Sen. Terry Link
Filed: 3/6/2013
 
 


 




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1
AMENDMENT TO SENATE BILL 1739




2 AMENDMENT NO. ______. Amend Senate Bill 1739 by replacing 
3everything after the enacting clause with the following:


4
"ARTICLE 1.


5 Section 1-1. Short title. This Article may be cited as the 
6Chicago Casino Development Authority Act. References in this 
7Article to "this Act" mean this Article.


8 Section 1-5. Definitions.
As used in this Act: 
9 "Authority" means the Chicago Casino Development Authority 
10created by this
Act.

11 "Casino" means one temporary land-based or water-based 
12facility and one permanent land-based or water-based facility 
13and airport gaming locations pursuant to Section 1-67 of this 
14Act at which lawful gambling is authorized
and licensed as 
15provided in the Illinois Gambling Act.

 
 
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1 "Casino Board" means the board appointed pursuant to this 
2Act to govern and control
the Authority.
3 "Casino management contract" means a legally binding

4agreement between the Authority and a casino operator licensee 
5to operate or manage a casino.
6 "Casino operator licensee" means any person or entity 
7selected by the Authority and approved and licensed by the 
8Gaming Board to manage and operate a casino within the City of 
9Chicago pursuant to a casino management contract.
10 "City" means the City of Chicago.

11 "Executive director" means the person appointed by the 
12Casino Board to oversee the
daily operations of the Authority.

13 "Gaming Board" means the Illinois Gaming Board created by 
14the Illinois Gambling Act.

15 "Mayor" means the Mayor of the City.



16 Section 1-12. Creation of the Authority. There is hereby 
17created a political subdivision, unit of local government with 
18only the powers authorized by law, body politic, and municipal 
19corporation, by the name and style of the Chicago Casino 
20Development Authority.

21 Section 1-13. Duties of the Authority. It shall be the duty 
22of the Authority, as an owners licensee under the Illinois 
23Gambling Act, to promote and maintain a casino in the City. The 
24Authority shall own, acquire, construct, lease, equip, and 
 
 
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1maintain grounds, buildings, and facilities for that purpose. 
2However, the Authority shall contract with a casino operator 
3licensee to manage and operate the casino and in no event shall 
4the Authority or City manage or operate the casino. The 
5Authority may contract pursuant to the procedures set forth in 
6Section 1-115 with other third parties in order to fulfill its 
7purpose. The Authority is responsible for the payment of any 
8fees required of a casino operator under subsection (a) of 
9Section 7.8 of the Illinois Gambling Act if the casino operator 
10licensee is late in paying any such fees. The Authority is 
11granted all rights and powers necessary to perform such duties. 
12Subject to the provisions of this Act, the Authority and casino 
13operator licensee are subject to the Illinois Gambling Act and 
14all of the rules of the Gaming Board, which shall be applied to 
15the Authority and the casino operator licensee in a manner 
16consistent with that of other owners licensees under the 
17Illinois Gambling Act.

18 Section 1-15. Casino Board. 
19 (a) The governing and administrative powers of the 
20Authority shall be vested
in a body known as the Chicago Casino 
21Development Board. The Casino Board shall
consist of 5 members 
22appointed by the Mayor. One of these
members shall be 
23designated
by the Mayor to serve as chairperson.
All of the 
24members
appointed by the Mayor shall be residents of the City.
25 Each Casino Board appointee shall be subject to a 
 
 
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1preliminary background investigation completed by the Gaming 
2Board within 30 days after the appointee's submission of his or 
3her application to the Gaming Board. If the Gaming Board 
4determines that there is a substantial likelihood that it will 
5not find the appointee to be suitable to serve on the Casino 
6Board (applying similar standards for suitability to the 
7appointee as the Gaming Board would apply to a member of a 
8board of directors of a corporate owners licensee under the 
9Illinois Gambling Act), then the Gaming Board shall provide a 
10written notice of such determination to the appointee and the 
11Corporation Counsel of the City. If no such notice is delivered 
12with respect to a particular appointee, then commencing on the 
1331st day following the date of the appointee's submission of 
14his or her application to the Gaming Board, the appointee shall 
15be deemed an acting member of the Casino Board and shall 
16participate as a Casino Board member.
17 Each appointee shall be subject to a full background 
18investigation and final approval by the Gaming Board prior to 
19the opening of the casino. The Gaming Board shall complete its 
20full background investigation of the Casino Board appointee 
21within 3 months after the date of the appointee's submission of 
22his or her application to the Gaming Board. If the Gaming Board 
23does not complete its background investigation within the 
243-month period, then the Gaming Board shall give a written 
25explanation to the appointee, as well as the Mayor, the 
26Governor, the President of the Senate, and the Speaker of the 
 
 
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1House of Representatives, as to why it has not reached a final 
2determination and set forth a reasonable time when such 
3determination shall be made.


4 (b) Casino Board members shall receive $300 for each day 
5the Authority meets and
shall be entitled to reimbursement of 
6reasonable expenses incurred in the
performance of their 
7official duties. A Casino Board member who serves in the office

8of secretary-treasurer may also receive compensation for 
9services provided
as that officer.


10 Section 1-20. Terms of appointments; resignation and 
11removal. 
12 (a) The Mayor shall appoint 2 members of the Casino Board 
13for an initial term expiring July 1 of the year following final 
14approval by the Gaming Board, 2 members for an initial term 
15expiring July 1 three years following final approval by the 
16Gaming Board, and one member for an initial term expiring July 
171 five years following final approval by the Gaming Board.

18 (b) All successors shall be appointed by the Mayor to hold 
19office for a term of 5 years from the first day of July of the 
20year in which they are appointed, except in the case of an 
21appointment to fill a vacancy. Each member, including the 
22chairperson, shall hold office until the expiration of his or 
23her term and until his or her successor is appointed and 
24qualified. Nothing shall preclude a member from serving 
25consecutive terms. Any member may resign from office, to take 
 
 
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1effect when a successor has been appointed and qualified. A 
2vacancy in office shall occur in the case of a member's death 
3or indictment, conviction, or plea of guilty to a felony. A 
4vacancy shall be filled for the unexpired term by the Mayor 
5subject to the approval of the Gaming Board as provided in this 
6Section.

7 (c) Members of the Casino Board shall serve at the pleasure 
8of the Mayor. The Mayor or the Gaming Board may remove any 
9member of the Casino Board upon a finding of incompetence, 
10neglect of duty, or misfeasance or malfeasance in office or for 
11a violation of this Act. The Gaming Board may remove any member 
12of the Casino Board for any violation of the Illinois Gambling 
13Act or the rules and regulations of the Gaming Board.

14 (d) No member of the Casino Board shall engage in any 
15political activity. For the purpose of this Section, "political 
16activity" means any activity in support of or in connection 
17with any campaign for federal, State, or local elective office 
18or any political organization, but does not include activities 
19(i) relating to the support or opposition of any executive, 
20legislative, or administrative action, as those terms are 
21defined in Section 2 of the Lobbyist Registration Act, (ii) 
22relating to collective bargaining, or (iii) that are otherwise 
23in furtherance of the person's official duties or governmental 
24and public service functions.


25 Section 1-25. Organization of Casino Board; meetings. 
 
 
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1After appointment by the Mayor, the Casino Board shall organize 
2for the transaction of business, provided that the Casino Board 
3shall not take any formal action until after the Gaming Board 
4has completed its preliminary background investigation of at 
5least a quorum of the Casino Board as provided in subsection 
6(a) of Section 1-15. The Casino Board shall prescribe the time 
7and place for meetings, the manner in which special meetings 
8may be called, and the notice that must be given to members. 
9All actions and meetings of the Casino Board shall be subject 
10to the provisions of the Open Meetings Act. Three members of 
11the Casino Board shall constitute a quorum. All substantive 
12action of the Casino Board shall be by resolution with an 
13affirmative vote of a majority of the members.


14 Section 1-30. Executive director; officers. 
15 (a) The Casino Board shall appoint
an executive director, 
16who shall be the chief executive officer of the
Authority.
17 The executive director shall be subject to a preliminary 
18background investigation to be completed by the Gaming Board 
19within 30 days after the executive director's submission of his 
20or her application to the Gaming Board. If the Gaming Board 
21determines that there is a substantial likelihood that it will 
22not find the executive director to be suitable to serve in that 
23position (applying similar standards for suitability as the 
24Gaming Board would apply to a member of a board of directors of 
25a corporate owners licensee under the Illinois Gambling Act), 
 
 
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1then the Gaming Board shall provide a written notice of such 
2determination to the appointee and the Corporation Counsel of 
3the City. If no such notice is delivered, then commencing on 
4the 31st day following the date of the executive director's 
5submission of his or her application to the Gaming Board, the 
6executive director shall commence all duties as the acting 
7executive director of the Authority.
8 The executive director shall be subject to a full 
9background investigation and final approval by the Gaming Board 
10prior to the opening of the casino. The Gaming Board shall 
11complete its full background investigation of the executive 
12director within 3 months after the date of the executive 
13director's submission of his or her application to the Gaming 
14Board. If the Gaming Board does not complete its background 
15investigation within the 3-month period, then the Gaming Board 
16shall give a written explanation to the appointee, as well as 
17the Mayor, the Governor, the President of the Senate, and the 
18Speaker of the House of Representatives, as to why it has not 
19reached a final determination and set forth a reasonable time 
20when such determination shall be made.

21 (b) The Casino Board shall fix the compensation of the 
22executive director.
Subject to the general control of the 
23Casino Board, the executive director shall be
responsible for 
24the management of the business, properties, and
employees of 
25the Authority. The executive director shall direct the

26enforcement of all resolutions, rules, and regulations of the 
 
 
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1Casino Board, and shall
perform such other duties as may be 
2prescribed from
time to time by the Casino Board. All employees 
3and independent contractors,
consultants, engineers, 
4architects, accountants, attorneys, financial experts,

5construction experts and personnel, superintendents, managers, 
6and other
personnel appointed or employed pursuant to this Act 
7shall
report to the executive director. In addition to any 
8other duties set forth in
this Act, the executive director 
9shall do or shall delegate to an employee or agent of the 
10Authority to do all of the following:


11  (1) Direct and supervise the administrative affairs 
12 and activities of the
Authority in accordance with its 
13 rules, regulations, and policies.


14  (2) Attend meetings of the Casino Board.


15  (3) Keep minutes of all proceedings of the Casino 
16 Board.


17  (4) Approve all accounts for salaries, per diem 
18 payments, and allowable
expenses of the Casino Board and 
19 its employees and consultants.


20  (5) Report and make recommendations to the Casino Board 
21 concerning the terms and
conditions of any casino 
22 management contract.


23  (6) Perform any other duty that the Casino Board 
24 requires for carrying out the
provisions of this Act.


25  (7) Devote his or her full time to the duties of the 
26 office and not hold
any other office or employment.

 
 
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1 (c) The Casino Board may select a secretary-treasurer and 
2other officers to hold office at the pleasure of the Casino 
3Board. The Casino Board
shall fix the duties of such officers.


4 Section 1-31. General rights and powers of the Authority. 
5 (a) In addition to the duties and powers set forth in this 
6Act, the Authority shall have the following rights and powers:
7  (1) Adopt and alter an official seal.
8  (2) Establish and change its fiscal year.
9  (3) Sue and be sued, plead and be impleaded, all in its 
10 own name, and agree to binding arbitration of any dispute 
11 to which it is a party. 
12  (4) Adopt, amend, and repeal bylaws, rules, and 
13 regulations consistent with the furtherance of the powers 
14 and duties provided for.
15  (5) Maintain its principal office within the City and 
16 such other offices as the Casino Board may designate.
17  (6) Select locations in the City for a temporary and a 
18 permanent casino.
19  (7) Subject to the bidding procedures of Section 1-115 
20 of this Act, retain or employ, either as regular employees 
21 or independent contractors, consultants, engineers, 
22 architects, accountants, attorneys, financial experts, 
23 construction experts and personnel, superintendents, 
24 managers and other professional personnel, and such other 
25 personnel as may be necessary in the judgment of the Casino 
 
 
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1 Board, and fix their compensation; however, employees of 
2 the Authority shall be hired pursuant to and in accordance 
3 with the rules and policies the Authority may adopt.
4  (8) Pursuant to Section 1-115 of this Act, own, 
5 acquire, construct, equip, lease, operate, manage, and 
6 maintain grounds, buildings, and facilities to carry out 
7 its corporate purposes and duties.
8  (9) Pursuant to Section 1-115, and subject to the 
9 oversight, review, and approval of the Gaming Board, enter 
10 into, revoke, and modify contracts in accordance with the 
11 rules of the Gaming Board as consistently applied to all 
12 owners licensees under the Illinois Gambling Act, provided 
13 that the Authority may enter into contracts for the design, 
14 construction, and outfitting of a temporary casino prior to 
15 the Gaming Board's final approval of the Authority's 
16 executive director and the members of the Casino Board and 
17 prior to the Gaming Board's issuance of the Authority's 
18 owners license. In no event, however, shall the Authority 
19 open a casino until after the Gaming Board has finally 
20 approved the Authority's executive director and the 
21 members of the Casino Board and the Gaming Board has issued 
22 the Authority's owners license and the casino operator's 
23 casino operator license.
24  (10) Enter into a casino management contract subject to 
25 the provisions of Section 1-45 of this Act.
26  (11) Develop, or cause to be developed by a third 
 
 
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1 party, a master plan for the design, planning, and 
2 development of a casino.
3  (12) Negotiate and enter into intergovernmental 
4 agreements with the State and its agencies, the City, and 
5 other units of local government, in furtherance of the 
6 powers and duties of the Casino Board. 
7  (13) Receive and disburse funds for its own corporate 
8 purposes or as otherwise specified in this Act.
9  (14) Borrow money from any source, public or private, 
10 for any corporate purpose, including, without limitation, 
11 working capital for its operations, reserve funds, or 
12 payment of interest, and to mortgage, pledge, or otherwise 
13 encumber the property or funds of the Authority and to 
14 contract with or engage the services of any person in 
15 connection with any financing, including financial 
16 institutions, issuers of letters of credit, or insurers and 
17 enter into reimbursement agreements with this person or 
18 entity which may be secured as if money were borrowed from 
19 the person or entity.
20  (15) Issue bonds as provided for under this Act.
21  (16) Receive and accept from any source, private or 
22 public, contributions, gifts, or grants of money or 
23 property to the Authority.
24  (17) Provide for the insurance of any property, 
25 operations, officers, members, agents, or employees of the 
26 Authority against any risk or hazard, to self-insure or 
 
 
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1 participate in joint self-insurance pools or entities to 
2 insure against such risk or hazard, and to provide for the 
3 indemnification of its officers, members, employees, 
4 contractors, or agents against any and all risks.
5  (18) Exercise all the corporate powers granted 
6 Illinois corporations under the Business Corporation Act 
7 of 1983, except to the extent that powers are inconsistent 
8 with those of a body politic and municipal corporation.
9  (19) Do all things necessary or convenient to carry out 
10 the powers granted by this Act.
11 (b) The Casino Board shall comply with all applicable legal 
12requirements imposed on other owners licensees to conduct all 
13background investigations required under the Illinois Gambling 
14Act and the rules of the Gaming Board. This requirement shall 
15also extend to senior legal, financial, and administrative 
16staff of the Authority.

17 Section 1-32. Ethical conduct.
18 (a) Casino Board members and employees of the Authority 
19must carry out their duties and responsibilities in such a 
20manner as to promote and preserve public trust and confidence 
21in the integrity and conduct of gaming.
22 (b) Except as may be required in the conduct of official 
23duties, Casino Board members and employees of the Authority 
24shall not engage in gambling on any riverboat, in any casino, 
25or in an electronic gaming facility licensed by the Illinois 
 
 
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1Gaming Board or engage in legalized gambling in any 
2establishment identified by Gaming Board action that, in the 
3judgment of the Gaming Board, could represent a potential for a 
4conflict of interest. 
5 (c) A Casino Board member or employee of the Authority 
6shall not use or attempt to use his or her official position to 
7secure or attempt to secure any privilege, advantage, favor, or 
8influence for himself or herself or others. 
9 (d) Casino Board members and employees of the Authority 
10shall not hold or pursue employment, office, position, 
11business, or occupation that may conflict with his or her 
12official duties. Employees may engage in other gainful 
13employment so long as that employment does not interfere or 
14conflict with their duties. Such employment must be disclosed 
15to the executive director and approved by the Casino Board. 
16 (e) Casino Board members, employees of the Authority, and 
17elected officials and employees of the City may not engage in 
18employment, communications, or any activity identified by the 
19Casino Board or Gaming Board that, in the judgment of either 
20entity, could represent the potential for or the appearance of 
21a conflict of interest. 
22 (f) Casino Board members, employees of the Authority, and 
23elected officials and employees of the City may not have a 
24financial interest, directly or indirectly, in his or her own 
25name or in the name of any other person, partnership, 
26association, trust, corporation, or other entity in any 
 
 
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1contract or subcontract for the performance of any work for the 
2Authority. This prohibition shall extend to the holding or 
3acquisition of an interest in any entity identified by the 
4Casino Board or the Gaming Board that, in the judgment of 
5either entity, could represent the potential for or the 
6appearance of a financial interest. The holding or acquisition 
7of an interest in such entities through an indirect means, such 
8as through a mutual fund, shall not be prohibited, except that 
9the Gaming Board may identify specific investments or funds 
10that, in its judgment, are so influenced by gaming holdings as 
11to represent the potential for or the appearance of a conflict 
12of interest. 
13 (g) Casino Board members, employees of the Authority, and 
14elected officials and employees of the City may not accept any 
15gift, gratuity, service, compensation, travel, lodging, or 
16thing of value, with the exception of unsolicited items of an 
17incidental nature, from any person, corporation, or entity 
18doing business with the Authority. 
19 (h) No Casino Board member, employee of the Authority, or 
20elected official or employee of the City may, during employment 
21or within a period of 2 years immediately after termination of 
22employment, knowingly accept employment or receive 
23compensation or fees for services from a person or entity, or 
24its parent or affiliate, that has engaged in business with the 
25Authority that resulted in contracts with an aggregate value of 
26at least $25,000 or if that Casino Board member or employee has 
 
 
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1made a decision that directly applied to the person or entity, 
2or its parent or affiliate. 
3 (i) A spouse, child, or parent of a Casino Board member, 
4employee of the Authority, or elected official or employee of 
5the City may not have a financial interest, directly or 
6indirectly, in his or her own name or in the name of any other 
7person, partnership, association, trust, corporation, or other 
8entity in any contract or subcontract for the performance of 
9any work for the Authority. This prohibition shall extend to 
10the holding or acquisition of an interest in any entity 
11identified by the Casino Board or Gaming Board that, in the 
12judgment of either entity, could represent the potential for or 
13the appearance of a conflict of interest. The holding or 
14acquisition of an interest in such entities through an indirect 
15means, such as through a mutual fund, shall not be prohibited, 
16expect that the Gaming Board may identify specific investments 
17or funds that, in its judgment, are so influenced by gaming 
18holdings as to represent the potential for or the appearance of 
19a conflict of interest. 
20 (j) A spouse, child, or parent of a Casino Board member, 
21employee of the Authority, or elected official or employee of 
22the City may not accept any gift, gratuity, service, 
23compensation, travel, lodging, or thing of value, with the 
24exception of unsolicited items of an incidental nature, from 
25any person, corporation, or entity doing business with the 
26Authority. 
 
 
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1 (k) A spouse, child, or parent of a Casino Board member, 
2employee of the Authority, or elected official or employee of 
3the City may not, while the person is a Board member or 
4employee of the spouse or within a period of 2 years 
5immediately after termination of employment, knowingly accept 
6employment or receive compensation or fees for services from a 
7person or entity, or its parent or affiliate, that has engaged 
8in business with the Authority that resulted in contracts with 
9an aggregate value of at least $25,000 or if that Casino Board 
10member, employee, or elected official or employee of the City 
11has made a decision that directly applied to the person or 
12entity, or its parent or affiliate. 
13 (l) No Casino Board member, employee of the Authority, or 
14elected official or employee of the City may attempt, in any 
15way, to influence any person or corporation doing business with 
16the Authority or any officer, agent, or employee thereof to 
17hire or contract with any person or corporation for any 
18compensated work. 
19 (m) No Casino Board member, employee of the Authority, or 
20elected official or employee of the City shall use or attempt 
21to use his or her official position to secure, or attempt to 
22secure, any privilege, advantage, favor, or influence for 
23himself or herself or others. No Casino Board member, employee 
24of the Authority, or elected official or employee of the City 
25shall, within one year immediately preceding appointment by the 
26Mayor or employment, have been employed or received 
 
 
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1compensation or fees for services from a person or entity, or 
2its parent or affiliate, that has engaged in business with the 
3Casino Board, a licensee under this Act, or a licensee under 
4the Illinois Gambling Act.
5 (n) Any communication between an elected official of the 
6City and any applicant for or party to a casino management 
7contract with the Authority, or an officer, director, or 
8employee thereof, concerning any matter relating in any way to 
9gaming or the Authority shall be disclosed to the Casino Board 
10and the Gaming Board. Such disclosure shall be in writing by 
11the official within 30 days after the communication and shall 
12be filed with the Casino Board. Disclosure must consist of the 
13date of the communication, the identity and job title of the 
14person with whom the communication was made, a brief summary of 
15the communication, the action requested or recommended, all 
16responses made, the identity and job title of the person making 
17the response, and any other pertinent information.
18 Public disclosure of the written summary provided to the 
19Casino Board and the Gaming Board shall be subject to the 
20exemptions provided under Section 7 of the Freedom of 
21Information Act. 
22 This subsection (n) shall not apply to communications 
23regarding traffic, law enforcement, security, environmental 
24issues, City services, transportation, or other routine 
25matters concerning the ordinary operations of the casino. 
26 (o) For purposes of this Section:
 
 
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1 "Ordinary operations" means operations relating to the 
2casino facility other than the conduct of gambling activities.
3 "Routine matters" includes the application for, issuance, 
4renewal, and other processes associated with City permits and 
5licenses.
6 "Employee of the City" means only those employees of the 
7City who provide services to the Authority or otherwise 
8influence the decisions of the Authority or the Casino Board.
9 (p) Any Board member or employee of the Authority who 
10violates any provision of this Section is guilty of a Class 4 
11felony.



12 Section 1-45. Casino management contracts. 
13 (a) In accordance with all applicable procurement laws and 
14rules, the Casino Board shall develop and administer a 
15competitive sealed bidding process
for the
selection of a 
16potential casino operator licensee to develop or operate a 
17casino within the City.
The Casino Board shall issue one or 
18more requests for proposals. The Casino Board may
establish 
19minimum financial and investment requirements to determine the

20eligibility of persons to respond to the Casino Board's 
21requests for proposal, and may
establish and consider such 
22other criteria as it deems appropriate. The Casino Board
may 
23impose a reasonable fee upon persons who respond to requests 
24for proposal, in order to
reimburse the Casino Board for its 
25costs in preparing and issuing the requests and
reviewing the 
 
 
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1proposals. At least 15 days prior to the commencement of the 
2competitive bidding process, the Gaming Board shall be given an 
3opportunity to review the competitive bidding process 
4established by the Casino Board. During the competitive bidding 
5process, the Casino Board shall keep the Gaming Board apprised 
6of the process and the responses received in connection with 
7the Casino Board's request for proposals.

8 (b) Within 5 business days after the time limit for 
9submitting bids and proposals has passed, the Casino Board 
10shall make all bids and proposals public, provided, however, 
11the Casino Board shall not be required to disclose any 
12information which would be exempt from disclosure under Section 
137 of the Freedom of Information Act. Thereafter, the Casino 
14Board shall evaluate the responses to its requests for proposal 
15and
the ability of all persons or entities responding to its 
16requests for proposal
to meet the requirements of this Act and 
17any relevant provisions of the Illinois Gambling Act and to 
18undertake and perform the
obligations set forth in its requests 
19for proposal.

20 (c) After reviewing proposals, the Casino Board shall enter 
21into a casino management contract authorizing the operation of 
22a casino. The casino operator shall be subject to a background 
23investigation and approval by the Gaming Board. The Gaming 
24Board shall complete its background investigation and approval 
25of the casino operator within 6 months after the date that the 
26proposed casino operator submits its application to the Gaming 
 
 
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1Board. If the Gaming Board does not complete its background 
2investigation and approval within the 6-month period, then the 
3Gaming Board shall give a written explanation to the proposed 
4casino operator and the chief legal officer of the Authority as 
5to why it has not reached a final determination. The Gaming 
6Board shall then complete its investigation within 3 months 
7after giving such written explanation. Validity of the casino 
8management contract is contingent upon the issuance of a casino 
9operator license to the successful bidder. If the Gaming Board 
10grants a casino operator license, the Casino Board shall 
11transmit a copy of the executed casino management contract to 
12the Gaming Board.
13 (d) After (1) the Authority has been issued a casino 
14license, (2) the Gaming Board has issued a casino operator 
15license, and (3) the Gaming Board has approved the members of 
16the Casino Board, the Authority may conduct gaming operations 
17at a temporary facility for no longer than 24 months after 
18gaming operations begin. The Gaming Board may, after holding a 
19public hearing, grant an extension so long as a permanent 
20facility is not operational and the Authority is working in 
21good faith to complete the permanent facility. The Gaming Board 
22may grant additional extensions following further public 
23hearings. Each extension may be for a period of no longer than 
246 months. 
25 (e) Fifty percent of any initial consideration received by 
26the Authority that was paid as an inducement pursuant to a bid 
 
 
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1for a casino management contract or an executed casino 
2management contract must be transmitted to the State and 
3deposited into the Gaming Facilities Fee Revenue Fund. The 
4initial consideration shall not include (1) any amounts paid to 
5the Authority as reimbursement for its costs in preparing or 
6issuing the requests for proposals and reviewing the proposals 
7or (2) any amounts loaned to the Authority or paid by an entity 
8on behalf of the Authority for the design, construction, 
9outfitting, or equipping of the casino, pre-opening expenses, 
10bank roll or similar expenses required to open and operate the 
11casino, or any license or per position fees imposed pursuant to 
12the Illinois Gambling Act or any other financial obligation of 
13the Authority.


14 Section 1-47. Freedom of Information Act. The Authority 
15shall be a public body as defined in the Freedom of Information 
16Act and shall be subject to the provisions of the Freedom of 
17Information Act.

18 Section 1-50. Transfer of funds.  The revenues received by 
19the Authority (other than amounts required to be paid pursuant 
20to the Illinois Gambling Act and amounts required to pay the

21operating expenses of the Authority, to pay amounts due the 
22casino operator licensee pursuant to a casino management 
23contract, to repay any borrowing of the Authority
made pursuant 
24to Section 1-31, to pay debt service on any bonds issued under

 
 
09800SB1739sam001- 23 -LRB098 10559 AMC 42403 a


1Section
1-75, and to pay any expenses in connection with the 
2issuance of such bonds
pursuant to Section 1-75 or derivative 
3products pursuant to Section 1-85) shall
be transferred
to the

4City by the Authority. Moneys transferred to the City pursuant 
5to this Section shall be expended or obligated by the City for 
6the construction and maintenance of infrastructure and for 
7related purposes within the City. Such infrastructure may 
8include, but is not limited to, roads, bridges, transit 
9infrastructure, water and sewer infrastructure, schools, 
10parks, and municipal facilities.


11 Section 1-60. Auditor General. 
12 (a) Prior to the issuance of bonds under this Act, the 
13Authority shall submit to the Auditor General a certification 
14that:
15  (1) it is legally authorized to issue bonds;
16  (2) scheduled annual payments of principal and 
17 interest on the bonds to be issued meet the requirements of 
18 Section 1-75 of this Act;
19  (3) no bond shall mature later than 30 years; and
20  (4) after payment of costs of issuance and necessary 
21 deposits to funds and accounts established with respect to 
22 debt service on the bonds, the net bond proceeds (exclusive 
23 of any proceeds to be used to refund outstanding bonds) 
24 will be used only for the purposes set forth in this Act.
25 The Authority also shall submit to the Auditor General its 
 
 
09800SB1739sam001- 24 -LRB098 10559 AMC 42403 a


1projections on revenues to be generated and pledged to 
2repayment of the bonds as scheduled and such other information 
3as the Auditor General may reasonably request.
4 The Auditor General shall examine the certifications and 
5information submitted and submit a report to the Authority and 
6the Gaming Board indicating whether the required 
7certifications, projections, and other information have been 
8submitted by the Authority and whether the assumptions 
9underlying the projections are not unreasonable in the 
10aggregate. The Auditor General shall submit the report no later 
11than 60 days after receiving the information required to be 
12submitted by the Authority.
13 The Auditor General shall submit a bill to the Authority 
14for costs associated with the examinations and report required 
15under this Section. The Authority shall reimburse in a timely 
16manner.
17 (b) The Authority shall enter into an intergovernmental 
18agreement with the Auditor General authorizing the Auditor 
19General to, every 2 years, (i) review the financial audit of 
20the Authority performed by the Authority's certified public 
21accountants, (ii) perform a management audit of the Authority, 
22and (iii) perform a management audit of the casino operator 
23licensee. The Auditor General shall provide the Authority and 
24the General Assembly with the audits and shall post on his or 
25her Internet website such portions of the audit or other 
26financial information as generally would be made publicly 
 
 
09800SB1739sam001- 25 -LRB098 10559 AMC 42403 a


1available for other owners licensees under the Illinois 
2Gambling Act. The Auditor General shall submit a bill to the 
3Authority for costs associated with the review and the audit 
4required under this Section, which costs shall not exceed 
5$100,000, and the Authority shall reimburse the Auditor General 
6for such costs in a timely manner.


7 Section 1-62. Advisory committee. An Advisory Committee is 
8established to monitor, review, and report on (1) the 
9Authority's utilization of minority-owned business enterprises 
10and female-owned business enterprises, (2) employment of 
11females, and (3) employment of minorities with regard to the 
12development and construction of the casino as authorized under 
13Section 7 of the Illinois Gambling Act. The Authority shall 
14work with the Advisory Committee in accumulating necessary 
15information for the Committee to submit reports, as necessary, 
16to the General Assembly and to the City.

17 The Committee shall consist of 9 members as provided in 
18this Section. Five members shall be selected by the Governor 
19and 4 members shall be selected by the Mayor. The Governor and 
20Mayor shall each appoint at least one current member of the 
21General Assembly. The Advisory Committee shall meet 
22periodically and shall report the information to the Mayor of 
23the City and to the General Assembly by December 31st of every 
24year.
25 The Advisory Committee shall be dissolved on the date that 
 
 
09800SB1739sam001- 26 -LRB098 10559 AMC 42403 a


1casino gambling operations are first conducted at a permanent 
2facility under the license authorized under Section 7 of the 
3Illinois Gambling Act. For the purposes of this Section, the 
4terms "female" and "minority person" have the meanings provided 
5in Section 2 of the Business Enterprise for Minorities, 
6Females, and Persons with Disabilities Act.

7 Section 1-65. Acquisition of property; eminent domain 
8proceedings. For the lawful purposes of this Act, the City may 
9acquire by eminent
domain or by condemnation proceedings in the 
10manner provided by the Eminent Domain Act, real or personal 
11property or interests in real
or personal property located in 
12the City, and the City may convey to the Authority
property so 
13acquired. The acquisition of property under this Section is

14declared to be for a public use.



15 Section 1-67. Limitations on gaming at Chicago airports.

16The Authority may conduct gaming operations in an airport under 
17the administration or control of the Chicago Department of 
18Aviation. Gaming operations may be conducted pursuant to this 
19Section so long as (i) gaming operations are conducted in a 
20secured area that is beyond the Transportation Security 
21Administration security checkpoints and only available to 
22airline passengers at least 21 years of age who are members of 
23a private club, and not to the general public, (ii) gaming 
24operations are limited to slot machines, as defined in Section 
 
 
09800SB1739sam001- 27 -LRB098 10559 AMC 42403 a


14 of the Illinois Gambling Act, and (iii) the combined number 
2of gaming positions operating in the City at the airports and 
3at the temporary and permanent casino facility does not exceed 
4the maximum number of gaming positions authorized pursuant to 
5subsection (h) of Section 7 of the Illinois Gambling Act. 
6Gaming operations at an airport are subject to all applicable 
7laws and rules that apply to any other gaming facility under 
8this Act or the Illinois Gambling Act.

9 Section 1-70. Local regulation. The casino facilities and 
10operations therein
shall be subject to all ordinances and 
11regulations of the City. The
construction, development, and 
12operation of the casino shall comply with all
ordinances, 
13regulations, rules, and controls of the City, including, but 
14not
limited to, those relating to zoning and planned 
15development, building, fire
prevention, and land use. However, 
16the regulation of gaming operations is
subject to the exclusive 
17jurisdiction of the Gaming Board. The Gaming Board shall be 
18responsible for the investigation for and issuance of all 
19licenses required by this Act and the Illinois Gambling Act. 
20For the purposes of this Section, "gaming operations" means 
21those activities directly related to the conduct of gambling 
22activity in the casino and "operations" means those activities 
23not directly related to the conduct of gambling, and includes 
24activities customarily carried out by similarly-sized 
25facilities not involved in gambling activity.


 
 
09800SB1739sam001- 28 -LRB098 10559 AMC 42403 a


1 Section 1-75. Borrowing. 
2 (a) The Authority may borrow money and
issue bonds as 
3provided in this Section. Bonds of the Authority may be issued

4to provide funds for land acquisition, site assembly and 
5preparation, and the design and construction of the casino, as 
6defined in the Illinois Gambling Act, all ancillary and related 
7facilities comprising the casino complex, and all on-site and 
8off-site infrastructure improvements required in connection 
9with the development of the casino; to refund (at the time or 
10in advance of any maturity or
redemption) or redeem any bonds 
11of the Authority; to provide or increase a
debt
service reserve 
12fund or other reserves with respect to any or all of its bonds;

13or to pay the legal, financial, administrative, bond
insurance, 
14credit enhancement, and other legal expenses of the 
15authorization,
issuance, or delivery of bonds. In this Act, the 
16term "bonds" also includes
notes of any kind, interim 
17certificates, refunding bonds, or any other evidence
of 
18obligation for borrowed money issued under this Section. Bonds 
19may be
issued in one or more series and may be payable and 
20secured either on a parity
with or separately from other bonds. 

21 (b) The bonds of the Authority shall be payable from one or 
22more of
the following sources: (i) the property or revenues of 
23the Authority; (ii)
revenues derived from the casino; (iii) 
24revenues derived from any casino
operator licensee; (iv) fees, 
25bid proceeds, charges, lease payments, payments required 
 
 
09800SB1739sam001- 29 -LRB098 10559 AMC 42403 a


1pursuant to any
casino management contract or other revenues 
2payable to the
Authority, or any
receipts of the Authority; (v) 
3payments by financial institutions, insurance
companies, or 
4others pursuant to letters or lines of credit, policies of

5insurance, or purchase agreements; (vi) investment earnings 
6from funds or
accounts maintained pursuant to a bond resolution 
7or trust indenture; (vii)
proceeds of refunding bonds; (viii) 
8any other revenues derived from or payments by the City; and 
9(ix) any payments by any casino operator licensee or others 
10pursuant to any guaranty agreement.

11 (c) Bonds shall be authorized by a resolution of the 
12Authority and may be
secured by a trust indenture by and 
13between the Authority and a corporate
trustee or trustees, 
14which may be any trust company or bank having the powers
of a 
15trust company within or without the State. Bonds shall meet the 
16following requirements:


17  (1) Bonds may bear interest payable at any time or 
18 times and at any rate or rates, notwithstanding any other 
19 provision of law to the contrary, and may be subject to 
20 such other terms and conditions as may be provided by the 
21 resolution or indenture authorizing the issuance of such 
22 bonds.


23  (2) Bonds issued pursuant to this Section may be 
24 payable on such dates and times as may be provided for by 
25 the resolution or indenture authorizing the issuance of 
26 such bonds; provided, however, that such bonds shall mature 
 
 
09800SB1739sam001- 30 -LRB098 10559 AMC 42403 a


1 no later than 30 years from the date of issuance.
2  (3) Bonds issued pursuant to this Section may be sold 
3 pursuant to notice of sale and public bid or by negotiated 
4 sale.


5  (4) Bonds shall be payable at a time or times, in the 
6 denominations and form,
including book entry form, either 
7 coupon, registered, or both, and carry the
registration and 
8 privileges as to exchange, transfer or conversion, and

9 replacement of mutilated, lost, or destroyed bonds as the 
10 resolution or trust
indenture may provide.


11  (5) Bonds shall be payable in lawful money of the 
12 United States at a designated
place.


13  (6) Bonds shall be subject to the terms of purchase, 
14 payment, redemption, refunding,
or refinancing that the 
15 resolution or trust indenture provides.


16  (7) Bonds shall be executed by the manual or facsimile 
17 signatures of the officers
of the Authority designated by 
18 the Board, which signatures shall be valid at
delivery even

19 for one who has ceased to hold office.


20  (8) Bonds shall be sold at public or private sale in 
21 the manner and upon the terms
determined by the Authority.


22  (9) Bonds shall be issued in accordance with the 
23 provisions of the Local
Government Debt Reform Act.

24 (d) The Authority shall adopt a procurement program with 
25respect to contracts relating to underwriters, bond counsel, 
26financial advisors, and accountants. The program shall include 
 
 
09800SB1739sam001- 31 -LRB098 10559 AMC 42403 a


1goals for the payment of not less than 30% of the total dollar 
2value of the fees from these contracts to minority-owned 
3businesses and female-owned businesses as defined in the 
4Business Enterprise for Minorities, Females, and Persons with 
5Disabilities Act. The Authority shall conduct outreach to 
6minority-owned businesses and female-owned businesses. 
7Outreach shall include, but is not limited to, advertisements 
8in periodicals and newspapers, mailings, and other appropriate 
9media. The Authority shall submit to the General Assembly a 
10comprehensive report that shall include, at a minimum, the 
11details of the procurement plan, outreach efforts, and the 
12results of the efforts to achieve goals for the payment of 
13fees.
14 (e) Subject to the Illinois Gambling Act and rules of the 
15Gaming Board regarding pledging
of interests in holders of 
16owners licenses, any resolution or trust indenture may contain 
17provisions that may be a part of
the contract with the holders 
18of the bonds as to the following:


19  (1) Pledging, assigning, or directing the use, 
20 investment, or disposition
of revenues of the Authority or 
21 proceeds or benefits of any contract, including
without 
22 limitation any rights in any casino management
contract.


23  (2) The setting aside of loan funding deposits, debt 
24 service reserves, replacement or operating reserves, cost 
25 of
issuance accounts and sinking funds, and the regulation, 
26 investment, and
disposition thereof.


 
 
09800SB1739sam001- 32 -LRB098 10559 AMC 42403 a


1  (3) Limitations on the purposes to which or the 
2 investments in which the
proceeds of sale of any issue of 
3 bonds or the Authority's revenues and
receipts may be 
4 applied or made.


5  (4) Limitations on the issue of additional bonds, the 
6 terms upon which
additional bonds may be issued and 
7 secured, the terms upon which additional
bonds may rank on 
8 a parity with, or be subordinate or superior to, other 
9 bonds.


10  (5) The refunding, advance refunding, or refinancing 
11 of outstanding bonds.


12  (6) The procedure, if any, by which the terms of any 
13 contract with
bondholders may be altered or amended and the 
14 amount of bonds and holders of
which must consent thereto 
15 and the manner in which consent shall be given.


16  (7) Defining the acts or omissions that shall 
17 constitute a default in the
duties of the Authority to 
18 holders of bonds and providing the rights or
remedies of 
19 such holders in the event of a default, which may include

20 provisions
restricting individual rights of action by 
21 bondholders.


22  (8) Providing for guarantees, pledges of property, 
23 letters of credit, or
other security,
or insurance for the 
24 benefit of bondholders.

25 (f) No member of the Casino Board, nor any person executing 
26the bonds, shall be
liable personally on the bonds or subject 
 
 
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1to any personal liability by reason
of the issuance of the 
2bonds.

3 (g) The Authority may issue and secure bonds in accordance 
4with the
provisions of the Local Government Credit Enhancement 
5Act.

6 (h) A pledge by the Authority of revenues and receipts as 
7security for an
issue of bonds or for the performance of its 
8obligations under any casino
management contract shall
be valid 
9and binding from the time when the pledge is made. The revenues 
10and
receipts pledged shall immediately be subject to the lien 
11of the pledge without
any physical delivery or further act,
and 
12the lien of any pledge shall be valid and binding against any 
13person having
any claim of any kind in tort, contract, or 
14otherwise against the Authority,
irrespective of whether the 
15person has notice. No resolution, trust indenture,
management 
16agreement or financing statement, continuation statement, or 
17other
instrument adopted or entered into by the Authority need 
18be filed or recorded
in any public record other than the 
19records of the Authority in order to
perfect the lien against 
20third persons, regardless of any contrary provision of
law.

21 (i) Bonds that are being paid or retired by issuance, sale, 
22or delivery of
bonds, and bonds for which sufficient funds have 
23been deposited with the paying
agent or trustee to provide for 
24payment of principal and interest thereon, and
any redemption 
25premium, as provided in the authorizing resolution, shall not 
26be
considered outstanding for the purposes of this subsection.

 
 
09800SB1739sam001- 34 -LRB098 10559 AMC 42403 a


1 (j) The bonds of the Authority shall not be indebtedness of 
2the
State.
The bonds of the Authority are not general 
3obligations of the State and are not secured by a pledge of the 
4full faith and
credit of the State and the holders of bonds of 
5the Authority may
not require, except as provided in this Act, 
6the application of State revenues or
funds to the payment of 
7bonds of the Authority.

8 (k) The State of
Illinois pledges and agrees with the 
9owners of the bonds that it will not limit
or alter the rights 
10and powers vested in the Authority by this Act so as to
impair 
11the terms of any contract made by the Authority with the owners 
12or in
any way impair the rights and remedies of the owners 
13until the bonds, together
with interest on them, and all costs 
14and expenses in connection with any action
or proceedings by or 
15on behalf of the owners, are fully met and discharged.
The 
16Authority is authorized to include this pledge and
agreement in 
17any contract with the owners of bonds issued under this 
18Section.

19 (l) No person holding an elective office in the City, in 
20Cook County, or in this State, holding a seat in the General 
21Assembly, or serving as a board member, trustee, officer, or 
22employee of the Authority, including the spouse of that person, 
23may receive a legal, banking, consulting, or other fee related 
24to the issuance of bonds. This prohibition shall also apply to 
25a company or firm that employs a person holding an elective 
26office in the City, in Cook County, or in this State, holding a 
 
 
09800SB1739sam001- 35 -LRB098 10559 AMC 42403 a


1seat in the General Assembly, or serving as a board member, 
2trustee, officer, or employee of the Authority, including the 
3spouse of that person, if the person or his or her spouse has 
4greater than 7.5% ownership of the company or firm.


5 Section 1-85. Derivative products.  With respect to all or 
6part of any issue
of its bonds, the Authority may enter into 
7agreements or contracts with any
necessary or appropriate 
8person, which will have the benefit of providing to
the

9Authority an interest rate basis, cash flow basis, or other 
10basis different
from that provided in the bonds for the payment 
11of interest. Such agreements
or contracts may include, without 
12limitation, agreements or contracts commonly
known as 
13"interest rate swap agreements", "forward payment conversion

14agreements", "futures", "options", "puts", or "calls" and 
15agreements or
contracts providing for payments based on levels 
16of or changes in interest
rates, agreements or contracts to 
17exchange cash flows or a series of payments,
or to hedge 
18payment, rate spread, or similar exposure.


19 Section 1-90. Legality for investment. The State of 
20Illinois, all
governmental entities, all public officers, 
21banks, bankers, trust companies,
savings banks and 
22institutions, building and loan associations, savings and
loan 
23associations, investment companies, and other persons carrying 
24on a
banking
business, insurance companies, insurance 
 
 
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1associations, and other persons
carrying on an insurance 
2business, and all executors, administrators,
guardians, 
3trustees, and other fiduciaries may legally invest any sinking

4funds,
moneys, or other funds belonging to them or within their 
5control in
any bonds issued under this Act. However, nothing in 
6this Section shall be
construed as relieving any person, firm, 
7or corporation from any duty of
exercising reasonable care in 
8selecting securities for purchase or investment.


9 Section 1-105. Budgets and reporting. 

10 (a) The Casino Board shall annually adopt a budget for each

11fiscal year. The budget may be modified from time to time in 
12the same manner
and upon the same vote as it may be adopted. 
13The budget shall include the
Authority's available funds and 
14estimated revenues and shall provide for
payment of its 
15obligations and estimated expenditures for the fiscal year,

16including, without limitation, expenditures for 
17administration, operation,
maintenance and repairs, debt 
18service, and deposits into reserve and other
funds
and capital 
19projects.

20 (b) The Casino Board shall annually cause the finances of 
21the Authority to be
audited by a firm of certified public 
22accountants selected by the Casino Board in accordance with the 
23rules of the Gaming Board and post on the Authority's Internet 
24website such financial information as is required to be posted 
25by all other owners licensees under the Illinois Gambling Act.

 
 
09800SB1739sam001- 37 -LRB098 10559 AMC 42403 a


1 (c) The Casino Board shall, for each fiscal year, prepare 
2an annual report
setting forth information concerning its 
3activities in the fiscal year and the
status of the development 
4of the casino. The annual report shall include financial 
5information of the Authority consistent with that which is 
6required for all other owners licensees under the Illinois 
7Gambling Act, the budget
for the succeeding fiscal year, and 
8the current capital plan as of the date of
the report. Copies 
9of the annual report shall be made available to persons who

10request them and shall be submitted not later than 120 days 
11after the end of
the Authority's fiscal year or, if the audit 
12of the Authority's financial statements is not completed within 
13120 days after the end of the Authority's fiscal year, as soon 
14as practical after completion of the audit, to the Governor, 
15the Mayor, the General Assembly, and the Commission on 
16Government Forecasting and Accountability.



17 Section 1-110. Deposit and withdrawal of funds.
18 (a) All funds deposited by the Authority in any bank or 
19savings and loan
association shall be placed in the name of the 
20Authority and shall be withdrawn
or paid out only by check or 
21draft upon the bank or savings and loan
association, signed by 
222 officers or employees designated by the Casino Board.

23Notwithstanding any other provision of this Section, the Casino 
24Board may designate
any of its members or any officer or 
25employee of the Authority to authorize the
wire transfer of 
 
 
09800SB1739sam001- 38 -LRB098 10559 AMC 42403 a


1funds deposited by the secretary-treasurer of funds in a bank

2or savings and loan association for the payment of payroll and 
3employee
benefits-related expenses.

4 No bank or savings and loan association shall receive 
5public funds as
permitted by this Section unless it has 
6complied with the requirements
established pursuant to Section 
76 of the Public
Funds Investment Act.

8 (b) If any officer or employee whose signature appears upon 
9any check
or draft issued pursuant to this Act ceases (after 
10attaching his signature) to
hold his or her office before the 
11delivery of such a check or draft to the
payee, his or her 
12signature shall nevertheless be valid and sufficient for all

13purposes with the same effect as if he or she had remained in 
14office until
delivery thereof.



15 Section 1-112. Contracts with the Authority or casino 
16operator licensee; disclosure requirements. 
17 (a) A bidder, respondent, offeror, or contractor for 
18contracts with the Authority or casino operator licensee shall 
19disclose the identity of all officers and directors and every 
20owner, beneficiary, or person with beneficial interest of more 
21than 1% or shareholder entitled to receive more than 1% of the 
22total distributable income of any corporation having any 
23interest in the contract or in the bidder, respondent, offeror, 
24or contractor. The disclosure shall be in writing and attested 
25to by an owner, trustee, corporate official, or agent. If stock 
 
 
09800SB1739sam001- 39 -LRB098 10559 AMC 42403 a


1in a corporation is publicly traded and there is no readily 
2known individual having greater than a 1% interest, then a 
3statement to that effect attested to by an officer or agent of 
4the corporation shall fulfill the disclosure statement 
5requirement of this Section. A bidder, respondent, offeror, or 
6contractor shall notify the Authority of any changes in 
7officers, directors, ownership, or individuals having a 
8beneficial interest of more than 1%. Notwithstanding the 
9provisions of this subsection (a), the Gaming Board may adopt 
10rules in connection with contractors for contracts with the 
11Authority or the casino operator.
12 (b) A bidder, respondent, offeror, or contractor for 
13contracts with an annual value of $25,000 or more or for a 
14period to exceed one year shall disclose all political 
15contributions of the bidder, respondent, offeror, or 
16contractor and any affiliated person or entity. Disclosure 
17shall include at least the names and addresses of the 
18contributors and the dollar amounts of any contributions to any 
19political committee made within the previous 2 years. The 
20disclosure must be submitted to the Gaming Board with a copy of 
21the contract. All such disclosures shall be posted on the 
22websites of the Authority and the Gaming Board.
23 (c) As used in this Section:
24 "Contribution" means contribution as defined in Section 
259-1.4 of the Election Code.
26 "Affiliated person" means (i) any person with any ownership 
 
 
09800SB1739sam001- 40 -LRB098 10559 AMC 42403 a


1interest or distributive share of the bidding, responding, or 
2contracting entity in excess of 1%, (ii) executive employees of 
3the bidding, responding, or contracting entity, and (iii) the 
4spouse, minor children, and parents of any such persons.
5 "Affiliated entity" means (i) any parent or subsidiary of 
6the bidding or contracting entity, (ii) any member of the same 
7unitary business group, or (iii) any political committee for 
8which the bidding, responding, or contracting entity is the 
9sponsoring entity.
10 (d) The Gaming Board may direct the Authority or a casino 
11operator licensee to void a contract if a violation of this 
12Section occurs. The Authority may direct a casino operator 
13licensee to void a contract if a violation of this Section 
14occurs.
15 (e) All contracts pertaining to the actual operation of the 
16casino and related gaming activities shall be entered into by 
17the casino operator licensee and not the Authority and shall be 
18subject to the regulation, oversight, and approval of the 
19Gaming Board, applying the same regulation, oversight, and 
20approval requirements as would be applied to any other owners 
21licensee under the Illinois Gambling Act.

22 Section 1-115. Purchasing. 
23 (a) The Casino Board shall designate an officer of the 
24Authority to serve as the Chief Procurement Officer for the 
25Authority. The Chief Procurement Officer shall have all powers 
 
 
09800SB1739sam001- 41 -LRB098 10559 AMC 42403 a


1and duties set forth in Section 15 of Division 10 of Article 8 
2of the Illinois Municipal Code. Except as otherwise provided in 
3this Section, the Chief Procurement Officer of the Authority 
4shall conduct procurements on behalf of the Authority subject 
5to Title 2, Chapter 92 of the Municipal Code of Chicago, which 
6by its terms incorporates Division 10 of Article 8 of the 
7Illinois Municipal Code.
8 (b) All contracts for amounts greater than $25,000 must be 
9approved by the Casino Board and executed by the chairperson of 
10the Casino Board and executive director of the Authority. 
11Contracts for amounts of $25,000 or less may be approved and 
12executed by the Chief Procurement Officer for the Authority and 
13executive director of the Authority, with approval by the chief 
14legal counsel for the Authority as to form and legality.
15 (c) All construction contracts and contracts for supplies, 
16materials,
equipment, and services for amounts greater than 
17$25,000 shall be let by a competitive selection process to
the 
18lowest responsible proposer, after advertising for proposals, 
19except for the
following:


20  (1) when repair parts, accessories, equipment, or 
21 services are required
for
equipment or services previously 
22 furnished or contracted for;


23  (2) when services such as water, light, heat, power, 
24 telephone (other than
long-distance service), or telegraph 
25 are required;


26  (3) casino management contracts, which shall be 
 
 
09800SB1739sam001- 42 -LRB098 10559 AMC 42403 a


1 awarded as
set forth in Section 1-45 of this Act;

2  (4) contracts where there is only one economically 
3 feasible source;
4  (5) when a purchase is needed on an immediate, 
5 emergency basis because there exists a threat to public 
6 health or public safety, or when immediate expenditure is 
7 necessary for repairs to Authority property in order to 
8 protect against further loss of or damage to Authority 
9 property, to prevent or minimize serious disruption in 
10 Authority services or to ensure the integrity of Authority 
11 records;
12  (6) contracts for professional services other than for 
13 management of the casino, except such contracts described 
14 in subsection (d) of this Section; and
15  (7) contracts for the use, purchase, delivery, 
16 movement, or installation of (i) data processing 
17 equipment, software, and services and (ii) 
18 telecommunications equipment, software, and services.

19 (d) Contracts for professional services for a term of more 
20than one year or contracts that may require payment in excess 
21of $25,000 in one year shall be let by a competitive bidding 
22process to the most highly qualified firm that agrees to 
23compensation and other terms of engagement that are both 
24reasonable and acceptable to the Casino Board.
25 (e) All contracts involving less than $25,000 shall be let 
26by competitive
selection process whenever possible, and in any 
 
 
09800SB1739sam001- 43 -LRB098 10559 AMC 42403 a


1event in a manner calculated to ensure
the best interests of 
2the public.

3 (f) In determining the responsibility of any proposer, the 
4Authority may take
into account the proposer's (or an 
5individual having a beneficial interest,
directly or 
6indirectly, of more than 1% in such proposing entity) past 
7record of
dealings with the Authority, the proposer's 
8experience, adequacy of equipment,
and ability to complete 
9performance within the time set, and other factors
besides 
10financial responsibility. No such contract shall be awarded to 
11any proposer other than the lowest proposer (in case of 
12purchase or
expenditure) unless authorized or approved by a 
13vote of at least 3 members of
the Casino Board and such action 
14is accompanied by a written statement setting forth the reasons 
15for not awarding the contract to the highest or
lowest 
16proposer, as the case
may be. The statement shall be kept on 
17file in the principal office of the
Authority and open to 
18public inspection.

19 (g) The Authority shall have the right to reject all 
20proposals and to
re-advertise for proposals. If after
any such 
21re-advertisement, no responsible and satisfactory proposals, 
22within the
terms of the re-advertisement, is received, the 
23Authority may award such
contract without competitive 
24selection. The contract must not be less
advantageous to the 
25Authority than any valid proposal received pursuant to

26advertisement.

 
 
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1 (h) Advertisements for proposals and re-proposals shall be 
2published at least once in
a daily newspaper of general 
3circulation published in the City
at least 10 calendar days 
4before the time for
receiving proposals and in an online 
5bulletin published on the Authority's website. Such

6advertisements shall state the time and
place for receiving and 
7opening of proposals and, by reference to plans and

8specifications on file at the time of the first publication or 
9in the
advertisement itself, shall describe the character of 
10the proposed contract in
sufficient detail to fully advise 
11prospective proposers of their obligations and
to ensure free 
12and open competitive selection.

13 (i) All proposals in response to advertisements shall be 
14sealed and shall be
publicly opened by the Authority. All 
15proposers shall be entitled to be present
in person or by 
16representatives. Cash or a certified or satisfactory cashier's

17check, as a deposit of good faith, in a reasonable amount to be 
18fixed by the
Authority before advertising for proposals, shall 
19be required with the proposal. A bond for faithful performance 
20of the contract with surety or
sureties satisfactory to the

21Authority and adequate insurance may be required in reasonable 
22amounts to be
fixed by the Authority before advertising for 
23proposals.

24 (j) The contract shall be awarded as promptly as possible 
25after the opening
of proposals. The proposal of the successful 
26proposer, as well as the bids of the
unsuccessful proposers, 
 
 
09800SB1739sam001- 45 -LRB098 10559 AMC 42403 a


1shall be placed on file and be open to public inspection 
2subject to the exemptions from disclosure provided under 
3Section 7 of the Freedom of Information Act.
All proposals 
4shall be void if any disclosure of the terms of any proposals 
5in response
to an advertisement is made or permitted to be made 
6by the Authority before the
time fixed for opening proposals.

7 (k) Notice of each and every contract that is
offered, 
8including renegotiated contracts and change orders,
shall be 
9published in an online bulletin. The online bulletin must 
10include at least the date first offered,
the date submission of 
11offers is due, the location that offers are to be
submitted to, 
12a brief purchase description, the method of source selection,

13information of how to obtain a comprehensive purchase 
14description and any
disclosure and contract forms, and 
15encouragement to prospective vendors to hire qualified 
16veterans, as defined by Section 45-67 of the Illinois 
17Procurement Code, and Illinois residents discharged from any 
18Illinois adult correctional center subject to Gaming Board 
19licensing and eligibility rules. Notice of each and every 
20contract that is let
or awarded, including renegotiated 
21contracts and change orders, shall be
published in the online 
22bulletin and
must include at least all of the
information 
23specified in this subsection (k), as well as the name of the 
24successful
responsible proposer or offeror, the contract 
25price, and the number of unsuccessful
responsive proposers and 
26any other disclosure specified in this Section. This notice 
 
 
09800SB1739sam001- 46 -LRB098 10559 AMC 42403 a


1must be posted in the online electronic bulletin prior to 
2execution of the contract.


3 Section 1-130. Affirmative action and equal opportunity 
4obligations of
Authority. 
5 (a) The Authority is subject to the requirements of Article 
6IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720 
7inclusive) of the Chicago Municipal Code, as now or hereafter 
8amended, renumbered, or succeeded, concerning a Minority-Owned 
9and Women-Owned Business Enterprise Procurement Program for 
10construction contracts, and Section 2-92-420 et seq. of the 
11Chicago Municipal Code, as now or hereafter amended, 
12renumbered, or succeeded, concerning a Minority-Owned and 
13Women-Owned Business Enterprise Procurement Program.

14 (b) The Authority is authorized to enter into agreements 
15with contractors'
associations, labor unions, and the 
16contractors working on the development of
the casino to 
17establish an apprenticeship preparedness training program to

18provide for an increase in the number of minority and female 
19journeymen and
apprentices in the building trades and to enter 
20into agreements with
community college districts or other 
21public or private institutions to provide
readiness training. 
22The Authority is further authorized to enter into
contracts 
23with public and private educational institutions and persons in 
24the
gaming, entertainment, hospitality, and tourism industries 
25to provide training
for employment in those industries.


 
 
09800SB1739sam001- 47 -LRB098 10559 AMC 42403 a


1 Section 1-135. Transfer of interest. Neither the Authority 
2nor the City may sell, lease, rent, transfer, exchange, or 
3otherwise convey any interest that they have in the casino 
4without prior approval of the General Assembly.

5 Section 1-140. Home rule. The regulation and licensing of 
6casinos and casino gaming, casino gaming facilities, and casino 
7operator licensees under this Act are exclusive powers and 
8functions of the State. A home rule unit may not regulate or 
9license casinos, casino gaming, casino gaming facilities, or 
10casino operator licensees under this Act, except as provided 
11under this Act. This Section is a denial and limitation of home 
12rule powers and functions under subsection (h) of Section 6 of 
13Article VII of the Illinois Constitution.



14 Section 1-145. Prohibition of political contributions from 
15casino operator licensees and applicants. 
16 (a) The General Assembly has a compelling interest in 
17protecting the integrity of both the electoral process and the 
18legislative process by preventing corruption and the 
19appearance of corruption which may arise through permitting 
20certain political campaign contributions by certain persons 
21involved in the gaming industry and regulated by the State. 
22Unlike most other regulated industries, gaming is especially 
23susceptible to corruption and potential criminal influence. In 
 
 
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1Illinois, only licensed gaming activities are legal and all 
2other gaming activities are strictly prohibited. Given these 
3circumstances, it is imperative to eliminate any potential 
4corrupt influence in the gaming industry and the electoral 
5process.
6 Banning political campaign contributions by certain 
7persons subject to this Section to State officeholders and 
8candidates for such offices and to county and municipal 
9officeholders and candidates for such offices in counties and 
10municipalities that receive financial benefits from gaming 
11activities is necessary to prevent corruption and the 
12appearance of corruption that may arise when political campaign 
13contributions and gaming that is regulated by the State and 
14that confers benefits on counties and municipalities are 
15intermingled.
16 The General Assembly has prohibited political campaign 
17contributions to certain State and local officeholders and 
18candidates for such offices by certain persons with State of 
19Illinois and Metropolitan Pier and Exposition Authority 
20contracts and pending bids or proposals for contracts of over 
21$50,000 and certain individuals and entities affiliated with 
22such persons. Certain gaming licensees will receive receipts 
23far in excess of the base level of contract amounts subject to 
24such other campaign contribution prohibitions.
25 (b) As used in this Section:
26 "Affiliated entity" means (i) any corporate parent and 
 
 
09800SB1739sam001- 49 -LRB098 10559 AMC 42403 a


1operating subsidiary of the business entity applying for or 
2holding a license, (ii) each operating subsidiary of the 
3corporate parent of the business entity applying for or holding 
4a license, (iii) any organization recognized by the United 
5States Internal Revenue Service as a tax-exempt organization 
6described in Section 501(c) of the Internal Revenue Code of 
71986 (or any successor provision of federal tax law) 
8established by one or more business entities seeking or holding 
9a license, any affiliated entity of such business entity, or 
10any affiliated person of such business entity, and (iv) any 
11political committee for which the business entity applying for 
12or holding a license, or any 501(c) organization described in 
13item (iii) related to that business entity, is the sponsoring 
14entity as defined in Section 9-3 of the Election Code. For 
15purposes of item (iv), the funding of all business entities 
16applying for or holding a license shall be aggregated in 
17determining whether such political committee is an affiliated 
18entity.
19 "Affiliated person" means (i) any person with any ownership 
20interest or distributive share in excess of 7.5% of any 
21business entity applying for or holding a license, (ii) 
22executive employees of any such business entity, (iii) any 
23person designated as a key person under the Illinois Gambling 
24Act, and (iv) the spouse of the persons described in items (i) 
25through (iii).
26 "Business entity" means any entity doing business for 
 
 
09800SB1739sam001- 50 -LRB098 10559 AMC 42403 a


1profit, whether organized as a corporation, partnership, sole 
2proprietorship, limited liability company, or partnership or 
3otherwise.
4 "Contribution" means a contribution as defined in Section 
59-1.4 of the Election Code.
6 "Declared candidate" means a person who has filed a 
7statement of candidacy and petition for nomination or election 
8in the principal office of the State Board of Elections, or in 
9the office of the appropriate election authority for any county 
10or municipality in which a casino is located or proposed or 
11which receives any gaming revenue.
12 "Executive employee" means (i) any person who is an officer 
13or director or who fulfills duties equivalent to those of an 
14officer or director of a business entity applying for or 
15holding a license and (ii) any employee of such business entity 
16who is required to register under the Lobbyist Registration 
17Act.
18 "License" means the casino operator license issued 
19pursuant to this Act.
20 "Officeholder" means the Governor, Lieutenant Governor, 
21Attorney General, Secretary of State, Comptroller, Treasurer, 
22member of the General Assembly, or any officeholder in any 
23county or municipality in which a riverboat, casino, or 
24electronic gaming device is located or proposed or that 
25receives any gaming revenue.
26 (c) Any person or business entity applying for or holding a 
 
 
09800SB1739sam001- 51 -LRB098 10559 AMC 42403 a


1license, any affiliated entities or persons of such business 
2entity, and any entities or persons soliciting a contribution 
3or causing a contribution to be made on behalf of such person 
4or business entity, are prohibited from making any contribution 
5to any officeholder or declared candidate or any political 
6committee affiliated with any officeholder or declared 
7candidate, as defined in Section 9-1.8 of the Election Code. 
8This prohibition shall commence upon filing of an application 
9for a license and shall continue for a period of 2 years after 
10termination, suspension or revocation of the license.
11 The Gaming Board shall have authority to suspend, revoke, 
12or restrict the license and to impose civil penalties of up to 
13$100,000 for each violation of this subsection (c). A notice of 
14each such violation and the penalty imposed shall be published 
15on the Gaming Board's Internet website and in the Illinois 
16Register. Payments received by the State pursuant to this 
17subsection (c) shall be deposited into the General Revenue 
18Fund.

19 Any officeholder or declared candidate or any political 
20committee affiliated with any officeholder or declared 
21candidate that has received a contribution in violation of this 
22subsection (c) shall pay an amount equal to the value of the 
23contribution to the State no more than 30 days after notice of 
24the violation concerning the contribution appears in the 
25Illinois Register. Payments received by the State pursuant to 
26this subsection (c) shall be deposited into the General Revenue 
 
 
09800SB1739sam001- 52 -LRB098 10559 AMC 42403 a


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

23
ARTICLE 90.


24 Section 90-1. Findings. The General Assembly makes all of 
 
 
09800SB1739sam001- 53 -LRB098 10559 AMC 42403 a


1the following findings:
2  (1) That the cumulative reduction to pre-K through 12 
3 education funding since 2009 is approximately 
4 $861,000,000.
5  (2) That during the last 2 years, general state aid to 
6 Illinois common schools has been underfunded as a result of 
7 budget cuts, resulting in pro-rated payments to school 
8 districts that are less than the foundational level of 
9 $6,119 per pupil, which represents the minimum each pupil 
10 needs to be educated.
11  (3) That a significant infusion of new revenue is 
12 necessary in order to fully fund the foundation level and 
13 to maintain and support education in Illinois.
14  (4) That the decline of the Illinois horse racing and 
15 breeding program, a $2.5 billion industry, would be 
16 reversed if this amendatory Act of the 98th General 
17 Assembly would be enacted.
18  (5) That the Illinois horse racing industry is on the 
19 verge of extinction due to fierce competition from fully 
20 developed horse racing and gaming operations in other 
21 states.
22  (6) That allowing the State's horse racing venues, 
23 currently licensed gaming destinations, to maximize their 
24 capacities with gaming machines, would generate up to $120 
25 million to $200 million for the State in the form of extra 
26 licensing fees, plus an additional $100 million to $300 
 
 
09800SB1739sam001- 54 -LRB098 10559 AMC 42403 a


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

20 Section 90-2. The Illinois Administrative Procedure Act is 
21amended by changing Section 5-45 as follows:

22 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
23 Sec. 5-45. Emergency rulemaking. 
24 (a) "Emergency" means the existence of any situation that 
 
 
09800SB1739sam001- 55 -LRB098 10559 AMC 42403 a


1any agency
finds reasonably constitutes a threat to the public 
2interest, safety, or
welfare.
3 (b) If any agency finds that an
emergency exists that 
4requires adoption of a rule upon fewer days than
is required by 
5Section 5-40 and states in writing its reasons for that

6finding, the agency may adopt an emergency rule without prior 
7notice or
hearing upon filing a notice of emergency rulemaking 
8with the Secretary of
State under Section 5-70. The notice 
9shall include the text of the
emergency rule and shall be 
10published in the Illinois Register. Consent
orders or other 
11court orders adopting settlements negotiated by an agency
may 
12be adopted under this Section. Subject to applicable 
13constitutional or
statutory provisions, an emergency rule 
14becomes effective immediately upon
filing under Section 5-65 or 
15at a stated date less than 10 days
thereafter. The agency's 
16finding and a statement of the specific reasons
for the finding 
17shall be filed with the rule. The agency shall take
reasonable 
18and appropriate measures to make emergency rules known to the

19persons who may be affected by them.
20 (c) An emergency rule may be effective for a period of not 
21longer than
150 days, but the agency's authority to adopt an 
22identical rule under Section
5-40 is not precluded. No 
23emergency rule may be adopted more
than once in any 24 month 
24period, except that this limitation on the number
of emergency 
25rules that may be adopted in a 24 month period does not apply

26to (i) emergency rules that make additions to and deletions 
 
 
09800SB1739sam001- 56 -LRB098 10559 AMC 42403 a


1from the Drug
Manual under Section 5-5.16 of the Illinois 
2Public Aid Code or the
generic drug formulary under Section 
33.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) 
4emergency rules adopted by the Pollution Control
Board before 
5July 1, 1997 to implement portions of the Livestock Management

6Facilities Act, (iii) emergency rules adopted by the Illinois 
7Department of Public Health under subsections (a) through (i) 
8of Section 2 of the Department of Public Health Act when 
9necessary to protect the public's health, (iv) emergency rules 
10adopted pursuant to subsection (n) of this Section, (v) 
11emergency rules adopted pursuant to subsection (o) of this 
12Section, or (vi) emergency rules adopted pursuant to subsection 
13(c-5) of this Section. Two or more emergency rules having 
14substantially the same
purpose and effect shall be deemed to be 
15a single rule for purposes of this
Section.
16 (c-5) To facilitate the maintenance of the program of group 
17health benefits provided to annuitants, survivors, and retired 
18employees under the State Employees Group Insurance Act of 
191971, rules to alter the contributions to be paid by the State, 
20annuitants, survivors, retired employees, or any combination 
21of those entities, for that program of group health benefits, 
22shall be adopted as emergency rules. The adoption of those 
23rules shall be considered an emergency and necessary for the 
24public interest, safety, and welfare. 
25 (d) In order to provide for the expeditious and timely 
26implementation
of the State's fiscal year 1999 budget, 
 
 
09800SB1739sam001- 57 -LRB098 10559 AMC 42403 a


1emergency rules to implement any
provision of Public Act 90-587 
2or 90-588
or any other budget initiative for fiscal year 1999 
3may be adopted in
accordance with this Section by the agency 
4charged with administering that
provision or initiative, 
5except that the 24-month limitation on the adoption
of 
6emergency rules and the provisions of Sections 5-115 and 5-125 
7do not apply
to rules adopted under this subsection (d). The 
8adoption of emergency rules
authorized by this subsection (d) 
9shall be deemed to be necessary for the
public interest, 
10safety, and welfare.
11 (e) In order to provide for the expeditious and timely 
12implementation
of the State's fiscal year 2000 budget, 
13emergency rules to implement any
provision of this amendatory 
14Act of the 91st General Assembly
or any other budget initiative 
15for fiscal year 2000 may be adopted in
accordance with this 
16Section by the agency charged with administering that
provision 
17or initiative, except that the 24-month limitation on the 
18adoption
of emergency rules and the provisions of Sections 
195-115 and 5-125 do not apply
to rules adopted under this 
20subsection (e). The adoption of emergency rules
authorized by 
21this subsection (e) shall be deemed to be necessary for the

22public interest, safety, and welfare.
23 (f) In order to provide for the expeditious and timely 
24implementation
of the State's fiscal year 2001 budget, 
25emergency rules to implement any
provision of this amendatory 
26Act of the 91st General Assembly
or any other budget initiative 
 
 
09800SB1739sam001- 58 -LRB098 10559 AMC 42403 a


1for fiscal year 2001 may be adopted in
accordance with this 
2Section by the agency charged with administering that
provision 
3or initiative, except that the 24-month limitation on the 
4adoption
of emergency rules and the provisions of Sections 
55-115 and 5-125 do not apply
to rules adopted under this 
6subsection (f). The adoption of emergency rules
authorized by 
7this subsection (f) shall be deemed to be necessary for the

8public interest, safety, and welfare.
9 (g) In order to provide for the expeditious and timely 
10implementation
of the State's fiscal year 2002 budget, 
11emergency rules to implement any
provision of this amendatory 
12Act of the 92nd General Assembly
or any other budget initiative 
13for fiscal year 2002 may be adopted in
accordance with this 
14Section by the agency charged with administering that
provision 
15or initiative, except that the 24-month limitation on the 
16adoption
of emergency rules and the provisions of Sections 
175-115 and 5-125 do not apply
to rules adopted under this 
18subsection (g). The adoption of emergency rules
authorized by 
19this subsection (g) shall be deemed to be necessary for the

20public interest, safety, and welfare.
21 (h) In order to provide for the expeditious and timely 
22implementation
of the State's fiscal year 2003 budget, 
23emergency rules to implement any
provision of this amendatory 
24Act of the 92nd General Assembly
or any other budget initiative 
25for fiscal year 2003 may be adopted in
accordance with this 
26Section by the agency charged with administering that
provision 
 
 
09800SB1739sam001- 59 -LRB098 10559 AMC 42403 a


1or initiative, except that the 24-month limitation on the 
2adoption
of emergency rules and the provisions of Sections 
35-115 and 5-125 do not apply
to rules adopted under this 
4subsection (h). The adoption of emergency rules
authorized by 
5this subsection (h) shall be deemed to be necessary for the

6public interest, safety, and welfare.
7 (i) In order to provide for the expeditious and timely 
8implementation
of the State's fiscal year 2004 budget, 
9emergency rules to implement any
provision of this amendatory 
10Act of the 93rd General Assembly
or any other budget initiative 
11for fiscal year 2004 may be adopted in
accordance with this 
12Section by the agency charged with administering that
provision 
13or initiative, except that the 24-month limitation on the 
14adoption
of emergency rules and the provisions of Sections 
155-115 and 5-125 do not apply
to rules adopted under this 
16subsection (i). The adoption of emergency rules
authorized by 
17this subsection (i) shall be deemed to be necessary for the

18public interest, safety, and welfare.
19 (j) In order to provide for the expeditious and timely 
20implementation of the provisions of the State's fiscal year 
212005 budget as provided under the Fiscal Year 2005 Budget 
22Implementation (Human Services) Act, emergency rules to 
23implement any provision of the Fiscal Year 2005 Budget 
24Implementation (Human Services) Act may be adopted in 
25accordance with this Section by the agency charged with 
26administering that provision, except that the 24-month 
 
 
09800SB1739sam001- 60 -LRB098 10559 AMC 42403 a


1limitation on the adoption of emergency rules and the 
2provisions of Sections 5-115 and 5-125 do not apply to rules 
3adopted under this subsection (j). The Department of Public Aid 
4may also adopt rules under this subsection (j) necessary to 
5administer the Illinois Public Aid Code and the Children's 
6Health Insurance Program Act. The adoption of emergency rules 
7authorized by this subsection (j) shall be deemed to be 
8necessary for the public interest, safety, and welfare.

9 (k) In order to provide for the expeditious and timely 
10implementation of the provisions of the State's fiscal year 
112006 budget, emergency rules to implement any provision of this 
12amendatory Act of the 94th General Assembly or any other budget 
13initiative for fiscal year 2006 may be adopted in accordance 
14with this Section by the agency charged with administering that 
15provision or initiative, except that the 24-month limitation on 
16the adoption of emergency rules and the provisions of Sections 
175-115 and 5-125 do not apply to rules adopted under this 
18subsection (k). The Department of Healthcare and Family 
19Services may also adopt rules under this subsection (k) 
20necessary to administer the Illinois Public Aid Code, the 
21Senior Citizens and Disabled Persons Property Tax Relief Act, 
22the Senior Citizens and Disabled Persons Prescription Drug 
23Discount Program Act (now the Illinois Prescription Drug 
24Discount Program Act), and the Children's Health Insurance 
25Program Act. The adoption of emergency rules authorized by this 
26subsection (k) shall be deemed to be necessary for the public 
 
 
09800SB1739sam001- 61 -LRB098 10559 AMC 42403 a


1interest, safety, and welfare.

2 (l) In order to provide for the expeditious and timely 
3implementation of the provisions of the
State's fiscal year 
42007 budget, the Department of Healthcare and Family Services 
5may adopt emergency rules during fiscal year 2007, including 
6rules effective July 1, 2007, in
accordance with this 
7subsection to the extent necessary to administer the 
8Department's responsibilities with respect to amendments to 
9the State plans and Illinois waivers approved by the federal 
10Centers for Medicare and Medicaid Services necessitated by the 
11requirements of Title XIX and Title XXI of the federal Social 
12Security Act. The adoption of emergency rules
authorized by 
13this subsection (l) shall be deemed to be necessary for the 
14public interest,
safety, and welfare.

15 (m) In order to provide for the expeditious and timely 
16implementation of the provisions of the
State's fiscal year 
172008 budget, the Department of Healthcare and Family Services 
18may adopt emergency rules during fiscal year 2008, including 
19rules effective July 1, 2008, in
accordance with this 
20subsection to the extent necessary to administer the 
21Department's responsibilities with respect to amendments to 
22the State plans and Illinois waivers approved by the federal 
23Centers for Medicare and Medicaid Services necessitated by the 
24requirements of Title XIX and Title XXI of the federal Social 
25Security Act. The adoption of emergency rules
authorized by 
26this subsection (m) shall be deemed to be necessary for the 
 
 
09800SB1739sam001- 62 -LRB098 10559 AMC 42403 a


1public interest,
safety, and welfare.

2 (n) In order to provide for the expeditious and timely 
3implementation of the provisions of the State's fiscal year 
42010 budget, emergency rules to implement any provision of this 
5amendatory Act of the 96th General Assembly or any other budget 
6initiative authorized by the 96th General Assembly for fiscal 
7year 2010 may be adopted in accordance with this Section by the 
8agency charged with administering that provision or 
9initiative. The adoption of emergency rules authorized by this 
10subsection (n) shall be deemed to be necessary for the public 
11interest, safety, and welfare. The rulemaking authority 
12granted in this subsection (n) shall apply only to rules 
13promulgated during Fiscal Year 2010. 
14 (o) In order to provide for the expeditious and timely 
15implementation of the provisions of the State's fiscal year 
162011 budget, emergency rules to implement any provision of this 
17amendatory Act of the 96th General Assembly or any other budget 
18initiative authorized by the 96th General Assembly for fiscal 
19year 2011 may be adopted in accordance with this Section by the 
20agency charged with administering that provision or 
21initiative. The adoption of emergency rules authorized by this 
22subsection (o) is deemed to be necessary for the public 
23interest, safety, and welfare. The rulemaking authority 
24granted in this subsection (o) applies only to rules 
25promulgated on or after the effective date of this amendatory 
26Act of the 96th General Assembly through June 30, 2011. 
 
 
09800SB1739sam001- 63 -LRB098 10559 AMC 42403 a


1 (p) In order to provide for the expeditious and timely 
2implementation of the provisions of Public Act 97-689 this 
3amendatory Act of the 97th General Assembly, emergency rules to 
4implement any provision of Public Act 97-689 this amendatory 
5Act of the 97th General Assembly may be adopted in accordance 
6with this subsection (p) by the agency charged with 
7administering that provision or initiative. The 150-day 
8limitation of the effective period of emergency rules does not 
9apply to rules adopted under this subsection (p), and the 
10effective period may continue through June 30, 2013. The 
1124-month limitation on the adoption of emergency rules does not 
12apply to rules adopted under this subsection (p). The adoption 
13of emergency rules authorized by this subsection (p) is deemed 
14to be necessary for the public interest, safety, and welfare.
15 (q) In order to provide for the expeditious and timely 
16implementation of Internet gaming, the Division of Internet 
17Gaming may adopt emergency rules to implement the provisions of 
18Section 7.18 of the Illinois Lottery Law. The adoption of 
19emergency rules authorized by this subsection (q) shall be 
20deemed to be necessary for the public interest, safety, and 
21welfare. 
22(Source: P.A. 96-45, eff. 7-15-09; 96-958, eff. 7-1-10; 
2396-1500, eff. 1-18-11; 97-689, eff. 6-14-12; 97-695, eff. 
247-1-12; revised 7-10-12.)

25 Section 90-3. The State Officials and Employees Ethics Act 
 
 
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1is amended by changing Sections 5-45 and 20-10 as follows:

2 (5 ILCS 430/5-45)

3 Sec. 5-45. Procurement; revolving door prohibition.

4 (a) No former officer, member, or State employee, or spouse 
5or
immediate family member living with such person, shall, 
6within a period of one
year immediately after termination of 
7State employment, knowingly accept
employment or receive 
8compensation or fees for services from a person or entity
if 
9the officer, member, or State employee, during the year 
10immediately
preceding termination of State employment, 
11participated personally and
substantially in the award of State 
12contracts, or the issuance of State contract change orders, 
13with a cumulative value
of $25,000
or more to the person or 
14entity, or its parent or subsidiary.


15 (b) No former officer of the executive branch or State 
16employee of the
executive branch with regulatory or
licensing 
17authority, or spouse or immediate family member living with 
18such
person, shall, within a period of one year immediately 
19after termination of
State employment, knowingly accept 
20employment or receive compensation or fees
for services from a 
21person or entity if the officer
or State
employee, during the 
22year immediately preceding
termination of State employment, 
23participated personally and substantially in making a 
24regulatory or licensing decision that
directly applied to the 
25person or entity, or its parent or subsidiary. 

 
 
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1 (c) Within 6 months after the effective date of this 
2amendatory Act of the 96th General Assembly, each executive 
3branch constitutional officer and legislative leader, the 
4Auditor General, and the Joint Committee on Legislative Support 
5Services shall adopt a policy delineating which State positions 
6under his or her jurisdiction and control, by the nature of 
7their duties, may have the authority to participate personally 
8and substantially in the award of State contracts or in 
9regulatory or licensing decisions. The Governor shall adopt 
10such a policy for all State employees of the executive branch 
11not under the jurisdiction and control of any other executive 
12branch constitutional officer.


13 The policies required under subsection (c) of this Section 
14shall be filed with the appropriate ethics commission 
15established under this Act or, for the Auditor General, with 
16the Office of the Auditor General.
17 (d) Each Inspector General shall have the authority to 
18determine that additional State positions under his or her 
19jurisdiction, not otherwise subject to the policies required by 
20subsection (c) of this Section, are nonetheless subject to the 
21notification requirement of subsection (f) below due to their 
22involvement in the award of State contracts or in regulatory or 
23licensing decisions.
24 (e) The Joint Committee on Legislative Support Services, 
25the Auditor General, and each of the executive branch 
26constitutional officers and legislative leaders subject to 
 
 
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1subsection (c) of this Section shall provide written 
2notification to all employees in positions subject to the 
3policies required by subsection (c) or a determination made 
4under subsection (d): (1) upon hiring, promotion, or transfer 
5into the relevant position; and (2) at the time the employee's 
6duties are changed in such a way as to qualify that employee. 
7An employee receiving notification must certify in writing that 
8the person was advised of the prohibition and the requirement 
9to notify the appropriate Inspector General in subsection (f).
10 (f) Any State employee in a position subject to the 
11policies required by subsection (c) or to a determination under 
12subsection (d), but who does not fall within the prohibition of 
13subsection (h) below, who is offered non-State employment 
14during State employment or within a period of one year 
15immediately after termination of State employment shall, prior 
16to accepting such non-State employment, notify the appropriate 
17Inspector General. Within 10 calendar days after receiving 
18notification from an employee in a position subject to the 
19policies required by subsection (c), such Inspector General 
20shall make a determination as to whether the State employee is 
21restricted from accepting such employment by subsection (a) or 
22(b). In making a determination, in addition to any other 
23relevant information, an Inspector General shall assess the 
24effect of the prospective employment or relationship upon 
25decisions referred to in subsections (a) and (b), based on the 
26totality of the participation by the former officer, member, or 
 
 
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1State employee in those decisions. A determination by an 
2Inspector General must be in writing, signed and dated by the 
3Inspector General, and delivered to the subject of the 
4determination within 10 calendar days or the person is deemed 
5eligible for the employment opportunity. For purposes of this 
6subsection, "appropriate Inspector General" means (i) for 
7members and employees of the legislative branch, the 
8Legislative Inspector General; (ii) for the Auditor General and 
9employees of the Office of the Auditor General, the Inspector 
10General provided for in Section 30-5 of this Act; and (iii) for 
11executive branch officers and employees, the Inspector General 
12having jurisdiction over the officer or employee. Notice of any 
13determination of an Inspector General and of any such appeal 
14shall be given to the ultimate jurisdictional authority, the 
15Attorney General, and the Executive Ethics Commission.
16 (g) An Inspector General's determination regarding 
17restrictions under subsection (a) or (b) may be appealed to the 
18appropriate Ethics Commission by the person subject to the 
19decision or the Attorney General no later than the 10th 
20calendar day after the date of the determination.
21 On appeal, the Ethics Commission or Auditor General shall 
22seek, accept, and consider written public comments regarding a 
23determination. In deciding whether to uphold an Inspector 
24General's determination, the appropriate Ethics Commission or 
25Auditor General shall assess, in addition to any other relevant 
26information, the effect of the prospective employment or 
 
 
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1relationship upon the decisions referred to in subsections (a) 
2and (b), based on the totality of the participation by the 
3former officer, member, or State employee in those decisions. 
4The Ethics Commission shall decide whether to uphold an 
5Inspector General's determination within 10 calendar days or 
6the person is deemed eligible for the employment opportunity.
7 (h) The following officers, members, or State employees 
8shall not, within a period of one year immediately after 
9termination of office or State employment, knowingly accept 
10employment or receive compensation or fees for services from a 
11person or entity if the person or entity or its parent or 
12subsidiary, during the year immediately preceding termination 
13of State employment, was a party to a State contract or 
14contracts with a cumulative value of $25,000 or more involving 
15the officer, member, or State employee's State agency, or was 
16the subject of a regulatory or licensing decision involving the 
17officer, member, or State employee's State agency, regardless 
18of whether he or she participated personally and substantially 
19in the award of the State contract or contracts or the making 
20of the regulatory or licensing decision in question:
21  (1) members or officers;
22  (2) members of a commission or board created by the 
23 Illinois Constitution;
24  (3) persons whose appointment to office is subject to 
25 the advice and consent of the Senate;
26  (4) the head of a department, commission, board, 
 
 
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1 division, bureau, authority, or other administrative unit 
2 within the government of this State;
3  (5) chief procurement officers, State purchasing 
4 officers, and their designees whose duties are directly 
5 related to State procurement; and
6  (6) chiefs of staff, deputy chiefs of staff, associate 
7 chiefs of staff, assistant chiefs of staff, and deputy 
8 governors; .
9  (7) employees of the Illinois Racing Board; and
10  (8) employees of the Illinois Gaming Board. 
11 (i) For the purposes of this Section, with respect to 
12officers or employees of a regional transit board, as defined 
13in this Act, the phrase "person or entity" does not include: 
14(i) the United States government, (ii) the State, (iii) 
15municipalities, as defined under Article VII, Section 1 of the 
16Illinois Constitution, (iv) units of local government, as 
17defined under Article VII, Section 1 of the Illinois 
18Constitution, or (v) school districts. 
19(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)

20 (5 ILCS 430/20-10)

21 Sec. 20-10. Offices of Executive Inspectors General.


22 (a) Six Five independent Offices of the Executive Inspector 
23General are
created,
one each for the Governor, the Attorney 
24General, the Secretary of State, the
Comptroller, and the 
25Treasurer and one for gaming activities. Each Office shall be 
 
 
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1under the direction and
supervision
of an Executive Inspector 
2General and shall be a fully independent office with
separate

3appropriations.

4 (b) The Governor, Attorney General, Secretary of State, 
5Comptroller, and
Treasurer shall each appoint an Executive 
6Inspector General, and the Governor shall appoint an Executive 
7Inspector General for gaming activities. Each appointment must 
8be made without regard to
political affiliation and solely on 
9the basis of integrity and
demonstrated ability.
Appointments 
10shall be made by and with the advice and consent of the
Senate 
11by three-fifths of the elected members concurring by record 
12vote.
Any nomination not acted upon by the Senate within 60 
13session days of the
receipt thereof shall be deemed to have 
14received the advice and consent of
the Senate. If, during a 
15recess of the Senate, there is a vacancy in an office
of 
16Executive Inspector General, the appointing authority shall 
17make a
temporary appointment until the next meeting of the 
18Senate when the
appointing authority shall make a nomination to 
19fill that office. No person
rejected for an office of Executive 
20Inspector General shall, except by the
Senate's request, be 
21nominated again for that office at the same session of
the 
22Senate or be appointed to that office during a recess of that 
23Senate.

24 Nothing in this Article precludes the appointment by the 
25Governor, Attorney
General,
Secretary of State, Comptroller, 
26or Treasurer of any other inspector general
required or

 
 
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1permitted by law. The Governor, Attorney General, Secretary of 
2State,
Comptroller, and
Treasurer
each may appoint an existing 
3inspector general as the Executive Inspector
General
required 
4by this
Article, provided that such an inspector general is not 
5prohibited by law,
rule,
jurisdiction, qualification, or 
6interest from serving as the Executive
Inspector General

7required by
this Article.
An appointing authority may not 
8appoint a relative as an Executive Inspector
General.


9 Each Executive Inspector General shall have the following 
10qualifications:


11  (1) has not been convicted of any felony under the laws 
12 of this State,
another State, or the United States;

13  (2) has earned a baccalaureate degree from an 
14 institution of higher
education; and


15  (3) has 5 or more years of cumulative service (A) with 
16 a federal,
State, or
local law enforcement agency, at least 
17 2 years of which have been in a
progressive investigatory 
18 capacity; (B)
as a
federal, State, or local prosecutor; (C)

19 as a
senior manager or executive of a federal, State, or 
20 local
agency; (D) as a member, an officer,
or a State
or 
21 federal judge; or (E) representing any combination of (A) 
22 through (D).


23 The term of each initial Executive Inspector General shall

24commence upon qualification and shall run through June 30, 
252008. The
initial appointments shall be made within 60 days 
26after the effective
date of this Act.

 
 
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1 After the initial term, each Executive Inspector General 
2shall serve
for 5-year terms commencing on July 1 of the year 
3of appointment
and running through June 30 of the fifth 
4following year. An
Executive Inspector General may be 
5reappointed to one or more
subsequent terms.

6 A vacancy occurring other than at the end of a term shall 
7be filled
by the appointing authority only for the balance of 
8the term of the Executive
Inspector General whose office is 
9vacant.

10 Terms shall run regardless of whether the position is 
11filled.

12 (c) The Executive Inspector General appointed by the 
13Attorney General shall
have jurisdiction over the Attorney 
14General and all officers and employees of,
and vendors and 
15others doing business with,
State agencies within the 
16jurisdiction of the Attorney General. The Executive
Inspector 
17General appointed by the Secretary of State shall have 
18jurisdiction
over the Secretary of State and all officers and 
19employees of, and vendors and
others doing business with, State 
20agencies within the
jurisdiction of the Secretary of State. The 
21Executive Inspector General
appointed by the Comptroller shall 
22have jurisdiction over the Comptroller and
all officers and 
23employees of, and vendors and others doing business with,
State 
24agencies within the jurisdiction of the Comptroller. The

25Executive Inspector General appointed by the Treasurer shall 
26have jurisdiction
over the Treasurer and all officers and 
 
 
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1employees of, and vendors and others
doing business with, State 
2agencies within the jurisdiction
of the Treasurer. The 
3Executive Inspector General appointed by the Governor
shall 
4have jurisdiction over (i) the Governor, (ii) the Lieutenant 
5Governor, (iii) all
officers and employees of, and vendors and 
6others doing business with,
executive branch State agencies 
7under the jurisdiction of the
Executive Ethics Commission and 
8not within the jurisdiction of the
Attorney
General, the 
9Secretary of State, the Comptroller, or the Treasurer, or the 
10Executive Inspector General for gaming activities, and (iv) all 
11board members and employees of the Regional Transit Boards and 
12all vendors and others doing business with the Regional Transit 
13Boards.
The Executive Inspector General for gaming activities 
14appointed by the Governor has jurisdiction over the Illinois 
15Gaming Board, all officers and employees of the Illinois Gaming 
16Board, and all activities of the Illinois Gaming Board.

17 The jurisdiction of each Executive Inspector General is to 
18investigate
allegations of fraud, waste, abuse, mismanagement, 
19misconduct, nonfeasance,
misfeasance,
malfeasance, or 
20violations of this Act or violations of other related
laws and 
21rules.


22 (d) The compensation for each Executive Inspector General 
23shall be
determined by the Executive Ethics Commission and 
24shall be made from appropriations made to the Comptroller for 
25this purpose. Subject to Section 20-45 of this Act, each

26Executive Inspector General has full
authority
to organize his 
 
 
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1or her Office of the Executive Inspector General, including the

2employment and determination of the compensation of staff, such 
3as deputies,
assistants, and other employees, as 
4appropriations permit. A separate
appropriation
shall be made 
5for each Office of Executive Inspector General.


6 (e) No Executive Inspector General or employee of the 
7Office of
the Executive Inspector General may, during his or 
8her term of appointment or
employment:


9  (1) become a candidate for any elective office;


10  (2) hold any other elected or appointed public office

11 except for appointments on governmental advisory boards
or 
12 study commissions or as otherwise expressly authorized by 
13 law;


14  (3) be actively involved in the affairs of any 
15 political party or
political organization; or

16  (4) advocate for the appointment of another person to 
17 an appointed or elected office or position or actively 
18 participate in any campaign for any
elective office.


19 In this subsection an appointed public office means a 
20position authorized by
law that is filled by an appointing 
21authority as provided by law and does not
include employment by 
22hiring in the ordinary course of business.


23 (e-1) No Executive Inspector General or employee of the 
24Office of the
Executive Inspector General may, for one year 
25after the termination of his or
her appointment or employment:


26  (1) become a candidate for any elective office;


 
 
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1  (2) hold any elected public office; or


2  (3) hold any appointed State, county, or local judicial 
3 office.


4 (e-2) The requirements of item (3) of subsection (e-1) may 
5be waived by the
Executive Ethics Commission.

6 (f) An Executive Inspector General may be removed only for 
7cause and may
be removed only by the appointing constitutional 
8officer. At the time of the
removal,
the appointing 
9constitutional officer must report to the Executive Ethics

10Commission the
justification for the
removal.

11(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)

12 Section 90-5. The Alcoholism and Other Drug Abuse and 
13Dependency Act is amended by changing Section 5-20 as follows:




14 (20 ILCS 301/5-20)



15 Sec. 5-20. Compulsive gambling program. 

16 (a) Subject to appropriation, the Department shall 
17establish a program for
public education, research, and 
18training regarding problem and compulsive
gambling and the 
19treatment and prevention of problem and compulsive gambling.

20Subject to specific appropriation for these stated purposes, 
21the program must
include all of the following:


22  (1) Establishment and maintenance of a toll-free "800" 
23 telephone number
to provide crisis counseling and referral 
24 services to families experiencing
difficulty as a result of 
 
 
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1 problem or compulsive gambling.


2  (2) Promotion of public awareness regarding the 
3 recognition and
prevention of problem and compulsive 
4 gambling.


5  (3) Facilitation, through in-service training and 
6 other means, of the
availability of effective assistance 
7 programs for problem and compulsive
gamblers.


8  (4) Conducting studies to identify adults and 
9 juveniles in this
State who are, or who are at risk of 
10 becoming, problem or compulsive gamblers.

11 (b) Subject to appropriation, the Department shall either 
12establish and
maintain the program or contract with a private 
13or public entity for the
establishment and maintenance of the 
14program. Subject to appropriation, either
the Department or the 
15private or public entity shall implement the toll-free

16telephone number, promote public awareness, and conduct 
17in-service training
concerning problem and compulsive 
18gambling.

19 (c) Subject to appropriation, the Department shall produce 
20and supply the
signs specified in Section 10.7 of the Illinois 
21Lottery Law, Section 34.1 of
the Illinois Horse Racing Act of 
221975, Section 4.3 of the Bingo License and Tax
Act, Section 8.1 
23of the Charitable Games Act, and Section 13.1 of the Illinois 
24Riverboat
Gambling Act.

25(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)


 
 
09800SB1739sam001- 77 -LRB098 10559 AMC 42403 a


1 Section 90-8. The Illinois Lottery Law is amended by 
2changing Sections 2 and 9.1 and by adding Section 7.18 as 
3follows:



4 (20 ILCS 1605/2) (from Ch. 120, par. 1152)


5 Sec. 2. (a) This Act is enacted to implement and establish 
6within the State
a lottery to be conducted by the State through 
7the Department. The entire net proceeds of the Lottery
are to 
8be used for the support of the State's Common School Fund,

9except as provided in subsection (o) of Section 9.1 and 
10Sections 21.2, 21.5, 21.6, 21.7, and 21.8. The General Assembly 
11finds that it is in the public interest for the Department to 
12conduct the functions of the Lottery with the assistance of a 
13private manager under a management agreement overseen by the 
14Department. The Department shall be accountable to the General 
15Assembly and the people of the State through a comprehensive 
16system of regulation, audits, reports, and enduring 
17operational oversight. The Department's ongoing conduct of the 
18Lottery through a management agreement with a private manager 
19shall act to promote and ensure the integrity, security, 
20honesty, and fairness of the Lottery's operation and 
21administration. It is the intent of the General Assembly that 
22the Department shall conduct the Lottery with the assistance of 
23a private manager under a management agreement at all times in 
24a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), 
251953(b)(4). 

 
 
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1 (b) It is further the intent of the General Assembly that 
2the Division of Internet Gaming of the Department shall 
3administer and regulate Internet wagering at all times in a 
4manner consistent with the applicable provisions of State and 
5federal law pursuant to Section 7.18 of this Law. 
6(Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 
795-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff. 
87-13-09.)


9 (20 ILCS 1605/7.18 new)
10 Sec. 7.18. Internet gaming; Division of Internet Gaming; 
11powers.
12 (a) The General Assembly finds that the Internet has become 
13an integral part of everyday life for a significant number of 
14Illinois residents, not only in regards to their professional 
15life, but also in regards to personal business and 
16communication. Internet wagering on games of chance and games 
17of skill is a core form of entertainment for millions of 
18individuals worldwide. In multiple jurisdictions across the 
19world, Internet gaming is legal, regulated, and taxed, 
20generating billions of dollars in revenue for governments.
21 The General Assembly further finds that Illinois residents 
22participate in illegal on-line gambling on unregulated 
23Internet websites operated by offshore operators who are not 
24subject to regulation or taxation in the United States. Neither 
25federal nor Illinois laws provide sufficient consumer 
 
 
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1protections for Illinois residents who play games of chance or 
2skill on these illegal websites, nor does the State realize any 
3benefits from the revenues generated nor jobs created by 
4illegal on-line gaming.
5 In an opinion dated September 20, 2011, the United States 
6Department of Justice reversed its previous interpretation of 
7the federal Wire Act, 18 U.S.C. 1804, allowing states, subject 
8to certain restrictions, to legalize and regulate Internet 
9gaming and capture the revenue for the benefit of state 
10governments. The Department of Justice's opinion was prompted 
11in part by a request made by the Department pursuant to Public 
12Act 96-34. In order to protect Illinois residents who wager on 
13games of chance and skill through the Internet, and to capture 
14revenues and create jobs generated from Internet gaming, it is 
15in the best interest of the State and its citizens to regulate 
16this activity by authorizing and establishing a secure, 
17responsible, fair, and legal system of Internet gaming that 
18complies with the United States Department of Justice's 
19September 2011 opinion concerning the federal Wire Act.
20 The General Assembly additionally finds that pursuant to 
21the federal Unlawful Internet Gambling Enforcement Act of 2006 
22(UIGEA), 31 U.S.C. 5301, the provisions of this Section are 
23consistent and comply with the UIGEA and specifically authorize 
24use of the Internet to place, receive, or otherwise knowingly 
25transmit a bet or wager where Internet wagering complies with 
26this Section and rules adopted pursuant to this Section. 
 
 
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1 (b) As used in this Section: 
2 "Authorized participant" means a person who has a valid 
3Internet wagering account with an Internet gaming licensee and 
4is at least 21 years of age.
5 "Division" means the Division of Internet Gaming within the 
6Department of the Lottery.
7 "Fee-based game" means a game determined by the Division to 
8be a fee-based game, where the Internet gaming licensee charges 
9a fee, rake, or commission for operating the game.
10 "Gross fee-based gaming revenue" means the fee, rake, or 
11commission charged by the Internet gaming licensee for 
12operation of fee-based games.
13 "Gross gaming revenue" is the aggregate of gross fee-based 
14gaming revenue and gross non-fee-based gaming revenue.
15 "Gross non-fee-based gaming revenue" means the aggregate 
16of the amount of net wins received on all non-fee-based games. 
17 "Internet" means the international computer network of 
18interoperable packet-switched data networks, inclusive of such 
19additional technological platforms as mobile, satellite, and 
20other electronic distribution channels approved by the 
21Division. 
22 "Internet game" means a fee-based or non-fee-based game of 
23skill or chance that is offered by an Internet gaming licensee, 
24as authorized by the Division. "Internet game" also includes 
25gaming tournaments conducted via the Internet in which players 
26compete against one another in one or more of the games 
 
 
09800SB1739sam001- 81 -LRB098 10559 AMC 42403 a


1authorized in this definition or by the Division or in approved 
2variations or composites as authorized by the Division. 
3 "Internet gaming licensee" means a person, corporation, 
4partnership, or other entity receiving an Internet gaming 
5license from the Division to conduct Internet wagering.
6 "Internet gaming platform" means an interactive set of 
7related data networks controlled by an Internet gaming licensee 
8for the purpose of offering wagering on Internet games to 
9authorized participants.
10 "Internet gaming vendor" means any person, corporation, 
11partnership, or other entity that is certified by the Division 
12to provide or offer to provide goods, software, or services to 
13an Internet gaming licensee, including any goods, software, or 
14services related to or supporting: (i) the acceptance, testing, 
15auditing, management, operation, support, administration, or 
16control of Internet wagers, Internet games, Internet wagering 
17accounts, or Internet gaming platforms or (ii) the management, 
18operation, administration, or control of payment processing 
19systems. The Division shall have the sole and exclusive 
20jurisdiction to determine what persons, corporations, 
21partnerships, or other entities require certification pursuant 
22to this Act and the rules adopted pursuant to this Act. 
23Notwithstanding this definition, the licensing of trademarks, 
24names, likenesses, graphics, or other images, without more, 
25shall not render a licensor of such intellectual property an 
26Internet gaming vendor. 
 
 
09800SB1739sam001- 82 -LRB098 10559 AMC 42403 a


1 "Internet wagering" means the placing of wagers with an 
2Internet gaming licensee by persons who are either physically 
3present in Illinois when placing a wager or otherwise permitted 
4to place a wager by law. The intermediate routing of electronic 
5data in connection with Internet wagering (including across 
6state lines) shall not determine the location or locations in 
7which a wager is initiated, received, or otherwise made.
8 "Internet wagering account" means an electronic ledger 
9wherein the following types of transactions relative to the 
10Internet gaming platform are recorded: (i) deposits; (ii) 
11withdrawals; (iii) amounts wagered; (iv) amounts paid on 
12winning wagers; (v) service or other transaction-related 
13charges authorized by the patron, if any; (vi) adjustments to 
14the account; and (vii) any other information required by the 
15Division. 
16 "Net wins" means the amount of Internet wagers received by 
17the Internet gaming licensee on non-fee based games less the 
18amount paid by the Internet gaming licensee as winnings on that 
19non-fee based game.
20 "Non-fee-based game" means a game determined by the 
21Division to be a non-fee-based game, where (i) the player plays 
22against the Internet gaming licensee and (ii) the Internet 
23gaming licensee is banking the game and its bottom line is 
24affected by players' wins and losses. 
25 (c) Internet wagering, as defined in this Section, is 
26hereby authorized to the extent that it is carried out in 
 
 
09800SB1739sam001- 83 -LRB098 10559 AMC 42403 a


1accordance with the provisions of this Section. 
2 (d) The Division of Internet Gaming is established within 
3the Department of the Lottery and shall have all powers and 
4duties as specified in this Section and all other powers 
5necessary and proper to enable it to fully and effectively 
6execute the provisions of this Section for the purpose of 
7administering, regulating, and enforcing the system of 
8Internet gaming established by this Section. The Division of 
9Internet Gaming's jurisdiction shall extend under this Section 
10to every person, corporation, partnership, or other entity 
11involved in Internet gaming operations. To the extent 
12consistent with the provisions of this Section, the Division 
13shall be subject to and governed by provisions of this Article 
14and all of the laws and rules applicable to the Department. The 
15Division shall not be subject to any private management 
16agreement established pursuant to Section 9.1 of this Act. The 
17Division of Internet Gaming is also authorized to enter into 
18agreements with other gaming entities, including foreign 
19entities, for the purpose of facilitating, administering, and 
20regulating multijurisdiction Internet gaming to the extent 
21consistent with State and federal laws and the laws of any 
22foreign jurisdiction, if such jurisdiction is a party to the 
23multijurisdictional agreement. The Division shall not 
24authorize, administer, or otherwise maintain a system for 
25offering wagering on any amateur or professional sporting event 
26or contest, unless doing so is consistent with State and 
 
 
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1federal laws. Further, notwithstanding any other provision of 
2this Section, wagers may be accepted from persons who are not 
3physically present in this State if the Division determines 
4that such wagering is not inconsistent with federal law or the 
5law of the jurisdiction, including any foreign nation, in which 
6any such person is located, or such wagering is conducted 
7pursuant to a multijurisdictional agreement that is not 
8inconsistent with federal law to which this State is a party. 
9The Division shall be funded with moneys appropriated to the 
10Department of the Lottery.
11 (e) The Division of Internet Gaming is authorized to issue 
12Internet gaming licenses to persons, firms, partnerships, or 
13corporations that apply for such licensure upon a determination 
14by the Division that the applicant is eligible for an Internet 
15gaming license pursuant to this Section and rules adopted by 
16the Division. An Internet gaming license issued pursuant to 
17this Section shall be valid for a period of 5 years after the 
18date of issuance and shall be renewable thereafter for an 
19additional 5 years based on a determination by the Division 
20that the licensee continues to meet all the requirements of 
21this Section and the Division's rules. Notwithstanding any 
22other law to the contrary, any assignment or transfer of an 
23interest in an Internet gaming license, or a greater than 10% 
24interest (direct or indirect) in any entity holding such a 
25license, is subject to the written approval by the Division. 
26Approved transferees are subject to a $250,000 non-refundable 
 
 
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1application fee. Eligibility for application for an Internet 
2gaming license shall be limited to the following: (i) any 
3person or entity that holds a valid and unrevoked owners 
4license issued pursuant to the Illinois Gambling Act; (ii) any 
5person or entity that holds a valid and unrevoked electronic 
6gaming license issued pursuant to the Illinois Gambling Act; 
7and (iii) any person or entity that holds a valid and unrevoked 
8advance deposit wagering license issued pursuant to the 
9Illinois Horse Racing Act of 1975. No Internet gaming license 
10shall be granted to any applicant who has accepted wagers via 
11the Internet in contravention of this Section or United States 
12law in the 10 years preceding the application date.
13 A qualified applicant may apply to the Division for an 
14Internet gaming license to offer wagering on Internet games as 
15provided in this Act. The application shall be made on forms 
16provided by the Division and shall contain such information as 
17the Division prescribes, including, but not limited to, 
18detailed information regarding the ownership and management of 
19the applicant, detailed personal information regarding the 
20applicant, financial information regarding the applicant, and 
21the gaming history and experience of the applicant in the 
22United States and other jurisdictions. Each application shall 
23be accompanied by a non-refundable application fee of $250,000. 
24An incomplete application shall be cause for denial of a 
25license by the Division.
26 All information, records, interviews, reports, statements, 
 
 
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1memoranda, or other data supplied to or used by the Division in 
2the course of its review or investigation of an application for 
3an Internet gaming license or a renewal under this Section 
4shall be strictly confidential and used only for the purpose of 
5evaluating an applicant for a license or a renewal. 
6Notwithstanding any law to the contrary, such information is 
7not subject to the requirements of the Freedom of Information 
8Act.
9 Any person, association, corporation, partnership, or 
10entity who (i) knowingly makes materially false statements in 
11order to obtain an Internet gaming license; (ii) knowingly 
12advertises within the State of Illinois any game, product, or 
13feature that is not authorized by his or her license; or (iii) 
14violates any other provision of this Section, or any rule 
15adopted pursuant to this Section, is guilty of a Class B 
16misdemeanor. A person, association, corporation, partnership, 
17or entity who commits a second or subsequent violation commits 
18a Class A misdemeanor. In the case of an association, 
19corporation, partnership, or entity, imprisonment may be 
20imposed upon its officers who knowingly participated in the 
21violation.
22 An application shall be filed and considered in accordance 
23with the rules of the Division. The Division shall adopt rules 
24to effectuate the provisions of this subsection (e) within 30 
25days after the effective date of this amendatory Act of the 
2698th General Assembly.
 
 
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1 A license fee of $20,000,000 shall be paid to the Division 
2by an Internet gaming licensee at the time of issuance of the 
3license. All application and license fees shall be deposited 
4into the State Lottery Fund. The license fee imposed by this 
5subsection (e) shall constitute an advance payment of Internet 
6wagering taxes owed by the Internet gaming licensee pursuant to 
7subsection (m) of this Section.
8 (f) The Division is authorized to certify Internet gaming 
9vendors to provide goods, software, or services to Internet 
10gaming licensees. Certification by the Division of an Internet 
11gaming vendor shall be for a period of 5 years and shall be 
12renewable thereafter for an additional 5 years based on a 
13determination by the Division that the Internet gaming vendor 
14continues to meet all the requirements of this Section and the 
15Division's rules. 
16 A person, corporation, partnership, or other entity may 
17apply to the Division to become an Internet gaming vendor as 
18provided in this Act and the rules of the Division. The 
19application shall be made on forms provided by the Division and 
20shall contain such information as the Division prescribes, 
21including, but not limited to, detailed information regarding 
22the ownership and management of the applicant, detailed 
23personal information regarding the applicant, financial 
24information regarding the applicant, and the gaming history and 
25experience of the applicant in the United States and other 
26jurisdictions. Each application shall be accompanied by a 
 
 
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1non-refundable application fee, such application fee to be 
2determined by the Division, but shall not exceed $250,000. An 
3incomplete application shall be cause for denial of 
4certification. No certification shall be granted to an Internet 
5gaming vendor who has accepted wagers via the Internet in 
6contravention of this Act or in contravention of the any law of 
7the United States.
8 All information, records, interviews, reports, statements, 
9memoranda, or other data supplied to or used by the Division in 
10the course of its review or investigation of an application for 
11certification as an Internet gaming vendor shall be strictly 
12confidential and shall only be used for the purpose of 
13evaluating an applicant for a certification. Notwithstanding 
14any law to the contrary, such information is not subject to the 
15requirements of the Freedom of Information Act.
16 Any person, association, corporation, partnership, or 
17entity who (i) knowingly makes materially false statements in 
18order to obtain certification as an Internet gaming vendor or 
19(ii) violates any other provision of this Section, or any rule 
20adopted pursuant to this Section, is guilty of a Class B 
21misdemeanor. A person, association, corporation, partnership, 
22or entity who commits a second or subsequent violation commits 
23a Class A misdemeanor. In the case of an association, 
24corporation, partnership, or entity, imprisonment may be 
25imposed upon its officers who knowingly participated in the 
26violation. 
 
 
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1 (g) The Division shall have all the powers necessary or 
2desirable to effectuate the provisions of this Section, 
3including, but not limited to, the following powers:
4  (1) To develop qualifications, standards, and 
5 procedures for approval and licensure of Internet gaming 
6 licensees and certification of Internet gaming vendors. 
7  (2) To decide promptly and in reasonable order all 
8 license applications and to approve, deny, suspend, 
9 revoke, restrict, or refuse to renew Internet gaming 
10 licenses and Internet gaming vendor certifications. Any 
11 party aggrieved by an action of the Division denying, 
12 suspending, revoking, restricting, or refusing to renew a 
13 license may request a hearing before the Division. A 
14 request for hearing must be made to the Division in writing 
15 within 5 days after service of notice of the action by the 
16 Division. Notice of action by the Division shall be served 
17 either by personal delivery or by certified mail, postage 
18 prepaid, to the aggrieved party. Notice served by certified 
19 mail shall be deemed complete on the business day following 
20 the date of such mailing. The Division shall conduct all 
21 requested hearings promptly and in reasonable order.
22  (3) To conduct all hearings pertaining to civil 
23 violations of this Section or rules adopted pursuant to 
24 this Section. Such hearings shall be governed by Section 8 
25 of this Act. The Division shall further adopt hearing rules 
26 and procedures for conducting hearings pursuant to this 
 
 
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1 Section. In such hearings, reproduced copies of any of the 
2 Division's records relating to an Internet gaming licensee 
3 or Internet gaming vendor, including (i) any notices 
4 prepared in the Division's ordinary course of business and 
5 (ii) any books, records, or other documents offered in the 
6 name of the Division under certificate of the Executive 
7 Director, or any officer or employee of the Division 
8 designated in writing by the Executive Director, shall, 
9 without further proof, be admitted into evidence in any 
10 hearing before the hearing officers or any legal proceeding 
11 and shall be prima facie proof of the information contained 
12 therein. 
13  The Office of the Attorney General shall prosecute all 
14 criminal violations of this Section or rules adopted 
15 pursuant to this Section. 
16  (4) To provide for the establishment and collection of 
17 all license and certification fees and taxes imposed by 
18 this Section and the rules adopted pursuant to this 
19 Section. All such fees and taxes shall be deposited into 
20 the State Lottery Fund.
21  (5) To develop and enforce testing, audit, and 
22 certification requirements and schedules for Internet 
23 gaming platforms, Internet wagering, and Internet wagering 
24 accounts, including, without limitation, age and 
25 identification verification software, geolocation 
26 software, Internet games, and gaming hub software.
 
 
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1  (6) To develop and enforce requirements for 
2 responsible gaming and player protection, including 
3 privacy and confidentiality standards and duties.
4  (7) To develop and enforce requirements for accepting 
5 Internet wagers, Internet wagering accounts, and 
6 authorized participants and minimum insurance 
7 requirements.
8  (8) To develop and promote standards governing 
9 contracts between Internet gaming licensees and the 
10 payments industry.
11  (9) To develop and enforce standards and requirements 
12 regarding anti-fraud, anti-money laundering, and 
13 anti-collusion methods.
14  (10) To develop protocols related to the security of 
15 and disputes arising over Internet wagers and Internet 
16 wagering accounts.
17  (11) To be present through its inspectors and agents 
18 upon the premises of any location where Internet gaming 
19 operations are conducted by an Internet gaming licensee or 
20 where components of an Internet gaming licensee's Internet 
21 gaming platform are located, housed, or otherwise 
22 maintained.
23  (12) To adopt by rule a code of conduct governing 
24 Division employees that ensures, to the maximum extent 
25 possible, that persons subject to this Section avoid 
26 situations, relationships, or associations that may 
 
 
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1 represent or lead to an actual or perceived conflict of 
2 interest.
3  (13) To develop and administer civil penalties for 
4 Internet gaming licensees and Internet gaming vendors who 
5 violate this Section or the rules adopted pursuant to this 
6 Section.
7  (14) To audit and inspect, on reasonable notice, books 
8 and records relevant to Internet gaming operations, 
9 Internet wagers, Internet wagering accounts, Internet 
10 games, or Internet gaming platforms, including without 
11 limitation, those books and records regarding financing or 
12 accounting, marketing or operational materials, or any 
13 other such materials held by or in the custody of any 
14 Internet gaming licensee or Internet gaming vendor. The 
15 Division may assert such authority by administrative 
16 subpoena, which may further set forth relevant document 
17 requests and interrogatories, and which shall be 
18 enforceable in the Circuit Court of Cook County in the 
19 State of Illinois.
20  (15) To determine whether an Internet game is a 
21 fee-based game or non-fee-based game. 
22  (16) To acquire or lease real property and make 
23 improvements thereon and acquire by lease or by purchase 
24 personal property, including, but not limited to:
25   (A) computers hardware;
26   (B) mechanical, electronic, and online equipment 
 
 
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1 and terminals; and
2   (C) intangible property, including, but not 
3 limited to, computer programs, software, and systems. 
4 (h) The Division shall adopt and enforce such rules 
5governing the administration and conduct of Internet gaming as 
6it deems necessary to carry out the purpose of this Section. 
7These rules shall be subject to the provisions of the Illinois 
8Administrative Procedure Act and may include, but shall not be 
9limited to:
10  (1) the types of Internet games to be offered;
11  (2) price points for Internet games;
12  (3) player fees and percentage of rake commission or 
13 other fee for Internet games;
14  (4) forms of payment accepted for Internet games;
15  (5) the number, type, and amount of prizes for Internet 
16 games;
17  (6) the method of selecting winners and validating 
18 winnings;
19  (7) the frequency of Internet games;
20  (8) responsible gaming;
21  (9) technical and financial standards for Internet 
22 wagering, Internet wagering accounts, and Internet gaming 
23 platforms, systems, and software or other electronic 
24 components for Internet gaming; 
25  (10) such other matters necessary or desirable for the 
26 efficient and economical operation and administration of 
 
 
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1 Internet gaming and for the convenience of authorized 
2 Internet gaming participants and Internet gaming licensees 
3 and certified Internet gaming vendors.
4 (i) Notwithstanding any law to the contrary, the 
5Superintendent of the Lottery shall hire an Executive Director 
6who shall be responsible to the Superintendent and shall serve 
7subject only to removal by the Superintendent for incompetence, 
8neglect of duty, or malfeasance in office. The Executive 
9Director shall be responsible for the supervision and direction 
10of the Division staff and for the necessary administrative 
11activities of the Division, subject only to the direction and 
12approval of the Superintendent notwithstanding any law to the 
13contrary.
14 Notwithstanding any law to the contrary, the Executive 
15Director shall hire and employ employees as may be necessary to 
16carry out the provisions of this Law or to perform the duties 
17and exercise the powers conferred by law upon the Division. All 
18employees of the Division shall receive the compensation fixed 
19by the Executive Director, subject only to the Superintendent. 
20The Superintendent, Executive Director, and Division employees 
21shall be reimbursed for all actual and necessary traveling and 
22other expenses and disbursements necessarily incurred or made 
23by them in the discharge of their official duties. The 
24Superintendent and Executive Director may also incur necessary 
25expenses for office space, furniture, stationery, printing, 
26operations, and other incidental expenses.
 
 
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1 The Executive Director shall report monthly to the 
2Superintendent and the Lottery Control Board a full and 
3complete statement of Internet gaming revenues, other expenses 
4for each month, and the amounts to be transferred to the State 
5Lottery Fund pursuant to this Section. The Executive Director 
6shall also make an annual report, which shall include a full 
7and complete statement of Internet gaming revenues and other 
8expenses, to the Superintendent, the Governor, and the Board. 
9All reports required by this subsection shall be public and 
10copies of all such reports shall be sent to the Speaker of the 
11House of Representatives, the President of the Senate, the 
12Minority Leader of the House of Representatives, and the 
13Minority Leader of the Senate.
14 Subject to appropriation, the Executive Director shall 
15continue to apprise himself or herself as to: (i) the operation 
16and the administration of similar Internet gaming laws that may 
17be in effect in other states or countries; (ii) any relevant 
18literature on Internet gaming that from time to time may be 
19published or available; (iii) any federal laws and regulations 
20that may affect the operation of Internet gaming; and (iv) the 
21reaction of Illinois citizens to existing and potential 
22features of Internet gaming with a view to recommending or 
23effecting changes that will tend to serve the purposes of this 
24Section.
25 (j) An Internet gaming licensee's Internet gaming platform 
26shall provide one or more mechanisms to reasonably verify that 
 
 
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1a participant is 21 years of age or older and that wagering on 
2Internet games is limited to transactions that are initiated 
3and received or otherwise made exclusively within the State of 
4Illinois. A participant must satisfy the verification 
5requirements before he or she may establish an Internet gaming 
6account and wager on Internet games offered by Internet gaming 
7licensees. Further, all servers on which any Internet games are 
8operated and conducted (and all underlying material 
9technology) shall be located in the State of Illinois, unless 
10the Division has otherwise authorized another location. At such 
11a time that a legally compliant mechanism is established to 
12permit wagering on Internet games by individuals physically 
13located outside of the State, the Division may adopt rules and 
14procedures to allow and govern wagering by those individuals 
15and shall have the authority to enter into multijurisdictional 
16agreements and related and ancillary agreements in order to 
17effectuate such wagering. An Internet gaming licensee's 
18Internet gaming platform shall also provide mechanisms 
19designed to detect and prevent the unauthorized use of Internet 
20wagering accounts and to detect and prevent fraud, money 
21laundering, and collusion. If any participant in Internet 
22gaming violates any provisions of this Section or rule adopted 
23by the Division, then the participant's winnings shall be 
24forfeited. Any forfeited winnings shall be deposited into the 
25State Lottery Fund.
26 The following persons shall not be authorized to establish 
 
 
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1Internet gaming accounts or wager on Internet games offered by 
2Internet gaming licensees, except where required and 
3authorized by the Division for testing purposes or to otherwise 
4fulfill the purposes set forth in this Act: (i) any minor under 
521 years of age; (ii) any current member of the Lottery Control 
6Board; (iii) any current officer or other person employed by 
7the Department of the Lottery, the Division of Internet Gaming, 
8the Illinois Racing Board, or the Illinois Gaming Board; (iv) 
9any spouse, civil union partner, child, brother, sister, or 
10parent residing as a member of the same household in the 
11principal place of abode of any persons identified in (ii) or 
12(iii); and (iv) any individual whose name appears in the 
13Division's responsible gaming database.
14 (k) The Division shall develop responsible gaming 
15measures, including a statewide responsible gaming database 
16identifying individuals who shall be prohibited from 
17establishing an Internet wagering account or participating in 
18Internet gaming offered by an Internet gaming licensee. The 
19Executive Director may place a person on the responsible gaming 
20database if that person (i) has been convicted in any 
21jurisdiction of a felony, any crime of moral turpitude, or a 
22crime involving gaming; (ii) has violated this Act, the 
23Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, 
24the Raffles Act, the Illinois Pull Tabs and Jar Games Act, the 
25Bingo License and Tax Act, the Charitable Games Act, or the 
26Video Gaming Act; (iii) has performed any act or had a 
 
 
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1notorious or unsavory reputation that would adversely affect 
2public confidence and trust in gaming; or (iv) has his or her 
3name on any valid and current exclusion list from another 
4jurisdiction in the United States or foreign jurisdiction. By 
5rule, the Division shall adopt procedures for the establishment 
6and maintenance of the responsible gaming database. The 
7Illinois Gaming Board, the Illinois Racing Board, and the 
8Department of the Lottery shall, in a format specified by the 
9Division, provide the Division with names of individuals to be 
10included in the responsible gaming database. The Division may 
11impose reasonable fees on persons authorized to access and use 
12the responsible gaming database.
13 An Internet gaming licensee's Internet gaming platform 
14shall offer in a clear, conspicuous, and accessible manner, 
15responsible gambling services and technical controls to 
16participants, including both temporary and permanent 
17self-exclusion for all games offered; the ability for 
18participants to establish their own periodic deposit and 
19wagering limits and maximum playing times; referrals to crisis 
20counseling and referral services for individuals and families 
21experiencing difficulty as a result of problem or compulsive 
22gambling; and other services as the Division reasonably may 
23determine are necessary or appropriate to reduce and prevent 
24problem gambling. Any authorized participant who is allowed to 
25participate in Internet gaming may voluntarily prohibit 
26themselves from establishing an Internet gaming account. The 
 
 
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1Division shall incorporate the voluntary self-exclusion list 
2into the responsible gaming database and maintain both the 
3self-exclusion list and the responsible gaming database in a 
4confidential manner. Notwithstanding any law to the contrary, 
5the self-exclusion list and responsible gaming database are not 
6public records subject to copying and disclosure under the 
7Freedom of Information Act.
8 (l) There is created the Responsible Internet Gaming 
9Advisory Board, consisting of the following members:
10  (1) the Superintendent of the Lottery, who shall be an 
11 ex officio member and shall serve as Chairperson;
12  (2) the Executive Director of the Division of Internet 
13 Gaming, who shall be an ex officio member;
14  (3) one representative from a national organization 
15 dedicated to the study and prevention of problem gambling, 
16 appointed by the Superintendent;
17  (4) one member who is an academic professional engaged 
18 in the study of problem gambling at a university or other 
19 institution of higher learning, appointed by the 
20 Superintendent;
21  (5) one member who has professional experience and 
22 expertise in the field of technical and systemic controls 
23 for responsible Internet gaming, appointed by the 
24 Superintendent; and
25  (6) one member who is an Illinois citizen and a member 
26 of the public, appointed by the Superintendent.
 
 
09800SB1739sam001- 100 -LRB098 10559 AMC 42403 a


1 Each Advisory Board member shall serve for a term of 4 
2years and until his or her successor is appointed and 
3qualified. However, in making initial appointments, 2 shall be 
4appointed to serve for 2 years and 2 shall be appointed to 
5serve for 4 years. Appointments to fill vacancies shall be made 
6in the same manner as original appointments for the unexpired 
7portion of the vacated term. Initial terms shall begin on the 
8effective date of this amendatory Act of the 98th General 
9Assembly. Each member of the Advisory Board shall be eligible 
10for reappointment at the discretion of the Superintendent.
A 
11member of the Advisory Board may be removed from office for 
12just cause. Advisory Board members shall receive no 
13compensation, but shall be reimbursed for expenses incurred in 
14connection with their duties as Advisory Board members.
15 Four members shall constitute a quorum. A majority vote of 
16the Advisory Board is required for an Advisory Board decision. 
17The Advisory Board shall meet no less often than once every 6 
18months and shall meet as often as the Chairperson deems 
19necessary. Advisory Board members shall not be liable for any 
20of their acts, omissions, decisions, or any other conduct in 
21connection with their duties on the Advisory Board, except 
22those involving willful, wanton, or intentional misconduct.
23 The Advisory Board shall make recommendations to the 
24Executive Director regarding the development of rules and 
25procedures to reduce and prevent problem or compulsive gambling 
26and youth gambling and to ensure the conduct of safe, fair, and 
 
 
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1responsible Internet gaming. The Advisory Board may have such 
2powers as may be granted by the Executive Director to carry out 
3the provisions of this Section regarding responsible Internet 
4gaming. 
5 (m) A tax is hereby imposed on Internet gaming licensees, 
6based on the gross gaming revenue received by an Internet 
7gaming licensee from Internet games authorized pursuant to this 
8Section, at the following rates:
9  (1) for all non-fee-based games, the tax shall be 20% 
10 of annual gross non-fee-based gaming revenue; and
11  (2) for all fee-based games the tax shall be 15% of 
12 annual gross fee-based gaming revenue.
13 The taxes imposed by this subsection (m) shall be paid by 
14the Internet gaming licensee to the Division no later than 5:00 
15p.m. on the day after the day when the wagers were made.
16 In recognition of the advance tax revenue paid by the 
17Internet gaming licensee in its license fee, an Internet gaming 
18licensee shall be taxed at the following rates during the 
19initial 5-year license term:
20  (1) for all non-fee-based games, the tax shall be 10% 
21 of annual gross non-fee-based gaming revenue up to and 
22 including $200,000,000 of gross gaming revenue and 20% of 
23 annual gross non-fee-based gaming revenue in excess 
24 $200,000,000 of gross gaming revenue; and
25  (2) for all fee-based games, the tax shall be 7.5% of 
26 annual gross fee-based gaming revenue up to and including 
 
 
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1 $200,000,000 of gross gaming revenue and 15% of annual 
2 gross fee-based gaming revenue in excess $200,000,000 of 
3 gross gaming revenue.
4 (n) Beginning on the effective date of this amendatory Act 
5of the 98th General Assembly, from the tax revenue deposited in 
6the State Lottery Fund under this Section, $10,000,000 shall be 
7paid annually to the Department of Human Services for the 
8administration of programs to treat problem gambling.
9 (o) Beginning on the effective date of this amendatory Act 
10of the 98th General Assembly, from the tax revenue deposited in 
11the State Lottery Fund under this Section, $5,000,000 shall be 
12transferred into the State Fairgrounds Capital Improvements 
13Fund annually.
14 (p) Beginning on the effective date of this amendatory Act 
15of the 98th General Assembly, after the amounts specified in 
16subsections (n) and (o) have been paid or transferred, all 
17remaining tax revenue deposited in the State Lottery Fund 
18pursuant to this Section shall be transferred to the Pension 
19Stabilization Fund. 

20 (20 ILCS 1605/9.1)
21 Sec. 9.1. Private manager and management agreement.
22 (a) As used in this Section:
23 "Offeror" means a person or group of persons that responds 
24to a request for qualifications under this Section.
25 "Request for qualifications" means all materials and 
 
 
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1documents prepared by the Department to solicit the following 
2from offerors:
3  (1) Statements of qualifications.
4  (2) Proposals to enter into a management agreement, 
5 including the identity of any prospective vendor or vendors 
6 that the offeror intends to initially engage to assist the 
7 offeror in performing its obligations under the management 
8 agreement.
9 "Final offer" means the last proposal submitted by an 
10offeror in response to the request for qualifications, 
11including the identity of any prospective vendor or vendors 
12that the offeror intends to initially engage to assist the 
13offeror in performing its obligations under the management 
14agreement. 
15 "Final offeror" means the offeror ultimately selected by 
16the Governor to be the private manager for the Lottery under 
17subsection (h) of this Section.
18 (b) By September 15, 2010, the Governor shall select a 
19private manager for the total management of the Lottery with 
20integrated functions, such as lottery game design, supply of 
21goods and services, and advertising and as specified in this 
22Section.
23 (c) Pursuant to the terms of this subsection, the 
24Department shall endeavor to expeditiously terminate the 
25existing contracts in support of the Lottery in effect on the 
26effective date of this amendatory Act of the 96th General 
 
 
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1Assembly in connection with the selection of the private 
2manager. As part of its obligation to terminate these contracts 
3and select the private manager, the Department shall establish 
4a mutually agreeable timetable to transfer the functions of 
5existing contractors to the private manager so that existing 
6Lottery operations are not materially diminished or impaired 
7during the transition. To that end, the Department shall do the 
8following:
9  (1) where such contracts contain a provision 
10 authorizing termination upon notice, the Department shall 
11 provide notice of termination to occur upon the mutually 
12 agreed timetable for transfer of functions;
13  (2) upon the expiration of any initial term or renewal 
14 term of the current Lottery contracts, the Department shall 
15 not renew such contract for a term extending beyond the 
16 mutually agreed timetable for transfer of functions; or
17  (3) in the event any current contract provides for 
18 termination of that contract upon the implementation of a 
19 contract with the private manager, the Department shall 
20 perform all necessary actions to terminate the contract on 
21 the date that coincides with the mutually agreed timetable 
22 for transfer of functions.
23 If the contracts to support the current operation of the 
24Lottery in effect on the effective date of this amendatory Act 
25of the 96th General Assembly are not subject to termination as 
26provided for in this subsection (c), then the Department may 
 
 
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1include a provision in the contract with the private manager 
2specifying a mutually agreeable methodology for incorporation.
3 (c-5) The Department shall include provisions in the 
4management agreement whereby the private manager shall, for a 
5fee, and pursuant to a contract negotiated with the Department 
6(the "Employee Use Contract"), utilize the services of current 
7Department employees to assist in the administration and 
8operation of the Lottery. The Department shall be the employer 
9of all such bargaining unit employees assigned to perform such 
10work for the private manager, and such employees shall be State 
11employees, as defined by the Personnel Code. Department 
12employees shall operate under the same employment policies, 
13rules, regulations, and procedures, as other employees of the 
14Department. In addition, neither historical representation 
15rights under the Illinois Public Labor Relations Act, nor 
16existing collective bargaining agreements, shall be disturbed 
17by the management agreement with the private manager for the 
18management of the Lottery. 
19 (d) The management agreement with the private manager shall 
20include all of the following:
21  (1) A term not to exceed 10 years, including any 
22 renewals.
23  (2) A provision specifying that the Department:
24   (A) shall exercise actual control over all 
25 significant business decisions; 
26   (A-5) has the authority to direct or countermand 
 
 
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1 operating decisions by the private manager at any time;
2   (B) has ready access at any time to information 
3 regarding Lottery operations;
4   (C) has the right to demand and receive information 
5 from the private manager concerning any aspect of the 
6 Lottery operations at any time; and
7   (D) retains ownership of all trade names, 
8 trademarks, and intellectual property associated with 
9 the Lottery.
10  (3) A provision imposing an affirmative duty on the 
11 private manager to provide the Department with material 
12 information and with any information the private manager 
13 reasonably believes the Department would want to know to 
14 enable the Department to conduct the Lottery.
15  (4) A provision requiring the private manager to 
16 provide the Department with advance notice of any operating 
17 decision that bears significantly on the public interest, 
18 including, but not limited to, decisions on the kinds of 
19 games to be offered to the public and decisions affecting 
20 the relative risk and reward of the games being offered, so 
21 the Department has a reasonable opportunity to evaluate and 
22 countermand that decision.
23  (5) A provision providing for compensation of the 
24 private manager that may consist of, among other things, a 
25 fee for services and a performance based bonus as 
26 consideration for managing the Lottery, including terms 
 
 
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1 that may provide the private manager with an increase in 
2 compensation if Lottery revenues grow by a specified 
3 percentage in a given year.
4  (6) (Blank).
5  (7) A provision requiring the deposit of all Lottery 
6 proceeds to be deposited into the State Lottery Fund except 
7 as otherwise provided in Section 20 of this Act.
8  (8) A provision requiring the private manager to locate 
9 its principal office within the State.
10  (8-5) A provision encouraging that at least 20% of the 
11 cost of contracts entered into for goods and services by 
12 the private manager in connection with its management of 
13 the Lottery, other than contracts with sales agents or 
14 technical advisors, be awarded to businesses that are a 
15 minority owned business, a female owned business, or a 
16 business owned by a person with disability, as those terms 
17 are defined in the Business Enterprise for Minorities, 
18 Females, and Persons with Disabilities Act. 
19  (9) A requirement that so long as the private manager 
20 complies with all the conditions of the agreement under the 
21 oversight of the Department, the private manager shall have 
22 the following duties and obligations with respect to the 
23 management of the Lottery:
24   (A) The right to use equipment and other assets 
25 used in the operation of the Lottery.
26   (B) The rights and obligations under contracts 
 
 
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1 with retailers and vendors.
2   (C) The implementation of a comprehensive security 
3 program by the private manager.
4   (D) The implementation of a comprehensive system 
5 of internal audits.
6   (E) The implementation of a program by the private 
7 manager to curb compulsive gambling by persons playing 
8 the Lottery.
9   (F) A system for determining (i) the type of 
10 Lottery games, (ii) the method of selecting winning 
11 tickets, (iii) the manner of payment of prizes to 
12 holders of winning tickets, (iv) the frequency of 
13 drawings of winning tickets, (v) the method to be used 
14 in selling tickets, (vi) a system for verifying the 
15 validity of tickets claimed to be winning tickets, 
16 (vii) the basis upon which retailer commissions are 
17 established by the manager, and (viii) minimum 
18 payouts.
19  (10) A requirement that advertising and promotion must 
20 be consistent with Section 7.8a of this Act.
21  (11) A requirement that the private manager market the 
22 Lottery to those residents who are new, infrequent, or 
23 lapsed players of the Lottery, especially those who are 
24 most likely to make regular purchases on the Internet as 
25 permitted by law.
26  (12) A code of ethics for the private manager's 
 
 
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1 officers and employees.
2  (13) A requirement that the Department monitor and 
3 oversee the private manager's practices and take action 
4 that the Department considers appropriate to ensure that 
5 the private manager is in compliance with the terms of the 
6 management agreement, while allowing the manager, unless 
7 specifically prohibited by law or the management 
8 agreement, to negotiate and sign its own contracts with 
9 vendors.
10  (14) A provision requiring the private manager to 
11 periodically file, at least on an annual basis, appropriate 
12 financial statements in a form and manner acceptable to the 
13 Department.
14  (15) Cash reserves requirements.
15  (16) Procedural requirements for obtaining the prior 
16 approval of the Department when a management agreement or 
17 an interest in a management agreement is sold, assigned, 
18 transferred, or pledged as collateral to secure financing.
19  (17) Grounds for the termination of the management 
20 agreement by the Department or the private manager.
21  (18) Procedures for amendment of the agreement.
22  (19) A provision requiring the private manager to 
23 engage in an open and competitive bidding process for any 
24 procurement having a cost in excess of $50,000 that is not 
25 a part of the private manager's final offer. The process 
26 shall favor the selection of a vendor deemed to have 
 
 
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1 submitted a proposal that provides the Lottery with the 
2 best overall value. The process shall not be subject to the 
3 provisions of the Illinois Procurement Code, unless 
4 specifically required by the management agreement.
5  (20) The transition of rights and obligations, 
6 including any associated equipment or other assets used in 
7 the operation of the Lottery, from the manager to any 
8 successor manager of the lottery, including the 
9 Department, following the termination of or foreclosure 
10 upon the management agreement.
11  (21) Right of use of copyrights, trademarks, and 
12 service marks held by the Department in the name of the 
13 State. The agreement must provide that any use of them by 
14 the manager shall only be for the purpose of fulfilling its 
15 obligations under the management agreement during the term 
16 of the agreement.
17  (22) The disclosure of any information requested by the 
18 Department to enable it to comply with the reporting 
19 requirements and information requests provided for under 
20 subsection (p) of this Section. 
21 (e) Notwithstanding any other law to the contrary, the 
22Department shall select a private manager through a competitive 
23request for qualifications process consistent with Section 
2420-35 of the Illinois Procurement Code, which shall take into 
25account:
26  (1) the offeror's ability to market the Lottery to 
 
 
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1 those residents who are new, infrequent, or lapsed players 
2 of the Lottery, especially those who are most likely to 
3 make regular purchases on the Internet;
4  (2) the offeror's ability to address the State's 
5 concern with the social effects of gambling on those who 
6 can least afford to do so;
7  (3) the offeror's ability to provide the most 
8 successful management of the Lottery for the benefit of the 
9 people of the State based on current and past business 
10 practices or plans of the offeror; and
11  (4) the offeror's poor or inadequate past performance 
12 in servicing, equipping, operating or managing a lottery on 
13 behalf of Illinois, another State or foreign government and 
14 attracting persons who are not currently regular players of 
15 a lottery.
16 (f) The Department may retain the services of an advisor or 
17advisors with significant experience in financial services or 
18the management, operation, and procurement of goods, services, 
19and equipment for a government-run lottery to assist in the 
20preparation of the terms of the request for qualifications and 
21selection of the private manager. Any prospective advisor 
22seeking to provide services under this subsection (f) shall 
23disclose any material business or financial relationship 
24during the past 3 years with any potential offeror, or with a 
25contractor or subcontractor presently providing goods, 
26services, or equipment to the Department to support the 
 
 
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1Lottery. The Department shall evaluate the material business or 
2financial relationship of each prospective advisor. The 
3Department shall not select any prospective advisor with a 
4substantial business or financial relationship that the 
5Department deems to impair the objectivity of the services to 
6be provided by the prospective advisor. During the course of 
7the advisor's engagement by the Department, and for a period of 
8one year thereafter, the advisor shall not enter into any 
9business or financial relationship with any offeror or any 
10vendor identified to assist an offeror in performing its 
11obligations under the management agreement. Any advisor 
12retained by the Department shall be disqualified from being an 
13offeror.
The Department shall not include terms in the request 
14for qualifications that provide a material advantage whether 
15directly or indirectly to any potential offeror, or any 
16contractor or subcontractor presently providing goods, 
17services, or equipment to the Department to support the 
18Lottery, including terms contained in previous responses to 
19requests for proposals or qualifications submitted to 
20Illinois, another State or foreign government when those terms 
21are uniquely associated with a particular potential offeror, 
22contractor, or subcontractor. The request for proposals 
23offered by the Department on December 22, 2008 as 
24"LOT08GAMESYS" and reference number "22016176" is declared 
25void.
26 (g) The Department shall select at least 2 offerors as 
 
 
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1finalists to potentially serve as the private manager no later 
2than August 9, 2010. Upon making preliminary selections, the 
3Department shall schedule a public hearing on the finalists' 
4proposals and provide public notice of the hearing at least 7 
5calendar days before the hearing. The notice must include all 
6of the following:
7  (1) The date, time, and place of the hearing.
8  (2) The subject matter of the hearing.
9  (3) A brief description of the management agreement to 
10 be awarded.
11  (4) The identity of the offerors that have been 
12 selected as finalists to serve as the private manager.
13  (5) The address and telephone number of the Department.
14 (h) At the public hearing, the Department shall (i) provide 
15sufficient time for each finalist to present and explain its 
16proposal to the Department and the Governor or the Governor's 
17designee, including an opportunity to respond to questions 
18posed by the Department, Governor, or designee and (ii) allow 
19the public and non-selected offerors to comment on the 
20presentations. The Governor or a designee shall attend the 
21public hearing. After the public hearing, the Department shall 
22have 14 calendar days to recommend to the Governor whether a 
23management agreement should be entered into with a particular 
24finalist. After reviewing the Department's recommendation, the 
25Governor may accept or reject the Department's recommendation, 
26and shall select a final offeror as the private manager by 
 
 
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1publication of a notice in the Illinois Procurement Bulletin on 
2or before September 15, 2010. The Governor shall include in the 
3notice a detailed explanation and the reasons why the final 
4offeror is superior to other offerors and will provide 
5management services in a manner that best achieves the 
6objectives of this Section. The Governor shall also sign the 
7management agreement with the private manager.
8 (i) Any action to contest the private manager selected by 
9the Governor under this Section must be brought within 7 
10calendar days after the publication of the notice of the 
11designation of the private manager as provided in subsection 
12(h) of this Section.
13 (j) The Lottery shall remain, for so long as a private 
14manager manages the Lottery in accordance with provisions of 
15this Act, a Lottery conducted by the State, and the State shall 
16not be authorized to sell or transfer the Lottery to a third 
17party.
18 (k) Any tangible personal property used exclusively in 
19connection with the lottery that is owned by the Department and 
20leased to the private manager shall be owned by the Department 
21in the name of the State and shall be considered to be public 
22property devoted to an essential public and governmental 
23function.
24 (l) The Department may exercise any of its powers under 
25this Section or any other law as necessary or desirable for the 
26execution of the Department's powers under this Section.
 
 
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1 (m) Neither this Section nor any management agreement 
2entered into under this Section prohibits the General Assembly 
3from authorizing forms of gambling that are not in direct 
4competition with the Lottery. The forms of gambling authorized 
5by this amendatory Act of the 98th General Assembly constitute 
6authorized forms of gambling that are not in direct competition 
7with the Lottery.
8 (n) The private manager shall be subject to a complete 
9investigation in the third, seventh, and tenth years of the 
10agreement (if the agreement is for a 10-year term) by the 
11Department in cooperation with the Auditor General to determine 
12whether the private manager has complied with this Section and 
13the management agreement. The private manager shall bear the 
14cost of an investigation or reinvestigation of the private 
15manager under this subsection.
16 (o) The powers conferred by this Section are in addition 
17and supplemental to the powers conferred by any other law. If 
18any other law or rule is inconsistent with this Section, 
19including, but not limited to, provisions of the Illinois 
20Procurement Code, then this Section controls as to any 
21management agreement entered into under this Section. This 
22Section and any rules adopted under this Section contain full 
23and complete authority for a management agreement between the 
24Department and a private manager. No law, procedure, 
25proceeding, publication, notice, consent, approval, order, or 
26act by the Department or any other officer, Department, agency, 
 
 
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1or instrumentality of the State or any political subdivision is 
2required for the Department to enter into a management 
3agreement under this Section. This Section contains full and 
4complete authority for the Department to approve any contracts 
5entered into by a private manager with a vendor providing 
6goods, services, or both goods and services to the private 
7manager under the terms of the management agreement, including 
8subcontractors of such vendors.
9 Upon receipt of a written request from the Chief 
10Procurement Officer, the Department shall provide to the Chief 
11Procurement Officer a complete and un-redacted copy of the 
12management agreement or any contract that is subject to the 
13Department's approval authority under this subsection (o). The 
14Department shall provide a copy of the agreement or contract to 
15the Chief Procurement Officer in the time specified by the 
16Chief Procurement Officer in his or her written request, but no 
17later than 5 business days after the request is received by the 
18Department. The Chief Procurement Officer must retain any 
19portions of the management agreement or of any contract 
20designated by the Department as confidential, proprietary, or 
21trade secret information in complete confidence pursuant to 
22subsection (g) of Section 7 of the Freedom of Information Act. 
23The Department shall also provide the Chief Procurement Officer 
24with reasonable advance written notice of any contract that is 
25pending Department approval. 
26 Notwithstanding any other provision of this Section to the 
 
 
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1contrary, the Chief Procurement Officer shall adopt 
2administrative rules, including emergency rules, to establish 
3a procurement process to select a successor private manager if 
4a private management agreement has been terminated. The 
5selection process shall at a minimum take into account the 
6criteria set forth in items (1) through (4) of subsection (e) 
7of this Section and may include provisions consistent with 
8subsections (f), (g), (h), and (i) of this Section. The Chief 
9Procurement Officer shall also implement and administer the 
10adopted selection process upon the termination of a private 
11management agreement. The Department, after the Chief 
12Procurement Officer certifies that the procurement process has 
13been followed in accordance with the rules adopted under this 
14subsection (o), shall select a final offeror as the private 
15manager and sign the management agreement with the private 
16manager. 
17 Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and 
1821.8, the Department shall distribute all proceeds of lottery 
19tickets and shares sold in the following priority and manner:
20  (1) The payment of prizes and retailer bonuses.
21  (2) The payment of costs incurred in the operation and 
22 administration of the Lottery, including the payment of 
23 sums due to the private manager under the management 
24 agreement with the Department.
25  (3) On the last day of each month or as soon thereafter 
26 as possible, the State Comptroller shall direct and the 
 
 
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1 State Treasurer shall transfer from the State Lottery Fund 
2 to the Common School Fund an amount that is equal to the 
3 proceeds transferred in the corresponding month of fiscal 
4 year 2009, as adjusted for inflation, to the Common School 
5 Fund.
6  (4) On or before the last day of each fiscal year, 
7 deposit any remaining proceeds, subject to payments under 
8 items (1), (2), and (3) into the Capital Projects Fund each 
9 fiscal year. 
10 (p) The Department shall be subject to the following 
11reporting and information request requirements:
12  (1) the Department shall submit written quarterly 
13 reports to the Governor and the General Assembly on the 
14 activities and actions of the private manager selected 
15 under this Section;
16  (2) upon request of the Chief Procurement Officer, the 
17 Department shall promptly produce information related to 
18 the procurement activities of the Department and the 
19 private manager requested by the Chief Procurement 
20 Officer; the Chief Procurement Officer must retain 
21 confidential, proprietary, or trade secret information 
22 designated by the Department in complete confidence 
23 pursuant to subsection (g) of Section 7 of the Freedom of 
24 Information Act; and
25  (3) at least 30 days prior to the beginning of the 
26 Department's fiscal year, the Department shall prepare an 
 
 
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1 annual written report on the activities of the private 
2 manager selected under this Section and deliver that report 
3 to the Governor and General Assembly.
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, 
5eff. 12-23-09; 97-464, eff. 8-19-11; revised 10-17-12.)

6 Section 90-10. The Department of Revenue Law of the
Civil 
7Administrative Code of Illinois is amended by changing Section 
82505-305 as follows:




9 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)



10 Sec. 2505-305. Investigators. 

11 (a) The Department has the power to
appoint investigators 
12to conduct all investigations,
searches, seizures, arrests, 
13and other duties imposed under the provisions
of any law 
14administered by the Department.
Except as provided in 
15subsection (c), these investigators have
and
may exercise all 
16the powers of peace officers solely for the purpose of

17enforcing taxing measures administered by the Department.

18 (b) The Director must authorize to each investigator 
19employed under this
Section and
to any other employee of the 
20Department exercising the powers of a peace
officer a
distinct 
21badge that, on its face, (i) clearly states that the badge is

22authorized
by the
Department and (ii)
contains a unique 
23identifying number.
No other badge shall be authorized by
the 
24Department.

 
 
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1 (c) The Department may enter into agreements with the 
2Illinois Gaming Board providing that investigators appointed 
3under this Section shall exercise the peace officer powers set 
4forth in paragraph (20.6) of subsection (c) of Section 5 of the 
5Illinois Riverboat Gambling Act.


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



7 Section 90-12. The Illinois State Auditing Act is amended 
8by changing Section 3-1 as follows:




9 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)


10 Sec. 3-1. Jurisdiction of Auditor General. The Auditor 
11General has
jurisdiction over all State agencies to make post 
12audits and investigations
authorized by or under this Act or 
13the Constitution.

14 The Auditor General has jurisdiction over local government 
15agencies
and private agencies only:


16  (a) to make such post audits authorized by or under 
17 this Act as are
necessary and incidental to a post audit of 
18 a State agency or of a
program administered by a State 
19 agency involving public funds of the
State, but this 
20 jurisdiction does not include any authority to review
local 
21 governmental agencies in the obligation, receipt, 
22 expenditure or
use of public funds of the State that are 
23 granted without limitation or
condition imposed by law, 
24 other than the general limitation that such
funds be used 
 
 
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1 for public purposes;


2  (b) to make investigations authorized by or under this 
3 Act or the
Constitution; and


4  (c) to make audits of the records of local government 
5 agencies to verify
actual costs of state-mandated programs 
6 when directed to do so by the
Legislative Audit Commission 
7 at the request of the State Board of Appeals
under the 
8 State Mandates Act.

9 In addition to the foregoing, the Auditor General may 
10conduct an
audit of the Metropolitan Pier and Exposition 
11Authority, the
Regional Transportation Authority, the Suburban 
12Bus Division, the Commuter
Rail Division and the Chicago 
13Transit Authority and any other subsidized
carrier when 
14authorized by the Legislative Audit Commission. Such audit
may 
15be a financial, management or program audit, or any combination 
16thereof.

17 The audit shall determine whether they are operating in 
18accordance with
all applicable laws and regulations. Subject to 
19the limitations of this
Act, the Legislative Audit Commission 
20may by resolution specify additional
determinations to be 
21included in the scope of the audit.

22 In addition to the foregoing, the Auditor General must also 
23conduct a
financial audit of
the Illinois Sports Facilities 
24Authority's expenditures of public funds in
connection with the 
25reconstruction, renovation, remodeling, extension, or

26improvement of all or substantially all of any existing 
 
 
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1"facility", as that
term is defined in the Illinois Sports 
2Facilities Authority Act.

3 The Auditor General may also conduct an audit, when 
4authorized by
the Legislative Audit Commission, of any hospital 
5which receives 10% or
more of its gross revenues from payments 
6from the State of Illinois,
Department of Healthcare and Family 
7Services (formerly Department of Public Aid), Medical 
8Assistance Program.

9 The Auditor General is authorized to conduct financial and 
10compliance
audits of the Illinois Distance Learning Foundation 
11and the Illinois
Conservation Foundation.

12 As soon as practical after the effective date of this 
13amendatory Act of
1995, the Auditor General shall conduct a 
14compliance and management audit of
the City of
Chicago and any 
15other entity with regard to the operation of Chicago O'Hare

16International Airport, Chicago Midway Airport and Merrill C. 
17Meigs Field. The
audit shall include, but not be limited to, an 
18examination of revenues,
expenses, and transfers of funds; 
19purchasing and contracting policies and
practices; staffing 
20levels; and hiring practices and procedures. When
completed, 
21the audit required by this paragraph shall be distributed in

22accordance with Section 3-14.

23 The Auditor General shall conduct a financial and 
24compliance and program
audit of distributions from the 
25Municipal Economic Development Fund
during the immediately 
26preceding calendar year pursuant to Section 8-403.1 of
the 
 
 
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1Public Utilities Act at no cost to the city, village, or 
2incorporated town
that received the distributions.

3 The Auditor General must conduct an audit of the Health 
4Facilities and Services Review Board pursuant to Section 19.5 
5of the Illinois Health Facilities Planning
Act.

6 The Auditor General must conduct an audit of the Chicago 
7Casino Development Authority pursuant to Section 1-60 of the 
8Chicago Casino Development Authority Act. 
9 The Auditor General of the State of Illinois shall annually 
10conduct or
cause to be conducted a financial and compliance 
11audit of the books and records
of any county water commission 
12organized pursuant to the Water Commission Act
of 1985 and 
13shall file a copy of the report of that audit with the Governor 
14and
the Legislative Audit Commission. The filed audit shall be 
15open to the public
for inspection. The cost of the audit shall 
16be charged to the county water
commission in accordance with 
17Section 6z-27 of the State Finance Act. The
county water 
18commission shall make available to the Auditor General its 
19books
and records and any other documentation, whether in the 
20possession of its
trustees or other parties, necessary to 
21conduct the audit required. These
audit requirements apply only 
22through July 1, 2007.

23 The Auditor General must conduct audits of the Rend Lake 
24Conservancy
District as provided in Section 25.5 of the River 
25Conservancy Districts Act.

26 The Auditor General must conduct financial audits of the 
 
 
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1Southeastern Illinois Economic Development Authority as 
2provided in Section 70 of the Southeastern Illinois Economic 
3Development Authority Act.

4 The Auditor General shall conduct a compliance audit in 
5accordance with subsections (d) and (f) of Section 30 of the 
6Innovation Development and Economy Act. 
7(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09; 
896-939, eff. 6-24-10.)


9 Section 90-15. The State Finance Act is amended by adding 
10Sections 5.826, 5.829, 6z-98, and 6z-99 as follows:

11 (30 ILCS 105/5.826 new)
12 Sec. 5.826. The Gaming Facilities Fee Revenue Fund.

13 (30 ILCS 105/5.829 new)
14 Sec. 5.829. The State Fairgrounds Capital Improvement 
15Fund.

16 (30 ILCS 105/6z-98 new)
17 Sec. 6z-98. The Gaming Facilities Fee Revenue Fund.
18 (a) The Gaming Facilities Fee Revenue Fund is created as a 
19special fund in the State treasury.
20 (b) The revenues in the Fund shall be used, subject to 
21appropriation, by the Comptroller for the purpose of (i) 
22providing appropriations to the Illinois Gaming Board for the 
 
 
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1administration and enforcement of the Illinois Gambling Act and 
2the applicable provisions of the Chicago Casino Development 
3Authority Act and (ii) payment of vouchers that are outstanding 
4for more than 60 days. Whenever practical, the Comptroller must 
5prioritize voucher payments for expenses related to medical 
6assistance under the Illinois Public Aid Code, the Children's 
7Health Insurance Program Act, the Covering ALL KIDS Health 
8Insurance Act, and the Senior Citizens and Disabled Persons 
9Property Tax Relief and Pharmaceutical Assistance Act.
10 (c) The Fund shall consist of fee revenues received 
11pursuant to subsection (e) of Section 1-45 of the Chicago 
12Casino Development Authority Act and pursuant to subsections 
13(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections 
14(c) and (i) of Section 7.6 of the Illinois Gambling Act. All 
15interest earned on moneys in the Fund shall be deposited into 
16the Fund.
17 (d) The Fund shall not be subject to administrative charges 
18or chargebacks, including, but not limited to, those authorized 
19under subsection (h) of Section 8 of this Act. 

20 (30 ILCS 105/6z-99 new)
21 Sec. 6z-99. The State Fairgrounds Capital Improvement 
22Fund. There is created the State Fairgrounds
Capital 
23Improvement Fund, a special fund in the State treasury. Moneys 
24in the Fund may be used by the Department of Agriculture, 
25subject to appropriation, solely for
infrastructure 
 
 
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1improvements to the Illinois State Fairgrounds in Sangamon 
2County, including, but not limited to, track surfaces (main 
3track and practice track), grandstands, audio and visual 
4systems, paddocks and barns and associated surface areas, 
5restroom facilities on the backstretch, and roadway surfaces 
6around the racing facility. The State Fairgrounds Capital 
7Improvement Fund is not subject to administrative chargebacks, 
8including, but not limited to, those authorized under Section 
98h of the State Finance Act.

10 Section 90-17. The Illinois Procurement Code is amended by 
11changing Section 1-10 as follows:



12 (30 ILCS 500/1-10)


13 Sec. 1-10. Application. 

14 (a) This Code applies only to procurements for which 
15contractors were first
solicited on or after July 1, 1998. This 
16Code shall not be construed to affect
or impair any contract, 
17or any provision of a contract, entered into based on a

18solicitation prior to the implementation date of this Code as 
19described in
Article 99, including but not limited to any 
20covenant entered into with respect
to any revenue bonds or 
21similar instruments.
All procurements for which contracts are 
22solicited between the effective date
of Articles 50 and 99 and 
23July 1, 1998 shall be substantially in accordance
with this 
24Code and its intent.

 
 
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1 (b) This Code shall apply regardless of the source of the 
2funds with which
the contracts are paid, including federal 
3assistance moneys.
This Code shall
not apply to:


4  (1) Contracts between the State and its political 
5 subdivisions or other
governments, or between State 
6 governmental bodies except as specifically
provided in 
7 this Code.


8  (2) Grants, except for the filing requirements of 
9 Section 20-80.


10  (3) Purchase of care.


11  (4) Hiring of an individual as employee and not as an 
12 independent
contractor, whether pursuant to an employment 
13 code or policy or by contract
directly with that 
14 individual.


15  (5) Collective bargaining contracts.


16  (6) Purchase of real estate, except that notice of this 
17 type of contract with a value of more than $25,000 must be 
18 published in the Procurement Bulletin within 7 days after 
19 the deed is recorded in the county of jurisdiction. The 
20 notice shall identify the real estate purchased, the names 
21 of all parties to the contract, the value of the contract, 
22 and the effective date of the contract.


23  (7) Contracts necessary to prepare for anticipated 
24 litigation, enforcement
actions, or investigations, 
25 provided
that the chief legal counsel to the Governor shall 
26 give his or her prior
approval when the procuring agency is 
 
 
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1 one subject to the jurisdiction of the
Governor, and 
2 provided that the chief legal counsel of any other 
3 procuring
entity
subject to this Code shall give his or her 
4 prior approval when the procuring
entity is not one subject 
5 to the jurisdiction of the Governor.


6  (8) Contracts for
services to Northern Illinois 
7 University by a person, acting as
an independent 
8 contractor, who is qualified by education, experience, and

9 technical ability and is selected by negotiation for the 
10 purpose of providing
non-credit educational service 
11 activities or products by means of specialized
programs 
12 offered by the university.


13  (9) Procurement expenditures by the Illinois 
14 Conservation Foundation
when only private funds are used.

15  (10) Procurement expenditures by the Illinois Health 
16 Information Exchange Authority involving private funds 
17 from the Health Information Exchange Fund. "Private funds" 
18 means gifts, donations, and private grants. 
19  (11) Public-private agreements entered into according 
20 to the procurement requirements of Section 20 of the 
21 Public-Private Partnerships for Transportation Act and 
22 design-build agreements entered into according to the 
23 procurement requirements of Section 25 of the 
24 Public-Private Partnerships for Transportation Act.
25 (c) This Code does not apply to the electric power 
26procurement process provided for under Section 1-75 of the 
 
 
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1Illinois Power Agency Act and Section 16-111.5 of the Public 
2Utilities Act.
3 (d) Except for Section 20-160 and Article 50 of this Code, 
4and as expressly required by Section 9.1 of the Illinois 
5Lottery Law, the provisions of this Code do not apply to the 
6procurement process provided for under Section 9.1 of the 
7Illinois Lottery Law. In addition, except for Section 20-160 
8and Article 50 of this Code, the provisions of this Code also 
9do not apply to contracts and subcontracts awarded pursuant to 
10Section 7.18 of the Illinois Lottery Law.
11 (e) This Code does not apply to the process used by the 
12Capital Development Board to retain a person or entity to 
13assist the Capital Development Board with its duties related to 
14the determination of costs of a clean coal SNG brownfield 
15facility, as defined by Section 1-10 of the Illinois Power 
16Agency Act, as required in subsection (h-3) of Section 9-220 of 
17the Public Utilities Act, including calculating the range of 
18capital costs, the range of operating and maintenance costs, or 
19the sequestration costs or monitoring the construction of clean 
20coal SNG brownfield facility for the full duration of 
21construction.
22 (f) This Code does not apply to the process used by the 
23Illinois Power Agency to retain a mediator to mediate sourcing 
24agreement disputes between gas utilities and the clean coal SNG 
25brownfield facility, as defined in Section 1-10 of the Illinois 
26Power Agency Act, as required under subsection (h-1) of Section 
 
 
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19-220 of the Public Utilities Act. 
2 (g) This Code does not apply to the processes used by the 
3Illinois Power Agency to retain a mediator to mediate contract 
4disputes between gas utilities and the clean coal SNG facility 
5and to retain an expert to assist in the review of contracts 
6under subsection (h) of Section 9-220 of the Public Utilities 
7Act. This Code does not apply to the process used by the 
8Illinois Commerce Commission to retain an expert to assist in 
9determining the actual incurred costs of the clean coal SNG 
10facility and the reasonableness of those costs as required 
11under subsection (h) of Section 9-220 of the Public Utilities 
12Act.
13 (h) This Code does not apply to the process to procure or 
14contracts entered into in accordance with Sections 11-5.2 and 
1511-5.3 of the Illinois Public Aid Code. 
16 (i) (h) Each chief procurement officer may access records 
17necessary to review whether a contract, purchase, or other 
18expenditure is or is not subject to the provisions of this 
19Code, unless such records would be subject to attorney-client 
20privilege. 
21(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10; 
2297-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11; 
2397-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff. 
248-3-12; revised 8-23-12.)


25 Section 90-20. The Illinois Income Tax Act is amended by 
 
 
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1changing Sections 201, 303, 304 and 710 as follows:

2 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
3 Sec. 201. Tax Imposed. 
4 (a) In general. A tax measured by net income is hereby 
5imposed on every
individual, corporation, trust and estate for 
6each taxable year ending
after July 31, 1969 on the privilege 
7of earning or receiving income in or
as a resident of this 
8State. Such tax shall be in addition to all other
occupation or 
9privilege taxes imposed by this State or by any municipal

10corporation or political subdivision thereof.
11 (b) Rates. The tax imposed by subsection (a) of this 
12Section shall be
determined as follows, except as adjusted by 
13subsection (d-1):
14  (1) In the case of an individual, trust or estate, for 
15 taxable years
ending prior to July 1, 1989, an amount equal 
16 to 2 1/2% of the taxpayer's
net income for the taxable 
17 year.
18  (2) In the case of an individual, trust or estate, for 
19 taxable years
beginning prior to July 1, 1989 and ending 
20 after June 30, 1989, an amount
equal to the sum of (i) 2 
21 1/2% of the taxpayer's net income for the period
prior to 
22 July 1, 1989, as calculated under Section 202.3, and (ii) 
23 3% of the
taxpayer's net income for the period after June 
24 30, 1989, as calculated
under Section 202.3.
25  (3) In the case of an individual, trust or estate, for 
 
 
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1 taxable years
beginning after June 30, 1989, and ending 
2 prior to January 1, 2011, an amount equal to 3% of the 
3 taxpayer's net
income for the taxable year.
4  (4) In the case of an individual, trust, or estate, for 
5 taxable years beginning prior to January 1, 2011, and 
6 ending after December 31, 2010, an amount equal to the sum 
7 of (i) 3% of the taxpayer's net income for the period prior 
8 to January 1, 2011, as calculated under Section 202.5, and 
9 (ii) 5% of the taxpayer's net income for the period after 
10 December 31, 2010, as calculated under Section 202.5.
11  (5) In the case of an individual, trust, or estate, for 
12 taxable years beginning on or after January 1, 2011, and 
13 ending prior to January 1, 2015, an amount equal to 5% of 
14 the taxpayer's net income for the taxable year.
15  (5.1) In the case of an individual, trust, or estate, 
16 for taxable years beginning prior to January 1, 2015, and 
17 ending after December 31, 2014, an amount equal to the sum 
18 of (i) 5% of the taxpayer's net income for the period prior 
19 to January 1, 2015, as calculated under Section 202.5, and 
20 (ii) 3.75% of the taxpayer's net income for the period 
21 after December 31, 2014, as calculated under Section 202.5. 
22  (5.2) In the case of an individual, trust, or estate, 
23 for taxable years beginning on or after January 1, 2015, 
24 and ending prior to January 1, 2025, an amount equal to 
25 3.75% of the taxpayer's net income for the taxable year. 
26  (5.3) In the case of an individual, trust, or estate, 
 
 
09800SB1739sam001- 133 -LRB098 10559 AMC 42403 a


1 for taxable years beginning prior to January 1, 2025, and 
2 ending after December 31, 2024, an amount equal to the sum 
3 of (i) 3.75% of the taxpayer's net income for the period 
4 prior to January 1, 2025, as calculated under Section 
5 202.5, and (ii) 3.25% of the taxpayer's net income for the 
6 period after December 31, 2024, as calculated under Section 
7 202.5. 
8  (5.4) In the case of an individual, trust, or estate, 
9 for taxable years beginning on or after January 1, 2025, an 
10 amount equal to 3.25% of the taxpayer's net income for the 
11 taxable year. 
12  (6) In the case of a corporation, for taxable years

13 ending prior to July 1, 1989, an amount equal to 4% of the

14 taxpayer's net income for the taxable year.
15  (7) In the case of a corporation, for taxable years 
16 beginning prior to
July 1, 1989 and ending after June 30, 
17 1989, an amount equal to the sum of
(i) 4% of the 
18 taxpayer's net income for the period prior to July 1, 1989,

19 as calculated under Section 202.3, and (ii) 4.8% of the 
20 taxpayer's net
income for the period after June 30, 1989, 
21 as calculated under Section
202.3.
22  (8) In the case of a corporation, for taxable years 
23 beginning after
June 30, 1989, and ending prior to January 
24 1, 2011, an amount equal to 4.8% of the taxpayer's net 
25 income for the
taxable year.
26  (9) In the case of a corporation, for taxable years 
 
 
09800SB1739sam001- 134 -LRB098 10559 AMC 42403 a


1 beginning prior to January 1, 2011, and ending after 
2 December 31, 2010, an amount equal to the sum of (i) 4.8% 
3 of the taxpayer's net income for the period prior to 
4 January 1, 2011, as calculated under Section 202.5, and 
5 (ii) 7% of the taxpayer's net income for the period after 
6 December 31, 2010, as calculated under Section 202.5. 
7  (10) In the case of a corporation, for taxable years 
8 beginning on or after January 1, 2011, and ending prior to 
9 January 1, 2015, an amount equal to 7% of the taxpayer's 
10 net income for the taxable year. 
11  (11) In the case of a corporation, for taxable years 
12 beginning prior to January 1, 2015, and ending after 
13 December 31, 2014, an amount equal to the sum of (i) 7% of 
14 the taxpayer's net income for the period prior to January 
15 1, 2015, as calculated under Section 202.5, and (ii) 5.25% 
16 of the taxpayer's net income for the period after December 
17 31, 2014, as calculated under Section 202.5. 
18  (12) In the case of a corporation, for taxable years 
19 beginning on or after January 1, 2015, and ending prior to 
20 January 1, 2025, an amount equal to 5.25% of the taxpayer's 
21 net income for the taxable year. 
22  (13) In the case of a corporation, for taxable years 
23 beginning prior to January 1, 2025, and ending after 
24 December 31, 2024, an amount equal to the sum of (i) 5.25% 
25 of the taxpayer's net income for the period prior to 
26 January 1, 2025, as calculated under Section 202.5, and 
 
 
09800SB1739sam001- 135 -LRB098 10559 AMC 42403 a


1 (ii) 4.8% of the taxpayer's net income for the period after 
2 December 31, 2024, as calculated under Section 202.5. 
3  (14) In the case of a corporation, for taxable years 
4 beginning on or after January 1, 2025, an amount equal to 
5 4.8% of the taxpayer's net income for the taxable year. 
6 The rates under this subsection (b) are subject to the 
7provisions of Section 201.5. 
8 (b-5) Surcharge; sale or exchange of assets, properties, 
9and intangibles of electronic gaming licensees. For each of 
10taxable years 2013 through 2021, a surcharge is imposed on all 
11taxpayers on income arising from the sale or exchange of 
12capital assets, depreciable business property, real property 
13used in the trade or business, and Section 197 intangibles (i) 
14of an organization licensee under the Illinois Horse Racing Act 
15of 1975 and (ii) of an electronic gaming licensee under the 
16Illinois Gambling Act. The amount of the surcharge is equal to 
17the amount of federal income tax liability for the taxable year 
18attributable to those sales and exchanges. The surcharge 
19imposed shall not apply if: 
20  (1) the electronic gaming license, organization 
21 license, or race track property is transferred as a result 
22 of any of the following:
23   (A) bankruptcy, a receivership, or a debt 
24 adjustment initiated by or against the initial 
25 licensee or the substantial owners of the initial 
26 licensee;
 
 
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1   (B) cancellation, revocation, or termination of 
2 any such license by the Illinois Gaming Board or the 
3 Illinois Racing Board;
4   (C) a determination by the Illinois Gaming Board 
5 that transfer of the license is in the best interests 
6 of Illinois gaming;
7   (D) the death of an owner of the equity interest in 
8 a licensee;
9   (E) the acquisition of a controlling interest in 
10 the stock or substantially all of the assets of a 
11 publicly traded company;
12   (F) a transfer by a parent company to a wholly 
13 owned subsidiary; or
14   (G) the transfer or sale to or by one person to 
15 another person where both persons were initial owners 
16 of the license when the license was issued; or 
17  (2) the controlling interest in the electronic gaming 
18 license, organization license, or race track property is 
19 transferred in a transaction to lineal descendants in which 
20 no gain or loss is recognized or as a result of a 
21 transaction in accordance with Section 351 of the Internal 
22 Revenue Code in which no gain or loss is recognized; or
23  (3) live horse racing was not conducted in 2011 under a 
24 license issued pursuant to the Illinois Horse Racing Act of 
25 1975. 
26 The transfer of an electronic gaming license, organization 
 
 
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1license, or race track property by a person other than the 
2initial licensee to receive the electronic gaming license is 
3not subject to a surcharge. The Department shall adopt rules 
4necessary to implement and administer this subsection. 
5 (b-10) Surcharge; sale or exchange of an Internet gaming 
6license. For each of taxable years 2013 through 2023, a 
7surcharge is imposed on all taxpayers on income arising from 
8the sale or exchange of an Internet gaming license issued by 
9the Division of Internet Gaming of the Department of the 
10Lottery. The amount of the surcharge is equal to the federal 
11tax liability attributable to such sale or exchange or 
12$10,000,000, whichever is greater. The surcharge imposed shall 
13not apply if:
14  (1) the Internet gaming license is transferred as a 
15 result of any of the following:
16   (A) bankruptcy, a receivership, assignment for the 
17 benefit of creditors, or a debt adjustment initiated by 
18 or against the initial Internet gaming licensee or a 
19 majority owner of the initial licensee;
20   (B) cancellation, revocation, or termination of 
21 any such license by the Division of Internet Gaming; or
22   (D) the transfer or sale to or by one person to 
23 another person where both persons were initial owners 
24 of the license when the license was issued;
25  (2) after a public hearing, a determination is made by 
26 the Superintendent of the Lottery, subject to the approval 
 
 
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1 of the Governor, that transfer of the license and exemption 
2 from the surcharge is in the best interest of Illinois 
3 gaming; this exception may be further defined by rules 
4 adopted by the Division of Internet Gaming; or
5  (3) the controlling interest in the Internet gaming 
6 license is transferred in a transaction to lineal 
7 descendants in which no gain or loss is recognized or as a 
8 result of a transaction in accordance with Section 351 of 
9 the Internal Revenue Code in which no gain or loss is 
10 recognized.
11 The Department shall adopt rules necessary to implement and 
12administer this subsection. 
13 (c) Personal Property Tax Replacement Income Tax.

14Beginning on July 1, 1979 and thereafter, in addition to such 
15income
tax, there is also hereby imposed the Personal Property 
16Tax Replacement
Income Tax measured by net income on every 
17corporation (including Subchapter
S corporations), partnership 
18and trust, for each taxable year ending after
June 30, 1979. 
19Such taxes are imposed on the privilege of earning or
receiving 
20income in or as a resident of this State. The Personal Property

21Tax Replacement Income Tax shall be in addition to the income 
22tax imposed
by subsections (a) and (b) of this Section and in 
23addition to all other
occupation or privilege taxes imposed by 
24this State or by any municipal
corporation or political 
25subdivision thereof.
26 (d) Additional Personal Property Tax Replacement Income 
 
 
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1Tax Rates.
The personal property tax replacement income tax 
2imposed by this subsection
and subsection (c) of this Section 
3in the case of a corporation, other
than a Subchapter S 
4corporation and except as adjusted by subsection (d-1),
shall 
5be an additional amount equal to
2.85% of such taxpayer's net 
6income for the taxable year, except that
beginning on January 
71, 1981, and thereafter, the rate of 2.85% specified
in this 
8subsection shall be reduced to 2.5%, and in the case of a

9partnership, trust or a Subchapter S corporation shall be an 
10additional
amount equal to 1.5% of such taxpayer's net income 
11for the taxable year.
12 (d-1) Rate reduction for certain foreign insurers. In the 
13case of a
foreign insurer, as defined by Section 35A-5 of the 
14Illinois Insurance Code,
whose state or country of domicile 
15imposes on insurers domiciled in Illinois
a retaliatory tax 
16(excluding any insurer
whose premiums from reinsurance assumed 
17are 50% or more of its total insurance
premiums as determined 
18under paragraph (2) of subsection (b) of Section 304,
except 
19that for purposes of this determination premiums from 
20reinsurance do
not include premiums from inter-affiliate 
21reinsurance arrangements),
beginning with taxable years ending 
22on or after December 31, 1999,
the sum of
the rates of tax 
23imposed by subsections (b) and (d) shall be reduced (but not

24increased) to the rate at which the total amount of tax imposed 
25under this Act,
net of all credits allowed under this Act, 
26shall equal (i) the total amount of
tax that would be imposed 
 
 
09800SB1739sam001- 140 -LRB098 10559 AMC 42403 a


1on the foreign insurer's net income allocable to
Illinois for 
2the taxable year by such foreign insurer's state or country of

3domicile if that net income were subject to all income taxes 
4and taxes
measured by net income imposed by such foreign 
5insurer's state or country of
domicile, net of all credits 
6allowed or (ii) a rate of zero if no such tax is
imposed on such 
7income by the foreign insurer's state of domicile.
For the 
8purposes of this subsection (d-1), an inter-affiliate includes 
9a
mutual insurer under common management.
10  (1) For the purposes of subsection (d-1), in no event 
11 shall the sum of the
rates of tax imposed by subsections 
12 (b) and (d) be reduced below the rate at
which the sum of:
13   (A) the total amount of tax imposed on such foreign 
14 insurer under
this Act for a taxable year, net of all 
15 credits allowed under this Act, plus
16   (B) the privilege tax imposed by Section 409 of the 
17 Illinois Insurance
Code, the fire insurance company 
18 tax imposed by Section 12 of the Fire
Investigation 
19 Act, and the fire department taxes imposed under 
20 Section 11-10-1
of the Illinois Municipal Code,
21 equals 1.25% for taxable years ending prior to December 31, 
22 2003, or
1.75% for taxable years ending on or after 
23 December 31, 2003, of the net
taxable premiums written for 
24 the taxable year,
as described by subsection (1) of Section 
25 409 of the Illinois Insurance Code.
This paragraph will in 
26 no event increase the rates imposed under subsections
(b) 
 
 
09800SB1739sam001- 141 -LRB098 10559 AMC 42403 a


1 and (d).
2  (2) Any reduction in the rates of tax imposed by this 
3 subsection shall be
applied first against the rates imposed 
4 by subsection (b) and only after the
tax imposed by 
5 subsection (a) net of all credits allowed under this 
6 Section
other than the credit allowed under subsection (i) 
7 has been reduced to zero,
against the rates imposed by 
8 subsection (d).
9 This subsection (d-1) is exempt from the provisions of 
10Section 250.
11 (e) Investment credit. A taxpayer shall be allowed a credit

12against the Personal Property Tax Replacement Income Tax for

13investment in qualified property.
14  (1) A taxpayer shall be allowed a credit equal to .5% 
15 of
the basis of qualified property placed in service during 
16 the taxable year,
provided such property is placed in 
17 service on or after
July 1, 1984. There shall be allowed an 
18 additional credit equal
to .5% of the basis of qualified 
19 property placed in service during the
taxable year, 
20 provided such property is placed in service on or
after 
21 July 1, 1986, and the taxpayer's base employment
within 
22 Illinois has increased by 1% or more over the preceding 
23 year as
determined by the taxpayer's employment records 
24 filed with the
Illinois Department of Employment Security. 
25 Taxpayers who are new to
Illinois shall be deemed to have 
26 met the 1% growth in base employment for
the first year in 
 
 
09800SB1739sam001- 142 -LRB098 10559 AMC 42403 a


1 which they file employment records with the Illinois

2 Department of Employment Security. The provisions added to 
3 this Section by
Public Act 85-1200 (and restored by Public 
4 Act 87-895) shall be
construed as declaratory of existing 
5 law and not as a new enactment. If,
in any year, the 
6 increase in base employment within Illinois over the

7 preceding year is less than 1%, the additional credit shall 
8 be limited to that
percentage times a fraction, the 
9 numerator of which is .5% and the denominator
of which is 
10 1%, but shall not exceed .5%. The investment credit shall 
11 not be
allowed to the extent that it would reduce a 
12 taxpayer's liability in any tax
year below zero, nor may 
13 any credit for qualified property be allowed for any
year 
14 other than the year in which the property was placed in 
15 service in
Illinois. For tax years ending on or after 
16 December 31, 1987, and on or
before December 31, 1988, the 
17 credit shall be allowed for the tax year in
which the 
18 property is placed in service, or, if the amount of the 
19 credit
exceeds the tax liability for that year, whether it 
20 exceeds the original
liability or the liability as later 
21 amended, such excess may be carried
forward and applied to 
22 the tax liability of the 5 taxable years following
the 
23 excess credit years if the taxpayer (i) makes investments 
24 which cause
the creation of a minimum of 2,000 full-time 
25 equivalent jobs in Illinois,
(ii) is located in an 
26 enterprise zone established pursuant to the Illinois

 
 
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1 Enterprise Zone Act and (iii) is certified by the 
2 Department of Commerce
and Community Affairs (now 
3 Department of Commerce and Economic Opportunity) as 
4 complying with the requirements specified in
clause (i) and 
5 (ii) by July 1, 1986. The Department of Commerce and

6 Community Affairs (now Department of Commerce and Economic 
7 Opportunity) shall notify the Department of Revenue of all 
8 such
certifications immediately. For tax years ending 
9 after December 31, 1988,
the credit shall be allowed for 
10 the tax year in which the property is
placed in service, 
11 or, if the amount of the credit exceeds the tax
liability 
12 for that year, whether it exceeds the original liability or 
13 the
liability as later amended, such excess may be carried 
14 forward and applied
to the tax liability of the 5 taxable 
15 years following the excess credit
years. The credit shall 
16 be applied to the earliest year for which there is
a 
17 liability. If there is credit from more than one tax year 
18 that is
available to offset a liability, earlier credit 
19 shall be applied first.
20  (2) The term "qualified property" means property 
21 which:
22   (A) is tangible, whether new or used, including 
23 buildings and structural
components of buildings and 
24 signs that are real property, but not including
land or 
25 improvements to real property that are not a structural 
26 component of a
building such as landscaping, sewer 
 
 
09800SB1739sam001- 144 -LRB098 10559 AMC 42403 a


1 lines, local access roads, fencing, parking
lots, and 
2 other appurtenances;
3   (B) is depreciable pursuant to Section 167 of the 
4 Internal Revenue Code,
except that "3-year property" 
5 as defined in Section 168(c)(2)(A) of that
Code is not 
6 eligible for the credit provided by this subsection 
7 (e);
8   (C) is acquired by purchase as defined in Section 
9 179(d) of
the Internal Revenue Code;
10   (D) is used in Illinois by a taxpayer who is 
11 primarily engaged in
manufacturing, or in mining coal 
12 or fluorite, or in retailing, or was placed in service 
13 on or after July 1, 2006 in a River Edge Redevelopment 
14 Zone established pursuant to the River Edge 
15 Redevelopment Zone Act; and
16   (E) has not previously been used in Illinois in 
17 such a manner and by
such a person as would qualify for 
18 the credit provided by this subsection
(e) or 
19 subsection (f).
20  (3) For purposes of this subsection (e), 
21 "manufacturing" means
the material staging and production 
22 of tangible personal property by
procedures commonly 
23 regarded as manufacturing, processing, fabrication, or

24 assembling which changes some existing material into new 
25 shapes, new
qualities, or new combinations. For purposes of 
26 this subsection
(e) the term "mining" shall have the same 
 
 
09800SB1739sam001- 145 -LRB098 10559 AMC 42403 a


1 meaning as the term "mining" in
Section 613(c) of the 
2 Internal Revenue Code. For purposes of this subsection
(e), 
3 the term "retailing" means the sale of tangible personal 
4 property for use or consumption and not for resale, or

5 services rendered in conjunction with the sale of tangible 
6 personal property for use or consumption and not for 
7 resale. For purposes of this subsection (e), "tangible 
8 personal property" has the same meaning as when that term 
9 is used in the Retailers' Occupation Tax Act, and, for 
10 taxable years ending after December 31, 2008, does not 
11 include the generation, transmission, or distribution of 
12 electricity.
13  (4) The basis of qualified property shall be the basis

14 used to compute the depreciation deduction for federal 
15 income tax purposes.
16  (5) If the basis of the property for federal income tax 
17 depreciation
purposes is increased after it has been placed 
18 in service in Illinois by
the taxpayer, the amount of such 
19 increase shall be deemed property placed
in service on the 
20 date of such increase in basis.
21  (6) The term "placed in service" shall have the same

22 meaning as under Section 46 of the Internal Revenue Code.
23  (7) If during any taxable year, any property ceases to

24 be qualified property in the hands of the taxpayer within 
25 48 months after
being placed in service, or the situs of 
26 any qualified property is
moved outside Illinois within 48 
 
 
09800SB1739sam001- 146 -LRB098 10559 AMC 42403 a


1 months after being placed in service, the
Personal Property 
2 Tax Replacement Income Tax for such taxable year shall be

3 increased. Such increase shall be determined by (i) 
4 recomputing the
investment credit which would have been 
5 allowed for the year in which
credit for such property was 
6 originally allowed by eliminating such
property from such 
7 computation and, (ii) subtracting such recomputed credit

8 from the amount of credit previously allowed. For the 
9 purposes of this
paragraph (7), a reduction of the basis of 
10 qualified property resulting
from a redetermination of the 
11 purchase price shall be deemed a disposition
of qualified 
12 property to the extent of such reduction.
13  (8) Unless the investment credit is extended by law, 
14 the
basis of qualified property shall not include costs 
15 incurred after
December 31, 2018, except for costs incurred 
16 pursuant to a binding
contract entered into on or before 
17 December 31, 2018.
18  (9) Each taxable year ending before December 31, 2000, 
19 a partnership may
elect to pass through to its
partners the 
20 credits to which the partnership is entitled under this 
21 subsection
(e) for the taxable year. A partner may use the 
22 credit allocated to him or her
under this paragraph only 
23 against the tax imposed in subsections (c) and (d) of
this 
24 Section. If the partnership makes that election, those 
25 credits shall be
allocated among the partners in the 
26 partnership in accordance with the rules
set forth in 
 
 
09800SB1739sam001- 147 -LRB098 10559 AMC 42403 a


1 Section 704(b) of the Internal Revenue Code, and the rules

2 promulgated under that Section, and the allocated amount of 
3 the credits shall
be allowed to the partners for that 
4 taxable year. The partnership shall make
this election on 
5 its Personal Property Tax Replacement Income Tax return for

6 that taxable year. The election to pass through the credits 
7 shall be
irrevocable.
8  For taxable years ending on or after December 31, 2000, 
9 a
partner that qualifies its
partnership for a subtraction 
10 under subparagraph (I) of paragraph (2) of
subsection (d) 
11 of Section 203 or a shareholder that qualifies a Subchapter 
12 S
corporation for a subtraction under subparagraph (S) of 
13 paragraph (2) of
subsection (b) of Section 203 shall be 
14 allowed a credit under this subsection
(e) equal to its 
15 share of the credit earned under this subsection (e) during

16 the taxable year by the partnership or Subchapter S 
17 corporation, determined in
accordance with the 
18 determination of income and distributive share of
income 
19 under Sections 702 and 704 and Subchapter S of the Internal 
20 Revenue
Code. This paragraph is exempt from the provisions 
21 of Section 250.
22 (f) Investment credit; Enterprise Zone; River Edge 
23Redevelopment Zone.
24  (1) A taxpayer shall be allowed a credit against the 
25 tax imposed
by subsections (a) and (b) of this Section for 
26 investment in qualified
property which is placed in service 
 
 
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1 in an Enterprise Zone created
pursuant to the Illinois 
2 Enterprise Zone Act or, for property placed in service on 
3 or after July 1, 2006, a River Edge Redevelopment Zone 
4 established pursuant to the River Edge Redevelopment Zone 
5 Act. For partners, shareholders
of Subchapter S 
6 corporations, and owners of limited liability companies,

7 if the liability company is treated as a partnership for 
8 purposes of
federal and State income taxation, there shall 
9 be allowed a credit under
this subsection (f) to be 
10 determined in accordance with the determination
of income 
11 and distributive share of income under Sections 702 and 704 
12 and
Subchapter S of the Internal Revenue Code. The credit 
13 shall be .5% of the
basis for such property. The credit 
14 shall be available only in the taxable
year in which the 
15 property is placed in service in the Enterprise Zone or 
16 River Edge Redevelopment Zone and
shall not be allowed to 
17 the extent that it would reduce a taxpayer's
liability for 
18 the tax imposed by subsections (a) and (b) of this Section 
19 to
below zero. For tax years ending on or after December 
20 31, 1985, the credit
shall be allowed for the tax year in 
21 which the property is placed in
service, or, if the amount 
22 of the credit exceeds the tax liability for that
year, 
23 whether it exceeds the original liability or the liability 
24 as later
amended, such excess may be carried forward and 
25 applied to the tax
liability of the 5 taxable years 
26 following the excess credit year.
The credit shall be 
 
 
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1 applied to the earliest year for which there is a

2 liability. If there is credit from more than one tax year 
3 that is available
to offset a liability, the credit 
4 accruing first in time shall be applied
first.
5  (2) The term qualified property means property which:
6   (A) is tangible, whether new or used, including 
7 buildings and
structural components of buildings;
8   (B) is depreciable pursuant to Section 167 of the 
9 Internal Revenue
Code, except that "3-year property" 
10 as defined in Section 168(c)(2)(A) of
that Code is not 
11 eligible for the credit provided by this subsection 
12 (f);
13   (C) is acquired by purchase as defined in Section 
14 179(d) of
the Internal Revenue Code;
15   (D) is used in the Enterprise Zone or River Edge 
16 Redevelopment Zone by the taxpayer; and
17   (E) has not been previously used in Illinois in 
18 such a manner and by
such a person as would qualify for 
19 the credit provided by this subsection
(f) or 
20 subsection (e).
21  (3) The basis of qualified property shall be the basis 
22 used to compute
the depreciation deduction for federal 
23 income tax purposes.
24  (4) If the basis of the property for federal income tax 
25 depreciation
purposes is increased after it has been placed 
26 in service in the Enterprise
Zone or River Edge 
 
 
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1 Redevelopment Zone by the taxpayer, the amount of such 
2 increase shall be deemed property
placed in service on the 
3 date of such increase in basis.
4  (5) The term "placed in service" shall have the same 
5 meaning as under
Section 46 of the Internal Revenue Code.
6  (6) If during any taxable year, any property ceases to 
7 be qualified
property in the hands of the taxpayer within 
8 48 months after being placed
in service, or the situs of 
9 any qualified property is moved outside the
Enterprise Zone 
10 or River Edge Redevelopment Zone within 48 months after 
11 being placed in service, the tax
imposed under subsections 
12 (a) and (b) of this Section 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 (6), 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  (7) There shall be allowed an additional credit equal 
24 to 0.5% of the basis of qualified property placed in 
25 service during the taxable year in a River Edge 
26 Redevelopment Zone, provided such property is placed in 
 
 
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1 service on or after July 1, 2006, and the taxpayer's base 
2 employment within Illinois has increased by 1% or more over 
3 the preceding year as determined by the taxpayer's 
4 employment records filed with the Illinois Department of 
5 Employment Security. Taxpayers who are new to Illinois 
6 shall be deemed to have met the 1% growth in base 
7 employment for the first year in which they file employment 
8 records with the Illinois Department of Employment 
9 Security. If, in any year, the increase in base employment 
10 within Illinois over the preceding year is less than 1%, 
11 the additional credit shall be limited to that percentage 
12 times a fraction, the numerator of which is 0.5% and the 
13 denominator of which is 1%, but shall not exceed 0.5%.

14 (g) Jobs Tax Credit; River Edge Redevelopment Zone and 
15Foreign Trade Zone or Sub-Zone.
16  (1) A taxpayer conducting a trade or business, for 
17 taxable years ending on or after December 31, 2006, in a 
18 River Edge Redevelopment Zone or conducting a trade or 
19 business in a federally designated
Foreign Trade Zone or 
20 Sub-Zone shall be allowed a credit against the tax
imposed 
21 by subsections (a) and (b) of this Section in the amount of 
22 $500
per eligible employee hired to work in the zone during 
23 the taxable year.
24  (2) To qualify for the credit:
25   (A) the taxpayer must hire 5 or more eligible 
26 employees to work in a River Edge Redevelopment Zone or 
 
 
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1 federally designated Foreign Trade Zone or Sub-Zone

2 during the taxable year;
3   (B) the taxpayer's total employment within the 
4 River Edge Redevelopment Zone or
federally designated 
5 Foreign Trade Zone or Sub-Zone must
increase by 5 or 
6 more full-time employees beyond the total employed in 
7 that
zone at the end of the previous tax year for which 
8 a jobs tax
credit under this Section was taken, or 
9 beyond the total employed by the
taxpayer as of 
10 December 31, 1985, whichever is later; and
11   (C) the eligible employees must be employed 180 
12 consecutive days in
order to be deemed hired for 
13 purposes of this subsection.
14  (3) An "eligible employee" means an employee who is:
15   (A) Certified by the Department of Commerce and 
16 Economic Opportunity
as "eligible for services" 
17 pursuant to regulations promulgated in
accordance with 
18 Title II of the Job Training Partnership Act, Training

19 Services for the Disadvantaged or Title III of the Job 
20 Training Partnership
Act, Employment and Training 
21 Assistance for Dislocated Workers Program.
22   (B) Hired after the River Edge Redevelopment Zone 
23 or federally designated Foreign
Trade Zone or Sub-Zone 
24 was designated or the trade or
business was located in 
25 that zone, whichever is later.
26   (C) Employed in the River Edge Redevelopment Zone 
 
 
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1 or Foreign Trade Zone or
Sub-Zone. An employee is 
2 employed in a federally designated Foreign Trade Zone 
3 or Sub-Zone
if his services are rendered there or it is 
4 the base of
operations for the services performed.
5   (D) A full-time employee working 30 or more hours 
6 per week.
7  (4) For tax years ending on or after December 31, 1985 
8 and prior to
December 31, 1988, the credit shall be allowed 
9 for the tax year in which
the eligible employees are hired. 
10 For tax years ending on or after
December 31, 1988, the 
11 credit shall be allowed for the tax year immediately

12 following the tax year in which the eligible employees are 
13 hired. If the
amount of the credit exceeds the tax 
14 liability for that year, whether it
exceeds the original 
15 liability or the liability as later amended, such
excess 
16 may be carried forward and applied to the tax liability of 
17 the 5
taxable years following the excess credit year. The 
18 credit shall be
applied to the earliest year for which 
19 there is a liability. If there is
credit from more than one 
20 tax year that is available to offset a liability,
earlier 
21 credit shall be applied first.
22  (5) The Department of Revenue shall promulgate such 
23 rules and regulations
as may be deemed necessary to carry 
24 out the purposes of this subsection (g).
25  (6) The credit shall be available for eligible 
26 employees hired on or
after January 1, 1986.
 
 
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1 (h) Investment credit; High Impact Business.
2  (1) Subject to subsections (b) and (b-5) of Section
5.5 
3 of the Illinois Enterprise Zone Act, a taxpayer shall be 
4 allowed a credit
against the tax imposed by subsections (a) 
5 and (b) of this Section for
investment in qualified

6 property which is placed in service by a Department of 
7 Commerce and Economic Opportunity
designated High Impact 
8 Business. The credit shall be .5% of the basis
for such 
9 property. The credit shall not be available (i) until the 
10 minimum
investments in qualified property set forth in 
11 subdivision (a)(3)(A) of
Section 5.5 of the Illinois

12 Enterprise Zone Act have been satisfied
or (ii) until the 
13 time authorized in subsection (b-5) of the Illinois

14 Enterprise Zone Act for entities designated as High Impact 
15 Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and 
16 (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone 
17 Act, and shall not be allowed to the extent that it would

18 reduce a taxpayer's liability for the tax imposed by 
19 subsections (a) and (b) of
this Section to below zero. The 
20 credit applicable to such investments shall be
taken in the 
21 taxable year in which such investments have been completed. 
22 The
credit for additional investments beyond the minimum 
23 investment by a designated
high impact business authorized 
24 under subdivision (a)(3)(A) of Section 5.5 of
the Illinois 
25 Enterprise Zone Act shall be available only in the taxable 
26 year in
which the property is placed in service and shall 
 
 
09800SB1739sam001- 155 -LRB098 10559 AMC 42403 a


1 not be allowed to the extent
that it would reduce a 
2 taxpayer's liability for the tax imposed by subsections
(a) 
3 and (b) of this Section to below zero.
For tax years ending 
4 on or after December 31, 1987, the credit shall be
allowed 
5 for the tax year in which the property is placed in 
6 service, or, if
the amount of the credit exceeds the tax 
7 liability for that year, whether
it exceeds the original 
8 liability or the liability as later amended, such
excess 
9 may be carried forward and applied to the tax liability of 
10 the 5
taxable years following the excess credit year. The 
11 credit shall be
applied to the earliest year for which 
12 there is a liability. If there is
credit from more than one 
13 tax year that is available to offset a liability,
the 
14 credit accruing first in time shall be applied first.
15  Changes made in this subdivision (h)(1) by Public Act 
16 88-670
restore changes made by Public Act 85-1182 and 
17 reflect existing law.
18  (2) The term qualified property means property which:
19   (A) is tangible, whether new or used, including 
20 buildings and
structural components of buildings;
21   (B) is depreciable pursuant to Section 167 of the 
22 Internal Revenue
Code, except that "3-year property" 
23 as defined in Section 168(c)(2)(A) of
that Code is not 
24 eligible for the credit provided by this subsection 
25 (h);
26   (C) is acquired by purchase as defined in Section 
 
 
09800SB1739sam001- 156 -LRB098 10559 AMC 42403 a


1 179(d) of the
Internal Revenue Code; and
2   (D) is not eligible for the Enterprise Zone 
3 Investment Credit provided
by subsection (f) of this 
4 Section.
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 a federally
designated Foreign Trade Zone or 
11 Sub-Zone located in Illinois by the taxpayer,
the amount of 
12 such increase shall be deemed property placed in service on

13 the 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 ending on or before 
17 December 31, 1996,
any property ceases to be qualified

18 property in the hands of the taxpayer within 48 months 
19 after being placed
in service, or the situs of any 
20 qualified property is moved outside
Illinois within 48 
21 months after being placed in service, the tax imposed
under 
22 subsections (a) and (b) of this Section for such taxable 
23 year shall
be increased. Such increase shall be determined 
24 by (i) recomputing the
investment credit which would have 
25 been allowed for the year in which
credit for such property 
26 was originally allowed by eliminating such
property from 
 
 
09800SB1739sam001- 157 -LRB098 10559 AMC 42403 a


1 such computation, and (ii) subtracting such recomputed 
2 credit
from the amount of credit previously allowed. For 
3 the purposes of this
paragraph (6), a reduction of the 
4 basis of qualified property resulting
from a 
5 redetermination of the purchase price shall be deemed a 
6 disposition
of qualified property to the extent of such 
7 reduction.
8  (7) Beginning with tax years ending after December 31, 
9 1996, if a
taxpayer qualifies for the credit under this 
10 subsection (h) and thereby is
granted a tax abatement and 
11 the taxpayer relocates its entire facility in
violation of 
12 the explicit terms and length of the contract under Section

13 18-183 of the Property Tax Code, the tax imposed under 
14 subsections
(a) and (b) of this Section shall be increased 
15 for the taxable year
in which the taxpayer relocated its 
16 facility by an amount equal to the
amount of credit 
17 received by the taxpayer under this subsection (h).
18 (i) Credit for Personal Property Tax Replacement Income 
19Tax.
For tax years ending prior to December 31, 2003, a credit 
20shall be allowed
against the tax imposed by
subsections (a) and 
21(b) of this Section for the tax imposed by subsections (c)
and 
22(d) of this Section. This credit shall be computed by 
23multiplying the tax
imposed by subsections (c) and (d) of this 
24Section by a fraction, the numerator
of which is base income 
25allocable to Illinois and the denominator of which is
Illinois 
26base income, and further multiplying the product by the tax 
 
 
09800SB1739sam001- 158 -LRB098 10559 AMC 42403 a


1rate
imposed by subsections (a) and (b) of this Section.
2 Any credit earned on or after December 31, 1986 under
this 
3subsection which is unused in the year
the credit is computed 
4because it exceeds the tax liability imposed by
subsections (a) 
5and (b) for that year (whether it exceeds the original

6liability or the liability as later amended) may be carried 
7forward and
applied to the tax liability imposed by subsections 
8(a) and (b) of the 5
taxable years following the excess credit 
9year, provided that no credit may
be carried forward to any 
10year ending on or
after December 31, 2003. This credit shall be

11applied first to the earliest year for which there is a 
12liability. If
there is a credit under this subsection from more 
13than one tax year that is
available to offset a liability the 
14earliest credit arising under this
subsection shall be applied 
15first.
16 If, during any taxable year ending on or after December 31, 
171986, the
tax imposed by subsections (c) and (d) of this 
18Section for which a taxpayer
has claimed a credit under this 
19subsection (i) is reduced, the amount of
credit for such tax 
20shall also be reduced. Such reduction shall be
determined by 
21recomputing the credit to take into account the reduced tax

22imposed by subsections (c) and (d). If any portion of the

23reduced amount of credit has been carried to a different 
24taxable year, an
amended return shall be filed for such taxable 
25year to reduce the amount of
credit claimed.
26 (j) Training expense credit. Beginning with tax years 
 
 
09800SB1739sam001- 159 -LRB098 10559 AMC 42403 a


1ending on or
after December 31, 1986 and prior to December 31, 
22003, a taxpayer shall be
allowed a credit against the
tax 
3imposed by subsections (a) and (b) under this Section
for all 
4amounts paid or accrued, on behalf of all persons
employed by 
5the taxpayer in Illinois or Illinois residents employed
outside 
6of Illinois by a taxpayer, for educational or vocational 
7training in
semi-technical or technical fields or semi-skilled 
8or skilled fields, which
were deducted from gross income in the 
9computation of taxable income. The
credit against the tax 
10imposed by subsections (a) and (b) shall be 1.6% of
such 
11training expenses. For partners, shareholders of subchapter S

12corporations, and owners of limited liability companies, if the 
13liability
company is treated as a partnership for purposes of 
14federal and State income
taxation, there shall be allowed a 
15credit under this subsection (j) to be
determined in accordance 
16with the determination of income and distributive
share of 
17income under Sections 702 and 704 and subchapter S of the 
18Internal
Revenue Code.
19 Any credit allowed under this subsection which is unused in 
20the year
the credit is earned may be carried forward to each of 
21the 5 taxable
years following the year for which the credit is 
22first computed until it is
used. This credit shall be applied 
23first to the earliest year for which
there is a liability. If 
24there is a credit under this subsection from more
than one tax 
25year that is available to offset a liability the earliest

26credit arising under this subsection shall be applied first. No 
 
 
09800SB1739sam001- 160 -LRB098 10559 AMC 42403 a


1carryforward
credit may be claimed in any tax year ending on or 
2after
December 31, 2003.
3 (k) Research and development credit. For tax years ending 
4after July 1, 1990 and prior to
December 31, 2003, and 
5beginning again for tax years ending on or after December 31, 
62004, and ending prior to January 1, 2016, a taxpayer shall be

7allowed a credit against the tax imposed by subsections (a) and 
8(b) of this
Section for increasing research activities in this 
9State. The credit
allowed against the tax imposed by 
10subsections (a) and (b) shall be equal
to 6 1/2% of the 
11qualifying expenditures for increasing research activities
in 
12this State. For partners, shareholders of subchapter S 
13corporations, and
owners of limited liability companies, if the 
14liability company is treated as a
partnership for purposes of 
15federal and State income taxation, there shall be
allowed a 
16credit under this subsection to be determined in accordance 
17with the
determination of income and distributive share of 
18income under Sections 702 and
704 and subchapter S of the 
19Internal Revenue Code.
20 For purposes of this subsection, "qualifying expenditures" 
21means the
qualifying expenditures as defined for the federal 
22credit for increasing
research activities which would be 
23allowable under Section 41 of the
Internal Revenue Code and 
24which are conducted in this State, "qualifying
expenditures for 
25increasing research activities in this State" means the
excess 
26of qualifying expenditures for the taxable year in which 
 
 
09800SB1739sam001- 161 -LRB098 10559 AMC 42403 a


1incurred
over qualifying expenditures for the base period, 
2"qualifying expenditures
for the base period" means the average 
3of the qualifying expenditures for
each year in the base 
4period, and "base period" means the 3 taxable years
immediately 
5preceding the taxable year for which the determination is
being 
6made.
7 Any credit in excess of the tax liability for the taxable 
8year
may be carried forward. A taxpayer may elect to have the

9unused credit shown on its final completed return carried over 
10as a credit
against the tax liability for the following 5 
11taxable years or until it has
been fully used, whichever occurs 
12first; provided that no credit earned in a tax year ending 
13prior to December 31, 2003 may be carried forward to any year 
14ending on or after December 31, 2003.
15 If an unused credit is carried forward to a given year from 
162 or more
earlier years, that credit arising in the earliest 
17year will be applied
first against the tax liability for the 
18given year. If a tax liability for
the given year still 
19remains, the credit from the next earliest year will
then be 
20applied, and so on, until all credits have been used or no tax

21liability for the given year remains. Any remaining unused 
22credit or
credits then will be carried forward to the next 
23following year in which a
tax liability is incurred, except 
24that no credit can be carried forward to
a year which is more 
25than 5 years after the year in which the expense for
which the 
26credit is given was incurred.
 
 
09800SB1739sam001- 162 -LRB098 10559 AMC 42403 a


1 No inference shall be drawn from this amendatory Act of the 
291st General
Assembly in construing this Section for taxable 
3years beginning before January
1, 1999.
4 (l) Environmental Remediation Tax Credit.
5  (i) For tax years ending after December 31, 1997 and on 
6 or before
December 31, 2001, a taxpayer shall be allowed a 
7 credit against the tax
imposed by subsections (a) and (b) 
8 of this Section for certain amounts paid
for unreimbursed 
9 eligible remediation costs, as specified in this 
10 subsection.
For purposes of this Section, "unreimbursed 
11 eligible remediation costs" means
costs approved by the 
12 Illinois Environmental Protection Agency ("Agency") under

13 Section 58.14 of the Environmental Protection Act that were 
14 paid in performing
environmental remediation at a site for 
15 which a No Further Remediation Letter
was issued by the 
16 Agency and recorded under Section 58.10 of the 
17 Environmental
Protection Act. The credit must be claimed 
18 for the taxable year in which
Agency approval of the 
19 eligible remediation costs is granted. The credit is
not 
20 available to any taxpayer if the taxpayer or any related 
21 party caused or
contributed to, in any material respect, a 
22 release of regulated substances on,
in, or under the site 
23 that was identified and addressed by the remedial
action 
24 pursuant to the Site Remediation Program of the 
25 Environmental Protection
Act. After the Pollution Control 
26 Board rules are adopted pursuant to the
Illinois 
 
 
09800SB1739sam001- 163 -LRB098 10559 AMC 42403 a


1 Administrative Procedure Act for the administration and 
2 enforcement of
Section 58.9 of the Environmental 
3 Protection Act, determinations as to credit
availability 
4 for purposes of this Section shall be made consistent with 
5 those
rules. For purposes of this Section, "taxpayer" 
6 includes a person whose tax
attributes the taxpayer has 
7 succeeded to under Section 381 of the Internal
Revenue Code 
8 and "related party" includes the persons disallowed a 
9 deduction
for losses by paragraphs (b), (c), and (f)(1) of 
10 Section 267 of the Internal
Revenue Code by virtue of being 
11 a related taxpayer, as well as any of its
partners. The 
12 credit allowed against the tax imposed by subsections (a) 
13 and
(b) shall be equal to 25% of the unreimbursed eligible 
14 remediation costs in
excess of $100,000 per site, except 
15 that the $100,000 threshold shall not apply
to any site 
16 contained in an enterprise zone as determined by the 
17 Department of
Commerce and Community Affairs (now 
18 Department of Commerce and Economic Opportunity). The 
19 total credit allowed shall not exceed
$40,000 per year with 
20 a maximum total of $150,000 per site. For partners and

21 shareholders of subchapter S corporations, there shall be 
22 allowed a credit
under this subsection to be determined in 
23 accordance with the determination of
income and 
24 distributive share of income under Sections 702 and 704 and

25 subchapter S of the Internal Revenue Code.
26  (ii) A credit allowed under this subsection that is 
 
 
09800SB1739sam001- 164 -LRB098 10559 AMC 42403 a


1 unused in the year
the credit is earned may be carried 
2 forward to each of the 5 taxable years
following the year 
3 for which the credit is first earned until it is used.
The 
4 term "unused credit" does not include any amounts of 
5 unreimbursed eligible
remediation costs in excess of the 
6 maximum credit per site authorized under
paragraph (i). 
7 This credit shall be applied first to the earliest year
for 
8 which there is a liability. If there is a credit under this 
9 subsection
from more than one tax year that is available to 
10 offset a liability, the
earliest credit arising under this 
11 subsection shall be applied first. A
credit allowed under 
12 this subsection may be sold to a buyer as part of a sale
of 
13 all or part of the remediation site for which the credit 
14 was granted. The
purchaser of a remediation site and the 
15 tax credit shall succeed to the unused
credit and remaining 
16 carry-forward period of the seller. To perfect the

17 transfer, the assignor shall record the transfer in the 
18 chain of title for the
site and provide written notice to 
19 the Director of the Illinois Department of
Revenue of the 
20 assignor's intent to sell the remediation site and the 
21 amount of
the tax credit to be transferred as a portion of 
22 the sale. In no event may a
credit be transferred to any 
23 taxpayer if the taxpayer or a related party would
not be 
24 eligible under the provisions of subsection (i).
25  (iii) For purposes of this Section, the term "site" 
26 shall have the same
meaning as under Section 58.2 of the 
 
 
09800SB1739sam001- 165 -LRB098 10559 AMC 42403 a


1 Environmental Protection Act.
2 (m) Education expense credit. Beginning with tax years 
3ending after
December 31, 1999, a taxpayer who
is the custodian 
4of one or more qualifying pupils shall be allowed a credit

5against the tax imposed by subsections (a) and (b) of this 
6Section for
qualified education expenses incurred on behalf of 
7the qualifying pupils.
The credit shall be equal to 25% of 
8qualified education expenses, but in no
event may the total 
9credit under this subsection claimed by a
family that is the

10custodian of qualifying pupils exceed $500. In no event shall a 
11credit under
this subsection reduce the taxpayer's liability 
12under this Act to less than
zero. This subsection is exempt 
13from the provisions of Section 250 of this
Act.
14 For purposes of this subsection:
15 "Qualifying pupils" means individuals who (i) are 
16residents of the State of
Illinois, (ii) are under the age of 
1721 at the close of the school year for
which a credit is 
18sought, and (iii) during the school year for which a credit
is 
19sought were full-time pupils enrolled in a kindergarten through 
20twelfth
grade education program at any school, as defined in 
21this subsection.
22 "Qualified education expense" means the amount incurred
on 
23behalf of a qualifying pupil in excess of $250 for tuition, 
24book fees, and
lab fees at the school in which the pupil is 
25enrolled during the regular school
year.
26 "School" means any public or nonpublic elementary or 
 
 
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1secondary school in
Illinois that is in compliance with Title 
2VI of the Civil Rights Act of 1964
and attendance at which 
3satisfies the requirements of Section 26-1 of the
School Code, 
4except that nothing shall be construed to require a child to

5attend any particular public or nonpublic school to qualify for 
6the credit
under this Section.
7 "Custodian" means, with respect to qualifying pupils, an 
8Illinois resident
who is a parent, the parents, a legal 
9guardian, or the legal guardians of the
qualifying pupils.
10 (n) River Edge Redevelopment Zone site remediation tax 
11credit.

12  (i) For tax years ending on or after December 31, 2006, 
13 a taxpayer shall be allowed a credit against the tax 
14 imposed by subsections (a) and (b) of this Section for 
15 certain amounts paid for unreimbursed eligible remediation 
16 costs, as specified in this subsection. For purposes of 
17 this Section, "unreimbursed eligible remediation costs" 
18 means costs approved by the Illinois Environmental 
19 Protection Agency ("Agency") under Section 58.14a of the 
20 Environmental Protection Act that were paid in performing 
21 environmental remediation at a site within a River Edge 
22 Redevelopment Zone for which a No Further Remediation 
23 Letter was issued by the Agency and recorded under Section 
24 58.10 of the Environmental Protection Act. The credit must 
25 be claimed for the taxable year in which Agency approval of 
26 the eligible remediation costs is granted. The credit is 
 
 
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1 not available to any taxpayer if the taxpayer or any 
2 related party caused or contributed to, in any material 
3 respect, a release of regulated substances on, in, or under 
4 the site that was identified and addressed by the remedial 
5 action pursuant to the Site Remediation Program of the 
6 Environmental Protection Act. Determinations as to credit 
7 availability for purposes of this Section shall be made 
8 consistent with rules adopted by the Pollution Control 
9 Board pursuant to the Illinois Administrative Procedure 
10 Act for the administration and enforcement of Section 58.9 
11 of the Environmental Protection Act. For purposes of this 
12 Section, "taxpayer" includes a person whose tax attributes 
13 the taxpayer has succeeded to under Section 381 of the 
14 Internal Revenue Code and "related party" includes the 
15 persons disallowed a deduction for losses by paragraphs 
16 (b), (c), and (f)(1) of Section 267 of the Internal Revenue 
17 Code by virtue of being a related taxpayer, as well as any 
18 of its partners. The credit allowed against the tax imposed 
19 by subsections (a) and (b) shall be equal to 25% of the 
20 unreimbursed eligible remediation costs in excess of 
21 $100,000 per site.
22  (ii) A credit allowed under this subsection that is 
23 unused in the year the credit is earned may be carried 
24 forward to each of the 5 taxable years following the year 
25 for which the credit is first earned until it is used. This 
26 credit shall be applied first to the earliest year for 
 
 
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1 which there is a liability. If there is a credit under this 
2 subsection from more than one tax year that is available to 
3 offset a liability, the earliest credit arising under this 
4 subsection shall be applied first. A credit allowed under 
5 this subsection may be sold to a buyer as part of a sale of 
6 all or part of the remediation site for which the credit 
7 was granted. The purchaser of a remediation site and the 
8 tax credit shall succeed to the unused credit and remaining 
9 carry-forward period of the seller. To perfect the 
10 transfer, the assignor shall record the transfer in the 
11 chain of title for the site and provide written notice to 
12 the Director of the Illinois Department of Revenue of the 
13 assignor's intent to sell the remediation site and the 
14 amount of the tax credit to be transferred as a portion of 
15 the sale. In no event may a credit be transferred to any 
16 taxpayer if the taxpayer or a related party would not be 
17 eligible under the provisions of subsection (i).
18  (iii) For purposes of this Section, the term "site" 
19 shall have the same meaning as under Section 58.2 of the 
20 Environmental Protection Act.
21(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09; 
2296-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff. 
231-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff. 
248-7-12.)




25 (35 ILCS 5/303) (from Ch. 120, par. 3-303)



 
 
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1 Sec. 303. (a) In general. Any item of capital gain or loss, 
2and any
item of income from rents or royalties from real or 
3tangible personal
property, interest, dividends, and patent or 
4copyright royalties, and prizes
awarded under the Illinois 
5Lottery Law, and, for taxable years ending on or after December 
631, 2013, wagering and gambling winnings from Illinois sources 
7as set forth in subsection (e-1) of this Section, to the extent 
8such item constitutes
nonbusiness income, together with any 
9item of deduction directly allocable
thereto, shall be 
10allocated by any person other than a resident as provided
in 
11this Section.

12 (b) Capital gains and losses. 
13  (1) Real property. Capital gains and
losses from sales 
14 or exchanges of real property are allocable to this State

15 if the property is located in this State.

16  (2) Tangible personal property. Capital gains and 
17 losses from sales
or exchanges of tangible personal 
18 property are allocable to this State if,
at the time of 
19 such sale or exchange:

20   (A) The property had its situs in this State; or

21   (B) The taxpayer had its commercial domicile in 
22 this State and was not
taxable in the state in which 
23 the property had its situs.

24  (3) Intangibles. Capital gains and losses from sales or 
25 exchanges of
intangible personal property are allocable to 
26 this State if the taxpayer
had its commercial domicile in 
 
 
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1 this State at the time of such sale or
exchange.

2 (c) Rents and royalties.
3  (1) Real property. Rents and royalties
from real 
4 property are allocable to this State if the property is 
5 located
in this State.

6  (2) Tangible personal property. Rents and royalties 
7 from tangible
personal property are allocable to this 
8 State:

9   (A) If and to the extent that the property is 
10 utilized in this State; or

11   (B) In their entirety if, at the time such rents or 
12 royalties were paid
or accrued, the taxpayer had its 
13 commercial domicile in this State and was
not organized 
14 under the laws of or taxable with respect to such rents 
15 or
royalties in the state in which the property was 
16 utilized.
The extent of utilization of tangible 
17 personal property in a state is
determined by 
18 multiplying the rents or royalties derived from such 
19 property
by a fraction, the numerator of which is the 
20 number of days of physical
location of the property in 
21 the state during the rental or royalty period
in the 
22 taxable year and the denominator of which is the number 
23 of days of
physical location of the property everywhere 
24 during all rental or royalty
periods in the taxable 
25 year. If the physical location of the property
during 
26 the rental or royalty period is unknown or 
 
 
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1 unascertainable by the
taxpayer, tangible personal 
2 property is utilized in the state in which the
property 
3 was located at the time the rental or royalty payer 
4 obtained
possession.

5 (d) Patent and copyright royalties.

6  (1) Allocation. Patent and copyright royalties are 
7 allocable to this
State:

8   (A) If and to the extent that the patent or 
9 copyright is utilized by the
payer in this State; or

10   (B) If and to the extent that the patent or 
11 copyright is utilized by the
payer in a state in which 
12 the taxpayer is not taxable with respect to such

13 royalties and, at the time such royalties were paid or 
14 accrued, the
taxpayer had its commercial domicile in 
15 this State.

16  (2) Utilization.

17   (A) A patent is utilized in a state to the extent 
18 that it is employed in
production, fabrication, 
19 manufacturing or other processing in the state or
to 
20 the extent that a patented product is produced in the 
21 state. If the
basis of receipts from patent royalties 
22 does not permit allocation to
states or if the 
23 accounting procedures do not reflect states of

24 utilization, the patent is utilized in this State if 
25 the taxpayer has its
commercial domicile in this State.

26   (B) A copyright is utilized in a state to the 
 
 
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1 extent that printing or
other publication originates 
2 in the state. If the basis of receipts from
copyright 
3 royalties does not permit allocation to states or if 
4 the
accounting procedures do not reflect states of 
5 utilization, the copyright
is utilized in this State if 
6 the taxpayer has its commercial domicile in
this State.

7 (e) Illinois lottery prizes. Prizes awarded under the 
8"Illinois Lottery
Law", approved December 14, 1973, are 
9allocable to this State.

10 (e-1) Wagering and gambling winnings. Payments received in 
11taxable years ending on or after December 31, 2013 of winnings 
12from pari-mutuel wagering conducted at a wagering facility 
13licensed under the Illinois Horse Racing Act of 1975 and from 
14gambling games conducted on a riverboat or in a casino or 
15electronic gaming facility licensed under the Illinois 
16Gambling Act are allocable to this State. 
17 (e-5) Unemployment benefits. Unemployment benefits paid by 
18the Illinois Department of Employment Security are allocable to 
19this State. 
20 (f) Taxability in other state. For purposes of allocation 
21of income
pursuant to this Section, a taxpayer is taxable in 
22another state if:

23  (1) In that state he is subject to a net income tax, a 
24 franchise tax
measured by net income, a franchise tax for 
25 the privilege of doing
business, or a corporate stock tax; 
26 or

 
 
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1  (2) That state has jurisdiction to subject the taxpayer 
2 to a net income
tax regardless of whether, in fact, the 
3 state does or does not.

4 (g) Cross references. 
5  (1) For allocation of interest and dividends by
persons 
6 other than residents, see Section 301(c)(2).

7  (2) For allocation of nonbusiness income by residents, 
8 see Section
301(a).

9(Source: P.A. 97-709, eff. 7-1-12.)





10 (35 ILCS 5/304) (from Ch. 120, par. 3-304)


11 Sec. 304. Business income of persons other than residents. 

12 (a) In general. The business income of a person other than 
13a
resident shall be allocated to this State if such person's 
14business
income is derived solely from this State. If a person 
15other than a
resident derives business income from this State 
16and one or more other
states, then, for tax years ending on or 
17before December 30, 1998, and
except as otherwise provided by 
18this Section, such
person's business income shall be 
19apportioned to this State by
multiplying the income by a 
20fraction, the numerator of which is the sum
of the property 
21factor (if any), the payroll factor (if any) and 200% of the

22sales factor (if any), and the denominator of which is 4 
23reduced by the
number of factors other than the sales factor 
24which have a denominator
of zero and by an additional 2 if the 
25sales factor has a denominator of zero.
For tax years ending on 
 
 
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1or after December 31, 1998, and except as otherwise
provided by 
2this Section, persons other than
residents who derive business 
3income from this State and one or more other
states shall 
4compute their apportionment factor by weighting their 
5property,
payroll, and sales factors as provided in
subsection 
6(h) of this Section.

7 (1) Property factor.


8  (A) The property factor is a fraction, the numerator of 
9 which is the
average value of the person's real and 
10 tangible personal property owned
or rented and used in the 
11 trade or business in this State during the
taxable year and 
12 the denominator of which is the average value of all
the 
13 person's real and tangible personal property owned or 
14 rented and
used in the trade or business during the taxable 
15 year.


16  (B) Property owned by the person is valued at its 
17 original cost.
Property rented by the person is valued at 8 
18 times the net annual rental
rate. Net annual rental rate is 
19 the annual rental rate paid by the
person less any annual 
20 rental rate received by the person from
sub-rentals.


21  (C) The average value of property shall be determined 
22 by averaging
the values at the beginning and ending of the 
23 taxable year but the
Director may require the averaging of 
24 monthly values during the taxable
year if reasonably 
25 required to reflect properly the average value of the

26 person's property.

 
 
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1 (2) Payroll factor.


2  (A) The payroll factor is a fraction, the numerator of 
3 which is the
total amount paid in this State during the 
4 taxable year by the person
for compensation, and the 
5 denominator of which is the total compensation
paid 
6 everywhere during the taxable year.


7  (B) Compensation is paid in this State if:


8   (i) The individual's service is performed entirely 
9 within this
State;


10   (ii) The individual's service is performed both 
11 within and without
this State, but the service 
12 performed without this State is incidental
to the 
13 individual's service performed within this State; or


14   (iii) Some of the service is performed within this 
15 State and either
the base of operations, or if there is 
16 no base of operations, the place
from which the service 
17 is directed or controlled is within this State,
or the 
18 base of operations or the place from which the service 
19 is
directed or controlled is not in any state in which 
20 some part of the
service is performed, but the 
21 individual's residence is in this State.

22   (iv) Compensation paid to nonresident professional 
23 athletes.
24   (a) General. The Illinois source income of a 
25 nonresident individual who is a member of a 
26 professional athletic team includes the portion of the 
 
 
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1 individual's total compensation for services performed 
2 as a member of a professional athletic team during the 
3 taxable year which the number of duty days spent within 
4 this State performing services for the team in any 
5 manner during the taxable year bears to the total 
6 number of duty days spent both within and without this 
7 State during the taxable year.
8   (b) Travel days. Travel days that do not involve 
9 either a game, practice, team meeting, or other similar 
10 team event are not considered duty days spent in this 
11 State. However, such travel days are considered in the 
12 total duty days spent both within and without this 
13 State.
14   (c) Definitions. For purposes of this subpart 
15 (iv):
16    (1) The term "professional athletic team" 
17 includes, but is not limited to, any professional 
18 baseball, basketball, football, soccer, or hockey 
19 team.
20    (2) The term "member of a professional 
21 athletic team" includes those employees who are 
22 active players, players on the disabled list, and 
23 any other persons required to travel and who travel 
24 with and perform services on behalf of a 
25 professional athletic team on a regular basis. 
26 This includes, but is not limited to, coaches, 
 
 
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1 managers, and trainers.
2    (3) Except as provided in items (C) and (D) of 
3 this subpart (3), the term "duty days" means all 
4 days during the taxable year from the beginning of 
5 the professional athletic team's official 
6 pre-season training period through the last game 
7 in which the team competes or is scheduled to 
8 compete. Duty days shall be counted for the year in 
9 which they occur, including where a team's 
10 official pre-season training period through the 
11 last game in which the team competes or is 
12 scheduled to compete, occurs during more than one 
13 tax year.
14     (A) Duty days shall also include days on 
15 which a member of a professional athletic team 
16 performs service for a team on a date that does 
17 not fall within the foregoing period (e.g., 
18 participation in instructional leagues, the 
19 "All Star Game", or promotional "caravans"). 
20 Performing a service for a professional 
21 athletic team includes conducting training and 
22 rehabilitation activities, when such 
23 activities are conducted at team facilities.
24     (B) Also included in duty days are game 
25 days, practice days, days spent at team 
26 meetings, promotional caravans, preseason 
 
 
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1 training camps, and days served with the team 
2 through all post-season games in which the team 
3 competes or is scheduled to compete.
4     (C) Duty days for any person who joins a 
5 team during the period from the beginning of 
6 the professional athletic team's official 
7 pre-season training period through the last 
8 game in which the team competes, or is 
9 scheduled to compete, shall begin on the day 
10 that person joins the team. Conversely, duty 
11 days for any person who leaves a team during 
12 this period shall end on the day that person 
13 leaves the team. Where a person switches teams 
14 during a taxable year, a separate duty-day 
15 calculation shall be made for the period the 
16 person was with each team.
17     (D) Days for which a member of a 
18 professional athletic team is not compensated 
19 and is not performing services for the team in 
20 any manner, including days when such member of 
21 a professional athletic team has been 
22 suspended without pay and prohibited from 
23 performing any services for the team, shall not 
24 be treated as duty days.
25     (E) Days for which a member of a 
26 professional athletic team is on the disabled 
 
 
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1 list and does not conduct rehabilitation 
2 activities at facilities of the team, and is 
3 not otherwise performing services for the team 
4 in Illinois, shall not be considered duty days 
5 spent in this State. All days on the disabled 
6 list, however, are considered to be included in 
7 total duty days spent both within and without 
8 this State.
9    (4) The term "total compensation for services 
10 performed as a member of a professional athletic 
11 team" means the total compensation received during 
12 the taxable year for services performed:
13     (A) from the beginning of the official 
14 pre-season training period through the last 
15 game in which the team competes or is scheduled 
16 to compete during that taxable year; and
17     (B) during the taxable year on a date which 
18 does not fall within the foregoing period 
19 (e.g., participation in instructional leagues, 
20 the "All Star Game", or promotional caravans).
21    This compensation shall include, but is not 
22 limited to, salaries, wages, bonuses as described 
23 in this subpart, and any other type of compensation 
24 paid during the taxable year to a member of a 
25 professional athletic team for services performed 
26 in that year. This compensation does not include 
 
 
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1 strike benefits, severance pay, termination pay, 
2 contract or option year buy-out payments, 
3 expansion or relocation payments, or any other 
4 payments not related to services performed for the 
5 team.
6    For purposes of this subparagraph, "bonuses" 
7 included in "total compensation for services 
8 performed as a member of a professional athletic 
9 team" subject to the allocation described in 
10 Section 302(c)(1) are: bonuses earned as a result 
11 of play (i.e., performance bonuses) during the 
12 season, including bonuses paid for championship, 
13 playoff or "bowl" games played by a team, or for 
14 selection to all-star league or other honorary 
15 positions; and bonuses paid for signing a 
16 contract, unless the payment of the signing bonus 
17 is not conditional upon the signee playing any 
18 games for the team or performing any subsequent 
19 services for the team or even making the team, the 
20 signing bonus is payable separately from the 
21 salary and any other compensation, and the signing 
22 bonus is nonrefundable.


23 (3) Sales factor.


24  (A) The sales factor is a fraction, the numerator of 
25 which is the
total sales of the person in this State during 
26 the taxable year, and the
denominator of which is the total 
 
 
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1 sales of the person everywhere during
the taxable year.


2  (B) Sales of tangible personal property are in this 
3 State if:


4   (i) The property is delivered or shipped to a 
5 purchaser, other than
the United States government, 
6 within this State regardless of the f. o.
b. point or 
7 other conditions of the sale; or


8   (ii) The property is shipped from an office, store, 
9 warehouse,
factory or other place of storage in this 
10 State and either the purchaser
is the United States 
11 government or the person is not taxable in the
state of 
12 the purchaser; provided, however, that premises owned 
13 or leased
by a person who has independently contracted 
14 with the seller for the printing
of newspapers, 
15 periodicals or books shall not be deemed to be an 
16 office,
store, warehouse, factory or other place of 
17 storage for purposes of this
Section.
Sales of tangible 
18 personal property are not in this State if the
seller 
19 and purchaser would be members of the same unitary 
20 business group
but for the fact that either the seller 
21 or purchaser is a person with 80%
or more of total 
22 business activity outside of the United States and the

23 property is purchased for resale.


24  (B-1) Patents, copyrights, trademarks, and similar 
25 items of intangible
personal property.


26   (i) Gross receipts from the licensing, sale, or 
 
 
09800SB1739sam001- 182 -LRB098 10559 AMC 42403 a


1 other disposition of a
patent, copyright, trademark, 
2 or similar item of intangible personal property, other 
3 than gross receipts governed by paragraph (B-7) of this 
4 item (3),
are in this State to the extent the item is 
5 utilized in this State during the
year the gross 
6 receipts are included in gross income.


7   (ii) Place of utilization.


8    (I) A patent is utilized in a state to the 
9 extent that it is employed
in production, 
10 fabrication, manufacturing, or other processing in 
11 the state or
to the extent that a patented product 
12 is produced in the state. If a patent is
utilized 
13 in
more than one state, the extent to which it is 
14 utilized in any one state shall
be a fraction equal 
15 to the gross receipts of the licensee or purchaser 
16 from
sales or leases of items produced, 
17 fabricated, manufactured, or processed
within that 
18 state using the patent and of patented items 
19 produced within that
state, divided by the total of 
20 such gross receipts for all states in which the

21 patent is utilized.


22    (II) A copyright is utilized in a state to the 
23 extent that printing or
other publication 
24 originates in the state. If a copyright is utilized 
25 in more
than one state, the extent to which it is 
26 utilized in any one state shall be a
fraction equal 
 
 
09800SB1739sam001- 183 -LRB098 10559 AMC 42403 a


1 to the gross receipts from sales or licenses of 
2 materials
printed or published in that state 
3 divided by the total of such gross receipts
for all 
4 states in which the copyright is utilized.


5    (III) Trademarks and other items of intangible 
6 personal property
governed by this paragraph (B-1) 
7 are utilized in the state in which the
commercial 
8 domicile of the licensee or purchaser is located.


9   (iii) If the state of utilization of an item of 
10 property governed by
this paragraph (B-1) cannot be 
11 determined from the taxpayer's books and
records or 
12 from the books and records of any person related to the 
13 taxpayer
within the meaning of Section 267(b) of the 
14 Internal Revenue Code, 26 U.S.C.
267, the gross

15 receipts attributable to that item shall be excluded 
16 from both the numerator
and the denominator of the 
17 sales factor.


18  (B-2) Gross receipts from the license, sale, or other 
19 disposition of
patents, copyrights, trademarks, and 
20 similar items of intangible personal
property, other than 
21 gross receipts governed by paragraph (B-7) of this item 
22 (3), may be included in the numerator or denominator of the 
23 sales factor
only if gross receipts from licenses, sales, 
24 or other disposition of such items
comprise more than 50% 
25 of the taxpayer's total gross receipts included in gross

26 income during the tax year and during each of the 2 
 
 
09800SB1739sam001- 184 -LRB098 10559 AMC 42403 a


1 immediately preceding tax
years; provided that, when a 
2 taxpayer is a member of a unitary business group,
such 
3 determination shall be made on the basis of the gross 
4 receipts of the
entire unitary business group.

5  (B-5) For taxable years ending on or after December 31, 
6 2008, except as provided in subsections (ii) through (vii), 
7 receipts from the sale of telecommunications service or 
8 mobile telecommunications service are in this State if the 
9 customer's service address is in this State.
10   (i) For purposes of this subparagraph (B-5), the 
11 following terms have the following meanings:
12   "Ancillary services" means services that are 
13 associated with or incidental to the provision of 
14 "telecommunications services", including but not 
15 limited to "detailed telecommunications billing", 
16 "directory assistance", "vertical service", and "voice 
17 mail services".
18   "Air-to-Ground Radiotelephone service" means a 
19 radio service, as that term is defined in 47 CFR 22.99, 
20 in which common carriers are authorized to offer and 
21 provide radio telecommunications service for hire to 
22 subscribers in aircraft.
23   "Call-by-call Basis" means any method of charging 
24 for telecommunications services where the price is 
25 measured by individual calls.
26   "Communications Channel" means a physical or 
 
 
09800SB1739sam001- 185 -LRB098 10559 AMC 42403 a


1 virtual path of communications over which signals are 
2 transmitted between or among customer channel 
3 termination points.
4   "Conference bridging service" means an "ancillary 
5 service" that links two or more participants of an 
6 audio or video conference call and may include the 
7 provision of a telephone number. "Conference bridging 
8 service" does not include the "telecommunications 
9 services" used to reach the conference bridge.
10   "Customer Channel Termination Point" means the 
11 location where the customer either inputs or receives 
12 the communications.
13   "Detailed telecommunications billing service" 
14 means an "ancillary service" of separately stating 
15 information pertaining to individual calls on a 
16 customer's billing statement.
17   "Directory assistance" means an "ancillary 
18 service" of providing telephone number information, 
19 and/or address information.
20   "Home service provider" means the facilities based 
21 carrier or reseller with which the customer contracts 
22 for the provision of mobile telecommunications 
23 services.
24   "Mobile telecommunications service" means 
25 commercial mobile radio service, as defined in Section 
26 20.3 of Title 47 of the Code of Federal Regulations as 
 
 
09800SB1739sam001- 186 -LRB098 10559 AMC 42403 a


1 in effect on June 1, 1999.
2   "Place of primary use" means the street address 
3 representative of where the customer's use of the 
4 telecommunications service primarily occurs, which 
5 must be the residential street address or the primary 
6 business street address of the customer. In the case of 
7 mobile telecommunications services, "place of primary 
8 use" must be within the licensed service area of the 
9 home service provider.
10   "Post-paid telecommunication service" means the 
11 telecommunications service obtained by making a 
12 payment on a call-by-call basis either through the use 
13 of a credit card or payment mechanism such as a bank 
14 card, travel card, credit card, or debit card, or by 
15 charge made to a telephone number which is not 
16 associated with the origination or termination of the 
17 telecommunications service. A post-paid calling 
18 service includes telecommunications service, except a 
19 prepaid wireless calling service, that would be a 
20 prepaid calling service except it is not exclusively a 
21 telecommunication service.
22   "Prepaid telecommunication service" means the 
23 right to access exclusively telecommunications 
24 services, which must be paid for in advance and which 
25 enables the origination of calls using an access number 
26 or authorization code, whether manually or 
 
 
09800SB1739sam001- 187 -LRB098 10559 AMC 42403 a


1 electronically dialed, and that is sold in 
2 predetermined units or dollars of which the number 
3 declines with use in a known amount.
4   "Prepaid Mobile telecommunication service" means a 
5 telecommunications service that provides the right to 
6 utilize mobile wireless service as well as other 
7 non-telecommunication services, including but not 
8 limited to ancillary services, which must be paid for 
9 in advance that is sold in predetermined units or 
10 dollars of which the number declines with use in a 
11 known amount.
12   "Private communication service" means a 
13 telecommunication service that entitles the customer 
14 to exclusive or priority use of a communications 
15 channel or group of channels between or among 
16 termination points, regardless of the manner in which 
17 such channel or channels are connected, and includes 
18 switching capacity, extension lines, stations, and any 
19 other associated services that are provided in 
20 connection with the use of such channel or channels.
21   "Service address" means:
22    (a) The location of the telecommunications 
23 equipment to which a customer's call is charged and 
24 from which the call originates or terminates, 
25 regardless of where the call is billed or paid;
26    (b) If the location in line (a) is not known, 
 
 
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1 service address means the origination point of the 
2 signal of the telecommunications services first 
3 identified by either the seller's 
4 telecommunications system or in information 
5 received by the seller from its service provider 
6 where the system used to transport such signals is 
7 not that of the seller; and
8    (c) If the locations in line (a) and line (b) 
9 are not known, the service address means the 
10 location of the customer's place of primary use.
11   "Telecommunications service" means the electronic 
12 transmission, conveyance, or routing of voice, data, 
13 audio, video, or any other information or signals to a 
14 point, or between or among points. The term 
15 "telecommunications service" includes such 
16 transmission, conveyance, or routing in which computer 
17 processing applications are used to act on the form, 
18 code or protocol of the content for purposes of 
19 transmission, conveyance or routing without regard to 
20 whether such service is referred to as voice over 
21 Internet protocol services or is classified by the 
22 Federal Communications Commission as enhanced or value 
23 added. "Telecommunications service" does not include:
24    (a) Data processing and information services 
25 that allow data to be generated, acquired, stored, 
26 processed, or retrieved and delivered by an 
 
 
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1 electronic transmission to a purchaser when such 
2 purchaser's primary purpose for the underlying 
3 transaction is the processed data or information;
4    (b) Installation or maintenance of wiring or 
5 equipment on a customer's premises;
6    (c) Tangible personal property;
7    (d) Advertising, including but not limited to 
8 directory advertising.
9    (e) Billing and collection services provided 
10 to third parties;
11    (f) Internet access service;
12    (g) Radio and television audio and video 
13 programming services, regardless of the medium, 
14 including the furnishing of transmission, 
15 conveyance and routing of such services by the 
16 programming service provider. Radio and television 
17 audio and video programming services shall include 
18 but not be limited to cable service as defined in 
19 47 USC 522(6) and audio and video programming 
20 services delivered by commercial mobile radio 
21 service providers, as defined in 47 CFR 20.3;
22    (h) "Ancillary services"; or
23    (i) Digital products "delivered 
24 electronically", including but not limited to 
25 software, music, video, reading materials or ring 
26 tones.
 
 
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1   "Vertical service" means an "ancillary service" 
2 that is offered in connection with one or more 
3 "telecommunications services", which offers advanced 
4 calling features that allow customers to identify 
5 callers and to manage multiple calls and call 
6 connections, including "conference bridging services".
7   "Voice mail service" means an "ancillary service" 
8 that enables the customer to store, send or receive 
9 recorded messages. "Voice mail service" does not 
10 include any "vertical services" that the customer may 
11 be required to have in order to utilize the "voice mail 
12 service".
13   (ii) Receipts from the sale of telecommunications 
14 service sold on an individual call-by-call basis are in 
15 this State if either of the following applies:
16    (a) The call both originates and terminates in 
17 this State.
18    (b) The call either originates or terminates 
19 in this State and the service address is located in 
20 this State.
21   (iii) Receipts from the sale of postpaid 
22 telecommunications service at retail are in this State 
23 if the origination point of the telecommunication 
24 signal, as first identified by the service provider's 
25 telecommunication system or as identified by 
26 information received by the seller from its service 
 
 
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1 provider if the system used to transport 
2 telecommunication signals is not the seller's, is 
3 located in this State.
4   (iv) Receipts from the sale of prepaid 
5 telecommunications service or prepaid mobile 
6 telecommunications service at retail are in this State 
7 if the purchaser obtains the prepaid card or similar 
8 means of conveyance at a location in this State. 
9 Receipts from recharging a prepaid telecommunications 
10 service or mobile telecommunications service is in 
11 this State if the purchaser's billing information 
12 indicates a location in this State.
13   (v) Receipts from the sale of private 
14 communication services are in this State as follows:
15    (a) 100% of receipts from charges imposed at 
16 each channel termination point in this State.
17    (b) 100% of receipts from charges for the total 
18 channel mileage between each channel termination 
19 point in this State.
20    (c) 50% of the total receipts from charges for 
21 service segments when those segments are between 2 
22 customer channel termination points, 1 of which is 
23 located in this State and the other is located 
24 outside of this State, which segments are 
25 separately charged.
26    (d) The receipts from charges for service 
 
 
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1 segments with a channel termination point located 
2 in this State and in two or more other states, and 
3 which segments are not separately billed, are in 
4 this State based on a percentage determined by 
5 dividing the number of customer channel 
6 termination points in this State by the total 
7 number of customer channel termination points.
8   (vi) Receipts from charges for ancillary services 
9 for telecommunications service sold to customers at 
10 retail are in this State if the customer's primary 
11 place of use of telecommunications services associated 
12 with those ancillary services is in this State. If the 
13 seller of those ancillary services cannot determine 
14 where the associated telecommunications are located, 
15 then the ancillary services shall be based on the 
16 location of the purchaser. 
17   (vii) Receipts to access a carrier's network or 
18 from the sale of telecommunication services or 
19 ancillary services for resale are in this State as 
20 follows:
21    (a) 100% of the receipts from access fees 
22 attributable to intrastate telecommunications 
23 service that both originates and terminates in 
24 this State.
25    (b) 50% of the receipts from access fees 
26 attributable to interstate telecommunications 
 
 
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1 service if the interstate call either originates 
2 or terminates in this State.
3    (c) 100% of the receipts from interstate end 
4 user access line charges, if the customer's 
5 service address is in this State. As used in this 
6 subdivision, "interstate end user access line 
7 charges" includes, but is not limited to, the 
8 surcharge approved by the federal communications 
9 commission and levied pursuant to 47 CFR 69.
10    (d) Gross receipts from sales of 
11 telecommunication services or from ancillary 
12 services for telecommunications services sold to 
13 other telecommunication service providers for 
14 resale shall be sourced to this State using the 
15 apportionment concepts used for non-resale 
16 receipts of telecommunications services if the 
17 information is readily available to make that 
18 determination. If the information is not readily 
19 available, then the taxpayer may use any other 
20 reasonable and consistent method. 
21  (B-7) For taxable years ending on or after December 31, 
22 2008, receipts from the sale of broadcasting services are 
23 in this State if the broadcasting services are received in 
24 this State. For purposes of this paragraph (B-7), the 
25 following terms have the following meanings:
26   "Advertising revenue" means consideration received 
 
 
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1 by the taxpayer in exchange for broadcasting services 
2 or allowing the broadcasting of commercials or 
3 announcements in connection with the broadcasting of 
4 film or radio programming, from sponsorships of the 
5 programming, or from product placements in the 
6 programming.
7   "Audience factor" means the ratio that the 
8 audience or subscribers located in this State of a 
9 station, a network, or a cable system bears to the 
10 total audience or total subscribers for that station, 
11 network, or cable system. The audience factor for film 
12 or radio programming shall be determined by reference 
13 to the books and records of the taxpayer or by 
14 reference to published rating statistics provided the 
15 method used by the taxpayer is consistently used from 
16 year to year for this purpose and fairly represents the 
17 taxpayer's activity in this State.
18   "Broadcast" or "broadcasting" or "broadcasting 
19 services" means the transmission or provision of film 
20 or radio programming, whether through the public 
21 airwaves, by cable, by direct or indirect satellite 
22 transmission, or by any other means of communication, 
23 either through a station, a network, or a cable system.
24   "Film" or "film programming" means the broadcast 
25 on television of any and all performances, events, or 
26 productions, including but not limited to news, 
 
 
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1 sporting events, plays, stories, or other literary, 
2 commercial, educational, or artistic works, either 
3 live or through the use of video tape, disc, or any 
4 other type of format or medium. Each episode of a 
5 series of films produced for television shall 
6 constitute separate "film" notwithstanding that the 
7 series relates to the same principal subject and is 
8 produced during one or more tax periods.
9   "Radio" or "radio programming" means the broadcast 
10 on radio of any and all performances, events, or 
11 productions, including but not limited to news, 
12 sporting events, plays, stories, or other literary, 
13 commercial, educational, or artistic works, either 
14 live or through the use of an audio tape, disc, or any 
15 other format or medium. Each episode in a series of 
16 radio programming produced for radio broadcast shall 
17 constitute a separate "radio programming" 
18 notwithstanding that the series relates to the same 
19 principal subject and is produced during one or more 
20 tax periods.
21    (i) In the case of advertising revenue from 
22 broadcasting, the customer is the advertiser and 
23 the service is received in this State if the 
24 commercial domicile of the advertiser is in this 
25 State.
26    (ii) In the case where film or radio 
 
 
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1 programming is broadcast by a station, a network, 
2 or a cable system for a fee or other remuneration 
3 received from the recipient of the broadcast, the 
4 portion of the service that is received in this 
5 State is measured by the portion of the recipients 
6 of the broadcast located in this State. 
7 Accordingly, the fee or other remuneration for 
8 such service that is included in the Illinois 
9 numerator of the sales factor is the total of those 
10 fees or other remuneration received from 
11 recipients in Illinois. For purposes of this 
12 paragraph, a taxpayer may determine the location 
13 of the recipients of its broadcast using the 
14 address of the recipient shown in its contracts 
15 with the recipient or using the billing address of 
16 the recipient in the taxpayer's records.
17    (iii) In the case where film or radio 
18 programming is broadcast by a station, a network, 
19 or a cable system for a fee or other remuneration 
20 from the person providing the programming, the 
21 portion of the broadcast service that is received 
22 by such station, network, or cable system in this 
23 State is measured by the portion of recipients of 
24 the broadcast located in this State. Accordingly, 
25 the amount of revenue related to such an 
26 arrangement that is included in the Illinois 
 
 
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1 numerator of the sales factor is the total fee or 
2 other total remuneration from the person providing 
3 the programming related to that broadcast 
4 multiplied by the Illinois audience factor for 
5 that broadcast.
6    (iv) In the case where film or radio 
7 programming is provided by a taxpayer that is a 
8 network or station to a customer for broadcast in 
9 exchange for a fee or other remuneration from that 
10 customer the broadcasting service is received at 
11 the location of the office of the customer from 
12 which the services were ordered in the regular 
13 course of the customer's trade or business. 
14 Accordingly, in such a case the revenue derived by 
15 the taxpayer that is included in the taxpayer's 
16 Illinois numerator of the sales factor is the 
17 revenue from such customers who receive the 
18 broadcasting service in Illinois.
19    (v) In the case where film or radio programming 
20 is provided by a taxpayer that is not a network or 
21 station to another person for broadcasting in 
22 exchange for a fee or other remuneration from that 
23 person, the broadcasting service is received at 
24 the location of the office of the customer from 
25 which the services were ordered in the regular 
26 course of the customer's trade or business. 
 
 
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1 Accordingly, in such a case the revenue derived by 
2 the taxpayer that is included in the taxpayer's 
3 Illinois numerator of the sales factor is the 
4 revenue from such customers who receive the 
5 broadcasting service in Illinois.
6  (B-8) For taxable years ending on or after December 31, 
7 2013, gross receipts from winnings from pari-mutuel 
8 wagering conducted at a wagering facility licensed under 
9 the Illinois Horse Racing Act of 1975 or from winnings from 
10 gambling games conducted on a riverboat or in a casino or 
11 electronic gaming facility licensed under the Illinois 
12 Gambling Act are in this State. 

13  (C) For taxable years ending before December 31, 2008, 
14 sales, other than sales governed by paragraphs (B), (B-1), 
15 and (B-2), are in
this State if:


16   (i) The income-producing activity is performed in 
17 this State; or


18   (ii) The income-producing activity is performed 
19 both within and
without this State and a greater 
20 proportion of the income-producing
activity is 
21 performed within this State than without this State, 
22 based
on performance costs.

23  (C-5) For taxable years ending on or after December 31, 
24 2008, sales, other than sales governed by paragraphs (B), 
25 (B-1), (B-2), (B-5), and (B-7), are in this State if any of 
26 the following criteria are met:
 
 
09800SB1739sam001- 199 -LRB098 10559 AMC 42403 a


1   (i) Sales from the sale or lease of real property 
2 are in this State if the property is located in this 
3 State.
4   (ii) Sales from the lease or rental of tangible 
5 personal property are in this State if the property is 
6 located in this State during the rental period. Sales 
7 from the lease or rental of tangible personal property 
8 that is characteristically moving property, including, 
9 but not limited to, motor vehicles, rolling stock, 
10 aircraft, vessels, or mobile equipment are in this 
11 State to the extent that the property is used in this 
12 State.
13   (iii) In the case of interest, net gains (but not 
14 less than zero) and other items of income from 
15 intangible personal property, the sale is in this State 
16 if:
17    (a) in the case of a taxpayer who is a dealer 
18 in the item of intangible personal property within 
19 the meaning of Section 475 of the Internal Revenue 
20 Code, the income or gain is received from a 
21 customer in this State. For purposes of this 
22 subparagraph, a customer is in this State if the 
23 customer is an individual, trust or estate who is a 
24 resident of this State and, for all other 
25 customers, if the customer's commercial domicile 
26 is in this State. Unless the dealer has actual 
 
 
09800SB1739sam001- 200 -LRB098 10559 AMC 42403 a


1 knowledge of the residence or commercial domicile 
2 of a customer during a taxable year, the customer 
3 shall be deemed to be a customer in this State if 
4 the billing address of the customer, as shown in 
5 the records of the dealer, is in this State; or
6    (b) in all other cases, if the 
7 income-producing activity of the taxpayer is 
8 performed in this State or, if the 
9 income-producing activity of the taxpayer is 
10 performed both within and without this State, if a 
11 greater proportion of the income-producing 
12 activity of the taxpayer is performed within this 
13 State than in any other state, based on performance 
14 costs.
15   (iv) Sales of services are in this State if the 
16 services are received in this State. For the purposes 
17 of this section, gross receipts from the performance of 
18 services provided to a corporation, partnership, or 
19 trust may only be attributed to a state where that 
20 corporation, partnership, or trust has a fixed place of 
21 business. If the state where the services are received 
22 is not readily determinable or is a state where the 
23 corporation, partnership, or trust receiving the 
24 service does not have a fixed place of business, the 
25 services shall be deemed to be received at the location 
26 of the office of the customer from which the services 
 
 
09800SB1739sam001- 201 -LRB098 10559 AMC 42403 a


1 were ordered in the regular course of the customer's 
2 trade or business. If the ordering office cannot be 
3 determined, the services shall be deemed to be received 
4 at the office of the customer to which the services are 
5 billed. If the taxpayer is not taxable in the state in 
6 which the services are received, the sale must be 
7 excluded from both the numerator and the denominator of 
8 the sales factor. The Department shall adopt rules 
9 prescribing where specific types of service are 
10 received, including, but not limited to, publishing, 
11 and utility service.


12  (D) For taxable years ending on or after December 31, 
13 1995, the following
items of income shall not be included 
14 in the numerator or denominator of the
sales factor: 
15 dividends; amounts included under Section 78 of the 
16 Internal
Revenue Code; and Subpart F income as defined in 
17 Section 952 of the Internal
Revenue Code.
No inference 
18 shall be drawn from the enactment of this paragraph (D) in

19 construing this Section for taxable years ending before 
20 December 31, 1995.


21  (E) Paragraphs (B-1) and (B-2) shall apply to tax years 
22 ending on or
after December 31, 1999, provided that a 
23 taxpayer may elect to apply the
provisions of these 
24 paragraphs to prior tax years. Such election shall be made

25 in the form and manner prescribed by the Department, shall 
26 be irrevocable, and
shall apply to all tax years; provided 
 
 
09800SB1739sam001- 202 -LRB098 10559 AMC 42403 a


1 that, if a taxpayer's Illinois income
tax liability for any 
2 tax year, as assessed under Section 903 prior to January
1, 
3 1999, was computed in a manner contrary to the provisions 
4 of paragraphs
(B-1) or (B-2), no refund shall be payable to 
5 the taxpayer for that tax year to
the extent such refund is 
6 the result of applying the provisions of paragraph
(B-1) or 
7 (B-2) retroactively. In the case of a unitary business 
8 group, such
election shall apply to all members of such 
9 group for every tax year such group
is in existence, but 
10 shall not apply to any taxpayer for any period during
which 
11 that taxpayer is not a member of such group.

12 (b) Insurance companies.


13  (1) In general. Except as otherwise
provided by 
14 paragraph (2), business income of an insurance company for 
15 a
taxable year shall be apportioned to this State by 
16 multiplying such
income by a fraction, the numerator of 
17 which is the direct premiums
written for insurance upon 
18 property or risk in this State, and the
denominator of 
19 which is the direct premiums written for insurance upon

20 property or risk everywhere. For purposes of this 
21 subsection, the term
"direct premiums written" means the 
22 total amount of direct premiums
written, assessments and 
23 annuity considerations as reported for the
taxable year on 
24 the annual statement filed by the company with the
Illinois 
25 Director of Insurance in the form approved by the National

26 Convention of Insurance Commissioners
or such other form as 
 
 
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1 may be
prescribed in lieu thereof.


2  (2) Reinsurance. If the principal source of premiums 
3 written by an
insurance company consists of premiums for 
4 reinsurance accepted by it,
the business income of such 
5 company shall be apportioned to this State
by multiplying 
6 such income by a fraction, the numerator of which is the

7 sum of (i) direct premiums written for insurance upon 
8 property or risk
in this State, plus (ii) premiums written 
9 for reinsurance accepted in
respect of property or risk in 
10 this State, and the denominator of which
is the sum of 
11 (iii) direct premiums written for insurance upon property

12 or risk everywhere, plus (iv) premiums written for 
13 reinsurance accepted
in respect of property or risk 
14 everywhere. For purposes of this
paragraph, premiums 
15 written for reinsurance accepted in respect of
property or 
16 risk in this State, whether or not otherwise determinable,

17 may, at the election of the company, be determined on the 
18 basis of the
proportion which premiums written for 
19 reinsurance accepted from
companies commercially domiciled 
20 in Illinois bears to premiums written
for reinsurance 
21 accepted from all sources, or, alternatively, in the

22 proportion which the sum of the direct premiums written for 
23 insurance
upon property or risk in this State by each 
24 ceding company from which
reinsurance is accepted bears to 
25 the sum of the total direct premiums
written by each such 
26 ceding company for the taxable year. The election made by a 
 
 
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1 company under this paragraph for its first taxable year 
2 ending on or after December 31, 2011, shall be binding for 
3 that company for that taxable year and for all subsequent 
4 taxable years, and may be altered only with the written 
5 permission of the Department, which shall not be 
6 unreasonably withheld.

7 (c) Financial organizations.


8  (1) In general. For taxable years ending before 
9 December 31, 2008, business income of a financial

10 organization shall be apportioned to this State by 
11 multiplying such
income by a fraction, the numerator of 
12 which is its business income from
sources within this 
13 State, and the denominator of which is its business
income 
14 from all sources. For the purposes of this subsection, the

15 business income of a financial organization from sources 
16 within this
State is the sum of the amounts referred to in 
17 subparagraphs (A) through
(E) following, but excluding the 
18 adjusted income of an international banking
facility as 
19 determined in paragraph (2):


20   (A) Fees, commissions or other compensation for 
21 financial services
rendered within this State;


22   (B) Gross profits from trading in stocks, bonds or 
23 other securities
managed within this State;


24   (C) Dividends, and interest from Illinois 
25 customers, which are received
within this State;


26   (D) Interest charged to customers at places of 
 
 
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1 business maintained
within this State for carrying 
2 debit balances of margin accounts,
without deduction 
3 of any costs incurred in carrying such accounts; and


4   (E) Any other gross income resulting from the 
5 operation as a
financial organization within this 
6 State. In computing the amounts
referred to in 
7 paragraphs (A) through (E) of this subsection, any 
8 amount
received by a member of an affiliated group 
9 (determined under Section
1504(a) of the Internal 
10 Revenue Code but without reference to whether
any such 
11 corporation is an "includible corporation" under 
12 Section
1504(b) of the Internal Revenue Code) from 
13 another member of such group
shall be included only to 
14 the extent such amount exceeds expenses of the

15 recipient directly related thereto.


16  (2) International Banking Facility. For taxable years 
17 ending before December 31, 2008:


18   (A) Adjusted Income. The adjusted income of an 
19 international banking
facility is its income reduced 
20 by the amount of the floor amount.


21   (B) Floor Amount. The floor amount shall be the 
22 amount, if any,
determined
by multiplying the income of 
23 the international banking facility by a fraction,
not 
24 greater than one, which is determined as follows:


25    (i) The numerator shall be:


26    The average aggregate, determined on a 
 
 
09800SB1739sam001- 206 -LRB098 10559 AMC 42403 a


1 quarterly basis, of the
financial
organization's 
2 loans to banks in foreign countries, to foreign 
3 domiciled
borrowers (except where secured 
4 primarily by real estate) and to foreign

5 governments and other foreign official 
6 institutions, as reported for its
branches, 
7 agencies and offices within the state on its 
8 "Consolidated Report
of Condition", Schedule A, 
9 Lines 2.c., 5.b., and 7.a., which was filed with

10 the Federal Deposit Insurance Corporation and 
11 other regulatory authorities,
for the year 1980, 
12 minus


13    The average aggregate, determined on a 
14 quarterly basis, of such loans
(other
than loans of 
15 an international banking facility), as reported by 
16 the financial
institution for its branches, 
17 agencies and offices within the state, on
the 
18 corresponding Schedule and lines of the 
19 Consolidated Report of Condition
for the current 
20 taxable year, provided, however, that in no case 
21 shall the
amount determined in this clause (the 
22 subtrahend) exceed the amount determined
in the 
23 preceding clause (the minuend); and


24    (ii) the denominator shall be the average 
25 aggregate, determined on a
quarterly basis, of the 
26 international banking facility's loans to banks in

 
 
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1 foreign countries, to foreign domiciled borrowers 
2 (except where secured
primarily by real estate) 
3 and to foreign governments and other foreign

4 official institutions, which were recorded in its 
5 financial accounts for
the current taxable year.


6   (C) Change to Consolidated Report of Condition and 
7 in Qualification.
In the event the Consolidated Report 
8 of Condition which is filed with the
Federal Deposit 
9 Insurance Corporation and other regulatory authorities 
10 is
altered so that the information required for 
11 determining the floor amount
is not found on Schedule 
12 A, lines 2.c., 5.b. and 7.a., the financial
institution 
13 shall notify the Department and the Department may, by

14 regulations or otherwise, prescribe or authorize the 
15 use of an alternative
source for such information. The 
16 financial institution shall also notify
the Department 
17 should its international banking facility fail to 
18 qualify as
such, in whole or in part, or should there 
19 be any amendment or change to
the Consolidated Report 
20 of Condition, as originally filed, to the extent
such 
21 amendment or change alters the information used in 
22 determining the floor
amount.

23  (3) For taxable years ending on or after December 31, 
24 2008, the business income of a financial organization shall 
25 be apportioned to this State by multiplying such income by 
26 a fraction, the numerator of which is its gross receipts 
 
 
09800SB1739sam001- 208 -LRB098 10559 AMC 42403 a


1 from sources in this State or otherwise attributable to 
2 this State's marketplace and the denominator of which is 
3 its gross receipts everywhere during the taxable year. 
4 "Gross receipts" for purposes of this subparagraph (3) 
5 means gross income, including net taxable gain on 
6 disposition of assets, including securities and money 
7 market instruments, when derived from transactions and 
8 activities in the regular course of the financial 
9 organization's trade or business. The following examples 
10 are illustrative:

11   (i) Receipts from the lease or rental of real or 
12 tangible personal property are in this State if the 
13 property is located in this State during the rental 
14 period. Receipts from the lease or rental of tangible 
15 personal property that is characteristically moving 
16 property, including, but not limited to, motor 
17 vehicles, rolling stock, aircraft, vessels, or mobile 
18 equipment are from sources in this State to the extent 
19 that the property is used in this State.
20   (ii) Interest income, commissions, fees, gains on 
21 disposition, and other receipts from assets in the 
22 nature of loans that are secured primarily by real 
23 estate or tangible personal property are from sources 
24 in this State if the security is located in this State.
25   (iii) Interest income, commissions, fees, gains on 
26 disposition, and other receipts from consumer loans 
 
 
09800SB1739sam001- 209 -LRB098 10559 AMC 42403 a


1 that are not secured by real or tangible personal 
2 property are from sources in this State if the debtor 
3 is a resident of this State.
4   (iv) Interest income, commissions, fees, gains on 
5 disposition, and other receipts from commercial loans 
6 and installment obligations that are not secured by 
7 real or tangible personal property are from sources in 
8 this State if the proceeds of the loan are to be 
9 applied in this State. If it cannot be determined where 
10 the funds are to be applied, the income and receipts 
11 are from sources in this State if the office of the 
12 borrower from which the loan was negotiated in the 
13 regular course of business is located in this State. If 
14 the location of this office cannot be determined, the 
15 income and receipts shall be excluded from the 
16 numerator and denominator of the sales factor.

17   (v) Interest income, fees, gains on disposition, 
18 service charges, merchant discount income, and other 
19 receipts from credit card receivables are from sources 
20 in this State if the card charges are regularly billed 
21 to a customer in this State.
22   (vi) Receipts from the performance of services, 
23 including, but not limited to, fiduciary, advisory, 
24 and brokerage services, are in this State if the 
25 services are received in this State within the meaning 
26 of subparagraph (a)(3)(C-5)(iv) of this Section.
 
 
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1   (vii) Receipts from the issuance of travelers 
2 checks and money orders are from sources in this State 
3 if the checks and money orders are issued from a 
4 location within this State.
5   (viii) Receipts from investment assets and 
6 activities and trading assets and activities are 
7 included in the receipts factor as follows:
8    (1) Interest, dividends, net gains (but not 
9 less than zero) and other income from investment 
10 assets and activities from trading assets and 
11 activities shall be included in the receipts 
12 factor. Investment assets and activities and 
13 trading assets and activities include but are not 
14 limited to: investment securities; trading account 
15 assets; federal funds; securities purchased and 
16 sold under agreements to resell or repurchase; 
17 options; futures contracts; forward contracts; 
18 notional principal contracts such as swaps; 
19 equities; and foreign currency transactions. With 
20 respect to the investment and trading assets and 
21 activities described in subparagraphs (A) and (B) 
22 of this paragraph, the receipts factor shall 
23 include the amounts described in such 
24 subparagraphs.
25     (A) The receipts factor shall include the 
26 amount by which interest from federal funds 
 
 
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1 sold and securities purchased under resale 
2 agreements exceeds interest expense on federal 
3 funds purchased and securities sold under 
4 repurchase agreements.
5     (B) The receipts factor shall include the 
6 amount by which interest, dividends, gains and 
7 other income from trading assets and 
8 activities, including but not limited to 
9 assets and activities in the matched book, in 
10 the arbitrage book, and foreign currency 
11 transactions, exceed amounts paid in lieu of 
12 interest, amounts paid in lieu of dividends, 
13 and losses from such assets and activities.
14    (2) The numerator of the receipts factor 
15 includes interest, dividends, net gains (but not 
16 less than zero), and other income from investment 
17 assets and activities and from trading assets and 
18 activities described in paragraph (1) of this 
19 subsection that are attributable to this State.
20     (A) The amount of interest, dividends, net 
21 gains (but not less than zero), and other 
22 income from investment assets and activities 
23 in the investment account to be attributed to 
24 this State and included in the numerator is 
25 determined by multiplying all such income from 
26 such assets and activities by a fraction, the 
 
 
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1 numerator of which is the gross income from 
2 such assets and activities which are properly 
3 assigned to a fixed place of business of the 
4 taxpayer within this State and the denominator 
5 of which is the gross income from all such 
6 assets and activities.
7     (B) The amount of interest from federal 
8 funds sold and purchased and from securities 
9 purchased under resale agreements and 
10 securities sold under repurchase agreements 
11 attributable to this State and included in the 
12 numerator is determined by multiplying the 
13 amount described in subparagraph (A) of 
14 paragraph (1) of this subsection from such 
15 funds and such securities by a fraction, the 
16 numerator of which is the gross income from 
17 such funds and such securities which are 
18 properly assigned to a fixed place of business 
19 of the taxpayer within this State and the 
20 denominator of which is the gross income from 
21 all such funds and such securities.
22     (C) The amount of interest, dividends, 
23 gains, and other income from trading assets and 
24 activities, including but not limited to 
25 assets and activities in the matched book, in 
26 the arbitrage book and foreign currency 
 
 
09800SB1739sam001- 213 -LRB098 10559 AMC 42403 a


1 transactions (but excluding amounts described 
2 in subparagraphs (A) or (B) of this paragraph), 
3 attributable to this State and included in the 
4 numerator is determined by multiplying the 
5 amount described in subparagraph (B) of 
6 paragraph (1) of this subsection by a fraction, 
7 the numerator of which is the gross income from 
8 such trading assets and activities which are 
9 properly assigned to a fixed place of business 
10 of the taxpayer within this State and the 
11 denominator of which is the gross income from 
12 all such assets and activities.
13     (D) Properly assigned, for purposes of 
14 this paragraph (2) of this subsection, means 
15 the investment or trading asset or activity is 
16 assigned to the fixed place of business with 
17 which it has a preponderance of substantive 
18 contacts. An investment or trading asset or 
19 activity assigned by the taxpayer to a fixed 
20 place of business without the State shall be 
21 presumed to have been properly assigned if:
22      (i) the taxpayer has assigned, in the 
23 regular course of its business, such asset 
24 or activity on its records to a fixed place 
25 of business consistent with federal or 
26 state regulatory requirements;
 
 
09800SB1739sam001- 214 -LRB098 10559 AMC 42403 a


1      (ii) such assignment on its records is 
2 based upon substantive contacts of the 
3 asset or activity to such fixed place of 
4 business; and
5      (iii) the taxpayer uses such records 
6 reflecting assignment of such assets or 
7 activities for the filing of all state and 
8 local tax returns for which an assignment 
9 of such assets or activities to a fixed 
10 place of business is required.
11     (E) The presumption of proper assignment 
12 of an investment or trading asset or activity 
13 provided in subparagraph (D) of paragraph (2) 
14 of this subsection may be rebutted upon a 
15 showing by the Department, supported by a 
16 preponderance of the evidence, that the 
17 preponderance of substantive contacts 
18 regarding such asset or activity did not occur 
19 at the fixed place of business to which it was 
20 assigned on the taxpayer's records. If the 
21 fixed place of business that has a 
22 preponderance of substantive contacts cannot 
23 be determined for an investment or trading 
24 asset or activity to which the presumption in 
25 subparagraph (D) of paragraph (2) of this 
26 subsection does not apply or with respect to 
 
 
09800SB1739sam001- 215 -LRB098 10559 AMC 42403 a


1 which that presumption has been rebutted, that 
2 asset or activity is properly assigned to the 
3 state in which the taxpayer's commercial 
4 domicile is located. For purposes of this 
5 subparagraph (E), it shall be presumed, 
6 subject to rebuttal, that taxpayer's 
7 commercial domicile is in the state of the 
8 United States or the District of Columbia to 
9 which the greatest number of employees are 
10 regularly connected with the management of the 
11 investment or trading income or out of which 
12 they are working, irrespective of where the 
13 services of such employees are performed, as of 
14 the last day of the taxable year.

15  (4) (Blank).
16  (5) (Blank).
17 (c-1) Federally regulated exchanges. For taxable years 
18ending on or after December 31, 2012, business income of a 
19federally regulated exchange shall, at the option of the 
20federally regulated exchange, be apportioned to this State by 
21multiplying such income by a fraction, the numerator of which 
22is its business income from sources within this State, and the 
23denominator of which is its business income from all sources. 
24For purposes of this subsection, the business income within 
25this State of a federally regulated exchange is the sum of the 
26following: 
 
 
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1  (1) Receipts attributable to transactions executed on 
2 a physical trading floor if that physical trading floor is 
3 located in this State. 
4  (2) Receipts attributable to all other matching, 
5 execution, or clearing transactions, including without 
6 limitation receipts from the provision of matching, 
7 execution, or clearing services to another entity, 
8 multiplied by (i) for taxable years ending on or after 
9 December 31, 2012 but before December 31, 2013, 63.77%; and 
10 (ii) for taxable years ending on or after December 31, 
11 2013, 27.54%. 
12  (3) All other receipts not governed by subparagraphs 
13 (1) or (2) of this subsection (c-1), to the extent the 
14 receipts would be characterized as "sales in this State" 
15 under item (3) of subsection (a) of this Section. 
16 "Federally regulated exchange" means (i) a "registered 
17entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), 
18or (C), (ii) an "exchange" or "clearing agency" within the 
19meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such 
20entities regulated under any successor regulatory structure to 
21the foregoing, and (iv) all taxpayers who are members of the 
22same unitary business group as a federally regulated exchange, 
23determined without regard to the prohibition in Section 
241501(a)(27) of this Act against including in a unitary business 
25group taxpayers who are ordinarily required to apportion 
26business income under different subsections of this Section; 
 
 
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1provided that this subparagraph (iv) shall apply only if 50% or 
2more of the business receipts of the unitary business group 
3determined by application of this subparagraph (iv) for the 
4taxable year are attributable to the matching, execution, or 
5clearing of transactions conducted by an entity described in 
6subparagraph (i), (ii), or (iii) of this paragraph. 
7 In no event shall the Illinois apportionment percentage 
8computed in accordance with this subsection (c-1) for any 
9taxpayer for any tax year be less than the Illinois 
10apportionment percentage computed under this subsection (c-1) 
11for that taxpayer for the first full tax year ending on or 
12after December 31, 2013 for which this subsection (c-1) applied 
13to the taxpayer. 
14 (d) Transportation services. For taxable years ending 
15before December 31, 2008, business income derived from 
16furnishing
transportation services shall be apportioned to 
17this State in accordance
with paragraphs (1) and (2):


18  (1) Such business income (other than that derived from

19 transportation by pipeline) shall be apportioned to this 
20 State by
multiplying such income by a fraction, the 
21 numerator of which is the
revenue miles of the person in 
22 this State, and the denominator of which
is the revenue 
23 miles of the person everywhere. For purposes of this

24 paragraph, a revenue mile is the transportation of 1 
25 passenger or 1 net
ton of freight the distance of 1 mile 
26 for a consideration. Where a
person is engaged in the 
 
 
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1 transportation of both passengers and freight,
the 
2 fraction above referred to shall be determined by means of 
3 an
average of the passenger revenue mile fraction and the 
4 freight revenue
mile fraction, weighted to reflect the 
5 person's


6   (A) relative railway operating income from total 
7 passenger and total
freight service, as reported to the 
8 Interstate Commerce Commission, in
the case of 
9 transportation by railroad, and


10   (B) relative gross receipts from passenger and 
11 freight
transportation, in case of transportation 
12 other than by railroad.


13  (2) Such business income derived from transportation 
14 by pipeline
shall be apportioned to this State by 
15 multiplying such income by a
fraction, the numerator of 
16 which is the revenue miles of the person in
this State, and 
17 the denominator of which is the revenue miles of the
person 
18 everywhere. For the purposes of this paragraph, a revenue 
19 mile is
the transportation by pipeline of 1 barrel of oil, 
20 1,000 cubic feet of
gas, or of any specified quantity of 
21 any other substance, the distance
of 1 mile for a 
22 consideration.

23  (3) For taxable years ending on or after December 31, 
24 2008, business income derived from providing 
25 transportation services other than airline services shall 
26 be apportioned to this State by using a fraction, (a) the 
 
 
09800SB1739sam001- 219 -LRB098 10559 AMC 42403 a


1 numerator of which shall be (i) all receipts from any 
2 movement or shipment of people, goods, mail, oil, gas, or 
3 any other substance (other than by airline) that both 
4 originates and terminates in this State, plus (ii) that 
5 portion of the person's gross receipts from movements or 
6 shipments of people, goods, mail, oil, gas, or any other 
7 substance (other than by airline) that originates in one 
8 state or jurisdiction and terminates in another state or 
9 jurisdiction, that is determined by the ratio that the 
10 miles traveled in this State bears to total miles 
11 everywhere and (b) the denominator of which shall be all 
12 revenue derived from the movement or shipment of people, 
13 goods, mail, oil, gas, or any other substance (other than 
14 by airline). Where a taxpayer is engaged in the 
15 transportation of both passengers and freight, the 
16 fraction above referred to shall first be determined 
17 separately for passenger miles and freight miles. Then an 
18 average of the passenger miles fraction and the freight 
19 miles fraction shall be weighted to reflect the taxpayer's:
20   (A) relative railway operating income from total 
21 passenger and total freight service, as reported to the 
22 Surface Transportation Board, in the case of 
23 transportation by railroad; and

24   (B) relative gross receipts from passenger and 
25 freight transportation, in case of transportation 
26 other than by railroad.

 
 
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1  (4) For taxable years ending on or after December 31, 
2 2008, business income derived from furnishing airline

3 transportation services shall be apportioned to this State 
4 by
multiplying such income by a fraction, the numerator of 
5 which is the
revenue miles of the person in this State, and 
6 the denominator of which
is the revenue miles of the person 
7 everywhere. For purposes of this
paragraph, a revenue mile 
8 is the transportation of one passenger or one net
ton of 
9 freight the distance of one mile for a consideration. If a

10 person is engaged in the transportation of both passengers 
11 and freight,
the fraction above referred to shall be 
12 determined by means of an
average of the passenger revenue 
13 mile fraction and the freight revenue
mile fraction, 
14 weighted to reflect the person's relative gross receipts 
15 from passenger and freight
airline transportation.

16 (e) Combined apportionment. Where 2 or more persons are 
17engaged in
a unitary business as described in subsection 
18(a)(27) of
Section 1501,
a part of which is conducted in this 
19State by one or more members of the
group, the business income 
20attributable to this State by any such member
or members shall 
21be apportioned by means of the combined apportionment method.

22 (f) Alternative allocation. If the allocation and 
23apportionment
provisions of subsections (a) through (e) and of 
24subsection (h) do not
fairly represent the
extent of a person's 
25business activity in this State, the person may
petition for, 
26or the Director may, without a petition, permit or require, in 
 
 
09800SB1739sam001- 221 -LRB098 10559 AMC 42403 a


1respect of all or any part
of the person's business activity, 
2if reasonable:


3  (1) Separate accounting;


4  (2) The exclusion of any one or more factors;


5  (3) The inclusion of one or more additional factors 
6 which will
fairly represent the person's business 
7 activities in this State; or


8  (4) The employment of any other method to effectuate an 
9 equitable
allocation and apportionment of the person's 
10 business income.

11 (g) Cross reference. For allocation of business income by 
12residents,
see Section 301(a).

13 (h) For tax years ending on or after December 31, 1998, the 
14apportionment
factor of persons who apportion their business 
15income to this State under
subsection (a) shall be equal to:


16  (1) for tax years ending on or after December 31, 1998 
17 and before December
31, 1999, 16 2/3% of the property 
18 factor plus 16 2/3% of the payroll factor
plus
66 2/3% of 
19 the sales factor;


20  (2) for tax years ending on or after December 31, 1999 
21 and before December
31,
2000, 8 1/3% of the property factor 
22 plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales 
23 factor;


24  (3) for tax years ending on or after December 31, 2000, 
25 the sales factor.

26If, in any tax year ending on or after December 31, 1998 and 
 
 
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1before December
31, 2000, the denominator of the payroll, 
2property, or sales factor is zero,
the apportionment
factor 
3computed in paragraph (1) or (2) of this subsection for that 
4year shall
be divided by an amount equal to 100% minus the 
5percentage weight given to each
factor whose denominator is 
6equal to zero.

7(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11; 
897-636, eff. 6-1-12.)





9 (35 ILCS 5/710) (from Ch. 120, par. 7-710)



10 Sec. 710. Withholding from lottery winnings. 
11 (a) In General. 
12  (1) Any person
making a payment to a resident or 
13 nonresident of winnings under the Illinois
Lottery Law and 
14 not required to withhold Illinois income tax from such 
15 payment
under Subsection (b) of Section 701 of this Act 
16 because those winnings are
not subject to Federal income 
17 tax withholding, must withhold Illinois income
tax from 
18 such payment at a rate equal to the percentage tax rate for 
19 individuals
provided in subsection (b) of Section 201, 
20 provided that withholding is
not required if such payment 
21 of winnings is less than $1,000.

22  (2) Any person making a payment after December 31, 2013 
23 to a resident or nonresident of
winnings from pari-mutuel 
24 wagering conducted at a wagering facility licensed under 
25 the Illinois Horse
Racing Act of 1975 or from gambling 
 
 
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1 games conducted on a riverboat or in a casino or electronic 
2 gaming
facility licensed under the Illinois Gambling Act 
3 must withhold Illinois income tax from such payment at a

4 rate equal to the percentage tax rate for individuals 
5 provided in subsection (b) of Section 201, provided that

6 the person making the payment is required to withhold under 
7 Section 3402(q) of the Internal Revenue Code. 
8 (b) Credit for taxes withheld. Any amount withheld under 
9Subsection (a)
shall be a credit against the Illinois income 
10tax liability of the person
to whom the payment of winnings was 
11made for the taxable year in which that
person incurred an 
12Illinois income tax liability with respect to those winnings.

13(Source: P.A. 85-731.)


14 Section 90-23. The Property Tax Code is amended by adding 
15Section 15-144 as follows:

16 (35 ILCS 200/15-144 new)
17 Sec. 15-144. Chicago Casino Development Authority. All 
18property owned by the Chicago Casino Development Authority is 
19exempt. Any property owned by the Chicago Casino Development 
20Authority and leased to any other entity is not exempt.

21 Section 90-24. The Illinois Municipal Code is amended by 
22adding Section 8-10-2.6 as follows:

 
 
09800SB1739sam001- 224 -LRB098 10559 AMC 42403 a


1 (65 ILCS 5/8-10-2.6 new)
2 Sec. 8-10-2.6. Chicago Casino Development Authority. 
3Except as otherwise provided in the Chicago Casino Development 
4Authority Act, this Division 10 applies to purchase orders and 
5contracts relating to the Chicago Casino Development 
6Authority.

7 Section 90-25. The Joliet Regional Port District Act is 
8amended by changing Section 5.1 as follows:




9 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)



10 Sec. 5.1. Riverboat and casino gambling. Notwithstanding 
11any other provision of
this Act, the District may not regulate 
12the operation, conduct, or
navigation of any riverboat gambling 
13casino licensed under the Illinois Riverboat
Gambling Act, and 
14the District
may not license, tax, or otherwise levy any 
15assessment of any kind on
any riverboat gambling casino 
16licensed under the Illinois Riverboat Gambling Act. The
General 
17Assembly declares that the powers to regulate the operation,

18conduct, and navigation of riverboat gambling casinos and to 
19license, tax,
and levy assessments upon riverboat gambling 
20casinos are exclusive powers of
the State of Illinois and the 
21Illinois Gaming Board as provided in the
Illinois Riverboat 
22Gambling Act.

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


 
 
09800SB1739sam001- 225 -LRB098 10559 AMC 42403 a


1 Section 90-30. The Consumer Installment Loan Act is amended 
2by changing Section 12.5 as follows:




3 (205 ILCS 670/12.5)



4 Sec. 12.5. Limited purpose branch. 

5 (a) Upon the written approval of the Director, a licensee 
6may maintain a
limited purpose branch for the sole purpose of 
7making loans as permitted by
this Act. A limited purpose branch 
8may include an automatic loan machine. No
other activity shall 
9be conducted at the site, including but not limited to,

10accepting payments, servicing the accounts, or collections.

11 (b) The licensee must submit an application for a limited 
12purpose branch to
the Director on forms prescribed by the 
13Director with an application fee of
$300. The approval for the 
14limited purpose branch must be renewed concurrently
with the 
15renewal of the licensee's license along with a renewal fee of 
16$300 for
the limited purpose branch.

17 (c) The books, accounts, records, and files of the limited 
18purpose branch's
transactions shall be maintained at the 
19licensee's licensed location. The
licensee shall notify the 
20Director of the licensed location at which the books,
accounts, 
21records, and files shall be maintained.

22 (d) The licensee shall prominently display at the limited 
23purpose branch the
address and telephone number of the 
24licensee's licensed location.

25 (e) No other business shall be conducted at the site of the 
 
 
09800SB1739sam001- 226 -LRB098 10559 AMC 42403 a


1limited purpose
branch unless authorized by the Director.

2 (f) The Director shall make and enforce reasonable rules 
3for the conduct of
a limited purpose branch.

4 (g) A limited purpose branch may not be located
within 
51,000 feet of a facility operated by an inter-track wagering 
6licensee or
an organization licensee subject to the Illinois 
7Horse Racing Act of 1975,
on a riverboat or in a casino subject 
8to
the Illinois Riverboat Gambling Act, or within 1,000 feet of 
9the location at which the
riverboat docks or within 1,000 feet 
10of a casino.

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


12 Section 90-35. The Illinois Horse Racing Act of 1975 is 
13amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19, 
1420, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and 
1554.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36, 
163.37, 34.3, 39.2, and 56 as follows:




17 (230 ILCS 5/1.2)



18 Sec. 1.2. Legislative intent. This Act is intended to 
19benefit the people of the State of Illinois by
encouraging the 
20breeding and production of race horses, assisting economic

21development and promoting Illinois tourism.
The General 
22Assembly finds and declares it to be the public policy
of the 
23State
of Illinois to:

24 (a) support and enhance Illinois' horse racing industry, 
 
 
09800SB1739sam001- 227 -LRB098 10559 AMC 42403 a


1which is a
significant
component within the agribusiness 
2industry;

3 (b) ensure that Illinois' horse racing industry remains 
4competitive with
neighboring states;

5 (c) stimulate growth within Illinois' horse racing 
6industry, thereby
encouraging
new investment and development 
7to produce additional tax revenues and to
create additional 
8jobs;

9 (d) promote the further growth of tourism;

10 (e) encourage the breeding of thoroughbred and 
11standardbred horses in this
State; and

12 (f) ensure that public confidence and trust in the 
13credibility and integrity
of
racing operations and the 
14regulatory process is maintained.

15(Source: P.A. 91-40, eff. 6-25-99.)





16 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)



17 Sec. 3.11. 
"Organization Licensee" means any person 
18receiving
an organization license from the Board to conduct a 
19race meeting or meetings. With respect only to electronic 
20gaming, "organization licensee" includes the authorization for 
21an electronic gaming license under subsection (a) of Section 56 
22of this Act. 

23(Source: P.A. 79-1185.)





24 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)


 
 
09800SB1739sam001- 228 -LRB098 10559 AMC 42403 a


1 Sec. 3.12. Pari-mutuel system of
wagering.
"Pari-mutuel 
2system of
wagering" means a form of wagering on the outcome of

3horse races in which
wagers are made in various
denominations 
4on a horse or horses
and
all wagers for each race are pooled 
5and held by a licensee
for distribution in a manner approved by 
6the Board. "Pari-mutuel system of wagering" shall not include 
7wagering on historic races. Wagers may be placed via any method 
8or at any location authorized under this Act.

9(Source: P.A. 96-762, eff. 8-25-09.)


10 (230 ILCS 5/3.31 new)
11 Sec. 3.31. Adjusted gross receipts. "Adjusted gross 
12receipts" means the gross receipts less winnings paid to 
13wagerers.

14 (230 ILCS 5/3.32 new)
15 Sec. 3.32. Gross receipts. "Gross receipts" means the total 
16amount of money exchanged for the purchase of chips, tokens, or 
17electronic cards by riverboat or casino patrons or electronic 
18gaming patrons.

19 (230 ILCS 5/3.33 new)
20 Sec. 3.33. Electronic gaming. "Electronic gaming" means 
21slot machine gambling, video game of chance gambling, or 
22gambling with electronic gambling games as defined in the 
23Illinois Gambling Act or defined by the Illinois Gaming Board 
 
 
09800SB1739sam001- 229 -LRB098 10559 AMC 42403 a


1that is conducted at a race track pursuant to an electronic 
2gaming license.

3 (230 ILCS 5/3.35 new)
4 Sec. 3.35. Electronic gaming license.  "Electronic gaming 
5license" means a license issued by the Illinois Gaming Board 
6under Section 7.6 of the Illinois Gambling Act authorizing 
7electronic gaming at an electronic gaming facility.

8 (230 ILCS 5/3.36 new)
9 Sec. 3.36. Electronic gaming facility. "Electronic gaming 
10facility" means that portion of an organization licensee's race 
11track facility at which electronic gaming is conducted.

12 (230 ILCS 5/3.37 new)
13 Sec. 3.37. Purse. "Purse" means the amount of money won by 
14the owner of any competitor in a race. For purposes of 
15calculating owners' awards and breeders' awards pursuant to 
16Sections 30, 30.5, and 31 of this Act, "purse" shall only 
17include the amount paid from the purse account of the 
18organization licensee, and does not include (i) any fees paid 
19by the owners of the horses nominated to, entered in, or 
20starting in a horse race meeting and any money added by the 
21organization licensee, and (ii) any purse supplements, stakes 
22and awards, and awards expended from the Illinois Thoroughbred 
23Breeders Fund, the Illinois Quarter Horse Breeders Fund, and 
 
 
09800SB1739sam001- 230 -LRB098 10559 AMC 42403 a


1the Illinois Standardbred Breeders Fund.




2 (230 ILCS 5/6) (from Ch. 8, par. 37-6)


3 Sec. 6. Restrictions on Board members.  
4 (a) No person shall be appointed a member of the Board or 
5continue to be a member of the Board if the person or any 
6member of their immediate family is a member of the Board of 
7Directors, employee, or financially interested in any of the 
8following: (i) any licensee or other person who has applied for 
9racing dates to the Board, or the operations thereof including, 
10but not limited to, concessions, data processing, track 
11maintenance, track security, and pari-mutuel operations, 
12located, scheduled or doing business within the State of 
13Illinois, (ii) any race horse competing at a meeting under the 
14Board's jurisdiction, or (iii) any licensee under the Illinois 
15Gambling Act. No person shall be appointed a member of the 
16Board or continue
to be
a member of the Board who is (or any 
17member of whose family is) a member of the
Board of Directors 
18of, or who is a person financially interested in, any
licensee 
19or other person who has applied for racing dates to the
Board, 
20or the operations thereof including, but not
limited to, 
21concessions, data
processing, track maintenance, track 
22security and pari-mutuel operations,
located, scheduled
or 
23doing business within the State of Illinois, or in any race 
24horse competing
at a meeting
under the Board's jurisdiction. No 
25Board member shall hold any other public
office for which he

 
 
09800SB1739sam001- 231 -LRB098 10559 AMC 42403 a


1shall receive compensation other than necessary travel or other 
2incidental
expenses. 

3 (b) No person shall be a member of the Board who is not of 
4good moral
character or who
has been convicted of, or is under 
5indictment for, a felony under the laws
of Illinois or any

6other state, or the United States.

7 (c) No member of the Board or employee shall engage in any 
8political activity.
9 For the purposes of this subsection (c):
10 "Political" means any activity in support of or in 
11connection with any campaign for State or local elective office 
12or any political organization, but does not include activities 
13(i) relating to the support or opposition of any executive, 
14legislative, or administrative action (as those terms are 
15defined in Section 2 of the Lobbyist Registration Act), (ii) 
16relating to collective bargaining, or (iii) that are otherwise 
17in furtherance of the person's official State duties or 
18governmental and public service functions.
19 "Political organization" means a party, committee, 
20association, fund, or other organization (whether or not 
21incorporated) that is required to file a statement of 
22organization with the State Board of Elections or county clerk 
23under Section 9-3 of the Election Code, but only with regard to 
24those activities that require filing with the State Board of 
25Elections or county clerk. 
26 (d) Board members and employees may not engage in 
 
 
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1communications or any activity that may cause or have the 
2appearance of causing a conflict of interest. A conflict of 
3interest exists if a situation influences or creates the 
4appearance that it may influence judgment or performance of 
5regulatory duties and responsibilities. This prohibition shall 
6extend to any act identified by Board action that, in the 
7judgment of the Board, could represent the potential for or the 
8appearance of a conflict of interest.
9 (e) Board members and employees may not accept any gift, 
10gratuity, service, compensation, travel, lodging, or thing of 
11value, with the exception of unsolicited items of an incidental 
12nature, from any person, corporation, limited liability 
13company, or entity doing business with the Board.
14 (f) A Board member or employee shall not use or attempt to 
15use his or her official position to secure, or attempt to 
16secure, any privilege, advantage, favor, or influence for 
17himself or herself or others. No Board member or employee, 
18within a period of one year immediately preceding nomination by 
19the Governor or employment, shall have been employed or 
20received compensation or fees for services from a person or 
21entity, or its parent or affiliate, that has engaged in 
22business with the Board, a licensee or a licensee under the 
23Illinois Gambling Act. In addition, all Board members and 
24employees are subject to the restrictions set forth in Section 
255-45 of the State Officials and Employees Ethics Act. 
26(Source: P.A. 89-16, eff. 5-30-95.)





 
 
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1 (230 ILCS 5/9) (from Ch. 8, par. 37-9)



2 Sec. 9. 
The Board shall have all powers necessary and 
3proper to fully and
effectively execute the provisions of this 
4Act, including, but not
limited to, the following:

5 (a) The Board is vested with jurisdiction and supervision 
6over all race
meetings in this State, over all licensees doing 
7business
in this
State, over all occupation licensees, and over 
8all persons on the
facilities of any licensee. Such 
9jurisdiction shall
include the power to issue licenses to the 
10Illinois Department of
Agriculture authorizing the pari-mutuel 
11system of wagering
on harness and Quarter Horse races held (1) 
12at the Illinois State Fair in
Sangamon County, and (2) at the 
13DuQuoin State Fair in Perry County. The
jurisdiction of the 
14Board shall also include the power to issue licenses to
county 
15fairs which are eligible to receive funds pursuant to the

16Agricultural Fair Act, as now or hereafter amended, or their 
17agents,
authorizing the pari-mutuel system of wagering on horse

18races
conducted at the county fairs receiving such licenses. 
19Such licenses shall be
governed by subsection (n) of this 
20Section.

21 Upon application, the Board shall issue a license to the 
22Illinois Department
of Agriculture to conduct harness and 
23Quarter Horse races at the Illinois State
Fair and at the 
24DuQuoin State Fairgrounds
during the scheduled dates of each 
25fair. The Board shall not require and the
Department of 
 
 
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1Agriculture shall be exempt from the requirements of Sections

215.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5), 
3(e-10), (f),
(g), and (h) of Section 20, and Sections 21, 24 
4and 25. The Board and the Department
of
Agriculture may extend 
5any or all of these exemptions to any contractor or
agent 
6engaged by the Department of Agriculture to conduct its race 
7meetings
when the Board determines that this would best serve 
8the public interest and
the interest of horse racing.

9 Notwithstanding any provision of law to the contrary, it 
10shall be lawful for
any licensee to operate pari-mutuel 
11wagering
or
contract with the Department of Agriculture to 
12operate pari-mutuel wagering at
the DuQuoin State Fairgrounds 
13or for the Department to enter into contracts
with a licensee, 
14employ its owners,
employees
or
agents and employ such other 
15occupation licensees as the Department deems
necessary in 
16connection with race meetings and wagerings.

17 (b) The Board is vested with the full power to promulgate 
18reasonable
rules and regulations for the purpose of 
19administering the provisions of
this Act and to prescribe 
20reasonable rules, regulations and conditions
under which all 
21horse race meetings or wagering in the State shall be

22conducted. Such reasonable rules and regulations are to provide 
23for the
prevention of practices detrimental to the public 
24interest and to promote the best
interests of horse racing and 
25to impose penalties for violations thereof.

26 (c) The Board, and any person or persons to whom it 
 
 
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1delegates
this power, is vested with the power to enter the 
2facilities and other places of business of any licensee to 
3determine whether there has been compliance with
the provisions 
4of this Act and its rules and regulations.

5 (d) The Board, and any person or persons to whom it 
6delegates this
power, is vested with the authority to 
7investigate alleged violations of
the provisions of this Act, 
8its reasonable rules and regulations, orders
and final 
9decisions; the Board shall take appropriate disciplinary 
10action
against any licensee or occupation licensee for 
11violation
thereof or
institute appropriate legal action for the 
12enforcement thereof.

13 (e) The Board, and any person or persons to whom it 
14delegates this power,
may eject or exclude from any race 
15meeting or
the facilities of any licensee, or any part
thereof, 
16any occupation licensee or any
other individual whose conduct 
17or reputation is such that his presence on
those facilities 
18may, in the opinion of the Board, call into question
the 
19honesty and integrity of horse racing or wagering or interfere 
20with the
orderly
conduct of horse racing or wagering; provided, 
21however, that no person
shall be
excluded or ejected from the 
22facilities of any licensee solely on the grounds of
race, 
23color, creed, national origin, ancestry, or sex. The power to 
24eject
or exclude an occupation licensee or other individual may

25be exercised for just cause by the licensee or the Board, 
26subject to subsequent hearing by the
Board as to the propriety 
 
 
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1of said exclusion.

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

3establish, maintain and operate (or provide by contract to

4maintain and operate) testing laboratories and related 
5facilities,
for the purpose of conducting saliva, blood, urine 
6and other tests on the
horses run or to be run in any horse race 
7meeting, including races run at county fairs, and to purchase 
8all
equipment and supplies deemed necessary or desirable in 
9connection with
any such testing laboratories and related 
10facilities and all such tests.

11 (g) The Board may require that the records, including 
12financial or other
statements of any licensee or any person 
13affiliated with the licensee who is
involved directly or 
14indirectly in the activities of any licensee as regulated
under 
15this Act to the extent that those financial or other statements 
16relate to
such activities be kept in
such manner as prescribed 
17by the Board, and that Board employees shall have
access to 
18those records during reasonable business
hours. Within 120 days 
19of the end of its fiscal year, each licensee shall
transmit to

20the Board
an audit of the financial transactions and condition 
21of the licensee's total
operations. All audits shall be 
22conducted by certified public accountants.
Each certified 
23public accountant must be registered in the State of Illinois

24under the Illinois Public Accounting Act. The compensation for 
25each certified
public accountant shall be paid directly by the 
26licensee to the certified
public accountant. A licensee shall 
 
 
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1also submit any other financial or related
information the 
2Board deems necessary to effectively administer this Act and

3all rules, regulations, and final decisions promulgated under 
4this Act.

5 (h) The Board shall name and appoint in the manner provided 
6by the rules
and regulations of the Board: an Executive 
7Director; a State director
of mutuels; State veterinarians and 
8representatives to take saliva, blood,
urine and other tests on 
9horses; licensing personnel; revenue
inspectors; and State 
10seasonal employees (excluding admission ticket
sellers and 
11mutuel clerks). All of those named and appointed as provided
in 
12this subsection shall serve during the pleasure of the Board; 
13their
compensation shall be determined by the Board and be paid 
14in the same
manner as other employees of the Board under this 
15Act.

16 (i) The Board shall require that there shall be 3 stewards 
17at each horse
race meeting, at least 2 of whom shall be named 
18and appointed by the Board.
Stewards appointed or approved by 
19the Board, while performing duties
required by this Act or by 
20the Board, shall be entitled to the same rights
and immunities 
21as granted to Board members and Board employees in Section
10 
22of this Act.

23 (j) The Board may discharge any Board employee
who fails or 
24refuses for any reason to comply with the rules and
regulations 
25of the Board, or who, in the opinion of the Board,
is guilty of 
26fraud, dishonesty or who is proven to be incompetent.
The Board 
 
 
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1shall have no right or power to determine who shall be 
2officers,
directors or employees of any licensee, or their 
3salaries
except the Board may, by rule, require that all or any 
4officials or
employees in charge of or whose duties relate to 
5the actual running of
races be approved by the Board.

6 (k) The Board is vested with the power to appoint
delegates 
7to execute any of the powers granted to it under this Section

8for the purpose of administering this Act and any rules or 
9regulations
promulgated in accordance with this Act.

10 (l) The Board is vested with the power to impose civil 
11penalties of up to
$5,000 against an individual and up to 
12$10,000 against a
licensee for each
violation of any provision 
13of this Act, any rules adopted by the Board, any
order of the 
14Board or any other action which, in the Board's discretion, is

15a detriment or impediment to horse racing or wagering. 
16Beginning on the date when any organization licensee begins 
17conducting electronic gaming pursuant to an electronic gaming 
18license issued under the Illinois Gambling Act, the power 
19granted to the Board pursuant to this subsection (l) shall 
20authorize the Board to impose penalties of up to $10,000 
21against an individual and up to $25,000 against a licensee. All 
22such civil penalties shall be deposited into the Horse Racing 
23Fund. 

24 (m) The Board is vested with the power to prescribe a form 
25to be used
by licensees as an application for employment for 
26employees of
each licensee.

 
 
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1 (n) The Board shall have the power to issue a license
to 
2any county fair, or its
agent, authorizing the conduct of the 
3pari-mutuel system of
wagering. The Board is vested with the 
4full power to promulgate
reasonable rules, regulations and 
5conditions under which all horse race
meetings licensed 
6pursuant to this subsection shall be held and conducted,

7including rules, regulations and conditions for the conduct of 
8the
pari-mutuel system of wagering. The rules, regulations and

9conditions shall provide for the prevention of practices 
10detrimental to the
public interest and for the best interests 
11of horse racing, and shall
prescribe penalties for violations 
12thereof. Any authority granted the
Board under this Act shall 
13extend to its jurisdiction and supervision over
county fairs, 
14or their agents, licensed pursuant to this subsection.
However, 
15the Board may waive any provision of this Act or its rules or

16regulations which would otherwise apply to such county fairs or 
17their agents.

18 (o) Whenever the Board is authorized or
required by law to 
19consider some aspect of criminal history record
information for 
20the purpose of carrying out its statutory powers and

21responsibilities, then, upon request and payment of fees in 
22conformance
with the requirements of Section 2605-400 of
the 
23Department of State Police Law (20 ILCS 2605/2605-400), the 
24Department of State Police is
authorized to furnish, pursuant 
25to positive identification, such
information contained in 
26State files as is necessary to fulfill the request.

 
 
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1 (p) To insure the convenience, comfort, and wagering 
2accessibility of
race track patrons, to provide for the 
3maximization of State revenue, and
to generate increases in 
4purse allotments to the horsemen, the Board shall
require any 
5licensee to staff the pari-mutuel department with
adequate 
6personnel. 

7(Source: P.A. 97-1060, eff. 8-24-12.)





8 (230 ILCS 5/15) (from Ch. 8, par. 37-15)



9 Sec. 15. 
(a) The Board shall, in its discretion, issue 
10occupation
licenses
to horse owners, trainers, harness 
11drivers, jockeys, agents, apprentices,
grooms, stable foremen, 
12exercise persons, veterinarians, valets, blacksmiths,

13concessionaires and others designated by the Board whose work, 
14in whole or in
part, is conducted upon facilities within the 
15State. Such occupation licenses
will
be obtained prior to the

16persons engaging in their vocation upon such facilities. The

17Board shall not license pari-mutuel clerks, parking 
18attendants, security
guards and employees of concessionaires. 
19No occupation license shall be
required of
any person who works 
20at facilities within this
State as a pari-mutuel
clerk, parking 
21attendant, security guard or as an employee of a 
22concessionaire.
Concessionaires of the Illinois State Fair and 
23DuQuoin State Fair and
employees of the Illinois Department of 
24Agriculture shall not be required to
obtain an occupation 
25license by the Board.

 
 
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1 (b) Each application for an occupation license shall be on 
2forms
prescribed by the Board. Such license, when issued, shall 
3be for the
period ending December 31 of each year, except that 
4the Board in its
discretion may grant 3-year licenses. The 
5application shall
be accompanied
by a fee of not more than $25 
6per year
or, in the case of 3-year occupation
license

7applications, a fee of not more than $60. Each applicant shall 
8set forth in
the application his full name and address, and if 
9he had been issued prior
occupation licenses or has been 
10licensed in any other state under any other
name, such name, 
11his age, whether or not a permit or license issued to him
in 
12any other state has been suspended or revoked and if so whether 
13such
suspension or revocation is in effect at the time of the 
14application, and
such other information as the Board may 
15require. Fees for registration of
stable names shall not exceed 
16$50.00. Beginning on the date when any organization licensee 
17begins conducting electronic gaming pursuant to an electronic 
18gambling license issued under the Illinois Gambling Act, the 
19fee for registration of stable names shall not exceed $150, and 
20the application fee for an occupation license shall not exceed 
21$75, per year or, in the case of a 3-year occupation license 
22application, the fee shall not exceed $180. 

23 (c) The Board may in its discretion refuse an occupation 
24license
to any person:


25  (1) who has been convicted of a crime;


26  (2) who is unqualified to perform the duties required 
 
 
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1 of such applicant;


2  (3) who fails to disclose or states falsely any 
3 information called for
in the application;


4  (4) who has been found guilty of a violation of this 
5 Act or of the rules
and regulations of the Board; or


6  (5) whose license or permit has been suspended, revoked 
7 or denied for just
cause in any other state.

8 (d) The Board may suspend or revoke any occupation license:


9  (1) for violation of any of the provisions of this Act; 
10 or


11  (2) for violation of any of the rules or regulations of 
12 the Board; or


13  (3) for any cause which, if known to the Board, would 
14 have justified the
Board in refusing to issue such 
15 occupation license; or


16  (4) for any other just cause.

17 (e)  
Each applicant shall submit his or her fingerprints 
18to the
Department
of State Police in the form and manner 
19prescribed by the Department of State
Police. These 
20fingerprints shall be checked against the fingerprint records

21now and hereafter filed in the Department of State
Police and 
22Federal Bureau of Investigation criminal history records

23databases. The Department of State Police shall charge
a fee 
24for conducting the criminal history records check, which shall 
25be
deposited in the State Police Services Fund and shall not 
26exceed the actual
cost of the records check. The Department of 
 
 
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1State Police shall furnish,
pursuant to positive 
2identification, records of conviction to the Board.
Each 
3applicant for licensure shall submit with his occupation

4license
application, on forms provided by the Board, 2 sets of 
5his fingerprints.
All such applicants shall appear in person at 
6the location designated by
the Board for the purpose of 
7submitting such sets of fingerprints; however,
with the prior 
8approval of a State steward, an applicant may have such sets
of 
9fingerprints taken by an official law enforcement agency and 
10submitted to
the Board.

11 (f) The Board may, in its discretion, issue an occupation 
12license without
submission of fingerprints if an applicant has 
13been duly licensed in another
recognized racing jurisdiction 
14after submitting fingerprints that were
subjected to a Federal 
15Bureau of Investigation criminal history background
check
in

16that jurisdiction.

17 (g) Beginning on the date when any organization licensee 
18begins conducting electronic gambling pursuant to an 
19electronic gaming license issued under the Illinois Gambling 
20Act, the Board may charge each applicant a reasonable 
21non-refundable fee to defray the costs associated with the 
22background investigation conducted by the Board. This fee shall 
23be exclusive of any other fee or fees charged in connection 
24with an application for and, if applicable, the issuance of, an 
25electronic gaming license. If the costs of the investigation 
26exceed the amount of the fee charged, the Board shall 
 
 
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1immediately notify the applicant of the additional amount owed, 
2payment of which must be submitted to the Board within 7 days 
3after such notification. All information, records, interviews, 
4reports, statements, memoranda, or other data supplied to or 
5used by the Board in the course of its review or investigation 
6of an applicant for a license or renewal under this Act shall 
7be privileged, strictly confidential, and shall be used only 
8for the purpose of evaluating an applicant for a license or a 
9renewal. Such information, records, interviews, reports, 
10statements, memoranda, or other data shall not be admissible as 
11evidence, nor discoverable, in any action of any kind in any 
12court or before any tribunal, board, agency, or person, except 
13for any action deemed necessary by the Board. 
14(Source: P.A. 93-418, eff. 1-1-04.)





15 (230 ILCS 5/18) (from Ch. 8, par. 37-18)



16 Sec. 18. 
(a) Together with its application, each applicant 
17for racing dates
shall deliver to the Board a certified check 
18or bank draft payable to the order
of the Board for $1,000. In 
19the event the applicant applies for racing dates
in 2 or 3 
20successive calendar years as provided in subsection (b) of 
21Section
21, the fee shall be $2,000. Filing fees shall not be 
22refunded in the event
the application is denied. Beginning on 
23the date when any organization licensee begins conducting 
24electronic gaming pursuant to an electronic gaming license 
25issued under the Illinois Gambling Act, the application fee for 
 
 
09800SB1739sam001- 245 -LRB098 10559 AMC 42403 a


1racing dates imposed by this subsection (a) shall be $10,000 
2and the application fee for racing dates in 2 or 3 successive 
3calendar years as provided in subsection (b) of Section 21 
4shall be $20,000. All filing fees shall be deposited into the 
5Horse Racing Fund. 

6 (b) In addition to the filing fee imposed by subsection (a) 
7of $1000 and the fees provided in
subsection (j) of Section 20, 
8each organization licensee shall pay a license
fee of $100 for 
9each racing program on which its daily pari-mutuel handle is

10$400,000 or more but less than $700,000, and a license fee of 
11$200 for each
racing program on which its daily pari-mutuel 
12handle is $700,000 or more.
The
additional fees required to be 
13paid under this Section by this amendatory Act
of 1982 shall be 
14remitted by the organization licensee to the Illinois Racing

15Board with each day's graduated privilege tax or pari-mutuel 
16tax and
breakage as provided under
Section 27. Beginning on the 
17date when any organization licensee begins conducting 
18electronic gaming pursuant to an electronic gaming license 
19issued under the Illinois Gambling Act, the license fee imposed 
20by this subsection (b) shall be $200 for each racing program on 
21which the organization licensee's daily pari-mutuel handle is 
22$100,000 or more, but less than $400,000, and the license fee 
23imposed by this subsection (b) shall be $400 for each racing 
24program on which the organization licensee's daily pari-mutuel 
25handle is $400,000 or more. 

26 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois 
 
 
09800SB1739sam001- 246 -LRB098 10559 AMC 42403 a


1Municipal Code,"
approved May 29, 1961, as now or hereafter 
2amended, shall not apply to any
license under this Act.

3(Source: P.A. 97-1060, eff. 8-24-12.)





4 (230 ILCS 5/19) (from Ch. 8, par. 37-19)



5 Sec. 19. 
(a) No organization license may be granted to 
6conduct a
horse race meeting:


7  (1) except as provided in subsection (c) of Section 21 
8 of this Act,
to any person at any place within 35 miles of 
9 any other place
licensed by the Board to hold a race 
10 meeting on the same date during the
same hours,
the mileage

11 measurement used in this subsection (a) shall be certified 
12 to the Board by
the Bureau of
Systems and Services in the 
13 Illinois Department of Transportation as the
most commonly 
14 used public way of vehicular travel;


15  (2) to any person in default in the payment of any 
16 obligation or
debt due the State under this Act, provided 
17 no applicant shall be deemed
in default in the payment of 
18 any obligation or debt due to the State
under this Act as 
19 long as there is pending a hearing of any kind
relevant to 
20 such matter;


21  (3) to any person who has been convicted of the 
22 violation of any law
of the United States or any State law 
23 which provided as all or part of
its penalty imprisonment 
24 in any penal institution; to any person against
whom there 
25 is pending a Federal or State criminal charge; to any 
 
 
09800SB1739sam001- 247 -LRB098 10559 AMC 42403 a


1 person
who is or has been connected with or engaged in the 
2 operation of any
illegal business; to any person who does 
3 not enjoy a general reputation
in his community of being an 
4 honest, upright, law-abiding person;
provided that none of 
5 the matters set forth in this subparagraph (3)
shall make 
6 any person ineligible to be granted an organization license

7 if the Board determines, based on circumstances of any such 
8 case, that
the granting of a license would not be 
9 detrimental to the interests of
horse racing and of the 
10 public;


11  (4) to any person who does not at the time of 
12 application for the
organization license own or have a 
13 contract or lease for the possession
of a finished race 
14 track suitable for the type of racing intended to be
held 
15 by the applicant and for the accommodation of the public.

16 (b) (Blank) Horse racing on Sunday shall be prohibited 
17unless authorized by
ordinance or referendum of the 
18municipality in which a race track or any
of its appurtenances 
19or facilities are located, or utilized.

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

21license because of any of the matters set forth in subsection 
22(a) (2) or
subsection (a) (3) of this Section, any other or 
23separate person that
either (i) controls, directly or 
24indirectly, such ineligible person
or (ii) is controlled, 
25directly or indirectly, by such ineligible
person or by a 
26person which controls, directly or indirectly, such
ineligible 
 
 
09800SB1739sam001- 248 -LRB098 10559 AMC 42403 a


1person shall also be ineligible.

2(Source: P.A. 88-495; 89-16, eff. 5-30-95.)





3 (230 ILCS 5/20) (from Ch. 8, par. 37-20)



4 Sec. 20. 
(a) Any person desiring to conduct a horse race 
5meeting may
apply to the Board for an organization license. The 
6application shall be
made on a form prescribed and furnished by 
7the Board. The application shall
specify:


8  (1) the dates on which
it intends to conduct the horse 
9 race meeting, which
dates shall be provided
under Section 
10 21;


11  (2) the hours of each racing day between which it 
12 intends to
hold or
conduct horse racing at such meeting;


13  (3) the location where it proposes to conduct the

14 meeting; and


15  (4) any other information the Board may reasonably 
16 require.

17 (b) A separate application for an organization license 
18shall be filed
for each horse race meeting
which such person 
19proposes to hold. Any such application, if made by an

20individual, or by any individual as trustee, shall be
signed 
21and verified under oath by such individual. If the application 
22is
made by individuals, then it shall be signed and verified 
23under oath by at least 2 of the individuals; if the application 
24is made by or a partnership, it shall be signed and
verified 
25under oath by at least 2 of such individuals or members of such

 
 
09800SB1739sam001- 249 -LRB098 10559 AMC 42403 a


1partnership as the case may be. If made by an association, a 
2corporation, a
corporate trustee, a limited liability company, 
3or any other entity, it shall be signed by an authorized 
4officer, a partner, a member, or a manager, as the case may be, 
5of the entity the president
and attested by the secretary or 
6assistant secretary under the seal
of such association, trust 
7or corporation if it has a seal, and shall
also be verified 
8under oath by one of the signing officers.

9 (c) The application shall specify: 
10  (1) the name of the
persons, association, trust, or 
11 corporation making such application; and 
12  (2) the principal
post office address of the applicant; 
13  (3) if the applicant is a trustee, the
names and 
14 addresses of the beneficiaries; if the applicant is a 
15 corporation, the names and
post office addresses of all 
16 officers, stockholders and directors; or if
such

17 stockholders hold stock as a nominee or fiduciary, the 
18 names and post
office addresses of the parties these 
19 persons, partnerships, corporations, or trusts
who are the 
20 beneficial owners thereof or who are beneficially 
21 interested
therein; and if the applicant is a partnership, 
22 the names and post office addresses of all
partners, 
23 general or limited; if the applicant is a limited liability 
24 company, the names and addresses of the manager and 
25 members; and if the applicant is any other entity, the 
26 names and addresses of all officers or other authorized 
 
 
09800SB1739sam001- 250 -LRB098 10559 AMC 42403 a


1 persons of the entity corporation, the name
of the state of 
2 its incorporation shall be specified.

3 (d) The applicant shall execute and file with the Board a 
4good faith
affirmative action plan to recruit, train, and 
5upgrade minorities in all
classifications within the 
6association.

7 (e) With such
application there shall be delivered to the 
8Board a
certified check or bank draft payable to the order of 
9the Board for an
amount equal to $1,000. All applications for

10the issuance of an organization license shall be filed with the 
11Board before
August 1 of the year prior to the year for which 
12application is made and shall be acted
upon by the Board at a 
13meeting to be held on such date as shall be fixed
by the Board 
14during the last 15 days of September of such prior year.
At 
15such meeting, the Board shall announce
the award of the racing 
16meets, live racing schedule, and designation of host
track to 
17the applicants and its approval or disapproval of each

18application. No announcement shall
be considered binding until 
19a formal order is executed by the Board, which
shall be 
20executed no later than October 15 of that prior year.
Absent 
21the agreement of
the affected organization licensees, the Board 
22shall not grant overlapping
race meetings to 2 or more tracks 
23that are within 100 miles of each
other to conduct the 
24thoroughbred racing.

25 (e-1) In awarding standardbred racing dates for calendar 
26year 2014 and thereafter, the Board shall award at least 310 
 
 
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1racing days, and each organization licensee shall average at 
2least 12 races for each racing day awarded. The Board shall 
3have the discretion to allocate those racing days among 
4organization licensees requesting standardbred racing dates. 
5Once awarded by the Board, organization licensees awarded 
6standardbred racing dates shall run at least 3,500 races in 
7total during that calendar year. Standardbred racing conducted 
8in Sangamon County shall not be considered races under this 
9subsection (e-1).
10 (e-2) In awarding racing dates for calendar year 2014 and 
11thereafter, the Board shall award thoroughbred racing days to 
12Cook County organization licensees commensurate with these 
13organization licensees' requirement that they shall run at 
14least 1,950 thoroughbred races in the aggregate, so long as 2 
15organization licensees are conducting electronic gaming 
16operations. Additionally, if the organization licensees that 
17run thoroughbred races in Cook County are conducting electronic 
18gaming operations, the Board shall increase the number of 
19thoroughbred races to be run in Cook County in the aggregate to 
20at least the following:
21  (i) 2,050 races in any year following the most recent 
22 preceding complete calendar year when the combined 
23 adjusted gross receipts of the electronic gaming licensees 
24 operating at Cook County race tracks total in excess of 
25 $200,000,000, but do not exceed $250,000,000; 
26  (ii) 2,125 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 $250,000,000, but do not exceed $300,000,000; 
5  (iii) 2,200 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 $300,000,000, but do not exceed $350,000,000; 
10  (iv) 2,300 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 $350,000,000, but do not exceed $400,000,000; 
15  (v) 2,375 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 $400,000,000, but do not exceed $450,000,000; 
20  (vi) 2,450 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 $450,000,000, but do not exceed $500,000,000; 
25  (vii) 2,550 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 exceeds $500,000,000. 
3 In awarding racing dates under this subsection (e-2), the 
4Board shall have the discretion to allocate those thoroughbred 
5racing dates among these Cook County organization licensees. 
6 (e-3) In awarding racing dates for calendar year 2014 and 
7thereafter in connection with a race track in Madison County, 
8the Board shall award racing dates and such organization 
9licensee shall run at least 700 thoroughbred races at the race 
10track in Madison County each year. 
11 Notwithstanding Section 7.6 of the Illinois Gambling Act or 
12any provision of this Act other than subsection (e-4.5), for 
13each calendar year for which an electronic gaming licensee 
14located in Madison County requests racing dates resulting in 
15less than 700 live thoroughbred races at its race track 
16facility, the electronic gaming licensee may not conduct 
17electronic gaming for the calendar year of such requested live 
18races. 
19 (e-4) Notwithstanding the provisions of Section 7.6 of the 
20Illinois Gambling Act or any provision of this Act other than 
21subsections (e-3) and (e-4.5), for each calendar year for which 
22an electronic gaming licensee requests racing dates for a 
23specific horse breed which results in a number of live races 
24for that specific breed under its organization license that is 
25less than the total number of live races for that specific 
26breed which it conducted in 2011 for standardbred racing and in 
 
 
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12009 for thoroughbred racing at its race track facility, the 
2electronic gaming licensee may not conduct electronic gaming 
3for the calendar year of such requested live races. 
4 (e-4.5) The Board shall ensure that each organization 
5licensee shall individually run a sufficient number of races 
6per year to qualify for an electronic gaming license under this 
7Act. The General Assembly finds that the minimum live racing 
8guarantees contained in subsections (e-1), (e-2), and (e-3) are 
9in the best interest of the sport of horse racing, and that 
10such guarantees may only be reduced in the limited 
11circumstances described in this subsection. The Board may 
12decrease the number of racing days without affecting an 
13organization licensee's ability to conduct electronic gaming 
14only if the Board determines, after notice and hearing, that: 
15  (i) a decrease is necessary to maintain a sufficient 
16 number of betting interests per race to ensure the 
17 integrity of racing; 
18  (ii) there are unsafe track conditions due to weather 
19 or acts of God;
20  (iii) there is an agreement between an organization 
21 licensee and the breed association that is applicable to 
22 the involved live racing guarantee, such association 
23 representing either the largest number of thoroughbred 
24 owners and trainers or the largest number of standardbred 
25 owners, trainers and drivers who race horses at the 
26 involved organization licensee's racing meeting, so long 
 
 
09800SB1739sam001- 255 -LRB098 10559 AMC 42403 a


1 as the agreement does not compromise the integrity of the 
2 sport of horse racing; or
3  (iv) the horse population or purse levels are 
4 insufficient to provide the number of racing opportunities 
5 otherwise required in this Act. 
6 In decreasing the number of racing dates in accordance with 
7this subsection, the Board shall hold a hearing and shall 
8provide the public and all interested parties notice and an 
9opportunity to be heard. The Board shall accept testimony from 
10all interested parties, including any association representing 
11owners, trainers, jockeys, or drivers who will be affected by 
12the decrease in racing dates. The Board shall provide a written 
13explanation of the reasons for the decrease and the Board's 
14findings. The written explanation shall include a listing and 
15content of all communication between any party and any Illinois 
16Racing Board member or staff that does not take place at a 
17public meeting of the Board. 
18 (e-5) In reviewing an application for the purpose of 
19granting an
organization license consistent with
the best 
20interests of the public and the
sport of horse racing, the 
21Board shall consider:


22  (1) the character, reputation, experience, and 
23 financial integrity of the
applicant and of any other 
24 separate person that either:


25   (i) controls the applicant, directly or 
26 indirectly, or


 
 
09800SB1739sam001- 256 -LRB098 10559 AMC 42403 a


1   (ii) is controlled, directly or indirectly, by 
2 that applicant or by a
person who controls, directly or 
3 indirectly, that applicant;


4  (2) the applicant's facilities or proposed facilities 
5 for conducting
horse
racing;


6  (3) the total revenue without regard to Section 32.1 to 
7 be derived by
the State and horsemen from the applicant's

8 conducting a race meeting;


9  (4) the applicant's good faith affirmative action plan 
10 to recruit, train,
and upgrade minorities in all employment 
11 classifications;


12  (5) the applicant's financial ability to purchase and 
13 maintain adequate
liability and casualty insurance;


14  (6) the applicant's proposed and prior year's 
15 promotional and marketing
activities and expenditures of 
16 the applicant associated with those activities;


17  (7) an agreement, if any, among organization licensees 
18 as provided in
subsection (b) of Section 21 of this Act; 
19 and


20  (8) the extent to which the applicant exceeds or meets 
21 other standards for
the issuance of an organization license 
22 that the Board shall adopt by rule.

23 In granting organization licenses and allocating dates for 
24horse race
meetings, the Board shall have discretion to 
25determine an overall schedule,
including required simulcasts 
26of Illinois races by host tracks that will, in
its judgment, be 
 
 
09800SB1739sam001- 257 -LRB098 10559 AMC 42403 a


1conducive to the best interests of
the public and the sport of 
2horse racing.

3 (e-10) The Illinois Administrative Procedure Act shall 
4apply to
administrative procedures of the Board under this Act 
5for the granting of an
organization license, except that (1) 
6notwithstanding the provisions of
subsection (b) of Section 
710-40 of the Illinois Administrative Procedure Act
regarding 
8cross-examination, the
Board may prescribe rules limiting the 
9right of an applicant or participant in
any proceeding to award 
10an organization license to conduct cross-examination of

11witnesses at that proceeding where that cross-examination 
12would unduly obstruct
the timely award of an organization 
13license under subsection (e) of Section 20
of this Act; (2) the 
14provisions of Section 10-45 of the Illinois Administrative

15Procedure Act regarding proposals for decision are excluded 
16under this Act; (3)
notwithstanding the provisions of 
17subsection (a) of Section 10-60 of the
Illinois Administrative 
18Procedure Act regarding ex parte communications, the
Board may 
19prescribe rules allowing ex parte communications with 
20applicants or
participants in a proceeding to award an 
21organization license where conducting
those communications 
22would be in the best interest of racing, provided all
those 
23communications are made part of the record of that proceeding 
24pursuant
to subsection (c) of Section 10-60 of the Illinois 
25Administrative
Procedure Act; (4) the provisions of Section 14a 
26of this Act and the rules of
the Board promulgated under that 
 
 
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1Section shall apply instead of the provisions
of Article 10 of 
2the Illinois Administrative Procedure Act regarding

3administrative law judges; and (5) the provisions of subsection 
4(d)
of Section 10-65 of the Illinois Administrative Procedure 
5Act that prevent
summary suspension of a license pending 
6revocation or other action shall not
apply.

7 (f) The Board may allot racing dates to an organization 
8licensee for more
than one calendar year but for no more than 3 
9successive calendar years in
advance, provided that the Board 
10shall review such allotment for more than
one calendar year 
11prior to each year for which such allotment has been
made. The 
12granting of an organization license to a person constitutes a

13privilege to conduct a horse race meeting under the provisions 
14of this Act, and
no person granted an organization license 
15shall be deemed to have a vested
interest, property right, or 
16future expectation to receive an organization
license in any 
17subsequent year as a result of the granting of an organization

18license. Organization licenses shall be subject to revocation 
19if the
organization licensee has violated any provision of this 
20Act
or the rules and regulations promulgated under this Act or 
21has been convicted
of a crime or has failed to disclose or has 
22stated falsely any information
called for in the application 
23for an organization license. Any
organization license 
24revocation
proceeding shall be in accordance with Section 16 
25regarding suspension and
revocation of occupation licenses.

26 (f-5) If, (i) an applicant does not file an acceptance of 
 
 
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1the racing dates
awarded by the Board as required under part 
2(1) of subsection (h) of this
Section 20, or (ii) an 
3organization licensee has its license suspended or
revoked 
4under this Act, the Board, upon conducting an emergency hearing 
5as
provided for in this Act, may reaward on an emergency basis 
6pursuant to
rules established by the Board, racing dates not 
7accepted or the racing
dates
associated with any suspension or 
8revocation period to one or more organization
licensees, new 
9applicants, or any combination thereof, upon terms and

10conditions that the Board determines are in the best interest 
11of racing,
provided, the organization licensees or new 
12applicants receiving the awarded
racing dates file an 
13acceptance of those reawarded racing dates as
required under 
14paragraph (1) of subsection (h) of this Section 20 and comply

15with the other provisions of this Act. The Illinois 
16Administrative Procedure
Act shall not apply to the 
17administrative procedures of the Board in conducting
the 
18emergency hearing and the reallocation of racing dates on an 
19emergency
basis.

20 (g) (Blank).

21 (h) The Board shall send the applicant a copy of its 
22formally
executed order by certified mail addressed to the 
23applicant at the
address stated in his application, which 
24notice shall be mailed within 5 days
of the date the formal 
25order is executed.

26 Each applicant notified shall, within 10 days after receipt 
 
 
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1of the
final executed order of the Board awarding
racing dates:


2  (1) file with the Board an acceptance of such
award in

3 the form
prescribed by the Board;


4  (2) pay to the Board an additional amount equal to $110 
5 for each
racing date awarded; and


6  (3) file with the Board the bonds required in Sections 
7 21
and 25 at least
20 days prior to the first day of each 
8 race meeting.

9Upon compliance with the provisions of paragraphs (1), (2), and 
10(3) of
this subsection (h), the applicant shall be issued an

11organization license.

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

13to pay the organization license fees herein provided, no 
14organization
license shall be issued to such applicant.

15(Source: P.A. 97-333, eff. 8-12-11.)





16 (230 ILCS 5/21) (from Ch. 8, par. 37-21)



17 Sec. 21. 
(a) Applications for organization licenses must be 
18filed with
the Board at a time and place prescribed by the 
19rules and regulations of
the Board. The Board shall examine the 
20applications within 21 days
after
the date allowed for filing 
21with respect to their conformity with this Act
and such rules 
22and regulations as may be prescribed by the Board. If any

23application does not comply with this Act or the rules and 
24regulations
prescribed by the Board, such application may be 
25rejected and an
organization license refused to the applicant, 
 
 
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1or the Board may, within 21
days of the receipt of such 
2application, advise the applicant of the
deficiencies of the 
3application under the Act or the rules and regulations of
the 
4Board,
and require the submittal of an amended application 
5within a reasonable time
determined by the Board; and upon 
6submittal of the amended application by the
applicant, the 
7Board may consider the
application consistent with the process 
8described in subsection (e-5) of
Section 20 of this Act. If it

9is found to be in compliance with this Act and the rules and 
10regulations of
the Board, the Board may then issue an 
11organization license to such applicant.

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

13dates to qualified applicants different from those requested by 
14the
applicants in their
applications. However, if all eligible 
15applicants for organization
licenses whose tracks are located 
16within 100 miles of each other execute
and submit to the Board 
17a written agreement among such applicants as to
the award of 
18racing dates, including where applicable racing
programs, for

19up to 3 consecutive years, then subject to annual review of 
20each
applicant's compliance with Board rules and regulations, 
21provisions of this
Act and conditions contained in annual dates 
22orders issued by the Board,
the Board may grant such dates and 
23programs
to such applicants
as so agreed by them if the Board 
24determines that the grant of these racing
dates is in the best

25interests of racing. The Board shall treat any such agreement 
26as the
agreement signatories' joint and several application for 
 
 
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1racing dates
during the term of the agreement.

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

3race meetings within 35 miles of each other, as certified to 
4the Board
under Section 19 (a) (1) of this Act, on conflicting 
5dates, the Board may
determine and grant the number of racing 
6days to be awarded to
the several
applicants in accordance with 
7the provisions of subsection (e-5) of Section
20 of this
Act.

8 (d) (Blank).

9 (e) Prior to the issuance of an organization license, the 
10applicant
shall file with the Board a bond payable to the State 
11of Illinois in the
sum of $200,000, executed by the applicant 
12and a surety company or
companies authorized to do business in 
13this State, and conditioned upon the
payment by the 
14organization licensee of all taxes due under Section 27,
other 
15monies due and payable under this Act, all purses due and 
16payable,
and that the organization licensee will upon 
17presentation of the winning
ticket or
tickets distribute all 
18sums due to the patrons of pari-mutuel pools. Beginning on the 
19date when any organization licensee begins conducting 
20electronic gaming pursuant to an electronic gaming license 
21issued under the Illinois Gambling Act, the amount of the bond 
22required under this subsection (e) shall be $500,000. 

23 (f) Each organization license shall specify the person to 
24whom it is
issued, the dates upon which horse racing is 
25permitted, and the location,
place, track, or enclosure where 
26the horse race meeting is to be held.

 
 
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1 (g) Any person who owns one or more race tracks
within the 
2State
may seek, in its own name, a separate organization 
3license
for each race track.

4 (h) All racing conducted under such organization license is 
5subject to
this Act and to the rules and regulations from time 
6to time prescribed by
the Board, and every such organization 
7license issued by the Board shall
contain a recital to that 
8effect.

9 (i) Each such organization licensee may provide
that at 
10least one race per day may be devoted to
the racing of quarter 
11horses, appaloosas, arabians, or paints.

12 (j) In acting on applications for organization licenses, 
13the Board shall
give weight to an organization license which 
14has
implemented a good faith affirmative
action effort to 
15recruit, train and upgrade minorities in all classifications

16within the organization license.

17(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)





18 (230 ILCS 5/24) (from Ch. 8, par. 37-24)



19 Sec. 24. 
(a) No license shall be issued to or held by an 
20organization
licensee unless all of its officers, directors, 
21and holders of ownership
interests of at least 5% are first 
22approved by the Board. The Board shall not
give approval of an 
23organization license application to any person who has been

24convicted of or is under an indictment for a crime of moral 
25turpitude or has
violated any provision of the racing law of 
 
 
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1this State or any rules of the
Board. 

2 (b) An organization licensee must notify the Board within 
310 days of any
change in the holders of a direct or indirect 
4interest in the ownership of the
organization licensee. The 
5Board may, after hearing, revoke the organization
license of 
6any
person who registers on its books or knowingly permits a 
7direct or indirect
interest in the ownership of that person 
8without notifying the Board of the
name of the holder in 
9interest within this period.

10 (c) In addition to the provisions of subsection
(a) of this 
11Section, no person shall be granted an
organization
license if

12any public official of the State or member of his
or her family 
13holds any ownership or financial interest, directly or

14indirectly, in the person.

15 (d) No person which has been granted an organization

16license
to hold a race meeting shall give to any public 
17official or member of his
family, directly or indirectly, for 
18or without consideration, any interest in the person. The Board 
19shall, after hearing, revoke
the organization license granted 
20to a person which has
violated this subsection.

21 (e) (Blank).

22 (f) No organization licensee or concessionaire or officer, 
23director or
holder or controller of
5% or more legal or 
24beneficial interest in any organization licensee or
concession

25shall make any sort of
gift or contribution that is prohibited 
26under Article 10 of the State Officials and Employees Ethics 
 
 
09800SB1739sam001- 265 -LRB098 10559 AMC 42403 a


1Act of any kind or pay or give any money or other thing
of value 
2to any
person who is a public official, or a candidate or 
3nominee for public office if that payment or gift is prohibited 
4under Article 10 of the State Officials and Employees Ethics 
5Act.

6(Source: P.A. 89-16, eff. 5-30-95.)





7 (230 ILCS 5/25) (from Ch. 8, par. 37-25)



8 Sec. 25. Admission charge; bond; fine. 
9 (a) There shall be paid to the Board at such time or times 
10as
it shall prescribe, the sum of fifteen cents (15¢) for each 
11person entering
the grounds or enclosure of each organization 
12licensee and
inter-track wagering licensee upon a ticket of 
13admission except as provided
in subsection (g) of Section 27 of 
14this Act. If
tickets are issued for more than one day then the 
15sum of fifteen cents
(15¢) shall be paid for each person using 
16such ticket on each day that the
same shall be used. Provided, 
17however, that no charge shall be made on
tickets of admission 
18issued to and in the name of directors, officers,
agents or 
19employees of the organization licensee, or inter-track 
20wagering
licensee, or to owners, trainers, jockeys,
drivers and 
21their employees or to any person or persons entering the

22grounds or enclosure for the transaction of business in 
23connection with such
race meeting. The organization licensee or 
24inter-track wagering licensee
may, if it desires, collect such 
25amount from
each ticket holder in addition to the amount or 
 
 
09800SB1739sam001- 266 -LRB098 10559 AMC 42403 a


1amounts charged for such
ticket of admission. Beginning on the 
2date when any organization licensee begins conducting 
3electronic gaming pursuant to an electronic gaming license 
4issued under the Illinois Gambling Act, the admission charge 
5imposed by this subsection (a) shall be 40 cents for each 
6person entering the grounds or enclosure of each organization 
7licensee and inter-track wagering licensee upon a ticket of 
8admission, and if such tickets are issued for more than one 
9day, 40 cents shall be paid for each person using such ticket 
10on each day that the same shall be used. 

11 (b) Accurate records and books shall at all times be kept 
12and maintained by
the organization licensees and inter-track 
13wagering licensees
showing the admission tickets issued and 
14used on each racing
day and the attendance thereat of each 
15horse racing meeting. The Board or
its duly authorized 
16representative or representatives shall at all
reasonable 
17times have access to the admission records of any organization

18licensee and inter-track wagering licensee for
the purpose of 
19examining and checking the same and ascertaining whether or
not 
20the proper amount has been or is being paid the State of 
21Illinois as
herein provided. The Board shall also require, 
22before issuing any license,
that the licensee shall execute and 
23deliver to it a bond, payable to the
State of Illinois, in such 
24sum as it shall determine, not, however, in
excess of fifty 
25thousand dollars ($50,000), with a surety or sureties to be

26approved by it, conditioned for the payment of all sums due and 
 
 
09800SB1739sam001- 267 -LRB098 10559 AMC 42403 a


1payable or
collected by it under this Section upon admission 
2fees received for any
particular racing meetings. The Board may 
3also from time to time require sworn
statements of the number 
4or numbers of such admissions and may prescribe blanks
upon 
5which such reports shall be made. Any organization licensee or

6inter-track wagering licensee failing or
refusing to pay the 
7amount found to be due as herein provided, shall be
deemed 
8guilty of a business offense and upon conviction shall be 
9punished by a
fine of not more than five thousand dollars 
10($5,000) in addition to the amount
due from such organization 
11licensee or inter-track wagering licensee as
herein provided. 
12All fines paid into court by an organization
licensee or 
13inter-track wagering licensee found guilty of violating this

14Section shall be transmitted and paid
over by the clerk of the 
15court to the Board. Beginning on the date when any organization 
16licensee begins conducting electronic gaming pursuant to an 
17electronic gaming license issued under the Illinois Gambling 
18Act, any fine imposed pursuant to this subsection (b) shall not 
19exceed $10,000. 

20(Source: P.A. 88-495; 89-16, eff. 5-30-95.)





21 (230 ILCS 5/26) (from Ch. 8, par. 37-26)


22 Sec. 26. Wagering. 

23 (a) Any licensee may conduct and supervise the pari-mutuel 
24system of
wagering, as defined in Section 3.12 of this Act, on 
25horse races conducted by
an Illinois organization
licensee or 
 
 
09800SB1739sam001- 268 -LRB098 10559 AMC 42403 a


1conducted at a racetrack located in another state or country 
2and
televised in Illinois in accordance with subsection (g) of 
3Section 26 of this
Act. Subject to the prior consent of the 
4Board, licensees may supplement any
pari-mutuel pool in order 
5to guarantee a minimum distribution. Such
pari-mutuel method of 
6wagering shall not,
under any circumstances if conducted under 
7the provisions of this Act,
be held or construed to be 
8unlawful, other statutes of this State to the
contrary 
9notwithstanding.
Subject to rules for advance wagering 
10promulgated by the Board, any
licensee
may accept wagers in 
11advance of the day of
the race wagered upon occurs.

12 (b) Except for those gaming activities for which a license 
13is obtained and authorized under the Illinois Lottery Act, the 
14Charitable Games Act, the Raffles Act, or the Illinois Gambling 
15Act, no No other method of betting, pool making, wagering or

16gambling shall be used or permitted by the licensee. Each 
17licensee
may retain, subject to the payment of all applicable

18taxes and purses, an amount not to exceed 17% of all money 
19wagered
under subsection (a) of this Section, except as may 
20otherwise be permitted
under this Act.

21 (b-5) An individual may place a wager under the pari-mutuel 
22system from
any licensed location authorized under this Act 
23provided that wager is
electronically recorded in the manner 
24described in Section 3.12 of this Act.
Any wager made 
25electronically by an individual while physically on the 
26premises
of a licensee shall be deemed to have been made at the 
 
 
09800SB1739sam001- 269 -LRB098 10559 AMC 42403 a


1premises of that
licensee.

2 (c) Until January 1, 2000, the sum held by any licensee for 
3payment of
outstanding pari-mutuel tickets, if unclaimed prior 
4to December 31 of the
next year, shall be retained by the 
5licensee for payment of
such tickets until that date. Within 10 
6days thereafter, the balance of
such sum remaining unclaimed, 
7less any uncashed supplements contributed by such
licensee for 
8the purpose of guaranteeing minimum distributions
of any 
9pari-mutuel pool, shall be
paid to the
Illinois
Veterans'

10Rehabilitation Fund of the State treasury, except as provided 
11in subsection
(g) of Section 27 of this Act.

12 (c-5) Beginning January 1, 2000, the sum held by any 
13licensee for payment
of
outstanding pari-mutuel tickets, if 
14unclaimed prior to December 31 of the
next year, shall be 
15retained by the licensee for payment of
such tickets until that 
16date. Within 10 days thereafter, the balance of
such sum 
17remaining unclaimed, less any uncashed supplements contributed 
18by such
licensee for the purpose of guaranteeing minimum 
19distributions
of any pari-mutuel pool, shall be evenly 
20distributed to the purse account of
the organization licensee 
21and the organization licensee.

22 (d) A pari-mutuel ticket shall be honored until December 31 
23of the
next calendar year, and the licensee shall pay the same 
24and may
charge the amount thereof against unpaid money 
25similarly accumulated on account
of pari-mutuel tickets not 
26presented for payment.

 
 
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1 (e) No licensee shall knowingly permit any minor, other

2than an employee of such licensee or an owner, trainer,
jockey, 
3driver, or employee thereof, to be admitted during a racing

4program unless accompanied by a parent or guardian, or any 
5minor to be a
patron of the pari-mutuel system of wagering 
6conducted or
supervised by it. The admission of any 
7unaccompanied minor, other than
an employee of the licensee or 
8an owner, trainer, jockey,
driver, or employee thereof at a 
9race track is a Class C
misdemeanor.

10 (f) Notwithstanding the other provisions of this Act, an

11organization licensee may contract
with an entity in another 
12state or country to permit any legal
wagering entity in another 
13state or country to accept wagers solely within
such other 
14state or country on races conducted by the organization 
15licensee
in this State.
Beginning January 1, 2000, these wagers

16shall not be subject to State
taxation. Until January 1, 2000,

17when the out-of-State entity conducts a pari-mutuel pool

18separate from the organization licensee, a privilege tax equal 
19to 7 1/2% of
all monies received by the organization licensee 
20from entities in other states
or countries pursuant to such 
21contracts is imposed on the organization
licensee, and such 
22privilege tax shall be remitted to the
Department of Revenue

23within 48 hours of receipt of the moneys from the simulcast. 
24When the
out-of-State entity conducts a
combined pari-mutuel 
25pool with the organization licensee, the tax shall be 10%
of 
26all monies received by the organization licensee with 25% of 
 
 
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1the
receipts from this 10% tax to be distributed to the county

2in which the race was conducted.

3 An organization licensee may permit one or more of its 
4races to be
utilized for
pari-mutuel wagering at one or more 
5locations in other states and may
transmit audio and visual 
6signals of races the organization licensee
conducts to one or

7more locations outside the State or country and may also permit 
8pari-mutuel
pools in other states or countries to be combined 
9with its gross or net
wagering pools or with wagering pools 
10established by other states.

11 (g) A host track may accept interstate simulcast wagers on

12horse
races conducted in other states or countries and shall 
13control the
number of signals and types of breeds of racing in 
14its simulcast program,
subject to the disapproval of the Board. 
15The Board may prohibit a simulcast
program only if it finds 
16that the simulcast program is clearly
adverse to the integrity 
17of racing. The host track
simulcast program shall
include the 
18signal of live racing of all organization licensees.
All 
19non-host licensees and advance deposit wagering licensees 
20shall carry the signal of and accept wagers on live racing of 
21all organization licensees. Advance deposit wagering licensees 
22shall not be permitted to accept out-of-state wagers on any 
23Illinois signal provided pursuant to this Section without the 
24approval and consent of the organization licensee providing the 
25signal. Non-host licensees may carry the host track simulcast 
26program and
shall accept wagers on all races included as part 
 
 
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1of the simulcast
program upon which wagering is permitted.
All 
2organization licensees shall provide their live signal to all 
3advance deposit wagering licensees for a simulcast commission 
4fee not to exceed 6% of the advance deposit wagering licensee's 
5Illinois handle on the organization licensee's signal without 
6prior approval by the Board. The Board may adopt rules under 
7which it may permit simulcast commission fees in excess of 6%. 
8The Board shall adopt rules limiting the interstate commission 
9fees charged to an advance deposit wagering licensee. The Board 
10shall adopt rules regarding advance deposit wagering on 
11interstate simulcast races that shall reflect, among other 
12things, the General Assembly's desire to maximize revenues to 
13the State, horsemen purses, and organizational licensees. 
14However, organization licensees providing live signals 
15pursuant to the requirements of this subsection (g) may 
16petition the Board to withhold their live signals from an 
17advance deposit wagering licensee if the organization licensee 
18discovers and the Board finds reputable or credible information 
19that the advance deposit wagering licensee is under 
20investigation by another state or federal governmental agency, 
21the advance deposit wagering licensee's license has been 
22suspended in another state, or the advance deposit wagering 
23licensee's license is in revocation proceedings in another 
24state. The organization licensee's provision of their live 
25signal to an advance deposit wagering licensee under this 
26subsection (g) pertains to wagers placed from within Illinois. 
 
 
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1Advance deposit wagering licensees may place advance deposit 
2wagering terminals at wagering facilities as a convenience to 
3customers. The advance deposit wagering licensee shall not 
4charge or collect any fee from purses for the placement of the 
5advance deposit wagering terminals. The costs and expenses
of 
6the host track and non-host licensees associated
with 
7interstate simulcast
wagering, other than the interstate

8commission fee, shall be borne by the host track and all

9non-host licensees
incurring these costs.
The interstate 
10commission fee shall not exceed 5% of Illinois handle on the

11interstate simulcast race or races without prior approval of 
12the Board. The
Board shall promulgate rules under which it may 
13permit
interstate commission
fees in excess of 5%. The 
14interstate commission
fee and other fees charged by the sending 
15racetrack, including, but not
limited to, satellite decoder 
16fees, shall be uniformly applied
to the host track and all 
17non-host licensees.

18 Notwithstanding any other provision of this Act, for a 
19period of one year after the effective date of this amendatory 
20Act of the 98th General Assembly until January 1, 2013, an 
21organization licensee may maintain a system whereby advance 
22deposit wagering may take place or an organization licensee, 
23with the consent of the horsemen association representing the 
24largest number of owners, breeders, trainers, jockeys, or 
25standardbred drivers who race horses at that organization 
26licensee's racing meeting, may contract with another person to 
 
 
09800SB1739sam001- 274 -LRB098 10559 AMC 42403 a


1carry out a system of advance deposit wagering. Such consent 
2may not be unreasonably withheld. All advance deposit wagers 
3placed from within Illinois must be placed through a 
4Board-approved advance deposit wagering licensee; no other 
5entity may accept an advance deposit wager from a person within 
6Illinois. All advance deposit wagering is subject to any rules 
7adopted by the Board. The Board may adopt rules necessary to 
8regulate advance deposit wagering through the use of emergency 
9rulemaking in accordance with Section 5-45 of the Illinois 
10Administrative Procedure Act. The General Assembly finds that 
11the adoption of rules to regulate advance deposit wagering is 
12deemed an emergency and necessary for the public interest, 
13safety, and welfare. An advance deposit wagering licensee may 
14retain all moneys as agreed to by contract with an organization 
15licensee. Any moneys retained by the organization licensee from 
16advance deposit wagering, not including moneys retained by the 
17advance deposit wagering licensee, shall be paid 50% to the 
18organization licensee's purse account and 50% to the 
19organization licensee. If more than one breed races at the same 
20race track facility, then the 50% of the moneys to be paid to 
21an organization licensee's purse account shall be allocated 
22among all organization licensees' purse accounts operating at 
23that race track facility proportionately based on the actual 
24number of host days that the Board grants to that breed at that 
25race track facility in the current calendar year. To the extent 
26any fees from advance deposit wagering conducted in Illinois 
 
 
09800SB1739sam001- 275 -LRB098 10559 AMC 42403 a


1for wagers in Illinois or other states have been placed in 
2escrow or otherwise withheld from wagers pending a 
3determination of the legality of advance deposit wagering, no 
4action shall be brought to declare such wagers or the 
5disbursement of any fees previously escrowed illegal.

6  (1) Between the hours of 6:30 a.m. and 6:30 p.m. an

7 intertrack wagering
licensee other than the host track may 
8 supplement the host track simulcast
program with 
9 additional simulcast races or race programs, provided that 
10 between
January 1 and the third Friday in February of any 
11 year, inclusive, if no live
thoroughbred racing is 
12 occurring in Illinois during this period, only

13 thoroughbred races may be used
for supplemental interstate 
14 simulcast purposes. The Board shall withhold
approval for a 
15 supplemental interstate simulcast only if it finds that the

16 simulcast is clearly adverse to the integrity of racing. A 
17 supplemental
interstate simulcast may be transmitted from 
18 an intertrack wagering licensee to
its affiliated non-host 
19 licensees. The interstate commission fee for a

20 supplemental interstate simulcast shall be paid by the 
21 non-host licensee and
its affiliated non-host licensees 
22 receiving the simulcast.


23  (2) Between the hours of 6:30 p.m. and 6:30 a.m. an

24 intertrack wagering
licensee other than the host track may 
25 receive supplemental interstate
simulcasts only with the 
26 consent of the host track, except when the Board
finds that 
 
 
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1 the simulcast is
clearly adverse to the integrity of 
2 racing. Consent granted under this
paragraph (2) to any 
3 intertrack wagering licensee shall be deemed consent to
all 
4 non-host licensees. The interstate commission fee for the 
5 supplemental
interstate simulcast shall be paid
by all 
6 participating non-host licensees.


7  (3) Each licensee conducting interstate simulcast 
8 wagering may retain,
subject to the payment of all 
9 applicable taxes and the purses, an amount not to
exceed 
10 17% of all money wagered. If any licensee conducts the 
11 pari-mutuel
system wagering on races conducted at 
12 racetracks in another state or country,
each such race or 
13 race program shall be considered a separate racing day for

14 the purpose of determining the daily handle and computing 
15 the privilege tax of
that daily handle as provided in 
16 subsection (a) of Section 27.
Until January 1, 2000,
from 
17 the sums permitted to be retained pursuant to this 
18 subsection, each
intertrack wagering location licensee 
19 shall pay 1% of the pari-mutuel handle
wagered on simulcast 
20 wagering to the Horse Racing Tax Allocation Fund, subject

21 to the provisions of subparagraph (B) of paragraph (11) of 
22 subsection (h) of
Section 26 of this Act.


23  (4) A licensee who receives an interstate simulcast may 
24 combine its gross
or net pools with pools at the sending 
25 racetracks pursuant to rules established
by the Board. All 
26 licensees combining their gross pools
at a
sending 
 
 
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1 racetrack shall adopt the take-out percentages of the 
2 sending
racetrack.
A licensee may also establish a separate 
3 pool and takeout structure for
wagering purposes on races 
4 conducted at race tracks outside of the
State of Illinois. 
5 The licensee may permit pari-mutuel wagers placed in other

6 states or
countries to be combined with its gross or net 
7 wagering pools or other
wagering pools.


8  (5) After the payment of the interstate commission fee 
9 (except for the
interstate commission
fee on a supplemental 
10 interstate simulcast, which shall be paid by the host
track 
11 and by each non-host licensee through the host-track) and 
12 all applicable
State and local
taxes, except as provided in 
13 subsection (g) of Section 27 of this Act, the
remainder of 
14 moneys retained from simulcast wagering pursuant to this

15 subsection (g), and Section 26.2 shall be divided as 
16 follows:


17   (A) For interstate simulcast wagers made at a host 
18 track, 50% to the
host
track and 50% to purses at the 
19 host track.


20   (B) For wagers placed on interstate simulcast 
21 races, supplemental
simulcasts as defined in 
22 subparagraphs (1) and (2), and separately pooled races

23 conducted outside of the State of Illinois made at a 
24 non-host
licensee, 25% to the host
track, 25% to the 
25 non-host licensee, and 50% to the purses at the host 
26 track.


 
 
09800SB1739sam001- 278 -LRB098 10559 AMC 42403 a


1  (6) Notwithstanding any provision in this Act to the 
2 contrary, non-host
licensees
who derive their licenses 
3 from a track located in a county with a population in

4 excess of 230,000 and that borders the Mississippi River 
5 may receive
supplemental interstate simulcast races at all 
6 times subject to Board approval,
which shall be withheld 
7 only upon a finding that a supplemental interstate

8 simulcast is clearly adverse to the integrity of racing.


9  (7) Notwithstanding any provision of this Act to the 
10 contrary, after
payment of all applicable State and local 
11 taxes and interstate commission fees,
non-host licensees 
12 who derive their licenses from a track located in a county

13 with a population in excess of 230,000 and that borders the 
14 Mississippi River
shall retain 50% of the retention from 
15 interstate simulcast wagers and shall
pay 50% to purses at 
16 the track from which the non-host licensee derives its

17 license as follows:


18   (A) Between January 1 and the third Friday in 
19 February, inclusive, if no
live thoroughbred racing is 
20 occurring in Illinois during this period, when the

21 interstate simulcast is a standardbred race, the purse 
22 share to its
standardbred purse account;


23   (B) Between January 1 and the third Friday in 
24 February, inclusive, if no
live thoroughbred racing is 
25 occurring in Illinois during this period, and the

26 interstate simulcast is a thoroughbred race, the purse 
 
 
09800SB1739sam001- 279 -LRB098 10559 AMC 42403 a


1 share to its interstate
simulcast purse pool to be 
2 distributed under paragraph (10) of this subsection

3 (g);


4   (C) Between January 1 and the third Friday in 
5 February, inclusive, if
live thoroughbred racing is 
6 occurring in Illinois, between 6:30 a.m. and 6:30
p.m. 
7 the purse share from wagers made during this time 
8 period to its
thoroughbred purse account and between 
9 6:30 p.m. and 6:30 a.m. the purse share
from wagers 
10 made during this time period to its standardbred purse 
11 accounts;


12   (D) Between the third Saturday in February and 
13 December 31, when the
interstate simulcast occurs 
14 between the hours of 6:30 a.m. and 6:30 p.m., the
purse 
15 share to its thoroughbred purse account;


16   (E) Between the third Saturday in February and 
17 December 31, when the
interstate simulcast occurs 
18 between the hours of 6:30 p.m. and 6:30 a.m., the
purse 
19 share to its standardbred purse account.


20  (7.1) Notwithstanding any other provision of this Act 
21 to the contrary,
if
no
standardbred racing is conducted at 
22 a racetrack located in Madison County
during any
calendar 
23 year beginning on or after January 1, 2002, all
moneys 
24 derived by
that racetrack from simulcast wagering and 
25 inter-track wagering that (1) are to
be used
for purses and 
26 (2) are generated between the hours of 6:30 p.m. and 6:30 
 
 
09800SB1739sam001- 280 -LRB098 10559 AMC 42403 a


1 a.m.
during that
calendar year shall
be paid as follows:


2   (A) If the licensee that conducts horse racing at 
3 that racetrack
requests from the Board at least as many 
4 racing dates as were conducted in
calendar year 2000, 
5 80% shall be paid to its thoroughbred purse account; 
6 and


7   (B) Twenty percent shall be deposited into the 
8 Illinois Colt Stakes
Purse
Distribution
Fund and shall 
9 be paid to purses for standardbred races for Illinois 
10 conceived
and foaled horses conducted at any county 
11 fairgrounds.
The moneys deposited into the Fund 
12 pursuant to this subparagraph (B) shall be
deposited

13 within 2
weeks after the day they were generated, shall 
14 be in addition to and not in
lieu of any other
moneys 
15 paid to standardbred purses under this Act, and shall 
16 not be commingled
with other moneys paid into that 
17 Fund. The moneys deposited
pursuant to this 
18 subparagraph (B) shall be allocated as provided by the

19 Department of Agriculture, with the advice and 
20 assistance of the Illinois
Standardbred
Breeders Fund 
21 Advisory Board.


22  (7.2) Notwithstanding any other provision of this Act 
23 to the contrary, if
no
thoroughbred racing is conducted at 
24 a racetrack located in Madison County
during any
calendar 
25 year beginning on or after January 1,
2002, all
moneys 
26 derived by
that racetrack from simulcast wagering and 
 
 
09800SB1739sam001- 281 -LRB098 10559 AMC 42403 a


1 inter-track wagering that (1) are to
be used
for purses and 
2 (2) are generated between the hours of 6:30 a.m. and 6:30 
3 p.m.
during that
calendar year shall
be deposited as 
4 follows:


5   (A) If the licensee that conducts horse racing at 
6 that racetrack
requests from the
Board at least
as many 
7 racing dates as were conducted in calendar year 2000, 
8 80%
shall be deposited into its standardbred purse

9 account; and


10   (B) Twenty percent shall be deposited into the 
11 Illinois Colt Stakes
Purse
Distribution Fund. Moneys 
12 deposited into the Illinois Colt Stakes Purse

13 Distribution Fund
pursuant to this subparagraph (B) 
14 shall be paid to Illinois
conceived and foaled 
15 thoroughbred breeders' programs
and to thoroughbred 
16 purses for races conducted at any county fairgrounds 
17 for
Illinois conceived
and foaled horses at the 
18 discretion of the
Department of Agriculture, with the 
19 advice and assistance of
the Illinois Thoroughbred 
20 Breeders Fund Advisory
Board. The moneys deposited 
21 into the Illinois Colt Stakes Purse Distribution
Fund

22 pursuant to this subparagraph (B) shall be deposited 
23 within 2 weeks
after the day they were generated, shall 
24 be in addition to and not in
lieu of any other moneys 
25 paid to thoroughbred purses
under this Act, and shall 
26 not be commingled with other moneys deposited into
that 
 
 
09800SB1739sam001- 282 -LRB098 10559 AMC 42403 a


1 Fund.


2  (7.3) If no live standardbred racing is conducted at a 
3 racetrack located
in
Madison
County in calendar year 2000 
4 or 2001,
an organization licensee who is licensed
to 
5 conduct horse racing at that racetrack shall, before 
6 January 1, 2002, pay
all
moneys derived from simulcast 
7 wagering and inter-track wagering in calendar
years 2000 
8 and 2001 and
paid into the licensee's standardbred purse 
9 account as follows:


10   (A) Eighty percent to that licensee's thoroughbred 
11 purse account to
be used for thoroughbred purses; and


12   (B) Twenty percent to the Illinois Colt Stakes 
13 Purse Distribution
Fund.


14  Failure to make the payment to the Illinois Colt Stakes 
15 Purse Distribution
Fund before January 1, 2002
shall
result 
16 in the immediate revocation of the licensee's organization

17 license, inter-track wagering license, and inter-track 
18 wagering location
license.


19  Moneys paid into the Illinois
Colt Stakes Purse 
20 Distribution Fund pursuant to this
paragraph (7.3) shall be 
21 paid to purses for standardbred
races for Illinois 
22 conceived and foaled horses conducted
at any county

23 fairgrounds.
Moneys paid into the Illinois
Colt Stakes 
24 Purse Distribution Fund pursuant to this
paragraph (7.3) 
25 shall be used as determined by the
Department of 
26 Agriculture, with the advice and assistance of the
Illinois 
 
 
09800SB1739sam001- 283 -LRB098 10559 AMC 42403 a


1 Standardbred Breeders Fund Advisory Board, shall be in 
2 addition to
and not in lieu of any other moneys paid to 
3 standardbred purses under this Act,
and shall not be 
4 commingled
with any other moneys paid into that Fund.


5  (7.4) If live standardbred racing is conducted at a 
6 racetrack located in
Madison
County at any time in calendar 
7 year 2001 before the payment required
under
paragraph (7.3) 
8 has been made, the organization licensee who is licensed to

9 conduct
racing at that racetrack shall pay all moneys 
10 derived by that racetrack from
simulcast
wagering and 
11 inter-track wagering during calendar years 2000 and 2001 
12 that (1)
are to be
used for purses and (2) are generated 
13 between the hours of 6:30 p.m. and 6:30
a.m.
during 2000 or 
14 2001 to the standardbred purse account at that
racetrack to

15 be used for standardbred purses.


16  (8) Notwithstanding any provision in this Act to the 
17 contrary, an
organization licensee from a track located in 
18 a county with a population in
excess of 230,000 and that 
19 borders the Mississippi River and its affiliated
non-host 
20 licensees shall not be entitled to share in any retention 
21 generated on
racing, inter-track wagering, or simulcast 
22 wagering at any other Illinois
wagering facility.


23  (8.1) Notwithstanding any provisions in this Act to the 
24 contrary, if 2
organization licensees
are conducting 
25 standardbred race meetings concurrently
between the hours 
26 of 6:30 p.m. and 6:30 a.m., after payment of all applicable

 
 
09800SB1739sam001- 284 -LRB098 10559 AMC 42403 a


1 State and local taxes and interstate commission fees, the 
2 remainder of the
amount retained from simulcast wagering 
3 otherwise attributable to the host
track and to host track 
4 purses shall be split daily between the 2
organization 
5 licensees and the purses at the tracks of the 2 
6 organization
licensees, respectively, based on each 
7 organization licensee's share
of the total live handle for 
8 that day,
provided that this provision shall not apply to 
9 any non-host licensee that
derives its license from a track 
10 located in a county with a population in
excess of 230,000 
11 and that borders the Mississippi River.


12  (9) (Blank).


13  (10) (Blank).


14  (11) (Blank).


15  (12) The Board shall have authority to compel all host 
16 tracks to receive
the simulcast of any or all races 
17 conducted at the Springfield or DuQuoin State
fairgrounds 
18 and include all such races as part of their simulcast 
19 programs.


20  (13) Notwithstanding any other provision of this Act, 
21 in the event that
the total Illinois pari-mutuel handle on 
22 Illinois horse races at all wagering
facilities in any 
23 calendar year is less than 75% of the total Illinois

24 pari-mutuel handle on Illinois horse races at all such 
25 wagering facilities for
calendar year 1994, then each 
26 wagering facility that has an annual total
Illinois 
 
 
09800SB1739sam001- 285 -LRB098 10559 AMC 42403 a


1 pari-mutuel handle on Illinois horse races that is less 
2 than 75% of
the total Illinois pari-mutuel handle on 
3 Illinois horse races at such wagering
facility for calendar 
4 year 1994, shall be permitted to receive, from any amount

5 otherwise
payable to the purse account at the race track 
6 with which the wagering facility
is affiliated in the 
7 succeeding calendar year, an amount equal to 2% of the

8 differential in total Illinois pari-mutuel handle on 
9 Illinois horse
races at the wagering facility between that 
10 calendar year in question and 1994
provided, however, that 
11 a
wagering facility shall not be entitled to any such 
12 payment until the Board
certifies in writing to the 
13 wagering facility the amount to which the wagering
facility 
14 is entitled
and a schedule for payment of the amount to the 
15 wagering facility, based on:
(i) the racing dates awarded 
16 to the race track affiliated with the wagering
facility 
17 during the succeeding year; (ii) the sums available or 
18 anticipated to
be available in the purse account of the 
19 race track affiliated with the
wagering facility for purses 
20 during the succeeding year; and (iii) the need to
ensure 
21 reasonable purse levels during the payment period.
The 
22 Board's certification
shall be provided no later than 
23 January 31 of the succeeding year.
In the event a wagering 
24 facility entitled to a payment under this paragraph
(13) is 
25 affiliated with a race track that maintains purse accounts 
26 for both
standardbred and thoroughbred racing, the amount 
 
 
09800SB1739sam001- 286 -LRB098 10559 AMC 42403 a


1 to be paid to the wagering
facility shall be divided 
2 between each purse account pro rata, based on the
amount of 
3 Illinois handle on Illinois standardbred and thoroughbred 
4 racing
respectively at the wagering facility during the 
5 previous calendar year.
Annually, the General Assembly 
6 shall appropriate sufficient funds from the
General 
7 Revenue Fund to the Department of Agriculture for payment 
8 into the
thoroughbred and standardbred horse racing purse 
9 accounts at
Illinois pari-mutuel tracks. The amount paid to 
10 each purse account shall be
the amount certified by the 
11 Illinois Racing Board in January to be
transferred from 
12 each account to each eligible racing facility in
accordance 
13 with the provisions of this Section. Beginning in the 
14 calendar year in which an organization licensee that is 
15 eligible to receive payment under this paragraph (13) 
16 begins to receive funds from electronic gaming, the amount 
17 of the payment due to all wagering facilities licensed 
18 under that organization licensee under this paragraph (13) 
19 shall be the amount certified by the Board in January of 
20 that year. An organization licensee and its related 
21 wagering facilities shall no longer be able to receive 
22 payments under this paragraph (13) beginning in the year 
23 subsequent to the first year in which the organization 
24 licensee begins to receive funds from electronic gaming.

25 (h) The Board may approve and license the conduct of 
26inter-track wagering
and simulcast wagering by inter-track 
 
 
09800SB1739sam001- 287 -LRB098 10559 AMC 42403 a


1wagering licensees and inter-track
wagering location licensees 
2subject to the following terms and conditions:


3  (1) Any person licensed to conduct a race meeting (i) 
4 at a track where
60 or more days of racing were conducted 
5 during the immediately preceding
calendar year or where 
6 over the 5 immediately preceding calendar years an
average 
7 of 30 or more days of racing were conducted annually may be 
8 issued an
inter-track wagering license; (ii) at a track

9 located in a county that is bounded by the Mississippi 
10 River, which has a
population of less than 150,000 
11 according to the 1990 decennial census, and an
average of 
12 at least 60 days of racing per year between 1985 and 1993 
13 may be
issued an inter-track wagering license; or (iii) at 
14 a track
located in Madison
County that conducted at least 
15 100 days of live racing during the immediately
preceding

16 calendar year may be issued an inter-track wagering 
17 license, unless a lesser
schedule of
live racing is the 
18 result of (A) weather, unsafe track conditions, or other

19 acts of God; (B)
an agreement between the organization 
20 licensee and the associations
representing the
largest 
21 number of owners, trainers, jockeys, or standardbred 
22 drivers who race
horses at
that organization licensee's 
23 racing meeting; or (C) a finding by the Board of

24 extraordinary circumstances and that it was in the best 
25 interest of the public
and the sport to conduct fewer than 
26 100 days of live racing. Any such person
having operating 
 
 
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1 control of the racing facility may also receive up to 6

2 inter-track wagering
location licenses. In no event shall 
3 more than 6 inter-track wagering
locations be established 
4 for each eligible race track, except that an
eligible race 
5 track located in a county that has a population of more 
6 than
230,000 and that is bounded by the Mississippi River 
7 may establish up to 7
inter-track wagering locations.
An 
8 application for
said license shall be filed with the Board 
9 prior to such dates as may be
fixed by the Board. With an 
10 application for an inter-track
wagering
location license 
11 there shall be delivered to the Board a certified check or

12 bank draft payable to the order of the Board for an amount 
13 equal to $500.
The application shall be on forms prescribed 
14 and furnished by the Board. The
application shall comply 
15 with all other rules,
regulations and conditions imposed by 
16 the Board in connection therewith.


17  (2) The Board shall examine the applications with 
18 respect to their
conformity with this Act and the rules and 
19 regulations imposed by the
Board. If found to be in 
20 compliance with the Act and rules and regulations
of the 
21 Board, the Board may then issue a license to conduct 
22 inter-track
wagering and simulcast wagering to such 
23 applicant. All such applications
shall be acted upon by the 
24 Board at a meeting to be held on such date as may be
fixed 
25 by the Board.


26  (3) In granting licenses to conduct inter-track 
 
 
09800SB1739sam001- 289 -LRB098 10559 AMC 42403 a


1 wagering and simulcast
wagering, the Board shall give due 
2 consideration to
the best interests of the
public, of horse 
3 racing, and of maximizing revenue to the State.


4  (4) Prior to the issuance of a license to conduct 
5 inter-track wagering
and simulcast wagering,
the applicant 
6 shall file with the Board a bond payable to the State of 
7 Illinois
in the sum of $50,000, executed by the applicant 
8 and a surety company or
companies authorized to do business 
9 in this State, and conditioned upon
(i) the payment by the 
10 licensee of all taxes due under Section 27 or 27.1
and any 
11 other monies due and payable under this Act, and (ii)

12 distribution by the licensee, upon presentation of the 
13 winning ticket or
tickets, of all sums payable to the 
14 patrons of pari-mutuel pools.


15  (5) Each license to conduct inter-track wagering and 
16 simulcast
wagering shall specify the person
to whom it is 
17 issued, the dates on which such wagering is permitted, and

18 the track or location where the wagering is to be 
19 conducted.


20  (6) All wagering under such license is subject to this 
21 Act and to the
rules and regulations from time to time 
22 prescribed by the Board, and every
such license issued by 
23 the Board shall contain a recital to that effect.


24  (7) An inter-track wagering licensee or inter-track 
25 wagering location
licensee may accept wagers at the track 
26 or location
where it is licensed, or as otherwise provided 
 
 
09800SB1739sam001- 290 -LRB098 10559 AMC 42403 a


1 under this Act.


2  (8) Inter-track wagering or simulcast wagering shall 
3 not be
conducted
at any track less than 4 5 miles from a 
4 track at which a racing meeting is in
progress.


5  (8.1) Inter-track wagering location
licensees who 
6 derive their licenses from a particular organization 
7 licensee
shall conduct inter-track wagering and simulcast 
8 wagering only at locations
which are either within 90
miles 
9 of that race track where the particular organization 
10 licensee is
licensed to conduct racing, or within 135 miles 
11 of that race track
where
the particular organization 
12 licensee is licensed to conduct racing
in the case
of race 
13 tracks in counties of less than 400,000 that were operating 
14 on or
before June 1, 1986. However, inter-track wagering 
15 and simulcast wagering
shall not
be conducted by those 
16 licensees at any location within 5 miles of any race
track 
17 at which a
horse race meeting has been licensed in the 
18 current year, unless the person
having operating control of 
19 such race track has given its written consent
to such 
20 inter-track wagering location licensees,
which consent

21 must be filed with the Board at or prior to the time 
22 application is made.


23  (8.2) Inter-track wagering or simulcast wagering shall 
24 not be
conducted by an inter-track
wagering location 
25 licensee at any location within 500 feet of an
existing

26 church, an or existing elementary or secondary public 
 
 
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1 school, or an existing elementary or secondary private 
2 school registered with or recognized by the State Board of 
3 Education school, nor within 500 feet of the residences
of 
4 more than 50 registered voters without
receiving written 
5 permission from a majority of the registered
voters at such 
6 residences.
Such written permission statements shall be 
7 filed with the Board. The
distance of 500 feet shall be 
8 measured to the nearest part of any
building
used for 
9 worship services, education programs, residential 
10 purposes, or
conducting inter-track wagering by an 
11 inter-track wagering location
licensee, and not to 
12 property boundaries. However, inter-track wagering or

13 simulcast wagering may be conducted at a site within 500 
14 feet of
a church, school or residences
of 50 or more 
15 registered voters if such church, school
or residences have 
16 been erected
or established, or such voters have been 
17 registered, after
the Board issues
the original 
18 inter-track wagering location license at the site in 
19 question.
Inter-track wagering location licensees may 
20 conduct inter-track wagering
and simulcast wagering only 
21 in areas that are zoned for
commercial or manufacturing 
22 purposes or
in areas for which a special use has been 
23 approved by the local zoning
authority. However, no license 
24 to conduct inter-track wagering and simulcast
wagering 
25 shall be
granted by the Board with respect to any 
26 inter-track wagering location
within the jurisdiction of 
 
 
09800SB1739sam001- 292 -LRB098 10559 AMC 42403 a


1 any local zoning authority which has, by
ordinance or by 
2 resolution, prohibited the establishment of an inter-track

3 wagering location within its jurisdiction. However, 
4 inter-track wagering
and simulcast wagering may be 
5 conducted at a site if such ordinance or
resolution is 
6 enacted after
the Board licenses the original inter-track 
7 wagering location
licensee for the site in question.


8  (9) (Blank).


9  (10) An inter-track wagering licensee or an 
10 inter-track wagering
location licensee may retain, subject 
11 to the
payment of the privilege taxes and the purses, an 
12 amount not to
exceed 17% of all money wagered. Each program 
13 of racing conducted by
each inter-track wagering licensee 
14 or inter-track wagering location
licensee shall be 
15 considered a separate racing day for the purpose of

16 determining the daily handle and computing the privilege 
17 tax or pari-mutuel
tax on such daily
handle as provided in 
18 Section 27.


19  (10.1) Except as provided in subsection (g) of Section 
20 27 of this Act,
inter-track wagering location licensees 
21 shall pay 1% of the
pari-mutuel handle at each location to 
22 the municipality in which such
location is situated and 1% 
23 of the pari-mutuel handle at each location to
the county in 
24 which such location is situated. In the event that an

25 inter-track wagering location licensee is situated in an 
26 unincorporated
area of a county, such licensee shall pay 2% 
 
 
09800SB1739sam001- 293 -LRB098 10559 AMC 42403 a


1 of the pari-mutuel handle from
such location to such 
2 county.


3  (10.2) Notwithstanding any other provision of this 
4 Act, with respect to
intertrack wagering at a race track 
5 located in a
county that has a population of
more than 
6 230,000 and that is bounded by the Mississippi River ("the 
7 first race
track"), or at a facility operated by an 
8 inter-track wagering licensee or
inter-track wagering 
9 location licensee that derives its license from the

10 organization licensee that operates the first race track, 
11 on races conducted at
the first race track or on races 
12 conducted at another Illinois race track
and 
13 simultaneously televised to the first race track or to a 
14 facility operated
by an inter-track wagering licensee or 
15 inter-track wagering location licensee
that derives its 
16 license from the organization licensee that operates the 
17 first
race track, those moneys shall be allocated as 
18 follows:


19   (A) That portion of all moneys wagered on 
20 standardbred racing that is
required under this Act to 
21 be paid to purses shall be paid to purses for

22 standardbred races.


23   (B) That portion of all moneys wagered on 
24 thoroughbred racing
that is required under this Act to 
25 be paid to purses shall be paid to purses
for 
26 thoroughbred races.


 
 
09800SB1739sam001- 294 -LRB098 10559 AMC 42403 a


1  (11) (A) After payment of the privilege or pari-mutuel 
2 tax, any other
applicable
taxes, and
the costs and expenses 
3 in connection with the gathering, transmission, and

4 dissemination of all data necessary to the conduct of 
5 inter-track wagering,
the remainder of the monies retained 
6 under either Section 26 or Section 26.2
of this Act by the 
7 inter-track wagering licensee on inter-track wagering

8 shall be allocated with 50% to be split between the
2 
9 participating licensees and 50% to purses, except
that an 
10 intertrack wagering licensee that derives its
license from 
11 a track located in a county with a population in excess of 
12 230,000
and that borders the Mississippi River shall not 
13 divide any remaining
retention with the Illinois 
14 organization licensee that provides the race or
races, and 
15 an intertrack wagering licensee that accepts wagers on 
16 races
conducted by an organization licensee that conducts a 
17 race meet in a county
with a population in excess of 
18 230,000 and that borders the Mississippi River
shall not 
19 divide any remaining retention with that organization 
20 licensee.


21  (B) From the
sums permitted to be retained pursuant to 
22 this Act each inter-track wagering
location licensee shall 
23 pay (i) the privilege or pari-mutuel tax to the
State; (ii) 
24 4.75% of the
pari-mutuel handle on intertrack wagering at 
25 such location on
races as purses, except that
an intertrack 
26 wagering location licensee that derives its license from a

 
 
09800SB1739sam001- 295 -LRB098 10559 AMC 42403 a


1 track located in a county with a population in excess of 
2 230,000 and that
borders the Mississippi River shall retain 
3 all purse moneys for its own purse
account consistent with 
4 distribution set forth in this subsection (h), and

5 intertrack wagering location licensees that accept wagers 
6 on races
conducted
by an organization licensee located in a 
7 county with a population in excess of
230,000 and that 
8 borders the Mississippi River shall distribute all purse

9 moneys to purses at the operating host track; (iii) until 
10 January 1, 2000,
except as
provided in
subsection (g) of 
11 Section 27 of this Act, 1% of the
pari-mutuel handle 
12 wagered on inter-track wagering and simulcast wagering at

13 each inter-track wagering
location licensee facility to 
14 the Horse Racing Tax Allocation Fund, provided
that, to the 
15 extent the total amount collected and distributed to the 
16 Horse
Racing Tax Allocation Fund under this subsection (h) 
17 during any calendar year
exceeds the amount collected and 
18 distributed to the Horse Racing Tax Allocation
Fund during 
19 calendar year 1994, that excess amount shall be 
20 redistributed (I)
to all inter-track wagering location 
21 licensees, based on each licensee's
pro-rata share of the 
22 total handle from inter-track wagering and simulcast

23 wagering for all inter-track wagering location licensees 
24 during the calendar
year in which this provision is 
25 applicable; then (II) the amounts redistributed
to each 
26 inter-track wagering location licensee as described in 
 
 
09800SB1739sam001- 296 -LRB098 10559 AMC 42403 a


1 subpart (I)
shall be further redistributed as provided in 
2 subparagraph (B) of paragraph (5)
of subsection (g) of this 
3 Section 26 provided first, that the shares of those

4 amounts, which are to be redistributed to the host track or 
5 to purses at the
host track under subparagraph (B) of 
6 paragraph (5) of subsection (g) of this
Section 26 shall be

7 redistributed based on each host track's pro rata share of 
8 the total
inter-track
wagering and simulcast wagering 
9 handle at all host tracks during the calendar
year in 
10 question, and second, that any amounts redistributed as 
11 described in
part (I) to an inter-track wagering location 
12 licensee that accepts
wagers on races conducted by an 
13 organization licensee that conducts a race meet
in a county 
14 with a population in excess of 230,000 and that borders the

15 Mississippi River shall be further redistributed as 
16 provided in subparagraphs
(D) and (E) of paragraph (7) of 
17 subsection (g) of this Section 26, with the
portion of that

18 further redistribution allocated to purses at that 
19 organization licensee to be
divided between standardbred 
20 purses and thoroughbred purses based on the
amounts 
21 otherwise allocated to purses at that organization 
22 licensee during the
calendar year in question; and (iv) 8% 
23 of the pari-mutuel handle on
inter-track wagering wagered 
24 at
such location to satisfy all costs and expenses of 
25 conducting its wagering. The
remainder of the monies 
26 retained by the inter-track wagering location licensee

 
 
09800SB1739sam001- 297 -LRB098 10559 AMC 42403 a


1 shall be allocated 40% to the location licensee and 60% to 
2 the organization
licensee which provides the Illinois 
3 races to the location, except that an
intertrack wagering 
4 location
licensee that derives its license from a track 
5 located in a county with a
population in excess of 230,000 
6 and that borders the Mississippi River shall
not divide any 
7 remaining retention with the organization licensee that 
8 provides
the race or races and an intertrack wagering 
9 location licensee that accepts
wagers on races conducted by 
10 an organization licensee that conducts a race meet
in a 
11 county with a population in excess of 230,000 and that 
12 borders the
Mississippi River shall not divide any 
13 remaining retention with the
organization licensee.

14 Notwithstanding the provisions of clauses (ii) and (iv) of 
15 this
paragraph, in the case of the additional inter-track 
16 wagering location licenses
authorized under paragraph (1) 
17 of this subsection (h) by this amendatory
Act of 1991, 
18 those licensees shall pay the following amounts as purses:

19 during the first 12 months the licensee is in operation, 
20 5.25% of
the
pari-mutuel handle wagered at the location on 
21 races; during the second 12
months, 5.25%; during the third 
22 12 months, 5.75%;
during
the fourth 12 months,
6.25%; and 
23 during the fifth 12 months and thereafter, 6.75%. The

24 following amounts shall be retained by the licensee to 
25 satisfy all costs
and expenses of conducting its wagering: 
26 during the first 12 months the
licensee is in operation, 
 
 
09800SB1739sam001- 298 -LRB098 10559 AMC 42403 a


1 8.25% of the pari-mutuel handle wagered
at the
location; 
2 during the second 12 months, 8.25%; during the third 12

3 months, 7.75%;
during the fourth 12 months, 7.25%; and 
4 during the fifth 12 months
and
thereafter, 6.75%.
For 
5 additional intertrack wagering location licensees 
6 authorized under this
amendatory
Act of 1995, purses for 
7 the first 12 months the licensee is in operation shall
be 
8 5.75% of the pari-mutuel wagered
at the location, purses 
9 for the second 12 months the licensee is in operation
shall 
10 be 6.25%, and purses
thereafter shall be 6.75%. For 
11 additional intertrack location
licensees
authorized under

12 this amendatory Act of 1995, the licensee shall be allowed 
13 to retain to satisfy
all costs and expenses: 7.75% of the 
14 pari-mutuel handle wagered at
the location
during its first 
15 12 months of operation, 7.25% during its second
12
months 
16 of
operation, and 6.75% thereafter.


17  (C) There is hereby created the Horse Racing Tax 
18 Allocation Fund
which shall remain in existence until 
19 December 31, 1999. Moneys
remaining in the Fund after 
20 December 31, 1999
shall be paid into the
General Revenue 
21 Fund. Until January 1, 2000,
all monies paid into the Horse 
22 Racing Tax Allocation Fund pursuant to this
paragraph (11) 
23 by inter-track wagering location licensees located in park

24 districts of 500,000 population or less, or in a 
25 municipality that is not
included within any park district 
26 but is included within a conservation
district and is the 
 
 
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1 county seat of a county that (i) is contiguous to the state

2 of Indiana and (ii) has a 1990 population of 88,257 
3 according to the United
States Bureau of the Census, and 
4 operating on May 1, 1994 shall be
allocated by 
5 appropriation as follows:


6   Two-sevenths to the Department of Agriculture. 
7 Fifty percent of
this two-sevenths shall be used to 
8 promote the Illinois horse racing and
breeding 
9 industry, and shall be distributed by the Department of 
10 Agriculture
upon the advice of a 9-member committee 
11 appointed by the Governor consisting of
the following 
12 members: the Director of Agriculture, who shall serve 
13 as
chairman; 2 representatives of organization 
14 licensees conducting thoroughbred
race meetings in 
15 this State, recommended by those licensees; 2 
16 representatives
of organization licensees conducting 
17 standardbred race meetings in this State,
recommended 
18 by those licensees; a representative of the Illinois

19 Thoroughbred Breeders and Owners Foundation, 
20 recommended by that
Foundation; a representative of 
21 the Illinois Standardbred Owners and
Breeders 
22 Association, recommended
by that Association; a 
23 representative of
the Horsemen's Benevolent and 
24 Protective Association or any successor
organization 
25 thereto established in Illinois comprised of the 
26 largest number of
owners, breeders, and trainers, 
 
 
09800SB1739sam001- 300 -LRB098 10559 AMC 42403 a


1 recommended by that
Association or that successor 
2 organization; and a
representative of the Illinois 
3 Harness Horsemen's
Association, recommended by that 
4 Association. Committee members shall
serve for terms 
5 of 2 years, commencing January 1 of each even-numbered

6 year. If a representative of any of the above-named 
7 entities has not been
recommended by January 1 of any 
8 even-numbered year, the Governor shall
appoint a 
9 committee member to fill that position. Committee 
10 members shall
receive no compensation for their 
11 services as members but shall be
reimbursed for all 
12 actual and necessary expenses and disbursements 
13 incurred
in the performance of their official duties. 
14 The remaining 50% of this
two-sevenths shall be 
15 distributed to county fairs for premiums and

16 rehabilitation as set forth in the Agricultural Fair 
17 Act;


18   Four-sevenths to park districts or municipalities 
19 that do not have a
park district of 500,000 population 
20 or less for museum purposes (if an
inter-track wagering 
21 location licensee is located in such a park district) 
22 or
to conservation districts for museum purposes (if an 
23 inter-track wagering
location licensee is located in a 
24 municipality that is not included within any
park 
25 district but is included within a conservation 
26 district and is the county
seat of a county that (i) is 
 
 
09800SB1739sam001- 301 -LRB098 10559 AMC 42403 a


1 contiguous to the state of Indiana and (ii) has a
1990 
2 population of 88,257 according to the United States 
3 Bureau of the Census,
except that if the conservation 
4 district does not maintain a museum, the monies
shall 
5 be allocated equally between the county and the 
6 municipality in which the
inter-track wagering 
7 location licensee is located for general purposes) or 
8 to a
municipal recreation board for park purposes (if 
9 an inter-track wagering
location licensee is located 
10 in a municipality that is not included within any
park 
11 district and park maintenance is the function of the 
12 municipal recreation
board and the municipality has a 
13 1990 population of 9,302 according to the
United States 
14 Bureau of the Census); provided that the monies are 
15 distributed
to each park district or conservation 
16 district or municipality that does not
have a park 
17 district in an amount equal to four-sevenths of the 
18 amount
collected by each inter-track wagering location 
19 licensee within the park
district or conservation 
20 district or municipality for the Fund. Monies that
were 
21 paid into the Horse Racing Tax Allocation Fund before 
22 the effective date
of this amendatory Act of 1991 by an 
23 inter-track wagering location licensee
located in a 
24 municipality that is not included within any park 
25 district but is
included within a conservation 
26 district as provided in this paragraph shall, as
soon 
 
 
09800SB1739sam001- 302 -LRB098 10559 AMC 42403 a


1 as practicable after the effective date of this 
2 amendatory Act of 1991, be
allocated and paid to that 
3 conservation district as provided in this paragraph.

4 Any park district or municipality not maintaining a 
5 museum may deposit the
monies in the corporate fund of 
6 the park district or municipality where the

7 inter-track wagering location is located, to be used 
8 for general purposes;
and


9   One-seventh to the Agricultural Premium Fund to be 
10 used for distribution
to agricultural home economics 
11 extension councils in accordance with "An
Act in 
12 relation to additional support and finances for the 
13 Agricultural and
Home Economic Extension Councils in 
14 the several counties of this State and
making an 
15 appropriation therefor", approved July 24, 1967.


16  Until January 1, 2000, all other
monies paid into the 
17 Horse Racing Tax
Allocation Fund pursuant to
this paragraph 
18 (11) shall be allocated by appropriation as follows:


19   Two-sevenths to the Department of Agriculture. 
20 Fifty percent of this
two-sevenths shall be used to 
21 promote the Illinois horse racing and breeding

22 industry, and shall be distributed by the Department of 
23 Agriculture upon the
advice of a 9-member committee 
24 appointed by the Governor consisting of the
following 
25 members: the Director of Agriculture, who shall serve 
26 as chairman; 2
representatives of organization 
 
 
09800SB1739sam001- 303 -LRB098 10559 AMC 42403 a


1 licensees conducting thoroughbred race meetings
in 
2 this State, recommended by those licensees; 2 
3 representatives of
organization licensees conducting 
4 standardbred race meetings in this State,
recommended 
5 by those licensees; a representative of the Illinois 
6 Thoroughbred
Breeders and Owners Foundation, 
7 recommended by that Foundation; a
representative of 
8 the Illinois Standardbred Owners and Breeders 
9 Association,
recommended by that Association; a 
10 representative of the Horsemen's Benevolent
and 
11 Protective Association or any successor organization 
12 thereto established
in Illinois comprised of the 
13 largest number of owners, breeders, and trainers,

14 recommended by that Association or that successor 
15 organization; and a
representative of the Illinois 
16 Harness Horsemen's Association, recommended by
that 
17 Association. Committee members shall serve for terms 
18 of 2 years,
commencing January 1 of each even-numbered 
19 year. If a representative of any of
the above-named 
20 entities has not been recommended by January 1 of any

21 even-numbered year, the Governor shall appoint a 
22 committee member to fill that
position. Committee 
23 members shall receive no compensation for their 
24 services
as members but shall be reimbursed for all 
25 actual and necessary expenses and
disbursements 
26 incurred in the performance of their official duties. 
 
 
09800SB1739sam001- 304 -LRB098 10559 AMC 42403 a


1 The
remaining 50% of this two-sevenths shall be 
2 distributed to county fairs for
premiums and 
3 rehabilitation as set forth in the Agricultural Fair 
4 Act;


5   Four-sevenths to museums and aquariums located in 
6 park districts of over
500,000 population; provided 
7 that the monies are distributed in accordance with
the 
8 previous year's distribution of the maintenance tax 
9 for such museums and
aquariums as provided in Section 2 
10 of the Park District Aquarium and Museum
Act; and


11   One-seventh to the Agricultural Premium Fund to be 
12 used for distribution
to agricultural home economics 
13 extension councils in accordance with "An Act
in 
14 relation to additional support and finances for the 
15 Agricultural and
Home Economic Extension Councils in 
16 the several counties of this State and
making an 
17 appropriation therefor", approved July 24, 1967.
This 
18 subparagraph (C) shall be inoperative and of no force 
19 and effect on and
after January 1, 2000.


20   (D) Except as provided in paragraph (11) of this 
21 subsection (h),
with respect to purse allocation from 
22 intertrack wagering, the monies so
retained shall be 
23 divided as follows:


24    (i) If the inter-track wagering licensee, 
25 except an intertrack
wagering licensee that 
26 derives its license from an organization
licensee 
 
 
09800SB1739sam001- 305 -LRB098 10559 AMC 42403 a


1 located in a county with a population in excess of 
2 230,000 and bounded
by the Mississippi River, is 
3 not conducting its own
race meeting during the same 
4 dates, then the entire purse allocation shall be
to 
5 purses at the track where the races wagered on are 
6 being conducted.


7    (ii) If the inter-track wagering licensee, 
8 except an intertrack
wagering licensee that 
9 derives its license from an organization
licensee 
10 located in a county with a population in excess of 
11 230,000 and bounded
by the Mississippi River, is 
12 also
conducting its own
race meeting during the 
13 same dates, then the purse allocation shall be as

14 follows: 50% to purses at the track where the races 
15 wagered on are
being conducted; 50% to purses at 
16 the track where the inter-track
wagering licensee 
17 is accepting such wagers.


18    (iii) If the inter-track wagering is being 
19 conducted by an inter-track
wagering location 
20 licensee, except an intertrack wagering location 
21 licensee
that derives its license from an 
22 organization licensee located in a
county with a 
23 population in excess of 230,000 and bounded by the 
24 Mississippi
River, the entire purse allocation for 
25 Illinois races shall
be to purses at the track 
26 where the race meeting being wagered on is being

 
 
09800SB1739sam001- 306 -LRB098 10559 AMC 42403 a


1 held.


2  (12) The Board shall have all powers necessary and 
3 proper to fully
supervise and control the conduct of

4 inter-track wagering and simulcast
wagering by inter-track 
5 wagering licensees and inter-track wagering location

6 licensees, including, but not
limited to the following:


7   (A) The Board is vested with power to promulgate 
8 reasonable rules and
regulations for the purpose of 
9 administering the
conduct of this
wagering and to 
10 prescribe reasonable rules, regulations and conditions 
11 under
which such wagering shall be held and conducted. 
12 Such rules and regulations
are to provide for the 
13 prevention of practices detrimental to the public

14 interest and for
the best interests of said wagering 
15 and to impose penalties
for violations thereof.


16   (B) The Board, and any person or persons to whom it 
17 delegates this
power, is vested with the power to enter 
18 the
facilities of any licensee to determine whether 
19 there has been
compliance with the provisions of this 
20 Act and the rules and regulations
relating to the 
21 conduct of such wagering.


22   (C) The Board, and any person or persons to whom it 
23 delegates this
power, may eject or exclude from any 
24 licensee's facilities, any person whose
conduct or 
25 reputation
is such that his presence on such premises 
26 may, in the opinion of the Board,
call into the 
 
 
09800SB1739sam001- 307 -LRB098 10559 AMC 42403 a


1 question the honesty and integrity of, or interfere 
2 with the
orderly conduct of such wagering; provided, 
3 however, that no person shall
be excluded or ejected 
4 from such premises solely on the grounds of race,

5 color, creed, national origin, ancestry, or sex.


6   (D) (Blank).


7   (E) The Board is vested with the power to appoint 
8 delegates to execute
any of the powers granted to it 
9 under this Section for the purpose of
administering 
10 this wagering and any
rules and
regulations

11 promulgated in accordance with this Act.


12   (F) The Board shall name and appoint a State 
13 director of this wagering
who shall be a representative 
14 of the Board and whose
duty it shall
be to supervise 
15 the conduct of inter-track wagering as may be provided 
16 for
by the rules and regulations of the Board; such 
17 rules and regulation shall
specify the method of 
18 appointment and the Director's powers, authority and

19 duties.


20   (G) The Board is vested with the power to impose 
21 civil penalties of up
to $5,000 against individuals and 
22 up to $10,000 against
licensees for each violation of 
23 any provision of
this Act relating to the conduct of 
24 this wagering, any
rules adopted
by the Board, any 
25 order of the Board or any other action which in the 
26 Board's
discretion, is a detriment or impediment to 
 
 
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1 such wagering.


2  (13) The Department of Agriculture may enter into 
3 agreements with
licensees authorizing such licensees to 
4 conduct inter-track
wagering on races to be held at the 
5 licensed race meetings conducted by the
Department of 
6 Agriculture. Such
agreement shall specify the races of the 
7 Department of Agriculture's
licensed race meeting upon 
8 which the licensees will conduct wagering. In the
event 
9 that a licensee
conducts inter-track pari-mutuel wagering 
10 on races from the Illinois State Fair
or DuQuoin State Fair 
11 which are in addition to the licensee's previously
approved 
12 racing program, those races shall be considered a separate 
13 racing day
for the
purpose of determining the daily handle 
14 and computing the privilege or
pari-mutuel tax on
that 
15 daily handle as provided in Sections 27
and 27.1. Such

16 agreements shall be approved by the Board before such 
17 wagering may be
conducted. In determining whether to grant 
18 approval, the Board shall give
due consideration to the 
19 best interests of the public and of horse racing.
The 
20 provisions of paragraphs (1), (8), (8.1), and (8.2) of

21 subsection (h) of this
Section which are not specified in 
22 this paragraph (13) shall not apply to
licensed race 
23 meetings conducted by the Department of Agriculture at the

24 Illinois State Fair in Sangamon County or the DuQuoin State 
25 Fair in Perry
County, or to any wagering conducted on
those 
26 race meetings.

 
 
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1 (i) Notwithstanding the other provisions of this Act, the 
2conduct of
wagering at wagering facilities is authorized on all 
3days, except as limited by
subsection (b) of Section 19 of this 
4Act.

5(Source: P.A. 96-762, eff. 8-25-09; 97-1060, eff. 8-24-12.)


6 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
7 Sec. 27. (a) In addition to the organization license fee 
8provided
by this Act, until January 1, 2000, a
graduated 
9privilege tax is hereby
imposed for conducting
the pari-mutuel 
10system of wagering permitted under this
Act. Until January 1, 
112000, except as provided in subsection (g) of
Section 27 of 
12this Act, all of
the breakage of each racing day held by any 
13licensee in the State shall be paid
to the State.
Until January 
141, 2000, such daily graduated privilege tax shall be paid by

15the
licensee from the amount permitted to be retained under 
16this Act.
Until January 1, 2000, each day's
graduated privilege 
17tax, breakage, and Horse Racing Tax Allocation
funds shall be 
18remitted to the Department of Revenue within 48 hours after the

19close of the racing day upon which it is assessed or within 
20such other time as
the Board prescribes. The privilege tax 
21hereby imposed, until January
1, 2000, shall be a flat tax at

22the rate of 2% of the daily pari-mutuel handle except as 
23provided in Section
27.1.
24 In addition, every organization licensee, except as

25provided in Section 27.1 of this Act, which conducts multiple

 
 
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1wagering shall pay, until January 1, 2000,
as a privilege tax 
2on multiple
wagers an amount
equal to 1.25% of all moneys 
3wagered each day on such multiple wagers,
plus an additional 
4amount equal to 3.5% of the amount wagered each day on any

5other multiple wager which involves a single
betting interest 
6on 3 or more horses. The licensee shall remit the amount of

7such taxes to the Department of Revenue within 48 hours after 
8the close of
the racing day on which it is assessed or within 
9such other time as the Board
prescribes.
10 This subsection (a) shall be inoperative and of no force 
11and effect on and
after January 1, 2000.
12 (a-5) Beginning on January 1, 2000, a
flat
pari-mutuel tax 
13at the rate of 1.5% of
the daily
pari-mutuel handle is imposed 
14at all pari-mutuel wagering facilities and on advance deposit 
15wagering from a location other than a wagering facility, except 
16as otherwise provided for in this subsection (a-5). In addition 
17to the pari-mutuel tax imposed on advance deposit wagering 
18pursuant to this subsection (a-5), beginning on the effective 
19date of this amendatory Act of the 97th General Assembly until 
20January 1, 2013, an additional pari-mutuel tax at the rate of 
210.25% shall be imposed on advance deposit wagering. Until 
22August 25, 2012, the additional 0.25% pari-mutuel tax imposed 
23on advance deposit wagering by Public Act 96-972 shall be 
24deposited into the Quarter Horse Purse Fund, which shall be 
25created as a non-appropriated trust fund administered by the 
26Board for grants to thoroughbred organization licensees for 
 
 
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1payment of purses for quarter horse races conducted by the 
2organization licensee. Beginning on August 26, 2012, the 
3additional 0.25% pari-mutuel tax imposed on advance deposit 
4wagering shall be deposited equally into the standardbred purse 
5accounts of organization licensees conducting standardbred 
6racing. Thoroughbred organization licensees may petition the 
7Board to conduct quarter horse racing and receive purse grants 
8from the Quarter Horse Purse Fund. The Board shall have 
9complete discretion in distributing the Quarter Horse Purse 
10Fund to the petitioning organization licensees. Beginning on 
11the effective date of this amendatory Act of the 96th General 
12Assembly and until moneys deposited pursuant to Section 54 are 
13distributed and received, a pari-mutuel tax at the rate of 
140.75% of the daily pari-mutuel handle is imposed at a 
15pari-mutuel facility whose license is derived from a track 
16located in a county that borders the Mississippi River and 
17conducted live racing in the previous year. After moneys 
18deposited pursuant to Section 54 are distributed and received, 
19a pari-mutuel tax at the rate of 1.5% of the daily pari-mutuel 
20handle is imposed at a pari-mutuel facility whose license is 
21derived from a track located in a county that borders the 
22Mississippi River and conducted live racing in the previous 
23year. The pari-mutuel tax imposed by this subsection (a-5)

24shall be remitted to the Department of
Revenue within 48 hours 
25after the close of the racing day upon which it is
assessed or 
26within such other time as the Board prescribes.
 
 
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1 (a-10) Beginning on the date when an organization licensee 
2begins conducting electronic gaming pursuant to an electronic 
3gaming license, the following pari-mutuel tax is imposed upon 
4an organization licensee on Illinois races at the licensee's 
5race track: 
6  1.5% of the pari-mutuel handle at or below the average 
7 daily pari-mutuel handle for 2011. 
8  2% of the pari-mutuel handle above the average daily 
9 pari-mutuel handle for 2011 up to 125% of the average daily 
10 pari-mutuel handle for 2011. 
11  2.5% of the pari-mutuel handle 125% or more above the 
12 average daily pari-mutuel handle for 2011 up to 150% of the 
13 average daily pari-mutuel handle for 2011. 
14  3% of the pari-mutuel handle 150% or more above the 
15 average daily pari-mutuel handle for 2011 up to 175% of the 
16 average daily pari-mutuel handle for 2011. 
17  3.5% of the pari-mutuel handle 175% or more above the 
18 average daily pari-mutuel handle for 2011. 
19 The pari-mutuel tax imposed by this subsection (a-10) shall 
20be remitted to the Board within 48 hours after the close of the 
21racing day upon which it is assessed or within such other time 
22as the Board prescribes. 
23 (b) On or before December 31, 1999, in
the event that any 
24organization
licensee conducts
2 separate programs
of races on 
25any day, each such program shall be considered a separate

26racing day for purposes of determining the daily handle and 
 
 
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1computing
the privilege tax on such daily handle as provided in 
2subsection (a) of
this Section.
3 (c) Licensees shall at all times keep accurate
books
and 
4records of all monies wagered on each day of a race meeting and 
5of
the taxes paid to the Department of Revenue under the 
6provisions of this
Section. The Board or its duly authorized 
7representative or
representatives shall at all reasonable 
8times have access to such
records for the purpose of examining 
9and checking the same and
ascertaining whether the proper 
10amount of taxes is being paid as
provided. The Board shall 
11require verified reports and a statement of
the total of all 
12monies wagered daily at each wagering facility upon which
the 
13taxes are assessed and may prescribe forms upon which such 
14reports
and statement shall be made.
15 (d) Before a license is issued or re-issued, the licensee 
16shall post a bond in the sum of $500,000 to the State of 
17Illinois. The bond shall be used to guarantee that the licensee 
18faithfully makes the payments, keeps the books and records and 
19makes reports, and conducts games of chance in conformity with 
20this Act and the rules adopted by the Board. The bond shall not 
21be canceled by a surety on less than 30 days' notice in writing 
22to the Board. If a bond is canceled and the licensee fails to 
23file a new bond with the Board in the required amount on or 
24before the effective date of cancellation, the licensee's 
25license shall be revoked. The total and aggregate liability of 
26the surety on the bond is limited to the amount specified in 
 
 
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1the bond. Any licensee failing or refusing to pay the amount
of 
2any tax due under this Section shall be guilty of a business 
3offense
and upon conviction shall be fined not more than $5,000 
4in addition to
the amount found due as tax under this Section. 
5Each day's violation
shall constitute a separate offense. All 
6fines paid into Court by a licensee hereunder shall be 
7transmitted and paid over by
the Clerk of the Court to the 
8Board.
9 (e) No other license fee, privilege tax, excise tax, or

10racing fee, except as provided in this Act, shall be assessed 
11or
collected from any such licensee by the State.
12 (f) No other license fee, privilege tax, excise tax or 
13racing fee shall be
assessed or collected from any such 
14licensee by units of local government
except as provided in 
15paragraph 10.1 of subsection (h) and subsection (f) of
Section 
1626 of this Act. However, any municipality that has a Board 
17licensed
horse race meeting at a race track wholly within its 
18corporate boundaries or a
township that has a Board licensed 
19horse race meeting at a race track wholly
within the 
20unincorporated area of the township may charge a local

21amusement tax not to exceed 10¢ per admission to such horse 
22race meeting
by the enactment of an ordinance. However, any 
23municipality or county
that has a Board licensed inter-track 
24wagering location facility wholly
within its corporate 
25boundaries may each impose an admission fee not
to exceed $1.00 
26per admission to such inter-track wagering location facility,

 
 
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1so that a total of not more than $2.00 per admission may be 
2imposed.
Except as provided in subparagraph (g) of Section 27 
3of this Act, the
inter-track wagering location licensee shall 
4collect any and all such fees
and within 48 hours remit the 
5fees to the Board, which shall, pursuant to
rule, cause the 
6fees to be distributed to the county or municipality.
7 (g) Notwithstanding any provision in this Act to the 
8contrary, if in any
calendar year the total taxes and fees from 
9wagering on live racing and from
inter-track wagering required 
10to be collected from
licensees and distributed under this Act 
11to all State and local governmental
authorities exceeds the 
12amount of such taxes and fees distributed to each State
and 
13local governmental authority to which each State and local 
14governmental
authority was entitled under this Act for calendar 
15year 1994, then the first
$11 million of that excess amount 
16shall be allocated at the earliest possible
date for 
17distribution as purse money for the succeeding calendar year.

18Upon reaching the 1994 level, and until the excess amount of 
19taxes and fees
exceeds $11 million, the Board shall direct all 
20licensees to cease paying the
subject taxes and fees and the 
21Board shall direct all licensees to allocate any such excess 
22amount for purses as
follows:
23  (i) the excess amount shall be initially divided 
24 between thoroughbred and
standardbred purses based on the 
25 thoroughbred's and standardbred's respective
percentages 
26 of total Illinois live wagering in calendar year 1994;
 
 
09800SB1739sam001- 316 -LRB098 10559 AMC 42403 a


1  (ii) each thoroughbred and standardbred organization 
2 licensee issued an
organization licensee in that 
3 succeeding allocation year shall
be
allocated an amount 
4 equal to the product of its percentage of total
Illinois

5 live thoroughbred or standardbred wagering in calendar 
6 year 1994 (the total to
be determined based on the sum of 
7 1994 on-track wagering for all organization
licensees 
8 issued organization licenses in both the allocation year 
9 and the
preceding year) multiplied by
the total amount 
10 allocated for standardbred or thoroughbred purses, 
11 provided
that the first $1,500,000 of the amount allocated 
12 to standardbred
purses under item (i) shall be allocated to 
13 the Department of
Agriculture to be expended with the 
14 assistance and advice of the Illinois
Standardbred 
15 Breeders Funds Advisory Board for the purposes listed in

16 subsection (g) of Section 31 of this Act, before the amount 
17 allocated to
standardbred purses under item (i) is 
18 allocated to standardbred
organization licensees in the 
19 succeeding allocation year.
20 To the extent the excess amount of taxes and fees to be 
21collected and
distributed to State and local governmental 
22authorities exceeds $11 million,
that excess amount shall be 
23collected and distributed to State and local
authorities as 
24provided for under this Act.
25(Source: P.A. 96-762, eff. 8-25-09; 96-1287, eff. 7-26-10; 
2697-1060, eff. 8-24-12.)




 
 
09800SB1739sam001- 317 -LRB098 10559 AMC 42403 a


1 (230 ILCS 5/30) (from Ch. 8, par. 37-30)



2 Sec. 30. 
(a) The General Assembly declares that it is the 
3policy of
this State to encourage the breeding of thoroughbred 
4horses in this
State and the ownership of such horses by 
5residents of this State in
order to provide for: sufficient 
6numbers of high quality thoroughbred
horses to participate in 
7thoroughbred racing meetings in this State,
and to establish 
8and preserve the agricultural and commercial benefits
of such 
9breeding and racing industries to the State of Illinois. It is

10the intent of the General Assembly to further this policy by 
11the
provisions of this Act.

12 (b) Each organization licensee conducting a thoroughbred

13racing meeting
pursuant to this Act shall provide at least two 
14races each day limited
to Illinois conceived and foaled horses 
15or Illinois foaled horses or
both. A minimum of 6 races shall 
16be conducted each week limited to
Illinois conceived and foaled 
17or Illinois foaled horses or both. No
horses shall be permitted 
18to start in such races unless duly registered
under the rules 
19of the Department of Agriculture.

20 (c) Conditions of races under subsection (b) shall be

21commensurate
with past performance, quality, and class of 
22Illinois conceived and foaled
and Illinois foaled horses

23available. If, however, sufficient competition cannot be had 
24among
horses of that class on any day, the races may, with 
25consent of the
Board, be eliminated for that day and substitute 
 
 
09800SB1739sam001- 318 -LRB098 10559 AMC 42403 a


1races provided.

2 (d) There is hereby created a special fund of the State 
3Treasury to
be known as the Illinois Thoroughbred Breeders 
4Fund. 

5 Beginning on the effective date of this amendatory Act of 
6the 98th General Assembly, the Illinois Thoroughbred Breeders 
7Fund shall become a non-appropriated trust fund held separately 
8from State moneys. Expenditures from this Fund shall no longer 
9be subject to appropriation. 
10 Except as provided in subsection (g) of Section 27 of this 
11Act, 8.5% of all
the monies received by the State as
privilege 
12taxes on Thoroughbred racing meetings shall be paid into the 
13Illinois
Thoroughbred Breeders Fund.

14 Notwithstanding any provision of law to the contrary, 
15amounts deposited into the Illinois Thoroughbred Breeders Fund 
16from revenues generated by electronic gaming after the 
17effective date of this amendatory Act of the 98th General 
18Assembly shall be in addition to tax and fee amounts paid under 
19this Section for calendar year 2013 and thereafter. 
20 (e) The Illinois Thoroughbred Breeders Fund shall be 
21administered by
the Department of Agriculture
with the advice 
22and assistance of the
Advisory Board created in subsection (f) 
23of this Section.

24 (f) The Illinois Thoroughbred Breeders Fund Advisory Board 
25shall
consist of the Director of the Department of Agriculture, 
26who shall
serve as Chairman; a member of the Illinois Racing 
 
 
09800SB1739sam001- 319 -LRB098 10559 AMC 42403 a


1Board, designated by
it; 2 representatives of the organization 
2licensees
conducting thoroughbred
racing meetings, recommended 
3by them; 2 representatives of the Illinois
Thoroughbred 
4Breeders and Owners Foundation, recommended by it; one 
5representative and 2
representatives of the Horsemen's 
6Benevolent Protective Association; and one representative from 
7the Illinois Thoroughbred Horsemen's Association or any

8successor organization established in Illinois comprised of 
9the largest number
of owners and trainers,
recommended
by it, 
10with one representative of the Horsemen's Benevolent and 
11Protective
Association to come from its Illinois Division, and 
12one from its Chicago
Division. Advisory Board members shall 
13serve for 2 years commencing January 1
of
each odd numbered 
14year. If representatives of the organization licensees

15conducting thoroughbred racing meetings, the Illinois 
16Thoroughbred Breeders and
Owners Foundation, and the 
17Horsemen's Benevolent Protection Association, and the Illinois 
18Thoroughbred Horsemen's Association have
not been recommended 
19by January 1, of each odd numbered year, the Director of
the 
20Department of Agriculture shall make an appointment for the 
21organization
failing to so recommend a member of the Advisory 
22Board. Advisory Board members
shall receive no compensation for 
23their services as members but shall be
reimbursed for all 
24actual and necessary expenses and disbursements incurred in
the 
25execution of their official duties.

26 (g) No monies shall be expended from the Illinois 
 
 
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1Thoroughbred
Breeders Fund except as appropriated by the 
2General Assembly. Monies expended
appropriated from the 
3Illinois Thoroughbred Breeders Fund shall be
expended by the 
4Department of Agriculture,
with the advice and
assistance of 
5the Illinois Thoroughbred Breeders Fund Advisory Board,
for the 
6following purposes only:


7  (1) To provide purse supplements to breeders owners of 
8 horses participating
in races limited to Illinois 
9 conceived and foaled and Illinois foaled
horses. Any such 
10 purse supplements shall not be included in and shall
be 
11 paid in addition to any purses, stakes, or breeders' awards 
12 offered
by each organization licensee as determined by 
13 agreement between such
organization licensee and an 
14 organization representing the horsemen. No
monies from the 
15 Illinois Thoroughbred Breeders Fund shall be used to 
16 provide
purse supplements for claiming races in which the 
17 minimum claiming price is
less than $7,500.


18  (2) To provide stakes and awards to be paid to the 
19 breeders owners of the
winning horses in certain races 
20 limited to Illinois conceived and foaled
and Illinois 
21 foaled horses designated as stakes races. 


22  (2.5) To provide an award to the breeder owner or 
23 breeders owners of an Illinois
conceived and foaled or 
24 Illinois foaled horse that wins a
maiden special weight, an 
25 allowance, overnight handicap race, or
claiming race with 
26 claiming price of $10,000 or more providing the race
is not 
 
 
09800SB1739sam001- 321 -LRB098 10559 AMC 42403 a


1 restricted
to Illinois conceived and foaled or Illinois 
2 foaled horses.
Awards shall
also be provided to the owner 
3 or owners of Illinois conceived and foaled and
Illinois 
4 foaled horses that place second or third in those races. To 
5 the
extent
that additional moneys are required to pay the 
6 minimum additional awards of 40%
of the purse the horse 
7 earns for placing first, second or third in those races
for 
8 Illinois foaled horses and of 60% of the purse the horse 
9 earns for placing
first, second or third in those races for 
10 Illinois
conceived and foaled horses, those moneys shall be 
11 provided from the purse
account at the track where earned.


12  (3) To provide stallion awards to the owner or owners 
13 of any
stallion that is duly registered with the Illinois 
14 Thoroughbred Breeders
Fund Program prior to the effective 
15 date of this amendatory Act of 1995 whose
duly registered 
16 Illinois conceived and foaled offspring wins a race 
17 conducted
at an Illinois
thoroughbred racing meeting other 
18 than a claiming race, provided that the stallion stood 
19 service within Illinois at the time the offspring was 
20 conceived and that the stallion did not stand for service 
21 outside of Illinois at any time during the year in which 
22 the offspring was conceived. Such
award
shall not be paid 
23 to the owner or owners of an Illinois stallion that served

24 outside this State at any time during the calendar year in 
25 which such race was
conducted.


26  (4) To provide $75,000 annually for purses to be

 
 
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1 distributed to
county fairs that provide for the running of 
2 races during each county
fair exclusively for the 
3 thoroughbreds conceived and foaled in
Illinois. The 
4 conditions of the races shall be developed by the county

5 fair association and reviewed by the Department with the 
6 advice and
assistance of
the Illinois Thoroughbred 
7 Breeders Fund Advisory Board. There shall be no
wagering of 
8 any kind on the running
of
Illinois conceived and foaled 
9 races at county fairs.


10  (4.1) To provide purse money for an Illinois stallion 
11 stakes program.


12  (5) No less than 90% 80% of all monies appropriated 
13 from the Illinois
Thoroughbred Breeders Fund shall be 
14 expended for the purposes in (1), (2),
(2.5), (3), (4), 
15 (4.1), and (5) as shown above.


16  (6) To provide for educational programs regarding the 
17 thoroughbred
breeding industry.


18  (7) To provide for research programs concerning the 
19 health,
development and care of the thoroughbred horse.


20  (8) To provide for a scholarship and training program 
21 for students
of equine veterinary medicine.


22  (9) To provide for dissemination of public information 
23 designed to
promote the breeding of thoroughbred horses in 
24 Illinois.


25  (10) To provide for all expenses incurred in the 
26 administration of
the Illinois Thoroughbred Breeders Fund.

 
 
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1 (h) The Illinois Thoroughbred Breeders Fund is not subject 
2to administrative charges or chargebacks, including, but not 
3limited to, those authorized under Section 8h of the State 
4Finance Act. Whenever the Governor finds that the amount in the 
5Illinois
Thoroughbred Breeders Fund is more than the total of 
6the outstanding
appropriations from such fund, the Governor 
7shall notify the State
Comptroller and the State Treasurer of 
8such fact. The Comptroller and
the State Treasurer, upon 
9receipt of such notification, shall transfer
such excess amount 
10from the Illinois Thoroughbred Breeders Fund to the
General 
11Revenue Fund.

12 (i) A sum equal to 13% 12 1/2% of the first prize money of 
13every purse
won by an Illinois foaled or an Illinois conceived 
14and foaled horse in
races not limited to Illinois foaled horses 
15or Illinois conceived and
foaled horses, or both, shall be paid 
16by the organization licensee
conducting the horse race meeting. 
17Such sum shall be paid 50% from the organization
licensee's 
18account and 50% from the purse account of the licensee share of 
19the money wagered as follows: 11 1/2% to the breeder of
the 
20winning horse and 1 1/2% 1% to the organization representing 
21thoroughbred breeders
and owners whose representative serves 
22on the Illinois Thoroughbred Breeders
Fund Advisory Board for 
23verifying the amounts of breeders' awards earned,
assuring 
24their distribution in accordance with this Act, and servicing 
25and
promoting the Illinois thoroughbred horse racing industry. 
26The
organization representing thoroughbred breeders and owners 
 
 
09800SB1739sam001- 324 -LRB098 10559 AMC 42403 a


1shall cause all
expenditures of monies received under this 
2subsection (i) to be audited
at least annually by a registered 
3public accountant. The organization
shall file copies of each 
4annual audit with the Racing Board, the Clerk of
the House of 
5Representatives and the Secretary of the Senate, and shall
make 
6copies of each annual audit available to the public upon 
7request
and upon payment of the reasonable cost of photocopying 
8the requested
number of copies. Such payments shall not reduce 
9any award to the owner of the
horse or reduce the taxes payable 
10under this Act. Upon completion of its
racing meet, each 
11organization licensee shall deliver to the organization

12representing thoroughbred breeders and owners whose 
13representative serves on
the Illinois Thoroughbred Breeders 
14Fund Advisory Board a listing of all the
Illinois foaled and 
15the Illinois conceived and foaled horses which won
breeders' 
16awards and the amount of such breeders' awards under this 
17subsection
to verify accuracy of payments and assure proper 
18distribution of breeders'
awards in accordance with the 
19provisions of this Act. Such payments shall be
delivered by the 
20organization licensee within 30 days of the end of each race

21meeting.

22 (j) A sum equal to 13% 12 1/2% of the first prize money won 
23in each race
limited to Illinois foaled horses or Illinois 
24conceived and foaled
horses, or both, shall be paid in the 
25following manner by the
organization licensee conducting the 
26horse race meeting, 50% from the
organization licensee's 
 
 
09800SB1739sam001- 325 -LRB098 10559 AMC 42403 a


1account and 50% from the purse account of the licensee share of 
2the money wagered: 11 1/2% to the breeders of
the horses in 
3each such race which are the official first, second, third
and 
4fourth finishers and 1 1/2% 1% to the organization representing 
5thoroughbred
breeders and owners whose representative serves 
6on the Illinois Thoroughbred
Breeders Fund Advisory Board for 
7verifying the amounts of breeders' awards
earned, assuring 
8their proper distribution in accordance with this Act, and

9servicing and promoting the Illinois thoroughbred horse racing 
10industry. The
organization representing thoroughbred breeders 
11and owners shall cause all
expenditures of monies received 
12under this subsection (j) to be audited
at least annually by a 
13registered public accountant. The organization
shall file 
14copies of each annual audit with the Racing Board, the Clerk of

15the House of Representatives and the Secretary of the Senate, 
16and shall
make copies of each annual audit available to the 
17public upon request
and upon payment of the reasonable cost of 
18photocopying the requested
number of copies.

19 The 11 1/2% paid to the breeders in accordance with this 
20subsection
shall be distributed as follows:


21  (1) 60% of such sum shall be paid to the breeder of the 
22 horse which
finishes in the official first position;


23  (2) 20% of such sum shall be paid to the breeder of the 
24 horse which
finishes in the official second position;


25  (3) 15% of such sum shall be paid to the breeder of the 
26 horse which
finishes in the official third position; and


 
 
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1  (4) 5% of such sum shall be paid to the breeder of the 
2 horse which
finishes in the official fourth position.

3 Such payments shall not reduce any award to the owners of a 
4horse or
reduce the taxes payable under this Act. Upon 
5completion of its racing meet,
each organization licensee shall 
6deliver to the organization representing
thoroughbred breeders 
7and owners whose representative serves on the Illinois

8Thoroughbred Breeders Fund Advisory Board a listing of all the 
9Illinois foaled
and the Illinois conceived and foaled horses 
10which won breeders' awards and the
amount of such breeders' 
11awards in accordance with the provisions of this Act.
Such 
12payments shall be delivered by the organization licensee within 
1330 days of
the end of each race meeting.

14 (k) The term "breeder", as used herein, means the owner of 
15the mare at
the time the foal is dropped. An "Illinois foaled 
16horse" is a foal
dropped by a mare which enters this State on 
17or before December 1, in the
year in which the horse is bred,

18provided the mare remains continuously in this State until its 
19foal is born. An
"Illinois
foaled
horse" also means a foal born 
20of a mare in the same year
as the
mare enters this State on or 
21before March 1,
and remains in this State at
least 30
days 
22after foaling, is bred back during the season of the foaling to

23an
Illinois Registered Stallion (unless a veterinarian 
24certifies that the mare
should not be bred for health reasons), 
25and is not bred to a stallion
standing in any other state 
26during the season of foaling. An "Illinois
foaled horse" also 
 
 
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1means a foal born in Illinois of a mare purchased at public

2auction
subsequent to the mare entering this State on or before 
3March 1 prior to February 1 of the foaling
year providing the 
4mare is owned solely by one or more Illinois residents or an

5Illinois
entity that is entirely owned by one or more Illinois 
6residents. 

7 (l) The Department of Agriculture shall, by rule, with the 
8advice
and assistance of the Illinois Thoroughbred Breeders 
9Fund Advisory
Board:


10  (1) Qualify stallions for Illinois breeding; such 
11 stallions to stand for
service within the State of Illinois 
12 at the time of a foal's conception. Such
stallion must not 
13 stand for service at any place outside the State of 
14 Illinois
during the calendar year in which the foal is 
15 conceived.
The Department of Agriculture may assess and 
16 collect an application fee of up to $500 fees for the

17 registration of Illinois-eligible stallions. All fees 
18 collected are to be held in trust accounts for the purposes 
19 set forth in this Act and in accordance with Section 205-15 
20 of the Department of Agriculture Law paid
into the Illinois 
21 Thoroughbred Breeders Fund.


22  (2) Provide for the registration of Illinois conceived 
23 and foaled
horses and Illinois foaled horses. No such horse 
24 shall compete in
the races limited to Illinois conceived 
25 and foaled horses or Illinois
foaled horses or both unless 
26 registered with the Department of
Agriculture. The 
 
 
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1 Department of Agriculture may prescribe such forms as
are 
2 necessary to determine the eligibility of such horses. The 
3 Department of
Agriculture may assess and collect 
4 application fees for the registration of
Illinois-eligible 
5 foals. All fees collected are to be held in trust accounts 
6 for the purposes set forth in this Act and in accordance 
7 with Section 205-15 of the Department of Agriculture Law 
8 paid into the Illinois
Thoroughbred Breeders Fund. No 
9 person
shall knowingly prepare or cause preparation of an 
10 application for
registration of such foals containing 
11 false information.

12 (m) The Department of Agriculture, with the advice and 
13assistance of
the Illinois Thoroughbred Breeders Fund Advisory 
14Board, shall provide that certain races
limited to Illinois 
15conceived and foaled and Illinois foaled horses be
stakes races 
16and determine the total amount of stakes and awards to be paid

17to the breeders owners of the winning horses in such races.

18 In determining the stakes races and the amount of awards 
19for such races,
the Department of Agriculture shall consider 
20factors, including but not
limited to, the amount of money 
21appropriated for the Illinois Thoroughbred
Breeders Fund 
22program, organization licensees' contributions,
availability 
23of stakes caliber horses as demonstrated by past performances,

24whether the race can be coordinated into the proposed racing 
25dates within
organization licensees' racing dates, opportunity 
26for
colts and fillies
and various age groups to race, public 
 
 
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1wagering on such races, and the
previous racing schedule.

2 (n) The Board and the organizational licensee shall
notify 
3the Department of the conditions and minimum purses for races

4limited to Illinois conceived and foaled and Illinois foaled 
5horses
conducted for each organizational licensee conducting a 
6thoroughbred racing
meeting. The Department of Agriculture 
7with the advice and assistance of
the Illinois Thoroughbred 
8Breeders Fund Advisory Board may allocate monies
for purse 
9supplements for such races. In determining whether to allocate

10money and the amount, the Department of Agriculture shall 
11consider factors,
including but not limited to, the amount of 
12money appropriated for the
Illinois Thoroughbred Breeders Fund 
13program, the number of races that may
occur, and the 
14organizational licensee's purse structure.

15 (o) In order to improve the breeding quality of 
16thoroughbred horses in the
State, the General Assembly 
17recognizes that existing provisions of this Section
to 
18encourage such quality breeding need to be revised and 
19strengthened. As
such, a Thoroughbred Breeder's Program Task 
20Force is to be appointed by the
Governor by September 1, 1999 
21to make recommendations to the General Assembly
by
no later 
22than March 1, 2000.
This task force is to be composed of 2 
23representatives from the Illinois
Thoroughbred Breeders and 
24Owners Foundation, 2 from the Illinois Thoroughbred
Horsemen's 
25Association, 3 from Illinois race tracks operating 
26thoroughbred
race meets for an average of at least 30 days in 
 
 
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1the past 3 years, the Director
of Agriculture, the Executive 
2Director of the Racing Board, who shall serve as
Chairman.

3(Source: P.A. 91-40, eff. 6-25-99.)





4 (230 ILCS 5/30.5)



5 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund. 

6 (a) The General Assembly declares that it is the policy of 
7this State to
encourage the breeding of racing quarter horses 
8in this State and the ownership
of such horses by residents of 
9this State in order to provide for sufficient
numbers of high 
10quality racing quarter horses in this State and to establish

11and
preserve the agricultural and commercial benefits of such 
12breeding and racing
industries to the State of Illinois. It is 
13the intent of the General Assembly
to
further this policy by 
14the provisions of this Act.

15 (b) There is hereby created non-appropriated trust a 
16special fund in the State Treasury to be
known as the Illinois 
17Racing Quarter Horse Breeders Fund, which is held separately 
18from State moneys. Except as provided
in
subsection (g) of 
19Section 27 of this Act, 8.5% of all the moneys received by
the

20State as pari-mutuel taxes on quarter horse racing shall be 
21paid into the
Illinois
Racing Quarter Horse Breeders Fund. The 
22Illinois Racing Quarter Horse Breeders Fund shall not be 
23subject to administrative charges or chargebacks, including, 
24but not
limited to, those authorized under Section 8h of the 
25State Finance Act.

 
 
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1 (c) The Illinois Racing Quarter Horse Breeders Fund shall 
2be administered
by the Department of Agriculture with the 
3advice and assistance of the Advisory
Board created in 
4subsection (d) of this Section.

5 (d) The Illinois Racing Quarter Horse Breeders Fund 
6Advisory Board shall
consist of the Director of the Department 
7of Agriculture, who shall serve as
Chairman; a member of the 
8Illinois Racing Board, designated by it; one
representative of 
9the organization licensees conducting pari-mutuel
quarter 
10horse racing meetings,
recommended by them; 2 representatives 
11of the Illinois Running Quarter Horse
Association, recommended 
12by it; and the Superintendent of Fairs and Promotions
from the 
13Department of Agriculture. Advisory Board members shall serve 
14for 2
years commencing January 1 of each odd numbered year. If 
15representatives have
not
been recommended by January 1 of each 
16odd numbered year, the Director of the
Department of 
17Agriculture may make an appointment for the organization 
18failing
to
so recommend a member of the Advisory Board. 
19Advisory Board members shall
receive
no compensation for their 
20services as members but may be reimbursed for all
actual and 
21necessary expenses and disbursements incurred in the execution 
22of
their official duties.

23 (e) Moneys in No moneys shall be expended from the Illinois 
24Racing Quarter Horse
Breeders Fund except as appropriated by 
25the General Assembly. Moneys
appropriated
from the Illinois 
26Racing Quarter Horse Breeders Fund shall be expended by the

 
 
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1Department of Agriculture, with the advice and assistance of 
2the Illinois
Racing
Quarter Horse Breeders Fund Advisory Board, 
3for the following purposes only:


4  (1) To provide stakes and awards to be paid to the

5 owners of the winning horses in certain races. This 
6 provision
is limited to Illinois conceived and foaled 
7 horses.


8  (2) To provide an award to the owner or owners of an 
9 Illinois
conceived and foaled horse that wins a race when 
10 pari-mutuel wagering is
conducted; providing the race is 
11 not restricted to Illinois conceived and
foaled horses.


12  (3) To provide purse money for an Illinois stallion 
13 stakes program.


14  (4) To provide for purses to be distributed for the 
15 running of races
during the Illinois State Fair and the 
16 DuQuoin State Fair exclusively for
quarter horses 
17 conceived and foaled in Illinois.


18  (5) To provide for purses to be distributed for the 
19 running of races
at Illinois county fairs exclusively for 
20 quarter horses conceived and foaled
in Illinois.


21  (6) To provide for purses to be distributed for running 
22 races
exclusively for quarter horses conceived and foaled 
23 in Illinois at locations
in Illinois determined by the 
24 Department of Agriculture with advice and
consent of the 
25 Illinois Racing Quarter Horse Breeders Fund Advisory 
26 Board.


 
 
09800SB1739sam001- 333 -LRB098 10559 AMC 42403 a


1  (7) No less than 90% of all moneys appropriated from 
2 the Illinois
Racing Quarter Horse Breeders Fund shall be 
3 expended for the purposes in
items (1), (2), (3), (4), and 
4 (5) of this subsection (e).


5  (8) To provide for research programs concerning the 
6 health,
development, and care of racing quarter horses.


7  (9) To provide for dissemination of public information 
8 designed to
promote the breeding of racing quarter horses 
9 in Illinois.


10  (10) To provide for expenses incurred in the 
11 administration of the
Illinois Racing Quarter Horse 
12 Breeders Fund.

13 (f) The Department of Agriculture shall, by rule, with the 
14advice and
assistance of the Illinois Racing Quarter Horse 
15Breeders Fund Advisory Board:


16  (1) Qualify stallions for Illinois breeding; such 
17 stallions to stand
for service within the State of 
18 Illinois, at the time of a foal's
conception. Such stallion 
19 must not stand for service at any place outside
the State 
20 of Illinois during the calendar year in which the foal is

21 conceived. The Department of Agriculture may assess and 
22 collect application
fees for the registration of 
23 Illinois-eligible stallions. All fees collected
are to be 
24 paid into the Illinois Racing Quarter Horse Breeders Fund.


25  (2) Provide for the registration of Illinois conceived 
26 and foaled
horses. No such horse shall compete in the races 
 
 
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1 limited to Illinois
conceived and foaled horses unless it 
2 is registered with the Department of
Agriculture. The 
3 Department of Agriculture may prescribe such forms as are

4 necessary to determine the eligibility of such horses. The 
5 Department of
Agriculture may assess and collect 
6 application fees for the registration of
Illinois-eligible 
7 foals. All fees collected are to be paid into the Illinois

8 Racing Quarter Horse Breeders Fund. No person shall 
9 knowingly prepare or
cause preparation of an application 
10 for registration of such foals that
contains false 
11 information.

12 (g) The Department of Agriculture, with the advice and 
13assistance of the
Illinois Racing Quarter Horse Breeders Fund 
14Advisory Board, shall provide that
certain races limited to 
15Illinois conceived and foaled be stakes races and
determine the 
16total amount of stakes and awards to be paid to the owners of 
17the
winning horses in such races.

18(Source: P.A. 91-40, eff. 6-25-99; revised 10-18-12.)





19 (230 ILCS 5/31) (from Ch. 8, par. 37-31)



20 Sec. 31. 
(a) The General Assembly declares that it is the 
21policy of
this State to encourage the breeding of standardbred 
22horses in this
State and the ownership of such horses by 
23residents of this State in
order to provide for: sufficient 
24numbers of high quality standardbred
horses to participate in 
25harness racing meetings in this State, and to
establish and 
 
 
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1preserve the agricultural and commercial benefits of such

2breeding and racing industries to the State of Illinois. It is 
3the
intent of the General Assembly to further this policy by 
4the provisions
of this Section of this Act.

5 (b) Each organization licensee conducting a harness
racing 
6meeting pursuant to this Act shall provide for at least two 
7races each
race program limited to
Illinois conceived and 
8foaled horses. A minimum of 6 races shall be
conducted each 
9week limited to Illinois conceived and foaled horses. No
horses 
10shall be permitted to start in such races unless duly 
11registered
under the rules of the Department of Agriculture.

12 (b-5) Organization licensees, not including the Illinois 
13State Fair or the DuQuoin State Fair, shall provide stake races 
14and early closer races for Illinois conceived and foaled horses 
15so that purses distributed for such races shall be no less than 
1617% of total purses distributed for harness racing in that 
17calendar year in addition to any stakes payments and starting 
18fees contributed by horse owners. 
19 (b-10) Each organization licensee conducting a harness 
20racing meeting
pursuant to this Act shall provide an owner 
21award to be paid from the purse
account equal to 25% of the 
22amount earned by Illinois conceived and foaled
horses in races 
23that are not restricted to Illinois conceived and foaled

24horses. The owner awards shall not be paid on races below the 
25$10,000 claiming class. 
26 (c) Conditions of races under subsection (b) shall be 
 
 
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1commensurate
with past performance, quality and class of 
2Illinois conceived and
foaled horses available. If, however, 
3sufficient competition cannot be
had among horses of that class 
4on any day, the races may, with consent
of the Board, be 
5eliminated for that day and substitute races provided.

6 (d) There is hereby created a special fund of the State 
7Treasury to
be known as the Illinois Standardbred Breeders 
8Fund. 

9 During the calendar year 1981, and each year thereafter, 
10except as provided
in subsection (g) of Section 27 of this Act, 
11eight and one-half
per cent of all the monies received by the 
12State as privilege taxes on
harness racing meetings shall be 
13paid into the Illinois Standardbred
Breeders Fund.

14 (e) The Illinois Standardbred Breeders Fund shall be 
15administered by
the Department of Agriculture with the 
16assistance and advice of the
Advisory Board created in 
17subsection (f) of this Section.

18 (f) The Illinois Standardbred Breeders Fund Advisory Board 
19is hereby
created. The Advisory Board shall consist of the 
20Director of the
Department of Agriculture, who shall serve as 
21Chairman; the
Superintendent of the Illinois State Fair; a 
22member of the Illinois
Racing Board, designated by it; a 
23representative of the Illinois
Standardbred Owners and 
24Breeders Association, recommended by it; a
representative of 
25the Illinois Association of Agricultural Fairs,
recommended by 
26it, such representative to be from a fair at which
Illinois 
 
 
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1conceived and foaled racing is conducted; a representative of

2the organization licensees conducting harness racing
meetings, 
3recommended by them
and a representative of the Illinois 
4Harness Horsemen's Association,
recommended by it. Advisory 
5Board members shall serve for 2 years
commencing January 1, of 
6each odd numbered year. If representatives of
the Illinois 
7Standardbred Owners and Breeders Associations, the Illinois

8Association of Agricultural Fairs, the Illinois Harness 
9Horsemen's
Association, and the organization licensees 
10conducting
harness racing meetings
have not been recommended by 
11January 1, of each odd numbered year, the
Director of the 
12Department of Agriculture shall make an appointment for
the 
13organization failing to so recommend a member of the Advisory 
14Board.
Advisory Board members shall receive no compensation for 
15their services
as members but shall be reimbursed for all 
16actual and necessary expenses
and disbursements incurred in the 
17execution of their official duties.

18 (g) No monies shall be expended from the Illinois 
19Standardbred
Breeders Fund except as appropriated by the 
20General Assembly. Monies
appropriated from the Illinois 
21Standardbred Breeders Fund shall be
expended by the Department 
22of Agriculture, with the assistance and
advice of the Illinois 
23Standardbred Breeders Fund Advisory Board for the
following 
24purposes only:


25  1. To provide purses for races limited to Illinois 
26 conceived and
foaled horses at the State Fair and the 
 
 
09800SB1739sam001- 338 -LRB098 10559 AMC 42403 a


1 DuQuoin State Fair. 


2  2. To provide purses for races limited to Illinois 
3 conceived and
foaled horses at county fairs. 


4  3. To provide purse supplements for races limited to 
5 Illinois
conceived and foaled horses conducted by 
6 associations conducting harness
racing meetings. 


7  4. No less than 75% of all monies in the Illinois 
8 Standardbred
Breeders Fund shall be expended for purses in 
9 1, 2 and 3 as shown above.


10  5. In the discretion of the Department of Agriculture 
11 to provide
awards to harness breeders of Illinois conceived 
12 and foaled horses which
win races conducted by organization 
13 licensees
conducting harness racing meetings.
A breeder is 
14 the owner of a mare at the time of conception. No more
than 
15 10% of all monies appropriated from the Illinois

16 Standardbred Breeders Fund shall
be expended for such 
17 harness breeders awards. No more than 25% of the
amount 
18 expended for harness breeders awards shall be expended for

19 expenses incurred in the administration of such harness 
20 breeders awards.


21  6. To pay for the improvement of racing facilities 
22 located at the
State Fair and County fairs.


23  7. To pay the expenses incurred in the administration 
24 of the
Illinois Standardbred Breeders Fund.


25  8. To promote the sport of harness racing, including 
26 grants up to a
maximum of $7,500 per fair per year for 
 
 
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1 conducting pari-mutuel wagering during the advertised 
2 dates of a
county fair.
3  9. To pay up to $50,000 annually for the Department of 
4 Agriculture to conduct drug testing at county fairs racing 
5 standardbred horses.
6  10. To pay up to $100,000 annually for distribution to 
7 Illinois county fairs to supplement premiums offered in 
8 junior classes.
9  11. To pay up to $100,000 annually for division and 
10 equal distribution to the animal sciences department of 
11 each Illinois public university system engaged in equine 
12 research and education on or before the effective date of 
13 this amendatory Act of the 98th General Assembly for equine 
14 research and education. 

15 (h) (Blank) Whenever the Governor finds that the amount in 
16the Illinois
Standardbred Breeders Fund is more than the total 
17of the outstanding
appropriations from such fund, the Governor 
18shall notify the State
Comptroller and the State Treasurer of 
19such fact. The Comptroller and
the State Treasurer, upon 
20receipt of such notification, shall transfer
such excess amount 
21from the Illinois Standardbred Breeders Fund to the
General 
22Revenue Fund.

23 (i) A sum equal to 13% 12 1/2% of the first prize money of 
24the gross every purse
won by an Illinois conceived and foaled 
25horse shall be paid 50% by the
organization licensee conducting 
26the horse race meeting to the breeder
of such winning horse 
 
 
09800SB1739sam001- 340 -LRB098 10559 AMC 42403 a


1from the organization licensee's account and 50% from the purse 
2account of the licensee share of the
money wagered.
Such 
3payment
shall not reduce any award to the owner of
the horse or 
4reduce the taxes payable under this Act. Such payment
shall be 
5delivered by the organization licensee at the end of each 
6quarter race
meeting.

7 (j) The Department of Agriculture shall, by rule, with the

8assistance and advice of the Illinois Standardbred Breeders 
9Fund
Advisory Board:

10  1. Qualify stallions for Illinois Standardbred 
11 Breeders Fund breeding; such stallion
shall be owned by a 
12 resident of the State of Illinois or by an Illinois

13 corporation all of whose shareholders, directors, officers 
14 and
incorporators are residents of the State of Illinois. 
15 Such stallion shall
stand for
service at and within the 
16 State of Illinois at the time of a foal's
conception, and 
17 such stallion must not stand for service at any place, nor

18 may semen from such stallion be transported,
outside the 
19 State of Illinois during that calendar year in which the

20 foal is conceived and that the owner of the stallion was 
21 for the
12
months prior, a resident of Illinois. Foals 
22 conceived outside the State of Illinois from shipped semen 
23 from a
stallion qualified for breeders' awards under this 
24 Section are
not eligible to participate in the Illinois 
25 conceived and foaled program.
The articles of agreement of 
26 any partnership, joint venture, limited
partnership, 
 
 
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1 syndicate, association or corporation and any bylaws and 
2 stock
certificates must contain a restriction that 
3 provides that the ownership or
transfer of interest by any 
4 one of the persons a party to the agreement can
only be 
5 made to a person who qualifies as an Illinois resident.

6  2. Provide for the registration of Illinois conceived 
7 and foaled
horses and no such horse shall compete in the 
8 races limited to Illinois
conceived and foaled horses 
9 unless registered with the Department of
Agriculture. The 
10 Department of Agriculture may prescribe such forms as
may 
11 be necessary to determine the eligibility of such horses. 
12 No person
shall knowingly prepare or cause preparation of 
13 an application for
registration of such foals containing 
14 false information.
A mare (dam) must be in the state at 
15 least 30 days prior to foaling or
remain in the State at 
16 least 30 days at the time of foaling.
Beginning with the 
17 1996 breeding season and for foals of 1997 and thereafter,

18 a foal conceived in the State of Illinois by transported 
19 fresh semen may be eligible for Illinois
conceived and 
20 foaled registration provided all breeding and foaling

21 requirements are met. The stallion must be qualified for 
22 Illinois Standardbred
Breeders Fund breeding at the time of 
23 conception and the mare must be
inseminated within the 
24 State of Illinois. The foal must be dropped in Illinois
and 
25 properly registered with the Department of Agriculture in 
26 accordance with
this Act.

 
 
09800SB1739sam001- 342 -LRB098 10559 AMC 42403 a


1  3. Provide that at least a 5 day racing program shall 
2 be conducted
at the State Fair each year, which program 
3 shall include at least the
following races limited to 
4 Illinois conceived and foaled horses: (a) a
two year old 
5 Trot and Pace, and Filly Division of each; (b) a three
year 
6 old Trot and Pace, and Filly Division of each; (c) an aged 
7 Trot and Pace,
and Mare Division of each.

8  4. Provide for the payment of nominating, sustaining 
9 and starting
fees for races promoting the sport of harness 
10 racing and for the races
to be conducted at the State Fair 
11 as provided in
subsection (j) 3 of this Section provided 
12 that the nominating,
sustaining and starting payment 
13 required from an entrant shall not
exceed 2% of the purse 
14 of such race. All nominating, sustaining and
starting 
15 payments shall be held for the benefit of entrants and 
16 shall be
paid out as part of the respective purses for such 
17 races.
Nominating, sustaining and starting fees shall be 
18 held in trust accounts
for the purposes as set forth in 
19 this Act and in accordance with Section
205-15 of the 
20 Department of Agriculture Law (20 ILCS
205/205-15).

21  5. Provide for the registration with the Department of 
22 Agriculture
of Colt Associations or county fairs desiring 
23 to sponsor races at county
fairs.
24  6. Provide for the promotion of producing standardbred 
25 racehorses by providing a bonus award program for owners of 
26 2-year-old horses that win multiple major stakes races that 
 
 
09800SB1739sam001- 343 -LRB098 10559 AMC 42403 a


1 are limited to Illinois conceived and foaled horses. 

2 (k) The Department of Agriculture, with the advice and 
3assistance of the
Illinois
Standardbred Breeders Fund Advisory 
4Board, may allocate monies for purse
supplements for such 
5races. In determining whether to allocate money and
the amount, 
6the Department
of Agriculture shall consider factors, 
7including but not limited to, the
amount of money appropriated 
8for the Illinois Standardbred Breeders Fund
program, the number 
9of races that may occur, and an organizational
licensee's purse 
10structure. The organizational licensee shall notify the

11Department of Agriculture of the conditions and minimum purses 
12for races
limited to Illinois conceived and foaled horses to be 
13conducted by each
organizational licensee conducting a harness 
14racing meeting for which purse
supplements have been 
15negotiated.

16 (l) All races held at county fairs and the State Fair which 
17receive funds
from the Illinois Standardbred Breeders Fund 
18shall be conducted in
accordance with the rules of the United 
19States Trotting Association unless
otherwise modified by the 
20Department of Agriculture.

21 (m) At all standardbred race meetings held or conducted 
22under authority of a
license granted by the Board, and at all 
23standardbred races held at county
fairs which are approved by 
24the Department of Agriculture or at the
Illinois or DuQuoin 
25State Fairs, no one shall jog, train, warm up or drive
a 
26standardbred horse unless he or she is wearing a protective 
 
 
09800SB1739sam001- 344 -LRB098 10559 AMC 42403 a


1safety helmet,
with the
chin strap fastened and in place, which 
2meets the standards and
requirements as set forth in the 1984 
3Standard for Protective Headgear for
Use in Harness Racing and 
4Other Equestrian Sports published by the Snell
Memorial 
5Foundation, or any standards and requirements for headgear the

6Illinois Racing Board may approve. Any other standards and 
7requirements so
approved by the Board shall equal or exceed 
8those published by the Snell
Memorial Foundation. Any 
9equestrian helmet bearing the Snell label shall
be deemed to 
10have met those standards and requirements.

11(Source: P.A. 91-239, eff. 1-1-00.)





12 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)



13 Sec. 31.1. 
(a) Organization licensees
collectively shall 
14contribute annually to charity the sum of $1,000,000
$750,000

15to non-profit organizations that provide medical and family, 
16counseling,
and similar services to persons who reside or work 
17on the backstretch of
Illinois racetracks.
These contributions 
18shall be collected as follows: (i) no later than July
1st of 
19each year the Board shall assess each organization licensee, 
20except
those tracks which are not within 100 miles of each 
21other which tracks
shall pay $40,000 $30,000 annually apiece 
22into the Board charity fund, that amount
which equals $920,000 
23$690,000 multiplied by the amount of pari-mutuel wagering

24handled by the organization licensee in the year preceding 
25assessment and
divided by the total pari-mutuel wagering 
 
 
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1handled by all Illinois
organization licensees, except those 
2tracks which are not within 100 miles of
each other, in the 
3year preceding assessment; (ii) notice of
the assessed 
4contribution shall be mailed to each organization licensee;

5(iii) within thirty days of its receipt of such notice, each 
6organization
licensee shall remit the assessed contribution to 
7the Board. If an
organization licensee wilfully fails to so 
8remit the contribution, the
Board may revoke its license to 
9conduct horse racing.

10 (b) No later than October 1st of each year, any
qualified 
11charitable organization seeking an allotment of
contributed 
12funds shall
submit to the Board an application for those funds, 
13using the
Board's approved
form. No later than December 31st of 
14each year, the Board shall
distribute all such amounts 
15collected that year to such charitable
organization 
16applicants. 

17(Source: P.A. 87-110.)





18 (230 ILCS 5/32.1)



19 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack 
20real estate
equalization. 
21 (a) In order to encourage new investment in Illinois 
22racetrack facilities and
mitigate differing real estate tax 
23burdens among all racetracks, the licensees
affiliated or 
24associated with each racetrack that has been awarded live 
25racing
dates in the current year shall receive an immediate 
 
 
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1pari-mutuel tax credit in
an amount equal to the greater of (i) 
250% of the amount of the real estate
taxes paid in the prior 
3year attributable to that racetrack, or (ii) the amount
by 
4which the real estate taxes paid in the prior year attributable 
5to that
racetrack exceeds 60% of the average real estate taxes 
6paid in the prior year
for all racetracks awarded live horse 
7racing meets in the current year.

8 Each year, regardless of whether the organization licensee 
9conducted live
racing in the year of certification, the
Board 
10shall certify in writing, prior to December 31, the real
estate 
11taxes paid in that year for each racetrack and the amount of 
12the
pari-mutuel tax credit that each organization licensee, 
13intertrack wagering
licensee, and intertrack wagering location 
14licensee that derives its license
from such racetrack is 
15entitled in the succeeding calendar year. The real
estate taxes 
16considered under this Section
for any racetrack shall be those 
17taxes on the real estate parcels and related
facilities used to 
18conduct a horse race meeting and inter-track wagering at
such

19racetrack under this Act.
In no event shall the amount of the 
20tax credit under this Section exceed the
amount of pari-mutuel 
21taxes otherwise calculated under this Act.
The amount of the 
22tax credit under this Section
shall be retained by each 
23licensee and shall not be subject to any reallocation
or 
24further distribution under this Act. The Board may promulgate 
25emergency
rules to implement this Section.

26 (b) Beginning on January 1 following the calendar year 
 
 
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1during which an organization licensee begins conducting 
2electronic gaming operations pursuant to an electric gaming 
3license issued under the Illinois Gambling Act, the 
4organization licensee shall be ineligible to receive a tax 
5credit under this Section. 
6(Source: P.A. 91-40, eff. 6-25-99.)


7 (230 ILCS 5/34.3 new)
8 Sec. 34.3. Drug testing. The Illinois Racing Board and the 
9Department of Agriculture shall jointly establish a program for 
10the purpose of conducting drug testing of horses at county 
11fairs and shall adopt any rules necessary for enforcement of 
12the program. The rules shall include appropriate penalties for 
13violations.




14 (230 ILCS 5/36)
 (from Ch. 8, par. 37-36)



15 Sec. 36. (a) Whoever administers or conspires to administer 
16to
any horse a hypnotic, narcotic, stimulant, depressant or any 
17chemical
substance which may affect the speed of a horse at any 
18time in any race
where the purse or any part of the purse is 
19made of money authorized by any
Section of this Act, except 
20those chemical substances permitted by ruling of
the Board, 
21internally, externally or by hypodermic method in a race or 
22prior
thereto, or whoever knowingly enters a horse in any race 
23within a period of 24
hours after any hypnotic, narcotic, 
24stimulant, depressant or any other chemical
substance which may 
 
 
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1affect the speed of a horse at any time, except those
chemical 
2substances permitted by ruling of the Board, has been 
3administered to
such horse either internally or externally or 
4by hypodermic method for the
purpose of increasing or retarding 
5the speed of such horse shall be guilty of a
Class 4 felony. 
6The Board shall suspend or revoke such violator's license.

7 (b) The term "hypnotic" as used in this Section includes 
8all barbituric
acid preparations and derivatives.

9 (c) The term "narcotic" as used in this Section includes 
10opium and
all its alkaloids, salts, preparations and 
11derivatives, cocaine
and all its salts, preparations and 
12derivatives and substitutes.

13 (d) The provisions of this Section 36 and the treatment 
14authorized herein
apply to horses entered in and competing in 
15race meetings as defined in
Section 3.07 of this Act and to 
16horses entered in and competing at any county
fair.

17(Source: P.A. 79-1185.)


18 (230 ILCS 5/39.2 new)
19 Sec. 39.2. Prohibition of political contributions from 
20certain licensees and applicants.
21 (a) The General Assembly has a compelling interest in 
22protecting the integrity of both the electoral process and the 
23legislative process by preventing corruption and the 
24appearance of corruption which may arise through permitting 
25certain political campaign contributions by certain persons 
 
 
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1involved in the horse racing and video gaming industries and 
2regulated by the State. Unlike most other regulated industries, 
3horse racing and gaming are especially susceptible to 
4corruption and potential criminal influence. In Illinois, only 
5licensed horse racing and gaming activities are legal and all 
6other such activities are strictly prohibited. Given these 
7circumstances, it is imperative to eliminate any potential 
8corrupt influence in the horse racing and industries and the 
9electoral process.
10 Banning political campaign contributions by certain 
11persons subject to this Section to State officeholders and 
12candidates for such offices and to county and municipal 
13officeholders and candidates for such offices in counties and 
14municipalities that receive financial benefits from horse 
15racing and gaming activities is necessary to prevent corruption 
16and the appearance of corruption that may arise when political 
17campaign contributions and horse racing and gaming that is 
18regulated by the State and that confers benefits on counties 
19and municipalities are intermingled.
20 (b) As used in this Section:
21 "Affiliated entity" means (i) any corporate parent and each 
22operating subsidiary of the business entity applying for or 
23holding a license, (ii) each operating subsidiary of the 
24corporate parent of the business entity applying for or holding 
25a license, (iii) any organization recognized by the United 
26States Internal Revenue Service as a tax-exempt organization 
 
 
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1described in Section 501(c) of the Internal Revenue Code of 
21986 (or any successor provision of federal tax law) 
3established by one or more business entities seeking or holding 
4a license, any affiliated entity of such business entity, or 
5any affiliated person of such business entity, and (iv) any 
6political committee for which the business entity applying for 
7or holding a license, or any 501(c) organization described in 
8item (iii) related to that business entity, is the sponsoring 
9entity, as defined in Section 9-3 of the Election Code. For 
10purposes of item (iv), the funding of all business entities 
11applying for or holding a license shall be aggregated in 
12determining whether such political committee is an affiliated 
13entity.
14 "Affiliated person" means (i) any person with any ownership 
15interest or distributive share in excess of 7.5% of any 
16business entity applying for or holding a license, (ii) 
17executive employees of any such business entity, and (iii) the 
18spouse of the persons described in items (i) and (ii).
19 "Business entity" means any entity doing business for 
20profit, whether organized as a corporation, partnership, sole 
21proprietorship, limited liability company, or partnership or 
22otherwise.
23 "Contribution" means a contribution as defined in Section 
249-1.4 of the Election Code.
25 "Declared candidate" means a person who has filed a 
26statement of candidacy and petition for nomination or election 
 
 
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1in the principal office of the State Board of Elections, or in 
2the office of the appropriate election authority for any county 
3or municipality in which a race track is located.
4 "Executive employee" means (i) any person who is an officer 
5or director or who fulfills duties equivalent to those of an 
6officer or director of a business entity applying for or 
7holding a license and (ii) any employee of such business entity 
8who is required to register under the Lobbyist Registration 
9Act.
10 "License" means any organization, inter-track wagering, 
11inter-track wagering location, advance deposit wagering, 
12concessionaire, or electronic gaming license issued pursuant 
13to this Act.
14 "Officeholder" means the Governor, Lieutenant Governor, 
15Attorney General, Secretary of State, Comptroller, Treasurer, 
16member of the General Assembly, or any officeholder in any 
17county or municipality in which a race track is located.
18 (c) Any person or business entity applying for or holding a 
19license, any affiliated entities or persons of such business 
20entity, any horsemen's association, and any entities or persons 
21soliciting a contribution or causing a contribution to be made 
22on behalf of such person, business entity, or horsemen's 
23association, are prohibited from making any contribution to any 
24officeholder or declared candidate or any political committee 
25affiliated with any officeholder or declared candidate, as 
26defined in Section 9-1.8 of the Election Code. This prohibition 
 
 
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1shall commence upon filing of an application for a license and 
2shall continue for a period of 2 years after termination, 
3suspension or revocation of the license.
4 The Board shall have authority to suspend, revoke, or 
5restrict the license and to impose civil penalties of up to 
6$100,000 for each violation of this subsection (c). A notice of 
7each such violation and the penalty imposed shall be published 
8on the Board's Internet website and in the Illinois Register. 
9Payments received by the State pursuant to this subsection 
10shall be deposited into the General Revenue Fund.
11 Any officeholder or declared candidate or any political 
12committee affiliated with any officeholder or declared 
13candidate that has received a contribution in violation of this 
14subsection (c) shall pay an amount equal to the value of the 
15contribution to the State no more than 30 days after notice of 
16the violation concerning the contribution appears in the 
17Illinois Register. Payments received by the State pursuant to 
18this subsection (c) shall be deposited into the General Revenue 
19Fund.
20 (d) The Board shall post on its website a list of all 
21persons, business entities, horsemen's associations, and 
22affiliated entities prohibited from making contributions to 
23any officeholder or declared candidate political committee 
24pursuant to subsection (c), which list shall be updated and 
25published, at a minimum, every 6 months.
26 Any person, business entity, horsemen's association, or 
 
 
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1affiliated entity prohibited from making contributions to any 
2officeholder or declared candidate political committee 
3pursuant to subsection (c) shall notify the Board within 7 days 
4after discovering any necessary change or addition to the 
5information relating to that person, business entity, 
6horsemen's association, or affiliated entity contained in the 
7list.
8 An individual who acts in good faith and in reliance on any 
9information contained in the list shall not be subject to any 
10penalties or liability imposed for a violation of this Section.
11 (e) If any provision of this Section is held invalid or its 
12application to any person or circumstance is held invalid, the 
13invalidity of that provision or application does not affect the 
14other provisions or applications of this Section that can be 
15given effect without the invalid application or provision.




16 (230 ILCS 5/40) (from Ch. 8, par. 37-40)



17 Sec. 40. 
(a) The imposition of any fine or penalty provided 
18in this Act
shall not preclude the Board in its rules and 
19regulations from imposing a
fine or penalty for any other 
20action which, in the Board's discretion, is a
detriment or 
21impediment to horse racing.

22 (b) The Director of Agriculture or his or her authorized 
23representative
shall impose the following monetary penalties 
24and hold administrative
hearings as required for failure to 
25submit the following applications,
lists, or reports within the 
 
 
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1time period, date or manner required by
statute or rule or for 
2removing a foal from Illinois prior to inspection:


3  (1) late filing of a renewal application for offering 
4 or standing
stallion for service:


5   (A) if an application is submitted no more than 30 
6 days late, $50;


7   (B) if an application is submitted no more than 45 
8 days late, $150; or


9   (C) if an application is submitted more than 45 
10 days late, if filing
of the application is allowed 
11 under an administrative hearing, $250;


12  (2) late filing of list or report of mares bred:


13   (A) if a list or report is submitted no more than 
14 30 days late, $50;


15   (B) if a list or report is submitted no more than 
16 60 days late $150; or


17   (C) if a list or report is submitted more than 60 
18 days late, if filing
of the list or report is allowed 
19 under an administrative hearing, $250;


20  (3) filing an Illinois foaled thoroughbred mare status 
21 report after the statutory deadline as provided in 
22 subsection (k) of Section 30 of this Act
December 31:


23   (A) if a report is submitted no more than 30 days 
24 late, $50;


25   (B) if a report is submitted no more than 90 days 
26 late, $150;


 
 
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1   (C) if a report is submitted no more than 150 days 
2 late, $250; or


3   (D) if a report is submitted more than 150 days 
4 late, if filing of
the report is allowed under an 
5 administrative hearing, $500;


6  (4) late filing of application for foal eligibility 
7 certificate:


8   (A) if an application is submitted no more than 30 
9 days late, $50;


10   (B) if an application is submitted no more than 90 
11 days late, $150;


12   (C) if an application is submitted no more than 150 
13 days late, $250; or


14   (D) if an application is submitted more than 150 
15 days late, if
filing of the application is allowed 
16 under an administrative hearing, $500;


17  (5) failure to report the intent to remove a foal from 
18 Illinois prior
to inspection, identification and 
19 certification by a Department of
Agriculture investigator, 
20 $50; and


21  (6) if a list or report of mares bred is incomplete, 
22 $50 per mare not
included on the list or report.

23 Any person upon whom monetary penalties are imposed under 
24this Section 3
times within a 5 year period shall have any 
25further monetary penalties
imposed at double the amounts set 
26forth above. All monies assessed and
collected for violations 
 
 
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1relating to thoroughbreds shall be paid into the
Thoroughbred 
2Breeders Fund. All monies assessed and collected for
violations 
3relating to standardbreds shall be paid into the Standardbred

4Breeders Fund.

5(Source: P.A. 87-397.)


6 (230 ILCS 5/54.75)

7 Sec. 54.75. Horse Racing Equity Trust Fund.
8 (a) There is created a Fund to be known as the Horse
Racing

9Equity Trust Fund, which is a non-appropriated trust fund held 
10separate and apart from State moneys. The Fund shall consist of 
11moneys paid into it by owners licensees under
the Illinois 
12Riverboat Gambling Act for the purposes described in this 
13Section. The Fund shall
be administered
by the Board. Moneys in 
14the Fund shall be distributed as directed and certified by the 
15Board in accordance with the provisions of subsection (b).
16 (b) The moneys deposited into the Fund, plus any accrued 
17interest on those moneys, shall be distributed
within 10 days 
18after those moneys are deposited into the Fund as follows: 
19  (1) Sixty percent of all moneys distributed under this 
20 subsection shall be
distributed to organization licensees 
21 to be distributed at their race
meetings as purses. 
22 Fifty-seven percent of the amount distributed under this

23 paragraph (1) shall be distributed for thoroughbred race 
24 meetings and
43% shall be distributed for standardbred race 
25 meetings. Within each
breed, moneys shall be allocated to 
 
 
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1 each organization licensee's purse
fund in accordance with 
2 the ratio between the purses generated for that
breed by 
3 that licensee during the prior calendar year and the total 
4 purses
generated throughout the State for that breed during 
5 the prior calendar
year by licensees in the current 
6 calendar year. 
7  (2) The remaining 40% of the moneys distributed under 
8 this
subsection (b) shall be distributed as follows: 
9   (A) 11% shall be distributed to any person (or its 
10 successors or assigns) who had operating control of a 
11 racetrack that conducted live racing in 2002 at a 
12 racetrack in a
county with at least 230,000 inhabitants 
13 that borders the Mississippi River and is a licensee in 
14 the current year; and 
15   (B) the remaining 89% shall be distributed pro rata

16 according to the aggregate
proportion of total handle 
17 from wagering on live races conducted in Illinois 
18 (irrespective of where the wagers are placed) for 
19 calendar years 2004 and 2005
to any person (or its

20 successors or assigns) who (i) had
majority operating 
21 control of a racing facility at which live racing was 
22 conducted in
calendar year 2002, (ii) is a licensee in 
23 the current
year, and (iii) is not eligible to receive 
24 moneys under subparagraph (A) of this paragraph (2). 
25   The moneys received by an organization licensee 
26 under this paragraph (2) shall be used by each 
 
 
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1 organization licensee to improve, maintain, market, 
2 and otherwise operate its racing facilities to conduct 
3 live racing, which shall include backstretch services 
4 and capital improvements related to live racing and the 
5 backstretch. Any organization licensees sharing common 
6 ownership may pool the moneys received and spent at all 
7 racing facilities commonly owned in order to meet these 
8 requirements. 
9  If any person identified in this paragraph (2) becomes

10 ineligible to receive moneys from the Fund, such amount 
11 shall be redistributed
among the remaining persons in 
12 proportion to their percentages otherwise
calculated. 
13 (c) The Board shall monitor organization licensees to 
14ensure that moneys paid to organization licensees under this 
15Section are distributed by the organization licensees as 
16provided in subsection (b). 

17(Source: P.A. 95-1008, eff. 12-15-08.)

18 (230 ILCS 5/56 new)
19 Sec. 56. Electronic gaming.
20 (a) A person, firm, corporation, or limited liability 
21company having operating control of a race track may apply to 
22the Gaming Board for an electronic gaming license. An 
23electronic gaming license shall authorize its holder to conduct 
24electronic gaming on the grounds of the race track controlled 
25by the licensee's race track. Only one electronic gaming 
 
 
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1license may be awarded for any race track. A holder of an 
2electronic gaming license shall be subject to the Illinois 
3Gambling Act and rules of the Illinois Gaming Board concerning 
4electronic gaming. If the person, firm, corporation, or limited 
5liability company having operating control of a race track is 
6found by the Illinois Gaming Board to be unsuitable for an 
7electronic gaming license under the Illinois Gambling Act and 
8rules of the Gaming Board, that person, firm, corporation, or 
9limited liability company shall not be granted an electronic 
10gaming license. Each license shall specify the number of gaming 
11positions that its holder may operate.
12 An electronic gaming licensee may not permit persons under 
1321 years of age to be present in its electronic gaming 
14facility, but the licensee may accept wagers on live racing and 
15inter-track wagers at its electronic gaming facility.
16 (b) For purposes of this subsection, "adjusted gross 
17receipts" means an electronic gaming licensee's gross receipts 
18less winnings paid to wagerers and shall also include any 
19amounts that would otherwise be deducted pursuant to subsection 
20(a-9) of Section 13 of the Illinois Gambling Act. The adjusted 
21gross receipts by an electronic gaming licensee from electronic 
22gaming remaining after the payment of taxes under Section 13 of 
23the Illinois Gambling Act shall be distributed as follows:
24  (1) Amounts shall be paid to the purse account at the 
25 track at which the organization licensee is conducting 
26 racing equal to the following:
 
 
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1   12.75% of annual adjusted gross receipts up to and 
2 including $75,000,000;
3   20% of annual adjusted gross receipts in excess of 
4 $75,000,000 but not exceeding $100,000,000;
5   26.5% of annual adjusted gross receipts in excess 
6 of $100,000,000 but not exceeding $125,000,000; and
7   20.5% of annual adjusted gross receipts in excess 
8 of $125,000,000.
9  (2) The remainder shall be retained by the electronic 
10 gaming licensee.
11 (c) Electronic gaming receipts placed into the purse 
12account of an organization licensee racing thoroughbred horses 
13shall be used for purses, for health care services or worker's 
14compensation for racing industry workers, for equine research, 
15for programs to care for and transition injured and retired 
16thoroughbred horses that race at the race track, or for horse 
17ownership promotion, in accordance with the agreement of the 
18horsemen's association representing the largest number of 
19owners, breeders, and trainers who race at that organization 
20licensee's race meetings.
21 Annually, from the purse account of an organization 
22licensee racing thoroughbred horses in this State, except for 
23in Madison County, an amount equal to 12% of the electronic 
24gaming receipts placed into the purse accounts shall be paid to 
25the Illinois Thoroughbred Breeders Fund and shall be used for 
26owner awards; a stallion program pursuant to paragraph (3) of 
 
 
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1subsection (g) of Section 30 of this Act; and Illinois 
2conceived and foaled stakes races pursuant to paragraph (2) of 
3subsection (g) of Section 30 of this Act, as specifically 
4designated by the horsemen's association representing the 
5largest number of owners, breeders, and trainers who race at 
6the organization licensee's race meetings.
7 Annually, from the purse account of an organization 
8licensee racing thoroughbred horses in Madison County, an 
9amount equal to 10% of the electronic gaming receipts placed 
10into the purse accounts shall be paid to the Illinois 
11Thoroughbred Breeders Fund and shall be used for owner awards; 
12a stallion program pursuant to paragraph (3) of subsection (g) 
13of Section 30 of this Act; and Illinois conceived and foaled 
14stakes races pursuant to paragraph (2) of subsection (g) of 
15Section 30 of this Act, as specifically designated by the 
16horsemen's association representing the largest number of 
17owners, breeders, and trainers who race at the organization 
18licensee's race meetings. 
19 Annually, from the purse account of an organization 
20licensee conducting thoroughbred races at a race track in 
21Madison County, an amount equal to 1% of the electronic gaming 
22receipts distributed to purses per subsection (b) of this 
23Section 56 shall be paid as follows: 0.33 1/3% to Southern 
24Illinois University Department of Animal Sciences for equine 
25research and education, an amount equal to 0.33 1/3% of the 
26electronic gaming receipts shall be used to operate laundry 
 
 
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1facilities for backstretch workers at that race track, and an 
2amount equal to 0.33 1/3% of the electronic gaming receipts 
3shall be paid to programs to care for injured and unwanted 
4horses that race at that race track.
5 Annually, from the purse account of organization licensees 
6conducting thoroughbred races at race tracks in Cook County, 
7$100,000 shall be paid for division and equal distribution to 
8the animal sciences department of each Illinois public 
9university system engaged in equine research and education on 
10or before the effective date of this amendatory Act of the 98th 
11General Assembly for equine research and education.
12 (d) Annually, from the purse account of an organization 
13licensee racing standardbred horses, an amount equal to 15% of 
14the electronic gaming receipts placed into that purse account 
15shall be paid to the Illinois Colt Stakes Purse Distribution 
16Fund. Moneys deposited into the Illinois Colt Stakes Purse 
17Distribution Fund shall be used for standardbred racing as 
18authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of 
19subsection (g) of Section 31 of this Act and for bonus awards 
20as authorized under paragraph 6 of subsection (j) of Section 31 
21of this Act.
22 (e) As a requirement for continued eligibility to conduct 
23electronic gaming, each organization licensee must promote 
24live racing and horse ownership through marketing and 
25promotional efforts. To meet this requirement, all 
26organization licensees operating at each race track facility 
 
 
09800SB1739sam001- 363 -LRB098 10559 AMC 42403 a


1must collectively expend the amount of the pari-mutuel tax 
2credit that was certified by the Illinois Racing Board in the 
3prior calendar year pursuant to Section 32.1 of this Act for 
4that race track facility, in addition to the amount that was 
5expended by each organizational licensee for such efforts in 
6calendar year 2009. Such incremental expenditures must be 
7directed to assure that all marketing expenditures, including 
8those for the organization licensee's electronic gaming 
9facility, advertise, market, and promote horse racing or horse 
10ownership. The amount spent by the organization licensee for 
11such marketing and promotional efforts in 2009 shall be 
12certified by the Board no later than 90 days after the 
13effective date of this Section.
14 The Board shall review any amounts expended pursuant to 
15this subsection (e) and shall also include an itemized 
16description of the amount that was expended by each 
17organization licensee pursuant to this subsection (e) in the 
18annual report that the Board is required to submit pursuant to 
19subsection (d) of Section 14 of the Illinois Horse Racing Act 
20of 1975. 
21 (f) The Illinois Gaming Board shall submit a report to the 
22General Assembly on or before December 31, 2014 that examines 
23the feasibility of conducting electronic gaming at the Illinois 
24State Fairgrounds in Sangamon County. At a minimum, this report 
25shall analyze the projected revenues that will be generated, 
26the potential for cannibalization of existing riverboats, 
 
 
09800SB1739sam001- 364 -LRB098 10559 AMC 42403 a


1casinos, or other electronic gaming facilities, and the 
2potential detriment to the surrounding area and its population. 
3The report shall include the Illinois Gaming Board's findings 
4together with appropriate recommendations for legislative 
5action. 

6 Section 90-40. The Riverboat Gambling Act is amended by 
7changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11, 
811.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23, 
9and 24 and by adding Sections 5.3, 7.6, 7.7, 7.8, 7.9, 7.10, 
107.11, 7.12, and 18.2 as follows:




11 (230 ILCS 10/1) (from Ch. 120, par. 2401)



12 Sec. 1. Short title. This Act shall be known and may be 
13cited as the
Illinois Riverboat Gambling Act.

14(Source: P.A. 86-1029.)





15 (230 ILCS 10/2) (from Ch. 120, par. 2402)



16 Sec. 2. Legislative Intent. 

17 (a) This Act is intended to benefit the
people of the State 
18of Illinois
by assisting economic development, and promoting 
19Illinois tourism,
and by increasing the amount of revenues 
20available to the State to assist and
support education, and to 
21defray State expenses, including unpaid bills.

22 (b) While authorization of riverboat and casino gambling 
23will enhance investment,
beautification, development and 
 
 
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1tourism in Illinois, it is recognized that it will do so

2successfully only if public confidence and trust in the 
3credibility and
integrity of the gambling operations and the 
4regulatory process is
maintained. Therefore, regulatory 
5provisions of this Act are designed to
strictly regulate the 
6facilities, persons, associations and practices
related to 
7gambling operations pursuant to the police powers of the State,

8including comprehensive law enforcement supervision.

9 (c) The Illinois Gaming Board established under this Act 
10should, as soon
as possible, inform each applicant for an 
11owners license of the Board's
intent to grant or deny a 
12license.

13(Source: P.A. 93-28, eff. 6-20-03.)





14 (230 ILCS 10/3) (from Ch. 120, par. 2403)



15 Sec. 3. Riverboat Gambling Authorized. 

16 (a) Riverboat and casino gambling
operations and 
17electronic gaming operations and the system of wagering

18incorporated therein, as defined in this Act, are hereby 
19authorized to the
extent that they are carried out in 
20accordance with the provisions of this
Act.

21 (b) This Act does not apply to the pari-mutuel system of 
22wagering used
or intended to be used in connection with the 
23horse-race meetings as
authorized under the Illinois Horse 
24Racing Act of 1975, lottery games
authorized under the Illinois 
25Lottery Law, bingo authorized under the Bingo
License and Tax 
 
 
09800SB1739sam001- 366 -LRB098 10559 AMC 42403 a


1Act, charitable games authorized under the Charitable Games
Act 
2or pull tabs and jar games conducted under the Illinois Pull 
3Tabs and Jar
Games Act. This Act applies to electronic gaming 
4authorized under the Illinois Horse Racing Act of 1975 to the 
5extent provided in that Act and in this Act. 

6 (c) Riverboat gambling conducted pursuant to this Act may 
7be authorized
upon any water within the State of Illinois or 
8any
water other than Lake Michigan which constitutes a boundary 
9of the State
of Illinois.
Notwithstanding any provision in this 
10subsection (c) to the contrary, a
licensee that receives its 
11license pursuant to subsection (e-5) of Section 7
may
conduct 
12riverboat gambling on Lake Michigan from a home dock located on 
13Lake
Michigan subject to any limitations contained in Section 
147. Notwithstanding any provision in this subsection (c) to the 
15contrary, a licensee may conduct gambling at its home dock 
16facility as provided in Sections 7 and 11. A licensee may 
17conduct riverboat gambling authorized under this Act

18regardless of whether it conducts excursion cruises. A licensee 
19may permit
the continuous ingress and egress of passengers for 
20the purpose of
gambling.

21 (d) Gambling that is conducted in accordance with this Act 
22using slot machines and video games of chance and other 
23electronic gambling games as defined in both the Illinois 
24Gambling Act and the Illinois Horse Racing Act of 1975 is 
25authorized. 
26(Source: P.A. 91-40, eff. 6-25-99.)





 
 
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1 (230 ILCS 10/4) (from Ch. 120, par. 2404)



2 Sec. 4. Definitions. As used in this Act:

3 (a) "Board" means the Illinois Gaming Board.

4 (b) "Occupational license" means a license issued by the 
5Board to a
person or entity to perform an occupation which the 
6Board has identified as
requiring a license to engage in 
7riverboat gambling in Illinois.

8 (c) "Gambling game" includes, but is not limited to, 
9baccarat,
twenty-one, poker, craps, slot machine, video game of 
10chance, roulette
wheel, klondike table, punchboard, faro 
11layout, keno layout, numbers
ticket, push card, jar ticket, or 
12pull tab which is authorized by the Board
as a wagering device 
13under this Act.

14 (d) "Riverboat" means a self-propelled excursion boat, a

15permanently moored barge, or permanently moored barges that are 
16permanently
fixed together to operate as one vessel, on which 
17lawful gambling is
authorized and licensed as
provided in this 
18Act.

19 "Slot machine" means any mechanical, electrical, or other 
20device, contrivance, or machine that is authorized by the Board 
21as a wagering device under this Act which, upon insertion of a 
22coin, currency, token, or similar object therein, or upon 
23payment of any consideration whatsoever, is available to play 
24or operate, the play or operation of which may deliver or 
25entitle the person playing or operating the machine to receive 
 
 
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1cash, premiums, merchandise, tokens, or anything of value 
2whatsoever, whether the payoff is made automatically from the 
3machine or in any other manner whatsoever. A slot machine:
4  (1) may utilize spinning reels or video displays or 
5 both;
6  (2) may or may not dispense coins, tickets, or tokens 
7 to winning patrons;
8  (3) may use an electronic credit system for receiving 
9 wagers and making payouts; and
10  (4) may simulate a table game. 
11 "Slot machine" does not include table games authorized by 
12the Board as a wagering device under this Act. 
13 (e) "Managers license" means a license issued by the Board 
14to a person or
entity
to manage gambling operations conducted 
15by the State pursuant to Section 7.3.

16 (f) "Dock" means the location where a riverboat moors for 
17the purpose of
embarking passengers for and disembarking 
18passengers from the riverboat.

19 (g) "Gross receipts" means the total amount of money 
20exchanged for the
purchase of chips, tokens, or electronic 
21cards by riverboat patrons.

22 (h) "Adjusted gross receipts" means the gross receipts less

23winnings paid to wagerers.

24 (i) "Cheat" means to alter the selection of criteria which 
25determine the
result of a gambling game or the amount or 
26frequency of payment in a gambling
game.

 
 
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1 (j) (Blank).

2 (k) "Gambling operation" means the conduct of authorized 
3gambling games authorized under this Act
upon a riverboat or in 
4a casino or authorized under this Act and the Illinois Horse 
5Racing Act of 1975 at an electronic gaming facility.

6 (l) "License bid" means the lump sum amount of money that 
7an applicant
bids and agrees to pay the State in return for an 
8owners license that is issued or
re-issued on or after July 1, 
92003.

10 "Table game" means a live gaming apparatus upon which 
11gaming is conducted or that determines an outcome that is the 
12object of a wager, including, but not limited to, baccarat, 
13twenty-one, blackjack, poker, craps, roulette wheel, klondike 
14table, punchboard, faro layout, keno layout, numbers ticket, 
15push card, jar ticket, pull tab, or other similar games that 
16are authorized by the Board as a wagering device under this 
17Act. "Table game" does not include slot machines or video games 
18of chance. 
19 (m) The terms "minority person", "female", and "person with 
20a disability" shall have the same meaning
as
defined in
Section 
212 of the Business Enterprise for Minorities, Females, and 
22Persons with
Disabilities Act.

23 "Authority" means the Chicago Casino Development 
24Authority. 
25 "Casino" means a facility at which lawful gambling is 
26authorized as provided in this Act. 
 
 
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1 "Owners license" means a license to conduct riverboat or 
2casino gambling operations, but does not include an electronic 
3gaming license.
4 "Licensed owner" means a person who holds an owners 
5license.
6 "Electronic gaming" means slot machine gambling, video 
7game of chance gambling, or gambling with electronic gambling 
8games as defined in the Illinois Gambling Act or defined by the 
9Board that is conducted at a race track pursuant to an 
10electronic gaming license.
11 "Electronic gaming facility" means the area where the Board 
12has authorized electronic gaming at a race track of an 
13organization licensee under the Illinois Horse Racing Act of

141975 that holds an electronic gaming license.
15 "Electronic gaming license" means a license issued by the 
16Board under Section 7.6 of this Act authorizing electronic 
17gaming at an electronic gaming facility.
18 "Electronic gaming licensee" means an entity that holds an 
19electronic gaming license.
20 "Organization licensee" means an entity authorized by the 
21Illinois Racing Board to conduct pari-mutuel wagering in 
22accordance with the Illinois Horse Racing Act of 1975. With 
23respect only to electronic gaming, "organization licensee" 
24includes the authorization for electronic gaming created under 
25subsection (a) of Section 56 of the Illinois Horse Racing Act 
26of 1975. 
 
 
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1 "Casino operator license" means the license held by the 
2person or entity selected by the Authority to manage and 
3operate a riverboat or casino within the geographic area of the 
4authorized municipality pursuant to this Act and the Chicago 
5Casino Development Authority Act. 
6(Source: P.A. 95-331, eff. 8-21-07; 96-1392, eff. 1-1-11.)





7 (230 ILCS 10/5) (from Ch. 120, par. 2405)


8 Sec. 5. Gaming Board. 

9 (a) (1) There is hereby established the
Illinois Gaming 
10Board, which shall have the powers and duties specified in
this 
11Act and in the Chicago Casino Development Authority Act, and 
12all other powers necessary and proper to fully and
effectively 
13execute this Act for the purpose of administering, regulating,

14and enforcing the system of riverboat and casino gambling and 
15electronic gaming established by this Act and by the Chicago 
16Casino Development Authority Act. Its
jurisdiction shall 
17extend under this Act and the Chicago Casino Development 
18Authority Act to every person, association,
corporation, 
19partnership and trust involved in riverboat and casino gambling

20operations and electronic gaming in the State of Illinois.

21 (2) Notwithstanding any provision of this Section to the 
22contrary, the term of office of each member of the Board 
23appointed by the Governor who is sitting on the Board on the 
24effective date of this amendatory Act of the 98th General 
25Assembly is terminated on that effective date. 
 
 
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1 Beginning on the 90th day after the effective date of this 
2amendatory Act of the 98th General Assembly, the The Board 
3shall consist of 5 members to be appointed by the Governor
with 
4the advice and consent of the Senate, one of whom shall be 
5designated
by the Governor to be chairperson chairman. Each 
6member shall have a reasonable
knowledge of the practice, 
7procedure and principles of gambling operations.
Each member 
8shall either be a resident of Illinois or shall certify that he 
9or she
will become a resident of Illinois before taking office.
10 For the purposes of this subsection (a), the Governor may 
11make a nomination and the Senate may confirm the nominee in 
12advance of the commencement of the nominee's term of office. 
13The Governor shall make nominations for appointment to the 
14Board under this Section within 60 days after the effective 
15date of this amendatory Act of the 98th General Assembly. A 
16Board member sitting on the Board on the effective date of this 
17amendatory Act of the 98th General Assembly may not hold over 
18in office for more than 90 days after the effective date of 
19this amendatory Act of the 98th General Assembly. Nothing in 
20this Section shall prevent the Governor from making a temporary 
21appointment or nominating a Board member holding office on the 
22day before the effective date of this amendatory Act of the 
2398th General Assembly. 
24  The Board must include the following:
25  (A) One member who has received, at a minimum, a 
26 bachelor's degree from an accredited school and at least 10 
 
 
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1 years of verifiable training and experience in the fields 
2 of investigation and law enforcement.
3  (B) One member who is a certified public accountant 
4 with experience in auditing and with knowledge of complex 
5 corporate structures and transactions.
6  (C) One member who has 5 years' experience as a 
7 principal, senior officer, or director of a company or 
8 business with either material responsibility for the daily 
9 operations and management of the overall company or 
10 business or material responsibility for the policy making 
11 of the company or business.
12  (D) One member who is a lawyer licensed to practice law 
13 in Illinois.
14 No more than 3 members of the Board may be from the same 
15political party. The Board should reflect the ethnic, cultural, 
16and geographic diversity of the State. No Board member shall, 
17within a period of one year immediately preceding nomination, 
18have been employed or received compensation or fees for 
19services from a person or entity, or its parent or affiliate, 
20that has engaged in business with the Board, a licensee, or a 
21licensee under the Illinois Horse Racing Act of 1975. Board 
22members must publicly disclose all prior affiliations with 
23gaming interests, including any compensation, fees, bonuses, 
24salaries, and other reimbursement received from a person or 
25entity, or its parent or affiliate, that has engaged in 
26business with the Board, a licensee, or a licensee under the 
 
 
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1Illinois Horse Racing Act of 1975. This disclosure must be made 
2within 30 days after nomination but prior to confirmation by 
3the Senate and must be made available to the members of the 
4Senate. At least one member
shall be experienced in law 
5enforcement and criminal investigation, at
least one member 
6shall be a certified public accountant experienced in

7accounting and auditing, and at least one member shall be a 
8lawyer licensed
to practice law in Illinois.

9 (3) The terms of office of the Board members shall be 3 
10years, except
that the terms of office of the initial Board 
11members appointed pursuant to
this Act will commence from the 
12effective date of this Act and run as
follows: one for a term 
13ending July 1, 1991, 2 for a term ending July 1,
1992, and 2 for 
14a term ending July 1, 1993. Upon the expiration of the

15foregoing terms, the successors of such members shall serve a 
16term for 3
years and until their successors are appointed and 
17qualified for like terms.
Vacancies in the Board shall be 
18filled for the unexpired term in like
manner as original 
19appointments. Each member of the Board shall be
eligible for 
20reappointment at the discretion of the Governor with the
advice 
21and consent of the Senate.

22 (4) Each member of the Board shall receive $300 for each 
23day the
Board meets and for each day the member conducts any 
24hearing pursuant to
this Act. Each member of the Board shall 
25also be reimbursed for all actual
and necessary expenses and 
26disbursements incurred in the execution of official
duties.

 
 
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1 (5) No person shall be appointed a member of the Board or 
2continue to be
a member of the Board who is, or whose spouse, 
3child or parent is, a member
of the board of directors of, or a 
4person financially interested in, any
gambling operation 
5subject to the jurisdiction of this Board, or any race
track, 
6race meeting, racing association or the operations thereof 
7subject
to the jurisdiction of the Illinois Racing Board. No 
8Board member shall
hold any other public office. No person 
9shall be a
member of the Board who is not of good moral 
10character or who has been
convicted of, or is under indictment 
11for, a felony under the laws of
Illinois or any other state, or 
12the United States.

13 (5.5) No member of the Board shall engage in any political 
14activity. For the purposes of this Section, "political" means 
15any activity in support
of or in connection with any campaign 
16for federal, State, or local elective office or any political

17organization, but does not include activities (i) relating to 
18the support or
opposition of any executive, legislative, or 
19administrative action (as those
terms are defined in Section 2 
20of the Lobbyist Registration Act), (ii) relating
to collective 
21bargaining, or (iii) that are
otherwise
in furtherance of the 
22person's official
State duties or governmental and public 
23service functions.

24 (6) Any member of the Board may be removed by the Governor 
25for neglect
of duty, misfeasance, malfeasance, or nonfeasance 
26in office or for engaging in any political activity.

 
 
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1 (7) Before entering upon the discharge of the duties of his 
2office, each
member of the Board shall take an oath that he 
3will faithfully execute the
duties of his office according to 
4the laws of the State and the rules and
regulations adopted 
5therewith and shall give bond to the State of Illinois,

6approved by the Governor, in the sum of $25,000. Every such 
7bond, when
duly executed and approved, shall be recorded in the 
8office of the
Secretary of State. Whenever the Governor 
9determines that the bond of any
member of the Board has become 
10or is likely to become invalid or
insufficient, he shall 
11require such member forthwith to renew his bond,
which is to be 
12approved by the Governor. Any member of the Board who fails
to 
13take oath and give bond within 30 days from the date of his 
14appointment,
or who fails to renew his bond within 30 days 
15after it is demanded by the
Governor, shall be guilty of 
16neglect of duty and may be removed by the
Governor. The cost of 
17any bond given by any member of the Board under this
Section 
18shall be taken to be a part of the necessary expenses of the 
19Board.

20 (8) The Board shall employ such
personnel as may be 
21necessary to carry out its functions and shall determine the 
22salaries of all personnel, except those personnel whose 
23salaries are determined under the terms of a collective 
24bargaining agreement. No
person shall be employed to serve the 
25Board who is, or whose spouse, parent
or child is, an official 
26of, or has a financial interest in or financial
relation with, 
 
 
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1any operator engaged in gambling operations within this
State 
2or any organization engaged in conducting horse racing within 
3this
State. For the one year immediately preceding employment, 
4an employee shall not have been employed or received 
5compensation or fees for services from a person or entity, or 
6its parent or affiliate, that has engaged in business with the 
7Board, a licensee, or a licensee under the Illinois Horse 
8Racing Act of 1975. Any employee violating these prohibitions 
9shall be subject to
termination of employment. In addition, all 
10Board members and employees are subject to the restrictions set 
11forth in Section 5-45 of the State Officials and Employees 
12Ethics Act.

13 (9) An Administrator shall perform any and all duties that 
14the Board
shall assign him. The salary of the Administrator 
15shall be determined by
the Board and, in addition,
he shall be 
16reimbursed for all actual and necessary expenses incurred by

17him in discharge of his official duties. The Administrator 
18shall keep
records of all proceedings of the Board and shall 
19preserve all records,
books, documents and other papers 
20belonging to the Board or entrusted to
its care. The 
21Administrator shall devote his full time to the duties of
the 
22office and shall not hold any other office or employment. In 
23addition to other prescribed duties, the Administrator shall 
24establish a system by which personnel assisting the Board 
25regarding the issuance of owners licenses, whether it be 
26relocation, re-issuance, or the initial issuance, shall be 
 
 
09800SB1739sam001- 378 -LRB098 10559 AMC 42403 a


1assigned specific duties in each instance, thereby preventing a 
2conflict of interest in regards to the decision-making process. 
3A conflict of interest exists if a situation influences or 
4creates the appearance that it may influence judgment or 
5performance of duties or responsibilities.

6 (b) The Board shall have general responsibility for the 
7implementation
of this Act. Its duties include, without 
8limitation, the following:


9  (1) To decide promptly and in reasonable order all 
10 license applications.
Any party aggrieved by an action of 
11 the Board denying, suspending,
revoking, restricting or 
12 refusing to renew a license may request a hearing
before 
13 the Board. A request for a hearing must be made to the 
14 Board in
writing within 5 days after service of notice of 
15 the action of the Board.
Notice of the action of the Board 
16 shall be served either by personal
delivery or by certified 
17 mail, postage prepaid, to the aggrieved party.
Notice 
18 served by certified mail shall be deemed complete on the 
19 business
day following the date of such mailing. The Board 
20 shall conduct all
requested hearings promptly and in 
21 reasonable order;


22  (2) To conduct all hearings pertaining to civil 
23 violations of this Act
or rules and regulations promulgated 
24 hereunder;


25  (3) To promulgate such rules and regulations as in its 
26 judgment may be
necessary to protect or enhance the 
 
 
09800SB1739sam001- 379 -LRB098 10559 AMC 42403 a


1 credibility and integrity of gambling
operations 
2 authorized by this Act and the regulatory process 
3 hereunder;


4  (4) To provide for the establishment and collection of 
5 all license and
registration fees and taxes imposed by this 
6 Act and the rules and
regulations issued pursuant hereto. 
7 All such fees and taxes shall be
deposited into the State 
8 Gaming Fund;


9  (5) To provide for the levy and collection of penalties 
10 and fines for the
violation of provisions of this Act and 
11 the rules and regulations
promulgated hereunder. All such 
12 fines and penalties shall be deposited
into the Education 
13 Assistance Fund, created by Public Act 86-0018, of the

14 State of Illinois;


15  (6) To be present through its inspectors and agents any 
16 time gambling
operations are conducted on any riverboat, in 
17 any casino, or at any electronic gaming
facility for the 
18 purpose of certifying the
revenue thereof, receiving 
19 complaints from the public, and conducting such
other 
20 investigations into the conduct of the gambling games and 
21 the
maintenance of the equipment as from time to time the 
22 Board may deem
necessary and proper;


23  (7) To review and rule upon any complaint by a licensee

24 regarding any investigative procedures of the State which 
25 are unnecessarily
disruptive of gambling operations. The 
26 need to inspect and investigate
shall be presumed at all 
 
 
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1 times. The disruption of a licensee's operations
shall be 
2 proved by clear and convincing evidence, and establish 
3 that: (A)
the procedures had no reasonable law enforcement 
4 purposes, and (B) the
procedures were so disruptive as to 
5 unreasonably inhibit gambling operations;


6  (8) To hold at least one meeting each quarter of the 
7 fiscal
year. In addition, special meetings may be called by 
8 the Chairman or any 2
Board members upon 72 hours written 
9 notice to each member. All Board
meetings shall be subject 
10 to the Open Meetings Act. Three members of the
Board shall 
11 constitute a quorum, and 3 votes shall be required for any

12 final determination by the Board. The Board shall keep a 
13 complete and
accurate record of all its meetings. A 
14 majority of the members of the Board
shall constitute a 
15 quorum for the transaction of any business, for the

16 performance of any duty, or for the exercise of any power 
17 which this Act
requires the Board members to transact, 
18 perform or exercise en banc, except
that, upon order of the 
19 Board, one of the Board members or an
administrative law 
20 judge designated by the Board may conduct any hearing

21 provided for under this Act or by Board rule and may 
22 recommend findings and
decisions to the Board. The Board 
23 member or administrative law judge
conducting such hearing 
24 shall have all powers and rights granted to the
Board in 
25 this Act. The record made at the time of the hearing shall 
26 be
reviewed by the Board, or a majority thereof, and the 
 
 
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1 findings and decision
of the majority of the Board shall 
2 constitute the order of the Board in
such case;


3  (9) To maintain records which are separate and distinct 
4 from the records
of any other State board or commission. 
5 Such records shall be available
for public inspection and 
6 shall accurately reflect all Board proceedings;


7  (10) To file a written annual report with the Governor 
8 on or before
March 1 each year and such additional reports 
9 as the Governor may request.
The annual report shall 
10 include a statement of receipts and disbursements
by the 
11 Board, actions taken by the Board, and any additional 
12 information
and recommendations which the Board may deem 
13 valuable or which the Governor
may request;


14  (11) (Blank);


15  (12) (Blank);


16  (13) To assume responsibility for administration and 
17 enforcement of the
Video Gaming Act; and
18  (13.1) To assume responsibility for the administration 
19 and enforcement
of operations at electronic gaming 
20 facilities pursuant to this Act and the
Illinois Horse 
21 Racing Act of 1975; 
22  (13.2) To assume responsibility for the administration 
23 and enforcement of gambling operations at the Chicago 
24 Casino Development Authority's casino pursuant to the 
25 Chicago Casino Development Authority Act; and 
26  (14) To adopt, by rule, a code of conduct governing 
 
 
09800SB1739sam001- 382 -LRB098 10559 AMC 42403 a


1 Board members and employees that ensure, to the maximum 
2 extent possible, that persons subject to this Code avoid 
3 situations, relationships, or associations that may 
4 represent or lead to a conflict of interest.

5 Any action by the Board or staff of the Board, including, 
6but not limited to, denying a renewal, approving procedures 
7(including internal controls), levying a fine or penalty, 
8promotions, or other activities affecting an applicant for 
9licensure or a licensee, may, at the discretion of the 
10applicant or licensee, be appealed to an administrative law 
11judge in accordance with subsection (b) of Section 17.1.
12 Internal controls and changes submitted by licensees must 
13be reviewed and either approved or denied with cause within 60 
14days after receipt by the Illinois Gaming Board. In the event 
15an internal control submission or change does not meet the 
16standards set by the Board, staff of the Board must provide 
17technical assistance to the licensee to rectify such 
18deficiencies within 60 days after the initial submission and 
19the revised submission must be reviewed and approved or denied 
20with cause within 60 days. For the purposes of this paragraph, 
21"with cause" means that the approval of the submission would 
22jeopardize the integrity of gaming. In the event the Board 
23staff has not acted within the timeframe, the submission shall 
24be deemed approved.
25 (c) The Board shall have jurisdiction over and shall 
26supervise all
gambling operations governed by this Act and the 
 
 
09800SB1739sam001- 383 -LRB098 10559 AMC 42403 a


1Chicago Casino Development Authority Act. The Board shall have 
2all powers
necessary and proper to fully and effectively 
3execute the provisions of
this Act and the Chicago Casino 
4Development Authority Act, including, but not limited to, the 
5following:


6  (1) To investigate applicants and determine the 
7 eligibility of
applicants for licenses and to select among 
8 competing applicants the
applicants which best serve the 
9 interests of the citizens of Illinois.


10  (2) To have jurisdiction and supervision over all 
11 riverboat gambling
operations authorized under this Act 
12 and the Chicago Casino Development Authority Act in this 
13 State and all persons in places on riverboats where 
14 gambling
operations are conducted.


15  (3) To promulgate rules and regulations for the purpose 
16 of administering
the provisions of this Act and the Chicago 
17 Casino Development Authority Act and to prescribe rules, 
18 regulations and
conditions under which all riverboat 
19 gambling operations subject to this
Act and the Chicago 
20 Casino Development Authority Act in the State shall be

21 conducted. Such rules and regulations are to provide for 
22 the prevention of
practices detrimental to the public 
23 interest and for the best interests of
riverboat gambling, 
24 including rules and regulations regarding the
inspection 
25 of electronic gaming facilities, casinos, and such 
26 riverboats, and the review of any permits or licenses

 
 
09800SB1739sam001- 384 -LRB098 10559 AMC 42403 a


1 necessary to operate a riverboat, casino, or electronic 
2 gaming facilities under any laws or regulations applicable

3 to riverboats, casinos, or electronic gaming facilities 
4 and to impose penalties for violations thereof.


5  (4) To enter the office, riverboats, casinos, 
6 electronic gaming facilities, and
other facilities, or 
7 other
places of business of a licensee, where evidence of 
8 the compliance or
noncompliance with the provisions of this 
9 Act and the Chicago Casino Development Authority Act is 
10 likely to be found.


11  (5) To investigate alleged violations of this Act, the 
12 Chicago Casino Development Authority Act, or the
rules of 
13 the Board and to take appropriate disciplinary
action 
14 against a licensee or a holder of an occupational license 
15 for a
violation, or institute appropriate legal action for 
16 enforcement, or both.


17  (6) To adopt standards for the licensing of all persons 
18 and entities under this Act and the Chicago Casino 
19 Development Authority Act,
as well as for electronic or 
20 mechanical gambling games, and to establish
fees for such 
21 licenses.


22  (7) To adopt appropriate standards for all electronic 
23 gaming facilities, riverboats, casinos,
and other 
24 facilities authorized under this Act and the Chicago Casino 
25 Development Authority Act.


26  (8) To require that the records, including financial or 
 
 
09800SB1739sam001- 385 -LRB098 10559 AMC 42403 a


1 other statements
of any licensee under this Act and the 
2 Chicago Casino Development Authority Act, shall be kept in 
3 such manner as prescribed
by the Board and that any such 
4 licensee involved in the ownership or
management of 
5 gambling operations submit to the Board an annual balance

6 sheet and profit and loss statement, list of the 
7 stockholders or other
persons having a 1% or greater 
8 beneficial interest in the gambling
activities of each 
9 licensee, and any other information the Board deems

10 necessary in order to effectively administer this Act and 
11 the Chicago Casino Development Authority Act and all rules,

12 regulations, orders and final decisions promulgated under 
13 this Act and the Chicago Casino Development Authority Act.


14  (9) To conduct hearings, issue subpoenas for the 
15 attendance of
witnesses and subpoenas duces tecum for the 
16 production of books, records
and other pertinent documents 
17 in accordance with the Illinois
Administrative Procedure 
18 Act, and to administer oaths and affirmations to
the 
19 witnesses, when, in the judgment of the Board, it is 
20 necessary to
administer or enforce this Act, the Chicago 
21 Casino Development Authority Act, or the Board rules.


22  (10) To prescribe a form to be used by any licensee 
23 involved in the
ownership or management of gambling 
24 operations as an
application for employment for their 
25 employees.


26  (11) To revoke or suspend licenses, other than the 
 
 
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1 license issued to the Chicago Casino Development 
2 Authority, as the Board may see fit and in
compliance with 
3 applicable laws of the State regarding administrative

4 procedures, and to review applications for the renewal of 
5 licenses. The
Board may suspend an owners license (other 
6 than the license issued to the Chicago Casino Development 
7 Authority), electronic gaming license, or casino operator 
8 license, without notice or hearing upon a
determination 
9 that the safety or health of patrons or employees is

10 jeopardized by continuing a gambling operation conducted 
11 under that license riverboat's operation. The suspension 
12 may
remain in effect until the Board determines that the 
13 cause for suspension
has been abated. The Board may revoke 
14 an the owners license (other than the license issued to the 
15 Chicago Casino Development Authority), electronic
gaming

16 license, or casino operator license upon a
determination 
17 that the licensee owner has not made satisfactory progress 
18 toward
abating the hazard.


19  (12) To eject or exclude or authorize the ejection or 
20 exclusion of, any
person from riverboat gambling 
21 facilities where that such person is in violation
of this 
22 Act or the Chicago Casino Development Authority Act, rules 
23 and regulations thereunder, or final orders of the
Board, 
24 or where such person's conduct or reputation is such that 
25 his or her
presence within the riverboat gambling 
26 facilities may, in the opinion of
the Board, call into 
 
 
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1 question the honesty and integrity of the gambling

2 operations or interfere with the orderly conduct thereof; 
3 provided that the
propriety of such ejection or exclusion 
4 is subject to subsequent hearing
by the Board.


5  (13) To require all licensees of gambling operations to 
6 utilize a
cashless wagering system whereby all players' 
7 money is converted to tokens,
electronic cards, or chips 
8 which shall be used only for wagering in the
gambling 
9 establishment.


10  (14) (Blank).


11  (15) To suspend, revoke or restrict licenses, other 
12 than the license issued to the Chicago Casino Development 
13 Authority, to require the
removal of a licensee or an 
14 employee of a licensee for a violation of this
Act, the 
15 Chicago Casino Development Authority Act, or a Board rule 
16 or for engaging in a fraudulent practice, and to
impose 
17 civil penalties of up to $5,000 against individuals and up 
18 to
$10,000 or an amount equal to the daily gross receipts, 
19 whichever is
larger, against licensees for each violation 
20 of any provision of the Act, the Chicago Casino Development 
21 Authority Act,
any rules adopted by the Board, any order of 
22 the Board or any other action
which, in the Board's 
23 discretion, is a detriment or impediment to riverboat

24 gambling operations.


25  (16) To hire employees to gather information, conduct 
26 investigations
and carry out any other tasks contemplated 
 
 
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1 under this Act or the Chicago Casino Development Authority 
2 Act.


3  (17) To establish minimum levels of insurance to be 
4 maintained by
licensees.


5  (18) To authorize a licensee to sell or serve alcoholic 
6 liquors, wine or
beer as defined in the Liquor Control Act 
7 of 1934 on board a riverboat or in a casino
and to have 
8 exclusive authority to establish the hours for sale and

9 consumption of alcoholic liquor on board a riverboat or in 
10 a casino, notwithstanding any
provision of the Liquor 
11 Control Act of 1934 or any local ordinance, and
regardless 
12 of whether the riverboat makes excursions. The

13 establishment of the hours for sale and consumption of 
14 alcoholic liquor on
board a riverboat or in a casino is an 
15 exclusive power and function of the State. A home
rule unit 
16 may not establish the hours for sale and consumption of 
17 alcoholic
liquor on board a riverboat or in a casino. This 
18 subdivision (18) amendatory Act of 1991 is a denial and

19 limitation of home rule powers and functions under 
20 subsection (h) of
Section 6 of Article VII of the Illinois 
21 Constitution.


22  (19) After consultation with the U.S. Army Corps of 
23 Engineers, to
establish binding emergency orders upon the 
24 concurrence of a majority of
the members of the Board 
25 regarding the navigability of water, relative to

26 excursions,
in the event
of extreme weather conditions, 
 
 
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1 acts of God or other extreme circumstances.


2  (20) To delegate the execution of any of its powers 
3 under this Act or the Chicago Casino Development Authority 
4 Act for
the purpose of administering and enforcing this 
5 Act, the Chicago Casino Development Authority Act, and the 
6 its rules adopted by the Board under both Acts and

7 regulations hereunder.

8  (20.5) To approve any contract entered into on its 
9 behalf.

10  (20.6) To appoint investigators to conduct 
11 investigations, searches, seizures, arrests, and other 
12 duties imposed under this Act, as deemed necessary by the 
13 Board. These investigators have and may exercise all of the 
14 rights and powers of peace officers, provided that these 
15 powers shall be limited to offenses or violations occurring 
16 or committed in a casino, in an electronic gaming facility, 
17 or on a riverboat or dock, as defined in subsections (d) 
18 and (f) of Section 4, or as otherwise provided by this Act, 
19 the Chicago Casino Development Authority Act, or any other 
20 law.
21  (20.7) To contract with the Department of State Police 
22 for the use of trained and qualified State police officers 
23 and with the Department of Revenue for the use of trained 
24 and qualified Department of Revenue investigators to 
25 conduct investigations, searches, seizures, arrests, and 
26 other duties imposed under this Act or the Chicago Casino 
 
 
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1 Development Authority Act and to exercise all of the rights 
2 and powers of peace officers, provided that the powers of 
3 Department of Revenue investigators under this subdivision 
4 (20.7) shall be limited to offenses or violations occurring 
5 or committed in a casino, in an electronic gaming facility, 
6 or on a riverboat or dock, as defined in subsections (d) 
7 and (f) of Section 4, or as otherwise provided by this Act 
8 or any other law. In the event the Department of State 
9 Police or the Department of Revenue is unable to fill 
10 contracted police or investigative positions, the Board 
11 may appoint investigators to fill those positions pursuant 
12 to subdivision (20.6).

13  (21) To adopt rules concerning the conduct of 
14 electronic gaming. 
15  (22) To have the same jurisdiction and supervision over 
16 casinos and electronic gaming facilities as the Board has 
17 over riverboats, including, but not limited to, the power 
18 to (i) investigate, review, and approve contracts as that 
19 power is applied to riverboats, (ii) adopt rules for 
20 administering the provisions of this Act or the Chicago 
21 Casino Development Authority Act, (iii) adopt standards 
22 for the licensing of all persons involved with a casino or 
23 electronic gaming facility, (iv) investigate alleged 
24 violations of this Act by any person involved with a casino 
25 or electronic gaming facility, and (v) require that 
26 records, including financial or other statements of any 
 
 
09800SB1739sam001- 391 -LRB098 10559 AMC 42403 a


1 casino or electronic gaming facility, shall be kept in such 
2 manner as prescribed by the Board. 
3  (23) To supervise and regulate the Chicago Casino 
4 Development Authority in accordance with the Chicago 
5 Casino Development Authority Act and the provisions of this 
6 Act. 
7  (24) (21) To take any other action as may be reasonable 
8 or appropriate to
enforce this Act, the Chicago Casino 
9 Development Authority Act, and the rules adopted by the 
10 Board under both Acts and regulations hereunder.

11 All Board powers enumerated in this Section in relation to 
12licensees shall apply equally to the holder of any casino 
13management contract entered into pursuant to the Chicago Casino 
14Development Authority Act. 
15 (d) The Board may seek and shall receive the cooperation of 
16the
Department of State Police in conducting background 
17investigations of
applicants and in fulfilling its 
18responsibilities under
this Section. Costs incurred by the 
19Department of State Police as
a result of such cooperation 
20shall be paid by the Board in conformance
with the requirements 
21of Section 2605-400 of the Department of State Police Law
(20 
22ILCS 2605/2605-400).

23 (e) The Board must authorize to each investigator and to 
24any other
employee of the Board exercising the powers of a 
25peace officer a distinct badge
that, on its face, (i) clearly 
26states that the badge is authorized by the Board
and
(ii) 
 
 
09800SB1739sam001- 392 -LRB098 10559 AMC 42403 a


1contains a unique identifying number. No other badge shall be 
2authorized
by the Board.

3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 
496-1000, eff. 7-2-10; 96-1392, eff. 1-1-11.)





5 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)


6 Sec. 5.1. Disclosure of records. 

7 (a) Notwithstanding any applicable statutory provision to 
8the contrary,
the Board shall, on written request from any 
9person, provide
information furnished by an applicant or 
10licensee concerning the applicant
or licensee, his products, 
11services or gambling enterprises and his
business holdings, as 
12follows:


13  (1) The name, business address and business telephone 
14 number of any
applicant or licensee.


15  (2) An identification of any applicant or licensee 
16 including, if an
applicant or licensee is not an 
17 individual, the names and addresses of all stockholders and 
18 directors, if the entity is a corporation; the names and 
19 addresses of all members, if the entity is a limited 
20 liability company; the names and addresses of all partners, 
21 both general and limited, if the entity is a partnership; 
22 and the names and addresses of all beneficiaries, if the 
23 entity is a trust the state of incorporation or

24 registration, the corporate officers, and the identity of 
25 all shareholders
or participants. If an applicant or 
 
 
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1 licensee has a pending registration
statement filed with 
2 the Securities and Exchange Commission, only the names
of 
3 those persons or entities holding interest of 5% or more 
4 must be provided.


5  (3) An identification of any business, including, if 
6 applicable, the
state of incorporation or registration, in 
7 which an applicant or licensee
or an applicant's or 
8 licensee's spouse or children has an equity interest
of 
9 more than 1%. If an applicant or licensee is a corporation, 
10 partnership
or other business entity, the applicant or 
11 licensee shall identify any
other corporation, partnership 
12 or business entity in which it has an equity
interest of 1%

13 or more, including, if applicable, the state of

14 incorporation or registration. This information need not 
15 be provided by a
corporation, partnership or other business 
16 entity that has a pending
registration statement filed with 
17 the Securities and Exchange Commission.


18  (4) Whether an applicant or licensee has been indicted, 
19 convicted,
pleaded guilty or nolo contendere, or forfeited 
20 bail concerning any
criminal offense under the laws of any 
21 jurisdiction, either felony or
misdemeanor (except for 
22 traffic violations), including the date, the name
and 
23 location of the court, arresting agency and prosecuting 
24 agency, the
case number, the offense, the disposition and 
25 the location and length of
incarceration.


26  (5) Whether an applicant or licensee has had any 
 
 
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1 license or
certificate issued by a licensing authority in 
2 Illinois or any other
jurisdiction denied, restricted, 
3 suspended, revoked or not renewed and a
statement 
4 describing the facts and circumstances concerning the 
5 denial,
restriction, suspension, revocation or 
6 non-renewal, including the licensing
authority, the date 
7 each such action was taken, and the reason for each
such 
8 action.


9  (6) Whether an applicant or licensee has ever filed or 
10 had filed against
it a proceeding in bankruptcy or has ever 
11 been involved in any formal
process to adjust, defer, 
12 suspend or otherwise work out the payment of any
debt 
13 including the date of filing, the name and location of the 
14 court, the
case and number of the disposition.


15  (7) Whether an applicant or licensee has filed, or been 
16 served with a
complaint or other notice filed with any 
17 public body, regarding the
delinquency in the payment of, 
18 or a dispute over the filings concerning the
payment of, 
19 any tax required under federal, State or local law, 
20 including
the amount, type of tax, the taxing agency and 
21 time periods involved.


22  (8) A statement listing the names and titles of all 
23 public officials
or officers of any unit of government, and 
24 relatives of said
public officials or officers who, 
25 directly or indirectly, own
any financial interest in, have 
26 any beneficial interest in, are the
creditors of or hold 
 
 
09800SB1739sam001- 395 -LRB098 10559 AMC 42403 a


1 any debt instrument issued by, or hold or have any
interest 
2 in any contractual or service relationship with, an 
3 applicant
or licensee.


4  (9) Whether an applicant or licensee has made, directly 
5 or indirectly,
any political contribution, or any loans, 
6 donations or other payments, to
any candidate or office 
7 holder, within 5 years from the date of filing the

8 application, including the amount and the method of 
9 payment.


10  (10) The name and business telephone number of the 
11 counsel
representing an applicant or licensee in matters 
12 before the Board.


13  (11) A description of any proposed or approved 
14 riverboat or casino
gaming or electronic gaming operation, 
15 including the type of boat, home dock or casino or 
16 electronic gaming location, expected
economic benefit to 
17 the community, anticipated or actual number of
employees, 
18 any statement from an applicant or licensee regarding 
19 compliance
with federal and State affirmative action 
20 guidelines, projected or actual
admissions and projected 
21 or actual adjusted gross gaming receipts.


22  (12) A description of the product or service to be 
23 supplied by an
applicant for a supplier's license.

24 (b) Notwithstanding any applicable statutory provision to 
25the contrary,
the Board shall, on written request from any 
26person, also provide
the following information:


 
 
09800SB1739sam001- 396 -LRB098 10559 AMC 42403 a


1  (1) The amount of the wagering tax and admission tax 
2 paid daily to the
State of Illinois by the holder of an 
3 owner's license.


4  (2) Whenever the Board finds an applicant for an 
5 owner's license
unsuitable for licensing, a copy of the 
6 written letter outlining the
reasons for the denial.


7  (3) Whenever the Board has refused to grant leave for 
8 an applicant to
withdraw his application, a copy of the 
9 letter outlining the reasons for
the refusal.

10 (c) Subject to the above provisions, the Board shall not 
11disclose any
information which would be barred by:


12  (1) Section 7 of the Freedom of Information Act; or


13  (2) The statutes, rules, regulations or 
14 intergovernmental agreements
of any jurisdiction.

15 (d) The Board may assess fees for the copying of 
16information in
accordance with Section 6 of the Freedom of 
17Information Act.

18(Source: P.A. 96-1392, eff. 1-1-11.)



19 (230 ILCS 10/5.3 new)
20 Sec. 5.3. Ethical conduct.
21 (a) Officials and employees of the corporate authority of a 
22host community must carry out their duties and responsibilities 
23in such a manner as to promote and preserve public trust and 
24confidence in the integrity and conduct of gaming.
25 (b) Officials and employees of the corporate authority of a 
 
 
09800SB1739sam001- 397 -LRB098 10559 AMC 42403 a


1host community shall not use or attempt to use his or her 
2official position to secure or attempt to secure any privilege, 
3advantage, favor, or influence for himself or herself or 
4others.
5 (c) Officials and employees of the corporate authority of a 
6host community may not have a financial interest, directly or 
7indirectly, in his or her own name or in the name of any other 
8person, partnership, association, trust, corporation, or other 
9entity in any contract or subcontract for the performance of 
10any work for a riverboat or casino that is located in the host 
11community. This prohibition shall extend to the holding or 
12acquisition of an interest in any entity identified by Board 
13action that, in the Board's judgment, could represent the 
14potential for or the appearance of a financial interest. The 
15holding or acquisition of an interest in such entities through 
16an indirect means, such as through a mutual fund, shall not be 
17prohibited, except that the Board may identify specific 
18investments or funds that, in its judgment, are so influenced 
19by gaming holdings as to represent the potential for or the 
20appearance of a conflict of interest.
21 (d) Officials and employees of the corporate authority of a 
22host community may not accept any gift, gratuity, service, 
23compensation, travel, lodging, or thing of value, with the 
24exception of unsolicited items of an incidental nature, from 
25any person, corporation, or entity doing business with the 
26riverboat or casino that is located in the host community.
 
 
09800SB1739sam001- 398 -LRB098 10559 AMC 42403 a


1 (e) Officials and employees of the corporate authority of a 
2host community shall not, during the period that the person is 
3an official or employee of the corporate authority or for a 
4period of 2 years immediately after leaving such office, 
5knowingly accept employment or receive compensation or fees for 
6services from a person or entity, or its parent or affiliate, 
7that has engaged in business with the riverboat or casino that 
8is located in the host community that resulted in contracts 
9with an aggregate value of at least $25,000 or if that official 
10or employee has made a decision that directly applied to the 
11person or entity, or its parent or affiliate.
12 (f) A spouse, child, or parent of an official or employee 
13of the corporate authority of a host community may not have a 
14financial interest, directly or indirectly, in his or her own 
15name or in the name of any other person, partnership, 
16association, trust, corporation, or other entity in any 
17contract or subcontract for the performance of any work for a 
18riverboat or casino in the host community. This prohibition 
19shall extend to the holding or acquisition of an interest in 
20any entity identified by Board action that, in the judgment of 
21the Board, could represent the potential for or the appearance 
22of a conflict of interest. The holding or acquisition of an 
23interest in such entities through an indirect means, such as 
24through a mutual fund, shall not be prohibited, expect that the 
25Board may identify specific investments or funds that, in its 
26judgment, are so influenced by gaming holdings as to represent 
 
 
09800SB1739sam001- 399 -LRB098 10559 AMC 42403 a


1the potential for or the appearance of a conflict of interest.
2 (g) A spouse, child, or parent of an official or employee 
3of the corporate authority of a host community may not accept 
4any gift, gratuity, service, compensation, travel, lodging, or 
5thing of value, with the exception of unsolicited items of an 
6incidental nature, from any person, corporation, or entity 
7doing business with the riverboat or casino that is located in 
8the host community.
9 (h) A spouse, child, or parent of an official or employee 
10of the corporate authority of a host community may not, during 
11the period that the person is an official of the corporate 
12authority or for a period of 2 years immediately after leaving 
13such office or employment, knowingly accept employment or 
14receive compensation or fees for services from a person or 
15entity, or its parent or affiliate, that has engaged in 
16business with the riverboat or casino that is located in the 
17host community that resulted in contracts with an aggregate 
18value of at least $25,000 or if that official or employee has 
19made a decision that directly applied to the person or entity, 
20or its parent or affiliate.
21 (i) Officials and employees of the corporate authority of a 
22host community shall not attempt, in any way, to influence any 
23person or corporation doing business with the riverboat or 
24casino that is located in the host community or any officer, 
25agent, or employee thereof to hire or contract with any person 
26or corporation for any compensated work.
 
 
09800SB1739sam001- 400 -LRB098 10559 AMC 42403 a


1 (j) Any communication between an official of the corporate 
2authority of a host community and any applicant for an owners 
3license in the host community, or an officer, director, or 
4employee of a riverboat or casino in the host community, 
5concerning any matter relating in any way to gaming shall be 
6disclosed to the Board. Such disclosure shall be in writing by 
7the official within 30 days after the communication and shall 
8be filed with the Board. Disclosure must consist of the date of 
9the communication, the identity and job title of the person 
10with whom the communication was made, a brief summary of the 
11communication, the action requested or recommended, all 
12responses made, the identity and job title of the person making 
13the response, and any other pertinent information. Public 
14disclosure of the written summary provided to the Board and the 
15Gaming Board shall be subject to the exemptions provided under 
16the Freedom of Information Act.
17 (k) Any official or employee who violates any provision of 
18this Section is guilty of a Class 4 felony.
19 (l) For purposes of this Section, "host community" or "host 
20municipality" means a unit of local government that contains a 
21riverboat or casino within its borders, but does not include 
22the City of Chicago or the Chicago Casino Development 
23Authority. 




24 (230 ILCS 10/6) (from Ch. 120, par. 2406)



25 Sec. 6. Application for Owners License. 

 
 
09800SB1739sam001- 401 -LRB098 10559 AMC 42403 a


1 (a) A qualified person may
apply to the Board for an owners 
2license to
conduct a riverboat gambling operation as provided 
3in this Act. The
application shall be made on forms provided by 
4the Board and shall contain
such information as the Board 
5prescribes, including but not limited to the
identity of the 
6riverboat on which such gambling operation is to be
conducted, 
7if applicable, and the exact location where such riverboat or 
8casino will be located docked, a
certification that the 
9riverboat will be registered under this Act at all
times during 
10which gambling operations are conducted on board, detailed

11information regarding the ownership and management of the 
12applicant, and
detailed personal information regarding the 
13applicant. Any application for an
owners license to be 
14re-issued on or after June 1, 2003 shall also
include the 
15applicant's license bid in a form prescribed by the Board.

16Information
provided on the application shall be used as a 
17basis for a thorough
background investigation which the Board 
18shall conduct with respect to each
applicant. An incomplete 
19application shall be cause for denial of a license
by the 
20Board.

21 (a-5) In addition to any other information required under 
22this Section, each application for an owners license must 
23include the following information:
24  (1) The history and success of the applicant and each 
25 person and entity disclosed under subsection (c) of this 
26 Section in developing tourism facilities ancillary to 
 
 
09800SB1739sam001- 402 -LRB098 10559 AMC 42403 a


1 gaming, if applicable.
2  (2) The likelihood that granting a license to the 
3 applicant will lead to the creation of quality, living wage 
4 jobs and permanent, full-time jobs for residents of the 
5 State and residents of the unit of local government that is 
6 designated as the home dock of the proposed facility where 
7 gambling is to be conducted by the applicant.
8  (3) The projected number of jobs that would be created 
9 if the license is granted and the projected number of new 
10 employees at the proposed facility where gambling is to be 
11 conducted by the applicant.
12  (4) The record, if any, of the applicant and its 
13 developer in meeting commitments to local agencies, 
14 community-based organizations, and employees at other 
15 locations where the applicant or its developer has 
16 performed similar functions as they would perform if the 
17 applicant were granted a license.
18  (5) Identification of adverse effects that might be 
19 caused by the proposed facility where gambling is to be 
20 conducted by the applicant, including the costs of meeting 
21 increased demand for public health care, child care, public 
22 transportation, affordable housing, and social services, 
23 and a plan to mitigate those adverse effects.
24  (6) The record, if any, of the applicant and its 
25 developer regarding compliance with:
26   (A) federal, state, and local discrimination, wage 
 
 
09800SB1739sam001- 403 -LRB098 10559 AMC 42403 a


1 and hour, disability, and occupational and 
2 environmental health and safety laws; and
3   (B) state and local labor relations and employment 
4 laws.
5  (7) The applicant's record, if any, in dealing with its 
6 employees and their representatives at other locations.
7  (8) A plan concerning the utilization of 
8 minority-owned and female-owned businesses and concerning 
9 the hiring of minorities and females. 
10  (9) Evidence the applicant used its best efforts to 
11 reach a goal of 25% ownership representation by minority 
12 persons and 5% ownership representation by females. 
13 (b) Applicants shall submit with their application all 
14documents,
resolutions, and letters of support from the 
15governing body that represents
the municipality or county 
16wherein the licensee will be located dock.

17 (c) Each applicant shall disclose the identity of every 
18person or entity ,
association, trust or corporation having a 
19greater than 1% direct or
indirect pecuniary interest in the 
20riverboat gambling operation with
respect to which the license 
21is sought. If the disclosed entity is a
trust, the application 
22shall disclose the names and addresses of all the

23beneficiaries; if a corporation, the names and
addresses of all 
24stockholders and directors; if a partnership, the names
and 
25addresses of all partners, both general and limited.

26 (d) An application shall be filed and considered in 
 
 
09800SB1739sam001- 404 -LRB098 10559 AMC 42403 a


1accordance with the rules of the Board. Each application shall 
2be accompanied by a non-refundable An
application fee of 
3$100,000. In addition, a non-refundable fee of $50,000 shall be 
4paid at the time of filing
to defray the costs associated with 
5the
background investigation conducted by the Board. If the 
6costs of the
investigation exceed $50,000, the applicant shall 
7pay the additional amount
to the Board within 7 days after 
8requested by the Board. If the costs of the investigation are 
9less than $50,000, the
applicant shall receive a refund of the 
10remaining amount. All
information, records, interviews, 
11reports, statements, memoranda or other
data supplied to or 
12used by the Board in the course of its review or
investigation 
13of an application for a license or a renewal under this Act 
14shall be
privileged, strictly confidential and shall be used 
15only for the purpose of
evaluating an applicant for a license 
16or a renewal. Such information, records, interviews, reports,

17statements, memoranda or other data shall not be admissible as 
18evidence,
nor discoverable in any action of any kind in any 
19court or before any
tribunal, board, agency or person, except 
20for any action deemed necessary
by the Board. The application 
21fee shall be deposited into the Gaming Facilities Fee Revenue 
22Fund. 

23 (e) The Board shall charge each applicant a fee set by the 
24Department of
State Police to defray the costs associated with 
25the search and
classification of fingerprints obtained by the 
26Board with respect to the
applicant's application. These fees 
 
 
09800SB1739sam001- 405 -LRB098 10559 AMC 42403 a


1shall be paid into the State Police
Services Fund.

2 (f) The licensed owner shall be the person primarily 
3responsible for the
boat or casino itself. Only one riverboat 
4gambling operation may be authorized
by the Board on any 
5riverboat or in any casino. The applicant must identify the 
6each riverboat or premises
it intends to use and certify that 
7the riverboat or premises: (1) has the authorized
capacity 
8required in this Act; (2) is accessible to disabled persons; 
9and
(3) is fully registered and licensed in accordance
with any 
10applicable laws.

11 (g) A person who knowingly makes a false statement on an 
12application is
guilty of a Class A misdemeanor.

13(Source: P.A. 96-1392, eff. 1-1-11.)






14 (230 ILCS 10/7) (from Ch. 120, par. 2407)


15 Sec. 7. Owners Licenses. 

16 (a) The Board shall issue owners licenses to persons or 
17entities , firms or
corporations which apply for such licenses 
18upon payment to the Board of the
non-refundable license fee as 
19provided in subsection (e) or (e-5) set by the Board, upon 
20payment of a $25,000
license fee for the first year of 
21operation and a $5,000 license fee for
each succeeding year and 
22upon a determination by the Board that the
applicant is 
23eligible for an owners license pursuant to this Act, the 
24Chicago Casino Development Authority Act, and the
rules of the 
25Board. From the effective date of this amendatory Act of the 
 
 
09800SB1739sam001- 406 -LRB098 10559 AMC 42403 a


195th General Assembly until (i) 3 years after the effective 
2date of this amendatory Act of the 95th General Assembly, (ii) 
3the date any organization licensee begins to operate a slot 
4machine or video game of chance under the Illinois Horse Racing 
5Act of 1975 or this Act, (iii) the date that payments begin 
6under subsection (c-5) of Section 13 of the Act, or (iv) the 
7wagering tax imposed under Section 13 of this Act is increased 
8by law to reflect a tax rate that is at least as stringent or 
9more stringent than the tax rate contained in subsection (a-3) 
10of Section 13, or (v) when an owners licensee holding a license 
11issued pursuant to Section 7.1 of this Act begins conducting 
12gaming, whichever occurs first, as a condition of licensure and 
13as an alternative source of payment for those funds payable 
14under subsection (c-5) of Section 13 of this the Riverboat 
15Gambling Act, any owners licensee that holds or receives its 
16owners license on or after the effective date of this 
17amendatory Act of the 94th General Assembly, other than an 
18owners licensee operating a riverboat with adjusted gross 
19receipts in calendar year 2004 of less than $200,000,000, must 
20pay into the Horse Racing Equity Trust Fund, in addition to any 
21other payments required under this Act, an amount equal to 3% 
22of the adjusted gross receipts received by the owners licensee. 
23The payments required under this Section shall be made by the 
24owners licensee to the State Treasurer no later than 3:00 
25o'clock p.m. of the day after the day when the adjusted gross 
26receipts were received by the owners licensee. A person, firm 
 
 
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1or corporation is ineligible to receive
an owners license if:


2  (1) the person has been convicted of a felony under the 
3 laws of this
State, any other state, or the United States;


4  (2) the person has been convicted of any violation of 
5 Article 28 of the
Criminal Code of 1961 or the Criminal 
6 Code of 2012, or substantially similar laws of any other 
7 jurisdiction;


8  (3) the person has submitted an application for a 
9 license under this
Act or the Chicago Casino Development 
10 Authority Act which contains false information;


11  (4) the person is
a member of the Board;


12  (5) a person defined in (1), (2), (3) or (4) is an 
13 officer, director or
managerial employee of the firm or 
14 corporation;


15  (6) the firm or corporation employs a person defined in 
16 (1), (2), (3) or
(4) who participates in the management or 
17 operation of gambling operations
authorized under this Act 
18 or the Chicago Casino Development Authority Act;


19  (7) (blank); or


20  (8) a license of the person, firm or corporation issued 
21 under
this Act or the Chicago Casino Development Authority 
22 Act, or a license to own or operate gambling facilities
in 
23 any other jurisdiction, has been revoked.

24 The Board is expressly prohibited from making changes to 
25the requirement that licensees make payment into the Horse 
26Racing Equity Trust Fund without the express authority of the 
 
 
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1Illinois General Assembly and making any other rule to 
2implement or interpret this amendatory Act of the 95th General 
3Assembly. For the purposes of this paragraph, "rules" is given 
4the meaning given to that term in Section 1-70 of the Illinois 
5Administrative Procedure Act.
6 (a-1) Upon approval of the members of the Chicago Casino 
7Development Board, the Chicago Casino Development Authority's 
8executive director, and the Chicago casino operator licensee, 
9the Board shall issue an owners license to the Chicago Casino 
10Development Authority that authorizes the conduct of gambling 
11operations in a casino or in an airport located in the City of 
12Chicago. 
13 (b) In determining whether to grant an owners license to an 
14applicant other than the Chicago Casino Development Authority, 
15the
Board shall consider:


16  (1) the character, reputation, experience and 
17 financial integrity of the
applicants and of any other or 
18 separate person that either:


19   (A) controls, directly or indirectly, such 
20 applicant, or


21   (B) is controlled, directly or indirectly, by such 
22 applicant or by a
person which controls, directly or 
23 indirectly, such applicant;


24  (2) the facilities or proposed facilities for the 
25 conduct of riverboat
gambling;


26  (3) the highest prospective total revenue to be derived 
 
 
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1 by the State
from the conduct of riverboat gambling;


2  (4) the extent to which the ownership of the applicant 
3 reflects the
diversity of the State by including minority 
4 persons, females, and persons with a disability
and the 
5 good faith affirmative action plan of
each applicant to 
6 recruit, train and upgrade minority persons, females, and 
7 persons with a disability in all employment 
8 classifications;


9  (5) the financial ability of the applicant to purchase 
10 and maintain
adequate liability and casualty insurance;


11  (6) whether the applicant has adequate capitalization 
12 to provide and
maintain, for the duration of a license, a 
13 riverboat or casino;


14  (7) the extent to which the applicant exceeds or meets 
15 other standards
for the issuance of an owners license which 
16 the Board may adopt by rule;
and


17  (8) the The amount of the applicant's license bid; .

18  (9) the extent to which the applicant or the proposed 
19 host municipality plans to enter into revenue sharing 
20 agreements with communities other than the host 
21 municipality; and
22  (10) the extent to which the ownership of an applicant 
23 includes the most qualified number of minority persons, 
24 females, and persons with a disability. 
25 (c) Each owners license shall specify the place where the 
26casino riverboats shall
operate or the riverboat shall operate 
 
 
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1and dock.

2 (d) Each applicant shall submit with his application, on 
3forms
provided by the Board, 2 sets of his fingerprints.

4 (e) In addition to any licenses authorized under subsection 
5(e-5) of this Section, the The Board may issue up to 10 
6licenses authorizing the holders of such
licenses to own 
7riverboats. In the application for an owners license, the

8applicant shall state the dock at which the riverboat is based 
9and the water
on which the riverboat will be located. The Board 
10shall issue 5 licenses to
become effective not earlier than 
11January 1, 1991. Three of such licenses
shall authorize 
12riverboat gambling on the Mississippi River, or, with approval

13by the municipality in which the
riverboat was docked on August 
147, 2003 and with Board approval, be authorized to relocate to a 
15new location,
in a
municipality that (1) borders on the 
16Mississippi River or is within 5
miles of the city limits of a 
17municipality that borders on the Mississippi
River and (2), on 
18August 7, 2003, had a riverboat conducting riverboat gambling 
19operations pursuant to
a license issued under this Act; one of 
20which shall authorize riverboat
gambling from a home dock in 
21the city of East St. Louis. One other license
shall
authorize 
22riverboat gambling on
the Illinois River in Tazewell County or, 
23with Board approval, shall authorize the riverboat to relocate 
24to a new location that is no more than 10 miles away from its 
25original location, in a municipality that (1) borders on the 
26Illinois River or is within 5 miles of the city limits of a 
 
 
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1municipality that borders on the Illinois River and (2) on 
2January 1, 2010, had a riverboat conducting riverboat gambling 
3operations pursuant to a license issued under this Act south of 
4Marshall County. The Board shall issue one
additional license 
5to become effective not earlier than March 1, 1992, which
shall 
6authorize riverboat gambling on the Des Plaines River in Will 
7County.
The Board may issue 4 additional licenses to become 
8effective not
earlier than
March 1, 1992. In determining the 
9water upon which riverboats will operate,
the Board shall 
10consider the economic benefit which riverboat gambling confers

11on the State, and shall seek to assure that all regions of the 
12State share
in the economic benefits of riverboat gambling.

13 In granting all licenses, the Board may give favorable 
14consideration to
economically depressed areas of the State, to 
15applicants presenting plans
which provide for significant 
16economic development over a large geographic
area, and to 
17applicants who currently operate non-gambling riverboats in

18Illinois.
The Board shall review all applications for owners 
19licenses,
and shall inform each applicant of the Board's 
20decision.
The Board may grant an owners license to an
applicant 
21that has not submitted the highest license bid, but if it does 
22not
select the highest bidder, the Board shall issue a written 
23decision explaining
why another
applicant was selected and 
24identifying the factors set forth in this Section
that favored 
25the winning bidder. The fee for issuance or renewal of a 
26license pursuant to this subsection (e) shall be $100,000. 

 
 
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1 (e-5) In addition to licenses authorized under subsection 
2(e) of this Section:
3  (1) the Board shall issue one owners license 
4 authorizing the conduct of casino gambling in the City of 
5 Chicago;
6  (2) the Board may issue one owners license authorizing 
7 the conduct of riverboat gambling in the City of Danville;
8  (3) the Board may issue one owners license authorizing 
9 the conduct of riverboat gambling located in one of the 
10 following municipalities in Lake County: Park City, North 
11 Chicago, or Waukegan;
12  (4) the Board may issue one owners license authorizing 
13 the conduct of riverboat gambling in the City of Rockford; 
14 and
15  (5) the Board may issue one owners license authorizing 
16 the conduct of riverboat gambling in a municipality that is 
17 located in one of the following townships of Cook County: 
18 Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.
19 Each application for a license pursuant to this subsection 
20(e-5) shall be submitted to the Board no later than 6 months 
21after the effective date of this amendatory Act of the 98th 
22General Assembly and shall include the non-refundable 
23application fee and the non-refundable background 
24investigation fee as provided in subsection (d) of Section 6 of 
25this Act. In the event that an applicant submits an application 
26for a license pursuant to this subsection (e-5) prior to the 
 
 
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1effective date of this amendatory Act of the 98th General 
2Assembly, such applicant shall submit the non-refundable 
3application fee and background investigation fee as provided in 
4subsection (d) of Section 6 of this Act no later than 6 months 
5after the effective date of this amendatory Act of the 98th 
6General Assembly. 
7 The Board shall consider issuing a license pursuant to 
8paragraphs (2) through (5) of this subsection only after the 
9corporate authority of the municipality in which the riverboat 
10shall be located has certified to the Board the following:
11  (i) that the applicant has negotiated with the 
12 corporate authority in good faith;
13  (ii) that the applicant and the corporate authority 
14 have mutually agreed on the permanent location of the 
15 riverboat;
16  (iii) that the applicant and the corporate authority 
17 have mutually agreed on the temporary location of the 
18 riverboat;
19  (iv) that the applicant and the corporate authority 
20 have mutually agreed on the percentage of revenues that 
21 will be shared with the municipality, if any; and
22  (v) that the applicant and the corporate authority have 
23 mutually agreed on any zoning, licensing, public health, or 
24 other issues that are within the jurisdiction of the 
25 municipality. 
26 At least 7 days before the corporate authority of a 
 
 
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1municipality submits a certification to the Board concerning 
2items (i) through (v) of this subsection, it shall hold a 
3public hearing to discuss items (i) through (v), as well as any 
4other details concerning the proposed riverboat in the 
5municipality. The corporate authority must subsequently 
6memorialize the details concerning the proposed riverboat or 
7casino in a resolution that must be adopted by a majority of 
8the corporate authority before any certification is sent to the 
9Board. The Board shall not alter, amend, change, or otherwise 
10interfere with any agreement between the applicant and the 
11corporate authority of the municipality regarding the location 
12of any temporary or permanent facility. 
13 (e-10) The licenses authorized under subsection (e-5) of 
14this Section shall be issued within 12 months after the date 
15the license application is submitted. If the Board does not 
16issue the licenses within that time period, then the Board 
17shall give a written explanation to the applicant as to why it 
18has not reached a determination. The Board shall issue the 
19license within 6 months after giving the written explanation to 
20the applicant. The fee for the issuance or renewal of a license 
21issued pursuant to this subsection (e-10) shall be $100,000. 
22Additionally, a licensee located outside of Cook County shall 
23pay a minimum initial fee of $17,500 per gaming position, and a 
24licensee located in Cook County shall pay a minimum initial fee 
25of $30,000 per gaming position. The initial fees payable under 
26this subsection (e-10) shall be deposited into the Gaming 
 
 
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1Facilities Fee Revenue Fund.
2 (e-15) Each licensee of a license authorized under 
3subsection (e-5) of this Section shall make a reconciliation 
4payment 3 years after the date the licensee begins operating in 
5an amount equal to 75% of the adjusted gross receipts for the 
6most lucrative 12-month period of operations, minus an amount 
7equal to the initial payment per gaming position paid by the 
8specific licensee. If this calculation results in a negative 
9amount, then the licensee is not entitled to any
reimbursement 
10of fees previously paid. This reconciliation payment may be 
11made in installments over a period of no more than 2 years, 
12subject to Board approval. Any installment payments shall 
13include an annual market interest rate as determined by the 
14Board. All payments by licensees under this subsection (e-15) 
15shall be deposited into the Gaming Facilities Fee Revenue Fund. 
16 (e-20) In addition to any other revocation powers granted 
17to the Board under this
Act,
the Board may revoke the owners 
18license of a licensee, other than the Chicago Casino 
19Development Authority, which fails
to begin conducting 
20gambling within 15 months
of receipt of the
Board's approval of 
21the application if the Board determines that license
revocation 
22is in the best interests of the State.

23 (f) The first 10 owners licenses issued under this Act 
24shall permit the
holder to own up to 2 riverboats and equipment 
25thereon
for a period of 3 years after the effective date of the 
26license. Holders of
the first 10 owners licenses must pay the 
 
 
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1annual license fee for each of
the 3
years during which they 
2are authorized to own riverboats.

3 (g) Upon the termination, expiration, or revocation of each 
4of the first
10 licenses, which shall be issued for a 3 year 
5period, all licenses are
renewable annually upon payment of the 
6fee and a determination by the Board
that the licensee 
7continues to meet all of the requirements of this Act and the

8Board's rules.
However, for licenses renewed on or after May 1, 
91998, including casino operator licenses, renewal shall be
for 
10a period of 4 years, unless the Board sets a shorter period. 
11Notwithstanding any provision in this subsection (g) to the 
12contrary, any license that is awarded to the Chicago Casino 
13Development Authority shall not expire, but it shall be subject 
14to the provisions of this Act and the rules of the Board. 

15 (h) An owners license, except for an owners license issued 
16under subsection (e-5) of this Section, shall entitle the 
17licensee to own up to 2
riverboats.
18 An owners licensee of a casino or riverboat that is located 
19in the City of Chicago pursuant to paragraph (1) of subsection 
20(e-5) of this Section shall limit the number of gaming 
21positions to 4,000 for such owner. All other owners licensees A 
22licensee shall limit the number of gaming positions gambling 
23participants to
1,200 for any such owners license, except as 
24further provided in subsection (h-10) of this Section. The 
25initial fee for each gaming position obtained on or after the 
26effective date of this amendatory Act of the 98th General 
 
 
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1Assembly shall be a minimum of $17,500 for licensees not 
2located in Cook County and a minimum of $30,000 for licensees 
3located in Cook County, in addition to the reconciliation 
4payment, as set forth in subsections (e-15) or (h-5) of this 
5Section.

6 Each owners licensee shall reserve its gaming positions 
7within 90 days after issuance of its owners license. The Board 
8may grant an extension to this 90-day period, provided that the 
9owners licensee submits a written request and explanation as to 
10why it is unable to reserve its positions within the 90-day 
11period. 
12 A licensee may operate both of its riverboats concurrently, 
13provided that the
total number of gaming positions gambling 
14participants on both riverboats does not exceed the limit 
15established pursuant to this subsection and subsection (h-10) 
16of this Section
1,200. Riverboats licensed to operate on the

17Mississippi River and the Illinois River south of Marshall 
18County shall
have an authorized capacity of at least 500 
19persons. Any other riverboat
licensed under this Act shall have 
20an authorized capacity of at least 400
persons.

21 (h-5) An owners licensee who conducted gambling operations 
22prior to January 1, 2012 and purchases positions pursuant to 
23subsection (h-10) of this Section on or after the effective 
24date of this amendatory Act of the 98th General Assembly must 
25pay a minimum initial fee of $17,500 per gaming position if the 
26licensee is located outside Cook County and a minimum initial 
 
 
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1fee of $30,000 per gaming position if the licensee is located 
2in Cook County, as stated in subsection (h) of this Section. 
3These initial fees shall be deposited into the Gaming 
4Facilities Fee Revenue Fund. Additionally, that owners 
5licensee shall make a reconciliation payment 3 years after any 
6additional gaming positions obtained pursuant to subsection 
7(h-10) begin operating in an amount equal to 75% of the owners 
8licensee's average gross receipts for the most lucrative 
912-month period of operations minus an amount equal to the 
10initial fee that the owners licensee paid per additional gaming 
11position. For purposes of this subsection (h-5), "average gross 
12receipts" means (i) the increase in adjusted gross receipts for 
13the most lucrative 12-month period of operations over the 
14adjusted gross receipts for 2013, multiplied by (ii) the 
15percentage derived by dividing the number of additional gaming 
16positions that an owners licensee had obtained pursuant to 
17subsection (h-10) by the total number of gaming positions 
18operated by the owners licensee. If this calculation results in 
19a negative amount, then the owners licensee is not entitled to 
20any reimbursement of fees previously paid. This reconciliation 
21payment may be made in installments over a period of no more 
22than 2 years, subject to Board approval. Any installment 
23payments shall include an annual market interest rate as 
24determined by the Board. These reconciliation payments shall be 
25deposited into the Gaming Facilities Fee Revenue Fund.
26 (h-10) For owners licensees authorized under paragraphs 
 
 
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1(2) through (5) of subsection (e-5) of this Section, the 
2application for such new owners licenses shall ask the 
3applicants to stipulate in their applications the number of 
4gaming positions each applicant would like to reserve, up to 
51,200 gaming positions. Once the last winning applicant for 
6each of these owners licenses has been selected by the Board, 
7the Board shall publish the number of gaming positions reserved 
8and unreserved by each winning applicant, shall accept requests 
9for additional gaming positions from any winning applicants or 
10owners licensee who initially reserved 1,200 gaming positions, 
11and shall allocate expeditiously the unreserved gaming 
12positions to such requesting winning applicants or owners 
13licensees in a manner to maximize revenue to the State. The 
14Board may allocate any such unused gaming positions through a 
15competitive bidding process pursuant to Section 7.5 of this 
16Act.
17 In the event that not all of the unreserved gaming 
18positions described in the first and second paragraphs of this 
19subsection (h-10) were requested by owners licensees and 
20applicants, then until there are no longer unreserved gaming 
21positions, the Board periodically shall govern a process to 
22allocate the unreserved gaming positions in a manner to 
23maximize revenue to the State.
24 Unreserved gaming positions retained from and allocated to 
25owners licensees by the Board pursuant to this subsection 
26(h-10) shall not be allocated to electronic gaming licensees 
 
 
09800SB1739sam001- 420 -LRB098 10559 AMC 42403 a


1pursuant to subsection (e) of Section 7.6 of this Act. 
2 (i) A licensed owner is authorized to apply to the Board 
3for and, if
approved therefor, to receive all licenses from the 
4Board necessary for the
operation of a riverboat or a casino, 
5including a liquor license, a license
to prepare and serve food 
6for human consumption, and other necessary
licenses. All use, 
7occupation and excise taxes which apply to the sale of
food and 
8beverages in this State and all taxes imposed on the sale or 
9use
of tangible personal property apply to such sales aboard 
10the riverboat or in the casino.

11 (j) The Board may issue or re-issue a license authorizing a 
12riverboat to
dock
in a municipality or approve a relocation 
13under Section 11.2 only if, prior
to the issuance or 
14re-issuance of
the license or approval, the governing body of 
15the municipality in which
the riverboat will dock has by a 
16majority vote approved the docking of
riverboats in the 
17municipality. The Board may issue or re-issue a license

18authorizing a
riverboat to dock in areas of a county outside 
19any municipality or approve a
relocation under Section 11.2 
20only if, prior to the issuance or re-issuance
of the license
or 
21approval, the
governing body of the county has by a majority 
22vote approved of the docking of
riverboats within such areas.

23 (k) An owners licensee may conduct land-based gambling 
24operations upon approval by the Board. 
25 (l) An owners licensee may conduct gaming at a temporary 
26facility pending the construction of a permanent facility or 
 
 
09800SB1739sam001- 421 -LRB098 10559 AMC 42403 a


1the remodeling or relocation of an existing facility to 
2accommodate gaming participants for up to 24 months after the 
3temporary facility begins to conduct gaming. Upon request by an 
4owners licensee and upon a showing of good cause by the owners 
5licensee, the Board shall extend the period during which the 
6licensee may conduct gaming at a temporary facility by up to 12 
7months. The Board shall make rules concerning the conduct of 
8gaming from temporary facilities.
9(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)






10 (230 ILCS 10/7.3)


11 Sec. 7.3. State conduct of gambling operations. 

12 (a) If, after reviewing each application for a re-issued 
13license, the
Board determines that the highest prospective 
14total revenue to the State would
be derived from State conduct 
15of the gambling operation in lieu of re-issuing
the license, 
16the Board shall inform each applicant of its decision. The 
17Board
shall thereafter have the authority, without obtaining an 
18owners license, to
conduct casino or riverboat gambling 
19operations as
previously authorized by the terminated, 
20expired, revoked, or nonrenewed
license through a licensed 
21manager selected pursuant to an open and competitive
bidding

22process as set forth in Section 7.5 and as provided in Section 
237.4.

24 (b) The Board may locate any casino or riverboat on which a 
25gambling operation is
conducted by the State in any home dock 
 
 
09800SB1739sam001- 422 -LRB098 10559 AMC 42403 a


1or other location authorized by Section 3(c)
upon receipt of 
2approval from a majority vote of the governing body of the

3municipality or county, as the case may be, in which the 
4riverboat will dock.

5 (c) The Board shall have jurisdiction over and shall 
6supervise all
gambling operations conducted by the State 
7provided for in this Act and the Chicago Casino Development 
8Authority Act and shall
have all powers necessary and proper to 
9fully and effectively execute the
provisions of this Act and 
10the Chicago Casino Development Authority Act relating to 
11gambling operations conducted by the State.

12 (d) The maximum number of owners licenses authorized under 
13Section 7
7(e)
shall be reduced by one for each instance in 
14which the Board authorizes the
State to conduct a casino or 
15riverboat gambling operation under subsection (a) in lieu of

16re-issuing a license to an applicant under Section 7.1.

17(Source: P.A. 93-28, eff. 6-20-03.)





18 (230 ILCS 10/7.5)



19 Sec. 7.5. Competitive Bidding. When the Board determines 
20that (i) it will re-issue an owners license pursuant to
an
open 
21and competitive bidding process, as set forth in Section 7.1, 
22(ii) or that it
will issue a managers license pursuant to an 
23open and competitive bidding
process, as set forth in Section 
247.4, (iii) it will issue an owners license pursuant to an open 
25and competitive bidding process, as set forth in Section 7.11, 
 
 
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1or (iv) it will allocate unused gaming positions pursuant to an 
2open and competitive bidding process, as set forth in 
3subsection (h-10) of Section 7, the open and competitive 
4bidding process
shall adhere to the following procedures:

5 (1) The Board shall make applications for owners and 
6managers
licenses available to the public and allow a 
7reasonable time for applicants to
submit applications to the 
8Board.

9 (2) During the filing period for owners or managers license 
10applications,
the
Board may retain the services of an 
11investment banking firm to assist the Board
in conducting the 
12open and competitive bidding process.

13 (3) After receiving all of the bid proposals, the Board 
14shall open all of
the
proposals in a public forum and disclose 
15the prospective owners or managers
names, venture partners, if 
16any, and, in the case of applicants for owners
licenses, the 
17locations of the proposed development sites.

18 (4) The Board shall summarize the terms of the proposals 
19and may make this
summary available to the public.

20 (5) The Board shall evaluate the proposals within a 
21reasonable time and
select no
more than 3 final applicants to 
22make presentations of their
proposals to the Board.

23 (6) The final applicants shall make their presentations to 
24the
Board on
the same day during an open session of the Board.

25 (7) As soon as practicable after the public presentations 
26by the final
applicants,
the Board, in its
discretion, may 
 
 
09800SB1739sam001- 424 -LRB098 10559 AMC 42403 a


1conduct further negotiations among the 3 final applicants.

2During such negotiations, each final applicant may increase its 
3license bid or
otherwise enhance its bid proposal. At the 
4conclusion of such
negotiations, the Board shall
select the 
5winning proposal. In the case of negotiations for
an owners 
6license, the Board may, at the conclusion of such negotiations,

7make the determination allowed under Section 7.3(a).

8 (8) Upon selection of a winning bid, the Board shall 
9evaluate the winning
bid
within a reasonable period of time for 
10licensee suitability in accordance with
all applicable 
11statutory and regulatory criteria.

12 (9) If the winning bidder is unable or otherwise fails to

13consummate the transaction, (including if the Board determines 
14that the winning
bidder does not satisfy the suitability 
15requirements), the Board may, on the
same criteria, select from 
16the remaining bidders or make the determination
allowed under 
17Section 7.3(a).

18(Source: P.A. 93-28, eff. 6-20-03.)


19 (230 ILCS 10/7.6 new)
20 Sec. 7.6. Electronic gaming.
21 (a) The General Assembly finds that the horse racing and 
22riverboat gambling industries share many similarities and 
23collectively comprise the bulk of the State's gaming industry. 
24One feature common to both industries is that each is highly 
25regulated by the State of Illinois. The General Assembly 
 
 
09800SB1739sam001- 425 -LRB098 10559 AMC 42403 a


1further finds, however, that despite their shared features each 
2industry is distinct from the other in that horse racing is and 
3continues to be intimately tied to Illinois' agricultural 
4economy and is, at its core, a spectator sport. This 
5distinction requires the General Assembly to utilize different 
6methods to regulate and promote the horse racing industry 
7throughout the State. The General Assembly finds that in order 
8to promote live horse racing as a spectator sport in Illinois 
9and the agricultural economy of this State, it is necessary to 
10allow electronic gaming at Illinois race tracks as an ancillary 
11use given the success of other states in increasing live racing 
12purse accounts and improving the quality of horses 
13participating in horse race meetings.
14 (b) The Illinois Gaming Board shall award one electronic 
15gaming license to each person or entity having operating 
16control of a race track that applies under Section 56 of the 
17Illinois Horse Racing Act of 1975, subject to the application 
18and eligibility requirements of this Section. Within 60 days 
19after the effective date of this amendatory Act of the 98th 
20General Assembly, a person or entity having operating control 
21of a race track may submit an application for an electronic 
22gaming license. The application shall be made on such forms as 
23provided by the Board and shall contain such information as the 
24Board prescribes, including, but not limited to, the identity 
25of any race track at which electronic gaming will be conducted, 
26detailed information regarding the ownership and management of 
 
 
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1the applicant, and detailed personal information regarding the 
2applicant. The application shall specify the number of gaming 
3positions the applicant intends to use and the place where the 
4electronic gaming facility will operate. A person who knowingly 
5makes a false statement on an application is guilty of a Class 
6A misdemeanor.
7 Each applicant shall disclose the identity of every person 
8or entity having a direct or indirect pecuniary interest 
9greater than 1% in any race track with respect to which the 
10license is sought. If the disclosed entity is a corporation, 
11the applicant shall disclose the names and addresses of all 
12stockholders and directors. If the disclosed entity is a 
13limited liability company, the applicant shall disclose the 
14names and addresses of all members and managers. If the 
15disclosed entity is a partnership, the applicant shall disclose 
16the names and addresses of all partners, both general and 
17limited. If the disclosed entity is a trust, the applicant 
18shall disclose the names and addresses of all beneficiaries.
19 An application shall be filed and considered in accordance 
20with the rules of the Board. Each application for an electronic 
21gaming license shall include a non-refundable application fee 
22of $100,000. In addition, a non-refundable fee of $50,000 shall 
23be paid at the time of filing to defray the costs associated 
24with background investigations conducted by the Board. If the 
25costs of the background investigation exceed $50,000, the 
26applicant shall pay the additional amount to the Board within 7 
 
 
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1days after a request by the Board. If the costs of the 
2investigation are less than $50,000, the applicant shall 
3receive a refund of the remaining amount. All information, 
4records, interviews, reports, statements, memoranda, or other 
5data supplied to or used by the Board in the course of this 
6review or investigation of an applicant for an electronic 
7gaming license under this Act shall be privileged and strictly 
8confidential and shall be used only for the purpose of 
9evaluating an applicant for an electronic gaming license or a 
10renewal. Such information, records, interviews, reports, 
11statements, memoranda, or other data shall not be admissible as 
12evidence nor discoverable in any action of any kind in any 
13court or before any tribunal, board, agency or person, except 
14for any action deemed necessary by the Board. The application 
15fee shall be deposited into the Gaming Facilities Fee Revenue 
16Fund.
17 Each applicant shall submit with his or her application, on 
18forms provided by the Board, 2 sets of his or her fingerprints. 
19The Board shall charge each applicant a fee set by the 
20Department of State Police to defray the costs associated with 
21the search and classification of fingerprints obtained by the 
22Board with respect to the applicant's application. This fee 
23shall be paid into the State Police Services Fund. 
24 (c) The Board shall determine within 120 days after 
25receiving an application for an electronic gaming license, 
26whether to grant an electronic gaming license to the applicant. 
 
 
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1If the Board does not make a determination within that time 
2period, then the Board shall give a written explanation to the 
3applicant as to why it has not reached a determination and when 
4it reasonably expects to make a determination.
5 The electronic gaming licensee shall purchase up to the 
6amount of electronic gaming positions authorized under this Act 
7within 120 days after receiving its electronic gaming license. 
8If an electronic gaming licensee is prepared to purchase the 
9electronic gaming positions, but is temporarily prohibited 
10from doing so by order of a court of competent jurisdiction or 
11the Board, then the 120-day period is tolled until a resolution 
12is reached.
13 An electronic gaming license shall authorize its holder to 
14conduct electronic gaming at its race track at the following 
15times:
16  (1) On days when it conducts live racing at the track 
17 where its electronic gaming facility is located, from 8:00 
18 a.m. until 3:00 a.m. on the following day.
19  (2) On days when it is scheduled to conduct simulcast 
20 wagering on races run in the United States, from 8:00 a.m. 
21 until 3:00 a.m. on the following day.
22 Additionally, the Board may extend these days of operation 
23and hours upon request by an organization licensee as the Board 
24sees fit.
25 A license to conduct electronic gaming and any renewal of 
26an electronic gaming license shall authorize electronic gaming 
 
 
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1for a period of 4 years. The fee for the issuance or renewal of 
2an electronic gaming license shall be $100,000.
3 (d) To be eligible to conduct electronic gaming, a person, 
4firm, or corporation having operating control of a race track 
5must (i) obtain an electronic gaming license, (ii) hold an 
6organization license under the Illinois Horse Racing Act of 
71975, (iii) hold an inter-track wagering license, (iv) pay an 
8initial fee of $30,000 per gaming position from electronic 
9gaming licensees where electronic gaming is conducted in Cook 
10County and $17,500 for electronic gaming licensees where 
11electronic gaming is located outside of Cook County before 
12beginning to conduct electronic gaming plus make the 
13reconciliation payment required under subsection (i), (v) 
14conduct at least 240 live races at each track per year or for a 
15licensee that is only authorized 350 gaming positions pursuant 
16to subsection (d) of Section 7.6 of this Act, 96 live races per 
17year until such time as the total number of gaming positions is 
18increased to 900, (vi) meet the requirements of subsection (a) 
19of Section 56 of the Illinois Horse Racing Act of 1975, (vii) 
20for organization licensees conducting standardbred race 
21meetings that had an open backstretch in 2009, keep backstretch 
22barns and dormitories open and operational year-round unless a 
23lesser schedule is mutually agreed to by the organization 
24licensee and the horsemen's association racing at that 
25organization licensee's race meeting, (viii) for organization 
26licensees conducting thoroughbred race meetings, the 
 
 
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1organization licensee must maintain accident medical expense 
2liability insurance coverage of $1,000,000 for jockeys, and 
3(ix) meet all other requirements of this Act that apply to 
4owners licensees. Only those persons, firms, or corporations 
5(or its successors or assigns) that had operating control of a 
6race track and held an inter-track wagering license authorized 
7by the Illinois Racing Board in 2009 are eligible.
8 An electronic gaming licensee may enter into a joint 
9venture with a licensed owner to own, manage, conduct, or 
10otherwise operate the electronic gaming licensee's electronic 
11gaming facilities, unless the electronic gaming licensee has a 
12parent company or other affiliated company that is, directly or 
13indirectly, wholly owned by a parent company that is also 
14licensed to conduct electronic gaming, casino gaming, or their 
15equivalent in another state. 
16 All payments by licensees under this subsection (c) shall 
17be deposited into the Gaming Facilities Fee Revenue Fund. 
18 (e) A person or entity is ineligible to receive an owners 
19license if:
20  (1) the person or entity has been convicted of a felony 
21 under the laws of this State, any other state, or the 
22 United States, including a conviction under the Racketeer 
23 Influenced and Corrupt Organizations Act;
24  (2) the person or entity has been convicted of any 
25 violation of Article 28 of the Criminal Code of 2012, or 
26 substantially similar laws of any other jurisdiction;
 
 
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1  (3) the person or entity has submitted an application 
2 for a license under this Act that contains false 
3 information;
4  (4) the person is a member of the Board;
5  (5) a person defined in (1), (2), (3), or (4) of this 
6 subsection (e) is an officer, director, or managerial 
7 employee of the entity;
8  (6) the person or entity employs a person defined in 
9 (1), (2), (3), or (4) of this subsection (e) who 
10 participates in the management or operation of gambling 
11 operations authorized under this Act; or
12  (7) a license of the person or entity issued under this 
13 Act or a license to own or operate gambling facilities in 
14 any other jurisdiction has been revoked. 
15 (f) The Board may approve electronic gaming positions 
16statewide as provided in this Section. The authority to operate 
17electronic gaming positions under this Section shall be 
18allocated as follows: up to 1,200 gaming positions for any 
19electronic gaming licensee in Cook County whose electronic 
20gaming license originates with an organization licensee that 
21conducted live racing in calendar year 2010; up to 900 gaming 
22positions for any electronic gaming licensee outside of Cook 
23County whose electronic gaming license originates with an 
24organization licensee that conducted live racing in calendar 
25year 2010; and up to 350 gaming positions for any electronic 
26gaming licensee whose electronic gaming license originates 
 
 
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1with an organization licensee that did not conduct live racing 
2in calendar year 2010, which shall increase to 900 gaming 
3positions in the calendar year following the year in which the 
4electronic gaming licensee conducts 96 live races.
5 (g) Each applicant for an electronic gaming license shall 
6specify in its application for licensure the number of gaming 
7positions it will operate, up to the applicable limitation set 
8forth in subsection (f) of this Section. Any unreserved gaming 
9positions that are not specified shall be forfeited and 
10retained by the Board. For the purposes of this subsection (g), 
11an electronic gaming licensee that did not conduct live racing 
12in 2010 may reserve up to 900 positions and shall not be 
13penalized under this Section for not operating those positions 
14until it meets the requirements of subsection (f) of this 
15Section, but such licensee shall not request unreserved gaming 
16positions under this subsection (g) until its 900 positions are 
17all operational. 
18 Thereafter, the Board shall publish the number of 
19unreserved electronic gaming positions and shall accept 
20requests for additional positions from any electronic gaming 
21licensee that initially reserved all of the positions that were 
22offered. The Board shall allocate expeditiously the unreserved 
23electronic gaming positions to requesting electronic gaming 
24licensees in a manner that maximizes revenue to the State. The 
25Board may allocate any such unused electronic gaming positions 
26pursuant to an open and competitive bidding process, as 
 
 
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1provided under Section 7.5 of this Act. This process shall 
2continue until all unreserved gaming positions have been 
3purchased. All positions obtained pursuant to this process and 
4all positions the electronic gaming licensee specified it would 
5operate in its application must be in operation within 18 
6months after they were obtained or the electronic gaming 
7licensee forfeits the right to operate those positions, but is 
8not entitled to a refund of any fees paid. The Board may, after 
9holding a public hearing, grant extensions so long as the 
10electronic gaming licensee is working in good faith to make the 
11positions operational. The extension may be for a period of 6 
12months. If, after the period of the extension, the electronic 
13gaming licensee has not made the positions operational, then 
14another public hearing must be held by the Board before it may 
15grant another extension. 
16 Unreserved gaming positions retained from and allocated to 
17electronic gaming licensees by the Board pursuant to this 
18subsection (g) shall not be allocated to owners licensees 
19pursuant to subsection (h-10) of Section 7 of this Act. 
20 For the purpose of this subsection (g), the unreserved 
21gaming positions for each electronic gaming licensee shall be 
22the applicable limitation set forth in subsection (f) of this 
23Section, less the number of reserved gaming positions by such 
24electronic gaming licensee, and the total unreserved gaming 
25positions shall be the aggregate of the unreserved gaming 
26positions for all electronic gaming licensees. 
 
 
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1 (h) Subject to the approval of the Illinois Gaming Board, 
2an electronic gaming licensee may make modification or 
3additions to any existing buildings and structures to comply 
4with the requirements of this Act. The Illinois Gaming Board 
5shall make its decision after consulting with the Illinois 
6Racing Board. In no case, however, shall the Illinois Gaming 
7Board approve any modification or addition that alters the 
8grounds of the organizational licensee such that the act of 
9live racing is an ancillary activity to electronic gaming.

10Electronic gaming may take place in existing structures where 
11inter-track wagering is conducted at the race track or a 
12facility within 300 yards of the race track in accordance with 
13the provisions of this Act and the Illinois Horse Racing Act of 
141975.
15 (i) An electronic gaming licensee may conduct electronic 
16gaming at a temporary facility pending the construction of a 
17permanent facility or the remodeling or relocation of an 
18existing facility to accommodate electronic gaming 
19participants for up to 24 months after the temporary facility 
20begins to conduct electronic gaming. Upon request by an 
21electronic gaming licensee and upon a showing of good cause by 
22the electronic gaming licensee, the Board shall extend the 
23period during which the licensee may conduct electronic gaming 
24at a temporary facility by up to 12 months. The Board shall 
25make rules concerning the conduct of electronic gaming from 
26temporary facilities.
 
 
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1 Electronic gaming may take place in existing structures 
2where inter-track wagering is conducted at the race track or a 
3facility within 300 yards of the race track in accordance with 
4the provisions of this Act and the Illinois Horse Racing Act of 
51975. Any electronic gaming conducted at a permanent facility 
6within 300 yards of the race track in accordance with this Act 
7and the Illinois Horse Racing Act of 1975 shall have an 
8all-weather egress connecting the electronic gaming facility 
9and the race track facility or, on days and hours of live 
10racing, a complimentary shuttle service between the permanent 
11electronic gaming facility and the race track facility and 
12shall not charge electronic gaming participants an additional 
13admission fee to the race track facility.
14 (j) The Illinois Gaming Board must adopt emergency rules in 
15accordance with Section 5-45 of the Illinois Administrative 
16Procedure Act as necessary to ensure compliance with the 
17provisions of this amendatory Act of the 98th General Assembly

18concerning electronic gaming. The adoption of emergency rules 
19authorized by this subsection (j) shall be deemed to be 
20necessary for the public interest, safety, and welfare.
21 (k) Each electronic gaming licensee who obtains electronic 
22gaming positions must make a reconciliation payment 3 years 
23after the date the electronic gaming licensee begins operating 
24the positions in an amount equal to 75% of the difference 
25between its adjusted gross receipts from electronic gaming and 
26amounts paid to its purse accounts pursuant to item (1) of 
 
 
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1subsection (b) of Section 56 of the Illinois Horse Racing Act 
2of 1975 for the 12-month period for which such difference was 
3the largest, minus an amount equal to the initial per position 
4fee paid by the electronic gaming licensee. If this calculation 
5results in a negative amount, then the electronic gaming 
6licensee is not entitled to any reimbursement of fees 
7previously paid. This reconciliation payment may be made in 
8installments over a period of no more than 2 years, subject to 
9Board approval. Any installment payments shall include an 
10annual market interest rate as determined by the Board.
11 All payments by licensees under this subsection (i) shall 
12be deposited into the Gaming Facilities Fee Revenue Fund. 
13 (l) As soon as practical after a request is made by the 
14Illinois Gaming Board, to minimize duplicate submissions by the 
15applicant, the Illinois Racing Board must provide information 
16on an applicant for an electronic gaming license to the 
17Illinois Gaming Board.
18 (m) Subject to the approval of the Illinois Gaming Board, 
19an organization licensee that has received an electronic gaming 
20license under this Act and has operating control of a race 
21track facility located in Cook County may relocate its race 
22track facility as follows:
23  (1) the organization licensee may relocate within a 
24 3-mile radius of its existing race track facility so long 
25 as the organization licensee remains in Cook County and 
26 submits its plan to construct a new structure to conduct 
 
 
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1 electronic gaming operations; and
2  (2) the organization licensee may not relocate within a 
3 5-mile radius of a riverboat if the owners license was 
4 issued prior to December 31, 2011.
5The relocation must include the race track facility, including 
6the race track operations used to conduct live racing and the 
7electronic gaming facility in its entirety. For the purposes of 
8this subsection (m), "race track facility" means all operations 
9conducted on the race track property for which it was awarded a 
10license for pari-mutuel wagering and live racing in the year 
112010, except for the real estate itself. The Illinois Gaming 
12Board shall make its decision after consulting with the 
13Illinois Racing Board, and any relocation application shall be 
14subject to all of the provisions of this Act and the Illinois 
15Horse Racing Act of 1975. 

16 (230 ILCS 10/7.7 new)
17 Sec. 7.7. Home rule. The regulation and licensing of 
18electronic gaming and electronic gaming licensees are 
19exclusive powers and functions of the State. A home rule unit 
20may not regulate or license electronic gaming or electronic 
21gaming licensees. This Section is a denial and limitation of 
22home rule powers and functions under subsection (h) of Section

236 of Article VII of the Illinois Constitution.

24 (230 ILCS 10/7.8 new)

 
 
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1 Sec. 7.8. Casino operator license.
2 (a) A qualified person may apply to the Board for a casino 
3operator license to
operate
and manage any gambling operation 
4conducted by the Authority. The application shall
be
made on 
5forms provided by the Board and shall contain such information 
6as the
Board
prescribes, including but not limited to 
7information required in Sections 6(a),
(b), and
(c) and 
8information relating to the applicant's proposed price to 
9manage the Authority's gambling
operations and to provide the 
10casino, gambling equipment, and supplies
necessary to
conduct 
11Authority gambling operations. The application shall also 
12include a non-refundable application fee of $100,000. This 
13application fee shall be deposited into the Gaming Facilities 
14Fee Revenue Fund.
15 (b) A person, firm, or corporation is ineligible to receive 
16a casino operator license if:


17  (1) the person has been convicted of a felony under the 
18 laws of this
State, any other state, or the United States;


19  (2) the person has been convicted of any violation of 
20 Article 28 of
the Criminal Code of 2012, or substantially 
21 similar laws of any other
jurisdiction;


22  (3) the person has submitted an application for a 
23 license under this
Act which contains false information;


24  (4) the person is a member of the Board or the Chicago 
25 Casino Development Board or the person is an official or 
26 employee of the Chicago Casino Development Authority or the 
 
 
09800SB1739sam001- 439 -LRB098 10559 AMC 42403 a


1 City of Chicago;


2  (5) a person defined in (1), (2), (3), or (4) is an 
3 officer, director, or
managerial employee of the firm or 
4 corporation;


5  (6) the firm or corporation employs a person defined in 
6 (1), (2), (3),
or (4) who participates in the management or 
7 operation of gambling
operations authorized under this 
8 Act; or


9  (7) a license of the person, firm, or corporation 
10 issued under this Act,
or
a license to own or operate 
11 gambling facilities in any other jurisdiction, has
been 
12 revoked.

13 (c) In determining whether to grant a casino operator 
14license, the
Board shall consider:


15  (1) the character, reputation, experience and 
16 financial integrity of the
applicants and of any other or 
17 separate person that either:


18   (A) controls, directly or indirectly, such 
19 applicant, or


20   (B) is controlled, directly or indirectly, by such 
21 applicant or by a
person which controls, directly or 
22 indirectly, such applicant;


23  (2) the facilities or proposed facilities for the 
24 conduct of
gambling;


25  (3) the preference of the municipality in which the 
26 licensee will operate;


 
 
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1  (4) the extent to which the ownership of the applicant 
2 reflects the
diversity of the State by including minority 
3 persons and females
and the good faith affirmative action 
4 plan of
each applicant to recruit, train, and upgrade 
5 minority persons and females in all employment 
6 classifications;


7  (5) the financial ability of the applicant to purchase 
8 and maintain
adequate liability and casualty insurance;


9  (6) whether the applicant has adequate capitalization 
10 to provide and
maintain, for the duration of a license, a 
11 casino; and


12  (7) the extent to which the applicant exceeds or meets 
13 other standards
for the issuance of a managers license that 
14 the Board may adopt by rule.

15 (d) Each applicant shall submit with his or her 
16application, on forms
prescribed by
the Board, 2 sets of his or 
17her fingerprints. The Board shall charge each applicant a fee 
18set by the Department of State Police to defray the costs 
19associated with the search and classification of fingerprints 
20obtained by the Board with respect to the applicant's 
21application. This fee shall be paid into the State Police 
22Services Fund.

23 (e) A person who knowingly makes a false statement on an 
24application is
guilty of a Class A misdemeanor.

25 (f) The Board shall charge each applicant a non-refundable 
26fee of $50,000 to defray the costs associated with the 
 
 
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1background investigation conducted by the Board. This fee shall 
2be exclusive of any other fee or fees charged in connection 
3with an application for and, if applicable, the issuance of, a 
4casino operator license. If the costs of the investigation 
5exceed $50,000, the Board shall immediately notify the 
6applicant of the additional amount owed, payment of which must 
7be submitted to the Board within 7 days after such 
8notification. All information, records, interviews, reports, 
9statements, memoranda, or other data supplied to or used by the 
10Board in the course of its review or investigation of an 
11application for a license or a renewal under this Act shall be 
12privileged and strictly confidential, and shall be used only 
13for the purpose of evaluating an applicant for a license or a 
14renewal. Such information, records, interviews, reports, 
15statements, memoranda, or other data shall not be admissible as 
16evidence, nor discoverable in any action of any kind in any 
17court or before any tribunal, board, agency, or person, except 
18for any action deemed necessary by the Board. 
19 (g) The casino operator license shall be issued only upon 
20proof that the applicant has entered into a labor peace 
21agreement with each labor organization that is actively engaged 
22in representing and attempting to represent casino and 
23hospitality industry workers in this State. The labor peace 
24agreement must be a valid and enforceable agreement under 29 
25U.S.C. 185 that protects the city's and State's revenues from 
26the operation of the casino facility by prohibiting the labor 
 
 
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1organization and its members from engaging in any picketing, 
2work stoppages, boycotts, or any other economic interference 
3with the casino facility for at least the first 5 years of the 
4casino license and must cover all operations at the casino 
5facility that are conducted by lessees or tenants or under 
6management agreements. 
7 (h) The casino operator license shall be for a term of 4 
8years, shall
be
renewable by the Board, and shall contain such 
9terms and
provisions as the Board deems necessary to protect or 
10enhance the
credibility and integrity of State gambling 
11operations, achieve the highest
prospective total revenue to 
12the State, and otherwise serve the interests of
the citizens of 
13Illinois. The Board may revoke the license:
14  (1) for violation of any provision of this Act;
15  (2) for violation of any rules of the Board; 
16  (3) for any cause which, if known to the Board, would 
17 have disqualified the applicant from receiving the 
18 license; or
19  (4) for any other just cause. 


20 (230 ILCS 10/7.9 new)
21 Sec. 7.9. Diversity program.
22 (a) Each owners licensee, electronic gaming licensee, 
23casino operator licensee, and suppliers licensee shall 
24establish and maintain a diversity program to ensure 
25non-discrimination in the award and administration of 
 
 
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1contracts. The programs shall establish goals of awarding not 
2less than 20% of the annual dollar value of all contracts, 
3purchase orders, or other agreements to minority owned 
4businesses and 5% of the annual dollar value of all contracts 
5to female owned businesses.
6 (b) Each owners licensee, electronic gaming licensee, 
7casino operator licensee, and suppliers licensee shall 
8establish and maintain a diversity program designed to promote 
9equal opportunity for employment. The program shall establish 
10hiring goals as the Board and each licensee determines 
11appropriate. The Board shall monitor the progress of the gaming 
12licensee's progress with respect to the program's goals.
13 (c) No later than May 31 of each year each licensee shall 
14report to the Board the number of respective employees and the 
15number of their respective employees who have designated 
16themselves as members of a minority group and gender. In 
17addition, all licensees shall submit a report with respect to 
18the minority owned and female owned businesses program created 
19in this Section to the Board.

20 (230 ILCS 10/7.10 new)
21 Sec. 7.10. Annual report on diversity.
22 (a) Each licensee that receives a license under Sections 7, 
237.1, and 7.6 shall execute and file a report with the Board no 
24later than December 31 of each year that shall contain, but not 
25be limited to, the following information:
 
 
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1  (i) a good faith affirmative action plan to recruit, 
2 train, and upgrade minority persons, females, and persons 
3 with a disability in all employment classifications;
4  (ii) the total dollar amount of contracts that were 
5 awarded to businesses owned by minority persons, females, 
6 and persons with a disability;
7  (iii) the total number of businesses owned by minority 
8 persons, females, and persons with a disability that were 
9 utilized by the licensee;
10  (iv) the utilization of businesses owned by minority 
11 persons, females, and persons with disabilities during the 
12 preceding year; and
13  (v) the outreach efforts used by the licensee to 
14 attract investors and businesses consisting of minority 
15 persons, females, and persons with a disability.
16 (b) The Board shall forward a copy of each licensee's 
17annual reports to the General Assembly no later than February 1 
18of each year.

19 (230 ILCS 10/7.11 new)
20 Sec. 7.11. Issuance of new owners licenses.
21 (a) Except for the owners license issued to the Chicago 
22Casino Development Authority, owners licenses newly authorized 
23pursuant to this amendatory Act of the 98th General Assembly 
24may be issued by the Board to a qualified applicant pursuant to 
25an open and competitive bidding process, as set forth in 
 
 
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1Section 7.5, and subject to the maximum number of authorized 
2licenses set forth in subsection (e-5) of Section 7 of this 
3Act.
4 (b) To be a qualified applicant, a person, firm, or 
5corporation may not be ineligible to receive an owners license 
6under subsection (a) of Section 7 of this Act and must submit 
7an application for an owners license that complies with Section 
86 of this Act.
9 (c) In determining whether to grant an owners license to an 
10applicant, the Board shall consider all of the factors set 
11forth in subsections (b) and (e-10) of Section 7 of this Act, 
12as well as the amount of the applicant's license bid. The Board 
13may grant the owners license to an applicant that has not 
14submitted the highest license bid, but if it does not select 
15the highest bidder, the Board shall issue a written decision 
16explaining why another applicant was selected and identifying 
17the factors set forth in subsections (b) and (e-10) of Section 
187 of this Act that favored the winning bidder.

19 (230 ILCS 10/7.12 new)
20 Sec. 7.12. Environmental standards.  All permanent 
21casinos, riverboats, and electronic gaming facilities shall 
22consist of buildings that are certified as meeting the U.S. 
23Green Building Council's Leadership in Energy and 
24Environmental Design standards. The provisions of this Section 
25apply to a holder of an owners license, casino operator 
 
 
09800SB1739sam001- 446 -LRB098 10559 AMC 42403 a


1license, or electronic gaming license that (i) begins 
2operations on or after January 1, 2013 or (ii) relocates its 
3facilities on or after the effective date of this amendatory 
4Act of the 98th General Assembly.




5 (230 ILCS 10/8) (from Ch. 120, par. 2408)



6 Sec. 8. Suppliers licenses. 

7 (a) The Board may issue a suppliers license to such 
8persons, firms or
corporations which apply therefor upon the 
9payment of a non-refundable
application fee set by the Board, 
10upon a determination by the Board that
the applicant is 
11eligible for a suppliers license and upon payment of a
$5,000 
12annual license
fee.

13 (b) The holder of a suppliers license is authorized to sell 
14or lease,
and to contract to sell or lease, gambling equipment 
15and supplies to any
licensee involved in the ownership or 
16management of gambling operations.

17 (c) Gambling supplies and equipment may not be distributed

18unless supplies and equipment conform to standards adopted by

19rules of the Board.

20 (d) A person, firm or corporation is ineligible to receive 
21a suppliers
license if:


22  (1) the person has been convicted of a felony under the 
23 laws of this
State, any other state, or the United States;


24  (2) the person has been convicted of any violation of 
25 Article 28 of the
Criminal Code of 1961 or the Criminal 
 
 
09800SB1739sam001- 447 -LRB098 10559 AMC 42403 a


1 Code of 2012, or substantially similar laws of any other 
2 jurisdiction;


3  (3) the person has submitted an application for a 
4 license under this
Act which contains false information;


5  (4) the person is a member of the Board;


6  (5) the firm or corporation is one in which a person 
7 defined in (1),
(2), (3) or (4), is an officer, director or 
8 managerial employee;


9  (6) the firm or corporation employs a person who 
10 participates in the
management or operation of riverboat 
11 gambling authorized under this Act or the Chicago Casino 
12 Development Authority Act;


13  (7) the license of the person, firm or corporation 
14 issued under
this Act or the Chicago Casino Development 
15 Authority Act, or a license to own or operate gambling 
16 facilities
in any other jurisdiction, has been revoked.

17 (e) Any person that supplies any equipment, devices, or 
18supplies to a
licensed riverboat gambling operation or casino 
19or electronic gaming operation must first obtain a suppliers

20license. A supplier shall furnish to the Board a list of all 
21equipment,
devices and supplies offered for sale or lease in 
22connection with gambling
games authorized under this Act. A 
23supplier shall keep books and records
for the furnishing of 
24equipment, devices and supplies to gambling
operations 
25separate and distinct from any other business that the supplier

26might operate. A supplier shall file a quarterly return with 
 
 
09800SB1739sam001- 448 -LRB098 10559 AMC 42403 a


1the Board
listing all sales and leases. A supplier shall 
2permanently affix its name
to all its equipment, devices, and 
3supplies for gambling operations.
Any supplier's equipment, 
4devices or supplies which are used by any person
in an 
5unauthorized gambling operation shall be forfeited to the 
6State. A holder of an owners license or an electronic gaming 
7license A
licensed owner may own its own equipment, devices and 
8supplies. Each
holder of an owners license or an electronic 
9gaming license under the Act shall file an annual report

10listing its inventories of gambling equipment, devices and 
11supplies.

12 (f) Any person who knowingly makes a false statement on an 
13application
is guilty of a Class A misdemeanor.

14 (g) Any gambling equipment, devices and supplies provided 
15by any
licensed supplier may either be repaired on the 
16riverboat, in the casino, or at the electronic gaming facility 
17or removed from
the riverboat, casino, or electronic gaming 
18facility to a an on-shore facility owned by the holder of an 
19owners
license or electronic gaming license for repair.

20(Source: P.A. 97-1150, eff. 1-25-13.)





21 (230 ILCS 10/9) (from Ch. 120, par. 2409)



22 Sec. 9. Occupational licenses. 

23 (a) The Board may issue an occupational license to an 
24applicant upon the
payment of a non-refundable fee set by the 
25Board, upon a determination by
the Board that the applicant is 
 
 
09800SB1739sam001- 449 -LRB098 10559 AMC 42403 a


1eligible for an occupational license and
upon payment of an 
2annual license fee in an amount to be established. To
be 
3eligible for an occupational license, an applicant must:


4  (1) be at least 21 years of age if the applicant will 
5 perform any
function involved in gaming by patrons. Any 
6 applicant seeking an
occupational license for a non-gaming 
7 function shall be at least 18 years
of age;


8  (2) not have been convicted of a felony offense, a 
9 violation of Article
28 of the Criminal Code of 1961 or the 
10 Criminal Code of 2012, or a similar statute of any other

11 jurisdiction;

12  (2.5) not have been convicted of a crime, other than a 
13 crime described in item (2) of this subsection (a), 
14 involving dishonesty or moral turpitude, except that the 
15 Board may, in its discretion, issue an occupational license 
16 to a person who has been convicted of a crime described in 
17 this item (2.5) more than 10 years prior to his or her 
18 application and has not subsequently been convicted of any 
19 other crime; 

20  (3) have demonstrated a level of skill or knowledge 
21 which the Board
determines to be necessary in order to 
22 operate gambling aboard a riverboat, in a casino, or at an 
23 electronic gaming facility; and


24  (4) have met standards for the holding of an 
25 occupational license as
adopted by rules of the Board. Such 
26 rules shall provide that any person or
entity seeking an 
 
 
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1 occupational license to manage gambling operations
under 
2 this Act or the Chicago Casino Development Authority Act 
3 hereunder shall be subject to background inquiries and 
4 further requirements
similar to those required of 
5 applicants for an owners license.
Furthermore, such rules 
6 shall provide that each such entity shall be
permitted to 
7 manage gambling operations for only one licensed owner.

8 (b) Each application for an occupational license shall be 
9on forms
prescribed by the Board and shall contain all 
10information required by the
Board. The applicant shall set 
11forth in the application: whether he has been
issued prior 
12gambling related licenses; whether he has been licensed in any

13other state under any other name, and, if so, such name and his 
14age; and
whether or not a permit or license issued to him in 
15any other state has
been suspended, restricted or revoked, and, 
16if so, for what period of time.

17 (c) Each applicant shall submit with his application, on 
18forms provided
by the Board, 2 sets of his fingerprints. The 
19Board shall charge each
applicant a fee set by the Department 
20of State Police to defray the costs
associated with the search 
21and classification of fingerprints obtained by
the Board with 
22respect to the applicant's application. These fees shall be

23paid into the State Police Services Fund.

24 (d) The Board may in its discretion refuse an occupational 
25license to
any person: (1) who is unqualified to perform the 
26duties required of such
applicant; (2) who fails to disclose or 
 
 
09800SB1739sam001- 451 -LRB098 10559 AMC 42403 a


1states falsely any information
called for in the application; 
2(3) who has been found guilty of a
violation of this Act or the 
3Chicago Casino Development Authority Act or whose prior 
4gambling related license or
application therefor has been 
5suspended, restricted, revoked or denied for
just cause in any 
6other state; or (4) for any other just cause.

7 (e) The Board may suspend, revoke or restrict any 
8occupational licensee:
(1) for violation of any provision of 
9this Act; (2) for violation of any
of the rules and regulations 
10of the Board; (3) for any cause which, if
known to the Board, 
11would have disqualified the applicant from receiving
such 
12license; or (4) for default in the payment of any obligation or 
13debt
due to the State of Illinois; or (5) for any other just 
14cause.

15 (f) A person who knowingly makes a false statement on an 
16application is
guilty of a Class A misdemeanor.

17 (g) Any license issued pursuant to this Section shall be 
18valid for a
period of one year from the date of issuance.

19 (h) Nothing in this Act shall be interpreted to prohibit a 
20licensed
owner or electronic gaming licensee from entering into 
21an agreement with a public community college or a school 
22approved under the
Private Business and Vocational Schools Act 
23of 2012 for the training of any
occupational licensee. Any 
24training offered by such a school shall be in
accordance with a 
25written agreement between the licensed owner or electronic 
26gaming licensee and the school.

 
 
09800SB1739sam001- 452 -LRB098 10559 AMC 42403 a


1 (i) Any training provided for occupational licensees may be 
2conducted
either at the site of the gambling facility on the 
3riverboat or at a school with which a licensed owner or 
4electronic gaming licensee has
entered into an agreement 
5pursuant to subsection (h).

6(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12; 
797-1150, eff. 1-25-13.)





8 (230 ILCS 10/11) (from Ch. 120, par. 2411)



9 Sec. 11. Conduct of gambling. Gambling may be conducted by 
10licensed owners or licensed managers on behalf
of the State 
11aboard riverboats. Gambling may be conducted by electronic 
12gaming licensees at electronic gaming facilities. Gambling 
13authorized under this Section is ,
subject to the following 
14standards:


15  (1) A licensee may conduct riverboat gambling 
16 authorized under this Act
regardless of whether it conducts 
17 excursion cruises. A licensee may permit
the continuous 
18 ingress and egress of patrons passengers on a riverboat not 
19 used for excursion cruises for the purpose of gambling. 
20 Excursion cruises shall not exceed 4 hours for a round 
21 trip. However, the Board may grant express approval for an 
22 extended cruise on a case-by-case basis. 


23  (2) (Blank).


24  (3) Minimum and maximum wagers on games shall be set by 
25 the licensee.


 
 
09800SB1739sam001- 453 -LRB098 10559 AMC 42403 a


1  (4) Agents of the Board and the Department of State 
2 Police may board
and inspect any riverboat, enter and 
3 inspect any portion of a casino, or enter and inspect any 
4 portion of an electronic gaming facility at any time for 
5 the purpose of determining
whether this Act or the Chicago 
6 Casino Development Authority Act is being complied with. 
7 Every riverboat, if under way and
being hailed by a law 
8 enforcement officer or agent of the Board, must stop

9 immediately and lay to.


10  (5) Employees of the Board shall have the right to be 
11 present on the
riverboat or in the casino or on adjacent 
12 facilities under the control of the licensee and at the 
13 electronic gaming facility under the control of the 
14 electronic gaming licensee.


15  (6) Gambling equipment and supplies customarily used 
16 in conducting
riverboat or casino gambling or electronic 
17 gaming must be purchased or leased only from suppliers 
18 licensed
for such purpose under this Act. The Board may 
19 approve the transfer, sale, or lease of gambling equipment 
20 and supplies by a licensed owner from or to an affiliate of 
21 the licensed owner as long as the gambling equipment and 
22 supplies were initially acquired from a supplier licensed 
23 in Illinois. 


24  (7) Persons licensed under this Act or the Chicago 
25 Casino Development Authority Act shall permit no form of 
26 wagering on
gambling games except as permitted by this Act.


 
 
09800SB1739sam001- 454 -LRB098 10559 AMC 42403 a


1  (8) Wagers may be received only from a person present 
2 on a licensed
riverboat, in a casino, or at an electronic 
3 gaming facility. No person present on a licensed riverboat, 
4 in a casino, or at an electronic gaming facility shall 
5 place
or attempt to place a wager on behalf of another 
6 person who is not present
on the riverboat, in a casino, or 
7 at the electronic gaming facility.


8  (9) Wagering, including electronic gaming, shall not 
9 be conducted with money or other negotiable
currency.


10  (10) A person under age 21 shall not be permitted on an 
11 area of a
riverboat or casino where gambling is being 
12 conducted or at an electronic gaming facility where 
13 gambling is being conducted, except for a person at least

14 18 years of age who is an employee of the riverboat or 
15 casino gambling operation or electronic gaming operation. 
16 No
employee under age 21 shall perform any function 
17 involved in gambling by
the patrons. No person under age 21 
18 shall be permitted to make a wager under
this Act or the 
19 Chicago Casino Development Authority Act, and any winnings 
20 that are a result of a wager by a person under age 21, 
21 whether or not paid by a licensee, shall be treated as 
22 winnings for the privilege tax purposes, confiscated, and 
23 forfeited to the State and deposited into the Education 
24 Assistance Fund.


25  (11) Gambling excursion cruises are permitted only 
26 when the waterway for
which the riverboat is licensed is 
 
 
09800SB1739sam001- 455 -LRB098 10559 AMC 42403 a


1 navigable, as determined by
the Board in consultation with 
2 the U.S. Army Corps of Engineers.
This paragraph (11) does 
3 not limit the ability of a licensee to conduct
gambling 
4 authorized under this Act when gambling excursion cruises 
5 are not
permitted.


6  (12) All tokens, chips or electronic cards used to make 
7 wagers must be
purchased (i) from a licensed owner or 
8 manager, in the case of a riverboat, either aboard a 
9 riverboat or at
an onshore
facility which has been approved 
10 by the Board and which is located where
the riverboat 
11 docks, (ii) in the case of a casino, from a licensed owner 
12 or licensed casino operator at the casino, or (iii) from an 
13 electronic gaming licensee at the electronic gaming 
14 facility. The tokens, chips or electronic cards may be

15 purchased by means of an agreement under which the owner, 
16 or manager, or licensed casino operator extends
credit to

17 the patron. Such tokens, chips or electronic cards may be 
18 used
while aboard the riverboat, in the casino, or at the 
19 electronic gaming facility only for the purpose of making 
20 wagers on
gambling games.


21  (13) Notwithstanding any other Section of this Act or 
22 the Chicago Casino Development Authority Act, in addition 
23 to the
other licenses authorized under this Act or the 
24 Chicago Casino Development Authority Act, the Board may 
25 issue special event
licenses allowing persons who are not 
26 otherwise licensed to conduct
riverboat gambling to 
 
 
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1 conduct such gambling on a specified date or series
of 
2 dates. Riverboat gambling under such a license may take 
3 place on a
riverboat not normally used for riverboat 
4 gambling. The Board shall
establish standards, fees and 
5 fines for, and limitations upon, such
licenses, which may 
6 differ from the standards, fees, fines and limitations

7 otherwise applicable under this Act or the Chicago Casino 
8 Development Authority Act. All such fees shall be deposited 
9 into
the State Gaming Fund. All such fines shall be 
10 deposited into the
Education Assistance Fund, created by 
11 Public Act 86-0018, of the State
of Illinois.


12  (14) In addition to the above, gambling must be 
13 conducted in accordance
with all rules adopted by the 
14 Board.

15(Source: P.A. 96-1392, eff. 1-1-11.)





16 (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)



17 Sec. 11.1. Collection of amounts owing under credit 
18agreements. Notwithstanding any applicable statutory provision 
19to the contrary, a
licensed owner, licensed or manager, 
20licensed casino operator, or electronic gaming licensee who 
21extends credit to a riverboat gambling patron or an electronic 
22gaming patron
pursuant
to Section 11 (a) (12) of this Act is 
23expressly authorized to institute a
cause of action to collect 
24any amounts due and owing under the extension of
credit, as 
25well as the licensed owner's, licensed or manager's, licensed 
 
 
09800SB1739sam001- 457 -LRB098 10559 AMC 42403 a


1casino operator's, or electronic gaming licensee's costs, 
2expenses and reasonable
attorney's
fees incurred in 
3collection.

4(Source: P.A. 93-28, eff. 6-20-03.)





5 (230 ILCS 10/12) (from Ch. 120, par. 2412)



6 Sec. 12. Admission tax; fees. 

7 (a) A tax is hereby imposed upon admissions to riverboat 
8and casino gambling facilities riverboats operated by
licensed 
9owners authorized pursuant to this Act and the Chicago Casino 
10Development Authority Act. Until July 1, 2002, the
rate is $2 
11per person admitted. From July 1, 2002 until
July 1, 2003, the 
12rate is $3 per person admitted.
From July 1, 2003 until August 
1323, 2005 (the effective date of Public Act 94-673), for a 
14licensee that admitted 1,000,000 persons or
fewer in the 
15previous calendar year, the rate is $3 per person admitted; for 
16a
licensee that admitted more than 1,000,000 but no more than 
172,300,000 persons
in the previous calendar year, the rate is $4 
18per person admitted; and for
a licensee that admitted more than 
192,300,000 persons in the previous calendar
year, the rate is $5 
20per person admitted.
Beginning on August 23, 2005 (the 
21effective date of Public Act 94-673), for a licensee that 
22admitted 1,000,000 persons or
fewer in calendar year 2004, the 
23rate is $2 per person admitted, and for all other
licensees, 
24including licensees that were not conducting gambling 
25operations in 2004, the rate is $3 per person admitted.
This 
 
 
09800SB1739sam001- 458 -LRB098 10559 AMC 42403 a


1admission tax is imposed upon the
licensed owner conducting 
2gambling.


3  (1) The admission tax shall be paid for each admission, 
4 except that a person who exits a riverboat gambling 
5 facility and reenters that riverboat gambling facility 
6 within the same gaming day shall be subject only to the 
7 initial admission tax.


8  (2) (Blank).


9  (3) The riverboat licensee may issue tax-free passes to

10 actual and necessary officials and employees of the 
11 licensee or other
persons actually working on the 
12 riverboat.


13  (4) The number and issuance of tax-free passes is 
14 subject to the rules
of the Board, and a list of all 
15 persons to whom the tax-free passes are
issued shall be 
16 filed with the Board.

17 (a-5) A fee is hereby imposed upon admissions operated by 
18licensed
managers on behalf of the State pursuant to Section 
197.3 at the rates provided
in
this subsection (a-5). For a 
20licensee that
admitted 1,000,000 persons or fewer in the 
21previous calendar year, the rate is
$3 per person admitted; for 
22a licensee that admitted more than 1,000,000 but no
more than 
232,300,000 persons
in the previous calendar year, the rate is $4 
24per person admitted; and for
a licensee that admitted more than 
252,300,000 persons in the previous calendar
year, the rate is $5 
26per person admitted.


 
 
09800SB1739sam001- 459 -LRB098 10559 AMC 42403 a


1  (1) The admission fee shall be paid for each admission.


2  (2) (Blank).


3  (3) The licensed manager may issue fee-free passes to 
4 actual and necessary
officials and employees of the manager 
5 or other persons actually working on the
riverboat.


6  (4) The number and issuance of fee-free passes is 
7 subject to the rules
of the Board, and a list of all 
8 persons to whom the fee-free passes are
issued shall be 
9 filed with the Board.

10 (b) Except as provided in subsection (b-5), from From the 
11tax imposed under subsection (a) and the fee imposed under

12subsection (a-5), a municipality shall receive from the State 
13$1 for each
person embarking on a riverboat docked within the 
14municipality or entering a casino located within the 
15municipality, and a county
shall receive $1 for each person 
16entering a casino or embarking on a riverboat docked within the

17county but outside the boundaries of any municipality. The 
18municipality's or
county's share shall be collected by the 
19Board on behalf of the State and
remitted quarterly by the 
20State, subject to appropriation, to the treasurer of
the unit 
21of local government for deposit in the general fund.

22 (b-5) From the tax imposed under subsection (a) and the fee 
23imposed under subsection (a-5), $1 for each person embarking on 
24a riverboat designated in paragraph (4) of subsection (e-5) of 
25Section 7 shall be divided and remitted from the State 
26according to a revenue-sharing agreement between the City of 
 
 
09800SB1739sam001- 460 -LRB098 10559 AMC 42403 a


1Rockford and Winnebago County, the terms of which shall be 
2determined by the City of Rockford and Winnebago County. The 
3City of Rockford and Winnebago County shall transmit a copy of 
4the executed revenue-sharing agreement to the Board no later 
5than 90 days after the effective date of this amendatory Act of 
6the 98th General Assembly.
7 The municipality's or county's share shall be collected by 
8the Board on behalf of the State and remitted quarterly by the 
9State, subject to appropriation, to the treasurer of the unit 
10of local government for deposit in the general fund. 
11 (c) The licensed owner shall pay the entire admission tax 
12to the Board and
the licensed manager or the casino operator 
13licensee shall pay the entire admission fee to the Board.
Such 
14payments shall be made daily. Accompanying each payment shall 
15be a
return on forms provided by the Board which shall include 
16other
information regarding admissions as the Board may 
17require. Failure to
submit either the payment or the return 
18within the specified time may
result in suspension or 
19revocation of the owners or managers license.

20 (c-5) A tax is imposed on admissions to electronic gaming 
21facilities at the rate of $3 per person admitted by an 
22electronic gaming licensee. The tax is imposed upon the 
23electronic gaming licensee.
24  (1) The admission tax shall be paid for each admission, 
25 except that a person who exits an electronic gaming 
26 facility and reenters that electronic gaming facility 
 
 
09800SB1739sam001- 461 -LRB098 10559 AMC 42403 a


1 within the same gaming day, as the term "gaming day" is 
2 defined by the Board by rule, shall be subject only to the 
3 initial admission tax. The Board shall establish, by rule, 
4 a procedure to determine whether a person admitted to an 
5 electronic gaming facility has paid the admission tax.
6  (2) An electronic gaming licensee may issue tax-free 
7 passes to actual and necessary officials and employees of 
8 the licensee and other persons associated with electronic 
9 gaming operations.
10  (3) The number and issuance of tax-free passes is 
11 subject to the rules of the Board, and a list of all 
12 persons to whom the tax-free passes are issued shall be

13 filed with the Board.
14  (4) The electronic gaming licensee shall pay the entire 
15 admission tax to the Board.
16 Such payments shall be made daily. Accompanying each 
17payment shall be a return on forms provided by the Board, which 
18shall include other information regarding admission as the 
19Board may require. Failure to submit either the payment or the 
20return within the specified time may result in suspension or 
21revocation of the electronic gaming license.
22 From the tax imposed under this subsection (c-5), a 
23municipality other than the Village of Stickney or the City of 
24Collinsville in which an electronic gaming facility is located, 
25or if the electronic gaming facility is not located within a 
26municipality, then the county in which the electronic gaming 
 
 
09800SB1739sam001- 462 -LRB098 10559 AMC 42403 a


1facility is located, except as otherwise provided in this 
2Section, shall receive, subject to appropriation, $1 for each 
3person who enters the electronic gaming facility. For each 
4admission to the electronic gaming facility in excess of 
51,500,000 in a year, from the tax imposed under this subsection 
6(c-5), the county in which the electronic gaming facility is 
7located shall receive, subject to appropriation, $0.30, which 
8shall be in addition to any other moneys paid to the county 
9under this Section.
10 From the tax imposed under this subsection (c-5) on an 
11electronic gaming facility located in the Village of Stickney, 
12$1 for each person who enters the electronic gaming facility 
13shall be distributed as follows, subject to appropriation: 
14$0.25 to the Village of Stickney, $.50 to the Town of Cicero, 
15$0.05 to the City of Berwyn, and $0.20 to the Stickney Public 
16Health District. 
17 From the tax imposed under this subsection (c-5) on an 
18electronic gaming facility located in the City of Collinsville, 
19$1 for each person who enters the electronic gaming facility 
20shall be distributed as follows, subject to appropriation: 
21$0.45 to the City of Alton, $0.45 to the City of East St. 
22Louis, and $0.10 to the City of Collinsville. 
23 From the tax imposed under this subsection (c-5) on an 
24electronic gaming facility that is located in an unincorporated 
25area of Cook County and has been awarded
standardbred racing 
26dates during 2011 by the Illinois Racing Board, $1 for each 
 
 
09800SB1739sam001- 463 -LRB098 10559 AMC 42403 a


1person who enters the electronic gaming facility shall be 
2divided equally and distributed, subject to appropriation, to 
3the Village of Melrose Park, the Village of Maywood, and Cook 
4County. 
5 After payments required under this subsection (c-5) have 
6been made, all remaining amounts shall be deposited into the 
7Education Assistance Fund. 
8 (d) The Board shall administer and collect the admission 
9tax imposed by
this Section, to the extent practicable, in a 
10manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
6b, 6c, 8, 9 and 10 of the 
12Retailers' Occupation Tax Act and
Section 3-7 of the Uniform 
13Penalty and Interest Act.

14(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)





15 (230 ILCS 10/13) (from Ch. 120, par. 2413)


16 Sec. 13. Wagering tax; rate; distribution. 

17 (a) Until January 1, 1998, a tax is imposed on the adjusted 
18gross
receipts received from gambling games authorized under 
19this Act at the rate of
20%.

20 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
21tax is
imposed on persons engaged in the business of conducting 
22riverboat gambling
operations, based on the adjusted gross 
23receipts received by a licensed owner
from gambling games 
24authorized under this Act at the following rates:


25  15% of annual adjusted gross receipts up to and 
 
 
09800SB1739sam001- 464 -LRB098 10559 AMC 42403 a


1 including $25,000,000;


2  20% of annual adjusted gross receipts in excess of 
3 $25,000,000 but not
exceeding $50,000,000;


4  25% of annual adjusted gross receipts in excess of 
5 $50,000,000 but not
exceeding $75,000,000;


6  30% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not
exceeding $100,000,000;


8  35% of annual adjusted gross receipts in excess of 
9 $100,000,000.

10 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
11is imposed on
persons engaged in the business of conducting 
12riverboat gambling operations,
other than licensed managers 
13conducting riverboat gambling operations on behalf
of the 
14State, based on the adjusted gross receipts received by a 
15licensed
owner from gambling games authorized under this Act at 
16the following rates:


17  15% of annual adjusted gross receipts up to and 
18 including $25,000,000;


19  22.5% of annual adjusted gross receipts in excess of 
20 $25,000,000 but not
exceeding $50,000,000;


21  27.5% of annual adjusted gross receipts in excess of 
22 $50,000,000 but not
exceeding $75,000,000;


23  32.5% of annual adjusted gross receipts in excess of 
24 $75,000,000 but not
exceeding $100,000,000;


25  37.5% of annual adjusted gross receipts in excess of 
26 $100,000,000 but not
exceeding $150,000,000;


 
 
09800SB1739sam001- 465 -LRB098 10559 AMC 42403 a


1  45% of annual adjusted gross receipts in excess of 
2 $150,000,000 but not
exceeding $200,000,000;


3  50% of annual adjusted gross receipts in excess of 
4 $200,000,000.

5 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
6persons engaged
in the business of conducting riverboat 
7gambling operations, other than
licensed managers conducting 
8riverboat gambling operations on behalf of the
State, based on 
9the adjusted gross receipts received by a licensed owner from

10gambling games authorized under this Act at the following 
11rates:


12  15% of annual adjusted gross receipts up to and 
13 including $25,000,000;


14  27.5% of annual adjusted gross receipts in excess of 
15 $25,000,000 but not
exceeding $37,500,000;


16  32.5% of annual adjusted gross receipts in excess of 
17 $37,500,000 but not
exceeding $50,000,000;


18  37.5% of annual adjusted gross receipts in excess of 
19 $50,000,000 but not
exceeding $75,000,000;


20  45% of annual adjusted gross receipts in excess of 
21 $75,000,000 but not
exceeding $100,000,000;


22  50% of annual adjusted gross receipts in excess of 
23 $100,000,000 but not
exceeding $250,000,000;


24  70% of annual adjusted gross receipts in excess of 
25 $250,000,000.

26 An amount equal to the amount of wagering taxes collected 
 
 
09800SB1739sam001- 466 -LRB098 10559 AMC 42403 a


1under this
subsection (a-3) that are in addition to the amount 
2of wagering taxes that
would have been collected if the 
3wagering tax rates under subsection (a-2)
were in effect shall 
4be paid into the Common School Fund.

5 The privilege tax imposed under this subsection (a-3) shall 
6no longer be
imposed beginning on the earlier of (i) July 1, 
72005; (ii) the first date
after June 20, 2003 that riverboat 
8gambling operations are conducted
pursuant to a dormant 
9license; or (iii) the first day that riverboat gambling

10operations are conducted under the authority of an owners 
11license that is in
addition to the 10 owners licenses initially 
12authorized under this Act.
For the purposes of this subsection 
13(a-3), the term "dormant license"
means an owners license that 
14is authorized by this Act under which no
riverboat gambling 
15operations are being conducted on June 20, 2003.

16 (a-4) Beginning on the first day on which the tax imposed 
17under
subsection (a-3) is no longer imposed and ending upon the 
18imposition of the privilege tax under subsection (a-5) of this 
19Section, a privilege tax is imposed on persons
engaged in the 
20business of conducting riverboat or casino gambling or 
21electronic gaming operations, other
than licensed managers 
22conducting riverboat gambling operations on behalf of
the 
23State, based on the adjusted gross receipts received by a 
24licensed owner
from gambling games authorized under this Act at 
25the following rates:


26  15% of annual adjusted gross receipts up to and 
 
 
09800SB1739sam001- 467 -LRB098 10559 AMC 42403 a


1 including $25,000,000;


2  22.5% of annual adjusted gross receipts in excess of 
3 $25,000,000 but not
exceeding $50,000,000;


4  27.5% of annual adjusted gross receipts in excess of 
5 $50,000,000 but not
exceeding $75,000,000;


6  32.5% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not
exceeding $100,000,000;


8  37.5% of annual adjusted gross receipts in excess of 
9 $100,000,000 but not
exceeding $150,000,000;


10  45% of annual adjusted gross receipts in excess of 
11 $150,000,000 but not
exceeding $200,000,000;


12  50% of annual adjusted gross receipts in excess of 
13 $200,000,000.

14 For the imposition of the privilege tax in this subsection 
15(a-4), amounts paid pursuant to item (1) of subsection (b) of 
16Section 56 of the Illinois Horse Racing Act of 1975 shall not 
17be included in the determination of adjusted gross receipts. 
18 (a-5) Beginning in the fiscal year following the opening of 
19the casino at which gambling operations are conducted pursuant 
20to the Chicago Casino Development Authority Act, but not before 
21July 1, 2015, a privilege tax is imposed on persons engaged in 
22the business of conducting riverboat or casino gambling or 
23electronic gaming operations, other than licensed managers 
24conducting riverboat gambling operations on behalf of the 
25State, based on the adjusted gross receipts received by such 
26licensee from the gambling games authorized under this Act and 
 
 
09800SB1739sam001- 468 -LRB098 10559 AMC 42403 a


1the Chicago Casino Development Authority Act. The privilege tax 
2for all gambling games other than table games, including, but 
3not limited to, slot machines, video game of chance gambling, 
4and electronic gambling games shall be at the following rates:
5  10% of annual adjusted gross receipts up to and 
6 including $25,000,000;
7  17.5% of annual adjusted gross receipts in excess of 
8 $25,000,000 but not exceeding $50,000,000;
9  22.5% of annual adjusted gross receipts in excess of 
10 $50,000,000 but not exceeding $75,000,000;
11  27.5% of annual adjusted gross receipts in excess of 
12 $75,000,000 but not exceeding $100,000,000;
13  32.5% of annual adjusted gross receipts in excess of 
14 $100,000,000 but not exceeding $150,000,000;
15  35% of annual adjusted gross receipts in excess of 
16 $150,000,000 but not exceeding $200,000,000;
17  40% of annual adjusted gross receipts in excess of 
18 $200,000,000 but not exceeding $300,000,000;
19  30% of annual adjusted gross receipts in excess of 
20 $300,000,000 but not exceeding $350,000,000;
21  20% of annual adjusted gross receipts in excess of 
22 $350,000,000, but not exceeding $800,000,000;
23  50% of annual adjusted gross receipts in excess of 
24 $800,000,000.
25 The privilege tax for table games shall be at the following 
26rates:
 
 
09800SB1739sam001- 469 -LRB098 10559 AMC 42403 a


1  10% of annual adjusted gross receipts up to and 
2 including $25,000,000;
3  17.5% of annual adjusted gross receipts in excess of 
4 $25,000,000 but not exceeding $50,000,000;
5  22.5% of annual adjusted gross receipts in excess of 
6 $50,000,000 but not exceeding $70,000,000;
7  16% of annual adjusted gross receipts in excess of 
8 $70,000,000.
9 For the imposition of the privilege tax in this subsection 
10(a-5), amounts paid pursuant to item (1) of subsection (b) of 
11Section 56 of the Illinois Horse Racing Act of 1975 shall not 
12be included in the determination of adjusted gross receipts.
13 (a-6) From the effective date of this amendatory Act of the 
1498th General Assembly until June 30, 2017, an owners licensee 
15that conducted gambling operations prior to January 1, 2011 
16shall receive a dollar-for-dollar credit against the tax 
17imposed under this Section for any renovation or construction 
18costs paid by the owners licensee, but in no event shall the 
19credit exceed $2,000,000.
20 Additionally, from the effective date of this amendatory 
21Act of the 98th General Assembly until December 31, 2016, an 
22owners licensee that (i) is located within 15 miles of the 
23Missouri border, and (ii) has at least 3 riverboats, casinos, 
24or their equivalent within a 45-mile radius, may be authorized 
25to relocate to a new location with the approval of both the 
26unit of local government designated as the home dock and the 
 
 
09800SB1739sam001- 470 -LRB098 10559 AMC 42403 a


1Board, so long as the new location is within the same unit of 
2local government and no more than 3 miles away from its 
3original location. Such owners licensee shall receive a credit 
4against the tax imposed under this Section equal to 8% of the 
5total project costs, as approved by the Board, for any 
6renovation or construction costs paid by the owners licensee 
7for the construction of the new facility, provided that the new 
8facility is operational by July 1, 2016. In determining whether 
9or not to approve a relocation, the Board must consider the 
10extent to which the relocation will diminish the gaming 
11revenues received by other Illinois gaming facilities.
12 (a-8) Riverboat gambling operations conducted by a 
13licensed manager on
behalf of the State are not subject to the 
14tax imposed under this Section.

15 (a-9) Beginning on January 1, 2014, the calculation of 
16gross receipts or adjusted gross receipts, for the purposes of 
17this Section, for a riverboat, casino, or electronic gaming 
18facility shall not include the dollar amount of non-cashable 
19vouchers, coupons, and electronic promotions redeemed by 
20wagerers upon the riverboat, in the casino, or in the 
21electronic gaming facility up to and including an amount not to 
22exceed 30% of a riverboat casino or electronic gaming 
23facility's adjusted gross receipts.
24 The Illinois Gaming Board shall submit to the General 
25Assembly a comprehensive report no later than March 31, 2017 
26detailing, at a minimum, the effect of removing non-cashable 
 
 
09800SB1739sam001- 471 -LRB098 10559 AMC 42403 a


1vouchers, coupons, and electronic promotions from this 
2calculation on net gaming revenues to the State in calendar 
3years 2014 through 2016, the increase or reduction in wagerers 
4as a result of removing non-cashable vouchers, coupons, and 
5electronic promotions from this calculation, the effect of the 
6tax rates in subsection (a-5) on net gaming revenues to the 
7State, and proposed modifications to the calculation. 
8 (a-10) The taxes imposed by this Section shall be paid by 
9the licensed
owner or the electronic gaming licensee to the 
10Board not later than 5:00 o'clock p.m. of the day after the day

11when the wagers were made.

12 (a-15) If the privilege tax imposed under subsection (a-3) 
13is no longer imposed pursuant to item (i) of the last paragraph 
14of subsection (a-3), then by June 15 of each year, each owners 
15licensee, other than an owners licensee that admitted 1,000,000 
16persons or
fewer in calendar year 2004, must, in addition to 
17the payment of all amounts otherwise due under this Section, 
18pay to the Board a reconciliation payment in the amount, if 
19any, by which the licensed owner's base amount exceeds the 
20amount of net privilege tax paid by the licensed owner to the 
21Board in the then current State fiscal year. A licensed owner's 
22net privilege tax obligation due for the balance of the State 
23fiscal year shall be reduced up to the total of the amount paid 
24by the licensed owner in its June 15 reconciliation payment. 
25The obligation imposed by this subsection (a-15) is binding on 
26any person, firm, corporation, or other entity that acquires an 
 
 
09800SB1739sam001- 472 -LRB098 10559 AMC 42403 a


1ownership interest in any such owners license. The obligation 
2imposed under this subsection (a-15) terminates on the earliest 
3of: (i) July 1, 2007, (ii) the first day after the effective 
4date of this amendatory Act of the 94th General Assembly that 
5riverboat gambling operations are conducted pursuant to a 
6dormant license, (iii) the first day that riverboat gambling 
7operations are conducted under the authority of an owners 
8license that is in addition to the 10 owners licenses initially 
9authorized under this Act, or (iv) the first day that a 
10licensee under the Illinois Horse Racing Act of 1975 conducts 
11gaming operations with slot machines or other electronic gaming 
12devices. The Board must reduce the obligation imposed under 
13this subsection (a-15) by an amount the Board deems reasonable 
14for any of the following reasons: (A) an act or acts of God, 
15(B) an act of bioterrorism or terrorism or a bioterrorism or 
16terrorism threat that was investigated by a law enforcement 
17agency, or (C) a condition beyond the control of the owners 
18licensee that does not result from any act or omission by the 
19owners licensee or any of its agents and that poses a hazardous 
20threat to the health and safety of patrons. If an owners 
21licensee pays an amount in excess of its liability under this 
22Section, the Board shall apply the overpayment to future 
23payments required under this Section.
24 For purposes of this subsection (a-15):
25 "Act of God" means an incident caused by the operation of 
26an extraordinary force that cannot be foreseen, that cannot be 
 
 
09800SB1739sam001- 473 -LRB098 10559 AMC 42403 a


1avoided by the exercise of due care, and for which no person 
2can be held liable.

3 "Base amount" means the following:
4  For a riverboat in Alton, $31,000,000.

5  For a riverboat in East Peoria, $43,000,000.

6  For the Empress riverboat in Joliet, $86,000,000.

7  For a riverboat in Metropolis, $45,000,000.

8  For the Harrah's riverboat in Joliet, $114,000,000.

9  For a riverboat in Aurora, $86,000,000.

10  For a riverboat in East St. Louis, $48,500,000.

11  For a riverboat in Elgin, $198,000,000.

12 "Dormant license" has the meaning ascribed to it in 
13subsection (a-3).

14 "Net privilege tax" means all privilege taxes paid by a 
15licensed owner to the Board under this Section, less all 
16payments made from the State Gaming Fund pursuant to subsection 
17(b) of this Section.
18 The changes made to this subsection (a-15) by Public Act 
1994-839 are intended to restate and clarify the intent of Public 
20Act 94-673 with respect to the amount of the payments required 
21to be made under this subsection by an owners licensee to the 
22Board.

23 (b) Until January 1, 1998, 25% of the tax revenue deposited 
24in the State
Gaming Fund under this Section shall be paid, 
25subject to appropriation by the
General Assembly, to the unit 
26of local government which is designated as the
home dock of the 
 
 
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1riverboat. Beginning January 1, 1998, from the tax revenue from 
2riverboat or casino gambling
deposited in the State Gaming Fund 
3under this Section, an amount equal to 5% of
adjusted gross 
4receipts generated by a riverboat or a casino other than a 
5riverboat designated in paragraph (3) or (4) of subsection 
6(e-5) of Section 7, shall be paid monthly, subject
to 
7appropriation by the General Assembly, to the unit of local 
8government in which the casino is located or that
is designated 
9as the home dock of the riverboat. From the tax revenue

10deposited in the State Gaming Fund pursuant to riverboat or 
11casino gambling operations
conducted by a licensed manager on 
12behalf of the State, an amount equal to 5%
of adjusted gross 
13receipts generated pursuant to those riverboat or casino 
14gambling
operations shall be paid monthly,
subject to 
15appropriation by the General Assembly, to the unit of local

16government that is designated as the home dock of the riverboat 
17upon which
those riverboat gambling operations are conducted or 
18in which the casino is located. From the tax revenue from 
19riverboat or casino gambling deposited in the State Gaming Fund 
20under this Section, an amount equal to 5% of the adjusted gross 
21receipts generated by a riverboat designated in paragraph (3) 
22of subsection (e-5) of Section 7 shall be divided equally and 
23remitted monthly, subject to appropriation, to Park City, 
24Waukegan, and North Chicago. From the tax revenue from 
25riverboat or casino gambling deposited in the State Gaming Fund 
26under this Section, an amount equal to 5% of the adjusted gross 
 
 
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1receipts generated by a riverboat designated in paragraph (4) 
2of subsection (e-5) of Section 7 shall be divided and remitted 
3monthly, subject to appropriation, according to a 
4revenue-sharing agreement between the City of Rockford and 
5Winnebago County, the terms of which shall be determined by the 
6City of Rockford and Winnebago County. The City of Rockford and 
7Winnebago County shall transmit a copy of the executed 
8revenue-sharing agreement to the Board no later than 90 days 
9after the effective date of this amendatory Act of the 98th 
10General Assembly. Units of local government may refund any 
11portion of the payment that they receive pursuant to this 
12subsection (b) to the riverboat or casino.

13 (b-5) Beginning on the effective date of this amendatory 
14Act of the 98th General Assembly, from the tax revenue

15deposited in the State Gaming Fund under this Section, an 
16amount equal to 3% of
adjusted gross receipts generated by each 
17electronic gaming facility located outside Madison County 
18shall be paid monthly, subject
to appropriation by the General 
19Assembly, to a municipality other than the Village of Stickney 
20in which each electronic gaming facility is located or, if the 
21electronic gaming facility is not located within a 
22municipality, to the county in which the electronic gaming 
23facility is located, except as otherwise provided in this 
24Section. From the tax revenue deposited in the State Gaming 
25Fund under this Section, an amount equal to 3% of adjusted 
26gross receipts generated by each electronic gaming facility 
 
 
09800SB1739sam001- 476 -LRB098 10559 AMC 42403 a


1that is located in an unincorporated area of Cook County and 
2has been awarded standardbred racing dates during 2011 by the 
3Illinois Racing Board shall be divided equally and distributed, 
4subject to appropriation, to the Village of Melrose Park, the 
5Village of Maywood, and Cook County. From the tax revenue 
6deposited in the State Gaming Fund under this Section, an 
7amount equal to 3% of adjusted gross receipts generated by an 
8electronic gaming facility located in the Village of Stickney 
9shall be paid monthly, subject to appropriation by the General 
10Assembly, as follows: 25% to the Village of Stickney, 5% to the 
11City of Berwyn, 50% to the Town of Cicero, and 20% to the 
12Stickney Public Health District.
13 From the tax revenue deposited in the State Gaming Fund 
14under this Section, an amount equal to 3% of adjusted gross 
15receipts generated by an electronic gaming facility located in 
16the City of Collinsville shall be paid monthly, subject to 
17appropriation by the General Assembly, as follows: 45% to the 
18City of Alton, 45% to the City of East St. Louis, and 10% to the 
19City of Collinsville. 
20 Beginning on the effective date of this amendatory Act of 
21the 98th General Assembly, from the tax revenue deposited in 
22the State Gaming Fund under this Section, an amount equal to 
23(i) 1% of adjusted gross receipts generated by an electronic 
24gaming facility located in Madison County shall be paid 
25monthly, subject to appropriation by the General Assembly, to 
26Madison County for the purposes of infrastructure 
 
 
09800SB1739sam001- 477 -LRB098 10559 AMC 42403 a


1improvements, and (ii) 1% of adjusted gross receipts generated 
2by an electronic gaming facility located in Madison County 
3shall be paid monthly, subject to appropriation by the General 
4Assembly, to St. Clair County for the purposes of 
5infrastructure improvements.
6 Municipalities and counties may refund any portion of the 
7payment that they receive pursuant to this subsection (b-5) to 
8the electronic gaming facility. 
9 (b-6) Beginning on the effective date of this amendatory 
10Act of the 98th General Assembly, from the tax revenue 
11deposited in the State Gaming Fund under this Section, an 
12amount equal to 2% of adjusted gross receipts generated by an 
13electronic gaming facility located outside Madison County 
14shall be paid monthly, subject to appropriation by the General 
15Assembly, to the county in which the electronic gaming facility 
16is located for the purposes of its criminal justice system or 
17health care system. 
18 Counties may refund any portion of the payment that they 
19receive pursuant to this subsection (b-6) to the electronic 
20gaming facility. 
21 (b-7) From January 1, 2015 until December 31, 2017, if the 
22total amount paid to the Education Assistance Fund annually 
23pursuant to this Act will result in the Education Assistance 
24Fund receiving less revenue from the State Gaming Fund than it 
25received in calendar year 2011, an amount equal to that 
26shortfall shall be transferred from the Capital Projects Fund 
 
 
09800SB1739sam001- 478 -LRB098 10559 AMC 42403 a


1to the Education Assistance Fund, except that no such transfer 
2shall exceed the amount deposited into the Capital Projects 
3Fund pursuant to subsection (c-4) of this Section. 
4 (c) Appropriations, as approved by the General Assembly, 
5may be made
from the State Gaming Fund to the Board (i) for the 
6administration and enforcement of this Act, the Chicago Casino 
7Development Authority Act, and the Video Gaming Act, (ii) for 
8distribution to the Department of State Police and to the 
9Department of Revenue for the enforcement of this Act, the 
10Chicago Casino Development Authority Act, and the Video Gaming 
11Act, and (iii) to the
Department of Human Services for the 
12administration of programs to treat
problem gambling. The 
13Board's annual appropriations request must separately state 
14its funding needs for the regulation of electronic gaming, 
15riverboat gaming, casino gaming within the City of Chicago, and 
16video gaming. From the tax revenue deposited in the Gaming 
17Facilities Fee Revenue Fund, the first $50,000,000 shall be 
18paid to the Board, subject to appropriation, for the 
19administration and enforcement of the provisions of this 
20amendatory Act of the 98th General Assembly.
21 (c-3) Appropriations, as approved by the General Assembly, 
22may be made from the tax revenue deposited into the State 
23Gaming Fund from electronic gaming pursuant to this Section for 
24the administration and enforcement of this Act. 

25 (c-4) After payments required under subsection (b-5), (c), 
26and (c-3) have been made from the tax revenue from electronic 
 
 
09800SB1739sam001- 479 -LRB098 10559 AMC 42403 a


1gaming deposited into the State Gaming Fund under this Section, 
2all remaining amounts from electronic gaming shall be deposited 
3into the Education Assistance Fund. 
4 (c-5) (Blank). Before May 26, 2006 (the effective date of 
5Public Act 94-804) and beginning on the effective date of this 
6amendatory Act of the 95th General Assembly, unless any 
7organization licensee under the Illinois Horse Racing Act of 
81975 begins to operate a slot machine or video game of chance 
9under the Illinois Horse Racing Act of 1975 or this Act, after 
10the payments required under subsections (b) and (c) have been

11made, an amount equal to 15% of the adjusted gross receipts of 
12(1) an owners
licensee that relocates pursuant to Section 11.2,

13(2) an owners licensee
conducting riverboat gambling 
14operations
pursuant to an
owners license that is initially 
15issued after June
25, 1999,
or (3) the first
riverboat gambling 
16operations conducted by a licensed manager on behalf of the

17State under Section 7.3,
whichever comes first, shall be paid 
18from the State
Gaming Fund into the Horse Racing Equity Fund.

19 (c-10) (Blank). Each year the General Assembly shall 
20appropriate from the General
Revenue Fund to the Education 
21Assistance Fund an amount equal to the amount
paid into the 
22Horse Racing Equity Fund pursuant to subsection (c-5) in the

23prior calendar year.

24 (c-15) (Blank). After the payments required under 
25subsections (b), (c), and (c-5)
have been made, an amount equal 
26to 2% of the adjusted gross receipts of (1)
an owners licensee 
 
 
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1that relocates pursuant to Section 11.2, (2) an owners
licensee 
2conducting riverboat gambling operations pursuant to
an
owners 
3license that is initially issued after June 25, 1999,
or (3) 
4the first
riverboat gambling operations conducted by a licensed 
5manager on behalf of the
State under Section 7.3,
whichever 
6comes first, shall be paid, subject to appropriation
from the 
7General Assembly, from the State Gaming Fund to each home rule

8county with a population of over 3,000,000 inhabitants for the 
9purpose of
enhancing the county's criminal justice system.

10 (c-20) Each year the General Assembly shall appropriate 
11from the General
Revenue Fund to the Education Assistance Fund 
12an amount equal to the amount
paid to each home rule county 
13with a population of over 3,000,000 inhabitants
pursuant to 
14subsection (c-15) in the prior calendar year.

15 (c-25) (Blank). After the payments required under 
16subsections (b), (c), (c-5) and
(c-15) have been made, an 
17amount equal to 2% of the
adjusted gross receipts of (1) an 
18owners licensee
that
relocates pursuant to Section 11.2, (2) an

19owners
licensee conducting riverboat gambling operations 
20pursuant to
an
owners license
that is initially issued after 
21June 25, 1999,
or (3) the first
riverboat gambling operations 
22conducted by a licensed manager on behalf of the
State under 
23Section 7.3,
whichever
comes first,
shall be paid from the 
24State
Gaming Fund to Chicago State University.

25 (d) From time to time, the
Board shall transfer the 
26remainder of the funds
generated by this Act into the Education

 
 
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1Assistance Fund, created by Public Act 86-0018, of the State of 
2Illinois.

3 (e) Nothing in this Act shall prohibit the unit of local 
4government
designated as the home dock of the riverboat from 
5entering into agreements
with other units of local government 
6in this State or in other states to
share its portion of the 
7tax revenue.

8 (f) To the extent practicable, the Board shall administer 
9and collect the
wagering taxes imposed by this Section in a 
10manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
115c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
12Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
13Penalty and Interest Act.

14(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08; 
1596-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)





16 (230 ILCS 10/14) (from Ch. 120, par. 2414)



17 Sec. 14. Licensees - Records - Reports - Supervision. 

18 (a) Licensed owners and electronic gaming licensees A 
19licensed owner shall keep his books and records so as to 
20clearly
show the following:

21 (1) The amount received daily from admission fees.

22 (2) The total amount of gross receipts.

23 (3) The total amount of the adjusted gross receipts.

24 (b) Licensed owners and electronic gaming licensees The 
25licensed owner shall furnish to the Board reports and 
 
 
09800SB1739sam001- 482 -LRB098 10559 AMC 42403 a


1information as
the Board may require with respect to its 
2activities on forms designed and
supplied for such purpose by 
3the Board.

4 (c) The books and records kept by a licensed owner as 
5provided by this Section are
public records and the 
6examination, publication, and dissemination of the
books and 
7records are governed by the provisions of The Freedom of 
8Information Act.

9(Source: P.A. 86-1029.)





10 (230 ILCS 10/15) (from Ch. 120, par. 2415)


11 Sec. 15. Audit of Licensee Operations. Annually, the 
12licensed owner, or manager, or electronic gaming licensee shall

13transmit to the Board an audit of the financial transactions

14and condition of the licensee's or manager's total operations. 
15Additionally, within 90 days after the end of each quarter of 
16each fiscal year, the licensed owner, or manager, or electronic 
17gaming licensee shall transmit to the Board a compliance report 
18on engagement procedures determined by the Board. All audits 
19and compliance engagements shall be
conducted by certified 
20public accountants selected by the Board. Each
certified public 
21accountant must be registered in the State of
Illinois under 
22the Illinois Public Accounting Act.
The compensation for each 
23certified public accountant shall be paid
directly by the 
24licensed owner, or manager, or electronic gaming licensee to 
25the certified public
accountant.

 
 
09800SB1739sam001- 483 -LRB098 10559 AMC 42403 a


1(Source: P.A. 96-1392, eff. 1-1-11.)





2 (230 ILCS 10/16) (from Ch. 120, par. 2416)



3 Sec. 16. Annual Report of Board. The Board shall make an

4annual report to the Governor, for the period ending December 
531 of each
year. Included in the report shall be an account of 
6the Board
actions, its financial position and results of 
7operation under this Act and the Chicago Casino Development 
8Authority Act,
the practical results attained under this Act 
9and the Chicago Casino Development Authority Act and any 
10recommendations for
legislation which the Board deems 
11advisable.

12(Source: P.A. 86-1029.)





13 (230 ILCS 10/17) (from Ch. 120, par. 2417)


14 Sec. 17. Administrative Procedures. The Illinois 
15Administrative Procedure
Act shall apply to all administrative 
16rules and procedures of the Board under
this Act, the Chicago 
17Casino Development Authority Act, and or the Video Gaming Act, 
18except that: (1) subsection (b) of Section 5-10 of the Illinois

19Administrative Procedure Act does not apply to final orders, 
20decisions and
opinions of the Board; (2) subsection (a) of 
21Section 5-10 of the Illinois
Administrative Procedure Act does 
22not apply to forms established by the Board
for use under this 
23Act, the Chicago Casino Development Authority Act, and or the 
24Video Gaming Act; (3) the provisions of Section 10-45 of the 
 
 
09800SB1739sam001- 484 -LRB098 10559 AMC 42403 a


1Illinois
Administrative Procedure Act regarding proposals for 
2decision are excluded
under this Act, the Chicago Casino 
3Development Authority Act, and or the Video Gaming Act; and (4) 
4the provisions of subsection (d) of Section
10-65 of the 
5Illinois Administrative Procedure Act do not apply so as to

6prevent summary suspension of any license pending revocation or 
7other action,
which suspension shall remain in effect unless 
8modified by the Board or unless
the Board's decision is 
9reversed on the merits upon judicial review.

10(Source: P.A. 96-34, eff. 7-13-09.)





11 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)



12 Sec. 17.1. Judicial Review. 

13 (a) Jurisdiction and venue for the judicial
review of a 
14final order of the Board relating to licensed owners, 
15suppliers, electronic gaming licensees, and or
special event 
16licenses is vested in the Appellate Court of
the judicial 
17district in which Sangamon County is located. A
petition for 
18judicial review of a final order of the Board must be filed in

19the Appellate Court, within 35 days from the date that a copy 
20of the decision
sought to be reviewed was served upon the party 
21affected by the decision.

22 (b) Judicial review of all other final orders of the Board 
23shall be
conducted in accordance with the Administrative Review 
24Law.

25(Source: P.A. 88-1.)





 
 
09800SB1739sam001- 485 -LRB098 10559 AMC 42403 a


1 (230 ILCS 10/18) (from Ch. 120, par. 2418)



2 Sec. 18. Prohibited Activities - Penalty. 

3 (a) A person is guilty of a Class A misdemeanor for doing 
4any of the
following:


5  (1) Conducting gambling where wagering
is used or to be 
6 used
without a license issued by the Board.


7  (2) Conducting gambling where wagering
is permitted 
8 other
than in the manner specified by Section 11.

9 (b) A person is guilty of a Class B misdemeanor for doing 
10any of the
following:


11  (1) permitting a person under 21 years to make a wager; 
12 or


13  (2) violating paragraph (12) of subsection (a) of 
14 Section 11 of this Act.

15 (c) A person wagering or accepting a wager at any location 
16outside the
riverboat, casino, or electronic gaming facility in 
17violation of paragraph is subject to the penalties in 
18paragraphs (1) or (2) of
subsection (a) of Section 28-1 of the 
19Criminal Code of 2012 is subject to the penalties provided in 
20that Section.

21 (d) A person commits a Class 4 felony and, in addition, 
22shall be barred
for life from gambling operations riverboats 
23under the jurisdiction of the
Board, if the person does any of 
24the following:


25  (1) Offers, promises, or gives anything of value or 
 
 
09800SB1739sam001- 486 -LRB098 10559 AMC 42403 a


1 benefit to a person
who is connected with a riverboat or 
2 casino owner or electronic gaming licensee, including, but

3 not limited to, an officer or employee of a licensed owner, 
4 electronic gaming licensee, or holder of an
occupational 
5 license pursuant to an agreement or arrangement or with the

6 intent that the promise or thing of value or benefit will 
7 influence the
actions of the person to whom the offer, 
8 promise, or gift was made in order
to affect or attempt to 
9 affect the outcome of a gambling game, or to
influence 
10 official action of a member of the Board.


11  (2) Solicits or knowingly accepts or receives a promise 
12 of anything of
value or benefit while the person is 
13 connected with a riverboat, casino, or electronic gaming 
14 facility,
including, but not limited to, an officer or 
15 employee of a licensed owner or electronic gaming licensee,

16 or the holder of an occupational license, pursuant to an 
17 understanding or
arrangement or with the intent that the 
18 promise or thing of value or
benefit will influence the 
19 actions of the person to affect or attempt to
affect the 
20 outcome of a gambling game, or to influence official action 
21 of a
member of the Board.


22  (3) Uses or possesses with the intent to use a device 
23 to assist:


24   (i) In projecting the outcome of the game.


25   (ii) In keeping track of the cards played.


26   (iii) In analyzing the probability of the 
 
 
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1 occurrence of an event
relating to the gambling game.


2   (iv) In analyzing the strategy for playing or 
3 betting to be used in the
game except as permitted by 
4 the Board.


5  (4) Cheats at a gambling game.


6  (5) Manufactures, sells, or distributes any cards, 
7 chips, dice, game or
device which is intended to be used to 
8 violate any provision of this Act or the Chicago Casino 
9 Development Authority Act.


10  (6) Alters or misrepresents the outcome of a gambling 
11 game on which
wagers have been made after the outcome is 
12 made sure but before it is
revealed to the players.


13  (7) Places a bet after acquiring knowledge, not 
14 available to all players,
of the outcome of the gambling 
15 game which is subject of the bet or to aid a
person in 
16 acquiring the knowledge for the purpose of placing a bet

17 contingent on that outcome.


18  (8) Claims, collects, or takes, or attempts to claim, 
19 collect, or take,
money or anything of value in or from the 
20 gambling games, with intent to
defraud, without having made 
21 a wager contingent on winning a gambling game,
or claims, 
22 collects, or takes an amount of money or thing of value of

23 greater value than the amount won.


24  (9) Uses counterfeit chips or tokens in a gambling 
25 game.


26  (10) Possesses any key or device designed for the 
 
 
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1 purpose of opening,
entering, or affecting the operation of 
2 a gambling game, drop box, or an
electronic or mechanical 
3 device connected with the gambling game or for
removing 
4 coins, tokens, chips or other contents of a gambling game. 
5 This
paragraph (10) does not apply to a gambling licensee 
6 or employee of a
gambling licensee acting in furtherance of 
7 the employee's employment.

8 (e) The possession of more than one of the devices 
9described in
subsection (d), paragraphs (3), (5), or (10) 
10permits a rebuttable
presumption that the possessor intended to 
11use the devices for cheating.

12 (f) A person under the age of 21 who, except as authorized 
13under paragraph (10) of Section 11, enters upon a riverboat or 
14in a casino or electronic gaming facility commits a petty 
15offense and is subject to a fine of not less than $100 or more 
16than $250 for a first offense and of not less than $200 or more 
17than $500 for a second or subsequent offense. 
18 An action to prosecute any crime occurring on a riverboat

19shall be tried in the county of the dock at which the riverboat 
20is based. An action to prosecute any crime occurring in a 
21casino or electronic gaming facility
shall be tried in the 
22county of in which the casino or electronic gaming facility is 
23located.

24(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)


25 (230 ILCS 10/18.1)
 
 
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1 Sec. 18.1. Distribution of certain fines. If a fine is 
2imposed on an owner licensee or an electronic gaming licensee 
3for knowingly sending marketing or promotional materials to any 
4person placed on the self-exclusion list, then the Board shall 
5distribute an amount equal to 15% of the fine imposed to the 
6unit of local government in which the casino, riverboat, or 
7electronic gaming facility is located for the purpose of 
8awarding grants to non-profit entities that assist gambling 
9addicts.

10(Source: P.A. 96-224, eff. 8-11-09.)

11 (230 ILCS 10/18.2 new)
12 Sec. 18.2. Prohibition on political contributions from 
13certain licensees and applicants. 
14 (a) The General Assembly has a compelling interest in 
15protecting the integrity of both the electoral process and the 
16legislative process by preventing corruption and the 
17appearance of corruption which may arise through permitting 
18certain political campaign contributions by certain persons 
19involved in the gaming industry and regulated by the State. 
20Unlike most other regulated industries, gaming is especially 
21susceptible to corruption and potential criminal influence.
22 In Illinois, only licensed gaming activities are legal and 
23all other gaming activities are strictly prohibited. Given 
24these circumstances, it is imperative to eliminate any 
25potential corrupt influence in
the gaming industry and the 
 
 
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1electoral process. Banning political campaign contributions by 
2certain persons subject to this Section to State officeholders 
3and candidates for such offices and to county and municipal 
4officeholders and candidates for such offices in counties and 
5municipalities that receive financial benefits from gaming 
6activities is necessary to prevent corruption and the 
7appearance of corruption that may arise when political campaign 
8contributions and gaming that is regulated by the State and 
9that confers benefits on counties and municipalities are 
10intermingled.
11 The General Assembly has prohibited political campaign 
12contributions to certain State and local officeholders and 
13candidates for such offices by certain persons with State of 
14Illinois and Metropolitan Pier and Exposition Authority 
15contracts and pending bids or proposals for contracts of over 
16$50,000 and certain individuals and entities affiliated with 
17such persons. Certain gaming licensees will receive receipts 
18far in excess of the base level of contract amounts subject to 
19such other campaign contribution prohibitions.
20 (b) As used in this Section:
21 "Affiliated entity" means (i) any corporate parent and each 
22operating subsidiary of the business entity applying for or 
23holding a license, (ii) each operating subsidiary of the 
24corporate parent of the business entity applying for or holding 
25a license, (iii) any organization recognized by the United 
26States
Internal Revenue Service as a tax-exempt organization 
 
 
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1described in Section 501(c) of the Internal
Revenue Code of 
21986 (or any successor provision of federal tax law) 
3established by one or more business entities seeking or holding 
4a license, any affiliated entity of such business entity, or 
5any affiliated person of such business entity, and (iv) any 
6political committee for which the business entity applying for 
7or holding a license, or any 501(c) organization described in 
8item (iii) related to that business entity, is the sponsoring 
9entity, as defined in Section 9-3 of the Election Code. For 
10purposes of item (iv), the funding of all business entities 
11applying for or holding a license shall be aggregated in 
12determining whether such political committee is an affiliated 
13entity.
14 "Affiliated person" means (i) any person with any ownership 
15interest or distributive share in excess of 7.5% of any 
16business entity applying for or holding a license, (ii) 
17executive employees of any such business entity, (iii) any 
18person designated as a key person under this Act, and
(iv) the 
19spouse of such persons.
20 "Contribution" means a contribution as defined in Section 
219-1.4 of the Election Code.
22 "Declared candidate" means a person who has filed a 
23statement of candidacy and petition for nomination or election 
24in the principal office of the State Board of Elections, or in 
25the office of the appropriate election authority for any county 
26or municipality in which a casino or electronic gaming device 
 
 
09800SB1739sam001- 492 -LRB098 10559 AMC 42403 a


1is located or proposed or which receives any gaming revenue.
2 "Executive employee" means any person who is (i) an officer 
3or director or who fulfills duties equivalent to those of an 
4officer or director of a business entity applying for or 
5holding a license and (ii) any employee of such business entity 
6who is required to register under the Lobbyist Registration 
7Act.
8 "License" means any owner, electronic gaming, or manager 
9license issued pursuant to this Act.
10 "Officeholder" means the Governor, Lieutenant Governor, 
11Attorney General, Secretary of State,
Comptroller, Treasurer, 
12member of the General Assembly, or any officeholder in any 
13county or municipality in which a riverboat, casino, or 
14electronic gaming device is located or proposed or which 
15receives any gaming revenue.
16 "Business entity" means any entity doing business for 
17profit, whether organized as a corporation, partnership, sole 
18proprietorship, limited liability company, or partnership or 
19otherwise.
20 (c) Any person or business entity applying for or holding a 
21license, any affiliated entities or persons of such business 
22entity, and any entities or persons soliciting a contribution 
23or causing a contribution to be made on behalf of such person 
24or business entity, are prohibited from making any contribution 
25to any officeholder or declared candidate or any political 
26committee affiliated with any officeholder or declared 
 
 
09800SB1739sam001- 493 -LRB098 10559 AMC 42403 a


1candidate, as defined in Section 9-1.8 of the Election Code. 
2This prohibition shall commence upon filing of an application 
3for a license and shall continue for a period of 2 years after 
4termination, suspension, or revocation of the license.
5 The Board shall have authority to suspend, revoke, or 
6restrict the license and to impose civil penalties of up to 
7$100,000 for each violation of this subsection (c). A notice of 
8each such violation and the penalty imposed shall be published 
9on the Board's website and in the Illinois Register. Payments 
10received by the State pursuant to this subsection (c) shall be 
11deposited into the General Revenue Fund.
12 Any officeholder or declared candidate or any political 
13committee affiliated with any officeholder or declared 
14candidate that has received a contribution in violation of this 
15subsection (c) shall pay an amount equal to the value of the 
16contribution to the State no more than 30 days after notice of 
17the violation concerning the contribution appears in the 
18Illinois Register. Payments received by the State pursuant to 
19this subsection (c) shall be deposited into the General Revenue 
20Fund.
21 (d) The Board shall post on its website a list of all 
22persons, business entities, and affiliated entities prohibited 
23from making contributions to any officeholder or declared 
24candidate political committee pursuant to subsection (c), 
25which list shall be updated and published on, at a minimum, a 
26semiannual basis.
 
 
09800SB1739sam001- 494 -LRB098 10559 AMC 42403 a


1 Any person, business entity, or affiliated entity 
2prohibited from making contributions to any officeholder or 
3declared candidate political committee pursuant to subsection 
4(c) shall notify the Board within 7 days after discovering any 
5necessary change or addition to the information relating to 
6that person, business entity, or affiliated entity contained in 
7the list.
8 An individual who acts in good faith and in reliance on any 
9information contained in the list shall not be subject to any 
10penalties or liability imposed for a violation of this Section.
11 (e) If any provision of this Section is held invalid or its 
12application to any person or circumstance is held invalid, the 
13invalidity of that provision or application does not affect the 
14other provisions or applications of this Section that can be 
15given effect without the invalid application or provision.




16 (230 ILCS 10/19) (from Ch. 120, par. 2419)



17 Sec. 19. Forfeiture of property. 
18 (a) Except as provided in
subsection (b), any riverboat, 
19casino, or electronic gaming facility
used for the conduct of 
20gambling games in violation of this Act shall be
considered a 
21gambling place in violation of Section 28-3 of the Criminal

22Code of 2012. Every gambling device found on
a riverboat, in a 
23casino, or at an electronic gaming facility operating gambling 
24games in violation of this
Act and every slot machine and video 
25game of chance found at an electronic gaming facility operating 
 
 
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1gambling games in violation of this Act or the Chicago Casino 
2Development Authority Act shall be subject to seizure, 
3confiscation and destruction as provided
in Section 28-5 of the 
4Criminal Code of 2012.

5 (b) It is not a violation of this Act for a riverboat or 
6other
watercraft which is licensed for gaming by a contiguous 
7state to dock on
the shores of this State if the municipality 
8having jurisdiction of the
shores, or the county in the case of 
9unincorporated areas, has granted
permission for docking and no 
10gaming is conducted on the riverboat or other
watercraft while 
11it is docked on the shores of this State.
No gambling device 
12shall be subject to seizure, confiscation or
destruction if the 
13gambling device is located on a riverboat or other
watercraft 
14which is licensed for gaming by a contiguous state and which is

15docked on the shores of this State if the municipality having 
16jurisdiction
of the shores, or the county in the case of 
17unincorporated areas, has
granted permission for docking and no

18gaming is conducted on the riverboat or other watercraft while 
19it is docked on
the shores of this State.

20(Source: P.A. 97-1150, eff. 1-25-13.)





21 (230 ILCS 10/20) (from Ch. 120, par. 2420)



22 Sec. 20. Prohibited activities - civil penalties. Any 
23person who
conducts a gambling operation without first 
24obtaining a
license to do so, or who continues to conduct such 
25games after revocation
of his license, or any licensee who 
 
 
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1conducts or allows to be
conducted any unauthorized gambling 
2games on a riverboat, in a casino, or at an electronic gaming 
3facility where it is
authorized to conduct its riverboat 
4gambling operation, in addition to
other penalties provided, 
5shall be subject to a civil penalty equal to the
amount of 
6gross receipts derived from wagering on the gambling games,

7whether unauthorized or authorized, conducted on that day as 
8well as
confiscation and forfeiture of all gambling game 
9equipment used in the
conduct of unauthorized gambling games.

10(Source: P.A. 86-1029.)





11 (230 ILCS 10/21) (from Ch. 120, par. 2421)



12 Sec. 21. Limitation on taxation of licensees. Licensees 
13shall not be
subjected to any excise tax, license tax,
permit 
14tax, privilege tax, occupation tax or excursion tax which is 
15imposed
exclusively upon the licensee by the State or any 
16political
subdivision thereof, except as provided in this Act 
17or the Chicago Casino Development Authority Act.

18(Source: P.A. 86-1029.)





19 (230 ILCS 10/23) (from Ch. 120, par. 2423)


20 Sec. 23. The State Gaming Fund. On or after the effective 
21date of
this Act, except as provided for payments into the 
22Horse Racing Equity Trust Fund under subsection (a) of Section 
237, all of the fees and taxes collected pursuant to
this Act or 
24the Chicago Casino Development Authority Act shall be deposited 
 
 
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1into the State Gaming Fund, a
special fund in the State 
2Treasury, which is hereby created. The adjusted
gross receipts 
3of any riverboat gambling operations conducted by a licensed

4manager on behalf of the State remaining after the payment of 
5the fees and
expenses of the licensed manager shall be 
6deposited into the State Gaming
Fund. Fines and
penalties 
7collected pursuant to this Act or the Chicago Casino 
8Development Authority Act shall be deposited into the
Education 
9Assistance Fund, created by Public Act 86-0018, of the State of

10Illinois.

11(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)


12 (230 ILCS 10/24)

13 Sec. 24. Applicability of this Illinois Riverboat Gambling 
14Act. The provisions of the this Illinois Riverboat Gambling 
15Act, and all rules promulgated thereunder, shall apply to the 
16the Chicago Casino Development Authority Act and the Video 
17Gaming Act, except where there is a conflict between the 2 
18Acts. In the event of a conflict between this Act and the 
19Chicago Casino Development Authority Act, the terms of the 
20Chicago Casino Development Authority Act shall prevail. In the 
21event of a conflict between this Act and the Video Gaming Act, 
22the terms of this Act shall prevail. 

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

24 Section 90-42. The Video Gaming
Act is amended by changing 
 
 
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1Sections 5, 25, 45, 79, and 80 and by adding Section 81 as 
2follows:



3 (230 ILCS 40/5)


4 Sec. 5. Definitions.  As used in this Act:

5 "Board" means the Illinois Gaming Board.

6 "Credit" means one, 5, 10, or 25 cents either won or 
7purchased by a player.

8 "Distributor" means an individual, partnership, 
9corporation, or limited liability company licensed under
this 
10Act to buy, sell, lease, or distribute video gaming terminals 
11or major
components or parts of video gaming terminals to or 
12from terminal
operators.

13 "Terminal operator" means an individual, partnership, 
14corporation, or limited liability company that is
licensed 
15under this Act and that owns, services, and maintains video

16gaming terminals for placement in licensed establishments, 
17licensed truck stop establishments, licensed fraternal

18establishments, or licensed veterans establishments.

19 "Licensed technician" means an individual
who
is licensed 
20under this Act to repair,
service, and maintain
video gaming 
21terminals.

22 "Licensed terminal handler" means a person, including but 
23not limited to an employee or independent contractor working 
24for a manufacturer, distributor, supplier, technician, or 
25terminal operator, who is licensed under this Act to possess or 
 
 
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1control a video gaming terminal or to have access to the inner 
2workings of a video gaming terminal. A licensed terminal 
3handler does not include an individual, partnership, 
4corporation, or limited liability company defined as a 
5manufacturer, distributor, supplier, technician, or terminal 
6operator under this Act. 
7 "Manufacturer" means an individual, partnership, 
8corporation, or limited liability company that is
licensed 
9under this Act and that manufactures or assembles video gaming

10terminals.

11 "Supplier" means an individual, partnership, corporation, 
12or limited liability company that is
licensed under this Act to 
13supply major components or parts to video gaming
terminals to 
14licensed
terminal operators.

15 "Net terminal income" means money put into a video gaming 
16terminal minus
credits paid out to players.

17 "Video gaming terminal" means any electronic video game 
18machine
that, upon insertion of cash, is available to play or 
19simulate the play of
a video game, including but not limited to 
20video poker, line up, and blackjack, as
authorized by the Board 
21utilizing a video display and microprocessors in
which the 
22player may receive free games or credits that can be
redeemed 
23for cash. The term does not include a machine that directly

24dispenses coins, cash, or tokens or is for amusement purposes 
25only.

26 "Licensed establishment" means any licensed retail 
 
 
09800SB1739sam001- 500 -LRB098 10559 AMC 42403 a


1establishment where
alcoholic liquor is drawn, poured, mixed, 
2or otherwise served for consumption
on the premises and 
3includes any such establishment that has a contractual 
4relationship with an inter-track wagering location licensee 
5licensed under the Illinois Horse Racing Act of 1975, provided 
6any contractual relationship shall not include any transfer or 
7offer of revenue from the operation of video gaming under this 
8Act to any licensee licensed under the Illinois Horse Racing 
9Act of 1975. Provided, however, that the licensed establishment 
10that has such a contractual relationship with an inter-track 
11wagering location licensee may not, itself, be (i) an 
12inter-track wagering location licensee, (ii) the corporate 
13parent or subsidiary of any licensee licensed under the 
14Illinois Horse Racing Act of 1975, or (iii) the corporate 
15subsidiary of a corporation that is also the corporate parent 
16or subsidiary of any licensee licensed under the Illinois Horse 
17Racing Act of 1975. "Licensed establishment" does not include a 
18facility operated by an organization licensee, an inter-track 
19wagering licensee, or an inter-track wagering location 
20licensee licensed under the Illinois Horse Racing Act of 1975 
21or a riverboat licensed under the Illinois Riverboat Gambling 
22Act, except as provided in this paragraph.

23 "Licensed fraternal establishment" means the location 
24where a qualified
fraternal organization that derives its 
25charter from a national fraternal
organization regularly 
26meets.

 
 
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1 "Licensed veterans establishment" means the location where 
2a qualified
veterans organization that derives its charter from 
3a national veterans
organization regularly meets.

4 "Licensed truck stop establishment" means a facility (i) 
5that is at least a
3-acre facility with a convenience store, 
6(ii) with separate diesel
islands for fueling commercial motor 
7vehicles, (iii) that sells at retail more than 10,000 gallons 
8of diesel or biodiesel fuel per month, and (iv) with parking 
9spaces for commercial
motor vehicles. "Commercial motor 
10vehicles" has the same meaning as defined in Section 18b-101 of 
11the Illinois Vehicle Code. The requirement of item (iii) of 
12this paragraph may be met by showing that estimated future 
13sales or past sales average at least 10,000 gallons per month. 

14(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 
1596-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff. 
168-12-11.)




17 (230 ILCS 40/25)


18 Sec. 25. Restriction of licensees.

19 (a) Manufacturer. A person may not be licensed as a 
20manufacturer of a
video gaming terminal in Illinois unless the 
21person has a valid
manufacturer's license issued
under this 
22Act. A manufacturer may only sell video gaming terminals for 
23use
in Illinois to
persons having a valid distributor's 
24license.

25 (b) Distributor. A person may not sell, distribute, or 
 
 
09800SB1739sam001- 502 -LRB098 10559 AMC 42403 a


1lease
or market a video gaming terminal in Illinois unless the 
2person has a valid
distributor's
license issued under this Act. 
3A distributor may only sell video gaming
terminals for use in

4Illinois to persons having a valid distributor's or terminal 
5operator's
license.

6 (c) Terminal operator. A person may not own, maintain, or 
7place a video gaming terminal unless he has a valid terminal 
8operator's
license issued
under this Act. A terminal operator 
9may only place video gaming terminals for
use in
Illinois in 
10licensed establishments, licensed truck stop establishments, 
11licensed fraternal establishments,
and
licensed veterans 
12establishments.
No terminal operator may give anything of 
13value, including but not limited to
a loan or financing 
14arrangement, to a licensed establishment, licensed truck stop 
15establishment,
licensed fraternal establishment, or licensed 
16veterans establishment as
any incentive or inducement to locate 
17video terminals in that establishment.
Of the after-tax profits

18from a video gaming terminal, 50% shall be paid to the terminal

19operator and 50% shall be paid to the licensed establishment, 
20licensed truck stop establishment,
licensed fraternal 
21establishment, or
licensed veterans establishment, 
22notwithstanding any agreement to the contrary.
A video terminal 
23operator that violates one or more requirements of this 
24subsection is guilty of a Class 4 felony and is subject to 
25termination of his or her license by the Board. 

26 (d) Licensed technician. A person may not service, 
 
 
09800SB1739sam001- 503 -LRB098 10559 AMC 42403 a


1maintain, or repair a
video gaming terminal
in this State 
2unless he or she (1) has a valid technician's license issued

3under this Act, (2) is a terminal operator, or (3) is employed 
4by a terminal
operator, distributor, or manufacturer.

5 (d-5) Licensed terminal handler. No person, including, but 
6not limited to, an employee or independent contractor working 
7for a manufacturer, distributor, supplier, technician, or 
8terminal operator licensed pursuant to this Act, shall have 
9possession or control of a video gaming terminal, or access to 
10the inner workings of a video gaming terminal, unless that 
11person possesses a valid terminal handler's license issued 
12under this Act. 
13 (e) Licensed establishment. No video gaming terminal may be 
14placed in any licensed establishment, licensed veterans 
15establishment, licensed truck stop establishment,
or licensed 
16fraternal establishment
unless the owner
or agent of the owner 
17of the licensed establishment, licensed veterans 
18establishment, licensed truck stop establishment, or licensed

19fraternal establishment has entered into a
written use 
20agreement with the terminal operator for placement of the

21terminals. A copy of the use agreement shall be on file in the 
22terminal
operator's place of business and available for 
23inspection by individuals
authorized by the Board. A licensed 
24establishment, licensed truck stop establishment, licensed 
25veterans establishment,
or
licensed
fraternal
establishment 
26may operate up to 5 video gaming terminals on its premises at 
 
 
09800SB1739sam001- 504 -LRB098 10559 AMC 42403 a


1any
time.

2 (f) (Blank).

3 (g) Financial interest restrictions.
As used in this Act, 
4"substantial interest" in a partnership, a corporation, an

5organization, an association, a business, or a limited 
6liability company means:


7  (A) When, with respect to a sole proprietorship, an 
8 individual or
his or her spouse owns, operates, manages, or 
9 conducts, directly
or indirectly, the organization, 
10 association, or business, or any part thereof;
or


11  (B) When, with respect to a partnership, the individual 
12 or his or
her spouse shares in any of the profits, or 
13 potential profits,
of the partnership activities; or


14  (C) When, with respect to a corporation, an individual 
15 or his or her
spouse is an officer or director, or the 
16 individual or his or her spouse is a holder, directly or 
17 beneficially, of 5% or more of any class
of stock of the 
18 corporation; or


19  (D) When, with respect to an organization not covered 
20 in (A), (B) or
(C) above, an individual or his or her 
21 spouse is an officer or manages the
business affairs, or 
22 the individual or his or her spouse is the
owner of or 
23 otherwise controls 10% or more of the assets of the 
24 organization;
or


25  (E) When an individual or his or her spouse furnishes

26 5% or more of the capital, whether in cash, goods, or 
 
 
09800SB1739sam001- 505 -LRB098 10559 AMC 42403 a


1 services, for the
operation of any business, association, 
2 or organization during any calendar
year; or
3  (F) When, with respect to a limited liability company, 
4 an individual or his or her
spouse is a member, or the 
5 individual or his or her spouse is a holder, directly or 
6 beneficially, of 5% or more of the membership interest of 
7 the limited liability company. 

8 For purposes of this subsection (g), "individual" includes 
9all individuals or their spouses whose combined interest would 
10qualify as a substantial interest under this subsection (g) and 
11whose activities with respect to an organization, association, 
12or business are so closely aligned or coordinated as to 
13constitute the activities of a single entity. 
14 (h) Location restriction. A licensed establishment, 
15licensed truck stop establishment, licensed
fraternal

16establishment, or licensed veterans establishment that is (i) 
17located within 1,000
feet of a facility operated by an 
18organization licensee or an inter-track wagering licensee 
19licensed under the Illinois Horse Racing Act of 1975 or the 
20home dock of a riverboat licensed under the Illinois Riverboat

21Gambling Act or (ii) located within 100 feet of a school or a 
22place of worship under the Religious Corporation Act, is 
23ineligible to operate a video gaming terminal. The location 
24restrictions in this subsection (h) do not apply if a facility 
25operated by an organization licensee, an inter-track wagering 
26licensee, or an inter-track wagering location licensee, a 
 
 
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1school, or a place of worship moves to or is established within 
2the restricted area after a licensed establishment, licensed 
3truck stop establishment, licensed fraternal establishment, or 
4licensed veterans establishment becomes licensed under this 
5Act. For the purpose of this subsection, "school" means an 
6elementary or secondary public school, or an elementary or 
7secondary private school registered with or recognized by the 
8State Board of Education.
9 Notwithstanding the provisions of this subsection (h), the 
10Board may waive the requirement that a licensed establishment, 
11licensed truck stop establishment, licensed fraternal 
12establishment, or licensed veterans establishment not be 
13located within 1,000 feet from a facility operated by an 
14organization licensee, an inter-track wagering licensee, or an 
15inter-track wagering location licensee licensed under the 
16Illinois Horse Racing Act of 1975 or the home dock of a 
17riverboat licensed under the Illinois Riverboat Gambling Act. 
18The Board shall not grant such waiver if there is any common 
19ownership or control, shared business activity, or contractual 
20arrangement of any type between the establishment and the 
21organization licensee, inter-track wagering licensee, 
22inter-track wagering location licensee, or owners licensee of a 
23riverboat. The Board shall adopt rules to implement the 
24provisions of this paragraph.
25 (i) Undue economic concentration. In addition to 
26considering all other requirements under this Act, in deciding 
 
 
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1whether to approve the operation of video gaming terminals by a 
2terminal operator in a location, the Board shall consider the 
3impact of any economic concentration of such operation of video 
4gaming terminals. The Board shall not allow a terminal operator 
5to operate video gaming terminals if the Board determines such 
6operation will result in undue economic concentration. For 
7purposes of this Section, "undue economic concentration" means 
8that a terminal operator would have such actual or potential 
9influence over video gaming terminals in Illinois as to:
10  (1) substantially impede or suppress competition among 
11 terminal operators;
12  (2) adversely impact the economic stability of the 
13 video gaming industry in Illinois; or
14  (3) negatively impact the purposes of the Video Gaming 
15 Act.
16 The Board shall adopt rules concerning undue economic 
17concentration with respect to the operation of video gaming 
18terminals in Illinois. The rules shall include, but not be 
19limited to, (i) limitations on the number of video gaming 
20terminals operated by any terminal operator within a defined 
21geographic radius and (ii) guidelines on the discontinuation of 
22operation of any such video gaming terminals the Board 
23determines will cause undue economic concentration. 

24 (j) The provisions of the Illinois Antitrust Act are fully 
25and equally applicable to the activities of any licensee under 
26this Act. 

 
 
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1(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, 
2eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; 
396-1479, eff. 8-23-10; 97-333, eff. 8-12-11.)




4 (230 ILCS 40/45)



5 Sec. 45. Issuance of license.

6 (a) The burden is upon each applicant to
demonstrate his 
7suitability for licensure. Each video gaming terminal

8manufacturer, distributor, supplier, operator, handler, 
9licensed establishment, licensed truck stop establishment, 
10licensed
fraternal
establishment, and licensed veterans 
11establishment shall be
licensed by the Board.
The Board may 
12issue or deny a license under this Act to any person pursuant 
13to the same criteria set forth in Section 9 of the Illinois 
14Riverboat Gambling Act. 

15 (a-5) The Board shall not grant a license to a person who 
16has facilitated, enabled, or participated in the use of 
17coin-operated devices for gambling purposes or who is under the 
18significant influence or control of such a person. For the 
19purposes of this Act, "facilitated, enabled, or participated in 
20the use of coin-operated amusement devices for gambling 
21purposes" means that the person has been convicted of any 
22violation of Article 28 of the Criminal Code of 1961 or the 
23Criminal Code of 2012. If there is pending legal action against 
24a person for any such violation, then the Board shall delay the 
25licensure of that person until the legal action is resolved. 
 
 
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1 (b) Each person seeking and possessing a license as a video 
2gaming terminal manufacturer, distributor, supplier, operator, 
3handler, licensed establishment, licensed truck stop 
4establishment, licensed fraternal establishment, or licensed 
5veterans establishment shall submit to a background 
6investigation conducted by the Board with the assistance of the 
7State Police or other law enforcement. The background 
8investigation shall include each beneficiary of a trust, each 
9partner of a partnership, and each director and officer and all 
10stockholders of 5% or more in a parent or subsidiary 
11corporation of a video gaming terminal manufacturer, 
12distributor, supplier, operator, or licensed establishment, 
13licensed truck stop establishment, licensed fraternal 
14establishment, or licensed veterans establishment.
15 (c) Each person seeking and possessing a license as a video 
16gaming terminal manufacturer, distributor, supplier, operator, 
17handler, licensed establishment, licensed truck stop 
18establishment, licensed fraternal establishment, or licensed 
19veterans establishment shall disclose the identity of every 
20person, association, trust, corporation, or limited liability 
21company having a greater than 1% direct or indirect pecuniary 
22interest in the video gaming terminal operation for which the 
23license is sought. If the disclosed entity is a trust, the 
24application shall disclose the names and addresses of the 
25beneficiaries; if a corporation, the names and addresses of all 
26stockholders and directors; if a limited liability company, the 
 
 
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1names and addresses of all members; or if a partnership, the 
2names and addresses of all partners, both general and limited.
3 (d) No person may be licensed as a video gaming terminal 
4manufacturer, distributor, supplier, operator, handler, 
5licensed establishment, licensed truck stop establishment, 
6licensed fraternal establishment, or licensed veterans 
7establishment if that person has been found by the Board to:
8  (1) have a background, including a criminal record, 
9 reputation, habits, social or business associations, or 
10 prior activities that pose a threat to the public interests 
11 of the State or to the security and integrity of video 
12 gaming;
13  (2) create or enhance the dangers of unsuitable, 
14 unfair, or illegal practices, methods, and activities in 
15 the conduct of video gaming; or
16  (3) present questionable business practices and 
17 financial arrangements incidental to the conduct of video 
18 gaming activities. 
19 (e) Any applicant for any license under this Act has the 
20burden of proving his or her qualifications to the satisfaction 
21of the Board. The Board may adopt rules to establish additional 
22qualifications and requirements to preserve the integrity and 
23security of video gaming in this State. 
24 (f) A non-refundable application fee shall be paid at the 
25time an
application for a license is filed with the Board in 
26the following amounts:

 
 
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1  (1) Manufacturer..........................$5,000

2  (2) Distributor...........................$5,000

3  (3) Terminal operator.....................$5,000

4  (4) Supplier..............................$2,500

5  (5) Technician..............................$100

6  (6) Terminal Handler..............................$50
7 (g) The Board shall establish an
annual fee for each 
8license not to exceed the following:
9  (1) Manufacturer.........................$10,000

10  (2) Distributor..........................$10,000

11  (3) Terminal operator.....................$5,000

12  (4) Supplier..............................$2,000

13  (5) Technician..............................$100

14  (6) Licensed establishment, licensed truck stop

15 establishment, licensed fraternal establishment,

16 or licensed veterans establishment..............$100

17  (7) Video gaming terminal...................$100

18  (8) Terminal Handler..............................$50

19(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, 
20eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10; 
2197-1150, eff. 1-25-13.)


22 (230 ILCS 40/79)
23 Sec. 79. Investigators. Investigators appointed by the 
24Board pursuant to the powers conferred upon the Board by 
25paragraph (20.6) of subsection (c) of Section 5 of the Illinois 
 
 
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1Riverboat Gambling Act and Section 80 of this Act shall have 
2authority to conduct investigations, searches, seizures, 
3arrests, and other duties imposed under this Act and the 
4Illinois Riverboat Gambling Act, as deemed necessary by the 
5Board. These investigators have and may exercise all of the 
6rights and powers of peace officers, provided that these powers 
7shall be (1) limited to offenses or violations occurring or 
8committed in connection with conduct subject to this Act, 
9including, but not limited to, the manufacture, distribution, 
10supply, operation, placement, service, maintenance, or play of 
11video gaming terminals and the distribution of profits and 
12collection of revenues resulting from such play, and (2) 
13exercised, to the fullest extent practicable, in cooperation 
14with the local police department of the applicable municipality 
15or, if these powers are exercised outside the boundaries of an 
16incorporated municipality or within a municipality that does 
17not have its own police department, in cooperation with the 
18police department whose jurisdiction encompasses the 
19applicable locality.

20(Source: P.A. 97-809, eff. 7-13-12.)



21 (230 ILCS 40/80)


22 Sec. 80. Applicability of Illinois Riverboat Gambling Act. 
23The provisions of the Illinois Riverboat Gambling Act, and all 
24rules promulgated thereunder, shall apply to the Video Gaming 
25Act, except where there is a conflict between the 2 Acts. In 
 
 
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1the event of a conflict between the 2 Acts, the provisions of 
2the Illinois Gambling Act shall prevail. All provisions of the 
3Uniform Penalty and Interest Act shall apply, as far as 
4practicable, to the subject matter of this Act to the same 
5extent as if such provisions were included herein.

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


7 (230 ILCS 40/81 new)
8 Sec. 81. Prohibition of political contributions from 
9certain licensees and applicants. 
10 (a) The General Assembly has a compelling interest in 
11protecting the integrity of both the electoral process and the 
12legislative process by preventing corruption and the 
13appearance of corruption which may arise through permitting 
14certain political campaign contributions by certain persons 
15involved in the gaming industry and regulated by the State. 
16Unlike most other regulated industries, gaming is especially 
17susceptible to corruption and potential criminal influence.
18 In Illinois, only licensed gaming activities are legal and 
19all other gaming activities are strictly prohibited. Given 
20these circumstances, it is imperative to eliminate any 
21potential corrupt influence in the gaming industry and the 
22electoral process. Banning political campaign contributions by 
23certain persons subject to this Section to State officeholders 
24and candidates for such offices and to county and municipal 
25officeholders and candidates for such offices in counties and 
 
 
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1municipalities that receive financial benefits from gaming 
2activities is necessary to prevent corruption and the 
3appearance of corruption that may arise when political campaign 
4contributions and gaming that is regulated by the State and 
5that confers benefits on counties and municipalities are 
6intermingled.
7 (b) As used in this Section:
8 "Affiliated entity" means (i) any corporate parent and each 
9operating subsidiary of the business entity applying for or 
10holding a license, (ii) each operating subsidiary of the 
11corporate parent of the business entity applying for or holding 
12a license, (iii) any organization recognized by the United 
13States
Internal Revenue Service as a tax-exempt organization 
14described in Section 501(c) of the Internal
Revenue Code of 
151986 (or any successor provision of federal tax law) 
16established by one or more business entities seeking or holding 
17a license, any affiliated entity of such business entity, or 
18any affiliated person of such business entity, and (iv) any 
19political committee for which the business entity applying for 
20or holding a license, or any 501(c) organization described in 
21item (iii) related to that business entity, is the sponsoring 
22entity, as defined in Section 9-3 of the Election Code. For 
23purposes of item (iv), the funding of all business entities 
24applying for or holding a license shall be aggregated in 
25determining whether such political committee is an affiliated 
26entity.
 
 
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1 "Affiliated person" means (i) any person with any ownership 
2interest or distributive share in excess of 7.5% of any 
3business entity applying for or holding a license, (ii) 
4executive employees of any such business entity, (iii) any 
5person designated as a person of significant influence and 
6control under the Video Gaming Act, and (iv) the spouse of such 
7persons.
8 "Business entity" means any entity doing business for 
9profit, whether organized as a corporation, partnership, sole 
10proprietorship, limited liability company, or partnership or 
11otherwise.
12 "Contribution" means a contribution as defined in Section 
139-1.4 of the Election Code.
14 "Declared candidate" means a person who has filed a 
15statement of candidacy and petition for nomination or election 
16in the principal office of the State Board of Elections, or in 
17the office of the appropriate election authority for any county 
18or municipality in which a video gaming terminal is located or 
19proposed or which receives any video gaming revenue.
20 "Executive employee" means any person who is an officer or 
21director or who fulfills duties equivalent to those of an 
22officer or director of a business entity applying for or 
23holding a license; and (ii) any employee of such business 
24entity who is required to register under the Lobbyist 
25Registration Act.
26 "License" means any terminal operator license issued 
 
 
09800SB1739sam001- 516 -LRB098 10559 AMC 42403 a


1pursuant to this Act.
2 "Officeholder" means the Governor, Lieutenant Governor, 
3Attorney General, Secretary of State, Comptroller, Treasurer, 
4member of the General Assembly, or any officeholder in any 
5county or municipality in which a video gaming terminal is 
6located or proposed or which receives any video gaming revenue.
7 (c) Any person or business entity applying for or holding a 
8license, any affiliated entities or persons of such business 
9entity, and any entities or persons soliciting a contribution 
10or causing a contribution to be made on behalf of such person 
11or business entity, are prohibited from making any contribution 
12to any officeholder or declared candidate or any political 
13committee affiliated with any officeholder or declared 
14candidate, as defined in Section 9-1.8 of the Election Code. 
15This prohibition shall commence upon filing of an application 
16for a license and shall continue for a period of 2 years after 
17termination, suspension or revocation of the license.
18 The Board shall have authority to suspend, revoke, or 
19restrict the license and to impose civil penalties of up to 
20$100,000, for each violation of this subsection (c). A notice 
21of each such violation and the penalty imposed shall be 
22published on the Board's website and in the Illinois Register. 
23Payments received by the State pursuant to this subsection 
24shall be deposited into the General Revenue Fund.
25 Any officeholder or declared candidate or any political 
26committee affiliated with any officeholder or declared 
 
 
09800SB1739sam001- 517 -LRB098 10559 AMC 42403 a


1candidate that has received a contribution in violation of this 
2subsection (c) shall pay an amount equal to the value of the 
3contribution to the State no more than 30 days after notice of 
4the violation concerning the contribution appears in the 
5Illinois Register. Payments received by the State pursuant to 
6this subsection shall be deposited into the General Revenue 
7Fund.
8 (d) The Board shall post on its website a list of all 
9persons, business entities, and affiliated entities prohibited 
10from making contributions to any officeholder or declared 
11candidate political committee pursuant to subsection (c), 
12which list shall be updated and published on, at a minimum, a 
13semiannual basis.
14 Any person, business entity, or affiliated entity 
15prohibited from making contributions to any officeholder or 
16declared candidate political committee pursuant to subsection 
17(c) of this Section shall notify the Board within 7 days after 
18discovering any necessary change or addition to the information 
19relating to that person, business entity, or affiliated entity 
20contained in the list.
21 An individual who acts in good faith and in reliance on any 
22information contained in the list shall not be subject to any 
23penalties or liability imposed for a violation of this Section.
24 (e) If any provision of this Section is held invalid or its 
25application to any person or circumstance is held invalid, the 
26invalidity of that provision or application does not affect the 
 
 
09800SB1739sam001- 518 -LRB098 10559 AMC 42403 a


1other provisions or applications of this Section that can be 
2given effect without the invalid application or provision.

3 Section 90-45. The Liquor Control Act of 1934 is amended by 
4changing Sections 5-1 and 6-30 as follows:

5 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
6 Sec. 5-1. Licenses issued by the Illinois Liquor Control 
7Commission
shall be of the following classes:
8 (a) Manufacturer's license - Class 1.
Distiller, Class 2. 
9Rectifier, Class 3. Brewer, Class 4. First Class Wine

10Manufacturer, Class 5. Second Class Wine Manufacturer,
Class 6. 
11First Class Winemaker, Class 7. Second Class Winemaker, Class 
128.
Limited Wine Manufacturer, Class 9. Craft Distiller, Class 
1310. Craft Brewer, 
14 (b) Distributor's license,
15 (c) Importing Distributor's license,
16 (d) Retailer's license,
17 (e) Special Event Retailer's license (not-for-profit),
18 (f) Railroad license,
19 (g) Boat license,
20 (h) Non-Beverage User's license,
21 (i) Wine-maker's premises license,
22 (j) Airplane license,
23 (k) Foreign importer's license,
24 (l) Broker's license,
 
 
09800SB1739sam001- 519 -LRB098 10559 AMC 42403 a


1 (m) Non-resident dealer's
license,
2 (n) Brew Pub license,
3 (o) Auction liquor license,
4 (p) Caterer retailer license,
5 (q) Special use permit license,
6 (r) Winery shipper's license.

7 No
person, firm, partnership, corporation, or other legal 
8business entity that is
engaged in the manufacturing of wine 
9may concurrently obtain and hold a
wine-maker's license and a 
10wine manufacturer's license.
11 (a) A manufacturer's license shall allow the manufacture,

12importation in bulk, storage, distribution and sale of 
13alcoholic liquor
to persons without the State, as may be 
14permitted by law and to licensees
in this State as follows:
15 Class 1. A Distiller may make sales and deliveries of 
16alcoholic liquor to
distillers, rectifiers, importing 
17distributors, distributors and
non-beverage users and to no 
18other licensees.
19 Class 2. A Rectifier, who is not a distiller, as defined 
20herein, may make
sales and deliveries of alcoholic liquor to 
21rectifiers, importing distributors,
distributors, retailers 
22and non-beverage users and to no other licensees.
23 Class 3. A Brewer may make sales and deliveries of beer to 
24importing
distributors and distributors and may make sales as 
25authorized under subsection (e) of Section 6-4 of this Act.
26 Class 4. A first class wine-manufacturer may make sales and 
 
 
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1deliveries of
up to 50,000 gallons of wine to manufacturers,

2importing
distributors and distributors, and to no other 
3licensees.
4 Class 5. A second class Wine manufacturer may make sales 
5and deliveries
of more than 50,000 gallons of wine to 
6manufacturers, importing distributors
and distributors and to 
7no other licensees.
8 Class 6. A first-class wine-maker's license shall allow the 
9manufacture
of up to 50,000 gallons of wine per year, and the

10storage
and sale of such
wine to distributors in the State and 
11to persons without the
State, as may be permitted by law. A 
12person who, prior to the effective date of this amendatory Act 
13of the 95th General Assembly, is a holder of a first-class 
14wine-maker's license and annually produces more than 25,000 
15gallons of its own wine and who distributes its wine to 
16licensed retailers shall cease this practice on or before July 
171, 2008 in compliance with this amendatory Act of the 95th 
18General Assembly.
19 Class 7. A second-class wine-maker's license shall allow 
20the manufacture
of between 50,000 and 150,000 gallons of wine 
21per year, and
the
storage and sale of such wine
to distributors 
22in this State and to persons without the State, as may be

23permitted by law. A person who, prior to the effective date of 
24this amendatory Act of the 95th General Assembly, is a holder 
25of a second-class wine-maker's license and annually produces 
26more than 25,000 gallons of its own wine and who distributes 
 
 
09800SB1739sam001- 521 -LRB098 10559 AMC 42403 a


1its wine to licensed retailers shall cease this practice on or 
2before July 1, 2008 in compliance with this amendatory Act of 
3the 95th General Assembly.
4 Class 8. A limited wine-manufacturer may make sales and 
5deliveries not to
exceed 40,000 gallons of wine per year to 
6distributors, and to
non-licensees in accordance with the 
7provisions of this Act.
8 Class 9. A craft distiller license shall allow the 
9manufacture of up to 15,000 gallons of spirits by distillation 
10per year and the storage of such spirits. If a craft distiller 
11licensee is not affiliated with any other manufacturer, then 
12the craft distiller licensee may sell such spirits to 
13distributors in this State and non-licensees to the extent 
14permitted by any exemption approved by the Commission pursuant 
15to Section 6-4 of this Act.
16 Any craft distiller licensed under this Act who on the 
17effective date of this amendatory Act of the 96th General 
18Assembly was licensed as a distiller and manufactured no more 
19spirits than permitted by this Section shall not be required to 
20pay the initial licensing fee. 
21 Class 10. A craft brewer's license, which may only be 
22issued to a licensed brewer or licensed non-resident dealer, 
23shall allow the manufacture of up to 465,000 gallons of beer 
24per year. A craft brewer licensee may make sales and deliveries 
25to importing distributors and distributors and to retail 
26licensees in accordance with the conditions set forth in 
 
 
09800SB1739sam001- 522 -LRB098 10559 AMC 42403 a


1paragraph (18) of subsection (a) of Section 3-12 of this Act. 
2 (a-1) A manufacturer which is licensed in this State to 
3make sales or
deliveries of alcoholic liquor and which enlists 
4agents, representatives, or
individuals acting on its behalf 
5who contact licensed retailers on a regular
and continual basis 
6in this State must register those agents, representatives,
or 
7persons acting on its behalf with the State Commission.
8 Registration of agents, representatives, or persons acting 
9on behalf of a
manufacturer is fulfilled by submitting a form 
10to the Commission. The form
shall be developed by the 
11Commission and shall include the name and address of
the 
12applicant, the name and address of the manufacturer he or she 
13represents,
the territory or areas assigned to sell to or 
14discuss pricing terms of
alcoholic liquor, and any other 
15questions deemed appropriate and necessary.
All statements in 
16the forms required to be made by law or by rule shall be
deemed 
17material, and any person who knowingly misstates any material 
18fact under
oath in an application is guilty of a Class B 
19misdemeanor. Fraud,
misrepresentation, false statements, 
20misleading statements, evasions, or
suppression of material 
21facts in the securing of a registration are grounds for

22suspension or revocation of the registration.
23 (b) A distributor's license shall allow the wholesale 
24purchase and storage
of alcoholic liquors and sale of alcoholic 
25liquors to licensees
in this State and to persons without the 
26State, as may be permitted by law.
 
 
09800SB1739sam001- 523 -LRB098 10559 AMC 42403 a


1 (c) An importing distributor's license may be issued to and 
2held by
those only who are duly licensed distributors, upon the 
3filing of an
application by a duly licensed distributor, with 
4the Commission and
the Commission shall, without the
payment of 
5any fee, immediately issue such importing distributor's

6license to the applicant, which shall allow the importation of 
7alcoholic
liquor by the licensee into this State from any point 
8in the United
States outside this State, and the purchase of 
9alcoholic liquor in
barrels, casks or other bulk containers and 
10the bottling of such
alcoholic liquors before resale thereof, 
11but all bottles or containers
so filled shall be sealed, 
12labeled, stamped and otherwise made to comply
with all 
13provisions, rules and regulations governing manufacturers in

14the preparation and bottling of alcoholic liquors. The 
15importing
distributor's license shall permit such licensee to 
16purchase alcoholic
liquor from Illinois licensed non-resident 
17dealers and foreign importers only.
18 (d) A retailer's license shall allow the licensee to sell 
19and offer
for sale at retail, only in the premises specified in 
20the license,
alcoholic liquor for use or consumption, but not 
21for resale in any form. Nothing in this amendatory Act of the 
2295th General Assembly shall deny, limit, remove, or restrict 
23the ability of a holder of a retailer's license to transfer, 
24deliver, or ship alcoholic liquor to the purchaser for use or 
25consumption subject to any applicable local law or ordinance. 
26Any retail license issued to a manufacturer shall only
permit 
 
 
09800SB1739sam001- 524 -LRB098 10559 AMC 42403 a


1the manufacturer to sell beer at retail on the premises 
2actually
occupied by the manufacturer. For the purpose of 
3further describing the type of business conducted at a retail 
4licensed premises, a retailer's licensee may be designated by 
5the State Commission as (i) an on premise consumption retailer, 
6(ii) an off premise sale retailer, or (iii) a combined on 
7premise consumption and off premise sale retailer.

8 Notwithstanding any other provision of this subsection 
9(d), a retail
licensee may sell alcoholic liquors to a special 
10event retailer licensee for
resale to the extent permitted 
11under subsection (e).
12 (e) A special event retailer's license (not-for-profit) 
13shall permit the
licensee to purchase alcoholic liquors from an 
14Illinois licensed distributor
(unless the licensee purchases 
15less than $500 of alcoholic liquors for the
special event, in 
16which case the licensee may purchase the alcoholic liquors
from 
17a licensed retailer) and shall allow the licensee to sell and 
18offer for
sale, at retail, alcoholic liquors for use or 
19consumption, but not for resale
in any form and only at the 
20location and on the specific dates designated for
the special 
21event in the license. An applicant for a special event retailer

22license must
(i) furnish with the application: (A) a resale 
23number issued under Section
2c of the Retailers' Occupation Tax 
24Act or evidence that the applicant is
registered under Section 
252a of the Retailers' Occupation Tax Act, (B) a
current, valid 
26exemption identification
number issued under Section 1g of the 
 
 
09800SB1739sam001- 525 -LRB098 10559 AMC 42403 a


1Retailers' Occupation Tax Act, and a
certification to the 
2Commission that the purchase of alcoholic liquors will be
a 
3tax-exempt purchase, or (C) a statement that the applicant is 
4not registered
under Section 2a of the Retailers' Occupation 
5Tax Act, does not hold a resale
number under Section 2c of the 
6Retailers' Occupation Tax Act, and does not
hold an exemption 
7number under Section 1g of the Retailers' Occupation Tax
Act, 
8in which event the Commission shall set forth on the special 
9event
retailer's license a statement to that effect; (ii) 
10submit with the application proof satisfactory to
the State 
11Commission that the applicant will provide dram shop liability

12insurance in the maximum limits; and (iii) show proof 
13satisfactory to the
State Commission that the applicant has 
14obtained local authority
approval.
15 (f) A railroad license shall permit the licensee to import 
16alcoholic
liquors into this State from any point in the United 
17States outside this
State and to store such alcoholic liquors 
18in this State; to make wholesale
purchases of alcoholic liquors 
19directly from manufacturers, foreign
importers, distributors 
20and importing distributors from within or outside
this State; 
21and to store such alcoholic liquors in this State; provided

22that the above powers may be exercised only in connection with 
23the
importation, purchase or storage of alcoholic liquors to be 
24sold or
dispensed on a club, buffet, lounge or dining car 
25operated on an electric,
gas or steam railway in this State; 
26and provided further, that railroad
licensees exercising the 
 
 
09800SB1739sam001- 526 -LRB098 10559 AMC 42403 a


1above powers shall be subject to all provisions of
Article VIII 
2of this Act as applied to importing distributors. A railroad

3license shall also permit the licensee to sell or dispense 
4alcoholic
liquors on any club, buffet, lounge or dining car 
5operated on an electric,
gas or steam railway regularly 
6operated by a common carrier in this State,
but shall not 
7permit the sale for resale of any alcoholic liquors to any

8licensee within this State. A license shall be obtained for 
9each car in which
such sales are made.
10 (g) A boat license shall allow the sale of alcoholic liquor 
11in
individual drinks, on any passenger boat regularly operated 
12as a common
carrier on navigable waters in this State or on any 
13riverboat operated
under
the Illinois Riverboat Gambling Act, 
14which boat or riverboat maintains a public
dining room or 
15restaurant thereon.
16 (h) A non-beverage user's license shall allow the licensee 
17to
purchase alcoholic liquor from a licensed manufacturer or 
18importing
distributor, without the imposition of any tax upon 
19the business of such
licensed manufacturer or importing 
20distributor as to such alcoholic
liquor to be used by such 
21licensee solely for the non-beverage purposes
set forth in 
22subsection (a) of Section 8-1 of this Act, and
such licenses 
23shall be divided and classified and shall permit the
purchase, 
24possession and use of limited and stated quantities of

25alcoholic liquor as follows:
26Class 1, not to exceed ......................... 500 gallons

 
 
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1Class 2, not to exceed ....................... 1,000 gallons

2Class 3, not to exceed ....................... 5,000 gallons

3Class 4, not to exceed ...................... 10,000 gallons

4Class 5, not to exceed ....................... 50,000 gallons
5 (i) A wine-maker's premises license shall allow a
licensee 
6that concurrently holds a first-class wine-maker's license to 
7sell
and offer for sale at retail in the premises specified in 
8such license
not more than 50,000 gallons of the first-class 
9wine-maker's wine that is
made at the first-class wine-maker's 
10licensed premises per year for use or
consumption, but not for 
11resale in any form. A wine-maker's premises
license shall allow 
12a licensee who concurrently holds a second-class
wine-maker's 
13license to sell and offer for sale at retail in the premises

14specified in such license up to 100,000 gallons of the

15second-class wine-maker's wine that is made at the second-class 
16wine-maker's
licensed premises per year
for use or consumption 
17but not for resale in any form. A wine-maker's premises license 
18shall allow a
licensee that concurrently holds a first-class 
19wine-maker's license or a second-class
wine-maker's license to 
20sell
and offer for sale at retail at the premises specified in 
21the wine-maker's premises license, for use or consumption but 
22not for resale in any form, any beer, wine, and spirits 
23purchased from a licensed distributor. Upon approval from the

24State Commission, a wine-maker's premises license
shall allow 
25the licensee to sell and offer for sale at (i) the wine-maker's

26licensed premises and (ii) at up to 2 additional locations for 
 
 
09800SB1739sam001- 528 -LRB098 10559 AMC 42403 a


1use and
consumption and not for resale. Each location shall 
2require additional
licensing per location as specified in 
3Section 5-3 of this Act. A wine-maker's premises licensee shall

4secure liquor liability insurance coverage in an amount at

5least equal to the maximum liability amounts set forth in

6subsection (a) of Section 6-21 of this Act.

7 (j) An airplane license shall permit the licensee to import

8alcoholic liquors into this State from any point in the United 
9States
outside this State and to store such alcoholic liquors 
10in this State; to
make wholesale purchases of alcoholic liquors 
11directly from
manufacturers, foreign importers, distributors 
12and importing
distributors from within or outside this State; 
13and to store such
alcoholic liquors in this State; provided 
14that the above powers may be
exercised only in connection with 
15the importation, purchase or storage
of alcoholic liquors to be 
16sold or dispensed on an airplane; and
provided further, that 
17airplane licensees exercising the above powers
shall be subject 
18to all provisions of Article VIII of this Act as
applied to 
19importing distributors. An airplane licensee shall also
permit 
20the sale or dispensing of alcoholic liquors on any passenger

21airplane regularly operated by a common carrier in this State, 
22but shall
not permit the sale for resale of any alcoholic 
23liquors to any licensee
within this State. A single airplane 
24license shall be required of an
airline company if liquor 
25service is provided on board aircraft in this
State. The annual 
26fee for such license shall be as determined in
Section 5-3.
 
 
09800SB1739sam001- 529 -LRB098 10559 AMC 42403 a


1 (k) A foreign importer's license shall permit such licensee 
2to purchase
alcoholic liquor from Illinois licensed 
3non-resident dealers only, and to
import alcoholic liquor other 
4than in bulk from any point outside the
United States and to 
5sell such alcoholic liquor to Illinois licensed
importing 
6distributors and to no one else in Illinois;
provided that (i) 
7the foreign importer registers with the State Commission
every

8brand of
alcoholic liquor that it proposes to sell to Illinois 
9licensees during the
license period, (ii) the foreign importer 
10complies with all of the provisions
of Section
6-9 of this Act 
11with respect to registration of such Illinois licensees as may

12be granted the
right to sell such brands at wholesale, and 
13(iii) the foreign importer complies with the provisions of 
14Sections 6-5 and 6-6 of this Act to the same extent that these 
15provisions apply to manufacturers.
16 (l) (i) A broker's license shall be required of all persons

17who solicit
orders for, offer to sell or offer to supply 
18alcoholic liquor to
retailers in the State of Illinois, or who 
19offer to retailers to ship or
cause to be shipped or to make 
20contact with distillers, rectifiers,
brewers or manufacturers 
21or any other party within or without the State
of Illinois in 
22order that alcoholic liquors be shipped to a distributor,

23importing distributor or foreign importer, whether such 
24solicitation or
offer is consummated within or without the 
25State of Illinois.
26 No holder of a retailer's license issued by the Illinois 
 
 
09800SB1739sam001- 530 -LRB098 10559 AMC 42403 a


1Liquor
Control Commission shall purchase or receive any 
2alcoholic liquor, the
order for which was solicited or offered 
3for sale to such retailer by a
broker unless the broker is the 
4holder of a valid broker's license.
5 The broker shall, upon the acceptance by a retailer of the 
6broker's
solicitation of an order or offer to sell or supply or 
7deliver or have
delivered alcoholic liquors, promptly forward 
8to the Illinois Liquor
Control Commission a notification of 
9said transaction in such form as
the Commission may by 
10regulations prescribe.
11 (ii) A broker's license shall be required of
a person 
12within this State, other than a retail licensee,
who, for a fee 
13or commission, promotes, solicits, or accepts orders for

14alcoholic liquor, for use or consumption and not for
resale, to 
15be shipped from this State and delivered to residents outside 
16of
this State by an express company, common carrier, or 
17contract carrier.
This Section does not apply to any person who 
18promotes, solicits, or accepts
orders for wine as specifically 
19authorized in Section 6-29 of this Act.
20 A broker's license under this subsection (l)
shall not 
21entitle the holder to
buy or sell any
alcoholic liquors for his 
22own account or to take or deliver title to
such alcoholic 
23liquors.
24 This subsection (l)
shall not apply to distributors, 
25employees of
distributors, or employees of a manufacturer who 
26has registered the
trademark, brand or name of the alcoholic 
 
 
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1liquor pursuant to Section 6-9
of this Act, and who regularly 
2sells such alcoholic liquor
in the State of Illinois only to 
3its registrants thereunder.
4 Any agent, representative, or person subject to 
5registration pursuant to
subsection (a-1) of this Section shall 
6not be eligible to receive a broker's
license.
7 (m) A non-resident dealer's license shall permit such 
8licensee to ship
into and warehouse alcoholic liquor into this 
9State from any point
outside of this State, and to sell such 
10alcoholic liquor to Illinois licensed
foreign importers and 
11importing distributors and to no one else in this State;

12provided that (i) said non-resident dealer shall register with 
13the Illinois Liquor
Control Commission each and every brand of 
14alcoholic liquor which it proposes
to sell to Illinois 
15licensees during the license period, (ii) it shall comply with 
16all of the provisions of Section 6-9 hereof with
respect to 
17registration of such Illinois licensees as may be granted the 
18right
to sell such brands at wholesale, and (iii) the 
19non-resident dealer shall comply with the provisions of 
20Sections 6-5 and 6-6 of this Act to the same extent that these 
21provisions apply to manufacturers.
22 (n) A brew pub license shall allow the licensee (i) to 
23manufacture beer only
on the premises specified in the license, 
24(ii) to make sales of the
beer manufactured on the premises or, 
25with the approval of the Commission, beer manufactured on 
26another brew pub licensed premises that is substantially owned 
 
 
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1and operated by the same licensee to importing distributors, 
2distributors,
and to non-licensees for use and consumption, 
3(iii) to store the beer upon
the premises, and (iv) to sell and 
4offer for sale at retail from the licensed
premises, provided 
5that a brew pub licensee shall not sell for off-premises

6consumption more than 50,000 gallons per year. A person who 
7holds a brew pub license may simultaneously hold a craft brewer 
8license if he or she otherwise qualifies for the craft brewer 
9license and the craft brewer license is for a location separate 
10from the brew pub's licensed premises. A brew pub license shall 
11permit a person who has received prior approval from the 
12Commission to annually transfer no more than a total of 50,000 
13gallons of beer manufactured on premises to all other licensed 
14brew pubs that are substantially owned and operated by the same 
15person.
16 (o) A caterer retailer license shall allow the holder
to 
17serve alcoholic liquors as an incidental part of a food service 
18that serves
prepared meals which excludes the serving of snacks 
19as
the primary meal, either on or off-site whether licensed or 
20unlicensed.
21 (p) An auction liquor license shall allow the licensee to 
22sell and offer
for sale at auction wine and spirits for use or 
23consumption, or for resale by
an Illinois liquor licensee in 
24accordance with provisions of this Act. An
auction liquor 
25license will be issued to a person and it will permit the

26auction liquor licensee to hold the auction anywhere in the 
 
 
09800SB1739sam001- 533 -LRB098 10559 AMC 42403 a


1State. An auction
liquor license must be obtained for each 
2auction at least 14 days in advance of
the auction date.
3 (q) A special use permit license shall allow an Illinois 
4licensed
retailer to transfer a portion of its alcoholic liquor 
5inventory from its
retail licensed premises to the premises 
6specified in the license hereby
created, and to sell or offer 
7for sale at retail, only in the premises
specified in the 
8license hereby created, the transferred alcoholic liquor for

9use or consumption, but not for resale in any form. A special 
10use permit
license may be granted for the following time 
11periods: one day or less; 2 or
more days to a maximum of 15 days 
12per location in any 12 month period. An
applicant for the 
13special use permit license must also submit with the

14application proof satisfactory to the State Commission that the 
15applicant will
provide dram shop liability insurance to the 
16maximum limits and have local
authority approval.
17 (r) A winery shipper's license shall allow a person
with a 
18first-class or second-class wine manufacturer's
license, a 
19first-class or second-class wine-maker's license,
or a limited 
20wine manufacturer's license or who is licensed to
make wine 
21under the laws of another state to ship wine
made by that 
22licensee directly to a resident of this
State who is 21 years 
23of age or older for that resident's
personal use and not for 
24resale. Prior to receiving a
winery shipper's license, an 
25applicant for the license must
provide the Commission with a 
26true copy of its current
license in any state in which it is 
 
 
09800SB1739sam001- 534 -LRB098 10559 AMC 42403 a


1licensed as a manufacturer
of wine. An applicant for a winery 
2shipper's license must
also complete an application form that 
3provides any other
information the Commission deems necessary. 
4The
application form shall include an acknowledgement 
5consenting
to the jurisdiction of the Commission, the Illinois

6Department of Revenue, and the courts of this State concerning

7the enforcement of this Act and any related laws, rules, and

8regulations, including authorizing the Department of Revenue

9and the Commission to conduct audits for the purpose of

10ensuring compliance with this amendatory Act.
11 A winery shipper licensee must pay to the Department
of 
12Revenue the State liquor gallonage tax under Section 8-1 for

13all wine that is sold by the licensee and shipped to a person

14in this State. For the purposes of Section 8-1, a winery

15shipper licensee shall be taxed in the same manner as a

16manufacturer of wine. A licensee who is not otherwise required 
17to register under the Retailers' Occupation Tax Act must

18register under the Use Tax Act to collect and remit use tax to

19the Department of Revenue for all gallons of wine that are sold

20by the licensee and shipped to persons in this State. If a

21licensee fails to remit the tax imposed under this Act in

22accordance with the provisions of Article VIII of this Act, the

23winery shipper's license shall be revoked in accordance
with 
24the provisions of Article VII of this Act. If a licensee
fails 
25to properly register and remit tax under the Use Tax Act
or the 
26Retailers' Occupation Tax Act for all wine that is sold
by the 
 
 
09800SB1739sam001- 535 -LRB098 10559 AMC 42403 a


1winery shipper and shipped to persons in this
State, the winery 
2shipper's license shall be revoked in
accordance with the 
3provisions of Article VII of this Act.
4 A winery shipper licensee must collect, maintain, and

5submit to the Commission on a semi-annual basis the
total 
6number of cases per resident of wine shipped to residents
of 
7this State.
A winery shipper licensed under this subsection (r)

8must comply with the requirements of Section 6-29 of this 
9amendatory Act.

10(Source: P.A. 96-1367, eff. 7-28-10; 97-5, eff. 6-1-11; 97-455, 
11eff. 8-19-11; 97-813, eff. 7-13-12.)




12 (235 ILCS 5/6-30) (from Ch. 43, par. 144f)


13 Sec. 6-30. Notwithstanding any other provision of this Act, 
14the
Illinois Gaming Board shall have exclusive authority to 
15establish the hours
for sale and consumption of alcoholic 
16liquor on board a riverboat during
riverboat gambling 
17excursions and in a casino conducted in accordance with the 
18Illinois Riverboat
Gambling Act.

19(Source: P.A. 87-826.)



20 Section 90-50.  The Criminal Code of 2012 is amended by 
21changing Sections 28-1, 28-1.1, 28-3,
28-5, and 28-7 as 
22follows:






23 (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)



 
 
09800SB1739sam001- 536 -LRB098 10559 AMC 42403 a


1 Sec. 28-1. Gambling. 

2 (a) A person commits gambling when he or she:


3  (1) knowingly plays a game of chance or skill for money 
4 or other thing of
value, unless excepted in subsection (b) 
5 of this Section;


6  (2) knowingly makes a wager upon the result of any 
7 game, contest, or any
political nomination, appointment or 
8 election;


9  (3) knowingly operates, keeps, owns, uses, purchases, 
10 exhibits, rents, sells,
bargains for the sale or lease of, 
11 manufactures or distributes any
gambling device;


12  (4) contracts to have or give himself or herself or 
13 another the option to buy
or sell, or contracts to buy or 
14 sell, at a future time, any grain or
other commodity 
15 whatsoever, or any stock or security of any company,
where 
16 it is at the time of making such contract intended by both 
17 parties
thereto that the contract to buy or sell, or the 
18 option, whenever
exercised, or the contract resulting 
19 therefrom, shall be settled, not by
the receipt or delivery 
20 of such property, but by the payment only of
differences in 
21 prices thereof; however, the issuance, purchase, sale,

22 exercise, endorsement or guarantee, by or through a person 
23 registered
with the Secretary of State pursuant to Section 
24 8 of the Illinois
Securities Law of 1953, or by or through 
25 a person exempt from such
registration under said Section 
26 8, of a put, call, or other option to
buy or sell 
 
 
09800SB1739sam001- 537 -LRB098 10559 AMC 42403 a


1 securities which have been registered with the Secretary of

2 State or which are exempt from such registration under 
3 Section 3 of the
Illinois Securities Law of 1953 is not 
4 gambling within the meaning of
this paragraph (4);


5  (5) knowingly owns or possesses any book, instrument or 
6 apparatus by
means of which bets or wagers have been, or 
7 are, recorded or registered,
or knowingly possesses any 
8 money which he has received in the course of
a bet or 
9 wager;


10  (6) knowingly sells pools upon the result of any game 
11 or contest of skill or
chance, political nomination, 
12 appointment or election;


13  (7) knowingly sets up or promotes any lottery or sells, 
14 offers to sell or
transfers any ticket or share for any 
15 lottery;


16  (8) knowingly sets up or promotes any policy game or 
17 sells, offers to sell or
knowingly possesses or transfers 
18 any policy ticket, slip, record,
document or other similar 
19 device;


20  (9) knowingly drafts, prints or publishes any lottery 
21 ticket or share,
or any policy ticket, slip, record, 
22 document or similar device, except for
such activity 
23 related to lotteries, bingo games and raffles authorized by

24 and conducted in accordance with the laws of Illinois or 
25 any other state or
foreign government;


26  (10) knowingly advertises any lottery or policy game, 
 
 
09800SB1739sam001- 538 -LRB098 10559 AMC 42403 a


1 except for such
activity related to lotteries, bingo games 
2 and raffles authorized by and
conducted in accordance with 
3 the laws of Illinois or any other state;


4  (11) knowingly transmits information as to wagers, 
5 betting odds, or
changes in betting odds by telephone, 
6 telegraph, radio, semaphore or
similar means; or knowingly 
7 installs or maintains equipment for the
transmission or 
8 receipt of such information; except that nothing in this

9 subdivision (11) prohibits transmission or receipt of such 
10 information
for use in news reporting of sporting events or 
11 contests; or


12  (12) knowingly establishes, maintains, or operates an 
13 Internet site that
permits a person to play a game of

14 chance or skill for money or other thing of value by means 
15 of the Internet or
to make a wager upon the
result of any 
16 game, contest, political nomination, appointment, or

17 election by means of the Internet. This item (12) does not 
18 apply to activities referenced in items (6) and (6.1) of 
19 subsection (b) of this Section. 

20 (b) Participants in any of the following activities shall 
21not be
convicted of gambling:


22  (1) Agreements to compensate for loss caused by the 
23 happening of
chance including without limitation contracts 
24 of indemnity or guaranty
and life or health or accident 
25 insurance.


26  (2) Offers of prizes, award or compensation to the 
 
 
09800SB1739sam001- 539 -LRB098 10559 AMC 42403 a


1 actual
contestants in any bona fide contest for the 
2 determination of skill,
speed, strength or endurance or to 
3 the owners of animals or vehicles
entered in such contest.


4  (3) Pari-mutuel betting as authorized by the law of 
5 this State.


6  (4) Manufacture of gambling devices, including the 
7 acquisition of
essential parts therefor and the assembly 
8 thereof, for transportation in
interstate or foreign 
9 commerce to any place outside this State when such

10 transportation is not prohibited by any applicable Federal 
11 law; or the
manufacture, distribution, or possession of 
12 video gaming terminals, as
defined in the Video Gaming Act, 
13 by manufacturers, distributors, and
terminal operators 
14 licensed to do so under the Video Gaming Act.


15  (5) The game commonly known as "bingo", when conducted 
16 in accordance
with the Bingo License and Tax Act.


17  (6) Lotteries when conducted by the State of Illinois 
18 in accordance
with the Illinois Lottery Law. This exemption 
19 includes any activity conducted by the Department of 
20 Revenue to sell lottery tickets pursuant to the provisions 
21 of the Illinois Lottery Law and its rules.

22  (6.1) The purchase of lottery tickets through the 
23 Internet for a lottery conducted by the State of Illinois 
24 under the program established in Section 7.12 of the 
25 Illinois Lottery Law.


26  (7) Possession of an antique slot machine that is 
 
 
09800SB1739sam001- 540 -LRB098 10559 AMC 42403 a


1 neither used nor
intended to be used in the operation or 
2 promotion of any unlawful
gambling activity or enterprise. 
3 For the purpose of this subparagraph
(b)(7), an antique 
4 slot machine is one manufactured 25 years ago or earlier.


5  (8) Raffles when conducted in accordance with the 
6 Raffles Act.


7  (9) Charitable games when conducted in accordance with 
8 the Charitable
Games Act.


9  (10) Pull tabs and jar games when conducted under the 
10 Illinois Pull
Tabs and Jar Games Act.


11  (11) Gambling games conducted on riverboats when

12 authorized by the Illinois Riverboat Gambling Act.

13  (12) Video gaming terminal games at a licensed 
14 establishment, licensed truck stop establishment,
licensed

15 fraternal establishment, or licensed veterans 
16 establishment when
conducted in accordance with the Video 
17 Gaming Act. 
18  (13) Games of skill or chance where money or other 
19 things of value can be won but no payment or purchase is 
20 required to participate. 
21 (c) Sentence.

22 Gambling is a
Class A misdemeanor. A second or
subsequent 
23conviction under subsections (a)(3) through (a)(12),
is a Class 
244 felony.

25 (d) Circumstantial evidence.

26 In prosecutions under
this
Section circumstantial evidence 
 
 
09800SB1739sam001- 541 -LRB098 10559 AMC 42403 a


1shall have the same validity and weight as
in any criminal 
2prosecution.

3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 
496-1203, eff. 7-22-10; 97-1108, eff. 1-1-13.)





5 (720 ILCS 5/28-1.1)
 (from Ch. 38, par. 28-1.1)



6 Sec. 28-1.1. Syndicated gambling. 

7 (a) Declaration of Purpose. Recognizing the close 
8relationship between
professional gambling and other organized 
9crime, it is declared to be the
policy of the legislature to 
10restrain persons from engaging in the business
of gambling for 
11profit in this State. This Section shall be liberally
construed 
12and administered with a view to carrying out this policy.

13 (b) A person commits syndicated gambling when he or she 
14operates a "policy
game" or engages in the business of 
15bookmaking.

16 (c) A person "operates a policy game" when he or she 
17knowingly uses any
premises or property for the purpose of 
18receiving or knowingly does
receive from what is commonly 
19called "policy":


20  (1) money from a person other than the bettor or player 
21 whose
bets or plays are represented by the money; or


22  (2) written "policy game" records, made or used over 
23 any
period of time, from a person other than the bettor or 
24 player whose bets
or plays are represented by the written 
25 record.

 
 
09800SB1739sam001- 542 -LRB098 10559 AMC 42403 a


1 (d) A person engages in bookmaking when he or she knowingly 
2receives or accepts more
than five bets or wagers upon the 
3result of any trials or contests of
skill, speed or power of 
4endurance or upon any lot, chance, casualty,
unknown or 
5contingent event whatsoever, which bets or wagers shall be of

6such size that the total of the amounts of money paid or 
7promised to be
paid to the bookmaker on account thereof shall 
8exceed $2,000.
Bookmaking is the receiving or accepting of bets 
9or wagers
regardless of the form or manner in which the 
10bookmaker records them.

11 (e) Participants in any of the following activities shall 
12not be
convicted of syndicated gambling:


13  (1) Agreements to compensate for loss caused by the 
14 happening
of chance including without limitation contracts 
15 of indemnity or
guaranty and life or health or accident 
16 insurance;


17  (2) Offers of prizes, award or compensation to the 
18 actual
contestants in any bona fide contest for the 
19 determination of skill,
speed, strength or endurance or to 
20 the owners of animals or vehicles
entered in the contest;


21  (3) Pari-mutuel betting as authorized by law of this 
22 State;



23  (4) Manufacture of gambling devices, including the 
24 acquisition
of essential parts therefor and the assembly 
25 thereof, for transportation
in interstate or foreign 
26 commerce to any place outside this State when
the 
 
 
09800SB1739sam001- 543 -LRB098 10559 AMC 42403 a


1 transportation is not prohibited by any applicable Federal 
2 law;


3  (5) Raffles when conducted in accordance with the 
4 Raffles Act;


5  (6) Gambling games conducted on riverboats, in 
6 casinos, or at electronic gaming facilities when

7 authorized by the Illinois Riverboat Gambling Act; and


8  (7) Video gaming terminal games at a licensed 
9 establishment, licensed truck stop establishment,
licensed

10 fraternal establishment, or licensed veterans 
11 establishment
when conducted in accordance with the Video 
12 Gaming Act.

13 (f) Sentence. Syndicated gambling is a Class 3 felony.

14(Source: P.A. 96-34, eff. 7-13-09; 97-1108, eff. 1-1-13.)






15 (720 ILCS 5/28-3)
 (from Ch. 38, par. 28-3)



16 Sec. 28-3. Keeping a Gambling Place. A "gambling place" is 
17any real
estate, vehicle, boat or any other property whatsoever 
18used for the
purposes of gambling other than gambling conducted 
19in the manner authorized
by the Illinois Riverboat Gambling Act 
20or the Video Gaming Act. Any person who
knowingly permits any 
21premises
or property owned or occupied by him or under his 
22control to be used as a
gambling place commits a Class A 
23misdemeanor. Each subsequent offense is a
Class 4 felony. When 
24any premises is determined by the circuit court to be
a 
25gambling place:

 
 
09800SB1739sam001- 544 -LRB098 10559 AMC 42403 a


1 (a) Such premises is a public nuisance and may be proceeded 
2against as such,
and

3 (b) All licenses, permits or certificates issued by the 
4State of
Illinois or any subdivision or public agency thereof 
5authorizing the
serving of food or liquor on such premises 
6shall be void; and no license,
permit or certificate so 
7cancelled shall be reissued for such premises for
a period of 
860 days thereafter; nor shall any person convicted of keeping a

9gambling place be reissued such license
for one year from his 
10conviction and, after a second conviction of keeping
a gambling 
11place, any such person shall not be reissued such license, and

12 (c) Such premises of any person who knowingly permits 
13thereon a
violation of any Section of this Article shall be 
14held liable for, and may
be sold to pay any unsatisfied 
15judgment that may be recovered and any
unsatisfied fine that 
16may be levied under any Section of this Article.

17(Source: P.A. 96-34, eff. 7-13-09.)





18 (720 ILCS 5/28-5)
 (from Ch. 38, par. 28-5)



19 Sec. 28-5. Seizure of gambling devices and gambling funds. 

20 (a) Every device designed for gambling which is incapable 
21of lawful use
or every device used unlawfully for gambling 
22shall be considered a
"gambling device", and shall be subject 
23to seizure, confiscation and
destruction by the Department of 
24State Police or by any municipal, or other
local authority, 
25within whose jurisdiction the same may be found. As used
in 
 
 
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1this Section, a "gambling device" includes any slot machine, 
2and
includes any machine or device constructed for the 
3reception of money or
other thing of value and so constructed 
4as to return, or to cause someone
to return, on chance to the 
5player thereof money, property or a right to
receive money or 
6property. With the exception of any device designed for

7gambling which is incapable of lawful use, no gambling device 
8shall be
forfeited or destroyed unless an individual with a 
9property interest in
said device knows of the unlawful use of 
10the device.

11 (b) Every gambling device shall be seized and forfeited to 
12the county
wherein such seizure occurs. Any money or other 
13thing of value integrally
related to acts of gambling shall be 
14seized and forfeited to the county
wherein such seizure occurs.

15 (c) If, within 60 days after any seizure pursuant to 
16subparagraph
(b) of this Section, a person having any property 
17interest in the seized
property is charged with an offense, the 
18court which renders judgment
upon such charge shall, within 30 
19days after such judgment, conduct a
forfeiture hearing to 
20determine whether such property was a gambling device
at the 
21time of seizure. Such hearing shall be commenced by a written

22petition by the State, including material allegations of fact, 
23the name
and address of every person determined by the State to 
24have any property
interest in the seized property, a 
25representation that written notice of
the date, time and place 
26of such hearing has been mailed to every such
person by 
 
 
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1certified mail at least 10 days before such date, and a
request 
2for forfeiture. Every such person may appear as a party and

3present evidence at such hearing. The quantum of proof required 
4shall
be a preponderance of the evidence, and the burden of 
5proof shall be on
the State. If the court determines that the 
6seized property was
a gambling device at the time of seizure, 
7an order of forfeiture and
disposition of the seized property 
8shall be entered: a gambling device
shall be received by the 
9State's Attorney, who shall effect its
destruction, except that 
10valuable parts thereof may be liquidated and
the resultant 
11money shall be deposited in the general fund of the county

12wherein such seizure occurred; money and other things of value 
13shall be
received by the State's Attorney and, upon 
14liquidation, shall be
deposited in the general fund of the 
15county wherein such seizure
occurred. However, in the event 
16that a defendant raises the defense
that the seized slot 
17machine is an antique slot machine described in
subparagraph 
18(b) (7) of Section 28-1 of this Code and therefore he is
exempt 
19from the charge of a gambling activity participant, the seized

20antique slot machine shall not be destroyed or otherwise 
21altered until a
final determination is made by the Court as to 
22whether it is such an
antique slot machine. Upon a final 
23determination by the Court of this
question in favor of the 
24defendant, such slot machine shall be
immediately returned to 
25the defendant. Such order of forfeiture and
disposition shall, 
26for the purposes of appeal, be a final order and
judgment in a 
 
 
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1civil proceeding.

2 (d) If a seizure pursuant to subparagraph (b) of this 
3Section is not
followed by a charge pursuant to subparagraph 
4(c) of this Section, or if
the prosecution of such charge is 
5permanently terminated or indefinitely
discontinued without 
6any judgment of conviction or acquittal (1) the
State's 
7Attorney shall commence an in rem proceeding for the forfeiture

8and destruction of a gambling device, or for the forfeiture and 
9deposit
in the general fund of the county of any seized money 
10or other things of
value, or both, in the circuit court and (2) 
11any person having any
property interest in such seized gambling 
12device, money or other thing
of value may commence separate 
13civil proceedings in the manner provided
by law.

14 (e) Any gambling device displayed for sale to a riverboat 
15gambling
operation, casino gambling operation, or electronic 
16gaming facility or used to train occupational licensees of a 
17riverboat gambling
operation, casino gambling operation, or 
18electronic gaming facility as authorized under the Illinois 
19Riverboat Gambling Act is exempt from
seizure under this 
20Section.

21 (f) Any gambling equipment, devices and supplies provided 
22by a licensed
supplier in accordance with the Illinois 
23Riverboat Gambling Act which are removed
from a
the riverboat, 
24casino, or electronic gaming facility for repair are
exempt 
25from seizure under this Section.

26(Source: P.A. 87-826.)






 
 
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1 (720 ILCS 5/28-7)
 (from Ch. 38, par. 28-7)



2 Sec. 28-7. Gambling contracts void. 

3 (a) All promises, notes, bills, bonds, covenants, 
4contracts, agreements,
judgments, mortgages, or other 
5securities or conveyances made, given,
granted, drawn, or 
6entered into, or executed by any person whatsoever,
where the 
7whole or any part of the consideration thereof is for any
money 
8or thing of value, won or obtained in violation of any Section 
9of
this Article are null and void.

10 (b) Any obligation void under this Section may be set aside 
11and vacated
by any court of competent jurisdiction, upon a 
12complaint filed for that
purpose, by the person so granting, 
13giving, entering into, or executing the
same, or by his 
14executors or administrators, or by any creditor, heir,
legatee, 
15purchaser or other person interested therein; or if a judgment,

16the same may be set aside on motion of any person stated above, 
17on due
notice thereof given.

18 (c) No assignment of any obligation void under this Section 
19may in any
manner affect the defense of the person giving, 
20granting, drawing, entering
into or executing such obligation, 
21or the remedies of any person interested
therein.

22 (d) This Section shall not prevent a licensed owner of a 
23riverboat
gambling operation, casino gambling operation, or an 
24electronic gaming licensee under the Illinois Gambling
Act and 
25the Illinois Horse Racing Act of 1975 from instituting a cause 
 
 
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1of
action to collect any amount due and owing under an 
2extension of credit to a
riverboat gambling patron as 
3authorized under Section 11.1 of the Illinois
Riverboat 
4Gambling Act.

5(Source: P.A. 87-826.)




6 Section 90-55. The Eminent Domain Act is amended by adding 
7Section 15-5-47 as follows:

8 (735 ILCS 30/15-5-47 new)
9 Sec. 15-5-47. Eminent domain powers in new Acts. The 
10following provisions of law may include express grants of the 
11power to acquire property by condemnation or eminent domain:

12 Chicago Casino Development Authority Act; City of Chicago; for 
13 the purposes of the Act.

14 Section 90-60. The Payday Loan Reform Act is amended by 
15changing Section 3-5 as follows:

16 (815 ILCS 122/3-5)

17 Sec. 3-5. Licensure. 
18 (a) A license to make a payday loan shall state the 
19address,
including city and state, at which
the business is to 
20be conducted and shall state fully the name of the licensee.

21The license shall be conspicuously posted in the place of 
 
 
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1business of the
licensee and shall not be transferable or 
2assignable.

3 (b) An application for a license shall be in writing and in 
4a form
prescribed by the Secretary. The Secretary may not issue 
5a payday loan
license unless and until the following findings 
6are made:

7  (1) that the financial responsibility, experience, 
8 character, and general
fitness of the applicant are such as 
9 to command the confidence of the public
and to warrant the 
10 belief that the business will be operated lawfully and

11 fairly and within the provisions and purposes of this Act; 
12 and

13  (2) that the applicant has submitted such other 
14 information as the
Secretary may deem necessary.

15 (c) A license shall be issued for no longer than one year, 
16and no renewal
of a license may be provided if a licensee has 
17substantially violated this
Act and has not cured the violation 
18to the satisfaction of the Department.

19 (d) A licensee shall appoint, in writing, the Secretary as 
20attorney-in-fact
upon whom all lawful process against the 
21licensee may be served with the
same legal force and validity 
22as if served on the licensee. A copy of the
written 
23appointment, duly certified, shall be filed in the office of 
24the
Secretary, and a copy thereof certified by the Secretary 
25shall be sufficient
evidence to subject a licensee to 
26jurisdiction in a court of law. This appointment shall remain 
 
 
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1in effect while any liability remains
outstanding in this State 
2against the licensee. When summons is served upon
the Secretary 
3as attorney-in-fact for a licensee, the Secretary shall 
4immediately
notify the licensee by registered mail, enclosing 
5the summons and specifying
the hour and day of service.

6 (e) A licensee must pay an annual fee of $1,000. In 
7addition to the
license fee, the reasonable expense of any 
8examination or hearing
by the Secretary under any provisions of 
9this Act shall be borne by
the licensee. If a licensee fails to 
10renew its license by December 31,
its license
shall 
11automatically expire; however, the Secretary, in his or her 
12discretion,
may reinstate an expired license upon:

13  (1) payment of the annual fee within 30 days of the 
14 date of
expiration; and

15  (2) proof of good cause for failure to renew.

16 (f) Not more than one place of business shall be maintained 
17under the
same license, but the Secretary may issue more than 
18one license to the same
licensee upon compliance with all the 
19provisions of this Act governing
issuance of a single license. 
20The location, except those locations already in
existence as of 
21June 1, 2005, may not be within one mile of a
horse race track 
22subject to the Illinois Horse Racing Act of 1975,
within one 
23mile of a facility at which gambling is conducted under the 
24Illinois
Riverboat Gambling Act, within one mile of the 
25location at which a
riverboat subject to the Illinois Riverboat 
26Gambling Act docks, or within one mile of
any State of Illinois 
 
 
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1or United States military base or naval installation.

2 (g) No licensee shall conduct the business of making loans 
3under this
Act within any office, suite, room, or place of 
4business in which (1) any loans are offered or made under the 
5Consumer Installment Loan Act other than title secured loans as 
6defined in subsection (a) of Section 15 of the Consumer 
7Installment Loan Act and governed by Title 38, Section 110.330 
8of the Illinois Administrative Code or (2) any other
business 
9is solicited or engaged in unless the other business is 
10licensed by the Department or, in the opinion of the Secretary, 
11the
other business would not be contrary to the best interests 
12of consumers and
is authorized by the Secretary in writing.

13 (g-5) Notwithstanding subsection (g) of this Section, a 
14licensee may obtain a license under the Consumer Installment 
15Loan Act (CILA) for the exclusive purpose and use of making 
16title secured loans, as defined in subsection (a) of Section 15 
17of CILA and governed by Title 38, Section 110.300 of the 
18Illinois Administrative Code. A licensee may continue to 
19service Consumer Installment Loan Act loans that were 
20outstanding as of the effective date of this amendatory Act of 
21the 96th General Assembly. 
22 (h) The Secretary shall maintain a list of licensees that 
23shall be
available to interested consumers and lenders and the 
24public. The Secretary
shall maintain a toll-free number whereby 
25consumers may obtain
information about licensees. The 
26Secretary shall also establish a complaint
process under which 
 
 
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1an aggrieved consumer
may file a complaint against a licensee 
2or non-licensee who violates any
provision of this Act.

3(Source: P.A. 96-936, eff. 3-21-11.)


4 Section 90-65. The Travel Promotion Consumer Protection 
5Act is amended by changing Section 2 as follows:




6 (815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)



7 Sec. 2. Definitions. 

8 (a) "Travel promoter" means a person, including a tour 
9operator, who sells,
provides, furnishes, contracts for, 
10arranges or advertises that he or she will
arrange wholesale or 
11retail transportation by air, land, sea or navigable
stream, 
12either separately or in conjunction with other services. 
13"Travel
promoter" does not include (1) an air carrier; (2) a 
14sea carrier; (3) an
officially appointed agent of an air 
15carrier who is a member in good standing
of the Airline 
16Reporting Corporation; (4) a travel promoter who has in
force 
17$1,000,000 or more of liability insurance coverage for 
18professional
errors and omissions and a surety bond or 
19equivalent surety in the amount of
$100,000 or more for the 
20benefit of consumers in the event of a bankruptcy on
the part 
21of the travel promoter; or (5) a riverboat subject to 
22regulation under
the Illinois Riverboat Gambling Act.

23 (b) "Advertise" means to make any representation in the 
24solicitation of
passengers and includes communication with 
 
 
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1other members of the same
partnership, corporation, joint 
2venture, association, organization, group or
other entity.

3 (c) "Passenger" means a person on whose behalf money or 
4other
consideration has been given or is to be given to 
5another, including
another member of the same partnership, 
6corporation, joint venture,
association, organization, group 
7or other entity, for travel.

8 (d) "Ticket or voucher" means a writing or combination of 
9writings which
is itself good and sufficient to obtain

10transportation and other services for which the passenger has 
11contracted.

12(Source: P.A. 91-357, eff. 7-29-99.)


13 (30 ILCS 105/5.490 rep.)
14 Section 90-70. The State Finance Act is amended by 
15repealing Section 5.490.

16 (230 ILCS 5/54 rep.)
17 Section 90-75. The Illinois Horse Racing Act of 1975 is 
18amended by repealing Section 54.

19
ARTICLE 99.


20 Section 99-97. Severability. The provisions of this Act are 
21severable under Section 1.31 of the Statute on Statutes.

 
 
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1 Section 99-99. Effective date. This Act takes effect upon 
2becoming law.".