Bill Text: IL HB5146 | 2017-2018 | 100th General Assembly | Introduced

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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. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. 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. Makes other changes. Contains a severability provision. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5146 Detail]

Download: Illinois-2017-HB5146-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5146 Introduced , by Rep. Rita Mayfield 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. Indefinitely extends the authorization for advance deposit wagering. Contains provisions concerning testing of horses at county fairs and standardbred horses. 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. Makes other changes. Contains a severability provision. Effective immediately.
LRB100 18631 SMS 33856 b
CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY HOME RULE NOTE ACT MAY APPLY
A BILL FOR
HB5146 LRB100 18631 SMS 33856 b
AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1.
Section 1-1. Short title. This Article may be cited as the
Chicago Casino Development Authority Act. References in this
Article to "this Act" mean this Article.
Section 1-2. Legislative intent.
(a) This Act is intended to benefit the people of the City
of Chicago and the State of Illinois by assisting economic
development and promoting tourism and by increasing the amount
of revenues available to the City and the State to assist and
support the City's pension obligation in accordance with Public
Act 99-506.
(b) While authorization of casino gambling in Chicago will
enhance investment, development, and tourism in Illinois, it is
recognized that it will do so successfully only if public
confidence and trust in the credibility and integrity of the
gambling operations and the regulatory process is maintained.
Therefore, the provisions of this Act are designed to allow the
Illinois Gaming Board to strictly regulate the facilities,
persons, associations, and practices related to gambling

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operations pursuant to the police powers of the State,
including comprehensive law enforcement supervision.
Consistent with the Gaming Board's authority, the Gaming Board
alone shall regulate any Chicago casino, just as it now
regulates every other casino in Illinois.
Section 1-5. Definitions. As used in this Act:
"Authority" means the Chicago Casino Development Authority
created by this Act.
"Casino" means one temporary land-based or water-based
facility and one permanent land-based or water-based facility
and airport gaming locations pursuant to Section 1-67 of this
Act at which lawful gambling is authorized and licensed as
provided in the Illinois Gambling Act.
"Casino Board" means the board appointed pursuant to this
Act to govern and control the Authority.
"Casino management contract" means a legally binding
agreement between the Authority and a casino operator licensee
to operate or manage a casino.
"Casino operator licensee" means any person or entity
selected by the Authority and approved and licensed by the
Gaming Board to manage and operate a casino within the City of
Chicago pursuant to a casino management contract.
"City" means the City of Chicago.
"Entity" means a corporation, joint venture, partnership,
limited liability company, trust, or unincorporated

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

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licensee is late in paying any such fees. The Authority is
granted all rights and powers necessary to perform such duties.
Subject to the provisions of this Act, the Authority and casino
operator licensee are subject to the Illinois Gambling Act and
all of the rules of the Gaming Board, which shall be applied to
the Authority and the casino operator licensee in a manner
consistent with that of other owners licensees under the
Illinois Gambling Act. Nothing in this Act shall confer
regulatory authority on the Chicago Casino Development
Authority. The Illinois Gaming Board shall have exclusive
regulatory authority over all gambling operations governed by
this Act.
Section 1-15. Casino Board.
(a) The governing and administrative powers of the
Authority shall be vested in a body known as the Chicago Casino
Development Board. The Casino Board shall consist of 5 members
appointed by the Mayor. One of these members shall be
designated by the Mayor to serve as chairperson. All of the
members appointed by the Mayor shall be residents of the City.
Each Casino Board appointee shall be subject to a
preliminary background investigation completed by the Gaming
Board within 30 days after the appointee's submission of his or
her application to the Gaming Board. If the Gaming Board
determines that there is a substantial likelihood that it will
not find the appointee to be suitable to serve on the Casino

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Board (applying the same standards for suitability to the
appointee as the Gaming Board would apply to an owners licensee
key person under the Gaming Board's adopted rules), then the
Gaming Board shall provide a written notice of such
determination to the appointee and the Corporation Counsel of
the City. The Mayor may then appoint a new candidate. If no
such notice is delivered with respect to a particular
appointee, then commencing on the 31st day following the date
of the appointee's submission of his or her application to the
Gaming Board, the appointee shall be deemed an acting member of
the Casino Board and shall participate as a Casino Board
member.
Each appointee shall be subject to a full background
investigation and final approval by the Gaming Board prior to
the opening of the casino. The Gaming Board shall complete its
full background investigation of the Casino Board appointee
within 3 months after the date of the appointee's submission of
his or her application to the Gaming Board. If the Gaming Board
does not complete its background investigation within the
3-month period, then the Gaming Board shall give a written
explanation to the appointee, as well as the Mayor, the
Governor, the President of the Senate, and the Speaker of the
House of Representatives, as to why it has not reached a final
determination and set forth a reasonable time when such
determination shall be made.
(b) Casino Board members shall receive $300 for each day

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

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

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

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of the executive director's submission of his or her
application to the Gaming Board, the executive director shall
commence all duties as the acting executive director of the
Authority.
The executive director shall be subject to a full
background investigation and final approval by the Gaming Board
prior to the opening of the casino. The Gaming Board shall
complete its full background investigation of the executive
director within 3 months after the date of the executive
director's submission of his or her application to the Gaming
Board. If the Gaming Board does not complete its background
investigation within the 3-month period, then the Gaming Board
shall give a written explanation to the appointee, as well as
the Mayor, the Governor, the President of the Senate, and the
Speaker of the House of Representatives, as to why it has not
reached a final determination and set forth a reasonable time
when such determination shall be made.
(b) The Casino Board shall fix the compensation of the
executive director. Subject to the general control of the
Casino Board, the executive director shall be responsible for
the management of the business, properties, and employees of
the Authority. The executive director shall direct the
enforcement of all resolutions, rules, and regulations of the
Casino Board, and shall perform such other duties as may be
prescribed from time to time by the Casino Board. All employees
and independent contractors, consultants, engineers,

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

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

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

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identifying such entities is provided to the Gaming Board,
such entities shall be permitted to commence the services
contemplated for the design, construction, and outfitting
of the temporary casino. In no event, however, shall the
Authority open a casino until after the Gaming Board has
finally approved the Authority's executive director and
the members of the Casino Board and the Gaming Board has
issued the Authority's owners license and the casino
operator's casino operator license.
(10) Enter into a casino management contract subject to
the provisions of Section 1-45 of this Act.
(11) Negotiate and enter into intergovernmental
agreements with the State and its agencies, the City, and
other units of local government, in furtherance of the
powers and duties of the Casino Board.
(12) Receive and disburse funds for its own corporate
purposes or as otherwise specified in this Act.
(13) Borrow money from any source, public or private,
for any corporate purpose, including, without limitation,
working capital for its operations, reserve funds, or
payment of interest, and to mortgage, pledge, or otherwise
encumber the property or funds of the Authority and to
contract with or engage the services of any person in
connection with any financing, including financial
institutions, issuers of letters of credit, or insurers and
enter into reimbursement agreements with this person or

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entity which may be secured as if money were borrowed from
the person or entity.
(14) Issue bonds as provided for under this Act.
(15) Receive and accept from any source, private or
public, contributions, gifts, or grants of money or
property to the Authority.
(16) Provide for the insurance of any property,
operations, officers, members, agents, or employees of the
Authority against any risk or hazard, to self-insure or
participate in joint self-insurance pools or entities to
insure against such risk or hazard, and to provide for the
indemnification of its officers, members, employees,
contractors, or agents against any and all risks.
(17) Exercise all the corporate powers granted
Illinois corporations under the Business Corporation Act
of 1983, except to the extent that powers are inconsistent
with those of a body politic and municipal corporation.
(18) Do all things necessary or convenient to carry out
the powers granted by this Act.
(b) The Casino Board shall comply with all applicable legal
requirements imposed on other owners licensees to conduct all
background investigations required under the Illinois Gambling
Act and the rules of the Gaming Board. This requirement shall
also extend to senior legal, financial, and administrative
staff of the Authority.

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Section 1-32. Ethical conduct.
(a) Casino Board members and employees of the Authority
must carry out their duties and responsibilities in such a
manner as to promote and preserve public trust and confidence
in the integrity and conduct of gaming.
(b) Except as may be required in the conduct of official
duties, Casino Board members and employees of the Authority
shall not engage in gambling on any riverboat, in any casino,
or in an electronic gaming facility licensed by the Illinois
Gaming Board or engage in legalized gambling in any
establishment identified by Gaming Board action that, in the
judgment of the Gaming Board, could represent a potential for a
conflict of interest.
(c) A Casino Board member or employee of the Authority
shall not use or attempt to use his or her official position to
secure or attempt to secure any privilege, advantage, favor, or
influence for himself or herself or others.
(d) Casino Board members and employees of the Authority
shall not hold or pursue employment, office, position,
business, or occupation that may conflict with his or her
official duties. Employees may engage in other gainful
employment so long as that employment does not interfere or
conflict with their duties. Such employment must be disclosed
to the executive director and approved by the Casino Board.
(e) Casino Board members, employees of the Authority, and
elected officials and employees of the City may not engage in

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employment, communications, or any activity identified by the
Casino Board or Gaming Board that, in the judgment of either
entity, could represent the potential for or the appearance of
a conflict of interest.
(f) Casino Board members, employees of the Authority, and
elected officials and employees of the City may not have a
financial interest, directly or indirectly, in his or her own
name or in the name of any other person, partnership,
association, trust, corporation, or other entity in any
contract or subcontract for the performance of any work for the
Authority. This prohibition shall extend to the holding or
acquisition of an interest in any entity identified by the
Casino Board or the Gaming Board that, in the judgment of
either entity, could represent the potential for or the
appearance of a financial interest. The holding or acquisition
of an interest in such entities through an indirect means, such
as through a mutual fund, shall not be prohibited, except that
the Gaming Board may identify specific investments or funds
that, in its judgment, are so influenced by gaming holdings as
to represent the potential for or the appearance of a conflict
of interest.
(g) Casino Board members, employees of the Authority, and
elected officials and employees of the City may not accept any
gift, gratuity, service, compensation, travel, lodging, or
thing of value, with the exception of unsolicited items of an
incidental nature, from any person, corporation, or entity

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

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holdings as to represent the potential for or the appearance of
a conflict of interest.
(j) A spouse, child, or parent of a Casino Board member,
employee of the Authority, or elected official or employee of
the City may not accept any gift, gratuity, service,
compensation, travel, lodging, or thing of value, with the
exception of unsolicited items of an incidental nature, from
any person, corporation, or entity doing business with the
Authority.
(k) A spouse, child, or parent of a Casino Board member,
employee of the Authority, or elected official or employee of
the City may not, while the person is a Board member or
employee of the spouse or within a period of 2 years
immediately after termination of employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity, or its parent or affiliate, that has engaged
in business with the Authority that resulted in contracts with
an aggregate value of at least $25,000 or if that Casino Board
member, employee, or elected official or employee of the City
has made a decision that directly applied to the person or
entity, or its parent or affiliate.
(l) No Casino Board member, employee of the Authority, or
elected official or employee of the City may attempt, in any
way, to influence any person or entity doing business with the
Authority or any officer, agent, or employee thereof to hire or
contract with any person or entity for any compensated work.

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

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digital, then the entire communication shall be disclosed.
Public disclosure of the written summary provided to the
Casino Board and the Gaming Board shall be subject to the
exemptions provided under Section 7 of the Freedom of
Information Act.
This subsection (n) shall not apply to communications
regarding traffic, law enforcement, security, environmental
issues, City services, transportation, or other routine
matters concerning the ordinary operations of the casino.
(o) For purposes of this Section:
"Ordinary operations" means operations relating to the
casino facility other than the conduct of gambling activities.
"Routine matters" includes the application for, issuance,
renewal, and other processes associated with City permits and
licenses.
"Employee of the City" means only those employees of the
City who provide services to the Authority or otherwise
influence the decisions of the Authority or the Casino Board.
(p) Any Casino Board member or employee of the Authority
who violates any provision of this Section is guilty of a Class
4 felony.
Section 1-45. Casino management contracts.
(a) The Casino Board shall enter into a casino management
contract with a casino operator subject to a background
investigation and approval by the Gaming Board and payment by

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the proposed casino operator of a fee of $50,000,000, which
shall be deposited into the Gaming Facilities Fee Revenue Fund.
The Gaming Board shall complete its background investigation
and approval of the casino operator within 6 months after the
date that the proposed casino operator submits its application
to the Gaming Board. If the Gaming Board does not complete its
background investigation and approval within the 6-month
period, then the Gaming Board shall give a written explanation
to the proposed casino operator and the chief legal officer of
the Authority as to why it has not reached a final
determination and when it reasonably expects to make a final
determination. Validity of the casino management contract is
contingent upon the issuance of a casino operator license. If
the Gaming Board grants a casino operator license, the Casino
Board shall transmit a copy of the executed casino management
contract to the Gaming Board.
(b) After (1) the Authority has been issued an owners
license, (2) the Gaming Board has issued a casino operator
license, and (3) the Gaming Board has approved the members of
the Casino Board, the Authority may conduct gaming operations
at a temporary facility, subject to the adopted rules of the
Gaming Board, for no longer than 24 months after gaming
operations begin. The Gaming Board may, after holding a public
hearing, grant an extension so long as a permanent facility is
not operational and the Authority is working in good faith to
complete the permanent facility. The Gaming Board may grant

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additional extensions following further public hearings. Each
extension may be for a period of no longer than 6 months.
Section 1-47. Freedom of Information Act. The Authority
shall be a public body as defined in the Freedom of Information
Act and shall be subject to the provisions of the Freedom of
Information Act.
Section 1-50. Transfer of funds. The revenues received by
the Authority (other than amounts required to be paid pursuant
to the Illinois Gambling Act and amounts required to pay the
operating expenses of the Authority, to pay amounts due the
casino operator licensee pursuant to a casino management
contract, to repay any borrowing of the Authority made pursuant
to Section 1-31, to pay debt service on any bonds issued under
Section 1-75, and to pay any expenses in connection with the
issuance of such bonds pursuant to Section 1-75 or derivative
products pursuant to Section 1-85) shall be transferred to the
City by the Authority. Moneys transferred to the City pursuant
to this Section shall be expended or obligated by the City for
pension payments in accordance with Public Act 99-506.
Section 1-60. Auditor General.
(a) Prior to the issuance of bonds under this Act, the
Authority shall submit to the Auditor General a certification
that:

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(1) it is legally authorized to issue bonds;
(2) scheduled annual payments of principal and
interest on the bonds to be issued meet the requirements of
Section 1-75 of this Act;
(3) no bond shall mature later than 30 years; and
(4) after payment of costs of issuance and necessary
deposits to funds and accounts established with respect to
debt service on the bonds, the net bond proceeds (exclusive
of any proceeds to be used to refund outstanding bonds)
will be used only for the purposes set forth in this Act.
The Authority also shall submit to the Auditor General its
projections on revenues to be generated and pledged to
repayment of the bonds as scheduled and such other information
as the Auditor General may reasonably request.
The Auditor General shall examine the certifications and
information submitted and submit a report to the Authority and
the Gaming Board indicating whether the required
certifications, projections, and other information have been
submitted by the Authority and whether the assumptions
underlying the projections are not unreasonable in the
aggregate. The Auditor General shall submit the report no later
than 60 days after receiving the information required to be
submitted by the Authority.
The Auditor General shall submit a bill to the Authority
for costs associated with the examinations and report required
under this Section. The Authority shall reimburse in a timely

HB5146 - 24 - LRB100 18631 SMS 33856 b
manner.
(b) The Authority shall enter into an intergovernmental
agreement with the Auditor General authorizing the Auditor
General to, every 2 years, (i) review the financial audit of
the Authority performed by the Authority's certified public
accountants, (ii) perform a management audit of the Authority,
and (iii) perform a management audit of the casino operator
licensee. The Auditor General shall provide the Authority and
the General Assembly with the audits and shall post on his or
her Internet website such portions of the audit or other
financial information as generally would be made publicly
available for other owners licensees under the Illinois
Gambling Act. The Auditor General shall submit a bill to the
Authority for costs associated with the review and the audit
required under this Section, which costs shall not exceed
$100,000, and the Authority shall reimburse the Auditor General
for such costs in a timely manner.
Section 1-62. Advisory committee. An Advisory Committee is
established to monitor, review, and report on (1) the
Authority's utilization of minority-owned business enterprises
and female-owned business enterprises, (2) employment of
females, and (3) employment of minorities with regard to the
development and construction of the casino as authorized under
Section 7 of the Illinois Gambling Act. The Authority shall
work with the Advisory Committee in accumulating necessary

HB5146 - 25 - LRB100 18631 SMS 33856 b
information for the Committee to submit reports, as necessary,
to the General Assembly and to the City.
The Committee shall consist of 9 members as provided in
this Section. Five members shall be selected by the Governor
and 4 members shall be selected by the Mayor. The Governor and
Mayor shall each appoint at least one current member of the
General Assembly. The Advisory Committee shall meet
periodically and shall report the information to the Mayor of
the City and to the General Assembly by December 31st of every
year.
The Advisory Committee shall be dissolved on the date that
casino gambling operations are first conducted at a permanent
facility under the license authorized under Section 7 of the
Illinois Gambling Act. For the purposes of this Section, the
terms "female" and "minority person" have the meanings provided
in Section 2 of the Business Enterprise for Minorities,
Females, and Persons with Disabilities Act.
Section 1-65. Acquisition of property; eminent domain
proceedings. For the lawful purposes of this Act, the City may
acquire, by eminent domain or by condemnation proceedings in
the manner provided by the Eminent Domain Act, real or personal
property or interests in real or personal property located in
the City, and the City may convey to the Authority property so
acquired. The acquisition of property under this Section is
declared to be for a public use.

HB5146 - 26 - LRB100 18631 SMS 33856 b
Section 1-67. Limitations on gaming at Chicago airports.
The Authority may conduct gaming operations in an airport under
the administration or control of the Chicago Department of
Aviation. Gaming operations may be conducted pursuant to this
Section so long as (i) gaming operations are conducted in a
secured area that is beyond the Transportation Security
Administration security checkpoints and only available to
airline passengers at least 21 years of age who are members of
a private club, and not to the general public, (ii) gaming
operations are limited to slot machines, as defined in Section
4 of the Illinois Gambling Act, and (iii) the combined number
of gaming positions operating in the City at the airports and
at the temporary and permanent casino facility does not exceed
the maximum number of gaming positions authorized pursuant to
subsection (h) of Section 7 of the Illinois Gambling Act.
Gaming operations at an airport are subject to all applicable
laws and rules that apply to any other gaming facility under
this Act or the Illinois Gambling Act.
Section 1-70. Local regulation. In addition to this Act,
the Illinois Gambling Act, and all of the rules of the Gaming
Board, the casino facilities and operations therein shall be
subject to all ordinances and regulations of the City. The
construction, development, and operation of the casino shall
comply with all ordinances, regulations, rules, and controls of

HB5146 - 27 - LRB100 18631 SMS 33856 b
the City, including, but not limited to, those relating to
zoning and planned development, building, fire prevention, and
land use. However, the regulation of gaming operations is
subject to the exclusive jurisdiction of the Gaming Board. The
Gaming Board shall be responsible for the investigation for and
issuance of all licenses required by this Act and the Illinois
Gambling Act.
Section 1-75. Borrowing.
(a) The Authority may borrow money and issue bonds as
provided in this Section. Bonds of the Authority may be issued
to provide funds for land acquisition, site assembly and
preparation, and the design and construction of the casino, as
defined in the Illinois Gambling Act, all ancillary and related
facilities comprising the casino complex, and all on-site and
off-site infrastructure improvements required in connection
with the development of the casino; to refund (at the time or
in advance of any maturity or redemption) or redeem any bonds
of the Authority; to provide or increase a debt service reserve
fund or other reserves with respect to any or all of its bonds;
or to pay the legal, financial, administrative, bond insurance,
credit enhancement, and other legal expenses of the
authorization, issuance, or delivery of bonds. In this Act, the
term "bonds" also includes notes of any kind, interim
certificates, refunding bonds, or any other evidence of
obligation for borrowed money issued under this Section. Bonds

HB5146 - 28 - LRB100 18631 SMS 33856 b
may be issued in one or more series and may be payable and
secured either on a parity with or separately from other bonds.
(b) The bonds of the Authority shall be payable from one or
more of the following sources: (i) the property or revenues of
the Authority; (ii) revenues derived from the casino; (iii)
revenues derived from any casino operator licensee; (iv) fees,
bid proceeds, charges, lease payments, payments required
pursuant to any casino management contract or other revenues
payable to the Authority, or any receipts of the Authority; (v)
payments by financial institutions, insurance companies, or
others pursuant to letters or lines of credit, policies of
insurance, or purchase agreements; (vi) investment earnings
from funds or accounts maintained pursuant to a bond resolution
or trust indenture; (vii) proceeds of refunding bonds; (viii)
any other revenues derived from or payments by the City; and
(ix) any payments by any casino operator licensee or others
pursuant to any guaranty agreement.
(c) Bonds shall be authorized by a resolution of the
Authority and may be secured by a trust indenture by and
between the Authority and a corporate trustee or trustees,
which may be any trust company or bank having the powers of a
trust company within or without the State. Bonds shall meet the
following requirements:
(1) Bonds may bear interest payable at any time or
times and at any rate or rates, notwithstanding any other
provision of law to the contrary, and may be subject to

HB5146 - 29 - LRB100 18631 SMS 33856 b
such other terms and conditions as may be provided by the
resolution or indenture authorizing the issuance of such
bonds.
(2) Bonds issued pursuant to this Section may be
payable on such dates and times as may be provided for by
the resolution or indenture authorizing the issuance of
such bonds; provided, however, that such bonds shall mature
no later than 30 years from the date of issuance.
(3) Bonds issued pursuant to this Section may be sold
pursuant to notice of sale and public bid or by negotiated
sale.
(4) Bonds shall be payable at a time or times, in the
denominations and form, including book entry form, either
coupon, registered, or both, and carry the registration and
privileges as to exchange, transfer or conversion, and
replacement of mutilated, lost, or destroyed bonds as the
resolution or trust indenture may provide.
(5) Bonds shall be payable in lawful money of the
United States at a designated place.
(6) Bonds shall be subject to the terms of purchase,
payment, redemption, refunding, or refinancing that the
resolution or trust indenture provides.
(7) Bonds shall be executed by the manual or facsimile
signatures of the officers of the Authority designated by
the Board, which signatures shall be valid at delivery even
for one who has ceased to hold office.

HB5146 - 30 - LRB100 18631 SMS 33856 b
(8) Bonds shall be sold at public or private sale in
the manner and upon the terms determined by the Authority.
(9) Bonds shall be issued in accordance with the
provisions of the Local Government Debt Reform Act.
(d) The Authority shall adopt a procurement program with
respect to contracts relating to underwriters, bond counsel,
financial advisors, and accountants. The program shall include
goals for the payment of not less than 30% of the total dollar
value of the fees from these contracts to minority-owned
businesses and female-owned businesses as defined in the
Business Enterprise for Minorities, Females, and Persons with
Disabilities Act. The Authority shall conduct outreach to
minority-owned businesses and female-owned businesses.
Outreach shall include, but is not limited to, advertisements
in periodicals and newspapers, mailings, and other appropriate
media. The Authority shall submit to the General Assembly a
comprehensive report that shall include, at a minimum, the
details of the procurement plan, outreach efforts, and the
results of the efforts to achieve goals for the payment of
fees.
(e) Subject to the Illinois Gambling Act and rules of the
Gaming Board regarding pledging of interests in holders of
owners licenses, any resolution or trust indenture may contain
provisions that may be a part of the contract with the holders
of the bonds as to the following:
(1) Pledging, assigning, or directing the use,

HB5146 - 31 - LRB100 18631 SMS 33856 b
investment, or disposition of revenues of the Authority or
proceeds or benefits of any contract, including without
limitation any rights in any casino management contract.
(2) The setting aside of loan funding deposits, debt
service reserves, replacement or operating reserves, cost
of issuance accounts and sinking funds, and the regulation,
investment, and disposition thereof.
(3) Limitations on the purposes to which or the
investments in which the proceeds of sale of any issue of
bonds or the Authority's revenues and receipts may be
applied or made.
(4) Limitations on the issue of additional bonds, the
terms upon which additional bonds may be issued and
secured, the terms upon which additional bonds may rank on
a parity with, or be subordinate or superior to, other
bonds.
(5) The refunding, advance refunding, or refinancing
of outstanding bonds.
(6) The procedure, if any, by which the terms of any
contract with bondholders may be altered or amended and the
amount of bonds and holders of which must consent thereto
and the manner in which consent shall be given.
(7) Defining the acts or omissions that shall
constitute a default in the duties of the Authority to
holders of bonds and providing the rights or remedies of
such holders in the event of a default, which may include

HB5146 - 32 - LRB100 18631 SMS 33856 b
provisions restricting individual rights of action by
bondholders.
(8) Providing for guarantees, pledges of property,
letters of credit, or other security, or insurance for the
benefit of bondholders.
(f) No member of the Casino Board, nor any person executing
the bonds, shall be liable personally on the bonds or subject
to any personal liability by reason of the issuance of the
bonds.
(g) The Authority may issue and secure bonds in accordance
with the provisions of the Local Government Credit Enhancement
Act.
(h) A pledge by the Authority of revenues and receipts as
security for an issue of bonds or for the performance of its
obligations under any casino management contract shall be valid
and binding from the time when the pledge is made. The revenues
and receipts pledged shall immediately be subject to the lien
of the pledge without any physical delivery or further act, and
the lien of any pledge shall be valid and binding against any
person having any claim of any kind in tort, contract, or
otherwise against the Authority, irrespective of whether the
person has notice. No resolution, trust indenture, management
agreement or financing statement, continuation statement, or
other instrument adopted or entered into by the Authority need
be filed or recorded in any public record other than the
records of the Authority in order to perfect the lien against

HB5146 - 33 - LRB100 18631 SMS 33856 b
third persons, regardless of any contrary provision of law.
(i) Bonds that are being paid or retired by issuance, sale,
or delivery of bonds, and bonds for which sufficient funds have
been deposited with the paying agent or trustee to provide for
payment of principal and interest thereon, and any redemption
premium, as provided in the authorizing resolution, shall not
be considered outstanding for the purposes of this subsection.
(j) The bonds of the Authority shall not be indebtedness of
the State. The bonds of the Authority are not general
obligations of the State and are not secured by a pledge of the
full faith and credit of the State and the holders of bonds of
the Authority may not require the application of State revenues
or funds to the payment of bonds of the Authority. The
foregoing non-recourse language must be printed in bold-face
type on the face of the bonds and in the preliminary and final
official statements on the bonds.
(k) The State of Illinois pledges and agrees with the
owners of the bonds that it will not limit or alter the rights
and powers vested in the Authority by this Act so as to impair
the terms of any contract made by the Authority with the owners
or in any way impair the rights and remedies of the owners
until the bonds, together with interest on them, and all costs
and expenses in connection with any action or proceedings by or
on behalf of the owners, are fully met and discharged. The
Authority is authorized to include this pledge and agreement in
any contract with the owners of bonds issued under this

HB5146 - 34 - LRB100 18631 SMS 33856 b
Section.
(l) No person holding an elective office in the City, in
Cook County, or in this State, holding a seat in the General
Assembly, or serving as a board member, trustee, officer, or
employee of the Authority, including the spouse of that person,
may receive a legal, banking, consulting, or other fee related
to the issuance of bonds. This prohibition shall also apply to
a company or firm that employs a person holding an elective
office in the City, in Cook County, or in this State, holding a
seat in the General Assembly, or serving as a board member,
trustee, officer, or employee of the Authority, including the
spouse of that person, if the person or his or her spouse has
greater than 7.5% ownership of the company or firm.
Section 1-85. Derivative products. With respect to all or
part of any issue of its bonds, the Authority may enter into
agreements or contracts with any necessary or appropriate
person, which will have the benefit of providing to the
Authority an interest rate basis, cash flow basis, or other
basis different from that provided in the bonds for the payment
of interest. Such agreements or contracts may include, without
limitation, agreements or contracts commonly known as
"interest rate swap agreements", "forward payment conversion
agreements", "futures", "options", "puts", or "calls" and
agreements or contracts providing for payments based on levels
of or changes in interest rates, agreements or contracts to

HB5146 - 35 - LRB100 18631 SMS 33856 b
exchange cash flows or a series of payments, or to hedge
payment, rate spread, or similar exposure. Any such agreement
or contract shall be solely an obligation or indebtedness of
the Authority and shall not be an obligation or indebtedness of
the State, nor shall any party thereto have any recourse
against the State in connection with the agreement or contract.
Section 1-90. Legality for investment. The State of
Illinois, all governmental entities, all public officers,
banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan
associations, investment companies, and other persons carrying
on a banking business, insurance companies, insurance
associations, and other persons carrying on an insurance
business, and all executors, administrators, guardians,
trustees, and other fiduciaries may legally invest any sinking
funds, moneys, or other funds belonging to them or within their
control in any bonds issued under this Act. However, nothing in
this Section shall be construed as relieving any person or
entity from any duty of exercising reasonable care in selecting
securities for purchase or investment.
Section 1-105. Budgets and reporting.
(a) The Casino Board shall annually adopt a budget for each
fiscal year. The budget may be modified from time to time in
the same manner and upon the same vote as it may be adopted.

HB5146 - 36 - LRB100 18631 SMS 33856 b
The budget shall include the Authority's available funds and
estimated revenues and shall provide for payment of its
obligations and estimated expenditures for the fiscal year,
including, without limitation, expenditures for
administration, operation, maintenance and repairs, debt
service, and deposits into reserve and other funds and capital
projects.
(b) The Casino Board shall annually cause the finances of
the Authority to be audited by a firm of certified public
accountants selected by the Casino Board in accordance with the
rules of the Gaming Board and post on the Authority's Internet
website such financial information as is required to be posted
by all other owners licensees under the Illinois Gambling Act.
(c) The Casino Board shall, for each fiscal year, prepare
an annual report setting forth information concerning its
activities in the fiscal year and the status of the development
of the casino. The annual report shall include financial
information of the Authority consistent with that which is
required for all other owners licensees under the Illinois
Gambling Act, the budget for the succeeding fiscal year, and
the current capital plan as of the date of the report. Copies
of the annual report shall be made available to persons who
request them and shall be submitted not later than 120 days
after the end of the Authority's fiscal year or, if the audit
of the Authority's financial statements is not completed within
120 days after the end of the Authority's fiscal year, as soon

HB5146 - 37 - LRB100 18631 SMS 33856 b
as practical after completion of the audit, to the Governor,
the Mayor, the General Assembly, and the Commission on
Government Forecasting and Accountability.
Section 1-110. Deposit and withdrawal of funds.
(a) All funds deposited by the Authority in any bank or
savings and loan association shall be placed in the name of the
Authority and shall be withdrawn or paid out only by check or
draft upon the bank or savings and loan association, signed by
2 officers or employees designated by the Casino Board.
Notwithstanding any other provision of this Section, the Casino
Board may designate any of its members or any officer or
employee of the Authority to authorize the wire transfer of
funds deposited by the secretary-treasurer of funds in a bank
or savings and loan association for the payment of payroll and
employee benefits-related expenses.
No bank or savings and loan association shall receive
public funds as permitted by this Section unless it has
complied with the requirements established pursuant to Section
6 of the Public Funds Investment Act.
(b) If any officer or employee whose signature appears upon
any check or draft issued pursuant to this Act ceases (after
attaching his signature) to hold his or her office before the
delivery of such a check or draft to the payee, his or her
signature shall nevertheless be valid and sufficient for all
purposes with the same effect as if he or she had remained in

HB5146 - 38 - LRB100 18631 SMS 33856 b
office until delivery thereof.
Section 1-112. Contracts with the Authority or casino
operator licensee; disclosure requirements.
(a) A bidder, respondent, offeror, or contractor for
contracts with the Authority or casino operator licensee shall
disclose the identity of all officers and directors and every
owner, beneficiary, or person with beneficial interest of more
than 1% or shareholder entitled to receive more than 1% of the
total distributable income of any corporation having any
interest in the contract or in the bidder, respondent, offeror,
or contractor. The disclosure shall be in writing and attested
to by an owner, trustee, corporate official, or agent. If stock
in a corporation is publicly traded and there is no readily
known individual having greater than a 1% interest, then a
statement to that effect attested to by an officer or agent of
the corporation shall fulfill the disclosure statement
requirement of this Section. A bidder, respondent, offeror, or
contractor shall notify the Authority of any changes in
officers, directors, ownership, or individuals having a
beneficial interest of more than 1%. Notwithstanding the
provisions of this subsection (a), the Gaming Board may adopt
rules in connection with contractors for contracts with the
Authority or the casino operator licensee.
(b) A bidder, respondent, offeror, or contractor for
contracts with an annual value of $25,000 or more or for a

HB5146 - 39 - LRB100 18631 SMS 33856 b
period to exceed one year shall disclose all political
contributions of the bidder, respondent, offeror, or
contractor and any affiliated person or entity. Disclosure
shall include at least the names and addresses of the
contributors and the dollar amounts of any contributions to any
political committee made within the previous 2 years. The
disclosure must be submitted to the Gaming Board with a copy of
the contract. All such disclosures shall be posted on the
websites of the Authority and the Gaming Board.
(c) As used in this Section:
"Contribution" means contribution as defined in Section
9-1.4 of the Election Code.
"Affiliated person" means (i) any person with any ownership
interest or distributive share of the bidding, responding, or
contracting entity in excess of 1%, (ii) executive employees of
the bidding, responding, or contracting entity, and (iii) the
spouse, minor children, and parents of any such persons.
"Affiliated entity" means (i) any parent or subsidiary of
the bidding or contracting entity, (ii) any member of the same
unitary business group, or (iii) any political committee for
which the bidding, responding, or contracting entity is the
sponsoring entity.
(d) The Gaming Board may direct the Authority or a casino
operator licensee to void a contract if a violation of this
Section occurs. The Authority may direct a casino operator
licensee to void a contract if a violation of this Section

HB5146 - 40 - LRB100 18631 SMS 33856 b
occurs.
(e) All contracts pertaining to the actual operation of the
casino and related gaming activities shall be entered into by
the casino operator licensee and not the Authority and shall be
subject to the regulation, oversight, and approval of the
Gaming Board, applying the same regulation, oversight, and
approval requirements as would be applied to any other owners
licensee under the Illinois Gambling Act.
Section 1-115. Purchasing.
(a) The Casino Board shall designate an officer of the
Authority to serve as the Chief Procurement Officer for the
Authority. The Chief Procurement Officer shall have all powers
and duties set forth in Section 15 of Division 10 of Article 8
of the Illinois Municipal Code. Except as otherwise provided in
this Section, the Chief Procurement Officer of the Authority
shall conduct procurements on behalf of the Authority subject
to Title 2, Chapter 92 of the Municipal Code of Chicago, which
by its terms incorporates Division 10 of Article 8 of the
Illinois Municipal Code.
(b) All contracts for amounts greater than $25,000 must be
approved by the Casino Board and executed by the chairperson of
the Casino Board and executive director of the Authority.
Contracts for amounts of $25,000 or less may be approved and
executed by the Chief Procurement Officer for the Authority and
executive director of the Authority, with approval by the chief

HB5146 - 41 - LRB100 18631 SMS 33856 b
legal counsel for the Authority as to form and legality.
(c) All construction contracts and contracts for supplies,
materials, equipment, and services for amounts greater than
$25,000 shall be let by a competitive selection process to the
lowest responsible proposer, after advertising for proposals,
except for the following:
(1) when repair parts, accessories, equipment, or
services are required for equipment or services previously
furnished or contracted for;
(2) when services such as water, light, heat, power,
telephone (other than long-distance service), or telegraph
are required;
(3) casino management contracts, which shall be
awarded as set forth in Section 1-45 of this Act;
(4) contracts where there is only one economically
feasible source;
(5) when a purchase is needed on an immediate,
emergency basis because there exists a threat to public
health or public safety, or when immediate expenditure is
necessary for repairs to Authority property in order to
protect against further loss of or damage to Authority
property, to prevent or minimize serious disruption in
Authority services or to ensure the integrity of Authority
records;
(6) contracts for professional services other than for
management of the casino, except such contracts described

HB5146 - 42 - LRB100 18631 SMS 33856 b
in subsection (d) of this Section; and
(7) contracts for the use, purchase, delivery,
movement, or installation of (i) data processing
equipment, software, and services and (ii)
telecommunications equipment, software, and services.
(d) Contracts for professional services for a term of more
than one year or contracts that may require payment in excess
of $25,000 in one year shall be let by a competitive bidding
process to the most highly qualified firm that agrees to
compensation and other terms of engagement that are both
reasonable and acceptable to the Casino Board.
(e) All contracts involving less than $25,000 shall be let
by competitive selection process whenever possible, and in any
event in a manner calculated to ensure the best interests of
the public.
(f) In determining the responsibility of any proposer, the
Authority may take into account the proposer's (or an
individual having a beneficial interest, directly or
indirectly, of more than 1% in such proposing entity) past
record of dealings with the Authority, the proposer's
experience, adequacy of equipment, and ability to complete
performance within the time set, and other factors besides
financial responsibility. No such contract shall be awarded to
any proposer other than the lowest proposer (in case of
purchase or expenditure) unless authorized or approved by a
vote of at least 3 members of the Casino Board and such action

HB5146 - 43 - LRB100 18631 SMS 33856 b
is accompanied by a written statement setting forth the reasons
for not awarding the contract to the highest or lowest
proposer, as the case may be. The statement shall be kept on
file in the principal office of the Authority and open to
public inspection.
(g) The Authority shall have the right to reject all
proposals and to re-advertise for proposals. If after any such
re-advertisement, no responsible and satisfactory proposals,
within the terms of the re-advertisement, is received, the
Authority may award such contract without competitive
selection. The contract must not be less advantageous to the
Authority than any valid proposal received pursuant to
advertisement.
(h) Advertisements for proposals and re-proposals shall be
published at least once in a daily newspaper of general
circulation published in the City at least 10 calendar days
before the time for receiving proposals and in an online
bulletin published on the Authority's website. Such
advertisements shall state the time and place for receiving and
opening of proposals and, by reference to plans and
specifications on file at the time of the first publication or
in the advertisement itself, shall describe the character of
the proposed contract in sufficient detail to fully advise
prospective proposers of their obligations and to ensure free
and open competitive selection.
(i) All proposals in response to advertisements shall be

HB5146 - 44 - LRB100 18631 SMS 33856 b
sealed and shall be publicly opened by the Authority. All
proposers shall be entitled to be present in person or by
representatives. Cash or a certified or satisfactory cashier's
check, as a deposit of good faith, in a reasonable amount to be
fixed by the Authority before advertising for proposals, shall
be required with the proposal. A bond for faithful performance
of the contract with surety or sureties satisfactory to the
Authority and adequate insurance may be required in reasonable
amounts to be fixed by the Authority before advertising for
proposals.
(j) The contract shall be awarded as promptly as possible
after the opening of proposals. The proposal of the successful
proposer, as well as the bids of the unsuccessful proposers,
shall be placed on file and be open to public inspection
subject to the exemptions from disclosure provided under
Section 7 of the Freedom of Information Act. All proposals
shall be void if any disclosure of the terms of any proposals
in response to an advertisement is made or permitted to be made
by the Authority before the time fixed for opening proposals.
(k) Notice of each and every contract that is offered,
including renegotiated contracts and change orders, shall be
published in an online bulletin. The online bulletin must
include at least the date first offered, the date submission of
offers is due, the location that offers are to be submitted to,
a brief purchase description, the method of source selection,
information of how to obtain a comprehensive purchase

HB5146 - 45 - LRB100 18631 SMS 33856 b
description and any disclosure and contract forms, and
encouragement to prospective vendors to hire qualified
veterans, as defined by Section 45-67 of the Illinois
Procurement Code, and Illinois residents discharged from any
Illinois adult correctional center subject to Gaming Board
licensing and eligibility rules. Notice of each and every
contract that is let or awarded, including renegotiated
contracts and change orders, shall be published in the online
bulletin and must include at least all of the information
specified in this subsection (k), as well as the name of the
successful responsible proposer or offeror, the contract
price, and the number of unsuccessful responsive proposers and
any other disclosure specified in this Section. This notice
must be posted in the online electronic bulletin prior to
execution of the contract.
Section 1-130. Affirmative action and equal opportunity
obligations of Authority.
(a) The Authority is subject to the requirements of Article
IV of Chapter 2-92 (Sections 2-92-650 through 2-92-720
inclusive) of the Chicago Municipal Code, as now or hereafter
amended, renumbered, or succeeded, concerning a Minority-Owned
and Women-Owned Business Enterprise Procurement Program for
construction contracts, and Section 2-92-420 et seq. of the
Chicago Municipal Code, as now or hereafter amended,
renumbered, or succeeded, concerning a Minority-Owned and

HB5146 - 46 - LRB100 18631 SMS 33856 b
Women-Owned Business Enterprise Procurement Program.
(b) The Authority is authorized to enter into agreements
with contractors' associations, labor unions, and the
contractors working on the development of the casino to
establish an apprenticeship preparedness training program to
provide for an increase in the number of minority and female
journeymen and apprentices in the building trades and to enter
into agreements with community college districts or other
public or private institutions to provide readiness training.
The Authority is further authorized to enter into contracts
with public and private educational institutions and persons in
the gaming, entertainment, hospitality, and tourism industries
to provide training for employment in those industries.
Section 1-135. Transfer of interest. Neither the Authority
nor the City may sell, lease, rent, transfer, exchange, or
otherwise convey any interest that they have in the casino
without prior approval of the General Assembly.
Section 1-140. Home rule. The regulation and licensing of
casinos and casino gaming, casino gaming facilities, and casino
operator licensees under this Act are exclusive powers and
functions of the State. A home rule unit may not regulate or
license casinos, casino gaming, casino gaming facilities, or
casino operator licensees under this Act, except as provided
under this Act. This Section is a denial and limitation of home

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rule powers and functions under subsection (h) of Section 6 of
Article VII of the Illinois Constitution.
ARTICLE 90.
Section 90-1. Findings. The General Assembly makes all of
the following findings:
(1) That the cumulative reduction to pre-K through 12
education funding since 2009 is approximately
$861,000,000.
(2) That general state aid to Illinois common schools
has been underfunded as a result of budget cuts, resulting
in pro-rated payments to school districts that are less
than the foundational level of $6,119 per pupil, which
represents the minimum each pupil needs to be educated.
(3) That a significant infusion of new revenue is
necessary in order to fully fund the foundation level and
to maintain and support education in Illinois.
(4) That the decline of the Illinois horse racing and
breeding program, a $2.5 billion industry, would be
reversed if this amendatory Act of the 100th General
Assembly would be enacted.
(5) That the Illinois horse racing industry is on the
verge of extinction due to fierce competition from fully
developed horse racing and gaming operations in other
states.

HB5146 - 48 - LRB100 18631 SMS 33856 b
(6) That allowing the State's horse racing venues,
currently licensed gaming destinations, to maximize their
capacities with gaming machines, would generate up to $120
million to $200 million for the State in the form of extra
licensing fees, plus an additional $100 million to $300
million in recurring annual tax revenue for the State to
help ensure that school, road, and other building projects
promised under the capital plan occur on schedule.
(7) That Illinois agriculture and other businesses
that support and supply the horse racing industry, already
a sector that employs over 37,000 Illinoisans, also stand
to substantially benefit and would be much more likely to
create additional jobs should Illinois horse racing once
again become competitive with other states.
(8) That by keeping these projects on track, the State
can be sure that significant job and economic growth will
in fact result from the previously enacted legislation.
(9) That gaming machines at Illinois horse racing
tracks would create an estimated 1,200 to 1,500 permanent
jobs, and an estimated capital investment of up to $200
million to $400 million at these race tracks would prompt
additional trade organization jobs necessary to construct
new facilities or remodel race tracks to operate electronic
gaming.
Section 90-3. The State Officials and Employees Ethics Act

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is amended by changing Section 5-45 as follows:
(5 ILCS 430/5-45)
Sec. 5-45. Procurement; revolving door prohibition.
(a) No former officer, member, or State employee, or spouse
or immediate family member living with such person, shall,
within a period of one year immediately after termination of
State employment, knowingly accept employment or receive
compensation or fees for services from a person or entity if
the officer, member, or State employee, during the year
immediately preceding termination of State employment,
participated personally and substantially in the award of State
contracts, or the issuance of State contract change orders,
with a cumulative value of $25,000 or more to the person or
entity, or its parent or subsidiary.
(b) No former officer of the executive branch or State
employee of the executive branch with regulatory or licensing
authority, or spouse or immediate family member living with
such person, shall, within a period of one year immediately
after termination of State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the officer or State employee, during the
year immediately preceding termination of State employment,
participated personally and substantially in making a
regulatory or licensing decision that directly applied to the
person or entity, or its parent or subsidiary.

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(c) Within 6 months after the effective date of this
amendatory Act of the 96th General Assembly, each executive
branch constitutional officer and legislative leader, the
Auditor General, and the Joint Committee on Legislative Support
Services shall adopt a policy delineating which State positions
under his or her jurisdiction and control, by the nature of
their duties, may have the authority to participate personally
and substantially in the award of State contracts or in
regulatory or licensing decisions. The Governor shall adopt
such a policy for all State employees of the executive branch
not under the jurisdiction and control of any other executive
branch constitutional officer.
The policies required under subsection (c) of this Section
shall be filed with the appropriate ethics commission
established under this Act or, for the Auditor General, with
the Office of the Auditor General.
(d) Each Inspector General shall have the authority to
determine that additional State positions under his or her
jurisdiction, not otherwise subject to the policies required by
subsection (c) of this Section, are nonetheless subject to the
notification requirement of subsection (f) below due to their
involvement in the award of State contracts or in regulatory or
licensing decisions.
(e) The Joint Committee on Legislative Support Services,
the Auditor General, and each of the executive branch
constitutional officers and legislative leaders subject to

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subsection (c) of this Section shall provide written
notification to all employees in positions subject to the
policies required by subsection (c) or a determination made
under subsection (d): (1) upon hiring, promotion, or transfer
into the relevant position; and (2) at the time the employee's
duties are changed in such a way as to qualify that employee.
An employee receiving notification must certify in writing that
the person was advised of the prohibition and the requirement
to notify the appropriate Inspector General in subsection (f).
(f) Any State employee in a position subject to the
policies required by subsection (c) or to a determination under
subsection (d), but who does not fall within the prohibition of
subsection (h) below, who is offered non-State employment
during State employment or within a period of one year
immediately after termination of State employment shall, prior
to accepting such non-State employment, notify the appropriate
Inspector General. Within 10 calendar days after receiving
notification from an employee in a position subject to the
policies required by subsection (c), such Inspector General
shall make a determination as to whether the State employee is
restricted from accepting such employment by subsection (a) or
(b). In making a determination, in addition to any other
relevant information, an Inspector General shall assess the
effect of the prospective employment or relationship upon
decisions referred to in subsections (a) and (b), based on the
totality of the participation by the former officer, member, or

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State employee in those decisions. A determination by an
Inspector General must be in writing, signed and dated by the
Inspector General, and delivered to the subject of the
determination within 10 calendar days or the person is deemed
eligible for the employment opportunity. For purposes of this
subsection, "appropriate Inspector General" means (i) for
members and employees of the legislative branch, the
Legislative Inspector General; (ii) for the Auditor General and
employees of the Office of the Auditor General, the Inspector
General provided for in Section 30-5 of this Act; and (iii) for
executive branch officers and employees, the Inspector General
having jurisdiction over the officer or employee. Notice of any
determination of an Inspector General and of any such appeal
shall be given to the ultimate jurisdictional authority, the
Attorney General, and the Executive Ethics Commission.
(g) An Inspector General's determination regarding
restrictions under subsection (a) or (b) may be appealed to the
appropriate Ethics Commission by the person subject to the
decision or the Attorney General no later than the 10th
calendar day after the date of the determination.
On appeal, the Ethics Commission or Auditor General shall
seek, accept, and consider written public comments regarding a
determination. In deciding whether to uphold an Inspector
General's determination, the appropriate Ethics Commission or
Auditor General shall assess, in addition to any other relevant
information, the effect of the prospective employment or

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

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division, bureau, authority, or other administrative unit
within the government of this State;
(5) chief procurement officers, State purchasing
officers, and their designees whose duties are directly
related to State procurement; and
(6) chiefs of staff, deputy chiefs of staff, associate
chiefs of staff, assistant chiefs of staff, and deputy
governors; .
(7) employees of the Illinois Racing Board; and
(8) employees of the Illinois Gaming Board.
(i) For the purposes of this Section, with respect to
officers or employees of a regional transit board, as defined
in this Act, the phrase "person or entity" does not include:
(i) the United States government, (ii) the State, (iii)
municipalities, as defined under Article VII, Section 1 of the
Illinois Constitution, (iv) units of local government, as
defined under Article VII, Section 1 of the Illinois
Constitution, or (v) school districts.
(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
Section 90-5. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by changing Section 5-20 as follows:
(20 ILCS 301/5-20)
Sec. 5-20. Compulsive gambling program.
(a) Subject to appropriation, the Department shall

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establish a program for public education, research, and
training regarding problem and compulsive gambling and the
treatment and prevention of problem and compulsive gambling.
Subject to specific appropriation for these stated purposes,
the program must include all of the following:
(1) Establishment and maintenance of a toll-free "800"
telephone number to provide crisis counseling and referral
services to families experiencing difficulty as a result of
problem or compulsive gambling.
(2) Promotion of public awareness regarding the
recognition and prevention of problem and compulsive
gambling.
(3) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for problem and compulsive gamblers.
(4) Conducting studies to identify adults and
juveniles in this State who are, or who are at risk of
becoming, problem or compulsive gamblers.
(b) Subject to appropriation, the Department shall either
establish and maintain the program or contract with a private
or public entity for the establishment and maintenance of the
program. Subject to appropriation, either the Department or the
private or public entity shall implement the toll-free
telephone number, promote public awareness, and conduct
in-service training concerning problem and compulsive
gambling.

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(c) Subject to appropriation, the Department shall produce
and supply the signs specified in Section 10.7 of the Illinois
Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
of the Charitable Games Act, and Section 13.1 of the Illinois
Riverboat Gambling Act.
(Source: P.A. 89-374, eff. 1-1-96; 89-626, eff. 8-9-96.)
Section 90-6. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by adding Sections 605-530 and 605-535 as follows:
(20 ILCS 605/605-530 new)
Sec. 605-530. The Depressed Communities Economic
Development Board.
(a) The Depressed Communities Economic Development Board
is created as an advisory board within the Department of
Commerce and Economic Opportunity. The Board shall consist of
the following members:
(1) 3 members appointed by the Governor, one of whom
shall be appointed to serve an initial term of one year and
2 of whom shall be appointed to serve an initial term of 2
years;
(2) 2 members appointed by the Speaker of the House of
Representatives, one of whom shall be appointed to serve an
initial term of one year and one of whom shall be appointed

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to serve an initial term of 2 years;
(3) 2 members appointed by the President of the Senate,
one of whom shall be appointed to serve an initial term of
one year and one of whom shall be appointed to serve an
initial term of 2 years;
(4) 2 members appointed by the Minority Leader of the
House of Representatives, one of whom shall be appointed to
serve an initial term of one year and one of whom shall be
appointed to serve an initial term of 2 years; and
(5) 2 members appointed by the Minority Leader of the
Senate, one of whom shall be appointed to serve an initial
term of one year and one of whom shall be appointed to
serve an initial term of 2 years.
The members of the Board shall elect a member to serve as
chair of the Board. The members of the Board shall reflect the
composition of the Illinois population with regard to ethnic
and racial composition.
After the initial terms, each member shall be appointed to
serve a term of 2 years and until his or her successor has been
appointed and assumes office. If a vacancy occurs in the Board
membership, then the vacancy shall be filled in the same manner
as the initial appointment. No member of the Board shall, at
the time of his or her appointment or within 2 years before the
appointment, hold elected office or be appointed to a State
board, commission, or agency. All Board members are subject to
the State Officials and Employees Ethics Act.

HB5146 - 58 - LRB100 18631 SMS 33856 b
(b) Board members shall serve without compensation, but may
be reimbursed for their reasonable travel expenses from funds
available for that purpose. The Department of Commerce and
Economic Opportunity shall provide staff and administrative
support services to the Board.
(c) The Board must make recommendations, which must be
approved by a majority of the Board, to the Department of
Commerce and Economic Opportunity concerning the award of
grants from amounts appropriated to the Department from the
Depressed Communities Economic Development Fund, a special
fund created in the State treasury. The Department must make
grants to public or private entities submitting proposals to
the Board to revitalize an Illinois depressed community. Grants
may be used by these entities only for those purposes
conditioned with the grant. For the purposes of this subsection
(c), plans for revitalizing an Illinois depressed community
include plans intended to curb high levels of poverty,
unemployment, job and population loss, and general distress. An
Illinois depressed community is an area where the poverty rate,
as determined by using the most recent data released by the
United States Census Bureau, is at least 3% greater than the
State poverty rate as determined by using the most recent data
released by the United States Census Bureau.
(20 ILCS 605/605-535 new)
Sec. 605-535. The Commission on the Future of Economic

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Development of the Latino Community.
(a) There is hereby created the Commission on the Future of
Economic Development of the Latino Community within the
Department. The purpose of the Commission shall be to maintain
and develop the economy of Latinos and to provide opportunities
for this community, which will enhance and expand the quality
of their lives.
The Commission shall concentrate its major efforts on
strategic planning, policy research and analysis, advocacy,
evaluation, and promoting coordination and collaboration.
During each regular legislative session, the Commission
must consult with appropriate legislative committees about the
State's economic development needs and opportunities in the
Latino community.
By October 1st of each even-numbered year, the Commission
must submit to the Governor and the General Assembly a biennial
comprehensive statewide economic development strategy for the
Latino community with a report on progress from the previous
comprehensive strategy.
The comprehensive statewide economic development strategy
may include, but is not limited to:
(1) an assessment of the Latino community's economic
vitality;
(2) recommended goals, objectives, and priorities for
the next biennium and the future;
(3) a common set of outcomes and benchmarks for the

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economic development system as a whole for the Latino
community;
(4) recommendations for removing barriers for Latinos
in employment;
(5) an inventory of existing relevant programs
compiled by the Commission from materials submitted by
agencies;
(6) recommendations for expanding, discontinuing, or
redirecting existing programs or adding new programs to
better serve the Latino community; and
(7) recommendations of best practices and public and
private sector roles in implementing the comprehensive
statewide economic development strategy.
In developing the biennial statewide economic development
strategy, goals, objectives, priorities, and recommendations,
the Commission shall consult, collaborate, and coordinate with
relevant State agencies, private sector business, nonprofit
organizations involved in economic development, trade
associations, associate development organizations, and
relevant local organizations in order to avoid duplication of
effort.
State agencies shall cooperate with the Commission and
provide information as the Commission may reasonably request.
The Commission shall review and make budget
recommendations to the Governor's Office of Management and
Budget and the General Assembly in areas relating to the

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economic development in the State's Latino community.
The Commission shall evaluate its own performance on a
regular basis.
The Commission may accept gifts, grants, donations,
sponsorships, or contributions from any federal, State, or
local governmental agency or program, or any private source,
and expend the same for any purpose consistent with this
Section.
(b) The Commission shall consist of 12 voting members,
appointed by the Governor, 4 of whom shall be appointed to
serve an initial term of one year, 4 of whom shall be appointed
to serve an initial term of 2 years, and 4 of whom shall be
appointed to serve an initial term of 3 years. After the
initial term, each member shall be appointed to a term of 3
years. Members of the Commission shall serve at the pleasure of
the Governor for not more than 2 consecutive 3-year terms. In
appointing members, the Governor shall appoint individuals
from the following private industry sectors:
(1) production agriculture;
(2) at least 2 individuals from manufacturing, one of
whom shall represent a company with no more than 75
employees;
(3) transportation, construction, and logistics;
(4) travel and tourism;
(5) financial services and insurance;
(6) information technology and communications; and

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(7) biotechnology.
The members of the Commission shall choose a member to
serve as chair of the Commission. The members of the Commission
shall be representative, to the extent possible, of the various
geographic areas of the State. The Director shall serve as an
ad hoc nonvoting member of the Commission. Vacancies shall be
filled in the same manner as the original appointments. The
members of the Commission shall serve without compensation.
(c) The Commission shall meet at least 4 times per year,
with at least one meeting each calendar quarter, at the call of
the director or 4 voting members of the Commission. The staff
and support for the Commission shall be provided by the
Department.
(d) The Commission and Department are encouraged to involve
other essential groups in the work of the Commission,
including, but not limited to:
(1) public universities;
(2) community colleges;
(3) other educational institutions; and
(4) the Department of Labor.
(e) The Commission shall make recommendations, which must
be approved by a majority of the members of the Commission, to
the Department concerning the award of grants from amounts
appropriated to the Department from the Latino Community
Economic Development Fund, a special fund in the State
treasury. The Department shall make grants to public or private

HB5146 - 63 - LRB100 18631 SMS 33856 b
entities submitting proposals to the Commission to assist in
the economic development of the Latino community. Grants may be
used by these entities only for those purposes conditioned with
the grant. The Commission shall coordinate with the Department
to develop grant criteria.
(f) For the purposes of this Section:
"Department" means the Department of Commerce and Economic
Development.
"Director" means the Director of Commerce and Economic
Development.
"Educational institutions" means nonprofit public and
private colleges, community colleges, State colleges, and
universities in this State.
Section 90-8. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.

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(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on the
effective date of this amendatory Act of the 96th General
Assembly in connection with the selection of the private
manager. As part of its obligation to terminate these contracts
and select the private manager, the Department shall establish

HB5146 - 65 - LRB100 18631 SMS 33856 b
a mutually agreeable timetable to transfer the functions of
existing contractors to the private manager so that existing
Lottery operations are not materially diminished or impaired
during the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department shall
not renew such contract for a term extending beyond the
mutually agreed timetable for transfer of functions; or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on the effective date of this amendatory Act
of the 96th General Assembly are not subject to termination as
provided for in this subsection (c), then the Department may
include a provision in the contract with the private manager
specifying a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the

HB5146 - 66 - LRB100 18631 SMS 33856 b
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be State
employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager shall
include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any time;
(B) has ready access at any time to information
regarding Lottery operations;

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(C) has the right to demand and receive information
from the private manager concerning any aspect of the
Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any operating
decision that bears significantly on the public interest,
including, but not limited to, decisions on the kinds of
games to be offered to the public and decisions affecting
the relative risk and reward of the games being offered, so
the Department has a reasonable opportunity to evaluate and
countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.

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(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund except
as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to locate
its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under the
oversight of the Department, the private manager shall have
the following duties and obligations with respect to the
management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.

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(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action

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that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis, appropriate
financial statements in a form and manner acceptable to the
Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the
best overall value. The process shall not be subject to the
provisions of the Illinois Procurement Code, unless

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specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling its
obligations under the management agreement during the term
of the agreement.
(22) The disclosure of any information requested by the
Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a competitive
request for qualifications process consistent with Section
20-35 of the Illinois Procurement Code, which shall take into
account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;

HB5146 - 72 - LRB100 18631 SMS 33856 b
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of the
people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery on
behalf of Illinois, another State or foreign government and
attracting persons who are not currently regular players of
a lottery.
(f) The Department may retain the services of an advisor or
advisors with significant experience in financial services or
the management, operation, and procurement of goods, services,
and equipment for a government-run lottery to assist in the
preparation of the terms of the request for qualifications and
selection of the private manager. Any prospective advisor
seeking to provide services under this subsection (f) shall
disclose any material business or financial relationship
during the past 3 years with any potential offeror, or with a
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery. The Department shall evaluate the material business or
financial relationship of each prospective advisor. The
Department shall not select any prospective advisor with a

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substantial business or financial relationship that the
Department deems to impair the objectivity of the services to
be provided by the prospective advisor. During the course of
the advisor's engagement by the Department, and for a period of
one year thereafter, the advisor shall not enter into any
business or financial relationship with any offeror or any
vendor identified to assist an offeror in performing its
obligations under the management agreement. Any advisor
retained by the Department shall be disqualified from being an
offeror. The Department shall not include terms in the request
for qualifications that provide a material advantage whether
directly or indirectly to any potential offeror, or any
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery, including terms contained in previous responses to
requests for proposals or qualifications submitted to
Illinois, another State or foreign government when those terms
are uniquely associated with a particular potential offeror,
contractor, or subcontractor. The request for proposals
offered by the Department on December 22, 2008 as
"LOT08GAMESYS" and reference number "22016176" is declared
void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'

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proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the Department.
(h) At the public hearing, the Department shall (i) provide
sufficient time for each finalist to present and explain its
proposal to the Department and the Governor or the Governor's
designee, including an opportunity to respond to questions
posed by the Department, Governor, or designee and (ii) allow
the public and non-selected offerors to comment on the
presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin on
or before September 15, 2010. The Governor shall include in the
notice a detailed explanation and the reasons why the final

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offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department and
leased to the private manager shall be owned by the Department
in the name of the State and shall be considered to be public
property devoted to an essential public and governmental
function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct

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competition with the Lottery. The forms of gambling authorized
by this amendatory Act of the 100th General Assembly constitute
authorized forms of gambling that are not in direct competition
with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to determine
whether the private manager has complied with this Section and
the management agreement. The private manager shall bear the
cost of an investigation or reinvestigation of the private
manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department, agency,
or instrumentality of the State or any political subdivision is
required for the Department to enter into a management
agreement under this Section. This Section contains full and

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complete authority for the Department to approve any contracts
entered into by a private manager with a vendor providing
goods, services, or both goods and services to the private
manager under the terms of the management agreement, including
subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract to
the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but no
later than 5 business days after the request is received by the
Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement Officer
with reasonable advance written notice of any contract that is
pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if

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a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
21.9, the Department shall distribute all proceeds of lottery
tickets and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal

HB5146 - 79 - LRB100 18631 SMS 33856 b
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before the last day of each fiscal year,
deposit any remaining proceeds, subject to payments under
items (1), (2), and (3) into the Capital Projects Fund each
fiscal year.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that report
to the Governor and General Assembly.

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(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
Section 90-10. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-305 as follows:
(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
Sec. 2505-305. Investigators.
(a) The Department has the power to appoint investigators
to conduct all investigations, searches, seizures, arrests,
and other duties imposed under the provisions of any law
administered by the Department. Except as provided in
subsection (c), these investigators have and may exercise all
the powers of peace officers solely for the purpose of
enforcing taxing measures administered by the Department.
(b) The Director must authorize to each investigator
employed under this Section and to any other employee of the
Department exercising the powers of a peace officer a distinct
badge that, on its face, (i) clearly states that the badge is
authorized by the Department and (ii) contains a unique
identifying number. No other badge shall be authorized by the
Department.
(c) The Department may enter into agreements with the
Illinois Gaming Board providing that investigators appointed
under this Section shall exercise the peace officer powers set
forth in paragraph (20.6) of subsection (c) of Section 5 of the

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Illinois Riverboat Gambling Act.
(Source: P.A. 96-37, eff. 7-13-09.)
Section 90-12. The Illinois State Auditing Act is amended
by changing Section 3-1 as follows:
(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local government
agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit of
a State agency or of a program administered by a State
agency involving public funds of the State, but this
jurisdiction does not include any authority to review local
governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;
(b) to make investigations authorized by or under this
Act or the Constitution; and
(c) to make audits of the records of local government

HB5146 - 82 - LRB100 18631 SMS 33856 b
agencies to verify actual costs of state-mandated programs
when directed to do so by the Legislative Audit Commission
at the request of the State Board of Appeals under the
State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Regional Transportation Authority, the Suburban
Bus Division, the Commuter Rail Division and the Chicago
Transit Authority and any other subsidized carrier when
authorized by the Legislative Audit Commission. Such audit may
be a financial, management or program audit, or any combination
thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject to
the limitations of this Act, the Legislative Audit Commission
may by resolution specify additional determinations to be
included in the scope of the audit.
In addition to the foregoing, the Auditor General must also
conduct a financial audit of the Illinois Sports Facilities
Authority's expenditures of public funds in connection with the
reconstruction, renovation, remodeling, extension, or
improvement of all or substantially all of any existing
"facility", as that term is defined in the Illinois Sports
Facilities Authority Act.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any hospital

HB5146 - 83 - LRB100 18631 SMS 33856 b
which receives 10% or more of its gross revenues from payments
from the State of Illinois, Department of Healthcare and Family
Services (formerly Department of Public Aid), Medical
Assistance Program.
The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
As soon as practical after the effective date of this
amendatory Act of 1995, the Auditor General shall conduct a
compliance and management audit of the City of Chicago and any
other entity with regard to the operation of Chicago O'Hare
International Airport, Chicago Midway Airport and Merrill C.
Meigs Field. The audit shall include, but not be limited to, an
examination of revenues, expenses, and transfers of funds;
purchasing and contracting policies and practices; staffing
levels; and hiring practices and procedures. When completed,
the audit required by this paragraph shall be distributed in
accordance with Section 3-14.
The Auditor General shall conduct a financial and
compliance and program audit of distributions from the
Municipal Economic Development Fund during the immediately
preceding calendar year pursuant to Section 8-403.1 of the
Public Utilities Act at no cost to the city, village, or
incorporated town that received the distributions.
The Auditor General must conduct an audit of the Health
Facilities and Services Review Board pursuant to Section 19.5

HB5146 - 84 - LRB100 18631 SMS 33856 b
of the Illinois Health Facilities Planning Act.
The Auditor General must conduct an audit of the Chicago
Casino Development Authority pursuant to Section 1-60 of the
Chicago Casino Development Authority Act.
The Auditor General of the State of Illinois shall annually
conduct or cause to be conducted a financial and compliance
audit of the books and records of any county water commission
organized pursuant to the Water Commission Act of 1985 and
shall file a copy of the report of that audit with the Governor
and the Legislative Audit Commission. The filed audit shall be
open to the public for inspection. The cost of the audit shall
be charged to the county water commission in accordance with
Section 6z-27 of the State Finance Act. The county water
commission shall make available to the Auditor General its
books and records and any other documentation, whether in the
possession of its trustees or other parties, necessary to
conduct the audit required. These audit requirements apply only
through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic
Development Authority Act.
The Auditor General shall conduct a compliance audit in

HB5146 - 85 - LRB100 18631 SMS 33856 b
accordance with subsections (d) and (f) of Section 30 of the
Innovation Development and Economy Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
96-939, eff. 6-24-10.)
Section 90-15. The State Finance Act is amended by adding
Sections 5.886, 5.887, 5.888, and 6z-105 and by changing
Section 6z-45 as follows:
(30 ILCS 105/5.886 new)
Sec. 5.886. The Gaming Facilities Fee Revenue Fund.
(30 ILCS 105/5.887 new)
Sec. 5.887. The Depressed Communities Economic Development
Fund.
(30 ILCS 105/5.888 new)
Sec. 5.888. The Latino Community Economic Development
Fund.
(30 ILCS 105/6z-45)
Sec. 6z-45. The School Infrastructure Fund.
(a) The School Infrastructure Fund is created as a special
fund in the State Treasury.
In addition to any other deposits authorized by law,
beginning January 1, 2000, on the first day of each month, or

HB5146 - 86 - LRB100 18631 SMS 33856 b
as soon thereafter as may be practical, the State Treasurer and
State Comptroller shall transfer the sum of $5,000,000 from the
General Revenue Fund to the School Infrastructure Fund, except
that, notwithstanding any other provision of law, and in
addition to any other transfers that may be provided for by
law, before June 30, 2012, the Comptroller and the Treasurer
shall transfer $45,000,000 from the General Revenue Fund into
the School Infrastructure Fund, and, for fiscal year 2013 only,
the Treasurer and the Comptroller shall transfer $1,250,000
from the General Revenue Fund to the School Infrastructure Fund
on the first day of each month; provided, however, that no such
transfers shall be made from July 1, 2001 through June 30,
2003.
(a-5) Money in the School Infrastructure Fund may be used
to pay the expenses of the State Board of Education, the
Governor's Office of Management and Budget, and the Capital
Development Board in administering programs under the School
Construction Law, the total expenses not to exceed $1,315,000
in any fiscal year.
(b) Subject to the transfer provisions set forth below,
money in the School Infrastructure Fund shall, if and when the
State of Illinois incurs any bonded indebtedness for the
construction of school improvements under subsection (e) of
Section 5 of the General Obligation Bond Act, be set aside and
used for the purpose of paying and discharging annually the
principal and interest on that bonded indebtedness then due and

HB5146 - 87 - LRB100 18631 SMS 33856 b
payable, and for no other purpose.
In addition to other transfers to the General Obligation
Bond Retirement and Interest Fund made pursuant to Section 15
of the General Obligation Bond Act, upon each delivery of bonds
issued for construction of school improvements under the School
Construction Law, the State Comptroller shall compute and
certify to the State Treasurer the total amount of principal
of, interest on, and premium, if any, on such bonds during the
then current and each succeeding fiscal year. With respect to
the interest payable on variable rate bonds, such
certifications shall be calculated at the maximum rate of
interest that may be payable during the fiscal year, after
taking into account any credits permitted in the related
indenture or other instrument against the amount of such
interest required to be appropriated for that period.
On or before the last day of each month, the State
Treasurer and State Comptroller shall transfer from the School
Infrastructure Fund to the General Obligation Bond Retirement
and Interest Fund an amount sufficient to pay the aggregate of
the principal of, interest on, and premium, if any, on the
bonds payable on their next payment date, divided by the number
of monthly transfers occurring between the last previous
payment date (or the delivery date if no payment date has yet
occurred) and the next succeeding payment date. Interest
payable on variable rate bonds shall be calculated at the
maximum rate of interest that may be payable for the relevant

HB5146 - 88 - LRB100 18631 SMS 33856 b
period, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
(b-5) The money deposited into the School Infrastructure
Fund from transfers pursuant to subsections (c-30) and (c-35)
of Section 13 of the Illinois Riverboat Gambling Act shall be
applied, without further direction, as provided in subsection
(b-3) of Section 5-35 of the School Construction Law.
(c) The surplus, if any, in the School Infrastructure Fund
after payments made pursuant to subsections (a-5), (b), and
(b-5) of this Section shall, subject to appropriation, be used
as follows:
First - to make 3 payments to the School Technology
Revolving Loan Fund as follows:
Transfer of $30,000,000 in fiscal year 1999;
Transfer of $20,000,000 in fiscal year 2000; and
Transfer of $10,000,000 in fiscal year 2001.
Second - to pay any amounts due for grants for school
construction projects and debt service under the School
Construction Law.
Third - to pay any amounts due for grants for school

HB5146 - 89 - LRB100 18631 SMS 33856 b
maintenance projects under the School Construction Law.
(Source: P.A. 100-23, eff. 7-6-17.)
(30 ILCS 105/6z-105 new)
Sec. 6z-105. The Gaming Facilities Fee Revenue Fund.
(a) The Gaming Facilities Fee Revenue Fund is created as a
special fund in the State treasury.
(b) The revenues in the Fund shall be used, subject to
appropriation, by the Comptroller for the purpose of providing
appropriations to the Illinois Gaming Board for the
administration and enforcement of the Illinois Gambling Act and
the applicable provisions of the Chicago Casino Development
Authority Act, with any remaining amounts being transferred to
the General Revenue Fund.
(c) The Fund shall consist of fee revenues received
pursuant to subsection (a) of Section 1-45 of the Chicago
Casino Development Authority Act and pursuant to subsections
(e-10), (e-15), (h), and (h-5) of Section 7 and subsections
(b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling
Act. All interest earned on moneys in the Fund shall be
deposited into the Fund.
(d) The Fund shall not be subject to administrative charges
or chargebacks, including, but not limited to, those authorized
under subsection (h) of Section 8 of this Act.
Section 90-20. The Illinois Income Tax Act is amended by

HB5146 - 90 - LRB100 18631 SMS 33856 b
changing Sections 201, 303, 304 and 710 as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount equal
to 2 1/2% of the taxpayer's net income for the taxable
year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for

HB5146 - 91 - LRB100 18631 SMS 33856 b
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,

HB5146 - 92 - LRB100 18631 SMS 33856 b
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period prior
to July 1, 2017, as calculated under Section 202.5, and
(ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1, 1989,
as calculated under Section 202.3, and (ii) 4.8% of the
taxpayer's net income for the period after June 30, 1989,
as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after

HB5146 - 93 - LRB100 18631 SMS 33856 b
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1, 2017,
as calculated under Section 202.5, and (ii) 7% of the
taxpayer's net income for the period after June 30, 2017,

HB5146 - 94 - LRB100 18631 SMS 33856 b
as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of electronic gaming licensees. For each of
taxable years 2018 through 2026, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing Act
of 1975 and (ii) of an electronic gaming licensee under the
Illinois Gambling Act. The amount of the surcharge is equal to
the amount of federal income tax liability for the taxable year
attributable to those sales and exchanges. The surcharge
imposed shall not apply if:
(1) the electronic gaming license, organization
license, or race track property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of

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any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the electronic gaming
license, organization license, or race track property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized; or
(3) live horse racing was not conducted in 2011 under a
license issued pursuant to the Illinois Horse Racing Act of
1975.
The transfer of an electronic gaming license, organization
license, or race track property by a person other than the

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initial licensee to receive the electronic gaming license is
not subject to a surcharge. The Department shall adopt rules
necessary to implement and administer this subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an

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additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.

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(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such foreign
insurer under this Act for a taxable year, net of all
credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of the
Illinois Insurance Code, the fire insurance company
tax imposed by Section 12 of the Fire Investigation
Act, and the fire department taxes imposed under
Section 11-10-1 of the Illinois Municipal Code,
equals 1.25% for taxable years ending prior to December 31,
2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will in
no event increase the rates imposed under subsections (b)
and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates imposed
by subsection (b) and only after the tax imposed by
subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of

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Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service during
the taxable year, provided such property is placed in
service on or after July 1, 1984. There shall be allowed an
additional credit equal to .5% of the basis of qualified
property placed in service during the taxable year,
provided such property is placed in service on or after
July 1, 1986, and the taxpayer's base employment within
Illinois has increased by 1% or more over the preceding
year as determined by the taxpayer's employment records
filed with the Illinois Department of Employment Security.
Taxpayers who are new to Illinois shall be deemed to have
met the 1% growth in base employment for the first year in
which they file employment records with the Illinois
Department of Employment Security. The provisions added to
this Section by Public Act 85-1200 (and restored by Public
Act 87-895) shall be construed as declaratory of existing
law and not as a new enactment. If, in any year, the
increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit shall
be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is

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1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i) and
(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for

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the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability or
the liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land or
improvements to real property that are not a structural
component of a building such as landscaping, sewer
lines, local access roads, fencing, parking lots, and
other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;

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(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes of
this subsection (e) the term "mining" shall have the same
meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection (e),
the term "retailing" means the sale of tangible personal
property for use or consumption and not for resale, or
services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for

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taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in Illinois by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal Property
Tax Replacement Income Tax for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation and, (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (7), a reduction of the basis of

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qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on
its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction

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under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code. This paragraph is exempt from the provisions
of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in service
in an Enterprise Zone created pursuant to the Illinois
Enterprise Zone Act or, for property placed in service on
or after July 1, 2006, a River Edge Redevelopment Zone
established pursuant to the River Edge Redevelopment Zone
Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be

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determined in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. The credit
shall be .5% of the basis for such property. The credit
shall be available only in the taxable year in which the
property is placed in service in the Enterprise Zone or
River Edge Redevelopment Zone and shall not be allowed to
the extent that it would reduce a taxpayer's liability for
the tax imposed by subsections (a) and (b) of this Section
to below zero. For tax years ending on or after December
31, 1985, the credit shall be allowed for the tax year in
which the property is placed in service, or, if the amount
of the credit exceeds the tax liability for that year,
whether it exceeds the original liability or the liability
as later amended, such excess may be carried forward and
applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be
applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"

HB5146 - 107 - LRB100 18631 SMS 33856 b
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise Zone

HB5146 - 108 - LRB100 18631 SMS 33856 b
or River Edge Redevelopment Zone within 48 months after
being placed in service, the tax imposed under subsections
(a) and (b) of this Section for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (6), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more over
the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file employment
records with the Illinois Department of Employment
Security. If, in any year, the increase in base employment

HB5146 - 109 - LRB100 18631 SMS 33856 b
within Illinois over the preceding year is less than 1%,
the additional credit shall be limited to that percentage
times a fraction, the numerator of which is 0.5% and the
denominator of which is 1%, but shall not exceed 0.5%.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in the
taxable year in which such investments have been completed.

HB5146 - 110 - LRB100 18631 SMS 33856 b
The credit for additional investments beyond the minimum
investment by a designated high impact business authorized
under subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act shall be available only in the taxable
year in which the property is placed in service and shall
not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections (a)
and (b) of this Section to below zero. For tax years ending
on or after December 31, 1987, the credit shall be allowed
for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the

HB5146 - 111 - LRB100 18631 SMS 33856 b
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois by the taxpayer, the amount of
such increase shall be deemed property placed in service on
the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed under

HB5146 - 112 - LRB100 18631 SMS 33856 b
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such property
was originally allowed by eliminating such property from
such computation, and (ii) subtracting such recomputed
credit from the amount of credit previously allowed. For
the purposes of this paragraph (6), a reduction of the
basis of qualified property resulting from a
redetermination of the purchase price shall be deemed a
disposition of qualified property to the extent of such
reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under Section
18-183 of the Property Tax Code, the tax imposed under
subsections (a) and (b) of this Section shall be increased
for the taxable year in which the taxpayer relocated its
facility by an amount equal to the amount of credit
received by the taxpayer under this subsection (h).
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and

HB5146 - 113 - LRB100 18631 SMS 33856 b
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
If, during any taxable year ending on or after December 31,
1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax

HB5146 - 114 - LRB100 18631 SMS 33856 b
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such taxable
year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or semi-skilled
or skilled fields, which were deducted from gross income in the
computation of taxable income. The credit against the tax
imposed by subsections (a) and (b) shall be 1.6% of such
training expenses. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection (j) to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is

HB5146 - 115 - LRB100 18631 SMS 33856 b
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2022, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a) and
(b) of this Section for increasing research activities in this
State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal

HB5146 - 116 - LRB100 18631 SMS 33856 b
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused

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credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2022, including, but not
limited to, the period beginning on January 1, 2016 and ending
on the effective date of this amendatory Act of the 100th
General Assembly. All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and on
or before December 31, 2001, a taxpayer shall be allowed a
credit against the tax imposed by subsections (a) and (b)
of this Section for certain amounts paid for unreimbursed
eligible remediation costs, as specified in this
subsection. For purposes of this Section, "unreimbursed
eligible remediation costs" means costs approved by the
Illinois Environmental Protection Agency ("Agency") under

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Section 58.14 of the Environmental Protection Act that were
paid in performing environmental remediation at a site for
which a No Further Remediation Letter was issued by the
Agency and recorded under Section 58.10 of the
Environmental Protection Act. The credit must be claimed
for the taxable year in which Agency approval of the
eligible remediation costs is granted. The credit is not
available to any taxpayer if the taxpayer or any related
party caused or contributed to, in any material respect, a
release of regulated substances on, in, or under the site
that was identified and addressed by the remedial action
pursuant to the Site Remediation Program of the
Environmental Protection Act. After the Pollution Control
Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue Code
and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of being
a related taxpayer, as well as any of its partners. The
credit allowed against the tax imposed by subsections (a)

HB5146 - 119 - LRB100 18631 SMS 33856 b
and (b) shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site, except
that the $100,000 threshold shall not apply to any site
contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year with
a maximum total of $150,000 per site. For partners and
shareholders of subchapter S corporations, there shall be
allowed a credit under this subsection to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of

HB5146 - 120 - LRB100 18631 SMS 33856 b
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed (i) $500 for tax years
ending prior to December 31, 2017, and (ii) $750 for tax years
ending on or after December 31, 2017. In no event shall a

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credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to

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attend any particular public or nonpublic school to qualify for
the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31, 2006,
a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval of
the eligible remediation costs is granted. The credit is
not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or under
the site that was identified and addressed by the remedial

HB5146 - 123 - LRB100 18631 SMS 33856 b
action pursuant to the Site Remediation Program of the
Environmental Protection Act. Determinations as to credit
availability for purposes of this Section shall be made
consistent with rules adopted by the Pollution Control
Board pursuant to the Illinois Administrative Procedure
Act for the administration and enforcement of Section 58.9
of the Environmental Protection Act. For purposes of this
Section, "taxpayer" includes a person whose tax attributes
the taxpayer has succeeded to under Section 381 of the
Internal Revenue Code and "related party" includes the
persons disallowed a deduction for losses by paragraphs
(b), (c), and (f)(1) of Section 267 of the Internal Revenue
Code by virtue of being a related taxpayer, as well as any
of its partners. The credit allowed against the tax imposed
by subsections (a) and (b) shall be equal to 25% of the
unreimbursed eligible remediation costs in excess of
$100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under

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this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Pilot Program, a surcharge is imposed on
all taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Pilot Program Act. The amount of the surcharge
is equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:

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(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Pilot Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;

HB5146 - 126 - LRB100 18631 SMS 33856 b
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17.)
(35 ILCS 5/303) (from Ch. 120, par. 3-303)
Sec. 303. (a) In general. Any item of capital gain or loss,
and any item of income from rents or royalties from real or
tangible personal property, interest, dividends, and patent or
copyright royalties, and prizes awarded under the Illinois
Lottery Law, and, for taxable years ending on or after December
31, 2018, wagering and gambling winnings from Illinois sources
as set forth in subsection (e-1) of this Section, to the extent
such item constitutes nonbusiness income, together with any
item of deduction directly allocable thereto, shall be
allocated by any person other than a resident as provided in
this Section.
(b) Capital gains and losses.
(1) Real property. Capital gains and losses from sales
or exchanges of real property are allocable to this State
if the property is located in this State.

HB5146 - 127 - LRB100 18631 SMS 33856 b
(2) Tangible personal property. Capital gains and
losses from sales or exchanges of tangible personal
property are allocable to this State if, at the time of
such sale or exchange:
(A) The property had its situs in this State; or
(B) The taxpayer had its commercial domicile in
this State and was not taxable in the state in which
the property had its situs.
(3) Intangibles. Capital gains and losses from sales or
exchanges of intangible personal property are allocable to
this State if the taxpayer had its commercial domicile in
this State at the time of such sale or exchange.
(c) Rents and royalties.
(1) Real property. Rents and royalties from real
property are allocable to this State if the property is
located in this State.
(2) Tangible personal property. Rents and royalties
from tangible personal property are allocable to this
State:
(A) If and to the extent that the property is
utilized in this State; or
(B) In their entirety if, at the time such rents or
royalties were paid or accrued, the taxpayer had its
commercial domicile in this State and was not organized
under the laws of or taxable with respect to such rents
or royalties in the state in which the property was

HB5146 - 128 - LRB100 18631 SMS 33856 b
utilized. The extent of utilization of tangible
personal property in a state is determined by
multiplying the rents or royalties derived from such
property by a fraction, the numerator of which is the
number of days of physical location of the property in
the state during the rental or royalty period in the
taxable year and the denominator of which is the number
of days of physical location of the property everywhere
during all rental or royalty periods in the taxable
year. If the physical location of the property during
the rental or royalty period is unknown or
unascertainable by the taxpayer, tangible personal
property is utilized in the state in which the property
was located at the time the rental or royalty payer
obtained possession.
(d) Patent and copyright royalties.
(1) Allocation. Patent and copyright royalties are
allocable to this State:
(A) If and to the extent that the patent or
copyright is utilized by the payer in this State; or
(B) If and to the extent that the patent or
copyright is utilized by the payer in a state in which
the taxpayer is not taxable with respect to such
royalties and, at the time such royalties were paid or
accrued, the taxpayer had its commercial domicile in
this State.

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(2) Utilization.
(A) A patent is utilized in a state to the extent
that it is employed in production, fabrication,
manufacturing or other processing in the state or to
the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties
does not permit allocation to states or if the
accounting procedures do not reflect states of
utilization, the patent is utilized in this State if
the taxpayer has its commercial domicile in this State.
(B) A copyright is utilized in a state to the
extent that printing or other publication originates
in the state. If the basis of receipts from copyright
royalties does not permit allocation to states or if
the accounting procedures do not reflect states of
utilization, the copyright is utilized in this State if
the taxpayer has its commercial domicile in this State.
(e) Illinois lottery prizes. Prizes awarded under the
Illinois Lottery Law are allocable to this State. Payments
received in taxable years ending on or after December 31, 2013,
from the assignment of a prize under Section 13.1 of the
Illinois Lottery Law are allocable to this State.
(e-1) Wagering and gambling winnings. Payments received in
taxable years ending on or after December 31, 2018 of winnings
from pari-mutuel wagering conducted at a wagering facility
licensed under the Illinois Horse Racing Act of 1975 and from

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gambling games conducted on a riverboat or in a casino or
electronic gaming facility licensed under the Illinois
Gambling Act are allocable to this State.
(e-5) Unemployment benefits. Unemployment benefits paid by
the Illinois Department of Employment Security are allocable to
this State.
(f) Taxability in other state. For purposes of allocation
of income pursuant to this Section, a taxpayer is taxable in
another state if:
(1) In that state he is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for
the privilege of doing business, or a corporate stock tax;
or
(2) That state has jurisdiction to subject the taxpayer
to a net income tax regardless of whether, in fact, the
state does or does not.
(g) Cross references.
(1) For allocation of interest and dividends by persons
other than residents, see Section 301(c)(2).
(2) For allocation of nonbusiness income by residents,
see Section 301(a).
(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than residents.
(a) In general. The business income of a person other than

HB5146 - 131 - LRB100 18631 SMS 33856 b
a resident shall be allocated to this State if such person's
business income is derived solely from this State. If a person
other than a resident derives business income from this State
and one or more other states, then, for tax years ending on or
before December 30, 1998, and except as otherwise provided by
this Section, such person's business income shall be
apportioned to this State by multiplying the income by a
fraction, the numerator of which is the sum of the property
factor (if any), the payroll factor (if any) and 200% of the
sales factor (if any), and the denominator of which is 4
reduced by the number of factors other than the sales factor
which have a denominator of zero and by an additional 2 if the
sales factor has a denominator of zero. For tax years ending on
or after December 31, 1998, and except as otherwise provided by
this Section, persons other than residents who derive business
income from this State and one or more other states shall
compute their apportionment factor by weighting their
property, payroll, and sales factors as provided in subsection
(h) of this Section.
(1) Property factor.
(A) The property factor is a fraction, the numerator of
which is the average value of the person's real and
tangible personal property owned or rented and used in the
trade or business in this State during the taxable year and
the denominator of which is the average value of all the
person's real and tangible personal property owned or

HB5146 - 132 - LRB100 18631 SMS 33856 b
rented and used in the trade or business during the taxable
year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at 8
times the net annual rental rate. Net annual rental rate is
the annual rental rate paid by the person less any annual
rental rate received by the person from sub-rentals.
(C) The average value of property shall be determined
by averaging the values at the beginning and ending of the
taxable year but the Director may require the averaging of
monthly values during the taxable year if reasonably
required to reflect properly the average value of the
person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator of
which is the total amount paid in this State during the
taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed entirely
within this State;
(ii) The individual's service is performed both
within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or

HB5146 - 133 - LRB100 18631 SMS 33856 b
(iii) Some of the service is performed within this
State and either the base of operations, or if there is
no base of operations, the place from which the service
is directed or controlled is within this State, or the
base of operations or the place from which the service
is directed or controlled is not in any state in which
some part of the service is performed, but the
individual's residence is in this State.
(iv) Compensation paid to nonresident professional
athletes.
(a) General. The Illinois source income of a
nonresident individual who is a member of a
professional athletic team includes the portion of the
individual's total compensation for services performed
as a member of a professional athletic team during the
taxable year which the number of duty days spent within
this State performing services for the team in any
manner during the taxable year bears to the total
number of duty days spent both within and without this
State during the taxable year.
(b) Travel days. Travel days that do not involve
either a game, practice, team meeting, or other similar
team event are not considered duty days spent in this
State. However, such travel days are considered in the
total duty days spent both within and without this
State.

HB5146 - 134 - LRB100 18631 SMS 33856 b
(c) Definitions. For purposes of this subpart
(iv):
(1) The term "professional athletic team"
includes, but is not limited to, any professional
baseball, basketball, football, soccer, or hockey
team.
(2) The term "member of a professional
athletic team" includes those employees who are
active players, players on the disabled list, and
any other persons required to travel and who travel
with and perform services on behalf of a
professional athletic team on a regular basis.
This includes, but is not limited to, coaches,
managers, and trainers.
(3) Except as provided in items (C) and (D) of
this subpart (3), the term "duty days" means all
days during the taxable year from the beginning of
the professional athletic team's official
pre-season training period through the last game
in which the team competes or is scheduled to
compete. Duty days shall be counted for the year in
which they occur, including where a team's
official pre-season training period through the
last game in which the team competes or is
scheduled to compete, occurs during more than one
tax year.

HB5146 - 135 - LRB100 18631 SMS 33856 b
(A) Duty days shall also include days on
which a member of a professional athletic team
performs service for a team on a date that does
not fall within the foregoing period (e.g.,
participation in instructional leagues, the
"All Star Game", or promotional "caravans").
Performing a service for a professional
athletic team includes conducting training and
rehabilitation activities, when such
activities are conducted at team facilities.
(B) Also included in duty days are game
days, practice days, days spent at team
meetings, promotional caravans, preseason
training camps, and days served with the team
through all post-season games in which the team
competes or is scheduled to compete.
(C) Duty days for any person who joins a
team during the period from the beginning of
the professional athletic team's official
pre-season training period through the last
game in which the team competes, or is
scheduled to compete, shall begin on the day
that person joins the team. Conversely, duty
days for any person who leaves a team during
this period shall end on the day that person
leaves the team. Where a person switches teams

HB5146 - 136 - LRB100 18631 SMS 33856 b
during a taxable year, a separate duty-day
calculation shall be made for the period the
person was with each team.
(D) Days for which a member of a
professional athletic team is not compensated
and is not performing services for the team in
any manner, including days when such member of
a professional athletic team has been
suspended without pay and prohibited from
performing any services for the team, shall not
be treated as duty days.
(E) Days for which a member of a
professional athletic team is on the disabled
list and does not conduct rehabilitation
activities at facilities of the team, and is
not otherwise performing services for the team
in Illinois, shall not be considered duty days
spent in this State. All days on the disabled
list, however, are considered to be included in
total duty days spent both within and without
this State.
(4) The term "total compensation for services
performed as a member of a professional athletic
team" means the total compensation received during
the taxable year for services performed:
(A) from the beginning of the official

HB5146 - 137 - LRB100 18631 SMS 33856 b
pre-season training period through the last
game in which the team competes or is scheduled
to compete during that taxable year; and
(B) during the taxable year on a date which
does not fall within the foregoing period
(e.g., participation in instructional leagues,
the "All Star Game", or promotional caravans).
This compensation shall include, but is not
limited to, salaries, wages, bonuses as described
in this subpart, and any other type of compensation
paid during the taxable year to a member of a
professional athletic team for services performed
in that year. This compensation does not include
strike benefits, severance pay, termination pay,
contract or option year buy-out payments,
expansion or relocation payments, or any other
payments not related to services performed for the
team.
For purposes of this subparagraph, "bonuses"
included in "total compensation for services
performed as a member of a professional athletic
team" subject to the allocation described in
Section 302(c)(1) are: bonuses earned as a result
of play (i.e., performance bonuses) during the
season, including bonuses paid for championship,
playoff or "bowl" games played by a team, or for

HB5146 - 138 - LRB100 18631 SMS 33856 b
selection to all-star league or other honorary
positions; and bonuses paid for signing a
contract, unless the payment of the signing bonus
is not conditional upon the signee playing any
games for the team or performing any subsequent
services for the team or even making the team, the
signing bonus is payable separately from the
salary and any other compensation, and the signing
bonus is nonrefundable.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator of
which is the total sales of the person in this State during
the taxable year, and the denominator of which is the total
sales of the person everywhere during the taxable year.
(B) Sales of tangible personal property are in this
State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point or
other conditions of the sale; or
(ii) The property is shipped from an office, store,
warehouse, factory or other place of storage in this
State and either the purchaser is the United States
government or the person is not taxable in the state of
the purchaser; provided, however, that premises owned
or leased by a person who has independently contracted

HB5146 - 139 - LRB100 18631 SMS 33856 b
with the seller for the printing of newspapers,
periodicals or books shall not be deemed to be an
office, store, warehouse, factory or other place of
storage for purposes of this Section. Sales of tangible
personal property are not in this State if the seller
and purchaser would be members of the same unitary
business group but for the fact that either the seller
or purchaser is a person with 80% or more of total
business activity outside of the United States and the
property is purchased for resale.
(B-1) Patents, copyrights, trademarks, and similar
items of intangible personal property.
(i) Gross receipts from the licensing, sale, or
other disposition of a patent, copyright, trademark,
or similar item of intangible personal property, other
than gross receipts governed by paragraph (B-7) of this
item (3), are in this State to the extent the item is
utilized in this State during the year the gross
receipts are included in gross income.
(ii) Place of utilization.
(I) A patent is utilized in a state to the
extent that it is employed in production,
fabrication, manufacturing, or other processing in
the state or to the extent that a patented product
is produced in the state. If a patent is utilized
in more than one state, the extent to which it is

HB5146 - 140 - LRB100 18631 SMS 33856 b
utilized in any one state shall be a fraction equal
to the gross receipts of the licensee or purchaser
from sales or leases of items produced,
fabricated, manufactured, or processed within that
state using the patent and of patented items
produced within that state, divided by the total of
such gross receipts for all states in which the
patent is utilized.
(II) A copyright is utilized in a state to the
extent that printing or other publication
originates in the state. If a copyright is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction equal
to the gross receipts from sales or licenses of
materials printed or published in that state
divided by the total of such gross receipts for all
states in which the copyright is utilized.
(III) Trademarks and other items of intangible
personal property governed by this paragraph (B-1)
are utilized in the state in which the commercial
domicile of the licensee or purchaser is located.
(iii) If the state of utilization of an item of
property governed by this paragraph (B-1) cannot be
determined from the taxpayer's books and records or
from the books and records of any person related to the
taxpayer within the meaning of Section 267(b) of the

HB5146 - 141 - LRB100 18631 SMS 33856 b
Internal Revenue Code, 26 U.S.C. 267, the gross
receipts attributable to that item shall be excluded
from both the numerator and the denominator of the
sales factor.
(B-2) Gross receipts from the license, sale, or other
disposition of patents, copyrights, trademarks, and
similar items of intangible personal property, other than
gross receipts governed by paragraph (B-7) of this item
(3), may be included in the numerator or denominator of the
sales factor only if gross receipts from licenses, sales,
or other disposition of such items comprise more than 50%
of the taxpayer's total gross receipts included in gross
income during the tax year and during each of the 2
immediately preceding tax years; provided that, when a
taxpayer is a member of a unitary business group, such
determination shall be made on the basis of the gross
receipts of the entire unitary business group.
(B-5) For taxable years ending on or after December 31,
2008, except as provided in subsections (ii) through (vii),
receipts from the sale of telecommunications service or
mobile telecommunications service are in this State if the
customer's service address is in this State.
(i) For purposes of this subparagraph (B-5), the
following terms have the following meanings:
"Ancillary services" means services that are
associated with or incidental to the provision of

HB5146 - 142 - LRB100 18631 SMS 33856 b
"telecommunications services", including but not
limited to "detailed telecommunications billing",
"directory assistance", "vertical service", and "voice
mail services".
"Air-to-Ground Radiotelephone service" means a
radio service, as that term is defined in 47 CFR 22.99,
in which common carriers are authorized to offer and
provide radio telecommunications service for hire to
subscribers in aircraft.
"Call-by-call Basis" means any method of charging
for telecommunications services where the price is
measured by individual calls.
"Communications Channel" means a physical or
virtual path of communications over which signals are
transmitted between or among customer channel
termination points.
"Conference bridging service" means an "ancillary
service" that links two or more participants of an
audio or video conference call and may include the
provision of a telephone number. "Conference bridging
service" does not include the "telecommunications
services" used to reach the conference bridge.
"Customer Channel Termination Point" means the
location where the customer either inputs or receives
the communications.
"Detailed telecommunications billing service"

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means an "ancillary service" of separately stating
information pertaining to individual calls on a
customer's billing statement.
"Directory assistance" means an "ancillary
service" of providing telephone number information,
and/or address information.
"Home service provider" means the facilities based
carrier or reseller with which the customer contracts
for the provision of mobile telecommunications
services.
"Mobile telecommunications service" means
commercial mobile radio service, as defined in Section
20.3 of Title 47 of the Code of Federal Regulations as
in effect on June 1, 1999.
"Place of primary use" means the street address
representative of where the customer's use of the
telecommunications service primarily occurs, which
must be the residential street address or the primary
business street address of the customer. In the case of
mobile telecommunications services, "place of primary
use" must be within the licensed service area of the
home service provider.
"Post-paid telecommunication service" means the
telecommunications service obtained by making a
payment on a call-by-call basis either through the use
of a credit card or payment mechanism such as a bank

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card, travel card, credit card, or debit card, or by
charge made to a telephone number which is not
associated with the origination or termination of the
telecommunications service. A post-paid calling
service includes telecommunications service, except a
prepaid wireless calling service, that would be a
prepaid calling service except it is not exclusively a
telecommunication service.
"Prepaid telecommunication service" means the
right to access exclusively telecommunications
services, which must be paid for in advance and which
enables the origination of calls using an access number
or authorization code, whether manually or
electronically dialed, and that is sold in
predetermined units or dollars of which the number
declines with use in a known amount.
"Prepaid Mobile telecommunication service" means a
telecommunications service that provides the right to
utilize mobile wireless service as well as other
non-telecommunication services, including but not
limited to ancillary services, which must be paid for
in advance that is sold in predetermined units or
dollars of which the number declines with use in a
known amount.
"Private communication service" means a
telecommunication service that entitles the customer

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to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
other associated services that are provided in
connection with the use of such channel or channels.
"Service address" means:
(a) The location of the telecommunications
equipment to which a customer's call is charged and
from which the call originates or terminates,
regardless of where the call is billed or paid;
(b) If the location in line (a) is not known,
service address means the origination point of the
signal of the telecommunications services first
identified by either the seller's
telecommunications system or in information
received by the seller from its service provider
where the system used to transport such signals is
not that of the seller; and
(c) If the locations in line (a) and line (b)
are not known, the service address means the
location of the customer's place of primary use.
"Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data,
audio, video, or any other information or signals to a

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point, or between or among points. The term
"telecommunications service" includes such
transmission, conveyance, or routing in which computer
processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service is referred to as voice over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications service" does not include:
(a) Data processing and information services
that allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser when such
purchaser's primary purpose for the underlying
transaction is the processed data or information;
(b) Installation or maintenance of wiring or
equipment on a customer's premises;
(c) Tangible personal property;
(d) Advertising, including but not limited to
directory advertising;
(e) Billing and collection services provided
to third parties;
(f) Internet access service;
(g) Radio and television audio and video
programming services, regardless of the medium,

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including the furnishing of transmission,
conveyance and routing of such services by the
programming service provider. Radio and television
audio and video programming services shall include
but not be limited to cable service as defined in
47 USC 522(6) and audio and video programming
services delivered by commercial mobile radio
service providers, as defined in 47 CFR 20.3;
(h) "Ancillary services"; or
(i) Digital products "delivered
electronically", including but not limited to
software, music, video, reading materials or ring
tones.
"Vertical service" means an "ancillary service"
that is offered in connection with one or more
"telecommunications services", which offers advanced
calling features that allow customers to identify
callers and to manage multiple calls and call
connections, including "conference bridging services".
"Voice mail service" means an "ancillary service"
that enables the customer to store, send or receive
recorded messages. "Voice mail service" does not
include any "vertical services" that the customer may
be required to have in order to utilize the "voice mail
service".
(ii) Receipts from the sale of telecommunications

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service sold on an individual call-by-call basis are in
this State if either of the following applies:
(a) The call both originates and terminates in
this State.
(b) The call either originates or terminates
in this State and the service address is located in
this State.
(iii) Receipts from the sale of postpaid
telecommunications service at retail are in this State
if the origination point of the telecommunication
signal, as first identified by the service provider's
telecommunication system or as identified by
information received by the seller from its service
provider if the system used to transport
telecommunication signals is not the seller's, is
located in this State.
(iv) Receipts from the sale of prepaid
telecommunications service or prepaid mobile
telecommunications service at retail are in this State
if the purchaser obtains the prepaid card or similar
means of conveyance at a location in this State.
Receipts from recharging a prepaid telecommunications
service or mobile telecommunications service is in
this State if the purchaser's billing information
indicates a location in this State.
(v) Receipts from the sale of private

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communication services are in this State as follows:
(a) 100% of receipts from charges imposed at
each channel termination point in this State.
(b) 100% of receipts from charges for the total
channel mileage between each channel termination
point in this State.
(c) 50% of the total receipts from charges for
service segments when those segments are between 2
customer channel termination points, 1 of which is
located in this State and the other is located
outside of this State, which segments are
separately charged.
(d) The receipts from charges for service
segments with a channel termination point located
in this State and in two or more other states, and
which segments are not separately billed, are in
this State based on a percentage determined by
dividing the number of customer channel
termination points in this State by the total
number of customer channel termination points.
(vi) Receipts from charges for ancillary services
for telecommunications service sold to customers at
retail are in this State if the customer's primary
place of use of telecommunications services associated
with those ancillary services is in this State. If the
seller of those ancillary services cannot determine

HB5146 - 150 - LRB100 18631 SMS 33856 b
where the associated telecommunications are located,
then the ancillary services shall be based on the
location of the purchaser.
(vii) Receipts to access a carrier's network or
from the sale of telecommunication services or
ancillary services for resale are in this State as
follows:
(a) 100% of the receipts from access fees
attributable to intrastate telecommunications
service that both originates and terminates in
this State.
(b) 50% of the receipts from access fees
attributable to interstate telecommunications
service if the interstate call either originates
or terminates in this State.
(c) 100% of the receipts from interstate end
user access line charges, if the customer's
service address is in this State. As used in this
subdivision, "interstate end user access line
charges" includes, but is not limited to, the
surcharge approved by the federal communications
commission and levied pursuant to 47 CFR 69.
(d) Gross receipts from sales of
telecommunication services or from ancillary
services for telecommunications services sold to
other telecommunication service providers for

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resale shall be sourced to this State using the
apportionment concepts used for non-resale
receipts of telecommunications services if the
information is readily available to make that
determination. If the information is not readily
available, then the taxpayer may use any other
reasonable and consistent method.
(B-7) For taxable years ending on or after December 31,
2008, receipts from the sale of broadcasting services are
in this State if the broadcasting services are received in
this State. For purposes of this paragraph (B-7), the
following terms have the following meanings:
"Advertising revenue" means consideration received
by the taxpayer in exchange for broadcasting services
or allowing the broadcasting of commercials or
announcements in connection with the broadcasting of
film or radio programming, from sponsorships of the
programming, or from product placements in the
programming.
"Audience factor" means the ratio that the
audience or subscribers located in this State of a
station, a network, or a cable system bears to the
total audience or total subscribers for that station,
network, or cable system. The audience factor for film
or radio programming shall be determined by reference
to the books and records of the taxpayer or by

HB5146 - 152 - LRB100 18631 SMS 33856 b
reference to published rating statistics provided the
method used by the taxpayer is consistently used from
year to year for this purpose and fairly represents the
taxpayer's activity in this State.
"Broadcast" or "broadcasting" or "broadcasting
services" means the transmission or provision of film
or radio programming, whether through the public
airwaves, by cable, by direct or indirect satellite
transmission, or by any other means of communication,
either through a station, a network, or a cable system.
"Film" or "film programming" means the broadcast
on television of any and all performances, events, or
productions, including but not limited to news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of video tape, disc, or any
other type of format or medium. Each episode of a
series of films produced for television shall
constitute separate "film" notwithstanding that the
series relates to the same principal subject and is
produced during one or more tax periods.
"Radio" or "radio programming" means the broadcast
on radio of any and all performances, events, or
productions, including but not limited to news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either

HB5146 - 153 - LRB100 18631 SMS 33856 b
live or through the use of an audio tape, disc, or any
other format or medium. Each episode in a series of
radio programming produced for radio broadcast shall
constitute a separate "radio programming"
notwithstanding that the series relates to the same
principal subject and is produced during one or more
tax periods.
(i) In the case of advertising revenue from
broadcasting, the customer is the advertiser and
the service is received in this State if the
commercial domicile of the advertiser is in this
State.
(ii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
received from the recipient of the broadcast, the
portion of the service that is received in this
State is measured by the portion of the recipients
of the broadcast located in this State.
Accordingly, the fee or other remuneration for
such service that is included in the Illinois
numerator of the sales factor is the total of those
fees or other remuneration received from
recipients in Illinois. For purposes of this
paragraph, a taxpayer may determine the location
of the recipients of its broadcast using the

HB5146 - 154 - LRB100 18631 SMS 33856 b
address of the recipient shown in its contracts
with the recipient or using the billing address of
the recipient in the taxpayer's records.
(iii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
from the person providing the programming, the
portion of the broadcast service that is received
by such station, network, or cable system in this
State is measured by the portion of recipients of
the broadcast located in this State. Accordingly,
the amount of revenue related to such an
arrangement that is included in the Illinois
numerator of the sales factor is the total fee or
other total remuneration from the person providing
the programming related to that broadcast
multiplied by the Illinois audience factor for
that broadcast.
(iv) In the case where film or radio
programming is provided by a taxpayer that is a
network or station to a customer for broadcast in
exchange for a fee or other remuneration from that
customer the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.

HB5146 - 155 - LRB100 18631 SMS 33856 b
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(v) In the case where film or radio programming
is provided by a taxpayer that is not a network or
station to another person for broadcasting in
exchange for a fee or other remuneration from that
person, the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(B-8) Gross receipts from winnings under the Illinois
Lottery Law from the assignment of a prize under Section
13.1 of the Illinois Lottery Law are received in this
State. This paragraph (B-8) applies only to taxable years
ending on or after December 31, 2013.
(B-9) For taxable years ending on or after December 31,
2018, gross receipts from winnings from pari-mutuel
wagering conducted at a wagering facility licensed under

HB5146 - 156 - LRB100 18631 SMS 33856 b
the Illinois Horse Racing Act of 1975 or from winnings from
gambling games conducted on a riverboat or in a casino or
electronic gaming facility licensed under the Illinois
Gambling Act are in this State.
(C) For taxable years ending before December 31, 2008,
sales, other than sales governed by paragraphs (B), (B-1),
(B-2), and (B-8) are in this State if:
(i) The income-producing activity is performed in
this State; or
(ii) The income-producing activity is performed
both within and without this State and a greater
proportion of the income-producing activity is
performed within this State than without this State,
based on performance costs.
(C-5) For taxable years ending on or after December 31,
2008, sales, other than sales governed by paragraphs (B),
(B-1), (B-2), (B-5), and (B-7), are in this State if any of
the following criteria are met:
(i) Sales from the sale or lease of real property
are in this State if the property is located in this
State.
(ii) Sales from the lease or rental of tangible
personal property are in this State if the property is
located in this State during the rental period. Sales
from the lease or rental of tangible personal property
that is characteristically moving property, including,

HB5146 - 157 - LRB100 18631 SMS 33856 b
but not limited to, motor vehicles, rolling stock,
aircraft, vessels, or mobile equipment are in this
State to the extent that the property is used in this
State.
(iii) In the case of interest, net gains (but not
less than zero) and other items of income from
intangible personal property, the sale is in this State
if:
(a) in the case of a taxpayer who is a dealer
in the item of intangible personal property within
the meaning of Section 475 of the Internal Revenue
Code, the income or gain is received from a
customer in this State. For purposes of this
subparagraph, a customer is in this State if the
customer is an individual, trust or estate who is a
resident of this State and, for all other
customers, if the customer's commercial domicile
is in this State. Unless the dealer has actual
knowledge of the residence or commercial domicile
of a customer during a taxable year, the customer
shall be deemed to be a customer in this State if
the billing address of the customer, as shown in
the records of the dealer, is in this State; or
(b) in all other cases, if the
income-producing activity of the taxpayer is
performed in this State or, if the

HB5146 - 158 - LRB100 18631 SMS 33856 b
income-producing activity of the taxpayer is
performed both within and without this State, if a
greater proportion of the income-producing
activity of the taxpayer is performed within this
State than in any other state, based on performance
costs.
(iv) Sales of services are in this State if the
services are received in this State. For the purposes
of this section, gross receipts from the performance of
services provided to a corporation, partnership, or
trust may only be attributed to a state where that
corporation, partnership, or trust has a fixed place of
business. If the state where the services are received
is not readily determinable or is a state where the
corporation, partnership, or trust receiving the
service does not have a fixed place of business, the
services shall be deemed to be received at the location
of the office of the customer from which the services
were ordered in the regular course of the customer's
trade or business. If the ordering office cannot be
determined, the services shall be deemed to be received
at the office of the customer to which the services are
billed. If the taxpayer is not taxable in the state in
which the services are received, the sale must be
excluded from both the numerator and the denominator of
the sales factor. The Department shall adopt rules

HB5146 - 159 - LRB100 18631 SMS 33856 b
prescribing where specific types of service are
received, including, but not limited to, publishing,
and utility service.
(D) For taxable years ending on or after December 31,
1995, the following items of income shall not be included
in the numerator or denominator of the sales factor:
dividends; amounts included under Section 78 of the
Internal Revenue Code; and Subpart F income as defined in
Section 952 of the Internal Revenue Code. No inference
shall be drawn from the enactment of this paragraph (D) in
construing this Section for taxable years ending before
December 31, 1995.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years
ending on or after December 31, 1999, provided that a
taxpayer may elect to apply the provisions of these
paragraphs to prior tax years. Such election shall be made
in the form and manner prescribed by the Department, shall
be irrevocable, and shall apply to all tax years; provided
that, if a taxpayer's Illinois income tax liability for any
tax year, as assessed under Section 903 prior to January 1,
1999, was computed in a manner contrary to the provisions
of paragraphs (B-1) or (B-2), no refund shall be payable to
the taxpayer for that tax year to the extent such refund is
the result of applying the provisions of paragraph (B-1) or
(B-2) retroactively. In the case of a unitary business
group, such election shall apply to all members of such

HB5146 - 160 - LRB100 18631 SMS 33856 b
group for every tax year such group is in existence, but
shall not apply to any taxpayer for any period during which
that taxpayer is not a member of such group.
(b) Insurance companies.
(1) In general. Except as otherwise provided by
paragraph (2), business income of an insurance company for
a taxable year shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the direct premiums written for insurance upon
property or risk in this State, and the denominator of
which is the direct premiums written for insurance upon
property or risk everywhere. For purposes of this
subsection, the term "direct premiums written" means the
total amount of direct premiums written, assessments and
annuity considerations as reported for the taxable year on
the annual statement filed by the company with the Illinois
Director of Insurance in the form approved by the National
Convention of Insurance Commissioners or such other form as
may be prescribed in lieu thereof.
(2) Reinsurance. If the principal source of premiums
written by an insurance company consists of premiums for
reinsurance accepted by it, the business income of such
company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the
sum of (i) direct premiums written for insurance upon
property or risk in this State, plus (ii) premiums written

HB5146 - 161 - LRB100 18631 SMS 33856 b
for reinsurance accepted in respect of property or risk in
this State, and the denominator of which is the sum of
(iii) direct premiums written for insurance upon property
or risk everywhere, plus (iv) premiums written for
reinsurance accepted in respect of property or risk
everywhere. For purposes of this paragraph, premiums
written for reinsurance accepted in respect of property or
risk in this State, whether or not otherwise determinable,
may, at the election of the company, be determined on the
basis of the proportion which premiums written for
reinsurance accepted from companies commercially domiciled
in Illinois bears to premiums written for reinsurance
accepted from all sources, or, alternatively, in the
proportion which the sum of the direct premiums written for
insurance upon property or risk in this State by each
ceding company from which reinsurance is accepted bears to
the sum of the total direct premiums written by each such
ceding company for the taxable year. The election made by a
company under this paragraph for its first taxable year
ending on or after December 31, 2011, shall be binding for
that company for that taxable year and for all subsequent
taxable years, and may be altered only with the written
permission of the Department, which shall not be
unreasonably withheld.
(c) Financial organizations.
(1) In general. For taxable years ending before

HB5146 - 162 - LRB100 18631 SMS 33856 b
December 31, 2008, business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is its business income from sources within this
State, and the denominator of which is its business income
from all sources. For the purposes of this subsection, the
business income of a financial organization from sources
within this State is the sum of the amounts referred to in
subparagraphs (A) through (E) following, but excluding the
adjusted income of an international banking facility as
determined in paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the
operation as a financial organization within this
State. In computing the amounts referred to in
paragraphs (A) through (E) of this subsection, any
amount received by a member of an affiliated group

HB5146 - 163 - LRB100 18631 SMS 33856 b
(determined under Section 1504(a) of the Internal
Revenue Code but without reference to whether any such
corporation is an "includible corporation" under
Section 1504(b) of the Internal Revenue Code) from
another member of such group shall be included only to
the extent such amount exceeds expenses of the
recipient directly related thereto.
(2) International Banking Facility. For taxable years
ending before December 31, 2008:
(A) Adjusted Income. The adjusted income of an
international banking facility is its income reduced
by the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income of
the international banking facility by a fraction, not
greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured
primarily by real estate) and to foreign
governments and other foreign official
institutions, as reported for its branches,
agencies and offices within the state on its
"Consolidated Report of Condition", Schedule A,

HB5146 - 164 - LRB100 18631 SMS 33856 b
Lines 2.c., 5.b., and 7.a., which was filed with
the Federal Deposit Insurance Corporation and
other regulatory authorities, for the year 1980,
minus
The average aggregate, determined on a
quarterly basis, of such loans (other than loans of
an international banking facility), as reported by
the financial institution for its branches,
agencies and offices within the state, on the
corresponding Schedule and lines of the
Consolidated Report of Condition for the current
taxable year, provided, however, that in no case
shall the amount determined in this clause (the
subtrahend) exceed the amount determined in the
preceding clause (the minuend); and
(ii) the denominator shall be the average
aggregate, determined on a quarterly basis, of the
international banking facility's loans to banks in
foreign countries, to foreign domiciled borrowers
(except where secured primarily by real estate)
and to foreign governments and other foreign
official institutions, which were recorded in its
financial accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit

HB5146 - 165 - LRB100 18631 SMS 33856 b
Insurance Corporation and other regulatory authorities
is altered so that the information required for
determining the floor amount is not found on Schedule
A, lines 2.c., 5.b. and 7.a., the financial institution
shall notify the Department and the Department may, by
regulations or otherwise, prescribe or authorize the
use of an alternative source for such information. The
financial institution shall also notify the Department
should its international banking facility fail to
qualify as such, in whole or in part, or should there
be any amendment or change to the Consolidated Report
of Condition, as originally filed, to the extent such
amendment or change alters the information used in
determining the floor amount.
(3) For taxable years ending on or after December 31,
2008, the business income of a financial organization shall
be apportioned to this State by multiplying such income by
a fraction, the numerator of which is its gross receipts
from sources in this State or otherwise attributable to
this State's marketplace and the denominator of which is
its gross receipts everywhere during the taxable year.
"Gross receipts" for purposes of this subparagraph (3)
means gross income, including net taxable gain on
disposition of assets, including securities and money
market instruments, when derived from transactions and
activities in the regular course of the financial

HB5146 - 166 - LRB100 18631 SMS 33856 b
organization's trade or business. The following examples
are illustrative:
(i) Receipts from the lease or rental of real or
tangible personal property are in this State if the
property is located in this State during the rental
period. Receipts from the lease or rental of tangible
personal property that is characteristically moving
property, including, but not limited to, motor
vehicles, rolling stock, aircraft, vessels, or mobile
equipment are from sources in this State to the extent
that the property is used in this State.
(ii) Interest income, commissions, fees, gains on
disposition, and other receipts from assets in the
nature of loans that are secured primarily by real
estate or tangible personal property are from sources
in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on
disposition, and other receipts from consumer loans
that are not secured by real or tangible personal
property are from sources in this State if the debtor
is a resident of this State.
(iv) Interest income, commissions, fees, gains on
disposition, and other receipts from commercial loans
and installment obligations that are not secured by
real or tangible personal property are from sources in
this State if the proceeds of the loan are to be

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applied in this State. If it cannot be determined where
the funds are to be applied, the income and receipts
are from sources in this State if the office of the
borrower from which the loan was negotiated in the
regular course of business is located in this State. If
the location of this office cannot be determined, the
income and receipts shall be excluded from the
numerator and denominator of the sales factor.
(v) Interest income, fees, gains on disposition,
service charges, merchant discount income, and other
receipts from credit card receivables are from sources
in this State if the card charges are regularly billed
to a customer in this State.
(vi) Receipts from the performance of services,
including, but not limited to, fiduciary, advisory,
and brokerage services, are in this State if the
services are received in this State within the meaning
of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers
checks and money orders are from sources in this State
if the checks and money orders are issued from a
location within this State.
(viii) Receipts from investment assets and
activities and trading assets and activities are
included in the receipts factor as follows:
(1) Interest, dividends, net gains (but not

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less than zero) and other income from investment
assets and activities from trading assets and
activities shall be included in the receipts
factor. Investment assets and activities and
trading assets and activities include but are not
limited to: investment securities; trading account
assets; federal funds; securities purchased and
sold under agreements to resell or repurchase;
options; futures contracts; forward contracts;
notional principal contracts such as swaps;
equities; and foreign currency transactions. With
respect to the investment and trading assets and
activities described in subparagraphs (A) and (B)
of this paragraph, the receipts factor shall
include the amounts described in such
subparagraphs.
(A) The receipts factor shall include the
amount by which interest from federal funds
sold and securities purchased under resale
agreements exceeds interest expense on federal
funds purchased and securities sold under
repurchase agreements.
(B) The receipts factor shall include the
amount by which interest, dividends, gains and
other income from trading assets and
activities, including but not limited to

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assets and activities in the matched book, in
the arbitrage book, and foreign currency
transactions, exceed amounts paid in lieu of
interest, amounts paid in lieu of dividends,
and losses from such assets and activities.
(2) The numerator of the receipts factor
includes interest, dividends, net gains (but not
less than zero), and other income from investment
assets and activities and from trading assets and
activities described in paragraph (1) of this
subsection that are attributable to this State.
(A) The amount of interest, dividends, net
gains (but not less than zero), and other
income from investment assets and activities
in the investment account to be attributed to
this State and included in the numerator is
determined by multiplying all such income from
such assets and activities by a fraction, the
numerator of which is the gross income from
such assets and activities which are properly
assigned to a fixed place of business of the
taxpayer within this State and the denominator
of which is the gross income from all such
assets and activities.
(B) The amount of interest from federal
funds sold and purchased and from securities

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purchased under resale agreements and
securities sold under repurchase agreements
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (A) of
paragraph (1) of this subsection from such
funds and such securities by a fraction, the
numerator of which is the gross income from
such funds and such securities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such funds and such securities.
(C) The amount of interest, dividends,
gains, and other income from trading assets and
activities, including but not limited to
assets and activities in the matched book, in
the arbitrage book and foreign currency
transactions (but excluding amounts described
in subparagraphs (A) or (B) of this paragraph),
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (B) of
paragraph (1) of this subsection by a fraction,
the numerator of which is the gross income from
such trading assets and activities which are

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properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such assets and activities.
(D) Properly assigned, for purposes of
this paragraph (2) of this subsection, means
the investment or trading asset or activity is
assigned to the fixed place of business with
which it has a preponderance of substantive
contacts. An investment or trading asset or
activity assigned by the taxpayer to a fixed
place of business without the State shall be
presumed to have been properly assigned if:
(i) the taxpayer has assigned, in the
regular course of its business, such asset
or activity on its records to a fixed place
of business consistent with federal or
state regulatory requirements;
(ii) such assignment on its records is
based upon substantive contacts of the
asset or activity to such fixed place of
business; and
(iii) the taxpayer uses such records
reflecting assignment of such assets or
activities for the filing of all state and
local tax returns for which an assignment

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of such assets or activities to a fixed
place of business is required.
(E) The presumption of proper assignment
of an investment or trading asset or activity
provided in subparagraph (D) of paragraph (2)
of this subsection may be rebutted upon a
showing by the Department, supported by a
preponderance of the evidence, that the
preponderance of substantive contacts
regarding such asset or activity did not occur
at the fixed place of business to which it was
assigned on the taxpayer's records. If the
fixed place of business that has a
preponderance of substantive contacts cannot
be determined for an investment or trading
asset or activity to which the presumption in
subparagraph (D) of paragraph (2) of this
subsection does not apply or with respect to
which that presumption has been rebutted, that
asset or activity is properly assigned to the
state in which the taxpayer's commercial
domicile is located. For purposes of this
subparagraph (E), it shall be presumed,
subject to rebuttal, that taxpayer's
commercial domicile is in the state of the
United States or the District of Columbia to

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which the greatest number of employees are
regularly connected with the management of the
investment or trading income or out of which
they are working, irrespective of where the
services of such employees are performed, as of
the last day of the taxable year.
(4) (Blank).
(5) (Blank).
(c-1) Federally regulated exchanges. For taxable years
ending on or after December 31, 2012, business income of a
federally regulated exchange shall, at the option of the
federally regulated exchange, be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is its business income from sources within this State, and the
denominator of which is its business income from all sources.
For purposes of this subsection, the business income within
this State of a federally regulated exchange is the sum of the
following:
(1) Receipts attributable to transactions executed on
a physical trading floor if that physical trading floor is
located in this State.
(2) Receipts attributable to all other matching,
execution, or clearing transactions, including without
limitation receipts from the provision of matching,
execution, or clearing services to another entity,
multiplied by (i) for taxable years ending on or after

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December 31, 2012 but before December 31, 2013, 63.77%; and
(ii) for taxable years ending on or after December 31,
2013, 27.54%.
(3) All other receipts not governed by subparagraphs
(1) or (2) of this subsection (c-1), to the extent the
receipts would be characterized as "sales in this State"
under item (3) of subsection (a) of this Section.
"Federally regulated exchange" means (i) a "registered
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
or (C), (ii) an "exchange" or "clearing agency" within the
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
entities regulated under any successor regulatory structure to
the foregoing, and (iv) all taxpayers who are members of the
same unitary business group as a federally regulated exchange,
determined without regard to the prohibition in Section
1501(a)(27) of this Act against including in a unitary business
group taxpayers who are ordinarily required to apportion
business income under different subsections of this Section;
provided that this subparagraph (iv) shall apply only if 50% or
more of the business receipts of the unitary business group
determined by application of this subparagraph (iv) for the
taxable year are attributable to the matching, execution, or
clearing of transactions conducted by an entity described in
subparagraph (i), (ii), or (iii) of this paragraph.
In no event shall the Illinois apportionment percentage
computed in accordance with this subsection (c-1) for any

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taxpayer for any tax year be less than the Illinois
apportionment percentage computed under this subsection (c-1)
for that taxpayer for the first full tax year ending on or
after December 31, 2013 for which this subsection (c-1) applied
to the taxpayer.
(d) Transportation services. For taxable years ending
before December 31, 2008, business income derived from
furnishing transportation services shall be apportioned to
this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived from
transportation by pipeline) shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the
person's
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Interstate Commerce Commission, in the case of

HB5146 - 176 - LRB100 18631 SMS 33856 b
transportation by railroad, and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from transportation
by pipeline shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For the purposes of this paragraph, a revenue
mile is the transportation by pipeline of 1 barrel of oil,
1,000 cubic feet of gas, or of any specified quantity of
any other substance, the distance of 1 mile for a
consideration.
(3) For taxable years ending on or after December 31,
2008, business income derived from providing
transportation services other than airline services shall
be apportioned to this State by using a fraction, (a) the
numerator of which shall be (i) all receipts from any
movement or shipment of people, goods, mail, oil, gas, or
any other substance (other than by airline) that both
originates and terminates in this State, plus (ii) that
portion of the person's gross receipts from movements or
shipments of people, goods, mail, oil, gas, or any other
substance (other than by airline) that originates in one
state or jurisdiction and terminates in another state or

HB5146 - 177 - LRB100 18631 SMS 33856 b
jurisdiction, that is determined by the ratio that the
miles traveled in this State bears to total miles
everywhere and (b) the denominator of which shall be all
revenue derived from the movement or shipment of people,
goods, mail, oil, gas, or any other substance (other than
by airline). Where a taxpayer is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall first be determined
separately for passenger miles and freight miles. Then an
average of the passenger miles fraction and the freight
miles fraction shall be weighted to reflect the taxpayer's:
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Surface Transportation Board, in the case of
transportation by railroad; and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(4) For taxable years ending on or after December 31,
2008, business income derived from furnishing airline
transportation services shall be apportioned to this State
by multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For purposes of this paragraph, a revenue mile
is the transportation of one passenger or one net ton of

HB5146 - 178 - LRB100 18631 SMS 33856 b
freight the distance of one mile for a consideration. If a
person is engaged in the transportation of both passengers
and freight, the fraction above referred to shall be
determined by means of an average of the passenger revenue
mile fraction and the freight revenue mile fraction,
weighted to reflect the person's relative gross receipts
from passenger and freight airline transportation.
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business income
attributable to this State by any such member or members shall
be apportioned by means of the combined apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) and of
subsection (h) do not, for taxable years ending before December
31, 2008, fairly represent the extent of a person's business
activity in this State, or, for taxable years ending on or
after December 31, 2008, fairly represent the market for the
person's goods, services, or other sources of business income,
the person may petition for, or the Director may, without a
petition, permit or require, in respect of all or any part of
the person's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;
(3) The inclusion of one or more additional factors

HB5146 - 179 - LRB100 18631 SMS 33856 b
which will fairly represent the person's business
activities or market in this State; or
(4) The employment of any other method to effectuate an
equitable allocation and apportionment of the person's
business income.
(g) Cross reference. For allocation of business income by
residents, see Section 301(a).
(h) For tax years ending on or after December 31, 1998, the
apportionment factor of persons who apportion their business
income to this State under subsection (a) shall be equal to:
(1) for tax years ending on or after December 31, 1998
and before December 31, 1999, 16 2/3% of the property
factor plus 16 2/3% of the payroll factor plus 66 2/3% of
the sales factor;
(2) for tax years ending on or after December 31, 1999
and before December 31, 2000, 8 1/3% of the property factor
plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
factor;
(3) for tax years ending on or after December 31, 2000,
the sales factor.
If, in any tax year ending on or after December 31, 1998 and
before December 31, 2000, the denominator of the payroll,
property, or sales factor is zero, the apportionment factor
computed in paragraph (1) or (2) of this subsection for that
year shall be divided by an amount equal to 100% minus the
percentage weight given to each factor whose denominator is

HB5146 - 180 - LRB100 18631 SMS 33856 b
equal to zero.
(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
(35 ILCS 5/710) (from Ch. 120, par. 7-710)
Sec. 710. Withholding from lottery winnings.
(a) In general.
(1) Any person making a payment to a resident or
nonresident of winnings under the Illinois Lottery Law and
not required to withhold Illinois income tax from such
payment under Subsection (b) of Section 701 of this Act
because those winnings are not subject to Federal income
tax withholding, must withhold Illinois income tax from
such payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that withholding is not required if such payment
of winnings is less than $1,000.
(2) In the case of an assignment of a lottery prize
under Section 13.1 of the Illinois Lottery Law, any person
making a payment of the purchase price after December 31,
2013, shall withhold from the amount of each payment at a
rate equal to the percentage tax rate for individuals
provided in subsection (b) of Section 201.
(3) Any person making a payment after December 31, 2018
to a resident or nonresident of winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from gambling

HB5146 - 181 - LRB100 18631 SMS 33856 b
games conducted on a riverboat or in a casino or electronic
gaming facility licensed under the Illinois Gambling Act
must withhold Illinois income tax from such payment at a
rate equal to the percentage tax rate for individuals
provided in subsection (b) of Section 201, provided that
the person making the payment is required to withhold under
Section 3402(q) of the Internal Revenue Code.
(b) Credit for taxes withheld. Any amount withheld under
Subsection (a) shall be a credit against the Illinois income
tax liability of the person to whom the payment of winnings was
made for the taxable year in which that person incurred an
Illinois income tax liability with respect to those winnings.
(Source: P.A. 98-496, eff. 1-1-14.)
Section 90-23. The Property Tax Code is amended by adding
Section 15-144 as follows:
(35 ILCS 200/15-144 new)
Sec. 15-144. Chicago Casino Development Authority. All
property owned by the Chicago Casino Development Authority is
exempt. Any property owned by the Chicago Casino Development
Authority and leased to any other entity is not exempt.
Section 90-24. The Illinois Municipal Code is amended by
adding Section 8-10-2.6 as follows:

HB5146 - 182 - LRB100 18631 SMS 33856 b
(65 ILCS 5/8-10-2.6 new)
Sec. 8-10-2.6. Chicago Casino Development Authority.
Except as otherwise provided in the Chicago Casino Development
Authority Act, this Division 10 applies to purchase orders and
contracts relating to the Chicago Casino Development
Authority.
Section 90-25. The Joliet Regional Port District Act is
amended by changing Section 5.1 as follows:
(70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
Sec. 5.1. Riverboat and casino gambling. Notwithstanding
any other provision of this Act, the District may not regulate
the operation, conduct, or navigation of any riverboat gambling
casino licensed under the Illinois Riverboat Gambling Act, and
the District may not license, tax, or otherwise levy any
assessment of any kind on any riverboat gambling casino
licensed under the Illinois Riverboat Gambling Act. The General
Assembly declares that the powers to regulate the operation,
conduct, and navigation of riverboat gambling casinos and to
license, tax, and levy assessments upon riverboat gambling
casinos are exclusive powers of the State of Illinois and the
Illinois Gaming Board as provided in the Illinois Riverboat
Gambling Act.
(Source: P.A. 87-1175.)

HB5146 - 183 - LRB100 18631 SMS 33856 b
Section 90-30. The Consumer Installment Loan Act is amended
by changing Section 12.5 as follows:
(205 ILCS 670/12.5)
Sec. 12.5. Limited purpose branch.
(a) Upon the written approval of the Director, a licensee
may maintain a limited purpose branch for the sole purpose of
making loans as permitted by this Act. A limited purpose branch
may include an automatic loan machine. No other activity shall
be conducted at the site, including but not limited to,
accepting payments, servicing the accounts, or collections.
(b) The licensee must submit an application for a limited
purpose branch to the Director on forms prescribed by the
Director with an application fee of $300. The approval for the
limited purpose branch must be renewed concurrently with the
renewal of the licensee's license along with a renewal fee of
$300 for the limited purpose branch.
(c) The books, accounts, records, and files of the limited
purpose branch's transactions shall be maintained at the
licensee's licensed location. The licensee shall notify the
Director of the licensed location at which the books, accounts,
records, and files shall be maintained.
(d) The licensee shall prominently display at the limited
purpose branch the address and telephone number of the
licensee's licensed location.
(e) No other business shall be conducted at the site of the

HB5146 - 184 - LRB100 18631 SMS 33856 b
limited purpose branch unless authorized by the Director.
(f) The Director shall make and enforce reasonable rules
for the conduct of a limited purpose branch.
(g) A limited purpose branch may not be located within
1,000 feet of a facility operated by an inter-track wagering
licensee or an organization licensee subject to the Illinois
Horse Racing Act of 1975, on a riverboat or in a casino subject
to the Illinois Riverboat Gambling Act, or within 1,000 feet of
the location at which the riverboat docks or within 1,000 feet
of a casino.
(Source: P.A. 90-437, eff. 1-1-98.)
Section 90-35. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
20, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40,
and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36,
34.3, and 56 as follows:
(230 ILCS 5/1.2)
Sec. 1.2. Legislative intent. This Act is intended to
benefit the people of the State of Illinois by encouraging the
breeding and production of race horses, assisting economic
development and promoting Illinois tourism. The General
Assembly finds and declares it to be the public policy of the
State of Illinois to:
(a) support and enhance Illinois' horse racing industry,

HB5146 - 185 - LRB100 18631 SMS 33856 b
which is a significant component within the agribusiness
industry;
(b) ensure that Illinois' horse racing industry remains
competitive with neighboring states;
(c) stimulate growth within Illinois' horse racing
industry, thereby encouraging new investment and development
to produce additional tax revenues and to create additional
jobs;
(d) promote the further growth of tourism;
(e) encourage the breeding of thoroughbred and
standardbred horses in this State; and
(f) ensure that public confidence and trust in the
credibility and integrity of racing operations and the
regulatory process is maintained.
(Source: P.A. 91-40, eff. 6-25-99.)
(230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
Sec. 3.11. "Organization Licensee" means any person
receiving an organization license from the Board to conduct a
race meeting or meetings. With respect only to electronic
gaming, "organization licensee" includes the authorization for
an electronic gaming license under subsection (a) of Section 56
of this Act.
(Source: P.A. 79-1185.)
(230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)

HB5146 - 186 - LRB100 18631 SMS 33856 b
Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
system of wagering" means a form of wagering on the outcome of
horse races in which wagers are made in various denominations
on a horse or horses and all wagers for each race are pooled
and held by a licensee for distribution in a manner approved by
the Board. "Pari-mutuel system of wagering" shall not include
wagering on historic races. Wagers may be placed via any method
or at any location authorized under this Act.
(Source: P.A. 96-762, eff. 8-25-09.)
(230 ILCS 5/3.31 new)
Sec. 3.31. Adjusted gross receipts. "Adjusted gross
receipts" means the gross receipts less winnings paid to
wagerers.
(230 ILCS 5/3.32 new)
Sec. 3.32. Gross receipts. "Gross receipts" means the total
amount of money exchanged for the purchase of chips, tokens, or
electronic cards by riverboat or casino patrons or electronic
gaming patrons.
(230 ILCS 5/3.33 new)
Sec. 3.33. Electronic gaming. "Electronic gaming" means
slot machine gambling, video game of chance gambling, or
gambling with electronic gambling games as defined in the
Illinois Gambling Act or defined by the Illinois Gaming Board

HB5146 - 187 - LRB100 18631 SMS 33856 b
that is conducted at a race track pursuant to an electronic
gaming license.
(230 ILCS 5/3.35 new)
Sec. 3.35. Electronic gaming license. "Electronic gaming
license" means a license issued by the Illinois Gaming Board
under Section 7.7 of the Illinois Gambling Act authorizing
electronic gaming at an electronic gaming facility.
(230 ILCS 5/3.36 new)
Sec. 3.36. Electronic gaming facility. "Electronic gaming
facility" means that portion of an organization licensee's race
track facility at which electronic gaming is conducted.
(230 ILCS 5/6) (from Ch. 8, par. 37-6)
Sec. 6. Restrictions on Board members.
(a) No person shall be appointed a member of the Board or
continue to be a member of the Board if the person or any
member of their immediate family is a member of the Board of
Directors, employee, or financially interested in any of the
following: (i) any licensee or other person who has applied for
racing dates to the Board, or the operations thereof including,
but not limited to, concessions, data processing, track
maintenance, track security, and pari-mutuel operations,
located, scheduled or doing business within the State of
Illinois, (ii) any race horse competing at a meeting under the

HB5146 - 188 - LRB100 18631 SMS 33856 b
Board's jurisdiction, or (iii) any licensee under the Illinois
Gambling Act. No person shall be appointed a member of the
Board or continue to be a member of the Board who is (or any
member of whose family is) a member of the Board of Directors
of, or who is a person financially interested in, any licensee
or other person who has applied for racing dates to the Board,
or the operations thereof including, but not limited to,
concessions, data processing, track maintenance, track
security and pari-mutuel operations, located, scheduled or
doing business within the State of Illinois, or in any race
horse competing at a meeting under the Board's jurisdiction. No
Board member shall hold any other public office for which he
shall receive compensation other than necessary travel or other
incidental expenses.
(b) No person shall be a member of the Board who is not of
good moral character or who has been convicted of, or is under
indictment for, a felony under the laws of Illinois or any
other state, or the United States.
(c) No member of the Board or employee shall engage in any
political activity.
For the purposes of this subsection (c):
"Political" means any activity in support of or in
connection with any campaign for State or local elective office
or any political organization, but does not include activities
(i) relating to the support or opposition of any executive,
legislative, or administrative action (as those terms are

HB5146 - 189 - LRB100 18631 SMS 33856 b
defined in Section 2 of the Lobbyist Registration Act), (ii)
relating to collective bargaining, or (iii) that are otherwise
in furtherance of the person's official State duties or
governmental and public service functions.
"Political organization" means a party, committee,
association, fund, or other organization (whether or not
incorporated) that is required to file a statement of
organization with the State Board of Elections or county clerk
under Section 9-3 of the Election Code, but only with regard to
those activities that require filing with the State Board of
Elections or county clerk.
(d) Board members and employees may not engage in
communications or any activity that may cause or have the
appearance of causing a conflict of interest. A conflict of
interest exists if a situation influences or creates the
appearance that it may influence judgment or performance of
regulatory duties and responsibilities. This prohibition shall
extend to any act identified by Board action that, in the
judgment of the Board, could represent the potential for or the
appearance of a conflict of interest.
(e) Board members and employees may not accept any gift,
gratuity, service, compensation, travel, lodging, or thing of
value, with the exception of unsolicited items of an incidental
nature, from any person, corporation, limited liability
company, or entity doing business with the Board.
(f) A Board member or employee shall not use or attempt to

HB5146 - 190 - LRB100 18631 SMS 33856 b
use his or her official position to secure, or attempt to
secure, any privilege, advantage, favor, or influence for
himself or herself or others. No Board member or employee,
within a period of one year immediately preceding nomination by
the Governor or employment, shall have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee or a licensee under the
Illinois Gambling Act. In addition, all Board members and
employees are subject to the restrictions set forth in Section
5-45 of the State Officials and Employees Ethics Act.
(Source: P.A. 89-16, eff. 5-30-95.)
(230 ILCS 5/9) (from Ch. 8, par. 37-9)
Sec. 9. The Board shall have all powers necessary and
proper to fully and effectively execute the provisions of this
Act, including, but not limited to, the following:
(a) The Board is vested with jurisdiction and supervision
over all race meetings in this State, over all licensees doing
business in this State, over all occupation licensees, and over
all persons on the facilities of any licensee. Such
jurisdiction shall include the power to issue licenses to the
Illinois Department of Agriculture authorizing the pari-mutuel
system of wagering on harness and Quarter Horse races held (1)
at the Illinois State Fair in Sangamon County, and (2) at the
DuQuoin State Fair in Perry County. The jurisdiction of the

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Board shall also include the power to issue licenses to county
fairs which are eligible to receive funds pursuant to the
Agricultural Fair Act, as now or hereafter amended, or their
agents, authorizing the pari-mutuel system of wagering on horse
races conducted at the county fairs receiving such licenses.
Such licenses shall be governed by subsection (n) of this
Section.
Upon application, the Board shall issue a license to the
Illinois Department of Agriculture to conduct harness and
Quarter Horse races at the Illinois State Fair and at the
DuQuoin State Fairgrounds during the scheduled dates of each
fair. The Board shall not require and the Department of
Agriculture shall be exempt from the requirements of Sections
15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
and 25. The Board and the Department of Agriculture may extend
any or all of these exemptions to any contractor or agent
engaged by the Department of Agriculture to conduct its race
meetings when the Board determines that this would best serve
the public interest and the interest of horse racing.
Notwithstanding any provision of law to the contrary, it
shall be lawful for any licensee to operate pari-mutuel
wagering or contract with the Department of Agriculture to
operate pari-mutuel wagering at the DuQuoin State Fairgrounds
or for the Department to enter into contracts with a licensee,
employ its owners, employees or agents and employ such other

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occupation licensees as the Department deems necessary in
connection with race meetings and wagerings.
(b) The Board is vested with the full power to promulgate
reasonable rules and regulations for the purpose of
administering the provisions of this Act and to prescribe
reasonable rules, regulations and conditions under which all
horse race meetings or wagering in the State shall be
conducted. Such reasonable rules and regulations are to provide
for the prevention of practices detrimental to the public
interest and to promote the best interests of horse racing and
to impose penalties for violations thereof.
(c) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter the
facilities and other places of business of any licensee to
determine whether there has been compliance with the provisions
of this Act and its rules and regulations.
(d) The Board, and any person or persons to whom it
delegates this power, is vested with the authority to
investigate alleged violations of the provisions of this Act,
its reasonable rules and regulations, orders and final
decisions; the Board shall take appropriate disciplinary
action against any licensee or occupation licensee for
violation thereof or institute appropriate legal action for the
enforcement thereof.
(e) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any race

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meeting or the facilities of any licensee, or any part thereof,
any occupation licensee or any other individual whose conduct
or reputation is such that his presence on those facilities
may, in the opinion of the Board, call into question the
honesty and integrity of horse racing or wagering or interfere
with the orderly conduct of horse racing or wagering; provided,
however, that no person shall be excluded or ejected from the
facilities of any licensee solely on the grounds of race,
color, creed, national origin, ancestry, or sex. The power to
eject or exclude an occupation licensee or other individual may
be exercised for just cause by the licensee or the Board,
subject to subsequent hearing by the Board as to the propriety
of said exclusion.
(f) The Board is vested with the power to acquire,
establish, maintain and operate (or provide by contract to
maintain and operate) testing laboratories and related
facilities, for the purpose of conducting saliva, blood, urine
and other tests on the horses run or to be run in any horse race
meeting, including races run at county fairs, and to purchase
all equipment and supplies deemed necessary or desirable in
connection with any such testing laboratories and related
facilities and all such tests.
(g) The Board may require that the records, including
financial or other statements of any licensee or any person
affiliated with the licensee who is involved directly or
indirectly in the activities of any licensee as regulated under

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this Act to the extent that those financial or other statements
relate to such activities be kept in such manner as prescribed
by the Board, and that Board employees shall have access to
those records during reasonable business hours. Within 120 days
of the end of its fiscal year, each licensee shall transmit to
the Board an audit of the financial transactions and condition
of the licensee's total operations. All audits shall be
conducted by certified public accountants. Each certified
public accountant must be registered in the State of Illinois
under the Illinois Public Accounting Act. The compensation for
each certified public accountant shall be paid directly by the
licensee to the certified public accountant. A licensee shall
also submit any other financial or related information the
Board deems necessary to effectively administer this Act and
all rules, regulations, and final decisions promulgated under
this Act.
(h) The Board shall name and appoint in the manner provided
by the rules and regulations of the Board: an Executive
Director; a State director of mutuels; State veterinarians and
representatives to take saliva, blood, urine and other tests on
horses; licensing personnel; revenue inspectors; and State
seasonal employees (excluding admission ticket sellers and
mutuel clerks). All of those named and appointed as provided in
this subsection shall serve during the pleasure of the Board;
their compensation shall be determined by the Board and be paid
in the same manner as other employees of the Board under this

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Act.
(i) The Board shall require that there shall be 3 stewards
at each horse race meeting, at least 2 of whom shall be named
and appointed by the Board. Stewards appointed or approved by
the Board, while performing duties required by this Act or by
the Board, shall be entitled to the same rights and immunities
as granted to Board members and Board employees in Section 10
of this Act.
(j) The Board may discharge any Board employee who fails or
refuses for any reason to comply with the rules and regulations
of the Board, or who, in the opinion of the Board, is guilty of
fraud, dishonesty or who is proven to be incompetent. The Board
shall have no right or power to determine who shall be
officers, directors or employees of any licensee, or their
salaries except the Board may, by rule, require that all or any
officials or employees in charge of or whose duties relate to
the actual running of races be approved by the Board.
(k) The Board is vested with the power to appoint delegates
to execute any of the powers granted to it under this Section
for the purpose of administering this Act and any rules or
regulations promulgated in accordance with this Act.
(l) The Board is vested with the power to impose civil
penalties of up to $5,000 against an individual and up to
$10,000 against a licensee for each violation of any provision
of this Act, any rules adopted by the Board, any order of the
Board or any other action which, in the Board's discretion, is

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a detriment or impediment to horse racing or wagering.
Beginning on the date when any organization licensee begins
conducting electronic gaming pursuant to an electronic gaming
license issued under the Illinois Gambling Act, the power
granted to the Board pursuant to this subsection (l) shall
authorize the Board to impose penalties of up to $10,000
against an individual and up to $25,000 against a licensee. All
such civil penalties shall be deposited into the Horse Racing
Fund.
(m) The Board is vested with the power to prescribe a form
to be used by licensees as an application for employment for
employees of each licensee.
(n) The Board shall have the power to issue a license to
any county fair, or its agent, authorizing the conduct of the
pari-mutuel system of wagering. The Board is vested with the
full power to promulgate reasonable rules, regulations and
conditions under which all horse race meetings licensed
pursuant to this subsection shall be held and conducted,
including rules, regulations and conditions for the conduct of
the pari-mutuel system of wagering. The rules, regulations and
conditions shall provide for the prevention of practices
detrimental to the public interest and for the best interests
of horse racing, and shall prescribe penalties for violations
thereof. Any authority granted the Board under this Act shall
extend to its jurisdiction and supervision over county fairs,
or their agents, licensed pursuant to this subsection. However,

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the Board may waive any provision of this Act or its rules or
regulations which would otherwise apply to such county fairs or
their agents.
(o) Whenever the Board is authorized or required by law to
consider some aspect of criminal history record information for
the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in
conformance with the requirements of Section 2605-400 of the
Department of State Police Law (20 ILCS 2605/2605-400), the
Department of State Police is authorized to furnish, pursuant
to positive identification, such information contained in
State files as is necessary to fulfill the request.
(p) To insure the convenience, comfort, and wagering
accessibility of race track patrons, to provide for the
maximization of State revenue, and to generate increases in
purse allotments to the horsemen, the Board shall require any
licensee to staff the pari-mutuel department with adequate
personnel.
(Source: P.A. 97-1060, eff. 8-24-12.)
(230 ILCS 5/15) (from Ch. 8, par. 37-15)
Sec. 15. (a) The Board shall, in its discretion, issue
occupation licenses to horse owners, trainers, harness
drivers, jockeys, agents, apprentices, grooms, stable foremen,
exercise persons, veterinarians, valets, blacksmiths,
concessionaires and others designated by the Board whose work,

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in whole or in part, is conducted upon facilities within the
State. Such occupation licenses will be obtained prior to the
persons engaging in their vocation upon such facilities. The
Board shall not license pari-mutuel clerks, parking
attendants, security guards and employees of concessionaires.
No occupation license shall be required of any person who works
at facilities within this State as a pari-mutuel clerk, parking
attendant, security guard or as an employee of a
concessionaire. Concessionaires of the Illinois State Fair and
DuQuoin State Fair and employees of the Illinois Department of
Agriculture shall not be required to obtain an occupation
license by the Board.
(b) Each application for an occupation license shall be on
forms prescribed by the Board. Such license, when issued, shall
be for the period ending December 31 of each year, except that
the Board in its discretion may grant 3-year licenses. The
application shall be accompanied by a fee of not more than $25
per year or, in the case of 3-year occupation license
applications, a fee of not more than $60. Each applicant shall
set forth in the application his full name and address, and if
he had been issued prior occupation licenses or has been
licensed in any other state under any other name, such name,
his age, whether or not a permit or license issued to him in
any other state has been suspended or revoked and if so whether
such suspension or revocation is in effect at the time of the
application, and such other information as the Board may

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require. Fees for registration of stable names shall not exceed
$50.00. Beginning on the date when any organization licensee
begins conducting electronic gaming pursuant to an electronic
gambling license issued under the Illinois Gambling Act, the
fee for registration of stable names shall not exceed $150, and
the application fee for an occupation license shall not exceed
$75, per year or, in the case of a 3-year occupation license
application, the fee shall not exceed $180.
(c) The Board may in its discretion refuse an occupation
license to any person:
(1) who has been convicted of a crime;
(2) who is unqualified to perform the duties required
of such applicant;
(3) who fails to disclose or states falsely any
information called for in the application;
(4) who has been found guilty of a violation of this
Act or of the rules and regulations of the Board; or
(5) whose license or permit has been suspended, revoked
or denied for just cause in any other state.
(d) The Board may suspend or revoke any occupation license:
(1) for violation of any of the provisions of this Act;
or
(2) for violation of any of the rules or regulations of
the Board; or
(3) for any cause which, if known to the Board, would
have justified the Board in refusing to issue such

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occupation license; or
(4) for any other just cause.
(e) Each applicant shall submit his or her fingerprints
to the Department of State Police in the form and manner
prescribed by the Department of State Police. These
fingerprints shall be checked against the fingerprint records
now and hereafter filed in the Department of State Police and
Federal Bureau of Investigation criminal history records
databases. The Department of State Police shall charge a fee
for conducting the criminal history records check, which shall
be deposited in the State Police Services Fund and shall not
exceed the actual cost of the records check. The Department of
State Police shall furnish, pursuant to positive
identification, records of conviction to the Board. Each
applicant for licensure shall submit with his occupation
license application, on forms provided by the Board, 2 sets of
his fingerprints. All such applicants shall appear in person at
the location designated by the Board for the purpose of
submitting such sets of fingerprints; however, with the prior
approval of a State steward, an applicant may have such sets of
fingerprints taken by an official law enforcement agency and
submitted to the Board.
(f) The Board may, in its discretion, issue an occupation
license without submission of fingerprints if an applicant has
been duly licensed in another recognized racing jurisdiction
after submitting fingerprints that were subjected to a Federal

HB5146 - 201 - LRB100 18631 SMS 33856 b
Bureau of Investigation criminal history background check in
that jurisdiction.
(g) Beginning on the date when any organization licensee
begins conducting electronic gaming pursuant to an electronic
gaming license issued under the Illinois Gambling Act, the
Board may charge each applicant a reasonable non-refundable fee
to defray the costs associated with the background
investigation conducted by the Board. This fee shall be
exclusive of any other fee or fees charged in connection with
an application for and, if applicable, the issuance of, an
electronic gaming license. If the costs of the investigation
exceed the amount of the fee charged, the Board shall
immediately notify the applicant of the additional amount owed,
payment of which must be submitted to the Board within 7 days
after such notification. All information, records, interviews,
reports, statements, memoranda, or other data supplied to or
used by the Board in the course of its review or investigation
of an applicant for a license or renewal under this Act shall
be privileged, strictly confidential, and shall be used only
for the purpose of evaluating an applicant for a license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence, nor discoverable, in any action of any kind in any
court or before any tribunal, board, agency, or person, except
for any action deemed necessary by the Board.
(Source: P.A. 93-418, eff. 1-1-04.)

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(230 ILCS 5/18) (from Ch. 8, par. 37-18)
Sec. 18. (a) Together with its application, each applicant
for racing dates shall deliver to the Board a certified check
or bank draft payable to the order of the Board for $1,000. In
the event the applicant applies for racing dates in 2 or 3
successive calendar years as provided in subsection (b) of
Section 21, the fee shall be $2,000. Filing fees shall not be
refunded in the event the application is denied. Beginning on
the date when any organization licensee begins conducting
electronic gaming pursuant to an electronic gaming license
issued under the Illinois Gambling Act, the application fee for
racing dates imposed by this subsection (a) shall be $10,000
and the application fee for racing dates in 2 or 3 successive
calendar years as provided in subsection (b) of Section 21
shall be $20,000. All filing fees shall be deposited into the
Horse Racing Fund.
(b) In addition to the filing fee imposed by subsection (a)
of $1000 and the fees provided in subsection (j) of Section 20,
each organization licensee shall pay a license fee of $100 for
each racing program on which its daily pari-mutuel handle is
$400,000 or more but less than $700,000, and a license fee of
$200 for each racing program on which its daily pari-mutuel
handle is $700,000 or more. The additional fees required to be
paid under this Section by this amendatory Act of 1982 shall be
remitted by the organization licensee to the Illinois Racing

HB5146 - 203 - LRB100 18631 SMS 33856 b
Board with each day's graduated privilege tax or pari-mutuel
tax and breakage as provided under Section 27. Beginning on the
date when any organization licensee begins conducting
electronic gaming pursuant to an electronic gaming license
issued under the Illinois Gambling Act, the license fee imposed
by this subsection (b) shall be $200 for each racing program on
which the organization licensee's daily pari-mutuel handle is
$100,000 or more, but less than $400,000, and the license fee
imposed by this subsection (b) shall be $400 for each racing
program on which the organization licensee's daily pari-mutuel
handle is $400,000 or more.
(c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
Municipal Code," approved May 29, 1961, as now or hereafter
amended, shall not apply to any license under this Act.
(Source: P.A. 97-1060, eff. 8-24-12.)
(230 ILCS 5/19) (from Ch. 8, par. 37-19)
Sec. 19. (a) No organization license may be granted to
conduct a horse race meeting:
(1) except as provided in subsection (c) of Section 21
of this Act, to any person at any place within 35 miles of
any other place licensed by the Board to hold a race
meeting on the same date during the same hours, the mileage
measurement used in this subsection (a) shall be certified
to the Board by the Bureau of Systems and Services in the
Illinois Department of Transportation as the most commonly

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used public way of vehicular travel;
(2) to any person in default in the payment of any
obligation or debt due the State under this Act, provided
no applicant shall be deemed in default in the payment of
any obligation or debt due to the State under this Act as
long as there is pending a hearing of any kind relevant to
such matter;
(3) to any person who has been convicted of the
violation of any law of the United States or any State law
which provided as all or part of its penalty imprisonment
in any penal institution; to any person against whom there
is pending a Federal or State criminal charge; to any
person who is or has been connected with or engaged in the
operation of any illegal business; to any person who does
not enjoy a general reputation in his community of being an
honest, upright, law-abiding person; provided that none of
the matters set forth in this subparagraph (3) shall make
any person ineligible to be granted an organization license
if the Board determines, based on circumstances of any such
case, that the granting of a license would not be
detrimental to the interests of horse racing and of the
public;
(4) to any person who does not at the time of
application for the organization license own or have a
contract or lease for the possession of a finished race
track suitable for the type of racing intended to be held

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by the applicant and for the accommodation of the public.
(b) (Blank) Horse racing on Sunday shall be prohibited
unless authorized by ordinance or referendum of the
municipality in which a race track or any of its appurtenances
or facilities are located, or utilized.
(c) If any person is ineligible to receive an organization
license because of any of the matters set forth in subsection
(a) (2) or subsection (a) (3) of this Section, any other or
separate person that either (i) controls, directly or
indirectly, such ineligible person or (ii) is controlled,
directly or indirectly, by such ineligible person or by a
person which controls, directly or indirectly, such ineligible
person shall also be ineligible.
(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
(230 ILCS 5/20) (from Ch. 8, par. 37-20)
Sec. 20. (a) Any person desiring to conduct a horse race
meeting may apply to the Board for an organization license. The
application shall be made on a form prescribed and furnished by
the Board. The application shall specify:
(1) the dates on which it intends to conduct the horse
race meeting, which dates shall be provided under Section
21;
(2) the hours of each racing day between which it
intends to hold or conduct horse racing at such meeting;
(3) the location where it proposes to conduct the

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meeting; and
(4) any other information the Board may reasonably
require.
(b) A separate application for an organization license
shall be filed for each horse race meeting which such person
proposes to hold. Any such application, if made by an
individual, or by any individual as trustee, shall be signed
and verified under oath by such individual. If the application
is made by individuals, then it shall be signed and verified
under oath by at least 2 of the individuals; if the application
is made by or a partnership, it shall be signed and verified
under oath by at least 2 of such individuals or members of such
partnership as the case may be. If made by an association, a
corporation, a corporate trustee, a limited liability company,
or any other entity, it shall be signed by an authorized
officer, a partner, a member, or a manager, as the case may be,
of the entity the president and attested by the secretary or
assistant secretary under the seal of such association, trust
or corporation if it has a seal, and shall also be verified
under oath by one of the signing officers.
(c) The application shall specify:
(1) the name of the persons, association, trust, or
corporation making such application; and
(2) the principal post office address of the applicant;
(3) if the applicant is a trustee, the names and
addresses of the beneficiaries; if the applicant is a

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corporation, the names and post office addresses of all
officers, stockholders and directors; or if such
stockholders hold stock as a nominee or fiduciary, the
names and post office addresses of the parties these
persons, partnerships, corporations, or trusts who are the
beneficial owners thereof or who are beneficially
interested therein; and if the applicant is a partnership,
the names and post office addresses of all partners,
general or limited; if the applicant is a limited liability
company, the names and addresses of the manager and
members; and if the applicant is any other entity, the
names and addresses of all officers or other authorized
persons of the entity corporation, the name of the state of
its incorporation shall be specified.
(d) The applicant shall execute and file with the Board a
good faith affirmative action plan to recruit, train, and
upgrade minorities in all classifications within the
association.
(e) With such application there shall be delivered to the
Board a certified check or bank draft payable to the order of
the Board for an amount equal to $1,000. All applications for
the issuance of an organization license shall be filed with the
Board before August 1 of the year prior to the year for which
application is made and shall be acted upon by the Board at a
meeting to be held on such date as shall be fixed by the Board
during the last 15 days of September of such prior year. At

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such meeting, the Board shall announce the award of the racing
meets, live racing schedule, and designation of host track to
the applicants and its approval or disapproval of each
application. No announcement shall be considered binding until
a formal order is executed by the Board, which shall be
executed no later than October 15 of that prior year. Absent
the agreement of the affected organization licensees, the Board
shall not grant overlapping race meetings to 2 or more tracks
that are within 100 miles of each other to conduct the
thoroughbred racing.
(e-1) In awarding standardbred racing dates for calendar
year 2019, the Board shall award at least 160 racing dates, and
each organization licensee shall average at least 10 races for
each racing date awarded. In awarding standardbred racing dates
for calendar year 2020, the Board shall award at least 200
racing dates, and each organization licensee shall average at
least 11 races for each racing date awarded. In awarding
standardbred racing dates for calendar year 2021 and
thereafter, the Board shall award at least 260 racing dates,
and each organization licensee shall average at least 11 races
for each racing date awarded unless a lesser schedule of live
racing is a result of an agreement with the organization
representing the largest number of standardbred owners,
breeders, trainers, drivers, caretakers in the State.
Standardbred racing conducted in Sangamon County shall not be
considered races under this subsection (e-1).

HB5146 - 209 - LRB100 18631 SMS 33856 b
(e-2) In awarding racing dates for calendar year 2019 and
thereafter, the Board shall award thoroughbred racing days to
Cook County organization licensees commensurate with these
organization licensees' requirement that they shall run at
least 1,950 thoroughbred races in the aggregate, so long as 2
organization licensees are conducting electronic gaming
operations. Additionally, if the organization licensees that
run thoroughbred races in Cook County are conducting electronic
gaming operations, the Board shall increase the number of
thoroughbred races to be run in Cook County in the aggregate to
at least the following:
(i) 2,050 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$200,000,000, but do not exceed $250,000,000;
(ii) 2,125 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$250,000,000, but do not exceed $300,000,000;
(iii) 2,200 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$300,000,000, but do not exceed $350,000,000;

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(iv) 2,300 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$350,000,000, but do not exceed $400,000,000;
(v) 2,375 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$400,000,000, but do not exceed $450,000,000;
(vi) 2,450 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks total in excess of
$450,000,000, but do not exceed $500,000,000;
(vii) 2,550 races in any year following the most recent
preceding complete calendar year when the combined
adjusted gross receipts of the electronic gaming licensees
operating at Cook County race tracks exceeds $500,000,000.
In awarding racing dates under this subsection (e-2), the
Board shall have the discretion to allocate those thoroughbred
racing dates among these Cook County organization licensees.
(e-3) In awarding racing dates for calendar year 2019 and
thereafter in connection with a race track in Madison County,
the Board shall award racing dates and such organization
licensee shall run at least 700 thoroughbred races at the race

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track in Madison County each year.
Notwithstanding Section 7.7 of the Illinois Gambling Act or
any provision of this Act other than subsection (e-4.5), for
each calendar year for which an electronic gaming licensee
located in Madison County requests racing dates resulting in
less than 700 live thoroughbred races at its race track
facility, the electronic gaming licensee may not conduct
electronic gaming for the calendar year of such requested live
races.
(e-4) Notwithstanding the provisions of Section 7.7 of the
Illinois Gambling Act or any provision of this Act other than
subsections (e-3) and (e-4.5), for each calendar year for which
an electronic gaming licensee requests thoroughbred racing
dates which results in a number of live races under its
organization license that is less than the total number of live
races which it conducted in 2017 at its race track facility,
the electronic gaming licensee may not conduct electronic
gaming for the calendar year of such requested live races.
(e-4.1) Notwithstanding the provisions of Section 7.7 of
the Illinois Gambling Act or any provision of this Act other
than subsections (e-3) and (e-4.5), for each calendar year for
which an organization licensee requests racing dates for
standardbred racing which results in a number of live races
that is less than the total number of live races required in
subsection (e-1), the electronic gaming licensee may not
conduct electronic gaming for the calendar year of such

HB5146 - 212 - LRB100 18631 SMS 33856 b
requested live races.
(e-4.5) The Board shall ensure that each organization
licensee shall individually run a sufficient number of races
per year to qualify for an electronic gaming license under this
Act. The General Assembly finds that the minimum live racing
guarantees contained in subsections (e-1), (e-2), and (e-3) are
in the best interest of the sport of horse racing, and that
such guarantees may only be reduced in the limited
circumstances described in this subsection. The Board may
decrease the number of racing days without affecting an
organization licensee's ability to conduct electronic gaming
only if the Board determines, after notice and hearing, that:
(i) a decrease is necessary to maintain a sufficient
number of betting interests per race to ensure the
integrity of racing;
(ii) there are unsafe track conditions due to weather
or acts of God;
(iii) there is an agreement between an organization
licensee and the breed association that is applicable to
the involved live racing guarantee, such association
representing either the largest number of thoroughbred
owners and trainers or the largest number of standardbred
owners, trainers and drivers who race horses at the
involved organization licensee's racing meeting, so long
as the agreement does not compromise the integrity of the
sport of horse racing; or

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(iv) the horse population or purse levels are
insufficient to provide the number of racing opportunities
otherwise required in this Act.
In decreasing the number of racing dates in accordance with
this subsection, the Board shall hold a hearing and shall
provide the public and all interested parties notice and an
opportunity to be heard. The Board shall accept testimony from
all interested parties, including any association representing
owners, trainers, jockeys, or drivers who will be affected by
the decrease in racing dates. The Board shall provide a written
explanation of the reasons for the decrease and the Board's
findings. The written explanation shall include a listing and
content of all communication between any party and any Illinois
Racing Board member or staff that does not take place at a
public meeting of the Board.
(e-5) In reviewing an application for the purpose of
granting an organization license consistent with the best
interests of the public and the sport of horse racing, the
Board shall consider:
(1) the character, reputation, experience, and
financial integrity of the applicant and of any other
separate person that either:
(i) controls the applicant, directly or
indirectly, or
(ii) is controlled, directly or indirectly, by
that applicant or by a person who controls, directly or

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

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(e-10) The Illinois Administrative Procedure Act shall
apply to administrative procedures of the Board under this Act
for the granting of an organization license, except that (1)
notwithstanding the provisions of subsection (b) of Section
10-40 of the Illinois Administrative Procedure Act regarding
cross-examination, the Board may prescribe rules limiting the
right of an applicant or participant in any proceeding to award
an organization license to conduct cross-examination of
witnesses at that proceeding where that cross-examination
would unduly obstruct the timely award of an organization
license under subsection (e) of Section 20 of this Act; (2) the
provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded
under this Act; (3) notwithstanding the provisions of
subsection (a) of Section 10-60 of the Illinois Administrative
Procedure Act regarding ex parte communications, the Board may
prescribe rules allowing ex parte communications with
applicants or participants in a proceeding to award an
organization license where conducting those communications
would be in the best interest of racing, provided all those
communications are made part of the record of that proceeding
pursuant to subsection (c) of Section 10-60 of the Illinois
Administrative Procedure Act; (4) the provisions of Section 14a
of this Act and the rules of the Board promulgated under that
Section shall apply instead of the provisions of Article 10 of
the Illinois Administrative Procedure Act regarding

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administrative law judges; and (5) the provisions of subsection
(d) of Section 10-65 of the Illinois Administrative Procedure
Act that prevent summary suspension of a license pending
revocation or other action shall not apply.
(f) The Board may allot racing dates to an organization
licensee for more than one calendar year but for no more than 3
successive calendar years in advance, provided that the Board
shall review such allotment for more than one calendar year
prior to each year for which such allotment has been made. The
granting of an organization license to a person constitutes a
privilege to conduct a horse race meeting under the provisions
of this Act, and no person granted an organization license
shall be deemed to have a vested interest, property right, or
future expectation to receive an organization license in any
subsequent year as a result of the granting of an organization
license. Organization licenses shall be subject to revocation
if the organization licensee has violated any provision of this
Act or the rules and regulations promulgated under this Act or
has been convicted of a crime or has failed to disclose or has
stated falsely any information called for in the application
for an organization license. Any organization license
revocation proceeding shall be in accordance with Section 16
regarding suspension and revocation of occupation licenses.
(f-5) If, (i) an applicant does not file an acceptance of
the racing dates awarded by the Board as required under part
(1) of subsection (h) of this Section 20, or (ii) an

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organization licensee has its license suspended or revoked
under this Act, the Board, upon conducting an emergency hearing
as provided for in this Act, may reaward on an emergency basis
pursuant to rules established by the Board, racing dates not
accepted or the racing dates associated with any suspension or
revocation period to one or more organization licensees, new
applicants, or any combination thereof, upon terms and
conditions that the Board determines are in the best interest
of racing, provided, the organization licensees or new
applicants receiving the awarded racing dates file an
acceptance of those reawarded racing dates as required under
paragraph (1) of subsection (h) of this Section 20 and comply
with the other provisions of this Act. The Illinois
Administrative Procedure Act shall not apply to the
administrative procedures of the Board in conducting the
emergency hearing and the reallocation of racing dates on an
emergency basis.
(g) (Blank).
(h) The Board shall send the applicant a copy of its
formally executed order by certified mail addressed to the
applicant at the address stated in his application, which
notice shall be mailed within 5 days of the date the formal
order is executed.
Each applicant notified shall, within 10 days after receipt
of the final executed order of the Board awarding racing dates:
(1) file with the Board an acceptance of such award in

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the form prescribed by the Board;
(2) pay to the Board an additional amount equal to $110
for each racing date awarded; and
(3) file with the Board the bonds required in Sections
21 and 25 at least 20 days prior to the first day of each
race meeting.
Upon compliance with the provisions of paragraphs (1), (2), and
(3) of this subsection (h), the applicant shall be issued an
organization license.
If any applicant fails to comply with this Section or fails
to pay the organization license fees herein provided, no
organization license shall be issued to such applicant.
(Source: P.A. 97-333, eff. 8-12-11.)
(230 ILCS 5/21) (from Ch. 8, par. 37-21)
Sec. 21. (a) Applications for organization licenses must be
filed with the Board at a time and place prescribed by the
rules and regulations of the Board. The Board shall examine the
applications within 21 days after the date allowed for filing
with respect to their conformity with this Act and such rules
and regulations as may be prescribed by the Board. If any
application does not comply with this Act or the rules and
regulations prescribed by the Board, such application may be
rejected and an organization license refused to the applicant,
or the Board may, within 21 days of the receipt of such
application, advise the applicant of the deficiencies of the

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application under the Act or the rules and regulations of the
Board, and require the submittal of an amended application
within a reasonable time determined by the Board; and upon
submittal of the amended application by the applicant, the
Board may consider the application consistent with the process
described in subsection (e-5) of Section 20 of this Act. If it
is found to be in compliance with this Act and the rules and
regulations of the Board, the Board may then issue an
organization license to such applicant.
(b) The Board may exercise discretion in granting racing
dates to qualified applicants different from those requested by
the applicants in their applications. However, if all eligible
applicants for organization licenses whose tracks are located
within 100 miles of each other execute and submit to the Board
a written agreement among such applicants as to the award of
racing dates, including where applicable racing programs, for
up to 3 consecutive years, then subject to annual review of
each applicant's compliance with Board rules and regulations,
provisions of this Act and conditions contained in annual dates
orders issued by the Board, the Board may grant such dates and
programs to such applicants as so agreed by them if the Board
determines that the grant of these racing dates is in the best
interests of racing. The Board shall treat any such agreement
as the agreement signatories' joint and several application for
racing dates during the term of the agreement.
(c) Where 2 or more applicants propose to conduct horse

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race meetings within 35 miles of each other, as certified to
the Board under Section 19 (a) (1) of this Act, on conflicting
dates, the Board may determine and grant the number of racing
days to be awarded to the several applicants in accordance with
the provisions of subsection (e-5) of Section 20 of this Act.
(d) (Blank).
(e) Prior to the issuance of an organization license, the
applicant shall file with the Board a bond payable to the State
of Illinois in the sum of $200,000, executed by the applicant
and a surety company or companies authorized to do business in
this State, and conditioned upon the payment by the
organization licensee of all taxes due under Section 27, other
monies due and payable under this Act, all purses due and
payable, and that the organization licensee will upon
presentation of the winning ticket or tickets distribute all
sums due to the patrons of pari-mutuel pools. Beginning on the
date when any organization licensee begins conducting
electronic gaming pursuant to an electronic gaming license
issued under the Illinois Gambling Act, the amount of the bond
required under this subsection (e) shall be $500,000.
(f) Each organization license shall specify the person to
whom it is issued, the dates upon which horse racing is
permitted, and the location, place, track, or enclosure where
the horse race meeting is to be held.
(g) Any person who owns one or more race tracks within the
State may seek, in its own name, a separate organization

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license for each race track.
(h) All racing conducted under such organization license is
subject to this Act and to the rules and regulations from time
to time prescribed by the Board, and every such organization
license issued by the Board shall contain a recital to that
effect.
(i) Each such organization licensee may provide that at
least one race per day may be devoted to the racing of quarter
horses, appaloosas, arabians, or paints.
(j) In acting on applications for organization licenses,
the Board shall give weight to an organization license which
has implemented a good faith affirmative action effort to
recruit, train and upgrade minorities in all classifications
within the organization license.
(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
(230 ILCS 5/24) (from Ch. 8, par. 37-24)
Sec. 24. (a) No license shall be issued to or held by an
organization licensee unless all of its officers, directors,
and holders of ownership interests of at least 5% are first
approved by the Board. The Board shall not give approval of an
organization license application to any person who has been
convicted of or is under an indictment for a crime of moral
turpitude or has violated any provision of the racing law of
this State or any rules of the Board.
(b) An organization licensee must notify the Board within

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10 days of any change in the holders of a direct or indirect
interest in the ownership of the organization licensee. The
Board may, after hearing, revoke the organization license of
any person who registers on its books or knowingly permits a
direct or indirect interest in the ownership of that person
without notifying the Board of the name of the holder in
interest within this period.
(c) In addition to the provisions of subsection (a) of this
Section, no person shall be granted an organization license if
any public official of the State or member of his or her family
holds any ownership or financial interest, directly or
indirectly, in the person.
(d) No person which has been granted an organization
license to hold a race meeting shall give to any public
official or member of his family, directly or indirectly, for
or without consideration, any interest in the person. The Board
shall, after hearing, revoke the organization license granted
to a person which has violated this subsection.
(e) (Blank).
(f) No organization licensee or concessionaire or officer,
director or holder or controller of 5% or more legal or
beneficial interest in any organization licensee or concession
shall make any sort of gift or contribution that is prohibited
under Article 10 of the State Officials and Employees Ethics
Act of any kind or pay or give any money or other thing of value
to any person who is a public official, or a candidate or

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nominee for public office if that payment or gift is prohibited
under Article 10 of the State Officials and Employees Ethics
Act.
(Source: P.A. 89-16, eff. 5-30-95.)
(230 ILCS 5/25) (from Ch. 8, par. 37-25)
Sec. 25. Admission charge; bond; fine.
(a) There shall be paid to the Board at such time or times
as it shall prescribe, the sum of fifteen cents (15¢) for each
person entering the grounds or enclosure of each organization
licensee and inter-track wagering licensee upon a ticket of
admission except as provided in subsection (g) of Section 27 of
this Act. If tickets are issued for more than one day then the
sum of fifteen cents (15¢) shall be paid for each person using
such ticket on each day that the same shall be used. Provided,
however, that no charge shall be made on tickets of admission
issued to and in the name of directors, officers, agents or
employees of the organization licensee, or inter-track
wagering licensee, or to owners, trainers, jockeys, drivers and
their employees or to any person or persons entering the
grounds or enclosure for the transaction of business in
connection with such race meeting. The organization licensee or
inter-track wagering licensee may, if it desires, collect such
amount from each ticket holder in addition to the amount or
amounts charged for such ticket of admission. Beginning on the
date when any organization licensee begins conducting

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electronic gaming pursuant to an electronic gaming license
issued under the Illinois Gambling Act, the admission charge
imposed by this subsection (a) shall be 40 cents for each
person entering the grounds or enclosure of each organization
licensee and inter-track wagering licensee upon a ticket of
admission, and if such tickets are issued for more than one
day, 40 cents shall be paid for each person using such ticket
on each day that the same shall be used.
(b) Accurate records and books shall at all times be kept
and maintained by the organization licensees and inter-track
wagering licensees showing the admission tickets issued and
used on each racing day and the attendance thereat of each
horse racing meeting. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to the admission records of any organization
licensee and inter-track wagering licensee for the purpose of
examining and checking the same and ascertaining whether or not
the proper amount has been or is being paid the State of
Illinois as herein provided. The Board shall also require,
before issuing any license, that the licensee shall execute and
deliver to it a bond, payable to the State of Illinois, in such
sum as it shall determine, not, however, in excess of fifty
thousand dollars ($50,000), with a surety or sureties to be
approved by it, conditioned for the payment of all sums due and
payable or collected by it under this Section upon admission
fees received for any particular racing meetings. The Board may

HB5146 - 225 - LRB100 18631 SMS 33856 b
also from time to time require sworn statements of the number
or numbers of such admissions and may prescribe blanks upon
which such reports shall be made. Any organization licensee or
inter-track wagering licensee failing or refusing to pay the
amount found to be due as herein provided, shall be deemed
guilty of a business offense and upon conviction shall be
punished by a fine of not more than five thousand dollars
($5,000) in addition to the amount due from such organization
licensee or inter-track wagering licensee as herein provided.
All fines paid into court by an organization licensee or
inter-track wagering licensee found guilty of violating this
Section shall be transmitted and paid over by the clerk of the
court to the Board. Beginning on the date when any organization
licensee begins conducting electronic gaming pursuant to an
electronic gaming license issued under the Illinois Gambling
Act, any fine imposed pursuant to this subsection (b) shall not
exceed $10,000.
(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
(230 ILCS 5/26) (from Ch. 8, par. 37-26)
Sec. 26. Wagering.
(a) Any licensee may conduct and supervise the pari-mutuel
system of wagering, as defined in Section 3.12 of this Act, on
horse races conducted by an Illinois organization licensee or
conducted at a racetrack located in another state or country
and televised in Illinois in accordance with subsection (g) of

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Section 26 of this Act. Subject to the prior consent of the
Board, licensees may supplement any pari-mutuel pool in order
to guarantee a minimum distribution. Such pari-mutuel method of
wagering shall not, under any circumstances if conducted under
the provisions of this Act, be held or construed to be
unlawful, other statutes of this State to the contrary
notwithstanding. Subject to rules for advance wagering
promulgated by the Board, any licensee may accept wagers in
advance of the day of the race wagered upon occurs.
(b) Except for those gaming activities for which a license
is obtained and authorized under the Illinois Lottery Law, the
Charitable Games Act, the Raffles and Poker Runs Act, or the
Illinois Gambling Act, no No other method of betting, pool
making, wagering or gambling shall be used or permitted by the
licensee. Each licensee may retain, subject to the payment of
all applicable taxes and purses, an amount not to exceed 17% of
all money wagered under subsection (a) of this Section, except
as may otherwise be permitted under this Act.
(b-5) An individual may place a wager under the pari-mutuel
system from any licensed location authorized under this Act
provided that wager is electronically recorded in the manner
described in Section 3.12 of this Act. Any wager made
electronically by an individual while physically on the
premises of a licensee shall be deemed to have been made at the
premises of that licensee.
(c) Until January 1, 2000, the sum held by any licensee for

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payment of outstanding pari-mutuel tickets, if unclaimed prior
to December 31 of the next year, shall be retained by the
licensee for payment of such tickets until that date. Within 10
days thereafter, the balance of such sum remaining unclaimed,
less any uncashed supplements contributed by such licensee for
the purpose of guaranteeing minimum distributions of any
pari-mutuel pool, shall be paid to the Illinois Veterans'
Rehabilitation Fund of the State treasury, except as provided
in subsection (g) of Section 27 of this Act.
(c-5) Beginning January 1, 2000, the sum held by any
licensee for payment of outstanding pari-mutuel tickets, if
unclaimed prior to December 31 of the next year, shall be
retained by the licensee for payment of such tickets until that
date. Within 10 days thereafter, the balance of such sum
remaining unclaimed, less any uncashed supplements contributed
by such licensee for the purpose of guaranteeing minimum
distributions of any pari-mutuel pool, shall be evenly
distributed to the purse account of the organization licensee
and the organization licensee.
(d) A pari-mutuel ticket shall be honored until December 31
of the next calendar year, and the licensee shall pay the same
and may charge the amount thereof against unpaid money
similarly accumulated on account of pari-mutuel tickets not
presented for payment.
(e) No licensee shall knowingly permit any minor, other
than an employee of such licensee or an owner, trainer, jockey,

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driver, or employee thereof, to be admitted during a racing
program unless accompanied by a parent or guardian, or any
minor to be a patron of the pari-mutuel system of wagering
conducted or supervised by it. The admission of any
unaccompanied minor, other than an employee of the licensee or
an owner, trainer, jockey, driver, or employee thereof at a
race track is a Class C misdemeanor.
(f) Notwithstanding the other provisions of this Act, an
organization licensee may contract with an entity in another
state or country to permit any legal wagering entity in another
state or country to accept wagers solely within such other
state or country on races conducted by the organization
licensee in this State. Beginning January 1, 2000, these wagers
shall not be subject to State taxation. Until January 1, 2000,
when the out-of-State entity conducts a pari-mutuel pool
separate from the organization licensee, a privilege tax equal
to 7 1/2% of all monies received by the organization licensee
from entities in other states or countries pursuant to such
contracts is imposed on the organization licensee, and such
privilege tax shall be remitted to the Department of Revenue
within 48 hours of receipt of the moneys from the simulcast.
When the out-of-State entity conducts a combined pari-mutuel
pool with the organization licensee, the tax shall be 10% of
all monies received by the organization licensee with 25% of
the receipts from this 10% tax to be distributed to the county
in which the race was conducted.

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An organization licensee may permit one or more of its
races to be utilized for pari-mutuel wagering at one or more
locations in other states and may transmit audio and visual
signals of races the organization licensee conducts to one or
more locations outside the State or country and may also permit
pari-mutuel pools in other states or countries to be combined
with its gross or net wagering pools or with wagering pools
established by other states.
(g) A host track may accept interstate simulcast wagers on
horse races conducted in other states or countries and shall
control the number of signals and types of breeds of racing in
its simulcast program, subject to the disapproval of the Board.
The Board may prohibit a simulcast program only if it finds
that the simulcast program is clearly adverse to the integrity
of racing. The host track simulcast program shall include the
signal of live racing of all organization licensees. All
non-host licensees and advance deposit wagering licensees
shall carry the signal of and accept wagers on live racing of
all organization licensees. Advance deposit wagering licensees
shall not be permitted to accept out-of-state wagers on any
Illinois signal provided pursuant to this Section without the
approval and consent of the organization licensee providing the
signal. For one year after August 15, 2014 (the effective date
of Public Act 98-968), non-host licensees may carry the host
track simulcast program and shall accept wagers on all races
included as part of the simulcast program of horse races

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conducted at race tracks located within North America upon
which wagering is permitted. For a period of one year after
August 15, 2014 (the effective date of Public Act 98-968), on
horse races conducted at race tracks located outside of North
America, non-host licensees may accept wagers on all races
included as part of the simulcast program upon which wagering
is permitted. Beginning August 15, 2015 (one year after the
effective date of Public Act 98-968), non-host licensees may
carry the host track simulcast program and shall accept wagers
on all races included as part of the simulcast program upon
which wagering is permitted. All organization licensees shall
provide their live signal to all advance deposit wagering
licensees for a simulcast commission fee not to exceed 6% of
the advance deposit wagering licensee's Illinois handle on the
organization licensee's signal without prior approval by the
Board. The Board may adopt rules under which it may permit
simulcast commission fees in excess of 6%. The Board shall
adopt rules limiting the interstate commission fees charged to
an advance deposit wagering licensee. The Board shall adopt
rules regarding advance deposit wagering on interstate
simulcast races that shall reflect, among other things, the
General Assembly's desire to maximize revenues to the State,
horsemen purses, and organizational licensees. However,
organization licensees providing live signals pursuant to the
requirements of this subsection (g) may petition the Board to
withhold their live signals from an advance deposit wagering

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licensee if the organization licensee discovers and the Board
finds reputable or credible information that the advance
deposit wagering licensee is under investigation by another
state or federal governmental agency, the advance deposit
wagering licensee's license has been suspended in another
state, or the advance deposit wagering licensee's license is in
revocation proceedings in another state. The organization
licensee's provision of their live signal to an advance deposit
wagering licensee under this subsection (g) pertains to wagers
placed from within Illinois. Advance deposit wagering
licensees may place advance deposit wagering terminals at
wagering facilities as a convenience to customers. The advance
deposit wagering licensee shall not charge or collect any fee
from purses for the placement of the advance deposit wagering
terminals. The costs and expenses of the host track and
non-host licensees associated with interstate simulcast
wagering, other than the interstate commission fee, shall be
borne by the host track and all non-host licensees incurring
these costs. The interstate commission fee shall not exceed 5%
of Illinois handle on the interstate simulcast race or races
without prior approval of the Board. The Board shall promulgate
rules under which it may permit interstate commission fees in
excess of 5%. The interstate commission fee and other fees
charged by the sending racetrack, including, but not limited
to, satellite decoder fees, shall be uniformly applied to the
host track and all non-host licensees.

HB5146 - 232 - LRB100 18631 SMS 33856 b
Notwithstanding any other provision of this Act, through
December 31, 2018, an organization licensee, with the consent
of the horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
maintain a system whereby advance deposit wagering may take
place or an organization licensee, with the consent of the
horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
contract with another person to carry out a system of advance
deposit wagering. Such consent may not be unreasonably
withheld. Only with respect to an appeal to the Board that
consent for an organization licensee that maintains its own
advance deposit wagering system is being unreasonably
withheld, the Board shall issue a final order within 30 days
after initiation of the appeal, and the organization licensee's
advance deposit wagering system may remain operational during
that 30-day period. The actions of any organization licensee
who conducts advance deposit wagering or any person who has a
contract with an organization licensee to conduct advance
deposit wagering who conducts advance deposit wagering on or
after January 1, 2013 and prior to June 7, 2013 (the effective
date of Public Act 98-18) taken in reliance on the changes made
to this subsection (g) by Public Act 98-18 are hereby
validated, provided payment of all applicable pari-mutuel

HB5146 - 233 - LRB100 18631 SMS 33856 b
taxes are remitted to the Board. All advance deposit wagers
placed from within Illinois must be placed through a
Board-approved advance deposit wagering licensee; no other
entity may accept an advance deposit wager from a person within
Illinois. All advance deposit wagering is subject to any rules
adopted by the Board. The Board may adopt rules necessary to
regulate advance deposit wagering through the use of emergency
rulemaking in accordance with Section 5-45 of the Illinois
Administrative Procedure Act. The General Assembly finds that
the adoption of rules to regulate advance deposit wagering is
deemed an emergency and necessary for the public interest,
safety, and welfare. An advance deposit wagering licensee may
retain all moneys as agreed to by contract with an organization
licensee. Any moneys retained by the organization licensee from
advance deposit wagering, not including moneys retained by the
advance deposit wagering licensee, shall be paid 50% to the
organization licensee's purse account and 50% to the
organization licensee. With the exception of any organization
licensee that is owned by a publicly traded company that is
incorporated in a state other than Illinois and advance deposit
wagering licensees under contract with such organization
licensees, organization licensees that maintain advance
deposit wagering systems and advance deposit wagering
licensees that contract with organization licensees shall
provide sufficiently detailed monthly accountings to the
horsemen association representing the largest number of

HB5146 - 234 - LRB100 18631 SMS 33856 b
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting so that
the horsemen association, as an interested party, can confirm
the accuracy of the amounts paid to the purse account at the
horsemen association's affiliated organization licensee from
advance deposit wagering. If more than one breed races at the
same race track facility, then the 50% of the moneys to be paid
to an organization licensee's purse account shall be allocated
among all organization licensees' purse accounts operating at
that race track facility proportionately based on the actual
number of host days that the Board grants to that breed at that
race track facility in the current calendar year. To the extent
any fees from advance deposit wagering conducted in Illinois
for wagers in Illinois or other states have been placed in
escrow or otherwise withheld from wagers pending a
determination of the legality of advance deposit wagering, no
action shall be brought to declare such wagers or the
disbursement of any fees previously escrowed illegal.
(1) Between the hours of 6:30 a.m. and 6:30 p.m. an
inter-track wagering licensee other than the host track may
supplement the host track simulcast program with
additional simulcast races or race programs, provided that
between January 1 and the third Friday in February of any
year, inclusive, if no live thoroughbred racing is
occurring in Illinois during this period, only
thoroughbred races may be used for supplemental interstate

HB5146 - 235 - LRB100 18631 SMS 33856 b
simulcast purposes. The Board shall withhold approval for a
supplemental interstate simulcast only if it finds that the
simulcast is clearly adverse to the integrity of racing. A
supplemental interstate simulcast may be transmitted from
an inter-track wagering licensee to its affiliated
non-host licensees. The interstate commission fee for a
supplemental interstate simulcast shall be paid by the
non-host licensee and its affiliated non-host licensees
receiving the simulcast.
(2) Between the hours of 6:30 p.m. and 6:30 a.m. an
inter-track wagering licensee other than the host track may
receive supplemental interstate simulcasts only with the
consent of the host track, except when the Board finds that
the simulcast is clearly adverse to the integrity of
racing. Consent granted under this paragraph (2) to any
inter-track wagering licensee shall be deemed consent to
all non-host licensees. The interstate commission fee for
the supplemental interstate simulcast shall be paid by all
participating non-host licensees.
(3) Each licensee conducting interstate simulcast
wagering may retain, subject to the payment of all
applicable taxes and the purses, an amount not to exceed
17% of all money wagered. If any licensee conducts the
pari-mutuel system wagering on races conducted at
racetracks in another state or country, each such race or
race program shall be considered a separate racing day for

HB5146 - 236 - LRB100 18631 SMS 33856 b
the purpose of determining the daily handle and computing
the privilege tax of that daily handle as provided in
subsection (a) of Section 27. Until January 1, 2000, from
the sums permitted to be retained pursuant to this
subsection, each inter-track wagering location licensee
shall pay 1% of the pari-mutuel handle wagered on simulcast
wagering to the Horse Racing Tax Allocation Fund, subject
to the provisions of subparagraph (B) of paragraph (11) of
subsection (h) of Section 26 of this Act.
(4) A licensee who receives an interstate simulcast may
combine its gross or net pools with pools at the sending
racetracks pursuant to rules established by the Board. All
licensees combining their gross pools at a sending
racetrack shall adopt the take-out percentages of the
sending racetrack. A licensee may also establish a separate
pool and takeout structure for wagering purposes on races
conducted at race tracks outside of the State of Illinois.
The licensee may permit pari-mutuel wagers placed in other
states or countries to be combined with its gross or net
wagering pools or other wagering pools.
(5) After the payment of the interstate commission fee
(except for the interstate commission fee on a supplemental
interstate simulcast, which shall be paid by the host track
and by each non-host licensee through the host-track) and
all applicable State and local taxes, except as provided in
subsection (g) of Section 27 of this Act, the remainder of

HB5146 - 237 - LRB100 18631 SMS 33856 b
moneys retained from simulcast wagering pursuant to this
subsection (g), and Section 26.2 shall be divided as
follows:
(A) For interstate simulcast wagers made at a host
track, 50% to the host track and 50% to purses at the
host track.
(B) For wagers placed on interstate simulcast
races, supplemental simulcasts as defined in
subparagraphs (1) and (2), and separately pooled races
conducted outside of the State of Illinois made at a
non-host licensee, 25% to the host track, 25% to the
non-host licensee, and 50% to the purses at the host
track.
(6) Notwithstanding any provision in this Act to the
contrary, non-host licensees who derive their licenses
from a track located in a county with a population in
excess of 230,000 and that borders the Mississippi River
may receive supplemental interstate simulcast races at all
times subject to Board approval, which shall be withheld
only upon a finding that a supplemental interstate
simulcast is clearly adverse to the integrity of racing.
(7) Notwithstanding any provision of this Act to the
contrary, after payment of all applicable State and local
taxes and interstate commission fees, non-host licensees
who derive their licenses from a track located in a county
with a population in excess of 230,000 and that borders the

HB5146 - 238 - LRB100 18631 SMS 33856 b
Mississippi River shall retain 50% of the retention from
interstate simulcast wagers and shall pay 50% to purses at
the track from which the non-host licensee derives its
license as follows:
(A) Between January 1 and the third Friday in
February, inclusive, if no live thoroughbred racing is
occurring in Illinois during this period, when the
interstate simulcast is a standardbred race, the purse
share to its standardbred purse account;
(B) Between January 1 and the third Friday in
February, inclusive, if no live thoroughbred racing is
occurring in Illinois during this period, and the
interstate simulcast is a thoroughbred race, the purse
share to its interstate simulcast purse pool to be
distributed under paragraph (10) of this subsection
(g);
(C) Between January 1 and the third Friday in
February, inclusive, if live thoroughbred racing is
occurring in Illinois, between 6:30 a.m. and 6:30 p.m.
the purse share from wagers made during this time
period to its thoroughbred purse account and between
6:30 p.m. and 6:30 a.m. the purse share from wagers
made during this time period to its standardbred purse
accounts;
(D) Between the third Saturday in February and
December 31, when the interstate simulcast occurs

HB5146 - 239 - LRB100 18631 SMS 33856 b
between the hours of 6:30 a.m. and 6:30 p.m., the purse
share to its thoroughbred purse account;
(E) Between the third Saturday in February and
December 31, when the interstate simulcast occurs
between the hours of 6:30 p.m. and 6:30 a.m., the purse
share to its standardbred purse account.
(7.1) Notwithstanding any other provision of this Act
to the contrary, if no standardbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 p.m. and 6:30
a.m. during that calendar year shall be paid as follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many
racing dates as were conducted in calendar year 2000,
80% shall be paid to its thoroughbred purse account;
and
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund and shall
be paid to purses for standardbred races for Illinois
conceived and foaled horses conducted at any county
fairgrounds. The moneys deposited into the Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall

HB5146 - 240 - LRB100 18631 SMS 33856 b
be in addition to and not in lieu of any other moneys
paid to standardbred purses under this Act, and shall
not be commingled with other moneys paid into that
Fund. The moneys deposited pursuant to this
subparagraph (B) shall be allocated as provided by the
Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund
Advisory Board.
(7.2) Notwithstanding any other provision of this Act
to the contrary, if no thoroughbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 a.m. and 6:30
p.m. during that calendar year shall be deposited as
follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many
racing dates as were conducted in calendar year 2000,
80% shall be deposited into its standardbred purse
account; and
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund. Moneys
deposited into the Illinois Colt Stakes Purse
Distribution Fund pursuant to this subparagraph (B)

HB5146 - 241 - LRB100 18631 SMS 33856 b
shall be paid to Illinois conceived and foaled
thoroughbred breeders' programs and to thoroughbred
purses for races conducted at any county fairgrounds
for Illinois conceived and foaled horses at the
discretion of the Department of Agriculture, with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. The moneys deposited
into the Illinois Colt Stakes Purse Distribution Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall
be in addition to and not in lieu of any other moneys
paid to thoroughbred purses under this Act, and shall
not be commingled with other moneys deposited into that
Fund.
(7.3) If no live standardbred racing is conducted at a
racetrack located in Madison County in calendar year 2000
or 2001, an organization licensee who is licensed to
conduct horse racing at that racetrack shall, before
January 1, 2002, pay all moneys derived from simulcast
wagering and inter-track wagering in calendar years 2000
and 2001 and paid into the licensee's standardbred purse
account as follows:
(A) Eighty percent to that licensee's thoroughbred
purse account to be used for thoroughbred purses; and
(B) Twenty percent to the Illinois Colt Stakes
Purse Distribution Fund.

HB5146 - 242 - LRB100 18631 SMS 33856 b
Failure to make the payment to the Illinois Colt Stakes
Purse Distribution Fund before January 1, 2002 shall result
in the immediate revocation of the licensee's organization
license, inter-track wagering license, and inter-track
wagering location license.
Moneys paid into the Illinois Colt Stakes Purse
Distribution Fund pursuant to this paragraph (7.3) shall be
paid to purses for standardbred races for Illinois
conceived and foaled horses conducted at any county
fairgrounds. Moneys paid into the Illinois Colt Stakes
Purse Distribution Fund pursuant to this paragraph (7.3)
shall be used as determined by the Department of
Agriculture, with the advice and assistance of the Illinois
Standardbred Breeders Fund Advisory Board, shall be in
addition to and not in lieu of any other moneys paid to
standardbred purses under this Act, and shall not be
commingled with any other moneys paid into that Fund.
(7.4) If live standardbred racing is conducted at a
racetrack located in Madison County at any time in calendar
year 2001 before the payment required under paragraph (7.3)
has been made, the organization licensee who is licensed to
conduct racing at that racetrack shall pay all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering during calendar years 2000 and 2001
that (1) are to be used for purses and (2) are generated
between the hours of 6:30 p.m. and 6:30 a.m. during 2000 or

HB5146 - 243 - LRB100 18631 SMS 33856 b
2001 to the standardbred purse account at that racetrack to
be used for standardbred purses.
(8) Notwithstanding any provision in this Act to the
contrary, an organization licensee from a track located in
a county with a population in excess of 230,000 and that
borders the Mississippi River and its affiliated non-host
licensees shall not be entitled to share in any retention
generated on racing, inter-track wagering, or simulcast
wagering at any other Illinois wagering facility.
(8.1) Notwithstanding any provisions in this Act to the
contrary, if 2 organization licensees are conducting
standardbred race meetings concurrently between the hours
of 6:30 p.m. and 6:30 a.m., after payment of all applicable
State and local taxes and interstate commission fees, the
remainder of the amount retained from simulcast wagering
otherwise attributable to the host track and to host track
purses shall be split daily between the 2 organization
licensees and the purses at the tracks of the 2
organization licensees, respectively, based on each
organization licensee's share of the total live handle for
that day, provided that this provision shall not apply to
any non-host licensee that derives its license from a track
located in a county with a population in excess of 230,000
and that borders the Mississippi River.
(9) (Blank).
(10) (Blank).

HB5146 - 244 - LRB100 18631 SMS 33856 b
(11) (Blank).
(12) The Board shall have authority to compel all host
tracks to receive the simulcast of any or all races
conducted at the Springfield or DuQuoin State fairgrounds
and include all such races as part of their simulcast
programs.
(13) Notwithstanding any other provision of this Act,
in the event that the total Illinois pari-mutuel handle on
Illinois horse races at all wagering facilities in any
calendar year is less than 75% of the total Illinois
pari-mutuel handle on Illinois horse races at all such
wagering facilities for calendar year 1994, then each
wagering facility that has an annual total Illinois
pari-mutuel handle on Illinois horse races that is less
than 75% of the total Illinois pari-mutuel handle on
Illinois horse races at such wagering facility for calendar
year 1994, shall be permitted to receive, from any amount
otherwise payable to the purse account at the race track
with which the wagering facility is affiliated in the
succeeding calendar year, an amount equal to 2% of the
differential in total Illinois pari-mutuel handle on
Illinois horse races at the wagering facility between that
calendar year in question and 1994 provided, however, that
a wagering facility shall not be entitled to any such
payment until the Board certifies in writing to the
wagering facility the amount to which the wagering facility

HB5146 - 245 - LRB100 18631 SMS 33856 b
is entitled and a schedule for payment of the amount to the
wagering facility, based on: (i) the racing dates awarded
to the race track affiliated with the wagering facility
during the succeeding year; (ii) the sums available or
anticipated to be available in the purse account of the
race track affiliated with the wagering facility for purses
during the succeeding year; and (iii) the need to ensure
reasonable purse levels during the payment period. The
Board's certification shall be provided no later than
January 31 of the succeeding year. In the event a wagering
facility entitled to a payment under this paragraph (13) is
affiliated with a race track that maintains purse accounts
for both standardbred and thoroughbred racing, the amount
to be paid to the wagering facility shall be divided
between each purse account pro rata, based on the amount of
Illinois handle on Illinois standardbred and thoroughbred
racing respectively at the wagering facility during the
previous calendar year. Annually, the General Assembly
shall appropriate sufficient funds from the General
Revenue Fund to the Department of Agriculture for payment
into the thoroughbred and standardbred horse racing purse
accounts at Illinois pari-mutuel tracks. The amount paid to
each purse account shall be the amount certified by the
Illinois Racing Board in January to be transferred from
each account to each eligible racing facility in accordance
with the provisions of this Section. Beginning in the

HB5146 - 246 - LRB100 18631 SMS 33856 b
calendar year in which an organization licensee that is
eligible to receive payment under this paragraph (13)
begins to receive funds from electronic gaming, the amount
of the payment due to all wagering facilities licensed
under that organization licensee under this paragraph (13)
shall be the amount certified by the Board in January of
that year. An organization licensee and its related
wagering facilities shall no longer be able to receive
payments under this paragraph (13) beginning in the year
subsequent to the first year in which the organization
licensee begins to receive funds from electronic gaming.
(h) The Board may approve and license the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location licensees
subject to the following terms and conditions:
(1) Any person licensed to conduct a race meeting (i)
at a track where 60 or more days of racing were conducted
during the immediately preceding calendar year or where
over the 5 immediately preceding calendar years an average
of 30 or more days of racing were conducted annually may be
issued an inter-track wagering license; (ii) at a track
located in a county that is bounded by the Mississippi
River, which has a population of less than 150,000
according to the 1990 decennial census, and an average of
at least 60 days of racing per year between 1985 and 1993
may be issued an inter-track wagering license; or (iii) at

HB5146 - 247 - LRB100 18631 SMS 33856 b
a track awarded standardbred racing dates in 2019 and
thereafter; or (iv) at a track located in Madison County
that conducted at least 100 days of live racing during the
immediately preceding calendar year may be issued an
inter-track wagering license, unless a lesser schedule of
live racing is the result of (A) weather, unsafe track
conditions, or other acts of God; (B) an agreement between
the organization licensee and the associations
representing the largest number of owners, trainers,
jockeys, or standardbred drivers who race horses at that
organization licensee's racing meeting; or (C) a finding by
the Board of extraordinary circumstances and that it was in
the best interest of the public and the sport to conduct
fewer than 100 days of live racing. Any such person having
operating control of the racing facility may receive
inter-track wagering location licenses. An eligible race
track located in a county that has a population of more
than 230,000 and that is bounded by the Mississippi River
may establish up to 9 inter-track wagering locations, an
eligible race track located in Stickney Township in Cook
County may establish up to 16 inter-track wagering
locations, and an eligible race track located in Palatine
Township in Cook County may establish up to 18 inter-track
wagering locations. An eligible race track conducting
standardbred racing may have up to 9 inter-track wagering
locations. An application for said license shall be filed

HB5146 - 248 - LRB100 18631 SMS 33856 b
with the Board prior to such dates as may be fixed by the
Board. With an application for an inter-track wagering
location license there shall be delivered to the Board a
certified check or bank draft payable to the order of the
Board for an amount equal to $500. The application shall be
on forms prescribed and furnished by the Board. The
application shall comply with all other rules, regulations
and conditions imposed by the Board in connection
therewith.
(2) The Board shall examine the applications with
respect to their conformity with this Act and the rules and
regulations imposed by the Board. If found to be in
compliance with the Act and rules and regulations of the
Board, the Board may then issue a license to conduct
inter-track wagering and simulcast wagering to such
applicant. All such applications shall be acted upon by the
Board at a meeting to be held on such date as may be fixed
by the Board.
(3) In granting licenses to conduct inter-track
wagering and simulcast wagering, the Board shall give due
consideration to the best interests of the public, of horse
racing, and of maximizing revenue to the State.
(4) Prior to the issuance of a license to conduct
inter-track wagering and simulcast wagering, the applicant
shall file with the Board a bond payable to the State of
Illinois in the sum of $50,000, executed by the applicant

HB5146 - 249 - LRB100 18631 SMS 33856 b
and a surety company or companies authorized to do business
in this State, and conditioned upon (i) the payment by the
licensee of all taxes due under Section 27 or 27.1 and any
other monies due and payable under this Act, and (ii)
distribution by the licensee, upon presentation of the
winning ticket or tickets, of all sums payable to the
patrons of pari-mutuel pools.
(5) Each license to conduct inter-track wagering and
simulcast wagering shall specify the person to whom it is
issued, the dates on which such wagering is permitted, and
the track or location where the wagering is to be
conducted.
(6) All wagering under such license is subject to this
Act and to the rules and regulations from time to time
prescribed by the Board, and every such license issued by
the Board shall contain a recital to that effect.
(7) An inter-track wagering licensee or inter-track
wagering location licensee may accept wagers at the track
or location where it is licensed, or as otherwise provided
under this Act.
(8) Inter-track wagering or simulcast wagering shall
not be conducted at any track less than 4 5 miles from a
track at which a racing meeting is in progress.
(8.1) Inter-track wagering location licensees who
derive their licenses from a particular organization
licensee shall conduct inter-track wagering and simulcast

HB5146 - 250 - LRB100 18631 SMS 33856 b
wagering only at locations that are within 160 miles of
that race track where the particular organization licensee
is licensed to conduct racing. However, inter-track
wagering and simulcast wagering shall not be conducted by
those licensees at any location within 5 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made. In the case of any inter-track
wagering location licensee initially licensed after
December 31, 2013, inter-track wagering and simulcast
wagering shall not be conducted by those inter-track
wagering location licensees that are located outside the
City of Chicago at any location within 8 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made.
(8.2) Inter-track wagering or simulcast wagering shall
not be conducted by an inter-track wagering location
licensee at any location within 500 feet of an existing
church, an or existing elementary or secondary public

HB5146 - 251 - LRB100 18631 SMS 33856 b
school, or an existing elementary or secondary private
school registered with or recognized by the State Board of
Education school, nor within 500 feet of the residences of
more than 50 registered voters without receiving written
permission from a majority of the registered voters at such
residences. Such written permission statements shall be
filed with the Board. The distance of 500 feet shall be
measured to the nearest part of any building used for
worship services, education programs, residential
purposes, or conducting inter-track wagering by an
inter-track wagering location licensee, and not to
property boundaries. However, inter-track wagering or
simulcast wagering may be conducted at a site within 500
feet of a church, school or residences of 50 or more
registered voters if such church, school or residences have
been erected or established, or such voters have been
registered, after the Board issues the original
inter-track wagering location license at the site in
question. Inter-track wagering location licensees may
conduct inter-track wagering and simulcast wagering only
in areas that are zoned for commercial or manufacturing
purposes or in areas for which a special use has been
approved by the local zoning authority. However, no license
to conduct inter-track wagering and simulcast wagering
shall be granted by the Board with respect to any
inter-track wagering location within the jurisdiction of

HB5146 - 252 - LRB100 18631 SMS 33856 b
any local zoning authority which has, by ordinance or by
resolution, prohibited the establishment of an inter-track
wagering location within its jurisdiction. However,
inter-track wagering and simulcast wagering may be
conducted at a site if such ordinance or resolution is
enacted after the Board licenses the original inter-track
wagering location licensee for the site in question.
(9) (Blank).
(10) An inter-track wagering licensee or an
inter-track wagering location licensee may retain, subject
to the payment of the privilege taxes and the purses, an
amount not to exceed 17% of all money wagered. Each program
of racing conducted by each inter-track wagering licensee
or inter-track wagering location licensee shall be
considered a separate racing day for the purpose of
determining the daily handle and computing the privilege
tax or pari-mutuel tax on such daily handle as provided in
Section 27.
(10.1) Except as provided in subsection (g) of Section
27 of this Act, inter-track wagering location licensees
shall pay 1% of the pari-mutuel handle at each location to
the municipality in which such location is situated and 1%
of the pari-mutuel handle at each location to the county in
which such location is situated. In the event that an
inter-track wagering location licensee is situated in an
unincorporated area of a county, such licensee shall pay 2%

HB5146 - 253 - LRB100 18631 SMS 33856 b
of the pari-mutuel handle from such location to such
county.
(10.2) Notwithstanding any other provision of this
Act, with respect to inter-track wagering at a race track
located in a county that has a population of more than
230,000 and that is bounded by the Mississippi River ("the
first race track"), or at a facility operated by an
inter-track wagering licensee or inter-track wagering
location licensee that derives its license from the
organization licensee that operates the first race track,
on races conducted at the first race track or on races
conducted at another Illinois race track and
simultaneously televised to the first race track or to a
facility operated by an inter-track wagering licensee or
inter-track wagering location licensee that derives its
license from the organization licensee that operates the
first race track, those moneys shall be allocated as
follows:
(A) That portion of all moneys wagered on
standardbred racing that is required under this Act to
be paid to purses shall be paid to purses for
standardbred races.
(B) That portion of all moneys wagered on
thoroughbred racing that is required under this Act to
be paid to purses shall be paid to purses for
thoroughbred races.

HB5146 - 254 - LRB100 18631 SMS 33856 b
(11) (A) After payment of the privilege or pari-mutuel
tax, any other applicable taxes, and the costs and expenses
in connection with the gathering, transmission, and
dissemination of all data necessary to the conduct of
inter-track wagering, the remainder of the monies retained
under either Section 26 or Section 26.2 of this Act by the
inter-track wagering licensee on inter-track wagering
shall be allocated with 50% to be split between the 2
participating licensees and 50% to purses, except that an
inter-track wagering licensee that derives its license
from a track located in a county with a population in
excess of 230,000 and that borders the Mississippi River
shall not divide any remaining retention with the Illinois
organization licensee that provides the race or races, and
an inter-track wagering licensee that accepts wagers on
races conducted by an organization licensee that conducts a
race meet in a county with a population in excess of
230,000 and that borders the Mississippi River shall not
divide any remaining retention with that organization
licensee.
(B) From the sums permitted to be retained pursuant to
this Act each inter-track wagering location licensee shall
pay (i) the privilege or pari-mutuel tax to the State; (ii)
4.75% of the pari-mutuel handle on inter-track wagering at
such location on races as purses, except that an
inter-track wagering location licensee that derives its

HB5146 - 255 - LRB100 18631 SMS 33856 b
license from a track located in a county with a population
in excess of 230,000 and that borders the Mississippi River
shall retain all purse moneys for its own purse account
consistent with distribution set forth in this subsection
(h), and inter-track wagering location licensees that
accept wagers on races conducted by an organization
licensee located in a county with a population in excess of
230,000 and that borders the Mississippi River shall
distribute all purse moneys to purses at the operating host
track; (iii) until January 1, 2000, except as provided in
subsection (g) of Section 27 of this Act, 1% of the
pari-mutuel handle wagered on inter-track wagering and
simulcast wagering at each inter-track wagering location
licensee facility to the Horse Racing Tax Allocation Fund,
provided that, to the extent the total amount collected and
distributed to the Horse Racing Tax Allocation Fund under
this subsection (h) during any calendar year exceeds the
amount collected and distributed to the Horse Racing Tax
Allocation Fund during calendar year 1994, that excess
amount shall be redistributed (I) to all inter-track
wagering location licensees, based on each licensee's
pro-rata share of the total handle from inter-track
wagering and simulcast wagering for all inter-track
wagering location licensees during the calendar year in
which this provision is applicable; then (II) the amounts
redistributed to each inter-track wagering location

HB5146 - 256 - LRB100 18631 SMS 33856 b
licensee as described in subpart (I) shall be further
redistributed as provided in subparagraph (B) of paragraph
(5) of subsection (g) of this Section 26 provided first,
that the shares of those amounts, which are to be
redistributed to the host track or to purses at the host
track under subparagraph (B) of paragraph (5) of subsection
(g) of this Section 26 shall be redistributed based on each
host track's pro rata share of the total inter-track
wagering and simulcast wagering handle at all host tracks
during the calendar year in question, and second, that any
amounts redistributed as described in part (I) to an
inter-track wagering location licensee that accepts wagers
on races conducted by an organization licensee that
conducts a race meet in a county with a population in
excess of 230,000 and that borders the Mississippi River
shall be further redistributed as provided in
subparagraphs (D) and (E) of paragraph (7) of subsection
(g) of this Section 26, with the portion of that further
redistribution allocated to purses at that organization
licensee to be divided between standardbred purses and
thoroughbred purses based on the amounts otherwise
allocated to purses at that organization licensee during
the calendar year in question; and (iv) 8% of the
pari-mutuel handle on inter-track wagering wagered at such
location to satisfy all costs and expenses of conducting
its wagering. The remainder of the monies retained by the

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inter-track wagering location licensee shall be allocated
40% to the location licensee and 60% to the organization
licensee which provides the Illinois races to the location,
except that an inter-track wagering location licensee that
derives its license from a track located in a county with a
population in excess of 230,000 and that borders the
Mississippi River shall not divide any remaining retention
with the organization licensee that provides the race or
races and an inter-track wagering location licensee that
accepts wagers on races conducted by an organization
licensee that conducts a race meet in a county with a
population in excess of 230,000 and that borders the
Mississippi River shall not divide any remaining retention
with the organization licensee. Notwithstanding the
provisions of clauses (ii) and (iv) of this paragraph, in
the case of the additional inter-track wagering location
licenses authorized under paragraph (1) of this subsection
(h) by Public Act 87-110, those licensees shall pay the
following amounts as purses: during the first 12 months the
licensee is in operation, 5.25% of the pari-mutuel handle
wagered at the location on races; during the second 12
months, 5.25%; during the third 12 months, 5.75%; during
the fourth 12 months, 6.25%; and during the fifth 12 months
and thereafter, 6.75%. The following amounts shall be
retained by the licensee to satisfy all costs and expenses
of conducting its wagering: during the first 12 months the

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licensee is in operation, 8.25% of the pari-mutuel handle
wagered at the location; during the second 12 months,
8.25%; during the third 12 months, 7.75%; during the fourth
12 months, 7.25%; and during the fifth 12 months and
thereafter, 6.75%. For additional inter-track wagering
location licensees authorized under Public Act 89-16,
purses for the first 12 months the licensee is in operation
shall be 5.75% of the pari-mutuel wagered at the location,
purses for the second 12 months the licensee is in
operation shall be 6.25%, and purses thereafter shall be
6.75%. For additional inter-track location licensees
authorized under Public Act 89-16, the licensee shall be
allowed to retain to satisfy all costs and expenses: 7.75%
of the pari-mutuel handle wagered at the location during
its first 12 months of operation, 7.25% during its second
12 months of operation, and 6.75% thereafter.
(C) There is hereby created the Horse Racing Tax
Allocation Fund which shall remain in existence until
December 31, 1999. Moneys remaining in the Fund after
December 31, 1999 shall be paid into the General Revenue
Fund. Until January 1, 2000, all monies paid into the Horse
Racing Tax Allocation Fund pursuant to this paragraph (11)
by inter-track wagering location licensees located in park
districts of 500,000 population or less, or in a
municipality that is not included within any park district
but is included within a conservation district and is the

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county seat of a county that (i) is contiguous to the state
of Indiana and (ii) has a 1990 population of 88,257
according to the United States Bureau of the Census, and
operating on May 1, 1994 shall be allocated by
appropriation as follows:
Two-sevenths to the Department of Agriculture.
Fifty percent of this two-sevenths shall be used to
promote the Illinois horse racing and breeding
industry, and shall be distributed by the Department of
Agriculture upon the advice of a 9-member committee
appointed by the Governor consisting of the following
members: the Director of Agriculture, who shall serve
as chairman; 2 representatives of organization
licensees conducting thoroughbred race meetings in
this State, recommended by those licensees; 2
representatives of organization licensees conducting
standardbred race meetings in this State, recommended
by those licensees; a representative of the Illinois
Thoroughbred Breeders and Owners Foundation,
recommended by that Foundation; a representative of
the Illinois Standardbred Owners and Breeders
Association, recommended by that Association; a
representative of the Horsemen's Benevolent and
Protective Association or any successor organization
thereto established in Illinois comprised of the
largest number of owners and trainers, recommended by

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that Association or that successor organization; and a
representative of the Illinois Harness Horsemen's
Association, recommended by that Association.
Committee members shall serve for terms of 2 years,
commencing January 1 of each even-numbered year. If a
representative of any of the above-named entities has
not been recommended by January 1 of any even-numbered
year, the Governor shall appoint a committee member to
fill that position. Committee members shall receive no
compensation for their services as members but shall be
reimbursed for all actual and necessary expenses and
disbursements incurred in the performance of their
official duties. The remaining 50% of this
two-sevenths shall be distributed to county fairs for
premiums and rehabilitation as set forth in the
Agricultural Fair Act;
Four-sevenths to park districts or municipalities
that do not have a park district of 500,000 population
or less for museum purposes (if an inter-track wagering
location licensee is located in such a park district)
or to conservation districts for museum purposes (if an
inter-track wagering location licensee is located in a
municipality that is not included within any park
district but is included within a conservation
district and is the county seat of a county that (i) is
contiguous to the state of Indiana and (ii) has a 1990

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population of 88,257 according to the United States
Bureau of the Census, except that if the conservation
district does not maintain a museum, the monies shall
be allocated equally between the county and the
municipality in which the inter-track wagering
location licensee is located for general purposes) or
to a municipal recreation board for park purposes (if
an inter-track wagering location licensee is located
in a municipality that is not included within any park
district and park maintenance is the function of the
municipal recreation board and the municipality has a
1990 population of 9,302 according to the United States
Bureau of the Census); provided that the monies are
distributed to each park district or conservation
district or municipality that does not have a park
district in an amount equal to four-sevenths of the
amount collected by each inter-track wagering location
licensee within the park district or conservation
district or municipality for the Fund. Monies that were
paid into the Horse Racing Tax Allocation Fund before
August 9, 1991 (the effective date of Public Act
87-110) by an inter-track wagering location licensee
located in a municipality that is not included within
any park district but is included within a conservation
district as provided in this paragraph shall, as soon
as practicable after August 9, 1991 (the effective date

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of Public Act 87-110), be allocated and paid to that
conservation district as provided in this paragraph.
Any park district or municipality not maintaining a
museum may deposit the monies in the corporate fund of
the park district or municipality where the
inter-track wagering location is located, to be used
for general purposes; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967.
Until January 1, 2000, all other monies paid into the
Horse Racing Tax Allocation Fund pursuant to this paragraph
(11) shall be allocated by appropriation as follows:
Two-sevenths to the Department of Agriculture.
Fifty percent of this two-sevenths shall be used to
promote the Illinois horse racing and breeding
industry, and shall be distributed by the Department of
Agriculture upon the advice of a 9-member committee
appointed by the Governor consisting of the following
members: the Director of Agriculture, who shall serve
as chairman; 2 representatives of organization
licensees conducting thoroughbred race meetings in

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this State, recommended by those licensees; 2
representatives of organization licensees conducting
standardbred race meetings in this State, recommended
by those licensees; a representative of the Illinois
Thoroughbred Breeders and Owners Foundation,
recommended by that Foundation; a representative of
the Illinois Standardbred Owners and Breeders
Association, recommended by that Association; a
representative of the Horsemen's Benevolent and
Protective Association or any successor organization
thereto established in Illinois comprised of the
largest number of owners and trainers, recommended by
that Association or that successor organization; and a
representative of the Illinois Harness Horsemen's
Association, recommended by that Association.
Committee members shall serve for terms of 2 years,
commencing January 1 of each even-numbered year. If a
representative of any of the above-named entities has
not been recommended by January 1 of any even-numbered
year, the Governor shall appoint a committee member to
fill that position. Committee members shall receive no
compensation for their services as members but shall be
reimbursed for all actual and necessary expenses and
disbursements incurred in the performance of their
official duties. The remaining 50% of this
two-sevenths shall be distributed to county fairs for

HB5146 - 264 - LRB100 18631 SMS 33856 b
premiums and rehabilitation as set forth in the
Agricultural Fair Act;
Four-sevenths to museums and aquariums located in
park districts of over 500,000 population; provided
that the monies are distributed in accordance with the
previous year's distribution of the maintenance tax
for such museums and aquariums as provided in Section 2
of the Park District Aquarium and Museum Act; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967. This
subparagraph (C) shall be inoperative and of no force
and effect on and after January 1, 2000.
(D) Except as provided in paragraph (11) of this
subsection (h), with respect to purse allocation from
inter-track wagering, the monies so retained shall be
divided as follows:
(i) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is

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not conducting its own race meeting during the same
dates, then the entire purse allocation shall be to
purses at the track where the races wagered on are
being conducted.
(ii) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is
also conducting its own race meeting during the
same dates, then the purse allocation shall be as
follows: 50% to purses at the track where the races
wagered on are being conducted; 50% to purses at
the track where the inter-track wagering licensee
is accepting such wagers.
(iii) If the inter-track wagering is being
conducted by an inter-track wagering location
licensee, except an inter-track wagering location
licensee that derives its license from an
organization licensee located in a county with a
population in excess of 230,000 and bounded by the
Mississippi River, the entire purse allocation for
Illinois races shall be to purses at the track
where the race meeting being wagered on is being
held.
(12) The Board shall have all powers necessary and

HB5146 - 266 - LRB100 18631 SMS 33856 b
proper to fully supervise and control the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location
licensees, including, but not limited to the following:
(A) The Board is vested with power to promulgate
reasonable rules and regulations for the purpose of
administering the conduct of this wagering and to
prescribe reasonable rules, regulations and conditions
under which such wagering shall be held and conducted.
Such rules and regulations are to provide for the
prevention of practices detrimental to the public
interest and for the best interests of said wagering
and to impose penalties for violations thereof.
(B) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter
the facilities of any licensee to determine whether
there has been compliance with the provisions of this
Act and the rules and regulations relating to the
conduct of such wagering.
(C) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any
licensee's facilities, any person whose conduct or
reputation is such that his presence on such premises
may, in the opinion of the Board, call into the
question the honesty and integrity of, or interfere
with the orderly conduct of such wagering; provided,

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however, that no person shall be excluded or ejected
from such premises solely on the grounds of race,
color, creed, national origin, ancestry, or sex.
(D) (Blank).
(E) The Board is vested with the power to appoint
delegates to execute any of the powers granted to it
under this Section for the purpose of administering
this wagering and any rules and regulations
promulgated in accordance with this Act.
(F) The Board shall name and appoint a State
director of this wagering who shall be a representative
of the Board and whose duty it shall be to supervise
the conduct of inter-track wagering as may be provided
for by the rules and regulations of the Board; such
rules and regulation shall specify the method of
appointment and the Director's powers, authority and
duties.
(G) The Board is vested with the power to impose
civil penalties of up to $5,000 against individuals and
up to $10,000 against licensees for each violation of
any provision of this Act relating to the conduct of
this wagering, any rules adopted by the Board, any
order of the Board or any other action which in the
Board's discretion, is a detriment or impediment to
such wagering.
(13) The Department of Agriculture may enter into

HB5146 - 268 - LRB100 18631 SMS 33856 b
agreements with licensees authorizing such licensees to
conduct inter-track wagering on races to be held at the
licensed race meetings conducted by the Department of
Agriculture. Such agreement shall specify the races of the
Department of Agriculture's licensed race meeting upon
which the licensees will conduct wagering. In the event
that a licensee conducts inter-track pari-mutuel wagering
on races from the Illinois State Fair or DuQuoin State Fair
which are in addition to the licensee's previously approved
racing program, those races shall be considered a separate
racing day for the purpose of determining the daily handle
and computing the privilege or pari-mutuel tax on that
daily handle as provided in Sections 27 and 27.1. Such
agreements shall be approved by the Board before such
wagering may be conducted. In determining whether to grant
approval, the Board shall give due consideration to the
best interests of the public and of horse racing. The
provisions of paragraphs (1), (8), (8.1), and (8.2) of
subsection (h) of this Section which are not specified in
this paragraph (13) shall not apply to licensed race
meetings conducted by the Department of Agriculture at the
Illinois State Fair in Sangamon County or the DuQuoin State
Fair in Perry County, or to any wagering conducted on those
race meetings.
(14) An inter-track wagering location license
authorized by the Board in 2016 that is owned and operated

HB5146 - 269 - LRB100 18631 SMS 33856 b
by a race track in Rock Island County shall be transferred
to a commonly owned race track in Cook County on August 12,
2016 (the effective date of Public Act 99-757). The
licensee shall retain its status in relation to purse
distribution under paragraph (11) of this subsection (h)
following the transfer to the new entity. The pari-mutuel
tax credit under Section 32.1 shall not be applied toward
any pari-mutuel tax obligation of the inter-track wagering
location licensee of the license that is transferred under
this paragraph (14).
(i) Notwithstanding the other provisions of this Act, the
conduct of wagering at wagering facilities is authorized on all
days, except as limited by subsection (b) of Section 19 of this
Act.
(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
100-201, eff. 8-18-17.)
(230 ILCS 5/26.8)
Sec. 26.8. Beginning on February 1, 2014 and through
December 31, 2018, each wagering licensee may impose a
surcharge of up to 0.5% on winning wagers and winnings from
wagers. The surcharge shall be deducted from winnings prior to
payout. All amounts collected from the imposition of this
surcharge shall be evenly distributed to the organization
licensee and the purse account of the organization licensee
with which the licensee is affiliated. The amounts distributed

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under this Section shall be in addition to the amounts paid
pursuant to paragraph (10) of subsection (h) of Section 26,
Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
(230 ILCS 5/26.9)
Sec. 26.9. Beginning on February 1, 2014 and through
December 31, 2018, in addition to the surcharge imposed in
Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
licensee shall impose a surcharge of 0.2% on winning wagers and
winnings from wagers. The surcharge shall be deducted from
winnings prior to payout. All amounts collected from the
surcharges imposed under this Section shall be remitted to the
Board. From amounts collected under this Section, the Board
shall deposit an amount not to exceed $100,000 annually into
the Quarter Horse Purse Fund and all remaining amounts into the
Horse Racing Fund.
(Source: P.A. 98-624, eff. 1-29-14; 99-756, eff. 8-12-16.)
(230 ILCS 5/27) (from Ch. 8, par. 37-27)
Sec. 27. (a) In addition to the organization license fee
provided by this Act, until January 1, 2000, a graduated
privilege tax is hereby imposed for conducting the pari-mutuel
system of wagering permitted under this Act. Until January 1,
2000, except as provided in subsection (g) of Section 27 of
this Act, all of the breakage of each racing day held by any

HB5146 - 271 - LRB100 18631 SMS 33856 b
licensee in the State shall be paid to the State. Until January
1, 2000, such daily graduated privilege tax shall be paid by
the licensee from the amount permitted to be retained under
this Act. Until January 1, 2000, each day's graduated privilege
tax, breakage, and Horse Racing Tax Allocation funds shall be
remitted to the Department of Revenue within 48 hours after the
close of the racing day upon which it is assessed or within
such other time as the Board prescribes. The privilege tax
hereby imposed, until January 1, 2000, shall be a flat tax at
the rate of 2% of the daily pari-mutuel handle except as
provided in Section 27.1.
In addition, every organization licensee, except as
provided in Section 27.1 of this Act, which conducts multiple
wagering shall pay, until January 1, 2000, as a privilege tax
on multiple wagers an amount equal to 1.25% of all moneys
wagered each day on such multiple wagers, plus an additional
amount equal to 3.5% of the amount wagered each day on any
other multiple wager which involves a single betting interest
on 3 or more horses. The licensee shall remit the amount of
such taxes to the Department of Revenue within 48 hours after
the close of the racing day on which it is assessed or within
such other time as the Board prescribes.
This subsection (a) shall be inoperative and of no force
and effect on and after January 1, 2000.
(a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
at the rate of 1.5% of the daily pari-mutuel handle is imposed

HB5146 - 272 - LRB100 18631 SMS 33856 b
at all pari-mutuel wagering facilities and on advance deposit
wagering from a location other than a wagering facility, except
as otherwise provided for in this subsection (a-5). In addition
to the pari-mutuel tax imposed on advance deposit wagering
pursuant to this subsection (a-5), beginning on August 24, 2012
(the effective date of Public Act 97-1060) and through December
31, 2018, an additional pari-mutuel tax at the rate of 0.25%
shall be imposed on advance deposit wagering. Until August 25,
2012, the additional 0.25% pari-mutuel tax imposed on advance
deposit wagering by Public Act 96-972 shall be deposited into
the Quarter Horse Purse Fund, which shall be created as a
non-appropriated trust fund administered by the Board for
grants to thoroughbred organization licensees for payment of
purses for quarter horse races conducted by the organization
licensee. Beginning on August 26, 2012, the additional 0.25%
pari-mutuel tax imposed on advance deposit wagering shall be
deposited into the Standardbred Purse Fund, which shall be
created as a non-appropriated trust fund administered by the
Board, for grants to the standardbred organization licensees
for payment of purses for standardbred horse races conducted by
the organization licensee. Thoroughbred organization licensees
may petition the Board to conduct quarter horse racing and
receive purse grants from the Quarter Horse Purse Fund. The
Board shall have complete discretion in distributing the
Quarter Horse Purse Fund to the petitioning organization
licensees. Beginning on July 26, 2010 (the effective date of

HB5146 - 273 - LRB100 18631 SMS 33856 b
Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
the daily pari-mutuel handle is imposed at a pari-mutuel
facility whose license is derived from a track located in a
county that borders the Mississippi River and conducted live
racing in the previous year. The pari-mutuel tax imposed by
this subsection (a-5) shall be remitted to the Department of
Revenue within 48 hours after the close of the racing day upon
which it is assessed or within such other time as the Board
prescribes.
(a-10) Beginning on the date when an organization licensee
begins conducting electronic gaming pursuant to an electronic
gaming license, the following pari-mutuel tax is imposed upon
an organization licensee on Illinois races at the licensee's
race track:
1.5% of the pari-mutuel handle at or below the average
daily pari-mutuel handle for 2011.
2% of the pari-mutuel handle above the average daily
pari-mutuel handle for 2011 up to 125% of the average daily
pari-mutuel handle for 2011.
2.5% of the pari-mutuel handle 125% or more above the
average daily pari-mutuel handle for 2011 up to 150% of the
average daily pari-mutuel handle for 2011.
3% of the pari-mutuel handle 150% or more above the
average daily pari-mutuel handle for 2011 up to 175% of the
average daily pari-mutuel handle for 2011.
3.5% of the pari-mutuel handle 175% or more above the

HB5146 - 274 - LRB100 18631 SMS 33856 b
average daily pari-mutuel handle for 2011.
The pari-mutuel tax imposed by this subsection (a-10) shall
be remitted to the Board within 48 hours after the close of the
racing day upon which it is assessed or within such other time
as the Board prescribes.
(b) On or before December 31, 1999, in the event that any
organization licensee conducts 2 separate programs of races on
any day, each such program shall be considered a separate
racing day for purposes of determining the daily handle and
computing the privilege tax on such daily handle as provided in
subsection (a) of this Section.
(c) Licensees shall at all times keep accurate books and
records of all monies wagered on each day of a race meeting and
of the taxes paid to the Department of Revenue under the
provisions of this Section. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to such records for the purpose of examining
and checking the same and ascertaining whether the proper
amount of taxes is being paid as provided. The Board shall
require verified reports and a statement of the total of all
monies wagered daily at each wagering facility upon which the
taxes are assessed and may prescribe forms upon which such
reports and statement shall be made.
(d) Before a license is issued or re-issued, the licensee
shall post a bond in the sum of $500,000 to the State of
Illinois. The bond shall be used to guarantee that the licensee

HB5146 - 275 - LRB100 18631 SMS 33856 b
faithfully makes the payments, keeps the books and records and
makes reports, and conducts games of chance in conformity with
this Act and the rules adopted by the Board. The bond shall not
be canceled by a surety on less than 30 days' notice in writing
to the Board. If a bond is canceled and the licensee fails to
file a new bond with the Board in the required amount on or
before the effective date of cancellation, the licensee's
license shall be revoked. The total and aggregate liability of
the surety on the bond is limited to the amount specified in
the bond. Any licensee failing or refusing to pay the amount of
any tax due under this Section shall be guilty of a business
offense and upon conviction shall be fined not more than $5,000
in addition to the amount found due as tax under this Section.
Each day's violation shall constitute a separate offense. All
fines paid into Court by a licensee hereunder shall be
transmitted and paid over by the Clerk of the Court to the
Board.
(e) No other license fee, privilege tax, excise tax, or
racing fee, except as provided in this Act, shall be assessed
or collected from any such licensee by the State.
(f) No other license fee, privilege tax, excise tax or
racing fee shall be assessed or collected from any such
licensee by units of local government except as provided in
paragraph 10.1 of subsection (h) and subsection (f) of Section
26 of this Act. However, any municipality that has a Board
licensed horse race meeting at a race track wholly within its

HB5146 - 276 - LRB100 18631 SMS 33856 b
corporate boundaries or a township that has a Board licensed
horse race meeting at a race track wholly within the
unincorporated area of the township may charge a local
amusement tax not to exceed 10¢ per admission to such horse
race meeting by the enactment of an ordinance. However, any
municipality or county that has a Board licensed inter-track
wagering location facility wholly within its corporate
boundaries may each impose an admission fee not to exceed $1.00
per admission to such inter-track wagering location facility,
so that a total of not more than $2.00 per admission may be
imposed. Except as provided in subparagraph (g) of Section 27
of this Act, the inter-track wagering location licensee shall
collect any and all such fees and within 48 hours remit the
fees to the Board as the Board prescribes, which shall,
pursuant to rule, cause the fees to be distributed to the
county or municipality.
(g) Notwithstanding any provision in this Act to the
contrary, if in any calendar year the total taxes and fees from
wagering on live racing and from inter-track wagering required
to be collected from licensees and distributed under this Act
to all State and local governmental authorities exceeds the
amount of such taxes and fees distributed to each State and
local governmental authority to which each State and local
governmental authority was entitled under this Act for calendar
year 1994, then the first $11 million of that excess amount
shall be allocated at the earliest possible date for

HB5146 - 277 - LRB100 18631 SMS 33856 b
distribution as purse money for the succeeding calendar year.
Upon reaching the 1994 level, and until the excess amount of
taxes and fees exceeds $11 million, the Board shall direct all
licensees to cease paying the subject taxes and fees and the
Board shall direct all licensees to allocate any such excess
amount for purses as follows:
(i) the excess amount shall be initially divided
between thoroughbred and standardbred purses based on the
thoroughbred's and standardbred's respective percentages
of total Illinois live wagering in calendar year 1994;
(ii) each thoroughbred and standardbred organization
licensee issued an organization licensee in that
succeeding allocation year shall be allocated an amount
equal to the product of its percentage of total Illinois
live thoroughbred or standardbred wagering in calendar
year 1994 (the total to be determined based on the sum of
1994 on-track wagering for all organization licensees
issued organization licenses in both the allocation year
and the preceding year) multiplied by the total amount
allocated for standardbred or thoroughbred purses,
provided that the first $1,500,000 of the amount allocated
to standardbred purses under item (i) shall be allocated to
the Department of Agriculture to be expended with the
assistance and advice of the Illinois Standardbred
Breeders Funds Advisory Board for the purposes listed in
subsection (g) of Section 31 of this Act, before the amount

HB5146 - 278 - LRB100 18631 SMS 33856 b
allocated to standardbred purses under item (i) is
allocated to standardbred organization licensees in the
succeeding allocation year.
To the extent the excess amount of taxes and fees to be
collected and distributed to State and local governmental
authorities exceeds $11 million, that excess amount shall be
collected and distributed to State and local authorities as
provided for under this Act.
(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
eff. 8-12-16.)
(230 ILCS 5/30) (from Ch. 8, par. 37-30)
Sec. 30. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of thoroughbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality thoroughbred horses to participate in
thoroughbred racing meetings in this State, and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.
(b) Each organization licensee conducting a thoroughbred
racing meeting pursuant to this Act shall provide at least two
races each day limited to Illinois conceived and foaled horses
or Illinois foaled horses or both. A minimum of 6 races shall

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be conducted each week limited to Illinois conceived and foaled
or Illinois foaled horses or both. No horses shall be permitted
to start in such races unless duly registered under the rules
of the Department of Agriculture.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality, and class of
Illinois conceived and foaled and Illinois foaled horses
available. If, however, sufficient competition cannot be had
among horses of that class on any day, the races may, with
consent of the Board, be eliminated for that day and substitute
races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Thoroughbred Breeders
Fund.
Beginning on the effective date of this amendatory Act of
the 100th General Assembly, the Illinois Thoroughbred Breeders
Fund shall become a non-appropriated trust fund held separately
from State moneys. Expenditures from this Fund shall no longer
be subject to appropriation.
Except as provided in subsection (g) of Section 27 of this
Act, 8.5% of all the monies received by the State as privilege
taxes on Thoroughbred racing meetings shall be paid into the
Illinois Thoroughbred Breeders Fund.
Notwithstanding any provision of law to the contrary,
amounts deposited into the Illinois Thoroughbred Breeders Fund
from revenues generated by electronic gaming after the

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effective date of this amendatory Act of the 100th General
Assembly shall be in addition to tax and fee amounts paid under
this Section for calendar year 2018 and thereafter.
(e) The Illinois Thoroughbred Breeders Fund shall be
administered by the Department of Agriculture with the advice
and assistance of the Advisory Board created in subsection (f)
of this Section.
(f) The Illinois Thoroughbred Breeders Fund Advisory Board
shall consist of the Director of the Department of Agriculture,
who shall serve as Chairman; a member of the Illinois Racing
Board, designated by it; 2 representatives of the organization
licensees conducting thoroughbred racing meetings, recommended
by them; 2 representatives of the Illinois Thoroughbred
Breeders and Owners Foundation, recommended by it; one
representative and 2 representatives of the Horsemen's
Benevolent Protective Association; and one representative from
the Illinois Thoroughbred Horsemen's Association or any
successor organization established in Illinois comprised of
the largest number of owners and trainers, recommended by it,
with one representative of the Horsemen's Benevolent and
Protective Association to come from its Illinois Division, and
one from its Chicago Division. Advisory Board members shall
serve for 2 years commencing January 1 of each odd numbered
year. If representatives of the organization licensees
conducting thoroughbred racing meetings, the Illinois
Thoroughbred Breeders and Owners Foundation, and the

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Horsemen's Benevolent Protection Association, and the Illinois
Thoroughbred Horsemen's Association have not been recommended
by January 1, of each odd numbered year, the Director of the
Department of Agriculture shall make an appointment for the
organization failing to so recommend a member of the Advisory
Board. Advisory Board members shall receive no compensation for
their services as members but shall be reimbursed for all
actual and necessary expenses and disbursements incurred in the
execution of their official duties.
(g) No monies shall be expended from the Illinois
Thoroughbred Breeders Fund except as appropriated by the
General Assembly. Monies expended appropriated from the
Illinois Thoroughbred Breeders Fund shall be expended by the
Department of Agriculture, with the advice and assistance of
the Illinois Thoroughbred Breeders Fund Advisory Board, for the
following purposes only:
(1) To provide purse supplements to owners of horses
participating in races limited to Illinois conceived and
foaled and Illinois foaled horses. Any such purse
supplements shall not be included in and shall be paid in
addition to any purses, stakes, or breeders' awards offered
by each organization licensee as determined by agreement
between such organization licensee and an organization
representing the horsemen. No monies from the Illinois
Thoroughbred Breeders Fund shall be used to provide purse
supplements for claiming races in which the minimum

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claiming price is less than $7,500.
(2) To provide stakes and awards to be paid to the
owners of the winning horses in certain races limited to
Illinois conceived and foaled and Illinois foaled horses
designated as stakes races.
(2.5) To provide an award to the owner or owners of an
Illinois conceived and foaled or Illinois foaled horse that
wins a maiden special weight, an allowance, overnight
handicap race, or claiming race with claiming price of
$10,000 or more providing the race is not restricted to
Illinois conceived and foaled or Illinois foaled horses.
Awards shall also be provided to the owner or owners of
Illinois conceived and foaled and Illinois foaled horses
that place second or third in those races. To the extent
that additional moneys are required to pay the minimum
additional awards of 40% of the purse the horse earns for
placing first, second or third in those races for Illinois
foaled horses and of 60% of the purse the horse earns for
placing first, second or third in those races for Illinois
conceived and foaled horses, those moneys shall be provided
from the purse account at the track where earned.
(3) To provide stallion awards to the owner or owners
of any stallion that is duly registered with the Illinois
Thoroughbred Breeders Fund Program prior to the effective
date of this amendatory Act of 1995 whose duly registered
Illinois conceived and foaled offspring wins a race

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conducted at an Illinois thoroughbred racing meeting other
than a claiming race, provided that the stallion stood
service within Illinois at the time the offspring was
conceived and that the stallion did not stand for service
outside of Illinois at any time during the year in which
the offspring was conceived. Such award shall not be paid
to the owner or owners of an Illinois stallion that served
outside this State at any time during the calendar year in
which such race was conducted.
(4) To provide $75,000 annually for purses to be
distributed to county fairs that provide for the running of
races during each county fair exclusively for the
thoroughbreds conceived and foaled in Illinois. The
conditions of the races shall be developed by the county
fair association and reviewed by the Department with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. There shall be no wagering of
any kind on the running of Illinois conceived and foaled
races at county fairs.
(4.1) To provide purse money for an Illinois stallion
stakes program.
(5) No less than 90% 80% of all monies appropriated
from the Illinois Thoroughbred Breeders Fund shall be
expended for the purposes in (1), (2), (2.5), (3), (4),
(4.1), and (5) as shown above.
(6) To provide for educational programs regarding the

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thoroughbred breeding industry.
(7) To provide for research programs concerning the
health, development and care of the thoroughbred horse.
(8) To provide for a scholarship and training program
for students of equine veterinary medicine.
(9) To provide for dissemination of public information
designed to promote the breeding of thoroughbred horses in
Illinois.
(10) To provide for all expenses incurred in the
administration of the Illinois Thoroughbred Breeders Fund.
(h) The Illinois Thoroughbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act. Whenever the Governor finds that the amount in the
Illinois Thoroughbred Breeders Fund is more than the total of
the outstanding appropriations from such fund, the Governor
shall notify the State Comptroller and the State Treasurer of
such fact. The Comptroller and the State Treasurer, upon
receipt of such notification, shall transfer such excess amount
from the Illinois Thoroughbred Breeders Fund to the General
Revenue Fund.
(i) A sum equal to 13% of the first prize money of every
purse won by an Illinois foaled or Illinois conceived and
foaled horse in races not limited to Illinois foaled horses or
Illinois conceived and foaled horses, or both, shall be paid by
the organization licensee conducting the horse race meeting.

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Such sum shall be paid 50% from the organization licensee's
share of the money wagered and 50% from the purse account as
follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
to the organization representing thoroughbred breeders and
owners who representative serves on the Illinois Thoroughbred
Breeders Fund Advisory Board for verifying the amounts of
breeders' awards earned, ensuring their distribution in
accordance with this Act, and servicing and promoting the
Illinois thoroughbred horse racing industry. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payments under paragraph (13) of subsection
(g) of Section 26 of this Act begins to receive funds from
electronic gaming, a sum equal to 21 1/2% of the first prize
money of every purse won by an Illinois foaled or an Illinois
conceived and foaled horse in races not limited to an Illinois
conceived and foaled horse, or both, shall be paid 30% from the
organization licensee's account and 70% from the purse account
as follows: 20% to the breeder of the winning horse and 1 1/2%
to the organization representing thoroughbred breeders and
owners whose representatives serves on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, ensuring their
distribution in accordance with this Act, and servicing and
promoting the Illinois Thoroughbred racing industry. A sum
equal to 12 1/2% of the first prize money of every purse won by
an Illinois foaled or an Illinois conceived and foaled horse in

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races not limited to Illinois foaled horses or Illinois
conceived and foaled horses, or both, shall be paid by the
organization licensee conducting the horse race meeting. Such
sum shall be paid from the organization licensee's share of the
money wagered as follows: 11 1/2% to the breeder of the winning
horse and 1% to the organization representing thoroughbred
breeders and owners whose representative serves on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, assuring their
distribution in accordance with this Act, and servicing and
promoting the Illinois thoroughbred horse racing industry. The
organization representing thoroughbred breeders and owners
shall cause all expenditures of monies received under this
subsection (i) to be audited at least annually by a registered
public accountant. The organization shall file copies of each
annual audit with the Racing Board, the Clerk of the House of
Representatives and the Secretary of the Senate, and shall make
copies of each annual audit available to the public upon
request and upon payment of the reasonable cost of photocopying
the requested number of copies. Such payments shall not reduce
any award to the owner of the horse or reduce the taxes payable
under this Act. Upon completion of its racing meet, each
organization licensee shall deliver to the organization
representing thoroughbred breeders and owners whose
representative serves on the Illinois Thoroughbred Breeders
Fund Advisory Board a listing of all the Illinois foaled and

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the Illinois conceived and foaled horses which won breeders'
awards and the amount of such breeders' awards under this
subsection to verify accuracy of payments and assure proper
distribution of breeders' awards in accordance with the
provisions of this Act. Such payments shall be delivered by the
organization licensee within 30 days of the end of each race
meeting.
(j) A sum equal to 13% of the first prize money won in
every race limited to Illinois foaled horses or Illinois
conceived and foaled horses, or both, shall be paid in the
following manner by the organization licensee conducting the
horse race meeting, 50% from the organization licensee's share
of the money wagered and 50% from the purse account as follows:
11 1/2% to the breeders of the horses in each such race which
are the official first, second, third, and fourth finishers and
1 1/2% to the organization representing thoroughbred breeders
and owners whose representatives serves on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, ensuring their proper
distribution in accordance with this Act, and servicing and
promoting the Illinois horse racing industry. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payments under paragraph (13) of subsection
(g) of Section 26 of this Act begins to receive funds from
electronic gaming, a sum of 21 1/2% of every purse in a race
limited to Illinois foaled horses or Illinois conceived and

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foaled horses, or both, shall be paid by the organization
licensee conducting the horse race meeting. Such sum shall be
paid 30% from the organization licensee's account and 70% from
the purse account as follows: 20% to the breeders of the horses
in each such race who are official first, second, third and
fourth finishers and 1 1/2% to the organization representing
thoroughbred breeders and owners whose representatives serve
on the Illinois Thoroughbred Breeders Fund Advisory Board for
verifying the amounts of breeders' awards earned, ensuring
their proper distribution in accordance with this Act, and
servicing and promoting the Illinois thoroughbred horse racing
industry. The organization representing thoroughbred breeders
and owners shall cause all expenditures of moneys received
under this subsection (j) to be audited at least annually by a
registered public accountant. The organization shall file
copies of each annual audit with the Racing Board, the Clerk of
the House of Representatives and the Secretary of the Senate,
and shall make copies of each annual audit available to the
public upon request and upon payment of the reasonable cost of
photocopying the requested number of copies. A sum equal to 12
1/2% of the first prize money won in each race limited to
Illinois foaled horses or Illinois conceived and foaled horses,
or both, shall be paid in the following manner by the
organization licensee conducting the horse race meeting, from
the organization licensee's share of the money wagered: 11 1/2%
to the breeders of the horses in each such race which are the

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official first, second, third and fourth finishers and 1% to
the organization representing thoroughbred breeders and owners
whose representative serves on the Illinois Thoroughbred
Breeders Fund Advisory Board for verifying the amounts of
breeders' awards earned, assuring their proper distribution in
accordance with this Act, and servicing and promoting the
Illinois thoroughbred horse racing industry. The organization
representing thoroughbred breeders and owners shall cause all
expenditures of monies received under this subsection (j) to be
audited at least annually by a registered public accountant.
The organization shall file copies of each annual audit with
the Racing Board, the Clerk of the House of Representatives and
the Secretary of the Senate, and shall make copies of each
annual audit available to the public upon request and upon
payment of the reasonable cost of photocopying the requested
number of copies.
The amounts 11 1/2% paid to the breeders in accordance with
this subsection shall be distributed as follows:
(1) 60% of such sum shall be paid to the breeder of the
horse which finishes in the official first position;
(2) 20% of such sum shall be paid to the breeder of the
horse which finishes in the official second position;
(3) 15% of such sum shall be paid to the breeder of the
horse which finishes in the official third position; and
(4) 5% of such sum shall be paid to the breeder of the
horse which finishes in the official fourth position.

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Such payments shall not reduce any award to the owners of a
horse or reduce the taxes payable under this Act. Upon
completion of its racing meet, each organization licensee shall
deliver to the organization representing thoroughbred breeders
and owners whose representative serves on the Illinois
Thoroughbred Breeders Fund Advisory Board a listing of all the
Illinois foaled and the Illinois conceived and foaled horses
which won breeders' awards and the amount of such breeders'
awards in accordance with the provisions of this Act. Such
payments shall be delivered by the organization licensee within
30 days of the end of each race meeting.
(k) The term "breeder", as used herein, means the owner of
the mare at the time the foal is dropped. An "Illinois foaled
horse" is a foal dropped by a mare which enters this State on
or before December 1, in the year in which the horse is bred,
provided the mare remains continuously in this State until its
foal is born. An "Illinois foaled horse" also means a foal born
of a mare in the same year as the mare enters this State on or
before March 1, and remains in this State at least 30 days
after foaling, is bred back during the season of the foaling to
an Illinois Registered Stallion (unless a veterinarian
certifies that the mare should not be bred for health reasons),
and is not bred to a stallion standing in any other state
during the season of foaling. An "Illinois foaled horse" also
means a foal born in Illinois of a mare purchased at public
auction subsequent to the mare entering this State on or before

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March 1 prior to February 1 of the foaling year providing the
mare is owned solely by one or more Illinois residents or an
Illinois entity that is entirely owned by one or more Illinois
residents.
(l) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Thoroughbred Breeders
Fund Advisory Board:
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of Illinois
at the time of a foal's conception. Such stallion must not
stand for service at any place outside the State of
Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect an application fee of up to $500 fees for the
registration of Illinois-eligible stallions. All fees
collected are to be held in trust accounts for the purposes
set forth in this Act and in accordance with Section 205-15
of the Department of Agriculture Law paid into the Illinois
Thoroughbred Breeders Fund.
(2) Provide for the registration of Illinois conceived
and foaled horses and Illinois foaled horses. No such horse
shall compete in the races limited to Illinois conceived
and foaled horses or Illinois foaled horses or both unless
registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The

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Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be held in trust accounts
for the purposes set forth in this Act and in accordance
with Section 205-15 of the Department of Agriculture Law
paid into the Illinois Thoroughbred Breeders Fund. No
person shall knowingly prepare or cause preparation of an
application for registration of such foals containing
false information.
(m) The Department of Agriculture, with the advice and
assistance of the Illinois Thoroughbred Breeders Fund Advisory
Board, shall provide that certain races limited to Illinois
conceived and foaled and Illinois foaled horses be stakes races
and determine the total amount of stakes and awards to be paid
to the owners of the winning horses in such races.
In determining the stakes races and the amount of awards
for such races, the Department of Agriculture shall consider
factors, including but not limited to, the amount of money
appropriated for the Illinois Thoroughbred Breeders Fund
program, organization licensees' contributions, availability
of stakes caliber horses as demonstrated by past performances,
whether the race can be coordinated into the proposed racing
dates within organization licensees' racing dates, opportunity
for colts and fillies and various age groups to race, public
wagering on such races, and the previous racing schedule.
(n) The Board and the organizational licensee shall notify

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the Department of the conditions and minimum purses for races
limited to Illinois conceived and foaled and Illinois foaled
horses conducted for each organizational licensee conducting a
thoroughbred racing meeting. The Department of Agriculture
with the advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board may allocate monies for purse
supplements for such races. In determining whether to allocate
money and the amount, the Department of Agriculture shall
consider factors, including but not limited to, the amount of
money appropriated for the Illinois Thoroughbred Breeders Fund
program, the number of races that may occur, and the
organizational licensee's purse structure.
(o) (Blank).
(Source: P.A. 98-692, eff. 7-1-14.)
(230 ILCS 5/30.5)
Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
(a) The General Assembly declares that it is the policy of
this State to encourage the breeding of racing quarter horses
in this State and the ownership of such horses by residents of
this State in order to provide for sufficient numbers of high
quality racing quarter horses in this State and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.

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(b) There is hereby created non-appropriated trust a
special fund in the State Treasury to be known as the Illinois
Racing Quarter Horse Breeders Fund, which is held separately
from State moneys. Except as provided in subsection (g) of
Section 27 of this Act, 8.5% of all the moneys received by the
State as pari-mutuel taxes on quarter horse racing shall be
paid into the Illinois Racing Quarter Horse Breeders Fund. The
Illinois Racing Quarter Horse Breeders Fund shall not be
subject to administrative charges or chargebacks, including,
but not limited to, those authorized under Section 8h of the
State Finance Act.
(c) The Illinois Racing Quarter Horse Breeders Fund shall
be administered by the Department of Agriculture with the
advice and assistance of the Advisory Board created in
subsection (d) of this Section.
(d) The Illinois Racing Quarter Horse Breeders Fund
Advisory Board shall consist of the Director of the Department
of Agriculture, who shall serve as Chairman; a member of the
Illinois Racing Board, designated by it; one representative of
the organization licensees conducting pari-mutuel quarter
horse racing meetings, recommended by them; 2 representatives
of the Illinois Running Quarter Horse Association, recommended
by it; and the Superintendent of Fairs and Promotions from the
Department of Agriculture. Advisory Board members shall serve
for 2 years commencing January 1 of each odd numbered year. If
representatives have not been recommended by January 1 of each

HB5146 - 295 - LRB100 18631 SMS 33856 b
odd numbered year, the Director of the Department of
Agriculture may make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but may be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(e) Moneys in No moneys shall be expended from the Illinois
Racing Quarter Horse Breeders Fund except as appropriated by
the General Assembly. Moneys appropriated from the Illinois
Racing Quarter Horse Breeders Fund shall be expended by the
Department of Agriculture, with the advice and assistance of
the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
for the following purposes only:
(1) To provide stakes and awards to be paid to the
owners of the winning horses in certain races. This
provision is limited to Illinois conceived and foaled
horses.
(2) To provide an award to the owner or owners of an
Illinois conceived and foaled horse that wins a race when
pari-mutuel wagering is conducted; providing the race is
not restricted to Illinois conceived and foaled horses.
(3) To provide purse money for an Illinois stallion
stakes program.
(4) To provide for purses to be distributed for the
running of races during the Illinois State Fair and the

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DuQuoin State Fair exclusively for quarter horses
conceived and foaled in Illinois.
(5) To provide for purses to be distributed for the
running of races at Illinois county fairs exclusively for
quarter horses conceived and foaled in Illinois.
(6) To provide for purses to be distributed for running
races exclusively for quarter horses conceived and foaled
in Illinois at locations in Illinois determined by the
Department of Agriculture with advice and consent of the
Illinois Racing Quarter Horse Breeders Fund Advisory
Board.
(7) No less than 90% of all moneys appropriated from
the Illinois Racing Quarter Horse Breeders Fund shall be
expended for the purposes in items (1), (2), (3), (4), and
(5) of this subsection (e).
(8) To provide for research programs concerning the
health, development, and care of racing quarter horses.
(9) To provide for dissemination of public information
designed to promote the breeding of racing quarter horses
in Illinois.
(10) To provide for expenses incurred in the
administration of the Illinois Racing Quarter Horse
Breeders Fund.
(f) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Racing Quarter Horse
Breeders Fund Advisory Board:

HB5146 - 297 - LRB100 18631 SMS 33856 b
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of
Illinois, at the time of a foal's conception. Such stallion
must not stand for service at any place outside the State
of Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect application fees for the registration of
Illinois-eligible stallions. All fees collected are to be
paid into the Illinois Racing Quarter Horse Breeders Fund.
(2) Provide for the registration of Illinois conceived
and foaled horses. No such horse shall compete in the races
limited to Illinois conceived and foaled horses unless it
is registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The
Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be paid into the Illinois
Racing Quarter Horse Breeders Fund. No person shall
knowingly prepare or cause preparation of an application
for registration of such foals that contains false
information.
(g) The Department of Agriculture, with the advice and
assistance of the Illinois Racing Quarter Horse Breeders Fund
Advisory Board, shall provide that certain races limited to
Illinois conceived and foaled be stakes races and determine the

HB5146 - 298 - LRB100 18631 SMS 33856 b
total amount of stakes and awards to be paid to the owners of
the winning horses in such races.
(Source: P.A. 98-463, eff. 8-16-13.)
(230 ILCS 5/31) (from Ch. 8, par. 37-31)
Sec. 31. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of standardbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality standardbred horses to participate in
harness racing meetings in this State, and to establish and
preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Section of this Act.
(b) Each organization licensee conducting a harness racing
meeting pursuant to this Act shall provide for at least two
races each race program limited to Illinois conceived and
foaled horses. A minimum of 6 races shall be conducted each
week limited to Illinois conceived and foaled horses. No horses
shall be permitted to start in such races unless duly
registered under the rules of the Department of Agriculture.
(b-5) Organization licensees, not including the Illinois
State Fair or the DuQuoin State Fair, shall provide stake races
and early closer races for Illinois conceived and foaled horses
so that purses distributed for such races shall be no less than

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17% of total purses distributed for harness racing in that
calendar year in addition to any stakes payments and starting
fees contributed by horse owners.
(b-10) Each organization licensee conducting a harness
racing meeting pursuant to this Act shall provide an owner
award to be paid from the purse account equal to 25% of the
amount earned by Illinois conceived and foaled horses in races
that are not restricted to Illinois conceived and foaled
horses. The owner awards shall not be paid on races below the
$10,000 claiming class.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality and class of
Illinois conceived and foaled horses available. If, however,
sufficient competition cannot be had among horses of that class
on any day, the races may, with consent of the Board, be
eliminated for that day and substitute races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Standardbred Breeders
Fund.
During the calendar year 1981, and each year thereafter,
except as provided in subsection (g) of Section 27 of this Act,
eight and one-half per cent of all the monies received by the
State as privilege taxes on harness racing meetings shall be
paid into the Illinois Standardbred Breeders Fund.
(e) The Illinois Standardbred Breeders Fund shall be
administered by the Department of Agriculture with the

HB5146 - 300 - LRB100 18631 SMS 33856 b
assistance and advice of the Advisory Board created in
subsection (f) of this Section.
(f) The Illinois Standardbred Breeders Fund Advisory Board
is hereby created. The Advisory Board shall consist of the
Director of the Department of Agriculture, who shall serve as
Chairman; the Superintendent of the Illinois State Fair; a
member of the Illinois Racing Board, designated by it; a
representative of the largest association of Illinois
standardbred owners and breeders, recommended by it; a
representative of a statewide association representing
agricultural fairs in Illinois, recommended by it, such
representative to be from a fair at which Illinois conceived
and foaled racing is conducted; a representative of the
organization licensees conducting harness racing meetings,
recommended by them; a representative of the Breeder's
Committee of the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, recommended by it; and a representative of the
association representing the largest number of standardbred
owners, breeders, trainers, caretakers, and drivers,
recommended by it. Advisory Board members shall serve for 2
years commencing January 1 of each odd numbered year. If
representatives of the largest association of Illinois
standardbred owners and breeders, a statewide association of
agricultural fairs in Illinois, the association representing
the largest number of standardbred owners, breeders, trainers,

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caretakers, and drivers, a member of the Breeder's Committee of
the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, and the organization licensees conducting harness
racing meetings have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture shall make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but shall be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(g) No monies shall be expended from the Illinois
Standardbred Breeders Fund except as appropriated by the
General Assembly. Monies appropriated from the Illinois
Standardbred Breeders Fund shall be expended by the Department
of Agriculture, with the assistance and advice of the Illinois
Standardbred Breeders Fund Advisory Board for the following
purposes only:
1. To provide purses for races limited to Illinois
conceived and foaled horses at the State Fair and the
DuQuoin State Fair.
2. To provide purses for races limited to Illinois
conceived and foaled horses at county fairs.
3. To provide purse supplements for races limited to
Illinois conceived and foaled horses conducted by

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associations conducting harness racing meetings.
4. No less than 75% of all monies in the Illinois
Standardbred Breeders Fund shall be expended for purses in
1, 2 and 3 as shown above.
5. In the discretion of the Department of Agriculture
to provide awards to harness breeders of Illinois conceived
and foaled horses which win races conducted by organization
licensees conducting harness racing meetings. A breeder is
the owner of a mare at the time of conception. No more than
10% of all monies appropriated from the Illinois
Standardbred Breeders Fund shall be expended for such
harness breeders awards. No more than 25% of the amount
expended for harness breeders awards shall be expended for
expenses incurred in the administration of such harness
breeders awards.
6. To pay for the improvement of racing facilities
located at the State Fair and County fairs.
7. To pay the expenses incurred in the administration
of the Illinois Standardbred Breeders Fund.
8. To promote the sport of harness racing, including
grants up to a maximum of $7,500 per fair per year for
conducting pari-mutuel wagering during the advertised
dates of a county fair.
9. To pay up to $50,000 annually for the Department of
Agriculture to conduct drug testing at county fairs racing
standardbred horses.

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

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

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

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

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negotiated.
(l) All races held at county fairs and the State Fair which
receive funds from the Illinois Standardbred Breeders Fund
shall be conducted in accordance with the rules of the United
States Trotting Association unless otherwise modified by the
Department of Agriculture.
(m) At all standardbred race meetings held or conducted
under authority of a license granted by the Board, and at all
standardbred races held at county fairs which are approved by
the Department of Agriculture or at the Illinois or DuQuoin
State Fairs, no one shall jog, train, warm up or drive a
standardbred horse unless he or she is wearing a protective
safety helmet, with the chin strap fastened and in place, which
meets the standards and requirements as set forth in the 1984
Standard for Protective Headgear for Use in Harness Racing and
Other Equestrian Sports published by the Snell Memorial
Foundation, or any standards and requirements for headgear the
Illinois Racing Board may approve. Any other standards and
requirements so approved by the Board shall equal or exceed
those published by the Snell Memorial Foundation. Any
equestrian helmet bearing the Snell label shall be deemed to
have met those standards and requirements.
(Source: P.A. 99-756, eff. 8-12-16.)
(230 ILCS 5/32.1)
Sec. 32.1. Pari-mutuel tax credit; statewide racetrack

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real estate equalization.
(a) In order to encourage new investment in Illinois
racetrack facilities and mitigate differing real estate tax
burdens among all racetracks, the licensees affiliated or
associated with each racetrack that has been awarded live
racing dates in the current year shall receive an immediate
pari-mutuel tax credit in an amount equal to the greater of (i)
50% of the amount of the real estate taxes paid in the prior
year attributable to that racetrack, or (ii) the amount by
which the real estate taxes paid in the prior year attributable
to that racetrack exceeds 60% of the average real estate taxes
paid in the prior year for all racetracks awarded live horse
racing meets in the current year.
Each year, regardless of whether the organization licensee
conducted live racing in the year of certification, the Board
shall certify in writing, prior to December 31, the real estate
taxes paid in that year for each racetrack and the amount of
the pari-mutuel tax credit that each organization licensee,
inter-track wagering licensee, and inter-track wagering
location licensee that derives its license from such racetrack
is entitled in the succeeding calendar year. The real estate
taxes considered under this Section for any racetrack shall be
those taxes on the real estate parcels and related facilities
used to conduct a horse race meeting and inter-track wagering
at such racetrack under this Act. In no event shall the amount
of the tax credit under this Section exceed the amount of

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pari-mutuel taxes otherwise calculated under this Act. The
amount of the tax credit under this Section shall be retained
by each licensee and shall not be subject to any reallocation
or further distribution under this Act. The Board may
promulgate emergency rules to implement this Section.
(b) If the organization licensee is operating electronic
gaming, then, for the 5-year period beginning on the January 1
of the calendar year immediately following the calendar year
during which an organization licensee begins conducting
electronic gaming operations pursuant to an electronic gaming
license issued under the Illinois Gambling Act, the
organization licensee shall make capital expenditures, in an
amount equal to no less than 50% of the tax credit under this
Section, to the improvement and maintenance of the backstretch,
including, but not limited to, backstretch barns, dormitories,
and services for backstretch workers. Those capital
expenditures must be in addition to, and not in lieu of, the
capital expenditures made for backstretch improvements in
calendar year 2015, as reported to the Board in the
organization licensee's application for racing dates and as
certified by the Board. The organization licensee is required
to annually submit the list and amounts of these capital
expenditures to the Board by January 30th of the year following
the expenditure.
(c) If the organization licensee is operating electronic
gaming in accordance with paragraph (b), then, after the 5-year

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period beginning on January 1 of the calendar year immediately
following the calendar year during which an organization
licensee begins conducting electronic gaming operations
pursuant to an electronic gaming license issued under the
Illinois Gambling Act, the organization license is ineligible
to receive a tax credit under this Section.
(Source: P.A. 100-201, eff. 8-18-17.)
(230 ILCS 5/34.3 new)
Sec. 34.3. Drug testing. The Illinois Racing Board and the
Department of Agriculture shall jointly establish a program for
the purpose of conducting drug testing of horses at county
fairs and shall adopt any rules necessary for enforcement of
the program. The rules shall include appropriate penalties for
violations.
(230 ILCS 5/36) (from Ch. 8, par. 37-36)
Sec. 36. (a) Whoever administers or conspires to administer
to any horse a hypnotic, narcotic, stimulant, depressant or any
chemical substance which may affect the speed of a horse at any
time in any race where the purse or any part of the purse is
made of money authorized by any Section of this Act, except
those chemical substances permitted by ruling of the Board,
internally, externally or by hypodermic method in a race or
prior thereto, or whoever knowingly enters a horse in any race
within a period of 24 hours after any hypnotic, narcotic,

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stimulant, depressant or any other chemical substance which may
affect the speed of a horse at any time, except those chemical
substances permitted by ruling of the Board, has been
administered to such horse either internally or externally or
by hypodermic method for the purpose of increasing or retarding
the speed of such horse shall be guilty of a Class 4 felony.
The Board shall suspend or revoke such violator's license.
(b) The term "hypnotic" as used in this Section includes
all barbituric acid preparations and derivatives.
(c) The term "narcotic" as used in this Section includes
opium and all its alkaloids, salts, preparations and
derivatives, cocaine and all its salts, preparations and
derivatives and substitutes.
(d) The provisions of this Section 36 and the treatment
authorized herein apply to horses entered in and competing in
race meetings as defined in Section 3.07 of this Act and to
horses entered in and competing at any county fair.
(Source: P.A. 79-1185.)
(230 ILCS 5/40) (from Ch. 8, par. 37-40)
Sec. 40. (a) The imposition of any fine or penalty provided
in this Act shall not preclude the Board in its rules and
regulations from imposing a fine or penalty for any other
action which, in the Board's discretion, is a detriment or
impediment to horse racing.
(b) The Director of Agriculture or his or her authorized

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representative shall impose the following monetary penalties
and hold administrative hearings as required for failure to
submit the following applications, lists, or reports within the
time period, date or manner required by statute or rule or for
removing a foal from Illinois prior to inspection:
(1) late filing of a renewal application for offering
or standing stallion for service:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 45
days late, $150; or
(C) if an application is submitted more than 45
days late, if filing of the application is allowed
under an administrative hearing, $250;
(2) late filing of list or report of mares bred:
(A) if a list or report is submitted no more than
30 days late, $50;
(B) if a list or report is submitted no more than
60 days late, $150; or
(C) if a list or report is submitted more than 60
days late, if filing of the list or report is allowed
under an administrative hearing, $250;
(3) filing an Illinois foaled thoroughbred mare status
report after the statutory deadline as provided in
subsection (k) of Section 30 of this Act December 31:
(A) if a report is submitted no more than 30 days

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late, $50;
(B) if a report is submitted no more than 90 days
late, $150;
(C) if a report is submitted no more than 150 days
late, $250; or
(D) if a report is submitted more than 150 days
late, if filing of the report is allowed under an
administrative hearing, $500;
(4) late filing of application for foal eligibility
certificate:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 90
days late, $150;
(C) if an application is submitted no more than 150
days late, $250; or
(D) if an application is submitted more than 150
days late, if filing of the application is allowed
under an administrative hearing, $500;
(5) failure to report the intent to remove a foal from
Illinois prior to inspection, identification and
certification by a Department of Agriculture investigator,
$50; and
(6) if a list or report of mares bred is incomplete,
$50 per mare not included on the list or report.
Any person upon whom monetary penalties are imposed under

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this Section 3 times within a 5-year period shall have any
further monetary penalties imposed at double the amounts set
forth above. All monies assessed and collected for violations
relating to thoroughbreds shall be paid into the Illinois
Thoroughbred Breeders Fund. All monies assessed and collected
for violations relating to standardbreds shall be paid into the
Illinois Standardbred Breeders Fund.
(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
(230 ILCS 5/54.75)
Sec. 54.75. Horse Racing Equity Trust Fund.
(a) There is created a Fund to be known as the Horse Racing
Equity Trust Fund, which is a non-appropriated trust fund held
separate and apart from State moneys. The Fund shall consist of
moneys paid into it by owners licensees under the Illinois
Riverboat Gambling Act for the purposes described in this
Section. The Fund shall be administered by the Board. Moneys in
the Fund shall be distributed as directed and certified by the
Board in accordance with the provisions of subsection (b).
(b) The moneys deposited into the Fund, plus any accrued
interest on those moneys, shall be distributed within 10 days
after those moneys are deposited into the Fund as follows:
(1) Sixty percent of all moneys distributed under this
subsection shall be distributed to organization licensees
to be distributed at their race meetings as purses.
Fifty-seven percent of the amount distributed under this

HB5146 - 315 - LRB100 18631 SMS 33856 b
paragraph (1) shall be distributed for thoroughbred race
meetings and 43% shall be distributed for standardbred race
meetings. Within each breed, moneys shall be allocated to
each organization licensee's purse fund in accordance with
the ratio between the purses generated for that breed by
that licensee during the prior calendar year and the total
purses generated throughout the State for that breed during
the prior calendar year by licensees in the current
calendar year.
(2) The remaining 40% of the moneys distributed under
this subsection (b) shall be distributed as follows:
(A) 11% shall be distributed to any person (or its
successors or assigns) who had operating control of a
racetrack that conducted live racing in 2002 at a
racetrack in a county with at least 230,000 inhabitants
that borders the Mississippi River and is a licensee in
the current year; and
(B) the remaining 89% shall be distributed pro rata
according to the aggregate proportion of total handle
from wagering on live races conducted in Illinois
(irrespective of where the wagers are placed) for
calendar years 2004 and 2005 to any person (or its
successors or assigns) who (i) had majority operating
control of a racing facility at which live racing was
conducted in calendar year 2002, (ii) is a licensee in
the current year, and (iii) is not eligible to receive

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moneys under subparagraph (A) of this paragraph (2).
The moneys received by an organization licensee
under this paragraph (2) shall be used by each
organization licensee to improve, maintain, market,
and otherwise operate its racing facilities to conduct
live racing, which shall include backstretch services
and capital improvements related to live racing and the
backstretch. Any organization licensees sharing common
ownership may pool the moneys received and spent at all
racing facilities commonly owned in order to meet these
requirements.
If any person identified in this paragraph (2) becomes
ineligible to receive moneys from the Fund, such amount
shall be redistributed among the remaining persons in
proportion to their percentages otherwise calculated.
(c) The Board shall monitor organization licensees to
ensure that moneys paid to organization licensees under this
Section are distributed by the organization licensees as
provided in subsection (b).
(Source: P.A. 95-1008, eff. 12-15-08.)
(230 ILCS 5/56 new)
Sec. 56. Electronic gaming.
(a) A person, firm, corporation, or limited liability
company having operating control of a race track may apply to
the Gaming Board for an electronic gaming license. An

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electronic gaming license shall authorize its holder to conduct
electronic gaming on the grounds of the race track of which the
electronic gaming licensee has operating control. Only one
electronic gaming license may be awarded for any race track. A
holder of an electronic gaming license shall be subject to the
Illinois Gambling Act and rules of the Illinois Gaming Board
concerning electronic gaming. If the person, firm,
corporation, or limited liability company having operating
control of a race track is found by the Illinois Gaming Board
to be unsuitable for an electronic gaming license under the
Illinois Gambling Act and rules of the Gaming Board, that
person, firm, corporation, or limited liability company shall
not be granted an electronic gaming license. Each license shall
specify the number of gaming positions that its holder may
operate.
An electronic gaming licensee may not permit persons under
21 years of age to be present in its electronic gaming
facility, but the licensee may accept wagers on live racing and
inter-track wagers at its electronic gaming facility.
(b) For purposes of this subsection, "adjusted gross
receipts" means an electronic gaming licensee's gross receipts
less winnings paid to wagerers and shall also include any
amounts that would otherwise be deducted pursuant to subsection
(a-9) of Section 13 of the Illinois Gambling Act. The adjusted
gross receipts by an electronic gaming licensee from electronic
gaming remaining after the payment of taxes under Section 13 of

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the Illinois Gambling Act shall be distributed as follows:
(1) Amounts shall be paid to the purse account at the
track at which the organization licensee is conducting
racing equal to the following:
12.75% of annual adjusted gross receipts up to and
including $75,000,000;
20% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
26.5% of annual adjusted gross receipts in excess
of $100,000,000 but not exceeding $125,000,000; and
20.5% of annual adjusted gross receipts in excess
of $125,000,000.
(2) The remainder shall be retained by the electronic
gaming licensee.
(c) Electronic gaming receipts placed into the purse
account of an organization licensee racing thoroughbred horses
shall be used for purses, for health care services or worker's
compensation for racing industry workers, for equine research,
for programs to care for and transition injured and retired
thoroughbred horses that race at the race track, or for horse
ownership promotion, in accordance with the agreement of the
horsemen's association representing the largest number of
owners and trainers who race at that organization licensee's
race meetings.
Annually, from the purse account of an organization
licensee racing thoroughbred horses in this State, except for

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in Madison County, an amount equal to 12% of the electronic
gaming receipts placed into the purse accounts shall be paid to
the Illinois Thoroughbred Breeders Fund and shall be used for
owner awards; a stallion program pursuant to paragraph (3) of
subsection (g) of Section 30 of this Act; and Illinois
conceived and foaled stakes races pursuant to paragraph (2) of
subsection (g) of Section 30 of this Act, as specifically
designated by the horsemen's association representing the
largest number of owners and trainers who race at the
organization licensee's race meetings.
Annually, from the purse account of an organization
licensee racing thoroughbred horses in Madison County, an
amount equal to 10% of the electronic gaming receipts placed
into the purse accounts shall be paid to the Illinois
Thoroughbred Breeders Fund and shall be used for owner awards;
a stallion program pursuant to paragraph (3) of subsection (g)
of Section 30 of this Act; and Illinois conceived and foaled
stakes races pursuant to paragraph (2) of subsection (g) of
Section 30 of this Act, as specifically designated by the
horsemen's association representing the largest number of
owners and trainers who race at the organization licensee's
race meetings.
Annually, from the purse account of an organization
licensee conducting thoroughbred races at a race track in
Madison County, an amount equal to 1% of the electronic gaming
receipts distributed to purses per subsection (b) of this

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Section 56 shall be paid as follows: 0.33 1/3% to Southern
Illinois University Department of Animal Sciences for equine
research and education, an amount equal to 0.33 1/3% of the
electronic gaming receipts shall be used to operate laundry
facilities or a kitchen for backstretch workers at that race
track, and an amount equal to 0.33 1/3% of the electronic
gaming receipts shall be paid to R.A.C.E., Inc., a 501(c)(3)
non-profit organization that cares for injured and unwanted
horses that race at that race track.
Annually, from the purse account of organization licensees
conducting thoroughbred races at race tracks in Cook County,
$100,000 shall be paid for division and equal distribution to
the animal sciences department of each Illinois public
university system engaged in equine research and education on
or before the effective date of this amendatory Act of the
100th General Assembly for equine research and education.
(d) Annually, from the purse account of an organization
licensee racing standardbred horses, an amount equal to 15% of
the electronic gaming receipts placed into that purse account
shall be paid to the Illinois Colt Stakes Purse Distribution
Fund. Moneys deposited into the Illinois Colt Stakes Purse
Distribution Fund shall be used for standardbred racing as
authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of
subsection (g) of Section 31 of this Act and for bonus awards
as authorized under paragraph 6 of subsection (j) of Section 31
of this Act.

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Section 90-40. The Riverboat Gambling Act is amended by
changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
11.1, 12, 13, 14, 15, 16, 17, 17.1, 18, 18.1, 19, 20, 21, 23,
and 24 and by adding Sections 5.3, 7.7, 7.8, 7.9, 7.10, 7.11,
7.12, 7.13, and 25 as follows:
(230 ILCS 10/1) (from Ch. 120, par. 2401)
Sec. 1. Short title. This Act shall be known and may be
cited as the Illinois Riverboat Gambling Act.
(Source: P.A. 86-1029.)
(230 ILCS 10/2) (from Ch. 120, par. 2402)
Sec. 2. Legislative Intent.
(a) This Act is intended to benefit the people of the State
of Illinois by assisting economic development, and promoting
Illinois tourism, and by increasing the amount of revenues
available to the State to assist and support education, and to
defray State expenses, including unpaid bills.
(b) While authorization of riverboat and casino gambling
will enhance investment, beautification, development and
tourism in Illinois, it is recognized that it will do so
successfully only if public confidence and trust in the
credibility and integrity of the gambling operations and the
regulatory process is maintained. Therefore, regulatory
provisions of this Act are designed to strictly regulate the

HB5146 - 322 - LRB100 18631 SMS 33856 b
facilities, persons, associations and practices related to
gambling operations pursuant to the police powers of the State,
including comprehensive law enforcement supervision.
(c) The Illinois Gaming Board established under this Act
should, as soon as possible, inform each applicant for an
owners license of the Board's intent to grant or deny a
license.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/3) (from Ch. 120, par. 2403)
Sec. 3. Riverboat Gambling Authorized.
(a) Riverboat and casino gambling operations and
electronic gaming operations and the system of wagering
incorporated therein, as defined in this Act, are hereby
authorized to the extent that they are carried out in
accordance with the provisions of this Act.
(b) This Act does not apply to the pari-mutuel system of
wagering used or intended to be used in connection with the
horse-race meetings as authorized under the Illinois Horse
Racing Act of 1975, lottery games authorized under the Illinois
Lottery Law, bingo authorized under the Bingo License and Tax
Act, charitable games authorized under the Charitable Games Act
or pull tabs and jar games conducted under the Illinois Pull
Tabs and Jar Games Act. This Act applies to electronic gaming
authorized under the Illinois Horse Racing Act of 1975 to the
extent provided in that Act and in this Act.

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(c) Riverboat gambling conducted pursuant to this Act may
be authorized upon any water within the State of Illinois or
any water other than Lake Michigan which constitutes a boundary
of the State of Illinois. Notwithstanding any provision in this
subsection (c) to the contrary, a licensee that receives its
license pursuant to subsection (e-5) of Section 7 may conduct
riverboat gambling on Lake Michigan from a home dock located on
Lake Michigan subject to any limitations contained in Section
7. Notwithstanding any provision in this subsection (c) to the
contrary, a licensee may conduct gambling at its home dock
facility as provided in Sections 7 and 11. A licensee may
conduct riverboat gambling authorized under this Act
regardless of whether it conducts excursion cruises. A licensee
may permit the continuous ingress and egress of passengers for
the purpose of gambling.
(d) Gambling that is conducted in accordance with this Act
using slot machines and video games of chance and other
electronic gambling games as defined in both this Act and the
Illinois Horse Racing Act of 1975 is authorized.
(Source: P.A. 91-40, eff. 6-25-99.)
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
(a) "Board" means the Illinois Gaming Board.
(b) "Occupational license" means a license issued by the
Board to a person or entity to perform an occupation which the

HB5146 - 324 - LRB100 18631 SMS 33856 b
Board has identified as requiring a license to engage in
riverboat gambling, casino gambling, or electronic gaming in
Illinois.
(c) "Gambling game" includes, but is not limited to,
baccarat, twenty-one, poker, craps, slot machine, video game of
chance, roulette wheel, klondike table, punchboard, faro
layout, keno layout, numbers ticket, push card, jar ticket, or
pull tab which is authorized by the Board as a wagering device
under this Act.
(d) "Riverboat" means a self-propelled excursion boat, a
permanently moored barge, or permanently moored barges that are
permanently fixed together to operate as one vessel, on which
lawful gambling is authorized and licensed as provided in this
Act.
"Slot machine" means any mechanical, electrical, or other
device, contrivance, or machine that is authorized by the Board
as a wagering device under this Act which, upon insertion of a
coin, currency, token, or similar object therein, or upon
payment of any consideration whatsoever, is available to play
or operate, the play or operation of which may deliver or
entitle the person playing or operating the machine to receive
cash, premiums, merchandise, tokens, or anything of value
whatsoever, whether the payoff is made automatically from the
machine or in any other manner whatsoever. A slot machine:
(1) may utilize spinning reels or video displays or
both;

HB5146 - 325 - LRB100 18631 SMS 33856 b
(2) may or may not dispense coins, tickets, or tokens
to winning patrons;
(3) may use an electronic credit system for receiving
wagers and making payouts; and
(4) may simulate a table game.
"Slot machine" does not include table games authorized by
the Board as a wagering device under this Act.
(e) "Managers license" means a license issued by the Board
to a person or entity to manage gambling operations conducted
by the State pursuant to Section 7.3.
(f) "Dock" means the location where a riverboat moors for
the purpose of embarking passengers for and disembarking
passengers from the riverboat.
(g) "Gross receipts" means the total amount of money
exchanged for the purchase of chips, tokens, or electronic
cards by riverboat patrons.
(h) "Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
(i) "Cheat" means to alter the selection of criteria which
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
(j) (Blank).
(k) "Gambling operation" means the conduct of authorized
gambling games authorized under this Act upon a riverboat or in
a casino or authorized under this Act and the Illinois Horse
Racing Act of 1975 at an electronic gaming facility.

HB5146 - 326 - LRB100 18631 SMS 33856 b
(l) "License bid" means the lump sum amount of money that
an applicant bids and agrees to pay the State in return for an
owners license that is issued or re-issued on or after July 1,
2003.
"Table game" means a live gaming apparatus upon which
gaming is conducted or that determines an outcome that is the
object of a wager, including, but not limited to, baccarat,
twenty-one, blackjack, poker, craps, roulette wheel, klondike
table, punchboard, faro layout, keno layout, numbers ticket,
push card, jar ticket, pull tab, or other similar games that
are authorized by the Board as a wagering device under this
Act. "Table game" does not include slot machines or video games
of chance.
(m) The terms "minority person", "woman", and "person with
a disability" shall have the same meaning as defined in Section
2 of the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
"Authority" means the Chicago Casino Development
Authority.
"Casino" means a facility at which lawful gambling is
authorized as provided in this Act.
"Owners license" means a license to conduct riverboat or
casino gambling operations, but does not include an electronic
gaming license.
"Licensed owner" means a person who holds an owners
license.

HB5146 - 327 - LRB100 18631 SMS 33856 b
"Electronic gaming" means slot machine gambling, video
game of chance gambling, or gambling with electronic gambling
games as defined in this Act or defined by the Board that is
conducted at a race track pursuant to an electronic gaming
license.
"Electronic gaming facility" means the area where the Board
has authorized electronic gaming at a race track of an
organization licensee under the Illinois Horse Racing Act of
1975 that holds an electronic gaming license.
"Electronic gaming license" means a license issued by the
Board under Section 7.7 of this Act authorizing electronic
gaming at an electronic gaming facility.
"Electronic gaming licensee" means an entity that holds an
electronic gaming license.
"Organization licensee" means an entity authorized by the
Illinois Racing Board to conduct pari-mutuel wagering in
accordance with the Illinois Horse Racing Act of 1975. With
respect only to electronic gaming, "organization licensee"
includes the authorization for electronic gaming created under
subsection (a) of Section 56 of the Illinois Horse Racing Act
of 1975.
"Casino operator license" means the license held by the
person or entity selected by the Authority to manage and
operate a riverboat or casino within the geographic area of the
authorized municipality pursuant to this Act and the Chicago
Casino Development Authority Act.

HB5146 - 328 - LRB100 18631 SMS 33856 b
"Wide area progressive system" means a method of linking
progressive slot machines or electronic gaming machines across
telecommunication lines as part of a network connecting
participating facilities. Wide area progressive systems offer
a common progressive jackpot at all participating locations and
the award of the jackpot is at random.
(Source: P.A. 100-391, eff. 8-25-17.)
(230 ILCS 10/5) (from Ch. 120, par. 2405)
Sec. 5. Gaming Board.
(a) (1) There is hereby established the Illinois Gaming
Board, which shall have the powers and duties specified in this
Act and in the Chicago Casino Development Authority Act, and
all other powers necessary and proper to fully and effectively
execute this Act for the purpose of administering, regulating,
and enforcing the system of riverboat and casino gambling and
electronic gaming established by this Act and by the Chicago
Casino Development Authority Act. Its jurisdiction shall
extend under this Act and the Chicago Casino Development
Authority Act to every person, association, corporation,
partnership and trust involved in riverboat and casino gambling
operations and electronic gaming in the State of Illinois.
(2) The Board shall consist of 5 members to be appointed by
the Governor with the advice and consent of the Senate, one of
whom shall be designated by the Governor to be chairperson
chairman. Each member shall have a reasonable knowledge of the

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practice, procedure and principles of gambling operations.
Each member shall either be a resident of Illinois or shall
certify that he or she will become a resident of Illinois
before taking office.
On and after the effective date of this amendatory Act of
the 100th General Assembly, new appointees to the Board must
include the following:
(A) One member who has received, at a minimum, a
bachelor's degree from an accredited school and at least 10
years of verifiable training and experience in the fields
of investigation and law enforcement.
(B) One member who is a certified public accountant
with experience in auditing and with knowledge of complex
corporate structures and transactions.
(C) One member who has 5 years' experience as a
principal, senior officer, or director of a company or
business with either material responsibility for the daily
operations and management of the overall company or
business or material responsibility for the policy making
of the company or business.
(D) One member who is a lawyer licensed to practice law
in Illinois.
Notwithstanding any provision of this subsection (a), the
requirements of subparagraphs (A) through (D) of this paragraph
(2) shall not apply to any person reappointed pursuant to
paragraph (3).

HB5146 - 330 - LRB100 18631 SMS 33856 b
No more than 3 members of the Board may be from the same
political party. The Board should reflect the ethnic, cultural,
and geographic diversity of the State. No Board member shall,
within a period of one year immediately preceding nomination,
have been employed or received compensation or fees for
services from a person or entity, or its parent or affiliate,
that has engaged in business with the Board, a licensee, or a
licensee under the Illinois Horse Racing Act of 1975. Board
members must publicly disclose all prior affiliations with
gaming interests, including any compensation, fees, bonuses,
salaries, and other reimbursement received from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee, or a licensee under the
Illinois Horse Racing Act of 1975. This disclosure must be made
within 30 days after nomination but prior to confirmation by
the Senate and must be made available to the members of the
Senate. At least one member shall be experienced in law
enforcement and criminal investigation, at least one member
shall be a certified public accountant experienced in
accounting and auditing, and at least one member shall be a
lawyer licensed to practice law in Illinois.
(3) The terms of office of the Board members shall be 3
years, except that the terms of office of the initial Board
members appointed pursuant to this Act will commence from the
effective date of this Act and run as follows: one for a term
ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for

HB5146 - 331 - LRB100 18631 SMS 33856 b
a term ending July 1, 1993. Upon the expiration of the
foregoing terms, the successors of such members shall serve a
term for 3 years and until their successors are appointed and
qualified for like terms. Vacancies in the Board shall be
filled for the unexpired term in like manner as original
appointments. Each member of the Board shall be eligible for
reappointment at the discretion of the Governor with the advice
and consent of the Senate.
(4) Each member of the Board shall receive $300 for each
day the Board meets and for each day the member conducts any
hearing pursuant to this Act. Each member of the Board shall
also be reimbursed for all actual and necessary expenses and
disbursements incurred in the execution of official duties.
(5) No person shall be appointed a member of the Board or
continue to be a member of the Board who is, or whose spouse,
child or parent is, a member of the board of directors of, or a
person financially interested in, any gambling operation
subject to the jurisdiction of this Board, or any race track,
race meeting, racing association or the operations thereof
subject to the jurisdiction of the Illinois Racing Board. No
Board member shall hold any other public office. No person
shall be a member of the Board who is not of good moral
character or who has been convicted of, or is under indictment
for, a felony under the laws of Illinois or any other state, or
the United States.
(5.5) No member of the Board shall engage in any political

HB5146 - 332 - LRB100 18631 SMS 33856 b
activity. For the purposes of this Section, "political" means
any activity in support of or in connection with any campaign
for federal, State, or local elective office or any political
organization, but does not include activities (i) relating to
the support or opposition of any executive, legislative, or
administrative action (as those terms are defined in Section 2
of the Lobbyist Registration Act), (ii) relating to collective
bargaining, or (iii) that are otherwise in furtherance of the
person's official State duties or governmental and public
service functions.
(6) Any member of the Board may be removed by the Governor
for neglect of duty, misfeasance, malfeasance, or nonfeasance
in office or for engaging in any political activity.
(7) Before entering upon the discharge of the duties of his
office, each member of the Board shall take an oath that he
will faithfully execute the duties of his office according to
the laws of the State and the rules and regulations adopted
therewith and shall give bond to the State of Illinois,
approved by the Governor, in the sum of $25,000. Every such
bond, when duly executed and approved, shall be recorded in the
office of the Secretary of State. Whenever the Governor
determines that the bond of any member of the Board has become
or is likely to become invalid or insufficient, he shall
require such member forthwith to renew his bond, which is to be
approved by the Governor. Any member of the Board who fails to
take oath and give bond within 30 days from the date of his

HB5146 - 333 - LRB100 18631 SMS 33856 b
appointment, or who fails to renew his bond within 30 days
after it is demanded by the Governor, shall be guilty of
neglect of duty and may be removed by the Governor. The cost of
any bond given by any member of the Board under this Section
shall be taken to be a part of the necessary expenses of the
Board.
(7.5) For the examination of all mechanical,
electromechanical, or electronic table games, slot machines,
slot accounting systems, and other electronic gaming equipment
for compliance with this Act, the Board may utilize the
services of one or more independent outside testing
laboratories that have been accredited by a national
accreditation body and that, in the judgment of the Board, are
qualified to perform such examinations.
(8) The Board shall employ such personnel as may be
necessary to carry out its functions and shall determine the
salaries of all personnel, except those personnel whose
salaries are determined under the terms of a collective
bargaining agreement. No person shall be employed to serve the
Board who is, or whose spouse, parent or child is, an official
of, or has a financial interest in or financial relation with,
any operator engaged in gambling operations within this State
or any organization engaged in conducting horse racing within
this State. For the one year immediately preceding employment,
an employee shall not have been employed or received
compensation or fees for services from a person or entity, or

HB5146 - 334 - LRB100 18631 SMS 33856 b
its parent or affiliate, that has engaged in business with the
Board, a licensee, or a licensee under the Illinois Horse
Racing Act of 1975. Any employee violating these prohibitions
shall be subject to termination of employment. In addition, all
Board members and employees are subject to the restrictions set
forth in Section 5-45 of the State Officials and Employees
Ethics Act.
(9) An Administrator shall perform any and all duties that
the Board shall assign him. The salary of the Administrator
shall be determined by the Board and, in addition, he shall be
reimbursed for all actual and necessary expenses incurred by
him in discharge of his official duties. The Administrator
shall keep records of all proceedings of the Board and shall
preserve all records, books, documents and other papers
belonging to the Board or entrusted to its care. The
Administrator shall devote his full time to the duties of the
office and shall not hold any other office or employment.
(b) The Board shall have general responsibility for the
implementation of this Act. Its duties include, without
limitation, the following:
(1) To decide promptly and in reasonable order all
license applications. Any party aggrieved by an action of
the Board denying, suspending, revoking, restricting or
refusing to renew a license may request a hearing before
the Board. A request for a hearing must be made to the
Board in writing within 5 days after service of notice of

HB5146 - 335 - LRB100 18631 SMS 33856 b
the action of the Board. Notice of the action of the Board
shall be served either by personal delivery or by certified
mail, postage prepaid, to the aggrieved party. Notice
served by certified mail shall be deemed complete on the
business day following the date of such mailing. The Board
shall conduct all requested hearings promptly and in
reasonable order;
(2) To conduct all hearings pertaining to civil
violations of this Act or rules and regulations promulgated
hereunder;
(3) To promulgate such rules and regulations as in its
judgment may be necessary to protect or enhance the
credibility and integrity of gambling operations
authorized by this Act and the regulatory process
hereunder;
(4) To provide for the establishment and collection of
all license and registration fees and taxes imposed by this
Act and the rules and regulations issued pursuant hereto.
All such fees and taxes shall be deposited into the State
Gaming Fund;
(5) To provide for the levy and collection of penalties
and fines for the violation of provisions of this Act and
the rules and regulations promulgated hereunder. All such
fines and penalties shall be deposited into the Education
Assistance Fund, created by Public Act 86-0018, of the
State of Illinois;

HB5146 - 336 - LRB100 18631 SMS 33856 b
(6) To be present through its inspectors and agents any
time gambling operations are conducted on any riverboat, in
any casino, or at any electronic gaming facility for the
purpose of certifying the revenue thereof, receiving
complaints from the public, and conducting such other
investigations into the conduct of the gambling games and
the maintenance of the equipment as from time to time the
Board may deem necessary and proper;
(7) To review and rule upon any complaint by a licensee
regarding any investigative procedures of the State which
are unnecessarily disruptive of gambling operations. The
need to inspect and investigate shall be presumed at all
times. The disruption of a licensee's operations shall be
proved by clear and convincing evidence, and establish
that: (A) the procedures had no reasonable law enforcement
purposes, and (B) the procedures were so disruptive as to
unreasonably inhibit gambling operations;
(8) To hold at least one meeting each quarter of the
fiscal year. In addition, special meetings may be called by
the Chairman or any 2 Board members upon 72 hours written
notice to each member. All Board meetings shall be subject
to the Open Meetings Act. Three members of the Board shall
constitute a quorum, and 3 votes shall be required for any
final determination by the Board. The Board shall keep a
complete and accurate record of all its meetings. A
majority of the members of the Board shall constitute a

HB5146 - 337 - LRB100 18631 SMS 33856 b
quorum for the transaction of any business, for the
performance of any duty, or for the exercise of any power
which this Act requires the Board members to transact,
perform or exercise en banc, except that, upon order of the
Board, one of the Board members or an administrative law
judge designated by the Board may conduct any hearing
provided for under this Act or by Board rule and may
recommend findings and decisions to the Board. The Board
member or administrative law judge conducting such hearing
shall have all powers and rights granted to the Board in
this Act. The record made at the time of the hearing shall
be reviewed by the Board, or a majority thereof, and the
findings and decision of the majority of the Board shall
constitute the order of the Board in such case;
(9) To maintain records which are separate and distinct
from the records of any other State board or commission.
Such records shall be available for public inspection and
shall accurately reflect all Board proceedings;
(10) To file a written annual report with the Governor
on or before March 1 each year and such additional reports
as the Governor may request. The annual report shall
include a statement of receipts and disbursements by the
Board, actions taken by the Board, and any additional
information and recommendations which the Board may deem
valuable or which the Governor may request;
(11) (Blank);

HB5146 - 338 - LRB100 18631 SMS 33856 b
(12) (Blank);
(13) To assume responsibility for administration and
enforcement of the Video Gaming Act; and
(13.1) To assume responsibility for the administration
and enforcement of operations at electronic gaming
facilities pursuant to this Act and the Illinois Horse
Racing Act of 1975;
(13.2) To assume responsibility for the administration
and enforcement of gambling operations at the Chicago
Casino Development Authority's casino pursuant to this Act
and the Chicago Casino Development Authority Act; and
(14) To adopt, by rule, a code of conduct governing
Board members and employees that ensure, to the maximum
extent possible, that persons subject to this Code avoid
situations, relationships, or associations that may
represent or lead to a conflict of interest.
Internal controls and changes submitted by licensees must
be reviewed and either approved or denied with cause within 90
days after receipt of submission is deemed final by the
Illinois Gaming Board. In the event an internal control
submission or change does not meet the standards set by the
Board, staff of the Board must provide technical assistance to
the licensee to rectify such deficiencies within 90 days after
the initial submission and the revised submission must be
reviewed and approved or denied with cause within 90 days after
the date the revised submission is deemed final by the Board.

HB5146 - 339 - LRB100 18631 SMS 33856 b
For the purposes of this paragraph, "with cause" means that the
approval of the submission would jeopardize the integrity of
gaming. In the event the Board staff has not acted within the
timeframe, the submission shall be deemed approved.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations governed by this Act and the
Chicago Casino Development Authority Act. The Board shall have
all powers necessary and proper to fully and effectively
execute the provisions of this Act and the Chicago Casino
Development Authority Act, including, but not limited to, the
following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
riverboat gambling operations authorized under this Act
and the Chicago Casino Development Authority Act in this
State and all persons in places on riverboats where
gambling operations are conducted.
(3) To promulgate rules and regulations for the purpose
of administering the provisions of this Act and the Chicago
Casino Development Authority Act and to prescribe rules,
regulations and conditions under which all riverboat
gambling operations subject to this Act and the Chicago
Casino Development Authority Act in the State shall be

HB5146 - 340 - LRB100 18631 SMS 33856 b
conducted. Such rules and regulations are to provide for
the prevention of practices detrimental to the public
interest and for the best interests of riverboat gambling,
including rules and regulations regarding the inspection
of electronic gaming facilities, casinos, and such
riverboats, and the review of any permits or licenses
necessary to operate a riverboat, casino, or electronic
gaming facilities under any laws or regulations applicable
to riverboats, casinos, or electronic gaming facilities
and to impose penalties for violations thereof.
(4) To enter the office, riverboats, casinos,
electronic gaming facilities, and other facilities, or
other places of business of a licensee, where evidence of
the compliance or noncompliance with the provisions of this
Act and the Chicago Casino Development Authority Act is
likely to be found.
(5) To investigate alleged violations of this Act, the
Chicago Casino Development Authority Act, or the rules of
the Board and to take appropriate disciplinary action
against a licensee or a holder of an occupational license
for a violation, or institute appropriate legal action for
enforcement, or both.
(6) To adopt standards for the licensing of all persons
and entities under this Act and the Chicago Casino
Development Authority Act, as well as for electronic or
mechanical gambling games, and to establish fees for such

HB5146 - 341 - LRB100 18631 SMS 33856 b
licenses.
(7) To adopt appropriate standards for all electronic
gaming facilities, riverboats, casinos, and other
facilities authorized under this Act and the Chicago Casino
Development Authority Act.
(8) To require that the records, including financial or
other statements of any licensee under this Act and the
Chicago Casino Development Authority Act, shall be kept in
such manner as prescribed by the Board and that any such
licensee involved in the ownership or management of
gambling operations submit to the Board an annual balance
sheet and profit and loss statement, list of the
stockholders or other persons having a 1% or greater
beneficial interest in the gambling activities of each
licensee, and any other information the Board deems
necessary in order to effectively administer this Act and
the Chicago Casino Development Authority Act and all rules,
regulations, orders and final decisions promulgated under
this Act and the Chicago Casino Development Authority Act.
(9) To conduct hearings, issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the
production of books, records and other pertinent documents
in accordance with the Illinois Administrative Procedure
Act, and to administer oaths and affirmations to the
witnesses, when, in the judgment of the Board, it is
necessary to administer or enforce this Act, the Chicago

HB5146 - 342 - LRB100 18631 SMS 33856 b
Casino Development Authority Act, or the Board rules.
(10) To prescribe a form to be used by any licensee
involved in the ownership or management of gambling
operations as an application for employment for their
employees.
(11) To revoke or suspend licenses, other than the
license issued to the Chicago Casino Development
Authority, as the Board may see fit and in compliance with
applicable laws of the State regarding administrative
procedures, and to review applications for the renewal of
licenses. The Board may suspend an owners license (other
than the license issued to the Chicago Casino Development
Authority), electronic gaming license, or casino operator
license, without notice or hearing upon a determination
that the safety or health of patrons or employees is
jeopardized by continuing a gambling operation conducted
under that license riverboat's operation. The suspension
may remain in effect until the Board determines that the
cause for suspension has been abated. The Board may revoke
an the owners license (other than the license issued to the
Chicago Casino Development Authority), electronic gaming
license, or casino operator license upon a determination
that the licensee owner has not made satisfactory progress
toward abating the hazard.
(12) To eject or exclude or authorize the ejection or
exclusion of, any person from riverboat gambling

HB5146 - 343 - LRB100 18631 SMS 33856 b
facilities where that such person is in violation of this
Act or the Chicago Casino Development Authority Act, rules
and regulations thereunder, or final orders of the Board,
or where such person's conduct or reputation is such that
his or her presence within the riverboat gambling
facilities may, in the opinion of the Board, call into
question the honesty and integrity of the gambling
operations or interfere with the orderly conduct thereof;
provided that the propriety of such ejection or exclusion
is subject to subsequent hearing by the Board.
(13) To require all licensees of gambling operations to
utilize a cashless wagering system whereby all players'
money is converted to tokens, electronic cards, or chips
which shall be used only for wagering in the gambling
establishment.
(14) (Blank).
(15) To suspend, revoke or restrict licenses, other
than the license issued to the Chicago Casino Development
Authority, to require the removal of a licensee or an
employee of a licensee for a violation of this Act, the
Chicago Casino Development Authority Act, or a Board rule
or for engaging in a fraudulent practice, and to impose
civil penalties of up to $5,000 against individuals and up
to $10,000 or an amount equal to the daily gross receipts,
whichever is larger, against licensees for each violation
of any provision of the Act, the Chicago Casino Development

HB5146 - 344 - LRB100 18631 SMS 33856 b
Authority Act, any rules adopted by the Board, any order of
the Board or any other action which, in the Board's
discretion, is a detriment or impediment to riverboat
gambling operations.
(16) To hire employees to gather information, conduct
investigations and carry out any other tasks contemplated
under this Act or the Chicago Casino Development Authority
Act.
(17) To establish minimum levels of insurance to be
maintained by licensees.
(18) To authorize a licensee to sell or serve alcoholic
liquors, wine or beer as defined in the Liquor Control Act
of 1934 on board a riverboat or in a casino and to have
exclusive authority to establish the hours for sale and
consumption of alcoholic liquor on board a riverboat or in
a casino, notwithstanding any provision of the Liquor
Control Act of 1934 or any local ordinance, and regardless
of whether the riverboat makes excursions. The
establishment of the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino is an
exclusive power and function of the State. A home rule unit
may not establish the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino. This
subdivision (18) amendatory Act of 1991 is a denial and
limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois

HB5146 - 345 - LRB100 18631 SMS 33856 b
Constitution.
(19) After consultation with the U.S. Army Corps of
Engineers, to establish binding emergency orders upon the
concurrence of a majority of the members of the Board
regarding the navigability of water, relative to
excursions, in the event of extreme weather conditions,
acts of God or other extreme circumstances.
(20) To delegate the execution of any of its powers
under this Act or the Chicago Casino Development Authority
Act for the purpose of administering and enforcing this
Act, the Chicago Casino Development Authority Act, and the
its rules adopted by the Board under both Acts and
regulations hereunder.
(20.5) To approve any contract entered into on its
behalf.
(20.6) To appoint investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these
powers shall be limited to offenses or violations occurring
or committed in a casino, in an electronic gaming facility,
or on a riverboat or dock, as defined in subsections (d)
and (f) of Section 4, or as otherwise provided by this Act,
the Chicago Casino Development Authority Act, or any other
law.

HB5146 - 346 - LRB100 18631 SMS 33856 b
(20.7) To contract with the Department of State Police
for the use of trained and qualified State police officers
and with the Department of Revenue for the use of trained
and qualified Department of Revenue investigators to
conduct investigations, searches, seizures, arrests, and
other duties imposed under this Act or the Chicago Casino
Development Authority Act and to exercise all of the rights
and powers of peace officers, provided that the powers of
Department of Revenue investigators under this subdivision
(20.7) shall be limited to offenses or violations occurring
or committed in a casino, in an electronic gaming facility,
or on a riverboat or dock, as defined in subsections (d)
and (f) of Section 4, or as otherwise provided by this Act
or any other law. In the event the Department of State
Police or the Department of Revenue is unable to fill
contracted police or investigative positions, the Board
may appoint investigators to fill those positions pursuant
to subdivision (20.6).
(21) To adopt rules concerning the conduct of
electronic gaming.
(22) To have the same jurisdiction and supervision over
casinos and electronic gaming facilities as the Board has
over riverboats, including, but not limited to, the power
to (i) investigate, review, and approve contracts as that
power is applied to riverboats, (ii) adopt rules for
administering the provisions of this Act or the Chicago

HB5146 - 347 - LRB100 18631 SMS 33856 b
Casino Development Authority Act, (iii) adopt standards
for the licensing of all persons involved with a casino or
electronic gaming facility, (iv) investigate alleged
violations of this Act by any person involved with a casino
or electronic gaming facility, and (v) require that
records, including financial or other statements of any
casino or electronic gaming facility, shall be kept in such
manner as prescribed by the Board.
(23) To supervise and regulate the Chicago Casino
Development Authority in accordance with the Chicago
Casino Development Authority Act and the provisions of this
Act.
(24) (21) To take any other action as may be reasonable
or appropriate to enforce this Act, the Chicago Casino
Development Authority Act, and the rules adopted by the
Board under both Acts and regulations hereunder.
All Board powers enumerated in this Section in relation to
licensees shall apply equally to the holder of any casino
management contract entered into pursuant to the Chicago Casino
Development Authority Act.
(d) The Board may seek and shall receive the cooperation of
the Department of State Police in conducting background
investigations of applicants and in fulfilling its
responsibilities under this Section. Costs incurred by the
Department of State Police as a result of such cooperation
shall be paid by the Board in conformance with the requirements

HB5146 - 348 - LRB100 18631 SMS 33856 b
of Section 2605-400 of the Department of State Police Law (20
ILCS 2605/2605-400).
(e) The Board must authorize to each investigator and to
any other employee of the Board exercising the powers of a
peace officer a distinct badge that, on its face, (i) clearly
states that the badge is authorized by the Board and (ii)
contains a unique identifying number. No other badge shall be
authorized by the Board.
(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
(230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
Sec. 5.1. Disclosure of records.
(a) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, provide information furnished by an applicant or
licensee concerning the applicant or licensee, his products,
services or gambling enterprises and his business holdings, as
follows:
(1) The name, business address and business telephone
number of any applicant or licensee.
(2) An identification of any applicant or licensee
including, if an applicant or licensee is not an
individual, the names and addresses of all stockholders and
directors, if the entity is a corporation; the names and
addresses of all members, if the entity is a limited
liability company; the names and addresses of all partners,

HB5146 - 349 - LRB100 18631 SMS 33856 b
both general and limited, if the entity is a partnership;
and the names and addresses of all beneficiaries, if the
entity is a trust the state of incorporation or
registration, the corporate officers, and the identity of
all shareholders or participants. If an applicant or
licensee has a pending registration statement filed with
the Securities and Exchange Commission, only the names of
those persons or entities holding interest of 5% or more
must be provided.
(3) An identification of any business, including, if
applicable, the state of incorporation or registration, in
which an applicant or licensee or an applicant's or
licensee's spouse or children has an equity interest of
more than 1%. If an applicant or licensee is a corporation,
partnership or other business entity, the applicant or
licensee shall identify any other corporation, partnership
or business entity in which it has an equity interest of 1%
or more, including, if applicable, the state of
incorporation or registration. This information need not
be provided by a corporation, partnership or other business
entity that has a pending registration statement filed with
the Securities and Exchange Commission.
(4) Whether an applicant or licensee has been indicted,
convicted, pleaded guilty or nolo contendere, or forfeited
bail concerning any criminal offense under the laws of any
jurisdiction, either felony or misdemeanor (except for

HB5146 - 350 - LRB100 18631 SMS 33856 b
traffic violations), including the date, the name and
location of the court, arresting agency and prosecuting
agency, the case number, the offense, the disposition and
the location and length of incarceration.
(5) Whether an applicant or licensee has had any
license or certificate issued by a licensing authority in
Illinois or any other jurisdiction denied, restricted,
suspended, revoked or not renewed and a statement
describing the facts and circumstances concerning the
denial, restriction, suspension, revocation or
non-renewal, including the licensing authority, the date
each such action was taken, and the reason for each such
action.
(6) Whether an applicant or licensee has ever filed or
had filed against it a proceeding in bankruptcy or has ever
been involved in any formal process to adjust, defer,
suspend or otherwise work out the payment of any debt
including the date of filing, the name and location of the
court, the case and number of the disposition.
(7) Whether an applicant or licensee has filed, or been
served with a complaint or other notice filed with any
public body, regarding the delinquency in the payment of,
or a dispute over the filings concerning the payment of,
any tax required under federal, State or local law,
including the amount, type of tax, the taxing agency and
time periods involved.

HB5146 - 351 - LRB100 18631 SMS 33856 b
(8) A statement listing the names and titles of all
public officials or officers of any unit of government, and
relatives of said public officials or officers who,
directly or indirectly, own any financial interest in, have
any beneficial interest in, are the creditors of or hold
any debt instrument issued by, or hold or have any interest
in any contractual or service relationship with, an
applicant or licensee.
(9) Whether an applicant or licensee has made, directly
or indirectly, any political contribution, or any loans,
donations or other payments, to any candidate or office
holder, within 5 years from the date of filing the
application, including the amount and the method of
payment.
(10) The name and business telephone number of the
counsel representing an applicant or licensee in matters
before the Board.
(11) A description of any proposed or approved
riverboat or casino gaming or electronic gaming operation,
including the type of boat, home dock or casino or
electronic gaming location, expected economic benefit to
the community, anticipated or actual number of employees,
any statement from an applicant or licensee regarding
compliance with federal and State affirmative action
guidelines, projected or actual admissions and projected
or actual adjusted gross gaming receipts.

HB5146 - 352 - LRB100 18631 SMS 33856 b
(12) A description of the product or service to be
supplied by an applicant for a supplier's license.
(b) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, also provide the following information:
(1) The amount of the wagering tax and admission tax
paid daily to the State of Illinois by the holder of an
owner's license.
(2) Whenever the Board finds an applicant for an
owner's license unsuitable for licensing, a copy of the
written letter outlining the reasons for the denial.
(3) Whenever the Board has refused to grant leave for
an applicant to withdraw his application, a copy of the
letter outlining the reasons for the refusal.
(c) Subject to the above provisions, the Board shall not
disclose any information which would be barred by:
(1) Section 7 of the Freedom of Information Act; or
(2) The statutes, rules, regulations or
intergovernmental agreements of any jurisdiction.
(d) The Board may assess fees for the copying of
information in accordance with Section 6 of the Freedom of
Information Act.
(Source: P.A. 96-1392, eff. 1-1-11.)
(230 ILCS 10/5.3 new)
Sec. 5.3. Ethical conduct.

HB5146 - 353 - LRB100 18631 SMS 33856 b
(a) Officials and employees of the corporate authority of a
host community must carry out their duties and responsibilities
in such a manner as to promote and preserve public trust and
confidence in the integrity and conduct of gaming.
(b) Officials and employees of the corporate authority of a
host community shall not use or attempt to use his or her
official position to secure or attempt to secure any privilege,
advantage, favor, or influence for himself or herself or
others.
(c) Officials and employees of the corporate authority of a
host community may not have a financial interest, directly or
indirectly, in his or her own name or in the name of any other
person, partnership, association, trust, corporation, or other
entity in any contract or subcontract for the performance of
any work for a riverboat or casino that is located in the host
community. This prohibition shall extend to the holding or
acquisition of an interest in any entity identified by Board
action that, in the Board's judgment, could represent the
potential for or the appearance of a financial interest. The
holding or acquisition of an interest in such entities through
an indirect means, such as through a mutual fund, shall not be
prohibited, except that the Board may identify specific
investments or funds that, in its judgment, are so influenced
by gaming holdings as to represent the potential for or the
appearance of a conflict of interest.
(d) Officials and employees of the corporate authority of a

HB5146 - 354 - LRB100 18631 SMS 33856 b
host community may not accept any gift, gratuity, service,
compensation, travel, lodging, or thing of value, with the
exception of unsolicited items of an incidental nature, from
any person, corporation, or entity doing business with the
riverboat or casino that is located in the host community.
(e) Officials and employees of the corporate authority of a
host community shall not, during the period that the person is
an official or employee of the corporate authority or for a
period of 2 years immediately after leaving such office,
knowingly accept employment or receive compensation or fees for
services from a person or entity, or its parent or affiliate,
that has engaged in business with the riverboat or casino that
is located in the host community that resulted in contracts
with an aggregate value of at least $25,000 or if that official
or employee has made a decision that directly applied to the
person or entity, or its parent or affiliate.
(f) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not have a
financial interest, directly or indirectly, in his or her own
name or in the name of any other person, partnership,
association, trust, corporation, or other entity in any
contract or subcontract for the performance of any work for a
riverboat or casino in the host community. This prohibition
shall extend to the holding or acquisition of an interest in
any entity identified by Board action that, in the judgment of
the Board, could represent the potential for or the appearance

HB5146 - 355 - LRB100 18631 SMS 33856 b
of a conflict of interest. The holding or acquisition of an
interest in such entities through an indirect means, such as
through a mutual fund, shall not be prohibited, expect that the
Board may identify specific investments or funds that, in its
judgment, are so influenced by gaming holdings as to represent
the potential for or the appearance of a conflict of interest.
(g) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not accept
any gift, gratuity, service, compensation, travel, lodging, or
thing of value, with the exception of unsolicited items of an
incidental nature, from any person, corporation, or entity
doing business with the riverboat or casino that is located in
the host community.
(h) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not, during
the period that the person is an official of the corporate
authority or for a period of 2 years immediately after leaving
such office or employment, knowingly accept employment or
receive compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the riverboat or casino that is located in the
host community that resulted in contracts with an aggregate
value of at least $25,000 or if that official or employee has
made a decision that directly applied to the person or entity,
or its parent or affiliate.
(i) Officials and employees of the corporate authority of a

HB5146 - 356 - LRB100 18631 SMS 33856 b
host community shall not attempt, in any way, to influence any
person or entity doing business with the riverboat or casino
that is located in the host community or any officer, agent, or
employee thereof to hire or contract with any person or entity
for any compensated work.
(j) Any communication between an official of the corporate
authority of a host community and any applicant for an owners
license in the host community, or an officer, director, or
employee of a riverboat or casino in the host community,
concerning any matter relating in any way to gaming shall be
disclosed to the Board. Such disclosure shall be in writing by
the official within 30 days after the communication and shall
be filed with the Board. Disclosure must consist of the date of
the communication, the identity and job title of the person
with whom the communication was made, a brief summary of the
communication, the action requested or recommended, all
responses made, the identity and job title of the person making
the response, and any other pertinent information. Public
disclosure of the written summary provided to the Board and the
Gaming Board shall be subject to the exemptions provided under
the Freedom of Information Act.
This subsection (j) shall not apply to communications
regarding traffic, law enforcement, security, environmental
issues, city services, transportation, or other routine
matters concerning the ordinary operations of the riverboat or
casino. For purposes of this subsection (j), "ordinary

HB5146 - 357 - LRB100 18631 SMS 33856 b
operations" means operations relating to the casino or
riverboat facility other than the conduct of gambling
activities, and "routine matters" includes the application
for, issuance of, renewal of, and other processes associated
with municipal permits and licenses.
(k) Any official or employee who violates any provision of
this Section is guilty of a Class 4 felony.
(l) For purposes of this Section, "host community" or "host
municipality" means a unit of local government that contains a
riverboat or casino within its borders, but does not include
the City of Chicago or the Chicago Casino Development
Authority.
(230 ILCS 10/6) (from Ch. 120, par. 2406)
Sec. 6. Application for Owners License.
(a) A qualified person may apply to the Board for an owners
license to conduct a riverboat gambling operation as provided
in this Act. The application shall be made on forms provided by
the Board and shall contain such information as the Board
prescribes, including but not limited to the identity of the
riverboat on which such gambling operation is to be conducted,
if applicable, and the exact location where such riverboat or
casino will be located docked, a certification that the
riverboat will be registered under this Act at all times during
which gambling operations are conducted on board, detailed
information regarding the ownership and management of the

HB5146 - 358 - LRB100 18631 SMS 33856 b
applicant, and detailed personal information regarding the
applicant. Any application for an owners license to be
re-issued on or after June 1, 2003 shall also include the
applicant's license bid in a form prescribed by the Board.
Information provided on the application shall be used as a
basis for a thorough background investigation which the Board
shall conduct with respect to each applicant. An incomplete
application shall be cause for denial of a license by the
Board.
(a-5) In addition to any other information required under
this Section, each application for an owners license must
include the following information:
(1) The history and success of the applicant and each
person and entity disclosed under subsection (c) of this
Section in developing tourism facilities ancillary to
gaming, if applicable.
(2) The likelihood that granting a license to the
applicant will lead to the creation of quality, living wage
jobs and permanent, full-time jobs for residents of the
State and residents of the unit of local government that is
designated as the home dock of the proposed facility where
gambling is to be conducted by the applicant.
(3) The projected number of jobs that would be created
if the license is granted and the projected number of new
employees at the proposed facility where gambling is to be
conducted by the applicant.

HB5146 - 359 - LRB100 18631 SMS 33856 b
(4) The record, if any, of the applicant and its
developer in meeting commitments to local agencies,
community-based organizations, and employees at other
locations where the applicant or its developer has
performed similar functions as they would perform if the
applicant were granted a license.
(5) Identification of adverse effects that might be
caused by the proposed facility where gambling is to be
conducted by the applicant, including the costs of meeting
increased demand for public health care, child care, public
transportation, affordable housing, and social services,
and a plan to mitigate those adverse effects.
(6) The record, if any, of the applicant and its
developer regarding compliance with:
(A) federal, state, and local discrimination, wage
and hour, disability, and occupational and
environmental health and safety laws; and
(B) state and local labor relations and employment
laws.
(7) The applicant's record, if any, in dealing with its
employees and their representatives at other locations.
(8) A plan concerning the utilization of
minority-owned and female-owned businesses and concerning
the hiring of minorities and females.
(9) Evidence the applicant used its best efforts to
reach a goal of 25% ownership representation by minority

HB5146 - 360 - LRB100 18631 SMS 33856 b
persons and 5% ownership representation by females.
(b) Applicants shall submit with their application all
documents, resolutions, and letters of support from the
governing body that represents the municipality or county
wherein the licensee will be located dock.
(c) Each applicant shall disclose the identity of every
person or entity , association, trust or corporation having a
greater than 1% direct or indirect pecuniary interest in the
riverboat gambling operation with respect to which the license
is sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of all the
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a partnership, the names and
addresses of all partners, both general and limited.
(d) An application shall be filed and considered in
accordance with the rules of the Board. Each application shall
be accompanied by a non-refundable An application fee of
$100,000. In addition, a non-refundable fee of $50,000 shall be
paid at the time of filing to defray the costs associated with
the background investigation conducted by the Board. If the
costs of the investigation exceed $50,000, the applicant shall
pay the additional amount to the Board within 7 days after
requested by the Board. If the costs of the investigation are
less than $50,000, the applicant shall receive a refund of the
remaining amount. All information, records, interviews,
reports, statements, memoranda or other data supplied to or

HB5146 - 361 - LRB100 18631 SMS 33856 b
used by the Board in the course of its review or investigation
of an application for a license or a renewal under this Act
shall be privileged, strictly confidential and shall be used
only for the purpose of evaluating an applicant for a license
or a renewal. Such information, records, interviews, reports,
statements, memoranda or other data shall not be admissible as
evidence, nor discoverable in any action of any kind in any
court or before any tribunal, board, agency or person, except
for any action deemed necessary by the Board. The application
fee shall be deposited into the Gaming Facilities Fee Revenue
Fund.
(e) The Board shall charge each applicant a fee set by the
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. These fees
shall be paid into the State Police Services Fund. In order to
expedite the application process, the Board may establish rules
allowing applicants to acquire criminal background checks and
financial integrity reviews as part of the initial application
process from a list of vendors approved by the Board.
(f) The licensed owner shall be the person primarily
responsible for the boat or casino itself. Only one riverboat
gambling operation may be authorized by the Board on any
riverboat or in any casino. The applicant must identify the
each riverboat or premises it intends to use and certify that
the riverboat or premises: (1) has the authorized capacity

HB5146 - 362 - LRB100 18631 SMS 33856 b
required in this Act; (2) is accessible to persons with
disabilities; and (3) is fully registered and licensed in
accordance with any applicable laws.
(g) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(Source: P.A. 99-143, eff. 7-27-15.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners licenses.
(a) The Board shall issue owners licenses to persons or
entities , firms or corporations which apply for such licenses
upon payment to the Board of the non-refundable license fee as
provided in subsection (e) or (e-5) set by the Board, upon
payment of a $25,000 license fee for the first year of
operation and a $5,000 license fee for each succeeding year and
upon a determination by the Board that the applicant is
eligible for an owners license pursuant to this Act, the
Chicago Casino Development Authority Act, and the rules of the
Board. From the effective date of this amendatory Act of the
95th General Assembly until (i) 3 years after the effective
date of this amendatory Act of the 95th General Assembly, (ii)
the date any organization licensee begins to operate a slot
machine or video game of chance under the Illinois Horse Racing
Act of 1975 or this Act, (iii) the date that payments begin
under subsection (c-5) of Section 13 of the Act, or (iv) the
wagering tax imposed under Section 13 of this Act is increased

HB5146 - 363 - LRB100 18631 SMS 33856 b
by law to reflect a tax rate that is at least as stringent or
more stringent than the tax rate contained in subsection (a-3)
of Section 13, or (v) when an owners licensee holding a license
issued pursuant to Section 7.1 of this Act begins conducting
gaming, whichever occurs first, as a condition of licensure and
as an alternative source of payment for those funds payable
under subsection (c-5) of Section 13 of this the Riverboat
Gambling Act, any owners licensee that holds or receives its
owners license on or after the effective date of this
amendatory Act of the 94th General Assembly, other than an
owners licensee operating a riverboat with adjusted gross
receipts in calendar year 2004 of less than $200,000,000, must
pay into the Horse Racing Equity Trust Fund, in addition to any
other payments required under this Act, an amount equal to 3%
of the adjusted gross receipts received by the owners licensee.
The payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person, firm
or entity corporation is ineligible to receive an owners
license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other

HB5146 - 364 - LRB100 18631 SMS 33856 b
jurisdiction;
(3) the person has submitted an application for a
license under this Act or the Chicago Casino Development
Authority Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3) or (4) is an
officer, director or managerial employee of the entity firm
or corporation;
(6) the entity firm or corporation employs a person
defined in (1), (2), (3) or (4) who participates in the
management or operation of gambling operations authorized
under this Act or the Chicago Casino Development Authority
Act;
(7) (blank); or
(8) a license of the person or entity , firm or
corporation issued under this Act or the Chicago Casino
Development Authority Act, or a license to own or operate
gambling facilities in any other jurisdiction, has been
revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret this amendatory Act of the 95th General
Assembly. For the purposes of this paragraph, "rules" is given
the meaning given to that term in Section 1-70 of the Illinois

HB5146 - 365 - LRB100 18631 SMS 33856 b
Administrative Procedure Act.
(a-1) Upon approval of the members of the Chicago Casino
Development Board, the Chicago Casino Development Authority's
executive director, and the Chicago casino operator licensee,
the Board shall issue an owners license to the Chicago Casino
Development Authority that authorizes the conduct of gambling
operations in a casino or in an airport located in the City of
Chicago.
(b) In determining whether to grant an owners license to an
applicant other than the Chicago Casino Development Authority,
the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of riverboat gambling;
(3) the highest prospective total revenue to be derived
by the State from the conduct of riverboat gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, women, and persons with a disability and the good

HB5146 - 366 - LRB100 18631 SMS 33856 b
faith affirmative action plan of each applicant to recruit,
train and upgrade minority persons, women, and persons with
a disability in all employment classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat or casino;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license which
the Board may adopt by rule; and
(8) the The amount of the applicant's license bid; .
(9) the extent to which the applicant or the proposed
host municipality plans to enter into revenue sharing
agreements with communities other than the host
municipality; and
(10) the extent to which the ownership of an applicant
includes the most qualified number of minority persons,
females, and persons with a disability.
(c) Each owners license shall specify the place where the
casino riverboats shall operate or the riverboat shall operate
and dock.
(d) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints.
(e) In addition to any licenses authorized under subsection
(e-5) of this Section, the The Board may issue up to 10

HB5146 - 367 - LRB100 18631 SMS 33856 b
licenses authorizing the holders of such licenses to own
riverboats. In the application for an owners license, the
applicant shall state the dock at which the riverboat is based
and the water on which the riverboat will be located. The Board
shall issue 5 licenses to become effective not earlier than
January 1, 1991. Three of such licenses shall authorize
riverboat gambling on the Mississippi River, or, with approval
by the municipality in which the riverboat was docked on August
7, 2003 and with Board approval, be authorized to relocate to a
new location, in a municipality that (1) borders on the
Mississippi River or is within 5 miles of the city limits of a
municipality that borders on the Mississippi River and (2), on
August 7, 2003, had a riverboat conducting riverboat gambling
operations pursuant to a license issued under this Act; one of
which shall authorize riverboat gambling from a home dock in
the city of East St. Louis. One other license shall authorize
riverboat gambling on the Illinois River in Tazewell County or,
with Board approval, shall authorize the riverboat to relocate
to a new location that is no more than 10 miles away from its
original location, in a municipality that borders on the
Illinois River or is within 5 miles of the city limits of a
municipality that borders on the Illinois River south of
Marshall County. The Board shall issue one additional license
to become effective not earlier than March 1, 1992, which shall
authorize riverboat gambling on the Des Plaines River in Will
County. The Board may issue 4 additional licenses to become

HB5146 - 368 - LRB100 18631 SMS 33856 b
effective not earlier than March 1, 1992. In determining the
water upon which riverboats will operate, the Board shall
consider the economic benefit which riverboat gambling confers
on the State, and shall seek to assure that all regions of the
State share in the economic benefits of riverboat gambling.
In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an applicant
that has not submitted the highest license bid, but if it does
not select the highest bidder, the Board shall issue a written
decision explaining why another applicant was selected and
identifying the factors set forth in this Section that favored
the winning bidder. The fee for issuance or renewal of a
license pursuant to this subsection (e) shall be $100,000.
(e-5) In addition to licenses authorized under subsection
(e) of this Section:
(1) the Board shall issue one owners license
authorizing the conduct of casino gambling in the City of
Chicago;
(2) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Danville;

HB5146 - 369 - LRB100 18631 SMS 33856 b
(3) the Board may issue one owners license authorizing
the conduct of riverboat gambling located in one of the
following municipalities in Lake County: Park City, North
Chicago, or Waukegan;
(4) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Rockford;
(5) the Board may issue one owners license authorizing
the conduct of riverboat gambling in a municipality that is
wholly or partially located in one of the following
townships of Cook County: Bloom, Bremen, Calumet, Rich,
Thornton, or Worth Township; and
(6) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the unincorporated
area of Williamson County adjacent to the Big Muddy River.
Each application for a license pursuant to this subsection
(e-5) shall be submitted to the Board no later than 120 days
after the effective date of this amendatory Act of the 100th
General Assembly and shall include the non-refundable
application fee and the non-refundable background
investigation fee as provided in subsection (d) of Section 6 of
this Act. In the event that an applicant submits an application
for a license pursuant to this subsection (e-5) prior to the
effective date of this amendatory Act of the 100th General
Assembly, such applicant shall submit the non-refundable
application fee and background investigation fee as provided in
subsection (d) of Section 6 of this Act no later than 6 months

HB5146 - 370 - LRB100 18631 SMS 33856 b
after the effective date of this amendatory Act of the 100th
General Assembly.
The Board shall consider issuing a license pursuant to
paragraphs (2) through (6) of this subsection only after the
corporate authority of the municipality or the county board of
the county in which the riverboat shall be located has
certified to the Board the following:
(i) that the applicant has negotiated with the
corporate authority or county board in good faith;
(ii) that the applicant and the corporate authority or
county board have mutually agreed on the permanent location
of the riverboat;
(iii) that the applicant and the corporate authority or
county board have mutually agreed on the temporary location
of the riverboat;
(iv) that the applicant and the corporate authority or
the county board have mutually agreed on the percentage of
revenues that will be shared with the municipality or
county, if any; and
(v) that the applicant and the corporate authority or
county board have mutually agreed on any zoning, licensing,
public health, or other issues that are within the
jurisdiction of the municipality or county.
At least 7 days before the corporate authority of a
municipality or county board of the county submits a
certification to the Board concerning items (i) through (v) of

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this subsection, it shall hold a public hearing to discuss
items (i) through (v), as well as any other details concerning
the proposed riverboat in the municipality or county. The
corporate authority or county board must subsequently
memorialize the details concerning the proposed riverboat in a
resolution that must be adopted by a majority of the corporate
authority or county board before any certification is sent to
the Board. The Board shall not alter, amend, change, or
otherwise interfere with any agreement between the applicant
and the corporate authority of the municipality or county board
of the county regarding the location of any temporary or
permanent facility.
In addition, prior to the Board issuing the owners license
authorized under paragraph (4) of subsection (e-5), an impact
study shall be completed to determine what location in the city
will provide the greater impact to the region, including the
creation of jobs and the generation of tax revenue.
(e-10) The licenses authorized under subsection (e-5) of
this Section shall be issued within 12 months after the date
the license application is submitted. If the Board does not
issue the licenses within that time period, then the Board
shall give a written explanation to the applicant as to why it
has not reached a determination and when it reasonably expects
to make a determination. The fee for the issuance or renewal of
a license issued pursuant to this subsection (e-10) shall be
$100,000. Additionally, a licensee located outside of Cook

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County shall pay a minimum initial fee of $17,500 per gaming
position, and a licensee located in Cook County shall pay a
minimum initial fee of $30,000 per gaming position. The initial
fees payable under this subsection (e-10) shall be deposited
into the Gaming Facilities Fee Revenue Fund.
(e-15) Each licensee of a license authorized under
subsection (e-5) of this Section shall make a reconciliation
payment 3 years after the date the licensee begins operating in
an amount equal to 75% of the adjusted gross receipts for the
most lucrative 12-month period of operations, minus an amount
equal to the initial payment per gaming position paid by the
specific licensee. If this calculation results in a negative
amount, then the licensee is not entitled to any reimbursement
of fees previously paid. This reconciliation payment may be
made in installments over a period of no more than 2 years,
subject to Board approval. Any installment payments shall
include an annual market interest rate as determined by the
Board. All payments by licensees under this subsection (e-15)
shall be deposited into the Gaming Facilities Fee Revenue Fund.
(e-20) In addition to any other revocation powers granted
to the Board under this Act, the Board may revoke the owners
license of a licensee, other than the Chicago Casino
Development Authority, which fails to begin conducting
gambling within 15 months of receipt of the Board's approval of
the application if the Board determines that license revocation
is in the best interests of the State.

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(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of each
of the first 10 licenses, which shall be issued for a 3 year
period, all licenses are renewable annually upon payment of the
fee and a determination by the Board that the licensee
continues to meet all of the requirements of this Act and the
Board's rules. However, for licenses renewed on or after May 1,
1998, including casino operator licenses, renewal shall be for
a period of 4 years, unless the Board sets a shorter period.
Notwithstanding any provision in this subsection (g) to the
contrary, any license that is awarded to the Chicago Casino
Development Authority shall not expire, but it shall be subject
to the provisions of this Act and the rules of the Board.
(h) An owners license, except for an owners license issued
under subsection (e-5) of this Section, shall entitle the
licensee to own up to 2 riverboats.
An owners licensee of a casino or riverboat that is located
in the City of Chicago pursuant to paragraph (1) of subsection
(e-5) of this Section shall limit the number of gaming
positions to 4,000 for such owner. An owners licensee
authorized under subsection (e) or paragraph (2), (3), (4), or

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(5) of subsection (e-5) of this Section shall limit the number
of gaming positions to 1,600 for any such owners license,
except as further provided in subsection (h-10) of this
Section. An owners licensee authorized under paragraph (6) of
subsection (e-5) of this Section A licensee shall limit the
number of gaming positions gambling participants to 1,200 for
any such owner. The initial fee for each gaming position
obtained on or after the effective date of this amendatory Act
of the 100th General Assembly shall be a minimum of $17,500 for
licensees not located in Cook County and a minimum of $30,000
for licensees located in Cook County, in addition to the
reconciliation payment, as set forth in subsections (e-15) or
(h-5) of this Section owners license. The fees under this
subsection (h) shall be deposited into the Gaming Facilities
Fee Revenue Fund.
Each owners licensee shall reserve its gaming positions
within 90 days after issuance of its owners license. The Board
may grant an extension to this 90-day period, provided that the
owners licensee submits a written request and explanation as to
why it is unable to reserve its positions within the 90-day
period.
A licensee may operate both of its riverboats concurrently,
provided that the total number of gaming positions gambling
participants on both riverboats does not exceed the limit
established pursuant to this subsection and subsection (h-10)
of this Section 1,200. Riverboats licensed to operate on the

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Mississippi River and the Illinois River south of Marshall
County shall have an authorized capacity of at least 500
persons. Any other riverboat licensed under this Act shall have
an authorized capacity of at least 400 persons.
(h-5) An owners licensee who conducted gambling operations
prior to January 1, 2012 and purchases positions pursuant to
subsection (h-10) of this Section on or after the effective
date of this amendatory Act of the 100th General Assembly must
pay a minimum initial fee of $17,500 per additional gaming
position if the licensee is located outside Cook County and a
minimum initial fee of $30,000 per additional gaming position
if the licensee is located in Cook County, as stated in
subsection (h) of this Section. These initial fees shall be
deposited into the Gaming Facilities Fee Revenue Fund.
Additionally, that owners licensee shall make a reconciliation
payment 3 years after any additional gaming positions obtained
pursuant to subsection (h-10) begin operating in an amount
equal to 75% of the owners licensee's average gross receipts
for the most lucrative 12-month period of operations minus an
amount equal to the initial fee that the owners licensee paid
per additional gaming position. For purposes of this subsection
(h-5), "average gross receipts" means (i) the increase in
adjusted gross receipts for the most lucrative 12-month period
of operations over the adjusted gross receipts for 2017,
multiplied by (ii) the percentage derived by dividing the
number of additional gaming positions that an owners licensee

HB5146 - 376 - LRB100 18631 SMS 33856 b
had obtained pursuant to subsection (h-10) by the total number
of gaming positions operated by the owners licensee. If this
calculation results in a negative amount, then the owners
licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 2 years, subject to
Board approval. Any installment payments shall include an
annual market interest rate as determined by the Board. These
reconciliation payments shall be deposited into the Gaming
Facilities Fee Revenue Fund.
(h-10) For owners licensees authorized under paragraphs
(2) through (5) of subsection (e-5) of this Section, the
application for such new owners licenses shall ask the
applicants to stipulate in their applications the number of
gaming positions each applicant would like to reserve, up to
1,600 gaming positions. Once the last winning applicant for
each of these owners licenses has been selected by the Board,
the Board shall publish the number of gaming positions reserved
and unreserved by each winning applicant, shall accept requests
for additional gaming positions from any winning applicants or
owners licensee who initially reserved 1,600 gaming positions,
and shall allocate expeditiously the unreserved gaming
positions to such requesting winning applicants or owners
licensees in a manner to maximize revenue to the State;
provided, however, that no owners licensee (other than the
Chicago Casino Development Authority) shall obtain more than

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2,000 positions total.
In the event that not all of the unreserved gaming
positions described in the first and second paragraphs of this
subsection (h-10) were requested by owners licensees and
applicants, then until there are no longer unreserved gaming
positions, the Board periodically shall govern a process to
allocate the unreserved gaming positions in a manner to
maximize revenue to the State.
Unreserved gaming positions retained from and allocated to
owners licensees by the Board pursuant to this subsection
(h-10) shall not be allocated to electronic gaming licensees
pursuant to subsection (e) of Section 7.7 of this Act.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from the
Board necessary for the operation of a riverboat or casino,
including a liquor license, a license to prepare and serve food
for human consumption, and other necessary licenses. All use,
occupation and excise taxes which apply to the sale of food and
beverages in this State and all taxes imposed on the sale or
use of tangible personal property apply to such sales aboard
the riverboat or in the casino.
(j) The Board may issue or re-issue a license authorizing a
riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a

HB5146 - 378 - LRB100 18631 SMS 33856 b
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(k) An owners licensee may conduct land-based gambling
operations upon approval by the Board.
(l) An owners licensee may conduct gaming at a temporary
facility pending the construction of a permanent facility or
the remodeling or relocation of an existing facility to
accommodate gaming participants for up to 24 months after the
temporary facility begins to conduct gaming. Upon request by an
owners licensee and upon a showing of good cause by the owners
licensee, the Board shall extend the period during which the
licensee may conduct gaming at a temporary facility by up to 12
months. The Board shall make rules concerning the conduct of
gaming from temporary facilities.
(Source: P.A. 100-391, eff. 8-25-17.)
(230 ILCS 10/7.3)
Sec. 7.3. State conduct of gambling operations.
(a) If, after reviewing each application for a re-issued
license, the Board determines that the highest prospective
total revenue to the State would be derived from State conduct

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of the gambling operation in lieu of re-issuing the license,
the Board shall inform each applicant of its decision. The
Board shall thereafter have the authority, without obtaining an
owners license, to conduct casino or riverboat gambling
operations as previously authorized by the terminated,
expired, revoked, or nonrenewed license through a licensed
manager selected pursuant to an open and competitive bidding
process as set forth in Section 7.5 and as provided in Section
7.4.
(b) The Board may locate any casino or riverboat on which a
gambling operation is conducted by the State in any home dock
or other location authorized by Section 3(c) upon receipt of
approval from a majority vote of the governing body of the
municipality or county, as the case may be, in which the
riverboat will dock.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations conducted by the State
provided for in this Act and the Chicago Casino Development
Authority Act and shall have all powers necessary and proper to
fully and effectively execute the provisions of this Act and
the Chicago Casino Development Authority Act relating to
gambling operations conducted by the State.
(d) The maximum number of owners licenses authorized under
Section 7 7(e) shall be reduced by one for each instance in
which the Board authorizes the State to conduct a casino or
riverboat gambling operation under subsection (a) in lieu of

HB5146 - 380 - LRB100 18631 SMS 33856 b
re-issuing a license to an applicant under Section 7.1.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7.5)
Sec. 7.5. Competitive Bidding. When the Board determines
that (i) it will re-issue an owners license pursuant to an open
and competitive bidding process, as set forth in Section 7.1,
(ii) or that it will issue a managers license pursuant to an
open and competitive bidding process, as set forth in Section
7.4, or (iii) it will issue an owners license pursuant to an
open and competitive bidding process, as set forth in Section
7.12, the open and competitive bidding process shall adhere to
the following procedures:
(1) The Board shall make applications for owners and
managers licenses available to the public and allow a
reasonable time for applicants to submit applications to the
Board.
(2) During the filing period for owners or managers license
applications, the Board may retain the services of an
investment banking firm to assist the Board in conducting the
open and competitive bidding process.
(3) After receiving all of the bid proposals, the Board
shall open all of the proposals in a public forum and disclose
the prospective owners or managers names, venture partners, if
any, and, in the case of applicants for owners licenses, the
locations of the proposed development sites.

HB5146 - 381 - LRB100 18631 SMS 33856 b
(4) The Board shall summarize the terms of the proposals
and may make this summary available to the public.
(5) The Board shall evaluate the proposals within a
reasonable time and select no more than 3 final applicants to
make presentations of their proposals to the Board.
(6) The final applicants shall make their presentations to
the Board on the same day during an open session of the Board.
(7) As soon as practicable after the public presentations
by the final applicants, the Board, in its discretion, may
conduct further negotiations among the 3 final applicants.
During such negotiations, each final applicant may increase its
license bid or otherwise enhance its bid proposal. At the
conclusion of such negotiations, the Board shall select the
winning proposal. In the case of negotiations for an owners
license, the Board may, at the conclusion of such negotiations,
make the determination allowed under Section 7.3(a).
(8) Upon selection of a winning bid, the Board shall
evaluate the winning bid within a reasonable period of time for
licensee suitability in accordance with all applicable
statutory and regulatory criteria.
(9) If the winning bidder is unable or otherwise fails to
consummate the transaction, (including if the Board determines
that the winning bidder does not satisfy the suitability
requirements), the Board may, on the same criteria, select from
the remaining bidders or make the determination allowed under
Section 7.3(a).

HB5146 - 382 - LRB100 18631 SMS 33856 b
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7.7 new)
Sec. 7.7. Electronic gaming.
(a) The General Assembly finds that the horse racing and
riverboat gambling industries share many similarities and
collectively comprise the bulk of the State's gaming industry.
One feature common to both industries is that each is highly
regulated by the State of Illinois. The General Assembly
further finds, however, that despite their shared features each
industry is distinct from the other in that horse racing is and
continues to be intimately tied to Illinois' agricultural
economy and is, at its core, a spectator sport. This
distinction requires the General Assembly to utilize different
methods to regulate and promote the horse racing industry
throughout the State. The General Assembly finds that in order
to promote live horse racing as a spectator sport in Illinois
and the agricultural economy of this State, it is necessary to
allow electronic gaming at Illinois race tracks as an ancillary
use given the success of other states in increasing live racing
purse accounts and improving the quality of horses
participating in horse race meetings.
(b) The Illinois Gaming Board shall award one electronic
gaming license to each person or entity having operating
control of a race track that applies under Section 56 of the
Illinois Horse Racing Act of 1975, subject to the application

HB5146 - 383 - LRB100 18631 SMS 33856 b
and eligibility requirements of this Section. Within 60 days
after the effective date of this amendatory Act of the 100th
General Assembly, a person or entity having operating control
of a race track may submit an application for an electronic
gaming license. The application shall be made on such forms as
provided by the Board and shall contain such information as the
Board prescribes, including, but not limited to, the identity
of any race track at which electronic gaming will be conducted,
detailed information regarding the ownership and management of
the applicant, and detailed personal information regarding the
applicant. The application shall specify the number of gaming
positions the applicant intends to use and the place where the
electronic gaming facility will operate. A person who knowingly
makes a false statement on an application is guilty of a Class
A misdemeanor.
Each applicant shall disclose the identity of every person
or entity having a direct or indirect pecuniary interest
greater than 1% in any race track with respect to which the
license is sought. If the disclosed entity is a corporation,
the applicant shall disclose the names and addresses of all
stockholders and directors. If the disclosed entity is a
limited liability company, the applicant shall disclose the
names and addresses of all members and managers. If the
disclosed entity is a partnership, the applicant shall disclose
the names and addresses of all partners, both general and
limited. If the disclosed entity is a trust, the applicant

HB5146 - 384 - LRB100 18631 SMS 33856 b
shall disclose the names and addresses of all beneficiaries.
An application shall be filed and considered in accordance
with the rules of the Board. Each application for an electronic
gaming license shall include a non-refundable application fee
of $100,000. In addition, a non-refundable fee of $50,000 shall
be paid at the time of filing to defray the costs associated
with background investigations conducted by the Board. If the
costs of the background investigation exceed $50,000, the
applicant shall pay the additional amount to the Board within 7
days after a request by the Board. If the costs of the
investigation are less than $50,000, the applicant shall
receive a refund of the remaining amount. All information,
records, interviews, reports, statements, memoranda, or other
data supplied to or used by the Board in the course of this
review or investigation of an applicant for an electronic
gaming license under this Act shall be privileged and strictly
confidential and shall be used only for the purpose of
evaluating an applicant for an electronic gaming license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence nor discoverable in any action of any kind in any
court or before any tribunal, board, agency or person, except
for any action deemed necessary by the Board. The application
fee shall be deposited into the Gaming Facilities Fee Revenue
Fund.
Each applicant shall submit with his or her application, on

HB5146 - 385 - LRB100 18631 SMS 33856 b
forms provided by the Board, 2 sets of his or her fingerprints.
The Board shall charge each applicant a fee set by the
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. This fee
shall be paid into the State Police Services Fund.
(c) The Board shall determine within 120 days after
receiving an application for an electronic gaming license
whether to grant an electronic gaming license to the applicant.
If the Board does not make a determination within that time
period, then the Board shall give a written explanation to the
applicant as to why it has not reached a determination and when
it reasonably expects to make a determination.
The electronic gaming licensee shall purchase up to the
amount of electronic gaming positions authorized under this Act
within 120 days after receiving its electronic gaming license.
If an electronic gaming licensee is prepared to purchase the
electronic gaming positions, but is temporarily prohibited
from doing so by order of a court of competent jurisdiction or
the Board, then the 120-day period is tolled until a resolution
is reached.
An electronic gaming license shall authorize its holder to
conduct gaming under this Act at its racetracks on the same
days of the year and hours of the day that owner licenses are
allowed to operate under approval of the Board.
A license to conduct electronic gaming and any renewal of

HB5146 - 386 - LRB100 18631 SMS 33856 b
an electronic gaming license shall authorize electronic gaming
for a period of 4 years. The fee for the issuance or renewal of
an electronic gaming license shall be $100,000.
(d) To be eligible to conduct electronic gaming, a person
or entity having operating control of a race track must (i)
obtain an electronic gaming license, (ii) hold an organization
license under the Illinois Horse Racing Act of 1975, (iii) hold
an inter-track wagering license, (iv) pay an initial fee of
$30,000 per gaming position from electronic gaming licensees
where electronic gaming is conducted in Cook County and $17,500
for electronic gaming licensees where electronic gaming is
located outside of Cook County before beginning to conduct
electronic gaming plus make the reconciliation payment
required under subsection (k), (v) conduct live racing in
accordance with subsections (e-1), (e-2), and (e-3) of Section
20 of the Illinois Horse Racing Act of 1975 or for a licensee
that is only authorized 350 gaming positions pursuant to
subsection (d) of Section 7.7 of this Act, have a fully
operational facility running at least 96 live races over a
period of at least 15 days per year until such time as the
total number of gaming positions is increased to 900, (vi) meet
the requirements of subsection (a) of Section 56 of the
Illinois Horse Racing Act of 1975, (vii) for organization
licensees conducting standardbred race meetings, keep
backstretch barns and dormitories open and operational
year-round unless a lesser schedule is mutually agreed to by

HB5146 - 387 - LRB100 18631 SMS 33856 b
the organization licensee and the horsemen's association
racing at that organization licensee's race meeting, (viii) for
organization licensees conducting thoroughbred race meetings,
the organization licensee must maintain accident medical
expense liability insurance coverage of $1,000,000 for
jockeys, and (ix) meet all other requirements of this Act that
apply to owners licensees.
An electronic gaming licensee may enter into a joint
venture with a licensed owner to own, manage, conduct, or
otherwise operate the electronic gaming licensee's electronic
gaming facilities, unless the electronic gaming licensee has a
parent company or other affiliated company that is, directly or
indirectly, wholly owned by a parent company that is also
licensed to conduct electronic gaming, casino gaming, or their
equivalent in another state.
All payments by licensees under this subsection (c) shall
be deposited into the Gaming Facilities Fee Revenue Fund.
(e) A person or entity is ineligible to receive an
electronic gaming license if:
(1) the person or entity has been convicted of a felony
under the laws of this State, any other state, or the
United States, including a conviction under the Racketeer
Influenced and Corrupt Organizations Act;
(2) the person or entity has been convicted of any
violation of Article 28 of the Criminal Code of 2012, or
substantially similar laws of any other jurisdiction;

HB5146 - 388 - LRB100 18631 SMS 33856 b
(3) the person or entity has submitted an application
for a license under this Act that contains false
information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3), or (4) of this
subsection (e) is an officer, director, or managerial
employee of the entity;
(6) the person or entity employs a person defined in
(1), (2), (3), or (4) of this subsection (e) who
participates in the management or operation of gambling
operations authorized under this Act; or
(7) a license of the person or entity issued under this
Act or a license to own or operate gambling facilities in
any other jurisdiction has been revoked.
(f) The Board may approve electronic gaming positions
statewide as provided in this Section. The authority to operate
electronic gaming positions under this Section shall be
allocated as follows: up to 1,200 gaming positions for any
electronic gaming licensee in Cook County; up to 900 gaming
positions for any electronic gaming licensee outside of Cook
County; and up to 350 gaming positions for any electronic
gaming licensee whose electronic gaming license originates
with an organization licensee that did not conduct live racing
in calendar year 2010, which shall increase to 900 gaming
positions in the calendar year following the year in which the
electronic gaming licensee conducts 96 live races.

HB5146 - 389 - LRB100 18631 SMS 33856 b
(g) Each applicant for an electronic gaming license shall
specify in its application for licensure the number of gaming
positions it will operate, up to the applicable limitation set
forth in subsection (f) of this Section. Any unreserved gaming
positions that are not specified shall be forfeited and
retained by the Board. For the purposes of this subsection (g),
an electronic gaming licensee that did not conduct live racing
in 2010 may reserve up to 900 positions and shall not be
penalized under this Section for not operating those positions
until it meets the requirements of subsection (f) of this
Section, but such licensee shall not request unreserved gaming
positions under this subsection (g) until its 900 positions are
all operational.
Thereafter, the Board shall publish the number of
unreserved electronic gaming positions and shall accept
requests for additional positions from any electronic gaming
licensee that initially reserved all of the positions that were
offered. The Board shall allocate expeditiously the unreserved
electronic gaming positions to requesting electronic gaming
licensees in a manner that maximizes revenue to the State. The
Board may allocate any such unused electronic gaming positions
pursuant to an open and competitive bidding process, as
provided under Section 7.5 of this Act. This process shall
continue until all unreserved gaming positions have been
purchased. All positions obtained pursuant to this process and
all positions the electronic gaming licensee specified it would

HB5146 - 390 - LRB100 18631 SMS 33856 b
operate in its application must be in operation within 18
months after they were obtained or the electronic gaming
licensee forfeits the right to operate those positions, but is
not entitled to a refund of any fees paid. The Board may, after
holding a public hearing, grant extensions so long as the
electronic gaming licensee is working in good faith to make the
positions operational. The extension may be for a period of 6
months. If, after the period of the extension, the electronic
gaming licensee has not made the positions operational, then
another public hearing must be held by the Board before it may
grant another extension.
Unreserved gaming positions retained from and allocated to
electronic gaming licensees by the Board pursuant to this
subsection (g) shall not be allocated to owners licensees
pursuant to subsection (h-10) of Section 7 of this Act.
For the purpose of this subsection (g), the unreserved
gaming positions for each electronic gaming licensee shall be
the applicable limitation set forth in subsection (f) of this
Section, less the number of reserved gaming positions by such
electronic gaming licensee, and the total unreserved gaming
positions shall be the aggregate of the unreserved gaming
positions for all electronic gaming licensees.
(h) Subject to the approval of the Illinois Gaming Board,
an electronic gaming licensee may make modification or
additions to any existing buildings and structures to comply
with the requirements of this Act. The Illinois Gaming Board

HB5146 - 391 - LRB100 18631 SMS 33856 b
shall make its decision after consulting with the Illinois
Racing Board. In no case, however, shall the Illinois Gaming
Board approve any modification or addition that alters the
grounds of the organizational licensee such that the act of
live racing is an ancillary activity to electronic gaming.
Electronic gaming may take place in existing structures where
inter-track wagering is conducted at the race track or a
facility within 300 yards of the race track in accordance with
the provisions of this Act and the Illinois Horse Racing Act of
1975.
(i) An electronic gaming licensee may conduct electronic
gaming at a temporary facility pending the construction of a
permanent facility or the remodeling or relocation of an
existing facility to accommodate electronic gaming
participants for up to 24 months after the temporary facility
begins to conduct electronic gaming. Upon request by an
electronic gaming licensee and upon a showing of good cause by
the electronic gaming licensee, the Board shall extend the
period during which the licensee may conduct electronic gaming
at a temporary facility by up to 12 months. The Board shall
make rules concerning the conduct of electronic gaming from
temporary facilities.
Electronic gaming may take place in existing structures
where inter-track wagering is conducted at the race track or a
facility within 300 yards of the race track in accordance with
the provisions of this Act and the Illinois Horse Racing Act of

HB5146 - 392 - LRB100 18631 SMS 33856 b
1975.
(i-5) Under no circumstances shall an electronic gaming
licensee conduct electronic gaming at any State or county fair.
(j) The Illinois Gaming Board must adopt emergency rules in
accordance with Section 5-45 of the Illinois Administrative
Procedure Act as necessary to ensure compliance with the
provisions of this amendatory Act of the 100th General Assembly
concerning electronic gaming. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) Each electronic gaming licensee who obtains electronic
gaming positions must make a reconciliation payment 3 years
after the date the electronic gaming licensee begins operating
the positions in an amount equal to 75% of the difference
between its adjusted gross receipts from electronic gaming and
amounts paid to its purse accounts pursuant to item (1) of
subsection (b) of Section 56 of the Illinois Horse Racing Act
of 1975 for the 12-month period for which such difference was
the largest, minus an amount equal to the initial per position
fee paid by the electronic gaming licensee. If this calculation
results in a negative amount, then the electronic gaming
licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 2 years, subject to
Board approval. Any installment payments shall include an
annual market interest rate as determined by the Board.

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All payments by licensees under this subsection (i) shall
be deposited into the Gaming Facilities Fee Revenue Fund.
(l) As soon as practical after a request is made by the
Illinois Gaming Board, to minimize duplicate submissions by the
applicant, the Illinois Racing Board must provide information
on an applicant for an electronic gaming license to the
Illinois Gaming Board.
(230 ILCS 10/7.8 new)
Sec. 7.8. Home rule. The regulation and licensing of
electronic gaming and electronic gaming licensees are
exclusive powers and functions of the State. A home rule unit
may not regulate or license electronic gaming or electronic
gaming licensees. This Section is a denial and limitation of
home rule powers and functions under subsection (h) of Section
6 of Article VII of the Illinois Constitution.
(230 ILCS 10/7.9 new)
Sec. 7.9. Casino operator license.
(a) A qualified person may apply to the Board for a casino
operator license to operate and manage any gambling operation
conducted by the Authority. The application shall be made on
forms provided by the Board and shall contain such information
as the Board prescribes, including but not limited to
information required in Sections 6(a), (b), and (c) and
information relating to the applicant's proposed price to

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manage the Authority's gambling operations and to provide the
casino, gambling equipment, and supplies necessary to conduct
Authority gambling operations. The application shall also
include a non-refundable application fee of $100,000. This
application fee shall be deposited into the Gaming Facilities
Fee Revenue Fund.
(b) A person or entity is ineligible to receive a casino
operator license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 2012, or substantially
similar laws of any other jurisdiction;
(3) the person has submitted an application for a
license under this Act or the Chicago Casino Development
Authority Act which contains false information;
(4) the person is a member of the Board or the Chicago
Casino Development Board or the person is an official or
employee of the Chicago Casino Development Authority or the
City of Chicago;
(5) a person defined in (1), (2), (3), or (4) is an
officer, director, or managerial employee of the entity;
(6) the entity employs a person defined in (1), (2),
(3), or (4) who participates in the management or operation
of gambling operations authorized under this Act; or
(7) a license of the person or entity issued under this

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Act, or a license to own or operate gambling facilities in
any other jurisdiction, has been revoked.
(c) In determining whether to grant a casino operator
license, the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of gambling;
(3) the preference of the municipality in which the
licensee will operate;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons and females and the good faith affirmative action
plan of each applicant to recruit, train, and upgrade
minority persons and females in all employment
classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a

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casino; and
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of a casino operator
license that the Board may adopt by rule.
(d) Each applicant shall submit with his or her
application, on forms prescribed by the Board, 2 sets of his or
her fingerprints. The Board shall charge each applicant a fee
set by the Department of State Police to defray the costs
associated with the search and classification of fingerprints
obtained by the Board with respect to the applicant's
application. This fee shall be paid into the State Police
Services Fund.
(e) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(f) The Board shall charge each applicant a non-refundable
fee of $50,000 to defray the costs associated with the
background investigation conducted by the Board. This fee shall
be exclusive of any other fee or fees charged in connection
with an application for and, if applicable, the issuance of, a
casino operator license. If the costs of the investigation
exceed $50,000, the Board shall immediately notify the
applicant of the additional amount owed, payment of which must
be submitted to the Board within 7 days after such
notification. All information, records, interviews, reports,
statements, memoranda, or other data supplied to or used by the
Board in the course of its review or investigation of an

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application for a license or a renewal under this Act shall be
privileged and strictly confidential and shall be used only for
the purpose of evaluating an applicant for a license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence, nor discoverable in any action of any kind in any
court or before any tribunal, board, agency, or person, except
for any action deemed necessary by the Board.
(g) The casino operator license shall be issued only upon
proof that the applicant has entered into a labor peace
agreement with each labor organization that is actively engaged
in representing and attempting to represent casino and
hospitality industry workers in this State. The labor peace
agreement must be a valid and enforceable agreement under 29
U.S.C. 185 that protects the city's and State's revenues from
the operation of the casino facility by prohibiting the labor
organization and its members from engaging in any picketing,
work stoppages, boycotts, or any other economic interference
with the casino facility for at least the first 5 years of the
casino license and must cover all operations at the casino
facility that are conducted by lessees or tenants or under
management agreements.
(h) The casino operator license shall be for a term of 4
years, shall be renewable by the Board, and shall contain such
terms and provisions as the Board deems necessary to protect or
enhance the credibility and integrity of State gambling

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operations, achieve the highest prospective total revenue to
the State, and otherwise serve the interests of the citizens of
Illinois. The Board may suspend, restrict, or revoke the
license:
(1) for violation of any provision of this Act;
(2) for violation of any rules of the Board;
(3) for any cause which, if known to the Board, would
have disqualified the applicant from receiving the
license; or
(4) for any other just cause.
(230 ILCS 10/7.10 new)
Sec. 7.10. Diversity program.
(a) Each owners licensee, electronic gaming licensee,
casino operator licensee, and suppliers licensee shall
establish and maintain a diversity program to ensure
non-discrimination in the award and administration of
contracts. The programs shall establish goals of awarding not
less than 20% of the annual dollar value of all contracts,
purchase orders, or other agreements to minority-owned
businesses and 5% of the annual dollar value of all contracts
to female-owned businesses.
(b) Each owners licensee, electronic gaming licensee,
casino operator licensee, and suppliers licensee shall
establish and maintain a diversity program designed to promote
equal opportunity for employment. The program shall establish

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hiring goals as the Board and each licensee determines
appropriate. The Board shall monitor the progress of the gaming
licensee's progress with respect to the program's goals.
(c) No later than May 31 of each year, each licensee shall
report to the Board (1) the number of respective employees and
the number of its respective employees who have designated
themselves as members of a minority group and gender and (2)
the total goals achieved under subsection (a) of this Section
as a percentage of the total contracts awarded by the license.
In addition, all licensees shall submit a report with respect
to the minority-owned and female-owned businesses program
created in this Section to the Board.
(d) When considering whether to re-issue or renew a license
to an owners licensee, electronic gaming licensee, casino
operator licensee, or suppliers licensee, the Board shall take
into account the licensee's success in complying with the
provisions of this Section. If an owners licensee, electronic
gaming licensee, casino operator licensee, or suppliers
licensee has not satisfied the goals contained in this Section,
the Board shall require a written explanation as to why the
licensee is not in compliance and shall require the licensee to
file multi-year metrics designed to achieve compliance with the
provisions by the next renewal period, consistent with State
and federal law.
(230 ILCS 10/7.11 new)

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Sec. 7.11. Annual report on diversity.
(a) Each licensee that receives a license under Sections 7,
7.1, and 7.7 shall execute and file a report with the Board no
later than December 31 of each year that shall contain, but not
be limited to, the following information:
(i) a good faith affirmative action plan to recruit,
train, and upgrade minority persons, females, and persons
with a disability in all employment classifications;
(ii) the total dollar amount of contracts that were
awarded to businesses owned by minority persons, females,
and persons with a disability;
(iii) the total number of businesses owned by minority
persons, females, and persons with a disability that were
utilized by the licensee;
(iv) the utilization of businesses owned by minority
persons, females, and persons with disabilities during the
preceding year; and
(v) the outreach efforts used by the licensee to
attract investors and businesses consisting of minority
persons, females, and persons with a disability.
(b) The Board shall forward a copy of each licensee's
annual reports to the General Assembly no later than February 1
of each year.
(230 ILCS 10/7.12 new)
Sec. 7.12. Issuance of new owners licenses.

HB5146 - 401 - LRB100 18631 SMS 33856 b
(a) Except for the owners license issued to the Chicago
Casino Development Authority, owners licenses newly authorized
pursuant to this amendatory Act of the 100th General Assembly
may be issued by the Board to a qualified applicant pursuant to
an open and competitive bidding process, as set forth in
Section 7.5, and subject to the maximum number of authorized
licenses set forth in subsection (e-5) of Section 7 of this
Act.
(b) To be a qualified applicant, a person or entity may not
be ineligible to receive an owners license under subsection (a)
of Section 7 of this Act and must submit an application for an
owners license that complies with Section 6 of this Act.
(c) In determining whether to grant an owners license to an
applicant, the Board shall consider all of the factors set
forth in subsections (b) and (e-10) of Section 7 of this Act,
as well as the amount of the applicant's license bid. The Board
may grant the owners license to an applicant that has not
submitted the highest license bid, but if it does not select
the highest bidder, the Board shall issue a written decision
explaining why another applicant was selected and identifying
the factors set forth in subsections (b) and (e-10) of Section
7 of this Act that favored the winning bidder.
(230 ILCS 10/7.13 new)
Sec. 7.13. Environmental standards. All permanent
casinos, riverboats, and electronic gaming facilities shall

HB5146 - 402 - LRB100 18631 SMS 33856 b
consist of buildings that are certified as meeting the U.S.
Green Building Council's Leadership in Energy and
Environmental Design standards. The provisions of this Section
apply to a holder of an owners license, casino operator
license, or electronic gaming license that (i) begins
operations on or after January 1, 2018 or (ii) relocates its
facilities on or after the effective date of this amendatory
Act of the 100th General Assembly.
(230 ILCS 10/8) (from Ch. 120, par. 2408)
Sec. 8. Suppliers licenses.
(a) The Board may issue a suppliers license to such
persons, firms or corporations which apply therefor upon the
payment of a non-refundable application fee set by the Board,
upon a determination by the Board that the applicant is
eligible for a suppliers license and upon payment of a $5,000
annual license fee.
(b) The holder of a suppliers license is authorized to sell
or lease, and to contract to sell or lease, gambling equipment
and supplies to any licensee involved in the ownership or
management of gambling operations.
(c) Gambling supplies and equipment may not be distributed
unless supplies and equipment conform to standards adopted by
rules of the Board.
(d) A person, firm or corporation is ineligible to receive
a suppliers license if:

HB5146 - 403 - LRB100 18631 SMS 33856 b
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) the entity firm or corporation is one in which a
person defined in (1), (2), (3) or (4), is an officer,
director or managerial employee;
(6) the firm or corporation employs a person who
participates in the management or operation of riverboat
gambling authorized under this Act or the Chicago Casino
Development Authority Act;
(7) the license of the person, firm or corporation
issued under this Act or the Chicago Casino Development
Authority Act, or a license to own or operate gambling
facilities in any other jurisdiction, has been revoked.
(e) Any person that supplies any equipment, devices, or
supplies to a licensed riverboat gambling operation or casino
or electronic gaming operation must first obtain a suppliers
license. A supplier shall furnish to the Board a list of all
equipment, devices and supplies offered for sale or lease in
connection with gambling games authorized under this Act. A

HB5146 - 404 - LRB100 18631 SMS 33856 b
supplier shall keep books and records for the furnishing of
equipment, devices and supplies to gambling operations
separate and distinct from any other business that the supplier
might operate. A supplier shall file a quarterly return with
the Board listing all sales and leases. A supplier shall
permanently affix its name or a distinctive logo or other mark
or design element identifying the manufacturer or supplier to
all its equipment, devices, and supplies, except gaming chips
without a value impressed, engraved, or imprinted on it, for
gambling operations. The Board may waive this requirement for
any specific product or products if it determines that the
requirement is not necessary to protect the integrity of the
game. Items purchased from a licensed supplier may continue to
be used even though the supplier subsequently changes its name,
distinctive logo, or other mark or design element; undergoes a
change in ownership; or ceases to be licensed as a supplier for
any reason. Any supplier's equipment, devices or supplies which
are used by any person in an unauthorized gambling operation
shall be forfeited to the State. A holder of an owners license
or an electronic gaming license A licensed owner may own its
own equipment, devices and supplies. Each holder of an owners
license or an electronic gaming license under the Act shall
file an annual report listing its inventories of gambling
equipment, devices and supplies.
(f) Any person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.

HB5146 - 405 - LRB100 18631 SMS 33856 b
(g) Any gambling equipment, devices and supplies provided
by any licensed supplier may either be repaired on the
riverboat, in the casino, or at the electronic gaming facility
or removed from the riverboat, casino, or electronic gaming
facility to a an on-shore facility owned by the holder of an
owners license or electronic gaming license for repair.
(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
98-756, eff. 7-16-14.)
(230 ILCS 10/9) (from Ch. 120, par. 2409)
Sec. 9. Occupational licenses.
(a) The Board may issue an occupational license to an
applicant upon the payment of a non-refundable fee set by the
Board, upon a determination by the Board that the applicant is
eligible for an occupational license and upon payment of an
annual license fee in an amount to be established. To be
eligible for an occupational license, an applicant must:
(1) be at least 21 years of age if the applicant will
perform any function involved in gaming by patrons. Any
applicant seeking an occupational license for a non-gaming
function shall be at least 18 years of age;
(2) not have been convicted of a felony offense, a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar statute of any other
jurisdiction;
(2.5) not have been convicted of a crime, other than a

HB5146 - 406 - LRB100 18631 SMS 33856 b
crime described in item (2) of this subsection (a),
involving dishonesty or moral turpitude, except that the
Board may, in its discretion, issue an occupational license
to a person who has been convicted of a crime described in
this item (2.5) more than 10 years prior to his or her
application and has not subsequently been convicted of any
other crime;
(3) have demonstrated a level of skill or knowledge
which the Board determines to be necessary in order to
operate gambling aboard a riverboat, in a casino, or at an
electronic gaming facility; and
(4) have met standards for the holding of an
occupational license as adopted by rules of the Board. Such
rules shall provide that any person or entity seeking an
occupational license to manage gambling operations under
this Act or the Chicago Casino Development Authority Act
hereunder shall be subject to background inquiries and
further requirements similar to those required of
applicants for an owners license. Furthermore, such rules
shall provide that each such entity shall be permitted to
manage gambling operations for only one licensed owner.
(b) Each application for an occupational license shall be
on forms prescribed by the Board and shall contain all
information required by the Board. The applicant shall set
forth in the application: whether he has been issued prior
gambling related licenses; whether he has been licensed in any

HB5146 - 407 - LRB100 18631 SMS 33856 b
other state under any other name, and, if so, such name and his
age; and whether or not a permit or license issued to him in
any other state has been suspended, restricted or revoked, and,
if so, for what period of time.
(c) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints. The
Board shall charge each applicant a fee set by the Department
of State Police to defray the costs associated with the search
and classification of fingerprints obtained by the Board with
respect to the applicant's application. These fees shall be
paid into the State Police Services Fund.
(d) The Board may in its discretion refuse an occupational
license to any person: (1) who is unqualified to perform the
duties required of such applicant; (2) who fails to disclose or
states falsely any information called for in the application;
(3) who has been found guilty of a violation of this Act or the
Chicago Casino Development Authority Act or whose prior
gambling related license or application therefor has been
suspended, restricted, revoked or denied for just cause in any
other state; or (4) for any other just cause.
(e) The Board may suspend, revoke or restrict any
occupational licensee: (1) for violation of any provision of
this Act; (2) for violation of any of the rules and regulations
of the Board; (3) for any cause which, if known to the Board,
would have disqualified the applicant from receiving such
license; or (4) for default in the payment of any obligation or

HB5146 - 408 - LRB100 18631 SMS 33856 b
debt due to the State of Illinois; or (5) for any other just
cause.
(f) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any license issued pursuant to this Section shall be
valid for a period of one year from the date of issuance.
(h) Nothing in this Act shall be interpreted to prohibit a
licensed owner or electronic gaming licensee from entering into
an agreement with a public community college or a school
approved under the Private Business and Vocational Schools Act
of 2012 for the training of any occupational licensee. Any
training offered by such a school shall be in accordance with a
written agreement between the licensed owner or electronic
gaming licensee and the school.
(i) Any training provided for occupational licensees may be
conducted either at the site of the gambling facility on the
riverboat or at a school with which a licensed owner or
electronic gaming licensee has entered into an agreement
pursuant to subsection (h).
(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
97-1150, eff. 1-25-13.)
(230 ILCS 10/11) (from Ch. 120, par. 2411)
Sec. 11. Conduct of gambling. Gambling may be conducted by
licensed owners or licensed managers on behalf of the State
aboard riverboats. Gambling may be conducted by electronic

HB5146 - 409 - LRB100 18631 SMS 33856 b
gaming licensees at electronic gaming facilities. Gambling may
be conducted by a casino operator licensee at a casino.
Gambling authorized under this Section is , subject to the
following standards:
(1) A licensee may conduct riverboat gambling
authorized under this Act regardless of whether it conducts
excursion cruises. A licensee may permit the continuous
ingress and egress of patrons passengers on a riverboat not
used for excursion cruises for the purpose of gambling.
Excursion cruises shall not exceed 4 hours for a round
trip. However, the Board may grant express approval for an
extended cruise on a case-by-case basis.
(2) (Blank).
(3) Minimum and maximum wagers on games shall be set by
the licensee.
(4) Agents of the Board and the Department of State
Police may board and inspect any riverboat, enter and
inspect any portion of a casino, or enter and inspect any
portion of an electronic gaming facility at any time for
the purpose of determining whether this Act or the Chicago
Casino Development Authority Act is being complied with.
Every riverboat, if under way and being hailed by a law
enforcement officer or agent of the Board, must stop
immediately and lay to.
(5) Employees of the Board shall have the right to be
present on the riverboat or in the casino or on adjacent

HB5146 - 410 - LRB100 18631 SMS 33856 b
facilities under the control of the licensee and at the
electronic gaming facility under the control of the
electronic gaming licensee.
(6) Gambling equipment and supplies customarily used
in conducting riverboat or casino gambling or electronic
gaming must be purchased or leased only from suppliers
licensed for such purpose under this Act. The Board may
approve the transfer, sale, or lease of gambling equipment
and supplies by a licensed owner from or to an affiliate of
the licensed owner as long as the gambling equipment and
supplies were initially acquired from a supplier licensed
in Illinois.
(7) Persons licensed under this Act or the Chicago
Casino Development Authority Act shall permit no form of
wagering on gambling games except as permitted by this Act.
(8) Wagers may be received only from a person present
on a licensed riverboat, in a casino, or at an electronic
gaming facility. No person present on a licensed riverboat,
in a casino, or at an electronic gaming facility shall
place or attempt to place a wager on behalf of another
person who is not present on the riverboat, in a casino, or
at the electronic gaming facility.
(9) Wagering, including electronic gaming, shall not
be conducted with money or other negotiable currency.
(10) A person under age 21 shall not be permitted on an
area of a riverboat or casino where gambling is being

HB5146 - 411 - LRB100 18631 SMS 33856 b
conducted or at an electronic gaming facility where
gambling is being conducted, except for a person at least
18 years of age who is an employee of the riverboat or
casino gambling operation or electronic gaming operation.
No employee under age 21 shall perform any function
involved in gambling by the patrons. No person under age 21
shall be permitted to make a wager under this Act or the
Chicago Casino Development Authority Act, and any winnings
that are a result of a wager by a person under age 21,
whether or not paid by a licensee, shall be treated as
winnings for the privilege tax purposes, confiscated, and
forfeited to the State and deposited into the Education
Assistance Fund.
(11) Gambling excursion cruises are permitted only
when the waterway for which the riverboat is licensed is
navigable, as determined by the Board in consultation with
the U.S. Army Corps of Engineers. This paragraph (11) does
not limit the ability of a licensee to conduct gambling
authorized under this Act when gambling excursion cruises
are not permitted.
(12) All tokens, chips or electronic cards used to make
wagers must be purchased (i) from a licensed owner or
manager, in the case of a riverboat, either aboard a
riverboat or at an onshore facility which has been approved
by the Board and which is located where the riverboat
docks, (ii) in the case of a casino, from a licensed owner

HB5146 - 412 - LRB100 18631 SMS 33856 b
or licensed casino operator at the casino, or (iii) from an
electronic gaming licensee at the electronic gaming
facility. The tokens, chips or electronic cards may be
purchased by means of an agreement under which the owner,
or manager, or licensed casino operator extends credit to
the patron. Such tokens, chips or electronic cards may be
used while aboard the riverboat, in the casino, or at the
electronic gaming facility only for the purpose of making
wagers on gambling games.
(13) Notwithstanding any other Section of this Act or
the Chicago Casino Development Authority Act, in addition
to the other licenses authorized under this Act or the
Chicago Casino Development Authority Act, the Board may
issue special event licenses allowing persons who are not
otherwise licensed to conduct riverboat gambling to
conduct such gambling on a specified date or series of
dates. Riverboat gambling under such a license may take
place on a riverboat not normally used for riverboat
gambling. The Board shall establish standards, fees and
fines for, and limitations upon, such licenses, which may
differ from the standards, fees, fines and limitations
otherwise applicable under this Act or the Chicago Casino
Development Authority Act. All such fees shall be deposited
into the State Gaming Fund. All such fines shall be
deposited into the Education Assistance Fund, created by
Public Act 86-0018, of the State of Illinois.

HB5146 - 413 - LRB100 18631 SMS 33856 b
(14) In addition to the above, gambling must be
conducted in accordance with all rules adopted by the
Board.
(Source: P.A. 96-1392, eff. 1-1-11.)
(230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
Sec. 11.1. Collection of amounts owing under credit
agreements. Notwithstanding any applicable statutory provision
to the contrary, a licensed owner, licensed or manager,
licensed casino operator, or electronic gaming licensee who
extends credit to a riverboat gambling patron or an electronic
gaming patron pursuant to Section 11 (a) (12) of this Act is
expressly authorized to institute a cause of action to collect
any amounts due and owing under the extension of credit, as
well as the licensed owner's, licensed or manager's, licensed
casino operator's, or electronic gaming licensee's costs,
expenses and reasonable attorney's fees incurred in
collection.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/12) (from Ch. 120, par. 2412)
Sec. 12. Admission tax; fees.
(a) A tax is hereby imposed upon admissions to riverboat
and casino gambling facilities riverboats operated by licensed
owners authorized pursuant to this Act and the Chicago Casino
Development Authority Act. Until July 1, 2002, the rate is $2

HB5146 - 414 - LRB100 18631 SMS 33856 b
per person admitted. From July 1, 2002 until July 1, 2003, the
rate is $3 per person admitted. From July 1, 2003 until August
23, 2005 (the effective date of Public Act 94-673), for a
licensee that admitted 1,000,000 persons or fewer in the
previous calendar year, the rate is $3 per person admitted; for
a licensee that admitted more than 1,000,000 but no more than
2,300,000 persons in the previous calendar year, the rate is $4
per person admitted; and for a licensee that admitted more than
2,300,000 persons in the previous calendar year, the rate is $5
per person admitted. Beginning on August 23, 2005 (the
effective date of Public Act 94-673), for a licensee that
admitted 1,000,000 persons or fewer in calendar year 2004, the
rate is $2 per person admitted, and for all other licensees,
including licensees that were not conducting gambling
operations in 2004, the rate is $3 per person admitted. This
admission tax is imposed upon the licensed owner conducting
gambling.
(1) The admission tax shall be paid for each admission,
except that a person who exits a riverboat gambling
facility and reenters that riverboat gambling facility
within the same gaming day shall be subject only to the
initial admission tax.
(2) (Blank).
(3) The riverboat licensee may issue tax-free passes to
actual and necessary officials and employees of the
licensee or other persons actually working on the

HB5146 - 415 - LRB100 18631 SMS 33856 b
riverboat.
(4) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(a-5) A fee is hereby imposed upon admissions operated by
licensed managers on behalf of the State pursuant to Section
7.3 at the rates provided in this subsection (a-5). For a
licensee that admitted 1,000,000 persons or fewer in the
previous calendar year, the rate is $3 per person admitted; for
a licensee that admitted more than 1,000,000 but no more than
2,300,000 persons in the previous calendar year, the rate is $4
per person admitted; and for a licensee that admitted more than
2,300,000 persons in the previous calendar year, the rate is $5
per person admitted.
(1) The admission fee shall be paid for each admission.
(2) (Blank).
(3) The licensed manager may issue fee-free passes to
actual and necessary officials and employees of the manager
or other persons actually working on the riverboat.
(4) The number and issuance of fee-free passes is
subject to the rules of the Board, and a list of all
persons to whom the fee-free passes are issued shall be
filed with the Board.
(b) Except as provided in subsection (b-5), from From the
tax imposed under subsection (a) and the fee imposed under

HB5146 - 416 - LRB100 18631 SMS 33856 b
subsection (a-5), a municipality shall receive from the State
$1 for each person embarking on a riverboat docked within the
municipality or entering a casino located within the
municipality, and a county shall receive $1 for each person
entering a casino or embarking on a riverboat docked within the
county but outside the boundaries of any municipality. The
municipality's or county's share shall be collected by the
Board on behalf of the State and remitted quarterly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-5) From the tax imposed under subsection (a) and the fee
imposed under subsection (a-5), $1 for each person embarking on
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be divided as follows: $0.70 to the City of
Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
of Machesney Park, and $0.20 to Winnebago County.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(c) The licensed owner shall pay the entire admission tax
to the Board and the licensed manager or the casino operator
licensee shall pay the entire admission fee to the Board. Such
payments shall be made daily. Accompanying each payment shall
be a return on forms provided by the Board which shall include
other information regarding admissions as the Board may

HB5146 - 417 - LRB100 18631 SMS 33856 b
require. Failure to submit either the payment or the return
within the specified time may result in suspension or
revocation of the owners or managers license.
(c-5) A tax is imposed on admissions to electronic gaming
facilities at the rate of $3 per person admitted by an
electronic gaming licensee. The tax is imposed upon the
electronic gaming licensee.
(1) The admission tax shall be paid for each admission,
except that a person who exits an electronic gaming
facility and reenters that electronic gaming facility
within the same gaming day, as the term "gaming day" is
defined by the Board by rule, shall be subject only to the
initial admission tax. The Board shall establish, by rule,
a procedure to determine whether a person admitted to an
electronic gaming facility has paid the admission tax.
(2) An electronic gaming licensee may issue tax-free
passes to actual and necessary officials and employees of
the licensee and other persons associated with electronic
gaming operations.
(3) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(4) The electronic gaming licensee shall pay the entire
admission tax to the Board.
Such payments shall be made daily. Accompanying each

HB5146 - 418 - LRB100 18631 SMS 33856 b
payment shall be a return on forms provided by the Board, which
shall include other information regarding admission as the
Board may require. Failure to submit either the payment or the
return within the specified time may result in suspension or
revocation of the electronic gaming license.
From the tax imposed under this subsection (c-5), a
municipality other than the Village of Stickney or the City of
Collinsville in which an electronic gaming facility is located,
or if the electronic gaming facility is not located within a
municipality, then the county in which the electronic gaming
facility is located, except as otherwise provided in this
Section, shall receive, subject to appropriation, $1 for each
person who enters the electronic gaming facility. For each
admission to the electronic gaming facility in excess of
1,500,000 in a year, from the tax imposed under this subsection
(c-5), the county in which the electronic gaming facility is
located shall receive, subject to appropriation, $0.30, which
shall be in addition to any other moneys paid to the county
under this Section.
From the tax imposed under this subsection (c-5) on an
electronic gaming facility located in the Village of Stickney,
$1 for each person who enters the electronic gaming facility
shall be distributed as follows, subject to appropriation:
$0.24 to the Village of Stickney, $0.49 to the Town of Cicero,
$0.05 to the City of Berwyn, and $0.17 to the Stickney Public
Health District, and $0.05 to the City of Bridgeview.

HB5146 - 419 - LRB100 18631 SMS 33856 b
From the tax imposed under this subsection (c-5) on an
electronic gaming facility located in the City of Collinsville,
$1 for each person who enters the electronic gaming facility
shall be distributed as follows, subject to appropriation:
$0.45 to the City of Alton, $0.45 to the City of East St.
Louis, and $0.10 to the City of Collinsville.
After payments required under this subsection (c-5) have
been made, all remaining amounts shall be deposited into the
Education Assistance Fund.
(d) The Board shall administer and collect the admission
tax imposed by this Section, to the extent practicable, in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games

HB5146 - 420 - LRB100 18631 SMS 33856 b
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;

HB5146 - 421 - LRB100 18631 SMS 33856 b
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of

HB5146 - 422 - LRB100 18631 SMS 33856 b
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed and ending upon the
imposition of the privilege tax under subsection (a-5) of this
Section, a privilege tax is imposed on persons engaged in the
business of conducting riverboat or casino gambling or
electronic gaming operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at

HB5146 - 423 - LRB100 18631 SMS 33856 b
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
For the imposition of the privilege tax in this subsection
(a-4), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-4.5) Beginning on the first day of the calendar month
immediately following 24 months after the effective date of
this amendatory Act of the 100th General Assembly and ending on
the date gambling operations, commence at a permanent facility
with respect to the owners license authorized under paragraph
(1) of subsection (e-5) of Section 7 of this Act, a privilege
tax is imposed on persons engaged in the business of conducting

HB5146 - 424 - LRB100 18631 SMS 33856 b
riverboat or casino gambling or electronic gaming operations,
other than licensed managers conducting riverboat gambling
operations on behalf of the State, based on the adjusted gross
receipts received by such licensee from the gambling games
authorized under this Act. The privilege tax shall be the
average of the privilege tax, in terms of dollar amounts,
calculated pursuant to subsection (a-4) and subsection (a-6).
(a-5) Beginning on January 1 following the opening of the
permanent casino at which gambling operations are conducted
pursuant to the Chicago Casino Development Authority Act, a
privilege tax is imposed on persons engaged in the business of
conducting riverboat or casino gambling or electronic gaming
operations, other than licensed managers conducting riverboat
gambling operations on behalf of the State, based on the
adjusted gross receipts received by such licensee from the
gambling games authorized under this Act and the Chicago Casino
Development Authority Act. The privilege tax for all gambling
games other than table games, including, but not limited to,
slot machines, video game of chance gambling, and electronic
gambling games shall be at the following rates:
10% of annual adjusted gross receipts up to and
including $25,000,000;
17.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
22.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;

HB5146 - 425 - LRB100 18631 SMS 33856 b
27.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
32.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
35% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
40% of annual adjusted gross receipts in excess of
$200,000,000 but not exceeding $300,000,000;
30% of annual adjusted gross receipts in excess of
$300,000,000 but not exceeding $350,000,000;
20% of annual adjusted gross receipts in excess of
$350,000,000, but not exceeding $800,000,000;
50% of annual adjusted gross receipts in excess of
$800,000,000.
The privilege tax for table games shall be at the following
rates:
10% of annual adjusted gross receipts up to and
including $25,000,000;
17.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
22.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $70,000,000;
16% of annual adjusted gross receipts in excess of
$70,000,000.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of

HB5146 - 426 - LRB100 18631 SMS 33856 b
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-6) From the effective date of this amendatory Act of the
100th General Assembly until June 30, 2022, an owners licensee
that conducted gambling operations prior to January 1, 2011
shall receive a dollar-for-dollar credit against the tax
imposed under this Section for any renovation or construction
costs paid by the owners licensee, but in no event shall the
credit exceed $2,000,000.
Additionally, from the effective date of this amendatory
Act of the 100th General Assembly until December 31, 2021, an
owners licensee that (i) is located within 15 miles of the
Missouri border, and (ii) has at least 3 riverboats, casinos,
or their equivalent within a 45-mile radius, may be authorized
to relocate to a new location with the approval of both the
unit of local government designated as the home dock and the
Board, so long as the new location is within the same unit of
local government and no more than 3 miles away from its
original location. Such owners licensee shall receive a credit
against the tax imposed under this Section equal to 8% of the
total project costs, as approved by the Board, for any
renovation or construction costs paid by the owners licensee
for the construction of the new facility, provided that the new
facility is operational by July 1, 2021. In determining whether
or not to approve a relocation, the Board must consider the
extent to which the relocation will diminish the gaming

HB5146 - 427 - LRB100 18631 SMS 33856 b
revenues received by other Illinois gaming facilities.
(a-7) Beginning in the initial adjustment year and through
the final adjustment year, if the total obligation imposed
pursuant to either subsection (a-5) or (a-6) will result in an
owners licensee receiving less after-tax adjusted gross
receipts than it received in calendar year 2017, then the total
amount of privilege taxes that the owners licensee is required
to pay for that calendar year shall be reduced to the extent
necessary so that the after-tax adjusted gross receipts in that
calendar year equals the after-tax adjusted gross receipts in
calendar year 2017, but the privilege tax reduction shall not
exceed the annual adjustment cap. If pursuant to this
subsection (a-7), the total obligation imposed pursuant to
either subsection (a-5) or (a-6) shall be reduced, then the
owners licensee shall not receive a refund from the State at
the end of the subject calendar year but instead shall be able
to apply that amount as a credit against any payments it owes
to the State in the following calendar year to satisfy its
total obligation under either subsection (a-5) or (a-6). The
credit for the final adjustment year shall occur in the
calendar year following the final adjustment year.
If an owners licensee that conducted gambling operations
prior to January 1, 2018 expands its riverboat or casino,
including, but not limited to, with respect to its gaming
floor, additional non-gaming amenities such as restaurants,
bars, and hotels and other additional facilities, and incurs

HB5146 - 428 - LRB100 18631 SMS 33856 b
construction and other costs related to such expansion from the
effective date of this amendatory Act of the 100th General
Assembly until the 5th anniversary of the effective date of
this amendatory Act of the 100th General Assembly, then for
each $15,000,000 spent for any such construction or other costs
related to expansion paid by the owners licensee, the final
adjustment year shall be extended by one year and the annual
adjustment cap shall increase by 0.2% of adjusted gross
receipts during each calendar year until and including the
final adjustment year. No further modifications to the final
adjustment year or annual adjustment cap shall be made after
$75,000,000 is incurred in construction or other costs related
to expansion so that the final adjustment year shall not extend
beyond the 9th calendar year after the initial adjustment year,
not including the initial adjustment year, and the annual
adjustment cap shall not exceed 4% of adjusted gross receipts
in a particular calendar year. Construction and other costs
related to expansion shall include all project related costs,
including, but not limited to, all hard and soft costs,
financing costs, on or off-site ground, road or utility work,
cost of gaming equipment and all other personal property,
initial fees assessed for each incremental gaming position, and
the cost of incremental land acquired for such expansion. Soft
costs shall include, but not be limited to, legal fees,
architect, engineering and design costs, other consultant
costs, insurance cost, permitting costs, and pre-opening costs

HB5146 - 429 - LRB100 18631 SMS 33856 b
related to the expansion, including, but not limited to, any of
the following: marketing, real estate taxes, personnel,
training, travel and out-of-pocket expenses, supply,
inventory, and other costs, and any other project related soft
costs.
Notwithstanding any other provision of this subsection
(a-7), this subsection (a-7) does not apply to an owners
licensee unless such owners licensee spends at least
$15,000,000 on construction and other costs related to its
expansion, excluding the initial fees assessed for each
incremental gaming position.
This subsection (a-7) does not apply to owners licensees
authorized pursuant to subsection (e-5) of Section 7 of this
Act.
For purposes of this subsection (a-7):
"Initial adjustment year" means the year commencing on
January 1 of the calendar year immediately following the
earlier of the following:
(1) the commencement of gambling operations, either in
a temporary or permanent facility, with respect to the
owners license authorized under paragraph (1) of
subsection (e-5) of Section 7 of this Act; or
(2) 36 months after the effective date of this
amendatory Act of the 100th General Assembly, provided the
initial adjustment year shall not commence earlier than 24
months after the effective date of this amendatory Act of

HB5146 - 430 - LRB100 18631 SMS 33856 b
the 100th General Assembly.
"Final adjustment year" means the 4th calendar year after
the initial adjustment year, not including the initial
adjustment year, and as may be extended further as described in
this subsection (a-7).
"After-tax adjusted gross receipts" means, for calendar
year 2017, the adjusted gross receipts less privilege taxes
paid to the State and for subsequent calendar years, the
adjusted gross receipts less privilege taxes paid to the State,
then divided by the owners licensee's average number of gaming
positions operating in that calendar year and then multiplied
by the owners licensee's average number of gaming positions
operating in calendar year 2017.
"Annual adjustment cap" means 3% of adjusted gross receipts
in a particular calendar year, and as may be increased further
as otherwise described in this subsection (a-7).
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-9) Beginning on January 1, 2019, the calculation of
gross receipts or adjusted gross receipts, for the purposes of
this Section, for a riverboat, casino, or electronic gaming
facility shall not include the dollar amount of non-cashable
vouchers, coupons, and electronic promotions redeemed by
wagerers upon the riverboat, in the casino, or in the
electronic gaming facility up to and including an amount not to

HB5146 - 431 - LRB100 18631 SMS 33856 b
exceed 30% of a riverboat casino or electronic gaming
facility's adjusted gross receipts.
The Illinois Gaming Board shall submit to the General
Assembly a comprehensive report no later than March 31, 2022
detailing, at a minimum, the effect of removing non-cashable
vouchers, coupons, and electronic promotions from this
calculation on net gaming revenues to the State in calendar
years 2019 through 2021, the increase or reduction in wagerers
as a result of removing non-cashable vouchers, coupons, and
electronic promotions from this calculation, the effect of the
tax rates in subsection (a-5) on net gaming revenues to the
State, and proposed modifications to the calculation.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner or the electronic gaming licensee to the
Board not later than 5:00 o'clock p.m. of the day after the day
when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's

HB5146 - 432 - LRB100 18631 SMS 33856 b
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,
(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this

HB5146 - 433 - LRB100 18631 SMS 33856 b
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the

HB5146 - 434 - LRB100 18631 SMS 33856 b
Board.
(b) Until January 1, 1998, 25% of the tax revenue deposited
in the State Gaming Fund under this Section shall be paid,
subject to appropriation by the General Assembly, to the unit
of local government which is designated as the home dock of the
riverboat. Beginning January 1, 1998, from the tax revenue from
riverboat or casino gambling deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross
receipts generated by a riverboat or a casino other than a
riverboat designated in paragraph (3) or (4) of subsection
(e-5) of Section 7, shall be paid monthly, subject to
appropriation by the General Assembly, to the unit of local
government in which the casino is located or that is designated
as the home dock of the riverboat. From the tax revenue
deposited in the State Gaming Fund pursuant to riverboat or
casino gambling operations conducted by a licensed manager on
behalf of the State, an amount equal to 5% of adjusted gross
receipts generated pursuant to those riverboat or casino
gambling operations shall be paid monthly, subject to
appropriation by the General Assembly, to the unit of local
government that is designated as the home dock of the riverboat
upon which those riverboat gambling operations are conducted or
in which the casino is located. From the tax revenue from
riverboat or casino gambling deposited in the State Gaming Fund
under this Section, an amount equal to 5% of the adjusted gross
receipts generated by a riverboat designated in paragraph (3)

HB5146 - 435 - LRB100 18631 SMS 33856 b
of subsection (e-5) of Section 7 shall be divided and remitted
monthly, subject to appropriation, as follows: 50% to Waukegan,
25% to Park City, and 25% to North Chicago. From the tax
revenue from riverboat or casino gambling deposited in the
State Gaming Fund under this Section, an amount equal to 5% of
the adjusted gross receipts generated by a riverboat designated
in paragraph (4) of subsection (e-5) of Section 7 shall be
remitted monthly, subject to appropriation, as follows: 70% to
the City of Rockford, 5% to the City of Loves Park, 5% to the
Village of Machesney, and 20% to Winnebago County. Units of
local government may refund any portion of the payment that
they receive pursuant to this subsection (b) to the riverboat
or casino.
(b-5) Beginning on the effective date of this amendatory
Act of the 100th General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 3% of adjusted gross receipts generated by each
electronic gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to a municipality other than the Village of Stickney
in which each electronic gaming facility is located or, if the
electronic gaming facility is not located within a
municipality, to the county in which the electronic gaming
facility is located, except as otherwise provided in this
Section. From the tax revenue deposited in the State Gaming
Fund under this Section, an amount equal to 3% of adjusted

HB5146 - 436 - LRB100 18631 SMS 33856 b
gross receipts generated by an electronic gaming facility
located in the Village of Stickney shall be paid monthly,
subject to appropriation by the General Assembly, as follows:
25% to the Village of Stickney, 5% to the City of Berwyn, 50%
to the Town of Cicero, and 20% to the Stickney Public Health
District.
From the tax revenue deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross
receipts generated by an electronic gaming facility located in
the City of Collinsville shall be paid monthly, subject to
appropriation by the General Assembly, as follows: 45% to the
City of Alton, 45% to the City of East St. Louis, and 10% to the
City of Collinsville.
Municipalities and counties may refund any portion of the
payment that they receive pursuant to this subsection (b-5) to
the electronic gaming facility.
(b-6) Beginning on the effective date of this amendatory
Act of the 100th General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 2% of adjusted gross receipts generated by an
electronic gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to the county in which the electronic gaming facility
is located for the purposes of its criminal justice system or
health care system.
Counties may refund any portion of the payment that they

HB5146 - 437 - LRB100 18631 SMS 33856 b
receive pursuant to this subsection (b-6) to the electronic
gaming facility.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act, the Chicago Casino
Development Authority Act, and the Video Gaming Act, (ii) for
distribution to the Department of State Police and to the
Department of Revenue for the enforcement of this Act, the
Chicago Casino Development Authority Act, and the Video Gaming
Act, and (iii) to the Department of Human Services for the
administration of programs to treat problem gambling. The
Board's annual appropriations request must separately state
its funding needs for the regulation of electronic gaming,
riverboat gaming, casino gaming within the City of Chicago, and
video gaming. From the tax revenue deposited in the Gaming
Facilities Fee Revenue Fund, the first $50,000,000 shall be
paid to the Board, subject to appropriation, for the
administration and enforcement of the provisions of this
amendatory Act of the 100th General Assembly.
(c-3) Appropriations, as approved by the General Assembly,
may be made from the tax revenue deposited into the State
Gaming Fund from electronic gaming pursuant to this Section for
the administration and enforcement of this Act.
(c-4) After payments required under subsections (b),
(b-5), (b-6), (c), and (c-3) have been made from the tax
revenue from electronic gaming deposited into the State Gaming

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Fund under this Section, all remaining amounts from electronic
gaming shall be deposited into the Education Assistance Fund.
(c-5) Before May 26, 2006 (the effective date of Public Act
94-804) and beginning on the effective date of this amendatory
Act of the 95th General Assembly, unless any organization
licensee under the Illinois Horse Racing Act of 1975 begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, after the
payments required under subsections (b) and (c) have been made,
an amount equal to 15% of the adjusted gross receipts of (1) an
owners licensee that relocates pursuant to Section 11.2, (2) an
owners licensee conducting riverboat gambling operations
pursuant to an owners license that is initially issued after
June 25, 1999, or (3) the first riverboat gambling operations
conducted by a licensed manager on behalf of the State under
Section 7.3, whichever comes first, shall be paid from the
State Gaming Fund into the Horse Racing Equity Fund.
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners

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license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-25) On July 1, 2013 and each July 1 thereafter,
$1,600,000 shall be transferred from the State Gaming Fund to
the Chicago State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any amount
transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education

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Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 98-18, eff. 6-7-13.)
(230 ILCS 10/14) (from Ch. 120, par. 2414)
Sec. 14. Licensees - Records - Reports - Supervision.
(a) Licensed owners and electronic gaming licensees A
licensed owner shall keep his books and records so as to
clearly show the following:
(1) The amount received daily from admission fees.
(2) The total amount of gross receipts.
(3) The total amount of the adjusted gross receipts.
(b) Licensed owners and electronic gaming licensees The
licensed owner shall furnish to the Board reports and
information as the Board may require with respect to its

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activities on forms designed and supplied for such purpose by
the Board.
(c) The books and records kept by a licensed owner as
provided by this Section are public records and the
examination, publication, and dissemination of the books and
records are governed by the provisions of The Freedom of
Information Act.
(Source: P.A. 86-1029.)
(230 ILCS 10/15) (from Ch. 120, par. 2415)
Sec. 15. Audit of Licensee Operations. Annually, the
licensed owner, or manager, or electronic gaming licensee shall
transmit to the Board an audit of the financial transactions
and condition of the licensee's or manager's total operations.
Additionally, within 90 days after the end of each quarter of
each fiscal year, the licensed owner, or manager, or electronic
gaming licensee shall transmit to the Board a compliance report
on engagement procedures determined by the Board. All audits
and compliance engagements shall be conducted by certified
public accountants selected by the Board. Each certified public
accountant must be registered in the State of Illinois under
the Illinois Public Accounting Act. The compensation for each
certified public accountant shall be paid directly by the
licensed owner, or manager, or electronic gaming licensee to
the certified public accountant.
(Source: P.A. 96-1392, eff. 1-1-11.)

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(230 ILCS 10/16) (from Ch. 120, par. 2416)
Sec. 16. Annual Report of Board. The Board shall make an
annual report to the Governor, for the period ending December
31 of each year. Included in the report shall be an account of
the Board actions, its financial position and results of
operation under this Act and the Chicago Casino Development
Authority Act, the practical results attained under this Act
and the Chicago Casino Development Authority Act and any
recommendations for legislation which the Board deems
advisable.
(Source: P.A. 86-1029.)
(230 ILCS 10/17) (from Ch. 120, par. 2417)
Sec. 17. Administrative Procedures. The Illinois
Administrative Procedure Act shall apply to all administrative
rules and procedures of the Board under this Act, the Chicago
Casino Development Authority Act, and or the Video Gaming Act,
except that: (1) subsection (b) of Section 5-10 of the Illinois
Administrative Procedure Act does not apply to final orders,
decisions and opinions of the Board; (2) subsection (a) of
Section 5-10 of the Illinois Administrative Procedure Act does
not apply to forms established by the Board for use under this
Act, the Chicago Casino Development Authority Act, and or the
Video Gaming Act; (3) the provisions of Section 10-45 of the
Illinois Administrative Procedure Act regarding proposals for

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decision are excluded under this Act, the Chicago Casino
Development Authority Act, and or the Video Gaming Act; and (4)
the provisions of subsection (d) of Section 10-65 of the
Illinois Administrative Procedure Act do not apply so as to
prevent summary suspension of any license pending revocation or
other action, which suspension shall remain in effect unless
modified by the Board or unless the Board's decision is
reversed on the merits upon judicial review.
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
Sec. 17.1. Judicial Review.
(a) Jurisdiction and venue for the judicial review of a
final order of the Board relating to licensed owners,
suppliers, electronic gaming licensees, and or special event
licenses is vested in the Appellate Court of the judicial
district in which Sangamon County is located. A petition for
judicial review of a final order of the Board must be filed in
the Appellate Court, within 35 days from the date that a copy
of the decision sought to be reviewed was served upon the party
affected by the decision.
(b) Judicial review of all other final orders of the Board
shall be conducted in accordance with the Administrative Review
Law.
(Source: P.A. 88-1.)

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(230 ILCS 10/18) (from Ch. 120, par. 2418)
Sec. 18. Prohibited Activities - Penalty.
(a) A person is guilty of a Class A misdemeanor for doing
any of the following:
(1) Conducting gambling where wagering is used or to be
used without a license issued by the Board.
(2) Conducting gambling where wagering is permitted
other than in the manner specified by Section 11.
(b) A person is guilty of a Class B misdemeanor for doing
any of the following:
(1) permitting a person under 21 years to make a wager;
or
(2) violating paragraph (12) of subsection (a) of
Section 11 of this Act.
(c) A person wagering or accepting a wager at any location
outside the riverboat, casino, or electronic gaming facility in
violation of paragraph is subject to the penalties in
paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
Criminal Code of 2012 is subject to the penalties provided in
that Section.
(d) A person commits a Class 4 felony and, in addition,
shall be barred for life from gambling operations riverboats
under the jurisdiction of the Board, if the person does any of
the following:
(1) Offers, promises, or gives anything of value or
benefit to a person who is connected with a riverboat or

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casino owner or electronic gaming licensee, including, but
not limited to, an officer or employee of a licensed owner,
electronic gaming licensee, or holder of an occupational
license pursuant to an agreement or arrangement or with the
intent that the promise or thing of value or benefit will
influence the actions of the person to whom the offer,
promise, or gift was made in order to affect or attempt to
affect the outcome of a gambling game, or to influence
official action of a member of the Board.
(2) Solicits or knowingly accepts or receives a promise
of anything of value or benefit while the person is
connected with a riverboat, casino, or electronic gaming
facility, including, but not limited to, an officer or
employee of a licensed owner or electronic gaming licensee,
or the holder of an occupational license, pursuant to an
understanding or arrangement or with the intent that the
promise or thing of value or benefit will influence the
actions of the person to affect or attempt to affect the
outcome of a gambling game, or to influence official action
of a member of the Board.
(3) Uses or possesses with the intent to use a device
to assist:
(i) In projecting the outcome of the game.
(ii) In keeping track of the cards played.
(iii) In analyzing the probability of the
occurrence of an event relating to the gambling game.

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(iv) In analyzing the strategy for playing or
betting to be used in the game except as permitted by
the Board.
(4) Cheats at a gambling game.
(5) Manufactures, sells, or distributes any cards,
chips, dice, game or device which is intended to be used to
violate any provision of this Act or the Chicago Casino
Development Authority Act.
(6) Alters or misrepresents the outcome of a gambling
game on which wagers have been made after the outcome is
made sure but before it is revealed to the players.
(7) Places a bet after acquiring knowledge, not
available to all players, of the outcome of the gambling
game which is subject of the bet or to aid a person in
acquiring the knowledge for the purpose of placing a bet
contingent on that outcome.
(8) Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games, with intent to defraud, without having made
a wager contingent on winning a gambling game, or claims,
collects, or takes an amount of money or thing of value of
greater value than the amount won.
(9) Uses counterfeit chips or tokens in a gambling
game.
(10) Possesses any key or device designed for the
purpose of opening, entering, or affecting the operation of

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a gambling game, drop box, or an electronic or mechanical
device connected with the gambling game or for removing
coins, tokens, chips or other contents of a gambling game.
This paragraph (10) does not apply to a gambling licensee
or employee of a gambling licensee acting in furtherance of
the employee's employment.
(e) The possession of more than one of the devices
described in subsection (d), paragraphs (3), (5), or (10)
permits a rebuttable presumption that the possessor intended to
use the devices for cheating.
(f) A person under the age of 21 who, except as authorized
under paragraph (10) of Section 11, enters upon a riverboat or
in a casino or electronic gaming facility commits a petty
offense and is subject to a fine of not less than $100 or more
than $250 for a first offense and of not less than $200 or more
than $500 for a second or subsequent offense.
An action to prosecute any crime occurring on a riverboat
shall be tried in the county of the dock at which the riverboat
is based. An action to prosecute any crime occurring in a
casino or electronic gaming facility shall be tried in the
county in which the casino or electronic gaming facility is
located.
(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
(230 ILCS 10/18.1)
Sec. 18.1. Distribution of certain fines. If a fine is

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imposed on an owner licensee or an electronic gaming licensee
for knowingly sending marketing or promotional materials to any
person placed on the self-exclusion list, then the Board shall
distribute an amount equal to 15% of the fine imposed to the
unit of local government in which the casino, riverboat, or
electronic gaming facility is located for the purpose of
awarding grants to non-profit entities that assist gambling
addicts.
(Source: P.A. 96-224, eff. 8-11-09.)
(230 ILCS 10/19) (from Ch. 120, par. 2419)
Sec. 19. Forfeiture of property.
(a) Except as provided in subsection (b), any riverboat,
casino, or electronic gaming facility used for the conduct of
gambling games in violation of this Act shall be considered a
gambling place in violation of Section 28-3 of the Criminal
Code of 2012. Every gambling device found on a riverboat, in a
casino, or at an electronic gaming facility operating gambling
games in violation of this Act and every slot machine and video
game of chance found at an electronic gaming facility operating
gambling games in violation of this Act or the Chicago Casino
Development Authority Act shall be subject to seizure,
confiscation and destruction as provided in Section 28-5 of the
Criminal Code of 2012.
(b) It is not a violation of this Act for a riverboat or
other watercraft which is licensed for gaming by a contiguous

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state to dock on the shores of this State if the municipality
having jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State. No gambling device
shall be subject to seizure, confiscation or destruction if the
gambling device is located on a riverboat or other watercraft
which is licensed for gaming by a contiguous state and which is
docked on the shores of this State if the municipality having
jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State.
(Source: P.A. 97-1150, eff. 1-25-13.)
(230 ILCS 10/20) (from Ch. 120, par. 2420)
Sec. 20. Prohibited activities - civil penalties. Any
person who conducts a gambling operation without first
obtaining a license to do so, or who continues to conduct such
games after revocation of his license, or any licensee who
conducts or allows to be conducted any unauthorized gambling
games on a riverboat, in a casino, or at an electronic gaming
facility where it is authorized to conduct its riverboat
gambling operation, in addition to other penalties provided,
shall be subject to a civil penalty equal to the amount of
gross receipts derived from wagering on the gambling games,

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whether unauthorized or authorized, conducted on that day as
well as confiscation and forfeiture of all gambling game
equipment used in the conduct of unauthorized gambling games.
(Source: P.A. 86-1029.)
(230 ILCS 10/21) (from Ch. 120, par. 2421)
Sec. 21. Limitation on taxation of licensees. Licensees
shall not be subjected to any excise tax, license tax, permit
tax, privilege tax, occupation tax or excursion tax which is
imposed exclusively upon the licensee by the State or any
political subdivision thereof, except as provided in this Act
or the Chicago Casino Development Authority Act.
(Source: P.A. 86-1029.)
(230 ILCS 10/23) (from Ch. 120, par. 2423)
Sec. 23. The State Gaming Fund. On or after the effective
date of this Act, except as provided for payments into the
Horse Racing Equity Trust Fund under subsection (a) of Section
7, all of the fees and taxes collected pursuant to this Act or
the Chicago Casino Development Authority Act shall be deposited
into the State Gaming Fund, a special fund in the State
Treasury, which is hereby created. The adjusted gross receipts
of any riverboat gambling operations conducted by a licensed
manager on behalf of the State remaining after the payment of
the fees and expenses of the licensed manager shall be
deposited into the State Gaming Fund. Fines and penalties

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collected pursuant to this Act or the Chicago Casino
Development Authority Act shall be deposited into the Education
Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)
(230 ILCS 10/24)
Sec. 24. Applicability of this Illinois Riverboat Gambling
Act. The provisions of the this Illinois Riverboat Gambling
Act, and all rules promulgated thereunder, shall apply to the
Chicago Casino Development Authority Act and the Video Gaming
Act, except where there is a conflict between the 2 Acts. In
the event of a conflict between this Act and the Chicago Casino
Development Authority Act, the terms of the Chicago Casino
Development Authority Act shall prevail. In the event of a
conflict between this Act and the Video Gaming Act, the terms
of this Act shall prevail.
(Source: P.A. 96-37, eff. 7-13-09.)
(230 ILCS 10/25 new)
Sec. 25. Wide area progressive systems. The operation of a
wide area progressive system is permitted in gambling
operations authorized under this Act subject to the following
conditions:
(1) The method of communication over the wide area
progressive system must consist of dedicated on-line

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communication lines or the equivalent, as determined by the
Administrator, or wireless communication, which may be
subject to certain restrictions imposed by the
Administrator.
(2) All communication between each facility location
and the central system site must be encrypted.
(3) The central system site must be located within the
State of Illinois and be equipped with a non-interruptible
power supply and the central computer must be capable of
on-line data redundancy should hard disk peripherals fail
during operation. The office containing the central
computer shall be equipped with a surveillance system that
has been approved by the Administrator. The wide area
progressive system provider shall be required to keep and
maintain an entry and exit log for the office containing
the central computer. The wide area progressive system
provider shall provide access to the office containing the
central computer to the Administrator and shall make
available to the Administrator all books, records, and
information required by the Administrator in fulfilling
his or her regulatory purpose.
(4) A wide area progressive system provider must
suspend play on the wide area progressive system if a
communication failure of the system cannot be corrected
within 24 consecutive hours.
(5) Approval by the Board of any wide area progressive

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system shall occur only after the Administrator has
reviewed the wide area progressive system software and
hardware and is satisfied that the operation of the system
meets accepted industry standards for wide area
progressive system products, as well as any other
requirements that the Administrator may impose to ensure
the integrity, security, and legal operation of the wide
area progressive system.
(6) A meter that shows the amount of the common
progressive jackpot must be conspicuously displayed at or
near the machines to which the jackpot applies. The common
progressive jackpot meter need not precisely show the
actual moneys in the common progressive jackpot award at
each instant. Nothing shall prohibit the use of an odometer
or other paced updating progressive display to show updates
to the jackpot. When a paced updating display is used and
the remote site is communicating to the central computer,
the common progressive jackpot meter must display the
winning value after the jackpot broadcast is received from
the central system. If a common progressive jackpot is
recognized in the middle of a systemwide poll cycle, the
common progressive jackpot display may contain a value less
than the aggregated amount calculated by the central
system. The fund values from the remaining portion of the
poll cycle shall be received by the central system, but not
the local site, in which case the common progressive

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jackpot amount paid shall always be the higher of the 2
reporting amounts.
(7) When a common progressive jackpot is won, the wide
area progressive system provider shall have the
opportunity to inspect the machine, storage media, the
error events received by the central system, and any other
data which could reasonably be used to ascertain the
validity of the jackpot.
(A) The central system shall produce reports that
clearly demonstrate the method of arriving at the
payoff amount. This shall include the funds
contributed beginning with the polling cycle
immediately following the previous jackpot and all
funds contributed up to and including the polling cycle
that includes the jackpot signal. Funds contributed to
and registered by the system before the jackpot message
is received shall be deemed to have been contributed to
the progressive amount prior to the current jackpot.
Funds contributed to the system subsequent to the
jackpot message's being received, as well as funds
contributed to the system before the jackpot message is
received by the system but registered after the jackpot
message is received at the system, shall be deemed to
have been contributed to the progressive amount of the
next jackpot.
(B) The common progressive jackpot may be

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disbursed in periodic payments as long as each machine
clearly displays the fact that the jackpot shall be
paid in such periodic payments. In addition, the number
of periodic payments and time between payments must be
clearly displayed on the slot machine in a
non-misleading manner.
(C) A wide area progressive system provider must,
upon request, supply to the Board reports that support
and verify the economic activity of the system.
(8) In calculating adjusted gross revenue, a facility
may deduct its pro rata share of the present value of any
common progressive jackpots awarded. The deduction shall
be listed on the detailed accounting records provided by
the wide area progressive system provider. A facility's pro
rata share is based on the number of funds in from that
facility's machines on the wide area progressive system,
compared to the total amount of funds in on the whole
system for the time period between jackpots awarded.
(9) In the event a facility ceases operations and a
progressive jackpot is awarded subsequent to the last day
of the final month of operation, the facility may not file
an amended wagering tax submission or make a claim for a
wagering tax refund based on its contributions to that
particular progressive prize pool.
(10) A facility, or an entity that is licensed as a
manufacturer or distributor, shall provide the wide area

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progressive system in accordance with a written agreement
that shall be reviewed and approved by the Board prior to
offering the jackpots.
(11) The payment of any common progressive jackpot
offered on a wide area progressive system shall be
administered by the wide area progressive system provider,
and the provider shall have primary liability for payment
of any common progressive jackpot the person administers.
(12) A wide area progressive system provider shall
comply with the following:
(A) A reserve shall be established and maintained
by the provider of the wide area progressive system in
an amount of not less than the sum of the following
amounts:
(i) the present value of the aggregate
remaining balances owed on all jackpots previously
won by patrons on the wide area progressive system;
(ii) the present value of the amount currently
reflected on the jackpot meters of the wide area
progressive system; and
(iii) the present value of one additional
reset of the wide area progressive system.
(B) The reserve shall continue to be maintained
until all payments owed to winners of the common
progressive jackpots have been made.
(C) For common progressive jackpots disbursed in

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periodic payments, any qualified investment shall be
purchased within 90 days following notice of the win of
the common progressive jackpot, and a copy of such
qualified investment shall be provided to the Board
within 30 days of purchase. Any qualified investment
shall have a surrender value at maturity and shall have
a maturity date prior to the date the periodic jackpot
payment is required to be made.
(D) The person authorized to provide the wide area
progressive system shall not be permitted to sell,
trade, or otherwise dispose of any qualified
investments prior to their maturity unless approval to
do so is first obtained from the Board.
(E) Upon becoming aware of an event of
noncompliance with the terms of the reserve
requirement mandated by subparagraph (A) in this
paragraph (12), the wide area progressive system
provider must immediately notify the Board of such
event. An event of noncompliance includes a
non-payment of a jackpot periodic payment or a
circumstance which may cause the wide area progressive
system provider to be unable to fulfill, or which may
otherwise impair the person's ability to satisfy, the
person's jackpot payment obligations.
(F) On a quarterly basis, the wide area progressive
system provider must deliver to the Board a calculation

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of system reserves required under subparagraph (A) in
this paragraph (12). The calculation shall come with a
certification of financial compliance signed by a duly
authorized financial officer of the wide area
progressive system provider, on a form prescribed by
the Board, validating the calculation.
(13) For common progressive jackpots disbursed in
periodic payments, subsequent to the date of the win, a
winner may be offered the option to receive, in lieu of
periodic payments, a discounted single cash payment in the
form of a qualified prize option, as that term is defined
in Section 451(h) of the Internal Revenue Code of 1986. The
wide area progressive system provider shall calculate the
single cash payment based on the discount rate. Until the
new discount rate becomes effective, the discount rate
selected by the wide area progressive system provider shall
be used to calculate the single cash payment for all
qualified prizes that occur subsequent to the date of the
selected discount rate.
Section 90-42. The Video Gaming Act is amended by changing
Sections 5, 20, 25, 45, 79, and 80 and by adding Section 90 as
follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:

HB5146 - 459 - LRB100 18631 SMS 33856 b
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, or licensed truck stop establishment
for use in that establishment as a substitute for cash in the
conduct of gaming on a video gaming terminal.
"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the
licensed establishment for which it was issued.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed fraternal
establishments, or licensed veterans establishments.
"Licensed technician" means an individual who is licensed
under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but

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not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess or
control a video gaming terminal or to have access to the inner
workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal
operator under this Act.
"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act to
supply major components or parts to video gaming terminals to
licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to
video poker, line up, and blackjack, as authorized by the Board
utilizing a video display and microprocessors in which the
player may receive free games or credits that can be redeemed

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for cash. The term does not include a machine that directly
dispenses coins, cash, or tokens or is for amusement purposes
only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that
has a contractual relationship with an inter-track wagering
location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is also
the corporate parent or subsidiary of any licensee licensed
under the Illinois Horse Racing Act of 1975. "Licensed
establishment" does not include a facility operated by an
organization licensee, an inter-track wagering licensee, or an
inter-track wagering location licensee licensed under the
Illinois Horse Racing Act of 1975 or a riverboat licensed under

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the Illinois Riverboat Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter from
a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101 of
the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
7-16-14.)
(230 ILCS 40/20)
Sec. 20. Direct dispensing of receipt tickets only. A video

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gaming terminal may not directly dispense coins, cash, tokens,
or any other article of exchange or value except for receipt
tickets. Tickets shall be dispensed by pressing the ticket
dispensing button on the video gaming terminal at the end of
one's turn or play. The ticket shall indicate the total amount
of credits and the cash award, the time of day in a 24-hour
format showing hours and minutes, the date, the terminal serial
number, the sequential number of the ticket, and an encrypted
validation number from which the validity of the prize may be
determined. The player shall turn in this ticket to the
appropriate person at the licensed establishment, licensed
truck stop establishment, licensed fraternal establishment, or
licensed veterans establishment to receive the cash award. The
cost of the credit shall be one cent, 5 cents, 10 cents, or 25
cents, and the maximum wager played per hand shall not exceed
$4 $2. No cash award for the maximum wager on any individual
hand shall exceed $1,199, except in the case of a wide area
progressive system, as defined in the Illinois Gambling Act,
which shall have no limits for cash awards $500.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a
manufacturer of a video gaming terminal in Illinois unless the
person has a valid manufacturer's license issued under this

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Act. A manufacturer may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's
license.
(b) Distributor. A person may not sell, distribute, or
lease or market a video gaming terminal in Illinois unless the
person has a valid distributor's license issued under this Act.
A distributor may only sell video gaming terminals for use in
Illinois to persons having a valid distributor's or terminal
operator's license.
(c) Terminal operator. A person may not own, maintain, or
place a video gaming terminal unless he has a valid terminal
operator's license issued under this Act. A terminal operator
may only place video gaming terminals for use in Illinois in
licensed establishments, licensed truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments. No terminal operator may give anything of
value, including but not limited to a loan or financing
arrangement, to a licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment as any incentive or inducement to locate
video terminals in that establishment. Of the after-tax profits
from a video gaming terminal, 50% shall be paid to the terminal
operator and 50% shall be paid to the licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment,
notwithstanding any agreement to the contrary. A video terminal

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operator that violates one or more requirements of this
subsection is guilty of a Class 4 felony and is subject to
termination of his or her license by the Board.
(d) Licensed technician. A person may not service,
maintain, or repair a video gaming terminal in this State
unless he or she (1) has a valid technician's license issued
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(d-5) Licensed terminal handler. No person, including, but
not limited to, an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator licensed pursuant to this Act, shall have
possession or control of a video gaming terminal, or access to
the inner workings of a video gaming terminal, unless that
person possesses a valid terminal handler's license issued
under this Act.
(e) Licensed establishment. No video gaming terminal may be
placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, or licensed
fraternal establishment unless the owner or agent of the owner
of the licensed establishment, licensed veterans
establishment, licensed truck stop establishment, or licensed
fraternal establishment has entered into a written use
agreement with the terminal operator for placement of the
terminals. A copy of the use agreement shall be on file in the
terminal operator's place of business and available for

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inspection by individuals authorized by the Board. A licensed
establishment, licensed truck stop establishment, licensed
veterans establishment, or licensed fraternal establishment
may operate up to 5 video gaming terminals on its premises at
any time.
(f) (Blank).
(g) Financial interest restrictions. As used in this Act,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company means:
(A) When, with respect to a sole proprietorship, an
individual or his or her spouse owns, operates, manages, or
conducts, directly or indirectly, the organization,
association, or business, or any part thereof; or
(B) When, with respect to a partnership, the individual
or his or her spouse shares in any of the profits, or
potential profits, of the partnership activities; or
(C) When, with respect to a corporation, an individual
or his or her spouse is an officer or director, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of any class of stock of the
corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or

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otherwise controls 10% or more of the assets of the
organization; or
(E) When an individual or his or her spouse furnishes
5% or more of the capital, whether in cash, goods, or
services, for the operation of any business, association,
or organization during any calendar year; or
(F) When, with respect to a limited liability company,
an individual or his or her spouse is a member, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of the membership interest of
the limited liability company.
For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g) and
whose activities with respect to an organization, association,
or business are so closely aligned or coordinated as to
constitute the activities of a single entity.
(h) Location restriction. A licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment that is (i)
located within 1,000 feet of a facility operated by an
organization licensee licensed under the Illinois Horse Racing
Act of 1975 or the home dock of a riverboat licensed under the
Illinois Riverboat Gambling Act or (ii) located within 100 feet
of a school or a place of worship under the Religious
Corporation Act, is ineligible to operate a video gaming

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terminal. The location restrictions in this subsection (h) do
not apply if (A) a facility operated by an organization
licensee, a school, or a place of worship moves to or is
established within the restricted area after a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans establishment
becomes licensed under this Act or (B) a school or place of
worship moves to or is established within the restricted area
after a licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment obtains its original liquor license.
For the purpose of this subsection, "school" means an
elementary or secondary public school, or an elementary or
secondary private school registered with or recognized by the
State Board of Education.
Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment not be
located within 1,000 feet from a facility operated by an
organization licensee licensed under the Illinois Horse Racing
Act of 1975 or the home dock of a riverboat licensed under the
Illinois Riverboat Gambling Act. The Board shall not grant such
waiver if there is any common ownership or control, shared
business activity, or contractual arrangement of any type
between the establishment and the organization licensee or

HB5146 - 469 - LRB100 18631 SMS 33856 b
owners licensee of a riverboat. The Board shall adopt rules to
implement the provisions of this paragraph.
(i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by a
terminal operator in a location, the Board shall consider the
impact of any economic concentration of such operation of video
gaming terminals. The Board shall not allow a terminal operator
to operate video gaming terminals if the Board determines such
operation will result in undue economic concentration. For
purposes of this Section, "undue economic concentration" means
that a terminal operator would have such actual or potential
influence over video gaming terminals in Illinois as to:
(1) substantially impede or suppress competition among
terminal operators;
(2) adversely impact the economic stability of the
video gaming industry in Illinois; or
(3) negatively impact the purposes of the Video Gaming
Act.
The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming
terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation of
operation of any such video gaming terminals the Board

HB5146 - 470 - LRB100 18631 SMS 33856 b
determines will cause undue economic concentration.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall be licensed by the Board. The Board may
issue or deny a license under this Act to any person pursuant
to the same criteria set forth in Section 9 of the Illinois
Riverboat Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under the
significant influence or control of such a person. For the
purposes of this Act, "facilitated, enabled, or participated in
the use of coin-operated amusement devices for gambling
purposes" means that the person has been convicted of any
violation of Article 28 of the Criminal Code of 1961 or the

HB5146 - 471 - LRB100 18631 SMS 33856 b
Criminal Code of 2012. If there is pending legal action against
a person for any such violation, then the Board shall delay the
licensure of that person until the legal action is resolved.
(b) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall submit to a background
investigation conducted by the Board with the assistance of the
State Police or other law enforcement. To the extent that the
corporate structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a publicly
or non-publicly held corporation, (v) each stockholder of a
non-publicly held corporation, (vi) each stockholder of 5% or
more of a publicly held corporation, or (vii) each stockholder
of 5% or more in a parent or subsidiary corporation.
(c) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall disclose the identity of every
person, association, trust, corporation, or limited liability

HB5146 - 472 - LRB100 18631 SMS 33856 b
company having a greater than 1% direct or indirect pecuniary
interest in the video gaming terminal operation for which the
license is sought. If the disclosed entity is a trust, the
application shall disclose the names and addresses of the
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a limited liability company, the
names and addresses of all members; or if a partnership, the
names and addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment if that person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public interests
of the State or to the security and integrity of video
gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or
(3) present questionable business practices and
financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the satisfaction

HB5146 - 473 - LRB100 18631 SMS 33856 b
of the Board. The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of video gaming in this State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler..............................$50
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,000
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed fraternal establishment,
or licensed veterans establishment..............$100
(7) Video gaming terminal...................$100
(8) Terminal Handler..............................$50
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed fraternal

HB5146 - 474 - LRB100 18631 SMS 33856 b
establishment, or licensed veterans establishment shall
equally split the fees specified in item (7) of subsection (g).
(Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13;
98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
(230 ILCS 40/79)
Sec. 79. Investigators. Investigators appointed by the
Board pursuant to the powers conferred upon the Board by
paragraph (20.6) of subsection (c) of Section 5 of the Illinois
Riverboat Gambling Act and Section 80 of this Act shall have
authority to conduct investigations, searches, seizures,
arrests, and other duties imposed under this Act and the
Illinois Riverboat Gambling Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these powers
shall be (1) limited to offenses or violations occurring or
committed in connection with conduct subject to this Act,
including, but not limited to, the manufacture, distribution,
supply, operation, placement, service, maintenance, or play of
video gaming terminals and the distribution of profits and
collection of revenues resulting from such play, and (2)
exercised, to the fullest extent practicable, in cooperation
with the local police department of the applicable municipality
or, if these powers are exercised outside the boundaries of an
incorporated municipality or within a municipality that does
not have its own police department, in cooperation with the

HB5146 - 475 - LRB100 18631 SMS 33856 b
police department whose jurisdiction encompasses the
applicable locality.
(Source: P.A. 97-809, eff. 7-13-12.)
(230 ILCS 40/80)
Sec. 80. Applicability of Illinois Riverboat Gambling Act.
The provisions of the Illinois Riverboat Gambling Act, and all
rules promulgated thereunder, shall apply to the Video Gaming
Act, except where there is a conflict between the 2 Acts. In
the event of a conflict between the 2 Acts, the provisions of
the Illinois Gambling Act shall prevail. All provisions of the
Uniform Penalty and Interest Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 96-37, eff. 7-13-09.)
(230 ILCS 40/90 new)
Sec. 90. Wide area progressive systems. The operation of a
wide area progressive system, as defined in the Illinois
Gambling Act, is permitted, subject to the provisions of the
Illinois Gambling Act, and the following conditions:
(1) Licensed terminal operators and manufacturer or
supplier licensees may operate one or more wide area
progressive systems in licensed establishments, licensed
truck stop establishments, licensed veterans
establishments, and licensed fraternal establishments. A

HB5146 - 476 - LRB100 18631 SMS 33856 b
designated portion of a player's wager may be allocated to
the jackpot. The jackpot may be awarded to a player on any
of the video gaming terminals that are linked to the wide
area progressive system.
(2) A wide area progressive system shall at all times
be installed and operated in accordance with relevant
requirements of this Act and technical standards of wide
area progressive systems.
(3) A wide area progressive system shall be operated
and administered by participating licensees in accordance
with the terms and conditions of a written approved policy,
which must be submitted in writing and approved by the
Board prior to implementation and must comply with this Act
and technical standards of wide area progressive systems.
(4) Approved policies must address:
(A) responsibility for the funding and payment of
all jackpots, fees, and taxes associated with the
operation of the wide area progressive system;
(B) control and operation of the computer
monitoring room required under paragraph (5); and
(C) other requirements in the technical standards
on wide area progressive systems.
(5) A wide area progressive system shall be controlled
and operated from a computer monitoring room. The computer
monitoring room must:
(A) be under the sole possession and control of,

HB5146 - 477 - LRB100 18631 SMS 33856 b
and maintained and operated by, employees of the
licensee designated in the approved policy for that
system; the employees of the licensee may be required
to obtain a terminal handler license if the Board
determines, after a review of the work being performed,
the employees require a license or permit for the
protection of the integrity of gaming;
(B) have its monitoring equipment subjected to
surveillance coverage either by the surveillance
system of a licensee or by a dedicated surveillance
system maintained by the terminal operator;
(C) be accessible through a locked door; the door
must be alarmed in a manner that audibly signals the
surveillance monitoring room for the surveillance
system elected under subparagraph (B) of this
paragraph (5); and
(D) have a computer monitoring room entry log.
This Section shall not be construed to impact the maximum
wager as set forth in this Act.
Section 90-45. The Liquor Control Act of 1934 is amended by
changing Sections 5-1 and 6-30 as follows:
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:

HB5146 - 478 - LRB100 18631 SMS 33856 b
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Brewer, Class 11. Class 2 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine

HB5146 - 479 - LRB100 18631 SMS 33856 b
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act.
Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow the

HB5146 - 480 - LRB100 18631 SMS 33856 b
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634), is a holder of a
second-class wine-maker's license and annually produces more
than 25,000 gallons of its own wine and who distributes its
wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with Public Act 95-634.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license shall allow the
manufacture of up to 100,000 gallons of spirits by distillation
per year and the storage of such spirits. If a craft distiller

HB5146 - 481 - LRB100 18631 SMS 33856 b
licensee, including a craft distiller licensee who holds more
than one craft distiller license, is not affiliated with any
other manufacturer of spirits, then the craft distiller
licensee may sell such spirits to distributors in this State
and up to 2,500 gallons of such spirits to non-licensees to the
extent permitted by any exemption approved by the Commission
pursuant to Section 6-4 of this Act. A craft distiller license
holder may store such spirits at a non-contiguous licensed
location, but at no time shall a craft distiller license holder
directly or indirectly produce in the aggregate more than
100,000 gallons of spirits per year.
A craft distiller licensee may hold more than one craft
distiller's license. However, a craft distiller that holds more
than one craft distiller license shall not manufacture, in the
aggregate, more than 100,000 gallons of spirits by distillation
per year and shall not sell, in the aggregate, more than 2,500
gallons of such spirits to non-licensees in accordance with an
exemption approved by the State Commission pursuant to Section
6-4 of this Act.
Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) was licensed as
a distiller and manufactured no more spirits than permitted by
this Section shall not be required to pay the initial licensing
fee.
Class 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,

HB5146 - 482 - LRB100 18631 SMS 33856 b
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act.
Class 11. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
(a-1) A manufacturer which is licensed in this State to

HB5146 - 483 - LRB100 18631 SMS 33856 b
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the

HB5146 - 484 - LRB100 18631 SMS 33856 b
State, as may be permitted by law. No person licensed as a
distributor shall be granted a non-resident dealer's license.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only. No person licensed as an
importing distributor shall be granted a non-resident dealer's
license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 shall
deny, limit, remove, or restrict the ability of a holder of a

HB5146 - 485 - LRB100 18631 SMS 33856 b
retailer's license to transfer, deliver, or ship alcoholic
liquor to the purchaser for use or consumption subject to any
applicable local law or ordinance. Any retail license issued to
a manufacturer shall only permit the manufacturer to sell beer
at retail on the premises actually occupied by the
manufacturer. For the purpose of further describing the type of
business conducted at a retail licensed premises, a retailer's
licensee may be designated by the State Commission as (i) an on
premise consumption retailer, (ii) an off premise sale
retailer, or (iii) a combined on premise consumption and off
premise sale retailer.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale

HB5146 - 486 - LRB100 18631 SMS 33856 b
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with

HB5146 - 487 - LRB100 18631 SMS 33856 b
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Illinois Riverboat Gambling Act,
which boat or riverboat maintains a public dining room or
restaurant thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses

HB5146 - 488 - LRB100 18631 SMS 33856 b
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits

HB5146 - 489 - LRB100 18631 SMS 33856 b
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic

HB5146 - 490 - LRB100 18631 SMS 33856 b
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,

HB5146 - 491 - LRB100 18631 SMS 33856 b
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic

HB5146 - 492 - LRB100 18631 SMS 33856 b
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale, and (iii) the
non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or

HB5146 - 493 - LRB100 18631 SMS 33856 b
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;

HB5146 - 494 - LRB100 18631 SMS 33856 b
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than 3,720,000 gallons of beer per
year and held a brew pub license on or before July 1, 2015 may
(i) continue to qualify for and hold that brew pub license for
the licensed premises and (ii) manufacture more than 3,720,000
gallons of beer per year and continue to qualify for and hold
that brew pub license if that brewer, class 2 brewer, or
non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
(p) An auction liquor license shall allow the licensee to

HB5146 - 495 - LRB100 18631 SMS 33856 b
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12-month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that

HB5146 - 496 - LRB100 18631 SMS 33856 b
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be

HB5146 - 497 - LRB100 18631 SMS 33856 b
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year and upon
request by the State Commission or the Department of Revenue,
file with the State Commission a statement detailing each
shipment made to an Illinois resident. The statement shall
include the name and address of the third-party provider filing
the statement, the time period covered by the statement, and

HB5146 - 498 - LRB100 18631 SMS 33856 b
the following information:
(1) the name, address, and license number of the winery
shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests a
statement under this paragraph, the third-party provider must
provide that statement no later than 30 days after the request
is made. Any books, records, supporting papers, and documents
containing information and data relating to a statement under
this paragraph shall be kept and preserved for a period of 3
years, unless their destruction sooner is authorized, in
writing, by the Director of Revenue, and shall be open and
available to inspection by the Director of Revenue or the State
Commission or any duly authorized officer, agent, or employee
of the State Commission or the Department of Revenue, at all
times during business hours of the day. Any person who violates
any provision of this paragraph or any rule of the State
Commission for the administration and enforcement of the
provisions of this paragraph is guilty of a Class C
misdemeanor. In case of a continuing violation, each day's
continuance thereof shall be a separate and distinct offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common

HB5146 - 499 - LRB100 18631 SMS 33856 b
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)

HB5146 - 500 - LRB100 18631 SMS 33856 b
must comply with the requirements of Section 6-29 of this Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow an
Illinois licensed craft distiller to transfer a portion of its
alcoholic liquor inventory from its craft distiller licensed
premises to the premises specified in the license hereby
created and to conduct a sampling, only in the premises
specified in the license hereby created, of the transferred
alcoholic liquor in accordance with subsection (c) of Section
6-31 of this Act. The transferred alcoholic liquor may not be
sold or resold in any form. An applicant for the craft
distiller tasting permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)

HB5146 - 501 - LRB100 18631 SMS 33856 b
(235 ILCS 5/6-30) (from Ch. 43, par. 144f)
Sec. 6-30. Notwithstanding any other provision of this Act,
the Illinois Gaming Board shall have exclusive authority to
establish the hours for sale and consumption of alcoholic
liquor on board a riverboat during riverboat gambling
excursions and in a casino conducted in accordance with the
Illinois Riverboat Gambling Act.
(Source: P.A. 87-826.)
Section 90-46. The Illinois Public Aid Code is amended by
changing Section 10-17.15 as follows:
(305 ILCS 5/10-17.15)
Sec. 10-17.15. Certification of information to State
gaming licensees.
(a) For purposes of this Section, "State gaming licensee"
means, as applicable, an organization licensee or advance
deposit wagering licensee licensed under the Illinois Horse
Racing Act of 1975, an owners licensee licensed under the
Illinois Riverboat Gambling Act, or a licensee that operates,
under any law of this State, one or more facilities or gaming
locations at which lawful gambling is authorized and licensed
as provided in the Illinois Riverboat Gambling Act.
(b) The Department may provide, by rule, for certification
to any State gaming licensee of past due child support owed by

HB5146 - 502 - LRB100 18631 SMS 33856 b
a responsible relative under a support order entered by a court
or administrative body of this or any other State on behalf of
a resident or non-resident receiving child support services
under this Article in accordance with the requirements of Title
IV-D, Part D, of the Social Security Act. The State gaming
licensee shall have the ability to withhold from winnings
required to be reported to the Internal Revenue Service on Form
W-2G, up to the full amount of winnings necessary to pay the
winner's past due child support. The rule shall provide for
notice to and an opportunity to be heard by each responsible
relative affected and any final administrative decision
rendered by the Department shall be reviewed only under and in
accordance with the Administrative Review Law.
(c) For withholding of winnings, the State gaming licensee
shall be entitled to an administrative fee not to exceed the
lesser of 4% of the total amount of cash winnings paid to the
gambling winner or $150.
(d) In no event may the total amount withheld from the cash
payout, including the administrative fee, exceed the total cash
winnings claimed by the obligor. If the cash payout claimed is
greater than the amount sufficient to satisfy the obligor's
delinquent child support payments, the State gaming licensee
shall pay the obligor the remaining balance of the payout, less
the administrative fee authorized by subsection (c) of this
Section, at the time it is claimed.
(e) A State gaming licensee who in good faith complies with

HB5146 - 503 - LRB100 18631 SMS 33856 b
the requirements of this Section shall not be liable to the
gaming winner or any other individual or entity.
(Source: P.A. 98-318, eff. 8-12-13.)
Section 90-47. The Firearm Concealed Carry Act is amended
by changing Section 65 as follows:
(430 ILCS 66/65)
Sec. 65. Prohibited areas.
(a) A licensee under this Act shall not knowingly carry a
firearm on or into:
(1) Any building, real property, and parking area under
the control of a public or private elementary or secondary
school.
(2) Any building, real property, and parking area under
the control of a pre-school or child care facility,
including any room or portion of a building under the
control of a pre-school or child care facility. Nothing in
this paragraph shall prevent the operator of a child care
facility in a family home from owning or possessing a
firearm in the home or license under this Act, if no child
under child care at the home is present in the home or the
firearm in the home is stored in a locked container when a
child under child care at the home is present in the home.
(3) Any building, parking area, or portion of a
building under the control of an officer of the executive

HB5146 - 504 - LRB100 18631 SMS 33856 b
or legislative branch of government, provided that nothing
in this paragraph shall prohibit a licensee from carrying a
concealed firearm onto the real property, bikeway, or trail
in a park regulated by the Department of Natural Resources
or any other designated public hunting area or building
where firearm possession is permitted as established by the
Department of Natural Resources under Section 1.8 of the
Wildlife Code.
(4) Any building designated for matters before a
circuit court, appellate court, or the Supreme Court, or
any building or portion of a building under the control of
the Supreme Court.
(5) Any building or portion of a building under the
control of a unit of local government.
(6) Any building, real property, and parking area under
the control of an adult or juvenile detention or
correctional institution, prison, or jail.
(7) Any building, real property, and parking area under
the control of a public or private hospital or hospital
affiliate, mental health facility, or nursing home.
(8) Any bus, train, or form of transportation paid for
in whole or in part with public funds, and any building,
real property, and parking area under the control of a
public transportation facility paid for in whole or in part
with public funds.
(9) Any building, real property, and parking area under

HB5146 - 505 - LRB100 18631 SMS 33856 b
the control of an establishment that serves alcohol on its
premises, if more than 50% of the establishment's gross
receipts within the prior 3 months is from the sale of
alcohol. The owner of an establishment who knowingly fails
to prohibit concealed firearms on its premises as provided
in this paragraph or who knowingly makes a false statement
or record to avoid the prohibition on concealed firearms
under this paragraph is subject to the penalty under
subsection (c-5) of Section 10-1 of the Liquor Control Act
of 1934.
(10) Any public gathering or special event conducted on
property open to the public that requires the issuance of a
permit from the unit of local government, provided this
prohibition shall not apply to a licensee who must walk
through a public gathering in order to access his or her
residence, place of business, or vehicle.
(11) Any building or real property that has been issued
a Special Event Retailer's license as defined in Section
1-3.17.1 of the Liquor Control Act during the time
designated for the sale of alcohol by the Special Event
Retailer's license, or a Special use permit license as
defined in subsection (q) of Section 5-1 of the Liquor
Control Act during the time designated for the sale of
alcohol by the Special use permit license.
(12) Any public playground.
(13) Any public park, athletic area, or athletic

HB5146 - 506 - LRB100 18631 SMS 33856 b
facility under the control of a municipality or park
district, provided nothing in this Section shall prohibit a
licensee from carrying a concealed firearm while on a trail
or bikeway if only a portion of the trail or bikeway
includes a public park.
(14) Any real property under the control of the Cook
County Forest Preserve District.
(15) Any building, classroom, laboratory, medical
clinic, hospital, artistic venue, athletic venue,
entertainment venue, officially recognized
university-related organization property, whether owned or
leased, and any real property, including parking areas,
sidewalks, and common areas under the control of a public
or private community college, college, or university.
(16) Any building, real property, or parking area under
the control of a gaming facility licensed under the
Illinois Riverboat Gambling Act or the Illinois Horse
Racing Act of 1975, including an inter-track wagering
location licensee.
(17) Any stadium, arena, or the real property or
parking area under the control of a stadium, arena, or any
collegiate or professional sporting event.
(18) Any building, real property, or parking area under
the control of a public library.
(19) Any building, real property, or parking area under
the control of an airport.

HB5146 - 507 - LRB100 18631 SMS 33856 b
(20) Any building, real property, or parking area under
the control of an amusement park.
(21) Any building, real property, or parking area under
the control of a zoo or museum.
(22) Any street, driveway, parking area, property,
building, or facility, owned, leased, controlled, or used
by a nuclear energy, storage, weapons, or development site
or facility regulated by the federal Nuclear Regulatory
Commission. The licensee shall not under any circumstance
store a firearm or ammunition in his or her vehicle or in a
compartment or container within a vehicle located anywhere
in or on the street, driveway, parking area, property,
building, or facility described in this paragraph.
(23) Any area where firearms are prohibited under
federal law.
(a-5) Nothing in this Act shall prohibit a public or
private community college, college, or university from:
(1) prohibiting persons from carrying a firearm within
a vehicle owned, leased, or controlled by the college or
university;
(2) developing resolutions, regulations, or policies
regarding student, employee, or visitor misconduct and
discipline, including suspension and expulsion;
(3) developing resolutions, regulations, or policies
regarding the storage or maintenance of firearms, which
must include designated areas where persons can park

HB5146 - 508 - LRB100 18631 SMS 33856 b
vehicles that carry firearms; and
(4) permitting the carrying or use of firearms for the
purpose of instruction and curriculum of officially
recognized programs, including but not limited to military
science and law enforcement training programs, or in any
designated area used for hunting purposes or target
shooting.
(a-10) The owner of private real property of any type may
prohibit the carrying of concealed firearms on the property
under his or her control. The owner must post a sign in
accordance with subsection (d) of this Section indicating that
firearms are prohibited on the property, unless the property is
a private residence.
(b) Notwithstanding subsections (a), (a-5), and (a-10) of
this Section except under paragraph (22) or (23) of subsection
(a), any licensee prohibited from carrying a concealed firearm
into the parking area of a prohibited location specified in
subsection (a), (a-5), or (a-10) of this Section shall be
permitted to carry a concealed firearm on or about his or her
person within a vehicle into the parking area and may store a
firearm or ammunition concealed in a case within a locked
vehicle or locked container out of plain view within the
vehicle in the parking area. A licensee may carry a concealed
firearm in the immediate area surrounding his or her vehicle
within a prohibited parking lot area only for the limited
purpose of storing or retrieving a firearm within the vehicle's

HB5146 - 509 - LRB100 18631 SMS 33856 b
trunk. For purposes of this subsection, "case" includes a glove
compartment or console that completely encloses the concealed
firearm or ammunition, the trunk of the vehicle, or a firearm
carrying box, shipping box, or other container.
(c) A licensee shall not be in violation of this Section
while he or she is traveling along a public right of way that
touches or crosses any of the premises under subsection (a),
(a-5), or (a-10) of this Section if the concealed firearm is
carried on his or her person in accordance with the provisions
of this Act or is being transported in a vehicle by the
licensee in accordance with all other applicable provisions of
law.
(d) Signs stating that the carrying of firearms is
prohibited shall be clearly and conspicuously posted at the
entrance of a building, premises, or real property specified in
this Section as a prohibited area, unless the building or
premises is a private residence. Signs shall be of a uniform
design as established by the Department and shall be 4 inches
by 6 inches in size. The Department shall adopt rules for
standardized signs to be used under this subsection.
(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
Section 90-50. The Criminal Code of 2012 is amended by
changing Sections 28-1, 28-1.1, 28-3, 28-5, and 28-7 as
follows:

HB5146 - 510 - LRB100 18631 SMS 33856 b
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section
8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section

HB5146 - 511 - LRB100 18631 SMS 33856 b
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by
and conducted in accordance with the laws of Illinois or
any other state or foreign government;

HB5146 - 512 - LRB100 18631 SMS 33856 b
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6) and (6.1) of
subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.

HB5146 - 513 - LRB100 18631 SMS 33856 b
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.

HB5146 - 514 - LRB100 18631 SMS 33856 b
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games conducted on riverboats when
authorized by the Illinois Riverboat Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment when conducted in accordance with the Video
Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.

HB5146 - 515 - LRB100 18631 SMS 33856 b
1463).
(c) Sentence.
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
Sec. 28-1.1. Syndicated gambling.
(a) Declaration of Purpose. Recognizing the close
relationship between professional gambling and other organized
crime, it is declared to be the policy of the legislature to
restrain persons from engaging in the business of gambling for
profit in this State. This Section shall be liberally construed
and administered with a view to carrying out this policy.
(b) A person commits syndicated gambling when he or she
operates a "policy game" or engages in the business of
bookmaking.
(c) A person "operates a policy game" when he or she
knowingly uses any premises or property for the purpose of
receiving or knowingly does receive from what is commonly
called "policy":

HB5146 - 516 - LRB100 18631 SMS 33856 b
(1) money from a person other than the bettor or player
whose bets or plays are represented by the money; or
(2) written "policy game" records, made or used over
any period of time, from a person other than the bettor or
player whose bets or plays are represented by the written
record.
(d) A person engages in bookmaking when he or she knowingly
receives or accepts more than five bets or wagers upon the
result of any trials or contests of skill, speed or power of
endurance or upon any lot, chance, casualty, unknown or
contingent event whatsoever, which bets or wagers shall be of
such size that the total of the amounts of money paid or
promised to be paid to the bookmaker on account thereof shall
exceed $2,000. Bookmaking is the receiving or accepting of bets
or wagers regardless of the form or manner in which the
bookmaker records them.
(e) Participants in any of the following activities shall
not be convicted of syndicated gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance;
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in the contest;

HB5146 - 517 - LRB100 18631 SMS 33856 b
(3) Pari-mutuel betting as authorized by law of this
State;
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when the
transportation is not prohibited by any applicable Federal
law;
(5) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act;
(6) Gambling games conducted on riverboats, in
casinos, or at electronic gaming facilities when
authorized by the Illinois Riverboat Gambling Act;
(7) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment when conducted in accordance with the Video
Gaming Act; and
(8) Savings promotion raffles authorized under Section
5g of the Illinois Banking Act, Section 7008 of the Savings
Bank Act, Section 42.7 of the Illinois Credit Union Act,
Section 5136B of the National Bank Act (12 U.S.C. 25a), or
Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
(f) Sentence. Syndicated gambling is a Class 3 felony.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)

HB5146 - 518 - LRB100 18631 SMS 33856 b
(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
any real estate, vehicle, boat or any other property whatsoever
used for the purposes of gambling other than gambling conducted
in the manner authorized by the Illinois Riverboat Gambling Act
or the Video Gaming Act. Any person who knowingly permits any
premises or property owned or occupied by him or under his
control to be used as a gambling place commits a Class A
misdemeanor. Each subsequent offense is a Class 4 felony. When
any premises is determined by the circuit court to be a
gambling place:
(a) Such premises is a public nuisance and may be proceeded
against as such, and
(b) All licenses, permits or certificates issued by the
State of Illinois or any subdivision or public agency thereof
authorizing the serving of food or liquor on such premises
shall be void; and no license, permit or certificate so
cancelled shall be reissued for such premises for a period of
60 days thereafter; nor shall any person convicted of keeping a
gambling place be reissued such license for one year from his
conviction and, after a second conviction of keeping a gambling
place, any such person shall not be reissued such license, and
(c) Such premises of any person who knowingly permits
thereon a violation of any Section of this Article shall be
held liable for, and may be sold to pay any unsatisfied
judgment that may be recovered and any unsatisfied fine that

HB5146 - 519 - LRB100 18631 SMS 33856 b
may be levied under any Section of this Article.
(Source: P.A. 96-34, eff. 7-13-09.)
(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
(Text of Section before amendment by P.A. 100-512)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,
and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.

HB5146 - 520 - LRB100 18631 SMS 33856 b
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request
for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the

HB5146 - 521 - LRB100 18631 SMS 33856 b
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b)(7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.
(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat

HB5146 - 522 - LRB100 18631 SMS 33856 b
gambling operation, casino gambling operation, or electronic
gaming facility or used to train occupational licensees of a
riverboat gambling operation, casino gambling operation, or
electronic gaming facility as authorized under the Illinois
Riverboat Gambling Act is exempt from seizure under this
Section.
(f) Any gambling equipment, devices and supplies provided
by a licensed supplier in accordance with the Illinois
Riverboat Gambling Act which are removed from a the riverboat,
casino, or electronic gaming facility for repair are exempt
from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:
(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment for repair.
(Source: P.A. 98-31, eff. 6-24-13.)
(Text of Section after amendment by P.A. 100-512)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable

HB5146 - 523 - LRB100 18631 SMS 33856 b
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,
and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written

HB5146 - 524 - LRB100 18631 SMS 33856 b
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request
for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b) (7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to

HB5146 - 525 - LRB100 18631 SMS 33856 b
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.
(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat
gambling operation, casino gambling operation, or electronic
gaming facility or used to train occupational licensees of a
riverboat gambling operation, casino gambling operation, or
electronic gaming facility as authorized under the Illinois
Riverboat Gambling Act is exempt from seizure under this
Section.
(f) Any gambling equipment, devices and supplies provided

HB5146 - 526 - LRB100 18631 SMS 33856 b
by a licensed supplier in accordance with the Illinois
Riverboat Gambling Act which are removed from a the riverboat,
casino, or electronic gaming facility for repair are exempt
from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:
(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment for repair.
(h) Property seized or forfeited under this Section is
subject to reporting under the Seizure and Forfeiture Reporting
Act.
(Source: P.A. 100-512, eff. 7-1-18.)
(720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
Sec. 28-7. Gambling contracts void.
(a) All promises, notes, bills, bonds, covenants,
contracts, agreements, judgments, mortgages, or other
securities or conveyances made, given, granted, drawn, or
entered into, or executed by any person whatsoever, where the
whole or any part of the consideration thereof is for any money

HB5146 - 527 - LRB100 18631 SMS 33856 b
or thing of value, won or obtained in violation of any Section
of this Article are null and void.
(b) Any obligation void under this Section may be set aside
and vacated by any court of competent jurisdiction, upon a
complaint filed for that purpose, by the person so granting,
giving, entering into, or executing the same, or by his
executors or administrators, or by any creditor, heir, legatee,
purchaser or other person interested therein; or if a judgment,
the same may be set aside on motion of any person stated above,
on due notice thereof given.
(c) No assignment of any obligation void under this Section
may in any manner affect the defense of the person giving,
granting, drawing, entering into or executing such obligation,
or the remedies of any person interested therein.
(d) This Section shall not prevent a licensed owner of a
riverboat gambling operation, casino gambling operation, or an
electronic gaming licensee under the Illinois Gambling Act and
the Illinois Horse Racing Act of 1975 from instituting a cause
of action to collect any amount due and owing under an
extension of credit to a riverboat gambling patron as
authorized under Section 11.1 of the Illinois Riverboat
Gambling Act.
(Source: P.A. 87-826.)
Section 90-55. The Eminent Domain Act is amended by adding
Section 15-5-48 as follows:

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(735 ILCS 30/15-5-48 new)
Sec. 15-5-48. Eminent domain powers in new Acts. The
following provisions of law may include express grants of the
power to acquire property by condemnation or eminent domain:
Chicago Casino Development Authority Act; City of Chicago; for
the purposes of the Act.
Section 90-60. The Payday Loan Reform Act is amended by
changing Section 3-5 as follows:
(815 ILCS 122/3-5)
Sec. 3-5. Licensure.
(a) A license to make a payday loan shall state the
address, including city and state, at which the business is to
be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of
business of the licensee and shall not be transferable or
assignable.
(b) An application for a license shall be in writing and in
a form prescribed by the Secretary. The Secretary may not issue
a payday loan license unless and until the following findings
are made:
(1) that the financial responsibility, experience,
character, and general fitness of the applicant are such as

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to command the confidence of the public and to warrant the
belief that the business will be operated lawfully and
fairly and within the provisions and purposes of this Act;
and
(2) that the applicant has submitted such other
information as the Secretary may deem necessary.
(c) A license shall be issued for no longer than one year,
and no renewal of a license may be provided if a licensee has
substantially violated this Act and has not cured the violation
to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as
attorney-in-fact upon whom all lawful process against the
licensee may be served with the same legal force and validity
as if served on the licensee. A copy of the written
appointment, duly certified, shall be filed in the office of
the Secretary, and a copy thereof certified by the Secretary
shall be sufficient evidence to subject a licensee to
jurisdiction in a court of law. This appointment shall remain
in effect while any liability remains outstanding in this State
against the licensee. When summons is served upon the Secretary
as attorney-in-fact for a licensee, the Secretary shall
immediately notify the licensee by registered mail, enclosing
the summons and specifying the hour and day of service.
(e) A licensee must pay an annual fee of $1,000. In
addition to the license fee, the reasonable expense of any
examination or hearing by the Secretary under any provisions of

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this Act shall be borne by the licensee. If a licensee fails to
renew its license by December 31, its license shall
automatically expire; however, the Secretary, in his or her
discretion, may reinstate an expired license upon:
(1) payment of the annual fee within 30 days of the
date of expiration; and
(2) proof of good cause for failure to renew.
(f) Not more than one place of business shall be maintained
under the same license, but the Secretary may issue more than
one license to the same licensee upon compliance with all the
provisions of this Act governing issuance of a single license.
The location, except those locations already in existence as of
June 1, 2005, may not be within one mile of a horse race track
subject to the Illinois Horse Racing Act of 1975, within one
mile of a facility at which gambling is conducted under the
Illinois Riverboat Gambling Act, within one mile of the
location at which a riverboat subject to the Illinois Riverboat
Gambling Act docks, or within one mile of any State of Illinois
or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans
under this Act within any office, suite, room, or place of
business in which (1) any loans are offered or made under the
Consumer Installment Loan Act other than title secured loans as
defined in subsection (a) of Section 15 of the Consumer
Installment Loan Act and governed by Title 38, Section 110.330
of the Illinois Administrative Code or (2) any other business

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is solicited or engaged in unless the other business is
licensed by the Department or, in the opinion of the Secretary,
the other business would not be contrary to the best interests
of consumers and is authorized by the Secretary in writing.
(g-5) Notwithstanding subsection (g) of this Section, a
licensee may obtain a license under the Consumer Installment
Loan Act (CILA) for the exclusive purpose and use of making
title secured loans, as defined in subsection (a) of Section 15
of CILA and governed by Title 38, Section 110.300 of the
Illinois Administrative Code. A licensee may continue to
service Consumer Installment Loan Act loans that were
outstanding as of the effective date of this amendatory Act of
the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that
shall be available to interested consumers and lenders and the
public. The Secretary shall maintain a toll-free number whereby
consumers may obtain information about licensees. The
Secretary shall also establish a complaint process under which
an aggrieved consumer may file a complaint against a licensee
or non-licensee who violates any provision of this Act.
(Source: P.A. 96-936, eff. 3-21-11.)
Section 90-65. The Travel Promotion Consumer Protection
Act is amended by changing Section 2 as follows:
(815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)

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Sec. 2. Definitions.
(a) "Travel promoter" means a person, including a tour
operator, who sells, provides, furnishes, contracts for,
arranges or advertises that he or she will arrange wholesale or
retail transportation by air, land, sea or navigable stream,
either separately or in conjunction with other services.
"Travel promoter" does not include (1) an air carrier; (2) a
sea carrier; (3) an officially appointed agent of an air
carrier who is a member in good standing of the Airline
Reporting Corporation; (4) a travel promoter who has in force
$1,000,000 or more of liability insurance coverage for
professional errors and omissions and a surety bond or
equivalent surety in the amount of $100,000 or more for the
benefit of consumers in the event of a bankruptcy on the part
of the travel promoter; or (5) a riverboat subject to
regulation under the Illinois Riverboat Gambling Act.
(b) "Advertise" means to make any representation in the
solicitation of passengers and includes communication with
other members of the same partnership, corporation, joint
venture, association, organization, group or other entity.
(c) "Passenger" means a person on whose behalf money or
other consideration has been given or is to be given to
another, including another member of the same partnership,
corporation, joint venture, association, organization, group
or other entity, for travel.
(d) "Ticket or voucher" means a writing or combination of

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writings which is itself good and sufficient to obtain
transportation and other services for which the passenger has
contracted.
(Source: P.A. 91-357, eff. 7-29-99.)
(30 ILCS 105/5.490 rep.)
Section 90-70. The State Finance Act is amended by
repealing Section 5.490.
(230 ILCS 5/54 rep.)
Section 90-75. The Illinois Horse Racing Act of 1975 is
amended by repealing Section 54.
ARTICLE 99.
Section 99-95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that text
does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.
Section 99-97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99-99. Effective date. This Act takes effect upon

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becoming law.
HB5146 - 535 - LRB100 18631 SMS 33856 b
INDEX
Statutes amended in order of appearance
New Act
5 ILCS 430/5-45
20 ILCS 301/5-20
20 ILCS 605/605-530 new
20 ILCS 605/605-535 new
20 ILCS 1605/9.1
20 ILCS 2505/2505-305 was 20 ILCS 2505/39b15.1
30 ILCS 5/3-1 from Ch. 15, par. 303-1
30 ILCS 105/5.886 new
30 ILCS 105/5.887 new
30 ILCS 105/5.888 new
30 ILCS 105/6z-45
30 ILCS 105/6z-105 new
35 ILCS 5/201 from Ch. 120, par. 2-201
35 ILCS 5/303 from Ch. 120, par. 3-303
35 ILCS 5/304 from Ch. 120, par. 3-304
35 ILCS 5/710 from Ch. 120, par. 7-710
35 ILCS 200/15-144 new
65 ILCS 5/8-10-2.6 new
70 ILCS 1825/5.1 from Ch. 19, par. 255.1
205 ILCS 670/12.5
230 ILCS 5/1.2
230 ILCS 5/3.11 from Ch. 8, par. 37-3.11
HB5146 - 536 - LRB100 18631 SMS 33856 b
230 ILCS 5/3.12 from Ch. 8, par. 37-3.12
230 ILCS 5/3.31 new
230 ILCS 5/3.32 new
230 ILCS 5/3.33 new
230 ILCS 5/3.35 new
230 ILCS 5/3.36 new
230 ILCS 5/6 from Ch. 8, par. 37-6
230 ILCS 5/9 from Ch. 8, par. 37-9
230 ILCS 5/15 from Ch. 8, par. 37-15
230 ILCS 5/18 from Ch. 8, par. 37-18
230 ILCS 5/19 from Ch. 8, par. 37-19
230 ILCS 5/20 from Ch. 8, par. 37-20
230 ILCS 5/21 from Ch. 8, par. 37-21
230 ILCS 5/24 from Ch. 8, par. 37-24
230 ILCS 5/25 from Ch. 8, par. 37-25
230 ILCS 5/26 from Ch. 8, par. 37-26
230 ILCS 5/26.8
230 ILCS 5/26.9
230 ILCS 5/27 from Ch. 8, par. 37-27
230 ILCS 5/30 from Ch. 8, par. 37-30
230 ILCS 5/30.5
230 ILCS 5/31 from Ch. 8, par. 37-31
230 ILCS 5/32.1
230 ILCS 5/34.3 new
230 ILCS 5/36 from Ch. 8, par. 37-36
230 ILCS 5/40 from Ch. 8, par. 37-40
HB5146 - 537 - LRB100 18631 SMS 33856 b
230 ILCS 5/54.75
230 ILCS 5/56 new
230 ILCS 10/1 from Ch. 120, par. 2401
230 ILCS 10/2 from Ch. 120, par. 2402
230 ILCS 10/3 from Ch. 120, par. 2403
230 ILCS 10/4 from Ch. 120, par. 2404
230 ILCS 10/5 from Ch. 120, par. 2405
230 ILCS 10/5.1 from Ch. 120, par. 2405.1
230 ILCS 10/5.3 new
230 ILCS 10/6 from Ch. 120, par. 2406
230 ILCS 10/7 from Ch. 120, par. 2407
230 ILCS 10/7.3
230 ILCS 10/7.5
230 ILCS 10/7.7 new
230 ILCS 10/7.8 new
230 ILCS 10/7.9 new
230 ILCS 10/7.10 new
230 ILCS 10/7.11 new
230 ILCS 10/7.12 new
230 ILCS 10/7.13 new
230 ILCS 10/8 from Ch. 120, par. 2408
230 ILCS 10/9 from Ch. 120, par. 2409
230 ILCS 10/11 from Ch. 120, par. 2411
230 ILCS 10/11.1 from Ch. 120, par. 2411.1
230 ILCS 10/12 from Ch. 120, par. 2412
230 ILCS 10/13 from Ch. 120, par. 2413
HB5146 - 538 - LRB100 18631 SMS 33856 b
230 ILCS 10/14 from Ch. 120, par. 2414
230 ILCS 10/15 from Ch. 120, par. 2415
230 ILCS 10/16 from Ch. 120, par. 2416
230 ILCS 10/17 from Ch. 120, par. 2417
230 ILCS 10/17.1 from Ch. 120, par. 2417.1
230 ILCS 10/18 from Ch. 120, par. 2418
230 ILCS 10/18.1
230 ILCS 10/19 from Ch. 120, par. 2419
230 ILCS 10/20 from Ch. 120, par. 2420
230 ILCS 10/21 from Ch. 120, par. 2421
230 ILCS 10/23 from Ch. 120, par. 2423
230 ILCS 10/24
230 ILCS 10/25 new
230 ILCS 40/5
230 ILCS 40/20
230 ILCS 40/25
230 ILCS 40/45
230 ILCS 40/79
230 ILCS 40/80
230 ILCS 40/90 new
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-30 from Ch. 43, par. 144f
305 ILCS 5/10-17.15
430 ILCS 66/65
720 ILCS 5/28-1 from Ch. 38, par. 28-1
720 ILCS 5/28-1.1 from Ch. 38, par. 28-1.1
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