Bill Text: IL HB2498 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses at county fairs and standardbred horses. Provides that the Illinois Racing Board shall submit a report to the General Assembly on or before December 31, 2018 that examines the feasibility of conducting electronic gaming at the Illinois State Fairgrounds. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability provision. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2017-03-31 - House Committee Amendment No. 1 Rule 19(a) / Re-referred to Rules Committee [HB2498 Detail]

Download: Illinois-2017-HB2498-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2498

Introduced , by Rep. Chad Hays

SYNOPSIS AS INTRODUCED:
See Index

Creates the Chicago Casino Development Authority Act. Provides for the creation of the Chicago Casino Development Authority, whose duties include promotion and maintenance of a casino. Amends the Illinois Horse Racing Act of 1975 and the Riverboat Gambling Act to authorize electronic gaming at race tracks (and makes conforming changes in various Acts). Further amends the Illinois Horse Racing Act of 1975. Makes various changes concerning Board members. Contains provisions concerning testing of horses at county fairs and standardbred horses. Provides that the Illinois Racing Board shall submit a report to the General Assembly on or before December 31, 2018 that examines the feasibility of conducting electronic gaming at the Illinois State Fairgrounds. Further amends the Riverboat Gambling Act. Changes the short title to the Illinois Gambling Act and changes corresponding references to the Act. Adds additional owners licenses, one of which authorizes the conduct of casino gambling in the City of Chicago. Makes changes in provisions concerning the admission tax and privilege tax. Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act to prohibit political contributions from certain licensees. Makes other changes. Contains a severability provision. Effective immediately.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB2498LRB100 03891 AMC 13896 b
1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
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 1-2. Legislative intent.
9 (a) This Act is intended to benefit the people of the City
10of Chicago and the State of Illinois by assisting economic
11development and promoting tourism and by increasing the amount
12of revenues available to the City and the State to assist and
13support education.
14 (b) While authorization of casino gambling in Chicago will
15enhance investment, development, and tourism in Illinois, it is
16recognized that it will do so successfully only if public
17confidence and trust in the credibility and integrity of the
18gambling operations and the regulatory process is maintained.
19Therefore, the provisions of this Act are designed to allow the
20Illinois Gaming Board to strictly regulate the facilities,
21persons, associations, and practices related to gambling
22operations pursuant to the police powers of the State,

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1including comprehensive law enforcement supervision.
2Consistent with the Gaming Board's authority, the Gaming Board
3alone shall regulate any Chicago casino, just as it now
4regulates every other casino in Illinois.
5 Section 1-5. Definitions. As used in this Act:
6 "Authority" means the Chicago Casino Development Authority
7created by this Act.
8 "Casino" means one temporary land-based or water-based
9facility and one permanent land-based or water-based facility
10and airport gaming locations pursuant to Section 1-67 of this
11Act at which lawful gambling is authorized and licensed as
12provided in the Illinois Gambling Act.
13 "Casino Board" means the board appointed pursuant to this
14Act to govern and control the Authority.
15 "Casino management contract" means a legally binding
16agreement between the Authority and a casino operator licensee
17to operate or manage a casino.
18 "Casino operator licensee" means any person or entity
19selected by the Authority and approved and licensed by the
20Gaming Board to manage and operate a casino within the City of
21Chicago pursuant to a casino management contract.
22 "City" means the City of Chicago.
23 "Entity" means a corporation, joint venture, partnership,
24limited liability company, trust, or unincorporated
25association.

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1 "Executive director" means the person appointed by the
2Casino Board to oversee the daily operations of the Authority.
3 "Gaming Board" means the Illinois Gaming Board created by
4the Illinois Gambling Act.
5 "Mayor" means the Mayor of the City.
6 Section 1-12. Creation of the Authority. There is hereby
7created a political subdivision, unit of local government with
8only the powers authorized by law, body politic, and municipal
9corporation, by the name and style of the Chicago Casino
10Development Authority.
11 Section 1-13. Duties of the Authority. It shall be the duty
12of the Authority, as an owners licensee under the Illinois
13Gambling Act, to promote and maintain a casino in the City. The
14Authority shall own, acquire, construct, lease, equip, and
15maintain grounds, buildings, and facilities for that purpose.
16However, the Authority shall contract with a casino operator
17licensee to manage and operate the casino and in no event shall
18the Authority or City manage or operate the casino. The
19Authority may contract pursuant to the procedures set forth in
20Section 1-115 with other third parties in order to fulfill its
21purpose. The Authority is responsible for the payment of any
22fees required of a casino operator under subsection (a) of
23Section 7.9 of the Illinois Gambling Act if the casino operator
24licensee is late in paying any such fees. The Authority is

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1granted all rights and powers necessary to perform such duties.
2Subject to the provisions of this Act, the Authority and casino
3operator licensee are subject to the Illinois Gambling Act and
4all of the rules of the Gaming Board, which shall be applied to
5the Authority and the casino operator licensee in a manner
6consistent with that of other owners licensees under the
7Illinois Gambling Act. Nothing in this Act shall confer
8regulatory authority on the Chicago Casino Development
9Authority. The Illinois Gaming Board shall have exclusive
10regulatory authority over all gambling operations governed by
11this Act.
12 Section 1-15. Casino Board.
13 (a) The governing and administrative powers of the
14Authority shall be vested in a body known as the Chicago Casino
15Development Board. The Casino Board shall consist of 5 members
16appointed by the Mayor. One of these members shall be
17designated by the Mayor to serve as chairperson. All of the
18members appointed by the Mayor shall be residents of the City.
19 Each Casino Board appointee shall be subject to a
20preliminary background investigation completed by the Gaming
21Board within 30 days after the appointee's submission of his or
22her application to the Gaming Board. If the Gaming Board
23determines that there is a substantial likelihood that it will
24not find the appointee to be suitable to serve on the Casino
25Board (applying the same standards for suitability to the

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1appointee as the Gaming Board would apply to an owners licensee
2key person under the Gaming Board's adopted rules), then the
3Gaming Board shall provide a written notice of such
4determination to the appointee and the Corporation Counsel of
5the City. The Mayor may then appoint a new candidate. If no
6such notice is delivered with respect to a particular
7appointee, then commencing on the 31st day following the date
8of the appointee's submission of his or her application to the
9Gaming Board, the appointee shall be deemed an acting member of
10the Casino Board and shall participate as a Casino Board
11member.
12 Each appointee shall be subject to a full background
13investigation and final approval by the Gaming Board prior to
14the opening of the casino. The Gaming Board shall complete its
15full background investigation of the Casino Board appointee
16within 3 months after the date of the appointee's submission of
17his or her application to the Gaming Board. If the Gaming Board
18does not complete its background investigation within the
193-month period, then the Gaming Board shall give a written
20explanation to the appointee, as well as the Mayor, the
21Governor, the President of the Senate, and the Speaker of the
22House of Representatives, as to why it has not reached a final
23determination and set forth a reasonable time when such
24determination shall be made.
25 (b) Casino Board members shall receive $300 for each day
26the Authority meets and shall be entitled to reimbursement of

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1reasonable expenses incurred in the performance of their
2official duties. A Casino Board member who serves in the office
3of secretary-treasurer may also receive compensation for
4services provided as that officer.
5 Section 1-20. Terms of appointments; resignation and
6removal.
7 (a) The Mayor shall appoint 2 members of the Casino Board
8for an initial term expiring July 1 of the year following final
9approval by the Gaming Board, 2 members for an initial term
10expiring July 1 three years following final approval by the
11Gaming Board, and one member for an initial term expiring July
121 five years following final approval by the Gaming Board.
13 (b) All successors shall be appointed by the Mayor to hold
14office for a term of 5 years from the first day of July of the
15year in which they are appointed, except in the case of an
16appointment to fill a vacancy. Each member, including the
17chairperson, shall hold office until the expiration of his or
18her term and until his or her successor is appointed and
19qualified. Nothing shall preclude a member from serving
20consecutive terms. Any member may resign from office, to take
21effect when a successor has been appointed and qualified. A
22vacancy in office shall occur in the case of a member's death
23or indictment, conviction, or plea of guilty to a felony. A
24vacancy shall be filled for the unexpired term by the Mayor
25subject to the approval of the Gaming Board as provided in this

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1Section.
2 (c) Members of the Casino Board shall serve at the pleasure
3of the Mayor. The Mayor or the Gaming Board may remove any
4member of the Casino Board upon a finding of incompetence,
5neglect of duty, or misfeasance or malfeasance in office or for
6a violation of this Act. The Gaming Board may remove any member
7of the Casino Board for any violation of the Illinois Gambling
8Act or the rules and regulations of the Gaming Board.
9 (d) No member of the Casino Board shall engage in any
10political activity. For the purpose of this Section, "political
11activity" means any activity in support of or in connection
12with any campaign for federal, State, or local elective office
13or any political organization, but does not include activities
14(i) relating to the support or opposition of any executive,
15legislative, or administrative action, as those terms are
16defined in Section 2 of the Lobbyist Registration Act, (ii)
17relating to collective bargaining, or (iii) that are otherwise
18in furtherance of the person's official duties or governmental
19and public service functions.
20 Section 1-25. Organization of Casino Board; meetings.
21After appointment by the Mayor, the Casino Board shall organize
22for the transaction of business, provided that the Casino Board
23shall not take any formal action until after the Gaming Board
24has completed its preliminary background investigation of at
25least a quorum of the Casino Board as provided in subsection

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1(a) of Section 1-15. The Casino Board shall prescribe the time
2and place for meetings, the manner in which special meetings
3may be called, and the notice that must be given to members.
4All actions and meetings of the Casino Board shall be subject
5to the provisions of the Open Meetings Act. Three members of
6the Casino Board shall constitute a quorum. All substantive
7action of the Casino Board shall be by resolution with an
8affirmative vote of a majority of the members.
9 Section 1-30. Executive director; officers.
10 (a) The Casino Board shall appoint an executive director,
11who shall be the chief executive officer of the Authority.
12 The executive director shall be subject to a preliminary
13background investigation to be completed by the Gaming Board
14within 30 days after the executive director's submission of his
15or her application to the Gaming Board. If the Gaming Board
16determines that there is a substantial likelihood that it will
17not find the executive director to be suitable to serve in that
18position (applying the same standards for suitability as the
19Gaming Board would apply to an owners licensee key person under
20the Gaming Board's adopted rules), then the Gaming Board shall
21provide a written notice of such determination to the appointee
22and the Corporation Counsel of the City. The Casino Board may
23then appoint a new executive director. If no such notice is
24delivered, then commencing on the 31st day following the date
25of the executive director's submission of his or her

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1application to the Gaming Board, the executive director shall
2commence all duties as the acting executive director of the
3Authority.
4 The executive director shall be subject to a full
5background investigation and final approval by the Gaming Board
6prior to the opening of the casino. The Gaming Board shall
7complete its full background investigation of the executive
8director within 3 months after the date of the executive
9director's submission of his or her application to the Gaming
10Board. If the Gaming Board does not complete its background
11investigation within the 3-month period, then the Gaming Board
12shall give a written explanation to the appointee, as well as
13the Mayor, the Governor, the President of the Senate, and the
14Speaker of the House of Representatives, as to why it has not
15reached a final determination and set forth a reasonable time
16when such determination shall be made.
17 (b) The Casino Board shall fix the compensation of the
18executive director. Subject to the general control of the
19Casino Board, the executive director shall be responsible for
20the management of the business, properties, and employees of
21the Authority. The executive director shall direct the
22enforcement of all resolutions, rules, and regulations of the
23Casino Board, and shall perform such other duties as may be
24prescribed from time to time by the Casino Board. All employees
25and independent contractors, consultants, engineers,
26architects, accountants, attorneys, financial experts,

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1construction experts and personnel, superintendents, managers,
2and other personnel appointed or employed pursuant to this Act
3shall report to the executive director. In addition to any
4other duties set forth in this Act, the executive director
5shall do or shall delegate to an employee or agent of the
6Authority to do all of the following:
7 (1) Direct and supervise the administrative affairs
8 and activities of the Authority in accordance with its
9 rules, regulations, and policies.
10 (2) Attend meetings of the Casino Board.
11 (3) Keep minutes of all proceedings of the Casino
12 Board.
13 (4) Approve all accounts for salaries, per diem
14 payments, and allowable expenses of the Casino Board and
15 its employees and consultants.
16 (5) Report and make recommendations to the Casino Board
17 concerning the terms and conditions of any casino
18 management contract.
19 (6) Perform any other duty that the Casino Board
20 requires for carrying out the provisions of this Act.
21 (7) Devote his or her full time to the duties of the
22 office and not hold any other office or employment.
23 (c) The Casino Board may select a secretary-treasurer and
24other officers to hold office at the pleasure of the Casino
25Board. The Casino Board shall fix the duties of such officers.

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1 Section 1-31. General rights and powers of the Authority.
2 (a) In addition to the duties and powers set forth in this
3Act, the Authority shall have the following rights and powers:
4 (1) Adopt and alter an official seal.
5 (2) Establish and change its fiscal year.
6 (3) Sue and be sued, plead and be impleaded, all in its
7 own name, and agree to binding arbitration of any dispute
8 to which it is a party.
9 (4) Adopt, amend, and repeal bylaws, rules, and
10 regulations consistent with the furtherance of the powers
11 and duties provided for.
12 (5) Maintain its principal office within the City and
13 such other offices as the Casino Board may designate.
14 (6) Select locations in the City for a temporary and a
15 permanent casino.
16 (7) Subject to the bidding procedures of Section 1-115
17 of this Act, retain or employ, either as regular employees
18 or independent contractors, consultants, engineers,
19 architects, accountants, attorneys, financial experts,
20 construction experts and personnel, superintendents,
21 managers and other professional personnel, and such other
22 personnel as may be necessary in the judgment of the Casino
23 Board, and fix their compensation; however, employees of
24 the Authority shall be hired pursuant to and in accordance
25 with the rules and policies the Authority may adopt.
26 (8) Pursuant to Section 1-115 of this Act, own,

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1 acquire, construct, equip, lease, operate, manage, and
2 maintain grounds, buildings, and facilities to carry out
3 its corporate purposes and duties.
4 (9) Pursuant to Section 1-115, and subject to the
5 oversight, review, and approval of the Gaming Board, enter
6 into, revoke, and modify contracts in accordance with the
7 rules of the Gaming Board as consistently applied to all
8 owners licensees under the Illinois Gambling Act, provided
9 that the Authority may enter into contracts for the design,
10 construction, and outfitting of a temporary casino prior to
11 the Gaming Board's final approval of the Authority's
12 executive director and the members of the Casino Board and
13 prior to the Gaming Board's issuance of the Authority's
14 owners license. Provided further that the entities
15 selected by the Authority for the design, construction, and
16 outfitting of the temporary casino shall be subject to a
17 preliminary background investigation to be completed by
18 the Gaming Board within 30 days after the Gaming Board is
19 provided the identities of the entities. If the Gaming
20 Board determines that there is a substantial likelihood
21 that the entities are not suitable or acceptable to perform
22 their respective functions, then the Gaming Board shall
23 immediately provide notice of that determination to the
24 Authority. If no such notice is delivered, then, commencing
25 on the 31st day following the date on which the information
26 identifying such entities is provided to the Gaming Board,

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1 such entities shall be permitted to commence the services
2 contemplated for the design, construction, and outfitting
3 of the temporary casino. In no event, however, shall the
4 Authority open a casino until after the Gaming Board has
5 finally approved the Authority's executive director and
6 the members of the Casino Board and the Gaming Board has
7 issued the Authority's owners license and the casino
8 operator's casino operator license.
9 (10) Enter into a casino management contract subject to
10 the provisions of Section 1-45 of this Act.
11 (11) Negotiate and enter into intergovernmental
12 agreements with the State and its agencies, the City, and
13 other units of local government, in furtherance of the
14 powers and duties of the Casino Board.
15 (12) Receive and disburse funds for its own corporate
16 purposes or as otherwise specified in this Act.
17 (13) Borrow money from any source, public or private,
18 for any corporate purpose, including, without limitation,
19 working capital for its operations, reserve funds, or
20 payment of interest, and to mortgage, pledge, or otherwise
21 encumber the property or funds of the Authority and to
22 contract with or engage the services of any person in
23 connection with any financing, including financial
24 institutions, issuers of letters of credit, or insurers and
25 enter into reimbursement agreements with this person or
26 entity which may be secured as if money were borrowed from

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1 the person or entity.
2 (14) Issue bonds as provided for under this Act.
3 (15) Receive and accept from any source, private or
4 public, contributions, gifts, or grants of money or
5 property to the Authority.
6 (16) Provide for the insurance of any property,
7 operations, officers, members, agents, or employees of the
8 Authority against any risk or hazard, to self-insure or
9 participate in joint self-insurance pools or entities to
10 insure against such risk or hazard, and to provide for the
11 indemnification of its officers, members, employees,
12 contractors, or agents against any and all risks.
13 (17) Exercise all the corporate powers granted
14 Illinois corporations under the Business Corporation Act
15 of 1983, except to the extent that powers are inconsistent
16 with those of a body politic and municipal corporation.
17 (18) Do all things necessary or convenient to carry out
18 the powers granted by this Act.
19 (b) The Casino Board shall comply with all applicable legal
20requirements imposed on other owners licensees to conduct all
21background investigations required under the Illinois Gambling
22Act and the rules of the Gaming Board. This requirement shall
23also extend to senior legal, financial, and administrative
24staff of the Authority.
25 Section 1-32. Ethical conduct.

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1 (a) Casino Board members and employees of the Authority
2must carry out their duties and responsibilities in such a
3manner as to promote and preserve public trust and confidence
4in the integrity and conduct of gaming.
5 (b) Except as may be required in the conduct of official
6duties, Casino Board members and employees of the Authority
7shall not engage in gambling on any riverboat, in any casino,
8or in an electronic gaming facility licensed by the Illinois
9Gaming Board or engage in legalized gambling in any
10establishment identified by Gaming Board action that, in the
11judgment of the Gaming Board, could represent a potential for a
12conflict of interest.
13 (c) A Casino Board member or employee of the Authority
14shall not use or attempt to use his or her official position to
15secure or attempt to secure any privilege, advantage, favor, or
16influence for himself or herself or others.
17 (d) Casino Board members and employees of the Authority
18shall not hold or pursue employment, office, position,
19business, or occupation that may conflict with his or her
20official duties. Employees may engage in other gainful
21employment so long as that employment does not interfere or
22conflict with their duties. Such employment must be disclosed
23to the executive director and approved by the Casino Board.
24 (e) Casino Board members, employees of the Authority, and
25elected officials and employees of the City may not engage in
26employment, communications, or any activity identified by the

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1Casino Board or Gaming Board that, in the judgment of either
2entity, could represent the potential for or the appearance of
3a conflict of interest.
4 (f) Casino Board members, employees of the Authority, and
5elected officials and employees of the City may not have a
6financial interest, directly or indirectly, in his or her own
7name or in the name of any other person, partnership,
8association, trust, corporation, or other entity in any
9contract or subcontract for the performance of any work for the
10Authority. This prohibition shall extend to the holding or
11acquisition of an interest in any entity identified by the
12Casino Board or the Gaming Board that, in the judgment of
13either entity, could represent the potential for or the
14appearance of a financial interest. The holding or acquisition
15of an interest in such entities through an indirect means, such
16as through a mutual fund, shall not be prohibited, except that
17the Gaming Board may identify specific investments or funds
18that, in its judgment, are so influenced by gaming holdings as
19to represent the potential for or the appearance of a conflict
20of interest.
21 (g) Casino Board members, employees of the Authority, and
22elected officials and employees of the City may not accept any
23gift, gratuity, service, compensation, travel, lodging, or
24thing of value, with the exception of unsolicited items of an
25incidental nature, from any person, corporation, or entity
26doing business with the Authority.

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1 (h) No Casino Board member, employee of the Authority, or
2elected official or employee of the City may, during employment
3or within a period of 2 years immediately after termination of
4employment, knowingly accept employment or receive
5compensation or fees for services from a person or entity, or
6its parent or affiliate, that has engaged in business with the
7Authority that resulted in contracts with an aggregate value of
8at least $25,000 or if that Casino Board member or employee has
9made a decision that directly applied to the person or entity,
10or its parent or affiliate.
11 (i) A spouse, child, or parent of a Casino Board member,
12employee of the Authority, or elected official or employee of
13the City may not have a financial interest, directly or
14indirectly, in his or her own name or in the name of any other
15person, partnership, association, trust, corporation, or other
16entity in any contract or subcontract for the performance of
17any work for the Authority. This prohibition shall extend to
18the holding or acquisition of an interest in any entity
19identified by the Casino Board or Gaming Board that, in the
20judgment of either entity, could represent the potential for or
21the appearance of a conflict of interest. The holding or
22acquisition of an interest in such entities through an indirect
23means, such as through a mutual fund, shall not be prohibited,
24except that the Gaming Board may identify specific investments
25or funds that, in its judgment, are so influenced by gaming
26holdings as to represent the potential for or the appearance of

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1a conflict of interest.
2 (j) A spouse, child, or parent of a Casino Board member,
3employee of the Authority, or elected official or employee of
4the City may not accept any gift, gratuity, service,
5compensation, travel, lodging, or thing of value, with the
6exception of unsolicited items of an incidental nature, from
7any person, corporation, or entity doing business with the
8Authority.
9 (k) A spouse, child, or parent of a Casino Board member,
10employee of the Authority, or elected official or employee of
11the City may not, while the person is a Board member or
12employee of the spouse or within a period of 2 years
13immediately after termination of employment, knowingly accept
14employment or receive compensation or fees for services from a
15person or entity, or its parent or affiliate, that has engaged
16in business with the Authority that resulted in contracts with
17an aggregate value of at least $25,000 or if that Casino Board
18member, employee, or elected official or employee of the City
19has made a decision that directly applied to the person or
20entity, or its parent or affiliate.
21 (l) No Casino Board member, employee of the Authority, or
22elected official or employee of the City may attempt, in any
23way, to influence any person or entity doing business with the
24Authority or any officer, agent, or employee thereof to hire or
25contract with any person or entity for any compensated work.
26 (m) No Casino Board member, employee of the Authority, or

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1elected official or employee of the City shall use or attempt
2to use his or her official position to secure, or attempt to
3secure, any privilege, advantage, favor, or influence for
4himself or herself or others. No Casino Board member, employee
5of the Authority, or elected official or employee of the City
6shall, within one year immediately preceding appointment by the
7Mayor or employment, have been employed or received
8compensation or fees for services from a person or entity, or
9its parent or affiliate, that has engaged in business with the
10Casino Board, a licensee under this Act, or a licensee under
11the Illinois Gambling Act.
12 (n) Any communication between an elected official of the
13City and any applicant for or party to a casino management
14contract with the Authority, or an officer, director, or
15employee thereof, concerning any matter relating in any way to
16gaming or the Authority shall be disclosed to the Casino Board
17and the Gaming Board. Such disclosure shall be in writing by
18the official within 30 days after the communication and shall
19be filed with the Casino Board and the Gaming Board. Disclosure
20must consist of the date of the communication, the identity and
21job title of the person with whom the communication was made, a
22brief summary of the communication, the action requested or
23recommended, all responses made, the identity and job title of
24the person making the response, and any other pertinent
25information. In addition, if the communication is written or
26digital, then the entire communication shall be disclosed.

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1 Public disclosure of the written summary provided to the
2Casino Board and the Gaming Board shall be subject to the
3exemptions provided under Section 7 of the Freedom of
4Information Act.
5 This subsection (n) shall not apply to communications
6regarding traffic, law enforcement, security, environmental
7issues, City services, transportation, or other routine
8matters concerning the ordinary operations of the casino.
9 (o) For purposes of this Section:
10 "Ordinary operations" means operations relating to the
11casino facility other than the conduct of gambling activities.
12 "Routine matters" includes the application for, issuance,
13renewal, and other processes associated with City permits and
14licenses.
15 "Employee of the City" means only those employees of the
16City who provide services to the Authority or otherwise
17influence the decisions of the Authority or the Casino Board.
18 (p) Any Casino Board member or employee of the Authority
19who violates any provision of this Section is guilty of a Class
204 felony.
21 Section 1-45. Casino management contracts.
22 (a) In accordance with all applicable procurement laws and
23rules, the Casino Board shall develop and administer a
24competitive sealed bidding process for the selection of a
25potential casino operator licensee to develop or operate a

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1casino within the City. The Casino Board shall issue one or
2more requests for proposals. The Casino Board may establish
3minimum financial and investment requirements to determine the
4eligibility of persons to respond to the Casino Board's
5requests for proposals, and may establish and consider such
6other criteria as it deems appropriate. The Casino Board may
7impose a reasonable fee upon persons who respond to requests
8for proposals, in order to reimburse the Casino Board for its
9costs in preparing and issuing the requests and reviewing the
10proposals. At least 30 days prior to the commencement of the
11competitive bidding process, the Gaming Board shall be given an
12opportunity to review the competitive bidding process
13established by the Casino Board. During the competitive bidding
14process, the Casino Board shall keep the Gaming Board apprised
15of the process and the responses received in connection with
16the Casino Board's requests for proposals.
17 (b) Within 5 business days after the time limit for
18submitting bids and proposals has passed, the Casino Board
19shall make all bids and proposals public, provided, however,
20the Casino Board shall not be required to disclose any
21information which would be exempt from disclosure under Section
227 of the Freedom of Information Act. Thereafter, the Casino
23Board shall evaluate the responses to its requests for
24proposals and the ability of all persons or entities responding
25to its requests for proposals to meet the requirements of this
26Act and any relevant provisions of the Illinois Gambling Act

HB2498- 22 -LRB100 03891 AMC 13896 b
1and to undertake and perform the obligations set forth in its
2requests for proposals.
3 (c) After reviewing proposals and selecting a successful
4bidder, the Casino Board shall enter into a casino management
5contract with the successful bidder authorizing the operation
6of a casino. The casino operator shall be subject to a
7background investigation and approval by the Gaming Board. The
8Gaming Board shall complete its background investigation and
9approval of the casino operator within 6 months after the date
10that the proposed casino operator submits its application to
11the Gaming Board. If the Gaming Board does not complete its
12background investigation and approval within the 6-month
13period, then the Gaming Board shall give a written explanation
14to the proposed casino operator and the chief legal officer of
15the Authority as to why it has not reached a final
16determination and when it reasonably expects to make a final
17determination. Validity of the casino management contract is
18contingent upon the issuance of a casino operator license to
19the successful bidder. If the Gaming Board grants a casino
20operator license, the Casino Board shall transmit a copy of the
21executed casino management contract to the Gaming Board.
22 (d) After (1) the Authority has been issued an owners
23license, (2) the Gaming Board has issued a casino operator
24license, and (3) the Gaming Board has approved the members of
25the Casino Board, the Authority may conduct gaming operations
26at a temporary facility, subject to the adopted rules of the

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1Gaming Board, for no longer than 24 months after gaming
2operations begin. The Gaming Board may, after holding a public
3hearing, grant an extension so long as a permanent facility is
4not operational and the Authority is working in good faith to
5complete the permanent facility. The Gaming Board may grant
6additional extensions following further public hearings. Each
7extension may be for a period of no longer than 6 months.
8 (e) Fifty percent of any initial consideration received by
9the Authority that was paid as an inducement pursuant to a bid
10for a casino management contract or an executed casino
11management contract must be transmitted to the State and
12deposited into the Gaming Facilities Fee Revenue Fund. The
13initial consideration shall not include (1) any amounts paid to
14the Authority as reimbursement for its costs in preparing or
15issuing the requests for proposals and reviewing the proposals
16or (2) any amounts loaned to the Authority or paid by an entity
17on behalf of the Authority for the design, construction,
18outfitting, or equipping of the casino, pre-opening expenses,
19bank roll or similar expenses required to open and operate the
20casino, or any license or per position fees imposed pursuant to
21the Illinois Gambling Act or any other financial obligation of
22the Authority.
23 Section 1-47. Freedom of Information Act. The Authority
24shall be a public body as defined in the Freedom of Information
25Act and shall be subject to the provisions of the Freedom of

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1Information Act.
2 Section 1-50. Transfer of funds. The revenues received by
3the Authority (other than amounts required to be paid pursuant
4to the Illinois Gambling Act and amounts required to pay the
5operating expenses of the Authority, to pay amounts due the
6casino operator licensee pursuant to a casino management
7contract, to repay any borrowing of the Authority made pursuant
8to Section 1-31, to pay debt service on any bonds issued under
9Section 1-75, and to pay any expenses in connection with the
10issuance of such bonds pursuant to Section 1-75 or derivative
11products pursuant to Section 1-85) shall be transferred to the
12City by the Authority. Moneys transferred to the City pursuant
13to this Section shall be expended or obligated by the City for
14the construction, maintenance, and modernization of schools.
15 Section 1-60. Auditor General.
16 (a) Prior to the issuance of bonds under this Act, the
17Authority shall submit to the Auditor General a certification
18that:
19 (1) it is legally authorized to issue bonds;
20 (2) scheduled annual payments of principal and
21 interest on the bonds to be issued meet the requirements of
22 Section 1-75 of this Act;
23 (3) no bond shall mature later than 30 years; and
24 (4) after payment of costs of issuance and necessary

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1 deposits to funds and accounts established with respect to
2 debt service on the bonds, the net bond proceeds (exclusive
3 of any proceeds to be used to refund outstanding bonds)
4 will be used only for the purposes set forth in this Act.
5 The Authority also shall submit to the Auditor General its
6projections on revenues to be generated and pledged to
7repayment of the bonds as scheduled and such other information
8as the Auditor General may reasonably request.
9 The Auditor General shall examine the certifications and
10information submitted and submit a report to the Authority and
11the Gaming Board indicating whether the required
12certifications, projections, and other information have been
13submitted by the Authority and whether the assumptions
14underlying the projections are not unreasonable in the
15aggregate. The Auditor General shall submit the report no later
16than 60 days after receiving the information required to be
17submitted by the Authority.
18 The Auditor General shall submit a bill to the Authority
19for costs associated with the examinations and report required
20under this Section. The Authority shall reimburse in a timely
21manner.
22 (b) The Authority shall enter into an intergovernmental
23agreement with the Auditor General authorizing the Auditor
24General to, every 2 years, (i) review the financial audit of
25the Authority performed by the Authority's certified public
26accountants, (ii) perform a management audit of the Authority,

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1and (iii) perform a management audit of the casino operator
2licensee. The Auditor General shall provide the Authority and
3the General Assembly with the audits and shall post on his or
4her Internet website such portions of the audit or other
5financial information as generally would be made publicly
6available for other owners licensees under the Illinois
7Gambling Act. The Auditor General shall submit a bill to the
8Authority for costs associated with the review and the audit
9required under this Section, which costs shall not exceed
10$100,000, and the Authority shall reimburse the Auditor General
11for such costs in a timely manner.
12 Section 1-62. Advisory committee. An Advisory Committee is
13established to monitor, review, and report on (1) the
14Authority's utilization of minority-owned business enterprises
15and female-owned business enterprises, (2) employment of
16females, and (3) employment of minorities with regard to the
17development and construction of the casino as authorized under
18Section 7 of the Illinois Gambling Act. The Authority shall
19work with the Advisory Committee in accumulating necessary
20information for the Committee to submit reports, as necessary,
21to the General Assembly and to the City.
22 The Committee shall consist of 9 members as provided in
23this Section. Five members shall be selected by the Governor
24and 4 members shall be selected by the Mayor. The Governor and
25Mayor shall each appoint at least one current member of the

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1General Assembly. The Advisory Committee shall meet
2periodically and shall report the information to the Mayor of
3the City and to the General Assembly by December 31st of every
4year.
5 The Advisory Committee shall be dissolved on the date that
6casino gambling operations are first conducted at a permanent
7facility under the license authorized under Section 7 of the
8Illinois Gambling Act. For the purposes of this Section, the
9terms "female" and "minority person" have the meanings provided
10in Section 2 of the Business Enterprise for Minorities,
11Females, and Persons with Disabilities Act.
12 Section 1-65. Acquisition of property; eminent domain
13proceedings. For the lawful purposes of this Act, the City may
14acquire, by eminent domain or by condemnation proceedings in
15the manner provided by the Eminent Domain Act, real or personal
16property or interests in real or personal property located in
17the City, and the City may convey to the Authority property so
18acquired. The acquisition of property under this Section is
19declared to be for a public use.
20 Section 1-67. Limitations on gaming at Chicago airports.
21The Authority may conduct gaming operations in an airport under
22the administration or control of the Chicago Department of
23Aviation. Gaming operations may be conducted pursuant to this
24Section so long as (i) gaming operations are conducted in a

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1secured area that is beyond the Transportation Security
2Administration security checkpoints and only available to
3airline passengers at least 21 years of age who are members of
4a private club, and not to the general public, (ii) gaming
5operations are limited to slot machines, as defined in Section
64 of the Illinois Gambling Act, and (iii) the combined number
7of gaming positions operating in the City at the airports and
8at the temporary and permanent casino facility does not exceed
9the maximum number of gaming positions authorized pursuant to
10subsection (h) of Section 7 of the Illinois Gambling Act.
11Gaming operations at an airport are subject to all applicable
12laws and rules that apply to any other gaming facility under
13this Act or the Illinois Gambling Act.
14 Section 1-70. Local regulation. In addition to this Act,
15the Illinois Gambling Act, and all of the rules of the Gaming
16Board, the casino facilities and operations therein shall be
17subject to all ordinances and regulations of the City. The
18construction, development, and operation of the casino shall
19comply with all ordinances, regulations, rules, and controls of
20the City, including, but not limited to, those relating to
21zoning and planned development, building, fire prevention, and
22land use. However, the regulation of gaming operations is
23subject to the exclusive jurisdiction of the Gaming Board. The
24Gaming Board shall be responsible for the investigation for and
25issuance of all licenses required by this Act and the Illinois

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1Gambling Act.
2 Section 1-75. Borrowing.
3 (a) The Authority may borrow money and issue bonds as
4provided in this Section. Bonds of the Authority may be issued
5to provide funds for land acquisition, site assembly and
6preparation, and the design and construction of the casino, as
7defined in the Illinois Gambling Act, all ancillary and related
8facilities comprising the casino complex, and all on-site and
9off-site infrastructure improvements required in connection
10with the development of the casino; to refund (at the time or
11in advance of any maturity or redemption) or redeem any bonds
12of the Authority; to provide or increase a debt service reserve
13fund or other reserves with respect to any or all of its bonds;
14or to pay the legal, financial, administrative, bond insurance,
15credit enhancement, and other legal expenses of the
16authorization, issuance, or delivery of bonds. In this Act, the
17term "bonds" also includes notes of any kind, interim
18certificates, refunding bonds, or any other evidence of
19obligation for borrowed money issued under this Section. Bonds
20may be issued in one or more series and may be payable and
21secured either on a parity with or separately from other bonds.
22 (b) The bonds of the Authority shall be payable from one or
23more of the following sources: (i) the property or revenues of
24the Authority; (ii) revenues derived from the casino; (iii)
25revenues derived from any casino operator licensee; (iv) fees,

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1bid proceeds, charges, lease payments, payments required
2pursuant to any casino management contract or other revenues
3payable to the Authority, or any receipts of the Authority; (v)
4payments by financial institutions, insurance companies, or
5others pursuant to letters or lines of credit, policies of
6insurance, or purchase agreements; (vi) investment earnings
7from funds or accounts maintained pursuant to a bond resolution
8or trust indenture; (vii) proceeds of refunding bonds; (viii)
9any other revenues derived from or payments by the City; and
10(ix) any payments by any casino operator licensee or others
11pursuant to any guaranty agreement.
12 (c) Bonds shall be authorized by a resolution of the
13Authority and may be secured by a trust indenture by and
14between the Authority and a corporate trustee or trustees,
15which may be any trust company or bank having the powers of a
16trust company within or without the State. Bonds shall meet the
17following requirements:
18 (1) Bonds may bear interest payable at any time or
19 times and at any rate or rates, notwithstanding any other
20 provision of law to the contrary, and may be subject to
21 such other terms and conditions as may be provided by the
22 resolution or indenture authorizing the issuance of such
23 bonds.
24 (2) Bonds issued pursuant to this Section may be
25 payable on such dates and times as may be provided for by
26 the resolution or indenture authorizing the issuance of

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1 such bonds; provided, however, that such bonds shall mature
2 no later than 30 years from the date of issuance.
3 (3) Bonds issued pursuant to this Section may be sold
4 pursuant to notice of sale and public bid or by negotiated
5 sale.
6 (4) Bonds shall be payable at a time or times, in the
7 denominations and form, including book entry form, either
8 coupon, registered, or both, and carry the registration and
9 privileges as to exchange, transfer or conversion, and
10 replacement of mutilated, lost, or destroyed bonds as the
11 resolution or trust indenture may provide.
12 (5) Bonds shall be payable in lawful money of the
13 United States at a designated place.
14 (6) Bonds shall be subject to the terms of purchase,
15 payment, redemption, refunding, or refinancing that the
16 resolution or trust indenture provides.
17 (7) Bonds shall be executed by the manual or facsimile
18 signatures of the officers of the Authority designated by
19 the Board, which signatures shall be valid at delivery even
20 for one who has ceased to hold office.
21 (8) Bonds shall be sold at public or private sale in
22 the manner and upon the terms determined by the Authority.
23 (9) Bonds shall be issued in accordance with the
24 provisions of the Local Government Debt Reform Act.
25 (d) The Authority shall adopt a procurement program with
26respect to contracts relating to underwriters, bond counsel,

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1financial advisors, and accountants. The program shall include
2goals for the payment of not less than 30% of the total dollar
3value of the fees from these contracts to minority-owned
4businesses and female-owned businesses as defined in the
5Business Enterprise for Minorities, Females, and Persons with
6Disabilities Act. The Authority shall conduct outreach to
7minority-owned businesses and female-owned businesses.
8Outreach shall include, but is not limited to, advertisements
9in periodicals and newspapers, mailings, and other appropriate
10media. The Authority shall submit to the General Assembly a
11comprehensive report that shall include, at a minimum, the
12details of the procurement plan, outreach efforts, and the
13results of the efforts to achieve goals for the payment of
14fees.
15 (e) Subject to the Illinois Gambling Act and rules of the
16Gaming Board regarding pledging of interests in holders of
17owners licenses, any resolution or trust indenture may contain
18provisions that may be a part of the contract with the holders
19of the bonds as to the following:
20 (1) Pledging, assigning, or directing the use,
21 investment, or disposition of revenues of the Authority or
22 proceeds or benefits of any contract, including without
23 limitation any rights in any casino management contract.
24 (2) The setting aside of loan funding deposits, debt
25 service reserves, replacement or operating reserves, cost
26 of issuance accounts and sinking funds, and the regulation,

HB2498- 33 -LRB100 03891 AMC 13896 b
1 investment, and disposition thereof.
2 (3) Limitations on the purposes to which or the
3 investments in which the proceeds of sale of any issue of
4 bonds or the Authority's revenues and receipts may be
5 applied or made.
6 (4) Limitations on the issue of additional bonds, the
7 terms upon which additional bonds may be issued and
8 secured, the terms upon which additional bonds may rank on
9 a parity with, or be subordinate or superior to, other
10 bonds.
11 (5) The refunding, advance refunding, or refinancing
12 of outstanding bonds.
13 (6) The procedure, if any, by which the terms of any
14 contract with bondholders may be altered or amended and the
15 amount of bonds and holders of which must consent thereto
16 and the manner in which consent shall be given.
17 (7) Defining the acts or omissions that shall
18 constitute a default in the duties of the Authority to
19 holders of bonds and providing the rights or remedies of
20 such holders in the event of a default, which may include
21 provisions restricting individual rights of action by
22 bondholders.
23 (8) Providing for guarantees, pledges of property,
24 letters of credit, or other security, or insurance for the
25 benefit of bondholders.
26 (f) No member of the Casino Board, nor any person executing

HB2498- 34 -LRB100 03891 AMC 13896 b
1the bonds, shall be liable personally on the bonds or subject
2to any personal liability by reason of the issuance of the
3bonds.
4 (g) The Authority may issue and secure bonds in accordance
5with the provisions of the Local Government Credit Enhancement
6Act.
7 (h) A pledge by the Authority of revenues and receipts as
8security for an issue of bonds or for the performance of its
9obligations under any casino management contract shall be valid
10and binding from the time when the pledge is made. The revenues
11and receipts pledged shall immediately be subject to the lien
12of the pledge without any physical delivery or further act, and
13the lien of any pledge shall be valid and binding against any
14person having any claim of any kind in tort, contract, or
15otherwise against the Authority, irrespective of whether the
16person has notice. No resolution, trust indenture, management
17agreement or financing statement, continuation statement, or
18other instrument adopted or entered into by the Authority need
19be filed or recorded in any public record other than the
20records of the Authority in order to perfect the lien against
21third persons, regardless of any contrary provision of law.
22 (i) Bonds that are being paid or retired by issuance, sale,
23or delivery of bonds, and bonds for which sufficient funds have
24been deposited with the paying agent or trustee to provide for
25payment of principal and interest thereon, and any redemption
26premium, as provided in the authorizing resolution, shall not

HB2498- 35 -LRB100 03891 AMC 13896 b
1be considered outstanding for the purposes of this subsection.
2 (j) The bonds of the Authority shall not be indebtedness of
3the State. The bonds of the Authority are not general
4obligations of the State and are not secured by a pledge of the
5full faith and credit of the State and the holders of bonds of
6the Authority may not require the application of State revenues
7or funds to the payment of bonds of the Authority. The
8foregoing non-recourse language must be printed in bold-face
9type on the face of the bonds and in the preliminary and final
10official statements on the bonds.
11 (k) The State of Illinois pledges and agrees with the
12owners of the bonds that it will not limit or alter the rights
13and powers vested in the Authority by this Act so as to impair
14the terms of any contract made by the Authority with the owners
15or in any way impair the rights and remedies of the owners
16until the bonds, together with interest on them, and all costs
17and expenses in connection with any action or proceedings by or
18on behalf of the owners, are fully met and discharged. The
19Authority is authorized to include this pledge and agreement in
20any contract with the owners of bonds issued under this
21Section.
22 (l) No person holding an elective office in the City, in
23Cook County, or in this State, holding a seat in the General
24Assembly, or serving as a board member, trustee, officer, or
25employee of the Authority, including the spouse of that person,
26may receive a legal, banking, consulting, or other fee related

HB2498- 36 -LRB100 03891 AMC 13896 b
1to the issuance of bonds. This prohibition shall also apply to
2a company or firm that employs a person holding an elective
3office in the City, in Cook County, or in this State, holding a
4seat in the General Assembly, or serving as a board member,
5trustee, officer, or employee of the Authority, including the
6spouse of that person, if the person or his or her spouse has
7greater than 7.5% ownership of the company or firm.
8 Section 1-85. Derivative products. With respect to all or
9part of any issue of its bonds, the Authority may enter into
10agreements or contracts with any necessary or appropriate
11person, which will have the benefit of providing to the
12Authority an interest rate basis, cash flow basis, or other
13basis different from that provided in the bonds for the payment
14of interest. Such agreements or contracts may include, without
15limitation, agreements or contracts commonly known as
16"interest rate swap agreements", "forward payment conversion
17agreements", "futures", "options", "puts", or "calls" and
18agreements or contracts providing for payments based on levels
19of or changes in interest rates, agreements or contracts to
20exchange cash flows or a series of payments, or to hedge
21payment, rate spread, or similar exposure. Any such agreement
22or contract shall be solely an obligation or indebtedness of
23the Authority and shall not be an obligation or indebtedness of
24the State, nor shall any party thereto have any recourse
25against the State in connection with the agreement or contract.

HB2498- 37 -LRB100 03891 AMC 13896 b
1 Section 1-90. Legality for investment. The State of
2Illinois, all governmental entities, all public officers,
3banks, bankers, trust companies, savings banks and
4institutions, building and loan associations, savings and loan
5associations, investment companies, and other persons carrying
6on a banking business, insurance companies, insurance
7associations, and other persons carrying on an insurance
8business, and all executors, administrators, guardians,
9trustees, and other fiduciaries may legally invest any sinking
10funds, moneys, or other funds belonging to them or within their
11control in any bonds issued under this Act. However, nothing in
12this Section shall be construed as relieving any person or
13entity from any duty of exercising reasonable care in selecting
14securities for purchase or investment.
15 Section 1-105. Budgets and reporting.
16 (a) The Casino Board shall annually adopt a budget for each
17fiscal year. The budget may be modified from time to time in
18the same manner and upon the same vote as it may be adopted.
19The budget shall include the Authority's available funds and
20estimated revenues and shall provide for payment of its
21obligations and estimated expenditures for the fiscal year,
22including, without limitation, expenditures for
23administration, operation, maintenance and repairs, debt
24service, and deposits into reserve and other funds and capital

HB2498- 38 -LRB100 03891 AMC 13896 b
1projects.
2 (b) The Casino Board shall annually cause the finances of
3the Authority to be audited by a firm of certified public
4accountants selected by the Casino Board in accordance with the
5rules of the Gaming Board and post on the Authority's Internet
6website such financial information as is required to be posted
7by all other owners licensees under the Illinois Gambling Act.
8 (c) The Casino Board shall, for each fiscal year, prepare
9an annual report setting forth information concerning its
10activities in the fiscal year and the status of the development
11of the casino. The annual report shall include financial
12information of the Authority consistent with that which is
13required for all other owners licensees under the Illinois
14Gambling Act, the budget for the succeeding fiscal year, and
15the current capital plan as of the date of the report. Copies
16of the annual report shall be made available to persons who
17request them and shall be submitted not later than 120 days
18after the end of the Authority's fiscal year or, if the audit
19of the Authority's financial statements is not completed within
20120 days after the end of the Authority's fiscal year, as soon
21as practical after completion of the audit, to the Governor,
22the Mayor, the General Assembly, and the Commission on
23Government Forecasting and Accountability.
24 Section 1-110. Deposit and withdrawal of funds.
25 (a) All funds deposited by the Authority in any bank or

HB2498- 39 -LRB100 03891 AMC 13896 b
1savings and loan association shall be placed in the name of the
2Authority and shall be withdrawn or paid out only by check or
3draft upon the bank or savings and loan association, signed by
42 officers or employees designated by the Casino Board.
5Notwithstanding any other provision of this Section, the Casino
6Board may designate any of its members or any officer or
7employee of the Authority to authorize the wire transfer of
8funds deposited by the secretary-treasurer of funds in a bank
9or savings and loan association for the payment of payroll and
10employee benefits-related expenses.
11 No bank or savings and loan association shall receive
12public funds as permitted by this Section unless it has
13complied with the requirements established pursuant to Section
146 of the Public Funds Investment Act.
15 (b) If any officer or employee whose signature appears upon
16any check or draft issued pursuant to this Act ceases (after
17attaching his signature) to hold his or her office before the
18delivery of such a check or draft to the payee, his or her
19signature shall nevertheless be valid and sufficient for all
20purposes with the same effect as if he or she had remained in
21office until delivery thereof.
22 Section 1-112. Contracts with the Authority or casino
23operator licensee; disclosure requirements.
24 (a) A bidder, respondent, offeror, or contractor for
25contracts with the Authority or casino operator licensee shall

HB2498- 40 -LRB100 03891 AMC 13896 b
1disclose the identity of all officers and directors and every
2owner, beneficiary, or person with beneficial interest of more
3than 1% or shareholder entitled to receive more than 1% of the
4total distributable income of any corporation having any
5interest in the contract or in the bidder, respondent, offeror,
6or contractor. The disclosure shall be in writing and attested
7to by an owner, trustee, corporate official, or agent. If stock
8in a corporation is publicly traded and there is no readily
9known individual having greater than a 1% interest, then a
10statement to that effect attested to by an officer or agent of
11the corporation shall fulfill the disclosure statement
12requirement of this Section. A bidder, respondent, offeror, or
13contractor shall notify the Authority of any changes in
14officers, directors, ownership, or individuals having a
15beneficial interest of more than 1%. Notwithstanding the
16provisions of this subsection (a), the Gaming Board may adopt
17rules in connection with contractors for contracts with the
18Authority or the casino operator licensee.
19 (b) A bidder, respondent, offeror, or contractor for
20contracts with an annual value of $25,000 or more or for a
21period to exceed one year shall disclose all political
22contributions of the bidder, respondent, offeror, or
23contractor and any affiliated person or entity. Disclosure
24shall include at least the names and addresses of the
25contributors and the dollar amounts of any contributions to any
26political committee made within the previous 2 years. The

HB2498- 41 -LRB100 03891 AMC 13896 b
1disclosure must be submitted to the Gaming Board with a copy of
2the contract. All such disclosures shall be posted on the
3websites of the Authority and the Gaming Board.
4 (c) As used in this Section:
5 "Contribution" means contribution as defined in Section
69-1.4 of the Election Code.
7 "Affiliated person" means (i) any person with any ownership
8interest or distributive share of the bidding, responding, or
9contracting entity in excess of 1%, (ii) executive employees of
10the bidding, responding, or contracting entity, and (iii) the
11spouse, minor children, and parents of any such persons.
12 "Affiliated entity" means (i) any parent or subsidiary of
13the bidding or contracting entity, (ii) any member of the same
14unitary business group, or (iii) any political committee for
15which the bidding, responding, or contracting entity is the
16sponsoring entity.
17 (d) The Gaming Board may direct the Authority or a casino
18operator licensee to void a contract if a violation of this
19Section occurs. The Authority may direct a casino operator
20licensee to void a contract if a violation of this Section
21occurs.
22 (e) All contracts pertaining to the actual operation of the
23casino and related gaming activities shall be entered into by
24the casino operator licensee and not the Authority and shall be
25subject to the regulation, oversight, and approval of the
26Gaming Board, applying the same regulation, oversight, and

HB2498- 42 -LRB100 03891 AMC 13896 b
1approval requirements as would be applied to any other owners
2licensee under the Illinois Gambling Act.
3 Section 1-115. Purchasing.
4 (a) The Casino Board shall designate an officer of the
5Authority to serve as the Chief Procurement Officer for the
6Authority. The Chief Procurement Officer shall have all powers
7and duties set forth in Section 15 of Division 10 of Article 8
8of the Illinois Municipal Code. Except as otherwise provided in
9this Section, the Chief Procurement Officer of the Authority
10shall conduct procurements on behalf of the Authority subject
11to Title 2, Chapter 92 of the Municipal Code of Chicago, which
12by its terms incorporates Division 10 of Article 8 of the
13Illinois Municipal Code.
14 (b) All contracts for amounts greater than $25,000 must be
15approved by the Casino Board and executed by the chairperson of
16the Casino Board and executive director of the Authority.
17Contracts for amounts of $25,000 or less may be approved and
18executed by the Chief Procurement Officer for the Authority and
19executive director of the Authority, with approval by the chief
20legal counsel for the Authority as to form and legality.
21 (c) All construction contracts and contracts for supplies,
22materials, equipment, and services for amounts greater than
23$25,000 shall be let by a competitive selection process to the
24lowest responsible proposer, after advertising for proposals,
25except for the following:

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1 (1) when repair parts, accessories, equipment, or
2 services are required for equipment or services previously
3 furnished or contracted for;
4 (2) when services such as water, light, heat, power,
5 telephone (other than long-distance service), or telegraph
6 are required;
7 (3) casino management contracts, which shall be
8 awarded as set forth in Section 1-45 of this Act;
9 (4) contracts where there is only one economically
10 feasible source;
11 (5) when a purchase is needed on an immediate,
12 emergency basis because there exists a threat to public
13 health or public safety, or when immediate expenditure is
14 necessary for repairs to Authority property in order to
15 protect against further loss of or damage to Authority
16 property, to prevent or minimize serious disruption in
17 Authority services or to ensure the integrity of Authority
18 records;
19 (6) contracts for professional services other than for
20 management of the casino, except such contracts described
21 in subsection (d) of this Section; and
22 (7) contracts for the use, purchase, delivery,
23 movement, or installation of (i) data processing
24 equipment, software, and services and (ii)
25 telecommunications equipment, software, and services.
26 (d) Contracts for professional services for a term of more

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1than one year or contracts that may require payment in excess
2of $25,000 in one year shall be let by a competitive bidding
3process to the most highly qualified firm that agrees to
4compensation and other terms of engagement that are both
5reasonable and acceptable to the Casino Board.
6 (e) All contracts involving less than $25,000 shall be let
7by competitive selection process whenever possible, and in any
8event in a manner calculated to ensure the best interests of
9the public.
10 (f) In determining the responsibility of any proposer, the
11Authority may take into account the proposer's (or an
12individual having a beneficial interest, directly or
13indirectly, of more than 1% in such proposing entity) past
14record of dealings with the Authority, the proposer's
15experience, adequacy of equipment, and ability to complete
16performance within the time set, and other factors besides
17financial responsibility. No such contract shall be awarded to
18any proposer other than the lowest proposer (in case of
19purchase or expenditure) unless authorized or approved by a
20vote of at least 3 members of the Casino Board and such action
21is accompanied by a written statement setting forth the reasons
22for not awarding the contract to the highest or lowest
23proposer, as the case may be. The statement shall be kept on
24file in the principal office of the Authority and open to
25public inspection.
26 (g) The Authority shall have the right to reject all

HB2498- 45 -LRB100 03891 AMC 13896 b
1proposals and to re-advertise for proposals. If after any such
2re-advertisement, no responsible and satisfactory proposals,
3within the terms of the re-advertisement, is received, the
4Authority may award such contract without competitive
5selection. The contract must not be less advantageous to the
6Authority than any valid proposal received pursuant to
7advertisement.
8 (h) Advertisements for proposals and re-proposals shall be
9published at least once in a daily newspaper of general
10circulation published in the City at least 10 calendar days
11before the time for receiving proposals and in an online
12bulletin published on the Authority's website. Such
13advertisements shall state the time and place for receiving and
14opening of proposals and, by reference to plans and
15specifications on file at the time of the first publication or
16in the advertisement itself, shall describe the character of
17the proposed contract in sufficient detail to fully advise
18prospective proposers of their obligations and to ensure free
19and open competitive selection.
20 (i) All proposals in response to advertisements shall be
21sealed and shall be publicly opened by the Authority. All
22proposers shall be entitled to be present in person or by
23representatives. Cash or a certified or satisfactory cashier's
24check, as a deposit of good faith, in a reasonable amount to be
25fixed by the Authority before advertising for proposals, shall
26be required with the proposal. A bond for faithful performance

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1of the contract with surety or sureties satisfactory to the
2Authority and adequate insurance may be required in reasonable
3amounts to be fixed by the Authority before advertising for
4proposals.
5 (j) The contract shall be awarded as promptly as possible
6after the opening of proposals. The proposal of the successful
7proposer, as well as the bids of the unsuccessful proposers,
8shall be placed on file and be open to public inspection
9subject to the exemptions from disclosure provided under
10Section 7 of the Freedom of Information Act. All proposals
11shall be void if any disclosure of the terms of any proposals
12in response to an advertisement is made or permitted to be made
13by the Authority before the time fixed for opening proposals.
14 (k) Notice of each and every contract that is offered,
15including renegotiated contracts and change orders, shall be
16published in an online bulletin. The online bulletin must
17include at least the date first offered, the date submission of
18offers is due, the location that offers are to be submitted to,
19a brief purchase description, the method of source selection,
20information of how to obtain a comprehensive purchase
21description and any disclosure and contract forms, and
22encouragement to prospective vendors to hire qualified
23veterans, as defined by Section 45-67 of the Illinois
24Procurement Code, and Illinois residents discharged from any
25Illinois adult correctional center subject to Gaming Board
26licensing and eligibility rules. Notice of each and every

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1contract that is let or awarded, including renegotiated
2contracts and change orders, shall be published in the online
3bulletin and must include at least all of the information
4specified in this subsection (k), as well as the name of the
5successful responsible proposer or offeror, the contract
6price, and the number of unsuccessful responsive proposers and
7any other disclosure specified in this Section. This notice
8must be posted in the online electronic bulletin prior to
9execution of the contract.
10 Section 1-130. Affirmative action and equal opportunity
11obligations of Authority.
12 (a) The Authority is subject to the requirements of Article
13IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
14inclusive) of the Chicago Municipal Code, as now or hereafter
15amended, renumbered, or succeeded, concerning a Minority-Owned
16and Women-Owned Business Enterprise Procurement Program for
17construction contracts, and Section 2-92-420 et seq. of the
18Chicago Municipal Code, as now or hereafter amended,
19renumbered, or succeeded, concerning a Minority-Owned and
20Women-Owned Business Enterprise Procurement Program.
21 (b) The Authority is authorized to enter into agreements
22with contractors' associations, labor unions, and the
23contractors working on the development of the casino to
24establish an apprenticeship preparedness training program to
25provide for an increase in the number of minority and female

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1journeymen and apprentices in the building trades and to enter
2into agreements with community college districts or other
3public or private institutions to provide readiness training.
4The Authority is further authorized to enter into contracts
5with public and private educational institutions and persons in
6the gaming, entertainment, hospitality, and tourism industries
7to provide training for employment in those industries.
8 Section 1-135. Transfer of interest. Neither the Authority
9nor the City may sell, lease, rent, transfer, exchange, or
10otherwise convey any interest that they have in the casino
11without prior approval of the General Assembly.
12 Section 1-140. Home rule. The regulation and licensing of
13casinos and casino gaming, casino gaming facilities, and casino
14operator licensees under this Act are exclusive powers and
15functions of the State. A home rule unit may not regulate or
16license casinos, casino gaming, casino gaming facilities, or
17casino operator licensees under this Act, except as provided
18under this Act. This Section is a denial and limitation of home
19rule powers and functions under subsection (h) of Section 6 of
20Article VII of the Illinois Constitution.
21 Section 1-145. Prohibition of political contributions from
22casino operator licensees and applicants.
23 (a) The General Assembly has a compelling interest in

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1protecting the integrity of both the electoral process and the
2legislative process by preventing corruption and the
3appearance of corruption which may arise through permitting
4certain political campaign contributions by certain persons
5involved in the gaming industry and regulated by the State.
6Unlike most other regulated industries, gaming is especially
7susceptible to corruption and potential criminal influence. In
8Illinois, only licensed gaming activities are legal and all
9other gaming activities are strictly prohibited. Given these
10circumstances, it is imperative to eliminate any potential
11corrupt influence in the gaming industry and the electoral
12process.
13 Banning political campaign contributions by certain
14persons subject to this Section to State officeholders and
15candidates for such offices and to county and municipal
16officeholders and candidates for such offices in counties and
17municipalities that receive financial benefits from gaming
18activities is necessary to prevent corruption and the
19appearance of corruption that may arise when political campaign
20contributions and gaming that is regulated by the State and
21that confers benefits on counties and municipalities are
22intermingled.
23 The General Assembly has prohibited political campaign
24contributions to certain State and local officeholders and
25candidates for such offices by certain persons with State of
26Illinois and Metropolitan Pier and Exposition Authority

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1contracts and pending bids or proposals for contracts of over
2$50,000 and certain individuals and entities affiliated with
3such persons. Certain gaming licensees will receive receipts
4far in excess of the base level of contract amounts subject to
5such other campaign contribution prohibitions.
6 (b) As used in this Section:
7 "Affiliated entity" means (i) any corporate parent and
8operating subsidiary of the business entity applying for or
9holding a license, (ii) each operating subsidiary of the
10corporate parent of the business entity applying for or holding
11a license, (iii) any organization recognized by the United
12States Internal Revenue Service as a tax-exempt organization
13described in Section 501(c) of the Internal Revenue Code of
141986 (or any successor provision of federal tax law)
15established by one or more business entities seeking or holding
16a license, any affiliated entity of such business entity, or
17any affiliated person of such business entity, and (iv) any
18political committee for which the business entity applying for
19or holding a license, or any 501(c) organization described in
20item (iii) related to that business entity, is the sponsoring
21entity as defined in Section 9-3 of the Election Code. For
22purposes of item (iv), the funding of all business entities
23applying for or holding a license shall be aggregated in
24determining whether such political committee is an affiliated
25entity.
26 "Affiliated person" means (i) any person with any ownership

HB2498- 51 -LRB100 03891 AMC 13896 b
1interest or distributive share in excess of 7.5% of any
2business entity applying for or holding a license, (ii)
3executive employees of any such business entity, (iii) any
4person designated as a key person under the Illinois Gambling
5Act, and (iv) the spouse of the persons described in items (i)
6through (iii).
7 "Business entity" means any entity doing business for
8profit, whether organized as a corporation, partnership, sole
9proprietorship, limited liability company, or partnership or
10otherwise.
11 "Contribution" means a contribution as defined in Section
129-1.4 of the Election Code.
13 "Declared candidate" means a person who has filed a
14statement of candidacy and petition for nomination or election
15in the principal office of the State Board of Elections, or in
16the office of the appropriate election authority for any county
17or municipality in which a casino is located or proposed or
18which receives any gaming revenue.
19 "Executive employee" means (i) any person who is an officer
20or director or who fulfills duties equivalent to those of an
21officer or director of a business entity applying for or
22holding a license and (ii) any employee of such business entity
23who is required to register under the Lobbyist Registration
24Act.
25 "License" means the casino operator license issued
26pursuant to this Act.

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1 "Officeholder" means the Governor, Lieutenant Governor,
2Attorney General, Secretary of State, Comptroller, Treasurer,
3member of the General Assembly, or any officeholder in any
4county or municipality in which a riverboat, casino, or
5electronic gaming device is located or proposed or that
6receives any 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 Gaming Board shall have authority to suspend, revoke,
19or restrict the license and to impose civil penalties of up to
20$100,000 for each violation of this subsection (c). A notice of
21each such violation and the penalty imposed shall be published
22on the Gaming Board's Internet website and in the Illinois
23Register. Payments received by the State pursuant to this
24subsection (c) shall be deposited into the General Revenue
25Fund.
26 Any officeholder or declared candidate or any political

HB2498- 53 -LRB100 03891 AMC 13896 b
1committee affiliated with any officeholder or declared
2candidate that has received a contribution in violation of this
3subsection (c) shall pay an amount equal to the value of the
4contribution to the State no more than 30 days after notice of
5the violation concerning the contribution appears in the
6Illinois Register. Payments received by the State pursuant to
7this subsection (c) shall be deposited into the General Revenue
8Fund.
9 (d) The Gaming Board shall post on its Internet website a
10list of all persons, business entities, and affiliated entities
11prohibited from making contributions to any officeholder or
12declared candidate political committee pursuant to subsection
13(c), which list shall be updated and published, at a minimum,
14every 6 months.
15 Any person, business entity, or affiliated entity
16prohibited from making contributions to any officeholder or
17declared candidate political committee pursuant to subsection
18(c) shall notify the Gaming Board within 7 days after
19discovering any necessary change or addition to the information
20relating to that person, business entity, or affiliated entity
21contained in the list.
22 An individual who acts in good faith and in reliance on any
23information contained in the list shall not be subject to any
24penalties or liability imposed for a violation of this Section.
25 (e) If any provision of this Section is held invalid or its
26application to any person or circumstance is held invalid, the

HB2498- 54 -LRB100 03891 AMC 13896 b
1invalidity of that provision or application does not affect the
2other provisions or applications of this Section that can be
3given effect without the invalid application or provision.
4
ARTICLE 90.
5 Section 90-1. Findings. The General Assembly makes all of
6the following findings:
7 (1) That the cumulative reduction to pre-K through 12
8 education funding since 2009 is approximately
9 $861,000,000.
10 (2) That during the last 2 years, general state aid to
11 Illinois common schools has been underfunded as a result of
12 budget cuts, resulting in pro-rated payments to school
13 districts that are less than the foundational level of
14 $6,119 per pupil, which represents the minimum each pupil
15 needs to be educated.
16 (3) That a significant infusion of new revenue is
17 necessary in order to fully fund the foundation level and
18 to maintain and support education in Illinois.
19 (4) That the decline of the Illinois horse racing and
20 breeding program, a $2.5 billion industry, would be
21 reversed if this amendatory Act of the 100th General
22 Assembly would be enacted.
23 (5) That the Illinois horse racing industry is on the
24 verge of extinction due to fierce competition from fully

HB2498- 55 -LRB100 03891 AMC 13896 b
1 developed horse racing and gaming operations in other
2 states.
3 (6) That allowing the State's horse racing venues,
4 currently licensed gaming destinations, to maximize their
5 capacities with gaming machines, would generate up to $120
6 million to $200 million for the State in the form of extra
7 licensing fees, plus an additional $100 million to $300
8 million in recurring annual tax revenue for the State to
9 help ensure that school, road, and other building projects
10 promised under the capital plan occur on schedule.
11 (7) That Illinois agriculture and other businesses
12 that support and supply the horse racing industry, already
13 a sector that employs over 37,000 Illinoisans, also stand
14 to substantially benefit and would be much more likely to
15 create additional jobs should Illinois horse racing once
16 again become competitive with other states.
17 (8) That by keeping these projects on track, the State
18 can be sure that significant job and economic growth will
19 in fact result from the previously enacted legislation.
20 (9) That gaming machines at Illinois horse racing
21 tracks would create an estimated 1,200 to 1,500 permanent
22 jobs, and an estimated capital investment of up to $200
23 million to $400 million at these race tracks would prompt
24 additional trade organization jobs necessary to construct
25 new facilities or remodel race tracks to operate electronic
26 gaming.

HB2498- 56 -LRB100 03891 AMC 13896 b
1 Section 90-3. The State Officials and Employees Ethics Act
2is amended by changing Sections 5-45 and 20-10 as follows:
3 (5 ILCS 430/5-45)
4 Sec. 5-45. Procurement; revolving door prohibition.
5 (a) No former officer, member, or State employee, or spouse
6or immediate family member living with such person, shall,
7within a period of one year immediately after termination of
8State employment, knowingly accept employment or receive
9compensation or fees for services from a person or entity if
10the officer, member, or State employee, during the year
11immediately preceding termination of State employment,
12participated personally and substantially in the award of State
13contracts, or the issuance of State contract change orders,
14with a cumulative value of $25,000 or more to the person or
15entity, or its parent or subsidiary.
16 (b) No former officer of the executive branch or State
17employee of the executive branch with regulatory or licensing
18authority, or spouse or immediate family member living with
19such person, shall, within a period of one year immediately
20after termination of State employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity if the officer or State employee, during the
23year immediately preceding termination of State employment,
24participated personally and substantially in making a

HB2498- 57 -LRB100 03891 AMC 13896 b
1regulatory or licensing decision that directly applied to the
2person or entity, or its parent or subsidiary.
3 (c) Within 6 months after the effective date of this
4amendatory Act of the 96th General Assembly, each executive
5branch constitutional officer and legislative leader, the
6Auditor General, and the Joint Committee on Legislative Support
7Services shall adopt a policy delineating which State positions
8under his or her jurisdiction and control, by the nature of
9their duties, may have the authority to participate personally
10and substantially in the award of State contracts or in
11regulatory or licensing decisions. The Governor shall adopt
12such a policy for all State employees of the executive branch
13not under the jurisdiction and control of any other executive
14branch constitutional officer.
15 The policies required under subsection (c) of this Section
16shall be filed with the appropriate ethics commission
17established under this Act or, for the Auditor General, with
18the Office of the Auditor General.
19 (d) Each Inspector General shall have the authority to
20determine that additional State positions under his or her
21jurisdiction, not otherwise subject to the policies required by
22subsection (c) of this Section, are nonetheless subject to the
23notification requirement of subsection (f) below due to their
24involvement in the award of State contracts or in regulatory or
25licensing decisions.
26 (e) The Joint Committee on Legislative Support Services,

HB2498- 58 -LRB100 03891 AMC 13896 b
1the Auditor General, and each of the executive branch
2constitutional officers and legislative leaders subject to
3subsection (c) of this Section shall provide written
4notification to all employees in positions subject to the
5policies required by subsection (c) or a determination made
6under subsection (d): (1) upon hiring, promotion, or transfer
7into the relevant position; and (2) at the time the employee's
8duties are changed in such a way as to qualify that employee.
9An employee receiving notification must certify in writing that
10the person was advised of the prohibition and the requirement
11to notify the appropriate Inspector General in subsection (f).
12 (f) Any State employee in a position subject to the
13policies required by subsection (c) or to a determination under
14subsection (d), but who does not fall within the prohibition of
15subsection (h) below, who is offered non-State employment
16during State employment or within a period of one year
17immediately after termination of State employment shall, prior
18to accepting such non-State employment, notify the appropriate
19Inspector General. Within 10 calendar days after receiving
20notification from an employee in a position subject to the
21policies required by subsection (c), such Inspector General
22shall make a determination as to whether the State employee is
23restricted from accepting such employment by subsection (a) or
24(b). In making a determination, in addition to any other
25relevant information, an Inspector General shall assess the
26effect of the prospective employment or relationship upon

HB2498- 59 -LRB100 03891 AMC 13896 b
1decisions referred to in subsections (a) and (b), based on the
2totality of the participation by the former officer, member, or
3State employee in those decisions. A determination by an
4Inspector General must be in writing, signed and dated by the
5Inspector General, and delivered to the subject of the
6determination within 10 calendar days or the person is deemed
7eligible for the employment opportunity. For purposes of this
8subsection, "appropriate Inspector General" means (i) for
9members and employees of the legislative branch, the
10Legislative Inspector General; (ii) for the Auditor General and
11employees of the Office of the Auditor General, the Inspector
12General provided for in Section 30-5 of this Act; and (iii) for
13executive branch officers and employees, the Inspector General
14having jurisdiction over the officer or employee. Notice of any
15determination of an Inspector General and of any such appeal
16shall be given to the ultimate jurisdictional authority, the
17Attorney General, and the Executive Ethics Commission.
18 (g) An Inspector General's determination regarding
19restrictions under subsection (a) or (b) may be appealed to the
20appropriate Ethics Commission by the person subject to the
21decision or the Attorney General no later than the 10th
22calendar day after the date of the determination.
23 On appeal, the Ethics Commission or Auditor General shall
24seek, accept, and consider written public comments regarding a
25determination. In deciding whether to uphold an Inspector
26General's determination, the appropriate Ethics Commission or

HB2498- 60 -LRB100 03891 AMC 13896 b
1Auditor General shall assess, in addition to any other relevant
2information, the effect of the prospective employment or
3relationship upon the decisions referred to in subsections (a)
4and (b), based on the totality of the participation by the
5former officer, member, or State employee in those decisions.
6The Ethics Commission shall decide whether to uphold an
7Inspector General's determination within 10 calendar days or
8the person is deemed eligible for the employment opportunity.
9 (h) The following officers, members, or State employees
10shall not, within a period of one year immediately after
11termination of office or State employment, knowingly accept
12employment or receive compensation or fees for services from a
13person or entity if the person or entity or its parent or
14subsidiary, during the year immediately preceding termination
15of State employment, was a party to a State contract or
16contracts with a cumulative value of $25,000 or more involving
17the officer, member, or State employee's State agency, or was
18the subject of a regulatory or licensing decision involving the
19officer, member, or State employee's State agency, regardless
20of whether he or she participated personally and substantially
21in the award of the State contract or contracts or the making
22of the regulatory or licensing decision in question:
23 (1) members or officers;
24 (2) members of a commission or board created by the
25 Illinois Constitution;
26 (3) persons whose appointment to office is subject to

HB2498- 61 -LRB100 03891 AMC 13896 b
1 the advice and consent of the Senate;
2 (4) the head of a department, commission, board,
3 division, bureau, authority, or other administrative unit
4 within the government of this State;
5 (5) chief procurement officers, State purchasing
6 officers, and their designees whose duties are directly
7 related to State procurement; and
8 (6) chiefs of staff, deputy chiefs of staff, associate
9 chiefs of staff, assistant chiefs of staff, and deputy
10 governors; .
11 (7) employees of the Illinois Racing Board; and
12 (8) employees of the Illinois Gaming Board.
13 (i) For the purposes of this Section, with respect to
14officers or employees of a regional transit board, as defined
15in this Act, the phrase "person or entity" does not include:
16(i) the United States government, (ii) the State, (iii)
17municipalities, as defined under Article VII, Section 1 of the
18Illinois Constitution, (iv) units of local government, as
19defined under Article VII, Section 1 of the Illinois
20Constitution, or (v) school districts.
21(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
22 (5 ILCS 430/20-10)
23 Sec. 20-10. Offices of Executive Inspectors General.
24 (a) Six Five independent Offices of the Executive Inspector
25General are created, one each for the Governor, the Attorney

HB2498- 62 -LRB100 03891 AMC 13896 b
1General, the Secretary of State, the Comptroller, and the
2Treasurer and one for gaming activities. Each Office shall be
3under the direction and supervision of an Executive Inspector
4General and shall be a fully independent office with separate
5appropriations.
6 (b) The Governor, Attorney General, Secretary of State,
7Comptroller, and Treasurer shall each appoint an Executive
8Inspector General, and the Governor shall appoint an Executive
9Inspector General for gaming activities. Each appointment must
10be made without regard to political affiliation and solely on
11the basis of integrity and demonstrated ability. Appointments
12shall be made by and with the advice and consent of the Senate
13by three-fifths of the elected members concurring by record
14vote. Any nomination not acted upon by the Senate within 60
15session days of the receipt thereof shall be deemed to have
16received the advice and consent of the Senate. If, during a
17recess of the Senate, there is a vacancy in an office of
18Executive Inspector General, the appointing authority shall
19make a temporary appointment until the next meeting of the
20Senate when the appointing authority shall make a nomination to
21fill that office. No person rejected for an office of Executive
22Inspector General shall, except by the Senate's request, be
23nominated again for that office at the same session of the
24Senate or be appointed to that office during a recess of that
25Senate.
26 Nothing in this Article precludes the appointment by the

HB2498- 63 -LRB100 03891 AMC 13896 b
1Governor, Attorney General, Secretary of State, Comptroller,
2or Treasurer of any other inspector general required or
3permitted by law. The Governor, Attorney General, Secretary of
4State, Comptroller, and Treasurer each may appoint an existing
5inspector general as the Executive Inspector General required
6by this Article, provided that such an inspector general is not
7prohibited by law, rule, jurisdiction, qualification, or
8interest from serving as the Executive Inspector General
9required by this Article. An appointing authority may not
10appoint a relative as an Executive Inspector General.
11 Each Executive Inspector General shall have the following
12qualifications:
13 (1) has not been convicted of any felony under the laws
14 of this State, another State, or the United States;
15 (2) has earned a baccalaureate degree from an
16 institution of higher education; and
17 (3) has 5 or more years of cumulative service (A) with
18 a federal, State, or local law enforcement agency, at least
19 2 years of which have been in a progressive investigatory
20 capacity; (B) as a federal, State, or local prosecutor; (C)
21 as a senior manager or executive of a federal, State, or
22 local agency; (D) as a member, an officer, or a State or
23 federal judge; or (E) representing any combination of (A)
24 through (D).
25 The term of each initial Executive Inspector General shall
26commence upon qualification and shall run through June 30,

HB2498- 64 -LRB100 03891 AMC 13896 b
12008. The initial appointments shall be made within 60 days
2after the effective date of this Act.
3 After the initial term, each Executive Inspector General
4shall serve for 5-year terms commencing on July 1 of the year
5of appointment and running through June 30 of the fifth
6following year. An Executive Inspector General may be
7reappointed to one or more subsequent terms.
8 A vacancy occurring other than at the end of a term shall
9be filled by the appointing authority only for the balance of
10the term of the Executive Inspector General whose office is
11vacant.
12 Terms shall run regardless of whether the position is
13filled.
14 (c) The Executive Inspector General appointed by the
15Attorney General shall have jurisdiction over the Attorney
16General and all officers and employees of, and vendors and
17others doing business with, State agencies within the
18jurisdiction of the Attorney General. The Executive Inspector
19General appointed by the Secretary of State shall have
20jurisdiction over the Secretary of State and all officers and
21employees of, and vendors and others doing business with, State
22agencies within the jurisdiction of the Secretary of State. The
23Executive Inspector General appointed by the Comptroller shall
24have jurisdiction over the Comptroller and all officers and
25employees of, and vendors and others doing business with, State
26agencies within the jurisdiction of the Comptroller. The

HB2498- 65 -LRB100 03891 AMC 13896 b
1Executive Inspector General appointed by the Treasurer shall
2have jurisdiction over the Treasurer and all officers and
3employees of, and vendors and others doing business with, State
4agencies within the jurisdiction of the Treasurer. The
5Executive Inspector General appointed by the Governor shall
6have jurisdiction over (i) the Governor, (ii) the Lieutenant
7Governor, (iii) all officers and employees of, and vendors and
8others doing business with, executive branch State agencies
9under the jurisdiction of the Executive Ethics Commission and
10not within the jurisdiction of the Attorney General, the
11Secretary of State, the Comptroller, or the Treasurer, or the
12Executive Inspector General for gaming activities, and (iv) all
13board members and employees of the Regional Transit Boards and
14all vendors and others doing business with the Regional Transit
15Boards. The Executive Inspector General for gaming activities
16appointed by the Governor has jurisdiction over the Illinois
17Gaming Board, all officers and employees of the Illinois Gaming
18Board, and all activities of the Illinois Gaming Board.
19 The jurisdiction of each Executive Inspector General is to
20investigate allegations of fraud, waste, abuse, mismanagement,
21misconduct, nonfeasance, misfeasance, malfeasance, or
22violations of this Act or violations of other related laws and
23rules.
24 (d) The compensation for each Executive Inspector General
25shall be determined by the Executive Ethics Commission and
26shall be made from appropriations made to the Comptroller for

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1this purpose. Subject to Section 20-45 of this Act, each
2Executive Inspector General has full authority to organize his
3or her Office of the Executive Inspector General, including the
4employment and determination of the compensation of staff, such
5as deputies, assistants, and other employees, as
6appropriations permit. A separate appropriation shall be made
7for each Office of Executive Inspector General.
8 (e) No Executive Inspector General or employee of the
9Office of the Executive Inspector General may, during his or
10her term of appointment or employment:
11 (1) become a candidate for any elective office;
12 (2) hold any other elected or appointed public office
13 except for appointments on governmental advisory boards or
14 study commissions or as otherwise expressly authorized by
15 law;
16 (3) be actively involved in the affairs of any
17 political party or political organization; or
18 (4) advocate for the appointment of another person to
19 an appointed or elected office or position or actively
20 participate in any campaign for any elective office.
21 In this subsection an appointed public office means a
22position authorized by law that is filled by an appointing
23authority as provided by law and does not include employment by
24hiring in the ordinary course of business.
25 (e-1) No Executive Inspector General or employee of the
26Office of the Executive Inspector General may, for one year

HB2498- 67 -LRB100 03891 AMC 13896 b
1after the termination of his or her appointment or employment:
2 (1) become a candidate for any elective office;
3 (2) hold any elected public office; or
4 (3) hold any appointed State, county, or local judicial
5 office.
6 (e-2) The requirements of item (3) of subsection (e-1) may
7be waived by the Executive Ethics Commission.
8 (f) An Executive Inspector General may be removed only for
9cause and may be removed only by the appointing constitutional
10officer. At the time of the removal, the appointing
11constitutional officer must report to the Executive Ethics
12Commission the justification for the removal.
13(Source: P.A. 96-555, eff. 8-18-09; 96-1528, eff. 7-1-11.)
14 Section 90-5. The Alcoholism and Other Drug Abuse and
15Dependency Act is amended by changing Section 5-20 as follows:
16 (20 ILCS 301/5-20)
17 Sec. 5-20. Compulsive gambling program.
18 (a) Subject to appropriation, the Department shall
19establish a program for public education, research, and
20training regarding problem and compulsive gambling and the
21treatment and prevention of problem and compulsive gambling.
22Subject to specific appropriation for these stated purposes,
23the program must include all of the following:
24 (1) Establishment and maintenance of a toll-free "800"

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1 telephone number to provide crisis counseling and referral
2 services to families experiencing difficulty as a result of
3 problem or compulsive gambling.
4 (2) Promotion of public awareness regarding the
5 recognition and prevention of problem and compulsive
6 gambling.
7 (3) Facilitation, through in-service training and
8 other means, of the availability of effective assistance
9 programs for problem and compulsive gamblers.
10 (4) Conducting studies to identify adults and
11 juveniles in this State who are, or who are at risk of
12 becoming, problem or compulsive gamblers.
13 (b) Subject to appropriation, the Department shall either
14establish and maintain the program or contract with a private
15or public entity for the establishment and maintenance of the
16program. Subject to appropriation, either the Department or the
17private or public entity shall implement the toll-free
18telephone number, promote public awareness, and conduct
19in-service training concerning problem and compulsive
20gambling.
21 (c) Subject to appropriation, the Department shall produce
22and supply the signs specified in Section 10.7 of the Illinois
23Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
241975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
25of the Charitable Games Act, and Section 13.1 of the Illinois
26Riverboat Gambling Act.

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1(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
2 Section 90-6. The Department of Commerce and Economic
3Opportunity Law of the Civil Administrative Code of Illinois is
4amended by adding Sections 605-530 and 605-535 as follows:
5 (20 ILCS 605/605-530 new)
6 Sec. 605-530. The Depressed Communities Economic
7Development Board.
8 (a) The Depressed Communities Economic Development Board
9is created as an advisory board within the Department of
10Commerce and Economic Opportunity. The Board shall consist of
11the following members:
12 (1) 3 members appointed by the Governor, one of whom
13 shall be appointed to serve an initial term of one year and
14 2 of whom shall be appointed to serve an initial term of 2
15 years;
16 (2) 2 members appointed by the Speaker of the House of
17 Representatives, one of whom shall be appointed to serve an
18 initial term of one year and one of whom shall be appointed
19 to serve an initial term of 2 years;
20 (3) 2 members appointed by the President of the Senate,
21 one of whom shall be appointed to serve an initial term of
22 one year and one of whom shall be appointed to serve an
23 initial term of 2 years;
24 (4) 2 members appointed by the Minority Leader of the

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1 House of Representatives, one of whom shall be appointed to
2 serve an initial term of one year and one of whom shall be
3 appointed to serve an initial term of 2 years; and
4 (5) 2 members appointed by the Minority Leader of the
5 Senate, one of whom shall be appointed to serve an initial
6 term of one year and one of whom shall be appointed to
7 serve an initial term of 2 years.
8 The members of the Board shall elect a member to serve as
9chair of the Board. The members of the Board shall reflect the
10composition of the Illinois population with regard to ethnic
11and racial composition.
12 After the initial terms, each member shall be appointed to
13serve a term of 2 years and until his or her successor has been
14appointed and assumes office. If a vacancy occurs in the Board
15membership, then the vacancy shall be filled in the same manner
16as the initial appointment. No member of the Board shall, at
17the time of his or her appointment or within 2 years before the
18appointment, hold elected office or be appointed to a State
19board, commission, or agency. All Board members are subject to
20the State Officials and Employees Ethics Act.
21 (b) Board members shall serve without compensation, but may
22be reimbursed for their reasonable travel expenses from funds
23available for that purpose. The Department of Commerce and
24Economic Opportunity shall provide staff and administrative
25support services to the Board.
26 (c) The Board must make recommendations, which must be

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1approved by a majority of the Board, to the Department of
2Commerce and Economic Opportunity concerning the award of
3grants from amounts appropriated to the Department from the
4Depressed Communities Economic Development Fund, a special
5fund created in the State treasury. The Department must make
6grants to public or private entities submitting proposals to
7the Board to revitalize an Illinois depressed community. Grants
8may be used by these entities only for those purposes
9conditioned with the grant. For the purposes of this subsection
10(c), plans for revitalizing an Illinois depressed community
11include plans intended to curb high levels of poverty,
12unemployment, job and population loss, and general distress. An
13Illinois depressed community is an area where the poverty rate,
14as determined by using the most recent data released by the
15United States Census Bureau, is at least 3% greater than the
16State poverty rate as determined by using the most recent data
17released by the United States Census Bureau.
18 (20 ILCS 605/605-535 new)
19 Sec. 605-535. The Commission on the Future of Economic
20Development of the Latino Community.
21 (a) There is hereby created the Commission on the Future of
22Economic Development of the Latino Community within the
23Department. The purpose of the Commission shall be to maintain
24and develop the economy of Latinos and to provide opportunities
25for this community, which will enhance and expand the quality

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1of their lives.
2 The Commission shall concentrate its major efforts on
3strategic planning, policy research and analysis, advocacy,
4evaluation, and promoting coordination and collaboration.
5 During each regular legislative session, the Commission
6must consult with appropriate legislative committees about the
7State's economic development needs and opportunities in the
8Latino community.
9 By October 1st of each even-numbered year, the Commission
10must submit to the Governor and the General Assembly a biennial
11comprehensive statewide economic development strategy for the
12Latino community with a report on progress from the previous
13comprehensive strategy.
14 The comprehensive statewide economic development strategy
15may include, but is not limited to:
16 (1) an assessment of the Latino community's economic
17 vitality;
18 (2) recommended goals, objectives, and priorities for
19 the next biennium and the future;
20 (3) a common set of outcomes and benchmarks for the
21 economic development system as a whole for the Latino
22 community;
23 (4) recommendations for removing barriers for Latinos
24 in employment;
25 (5) an inventory of existing relevant programs
26 compiled by the Commission from materials submitted by

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1 agencies;
2 (6) recommendations for expanding, discontinuing, or
3 redirecting existing programs or adding new programs to
4 better serve the Latino community; and
5 (7) recommendations of best practices and public and
6 private sector roles in implementing the comprehensive
7 statewide economic development strategy.
8 In developing the biennial statewide economic development
9strategy, goals, objectives, priorities, and recommendations,
10the Commission shall consult, collaborate, and coordinate with
11relevant State agencies, private sector business, nonprofit
12organizations involved in economic development, trade
13associations, associate development organizations, and
14relevant local organizations in order to avoid duplication of
15effort.
16 State agencies shall cooperate with the Commission and
17provide information as the Commission may reasonably request.
18 The Commission shall review and make budget
19recommendations to the Governor's Office of Management and
20Budget and the General Assembly in areas relating to the
21economic development in the State's Latino community.
22 The Commission shall evaluate its own performance on a
23regular basis.
24 The Commission may accept gifts, grants, donations,
25sponsorships, or contributions from any federal, State, or
26local governmental agency or program, or any private source,

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1and expend the same for any purpose consistent with this
2Section.
3 (b) The Commission shall consist of 12 voting members,
4appointed by the Governor, 4 of whom shall be appointed to
5serve an initial term of one year, 4 of whom shall be appointed
6to serve an initial term of 2 years, and 4 of whom shall be
7appointed to serve an initial term of 3 years. After the
8initial term, each member shall be appointed to a term of 3
9years. Members of the Commission shall serve at the pleasure of
10the Governor for not more than 2 consecutive 3-year terms. In
11appointing members, the Governor shall appoint individuals
12from the following private industry sectors:
13 (1) production agriculture;
14 (2) at least 2 individuals from manufacturing, one of
15 whom shall represent a company with no more than 75
16 employees;
17 (3) transportation, construction, and logistics;
18 (4) travel and tourism;
19 (5) financial services and insurance;
20 (6) information technology and communications; and
21 (7) biotechnology.
22 The members of the Commission shall choose a member to
23serve as chair of the Commission. The members of the Commission
24shall be representative, to the extent possible, of the various
25geographic areas of the State. The Director shall serve as an
26ad hoc nonvoting member of the Commission. Vacancies shall be

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1filled in the same manner as the original appointments. The
2members of the Commission shall serve without compensation.
3 (c) The Commission shall meet at least 4 times per year,
4with at least one meeting each calendar quarter, at the call of
5the director or 4 voting members of the Commission. The staff
6and support for the Commission shall be provided by the
7Department.
8 (d) The Commission and Department are encouraged to involve
9other essential groups in the work of the Commission,
10including, but not limited to:
11 (1) public universities;
12 (2) community colleges;
13 (3) other educational institutions; and
14 (4) the Department of Labor.
15 (e) The Commission shall make recommendations, which must
16be approved by a majority of the members of the Commission, to
17the Department concerning the award of grants from amounts
18appropriated to the Department from the Latino Community
19Economic Development Fund, a special fund in the State
20treasury. The Department shall make grants to public or private
21entities submitting proposals to the Commission to assist in
22the economic development of the Latino community. Grants may be
23used by these entities only for those purposes conditioned with
24the grant. The Commission shall coordinate with the Department
25to develop grant criteria.
26 (f) For the purposes of this Section:

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1 "Department" means the Department of Commerce and Economic
2Development.
3 "Director" means the Director of Commerce and Economic
4Development.
5 "Educational institutions" means nonprofit public and
6private colleges, community colleges, State colleges, and
7universities in this State.
8 Section 90-8. The Illinois Lottery Law is amended by
9changing Section 9.1 as follows:
10 (20 ILCS 1605/9.1)
11 Sec. 9.1. Private manager and management agreement.
12 (a) As used in this Section:
13 "Offeror" means a person or group of persons that responds
14to a request for qualifications under this Section.
15 "Request for qualifications" means all materials and
16documents prepared by the Department to solicit the following
17from offerors:
18 (1) Statements of qualifications.
19 (2) Proposals to enter into a management agreement,
20 including the identity of any prospective vendor or vendors
21 that the offeror intends to initially engage to assist the
22 offeror in performing its obligations under the management
23 agreement.
24 "Final offer" means the last proposal submitted by an

HB2498- 77 -LRB100 03891 AMC 13896 b
1offeror in response to the request for qualifications,
2including the identity of any prospective vendor or vendors
3that the offeror intends to initially engage to assist the
4offeror in performing its obligations under the management
5agreement.
6 "Final offeror" means the offeror ultimately selected by
7the Governor to be the private manager for the Lottery under
8subsection (h) of this Section.
9 (b) By September 15, 2010, the Governor shall select a
10private manager for the total management of the Lottery with
11integrated functions, such as lottery game design, supply of
12goods and services, and advertising and as specified in this
13Section.
14 (c) Pursuant to the terms of this subsection, the
15Department shall endeavor to expeditiously terminate the
16existing contracts in support of the Lottery in effect on the
17effective date of this amendatory Act of the 96th General
18Assembly in connection with the selection of the private
19manager. As part of its obligation to terminate these contracts
20and select the private manager, the Department shall establish
21a mutually agreeable timetable to transfer the functions of
22existing contractors to the private manager so that existing
23Lottery operations are not materially diminished or impaired
24during the transition. To that end, the Department shall do the
25following:
26 (1) where such contracts contain a provision

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1 authorizing termination upon notice, the Department shall
2 provide notice of termination to occur upon the mutually
3 agreed timetable for transfer of functions;
4 (2) upon the expiration of any initial term or renewal
5 term of the current Lottery contracts, the Department shall
6 not renew such contract for a term extending beyond the
7 mutually agreed timetable for transfer of functions; or
8 (3) in the event any current contract provides for
9 termination of that contract upon the implementation of a
10 contract with the private manager, the Department shall
11 perform all necessary actions to terminate the contract on
12 the date that coincides with the mutually agreed timetable
13 for transfer of functions.
14 If the contracts to support the current operation of the
15Lottery in effect on the effective date of this amendatory Act
16of the 96th General Assembly are not subject to termination as
17provided for in this subsection (c), then the Department may
18include a provision in the contract with the private manager
19specifying a mutually agreeable methodology for incorporation.
20 (c-5) The Department shall include provisions in the
21management agreement whereby the private manager shall, for a
22fee, and pursuant to a contract negotiated with the Department
23(the "Employee Use Contract"), utilize the services of current
24Department employees to assist in the administration and
25operation of the Lottery. The Department shall be the employer
26of all such bargaining unit employees assigned to perform such

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1work for the private manager, and such employees shall be State
2employees, as defined by the Personnel Code. Department
3employees shall operate under the same employment policies,
4rules, regulations, and procedures, as other employees of the
5Department. In addition, neither historical representation
6rights under the Illinois Public Labor Relations Act, nor
7existing collective bargaining agreements, shall be disturbed
8by the management agreement with the private manager for the
9management of the Lottery.
10 (d) The management agreement with the private manager shall
11include all of the following:
12 (1) A term not to exceed 10 years, including any
13 renewals.
14 (2) A provision specifying that the Department:
15 (A) shall exercise actual control over all
16 significant business decisions;
17 (A-5) has the authority to direct or countermand
18 operating decisions by the private manager at any time;
19 (B) has ready access at any time to information
20 regarding Lottery operations;
21 (C) has the right to demand and receive information
22 from the private manager concerning any aspect of the
23 Lottery operations at any time; and
24 (D) retains ownership of all trade names,
25 trademarks, and intellectual property associated with
26 the Lottery.

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1 (3) A provision imposing an affirmative duty on the
2 private manager to provide the Department with material
3 information and with any information the private manager
4 reasonably believes the Department would want to know to
5 enable the Department to conduct the Lottery.
6 (4) A provision requiring the private manager to
7 provide the Department with advance notice of any operating
8 decision that bears significantly on the public interest,
9 including, but not limited to, decisions on the kinds of
10 games to be offered to the public and decisions affecting
11 the relative risk and reward of the games being offered, so
12 the Department has a reasonable opportunity to evaluate and
13 countermand that decision.
14 (5) A provision providing for compensation of the
15 private manager that may consist of, among other things, a
16 fee for services and a performance based bonus as
17 consideration for managing the Lottery, including terms
18 that may provide the private manager with an increase in
19 compensation if Lottery revenues grow by a specified
20 percentage in a given year.
21 (6) (Blank).
22 (7) A provision requiring the deposit of all Lottery
23 proceeds to be deposited into the State Lottery Fund except
24 as otherwise provided in Section 20 of this Act.
25 (8) A provision requiring the private manager to locate
26 its principal office within the State.

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1 (8-5) A provision encouraging that at least 20% of the
2 cost of contracts entered into for goods and services by
3 the private manager in connection with its management of
4 the Lottery, other than contracts with sales agents or
5 technical advisors, be awarded to businesses that are a
6 minority owned business, a female owned business, or a
7 business owned by a person with disability, as those terms
8 are defined in the Business Enterprise for Minorities,
9 Females, and Persons with Disabilities Act.
10 (9) A requirement that so long as the private manager
11 complies with all the conditions of the agreement under the
12 oversight of the Department, the private manager shall have
13 the following duties and obligations with respect to the
14 management of the Lottery:
15 (A) The right to use equipment and other assets
16 used in the operation of the Lottery.
17 (B) The rights and obligations under contracts
18 with retailers and vendors.
19 (C) The implementation of a comprehensive security
20 program by the private manager.
21 (D) The implementation of a comprehensive system
22 of internal audits.
23 (E) The implementation of a program by the private
24 manager to curb compulsive gambling by persons playing
25 the Lottery.
26 (F) A system for determining (i) the type of

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1 Lottery games, (ii) the method of selecting winning
2 tickets, (iii) the manner of payment of prizes to
3 holders of winning tickets, (iv) the frequency of
4 drawings of winning tickets, (v) the method to be used
5 in selling tickets, (vi) a system for verifying the
6 validity of tickets claimed to be winning tickets,
7 (vii) the basis upon which retailer commissions are
8 established by the manager, and (viii) minimum
9 payouts.
10 (10) A requirement that advertising and promotion must
11 be consistent with Section 7.8a of this Act.
12 (11) A requirement that the private manager market the
13 Lottery to those residents who are new, infrequent, or
14 lapsed players of the Lottery, especially those who are
15 most likely to make regular purchases on the Internet as
16 permitted by law.
17 (12) A code of ethics for the private manager's
18 officers and employees.
19 (13) A requirement that the Department monitor and
20 oversee the private manager's practices and take action
21 that the Department considers appropriate to ensure that
22 the private manager is in compliance with the terms of the
23 management agreement, while allowing the manager, unless
24 specifically prohibited by law or the management
25 agreement, to negotiate and sign its own contracts with
26 vendors.

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1 (14) A provision requiring the private manager to
2 periodically file, at least on an annual basis, appropriate
3 financial statements in a form and manner acceptable to the
4 Department.
5 (15) Cash reserves requirements.
6 (16) Procedural requirements for obtaining the prior
7 approval of the Department when a management agreement or
8 an interest in a management agreement is sold, assigned,
9 transferred, or pledged as collateral to secure financing.
10 (17) Grounds for the termination of the management
11 agreement by the Department or the private manager.
12 (18) Procedures for amendment of the agreement.
13 (19) A provision requiring the private manager to
14 engage in an open and competitive bidding process for any
15 procurement having a cost in excess of $50,000 that is not
16 a part of the private manager's final offer. The process
17 shall favor the selection of a vendor deemed to have
18 submitted a proposal that provides the Lottery with the
19 best overall value. The process shall not be subject to the
20 provisions of the Illinois Procurement Code, unless
21 specifically required by the management agreement.
22 (20) The transition of rights and obligations,
23 including any associated equipment or other assets used in
24 the operation of the Lottery, from the manager to any
25 successor manager of the lottery, including the
26 Department, following the termination of or foreclosure

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1 upon the management agreement.
2 (21) Right of use of copyrights, trademarks, and
3 service marks held by the Department in the name of the
4 State. The agreement must provide that any use of them by
5 the manager shall only be for the purpose of fulfilling its
6 obligations under the management agreement during the term
7 of the agreement.
8 (22) The disclosure of any information requested by the
9 Department to enable it to comply with the reporting
10 requirements and information requests provided for under
11 subsection (p) of this Section.
12 (e) Notwithstanding any other law to the contrary, the
13Department shall select a private manager through a competitive
14request for qualifications process consistent with Section
1520-35 of the Illinois Procurement Code, which shall take into
16account:
17 (1) the offeror's ability to market the Lottery to
18 those residents who are new, infrequent, or lapsed players
19 of the Lottery, especially those who are most likely to
20 make regular purchases on the Internet;
21 (2) the offeror's ability to address the State's
22 concern with the social effects of gambling on those who
23 can least afford to do so;
24 (3) the offeror's ability to provide the most
25 successful management of the Lottery for the benefit of the
26 people of the State based on current and past business

HB2498- 85 -LRB100 03891 AMC 13896 b
1 practices or plans of the offeror; and
2 (4) the offeror's poor or inadequate past performance
3 in servicing, equipping, operating or managing a lottery on
4 behalf of Illinois, another State or foreign government and
5 attracting persons who are not currently regular players of
6 a lottery.
7 (f) The Department may retain the services of an advisor or
8advisors with significant experience in financial services or
9the management, operation, and procurement of goods, services,
10and equipment for a government-run lottery to assist in the
11preparation of the terms of the request for qualifications and
12selection of the private manager. Any prospective advisor
13seeking to provide services under this subsection (f) shall
14disclose any material business or financial relationship
15during the past 3 years with any potential offeror, or with a
16contractor or subcontractor presently providing goods,
17services, or equipment to the Department to support the
18Lottery. The Department shall evaluate the material business or
19financial relationship of each prospective advisor. The
20Department shall not select any prospective advisor with a
21substantial business or financial relationship that the
22Department deems to impair the objectivity of the services to
23be provided by the prospective advisor. During the course of
24the advisor's engagement by the Department, and for a period of
25one year thereafter, the advisor shall not enter into any
26business or financial relationship with any offeror or any

HB2498- 86 -LRB100 03891 AMC 13896 b
1vendor identified to assist an offeror in performing its
2obligations under the management agreement. Any advisor
3retained by the Department shall be disqualified from being an
4offeror. The Department shall not include terms in the request
5for qualifications that provide a material advantage whether
6directly or indirectly to any potential offeror, or any
7contractor or subcontractor presently providing goods,
8services, or equipment to the Department to support the
9Lottery, including terms contained in previous responses to
10requests for proposals or qualifications submitted to
11Illinois, another State or foreign government when those terms
12are uniquely associated with a particular potential offeror,
13contractor, or subcontractor. The request for proposals
14offered by the Department on December 22, 2008 as
15"LOT08GAMESYS" and reference number "22016176" is declared
16void.
17 (g) The Department shall select at least 2 offerors as
18finalists to potentially serve as the private manager no later
19than August 9, 2010. Upon making preliminary selections, the
20Department shall schedule a public hearing on the finalists'
21proposals and provide public notice of the hearing at least 7
22calendar days before the hearing. The notice must include all
23of the following:
24 (1) The date, time, and place of the hearing.
25 (2) The subject matter of the hearing.
26 (3) A brief description of the management agreement to

HB2498- 87 -LRB100 03891 AMC 13896 b
1 be awarded.
2 (4) The identity of the offerors that have been
3 selected as finalists to serve as the private manager.
4 (5) The address and telephone number of the Department.
5 (h) At the public hearing, the Department shall (i) provide
6sufficient time for each finalist to present and explain its
7proposal to the Department and the Governor or the Governor's
8designee, including an opportunity to respond to questions
9posed by the Department, Governor, or designee and (ii) allow
10the public and non-selected offerors to comment on the
11presentations. The Governor or a designee shall attend the
12public hearing. After the public hearing, the Department shall
13have 14 calendar days to recommend to the Governor whether a
14management agreement should be entered into with a particular
15finalist. After reviewing the Department's recommendation, the
16Governor may accept or reject the Department's recommendation,
17and shall select a final offeror as the private manager by
18publication of a notice in the Illinois Procurement Bulletin on
19or before September 15, 2010. The Governor shall include in the
20notice a detailed explanation and the reasons why the final
21offeror is superior to other offerors and will provide
22management services in a manner that best achieves the
23objectives of this Section. The Governor shall also sign the
24management agreement with the private manager.
25 (i) Any action to contest the private manager selected by
26the Governor under this Section must be brought within 7

HB2498- 88 -LRB100 03891 AMC 13896 b
1calendar days after the publication of the notice of the
2designation of the private manager as provided in subsection
3(h) of this Section.
4 (j) The Lottery shall remain, for so long as a private
5manager manages the Lottery in accordance with provisions of
6this Act, a Lottery conducted by the State, and the State shall
7not be authorized to sell or transfer the Lottery to a third
8party.
9 (k) Any tangible personal property used exclusively in
10connection with the lottery that is owned by the Department and
11leased to the private manager shall be owned by the Department
12in the name of the State and shall be considered to be public
13property devoted to an essential public and governmental
14function.
15 (l) The Department may exercise any of its powers under
16this Section or any other law as necessary or desirable for the
17execution of the Department's powers under this Section.
18 (m) Neither this Section nor any management agreement
19entered into under this Section prohibits the General Assembly
20from authorizing forms of gambling that are not in direct
21competition with the Lottery. The forms of gambling authorized
22by this amendatory Act of the 100th General Assembly constitute
23authorized forms of gambling that are not in direct competition
24with the Lottery.
25 (n) The private manager shall be subject to a complete
26investigation in the third, seventh, and tenth years of the

HB2498- 89 -LRB100 03891 AMC 13896 b
1agreement (if the agreement is for a 10-year term) by the
2Department in cooperation with the Auditor General to determine
3whether the private manager has complied with this Section and
4the management agreement. The private manager shall bear the
5cost of an investigation or reinvestigation of the private
6manager under this subsection.
7 (o) The powers conferred by this Section are in addition
8and supplemental to the powers conferred by any other law. If
9any other law or rule is inconsistent with this Section,
10including, but not limited to, provisions of the Illinois
11Procurement Code, then this Section controls as to any
12management agreement entered into under this Section. This
13Section and any rules adopted under this Section contain full
14and complete authority for a management agreement between the
15Department and a private manager. No law, procedure,
16proceeding, publication, notice, consent, approval, order, or
17act by the Department or any other officer, Department, agency,
18or instrumentality of the State or any political subdivision is
19required for the Department to enter into a management
20agreement under this Section. This Section contains full and
21complete authority for the Department to approve any contracts
22entered into by a private manager with a vendor providing
23goods, services, or both goods and services to the private
24manager under the terms of the management agreement, including
25subcontractors of such vendors.
26 Upon receipt of a written request from the Chief

HB2498- 90 -LRB100 03891 AMC 13896 b
1Procurement Officer, the Department shall provide to the Chief
2Procurement Officer a complete and un-redacted copy of the
3management agreement or any contract that is subject to the
4Department's approval authority under this subsection (o). The
5Department shall provide a copy of the agreement or contract to
6the Chief Procurement Officer in the time specified by the
7Chief Procurement Officer in his or her written request, but no
8later than 5 business days after the request is received by the
9Department. The Chief Procurement Officer must retain any
10portions of the management agreement or of any contract
11designated by the Department as confidential, proprietary, or
12trade secret information in complete confidence pursuant to
13subsection (g) of Section 7 of the Freedom of Information Act.
14The Department shall also provide the Chief Procurement Officer
15with reasonable advance written notice of any contract that is
16pending Department approval.
17 Notwithstanding any other provision of this Section to the
18contrary, the Chief Procurement Officer shall adopt
19administrative rules, including emergency rules, to establish
20a procurement process to select a successor private manager if
21a private management agreement has been terminated. The
22selection process shall at a minimum take into account the
23criteria set forth in items (1) through (4) of subsection (e)
24of this Section and may include provisions consistent with
25subsections (f), (g), (h), and (i) of this Section. The Chief
26Procurement Officer shall also implement and administer the

HB2498- 91 -LRB100 03891 AMC 13896 b
1adopted selection process upon the termination of a private
2management agreement. The Department, after the Chief
3Procurement Officer certifies that the procurement process has
4been followed in accordance with the rules adopted under this
5subsection (o), shall select a final offeror as the private
6manager and sign the management agreement with the private
7manager.
8 Except as provided in Sections 21.2, 21.5, 21.6, 21.7,
921.8, and 21.9, the Department shall distribute all proceeds of
10lottery tickets and shares sold in the following priority and
11manner:
12 (1) The payment of prizes and retailer bonuses.
13 (2) The payment of costs incurred in the operation and
14 administration of the Lottery, including the payment of
15 sums due to the private manager under the management
16 agreement with the Department.
17 (3) On the last day of each month or as soon thereafter
18 as possible, the State Comptroller shall direct and the
19 State Treasurer shall transfer from the State Lottery Fund
20 to the Common School Fund an amount that is equal to the
21 proceeds transferred in the corresponding month of fiscal
22 year 2009, as adjusted for inflation, to the Common School
23 Fund.
24 (4) On or before the last day of each fiscal year,
25 deposit any remaining proceeds, subject to payments under
26 items (1), (2), and (3) into the Capital Projects Fund each

HB2498- 92 -LRB100 03891 AMC 13896 b
1 fiscal year.
2 (p) The Department shall be subject to the following
3reporting and information request requirements:
4 (1) the Department shall submit written quarterly
5 reports to the Governor and the General Assembly on the
6 activities and actions of the private manager selected
7 under this Section;
8 (2) upon request of the Chief Procurement Officer, the
9 Department shall promptly produce information related to
10 the procurement activities of the Department and the
11 private manager requested by the Chief Procurement
12 Officer; the Chief Procurement Officer must retain
13 confidential, proprietary, or trade secret information
14 designated by the Department in complete confidence
15 pursuant to subsection (g) of Section 7 of the Freedom of
16 Information Act; and
17 (3) at least 30 days prior to the beginning of the
18 Department's fiscal year, the Department shall prepare an
19 annual written report on the activities of the private
20 manager selected under this Section and deliver that report
21 to the Governor and General Assembly.
22(Source: P.A. 97-464, eff. 8-19-11; 98-463, eff. 8-16-13;
2398-649, eff. 6-16-14.)
24 Section 90-10. The Department of Revenue Law of the Civil
25Administrative Code of Illinois is amended by changing Section

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12505-305 as follows:
2 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
3 Sec. 2505-305. Investigators.
4 (a) The Department has the power to appoint investigators
5to conduct all investigations, searches, seizures, arrests,
6and other duties imposed under the provisions of any law
7administered by the Department. Except as provided in
8subsection (c), these investigators have and may exercise all
9the powers of peace officers solely for the purpose of
10enforcing taxing measures administered by the Department.
11 (b) The Director must authorize to each investigator
12employed under this Section and to any other employee of the
13Department exercising the powers of a peace officer a distinct
14badge that, on its face, (i) clearly states that the badge is
15authorized by the Department and (ii) contains a unique
16identifying number. No other badge shall be authorized by the
17Department.
18 (c) The Department may enter into agreements with the
19Illinois Gaming Board providing that investigators appointed
20under this Section shall exercise the peace officer powers set
21forth in paragraph (20.6) of subsection (c) of Section 5 of the
22Illinois Riverboat Gambling Act.
23(Source: P.A. 96-37, eff. 7-13-09.)
24 Section 90-12. The Illinois State Auditing Act is amended

HB2498- 94 -LRB100 03891 AMC 13896 b
1by changing Section 3-1 as follows:
2 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
3 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
4General has jurisdiction over all State agencies to make post
5audits and investigations authorized by or under this Act or
6the Constitution.
7 The Auditor General has jurisdiction over local government
8agencies and private agencies only:
9 (a) to make such post audits authorized by or under
10 this Act as are necessary and incidental to a post audit of
11 a State agency or of a program administered by a State
12 agency involving public funds of the State, but this
13 jurisdiction does not include any authority to review local
14 governmental agencies in the obligation, receipt,
15 expenditure or use of public funds of the State that are
16 granted without limitation or condition imposed by law,
17 other than the general limitation that such funds be used
18 for public purposes;
19 (b) to make investigations authorized by or under this
20 Act or the Constitution; and
21 (c) to make audits of the records of local government
22 agencies to verify actual costs of state-mandated programs
23 when directed to do so by the Legislative Audit Commission
24 at the request of the State Board of Appeals under the
25 State Mandates Act.

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1 In addition to the foregoing, the Auditor General may
2conduct an audit of the Metropolitan Pier and Exposition
3Authority, the Regional Transportation Authority, the Suburban
4Bus Division, the Commuter Rail Division and the Chicago
5Transit Authority and any other subsidized carrier when
6authorized by the Legislative Audit Commission. Such audit may
7be a financial, management or program audit, or any combination
8thereof.
9 The audit shall determine whether they are operating in
10accordance with all applicable laws and regulations. Subject to
11the limitations of this Act, the Legislative Audit Commission
12may by resolution specify additional determinations to be
13included in the scope of the audit.
14 In addition to the foregoing, the Auditor General must also
15conduct a financial audit of the Illinois Sports Facilities
16Authority's expenditures of public funds in connection with the
17reconstruction, renovation, remodeling, extension, or
18improvement of all or substantially all of any existing
19"facility", as that term is defined in the Illinois Sports
20Facilities Authority Act.
21 The Auditor General may also conduct an audit, when
22authorized by the Legislative Audit Commission, of any hospital
23which receives 10% or more of its gross revenues from payments
24from the State of Illinois, Department of Healthcare and Family
25Services (formerly Department of Public Aid), Medical
26Assistance Program.

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1 The Auditor General is authorized to conduct financial and
2compliance audits of the Illinois Distance Learning Foundation
3and the Illinois Conservation Foundation.
4 As soon as practical after the effective date of this
5amendatory Act of 1995, the Auditor General shall conduct a
6compliance and management audit of the City of Chicago and any
7other entity with regard to the operation of Chicago O'Hare
8International Airport, Chicago Midway Airport and Merrill C.
9Meigs Field. The audit shall include, but not be limited to, an
10examination of revenues, expenses, and transfers of funds;
11purchasing and contracting policies and practices; staffing
12levels; and hiring practices and procedures. When completed,
13the audit required by this paragraph shall be distributed in
14accordance with Section 3-14.
15 The Auditor General shall conduct a financial and
16compliance and program audit of distributions from the
17Municipal Economic Development Fund during the immediately
18preceding calendar year pursuant to Section 8-403.1 of the
19Public Utilities Act at no cost to the city, village, or
20incorporated town that received the distributions.
21 The Auditor General must conduct an audit of the Health
22Facilities and Services Review Board pursuant to Section 19.5
23of the Illinois Health Facilities Planning Act.
24 The Auditor General must conduct an audit of the Chicago
25Casino Development Authority pursuant to Section 1-60 of the
26Chicago Casino Development Authority Act.

HB2498- 97 -LRB100 03891 AMC 13896 b
1 The Auditor General of the State of Illinois shall annually
2conduct or cause to be conducted a financial and compliance
3audit of the books and records of any county water commission
4organized pursuant to the Water Commission Act of 1985 and
5shall file a copy of the report of that audit with the Governor
6and the Legislative Audit Commission. The filed audit shall be
7open to the public for inspection. The cost of the audit shall
8be charged to the county water commission in accordance with
9Section 6z-27 of the State Finance Act. The county water
10commission shall make available to the Auditor General its
11books and records and any other documentation, whether in the
12possession of its trustees or other parties, necessary to
13conduct the audit required. These audit requirements apply only
14through July 1, 2007.
15 The Auditor General must conduct audits of the Rend Lake
16Conservancy District as provided in Section 25.5 of the River
17Conservancy Districts Act.
18 The Auditor General must conduct financial audits of the
19Southeastern Illinois Economic Development Authority as
20provided in Section 70 of the Southeastern Illinois Economic
21Development Authority Act.
22 The Auditor General shall conduct a compliance audit in
23accordance with subsections (d) and (f) of Section 30 of the
24Innovation Development and Economy Act.
25(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
2696-939, eff. 6-24-10.)

HB2498- 98 -LRB100 03891 AMC 13896 b
1 Section 90-15. The State Finance Act is amended by adding
2Sections 5.878, 5.879, 5.880, 5.881, 6z-102, and 6z-103 and by
3changing Section 6z-45 as follows:
4 (30 ILCS 105/5.878 new)
5 Sec. 5.878. The Gaming Facilities Fee Revenue Fund.
6 (30 ILCS 105/5.879 new)
7 Sec. 5.879. The State Fairgrounds Capital Improvement
8Fund.
9 (30 ILCS 105/5.880 new)
10 Sec. 5.880. The Depressed Communities Economic Development
11Fund.
12 (30 ILCS 105/5.881 new)
13 Sec. 5.881. The Latino Community Economic Development
14Fund.
15 (30 ILCS 105/6z-45)
16 Sec. 6z-45. The School Infrastructure Fund.
17 (a) The School Infrastructure Fund is created as a special
18fund in the State Treasury.
19 In addition to any other deposits authorized by law,
20beginning January 1, 2000, on the first day of each month, or

HB2498- 99 -LRB100 03891 AMC 13896 b
1as soon thereafter as may be practical, the State Treasurer and
2State Comptroller shall transfer the sum of $5,000,000 from the
3General Revenue Fund to the School Infrastructure Fund, except
4that, notwithstanding any other provision of law, and in
5addition to any other transfers that may be provided for by
6law, before June 30, 2012, the Comptroller and the Treasurer
7shall transfer $45,000,000 from the General Revenue Fund into
8the School Infrastructure Fund, and, for fiscal year 2013 only,
9the Treasurer and the Comptroller shall transfer $1,250,000
10from the General Revenue Fund to the School Infrastructure Fund
11on the first day of each month; provided, however, that no such
12transfers shall be made from July 1, 2001 through June 30,
132003.
14 (b) Subject to the transfer provisions set forth below,
15money in the School Infrastructure Fund shall, if and when the
16State of Illinois incurs any bonded indebtedness for the
17construction of school improvements under the School
18Construction Law, be set aside and used for the purpose of
19paying and discharging annually the principal and interest on
20that bonded indebtedness then due and payable, and for no other
21purpose.
22 In addition to other transfers to the General Obligation
23Bond Retirement and Interest Fund made pursuant to Section 15
24of the General Obligation Bond Act, upon each delivery of bonds
25issued for construction of school improvements under the School
26Construction Law, the State Comptroller shall compute and

HB2498- 100 -LRB100 03891 AMC 13896 b
1certify to the State Treasurer the total amount of principal
2of, interest on, and premium, if any, on such bonds during the
3then current and each succeeding fiscal year. With respect to
4the interest payable on variable rate bonds, such
5certifications shall be calculated at the maximum rate of
6interest that may be payable during the fiscal year, after
7taking into account any credits permitted in the related
8indenture or other instrument against the amount of such
9interest required to be appropriated for that period.
10 On or before the last day of each month, the State
11Treasurer and State Comptroller shall transfer from the School
12Infrastructure Fund to the General Obligation Bond Retirement
13and Interest Fund an amount sufficient to pay the aggregate of
14the principal of, interest on, and premium, if any, on the
15bonds payable on their next payment date, divided by the number
16of monthly transfers occurring between the last previous
17payment date (or the delivery date if no payment date has yet
18occurred) and the next succeeding payment date. Interest
19payable on variable rate bonds shall be calculated at the
20maximum rate of interest that may be payable for the relevant
21period, after taking into account any credits permitted in the
22related indenture or other instrument against the amount of
23such interest required to be appropriated for that period.
24Interest for which moneys have already been deposited into the
25capitalized interest account within the General Obligation
26Bond Retirement and Interest Fund shall not be included in the

HB2498- 101 -LRB100 03891 AMC 13896 b
1calculation of the amounts to be transferred under this
2subsection.
3 (b-5) The money deposited into the School Infrastructure
4Fund from transfers pursuant to subsections (c-30) and (c-35)
5of Section 13 of the Illinois Riverboat Gambling Act shall be
6applied, without further direction, as provided in subsection
7(b-3) of Section 5-35 of the School Construction Law.
8 (c) The surplus, if any, in the School Infrastructure Fund
9after payments made pursuant to subsections (b) and (b-5) of
10this Section shall, subject to appropriation, be used as
11follows:
12 First - to make 3 payments to the School Technology
13Revolving Loan Fund as follows:
14 Transfer of $30,000,000 in fiscal year 1999;
15 Transfer of $20,000,000 in fiscal year 2000; and
16 Transfer of $10,000,000 in fiscal year 2001.
17 Second - to pay the expenses of the State Board of
18Education and the Capital Development Board in administering
19programs under the School Construction Law, the total expenses
20not to exceed $1,200,000 in any fiscal year.
21 Third - to pay any amounts due for grants for school
22construction projects and debt service under the School
23Construction Law.
24 Fourth - to pay any amounts due for grants for school
25maintenance projects under the School Construction Law.
26(Source: P.A. 97-732, eff. 6-30-12; 98-18, eff. 6-7-13.)

HB2498- 102 -LRB100 03891 AMC 13896 b
1 (30 ILCS 105/6z-102 new)
2 Sec. 6z-102. The Gaming Facilities Fee Revenue Fund.
3 (a) The Gaming Facilities Fee Revenue Fund is created as a
4special fund in the State treasury.
5 (b) The revenues in the Fund shall be used, subject to
6appropriation, by the Comptroller for the purpose of (i)
7providing appropriations to the Illinois Gaming Board for the
8administration and enforcement of the Illinois Gambling Act and
9the applicable provisions of the Chicago Casino Development
10Authority Act and (ii) payment of vouchers that are outstanding
11for more than 60 days. Whenever practical, the Comptroller must
12prioritize voucher payments for expenses related to medical
13assistance under the Illinois Public Aid Code, the Children's
14Health Insurance Program Act, the Covering ALL KIDS Health
15Insurance Act, and the Senior Citizens and Disabled Persons
16Property Tax Relief and Pharmaceutical Assistance Act.
17 (c) The Fund shall consist of fee revenues received
18pursuant to subsection (e) of Section 1-45 of the Chicago
19Casino Development Authority Act and pursuant to subsections
20(e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections
21(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
22Act. All interest earned on moneys in the Fund shall be
23deposited into the Fund.
24 (d) The Fund shall not be subject to administrative charges
25or chargebacks, including, but not limited to, those authorized

HB2498- 103 -LRB100 03891 AMC 13896 b
1under subsection (h) of Section 8 of this Act.
2 (30 ILCS 105/6z-103 new)
3 Sec. 6z-103. The State Fairgrounds Capital Improvement
4Fund. There is created the State Fairgrounds Capital
5Improvement Fund, a special fund in the State treasury. Moneys
6in the Fund may be used by the Department of Agriculture,
7subject to appropriation, solely for infrastructure
8improvements to the Illinois State Fairgrounds in Sangamon
9County, including, but not limited to, track surfaces (main
10track and practice track), grandstands, audio and visual
11systems, paddocks and barns and associated surface areas,
12restroom facilities on the backstretch, and roadway surfaces
13around the racing facility. In addition, no more than 5% of the
14moneys annually transferred into the Fund may be used by the
15Department for all costs associated with fire protection and
16fire protection services for the Illinois State Fairgrounds.
17The State Fairgrounds Capital Improvement Fund is not subject
18to administrative chargebacks, including, but not limited to,
19those authorized under Section 8h of the State Finance Act.
20 Section 90-20. The Illinois Income Tax Act is amended by
21changing Sections 201, 303, 304 and 710 as follows:
22 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
23 Sec. 201. Tax Imposed.

HB2498- 104 -LRB100 03891 AMC 13896 b
1 (a) In general. A tax measured by net income is hereby
2imposed on every individual, corporation, trust and estate for
3each taxable year ending after July 31, 1969 on the privilege
4of earning or receiving income in or as a resident of this
5State. Such tax shall be in addition to all other occupation or
6privilege taxes imposed by this State or by any municipal
7corporation or political subdivision thereof.
8 (b) Rates. The tax imposed by subsection (a) of this
9Section shall be determined as follows, except as adjusted by
10subsection (d-1):
11 (1) In the case of an individual, trust or estate, for
12 taxable years ending prior to July 1, 1989, an amount equal
13 to 2 1/2% of the taxpayer's net income for the taxable
14 year.
15 (2) In the case of an individual, trust or estate, for
16 taxable years beginning prior to July 1, 1989 and ending
17 after June 30, 1989, an amount equal to the sum of (i) 2
18 1/2% of the taxpayer's net income for the period prior to
19 July 1, 1989, as calculated under Section 202.3, and (ii)
20 3% of the taxpayer's net income for the period after June
21 30, 1989, as calculated under Section 202.3.
22 (3) In the case of an individual, trust or estate, for
23 taxable years beginning after June 30, 1989, and ending
24 prior to January 1, 2011, an amount equal to 3% of the
25 taxpayer's net income for the taxable year.
26 (4) In the case of an individual, trust, or estate, for

HB2498- 105 -LRB100 03891 AMC 13896 b
1 taxable years beginning prior to January 1, 2011, and
2 ending after December 31, 2010, an amount equal to the sum
3 of (i) 3% of the taxpayer's net income for the period prior
4 to January 1, 2011, as calculated under Section 202.5, and
5 (ii) 5% of the taxpayer's net income for the period after
6 December 31, 2010, as calculated under Section 202.5.
7 (5) In the case of an individual, trust, or estate, for
8 taxable years beginning on or after January 1, 2011, and
9 ending prior to January 1, 2015, an amount equal to 5% of
10 the taxpayer's net income for the taxable year.
11 (5.1) In the case of an individual, trust, or estate,
12 for taxable years beginning prior to January 1, 2015, and
13 ending after December 31, 2014, an amount equal to the sum
14 of (i) 5% of the taxpayer's net income for the period prior
15 to January 1, 2015, as calculated under Section 202.5, and
16 (ii) 3.75% of the taxpayer's net income for the period
17 after December 31, 2014, as calculated under Section 202.5.
18 (5.2) In the case of an individual, trust, or estate,
19 for taxable years beginning on or after January 1, 2015,
20 and ending prior to January 1, 2025, an amount equal to
21 3.75% of the taxpayer's net income for the taxable year.
22 (5.3) In the case of an individual, trust, or estate,
23 for taxable years beginning prior to January 1, 2025, and
24 ending after December 31, 2024, an amount equal to the sum
25 of (i) 3.75% of the taxpayer's net income for the period
26 prior to January 1, 2025, as calculated under Section

HB2498- 106 -LRB100 03891 AMC 13896 b
1 202.5, and (ii) 3.25% of the taxpayer's net income for the
2 period after December 31, 2024, as calculated under Section
3 202.5.
4 (5.4) In the case of an individual, trust, or estate,
5 for taxable years beginning on or after January 1, 2025, an
6 amount equal to 3.25% of the taxpayer's net income for the
7 taxable year.
8 (6) In the case of a corporation, for taxable years
9 ending prior to July 1, 1989, an amount equal to 4% of the
10 taxpayer's net income for the taxable year.
11 (7) In the case of a corporation, for taxable years
12 beginning prior to July 1, 1989 and ending after June 30,
13 1989, an amount equal to the sum of (i) 4% of the
14 taxpayer's net income for the period prior to July 1, 1989,
15 as calculated under Section 202.3, and (ii) 4.8% of the
16 taxpayer's net income for the period after June 30, 1989,
17 as calculated under Section 202.3.
18 (8) In the case of a corporation, for taxable years
19 beginning after June 30, 1989, and ending prior to January
20 1, 2011, an amount equal to 4.8% of the taxpayer's net
21 income for the taxable year.
22 (9) In the case of a corporation, for taxable years
23 beginning prior to January 1, 2011, and ending after
24 December 31, 2010, an amount equal to the sum of (i) 4.8%
25 of the taxpayer's net income for the period prior to
26 January 1, 2011, as calculated under Section 202.5, and

HB2498- 107 -LRB100 03891 AMC 13896 b
1 (ii) 7% of the taxpayer's net income for the period after
2 December 31, 2010, as calculated under Section 202.5.
3 (10) In the case of a corporation, for taxable years
4 beginning on or after January 1, 2011, and ending prior to
5 January 1, 2015, an amount equal to 7% of the taxpayer's
6 net income for the taxable year.
7 (11) In the case of a corporation, for taxable years
8 beginning prior to January 1, 2015, and ending after
9 December 31, 2014, an amount equal to the sum of (i) 7% of
10 the taxpayer's net income for the period prior to January
11 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
12 of the taxpayer's net income for the period after December
13 31, 2014, as calculated under Section 202.5.
14 (12) In the case of a corporation, for taxable years
15 beginning on or after January 1, 2015, and ending prior to
16 January 1, 2025, an amount equal to 5.25% of the taxpayer's
17 net income for the taxable year.
18 (13) In the case of a corporation, for taxable years
19 beginning prior to January 1, 2025, and ending after
20 December 31, 2024, an amount equal to the sum of (i) 5.25%
21 of the taxpayer's net income for the period prior to
22 January 1, 2025, as calculated under Section 202.5, and
23 (ii) 4.8% of the taxpayer's net income for the period after
24 December 31, 2024, as calculated under Section 202.5.
25 (14) In the case of a corporation, for taxable years
26 beginning on or after January 1, 2025, an amount equal to

HB2498- 108 -LRB100 03891 AMC 13896 b
1 4.8% of the taxpayer's net income for the taxable year.
2 The rates under this subsection (b) are subject to the
3provisions of Section 201.5.
4 (b-5) Surcharge; sale or exchange of assets, properties,
5and intangibles of electronic gaming licensees. For each of
6taxable years 2017 through 2025, a surcharge is imposed on all
7taxpayers on income arising from the sale or exchange of
8capital assets, depreciable business property, real property
9used in the trade or business, and Section 197 intangibles (i)
10of an organization licensee under the Illinois Horse Racing Act
11of 1975 and (ii) of an electronic gaming licensee under the
12Illinois Gambling Act. The amount of the surcharge is equal to
13the amount of federal income tax liability for the taxable year
14attributable to those sales and exchanges. The surcharge
15imposed shall not apply if:
16 (1) the electronic gaming license, organization
17 license, or race track property is transferred as a result
18 of any of the following:
19 (A) bankruptcy, a receivership, or a debt
20 adjustment initiated by or against the initial
21 licensee or the substantial owners of the initial
22 licensee;
23 (B) cancellation, revocation, or termination of
24 any such license by the Illinois Gaming Board or the
25 Illinois Racing Board;
26 (C) a determination by the Illinois Gaming Board

HB2498- 109 -LRB100 03891 AMC 13896 b
1 that transfer of the license is in the best interests
2 of Illinois gaming;
3 (D) the death of an owner of the equity interest in
4 a licensee;
5 (E) the acquisition of a controlling interest in
6 the stock or substantially all of the assets of a
7 publicly traded company;
8 (F) a transfer by a parent company to a wholly
9 owned subsidiary; or
10 (G) the transfer or sale to or by one person to
11 another person where both persons were initial owners
12 of the license when the license was issued; or
13 (2) the controlling interest in the electronic gaming
14 license, organization license, or race track property is
15 transferred in a transaction to lineal descendants in which
16 no gain or loss is recognized or as a result of a
17 transaction in accordance with Section 351 of the Internal
18 Revenue Code in which no gain or loss is recognized; or
19 (3) live horse racing was not conducted in 2011 under a
20 license issued pursuant to the Illinois Horse Racing Act of
21 1975.
22 The transfer of an electronic gaming license, organization
23license, or race track property by a person other than the
24initial licensee to receive the electronic gaming license is
25not subject to a surcharge. The Department shall adopt rules
26necessary to implement and administer this subsection.

HB2498- 110 -LRB100 03891 AMC 13896 b
1 (c) Personal Property Tax Replacement Income Tax.
2Beginning on July 1, 1979 and thereafter, in addition to such
3income tax, there is also hereby imposed the Personal Property
4Tax Replacement Income Tax measured by net income on every
5corporation (including Subchapter S corporations), partnership
6and trust, for each taxable year ending after June 30, 1979.
7Such taxes are imposed on the privilege of earning or receiving
8income in or as a resident of this State. The Personal Property
9Tax Replacement Income Tax shall be in addition to the income
10tax imposed by subsections (a) and (b) of this Section and in
11addition to all other occupation or privilege taxes imposed by
12this State or by any municipal corporation or political
13subdivision thereof.
14 (d) Additional Personal Property Tax Replacement Income
15Tax Rates. The personal property tax replacement income tax
16imposed by this subsection and subsection (c) of this Section
17in the case of a corporation, other than a Subchapter S
18corporation and except as adjusted by subsection (d-1), shall
19be an additional amount equal to 2.85% of such taxpayer's net
20income for the taxable year, except that beginning on January
211, 1981, and thereafter, the rate of 2.85% specified in this
22subsection shall be reduced to 2.5%, and in the case of a
23partnership, trust or a Subchapter S corporation shall be an
24additional amount equal to 1.5% of such taxpayer's net income
25for the taxable year.
26 (d-1) Rate reduction for certain foreign insurers. In the

HB2498- 111 -LRB100 03891 AMC 13896 b
1case of a foreign insurer, as defined by Section 35A-5 of the
2Illinois Insurance Code, whose state or country of domicile
3imposes on insurers domiciled in Illinois a retaliatory tax
4(excluding any insurer whose premiums from reinsurance assumed
5are 50% or more of its total insurance premiums as determined
6under paragraph (2) of subsection (b) of Section 304, except
7that for purposes of this determination premiums from
8reinsurance do not include premiums from inter-affiliate
9reinsurance arrangements), beginning with taxable years ending
10on or after December 31, 1999, the sum of the rates of tax
11imposed by subsections (b) and (d) shall be reduced (but not
12increased) to the rate at which the total amount of tax imposed
13under this Act, net of all credits allowed under this Act,
14shall equal (i) the total amount of tax that would be imposed
15on the foreign insurer's net income allocable to Illinois for
16the taxable year by such foreign insurer's state or country of
17domicile if that net income were subject to all income taxes
18and taxes measured by net income imposed by such foreign
19insurer's state or country of domicile, net of all credits
20allowed or (ii) a rate of zero if no such tax is imposed on such
21income by the foreign insurer's state of domicile. For the
22purposes of this subsection (d-1), an inter-affiliate includes
23a mutual insurer under common management.
24 (1) For the purposes of subsection (d-1), in no event
25 shall the sum of the rates of tax imposed by subsections
26 (b) and (d) be reduced below the rate at which the sum of:

HB2498- 112 -LRB100 03891 AMC 13896 b
1 (A) the total amount of tax imposed on such foreign
2 insurer under this Act for a taxable year, net of all
3 credits allowed under this Act, plus
4 (B) the privilege tax imposed by Section 409 of the
5 Illinois Insurance Code, the fire insurance company
6 tax imposed by Section 12 of the Fire Investigation
7 Act, and the fire department taxes imposed under
8 Section 11-10-1 of the Illinois Municipal Code,
9 equals 1.25% for taxable years ending prior to December 31,
10 2003, or 1.75% for taxable years ending on or after
11 December 31, 2003, of the net taxable premiums written for
12 the taxable year, as described by subsection (1) of Section
13 409 of the Illinois Insurance Code. This paragraph will in
14 no event increase the rates imposed under subsections (b)
15 and (d).
16 (2) Any reduction in the rates of tax imposed by this
17 subsection shall be applied first against the rates imposed
18 by subsection (b) and only after the tax imposed by
19 subsection (a) net of all credits allowed under this
20 Section other than the credit allowed under subsection (i)
21 has been reduced to zero, against the rates imposed by
22 subsection (d).
23 This subsection (d-1) is exempt from the provisions of
24Section 250.
25 (e) Investment credit. A taxpayer shall be allowed a credit
26against the Personal Property Tax Replacement Income Tax for

HB2498- 113 -LRB100 03891 AMC 13896 b
1investment in qualified property.
2 (1) A taxpayer shall be allowed a credit equal to .5%
3 of the basis of qualified property placed in service during
4 the taxable year, provided such property is placed in
5 service on or after July 1, 1984. There shall be allowed an
6 additional credit equal to .5% of the basis of qualified
7 property placed in service during the taxable year,
8 provided such property is placed in service on or after
9 July 1, 1986, and the taxpayer's base employment within
10 Illinois has increased by 1% or more over the preceding
11 year as determined by the taxpayer's employment records
12 filed with the Illinois Department of Employment Security.
13 Taxpayers who are new to Illinois shall be deemed to have
14 met the 1% growth in base employment for the first year in
15 which they file employment records with the Illinois
16 Department of Employment Security. The provisions added to
17 this Section by Public Act 85-1200 (and restored by Public
18 Act 87-895) shall be construed as declaratory of existing
19 law and not as a new enactment. If, in any year, the
20 increase in base employment within Illinois over the
21 preceding year is less than 1%, the additional credit shall
22 be limited to that percentage times a fraction, the
23 numerator of which is .5% and the denominator of which is
24 1%, but shall not exceed .5%. The investment credit shall
25 not be allowed to the extent that it would reduce a
26 taxpayer's liability in any tax year below zero, nor may

HB2498- 114 -LRB100 03891 AMC 13896 b
1 any credit for qualified property be allowed for any year
2 other than the year in which the property was placed in
3 service in Illinois. For tax years ending on or after
4 December 31, 1987, and on or before December 31, 1988, the
5 credit shall be allowed for the tax year in which the
6 property is placed in service, or, if the amount of the
7 credit exceeds the tax liability for that year, whether it
8 exceeds the original liability or the liability as later
9 amended, such excess may be carried forward and applied to
10 the tax liability of the 5 taxable years following the
11 excess credit years if the taxpayer (i) makes investments
12 which cause the creation of a minimum of 2,000 full-time
13 equivalent jobs in Illinois, (ii) is located in an
14 enterprise zone established pursuant to the Illinois
15 Enterprise Zone Act and (iii) is certified by the
16 Department of Commerce and Community Affairs (now
17 Department of Commerce and Economic Opportunity) as
18 complying with the requirements specified in clause (i) and
19 (ii) by July 1, 1986. The Department of Commerce and
20 Community Affairs (now Department of Commerce and Economic
21 Opportunity) shall notify the Department of Revenue of all
22 such certifications immediately. For tax years ending
23 after December 31, 1988, the credit shall be allowed for
24 the tax year in which the property is placed in service,
25 or, if the amount of the credit exceeds the tax liability
26 for that year, whether it exceeds the original liability or

HB2498- 115 -LRB100 03891 AMC 13896 b
1 the liability as later amended, such excess may be carried
2 forward and applied to the tax liability of the 5 taxable
3 years following the excess credit years. The credit shall
4 be applied to the earliest year for which there is a
5 liability. If there is credit from more than one tax year
6 that is available to offset a liability, earlier credit
7 shall be applied first.
8 (2) The term "qualified property" means property
9 which:
10 (A) is tangible, whether new or used, including
11 buildings and structural components of buildings and
12 signs that are real property, but not including land or
13 improvements to real property that are not a structural
14 component of a building such as landscaping, sewer
15 lines, local access roads, fencing, parking lots, and
16 other appurtenances;
17 (B) is depreciable pursuant to Section 167 of the
18 Internal Revenue Code, except that "3-year property"
19 as defined in Section 168(c)(2)(A) of that Code is not
20 eligible for the credit provided by this subsection
21 (e);
22 (C) is acquired by purchase as defined in Section
23 179(d) of the Internal Revenue Code;
24 (D) is used in Illinois by a taxpayer who is
25 primarily engaged in manufacturing, or in mining coal
26 or fluorite, or in retailing, or was placed in service

HB2498- 116 -LRB100 03891 AMC 13896 b
1 on or after July 1, 2006 in a River Edge Redevelopment
2 Zone established pursuant to the River Edge
3 Redevelopment Zone Act; and
4 (E) has not previously been used in Illinois in
5 such a manner and by such a person as would qualify for
6 the credit provided by this subsection (e) or
7 subsection (f).
8 (3) For purposes of this subsection (e),
9 "manufacturing" means the material staging and production
10 of tangible personal property by procedures commonly
11 regarded as manufacturing, processing, fabrication, or
12 assembling which changes some existing material into new
13 shapes, new qualities, or new combinations. For purposes of
14 this subsection (e) the term "mining" shall have the same
15 meaning as the term "mining" in Section 613(c) of the
16 Internal Revenue Code. For purposes of this subsection (e),
17 the term "retailing" means the sale of tangible personal
18 property for use or consumption and not for resale, or
19 services rendered in conjunction with the sale of tangible
20 personal property for use or consumption and not for
21 resale. For purposes of this subsection (e), "tangible
22 personal property" has the same meaning as when that term
23 is used in the Retailers' Occupation Tax Act, and, for
24 taxable years ending after December 31, 2008, does not
25 include the generation, transmission, or distribution of
26 electricity.

HB2498- 117 -LRB100 03891 AMC 13896 b
1 (4) The basis of qualified property shall be the basis
2 used to compute the depreciation deduction for federal
3 income tax purposes.
4 (5) If the basis of the property for federal income tax
5 depreciation purposes is increased after it has been placed
6 in service in Illinois by the taxpayer, the amount of such
7 increase shall be deemed property placed in service on the
8 date of such increase in basis.
9 (6) The term "placed in service" shall have the same
10 meaning as under Section 46 of the Internal Revenue Code.
11 (7) If during any taxable year, any property ceases to
12 be qualified property in the hands of the taxpayer within
13 48 months after being placed in service, or the situs of
14 any qualified property is moved outside Illinois within 48
15 months after being placed in service, the Personal Property
16 Tax Replacement Income Tax for such taxable year shall be
17 increased. Such increase shall be determined by (i)
18 recomputing the investment credit which would have been
19 allowed for the year in which credit for such property was
20 originally allowed by eliminating such property from such
21 computation and, (ii) subtracting such recomputed credit
22 from the amount of credit previously allowed. For the
23 purposes of this paragraph (7), a reduction of the basis of
24 qualified property resulting from a redetermination of the
25 purchase price shall be deemed a disposition of qualified
26 property to the extent of such reduction.

HB2498- 118 -LRB100 03891 AMC 13896 b
1 (8) Unless the investment credit is extended by law,
2 the basis of qualified property shall not include costs
3 incurred after December 31, 2018, except for costs incurred
4 pursuant to a binding contract entered into on or before
5 December 31, 2018.
6 (9) Each taxable year ending before December 31, 2000,
7 a partnership may elect to pass through to its partners the
8 credits to which the partnership is entitled under this
9 subsection (e) for the taxable year. A partner may use the
10 credit allocated to him or her under this paragraph only
11 against the tax imposed in subsections (c) and (d) of this
12 Section. If the partnership makes that election, those
13 credits shall be allocated among the partners in the
14 partnership in accordance with the rules set forth in
15 Section 704(b) of the Internal Revenue Code, and the rules
16 promulgated under that Section, and the allocated amount of
17 the credits shall be allowed to the partners for that
18 taxable year. The partnership shall make this election on
19 its Personal Property Tax Replacement Income Tax return for
20 that taxable year. The election to pass through the credits
21 shall be irrevocable.
22 For taxable years ending on or after December 31, 2000,
23 a partner that qualifies its partnership for a subtraction
24 under subparagraph (I) of paragraph (2) of subsection (d)
25 of Section 203 or a shareholder that qualifies a Subchapter
26 S corporation for a subtraction under subparagraph (S) of

HB2498- 119 -LRB100 03891 AMC 13896 b
1 paragraph (2) of subsection (b) of Section 203 shall be
2 allowed a credit under this subsection (e) equal to its
3 share of the credit earned under this subsection (e) during
4 the taxable year by the partnership or Subchapter S
5 corporation, determined in accordance with the
6 determination of income and distributive share of income
7 under Sections 702 and 704 and Subchapter S of the Internal
8 Revenue Code. This paragraph is exempt from the provisions
9 of Section 250.
10 (f) Investment credit; Enterprise Zone; River Edge
11Redevelopment Zone.
12 (1) A taxpayer shall be allowed a credit against the
13 tax imposed by subsections (a) and (b) of this Section for
14 investment in qualified property which is placed in service
15 in an Enterprise Zone created pursuant to the Illinois
16 Enterprise Zone Act or, for property placed in service on
17 or after July 1, 2006, a River Edge Redevelopment Zone
18 established pursuant to the River Edge Redevelopment Zone
19 Act. For partners, shareholders of Subchapter S
20 corporations, and owners of limited liability companies,
21 if the liability company is treated as a partnership for
22 purposes of federal and State income taxation, there shall
23 be allowed a credit under this subsection (f) to be
24 determined in accordance with the determination of income
25 and distributive share of income under Sections 702 and 704
26 and Subchapter S of the Internal Revenue Code. The credit

HB2498- 120 -LRB100 03891 AMC 13896 b
1 shall be .5% of the basis for such property. The credit
2 shall be available only in the taxable year in which the
3 property is placed in service in the Enterprise Zone or
4 River Edge Redevelopment Zone and shall not be allowed to
5 the extent that it would reduce a taxpayer's liability for
6 the tax imposed by subsections (a) and (b) of this Section
7 to below zero. For tax years ending on or after December
8 31, 1985, the credit shall be allowed for the tax year in
9 which the property is placed in service, or, if the amount
10 of the credit exceeds the tax liability for that year,
11 whether it exceeds the original liability or the liability
12 as later amended, such excess may be carried forward and
13 applied to the tax liability of the 5 taxable years
14 following the excess credit year. The credit shall be
15 applied to the earliest year for which there is a
16 liability. If there is credit from more than one tax year
17 that is available to offset a liability, the credit
18 accruing first in time shall be applied first.
19 (2) The term qualified property means property which:
20 (A) is tangible, whether new or used, including
21 buildings and structural components of buildings;
22 (B) is depreciable pursuant to Section 167 of the
23 Internal Revenue Code, except that "3-year property"
24 as defined in Section 168(c)(2)(A) of that Code is not
25 eligible for the credit provided by this subsection
26 (f);

HB2498- 121 -LRB100 03891 AMC 13896 b
1 (C) is acquired by purchase as defined in Section
2 179(d) of the Internal Revenue Code;
3 (D) is used in the Enterprise Zone or River Edge
4 Redevelopment Zone by the taxpayer; and
5 (E) has not been previously used in Illinois in
6 such a manner and by such a person as would qualify for
7 the credit provided by this subsection (f) or
8 subsection (e).
9 (3) The basis of qualified property shall be the basis
10 used to compute the depreciation deduction for federal
11 income tax purposes.
12 (4) If the basis of the property for federal income tax
13 depreciation purposes is increased after it has been placed
14 in service in the Enterprise Zone or River Edge
15 Redevelopment Zone by the taxpayer, the amount of such
16 increase shall be deemed property placed in service on the
17 date of such increase in basis.
18 (5) The term "placed in service" shall have the same
19 meaning as under Section 46 of the Internal Revenue Code.
20 (6) If during any taxable year, any property ceases to
21 be qualified property in the hands of the taxpayer within
22 48 months after being placed in service, or the situs of
23 any qualified property is moved outside the Enterprise Zone
24 or River Edge Redevelopment Zone within 48 months after
25 being placed in service, the tax imposed under subsections
26 (a) and (b) of this Section for such taxable year shall be

HB2498- 122 -LRB100 03891 AMC 13896 b
1 increased. Such increase shall be determined by (i)
2 recomputing the investment credit which would have been
3 allowed for the year in which credit for such property was
4 originally allowed by eliminating such property from such
5 computation, and (ii) subtracting such recomputed credit
6 from the amount of credit previously allowed. For the
7 purposes of this paragraph (6), a reduction of the basis of
8 qualified property resulting from a redetermination of the
9 purchase price shall be deemed a disposition of qualified
10 property to the extent of such reduction.
11 (7) There shall be allowed an additional credit equal
12 to 0.5% of the basis of qualified property placed in
13 service during the taxable year in a River Edge
14 Redevelopment Zone, provided such property is placed in
15 service on or after July 1, 2006, and the taxpayer's base
16 employment within Illinois has increased by 1% or more over
17 the preceding year as determined by the taxpayer's
18 employment records filed with the Illinois Department of
19 Employment Security. Taxpayers who are new to Illinois
20 shall be deemed to have met the 1% growth in base
21 employment for the first year in which they file employment
22 records with the Illinois Department of Employment
23 Security. If, in any year, the increase in base employment
24 within Illinois over the preceding year is less than 1%,
25 the additional credit shall be limited to that percentage
26 times a fraction, the numerator of which is 0.5% and the

HB2498- 123 -LRB100 03891 AMC 13896 b
1 denominator of which is 1%, but shall not exceed 0.5%.
2 (g) (Blank).
3 (h) Investment credit; High Impact Business.
4 (1) Subject to subsections (b) and (b-5) of Section 5.5
5 of the Illinois Enterprise Zone Act, a taxpayer shall be
6 allowed a credit against the tax imposed by subsections (a)
7 and (b) of this Section for investment in qualified
8 property which is placed in service by a Department of
9 Commerce and Economic Opportunity designated High Impact
10 Business. The credit shall be .5% of the basis for such
11 property. The credit shall not be available (i) until the
12 minimum investments in qualified property set forth in
13 subdivision (a)(3)(A) of Section 5.5 of the Illinois
14 Enterprise Zone Act have been satisfied or (ii) until the
15 time authorized in subsection (b-5) of the Illinois
16 Enterprise Zone Act for entities designated as High Impact
17 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
18 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
19 Act, and shall not be allowed to the extent that it would
20 reduce a taxpayer's liability for the tax imposed by
21 subsections (a) and (b) of this Section to below zero. The
22 credit applicable to such investments shall be taken in the
23 taxable year in which such investments have been completed.
24 The credit for additional investments beyond the minimum
25 investment by a designated high impact business authorized
26 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

HB2498- 124 -LRB100 03891 AMC 13896 b
1 Enterprise Zone Act shall be available only in the taxable
2 year in which the property is placed in service and shall
3 not be allowed to the extent that it would reduce a
4 taxpayer's liability for the tax imposed by subsections (a)
5 and (b) of this Section to below zero. For tax years ending
6 on or after December 31, 1987, the credit shall be allowed
7 for the tax year in which the property is placed in
8 service, or, if the amount of the credit exceeds the tax
9 liability for that year, whether it exceeds the original
10 liability or the liability as later amended, such excess
11 may be carried forward and applied to the tax liability of
12 the 5 taxable years following the excess credit year. The
13 credit shall be applied to the earliest year for which
14 there is a liability. If there is credit from more than one
15 tax year that is available to offset a liability, the
16 credit accruing first in time shall be applied first.
17 Changes made in this subdivision (h)(1) by Public Act
18 88-670 restore changes made by Public Act 85-1182 and
19 reflect existing law.
20 (2) The term qualified property means property which:
21 (A) is tangible, whether new or used, including
22 buildings and structural components of buildings;
23 (B) is depreciable pursuant to Section 167 of the
24 Internal Revenue Code, except that "3-year property"
25 as defined in Section 168(c)(2)(A) of that Code is not
26 eligible for the credit provided by this subsection

HB2498- 125 -LRB100 03891 AMC 13896 b
1 (h);
2 (C) is acquired by purchase as defined in Section
3 179(d) of the Internal Revenue Code; and
4 (D) is not eligible for the Enterprise Zone
5 Investment Credit provided by subsection (f) of this
6 Section.
7 (3) The basis of qualified property shall be the basis
8 used to compute the depreciation deduction for federal
9 income tax purposes.
10 (4) If the basis of the property for federal income tax
11 depreciation purposes is increased after it has been placed
12 in service in a federally designated Foreign Trade Zone or
13 Sub-Zone located in Illinois by the taxpayer, the amount of
14 such increase shall be deemed property placed in service on
15 the date of such increase in basis.
16 (5) The term "placed in service" shall have the same
17 meaning as under Section 46 of the Internal Revenue Code.
18 (6) If during any taxable year ending on or before
19 December 31, 1996, any property ceases to be qualified
20 property in the hands of the taxpayer within 48 months
21 after being placed in service, or the situs of any
22 qualified property is moved outside Illinois within 48
23 months after being placed in service, the tax imposed under
24 subsections (a) and (b) of this Section for such taxable
25 year shall be increased. Such increase shall be determined
26 by (i) recomputing the investment credit which would have

HB2498- 126 -LRB100 03891 AMC 13896 b
1 been allowed for the year in which credit for such property
2 was originally allowed by eliminating such property from
3 such computation, and (ii) subtracting such recomputed
4 credit from the amount of credit previously allowed. For
5 the purposes of this paragraph (6), a reduction of the
6 basis of qualified property resulting from a
7 redetermination of the purchase price shall be deemed a
8 disposition of qualified property to the extent of such
9 reduction.
10 (7) Beginning with tax years ending after December 31,
11 1996, if a taxpayer qualifies for the credit under this
12 subsection (h) and thereby is granted a tax abatement and
13 the taxpayer relocates its entire facility in violation of
14 the explicit terms and length of the contract under Section
15 18-183 of the Property Tax Code, the tax imposed under
16 subsections (a) and (b) of this Section shall be increased
17 for the taxable year in which the taxpayer relocated its
18 facility by an amount equal to the amount of credit
19 received by the taxpayer under this subsection (h).
20 (i) Credit for Personal Property Tax Replacement Income
21Tax. For tax years ending prior to December 31, 2003, a credit
22shall be allowed against the tax imposed by subsections (a) and
23(b) of this Section for the tax imposed by subsections (c) and
24(d) of this Section. This credit shall be computed by
25multiplying the tax imposed by subsections (c) and (d) of this
26Section by a fraction, the numerator of which is base income

HB2498- 127 -LRB100 03891 AMC 13896 b
1allocable to Illinois and the denominator of which is Illinois
2base income, and further multiplying the product by the tax
3rate imposed by subsections (a) and (b) of this Section.
4 Any credit earned on or after December 31, 1986 under this
5subsection which is unused in the year the credit is computed
6because it exceeds the tax liability imposed by subsections (a)
7and (b) for that year (whether it exceeds the original
8liability or the liability as later amended) may be carried
9forward and applied to the tax liability imposed by subsections
10(a) and (b) of the 5 taxable years following the excess credit
11year, provided that no credit may be carried forward to any
12year ending on or after December 31, 2003. This credit shall be
13applied first to the earliest year for which there is a
14liability. If there is a credit under this subsection from more
15than one tax year that is available to offset a liability the
16earliest credit arising under this subsection shall be applied
17first.
18 If, during any taxable year ending on or after December 31,
191986, the tax imposed by subsections (c) and (d) of this
20Section for which a taxpayer has claimed a credit under this
21subsection (i) is reduced, the amount of credit for such tax
22shall also be reduced. Such reduction shall be determined by
23recomputing the credit to take into account the reduced tax
24imposed by subsections (c) and (d). If any portion of the
25reduced amount of credit has been carried to a different
26taxable year, an amended return shall be filed for such taxable

HB2498- 128 -LRB100 03891 AMC 13896 b
1year to reduce the amount of credit claimed.
2 (j) Training expense credit. Beginning with tax years
3ending on or after December 31, 1986 and prior to December 31,
42003, a taxpayer shall be allowed a credit against the tax
5imposed by subsections (a) and (b) under this Section for all
6amounts paid or accrued, on behalf of all persons employed by
7the taxpayer in Illinois or Illinois residents employed outside
8of Illinois by a taxpayer, for educational or vocational
9training in semi-technical or technical fields or semi-skilled
10or skilled fields, which were deducted from gross income in the
11computation of taxable income. The credit against the tax
12imposed by subsections (a) and (b) shall be 1.6% of such
13training expenses. For partners, shareholders of subchapter S
14corporations, and owners of limited liability companies, if the
15liability company is treated as a partnership for purposes of
16federal and State income taxation, there shall be allowed a
17credit under this subsection (j) to be determined in accordance
18with the determination of income and distributive share of
19income under Sections 702 and 704 and subchapter S of the
20Internal Revenue Code.
21 Any credit allowed under this subsection which is unused in
22the year the credit is earned may be carried forward to each of
23the 5 taxable years following the year for which the credit is
24first computed until it is used. This credit shall be applied
25first to the earliest year for which there is a liability. If
26there is a credit under this subsection from more than one tax

HB2498- 129 -LRB100 03891 AMC 13896 b
1year that is available to offset a liability the earliest
2credit arising under this subsection shall be applied first. No
3carryforward credit may be claimed in any tax year ending on or
4after December 31, 2003.
5 (k) Research and development credit. For tax years ending
6after July 1, 1990 and prior to December 31, 2003, and
7beginning again for tax years ending on or after December 31,
82004, and ending prior to January 1, 2016, a taxpayer shall be
9allowed a credit against the tax imposed by subsections (a) and
10(b) of this Section for increasing research activities in this
11State. The credit allowed against the tax imposed by
12subsections (a) and (b) shall be equal to 6 1/2% of the
13qualifying expenditures for increasing research activities in
14this State. For partners, shareholders of subchapter S
15corporations, and owners of limited liability companies, if the
16liability company is treated as a partnership for purposes of
17federal and State income taxation, there shall be allowed a
18credit under this subsection to be determined in accordance
19with the determination of income and distributive share of
20income under Sections 702 and 704 and subchapter S of the
21Internal Revenue Code.
22 For purposes of this subsection, "qualifying expenditures"
23means the qualifying expenditures as defined for the federal
24credit for increasing research activities which would be
25allowable under Section 41 of the Internal Revenue Code and
26which are conducted in this State, "qualifying expenditures for

HB2498- 130 -LRB100 03891 AMC 13896 b
1increasing research activities in this State" means the excess
2of qualifying expenditures for the taxable year in which
3incurred over qualifying expenditures for the base period,
4"qualifying expenditures for the base period" means the average
5of the qualifying expenditures for each year in the base
6period, and "base period" means the 3 taxable years immediately
7preceding the taxable year for which the determination is being
8made.
9 Any credit in excess of the tax liability for the taxable
10year may be carried forward. A taxpayer may elect to have the
11unused credit shown on its final completed return carried over
12as a credit against the tax liability for the following 5
13taxable years or until it has been fully used, whichever occurs
14first; provided that no credit earned in a tax year ending
15prior to December 31, 2003 may be carried forward to any year
16ending on or after December 31, 2003.
17 If an unused credit is carried forward to a given year from
182 or more earlier years, that credit arising in the earliest
19year will be applied first against the tax liability for the
20given year. If a tax liability for the given year still
21remains, the credit from the next earliest year will then be
22applied, and so on, until all credits have been used or no tax
23liability for the given year remains. Any remaining unused
24credit or credits then will be carried forward to the next
25following year in which a tax liability is incurred, except
26that no credit can be carried forward to a year which is more

HB2498- 131 -LRB100 03891 AMC 13896 b
1than 5 years after the year in which the expense for which the
2credit is given was incurred.
3 No inference shall be drawn from this amendatory Act of the
491st General Assembly in construing this Section for taxable
5years beginning before January 1, 1999.
6 (l) Environmental Remediation Tax Credit.
7 (i) For tax years ending after December 31, 1997 and on
8 or before December 31, 2001, a taxpayer shall be allowed a
9 credit against the tax imposed by subsections (a) and (b)
10 of this Section for certain amounts paid for unreimbursed
11 eligible remediation costs, as specified in this
12 subsection. For purposes of this Section, "unreimbursed
13 eligible remediation costs" means costs approved by the
14 Illinois Environmental Protection Agency ("Agency") under
15 Section 58.14 of the Environmental Protection Act that were
16 paid in performing environmental remediation at a site for
17 which a No Further Remediation Letter was issued by the
18 Agency and recorded under Section 58.10 of the
19 Environmental Protection Act. The credit must be claimed
20 for the taxable year in which Agency approval of the
21 eligible remediation costs is granted. The credit is not
22 available to any taxpayer if the taxpayer or any related
23 party caused or contributed to, in any material respect, a
24 release of regulated substances on, in, or under the site
25 that was identified and addressed by the remedial action
26 pursuant to the Site Remediation Program of the

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1 Environmental Protection Act. After the Pollution Control
2 Board rules are adopted pursuant to the Illinois
3 Administrative Procedure Act for the administration and
4 enforcement of Section 58.9 of the Environmental
5 Protection Act, determinations as to credit availability
6 for purposes of this Section shall be made consistent with
7 those rules. For purposes of this Section, "taxpayer"
8 includes a person whose tax attributes the taxpayer has
9 succeeded to under Section 381 of the Internal Revenue Code
10 and "related party" includes the persons disallowed a
11 deduction for losses by paragraphs (b), (c), and (f)(1) of
12 Section 267 of the Internal Revenue Code by virtue of being
13 a related taxpayer, as well as any of its partners. The
14 credit allowed against the tax imposed by subsections (a)
15 and (b) shall be equal to 25% of the unreimbursed eligible
16 remediation costs in excess of $100,000 per site, except
17 that the $100,000 threshold shall not apply to any site
18 contained in an enterprise zone as determined by the
19 Department of Commerce and Community Affairs (now
20 Department of Commerce and Economic Opportunity). The
21 total credit allowed shall not exceed $40,000 per year with
22 a maximum total of $150,000 per site. For partners and
23 shareholders of subchapter S corporations, there shall be
24 allowed a credit under this subsection to be determined in
25 accordance with the determination of income and
26 distributive share of income under Sections 702 and 704 and

HB2498- 133 -LRB100 03891 AMC 13896 b
1 subchapter S of the Internal Revenue Code.
2 (ii) A credit allowed under this subsection that is
3 unused in the year the credit is earned may be carried
4 forward to each of the 5 taxable years following the year
5 for which the credit is first earned until it is used. The
6 term "unused credit" does not include any amounts of
7 unreimbursed eligible remediation costs in excess of the
8 maximum credit per site authorized under paragraph (i).
9 This credit shall be applied first to the earliest year for
10 which there is a liability. If there is a credit under this
11 subsection from more than one tax year that is available to
12 offset a liability, the earliest credit arising under this
13 subsection shall be applied first. A credit allowed under
14 this subsection may be sold to a buyer as part of a sale of
15 all or part of the remediation site for which the credit
16 was granted. The purchaser of a remediation site and the
17 tax credit shall succeed to the unused credit and remaining
18 carry-forward period of the seller. To perfect the
19 transfer, the assignor shall record the transfer in the
20 chain of title for the site and provide written notice to
21 the Director of the Illinois Department of Revenue of the
22 assignor's intent to sell the remediation site and the
23 amount of the tax credit to be transferred as a portion of
24 the sale. In no event may a credit be transferred to any
25 taxpayer if the taxpayer or a related party would not be
26 eligible under the provisions of subsection (i).

HB2498- 134 -LRB100 03891 AMC 13896 b
1 (iii) For purposes of this Section, the term "site"
2 shall have the same meaning as under Section 58.2 of the
3 Environmental Protection Act.
4 (m) Education expense credit. Beginning with tax years
5ending after December 31, 1999, a taxpayer who is the custodian
6of one or more qualifying pupils shall be allowed a credit
7against the tax imposed by subsections (a) and (b) of this
8Section for qualified education expenses incurred on behalf of
9the qualifying pupils. The credit shall be equal to 25% of
10qualified education expenses, but in no event may the total
11credit under this subsection claimed by a family that is the
12custodian of qualifying pupils exceed $500. In no event shall a
13credit under this subsection reduce the taxpayer's liability
14under this Act to less than zero. This subsection is exempt
15from the provisions of Section 250 of this Act.
16 For purposes of this subsection:
17 "Qualifying pupils" means individuals who (i) are
18residents of the State of Illinois, (ii) are under the age of
1921 at the close of the school year for which a credit is
20sought, and (iii) during the school year for which a credit is
21sought were full-time pupils enrolled in a kindergarten through
22twelfth grade education program at any school, as defined in
23this subsection.
24 "Qualified education expense" means the amount incurred on
25behalf of a qualifying pupil in excess of $250 for tuition,
26book fees, and lab fees at the school in which the pupil is

HB2498- 135 -LRB100 03891 AMC 13896 b
1enrolled during the regular school year.
2 "School" means any public or nonpublic elementary or
3secondary school in Illinois that is in compliance with Title
4VI of the Civil Rights Act of 1964 and attendance at which
5satisfies the requirements of Section 26-1 of the School Code,
6except that nothing shall be construed to require a child to
7attend any particular public or nonpublic school to qualify for
8the credit under this Section.
9 "Custodian" means, with respect to qualifying pupils, an
10Illinois resident who is a parent, the parents, a legal
11guardian, or the legal guardians of the qualifying pupils.
12 (n) River Edge Redevelopment Zone site remediation tax
13credit.
14 (i) For tax years ending on or after December 31, 2006,
15 a taxpayer shall be allowed a credit against the tax
16 imposed by subsections (a) and (b) of this Section for
17 certain amounts paid for unreimbursed eligible remediation
18 costs, as specified in this subsection. For purposes of
19 this Section, "unreimbursed eligible remediation costs"
20 means costs approved by the Illinois Environmental
21 Protection Agency ("Agency") under Section 58.14a of the
22 Environmental Protection Act that were paid in performing
23 environmental remediation at a site within a River Edge
24 Redevelopment Zone for which a No Further Remediation
25 Letter was issued by the Agency and recorded under Section
26 58.10 of the Environmental Protection Act. The credit must

HB2498- 136 -LRB100 03891 AMC 13896 b
1 be claimed for the taxable year in which Agency approval of
2 the eligible remediation costs is granted. The credit is
3 not available to any taxpayer if the taxpayer or any
4 related party caused or contributed to, in any material
5 respect, a release of regulated substances on, in, or under
6 the site that was identified and addressed by the remedial
7 action pursuant to the Site Remediation Program of the
8 Environmental Protection Act. Determinations as to credit
9 availability for purposes of this Section shall be made
10 consistent with rules adopted by the Pollution Control
11 Board pursuant to the Illinois Administrative Procedure
12 Act for the administration and enforcement of Section 58.9
13 of the Environmental Protection Act. For purposes of this
14 Section, "taxpayer" includes a person whose tax attributes
15 the taxpayer has succeeded to under Section 381 of the
16 Internal Revenue Code and "related party" includes the
17 persons disallowed a deduction for losses by paragraphs
18 (b), (c), and (f)(1) of Section 267 of the Internal Revenue
19 Code by virtue of being a related taxpayer, as well as any
20 of its partners. The credit allowed against the tax imposed
21 by subsections (a) and (b) shall be equal to 25% of the
22 unreimbursed eligible remediation costs in excess of
23 $100,000 per site.
24 (ii) A credit allowed under this subsection that is
25 unused in the year the credit is earned may be carried
26 forward to each of the 5 taxable years following the year

HB2498- 137 -LRB100 03891 AMC 13896 b
1 for which the credit is first earned until it is used. This
2 credit shall be applied first to the earliest year for
3 which there is a liability. If there is a credit under this
4 subsection from more than one tax year that is available to
5 offset a liability, the earliest credit arising under this
6 subsection shall be applied first. A credit allowed under
7 this subsection may be sold to a buyer as part of a sale of
8 all or part of the remediation site for which the credit
9 was granted. The purchaser of a remediation site and the
10 tax credit shall succeed to the unused credit and remaining
11 carry-forward period of the seller. To perfect the
12 transfer, the assignor shall record the transfer in the
13 chain of title for the site and provide written notice to
14 the Director of the Illinois Department of Revenue of the
15 assignor's intent to sell the remediation site and the
16 amount of the tax credit to be transferred as a portion of
17 the sale. In no event may a credit be transferred to any
18 taxpayer if the taxpayer or a related party would not be
19 eligible under the provisions of subsection (i).
20 (iii) For purposes of this Section, the term "site"
21 shall have the same meaning as under Section 58.2 of the
22 Environmental Protection Act.
23 (o) For each of taxable years during the Compassionate Use
24of Medical Cannabis Pilot Program, a surcharge is imposed on
25all taxpayers on income arising from the sale or exchange of
26capital assets, depreciable business property, real property

HB2498- 138 -LRB100 03891 AMC 13896 b
1used in the trade or business, and Section 197 intangibles of
2an organization registrant under the Compassionate Use of
3Medical Cannabis Pilot Program Act. The amount of the surcharge
4is equal to the amount of federal income tax liability for the
5taxable year attributable to those sales and exchanges. The
6surcharge imposed does not apply if:
7 (1) the medical cannabis cultivation center
8 registration, medical cannabis dispensary registration, or
9 the property of a registration is transferred as a result
10 of any of the following:
11 (A) bankruptcy, a receivership, or a debt
12 adjustment initiated by or against the initial
13 registration or the substantial owners of the initial
14 registration;
15 (B) cancellation, revocation, or termination of
16 any registration by the Illinois Department of Public
17 Health;
18 (C) a determination by the Illinois Department of
19 Public Health that transfer of the registration is in
20 the best interests of Illinois qualifying patients as
21 defined by the Compassionate Use of Medical Cannabis
22 Pilot Program Act;
23 (D) the death of an owner of the equity interest in
24 a registrant;
25 (E) the acquisition of a controlling interest in
26 the stock or substantially all of the assets of a

HB2498- 139 -LRB100 03891 AMC 13896 b
1 publicly traded company;
2 (F) a transfer by a parent company to a wholly
3 owned subsidiary; or
4 (G) the transfer or sale to or by one person to
5 another person where both persons were initial owners
6 of the registration when the registration was issued;
7 or
8 (2) the cannabis cultivation center registration,
9 medical cannabis dispensary registration, or the
10 controlling interest in a registrant's property is
11 transferred in a transaction to lineal descendants in which
12 no gain or loss is recognized or as a result of a
13 transaction in accordance with Section 351 of the Internal
14 Revenue Code in which no gain or loss is recognized.
15(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
16eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
17eff. 7-16-14.)
18 (35 ILCS 5/303) (from Ch. 120, par. 3-303)
19 Sec. 303. (a) In general. Any item of capital gain or loss,
20and any item of income from rents or royalties from real or
21tangible personal property, interest, dividends, and patent or
22copyright royalties, and prizes awarded under the Illinois
23Lottery Law, and, for taxable years ending on or after December
2431, 2017, wagering and gambling winnings from Illinois sources
25as set forth in subsection (e-1) of this Section, to the extent

HB2498- 140 -LRB100 03891 AMC 13896 b
1such item constitutes nonbusiness income, together with any
2item of deduction directly allocable thereto, shall be
3allocated by any person other than a resident as provided in
4this Section.
5 (b) Capital gains and losses.
6 (1) Real property. Capital gains and losses from sales
7 or exchanges of real property are allocable to this State
8 if the property is located in this State.
9 (2) Tangible personal property. Capital gains and
10 losses from sales or exchanges of tangible personal
11 property are allocable to this State if, at the time of
12 such sale or exchange:
13 (A) The property had its situs in this State; or
14 (B) The taxpayer had its commercial domicile in
15 this State and was not taxable in the state in which
16 the property had its situs.
17 (3) Intangibles. Capital gains and losses from sales or
18 exchanges of intangible personal property are allocable to
19 this State if the taxpayer had its commercial domicile in
20 this State at the time of such sale or exchange.
21 (c) Rents and royalties.
22 (1) Real property. Rents and royalties from real
23 property are allocable to this State if the property is
24 located in this State.
25 (2) Tangible personal property. Rents and royalties
26 from tangible personal property are allocable to this

HB2498- 141 -LRB100 03891 AMC 13896 b
1 State:
2 (A) If and to the extent that the property is
3 utilized in this State; or
4 (B) In their entirety if, at the time such rents or
5 royalties were paid or accrued, the taxpayer had its
6 commercial domicile in this State and was not organized
7 under the laws of or taxable with respect to such rents
8 or royalties in the state in which the property was
9 utilized. The extent of utilization of tangible
10 personal property in a state is determined by
11 multiplying the rents or royalties derived from such
12 property by a fraction, the numerator of which is the
13 number of days of physical location of the property in
14 the state during the rental or royalty period in the
15 taxable year and the denominator of which is the number
16 of days of physical location of the property everywhere
17 during all rental or royalty periods in the taxable
18 year. If the physical location of the property during
19 the rental or royalty period is unknown or
20 unascertainable by the taxpayer, tangible personal
21 property is utilized in the state in which the property
22 was located at the time the rental or royalty payer
23 obtained possession.
24 (d) Patent and copyright royalties.
25 (1) Allocation. Patent and copyright royalties are
26 allocable to this State:

HB2498- 142 -LRB100 03891 AMC 13896 b
1 (A) If and to the extent that the patent or
2 copyright is utilized by the payer in this State; or
3 (B) If and to the extent that the patent or
4 copyright is utilized by the payer in a state in which
5 the taxpayer is not taxable with respect to such
6 royalties and, at the time such royalties were paid or
7 accrued, the taxpayer had its commercial domicile in
8 this State.
9 (2) Utilization.
10 (A) A patent is utilized in a state to the extent
11 that it is employed in production, fabrication,
12 manufacturing or other processing in the state or to
13 the extent that a patented product is produced in the
14 state. If the basis of receipts from patent royalties
15 does not permit allocation to states or if the
16 accounting procedures do not reflect states of
17 utilization, the patent is utilized in this State if
18 the taxpayer has its commercial domicile in this State.
19 (B) A copyright is utilized in a state to the
20 extent that printing or other publication originates
21 in the state. If the basis of receipts from copyright
22 royalties does not permit allocation to states or if
23 the accounting procedures do not reflect states of
24 utilization, the copyright is utilized in this State if
25 the taxpayer has its commercial domicile in this State.
26 (e) Illinois lottery prizes. Prizes awarded under the

HB2498- 143 -LRB100 03891 AMC 13896 b
1Illinois Lottery Law are allocable to this State. Payments
2received in taxable years ending on or after December 31, 2013,
3from the assignment of a prize under Section 13.1 of the
4Illinois Lottery Law are allocable to this State.
5 (e-1) Wagering and gambling winnings. Payments received in
6taxable years ending on or after December 31, 2017 of winnings
7from pari-mutuel wagering conducted at a wagering facility
8licensed under the Illinois Horse Racing Act of 1975 and from
9gambling games conducted on a riverboat or in a casino or
10electronic gaming facility licensed under the Illinois
11Gambling Act are allocable to this State.
12 (e-5) Unemployment benefits. Unemployment benefits paid by
13the Illinois Department of Employment Security are allocable to
14this State.
15 (f) Taxability in other state. For purposes of allocation
16of income pursuant to this Section, a taxpayer is taxable in
17another state if:
18 (1) In that state he is subject to a net income tax, a
19 franchise tax measured by net income, a franchise tax for
20 the privilege of doing business, or a corporate stock tax;
21 or
22 (2) That state has jurisdiction to subject the taxpayer
23 to a net income tax regardless of whether, in fact, the
24 state does or does not.
25 (g) Cross references.
26 (1) For allocation of interest and dividends by persons

HB2498- 144 -LRB100 03891 AMC 13896 b
1 other than residents, see Section 301(c)(2).
2 (2) For allocation of nonbusiness income by residents,
3 see Section 301(a).
4(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
5 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
6 Sec. 304. Business income of persons other than residents.
7 (a) In general. The business income of a person other than
8a resident shall be allocated to this State if such person's
9business income is derived solely from this State. If a person
10other than a resident derives business income from this State
11and one or more other states, then, for tax years ending on or
12before December 30, 1998, and except as otherwise provided by
13this Section, such person's business income shall be
14apportioned to this State by multiplying the income by a
15fraction, the numerator of which is the sum of the property
16factor (if any), the payroll factor (if any) and 200% of the
17sales factor (if any), and the denominator of which is 4
18reduced by the number of factors other than the sales factor
19which have a denominator of zero and by an additional 2 if the
20sales factor has a denominator of zero. For tax years ending on
21or after December 31, 1998, and except as otherwise provided by
22this Section, persons other than residents who derive business
23income from this State and one or more other states shall
24compute their apportionment factor by weighting their
25property, payroll, and sales factors as provided in subsection

HB2498- 145 -LRB100 03891 AMC 13896 b
1(h) of this Section.
2 (1) Property factor.
3 (A) The property factor is a fraction, the numerator of
4 which is the average value of the person's real and
5 tangible personal property owned or rented and used in the
6 trade or business in this State during the taxable year and
7 the denominator of which is the average value of all the
8 person's real and tangible personal property owned or
9 rented and used in the trade or business during the taxable
10 year.
11 (B) Property owned by the person is valued at its
12 original cost. Property rented by the person is valued at 8
13 times the net annual rental rate. Net annual rental rate is
14 the annual rental rate paid by the person less any annual
15 rental rate received by the person from sub-rentals.
16 (C) The average value of property shall be determined
17 by averaging the values at the beginning and ending of the
18 taxable year but the Director may require the averaging of
19 monthly values during the taxable year if reasonably
20 required to reflect properly the average value of the
21 person's property.
22 (2) Payroll factor.
23 (A) The payroll factor is a fraction, the numerator of
24 which is the total amount paid in this State during the
25 taxable year by the person for compensation, and the
26 denominator of which is the total compensation paid

HB2498- 146 -LRB100 03891 AMC 13896 b
1 everywhere during the taxable year.
2 (B) Compensation is paid in this State if:
3 (i) The individual's service is performed entirely
4 within this State;
5 (ii) The individual's service is performed both
6 within and without this State, but the service
7 performed without this State is incidental to the
8 individual's service performed within this State; or
9 (iii) Some of the service is performed within this
10 State and either the base of operations, or if there is
11 no base of operations, the place from which the service
12 is directed or controlled is within this State, or the
13 base of operations or the place from which the service
14 is directed or controlled is not in any state in which
15 some part of the service is performed, but the
16 individual's residence is in this State.
17 (iv) Compensation paid to nonresident professional
18 athletes.
19 (a) General. The Illinois source income of a
20 nonresident individual who is a member of a
21 professional athletic team includes the portion of the
22 individual's total compensation for services performed
23 as a member of a professional athletic team during the
24 taxable year which the number of duty days spent within
25 this State performing services for the team in any
26 manner during the taxable year bears to the total

HB2498- 147 -LRB100 03891 AMC 13896 b
1 number of duty days spent both within and without this
2 State during the taxable year.
3 (b) Travel days. Travel days that do not involve
4 either a game, practice, team meeting, or other similar
5 team event are not considered duty days spent in this
6 State. However, such travel days are considered in the
7 total duty days spent both within and without this
8 State.
9 (c) Definitions. For purposes of this subpart
10 (iv):
11 (1) The term "professional athletic team"
12 includes, but is not limited to, any professional
13 baseball, basketball, football, soccer, or hockey
14 team.
15 (2) The term "member of a professional
16 athletic team" includes those employees who are
17 active players, players on the disabled list, and
18 any other persons required to travel and who travel
19 with and perform services on behalf of a
20 professional athletic team on a regular basis.
21 This includes, but is not limited to, coaches,
22 managers, and trainers.
23 (3) Except as provided in items (C) and (D) of
24 this subpart (3), the term "duty days" means all
25 days during the taxable year from the beginning of
26 the professional athletic team's official

HB2498- 148 -LRB100 03891 AMC 13896 b
1 pre-season training period through the last game
2 in which the team competes or is scheduled to
3 compete. Duty days shall be counted for the year in
4 which they occur, including where a team's
5 official pre-season training period through the
6 last game in which the team competes or is
7 scheduled to compete, occurs during more than one
8 tax year.
9 (A) Duty days shall also include days on
10 which a member of a professional athletic team
11 performs service for a team on a date that does
12 not fall within the foregoing period (e.g.,
13 participation in instructional leagues, the
14 "All Star Game", or promotional "caravans").
15 Performing a service for a professional
16 athletic team includes conducting training and
17 rehabilitation activities, when such
18 activities are conducted at team facilities.
19 (B) Also included in duty days are game
20 days, practice days, days spent at team
21 meetings, promotional caravans, preseason
22 training camps, and days served with the team
23 through all post-season games in which the team
24 competes or is scheduled to compete.
25 (C) Duty days for any person who joins a
26 team during the period from the beginning of

HB2498- 149 -LRB100 03891 AMC 13896 b
1 the professional athletic team's official
2 pre-season training period through the last
3 game in which the team competes, or is
4 scheduled to compete, shall begin on the day
5 that person joins the team. Conversely, duty
6 days for any person who leaves a team during
7 this period shall end on the day that person
8 leaves the team. Where a person switches teams
9 during a taxable year, a separate duty-day
10 calculation shall be made for the period the
11 person was with each team.
12 (D) Days for which a member of a
13 professional athletic team is not compensated
14 and is not performing services for the team in
15 any manner, including days when such member of
16 a professional athletic team has been
17 suspended without pay and prohibited from
18 performing any services for the team, shall not
19 be treated as duty days.
20 (E) Days for which a member of a
21 professional athletic team is on the disabled
22 list and does not conduct rehabilitation
23 activities at facilities of the team, and is
24 not otherwise performing services for the team
25 in Illinois, shall not be considered duty days
26 spent in this State. All days on the disabled

HB2498- 150 -LRB100 03891 AMC 13896 b
1 list, however, are considered to be included in
2 total duty days spent both within and without
3 this State.
4 (4) The term "total compensation for services
5 performed as a member of a professional athletic
6 team" means the total compensation received during
7 the taxable year for services performed:
8 (A) from the beginning of the official
9 pre-season training period through the last
10 game in which the team competes or is scheduled
11 to compete during that taxable year; and
12 (B) during the taxable year on a date which
13 does not fall within the foregoing period
14 (e.g., participation in instructional leagues,
15 the "All Star Game", or promotional caravans).
16 This compensation shall include, but is not
17 limited to, salaries, wages, bonuses as described
18 in this subpart, and any other type of compensation
19 paid during the taxable year to a member of a
20 professional athletic team for services performed
21 in that year. This compensation does not include
22 strike benefits, severance pay, termination pay,
23 contract or option year buy-out payments,
24 expansion or relocation payments, or any other
25 payments not related to services performed for the
26 team.

HB2498- 151 -LRB100 03891 AMC 13896 b
1 For purposes of this subparagraph, "bonuses"
2 included in "total compensation for services
3 performed as a member of a professional athletic
4 team" subject to the allocation described in
5 Section 302(c)(1) are: bonuses earned as a result
6 of play (i.e., performance bonuses) during the
7 season, including bonuses paid for championship,
8 playoff or "bowl" games played by a team, or for
9 selection to all-star league or other honorary
10 positions; and bonuses paid for signing a
11 contract, unless the payment of the signing bonus
12 is not conditional upon the signee playing any
13 games for the team or performing any subsequent
14 services for the team or even making the team, the
15 signing bonus is payable separately from the
16 salary and any other compensation, and the signing
17 bonus is nonrefundable.
18 (3) Sales factor.
19 (A) The sales factor is a fraction, the numerator of
20 which is the total sales of the person in this State during
21 the taxable year, and the denominator of which is the total
22 sales of the person everywhere during the taxable year.
23 (B) Sales of tangible personal property are in this
24 State if:
25 (i) The property is delivered or shipped to a
26 purchaser, other than the United States government,

HB2498- 152 -LRB100 03891 AMC 13896 b
1 within this State regardless of the f. o. b. point or
2 other conditions of the sale; or
3 (ii) The property is shipped from an office, store,
4 warehouse, factory or other place of storage in this
5 State and either the purchaser is the United States
6 government or the person is not taxable in the state of
7 the purchaser; provided, however, that premises owned
8 or leased by a person who has independently contracted
9 with the seller for the printing of newspapers,
10 periodicals or books shall not be deemed to be an
11 office, store, warehouse, factory or other place of
12 storage for purposes of this Section. Sales of tangible
13 personal property are not in this State if the seller
14 and purchaser would be members of the same unitary
15 business group but for the fact that either the seller
16 or purchaser is a person with 80% or more of total
17 business activity outside of the United States and the
18 property is purchased for resale.
19 (B-1) Patents, copyrights, trademarks, and similar
20 items of intangible personal property.
21 (i) Gross receipts from the licensing, sale, or
22 other disposition of a patent, copyright, trademark,
23 or similar item of intangible personal property, other
24 than gross receipts governed by paragraph (B-7) of this
25 item (3), are in this State to the extent the item is
26 utilized in this State during the year the gross

HB2498- 153 -LRB100 03891 AMC 13896 b
1 receipts are included in gross income.
2 (ii) Place of utilization.
3 (I) A patent is utilized in a state to the
4 extent that it is employed in production,
5 fabrication, manufacturing, or other processing in
6 the state or to the extent that a patented product
7 is produced in the state. If a patent is utilized
8 in more than one state, the extent to which it is
9 utilized in any one state shall be a fraction equal
10 to the gross receipts of the licensee or purchaser
11 from sales or leases of items produced,
12 fabricated, manufactured, or processed within that
13 state using the patent and of patented items
14 produced within that state, divided by the total of
15 such gross receipts for all states in which the
16 patent is utilized.
17 (II) A copyright is utilized in a state to the
18 extent that printing or other publication
19 originates in the state. If a copyright is utilized
20 in more than one state, the extent to which it is
21 utilized in any one state shall be a fraction equal
22 to the gross receipts from sales or licenses of
23 materials printed or published in that state
24 divided by the total of such gross receipts for all
25 states in which the copyright is utilized.
26 (III) Trademarks and other items of intangible

HB2498- 154 -LRB100 03891 AMC 13896 b
1 personal property governed by this paragraph (B-1)
2 are utilized in the state in which the commercial
3 domicile of the licensee or purchaser is located.
4 (iii) If the state of utilization of an item of
5 property governed by this paragraph (B-1) cannot be
6 determined from the taxpayer's books and records or
7 from the books and records of any person related to the
8 taxpayer within the meaning of Section 267(b) of the
9 Internal Revenue Code, 26 U.S.C. 267, the gross
10 receipts attributable to that item shall be excluded
11 from both the numerator and the denominator of the
12 sales factor.
13 (B-2) Gross receipts from the license, sale, or other
14 disposition of patents, copyrights, trademarks, and
15 similar items of intangible personal property, other than
16 gross receipts governed by paragraph (B-7) of this item
17 (3), may be included in the numerator or denominator of the
18 sales factor only if gross receipts from licenses, sales,
19 or other disposition of such items comprise more than 50%
20 of the taxpayer's total gross receipts included in gross
21 income during the tax year and during each of the 2
22 immediately preceding tax years; provided that, when a
23 taxpayer is a member of a unitary business group, such
24 determination shall be made on the basis of the gross
25 receipts of the entire unitary business group.
26 (B-5) For taxable years ending on or after December 31,

HB2498- 155 -LRB100 03891 AMC 13896 b
1 2008, except as provided in subsections (ii) through (vii),
2 receipts from the sale of telecommunications service or
3 mobile telecommunications service are in this State if the
4 customer's service address is in this State.
5 (i) For purposes of this subparagraph (B-5), the
6 following terms have the following meanings:
7 "Ancillary services" means services that are
8 associated with or incidental to the provision of
9 "telecommunications services", including but not
10 limited to "detailed telecommunications billing",
11 "directory assistance", "vertical service", and "voice
12 mail services".
13 "Air-to-Ground Radiotelephone service" means a
14 radio service, as that term is defined in 47 CFR 22.99,
15 in which common carriers are authorized to offer and
16 provide radio telecommunications service for hire to
17 subscribers in aircraft.
18 "Call-by-call Basis" means any method of charging
19 for telecommunications services where the price is
20 measured by individual calls.
21 "Communications Channel" means a physical or
22 virtual path of communications over which signals are
23 transmitted between or among customer channel
24 termination points.
25 "Conference bridging service" means an "ancillary
26 service" that links two or more participants of an

HB2498- 156 -LRB100 03891 AMC 13896 b
1 audio or video conference call and may include the
2 provision of a telephone number. "Conference bridging
3 service" does not include the "telecommunications
4 services" used to reach the conference bridge.
5 "Customer Channel Termination Point" means the
6 location where the customer either inputs or receives
7 the communications.
8 "Detailed telecommunications billing service"
9 means an "ancillary service" of separately stating
10 information pertaining to individual calls on a
11 customer's billing statement.
12 "Directory assistance" means an "ancillary
13 service" of providing telephone number information,
14 and/or address information.
15 "Home service provider" means the facilities based
16 carrier or reseller with which the customer contracts
17 for the provision of mobile telecommunications
18 services.
19 "Mobile telecommunications service" means
20 commercial mobile radio service, as defined in Section
21 20.3 of Title 47 of the Code of Federal Regulations as
22 in effect on June 1, 1999.
23 "Place of primary use" means the street address
24 representative of where the customer's use of the
25 telecommunications service primarily occurs, which
26 must be the residential street address or the primary

HB2498- 157 -LRB100 03891 AMC 13896 b
1 business street address of the customer. In the case of
2 mobile telecommunications services, "place of primary
3 use" must be within the licensed service area of the
4 home service provider.
5 "Post-paid telecommunication service" means the
6 telecommunications service obtained by making a
7 payment on a call-by-call basis either through the use
8 of a credit card or payment mechanism such as a bank
9 card, travel card, credit card, or debit card, or by
10 charge made to a telephone number which is not
11 associated with the origination or termination of the
12 telecommunications service. A post-paid calling
13 service includes telecommunications service, except a
14 prepaid wireless calling service, that would be a
15 prepaid calling service except it is not exclusively a
16 telecommunication service.
17 "Prepaid telecommunication service" means the
18 right to access exclusively telecommunications
19 services, which must be paid for in advance and which
20 enables the origination of calls using an access number
21 or authorization code, whether manually or
22 electronically dialed, and that is sold in
23 predetermined units or dollars of which the number
24 declines with use in a known amount.
25 "Prepaid Mobile telecommunication service" means a
26 telecommunications service that provides the right to

HB2498- 158 -LRB100 03891 AMC 13896 b
1 utilize mobile wireless service as well as other
2 non-telecommunication services, including but not
3 limited to ancillary services, which must be paid for
4 in advance that is sold in predetermined units or
5 dollars of which the number declines with use in a
6 known amount.
7 "Private communication service" means a
8 telecommunication service that entitles the customer
9 to exclusive or priority use of a communications
10 channel or group of channels between or among
11 termination points, regardless of the manner in which
12 such channel or channels are connected, and includes
13 switching capacity, extension lines, stations, and any
14 other associated services that are provided in
15 connection with the use of such channel or channels.
16 "Service address" means:
17 (a) The location of the telecommunications
18 equipment to which a customer's call is charged and
19 from which the call originates or terminates,
20 regardless of where the call is billed or paid;
21 (b) If the location in line (a) is not known,
22 service address means the origination point of the
23 signal of the telecommunications services first
24 identified by either the seller's
25 telecommunications system or in information
26 received by the seller from its service provider

HB2498- 159 -LRB100 03891 AMC 13896 b
1 where the system used to transport such signals is
2 not that of the seller; and
3 (c) If the locations in line (a) and line (b)
4 are not known, the service address means the
5 location of the customer's place of primary use.
6 "Telecommunications service" means the electronic
7 transmission, conveyance, or routing of voice, data,
8 audio, video, or any other information or signals to a
9 point, or between or among points. The term
10 "telecommunications service" includes such
11 transmission, conveyance, or routing in which computer
12 processing applications are used to act on the form,
13 code or protocol of the content for purposes of
14 transmission, conveyance or routing without regard to
15 whether such service is referred to as voice over
16 Internet protocol services or is classified by the
17 Federal Communications Commission as enhanced or value
18 added. "Telecommunications service" does not include:
19 (a) Data processing and information services
20 that allow data to be generated, acquired, stored,
21 processed, or retrieved and delivered by an
22 electronic transmission to a purchaser when such
23 purchaser's primary purpose for the underlying
24 transaction is the processed data or information;
25 (b) Installation or maintenance of wiring or
26 equipment on a customer's premises;

HB2498- 160 -LRB100 03891 AMC 13896 b
1 (c) Tangible personal property;
2 (d) Advertising, including but not limited to
3 directory advertising; .
4 (e) Billing and collection services provided
5 to third parties;
6 (f) Internet access service;
7 (g) Radio and television audio and video
8 programming services, regardless of the medium,
9 including the furnishing of transmission,
10 conveyance and routing of such services by the
11 programming service provider. Radio and television
12 audio and video programming services shall include
13 but not be limited to cable service as defined in
14 47 USC 522(6) and audio and video programming
15 services delivered by commercial mobile radio
16 service providers, as defined in 47 CFR 20.3;
17 (h) "Ancillary services"; or
18 (i) Digital products "delivered
19 electronically", including but not limited to
20 software, music, video, reading materials or ring
21 tones.
22 "Vertical service" means an "ancillary service"
23 that is offered in connection with one or more
24 "telecommunications services", which offers advanced
25 calling features that allow customers to identify
26 callers and to manage multiple calls and call

HB2498- 161 -LRB100 03891 AMC 13896 b
1 connections, including "conference bridging services".
2 "Voice mail service" means an "ancillary service"
3 that enables the customer to store, send or receive
4 recorded messages. "Voice mail service" does not
5 include any "vertical services" that the customer may
6 be required to have in order to utilize the "voice mail
7 service".
8 (ii) Receipts from the sale of telecommunications
9 service sold on an individual call-by-call basis are in
10 this State if either of the following applies:
11 (a) The call both originates and terminates in
12 this State.
13 (b) The call either originates or terminates
14 in this State and the service address is located in
15 this State.
16 (iii) Receipts from the sale of postpaid
17 telecommunications service at retail are in this State
18 if the origination point of the telecommunication
19 signal, as first identified by the service provider's
20 telecommunication system or as identified by
21 information received by the seller from its service
22 provider if the system used to transport
23 telecommunication signals is not the seller's, is
24 located in this State.
25 (iv) Receipts from the sale of prepaid
26 telecommunications service or prepaid mobile

HB2498- 162 -LRB100 03891 AMC 13896 b
1 telecommunications service at retail are in this State
2 if the purchaser obtains the prepaid card or similar
3 means of conveyance at a location in this State.
4 Receipts from recharging a prepaid telecommunications
5 service or mobile telecommunications service is in
6 this State if the purchaser's billing information
7 indicates a location in this State.
8 (v) Receipts from the sale of private
9 communication services are in this State as follows:
10 (a) 100% of receipts from charges imposed at
11 each channel termination point in this State.
12 (b) 100% of receipts from charges for the total
13 channel mileage between each channel termination
14 point in this State.
15 (c) 50% of the total receipts from charges for
16 service segments when those segments are between 2
17 customer channel termination points, 1 of which is
18 located in this State and the other is located
19 outside of this State, which segments are
20 separately charged.
21 (d) The receipts from charges for service
22 segments with a channel termination point located
23 in this State and in two or more other states, and
24 which segments are not separately billed, are in
25 this State based on a percentage determined by
26 dividing the number of customer channel

HB2498- 163 -LRB100 03891 AMC 13896 b
1 termination points in this State by the total
2 number of customer channel termination points.
3 (vi) Receipts from charges for ancillary services
4 for telecommunications service sold to customers at
5 retail are in this State if the customer's primary
6 place of use of telecommunications services associated
7 with those ancillary services is in this State. If the
8 seller of those ancillary services cannot determine
9 where the associated telecommunications are located,
10 then the ancillary services shall be based on the
11 location of the purchaser.
12 (vii) Receipts to access a carrier's network or
13 from the sale of telecommunication services or
14 ancillary services for resale are in this State as
15 follows:
16 (a) 100% of the receipts from access fees
17 attributable to intrastate telecommunications
18 service that both originates and terminates in
19 this State.
20 (b) 50% of the receipts from access fees
21 attributable to interstate telecommunications
22 service if the interstate call either originates
23 or terminates in this State.
24 (c) 100% of the receipts from interstate end
25 user access line charges, if the customer's
26 service address is in this State. As used in this

HB2498- 164 -LRB100 03891 AMC 13896 b
1 subdivision, "interstate end user access line
2 charges" includes, but is not limited to, the
3 surcharge approved by the federal communications
4 commission and levied pursuant to 47 CFR 69.
5 (d) Gross receipts from sales of
6 telecommunication services or from ancillary
7 services for telecommunications services sold to
8 other telecommunication service providers for
9 resale shall be sourced to this State using the
10 apportionment concepts used for non-resale
11 receipts of telecommunications services if the
12 information is readily available to make that
13 determination. If the information is not readily
14 available, then the taxpayer may use any other
15 reasonable and consistent method.
16 (B-7) For taxable years ending on or after December 31,
17 2008, receipts from the sale of broadcasting services are
18 in this State if the broadcasting services are received in
19 this State. For purposes of this paragraph (B-7), the
20 following terms have the following meanings:
21 "Advertising revenue" means consideration received
22 by the taxpayer in exchange for broadcasting services
23 or allowing the broadcasting of commercials or
24 announcements in connection with the broadcasting of
25 film or radio programming, from sponsorships of the
26 programming, or from product placements in the

HB2498- 165 -LRB100 03891 AMC 13896 b
1 programming.
2 "Audience factor" means the ratio that the
3 audience or subscribers located in this State of a
4 station, a network, or a cable system bears to the
5 total audience or total subscribers for that station,
6 network, or cable system. The audience factor for film
7 or radio programming shall be determined by reference
8 to the books and records of the taxpayer or by
9 reference to published rating statistics provided the
10 method used by the taxpayer is consistently used from
11 year to year for this purpose and fairly represents the
12 taxpayer's activity in this State.
13 "Broadcast" or "broadcasting" or "broadcasting
14 services" means the transmission or provision of film
15 or radio programming, whether through the public
16 airwaves, by cable, by direct or indirect satellite
17 transmission, or by any other means of communication,
18 either through a station, a network, or a cable system.
19 "Film" or "film programming" means the broadcast
20 on television of any and all performances, events, or
21 productions, including but not limited to news,
22 sporting events, plays, stories, or other literary,
23 commercial, educational, or artistic works, either
24 live or through the use of video tape, disc, or any
25 other type of format or medium. Each episode of a
26 series of films produced for television shall

HB2498- 166 -LRB100 03891 AMC 13896 b
1 constitute separate "film" notwithstanding that the
2 series relates to the same principal subject and is
3 produced during one or more tax periods.
4 "Radio" or "radio programming" means the broadcast
5 on radio of any and all performances, events, or
6 productions, including but not limited to news,
7 sporting events, plays, stories, or other literary,
8 commercial, educational, or artistic works, either
9 live or through the use of an audio tape, disc, or any
10 other format or medium. Each episode in a series of
11 radio programming produced for radio broadcast shall
12 constitute a separate "radio programming"
13 notwithstanding that the series relates to the same
14 principal subject and is produced during one or more
15 tax periods.
16 (i) In the case of advertising revenue from
17 broadcasting, the customer is the advertiser and
18 the service is received in this State if the
19 commercial domicile of the advertiser is in this
20 State.
21 (ii) In the case where film or radio
22 programming is broadcast by a station, a network,
23 or a cable system for a fee or other remuneration
24 received from the recipient of the broadcast, the
25 portion of the service that is received in this
26 State is measured by the portion of the recipients

HB2498- 167 -LRB100 03891 AMC 13896 b
1 of the broadcast located in this State.
2 Accordingly, the fee or other remuneration for
3 such service that is included in the Illinois
4 numerator of the sales factor is the total of those
5 fees or other remuneration received from
6 recipients in Illinois. For purposes of this
7 paragraph, a taxpayer may determine the location
8 of the recipients of its broadcast using the
9 address of the recipient shown in its contracts
10 with the recipient or using the billing address of
11 the recipient in the taxpayer's records.
12 (iii) In the case where film or radio
13 programming is broadcast by a station, a network,
14 or a cable system for a fee or other remuneration
15 from the person providing the programming, the
16 portion of the broadcast service that is received
17 by such station, network, or cable system in this
18 State is measured by the portion of recipients of
19 the broadcast located in this State. Accordingly,
20 the amount of revenue related to such an
21 arrangement that is included in the Illinois
22 numerator of the sales factor is the total fee or
23 other total remuneration from the person providing
24 the programming related to that broadcast
25 multiplied by the Illinois audience factor for
26 that broadcast.

HB2498- 168 -LRB100 03891 AMC 13896 b
1 (iv) In the case where film or radio
2 programming is provided by a taxpayer that is a
3 network or station to a customer for broadcast in
4 exchange for a fee or other remuneration from that
5 customer the broadcasting service is received at
6 the location of the office of the customer from
7 which the services were ordered in the regular
8 course of the customer's trade or business.
9 Accordingly, in such a case the revenue derived by
10 the taxpayer that is included in the taxpayer's
11 Illinois numerator of the sales factor is the
12 revenue from such customers who receive the
13 broadcasting service in Illinois.
14 (v) In the case where film or radio programming
15 is provided by a taxpayer that is not a network or
16 station to another person for broadcasting in
17 exchange for a fee or other remuneration from that
18 person, the broadcasting service is received at
19 the location of the office of the customer from
20 which the services were ordered in the regular
21 course of the customer's trade or business.
22 Accordingly, in such a case the revenue derived by
23 the taxpayer that is included in the taxpayer's
24 Illinois numerator of the sales factor is the
25 revenue from such customers who receive the
26 broadcasting service in Illinois.

HB2498- 169 -LRB100 03891 AMC 13896 b
1 (B-8) Gross receipts from winnings under the Illinois
2 Lottery Law from the assignment of a prize under Section
3 13.1 of the Illinois Lottery Law are received in this
4 State. This paragraph (B-8) applies only to taxable years
5 ending on or after December 31, 2013.
6 (B-9) For taxable years ending on or after December 31,
7 2017, 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 (B-2), and (B-8) 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:

HB2498- 170 -LRB100 03891 AMC 13896 b
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

HB2498- 171 -LRB100 03891 AMC 13896 b
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

HB2498- 172 -LRB100 03891 AMC 13896 b
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

HB2498- 173 -LRB100 03891 AMC 13896 b
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

HB2498- 174 -LRB100 03891 AMC 13896 b
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

HB2498- 175 -LRB100 03891 AMC 13896 b
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

HB2498- 176 -LRB100 03891 AMC 13896 b
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

HB2498- 177 -LRB100 03891 AMC 13896 b
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

HB2498- 178 -LRB100 03891 AMC 13896 b
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

HB2498- 179 -LRB100 03891 AMC 13896 b
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

HB2498- 180 -LRB100 03891 AMC 13896 b
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.

HB2498- 181 -LRB100 03891 AMC 13896 b
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

HB2498- 183 -LRB100 03891 AMC 13896 b
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

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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;

HB2498- 185 -LRB100 03891 AMC 13896 b
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

HB2498- 186 -LRB100 03891 AMC 13896 b
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:

HB2498- 187 -LRB100 03891 AMC 13896 b
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;

HB2498- 188 -LRB100 03891 AMC 13896 b
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

HB2498- 189 -LRB100 03891 AMC 13896 b
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

HB2498- 190 -LRB100 03891 AMC 13896 b
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.

HB2498- 191 -LRB100 03891 AMC 13896 b
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, for taxable years ending before December
2531, 2008, fairly represent the extent of a person's business
26activity in this State, or, for taxable years ending on or

HB2498- 192 -LRB100 03891 AMC 13896 b
1after December 31, 2008, fairly represent the market for the
2person's goods, services, or other sources of business income,
3the person may petition for, or the Director may, without a
4petition, permit or require, in respect of all or any part of
5the person's business activity, if reasonable:
6 (1) Separate accounting;
7 (2) The exclusion of any one or more factors;
8 (3) The inclusion of one or more additional factors
9 which will fairly represent the person's business
10 activities or market in this State; or
11 (4) The employment of any other method to effectuate an
12 equitable allocation and apportionment of the person's
13 business income.
14 (g) Cross reference. For allocation of business income by
15residents, see Section 301(a).
16 (h) For tax years ending on or after December 31, 1998, the
17apportionment factor of persons who apportion their business
18income to this State under subsection (a) shall be equal to:
19 (1) for tax years ending on or after December 31, 1998
20 and before December 31, 1999, 16 2/3% of the property
21 factor plus 16 2/3% of the payroll factor plus 66 2/3% of
22 the sales factor;
23 (2) for tax years ending on or after December 31, 1999
24 and before December 31, 2000, 8 1/3% of the property factor
25 plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
26 factor;

HB2498- 193 -LRB100 03891 AMC 13896 b
1 (3) for tax years ending on or after December 31, 2000,
2 the sales factor.
3If, in any tax year ending on or after December 31, 1998 and
4before December 31, 2000, the denominator of the payroll,
5property, or sales factor is zero, the apportionment factor
6computed in paragraph (1) or (2) of this subsection for that
7year shall be divided by an amount equal to 100% minus the
8percentage weight given to each factor whose denominator is
9equal to zero.
10(Source: P.A. 98-478, eff. 1-1-14; 98-496, eff. 1-1-14; 98-756,
11eff. 7-16-14; 99-642, eff. 7-28-16; revised 11-14-16.)
12 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
13 Sec. 710. Withholding from lottery winnings.
14 (a) In general.
15 (1) Any person making a payment to a resident or
16 nonresident of winnings under the Illinois Lottery Law and
17 not required to withhold Illinois income tax from such
18 payment under Subsection (b) of Section 701 of this Act
19 because those winnings are not subject to Federal income
20 tax withholding, must withhold Illinois income tax from
21 such payment at a rate equal to the percentage tax rate for
22 individuals provided in subsection (b) of Section 201,
23 provided that withholding is not required if such payment
24 of winnings is less than $1,000.
25 (2) In the case of an assignment of a lottery prize

HB2498- 194 -LRB100 03891 AMC 13896 b
1 under Section 13.1 of the Illinois Lottery Law, any person
2 making a payment of the purchase price after December 31,
3 2013, shall withhold from the amount of each payment at a
4 rate equal to the percentage tax rate for individuals
5 provided in subsection (b) of Section 201.
6 (3) Any person making a payment after December 31, 2017
7 to a resident or nonresident of winnings from pari-mutuel
8 wagering conducted at a wagering facility licensed under
9 the Illinois Horse Racing Act of 1975 or from gambling
10 games conducted on a riverboat or in a casino or electronic
11 gaming facility licensed under the Illinois Gambling Act
12 must withhold Illinois income tax from such payment at a
13 rate equal to the percentage tax rate for individuals
14 provided in subsection (b) of Section 201, provided that
15 the person making the payment is required to withhold under
16 Section 3402(q) of the Internal Revenue Code.
17 (b) Credit for taxes withheld. Any amount withheld under
18Subsection (a) shall be a credit against the Illinois income
19tax liability of the person to whom the payment of winnings was
20made for the taxable year in which that person incurred an
21Illinois income tax liability with respect to those winnings.
22(Source: P.A. 98-496, eff. 1-1-14.)
23 Section 90-23. The Property Tax Code is amended by adding
24Section 15-144 as follows:

HB2498- 195 -LRB100 03891 AMC 13896 b
1 (35 ILCS 200/15-144 new)
2 Sec. 15-144. Chicago Casino Development Authority. All
3property owned by the Chicago Casino Development Authority is
4exempt. Any property owned by the Chicago Casino Development
5Authority and leased to any other entity is not exempt.
6 Section 90-24. The Illinois Municipal Code is amended by
7adding Section 8-10-2.6 as follows:
8 (65 ILCS 5/8-10-2.6 new)
9 Sec. 8-10-2.6. Chicago Casino Development Authority.
10Except as otherwise provided in the Chicago Casino Development
11Authority Act, this Division 10 applies to purchase orders and
12contracts relating to the Chicago Casino Development
13Authority.
14 Section 90-25. The Joliet Regional Port District Act is
15amended by changing Section 5.1 as follows:
16 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
17 Sec. 5.1. Riverboat and casino gambling. Notwithstanding
18any other provision of this Act, the District may not regulate
19the operation, conduct, or navigation of any riverboat gambling
20casino licensed under the Illinois Riverboat Gambling Act, and
21the District may not license, tax, or otherwise levy any
22assessment of any kind on any riverboat gambling casino

HB2498- 196 -LRB100 03891 AMC 13896 b
1licensed under the Illinois Riverboat Gambling Act. The General
2Assembly declares that the powers to regulate the operation,
3conduct, and navigation of riverboat gambling casinos and to
4license, tax, and levy assessments upon riverboat gambling
5casinos are exclusive powers of the State of Illinois and the
6Illinois Gaming Board as provided in the Illinois Riverboat
7Gambling Act.
8(Source: P.A. 87-1175.)
9 Section 90-30. The Consumer Installment Loan Act is amended
10by changing Section 12.5 as follows:
11 (205 ILCS 670/12.5)
12 Sec. 12.5. Limited purpose branch.
13 (a) Upon the written approval of the Director, a licensee
14may maintain a limited purpose branch for the sole purpose of
15making loans as permitted by this Act. A limited purpose branch
16may include an automatic loan machine. No other activity shall
17be conducted at the site, including but not limited to,
18accepting payments, servicing the accounts, or collections.
19 (b) The licensee must submit an application for a limited
20purpose branch to the Director on forms prescribed by the
21Director with an application fee of $300. The approval for the
22limited purpose branch must be renewed concurrently with the
23renewal of the licensee's license along with a renewal fee of
24$300 for the limited purpose branch.

HB2498- 197 -LRB100 03891 AMC 13896 b
1 (c) The books, accounts, records, and files of the limited
2purpose branch's transactions shall be maintained at the
3licensee's licensed location. The licensee shall notify the
4Director of the licensed location at which the books, accounts,
5records, and files shall be maintained.
6 (d) The licensee shall prominently display at the limited
7purpose branch the address and telephone number of the
8licensee's licensed location.
9 (e) No other business shall be conducted at the site of the
10limited purpose branch unless authorized by the Director.
11 (f) The Director shall make and enforce reasonable rules
12for the conduct of a limited purpose branch.
13 (g) A limited purpose branch may not be located within
141,000 feet of a facility operated by an inter-track wagering
15licensee or an organization licensee subject to the Illinois
16Horse Racing Act of 1975, on a riverboat or in a casino subject
17to the Illinois Riverboat Gambling Act, or within 1,000 feet of
18the location at which the riverboat docks or within 1,000 feet
19of a casino.
20(Source: P.A. 90-437, eff. 1-1-98.)
21 Section 90-35. The Illinois Horse Racing Act of 1975 is
22amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
2320, 21, 24, 25, 26, 27, 30, 30.5, 31, 31.1, 32.1, 36, 40, and
2454.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
2534.3, 39.2, and 56 as follows:

HB2498- 198 -LRB100 03891 AMC 13896 b
1 (230 ILCS 5/1.2)
2 Sec. 1.2. Legislative intent. This Act is intended to
3benefit the people of the State of Illinois by encouraging the
4breeding and production of race horses, assisting economic
5development and promoting Illinois tourism. The General
6Assembly finds and declares it to be the public policy of the
7State of Illinois to:
8 (a) support and enhance Illinois' horse racing industry,
9which is a significant component within the agribusiness
10industry;
11 (b) ensure that Illinois' horse racing industry remains
12competitive with neighboring states;
13 (c) stimulate growth within Illinois' horse racing
14industry, thereby encouraging new investment and development
15to produce additional tax revenues and to create additional
16jobs;
17 (d) promote the further growth of tourism;
18 (e) encourage the breeding of thoroughbred and
19standardbred horses in this State; and
20 (f) ensure that public confidence and trust in the
21credibility and integrity of racing operations and the
22regulatory process is maintained.
23(Source: P.A. 91-40, eff. 6-25-99.)
24 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)

HB2498- 199 -LRB100 03891 AMC 13896 b
1 Sec. 3.11. "Organization Licensee" means any person
2receiving an organization license from the Board to conduct a
3race meeting or meetings. With respect only to electronic
4gaming, "organization licensee" includes the authorization for
5an electronic gaming license under subsection (a) of Section 56
6of this Act.
7(Source: P.A. 79-1185.)
8 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
9 Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
10system of wagering" means a form of wagering on the outcome of
11horse races in which wagers are made in various denominations
12on a horse or horses and all wagers for each race are pooled
13and held by a licensee for distribution in a manner approved by
14the Board. "Pari-mutuel system of wagering" shall not include
15wagering on historic races. Wagers may be placed via any method
16or at any location authorized under this Act.
17(Source: P.A. 96-762, eff. 8-25-09.)
18 (230 ILCS 5/3.31 new)
19 Sec. 3.31. Adjusted gross receipts. "Adjusted gross
20receipts" means the gross receipts less winnings paid to
21wagerers.
22 (230 ILCS 5/3.32 new)
23 Sec. 3.32. Gross receipts. "Gross receipts" means the total

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

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

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1other state, or the United States.
2 (c) No member of the Board or employee shall engage in any
3political activity.
4 For the purposes of this subsection (c):
5 "Political" means any activity in support of or in
6connection with any campaign for State or local elective office
7or any political organization, but does not include activities
8(i) relating to the support or opposition of any executive,
9legislative, or administrative action (as those terms are
10defined in Section 2 of the Lobbyist Registration Act), (ii)
11relating to collective bargaining, or (iii) that are otherwise
12in furtherance of the person's official State duties or
13governmental and public service functions.
14 "Political organization" means a party, committee,
15association, fund, or other organization (whether or not
16incorporated) that is required to file a statement of
17organization with the State Board of Elections or county clerk
18under Section 9-3 of the Election Code, but only with regard to
19those activities that require filing with the State Board of
20Elections or county clerk.
21 (d) Board members and employees may not engage in
22communications or any activity that may cause or have the
23appearance of causing a conflict of interest. A conflict of
24interest exists if a situation influences or creates the
25appearance that it may influence judgment or performance of
26regulatory duties and responsibilities. This prohibition shall

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1extend to any act identified by Board action that, in the
2judgment of the Board, could represent the potential for or the
3appearance of a conflict of interest.
4 (e) Board members and employees may not accept any gift,
5gratuity, service, compensation, travel, lodging, or thing of
6value, with the exception of unsolicited items of an incidental
7nature, from any person, corporation, limited liability
8company, or entity doing business with the Board.
9 (f) A Board member or employee shall not use or attempt to
10use his or her official position to secure, or attempt to
11secure, any privilege, advantage, favor, or influence for
12himself or herself or others. No Board member or employee,
13within a period of one year immediately preceding nomination by
14the Governor or employment, shall have been employed or
15received compensation or fees for services from a person or
16entity, or its parent or affiliate, that has engaged in
17business with the Board, a licensee or a licensee under the
18Illinois Gambling Act. In addition, all Board members and
19employees are subject to the restrictions set forth in Section
205-45 of the State Officials and Employees Ethics Act.
21(Source: P.A. 89-16, eff. 5-30-95.)
22 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
23 Sec. 9. The Board shall have all powers necessary and
24proper to fully and effectively execute the provisions of this
25Act, including, but not limited to, the following:

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1 (a) The Board is vested with jurisdiction and supervision
2over all race meetings in this State, over all licensees doing
3business in this State, over all occupation licensees, and over
4all persons on the facilities of any licensee. Such
5jurisdiction shall include the power to issue licenses to the
6Illinois Department of Agriculture authorizing the pari-mutuel
7system of wagering on harness and Quarter Horse races held (1)
8at the Illinois State Fair in Sangamon County, and (2) at the
9DuQuoin State Fair in Perry County. The jurisdiction of the
10Board shall also include the power to issue licenses to county
11fairs which are eligible to receive funds pursuant to the
12Agricultural Fair Act, as now or hereafter amended, or their
13agents, authorizing the pari-mutuel system of wagering on horse
14races conducted at the county fairs receiving such licenses.
15Such licenses shall be governed by subsection (n) of this
16Section.
17 Upon application, the Board shall issue a license to the
18Illinois Department of Agriculture to conduct harness and
19Quarter Horse races at the Illinois State Fair and at the
20DuQuoin State Fairgrounds during the scheduled dates of each
21fair. The Board shall not require and the Department of
22Agriculture shall be exempt from the requirements of Sections
2315.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
24(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
25and 25. The Board and the Department of Agriculture may extend
26any or all of these exemptions to any contractor or agent

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

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

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

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

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

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

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

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

HB2498- 213 -LRB100 03891 AMC 13896 b
1 (5) whose license or permit has been suspended, revoked
2 or denied for just cause in any other state.
3 (d) The Board may suspend or revoke any occupation license:
4 (1) for violation of any of the provisions of this Act;
5 or
6 (2) for violation of any of the rules or regulations of
7 the Board; or
8 (3) for any cause which, if known to the Board, would
9 have justified the Board in refusing to issue such
10 occupation license; or
11 (4) for any other just cause.
12 (e) Each applicant shall submit his or her fingerprints
13to the Department of State Police in the form and manner
14prescribed by the Department of State Police. These
15fingerprints shall be checked against the fingerprint records
16now and hereafter filed in the Department of State Police and
17Federal Bureau of Investigation criminal history records
18databases. The Department of State Police shall charge a fee
19for conducting the criminal history records check, which shall
20be deposited in the State Police Services Fund and shall not
21exceed the actual cost of the records check. The Department of
22State Police shall furnish, pursuant to positive
23identification, records of conviction to the Board. Each
24applicant for licensure shall submit with his occupation
25license application, on forms provided by the Board, 2 sets of
26his fingerprints. All such applicants shall appear in person at

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

HB2498- 215 -LRB100 03891 AMC 13896 b
1of an applicant for a license or renewal under this Act shall
2be privileged, strictly confidential, and shall be used only
3for the purpose of evaluating an applicant for a license or a
4renewal. Such information, records, interviews, reports,
5statements, memoranda, or other data shall not be admissible as
6evidence, nor discoverable, in any action of any kind in any
7court or before any tribunal, board, agency, or person, except
8for any action deemed necessary by the Board.
9(Source: P.A. 93-418, eff. 1-1-04.)
10 (230 ILCS 5/18) (from Ch. 8, par. 37-18)
11 Sec. 18. (a) Together with its application, each applicant
12for racing dates shall deliver to the Board a certified check
13or bank draft payable to the order of the Board for $1,000. In
14the event the applicant applies for racing dates in 2 or 3
15successive calendar years as provided in subsection (b) of
16Section 21, the fee shall be $2,000. Filing fees shall not be
17refunded in the event the application is denied. Beginning on
18the date when any organization licensee begins conducting
19electronic gaming pursuant to an electronic gaming license
20issued under the Illinois Gambling Act, the application fee for
21racing dates imposed by this subsection (a) shall be $10,000
22and the application fee for racing dates in 2 or 3 successive
23calendar years as provided in subsection (b) of Section 21
24shall be $20,000. All filing fees shall be deposited into the
25Horse Racing Fund.

HB2498- 216 -LRB100 03891 AMC 13896 b
1 (b) In addition to the filing fee imposed by subsection (a)
2of $1000 and the fees provided in subsection (j) of Section 20,
3each organization licensee shall pay a license fee of $100 for
4each racing program on which its daily pari-mutuel handle is
5$400,000 or more but less than $700,000, and a license fee of
6$200 for each racing program on which its daily pari-mutuel
7handle is $700,000 or more. The additional fees required to be
8paid under this Section by this amendatory Act of 1982 shall be
9remitted by the organization licensee to the Illinois Racing
10Board with each day's graduated privilege tax or pari-mutuel
11tax and breakage as provided under Section 27. Beginning on the
12date when any organization licensee begins conducting
13electronic gaming pursuant to an electronic gaming license
14issued under the Illinois Gambling Act, the license fee imposed
15by this subsection (b) shall be $200 for each racing program on
16which the organization licensee's daily pari-mutuel handle is
17$100,000 or more, but less than $400,000, and the license fee
18imposed by this subsection (b) shall be $400 for each racing
19program on which the organization licensee's daily pari-mutuel
20handle is $400,000 or more.
21 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
22Municipal Code," approved May 29, 1961, as now or hereafter
23amended, shall not apply to any license under this Act.
24(Source: P.A. 97-1060, eff. 8-24-12.)
25 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

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1 Sec. 19. (a) No organization license may be granted to
2conduct a horse race meeting:
3 (1) except as provided in subsection (c) of Section 21
4 of this Act, to any person at any place within 35 miles of
5 any other place licensed by the Board to hold a race
6 meeting on the same date during the same hours, the mileage
7 measurement used in this subsection (a) shall be certified
8 to the Board by the Bureau of Systems and Services in the
9 Illinois Department of Transportation as the most commonly
10 used public way of vehicular travel;
11 (2) to any person in default in the payment of any
12 obligation or debt due the State under this Act, provided
13 no applicant shall be deemed in default in the payment of
14 any obligation or debt due to the State under this Act as
15 long as there is pending a hearing of any kind relevant to
16 such matter;
17 (3) to any person who has been convicted of the
18 violation of any law of the United States or any State law
19 which provided as all or part of its penalty imprisonment
20 in any penal institution; to any person against whom there
21 is pending a Federal or State criminal charge; to any
22 person who is or has been connected with or engaged in the
23 operation of any illegal business; to any person who does
24 not enjoy a general reputation in his community of being an
25 honest, upright, law-abiding person; provided that none of
26 the matters set forth in this subparagraph (3) shall make

HB2498- 218 -LRB100 03891 AMC 13896 b
1 any person ineligible to be granted an organization license
2 if the Board determines, based on circumstances of any such
3 case, that the granting of a license would not be
4 detrimental to the interests of horse racing and of the
5 public;
6 (4) to any person who does not at the time of
7 application for the organization license own or have a
8 contract or lease for the possession of a finished race
9 track suitable for the type of racing intended to be held
10 by the applicant and for the accommodation of the public.
11 (b) (Blank) Horse racing on Sunday shall be prohibited
12unless authorized by ordinance or referendum of the
13municipality in which a race track or any of its appurtenances
14or facilities are located, or utilized.
15 (c) If any person is ineligible to receive an organization
16license because of any of the matters set forth in subsection
17(a) (2) or subsection (a) (3) of this Section, any other or
18separate person that either (i) controls, directly or
19indirectly, such ineligible person or (ii) is controlled,
20directly or indirectly, by such ineligible person or by a
21person which controls, directly or indirectly, such ineligible
22person shall also be ineligible.
23(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
24 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
25 Sec. 20. (a) Any person desiring to conduct a horse race

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1meeting may apply to the Board for an organization license. The
2application shall be made on a form prescribed and furnished by
3the Board. The application shall specify:
4 (1) the dates on which it intends to conduct the horse
5 race meeting, which dates shall be provided under Section
6 21;
7 (2) the hours of each racing day between which it
8 intends to hold or conduct horse racing at such meeting;
9 (3) the location where it proposes to conduct the
10 meeting; and
11 (4) any other information the Board may reasonably
12 require.
13 (b) A separate application for an organization license
14shall be filed for each horse race meeting which such person
15proposes to hold. Any such application, if made by an
16individual, or by any individual as trustee, shall be signed
17and verified under oath by such individual. If the application
18is made by individuals, then it shall be signed and verified
19under oath by at least 2 of the individuals; if the application
20is made by or a partnership, it shall be signed and verified
21under oath by at least 2 of such individuals or members of such
22partnership as the case may be. If made by an association, a
23corporation, a corporate trustee, a limited liability company,
24or any other entity, it shall be signed by an authorized
25officer, a partner, a member, or a manager, as the case may be,
26of the entity the president and attested by the secretary or

HB2498- 220 -LRB100 03891 AMC 13896 b
1assistant secretary under the seal of such association, trust
2or corporation if it has a seal, and shall also be verified
3under oath by one of the signing officers.
4 (c) The application shall specify:
5 (1) the name of the persons, association, trust, or
6 corporation making such application; and
7 (2) the principal post office address of the applicant;
8 (3) if the applicant is a trustee, the names and
9 addresses of the beneficiaries; if the applicant is a
10 corporation, the names and post office addresses of all
11 officers, stockholders and directors; or if such
12 stockholders hold stock as a nominee or fiduciary, the
13 names and post office addresses of the parties these
14 persons, partnerships, corporations, or trusts who are the
15 beneficial owners thereof or who are beneficially
16 interested therein; and if the applicant is a partnership,
17 the names and post office addresses of all partners,
18 general or limited; if the applicant is a limited liability
19 company, the names and addresses of the manager and
20 members; and if the applicant is any other entity, the
21 names and addresses of all officers or other authorized
22 persons of the entity corporation, the name of the state of
23 its incorporation shall be specified.
24 (d) The applicant shall execute and file with the Board a
25good faith affirmative action plan to recruit, train, and
26upgrade minorities in all classifications within the

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1association.
2 (e) With such application there shall be delivered to the
3Board a certified check or bank draft payable to the order of
4the Board for an amount equal to $1,000. All applications for
5the issuance of an organization license shall be filed with the
6Board before August 1 of the year prior to the year for which
7application is made and shall be acted upon by the Board at a
8meeting to be held on such date as shall be fixed by the Board
9during the last 15 days of September of such prior year. At
10such meeting, the Board shall announce the award of the racing
11meets, live racing schedule, and designation of host track to
12the applicants and its approval or disapproval of each
13application. No announcement shall be considered binding until
14a formal order is executed by the Board, which shall be
15executed no later than October 15 of that prior year. Absent
16the agreement of the affected organization licensees, the Board
17shall not grant overlapping race meetings to 2 or more tracks
18that are within 100 miles of each other to conduct the
19thoroughbred racing.
20 (e-1) In awarding standardbred racing dates for calendar
21year 2018 and thereafter, the Board shall award at least 310
22racing days, and each organization licensee shall average at
23least 12 races for each racing day awarded. The Board shall
24have the discretion to allocate those racing days among
25organization licensees requesting standardbred racing dates.
26Once awarded by the Board, organization licensees awarded

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1standardbred racing dates shall run at least 3,500 races in
2total during that calendar year. Standardbred racing conducted
3in Sangamon County shall not be considered races under this
4subsection (e-1).
5 (e-2) In awarding racing dates for calendar year 2018 and
6thereafter, the Board shall award thoroughbred racing days to
7Cook County organization licensees commensurate with these
8organization licensees' requirement that they shall run at
9least 1,950 thoroughbred races in the aggregate, so long as 2
10organization licensees are conducting electronic gaming
11operations. Additionally, if the organization licensees that
12run thoroughbred races in Cook County are conducting electronic
13gaming operations, the Board shall increase the number of
14thoroughbred races to be run in Cook County in the aggregate to
15at least the following:
16 (i) 2,050 races in any year following the most recent
17 preceding complete calendar year when the combined
18 adjusted gross receipts of the electronic gaming licensees
19 operating at Cook County race tracks total in excess of
20 $200,000,000, but do not exceed $250,000,000;
21 (ii) 2,125 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 $250,000,000, but do not exceed $300,000,000;
26 (iii) 2,200 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 $300,000,000, but do not exceed $350,000,000;
5 (iv) 2,300 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 $350,000,000, but do not exceed $400,000,000;
10 (v) 2,375 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 $400,000,000, but do not exceed $450,000,000;
15 (vi) 2,450 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 $450,000,000, but do not exceed $500,000,000;
20 (vii) 2,550 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 exceeds $500,000,000.
24 In awarding racing dates under this subsection (e-2), the
25Board shall have the discretion to allocate those thoroughbred
26racing dates among these Cook County organization licensees.

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1 (e-3) In awarding racing dates for calendar year 2018 and
2thereafter in connection with a race track in Madison County,
3the Board shall award racing dates and such organization
4licensee shall run at least 700 thoroughbred races at the race
5track in Madison County each year.
6 Notwithstanding Section 7.7 of the Illinois Gambling Act or
7any provision of this Act other than subsection (e-4.5), for
8each calendar year for which an electronic gaming licensee
9located in Madison County requests racing dates resulting in
10less than 700 live thoroughbred races at its race track
11facility, the electronic gaming licensee may not conduct
12electronic gaming for the calendar year of such requested live
13races.
14 (e-4) Notwithstanding the provisions of Section 7.7 of the
15Illinois Gambling Act or any provision of this Act other than
16subsections (e-3) and (e-4.5), for each calendar year for which
17an electronic gaming licensee requests racing dates for a
18specific horse breed which results in a number of live races
19for that specific breed under its organization license that is
20less than the total number of live races for that specific
21breed which it conducted in 2011 for standardbred racing and in
222009 for thoroughbred racing at its race track facility, the
23electronic gaming licensee may not conduct electronic gaming
24for the calendar year of such requested live races.
25 (e-4.5) The Board shall ensure that each organization
26licensee shall individually run a sufficient number of races

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1per year to qualify for an electronic gaming license under this
2Act. The General Assembly finds that the minimum live racing
3guarantees contained in subsections (e-1), (e-2), and (e-3) are
4in the best interest of the sport of horse racing, and that
5such guarantees may only be reduced in the limited
6circumstances described in this subsection. The Board may
7decrease the number of racing days without affecting an
8organization licensee's ability to conduct electronic gaming
9only if the Board determines, after notice and hearing, that:
10 (i) a decrease is necessary to maintain a sufficient
11 number of betting interests per race to ensure the
12 integrity of racing;
13 (ii) there are unsafe track conditions due to weather
14 or acts of God;
15 (iii) there is an agreement between an organization
16 licensee and the breed association that is applicable to
17 the involved live racing guarantee, such association
18 representing either the largest number of thoroughbred
19 owners and trainers or the largest number of standardbred
20 owners, trainers and drivers who race horses at the
21 involved organization licensee's racing meeting, so long
22 as the agreement does not compromise the integrity of the
23 sport of horse racing; or
24 (iv) the horse population or purse levels are
25 insufficient to provide the number of racing opportunities
26 otherwise required in this Act.

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1 In decreasing the number of racing dates in accordance with
2this subsection, the Board shall hold a hearing and shall
3provide the public and all interested parties notice and an
4opportunity to be heard. The Board shall accept testimony from
5all interested parties, including any association representing
6owners, trainers, jockeys, or drivers who will be affected by
7the decrease in racing dates. The Board shall provide a written
8explanation of the reasons for the decrease and the Board's
9findings. The written explanation shall include a listing and
10content of all communication between any party and any Illinois
11Racing Board member or staff that does not take place at a
12public meeting of the Board.
13 (e-5) In reviewing an application for the purpose of
14granting an organization license consistent with the best
15interests of the public and the sport of horse racing, the
16Board shall consider:
17 (1) the character, reputation, experience, and
18 financial integrity of the applicant and of any other
19 separate person that either:
20 (i) controls the applicant, directly or
21 indirectly, or
22 (ii) is controlled, directly or indirectly, by
23 that applicant or by a person who controls, directly or
24 indirectly, that applicant;
25 (2) the applicant's facilities or proposed facilities
26 for conducting horse racing;

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1 (3) the total revenue without regard to Section 32.1 to
2 be derived by the State and horsemen from the applicant's
3 conducting a race meeting;
4 (4) the applicant's good faith affirmative action plan
5 to recruit, train, and upgrade minorities in all employment
6 classifications;
7 (5) the applicant's financial ability to purchase and
8 maintain adequate liability and casualty insurance;
9 (6) the applicant's proposed and prior year's
10 promotional and marketing activities and expenditures of
11 the applicant associated with those activities;
12 (7) an agreement, if any, among organization licensees
13 as provided in subsection (b) of Section 21 of this Act;
14 and
15 (8) the extent to which the applicant exceeds or meets
16 other standards for the issuance of an organization license
17 that the Board shall adopt by rule.
18 In granting organization licenses and allocating dates for
19horse race meetings, the Board shall have discretion to
20determine an overall schedule, including required simulcasts
21of Illinois races by host tracks that will, in its judgment, be
22conducive to the best interests of the public and the sport of
23horse racing.
24 (e-10) The Illinois Administrative Procedure Act shall
25apply to administrative procedures of the Board under this Act
26for the granting of an organization license, except that (1)

HB2498- 228 -LRB100 03891 AMC 13896 b
1notwithstanding the provisions of subsection (b) of Section
210-40 of the Illinois Administrative Procedure Act regarding
3cross-examination, the Board may prescribe rules limiting the
4right of an applicant or participant in any proceeding to award
5an organization license to conduct cross-examination of
6witnesses at that proceeding where that cross-examination
7would unduly obstruct the timely award of an organization
8license under subsection (e) of Section 20 of this Act; (2) the
9provisions of Section 10-45 of the Illinois Administrative
10Procedure Act regarding proposals for decision are excluded
11under this Act; (3) notwithstanding the provisions of
12subsection (a) of Section 10-60 of the Illinois Administrative
13Procedure Act regarding ex parte communications, the Board may
14prescribe rules allowing ex parte communications with
15applicants or participants in a proceeding to award an
16organization license where conducting those communications
17would be in the best interest of racing, provided all those
18communications are made part of the record of that proceeding
19pursuant to subsection (c) of Section 10-60 of the Illinois
20Administrative Procedure Act; (4) the provisions of Section 14a
21of this Act and the rules of the Board promulgated under that
22Section shall apply instead of the provisions of Article 10 of
23the Illinois Administrative Procedure Act regarding
24administrative law judges; and (5) the provisions of subsection
25(d) of Section 10-65 of the Illinois Administrative Procedure
26Act that prevent summary suspension of a license pending

HB2498- 229 -LRB100 03891 AMC 13896 b
1revocation or other action shall not apply.
2 (f) The Board may allot racing dates to an organization
3licensee for more than one calendar year but for no more than 3
4successive calendar years in advance, provided that the Board
5shall review such allotment for more than one calendar year
6prior to each year for which such allotment has been made. The
7granting of an organization license to a person constitutes a
8privilege to conduct a horse race meeting under the provisions
9of this Act, and no person granted an organization license
10shall be deemed to have a vested interest, property right, or
11future expectation to receive an organization license in any
12subsequent year as a result of the granting of an organization
13license. Organization licenses shall be subject to revocation
14if the organization licensee has violated any provision of this
15Act or the rules and regulations promulgated under this Act or
16has been convicted of a crime or has failed to disclose or has
17stated falsely any information called for in the application
18for an organization license. Any organization license
19revocation proceeding shall be in accordance with Section 16
20regarding suspension and revocation of occupation licenses.
21 (f-5) If, (i) an applicant does not file an acceptance of
22the racing dates awarded by the Board as required under part
23(1) of subsection (h) of this Section 20, or (ii) an
24organization licensee has its license suspended or revoked
25under this Act, the Board, upon conducting an emergency hearing
26as provided for in this Act, may reaward on an emergency basis

HB2498- 230 -LRB100 03891 AMC 13896 b
1pursuant to rules established by the Board, racing dates not
2accepted or the racing dates associated with any suspension or
3revocation period to one or more organization licensees, new
4applicants, or any combination thereof, upon terms and
5conditions that the Board determines are in the best interest
6of racing, provided, the organization licensees or new
7applicants receiving the awarded racing dates file an
8acceptance of those reawarded racing dates as required under
9paragraph (1) of subsection (h) of this Section 20 and comply
10with the other provisions of this Act. The Illinois
11Administrative Procedure Act shall not apply to the
12administrative procedures of the Board in conducting the
13emergency hearing and the reallocation of racing dates on an
14emergency basis.
15 (g) (Blank).
16 (h) The Board shall send the applicant a copy of its
17formally executed order by certified mail addressed to the
18applicant at the address stated in his application, which
19notice shall be mailed within 5 days of the date the formal
20order is executed.
21 Each applicant notified shall, within 10 days after receipt
22of the final executed order of the Board awarding racing dates:
23 (1) file with the Board an acceptance of such award in
24 the form prescribed by the Board;
25 (2) pay to the Board an additional amount equal to $110
26 for each racing date awarded; and

HB2498- 231 -LRB100 03891 AMC 13896 b
1 (3) file with the Board the bonds required in Sections
2 21 and 25 at least 20 days prior to the first day of each
3 race meeting.
4Upon compliance with the provisions of paragraphs (1), (2), and
5(3) of this subsection (h), the applicant shall be issued an
6organization license.
7 If any applicant fails to comply with this Section or fails
8to pay the organization license fees herein provided, no
9organization license shall be issued to such applicant.
10(Source: P.A. 97-333, eff. 8-12-11.)
11 (230 ILCS 5/21) (from Ch. 8, par. 37-21)
12 Sec. 21. (a) Applications for organization licenses must be
13filed with the Board at a time and place prescribed by the
14rules and regulations of the Board. The Board shall examine the
15applications within 21 days after the date allowed for filing
16with respect to their conformity with this Act and such rules
17and regulations as may be prescribed by the Board. If any
18application does not comply with this Act or the rules and
19regulations prescribed by the Board, such application may be
20rejected and an organization license refused to the applicant,
21or the Board may, within 21 days of the receipt of such
22application, advise the applicant of the deficiencies of the
23application under the Act or the rules and regulations of the
24Board, and require the submittal of an amended application
25within a reasonable time determined by the Board; and upon

HB2498- 232 -LRB100 03891 AMC 13896 b
1submittal of the amended application by the applicant, the
2Board may consider the application consistent with the process
3described in subsection (e-5) of Section 20 of this Act. If it
4is found to be in compliance with this Act and the rules and
5regulations of the Board, the Board may then issue an
6organization license to such applicant.
7 (b) The Board may exercise discretion in granting racing
8dates to qualified applicants different from those requested by
9the applicants in their applications. However, if all eligible
10applicants for organization licenses whose tracks are located
11within 100 miles of each other execute and submit to the Board
12a written agreement among such applicants as to the award of
13racing dates, including where applicable racing programs, for
14up to 3 consecutive years, then subject to annual review of
15each applicant's compliance with Board rules and regulations,
16provisions of this Act and conditions contained in annual dates
17orders issued by the Board, the Board may grant such dates and
18programs to such applicants as so agreed by them if the Board
19determines that the grant of these racing dates is in the best
20interests of racing. The Board shall treat any such agreement
21as the agreement signatories' joint and several application for
22racing dates during the term of the agreement.
23 (c) Where 2 or more applicants propose to conduct horse
24race meetings within 35 miles of each other, as certified to
25the Board under Section 19 (a) (1) of this Act, on conflicting
26dates, the Board may determine and grant the number of racing

HB2498- 233 -LRB100 03891 AMC 13896 b
1days to be awarded to the several applicants in accordance with
2the provisions of subsection (e-5) of Section 20 of this Act.
3 (d) (Blank).
4 (e) Prior to the issuance of an organization license, the
5applicant shall file with the Board a bond payable to the State
6of Illinois in the sum of $200,000, executed by the applicant
7and a surety company or companies authorized to do business in
8this State, a