducted under the

22 Illinois Pull Tabs and Jar Games Act.

23 (11) Gambling games ~~conducted on riverboats~~when

24 authorized by the Illinois ~~Riverboat~~ Gambling Act.

25 (12) Video gaming terminal games at a licensed

26 establishment, licensed truck stop establishment, licensed

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1 fraternal establishment, or licensed veterans

2 establishment when conducted in accordance with the Video

3 Gaming Act.

4 (13) Games of skill or chance where money or other

5 things of value can be won but no payment or purchase is

6 required to participate.

7 (c) Sentence.

8 Gambling is a Class A misdemeanor. A second or subsequent

9 conviction under subsections (a)(3) through (a)(12), is a Class

10 4 felony.

11 (d) Circumstantial evidence.

12 In prosecutions under this Section circumstantial evidence

13 shall have the same validity and weight as in any criminal

14 prosecution.

15 (Source: P.A. 97-1108, eff. 1-1-13; 98-644, eff. 6-10-14.)

16 (720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)

17 Sec. 28-1.1. Syndicated gambling.

18 (a) Declaration of Purpose. Recognizing the close

19 relationship between professional gambling and other organized

20 crime, it is declared to be the policy of the legislature to

21 restrain persons from engaging in the business of gambling for

22 profit in this State. This Section shall be liberally construed

23 and administered with a view to carrying out this policy.

24 (b) A person commits syndicated gambling when he or she

25 operates a "policy game" or engages in the business of

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1 bookmaking.

2 (c) A person "operates a policy game" when he or she

3 knowingly uses any premises or property for the purpose of

4 receiving or knowingly does receive from what is commonly

5 called "policy":

6 (1) money from a person other than the bettor or player

7 whose bets or plays are represented by the money; or

8 (2) written "policy game" records, made or used over

9 any period of time, from a person other than the bettor or

10 player whose bets or plays are represented by the written

11 record.

12 (d) A person engages in bookmaking when he or she knowingly

13 receives or accepts more than five bets or wagers upon the

14 result of any trials or contests of skill, speed or power of

15 endurance or upon any lot, chance, casualty, unknown or

16 contingent event whatsoever, which bets or wagers shall be of

17 such size that the total of the amounts of money paid or

18 promised to be paid to the bookmaker on account thereof shall

19 exceed $2,000. Bookmaking is the receiving or accepting of bets

20 or wagers regardless of the form or manner in which the

21 bookmaker records them.

22 (e) Participants in any of the following activities shall

23 not be convicted of syndicated gambling:

24 (1) Agreements to compensate for loss caused by the

25 happening of chance including without limitation contracts

26 of indemnity or guaranty and life or health or accident

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1 insurance;

2 (2) Offers of prizes, award or compensation to the

3 actual contestants in any bona fide contest for the

4 determination of skill, speed, strength or endurance or to

5 the owners of animals or vehicles entered in the contest;

6 (3) Pari-mutuel betting as authorized by law of this

7 State;

8 (4) Manufacture of gambling devices, including the

9 acquisition of essential parts therefor and the assembly

10 thereof, for transportation in interstate or foreign

11 commerce to any place outside this State when the

12 transportation is not prohibited by any applicable Federal

13 law;

14 (5) Raffles and poker runs when conducted in accordance

15 with the Raffles and Poker Runs Act;

16 (6) Gambling games conducted on riverboats, in

17 casinos, or at electronic gaming facilitieswhen

18 authorized by the Illinois ~~Riverboat~~ Gambling Act; and

19 (7) Video gaming terminal games at a licensed

20 establishment, licensed truck stop establishment, licensed

21 fraternal establishment, or licensed veterans

22 establishment when conducted in accordance with the Video

23 Gaming Act.

24 (f) Sentence. Syndicated gambling is a Class 3 felony.

25 (Source: P.A. 97-1108, eff. 1-1-13; 98-644, eff. 6-10-14.)

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1 (720 ILCS 5/28-3) (from Ch. 38, par. 28-3)

2 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is

3 any real estate, vehicle, boat or any other property whatsoever

4 used for the purposes of gambling other than gambling conducted

5 in the manner authorized by theIllinois ~~Riverboat~~ Gambling Act

6 or the Video Gaming Act. Any person who knowingly permits any

7 premises or property owned or occupied by him or under his

8 control to be used as a gambling place commits a Class A

9 misdemeanor. Each subsequent offense is a Class 4 felony. When

10 any premises is determined by the circuit court to be a

11 gambling place:

12 (a) Such premises is a public nuisance and may be proceeded

13 against as such, and

14 (b) All licenses, permits or certificates issued by the

15 State of Illinois or any subdivision or public agency thereof

16 authorizing the serving of food or liquor on such premises

17 shall be void; and no license, permit or certificate so

18 cancelled shall be reissued for such premises for a period of

19 60 days thereafter; nor shall any person convicted of keeping a

20 gambling place be reissued such license for one year from his

21 conviction and, after a second conviction of keeping a gambling

22 place, any such person shall not be reissued such license, and

23 (c) Such premises of any person who knowingly permits

24 thereon a violation of any Section of this Article shall be

25 held liable for, and may be sold to pay any unsatisfied

26 judgment that may be recovered and any unsatisfied fine that

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1 may be levied under any Section of this Article.

2 (Source: P.A. 96-34, eff. 7-13-09.)

3 (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)

4 Sec. 28-5. Seizure of gambling devices and gambling funds.

5 (a) Every device designed for gambling which is incapable

6 of lawful use or every device used unlawfully for gambling

7 shall be considered a "gambling device", and shall be subject

8 to seizure, confiscation and destruction by the Department of

9 State Police or by any municipal, or other local authority,

10 within whose jurisdiction the same may be found. As used in

11 this Section, a "gambling device" includes any slot machine,

12 and includes any machine or device constructed for the

13 reception of money or other thing of value and so constructed

14 as to return, or to cause someone to return, on chance to the

15 player thereof money, property or a right to receive money or

16 property. With the exception of any device designed for

17 gambling which is incapable of lawful use, no gambling device

18 shall be forfeited or destroyed unless an individual with a

19 property interest in said device knows of the unlawful use of

20 the device.

21 (b) Every gambling device shall be seized and forfeited to

22 the county wherein such seizure occurs. Any money or other

23 thing of value integrally related to acts of gambling shall be

24 seized and forfeited to the county wherein such seizure occurs.

25 (c) If, within 60 days after any seizure pursuant to

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1 subparagraph (b) of this Section, a person having any property

2 interest in the seized property is charged with an offense, the

3 court which renders judgment upon such charge shall, within 30

4 days after such judgment, conduct a forfeiture hearing to

5 determine whether such property was a gambling device at the

6 time of seizure. Such hearing shall be commenced by a written

7 petition by the State, including material allegations of fact,

8 the name and address of every person determined by the State to

9 have any property interest in the seized property, a

10 representation that written notice of the date, time and place

11 of such hearing has been mailed to every such person by

12 certified mail at least 10 days before such date, and a request

13 for forfeiture. Every such person may appear as a party and

14 present evidence at such hearing. The quantum of proof required

15 shall be a preponderance of the evidence, and the burden of

16 proof shall be on the State. If the court determines that the

17 seized property was a gambling device at the time of seizure,

18 an order of forfeiture and disposition of the seized property

19 shall be entered: a gambling device shall be received by the

20 State's Attorney, who shall effect its destruction, except that

21 valuable parts thereof may be liquidated and the resultant

22 money shall be deposited in the general fund of the county

23 wherein such seizure occurred; money and other things of value

24 shall be received by the State's Attorney and, upon

25 liquidation, shall be deposited in the general fund of the

26 county wherein such seizure occurred. However, in the event

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1 that a defendant raises the defense that the seized slot

2 machine is an antique slot machine described in subparagraph

3 (b) (7) of Section 28-1 of this Code and therefore he is exempt

4 from the charge of a gambling activity participant, the seized

5 antique slot machine shall not be destroyed or otherwise

6 altered until a final determination is made by the Court as to

7 whether it is such an antique slot machine. Upon a final

8 determination by the Court of this question in favor of the

9 defendant, such slot machine shall be immediately returned to

10 the defendant. Such order of forfeiture and disposition shall,

11 for the purposes of appeal, be a final order and judgment in a

12 civil proceeding.

13 (d) If a seizure pursuant to subparagraph (b) of this

14 Section is not followed by a charge pursuant to subparagraph

15 (c) of this Section, or if the prosecution of such charge is

16 permanently terminated or indefinitely discontinued without

17 any judgment of conviction or acquittal (1) the State's

18 Attorney shall commence an in rem proceeding for the forfeiture

19 and destruction of a gambling device, or for the forfeiture and

20 deposit in the general fund of the county of any seized money

21 or other things of value, or both, in the circuit court and (2)

22 any person having any property interest in such seized gambling

23 device, money or other thing of value may commence separate

24 civil proceedings in the manner provided by law.

25 (e) Any gambling device displayed for sale to a riverboat

26 gambling operation, casino gambling operation, or electronic

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1 gaming facility or used to train occupational licensees of a

2 riverboat gambling operation, casino gambling operation, or

3 electronic gaming facility as authorized under the Illinois

4 ~~Riverboat~~Gambling Act is exempt from seizure under this

5 Section.

6 (f) Any gambling equipment, devices, and supplies provided

7 by a licensed supplier in accordance with theIllinois

8 ~~Riverboat~~Gambling Act which are removed froma ~~the~~ riverboat,

9 casino, or electronic gaming facility for repair are exempt

10 from seizure under this Section.

11 (g) The following video gaming terminals are exempt from

12 seizure under this Section:

13 (1) Video gaming terminals for sale to a licensed

14 distributor or operator under the Video Gaming Act.

15 (2) Video gaming terminals used to train licensed

16 technicians or licensed terminal handlers.

17 (3) Video gaming terminals that are removed from a

18 licensed establishment, licensed truck stop establishment,

19 licensed fraternal establishment, or licensed veterans

20 establishment for repair.

21 (Source: P.A. 98-31, eff. 6-24-13.)

22 (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)

23 Sec. 28-7. Gambling contracts void.

24 (a) All promises, notes, bills, bonds, covenants,

25 contracts, agreements, judgments, mortgages, or other

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1 securities or conveyances made, given, granted, drawn, or

2 entered into, or executed by any person whatsoever, where the

3 whole or any part of the consideration thereof is for any money

4 or thing of value, won or obtained in violation of any Section

5 of this Article are null and void.

6 (b) Any obligation void under this Section may be set aside

7 and vacated by any court of competent jurisdiction, upon a

8 complaint filed for that purpose, by the person so granting,

9 giving, entering into, or executing the same, or by his

10 executors or administrators, or by any creditor, heir, legatee,

11 purchaser or other person interested therein; or if a judgment,

12 the same may be set aside on motion of any person stated above,

13 on due notice thereof given.

14 (c) No assignment of any obligation void under this Section

15 may in any manner affect the defense of the person giving,

16 granting, drawing, entering into or executing such obligation,

17 or the remedies of any person interested therein.

18 (d) This Section shall not prevent a licensed owner or

19 licensed managerof a riverboat gambling operation, casino

20 gambling operation, or an electronic gaming licensee under the

21 Illinois Gambling Act and the Illinois Horse Racing Act of 1975

22 from instituting a cause of action to collect any amount due

23 and owing under an extension of credit to a~~riverboat~~ gambling

24 patron as authorized under Section 11.1 of the Illinois

25 ~~Riverboat~~ Gambling Act.

26 (Source: P.A. 87-826.)

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1 Section 82. The Eminent Domain Act is amended by changing

2 Section 15-5-25 as follows:

3 (735 ILCS 30/15-5-25)

4 Sec. 15-5-25. Eminent domain powers in ILCS Chapters 205

5 through 430. The following provisions of law may include

6 express grants of the power to acquire property by condemnation

7 or eminent domain:

8 (220 ILCS 5/8-509); Public Utilities Act; public utilities; for

9 construction of certain improvements.

10 (220 ILCS 15/1); Gas Storage Act; corporations engaged in the

11 distribution, transportation, or storage of natural gas or

12 manufactured gas; for their operations.

13 (220 ILCS 15/2 and 15/6); Gas Storage Act; corporations engaged

14 in the distribution, transportation, or storage of natural

15 gas or manufactured gas; for use of an underground

16 geological formation for gas storage.

17 (220 ILCS 30/13); Electric Supplier Act; electric

18 cooperatives; for general purposes.

19 (220 ILCS 55/3); Telegraph Act; telegraph companies; for

20 telegraph lines.

21 (220 ILCS 65/4); Telephone Company Act; telecommunications

22 carriers; for telephone company purposes.

23 (225 ILCS 435/23); Ferries Act; ferry operators; for a landing,

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1 ferryhouse, or approach.

2 (225 ILCS 440/9); Highway Advertising Control Act of 1971;

3 Department of Transportation; for removal of signs

4 adjacent to highways.

5 (230 ILCS 10/7.3a); Illinois Gambling Act; City of Chicago; for

6 construction of gambling facilities.

7 (310 ILCS 5/6 and 5/38); State Housing Act; housing

8 corporations; for general purposes.

9 (310 ILCS 10/8.3); Housing Authorities Act; housing

10 authorities; for general purposes.

11 (310 ILCS 10/8.15); Housing Authorities Act; housing

12 authorities; for implementation of conservation plans and

13 demolition.

14 (310 ILCS 10/9); Housing Authorities Act; housing authorities;

15 for general purposes.

16 (310 ILCS 20/5); Housing Development and Construction Act;

17 housing authorities; for development or redevelopment.

18 (310 ILCS 35/2); House Relocation Act; political subdivisions

19 and municipal corporations; for relocation of dwellings

20 for highway construction.

21 (315 ILCS 5/14); Blighted Areas Redevelopment Act of 1947; land

22 clearance commissions; for redevelopment projects.

23 (315 ILCS 10/5); Blighted Vacant Areas Development Act of 1949;

24 State of Illinois; for housing development.

25 (315 ILCS 20/9 and 20/42); Neighborhood Redevelopment

26 Corporation Law; neighborhood redevelopment corporations;

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1 for general purposes.

2 (315 ILCS 25/4 and 25/6); Urban Community Conservation Act;

3 municipal conservation boards; for conservation areas.

4 (315 ILCS 30/12); Urban Renewal Consolidation Act of 1961;

5 municipal departments of urban renewal; for blighted area

6 redevelopment projects.

7 (315 ILCS 30/20 and 30/22); Urban Renewal Consolidation Act of

8 1961; municipal departments of urban renewal; for

9 implementing conservation areas.

10 (315 ILCS 30/24); Urban Renewal Consolidation Act of 1961;

11 municipal departments of urban renewal; for general

12 purposes.

13 (415 ILCS 95/6); Junkyard Act; Department of Transportation;

14 for junkyards or scrap processing facilities.

15 (420 ILCS 35/1); Radioactive Waste Storage Act; Illinois

16 Emergency Management Agency; for radioactive by-product

17 and waste storage.

18 (Source: P.A. 94-1055, eff. 1-1-07.)

19 Section 85. The Payday Loan Reform Act is amended by

20 changing Section 3-5 as follows:

21 (815 ILCS 122/3-5)

22 Sec. 3-5. Licensure.

23 (a) A license to make a payday loan shall state the

24 address, including city and state, at which the business is to

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1 be conducted and shall state fully the name of the licensee.

2 The license shall be conspicuously posted in the place of

3 business of the licensee and shall not be transferable or

4 assignable.

5 (b) An application for a license shall be in writing and in

6 a form prescribed by the Secretary. The Secretary may not issue

7 a payday loan license unless and until the following findings

8 are made:

9 (1) that the financial responsibility, experience,

10 character, and general fitness of the applicant are such as

11 to command the confidence of the public and to warrant the

12 belief that the business will be operated lawfully and

13 fairly and within the provisions and purposes of this Act;

14 and

15 (2) that the applicant has submitted such other

16 information as the Secretary may deem necessary.

17 (c) A license shall be issued for no longer than one year,

18 and no renewal of a license may be provided if a licensee has

19 substantially violated this Act and has not cured the violation

20 to the satisfaction of the Department.

21 (d) A licensee shall appoint, in writing, the Secretary as

22 attorney-in-fact upon whom all lawful process against the

23 licensee may be served with the same legal force and validity

24 as if served on the licensee. A copy of the written

25 appointment, duly certified, shall be filed in the office of

26 the Secretary, and a copy thereof certified by the Secretary

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1 shall be sufficient evidence to subject a licensee to

2 jurisdiction in a court of law. This appointment shall remain

3 in effect while any liability remains outstanding in this State

4 against the licensee. When summons is served upon the Secretary

5 as attorney-in-fact for a licensee, the Secretary shall

6 immediately notify the licensee by registered mail, enclosing

7 the summons and specifying the hour and day of service.

8 (e) A licensee must pay an annual fee of $1,000. In

9 addition to the license fee, the reasonable expense of any

10 examination or hearing by the Secretary under any provisions of

11 this Act shall be borne by the licensee. If a licensee fails to

12 renew its license by December 31, its license shall

13 automatically expire; however, the Secretary, in his or her

14 discretion, may reinstate an expired license upon:

15 (1) payment of the annual fee within 30 days of the

16 date of expiration; and

17 (2) proof of good cause for failure to renew.

18 (f) Not more than one place of business shall be maintained

19 under the same license, but the Secretary may issue more than

20 one license to the same licensee upon compliance with all the

21 provisions of this Act governing issuance of a single license.

22 The location, except those locations already in existence as of

23 June 1, 2005, may not be within one mile of a horse race track

24 subject to the Illinois Horse Racing Act of 1975, within one

25 mile of a facility at which gambling is conducted under the

26 Illinois~~Riverboat~~ Gambling Act, within one mile of the

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1 location at which a riverboat subject to theIllinois ~~Riverboat~~

2 Gambling Act docks, or within one mile of any State of Illinois

3 or United States military base or naval installation.

4 (g) No licensee shall conduct the business of making loans

5 under this Act within any office, suite, room, or place of

6 business in which (1) any loans are offered or made under the

7 Consumer Installment Loan Act other than title secured loans as

8 defined in subsection (a) of Section 15 of the Consumer

9 Installment Loan Act and governed by Title 38, Section 110.330

10 of the Illinois Administrative Code or (2) any other business

11 is solicited or engaged in unless the other business is

12 licensed by the Department or, in the opinion of the Secretary,

13 the other business would not be contrary to the best interests

14 of consumers and is authorized by the Secretary in writing.

15 (g-5) Notwithstanding subsection (g) of this Section, a

16 licensee may obtain a license under the Consumer Installment

17 Loan Act (CILA) for the exclusive purpose and use of making

18 title secured loans, as defined in subsection (a) of Section 15

19 of CILA and governed by Title 38, Section 110.300 of the

20 Illinois Administrative Code. A licensee may continue to

21 service Consumer Installment Loan Act loans that were

22 outstanding as of the effective date of this amendatory Act of

23 the 96th General Assembly.

24 (h) The Secretary shall maintain a list of licensees that

25 shall be available to interested consumers and lenders and the

26 public. The Secretary shall maintain a toll-free number whereby

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1 consumers may obtain information about licensees. The

2 Secretary shall also establish a complaint process under which

3 an aggrieved consumer may file a complaint against a licensee

4 or non-licensee who violates any provision of this Act.

5 (Source: P.A. 96-936, eff. 3-21-11.)

6 Section 90. The Travel Promotion Consumer Protection Act is

7 amended by changing Section 2 as follows:

8 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

9 Sec. 2. Definitions.

10 (a) "Travel promoter" means a person, including a tour

11 operator, who sells, provides, furnishes, contracts for,

12 arranges or advertises that he or she will arrange wholesale or

13 retail transportation by air, land, sea or navigable stream,

14 either separately or in conjunction with other services.

15 "Travel promoter" does not include (1) an air carrier; (2) a

16 sea carrier; (3) an officially appointed agent of an air

17 carrier who is a member in good standing of the Airline

18 Reporting Corporation; (4) a travel promoter who has in force

19 $1,000,000 or more of liability insurance coverage for

20 professional errors and omissions and a surety bond or

21 equivalent surety in the amount of $100,000 or more for the

22 benefit of consumers in the event of a bankruptcy on the part

23 of the travel promoter; or (5) a riverboat subject to

24 regulation under theIllinois ~~Riverboat~~ Gambling Act.

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1 (b) "Advertise" means to make any representation in the

2 solicitation of passengers and includes communication with

3 other members of the same partnership, corporation, joint

4 venture, association, organization, group or other entity.

5 (c) "Passenger" means a person on whose behalf money or

6 other consideration has been given or is to be given to

7 another, including another member of the same partnership,

8 corporation, joint venture, association, organization, group

9 or other entity, for travel.

10 (d) "Ticket or voucher" means a writing or combination of

11 writings which is itself good and sufficient to obtain

12 transportation and other services for which the passenger has

13 contracted.

14 (Source: P.A. 91-357, eff. 7-29-99.)

15 Section 997. Severability. The provisions of this Act are

16 severable under Section 1.31 of the Statute on Statutes.

17 Section 999. Effective date. This Act takes effect

18 September 1, 2015.

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1 INDEX

2 Statutes amended in order of appearance

3 5 ILCS 430/5-45

4 5 ILCS 430/20-10

5 20 ILCS 301/5-20

6 20 ILCS 1605/9.1

7 20 ILCS 2505/2505-305 was 20 ILCS 2505/39b15.1

8 30 ILCS 105/5.866 new

9 30 ILCS 105/5d from Ch. 127, par. 141d

10 30 ILCS 105/6z-45

11 30 ILCS 105/6z-101 new

12 30 ILCS 330/2 from Ch. 127, par. 652

13 30 ILCS 330/3 from Ch. 127, par. 653

14 35 ILCS 5/201 from Ch. 120, par. 2-201

15 70 ILCS 1825/5.1 from Ch. 19, par. 255.1

16 205 ILCS 670/12.5

17 230 ILCS 5/1.2

18 230 ILCS 5/3.11 from Ch. 8, par. 37-3.11

19 230 ILCS 5/3.12 from Ch. 8, par. 37-3.12

20 230 ILCS 5/3.31 new

21 230 ILCS 5/3.32 new

22 230 ILCS 5/3.33 new

23 230 ILCS 5/3.35 new

24 230 ILCS 5/3.36 new

25 230 ILCS 5/6 from Ch. 8, par. 37-6

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1 230 ILCS 5/9 from Ch. 8, par. 37-9

2 230 ILCS 5/15 from Ch. 8, par. 37-15

3 230 ILCS 5/19 from Ch. 8, par. 37-19

4 230 ILCS 5/20 from Ch. 8, par. 37-20

5 230 ILCS 5/21 from Ch. 8, par. 37-21

6 230 ILCS 5/24 from Ch. 8, par. 37-24

7 230 ILCS 5/25 from Ch. 8, par. 37-25

8 230 ILCS 5/26 from Ch. 8, par. 37-26

9 230 ILCS 5/27 from Ch. 8, par. 37-27

10 230 ILCS 5/30 from Ch. 8, par. 37-30

11 230 ILCS 5/30.5

12 230 ILCS 5/31 from Ch. 8, par. 37-31

13 230 ILCS 5/31.1 from Ch. 8, par. 37-31.1

14 230 ILCS 5/32.1

15 230 ILCS 5/34.3 new

16 230 ILCS 5/36 from Ch. 8, par. 37-36

17 230 ILCS 5/39.2 new

18 230 ILCS 5/40 from Ch. 8, par. 37-40

19 230 ILCS 5/54

20 230 ILCS 5/54.75

21 230 ILCS 5/56 new

22 230 ILCS 10/1 from Ch. 120, par. 2401

23 230 ILCS 10/2 from Ch. 120, par. 2402

24 230 ILCS 10/3 from Ch. 120, par. 2403

25 230 ILCS 10/4 from Ch. 120, par. 2404

26 230 ILCS 10/5 from Ch. 120, par. 2405

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1 230 ILCS 10/5.1 from Ch. 120, par. 2405.1

2 230 ILCS 10/5.3 new

3 230 ILCS 10/6 from Ch. 120, par. 2406

4 230 ILCS 10/7 from Ch. 120, par. 2407

5 230 ILCS 10/7.3

6 230 ILCS 10/7.3a new

7 230 ILCS 10/7.4

8 230 ILCS 10/7.5

9 230 ILCS 10/7.7 new

10 230 ILCS 10/7.8 new

11 230 ILCS 10/7.9 new

12 230 ILCS 10/7.10 new

13 230 ILCS 10/7.11 new

14 230 ILCS 10/7.12 new

15 230 ILCS 10/8 from Ch. 120, par. 2408

16 230 ILCS 10/9 from Ch. 120, par. 2409

17 230 ILCS 10/11 from Ch. 120, par. 2411

18 230 ILCS 10/11.1 from Ch. 120, par. 2411.1

19 230 ILCS 10/12 from Ch. 120, par. 2412

20 230 ILCS 10/13 from Ch. 120, par. 2413

21 230 ILCS 10/14 from Ch. 120, par. 2414

22 230 ILCS 10/15 from Ch. 120, par. 2415

23 230 ILCS 10/17.1 from Ch. 120, par. 2417.1

24 230 ILCS 10/18 from Ch. 120, par. 2418

25 230 ILCS 10/18.1

26 230 ILCS 10/18.2 new

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