Bill Text: IL SB2254 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Creates the Department of Lottery and Gaming Act. Creates the Department of Lottery and Gaming to consolidate the functions of the Department of the Lottery, the Illinois Racing Board, and the Illinois Gaming Board. Creates the Lottery and Gaming Board consisting of the directors of the divisions in the new Department of Lottery and Gaming. Provides that the divisions shall be: Division of Casino Gambling, Division of Video Gaming, Division of Horse Racing, Division of Sports Wagering, and Division of Lottery. Provides for the transfer of functions, abolition of consolidating agencies, and the effect of transfer. Makes conforming changes throughout various Acts.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2022-02-18 - Rule 3-9(a) / Re-referred to Assignments [SB2254 Detail]

Download: Illinois-2021-SB2254-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2254

Introduced 2/26/2021, by Sen. Dale Fowler

SYNOPSIS AS INTRODUCED:
See Index

Creates the Department of Lottery and Gaming Act. Creates the Department of Lottery and Gaming to consolidate the functions of the Department of the Lottery, the Illinois Racing Board, and the Illinois Gaming Board. Creates the Lottery and Gaming Board consisting of the directors of the divisions in the new Department of Lottery and Gaming. Provides that the divisions shall be: Division of Casino Gambling, Division of Video Gaming, Division of Horse Racing, Division of Sports Wagering, and Division of Lottery. Provides for the transfer of functions, abolition of consolidating agencies, and the effect of transfer. Makes conforming changes throughout various Acts.
LRB102 15486 SMS 20849 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB2254LRB102 15486 SMS 20849 b
1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Department of Lottery and Gaming Act.
6 Section 5. Definitions. As used in this Act:
7 "Consolidating agencies" means the Department of the
8Lottery, the Illinois Racing Board, and the Illinois Gaming
9Board.
10 "Department" means the Department of Lottery and Gaming.
11 Section 10. Department of Lottery and Gaming.
12 (a) There is created the Department of Lottery and Gaming
13to consolidate the functions of the Department of the Lottery,
14the Illinois Racing Board, and the Illinois Gaming Board.
15 (b) Within the Department, there shall be the following
16divisions:
17 Division of Casino Gambling.
18 Division of Video Gaming.
19 Division of Horse Racing.
20 Division of Sports Wagering.
21 Division of Lottery.
22 (c) Each Division shall have responsibility for its

SB2254- 2 -LRB102 15486 SMS 20849 b
1respective area within the Department and as provided by the
2Illinois Gambling Act, the Video Gaming Act, the State Fair
3Gaming Act, the Illinois Horse Racing Act of 1975, the Sports
4Wagering Act, and the Illinois Lottery Law.
5 Section 15. Lottery and Gaming Board.
6 (a) The Department shall be led by the Lottery and Gaming
7Board. The Board shall have 5 members:
8 Director of Casino Gambling.
9 Director of Video Gaming.
10 Director of Horse Racing.
11 Director of Sports Wagering.
12 Director of Lottery.
13 (b) The Directors of Casino Gambling, Video Gaming, Horse
14Racing, Sports Wagering, and Lottery shall be appointed by the
15Governor for terms of 4 years, with the advice and consent of
16the Senate. The compensation of the Directors shall be set by
17the Governor at the time of their appointment. Directors must
18have relevant experience in the gaming industry related to
19their respective divisions.
20 (c) The Director of Casino Gambling shall have the duties
21and powers described in the Illinois Gambling Act. The
22Director of Video Gaming shall have the duties and powers
23described in the Video Gaming Act and the State Fair Gaming
24Act. The Director of Horse Racing shall have the duties and
25powers described in the Illinois Horse Racing Act of 1975. The

SB2254- 3 -LRB102 15486 SMS 20849 b
1Director of Sport Wagering shall have the duties and powers
2described in the Sports Wagering Act. The Director of Lottery
3shall have the duties and powers described in the Illinois
4Lottery Law.
5 (d) The Directors shall exercise day to day supervision
6over their respective Divisions, subject to the supervision of
7the Lottery and Gaming Board.
8 Section 20. Transfer of functions.
9 (a) The functions and all associated powers, duties,
10rights, and responsibilities of the consolidating agencies
11shall be transferred to the Department of Lottery and Gaming
12and shall be exercised by the respective Divisions on behalf
13of the Department. The statutory powers, duties, rights, and
14responsibilities of the consolidating agencies associated with
15these functions derive from the Illinois Lottery Law, the
16Illinois Horse Racing Act of 1975, and the Illinois Gambling
17Act, the Video Gaming Act, the Sports Wagering Act, and the
18State Fair Gaming Act.
19 (b) If a provision of an Executive Order or any Act or
20Section thereof transferred by this Act provides for
21membership of the director or commissioner of any of the
22consolidating agencies on any council, commission, board, or
23other entity, the Lottery and Gaming Board or, at the
24Governor's discretion, the appropriate director of the
25respective division, or his or her designee, shall serve in

SB2254- 4 -LRB102 15486 SMS 20849 b
1that place. If more than one such person is required by law to
2serve on any council, commission, board, or other entity, an
3equivalent number of representatives of the Department shall
4so serve.
5 Section 25. Abolition of consolidating agencies; successor
6agency. The consolidating agencies listed in this Section
7shall be abolished. The rights, powers, and duties associated
8with the functions vested by law in these consolidating
9agencies, or any office, division, council, committee, bureau,
10board, commission, officer, employee, or associated
11individual, person or entity, and all rights, powers, and
12duties of the consolidating agencies related to the functions,
13including funding mechanisms, shall be transferred to the
14Department of Lottery and Gaming with this Act:
15 (1) Department of the Lottery.
16 (2) Illinois Racing Board.
17 (3) Illinois Gaming Board.
18The Department of Lottery and Gaming is the successor agency
19of the Department of the Lottery, the Illinois Racing Board,
20and the Illinois Gaming Board under Section 10-5 of the
21Successor Agency Act.
22 Section 30. Effect of transfer.
23 (a) The powers, duties, rights, and responsibilities
24related to the functions and transferred by the consolidating

SB2254- 5 -LRB102 15486 SMS 20849 b
1agencies to the Department shall not be affected by this Act,
2except that they shall all be carried out by the Department
3from the effective date of the transfers.
4 (b) The staffs of the consolidating agencies engaged in
5the performance of the functions shall be transferred to the
6Department. The status and rights of employees under the
7Personnel Code shall not be affected by the transfers. The
8rights of the employees, the State of Illinois, and its
9agencies under the Personnel Code and applicable collective
10bargaining agreements or under any pension, retirement, or
11annuity plan shall not be affected by this Act.
12 (c) All books, records, papers, documents, property (real
13and personal), contracts, and pending business pertaining to
14the powers, duties, rights, and responsibilities transferred
15by this Act from the consolidating agencies to the Department,
16including, but not limited to, material in electronic or
17magnetic format and necessary computer hardware and software,
18shall be delivered to the Department.
19 (d) All unexpended appropriations and balances and other
20funds available for use in connection with any of the
21functions shall be transferred for use by the Department for
22the functions pursuant to the direction of the Governor.
23Unexpended balances so transferred shall be expended only for
24the purpose for which the appropriations were originally made.
25 Section 35. Saving clause.

SB2254- 6 -LRB102 15486 SMS 20849 b
1 (a) The powers, duties, rights, and responsibilities
2related to the functions and transferred from the
3consolidating agencies by this Act shall be vested in and
4shall be exercised by the Department. Each act done in
5exercise of such powers, duties, rights, and responsibilities
6shall have the same legal effect as if done by any of the
7consolidating agencies or their divisions, officers, or
8employees.
9 (b) Every officer of the Department shall, for any
10offense, be subject to the same penalty or penalties, civil or
11criminal, as are prescribed by existing law for the same
12offense by any officer whose powers or duties were transferred
13under this Act.
14 (c) Whenever reports or notices are now required to be
15made or given or papers or documents furnished or served by any
16person to or upon any of the consolidating agencies in
17connection with any of the functions transferred by this Act,
18the same shall be made, given, furnished, or served in the same
19manner to or upon the Department.
20 (d) This Act shall not affect any act done, ratified, or
21canceled or any right occurring or established or any action
22or proceeding had or commenced in an administrative, civil, or
23criminal cause regarding the functions of any of the
24consolidating agencies before this Act takes effect; such
25actions or proceedings may be prosecuted and continued by the
26Department.

SB2254- 7 -LRB102 15486 SMS 20849 b
1 (e) Any rules of the consolidating agencies that relate to
2the functions, are in full force on the effective date of this
3Act and that have been duly adopted by the consolidating
4agencies shall become the rules of the Department. This Act
5shall not affect the legality of any such rules in the Illinois
6Administrative Code. Any proposed rules filed with the
7Secretary of State by the consolidating agencies that are
8pending in the rulemaking process on the effective date of
9this Act and pertain to the functions transferred, shall be
10deemed to have been filed by the Department. As soon as
11practicable hereafter, the Department shall revise and clarify
12the rules transferred to it under this Act to reflect the
13reorganization of rights, powers, and duties affected by this
14Act, using the procedures for recodification of rules
15available under the Illinois Administrative Procedure Act,
16except that existing title, part, and section numbering for
17the affected rules may be retained. The Department, consistent
18with the consolidating agencies' authority to do so, may
19propose and adopt under the Illinois Administrative Procedure
20Act such other rules of the consolidating agencies that will
21now be administered by the Department. To the extent that,
22prior to the effective date of the transfers, the director or
23commissioner of a consolidating agency had been empowered to
24prescribe regulations or had other rulemaking authority with
25respect to transferred functions, such duties shall be
26exercised from and after the effective date of the transfers

SB2254- 8 -LRB102 15486 SMS 20849 b
1by the director responsible for the oversight of those
2respective functions.
3 (f) Any references to the Department of the Lottery, the
4Illinois Racing Board, and the Illinois Gaming Board shall be
5construed as references to the Department of Lottery and
6Gaming.
7 Section 100. The Departments of State Government Law of
8the Civil Administrative Code of Illinois is amended by
9changing Sections 5-15 and 5-20 as follows:
10 (20 ILCS 5/5-15) (was 20 ILCS 5/3)
11 Sec. 5-15. Departments of State government. The
12Departments of State government are created as follows:
13 The Department on Aging.
14 The Department of Agriculture.
15 The Department of Central Management Services.
16 The Department of Children and Family Services.
17 The Department of Commerce and Economic Opportunity.
18 The Department of Corrections.
19 The Department of Employment Security.
20 The Illinois Emergency Management Agency.
21 The Department of Financial and Professional Regulation.
22 The Department of Healthcare and Family Services.
23 The Department of Human Rights.
24 The Department of Human Services.

SB2254- 9 -LRB102 15486 SMS 20849 b
1 The Department of Innovation and Technology.
2 The Department of Insurance.
3 The Department of Juvenile Justice.
4 The Department of Labor.
5 The Department of Lottery and Gaming the Lottery.
6 The Department of Natural Resources.
7 The Department of Public Health.
8 The Department of Revenue.
9 The Department of State Police.
10 The Department of Transportation.
11 The Department of Veterans' Affairs.
12(Source: P.A. 100-611, eff. 7-20-18; 100-1179, eff. 1-18-19.)
13 (20 ILCS 5/5-20) (was 20 ILCS 5/4)
14 Sec. 5-20. Heads of departments. Each department shall
15have an officer as its head who shall be known as director or
16secretary and who shall, subject to the provisions of the
17Civil Administrative Code of Illinois, execute the powers and
18discharge the duties vested by law in his or her respective
19department.
20 The following officers are hereby created:
21 Director of Aging, for the Department on Aging.
22 Director of Agriculture, for the Department of
23Agriculture.
24 Director of Central Management Services, for the
25Department of Central Management Services.

SB2254- 10 -LRB102 15486 SMS 20849 b
1 Director of Children and Family Services, for the
2Department of Children and Family Services.
3 Director of Commerce and Economic Opportunity, for the
4Department of Commerce and Economic Opportunity.
5 Director of Corrections, for the Department of
6Corrections.
7 Director of the Illinois Emergency Management Agency, for
8the Illinois Emergency Management Agency.
9 Director of Employment Security, for the Department of
10Employment Security.
11 Secretary of Financial and Professional Regulation, for
12the Department of Financial and Professional Regulation.
13 Director of Healthcare and Family Services, for the
14Department of Healthcare and Family Services.
15 Director of Human Rights, for the Department of Human
16Rights.
17 Secretary of Human Services, for the Department of Human
18Services.
19 Secretary of Innovation and Technology, for the Department
20of Innovation and Technology.
21 Director of Insurance, for the Department of Insurance.
22 Director of Juvenile Justice, for the Department of
23Juvenile Justice.
24 Director of Labor, for the Department of Labor.
25 Director of the Lottery, for the Department of the
26Lottery.

SB2254- 11 -LRB102 15486 SMS 20849 b
1 Director of Natural Resources, for the Department of
2Natural Resources.
3 Director of Public Health, for the Department of Public
4Health.
5 Director of Revenue, for the Department of Revenue.
6 Director of State Police, for the Department of State
7Police.
8 Secretary of Transportation, for the Department of
9Transportation.
10 Director of Veterans' Affairs, for the Department of
11Veterans' Affairs.
12(Source: P.A. 100-611, eff. 7-20-18; 100-1179, eff. 1-18-19.)
13 (20 ILCS 5/5-372 rep.)
14 Section 102.The Departments of State Government Law of the
15Civil Administrative Code of Illinois is amended by repealing
16Section 5-372.
17 Section 105. The Illinois Lottery Law is amended by
18changing Sections 3, 4, 5, 5.1, 7.1, 7.2, 7.3, 7.4, 7.5, 7.8,
197.8a, 7.11, 7.12, 7.15, 7.16, 8, 9, 9.1, 10, 10.1, 10.1a, 10.2,
2010.3, 10.4, 10.5, 10.6, 10.7, 10.8, 12, 13, 13.1, 14, 14.3,
2114.4, 15, 19, 20.1, 21, 21.3, 21.5, 21.6, 21.7, 21.8, 21.9,
2221.10, 21.11, 21.12, 21.13, 24, and 25 as follows:
23 (20 ILCS 1605/3) (from Ch. 120, par. 1153)

SB2254- 12 -LRB102 15486 SMS 20849 b
1 Sec. 3. For the purposes of this Act:
2 a. "Lottery" or "State Lottery" means the lottery or
3lotteries established and operated pursuant to this Act.
4 b. (Blank) "Board" means the Lottery Control Board created
5by this Act.
6 c. "Department" means the Department of Lottery and Gaming
7the Lottery.
8 d. (Blank).
9 e. (Blank) "Chairman" means the Chairman of the Lottery
10Control Board.
11 f. "Multi-state game directors" means such persons,
12including the Director, as may be designated by an agreement
13between the Department and one or more additional lotteries
14operated under the laws of another state or states.
15 g. "Division" means the Division of Lottery of the
16Department of Lottery and Gaming (Blank).
17 h. "Director" means the Director of the Division of
18Lottery of the Department of Lottery and Gaming Department of
19the Lottery.
20 i. "Management agreement" means an agreement or contract
21between the Department on behalf of the State with a private
22manager, as an independent contractor, whereby the private
23manager provides management services to the Lottery in
24exchange for compensation that may consist of, among other
25things, a fee for services and a performance-based bonus of no
26more than 5% of Lottery profits so long as the Department

SB2254- 13 -LRB102 15486 SMS 20849 b
1continues to exercise actual control over all significant
2business decisions made by the private manager as set forth in
3Section 9.1.
4 j. "Person" means any individual, firm, association, joint
5venture, partnership, estate, trust, syndicate, fiduciary,
6corporation, or other legal entity, group, or combination.
7 k. "Private manager" means a person that provides
8management services to the Lottery on behalf of the Department
9under a management agreement.
10 l. "Profits" means total revenues accruing from the sale
11of lottery tickets or shares and related proceeds minus (1)
12the payment of prizes and retailer bonuses and (2) the payment
13of costs incurred in the operation and administration of the
14lottery, excluding costs of services directly rendered by a
15private manager.
16 m. "Chief Procurement Officer" means the Chief Procurement
17Officer provided for under paragraph (4) of subsection (a) of
18Section 10-20 of the Illinois Procurement Code.
19(Source: P.A. 97-464, eff. 8-19-11; 98-499, eff. 8-16-13.)
20 (20 ILCS 1605/4) (from Ch. 120, par. 1154)
21 Sec. 4. The Division of Lottery Department of the Lottery
22is established to implement and regulate the State Lottery in
23the manner provided in this Act.
24(Source: P.A. 97-464, eff. 10-15-11.)

SB2254- 14 -LRB102 15486 SMS 20849 b
1 (20 ILCS 1605/5) (from Ch. 120, par. 1155)
2 Sec. 5. (a) The Department shall be under the supervision
3and direction of a Director, who shall be appointed as
4provided in the Department of Lottery and Gaming Act a person
5qualified by training and experience to perform the duties
6required by this Act. The Director shall be appointed by the
7Governor, by and with the advice and consent of the Senate. The
8term of office of the Director shall expire on the third Monday
9of January in odd numbered years provided that he or she shall
10hold office until a successor is appointed and qualified. For
11terms ending before December 31, 2019, the annual salary of
12the Director is $142,000. For terms beginning after the
13effective date of this amendatory Act of the 100th General
14Assembly, the annual salary of the Director shall be as
15provided in Section 5-300 of the Civil Administrative Code of
16Illinois.
17 Any vacancy occurring in the office of the Director shall
18be filled in the same manner as the original appointment. In
19case of a vacancy during the recess of the Senate, the Governor
20shall make a temporary appointment until the next meeting of
21the Senate, when the Governor shall nominate some person to
22fill the office, and any person so nominated who is confirmed
23by the Senate shall hold office during the remainder of the
24term and until his or her successor is appointed and
25qualified.
26 During the absence or inability to act of the Director, or

SB2254- 15 -LRB102 15486 SMS 20849 b
1in the case of a vacancy in the office of Director until a
2successor is appointed and qualified, the Governor may
3designate some person as Acting Director of the Lottery to
4execute the powers and discharge the duties vested by law in
5that office. A person who is designated as an Acting Director
6shall not continue in office for more than 60 calendar days
7unless the Governor files a message with the Secretary of the
8Senate nominating that person to fill the office. After 60
9calendar days, the office is considered vacant and shall be
10filled only under this Section. No person who has been
11appointed by the Governor to serve as Acting Director shall,
12except at the Senate's request, be designated again as an
13Acting Director at the same session of that Senate, subject to
14the provisions of this Section. A person appointed as an
15Acting Director is not required to meet the requirements of
16paragraph (1) of subsection (b) of this Section. In no case may
17the Governor designate a person to serve as Acting Director if
18that person has prior to the effective date of this amendatory
19Act of the 97th General Assembly exercised any of the duties
20and functions of the office of Director without having been
21nominated by the Governor to serve as Director.
22 (b) (Blank). The Director shall devote his or her entire
23time and attention to the duties of the office and shall not be
24engaged in any other profession or occupation.
25 The Director shall:
26 (1) be qualified by training and experience to direct

SB2254- 16 -LRB102 15486 SMS 20849 b
1 a lottery, including, at a minimum, 5 years of senior
2 executive-level experience in the successful advertising,
3 marketing, and selling of consumer products, 4 years of
4 successful experience directing a lottery on behalf of a
5 governmental entity, or 5 years of successful senior-level
6 management experience at a lottery on behalf of a
7 governmental entity;
8 (2) have significant and meaningful management and
9 regulatory experience; and
10 (3) have a good reputation, particularly as a person
11 of honesty, independence, and integrity.
12 The Director shall not during his or her term of
13appointment: become a candidate for any elective office; hold
14any other elected or appointed public office; be actively
15involved in the affairs of any political party or political
16organization; advocate for the appointment of another person
17to an appointed or elected office or position; or actively
18participate in any campaign for any elective office. The
19Director may be appointed to serve on a governmental advisory
20or board study commission or as otherwise expressly authorized
21by law.
22 (c) (Blank). No person shall perform the duties and
23functions of the Director, or otherwise exercise the authority
24of the Director, unless the same shall have been appointed by
25the Governor pursuant to this Section.
26(Source: P.A. 100-1179, eff. 1-18-19.)

SB2254- 17 -LRB102 15486 SMS 20849 b
1 (20 ILCS 1605/5.1)
2 Sec. 5.1. E.J. "Zeke" Giorgi Lottery Building. The
3building occupied by the Division Department from time to time
4as its main office in Springfield shall be known as the E.J.
5"Zeke" Giorgi Lottery Building.
6(Source: P.A. 88-676, eff. 12-14-94.)
7 (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
8 Sec. 7.1. The Division Department shall promulgate such
9rules and regulations governing the establishment and
10operation of a State lottery as it deems necessary to carry out
11the purposes of this Act. Such rules and regulations shall be
12subject to the provisions of The Illinois Administrative
13Procedure Act. The Division Department shall issue written
14game rules, play instructions, directives, operations manuals,
15brochures, or any other publications necessary to conduct
16specific games, as authorized by rule by the Division
17Department. Any written game rules, play instructions,
18directives, operations manuals, brochures, or other game
19publications issued by the Division Department that relate to
20a specific lottery game shall be maintained as a public record
21in the Division's Department's principal office, and made
22available for public inspection and copying but shall be
23exempt from the rulemaking procedures of the Illinois
24Administrative Procedure Act. However, when such written

SB2254- 18 -LRB102 15486 SMS 20849 b
1materials contain any policy of general applicability, the
2Division Department shall formulate and adopt such policy as a
3rule in accordance with the provisions of the Illinois
4Administrative Procedure Act. In addition, the Division
5Department shall publish each January in the Illinois Register
6a list of all game-specific rules, play instructions,
7directives, operations manuals, brochures, or other
8game-specific publications issued by the Division Department
9during the previous year and instructions concerning how the
10public may obtain copies of these materials from the Division
11Department.
12(Source: P.A. 97-464, eff. 10-15-11.)
13 (20 ILCS 1605/7.2) (from Ch. 120, par. 1157.2)
14 Sec. 7.2. The rules and regulations of the Division
15Department may include, but shall not be limited to, the
16following:
17 (1) The types of lotteries to be conducted;
18 (2) The price, or prices, of tickets or shares in the
19 lottery;
20 (3) The numbers and sizes of the prizes on the winning
21 tickets or shares;
22 (4) The manner of selecting the winning tickets or
23 shares;
24 (5) The manner of payment of prizes to the holders of
25 winning tickets or shares;

SB2254- 19 -LRB102 15486 SMS 20849 b
1 (6) The frequency of the drawing or selections of
2 winning tickets or shares, without limitation;
3 (7) Without limit to number, the type or types of
4 locations at which tickets or shares may be sold;
5 (8) The method to be used in selling tickets or
6 shares;
7 (9) The manner and amount of compensation, if any, to
8 be paid licensed sales agents necessary to provide for the
9 adequate availability of tickets or shares to prospective
10 buyers and for the convenience of the public;
11 (10) The apportionment of the total revenues accruing
12 from the sale of lottery tickets or shares and from all
13 other sources among (i) the payment of prizes to the
14 holders of winning tickets or shares, (ii) the payment of
15 costs incurred in the operation and administration of the
16 lottery, including the expenses of the Division Department
17 and the costs resulting from any contract or contracts
18 entered into for promotional, advertising or operational
19 services or for the purchase or lease of lottery equipment
20 and materials, and (iii) for monthly transfers to the
21 Common School Fund. The net revenues accruing from the
22 sale of lottery tickets shall be determined by deducting
23 from total revenues the payments required by paragraphs
24 (i) and (ii) of this subsection.
25 (11) Such other matters necessary or desirable for the
26 efficient and economical operation and administration of

SB2254- 20 -LRB102 15486 SMS 20849 b
1 the lottery and for the convenience of the purchasers of
2 tickets or shares and the holders of winning tickets or
3 shares.
4(Source: P.A. 99-933, eff. 1-27-17.)
5 (20 ILCS 1605/7.3) (from Ch. 120, par. 1157.3)
6 Sec. 7.3. The Division Board shall designate Hearing
7Officers who shall conduct hearings upon complaints charging
8violations of this Act or of regulations thereunder, and such
9other hearings as may be provided by Division Department rule.
10The Director or his or her designee Board may hear appeals from
11the recommended decisions of its Hearing Officers in
12accordance with procedures established by Division Department
13rule. Whenever the Division Department issues a Notice of
14Assessment under Section 21 of this Act, the lottery sales
15agent may protest such Notice by filing a request for hearing
16within 20 days of the date of such Notice.
17(Source: P.A. 85-1224; 86-1475.)
18 (20 ILCS 1605/7.4) (from Ch. 120, par. 1157.4)
19 Sec. 7.4. The Division Department shall carry on a
20continuous study and investigation of the lottery throughout
21the State (1) for the purpose of ascertaining any defects in
22this Act or in the rules and regulations issued under this Act
23whereby any abuses in the administration and operation of the
24lottery or any evasion of this Act or the rules and regulations

SB2254- 21 -LRB102 15486 SMS 20849 b
1may arise or be practiced, (2) for the purpose of formulating
2recommendations for changes in this Act and the rules and
3regulations promulgated hereunder to prevent such abuses and
4evasions, (3) to guard against the use of this Act and the
5rules and regulations issued hereunder as a cloak for the
6carrying on of organized gambling and crime, and (4) to insure
7that the law and rules and regulations shall be in such form
8and be so administered as to serve the true purposes of this
9Act.
10(Source: P.A. 84-1128.)
11 (20 ILCS 1605/7.5) (from Ch. 120, par. 1157.5)
12 Sec. 7.5. The Division Board shall report to the Governor,
13the Attorney General, the Speaker of the House, the President
14of the Senate, the minority leaders of both houses, and such
15other State officers as from time to time it deems
16appropriate, any matters which it deems to require an
17immediate change in the laws of this State in order to prevent
18abuses and evasions of this Act or rules and regulations
19promulgated thereunder or to rectify undesirable conditions in
20connection with the administration or operation of the
21lottery.
22(Source: P.A. 84-1128.)
23 (20 ILCS 1605/7.8) (from Ch. 120, par. 1157.8)
24 Sec. 7.8. The Division Department shall make an annual

SB2254- 22 -LRB102 15486 SMS 20849 b
1report regarding the work of the Division Board to the
2Governor, the Speaker of the House, the President of the
3Senate, and the minority leaders of both houses, such report
4to be a public report.
5(Source: P.A. 84-1128.)
6 (20 ILCS 1605/7.8a) (from Ch. 120, par. 1157.8a)
7 Sec. 7.8a. The Division Board shall establish advertising
8policy to ensure that advertising content and practices do not
9target with the intent to exploit specific groups or economic
10classes of people, and that its content is accurate and not
11misleading. The Division Boardd shall review, at least
12quarterly, all past advertising for major media campaigns to
13ensure that they do not target with the intent to exploit
14specific groups or economic classes of people, and that their
15content is accurate and not misleading. If the Division Board
16finds that advertising conflicts with such policy, it shall
17have the authority to direct the Division Departmentto cease
18that advertising. The Director or his or her designee shall
19provide a briefing on proposed major media campaigns at any
20regularly scheduled meeting upon written request from any
21Board member. Such written request must be received by the
22Director at least 10 days prior to the regularly scheduled
23meeting.
24(Source: P.A. 98-499, eff. 8-16-13.)

SB2254- 23 -LRB102 15486 SMS 20849 b
1 (20 ILCS 1605/7.11) (from Ch. 120, par. 1157.11)
2 Sec. 7.11. The Division Department may establish and
3collect nominal charges for promotional products ("premiums")
4and other promotional materials produced or acquired by the
5Division Department as part of its advertising and promotion
6activities. Such premiums or other promotional materials may
7be sold to individuals, government agencies and not-for-profit
8organizations, but not to for-profit enterprises for the
9purpose of resale. Other State agencies shall be charged no
10more than the cost to the Division Department of the premium or
11promotional material. All proceeds from the sale of premiums
12or promotional materials shall be deposited in the State
13Lottery Fund in the State Treasury.
14(Source: P.A. 97-464, eff. 10-15-11.)
15 (20 ILCS 1605/7.12)
16 (Section scheduled to be repealed on July 1, 2022)
17 Sec. 7.12. Internet program.
18 (a) The General Assembly finds that:
19 (1) the consumer market in Illinois has changed since
20 the creation of the Illinois State Lottery in 1974;
21 (2) the Internet has become an integral part of
22 everyday life for a significant number of Illinois
23 residents not only in regards to their professional life,
24 but also in regards to personal business and
25 communication; and

SB2254- 24 -LRB102 15486 SMS 20849 b
1 (3) the current practices of selling lottery tickets
2 does not appeal to the new form of market participants who
3 prefer to make purchases on the Internet at their own
4 convenience.
5 It is the intent of the General Assembly to create an
6Internet program for the sale of lottery tickets to capture
7this new form of market participant.
8 (b) The Division Department shall create a program that
9allows an individual 18 years of age or older to purchase
10lottery tickets or shares on the Internet without using a
11Lottery retailer with on-line status, as those terms are
12defined by rule. The Division Department shall restrict the
13sale of lottery tickets on the Internet to transactions
14initiated and received or otherwise made exclusively within
15the State of Illinois. The Division Department shall adopt
16rules necessary for the administration of this program. These
17rules shall include, among other things, requirements for
18marketing of the Lottery to infrequent players, as well as
19limitations on the purchases that may be made through any one
20individual's lottery account. The provisions of this Act and
21the rules adopted under this Act shall apply to the sale of
22lottery tickets or shares under this program.
23 The Division Department is obligated to implement the
24program set forth in this Section and Sections 7.15 and 7.16.
25The Division Department may offer Lotto, Lucky Day Lotto, Mega
26Millions, Powerball, Pick 3, Pick 4, and other draw games that

SB2254- 25 -LRB102 15486 SMS 20849 b
1are offered at retail locations through the Internet program.
2The private manager shall obtain the Director's approval
3before providing any draw games. Any draw game tickets that
4are approved for sale by lottery licensees are automatically
5approved for sale through the Internet program. The Division
6Department shall maintain responsible gaming controls in its
7policies.
8 The Division Department shall authorize the private
9manager to implement and administer the program pursuant to
10the management agreement entered into under Section 9.1 and in
11a manner consistent with the provisions of this Section. If a
12private manager has not been selected pursuant to Section 9.1
13at the time the Division Department is obligated to implement
14the program, then the Division Department shall not proceed
15with the program until after the selection of the private
16manager, at which time the Division Department shall authorize
17the private manager to implement and administer the program
18pursuant to the management agreement entered into under
19Section 9.1 and in a manner consistent with the provisions of
20this Section.
21 Nothing in this Section shall be construed as prohibiting
22the Division Department from implementing and operating a
23website portal whereby individuals who are 18 years of age or
24older with an Illinois mailing address may apply to purchase
25lottery tickets via subscription. Nothing in this Section
26shall also be construed as prohibiting the Lottery draw game

SB2254- 26 -LRB102 15486 SMS 20849 b
1tickets authorized for sale through the Internet program under
2this Section from also continuing to be sold at retail
3locations by a lottery licensee pursuant to the Division's
4Department's rules.
5 (c) (Blank).
6 (d) This Section is repealed on July 1, 2022.
7(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
8101-35, eff. 6-28-19.)
9 (20 ILCS 1605/7.15)
10 Sec. 7.15. Verification for Internet program; security for
11Internet lottery accounts. The Division Department must
12establish a procedure to verify that an individual is 18 years
13of age or older and that the sale of lottery tickets on the
14Internet is limited to transactions that are initiated and
15received or otherwise made exclusively within the State of
16Illinois, unless the federal Department of Justice indicates
17that it is legal for the transactions to originate in states
18other than Illinois. An individual must satisfy the
19verification procedure before he or she may establish one
20Internet lottery account and purchase lottery tickets or
21shares through the Internet pilot program. By rule, the
22Division Department shall establish funding procedures for
23Internet lottery accounts and shall provide a mechanism to
24prevent the unauthorized use of Internet lottery accounts. If
25any participant in the pilot program violates any provisions

SB2254- 27 -LRB102 15486 SMS 20849 b
1of this amendatory Act of the 96th General Assembly or rule
2established by the Division Department, the participant's
3winnings shall be forfeited. Such forfeited winnings shall be
4deposited in the Common School Fund.
5(Source: P.A. 96-34, eff. 7-13-09; 96-840, eff. 12-23-09.)
6 (20 ILCS 1605/7.16)
7 Sec. 7.16. Voluntary self-exclusion program for Internet
8lottery sales. Any resident, or non-resident if allowed to
9participate in the pilot program, may voluntarily prohibit
10themselves from establishing an Internet lottery account. The
11Division Department shall incorporate the voluntary
12self-exclusion program for Internet lottery accounts into any
13existing self-exclusion program that it operates on the
14effective date of this amendatory Act of the 96th General
15Assembly.
16(Source: P.A. 96-34, eff. 7-13-09.)
17 (20 ILCS 1605/8) (from Ch. 120, par. 1158)
18 Sec. 8. In connection with any hearing held pursuant to
19Section 7.3 of this Act, the Director or his or her designee
20Board, or any Hearing Officer appointed by the Director Board,
21may subpoena and compel the appearance of witnesses and
22production of documents, papers, books, records and other
23evidence before it in any matter over which it has
24jurisdiction, control or supervision. The Director or his or

SB2254- 28 -LRB102 15486 SMS 20849 b
1her designee Board, or any appointed Hearing Officer, shall
2have the power to administer oaths and affirmations to persons
3whose testimony is required. If a person subpoenaed to attend
4in any such proceeding or hearing fails to obey the command of
5the subpoena without reasonable cause, or if a person in
6attendance in any such proceeding or hearing refuses, without
7lawful cause, to be examined or to answer a legal or pertinent
8question or to exhibit any books, account, record or other
9document when ordered so to do by the Director or any Board or
10its Hearing Officer, the Director Board or Hearing Officer may
11apply to the circuit court, upon proof by affidavit of the
12facts, for an order returnable in not less than 2 nor more than
1310 days, or as the court may prescribe, directing such person
14to show cause before the court why he or she should not comply
15with such subpoena or such order.
16 Upon return of the order, the court shall examine such
17person under oath, and if the court determines, after giving
18such person an opportunity to be heard, that he or she refused
19without legal excuse to comply with such subpoena or such
20order of the Director Board or Hearing Officer, the court may
21order such person to comply therewith immediately and any
22failure to obey the order of the court may be punished as a
23contempt of court.
24 All subpoenas and subpoenas duces tecum issued under the
25provisions of this Act may be served by any person of lawful
26age. The fees of witnesses for attendance and travel shall be

SB2254- 29 -LRB102 15486 SMS 20849 b
1the same as the fees of witnesses before the circuit courts of
2this State. When the witness is subpoenaed at the instance of
3the Division Department or any officer or employee thereof,
4such fees shall be paid in the same manner as other expenses of
5the Division Department. When the witness is subpoenaed at the
6instance of any other party to any such proceeding, the
7Division Department may require that the cost of service of
8the subpoena or subpoena duces tecum and the fee of the witness
9be borne by the party at whose instance the witness is
10summoned. In such case, and on motion of the Division
11Department, the Director or any Board or its Hearing Officer
12may require a deposit to cover the cost of such service and
13witness fees.
14 The Division Department, or any officer or employee
15thereof, or any other party to a hearing before the Director or
16any Board or its Hearing Officers, may cause the depositions
17of witnesses within the State to be taken in the manner
18prescribed by law for like depositions in civil actions in
19courts of this State, and to that end compel the attendance of
20witnesses and the production of books, papers, records or
21memoranda.
22(Source: P.A. 85-1224.)
23 (20 ILCS 1605/9) (from Ch. 120, par. 1159)
24 Sec. 9. The Director, as administrative head of the
25Division Department, shall direct and supervise all its

SB2254- 30 -LRB102 15486 SMS 20849 b
1administrative and technical activities. In addition to the
2duties imposed upon him elsewhere in this Act, it shall be the
3Director's duty:
4 a. To supervise and administer the operation of the
5 lottery in accordance with the provisions of this Act or
6 such rules and regulations of the Department adopted
7 thereunder.
8 b. (Blank) To attend meetings of the Board or to
9 appoint a designee to attend in his stead.
10 c. To employ and direct such personnel in accord with
11 the Personnel Code, as may be necessary to carry out the
12 purposes of this Act. In addition, the Director may by
13 agreement secure such services as he or she may deem
14 necessary from any other department, agency, or unit of
15 the State government, and may employ and compensate such
16 consultants and technical assistants as may be required
17 and is otherwise permitted by law.
18 d. To license, in accordance with the provisions of
19 Sections 10 and 10.1 of this Act and the rules and
20 regulations of the Division Department adopted thereunder,
21 as agents to sell lottery tickets such persons as in his
22 opinion will best serve the public convenience and promote
23 the sale of tickets or shares. The Director may require a
24 bond from every licensed agent, in such amount as provided
25 in the rules and regulations of the Division Department.
26 Every licensed agent shall prominently display his

SB2254- 31 -LRB102 15486 SMS 20849 b
1 license, or a copy thereof, as provided in the rules and
2 regulations of the Division Department.
3 e. To suspend or revoke any license issued pursuant to
4 this Act or the rules and regulations promulgated by the
5 Division Department thereunder.
6 f. (Blank) To confer regularly as necessary or
7 desirable and not less than once every month with the
8 Lottery Control Board on the operation and administration
9 of the Lottery; to make available for inspection by the
10 Board or any member of the Board, upon request, all books,
11 records, files, and other information and documents of his
12 office; to advise the Board and recommend such rules and
13 regulations and such other matters as he deems necessary
14 and advisable to improve the operation and administration
15 of the lottery.
16 g. To enter into contracts for the operation of the
17 lottery, or any part thereof, and into contracts for the
18 promotion of the lottery on behalf of the Division
19 Department with any person, firm or corporation, to
20 perform any of the functions provided for in this Act or
21 the rules and regulations promulgated thereunder. The
22 Division Department shall not expend State funds on a
23 contractual basis for such functions unless those
24 functions and expenditures are expressly authorized by the
25 General Assembly.
26 h. To enter into an agreement or agreements with the

SB2254- 32 -LRB102 15486 SMS 20849 b
1 management of state lotteries operated pursuant to the
2 laws of other states for the purpose of creating and
3 operating a multi-state lottery game wherein a separate
4 and distinct prize pool would be combined to award larger
5 prizes to the public than could be offered by the several
6 state lotteries, individually. No tickets or shares
7 offered in connection with a multi-state lottery game
8 shall be sold within the State of Illinois, except those
9 offered by and through the Division Department. No such
10 agreement shall purport to pledge the full faith and
11 credit of the State of Illinois, nor shall the Division
12 Department expend State funds on a contractual basis in
13 connection with any such game unless such expenditures are
14 expressly authorized by the General Assembly, provided,
15 however, that in the event of error or omission by the
16 Illinois State Lottery in the conduct of the game, as
17 determined by the multi-state game directors, the Division
18 Department shall be authorized to pay a prize winner or
19 winners the lesser of a disputed prize or $1,000,000, any
20 such payment to be made solely from funds appropriated for
21 game prize purposes. The Division Department shall be
22 authorized to share in the ordinary operating expenses of
23 any such multi-state lottery game, from funds appropriated
24 by the General Assembly, and in the event the multi-state
25 game control offices are physically located within the
26 State of Illinois, the Division Department is authorized

SB2254- 33 -LRB102 15486 SMS 20849 b
1 to advance start-up operating costs not to exceed
2 $150,000, subject to proportionate reimbursement of such
3 costs by the other participating state lotteries. The
4 Division Department shall be authorized to share
5 proportionately in the costs of establishing a liability
6 reserve fund from funds appropriated by the General
7 Assembly. The Division Department is authorized to
8 transfer prize award funds attributable to Illinois sales
9 of multi-state lottery game tickets to the multi-state
10 control office, or its designated depository, for deposit
11 to such game pool account or accounts as may be
12 established by the multi-state game directors, the records
13 of which account or accounts shall be available at all
14 times for inspection in an audit by the Auditor General of
15 Illinois and any other auditors pursuant to the laws of
16 the State of Illinois. No multi-state game prize awarded
17 to a nonresident of Illinois, with respect to a ticket or
18 share purchased in a state other than the State of
19 Illinois, shall be deemed to be a prize awarded under this
20 Act for the purpose of taxation under the Illinois Income
21 Tax Act. The Division Department shall promulgate such
22 rules as may be appropriate to implement the provisions of
23 this Section.
24 i. To make a continuous study and investigation of (1)
25 the operation and the administration of similar laws which
26 may be in effect in other states or countries, (2) any

SB2254- 34 -LRB102 15486 SMS 20849 b
1 literature on the subject which from time to time may be
2 published or available, (3) any Federal laws which may
3 affect the operation of the lottery, and (4) the reaction
4 of Illinois citizens to existing and potential features of
5 the lottery with a view to recommending or effecting
6 changes that will tend to serve the purposes of this Act.
7 j. To report monthly to the State Treasurer and the
8 Lottery Control Board a full and complete statement of
9 lottery revenues, prize disbursements and other expenses
10 for each month and the amounts to be transferred to the
11 Common School Fund pursuant to Section 7.2, and to make an
12 annual report, which shall include a full and complete
13 statement of lottery revenues, prize disbursements and
14 other expenses, to the Governor and the Board. All reports
15 required by this subsection shall be public and copies of
16 all such reports shall be sent to the Speaker of the House,
17 the President of the Senate, and the minority leaders of
18 both houses.
19 k. To keep the name and municipality of residence of
20 the prize winner of a prize of $250,000 or greater
21 confidential upon the prize winner making a written
22 request that his or her name and municipality of residence
23 be kept confidential. The prize winner must submit his or
24 her written request at the time of claiming the prize. The
25 written request shall be in the form established by the
26 Division Department. Nothing in this paragraph k

SB2254- 35 -LRB102 15486 SMS 20849 b
1 supersedes the Division's Department's duty to disclose
2 the name and municipality of residence of a prize winner
3 of a prize of $250,000 or greater pursuant to the Freedom
4 of Information Act.
5(Source: P.A. 99-933, eff. 1-27-17; 100-1068, eff. 8-24-18.)
6 (20 ILCS 1605/9.1)
7 Sec. 9.1. Private manager and management agreement.
8 (a) As used in this Section:
9 "Offeror" means a person or group of persons that responds
10to a request for qualifications under this Section.
11 "Request for qualifications" means all materials and
12documents prepared by the Division Department to solicit the
13following from offerors:
14 (1) Statements of qualifications.
15 (2) Proposals to enter into a management agreement,
16 including the identity of any prospective vendor or
17 vendors that the offeror intends to initially engage to
18 assist the offeror in performing its obligations under the
19 management agreement.
20 "Final offer" means the last proposal submitted by an
21offeror in response to the request for qualifications,
22including the identity of any prospective vendor or vendors
23that the offeror intends to initially engage to assist the
24offeror in performing its obligations under the management
25agreement.

SB2254- 36 -LRB102 15486 SMS 20849 b
1 "Final offeror" means the offeror ultimately selected by
2the Governor to be the private manager for the Lottery under
3subsection (h) of this Section.
4 (b) By September 15, 2010, the Governor shall select a
5private manager for the total management of the Lottery with
6integrated functions, such as lottery game design, supply of
7goods and services, and advertising and as specified in this
8Section.
9 (c) Pursuant to the terms of this subsection, the Division
10Department shall endeavor to expeditiously terminate the
11existing contracts in support of the Lottery in effect on July
1213, 2009 (the effective date of Public Act 96-37) this
13amendatory Act of the 96th General Assembly in connection with
14the selection of the private manager. As part of its
15obligation to terminate these contracts and select the private
16manager, the Division Department shall establish a mutually
17agreeable timetable to transfer the functions of existing
18contractors to the private manager so that existing Lottery
19operations are not materially diminished or impaired during
20the transition. To that end, the Division Department shall do
21the following:
22 (1) where such contracts contain a provision
23 authorizing termination upon notice, the Division
24 Department shall provide notice of termination to occur
25 upon the mutually agreed timetable for transfer of
26 functions;

SB2254- 37 -LRB102 15486 SMS 20849 b
1 (2) upon the expiration of any initial term or renewal
2 term of the current Lottery contracts, the Division
3 Department shall not renew such contract for a term
4 extending beyond the mutually agreed timetable for
5 transfer of functions; or
6 (3) in the event any current contract provides for
7 termination of that contract upon the implementation of a
8 contract with the private manager, the Division Department
9 shall perform all necessary actions to terminate the
10 contract on the date that coincides with the mutually
11 agreed timetable for transfer of functions.
12 If the contracts to support the current operation of the
13Lottery in effect on July 13, 2009 (the effective date of
14Public Act 96-34) this amendatory Act of the 96th General
15Assembly are not subject to termination as provided for in
16this subsection (c), then the Division Department may include
17a provision in the contract with the private manager
18specifying a mutually agreeable methodology for incorporation.
19 (c-5) The Division Department shall include provisions in
20the management agreement whereby the private manager shall,
21for a fee, and pursuant to a contract negotiated with the
22Division Department (the "Employee Use Contract"), utilize the
23services of current Division Department employees to assist in
24the administration and operation of the Lottery. The Division
25Department shall be the employer of all such bargaining unit
26employees assigned to perform such work for the private

SB2254- 38 -LRB102 15486 SMS 20849 b
1manager, and such employees shall be State employees, as
2defined by the Personnel Code. Division Department employees
3shall operate under the same employment policies, rules,
4regulations, and procedures, as other employees of the
5Division Department. In addition, neither historical
6representation rights under the Illinois Public Labor
7Relations Act, nor existing collective bargaining agreements,
8shall be disturbed by the management agreement with the
9private manager for the management of the Lottery.
10 (d) The management agreement with the private manager
11shall include all of the following:
12 (1) A term not to exceed 10 years, including any
13 renewals.
14 (2) A provision specifying that the Division
15 Department:
16 (A) shall exercise actual control over all
17 significant business decisions;
18 (A-5) has the authority to direct or countermand
19 operating decisions by the private manager at any
20 time;
21 (B) has ready access at any time to information
22 regarding Lottery operations;
23 (C) has the right to demand and receive
24 information from the private manager concerning any
25 aspect of the Lottery operations at any time; and
26 (D) retains ownership of all trade names,

SB2254- 39 -LRB102 15486 SMS 20849 b
1 trademarks, and intellectual property associated with
2 the Lottery.
3 (3) A provision imposing an affirmative duty on the
4 private manager to provide the Division Department with
5 material information and with any information the private
6 manager reasonably believes the Division Department would
7 want to know to enable the Division Department to conduct
8 the Lottery.
9 (4) A provision requiring the private manager to
10 provide the Division Department with advance notice of any
11 operating decision that bears significantly on the public
12 interest, including, but not limited to, decisions on the
13 kinds of games to be offered to the public and decisions
14 affecting the relative risk and reward of the games being
15 offered, so the Division Department has a reasonable
16 opportunity to evaluate and countermand that decision.
17 (5) A provision providing for compensation of the
18 private manager that may consist of, among other things, a
19 fee for services and a performance based bonus as
20 consideration for managing the Lottery, including terms
21 that may provide the private manager with an increase in
22 compensation if Lottery revenues grow by a specified
23 percentage in a given year.
24 (6) (Blank).
25 (7) A provision requiring the deposit of all Lottery
26 proceeds to be deposited into the State Lottery Fund

SB2254- 40 -LRB102 15486 SMS 20849 b
1 except as otherwise provided in Section 20 of this Act.
2 (8) A provision requiring the private manager to
3 locate its principal office within the State.
4 (8-5) A provision encouraging that at least 20% of the
5 cost of contracts entered into for goods and services by
6 the private manager in connection with its management of
7 the Lottery, other than contracts with sales agents or
8 technical advisors, be awarded to businesses that are a
9 minority-owned business, a women-owned business, or a
10 business owned by a person with disability, as those terms
11 are defined in the Business Enterprise for Minorities,
12 Women, and Persons with Disabilities Act.
13 (9) A requirement that so long as the private manager
14 complies with all the conditions of the agreement under
15 the oversight of the Division Department, the private
16 manager shall have the following duties and obligations
17 with respect to the management of the Lottery:
18 (A) The right to use equipment and other assets
19 used in the operation of the Lottery.
20 (B) The rights and obligations under contracts
21 with retailers and vendors.
22 (C) The implementation of a comprehensive security
23 program by the private manager.
24 (D) The implementation of a comprehensive system
25 of internal audits.
26 (E) The implementation of a program by the private

SB2254- 41 -LRB102 15486 SMS 20849 b
1 manager to curb compulsive gambling by persons playing
2 the Lottery.
3 (F) A system for determining (i) the type of
4 Lottery games, (ii) the method of selecting winning
5 tickets, (iii) the manner of payment of prizes to
6 holders of winning tickets, (iv) the frequency of
7 drawings of winning tickets, (v) the method to be used
8 in selling tickets, (vi) a system for verifying the
9 validity of tickets claimed to be winning tickets,
10 (vii) the basis upon which retailer commissions are
11 established by the manager, and (viii) minimum
12 payouts.
13 (10) A requirement that advertising and promotion must
14 be consistent with Section 7.8a of this Act.
15 (11) A requirement that the private manager market the
16 Lottery to those residents who are new, infrequent, or
17 lapsed players of the Lottery, especially those who are
18 most likely to make regular purchases on the Internet as
19 permitted by law.
20 (12) A code of ethics for the private manager's
21 officers and employees.
22 (13) A requirement that the Division Department
23 monitor and oversee the private manager's practices and
24 take action that the Division Department considers
25 appropriate to ensure that the private manager is in
26 compliance with the terms of the management agreement,

SB2254- 42 -LRB102 15486 SMS 20849 b
1 while allowing the manager, unless specifically prohibited
2 by law or the management agreement, to negotiate and sign
3 its own contracts with vendors.
4 (14) A provision requiring the private manager to
5 periodically file, at least on an annual basis,
6 appropriate financial statements in a form and manner
7 acceptable to the Division Department.
8 (15) Cash reserves requirements.
9 (16) Procedural requirements for obtaining the prior
10 approval of the Division Department when a management
11 agreement or an interest in a management agreement is
12 sold, assigned, transferred, or pledged as collateral to
13 secure financing.
14 (17) Grounds for the termination of the management
15 agreement by the Division Department or the private
16 manager.
17 (18) Procedures for amendment of the agreement.
18 (19) A provision requiring the private manager to
19 engage in an open and competitive bidding process for any
20 procurement having a cost in excess of $50,000 that is not
21 a part of the private manager's final offer. The process
22 shall favor the selection of a vendor deemed to have
23 submitted a proposal that provides the Lottery with the
24 best overall value. The process shall not be subject to
25 the provisions of the Illinois Procurement Code, unless
26 specifically required by the management agreement.

SB2254- 43 -LRB102 15486 SMS 20849 b
1 (20) The transition of rights and obligations,
2 including any associated equipment or other assets used in
3 the operation of the Lottery, from the manager to any
4 successor manager of the lottery, including the Division
5 Department, following the termination of or foreclosure
6 upon the management agreement.
7 (21) Right of use of copyrights, trademarks, and
8 service marks held by the Division Department in the name
9 of the State. The agreement must provide that any use of
10 them by the manager shall only be for the purpose of
11 fulfilling its obligations under the management agreement
12 during the term of the agreement.
13 (22) The disclosure of any information requested by
14 the Division Department to enable it to comply with the
15 reporting requirements and information requests provided
16 for under subsection (p) of this Section.
17 (e) Notwithstanding any other law to the contrary, the
18Division Department shall select a private manager through a
19competitive request for qualifications process consistent with
20Section 20-35 of the Illinois Procurement Code, which shall
21take into account:
22 (1) the offeror's ability to market the Lottery to
23 those residents who are new, infrequent, or lapsed players
24 of the Lottery, especially those who are most likely to
25 make regular purchases on the Internet;
26 (2) the offeror's ability to address the State's

SB2254- 44 -LRB102 15486 SMS 20849 b
1 concern with the social effects of gambling on those who
2 can least afford to do so;
3 (3) the offeror's ability to provide the most
4 successful management of the Lottery for the benefit of
5 the people of the State based on current and past business
6 practices or plans of the offeror; and
7 (4) the offeror's poor or inadequate past performance
8 in servicing, equipping, operating or managing a lottery
9 on behalf of Illinois, another State or foreign government
10 and attracting persons who are not currently regular
11 players of a lottery.
12 (f) The Division Department may retain the services of an
13advisor or advisors with significant experience in financial
14services or the management, operation, and procurement of
15goods, services, and equipment for a government-run lottery to
16assist in the preparation of the terms of the request for
17qualifications and selection of the private manager. Any
18prospective advisor seeking to provide services under this
19subsection (f) shall disclose any material business or
20financial relationship during the past 3 years with any
21potential offeror, or with a contractor or subcontractor
22presently providing goods, services, or equipment to the
23Division Department to support the Lottery. The Division
24Department shall evaluate the material business or financial
25relationship of each prospective advisor. The Division
26Department shall not select any prospective advisor with a

SB2254- 45 -LRB102 15486 SMS 20849 b
1substantial business or financial relationship that the
2Division Department deems to impair the objectivity of the
3services to be provided by the prospective advisor. During the
4course of the advisor's engagement by the Division Department,
5and for a period of one year thereafter, the advisor shall not
6enter into any business or financial relationship with any
7offeror or any vendor identified to assist an offeror in
8performing its obligations under the management agreement. Any
9advisor retained by the Division Department shall be
10disqualified from being an offeror. The Division Department
11shall not include terms in the request for qualifications that
12provide a material advantage whether directly or indirectly to
13any potential offeror, or any contractor or subcontractor
14presently providing goods, services, or equipment to the
15Division Department to support the Lottery, including terms
16contained in previous responses to requests for proposals or
17qualifications submitted to Illinois, another State or foreign
18government when those terms are uniquely associated with a
19particular potential offeror, contractor, or subcontractor.
20The request for proposals offered by the Division Department
21on December 22, 2008 as "LOT08GAMESYS" and reference number
22"22016176" is declared void.
23 (g) The Department shall select at least 2 offerors as
24finalists to potentially serve as the private manager no later
25than August 9, 2010. Upon making preliminary selections, the
26Department shall schedule a public hearing on the finalists'

SB2254- 46 -LRB102 15486 SMS 20849 b
1proposals and provide public notice of the hearing at least 7
2calendar days before the hearing. The notice must include all
3of the following:
4 (1) The date, time, and place of the hearing.
5 (2) The subject matter of the hearing.
6 (3) A brief description of the management agreement to
7 be awarded.
8 (4) The identity of the offerors that have been
9 selected as finalists to serve as the private manager.
10 (5) The address and telephone number of the
11 Department.
12 (h) At the public hearing, the Department shall (i)
13provide sufficient time for each finalist to present and
14explain its proposal to the Department and the Governor or the
15Governor's designee, including an opportunity to respond to
16questions posed by the Department, Governor, or designee and
17(ii) allow the public and non-selected offerors to comment on
18the presentations. The Governor or a designee shall attend the
19public hearing. After the public hearing, the Department shall
20have 14 calendar days to recommend to the Governor whether a
21management agreement should be entered into with a particular
22finalist. After reviewing the Department's recommendation, the
23Governor may accept or reject the Department's recommendation,
24and shall select a final offeror as the private manager by
25publication of a notice in the Illinois Procurement Bulletin
26on or before September 15, 2010. The Governor shall include in

SB2254- 47 -LRB102 15486 SMS 20849 b
1the notice a detailed explanation and the reasons why the
2final offeror is superior to other offerors and will provide
3management services in a manner that best achieves the
4objectives of this Section. The Governor shall also sign the
5management agreement with the private manager.
6 (i) Any action to contest the private manager selected by
7the Governor under this Section must be brought within 7
8calendar days after the publication of the notice of the
9designation of the private manager as provided in subsection
10(h) of this Section.
11 (j) The Lottery shall remain, for so long as a private
12manager manages the Lottery in accordance with provisions of
13this Act, a Lottery conducted by the State, and the State shall
14not be authorized to sell or transfer the Lottery to a third
15party.
16 (k) Any tangible personal property used exclusively in
17connection with the lottery that is owned by the Division
18Department and leased to the private manager shall be owned by
19the Division Department in the name of the State and shall be
20considered to be public property devoted to an essential
21public and governmental function.
22 (l) The Division Department may exercise any of its powers
23under this Section or any other law as necessary or desirable
24for the execution of the Division's Department's powers under
25this Section.
26 (m) Neither this Section nor any management agreement

SB2254- 48 -LRB102 15486 SMS 20849 b
1entered into under this Section prohibits the General Assembly
2from authorizing forms of gambling that are not in direct
3competition with the Lottery. The forms of gambling authorized
4by Public Act 101-31 this amendatory Act of the 101st General
5Assembly constitute authorized forms of gambling that are not
6in direct competition with the Lottery.
7 (n) The private manager shall be subject to a complete
8investigation in the third, seventh, and tenth years of the
9agreement (if the agreement is for a 10-year term) by the
10Division Department in cooperation with the Auditor General to
11determine whether the private manager has complied with this
12Section and the management agreement. The private manager
13shall bear the cost of an investigation or reinvestigation of
14the private manager under this subsection.
15 (o) The powers conferred by this Section are in addition
16and supplemental to the powers conferred by any other law. If
17any other law or rule is inconsistent with this Section,
18including, but not limited to, provisions of the Illinois
19Procurement Code, then this Section controls as to any
20management agreement entered into under this Section. This
21Section and any rules adopted under this Section contain full
22and complete authority for a management agreement between the
23Division Department and a private manager. No law, procedure,
24proceeding, publication, notice, consent, approval, order, or
25act by the Division Department or any other officer,
26Department, agency, or instrumentality of the State or any

SB2254- 49 -LRB102 15486 SMS 20849 b
1political subdivision is required for the Division Department
2to enter into a management agreement under this Section. This
3Section contains full and complete authority for the Division
4Department to approve any contracts entered into by a private
5manager with a vendor providing goods, services, or both goods
6and services to the private manager under the terms of the
7management agreement, including subcontractors of such
8vendors.
9 Upon receipt of a written request from the Chief
10Procurement Officer, the Division Department shall provide to
11the Chief Procurement Officer a complete and un-redacted copy
12of the management agreement or any contract that is subject to
13the Division's Department's approval authority under this
14subsection (o). The Division Department shall provide a copy
15of the agreement or contract to the Chief Procurement Officer
16in the time specified by the Chief Procurement Officer in his
17or her written request, but no later than 5 business days after
18the request is received by the Division Department. The Chief
19Procurement Officer must retain any portions of the management
20agreement or of any contract designated by the Division
21Department as confidential, proprietary, or trade secret
22information in complete confidence pursuant to subsection (g)
23of Section 7 of the Freedom of Information Act. The Division
24Department shall also provide the Chief Procurement Officer
25with reasonable advance written notice of any contract that is
26pending Division Department approval.

SB2254- 50 -LRB102 15486 SMS 20849 b
1 Notwithstanding any other provision of this Section to the
2contrary, the Chief Procurement Officer shall adopt
3administrative rules, including emergency rules, to establish
4a procurement process to select a successor private manager if
5a private management agreement has been terminated. The
6selection process shall at a minimum take into account the
7criteria set forth in items (1) through (4) of subsection (e)
8of this Section and may include provisions consistent with
9subsections (f), (g), (h), and (i) of this Section. The Chief
10Procurement Officer shall also implement and administer the
11adopted selection process upon the termination of a private
12management agreement. The Division Department, after the Chief
13Procurement Officer certifies that the procurement process has
14been followed in accordance with the rules adopted under this
15subsection (o), shall select a final offeror as the private
16manager and sign the management agreement with the private
17manager.
18 Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
1921.9, 21.10, 21.11, 21.12, and 21.13, the Division Department
20shall distribute all proceeds of lottery tickets and shares
21sold in the following priority and manner:
22 (1) The payment of prizes and retailer bonuses.
23 (2) The payment of costs incurred in the operation and
24 administration of the Lottery, including the payment of
25 sums due to the private manager under the management
26 agreement with the Division Department.

SB2254- 51 -LRB102 15486 SMS 20849 b
1 (3) On the last day of each month or as soon thereafter
2 as possible, the State Comptroller shall direct and the
3 State Treasurer shall transfer from the State Lottery Fund
4 to the Common School Fund an amount that is equal to the
5 proceeds transferred in the corresponding month of fiscal
6 year 2009, as adjusted for inflation, to the Common School
7 Fund.
8 (4) On or before September 30 of each fiscal year,
9 deposit any estimated remaining proceeds from the prior
10 fiscal year, subject to payments under items (1), (2), and
11 (3), into the Capital Projects Fund. Beginning in fiscal
12 year 2019, the amount deposited shall be increased or
13 decreased each year by the amount the estimated payment
14 differs from the amount determined from each year-end
15 financial audit. Only remaining net deficits from prior
16 fiscal years may reduce the requirement to deposit these
17 funds, as determined by the annual financial audit.
18 (p) The Division Department shall be subject to the
19following reporting and information request requirements:
20 (1) the Division Department shall submit written
21 quarterly reports to the Governor and the General Assembly
22 on the activities and actions of the private manager
23 selected under this Section;
24 (2) upon request of the Chief Procurement Officer, the
25 Division Department shall promptly produce information
26 related to the procurement activities of the Division

SB2254- 52 -LRB102 15486 SMS 20849 b
1 Department and the private manager requested by the Chief
2 Procurement Officer; the Chief Procurement Officer must
3 retain confidential, proprietary, or trade secret
4 information designated by the Division Department in
5 complete confidence pursuant to subsection (g) of Section
6 7 of the Freedom of Information Act; and
7 (3) at least 30 days prior to the beginning of the
8 Division's Department's fiscal year, the Division
9 Department shall prepare an annual written report on the
10 activities of the private manager selected under this
11 Section and deliver that report to the Governor and
12 General Assembly.
13(Source: P.A. 100-391, eff. 8-25-17; 100-587, eff. 6-4-18;
14100-647, eff. 7-30-18; 100-1068, eff. 8-24-18; 101-31, eff.
156-28-19; 101-81, eff. 7-12-19; 101-561, eff. 8-23-19; revised
1610-21-19.)
17 (20 ILCS 1605/10) (from Ch. 120, par. 1160)
18 Sec. 10. The Division Department, upon application
19therefor on forms prescribed by the Division Department, and
20upon a determination by the Division Department that the
21applicant meets all of the qualifications specified in this
22Act, shall issue a license as an agent to sell lottery tickets
23or shares. No license as an agent to sell lottery tickets or
24shares shall be issued to any person to engage in business
25exclusively as a lottery sales agent.

SB2254- 53 -LRB102 15486 SMS 20849 b
1 Before issuing such license the Director shall consider
2(a) the financial responsibility and security of the person
3and his business or activity, (b) the accessibility of his
4place of business or activity to the public, (c) the
5sufficiency of existing licenses to serve the public
6convenience, (d) the volume of expected sales, and (e) such
7other factors as he or she may deem appropriate.
8 Until September 1, 1987, the provisions of Sections 2a, 4,
95, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
1010, 12 and 13.5 of the Retailers' Occupation Tax Act which are
11not inconsistent with this Act shall apply to the subject
12matter of this Act to the same extent as if such provisions
13were included in this Act. For purposes of this Act,
14references in such incorporated Sections of the Retailers'
15Occupation Tax Act to retailers, sellers or persons engaged in
16the business of selling tangible personal property mean
17persons engaged in selling lottery tickets or shares;
18references in such incorporated Sections to sales of tangible
19personal property mean the selling of lottery tickets or
20shares; and references in such incorporated Sections to
21certificates of registration mean licenses issued under this
22Act. The provisions of the Retailers' Occupation Tax Act as
23heretofore applied to the subject matter of this Act shall not
24apply with respect to tickets sold by or delivered to lottery
25sales agents on and after September 1, 1987, but such
26provisions shall continue to apply with respect to

SB2254- 54 -LRB102 15486 SMS 20849 b
1transactions involving the sale and delivery of tickets prior
2to September 1, 1987.
3 All licenses issued by the Division Department under this
4Act shall be valid for a period not to exceed 2 years after
5issuance unless sooner revoked, canceled or suspended as in
6this Act provided. No license issued under this Act shall be
7transferable or assignable. Such license shall be
8conspicuously displayed in the place of business conducted by
9the licensee in Illinois where lottery tickets or shares are
10to be sold under such license.
11 For purposes of this Section, the term "person" shall be
12construed to mean and include an individual, association,
13partnership, corporation, club, trust, estate, society,
14company, joint stock company, receiver, trustee, referee, any
15other person acting in a fiduciary or representative capacity
16who is appointed by a court, or any combination of
17individuals. "Person" includes any department, commission,
18agency or instrumentality of the State, including any county,
19city, village, or township and any agency or instrumentality
20thereof.
21(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
22 (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
23 Sec. 10.1. The following are ineligible for any license
24under this Act:
25 (a) any person who has been convicted of a felony;

SB2254- 55 -LRB102 15486 SMS 20849 b
1 (b) any person who is or has been a professional
2 gambler or gambling promoter;
3 (c) any person who has engaged in bookmaking or other
4 forms of illegal gambling;
5 (d) any person who is not of good character and
6 reputation in the community in which he resides;
7 (e) any person who has been found guilty of any fraud
8 or misrepresentation in any connection;
9 (f) any firm or corporation in which a person defined
10 in (a), (b), (c), (d) or (e) has a proprietary, equitable
11 or credit interest of 5% or more.
12 (g) any organization in which a person defined in (a),
13 (b), (c), (d) or (e) is an officer, director, or managing
14 agent, whether compensated or not;
15 (h) any organization in which a person defined in (a),
16 (b), (c), (d), or (e) is to participate in the management
17 or sales of lottery tickets or shares.
18 However, with respect to persons defined in (a), the
19Division Department may grant any such person a license under
20this Act when:
21 1) at least 10 years have elapsed since the date when
22 the sentence for the most recent such conviction was
23 satisfactorily completed;
24 2) the applicant has no history of criminal activity
25 subsequent to such conviction;
26 3) the applicant has complied with all conditions of

SB2254- 56 -LRB102 15486 SMS 20849 b
1 probation, conditional discharge, supervision, parole or
2 mandatory supervised release; and
3 4) the applicant presents at least 3 letters of
4 recommendation from responsible citizens in his community
5 who personally can attest that the character and attitude
6 of the applicant indicate that he is unlikely to commit
7 another crime.
8 The Division Department may revoke, without notice or a
9hearing, the license of any agent who violates this Act or any
10rule or regulation promulgated pursuant to this Act. However,
11if the Division Department does revoke a license without
12notice and an opportunity for a hearing, the Division
13Department shall, by appropriate notice, afford the person
14whose license has been revoked an opportunity for a hearing
15within 30 days after the revocation order has been issued. As a
16result of any such hearing, the Division Department may
17confirm its action in revoking the license, or it may order the
18restoration of such license.
19(Source: P.A. 97-464, eff. 10-15-11.)
20 (20 ILCS 1605/10.1a) (from Ch. 120, par. 1160.1a)
21 Sec. 10.1a. In addition to other grounds specified in this
22Act, the Division Department shall refuse to issue and shall
23suspend the license of any lottery sales agency who fails to
24file a return, or to pay the tax, penalty or interest shown in
25a filed return, or to pay any final assessment of tax, penalty

SB2254- 57 -LRB102 15486 SMS 20849 b
1or interest, as required by any tax Act administered by the
2Department of Revenue, until such time as the requirements of
3any such tax Act are satisfied, unless the agency is
4contesting, in accordance with the procedures established by
5the appropriate revenue Act, its liability for the tax or the
6amount of tax. The Division Department shall affirmatively
7verify the tax status of every sales agency before issuing or
8renewing a license. For purposes of this Section, a sales
9agency shall not be considered delinquent in the payment of a
10tax if the agency (a) has entered into an agreement with the
11Department of Revenue for the payment of all such taxes that
12are due and (b) is in compliance with the agreement.
13(Source: P.A. 97-464, eff. 10-15-11.)
14 (20 ILCS 1605/10.2) (from Ch. 120, par. 1160.2)
15 Sec. 10.2. Application and other fees. Each application
16for a new lottery license must be accompanied by a one-time
17application fee of $50; the Division Department, however, may
18waive the fee for licenses of limited duration as provided by
19Division Department rule. Each application for renewal of a
20lottery license must be accompanied by a renewal fee of $25.
21Each lottery licensee granted on-line status pursuant to the
22Division's Department's rules must pay a fee of $10 per week as
23partial reimbursement for telecommunications charges incurred
24by the Division Department in providing access to the
25lottery's on-line gaming system. The Division Department, by

SB2254- 58 -LRB102 15486 SMS 20849 b
1rule, may increase or decrease the amount of these fees.
2(Source: P.A. 97-464, eff. 10-15-11.)
3 (20 ILCS 1605/10.3) (from Ch. 120, par. 1160.3)
4 Sec. 10.3. All proceeds from the sale of lottery tickets
5or shares received by a person in the capacity of a sales agent
6shall constitute a trust fund until paid to the Division
7Department either directly, or through the Division's
8Department's authorized collection representative. Proceeds
9shall include unsold instant tickets received by a sales agent
10and cash proceeds of sale of any lottery products, net of
11allowable sales commissions and credit for lottery prizes paid
12to winners by sales agents. Sales proceeds and unsold instant
13tickets shall be delivered to the Division Department or its
14authorized collection representative upon demand. Sales agents
15shall be personally liable for all proceeds which shall be
16kept separate and apart from all other funds and assets and
17shall not be commingled with any other funds or assets. In the
18case of a sales agent who is not an individual, personal
19liability shall attach to the owners and officers of the sales
20agent. The Division Department shall have a right to file a
21lien upon all real and personal property of any person who is
22personally liable under this Section for any unpaid proceeds,
23which were to be segregated as a trust fund under this Section,
24at any time after such payment was to have been made. Such lien
25shall include any interest and penalty provided for by this

SB2254- 59 -LRB102 15486 SMS 20849 b
1Act and shall be deemed equivalent to, and have the same effect
2as, the State tax lien under the Retailers' Occupation Tax
3Act. The term "person" as used in this Section, and in Section
410.4 of this Act, shall have the same meaning as provided in
5Section 10 of this Act. This Section, and Sections 10.4 and
610.5 of this Act shall apply with respect to all lottery
7tickets or shares generated by computer terminal, other
8electronic device, and any other tickets delivered to sales
9agents on and after September 1, 1987.
10(Source: P.A. 86-905.)
11 (20 ILCS 1605/10.4) (from Ch. 120, par. 1160.4)
12 Sec. 10.4. Every person who shall violate the provisions
13of Section 10.3, or who does not segregate and keep separate
14and apart from all other funds and assets, all proceeds from
15the sale of lottery tickets received by a person in the
16capacity of a sales agent, shall upon conviction thereof be
17guilty of a Class 4 felony. The provisions of this Section
18shall be enforced by the Illinois Department of State Police
19and prosecuted by the Attorney General.
20(Source: P.A. 85-183; 86-1475.)
21 (20 ILCS 1605/10.5) (from Ch. 120, par. 1160.5)
22 Sec. 10.5. Whenever any person who receives proceeds from
23the sale of lottery tickets in the capacity of sales agent
24becomes insolvent, or dies insolvent, the proceeds due the

SB2254- 60 -LRB102 15486 SMS 20849 b
1Division Department from such person or his estate shall have
2preference over all debts or demands, except as follows:
3 (a) Amounts due for necessary funeral expenses;
4 (b) Amounts due for medical care and medicine during his
5most recent illness preceding death;
6 (c) Debts due to the United States;
7 (d) Debts due to the State of Illinois and all State and
8local taxes; and
9 (e) Wages for labor performed within the 6 months
10immediately preceding the death of such deceased person, not
11exceeding $1,000 due to another person and provided further
12that such proceeds shall be nondischargeable in insolvency
13proceedings instituted pursuant to Chapter 7, Chapter 11, or
14Chapter 13 of the Federal Bankruptcy Act.
15(Source: P.A. 85-183.)
16 (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
17 Sec. 10.6. The Division Department shall make an effort to
18more directly inform players of the odds of winning prizes.
19This effort shall include, at a minimum, that the Division
20Department require all ticket agents to display a placard
21stating the odds of winning for each game offered by that
22agent.
23(Source: P.A. 97-464, eff. 10-15-11.)
24 (20 ILCS 1605/10.7)

SB2254- 61 -LRB102 15486 SMS 20849 b
1 Sec. 10.7. Compulsive gambling.
2 (a) Each lottery sales agent shall post a statement
3regarding obtaining assistance with gambling problems and
4including a toll-free "800" telephone number providing crisis
5counseling and referral services to families experiencing
6difficulty as a result of problem or compulsive gambling. The
7text of the statement shall be determined by rule by the
8Department of Human Services, shall be no more than one
9sentence in length, and shall be posted on the placard
10required under Section 10.6. The signs shall be provided by
11the Department of Human Services.
12 (b) The Division Department shall print a statement
13regarding obtaining assistance with gambling problems, the
14text of which shall be determined by rule by the Department of
15Human Services, on all paper stock it provides to the general
16public.
17 (c) The Division Department shall print a statement of no
18more than one sentence in length regarding obtaining
19assistance with gambling problems and including a toll-free
20"800" number providing crisis counseling and referral services
21to families experiencing difficulty as a result of problem or
22compulsive gambling on the back of all lottery tickets.
23(Source: P.A. 97-464, eff. 10-15-11.)
24 (20 ILCS 1605/10.8)
25 Sec. 10.8. Specialty retailers license.

SB2254- 62 -LRB102 15486 SMS 20849 b
1 (a) "Veterans service organization" means an organization
2that:
3 (1) is formed by and for United States military
4 veterans;
5 (2) is chartered by the United States Congress and
6 incorporated in the State of Illinois;
7 (3) maintains a state headquarters office in the State
8 of Illinois; and
9 (4) is not funded by the State of Illinois or by any
10 county in this State.
11 (b) The Division Department shall establish a special
12classification of retailer license to facilitate the
13year-round sale of the instant scratch-off lottery game
14established by the General Assembly in Section 21.6. The fees
15set forth in Section 10.2 do not apply to a specialty retailer
16license.
17 The holder of a specialty retailer license (i) shall be a
18veterans service organization, (ii) may sell only specialty
19lottery tickets established for the benefit of the Illinois
20Veterans Assistance Fund in the State treasury, (iii) is
21required to purchase those tickets up front at face value from
22the Illinois Lottery, and (iv) must sell those tickets at face
23value. Specialty retailers may obtain a refund from the
24Division Department for any unsold specialty tickets that they
25have purchased for resale, as set forth in the specialty
26retailer agreement.

SB2254- 63 -LRB102 15486 SMS 20849 b
1 Specialty retailers shall receive a sales commission equal
2to 2% of the face value of specialty game tickets purchased
3from the Division Department, less adjustments for unsold
4tickets returned to the Illinois Lottery for credit. Specialty
5retailers may not cash winning tickets, but are entitled to a
61% bonus in connection with the sale of a winning specialty
7game ticket having a price value of $1,000 or more.
8(Source: P.A. 100-201, eff. 8-18-17.)
9 (20 ILCS 1605/12) (from Ch. 120, par. 1162)
10 Sec. 12. The public inspection and copying of the records
11and data of the Division Department and the Board shall be
12generally governed by the provisions of the Freedom of
13Information Act except that the following shall additionally
14be exempt from inspection and copying:
15 (i) information privileged against introduction in
16 judicial proceedings;
17 (ii) internal communications of the several agencies;
18 (iii) information concerning secret manufacturing
19 processes or confidential data submitted by any person
20 under this Act;
21 (iv) any creative proposals, scripts, storyboards or
22 other materials prepared by or for the Division
23 Department, prior to the placement of the materials in the
24 media, if the prior release of the materials would
25 compromise the effectiveness of an advertising campaign.

SB2254- 64 -LRB102 15486 SMS 20849 b
1(Source: P.A. 97-464, eff. 10-15-11.)
2 (20 ILCS 1605/13) (from Ch. 120, par. 1163)
3 Sec. 13. Except as otherwise provided in Section 13.1, no
4prize, nor any portion of a prize, nor any right of any person
5to a prize awarded shall be assignable. Any prize, or portion
6thereof remaining unpaid at the death of a prize winner, may be
7paid to the estate of such deceased prize winner, or to the
8trustee under a revocable living trust established by the
9deceased prize winner as settlor, provided that a copy of such
10a trust has been filed with the Division Department along with
11a notarized letter of direction from the settlor and no
12written notice of revocation has been received by the Division
13Department prior to the settlor's death. Following such a
14settlor's death and prior to any payment to such a successor
15trustee, the Director shall obtain from the trustee a written
16agreement to indemnify and hold the Director and the Division
17Department harmless with respect to any claims that may be
18asserted against the Division Department arising from payment
19to or through the trust. Notwithstanding any other provision
20of this Section, any person pursuant to an appropriate
21judicial order may be paid the prize to which a winner is
22entitled, and all or part of any prize otherwise payable by
23State warrant under this Section shall be withheld upon
24certification to the State Comptroller from the Department of
25Healthcare and Family Services as provided in Section 10-17.5

SB2254- 65 -LRB102 15486 SMS 20849 b
1of The Illinois Public Aid Code. The Director and the Division
2Department shall be discharged of all further liability upon
3payment of a prize pursuant to this Section.
4(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
5 (20 ILCS 1605/13.1)
6 Sec. 13.1. Assignment of prizes payable in installments.
7 (a) The right of any person to receive payments under a
8prize that is paid in installments over time by the Division
9Department may be voluntarily assigned, in whole or in part,
10if the assignment is made to a person or entity designated
11pursuant to an order of a court of competent jurisdiction
12located in the judicial circuit where the assigning prize
13winner resides or where the headquarters of the Division
14Department is located. A court may issue an order approving a
15voluntary assignment and directing the Division Department to
16make prize payments in whole or in part to the designated
17assignee, if the court finds that all of the following
18conditions have been met:
19 (1) The assignment is in writing, is executed by the
20 assignor, and is, by its terms, subject to the laws of this
21 State.
22 (2) The purchase price being paid for the payments
23 being assigned represents a present value of the payments
24 being assigned, discounted at an annual rate that does not
25 exceed 10 percentage points over the Wall Street Journal

SB2254- 66 -LRB102 15486 SMS 20849 b
1 prime rate published on the business day prior to the date
2 of execution of the contract.
3 (3) The contract of assignment expressly states that
4 the assignor has 3 business days after the contract was
5 signed to cancel the assignment.
6 (4) The assignor provides a sworn affidavit attesting
7 that he or she:
8 (i) is of sound mind, is in full command of his or
9 her faculties, and is not acting under duress;
10 (ii) has been advised regarding the assignment by
11 his or her own independent legal counsel, who is
12 unrelated to and is not being compensated by the
13 assignee or any of the assignee's affiliates, and has
14 received independent financial or tax advice
15 concerning the effects of the assignment from a lawyer
16 or other professional who is unrelated to and is not
17 being compensated by the assignee or any of the
18 assignee's affiliates;
19 (iii) understands that he or she will not receive
20 the prize payments or portions thereof for the years
21 assigned;
22 (iv) understands and agrees that, with regard to
23 the assigned payments, the Division Department and its
24 officials and employees will have no further liability
25 or responsibility to make the assigned payments to him
26 or her;

SB2254- 67 -LRB102 15486 SMS 20849 b
1 (v) has been provided with a one-page written
2 disclosure statement setting forth, in bold type of
3 not less than 14 points, the payments being assigned,
4 by amounts and payment dates; the purchase price being
5 paid; the rate of discount to present value, assuming
6 daily compounding and funding on the contract date;
7 and the amount, if any, of any origination or closing
8 fees that will be charged to him or her; and
9 (vi) was advised in writing, at the time he or she
10 signed the assignment contract, that he or she had the
11 right to cancel the contract, without any further
12 obligation, within 3 business days following the date
13 on which the contract was signed.
14 (5) Written notice of the proposed assignment and any
15 court hearing concerning the proposed assignment is
16 provided to the Division's Department's counsel at least
17 30 days prior to any court hearing. The Division
18 Department is not required to appear in or be named as a
19 party to any such action seeking judicial confirmation of
20 an assignment under this Section, but may intervene as of
21 right in any such proceeding.
22 (b) A certified copy of a court order approving a
23voluntary assignment must be provided to the Division
24Department no later than 30 days before the date on which the
25payment is to be made.
26 (c) A court order obtained pursuant to this Section,

SB2254- 68 -LRB102 15486 SMS 20849 b
1together with all such prior orders, shall not require the
2Division Department to divide any single prize payment among
3more than 3 different persons. Nothing in this Section shall
4prohibit substituting assignees as long as there are no more
5than 3 assignees at any one time for any one prize payment.
6 (d) If a husband and wife are co-owners of a prize, any
7assignment of the prize must be made jointly.
8 (e) A voluntary assignment may not include portions of
9payments that are subject to offset on account of a defaulted
10or delinquent child support obligation, non-wage garnishment,
11or criminal restitution obligation or on account of a debt
12owed to a State agency. Each court order issued under
13subsection (a) shall provide that any delinquent child support
14or criminal restitution obligations of the assigning prize
15winner and any debts owed to a State agency by the assigning
16prize winner, as of the date of the court order, shall be set
17off by the Division Department first against remaining
18payments or portions thereof due the prize winner and then
19against payments due the assignee.
20 (f) The Division Department and its respective officials
21and employees shall be discharged of all liability upon
22payment of an assigned prize under this Section. The assignor
23and assignee shall hold harmless and indemnify the Division
24Department, the State of Illinois, and its employees and
25agents from all claims, actions, suits, complaints, and
26liabilities related to the assignment.

SB2254- 69 -LRB102 15486 SMS 20849 b
1 (g) The Division Department may establish a reasonable fee
2to defray any administrative expenses associated with
3assignments made under this Section, including the cost to the
4Division Department of any processing fee that may be imposed
5by a private annuity provider. The fee amount shall reflect
6the direct and indirect costs associated with processing
7assignments.
8 (h) If at any time the Internal Revenue Service or a court
9of competent jurisdiction issues a determination letter,
10revenue ruling, other public ruling of the Internal Revenue
11Service, or published decision to the Division Department or
12to any lottery prize winner declaring that the voluntary
13assignment of prizes will affect the federal income tax
14treatment of prize winners who do not assign their prizes, the
15Division Department shall immediately file a copy of that
16letter, ruling, or published decision with the Attorney
17General, the Secretary of State, and the Administrative Office
18of the Illinois Courts. A court may not issue an order
19authorizing a voluntary assignment under this Section after
20the date any such ruling, letter, or published decision is
21filed.
22 (i) A contract of assignment in which the assignor is a
23lottery winner shall include a sworn affidavit from the
24assignee. The form of the affidavit shall be established by
25the Division Department and shall include:
26 (1) a summary of assignee contacts with the winner;

SB2254- 70 -LRB102 15486 SMS 20849 b
1 (2) a summary of any lawsuits, claims, and other legal
2 actions from lottery winners regarding conduct of the
3 assignee or its agents;
4 (3) a statement that the assignee is in good standing
5 in its state of domicile and with any other licensing or
6 regulatory agency as may be required in the conduct of its
7 business;
8 (4) a brief business history of the assignee;
9 (5) a statement describing the nature of the business
10 of the assignee; and
11 (6) a statement of the assignee's privacy and
12 non-harassment policies and express affirmation that the
13 assignee has followed those policies in Illinois.
14 (j) The assignee shall notify the Division Department of
15its business location and mailing address for payment purposes
16during the entire course of the assignment.
17(Source: P.A. 93-465, eff. 1-1-04.)
18 (20 ILCS 1605/14) (from Ch. 120, par. 1164)
19 Sec. 14. No person shall sell a ticket or share at a price
20greater than that fixed by rule or regulation of the Division
21Department. No person other than a licensed lottery sales
22agent or distributor shall sell or resell lottery tickets or
23shares. No person shall charge a fee to redeem a winning ticket
24or share.
25 Any person convicted of violating this Section shall be

SB2254- 71 -LRB102 15486 SMS 20849 b
1guilty of a Class B misdemeanor; provided, that if any offense
2under this Section is a subsequent offense, the offender shall
3be guilty of a Class 4 felony.
4(Source: P.A. 97-464, eff. 10-15-11.)
5 (20 ILCS 1605/14.3)
6 Sec. 14.3. Misuse of proprietary material prohibited.
7Except as may be provided in Section 7.11, or by bona fide sale
8or by prior authorization from the Department or the Division,
9or otherwise by law, all premiums, promotional and other
10proprietary material produced or acquired by the Division
11Department as part of its advertising and promotional
12activities shall remain the property of the Division
13Department. Nothing herein shall be construed to affect the
14rights or obligations of the Division Department or any other
15person under federal or State trademark or copyright laws.
16(Source: P.A. 97-464, eff. 10-15-11.)
17 (20 ILCS 1605/14.4)
18 Sec. 14.4. Investigators.
19 (a) The Division Department has the power to appoint
20investigators to conduct investigations, searches, seizures,
21arrests, and other duties required to enforce the provisions
22of this Act and prevent the perpetration of fraud upon the
23Division Department or the public. These investigators have
24and may exercise all the powers of peace officers solely for

SB2254- 72 -LRB102 15486 SMS 20849 b
1the purpose of ensuring the integrity of the lottery games
2operated by the Division Department.
3 (b) The Director must authorize to each investigator
4employed under this Section and to any other employee of the
5Division Department exercising the powers of a peace officer a
6distinct badge that, on its face, (i) clearly states that the
7badge is authorized by the Department and (ii) contains a
8unique identifying number. No other badge shall be authorized
9by the Division Department.
10(Source: P.A. 97-1121, eff. 8-27-12; 98-499, eff. 8-16-13.)
11 (20 ILCS 1605/15) (from Ch. 120, par. 1165)
12 Sec. 15. No minor under 18 years of age shall buy a lottery
13ticket or share. No person shall sell, distribute samples of,
14or furnish a lottery ticket or share to any minor under 18
15years of age, buy a lottery ticket or share for any minor under
1618 years of age, or aid and abet in the purchase of lottery
17tickets or shares by a minor under 18 years of age.
18 No ticket or share shall be purchased by, and no prize
19shall be paid to any of the following persons: any member of
20the Board or any officer or other person employed by the
21Division Board or the Department; any spouse, child, brother,
22sister or parent residing as a member of the same household in
23the principal place of abode of any such persons; or any minor
24under 18 years of age.
25 Any violation of this Section by a person other than the

SB2254- 73 -LRB102 15486 SMS 20849 b
1purchasing minor shall be a Class B misdemeanor; provided,
2that if any violation of this Section is a subsequent
3violation, the offender shall be guilty of a Class 4 felony.
4Notwithstanding any provision to the contrary, a violation of
5this Section by a minor under 18 years of age shall be a petty
6offense.
7(Source: P.A. 90-346, eff. 8-8-97.)
8 (20 ILCS 1605/19) (from Ch. 120, par. 1169)
9 Sec. 19. The Division Department shall establish an
10appropriate period for the claiming of prizes for each lottery
11game offered. Each claim period shall be stated in game rules
12and written play instructions issued by the Director in
13accordance with Section 7.1 of this Act. Written play
14instructions shall be made available to all players through
15sales agents licensed to sell game tickets or shares. Prizes
16for lottery games which involve the purchase of a physical
17lottery ticket may be claimed only by presentation of a valid
18winning lottery ticket that matches validation records on file
19with the Lottery; no claim may be honored which is based on the
20assertion that the ticket was lost or stolen. No lottery
21ticket which has been altered, mutilated, or fails to pass
22validation tests shall be deemed to be a winning ticket.
23 If no claim is made for the money within the established
24claim period, the prize may be included in the prize pool of
25such special drawing or drawings as the Division Department

SB2254- 74 -LRB102 15486 SMS 20849 b
1may, from time to time, designate. Unclaimed multi-state game
2prize money may be included in the multi-state prize pool for
3such special drawing or drawings as the multi-state game
4directors may, from time to time, designate. Any bonuses
5offered by the Division Department to sales agents who sell
6winning tickets or shares shall be payable to such agents
7regardless of whether or not the prize money on the ticket or
8share is claimed, provided that the agent can be identified as
9the vendor of the winning ticket or share, and that the winning
10ticket or share was sold on or after January 1, 1984. All
11unclaimed prize money not included in the prize pool of a
12special drawing shall be transferred to the Common School
13Fund.
14(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
15 (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
16 Sec. 20.1. Division Department account.
17 (a) The Division Department is authorized to pay validated
18prizes up to $25,000 from funds held by the Division
19Department in an account separate and apart from all public
20moneys of the State. Moneys in this account shall be
21administered by the Director exclusively for the purposes of
22issuing payments to prize winners authorized by this Section.
23Moneys in this account shall be deposited by the Division
24Department into the Public Treasurers' Investment Pool
25established under Section 17 of the State Treasurer Act. The

SB2254- 75 -LRB102 15486 SMS 20849 b
1Division Department shall submit vouchers from time to time as
2needed for reimbursement of this account from moneys
3appropriated for prizes from the State Lottery Fund.
4Investment income earned from this account shall be deposited
5monthly by the Division Department into the Common School
6Fund. The Division Department shall file quarterly fiscal
7reports specifying the activity of this account as required
8under Section 16 of the State Comptroller Act, and shall file
9quarterly with the General Assembly, the Auditor General, the
10Comptroller, and the State Treasurer a report indicating the
11costs associated with this activity.
12 (b) The Division Department is authorized to enter into an
13interagency agreement with the Office of the Comptroller or
14any other State agency to establish responsibilities, duties,
15and procedures for complying with the Comptroller's Offset
16System under Section 10.05 of the State Comptroller Act. All
17federal and State tax reporting and withholding requirements
18relating to prize winners under this Section shall be the
19responsibility of the Division Department. Moneys from this
20account may not be used to pay amounts to deferred prize
21winners. Moneys may not be transferred from the State Lottery
22Fund to this account for payment of prizes under this Section
23until procedures are implemented to comply with the
24Comptroller's Offset System and sufficient internal controls
25are in place to validate prizes.
26(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)

SB2254- 76 -LRB102 15486 SMS 20849 b
1 (20 ILCS 1605/21) (from Ch. 120, par. 1171)
2 Sec. 21. All lottery sales agents or distributors shall be
3liable to the Lottery for any and all tickets accepted or
4generated by any employee or representative of that agent or
5distributor, and such tickets shall be deemed to have been
6purchased by the agent or distributor unless returned to the
7Lottery within the time and in the manner prescribed by the
8Director. All moneys received by such agents or distributors
9from the sale of lottery tickets or shares, less the amount
10retained as compensation for the sale of the tickets or shares
11and the amount paid out as prizes, shall be paid over to a
12lottery representative or deposited in a bank or savings and
13loan association approved by the State Treasurer, as
14prescribed by the Director.
15 No bank or savings and loan association shall receive
16public funds as permitted by this Section, unless it has
17complied with the requirements established pursuant to Section
186 of the Public Funds Investment Act.
19 Each payment or deposit shall be accompanied by a report
20of the agent's receipts and transactions in the sale of
21lottery tickets in such form and containing such information
22as the Director may require. Any discrepancies in such
23receipts and transactions may be resolved as provided by the
24rules and regulations of the Division Department.
25 If any money due the Lottery by a sales agent or

SB2254- 77 -LRB102 15486 SMS 20849 b
1distributor is not paid when due or demanded, it shall
2immediately become delinquent and be billed on a subsequent
3monthly statement. If on the closing date for any monthly
4statement a delinquent amount previously billed of more than
5$50 remains unpaid, interest in such amount shall be accrued
6at the rate of 2% per month or fraction thereof from the date
7when such delinquent amount becomes past due until such
8delinquent amount, including interest, penalty and other costs
9and charges that the Division Department may incur in
10collecting such amounts, is paid. In case any agent or
11distributor fails to pay any moneys due the Lottery within 30
12days after a second bill or statement is rendered to the agent
13or distributor, such amount shall be deemed seriously
14delinquent and may be referred by the Division Department to a
15collection agency or credit bureau for collection. Any
16contract entered into by the Division Department for the
17collection of seriously delinquent accounts with a collection
18agency or credit bureau may be satisfied by a commercially
19reasonable percentage of the delinquent account recouped,
20which shall be negotiated by the Division Department in
21accordance with commercially accepted standards. Any costs
22incurred by the Division Department or others authorized to
23act in its behalf in collecting such delinquencies may be
24assessed against the agent or distributor and included as a
25part of the delinquent account.
26 In case of failure of an agent or distributor to pay a

SB2254- 78 -LRB102 15486 SMS 20849 b
1seriously delinquent amount, or any portion thereof, including
2interest, penalty and costs, the Division Department may issue
3a Notice of Assessment. In determining amounts shown on the
4Notice of Assessment, the Division Department shall utilize
5the financial information available from its records. Such
6Notice of Assessment shall be prima facie correct and shall be
7prima facie evidence of delinquent sums due under this Section
8at any hearing before the Director or any Board, or its Hearing
9Officers, or at any other legal proceeding. Reproduced copies
10of any of the Division's Department's records relating to an
11account, including, but not limited to, notices of assessment,
12suspension, revocation, and personal liability and any other
13such notice prepared in the Division's Department's ordinary
14course of business and books, records, or other documents
15offered in the name of the Division Department, under
16certificate of the Director or any officer or employee of the
17Division Department designated in writing by the Director
18shall, without further proof, be admitted into evidence in any
19hearing before the Director or any Board or its Hearing
20Officers or any legal proceeding and shall be prima facie
21proof of the information contained therein. The Attorney
22General may bring suit on behalf of the Division Department to
23collect all such delinquent amounts, or any portion thereof,
24including interest, penalty and costs, due the Lottery.
25 Any person who accepts money that is due to the Division
26Department from the sale of lottery tickets under this Act,

SB2254- 79 -LRB102 15486 SMS 20849 b
1but who wilfully fails to remit such payment to the Division
2Department when due or who purports to make such payment but
3wilfully fails to do so because his check or other remittance
4fails to clear the bank or savings and loan association
5against which it is drawn, in addition to the amount due and in
6addition to any other penalty provided by law, shall be
7assessed, and shall pay, a penalty equal to 5% of the
8deficiency plus any costs or charges incurred by the Division
9Department in collecting such amount.
10 The Director may make such arrangements for any person(s),
11banks, savings and loan associations or distributors, to
12perform such functions, activities or services in connection
13with the operation of the lottery as he deems advisable
14pursuant to this Act, the State Comptroller Act, or the rules
15and regulations of the Division Department, and such
16functions, activities or services shall constitute lawful
17functions, activities and services of such person(s), banks,
18savings and loan associations or distributors.
19 All income arising out of any activity or purpose of the
20Division Department shall, pursuant to the State Finance Act,
21be paid into the State Treasury except as otherwise provided
22by the rules and regulations of the Division Department and
23shall be covered into a special fund to be known as the State
24Lottery Fund. Banks and savings and loan associations may be
25compensated for services rendered based upon the activity and
26amount of funds on deposit.

SB2254- 80 -LRB102 15486 SMS 20849 b
1(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
2 (20 ILCS 1605/21.3) (from Ch. 120, par. 1171.3)
3 Sec. 21.3. Any officer of any corporation licensed as an
4agent for the sale of Lottery tickets and products shall be
5personally liable for the total amount of Lottery receipts due
6the Division Departmentt which are unpaid by the corporation,
7together with any interest and penalties thereon assessed in
8accordance with the provision of Section 21 of the Act.
9 The personal liability of a corporate officer as provided
10herein shall survive the dissolution of the corporation. No
11action to enforce such personal liability shall be commenced
12unless a notice of the delinquent account has been sent to such
13corporate officer at the address shown on the Lottery records
14or otherwise known to Division Department officials, and no
15such action shall be commenced after the expiration of 3 years
16from the date of the Division's Department's notice of
17delinquent account or the termination of any court proceedings
18with respect to the issue of the delinquency of a corporation.
19 Procedures for protest and review of a notice of the
20Division's Department's intention to enforce personal
21liability against a corporate officer shall be the same as
22those prescribed for protest and review of the Notice of
23Assessment as set forth in Section 7.3 of this Act.
24(Source: P.A. 88-522.)

SB2254- 81 -LRB102 15486 SMS 20849 b
1 (20 ILCS 1605/21.5)
2 Sec. 21.5. Carolyn Adams Ticket For The Cure.
3 (a) The Division Department shall offer a special instant
4scratch-off game with the title of "Carolyn Adams Ticket For
5The Cure". The game shall commence on January 1, 2006 or as
6soon thereafter, in the discretion of the Director, as is
7reasonably practical, and shall be discontinued on December
831, 2026. The operation of the game shall be governed by this
9Act and any rules adopted by the Division Department. The
10Division Department must consult with the Carolyn Adams Ticket
11For The Cure Board, which is established under Section
122310-347 of the Department of Public Health Powers and Duties
13Law of the Civil Administrative Code of Illinois, regarding
14the design and promotion of the game. If any provision of this
15Section is inconsistent with any other provision of this Act,
16then this Section governs.
17 (b) The Carolyn Adams Ticket For The Cure Grant Fund is
18created as a special fund in the State treasury. The net
19revenue from the Carolyn Adams Ticket For The Cure special
20instant scratch-off game shall be deposited into the Fund for
21appropriation by the General Assembly solely to the Department
22of Public Health for the purpose of making grants to public or
23private entities in Illinois for the purpose of funding breast
24cancer research, and supportive services for breast cancer
25survivors and those impacted by breast cancer and breast
26cancer education. In awarding grants, the Department of Public

SB2254- 82 -LRB102 15486 SMS 20849 b
1Health shall consider criteria that includes, but is not
2limited to, projects and initiatives that address disparities
3in incidence and mortality rates of breast cancer, based on
4data from the Illinois Cancer Registry, and populations facing
5barriers to care. The Department of Public Health shall,
6before grants are awarded, provide copies of all grant
7applications to the Carolyn Adams Ticket For The Cure Board,
8receive and review the Board's recommendations and comments,
9and consult with the Board regarding the grants. For purposes
10of this Section, the term "research" includes, without
11limitation, expenditures to develop and advance the
12understanding, techniques, and modalities effective in the
13detection, prevention, screening, and treatment of breast
14cancer and may include clinical trials. The grant funds may
15not be used for institutional, organizational, or
16community-based overhead costs, indirect costs, or levies.
17 Moneys received for the purposes of this Section,
18including, without limitation, net revenue from the special
19instant scratch-off game and gifts, grants, and awards from
20any public or private entity, must be deposited into the Fund.
21Any interest earned on moneys in the Fund must be deposited
22into the Fund.
23 For purposes of this subsection, "net revenue" means the
24total amount for which tickets have been sold less the sum of
25the amount paid out in prizes and the actual administrative
26expenses of the Division Department solely related to the

SB2254- 83 -LRB102 15486 SMS 20849 b
1Ticket For The Cure game.
2 (c) During the time that tickets are sold for the Carolyn
3Adams Ticket For The Cure game, the Division Department shall
4not unreasonably diminish the efforts devoted to marketing any
5other instant scratch-off lottery game.
6 (d) The Division Department may adopt any rules necessary
7to implement and administer the provisions of this Section.
8(Source: P.A. 98-499, eff. 8-16-13; 99-917, eff. 12-30-16.)
9 (20 ILCS 1605/21.6)
10 Sec. 21.6. Scratch-off for Illinois veterans.
11 (a) The Division Department shall offer a special instant
12scratch-off game for the benefit of Illinois veterans. The
13game shall commence on January 1, 2006 or as soon thereafter,
14at the discretion of the Director, as is reasonably practical.
15The operation of the game shall be governed by this Act and any
16rules adopted by the Division Department. If any provision of
17this Section is inconsistent with any other provision of this
18Act, then this Section governs.
19 (b) The Illinois Veterans Assistance Fund is created as a
20special fund in the State treasury. The net revenue from the
21Illinois veterans scratch-off game shall be deposited into the
22Fund for appropriation by the General Assembly solely to the
23Department of Veterans' Affairs for making grants, funding
24additional services, or conducting additional research
25projects relating to each of the following:

SB2254- 84 -LRB102 15486 SMS 20849 b
1 (i) veterans' post traumatic stress disorder;
2 (ii) veterans' homelessness;
3 (iii) the health insurance costs of veterans;
4 (iv) veterans' disability benefits, including but not
5 limited to, disability benefits provided by veterans
6 service organizations and veterans assistance commissions
7 or centers;
8 (v) the long-term care of veterans; provided that,
9 beginning with moneys appropriated for fiscal year 2008,
10 no more than 20% of such moneys shall be used for health
11 insurance costs; and
12 (vi) veteran employment and employment training.
13 In order to expend moneys from this special fund,
14beginning with moneys appropriated for fiscal year 2008, the
15Director of Veterans' Affairs shall appoint a 3-member funding
16authorization committee. The Director shall designate one of
17the members as chairperson. The committee shall meet on a
18quarterly basis, at a minimum, and shall authorize expenditure
19of moneys from the special fund by a two-thirds vote.
20Decisions of the committee shall not take effect unless and
21until approved by the Director of Veterans' Affairs. Each
22member of the committee shall serve until a replacement is
23named by the Director of Veterans' Affairs. One member of the
24committee shall be a member of the Veterans' Advisory Council.
25 Moneys collected from the special instant scratch-off game
26shall be used only as a supplemental financial resource and

SB2254- 85 -LRB102 15486 SMS 20849 b
1shall not supplant existing moneys that the Department of
2Veterans' Affairs may currently expend for the purposes set
3forth in items (i) through (v).
4 Moneys received for the purposes of this Section,
5including, without limitation, net revenue from the special
6instant scratch-off game and from gifts, grants, and awards
7from any public or private entity, must be deposited into the
8Fund. Any interest earned on moneys in the Fund must be
9deposited into the Fund.
10 For purposes of this subsection, "net revenue" means the
11total amount for which tickets have been sold less the sum of
12the amount paid out in the prizes and the actual
13administrative expenses of the Division Department solely
14related to the scratch-off game under this Section.
15 (c) During the time that tickets are sold for the Illinois
16veterans scratch-off game, the Division Department shall not
17unreasonably diminish the efforts devoted to marketing any
18other instant scratch-off lottery game.
19 (d) The Division Department may adopt any rules necessary
20to implement and administer the provisions of this Section.
21(Source: P.A. 100-143, eff. 1-1-18; 100-201, eff. 8-18-17.)
22 (20 ILCS 1605/21.7)
23 Sec. 21.7. Scratch-out Multiple Sclerosis scratch-off
24game.
25 (a) The Division Department shall offer a special instant

SB2254- 86 -LRB102 15486 SMS 20849 b
1scratch-off game for the benefit of research pertaining to
2multiple sclerosis. The game shall commence on July 1, 2008 or
3as soon thereafter, in the discretion of the Director, as is
4reasonably practical. The operation of the game shall be
5governed by this Act and any rules adopted by the Division
6Departmentt. If any provision of this Section is inconsistent
7with any other provision of this Act, then this Section
8governs.
9 (b) The Multiple Sclerosis Research Fund is created as a
10special fund in the State treasury. The net revenue from the
11scratch-out multiple sclerosis scratch-off game created under
12this Section shall be deposited into the Fund for
13appropriation by the General Assembly to the Department of
14Public Health for the purpose of making grants to
15organizations in Illinois that conduct research pertaining to
16the repair and prevention of damage caused by an acquired
17demyelinating disease of the central nervous system.
18 Moneys received for the purposes of this Section,
19including, without limitation, net revenue from the special
20instant scratch-off game and from gifts, grants, and awards
21from any public or private entity, must be deposited into the
22Fund. Any interest earned on moneys in the Fund must be
23deposited into the Fund.
24 For purposes of this Section, the term "research"
25includes, without limitation, expenditures to develop and
26advance the understanding, techniques, and modalities

SB2254- 87 -LRB102 15486 SMS 20849 b
1effective for maintaining function, mobility, and strength
2through preventive physical therapy or other treatments and to
3develop and advance the repair, and also the prevention, of
4myelin, neuron, and axon damage caused by an acquired
5demyelinating disease of the central nervous system and the
6restoration of function, including but not limited to, nervous
7system repair or neuroregeneration.
8 The grant funds may not be used for institutional,
9organizational, or community-based overhead costs, indirect
10costs, or levies.
11 For purposes of this subsection, "net revenue" means the
12total amount for which tickets have been sold less the sum of
13the amount paid out in the prizes and the actual
14administrative expenses of the Division Department solely
15related to the scratch-off game under this Section.
16 (c) During the time that tickets are sold for the
17scratch-out multiple sclerosis scratch-off game, the Division
18Department shall not unreasonably diminish the efforts devoted
19to marketing any other instant scratch-off lottery game.
20 (d) The Division Department may adopt any rules necessary
21to implement and administer the provisions of this Section.
22(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
23 (20 ILCS 1605/21.8)
24 Sec. 21.8. Quality of Life scratch-off game.
25 (a) The Division Department shall offer a special instant

SB2254- 88 -LRB102 15486 SMS 20849 b
1scratch-off game with the title of "Quality of Life". The game
2shall commence on July 1, 2007 or as soon thereafter, in the
3discretion of the Director, as is reasonably practical, and
4shall be discontinued on December 31, 2025. The operation of
5the game is governed by this Act and by any rules adopted by
6the Division Department. The Division Department must consult
7with the Quality of Life Board, which is established under
8Section 2310-348 of the Department of Public Health Powers and
9Duties Law of the Civil Administrative Code of Illinois,
10regarding the design and promotion of the game. If any
11provision of this Section is inconsistent with any other
12provision of this Act, then this Section governs.
13 (b) The Quality of Life Endowment Fund is created as a
14special fund in the State treasury. The net revenue from the
15Quality of Life special instant scratch-off game must be
16deposited into the Fund for appropriation by the General
17Assembly solely to the Department of Public Health for the
18purpose of HIV/AIDS-prevention education and for making grants
19to public or private entities in Illinois for the purpose of
20funding organizations that serve the highest at-risk
21categories for contracting HIV or developing AIDS. Grants
22shall be targeted to serve at-risk populations in proportion
23to the distribution of recent reported Illinois HIV/AIDS cases
24among risk groups as reported by the Illinois Department of
25Public Health. The recipient organizations must be engaged in
26HIV/AIDS-prevention education and HIV/AIDS healthcare

SB2254- 89 -LRB102 15486 SMS 20849 b
1treatment. The Division Department must, before grants are
2awarded, provide copies of all grant applications to the
3Quality of Life Board, receive and review the Board's
4recommendations and comments, and consult with the Board
5regarding the grants. Organizational size will determine an
6organization's competitive slot in the "Request for Proposal"
7process. Organizations with an annual budget of $300,000 or
8less will compete with like size organizations for 50% of the
9Quality of Life annual fund. Organizations with an annual
10budget of $300,001 to $700,000 will compete with like
11organizations for 25% of the Quality of Life annual fund, and
12organizations with an annual budget of $700,001 and upward
13will compete with like organizations for 25% of the Quality of
14Life annual fund. The Division lottery may designate a
15percentage of proceeds for marketing purposes purpose. The
16grant funds may not be used for institutional, organizational,
17or community-based overhead costs, indirect costs, or levies.
18 Grants awarded from the Fund are intended to augment the
19current and future State funding for the prevention and
20treatment of HIV/AIDS and are not intended to replace that
21funding.
22 Moneys received for the purposes of this Section,
23including, without limitation, net revenue from the special
24instant scratch-off game and gifts, grants, and awards from
25any public or private entity, must be deposited into the Fund.
26Any interest earned on moneys in the Fund must be deposited

SB2254- 90 -LRB102 15486 SMS 20849 b
1into the Fund.
2 For purposes of this subsection, "net revenue" means the
3total amount for which tickets have been sold less the sum of
4the amount paid out in prizes and the actual administrative
5expenses of the Division Department solely related to the
6Quality of Life game.
7 (c) During the time that tickets are sold for the Quality
8of Life game, the Division Department shall not unreasonably
9diminish the efforts devoted to marketing any other instant
10scratch-off lottery game.
11 (d) The Division Department may adopt any rules necessary
12to implement and administer the provisions of this Section in
13consultation with the Quality of Life Board.
14(Source: P.A. 98-499, eff. 8-16-13; 99-791, eff. 8-12-16.)
15 (20 ILCS 1605/21.9)
16 Sec. 21.9. Go For The Gold scratch-off game.
17 (a) The Division Department shall offer a special instant
18scratch-off game with the title of "Go For The Gold". The game
19must commence on July 1, 2014 or as soon thereafter, at the
20discretion of the Director, as is reasonably practical. The
21operation of the game is governed by this Act and by any rules
22adopted by the Division Department. If any provision of this
23Section is inconsistent with any other provision of this Act,
24then this Section governs.
25 (b) The Special Olympics Illinois and Special Children's

SB2254- 91 -LRB102 15486 SMS 20849 b
1Charities Fund is created as a special fund in the State
2treasury. The net revenue from the Go For The Gold special
3instant scratch-off game must be deposited into the Special
4Olympics Illinois and Special Children's Charities Fund for
5appropriation by the General Assembly solely to the Department
6of Human Services, which must distribute the moneys as
7follows: (i) 75% of the moneys to Special Olympics Illinois to
8support the statewide training, competitions, and programs for
9future Special Olympics athletes; and (ii) 25% of the moneys
10to Special Children's Charities to support the City of
11Chicago-wide training, competitions, and programs for future
12Special Olympics athletes. The moneys may not be used for
13institutional, organizational, or community-based overhead
14costs, indirect costs, or levies.
15 Moneys received for the purposes of this Section,
16including, without limitation, net revenue from the special
17instant scratch-off game and gifts, grants, and awards from
18any public or private entity, must be deposited into the
19Special Olympics and Special Children's Charities Fund. Any
20interest earned on moneys in the Special Olympics and Special
21Children's Charities Fund must be deposited into the Special
22Olympics and Special Children's Charities Fund.
23 For purposes of this subsection, "net revenue" means the
24total amount for which tickets have been sold less the sum of
25the amount paid out in prizes and the actual administrative
26expenses of the Division Department solely related to the Go

SB2254- 92 -LRB102 15486 SMS 20849 b
1For The Gold game.
2 (c) During the time that tickets are sold for the Go For
3The Gold game, the Division Department shall not unreasonably
4diminish the efforts devoted to marketing any other instant
5scratch-off lottery game.
6 (d) The Division Department may adopt any rules necessary
7to implement and administer the provisions of this Section.
8(Source: P.A. 98-649, eff. 6-16-14.)
9 (20 ILCS 1605/21.10)
10 Sec. 21.10. Scratch-off for State police memorials.
11 (a) The Division Department shall offer a special instant
12scratch-off game for the benefit of State police memorials.
13The game shall commence on January 1, 2019 or as soon
14thereafter, at the discretion of the Director, as is
15reasonably practical. The operation of the game shall be
16governed by this Act and any rules adopted by the Division
17Department. If any provision of this Section is inconsistent
18with any other provision of this Act, then this Section
19governs.
20 (b) The net revenue from the State police memorials
21scratch-off game shall be deposited into the Criminal Justice
22Information Projects Fund and distributed equally, as soon as
23practical but at least on a monthly basis, to the Chicago
24Police Memorial Foundation Fund, the Police Memorial Committee
25Fund, and the Illinois State Police Memorial Park Fund. Moneys

SB2254- 93 -LRB102 15486 SMS 20849 b
1transferred to the funds under this Section shall be used,
2subject to appropriation, to fund grants for building and
3maintaining memorials and parks; holding annual memorial
4commemorations; giving scholarships to children of officers
5killed or catastrophically injured in the line of duty, or
6those interested in pursuing a career in law enforcement;
7providing financial assistance to police officers and their
8families when a police officer is killed or injured in the line
9of duty; and providing financial assistance to officers for
10the purchase or replacement of bulletproof vests to be used in
11the line of duty.
12 For purposes of this subsection, "net revenue" means the
13total amount for which tickets have been sold less the sum of
14the amount paid out in the prizes and the actual
15administrative expenses of the Division Department solely
16related to the scratch-off game under this Section.
17 (c) During the time that tickets are sold for the State
18police memorials scratch-off game, the Division Department
19shall not unreasonably diminish the efforts devoted to
20marketing any other instant scratch-off lottery game.
21 (d) The Division Department may adopt any rules necessary
22to implement and administer the provisions of this Section.
23(Source: P.A. 100-647, eff. 7-30-18; 101-81, eff. 7-12-19.)
24 (20 ILCS 1605/21.11)
25 Sec. 21.11. Scratch-off for homelessness prevention

SB2254- 94 -LRB102 15486 SMS 20849 b
1programs.
2 (a) The Division Department shall offer a special instant
3scratch-off game to fund homelessness prevention programs. The
4game shall commence on July 1, 2019 or as soon thereafter, at
5the discretion of the Director, as is reasonably practical.
6The operation of the game shall be governed by this Act and any
7rules adopted by the Division Department. If any provision of
8this Section is inconsistent with any other provision of this
9Act, then this Section governs.
10 (b) The Homelessness Prevention Revenue Fund is created as
11a special fund in the State treasury. The net revenue from the
12scratch-off game to fund homelessness prevention programs
13shall be deposited into the Homelessness Prevention Revenue
14Fund. Subject to appropriation, moneys in the Fund shall be
15used by the Department of Human Services solely for grants to
16homelessness prevention and assistance projects under the
17Homelessness Prevention Act.
18 As used in this subsection, "net revenue" means the total
19amount for which tickets have been sold less the sum of the
20amount paid out in the prizes and the actual administrative
21expenses of the Division Department solely related to the
22scratch-off game under this Section.
23 (c) During the time that tickets are sold for the
24scratch-off game to fund homelessness prevention programs, the
25Division Department shall not unreasonably diminish the
26efforts devoted to marketing any other instant scratch-off

SB2254- 95 -LRB102 15486 SMS 20849 b
1lottery game.
2 (d) The Division Department may adopt any rules necessary
3to implement and administer the provisions of this Section.
4 (e) Nothing in this Section shall be construed to affect
5any revenue that any Homelessness Prevention line item
6receives through the General Revenue Fund or the Illinois
7Affordable Housing Trust Fund.
8(Source: P.A. 100-1068, eff. 8-24-18; 101-81, eff. 7-12-19.)
9 (20 ILCS 1605/21.12)
10 Sec. 21.12. Scratch-off for school STEAM programs.
11 (a) The Division Department shall offer a special instant
12scratch-off game for the benefit of school STEAM programming.
13The game shall commence on January 1, 2020 or as soon
14thereafter, at the discretion of the Director, as is
15reasonably practical, and shall be discontinued on January 1,
162021. The operation of the game shall be governed by the Act
17and any rules adopted by the Division Department. If any
18provision of this Section is inconsistent with any other
19provision of this Act, then this Section governs.
20 (b) The net revenue from the scratch-off for school STEAM
21programs shall be deposited into the School STEAM Grant
22Program Fund as soon as practical, but at least on a monthly
23basis. Moneys deposited into the Fund under this Section shall
24be used, subject to appropriation, by the State Board of
25Education to fund school STEAM grants pursuant to Section

SB2254- 96 -LRB102 15486 SMS 20849 b
12-3.119a of the School Code.
2 For purposes of this subsection, "net revenue" means the
3total amount for which tickets have been sold less the sum of
4the amount paid out in the prizes and the actual
5administrative expenses of the Division Department solely
6related to the scratch-off game under this Section.
7 (c) During the time that tickets are sold for the school
8STEAM programs scratch-off game, the Division Department shall
9not unreasonably diminish the efforts devoted to marketing any
10other instant scratch-off lottery game.
11 (d) The Division Department may adopt any rules necessary
12to implement and administer the provisions of this Section.
13(Source: P.A. 101-561, eff. 8-23-19.)
14 (20 ILCS 1605/21.13)
15 Sec. 21.13. Scratch-off for Alzheimer's care, support,
16education, and awareness.
17 (a) The Division Department shall offer a special instant
18scratch-off game for the benefit of Alzheimer's care, support,
19education, and awareness. The game shall commence on January
201, 2020 or as soon thereafter, at the discretion of the
21Director, as is reasonably practical, and shall be
22discontinued on January 1, 2022. The operation of the game
23shall be governed by this Act and any rules adopted by the
24Division Department. If any provision of this Section is
25inconsistent with any other provision of this Act, then this

SB2254- 97 -LRB102 15486 SMS 20849 b
1Section governs.
2 (b) The net revenue from the Alzheimer's care, support,
3education, and awareness scratch-off game shall be deposited
4into the Alzheimer's Awareness Fund.
5 Moneys received for the purposes of this Section,
6including, without limitation, net revenue from the special
7instant scratch-off game and from gifts, grants, and awards
8from any public or private entity, must be deposited into the
9Fund. Any interest earned on moneys in the Fund must be
10deposited into the Fund.
11 For the purposes of this subsection, "net revenue" means
12the total amount for which tickets have been sold less the sum
13of the amount paid out in the prizes and the actual
14administrative expenses of the Division Department solely
15related to the scratch-off game under this Section.
16 (c) During the time that tickets are sold for the
17Alzheimer's care, support, education, and awareness
18scratch-off game, the Division Department shall not
19unreasonably diminish the efforts devoted to marketing any
20other instant scratch-off lottery game.
21 (d) The Division Department may adopt any rules necessary
22to implement and administer the provisions of this Section.
23(Source: P.A. 101-561, eff. 8-23-19; 101-645, eff. 6-26-20.)
24 (20 ILCS 1605/24) (from Ch. 120, par. 1174)
25 Sec. 24. The State Comptroller shall conduct a preaudit of

SB2254- 98 -LRB102 15486 SMS 20849 b
1all accounts and transactions of the Division Department in
2connection with the operation of the State Lottery under the
3State Comptroller Act, excluding payments issued by the
4Division Department for prizes of $25,000 or less.
5 The Auditor General or a certified public accountant firm
6appointed by him shall conduct an annual post-audit of all
7accounts and transactions of the Division Department in
8connection with the operation of the State Lottery and other
9special post audits as the Auditor General, the Legislative
10Audit Commission, or the General Assembly deems necessary. The
11annual post-audits shall include payments made by lottery
12sales agents of prizes of less than $600 authorized under
13Section 20, and payments made by the Division Department of
14prizes up to $25,000 authorized under Section 20.1. The
15Auditor General or his agent conducting an audit under this
16Act shall have access and authority to examine any and all
17records of the Division Department or the Board, its
18distributing agents and its licensees.
19(Source: P.A. 94-776, eff. 5-19-06.)
20 (20 ILCS 1605/25) (from Ch. 120, par. 1175)
21 Sec. 25. Any party adversely affected by a final order or
22determination of the Director or the Division Board or the
23Department may obtain judicial review, by filing a petition
24for review within 35 days after the entry of the order or other
25final action complained of, pursuant to the provisions of the

SB2254- 99 -LRB102 15486 SMS 20849 b
1Administrative Review Law, as amended and the rules adopted
2pursuant thereto.
3(Source: P.A. 82-783.)
4 (20 ILCS 1605/6 rep.)
5 (20 ILCS 1605/7.6 rep.)
6 Section 110. The Illinois Lottery Law is amended by
7repealing Sections 6 and 7.6.
8 Section 115. The Illinois Horse Racing Act of 1975 is
9amended by changing Sections 2, 2.5, 3.01, 3.04, 3.07, 3.075,
103.080, 3.11, 3.12, 3.13, 3.17, 3.18, 3.19, 3.29, 3.35, 4, 9,
1110, 12, 12.1, 12.2, 13, 14, 14a, 15, 15.1, 15.2, 15.3, 15.4,
1215.5, 16, 18, 19, 19.5, 20, 20.1, 20.5, 21, 23, 24, 25, 26,
1326.9, 27, 27.2, 28, 28.1, 30, 30.5, 31, 31.1, 32, 32.1, 34.3,
1435, 36, 36a, 37, 38, 39, 40, 45, 46, 49, 51, 54.75, 55, and 56
15as follows:
16 (230 ILCS 5/2) (from Ch. 8, par. 37-2)
17 Sec. 2. There is hereby created and established a Division
18of Horse Racing within the Department of Lottery and Gaming an
19Illinois Racing Board which shall have the powers and duties
20specified in this Act, and also the powers necessary and
21proper to enable it to fully and effectively execute all the
22provisions and purposes of this Act. The jurisdiction,
23supervision, powers, and duties of the Division Board shall

SB2254- 100 -LRB102 15486 SMS 20849 b
1extend under this Act to every person who holds or conducts any
2meeting within the State of Illinois where horse racing is
3permitted for any stake, purse or reward.
4(Source: P.A. 89-16, eff. 5-30-95.)
5 (230 ILCS 5/2.5)
6 Sec. 2.5. Separation from Department of Revenue. On the
7effective date of this amendatory Act of the 96th General
8Assembly, all of the powers, duties, assets, liabilities,
9employees, contracts, property, records, pending business, and
10unexpended appropriations of the Department of Revenue related
11to the administration and enforcement of this Act are
12transferred to the former Illinois Racing Board.
13 The status and rights of the transferred employees, and
14the rights of the State of Illinois and its agencies, under the
15Personnel Code and applicable collective bargaining agreements
16or under any pension, retirement, or annuity plan are not
17affected (except as provided in the Illinois Pension Code) by
18that transfer or by any other provision of this amendatory Act
19of the 96th General Assembly.
20(Source: P.A. 96-796, eff. 10-29-09.)
21 (230 ILCS 5/3.01) (from Ch. 8, par. 37-3.01)
22 Sec. 3.01. "Division" means the Division of Horse Racing
23within the Department of Lottery and Gaming "Board" means the
24Illinois Racing Board.

SB2254- 101 -LRB102 15486 SMS 20849 b
1(Source: P.A. 79-1185.)
2 (230 ILCS 5/3.04) (from Ch. 8, par. 37-3.04)
3 Sec. 3.04. "Director of mutuels" means the individual
4representing the Division Board in the supervision and
5verification of the pari-mutuel wagering pool totals for each
6racing day, which verification shall be the basis for
7computing State privilege or pari-mutuel taxes, licensee
8commissions and purses.
9(Source: P.A. 91-40, eff. 6-25-99.)
10 (230 ILCS 5/3.07) (from Ch. 8, par. 37-3.07)
11 Sec. 3.07. "Horse race meeting" or "race meeting" or
12"meeting" shall mean the whole period of time, whether
13consecutive dates or those instances where nonconsecutive
14dates are granted, for which an organization license to race
15has been granted to any one organization licensee by the
16Division Board.
17(Source: P.A. 89-16. eff. 5-30-95.)
18 (230 ILCS 5/3.075)
19 Sec. 3.075. (a) "Host track" means the organization
20licensee (i) conducting live thoroughbred racing between the
21hours of 6:30 a.m. and 6:30 p.m. from the first day to the last
22day of its horse racing meet as awarded by the Division Board
23(including all days within that period when no live racing

SB2254- 102 -LRB102 15486 SMS 20849 b
1occurs), except as otherwise provided in subsections (c) and
2(e) of this Section, or (ii) conducting live standardbred
3racing between the hours of 6:30 p.m. to 6:30 a.m. of the
4following day from the first day to the last day of its horse
5racing meet as awarded by the Division Board (including all
6days within that period when no live racing occurs, except as
7otherwise provided in subsections (b), (d), and (e) of this
8Section); provided that the organization licensee conducts
9live racing no fewer than 5 days per week with no fewer than 9
10races per day, unless a lesser schedule of live racing is the
11result of (1) weather, unsafe track conditions, or other acts
12of God; (2) an agreement between the organization licensee and
13the associations representing the largest number of owners,
14trainers, and standardbred drivers who race horses at that
15organization licensee's race meeting, with the Division's
16Board's consent; or (3) a decision by the Division Board after
17a public hearing (in which the associations representing the
18owners, trainers, jockeys, or standardbred drivers who race
19horses at that organization licensee's race meeting shall
20participate) either at the time racing dates are awarded or
21after those dates are awarded due to changed financial
22circumstances, upon a written petition from the organization
23licensee, accompanied by supporting financial data as
24requested by the Division Board, stating that the organization
25licensee has and will continue to incur significant financial
26losses. No organization licensee conducting its race meeting

SB2254- 103 -LRB102 15486 SMS 20849 b
1in a county bordering the Mississippi River and having a
2population greater than 230,000 may be a host track for its
3race meeting.
4 (b) (Blank).
5 (c) (Blank).
6 (d) Notwithstanding the provisions of subsection (a) of
7this Section and except as otherwise provided in subsection
8(e) of this Section, in the event that 2 organization
9licensees conduct their standardbred race meetings
10concurrently on any date after January 1, 1996, between the
11hours of 6:30 p.m. and 6:30 a.m., the organization licensee
12awarded the most racing dates between 6:30 p.m. and 6:30 a.m.
13during the calendar year in which that concurrent racing
14occurs will be deemed the host track, provided that the 2
15organization licensees collectively conduct live standardbred
16racing between 6:30 p.m. and 6:30 a.m. during the week in which
17concurrent race meetings occur no less than 5 days per week
18with no less than 9 races per day. During each week of the
19calendar year in which 2 organization licensees are conducting
20live standardbred race meetings between 6:30 p.m. and 6:30
21a.m., if there is any day in that week on which only one
22organization licensee is conducting a standardbred race
23meeting between 6:30 p.m. and 6:30 a.m., that organization
24licensee shall be the host track provided that the 2
25organization licensees collectively conduct live standardbred
26racing between 6:30 p.m. and 6:30 a.m. during the week in which

SB2254- 104 -LRB102 15486 SMS 20849 b
1concurrent race meetings occur no less than 5 days per week
2with no less than 9 races per day. During each week of the
3calendar year in which 2 organization licensees are
4concurrently conducting live standardbred race meetings on one
5or more days between 6:30 p.m. and 6:30 a.m., if there is any
6day in that week on which no organization licensee is
7conducting a standardbred race meeting between 6:30 p.m. and
86:30 a.m., the organization licensee conducting a standardbred
9race meeting during that week and time period that has been
10awarded the most racing dates during the calendar year between
116:30 p.m. and 6:30 a.m. shall be the host track, provided that
12the 2 organization licensees collectively conduct live
13standardbred racing between 6:30 p.m. and 6:30 a.m. during the
14week in which concurrent race meetings occur no less than 5
15days per week with no less than 9 races per day. The
16requirement in this subsection (d) that live racing be
17conducted no less than 5 days per week with no less than 9
18races per day shall be subject to exceptions set forth in items
19(1), (2), and (3) of subsection (a) of Section 3.075.
20 (e) During any calendar period in which no organization
21licensee has been awarded a thoroughbred race meeting, the
22host track, between the hours of 6:30 a.m. and 6:30 p.m. of
23such period, shall be an organization licensee determined by
24the Division Board, provided the organization licensee has
25been awarded a thoroughbred race meeting in the current year
26and is eligible to be a host track.

SB2254- 105 -LRB102 15486 SMS 20849 b
1(Source: P.A. 91-40, eff. 6-25-99.)
2 (230 ILCS 5/3.080)
3 Sec. 3.080. "Simulcast program" means the program of
4simultaneously televised horse races, including (i) the signal
5of any out-of-state horse race selected by the host track
6subject to the disapproval of the Division Board, (ii) the
7signals of live racing of all organization licensees, which
8must be included by the host track; and (iii) the signal of
9live racing at the DuQuoin and Springfield State fairs, if
10mandated by the Division Board.
11(Source: P.A. 89-16, eff. 5-30-95.)
12 (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
13 Sec. 3.11. "Organization licensee" means any person
14receiving an organization license from the Division Board to
15conduct a race meeting or meetings. With respect only to
16organization gaming, "organization licensee" includes the
17authorization for an organization gaming license under
18subsection (a) of Section 56 of this Act.
19(Source: P.A. 101-31, eff. 6-28-19.)
20 (230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
21 Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
22system of wagering" means a form of wagering on the outcome of
23horse races in which wagers are made in various denominations

SB2254- 106 -LRB102 15486 SMS 20849 b
1on a horse or horses and all wagers for each race are pooled
2and held by a licensee for distribution in a manner approved by
3the Division Board. "Pari-mutuel system of wagering" shall not
4include wagering on historic races. Wagers may be placed via
5any method or at any location authorized under this Act.
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 5/3.13) (from Ch. 8, par. 37-3.13)
8 Sec. 3.13. "Pari-mutuel pool" or "mutuel pool" or "pool"
9means the total money wagered by patrons and held by a licensee
10under the pari-mutuel system on any horse or horses in a
11particular race. There is a separate mutuel pool for win,
12place and show, and for each of the various forms of betting as
13defined by the rules and regulations of the Division Board.
14Subject to the prior consent of the Division Board, any such
15pool may be supplemented by a licensee in order to guarantee a
16minimum distribution.
17(Source: P.A. 89-16, eff. 5-30-95.)
18 (230 ILCS 5/3.17) (from Ch. 8, par. 37-3.17)
19 Sec. 3.17. "Racing days" (or dates) are days within a
20horse race meeting on which an organization licensee is
21authorized by the Division Board to conduct horse racing.
22(Source: P.A. 89-16, eff. 5-30-95.)
23 (230 ILCS 5/3.18) (from Ch. 8, par. 37-3.18)

SB2254- 107 -LRB102 15486 SMS 20849 b
1 Sec. 3.18. "Director" means the Director of the Division
2of Horse Racing of the Department of Lottery and Gaming.
3"Executive Director" means the executive director of the
4Illinois Racing Board.
5(Source: P.A. 84-531.)
6 (230 ILCS 5/3.19) (from Ch. 8, par. 37-3.19)
7 Sec. 3.19. "Stewards" means the steward or stewards
8representing the Division Board, the steward or stewards
9representing the organization licensee, and any other steward
10or stewards whose duty it shall be to supervise any horse race
11meeting as may be provided for by rules and regulations of the
12Division Board; such rules and regulations shall specify the
13number of stewards to be appointed, the method and manner of
14their appointment, and their powers, authority and duties.
15Stewards shall have the power to administer oaths and
16affirmations.
17(Source: P.A. 83-589.)
18 (230 ILCS 5/3.29)
19 Sec. 3.29. Advance deposit wagering. "Advance deposit
20wagering" means a method of pari-mutuel wagering in which an
21individual may establish an account, deposit money into the
22account, and use the account balance to pay for pari-mutuel
23wagering authorized by this Act. An advance deposit wager may
24be placed in person at a wagering facility or from any other

SB2254- 108 -LRB102 15486 SMS 20849 b
1location via a telephone-type device or any other electronic
2means. Any person who accepts an advance deposit wager who is
3not licensed by the Division Board as an advance deposit
4wagering licensee shall be considered in violation of this Act
5and the Criminal Code of 2012. Any advance deposit wager
6placed in person at a wagering facility shall be deemed to have
7been placed at that wagering facility.
8(Source: P.A. 96-762, eff. 8-25-09; 97-1150, eff. 1-25-13.)
9 (230 ILCS 5/3.35)
10 Sec. 3.35. Organization gaming license. "Organization
11gaming license" means a license issued by the Department of
12Lottery and Gaming Illinois Gaming Board under Section 7.7 of
13the Illinois Gambling Act authorizing gaming pursuant to that
14Section at an organization gaming facility.
15(Source: P.A. 101-31, eff. 6-28-19.)
16 (230 ILCS 5/4) (from Ch. 8, par. 37-4)
17 Sec. 4. The Division Board shall consist of 11 members to
18be appointed by the Governor with the advice and consent of the
19Senate, not more than 6 of whom shall be of the same political
20party, and one of whom shall be designated by the Governor to
21be chairman. Each member shall have a reasonable knowledge of
22harness or thoroughbred racing practices and procedure and of
23the principles of harness or thoroughbred racing and breeding
24and, at the time of his appointment, shall be a resident of the

SB2254- 109 -LRB102 15486 SMS 20849 b
1State of Illinois and shall have resided therein for a period
2of at least 5 years next preceding his appointment and
3qualification and he shall be a qualified voter therein and
4not less than 25 years of age.
5(Source: P.A. 91-798, eff. 7-9-00.)
6 (230 ILCS 5/9) (from Ch. 8, par. 37-9)
7 Sec. 9. The Division Board shall have all powers necessary
8and proper to fully and effectively execute the provisions of
9this Act, including, but not limited to, the following:
10 (a) The Division Board is vested with jurisdiction and
11supervision over all race meetings in this State, over all
12licensees doing business in this State, over all occupation
13licensees, and over all persons on the facilities of any
14licensee. Such jurisdiction shall include the power to issue
15licenses to the Illinois Department of Agriculture authorizing
16the pari-mutuel system of wagering on harness and Quarter
17Horse races held (1) at the Illinois State Fair in Sangamon
18County, and (2) at the DuQuoin State Fair in Perry County. The
19jurisdiction of the Division Board shall also include the
20power to issue licenses to county fairs which are eligible to
21receive funds pursuant to the Agricultural Fair Act, as now or
22hereafter amended, or their agents, authorizing the
23pari-mutuel system of wagering on horse races conducted at the
24county fairs receiving such licenses. Such licenses shall be
25governed by subsection (n) of this Section.

SB2254- 110 -LRB102 15486 SMS 20849 b
1 Upon application, the Division Board shall issue a license
2to the Illinois Department of Agriculture to conduct harness
3and Quarter Horse races at the Illinois State Fair and at the
4DuQuoin State Fairgrounds during the scheduled dates of each
5fair. The Division Board shall not require and the Department
6of Agriculture shall be exempt from the requirements of
7Sections 15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d),
8(e), (e-5), (e-10), (f), (g), and (h) of Section 20, and
9Sections 21, 24 and 25. The Division Board and the Department
10of Agriculture may extend any or all of these exemptions to any
11contractor or agent engaged by the Department of Agriculture
12to conduct its race meetings when the Division Board
13determines that this would best serve the public interest and
14the interest of horse racing.
15 Notwithstanding any provision of law to the contrary, it
16shall be lawful for any licensee to operate pari-mutuel
17wagering or contract with the Department of Agriculture to
18operate pari-mutuel wagering at the DuQuoin State Fairgrounds
19or for the Department to enter into contracts with a licensee,
20employ its owners, employees or agents and employ such other
21occupation licensees as the Department deems necessary in
22connection with race meetings and wagerings.
23 (b) The Division Board is vested with the full power to
24promulgate reasonable rules and regulations for the purpose of
25administering the provisions of this Act and to prescribe
26reasonable rules, regulations and conditions under which all

SB2254- 111 -LRB102 15486 SMS 20849 b
1horse race meetings or wagering in the State shall be
2conducted. Such reasonable rules and regulations are to
3provide for the prevention of practices detrimental to the
4public interest and to promote the best interests of horse
5racing and to impose penalties for violations thereof.
6 (c) The Division Board, and any person or persons to whom
7it delegates this power, is vested with the power to enter the
8facilities and other places of business of any licensee to
9determine whether there has been compliance with the
10provisions of this Act and its rules and regulations.
11 (d) The Division Board, and any person or persons to whom
12it delegates this power, is vested with the authority to
13investigate alleged violations of the provisions of this Act,
14its reasonable rules and regulations, orders and final
15decisions; the Division Board shall take appropriate
16disciplinary action against any licensee or occupation
17licensee for violation thereof or institute appropriate legal
18action for the enforcement thereof.
19 (e) The Division Board, and any person or persons to whom
20it delegates this power, may eject or exclude from any race
21meeting or the facilities of any licensee, or any part
22thereof, any occupation licensee or any other individual whose
23conduct or reputation is such that his presence on those
24facilities may, in the opinion of the Division Board, call
25into question the honesty and integrity of horse racing or
26wagering or interfere with the orderly conduct of horse racing

SB2254- 112 -LRB102 15486 SMS 20849 b
1or wagering; provided, however, that no person shall be
2excluded or ejected from the facilities of any licensee solely
3on the grounds of race, color, creed, national origin,
4ancestry, or sex. The power to eject or exclude an occupation
5licensee or other individual may be exercised for just cause
6by the licensee or the Division Board, subject to subsequent
7hearing by the Division Board as to the propriety of said
8exclusion.
9 (f) The Division Board is vested with the power to
10acquire, establish, maintain and operate (or provide by
11contract to maintain and operate) testing laboratories and
12related facilities, for the purpose of conducting saliva,
13blood, urine and other tests on the horses run or to be run in
14any horse race meeting, including races run at county fairs,
15and to purchase all equipment and supplies deemed necessary or
16desirable in connection with any such testing laboratories and
17related facilities and all such tests.
18 (g) The Division Board may require that the records,
19including financial or other statements of any licensee or any
20person affiliated with the licensee who is involved directly
21or indirectly in the activities of any licensee as regulated
22under this Act to the extent that those financial or other
23statements relate to such activities be kept in such manner as
24prescribed by the Division Board, and that Division Board
25employees shall have access to those records during reasonable
26business hours. Within 120 days of the end of its fiscal year,

SB2254- 113 -LRB102 15486 SMS 20849 b
1each licensee shall transmit to the Division Board an audit of
2the financial transactions and condition of the licensee's
3total operations. All audits shall be conducted by certified
4public accountants. Each certified public accountant must be
5registered in the State of Illinois under the Illinois Public
6Accounting Act. The compensation for each certified public
7accountant shall be paid directly by the licensee to the
8certified public accountant. A licensee shall also submit any
9other financial or related information the Division Board
10deems necessary to effectively administer this Act and all
11rules, regulations, and final decisions promulgated under this
12Act.
13 (h) The Division Board shall name and appoint in the
14manner provided by the rules and regulations of the Division
15Board: an Executive Director; a State director of mutuels;
16State veterinarians and representatives to take saliva, blood,
17urine and other tests on horses; licensing personnel; revenue
18inspectors; and State seasonal employees (excluding admission
19ticket sellers and mutuel clerks). All of those named and
20appointed as provided in this subsection shall serve during
21the pleasure of the Division Board; their compensation shall
22be determined by the Division Board and be paid in the same
23manner as other employees of the Division Board under this
24Act.
25 (i) The Division Board shall require that there shall be 3
26stewards at each horse race meeting, at least 2 of whom shall

SB2254- 114 -LRB102 15486 SMS 20849 b
1be named and appointed by the Board. Stewards appointed or
2approved by the Division Board, while performing duties
3required by this Act or by the Division Board, shall be
4entitled to the same rights and immunities as granted to
5Division Board members and Board employees in Section 10 of
6this Act.
7 (j) The Division Board may discharge any Division Board
8employee who fails or refuses for any reason to comply with the
9rules and regulations of the Division Board, or who, in the
10opinion of the Director Board, is guilty of fraud, dishonesty
11or who is proven to be incompetent. The Division Board shall
12have no right or power to determine who shall be officers,
13directors or employees of any licensee, or their salaries
14except the Division Board may, by rule, require that all or any
15officials or employees in charge of or whose duties relate to
16the actual running of races be approved by the Division Board.
17 (k) The Division Board is vested with the power to appoint
18delegates to execute any of the powers granted to it under this
19Section for the purpose of administering this Act and any
20rules or regulations promulgated in accordance with this Act.
21 (l) The Division Board is vested with the power to impose
22civil penalties of up to $5,000 against an individual and up to
23$10,000 against a licensee for each violation of any provision
24of this Act, any rules adopted by the Division Board, any order
25of the Division Board or any other action which, in the
26Director's Board's discretion, is a detriment or impediment to

SB2254- 115 -LRB102 15486 SMS 20849 b
1horse racing or wagering. Beginning on the date when any
2organization licensee begins conducting gaming pursuant to an
3organization gaming license issued under the Illinois Gambling
4Act, the power granted to the Division Board pursuant to this
5subsection (l) shall authorize the Division Board to impose
6penalties of up to $10,000 against an individual and up to
7$25,000 against a licensee. All such civil penalties shall be
8deposited into the Horse Racing Fund.
9 (m) The Division Board is vested with the power to
10prescribe a form to be used by licensees as an application for
11employment for employees of each licensee.
12 (n) The Division Board shall have the power to issue a
13license to any county fair, or its agent, authorizing the
14conduct of the pari-mutuel system of wagering. The Division
15Board is vested with the full power to promulgate reasonable
16rules, regulations and conditions under which all horse race
17meetings licensed pursuant to this subsection shall be held
18and conducted, including rules, regulations and conditions for
19the conduct of the pari-mutuel system of wagering. The rules,
20regulations and conditions shall provide for the prevention of
21practices detrimental to the public interest and for the best
22interests of horse racing, and shall prescribe penalties for
23violations thereof. Any authority granted the Division Board
24under this Act shall extend to its jurisdiction and
25supervision over county fairs, or their agents, licensed
26pursuant to this subsection. However, the Division Board may

SB2254- 116 -LRB102 15486 SMS 20849 b
1waive any provision of this Act or its rules or regulations
2which would otherwise apply to such county fairs or their
3agents.
4 (o) Whenever the Division Board is authorized or required
5by law to consider some aspect of criminal history record
6information for the purpose of carrying out its statutory
7powers and responsibilities, then, upon request and payment of
8fees in conformance with the requirements of Section 2605-400
9of the Department of State Police Law (20 ILCS 2605/2605-400),
10the Illinois Department of State Police are is authorized to
11furnish, pursuant to positive identification, such information
12contained in State files as is necessary to fulfill the
13request.
14 (p) To insure the convenience, comfort, and wagering
15accessibility of race track patrons, to provide for the
16maximization of State revenue, and to generate increases in
17purse allotments to the horsemen, the Division Board shall
18require any licensee to staff the pari-mutuel department with
19adequate personnel.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 5/10) (from Ch. 8, par. 37-10)
22 Sec. 10. Any Division Board member or Board employee who
23is subject to any civil action arising from any act executed by
24him while serving as a Division Board member or Board employee
25shall be represented by the Attorney General. All costs of

SB2254- 117 -LRB102 15486 SMS 20849 b
1defending such law suit and satisfaction of any judgment
2rendered against a Division Board member or Board employee
3shall be incurred by the Division Board. Any Division Board
4member or Board employee is entitled to the benefit of this
5Section provided the act was committed in good faith.
6(Source: P.A. 79-1185.)
7 (230 ILCS 5/12) (from Ch. 8, par. 37-12)
8 Sec. 12. (a) Board members shall employ under the
9"Personnel Code", as now or hereafter amended, such
10representatives, accountants, clerks, stenographers,
11inspectors, and other employees as may be necessary. No person
12shall be appointed or hold any office or position under the
13Division Board who, or any member of whose family, is:
14 (1) an official of, or has any financial or ownership
15 interest in any licensee or occupation licensee engaged in
16 conducting racing within this State, or,
17 (2) an owner, trainer, jockey, or harness driver of a
18 horse competing at a race meeting under the jurisdiction
19 of the Board.
20 (b) Any employee violating the prohibitions set forth in
21subsection (a) of this Section shall be subject to the
22termination of his or her employment. If the Division Board
23determines that an employee is in violation of subsection (a)
24of this Section and should be discharged, it must observe the
25procedures outlined in the "Personnel Code", as now or

SB2254- 118 -LRB102 15486 SMS 20849 b
1hereafter amended, as they apply to discharge proceedings.
2 (c) No person employed by the Board during the 12 months
3preceding the effective date of this Act shall be terminated
4from employment due to a violation of the prohibitions set
5forth in subsection (a) of this Section.
6(Source: P.A. 89-16, eff. 5-30-95.)
7 (230 ILCS 5/12.1) (from Ch. 8, par. 37-12.1)
8 Sec. 12.1. (a) The General Assembly finds that the
9Illinois Racing Industry does not include a fair proportion of
10minority or female workers.
11 Therefore, the General Assembly urges that the job
12training institutes, trade associations and employers involved
13in the Illinois Horse Racing Industry take affirmative action
14to encourage equal employment opportunity to all workers
15regardless of race, color, creed or sex.
16 Before an organization license, inter-track wagering
17license or inter-track wagering location license can be
18granted, the applicant for any such license shall execute and
19file with the Division Board a good faith affirmative action
20plan to recruit, train and upgrade minorities and females in
21all classifications with the applicant for license. One year
22after issuance of any such license, and each year thereafter,
23the licensee shall file a report with the Division Board
24evidencing and certifying compliance with the originally filed
25affirmative action plan.

SB2254- 119 -LRB102 15486 SMS 20849 b
1 (b) At least 10% of the total amount of all State contracts
2for the infrastructure improvement of any race track grounds
3in this State shall be let to minority-owned businesses or
4women-owned businesses. "State contract", "minority-owned
5business" and "women-owned business" shall have the meanings
6ascribed to them under the Business Enterprise for Minorities,
7Women, and Persons with Disabilities Act.
8(Source: P.A. 100-391, eff. 8-25-17.)
9 (230 ILCS 5/12.2)
10 Sec. 12.2. Business enterprise program.
11 (a) For the purposes of this Section, the terms
12"minority", "minority-owned business", "woman", "women-owned
13business", "person with a disability", and "business owned by
14a person with a disability" have the meanings ascribed to them
15in the Business Enterprise for Minorities, Women, and Persons
16with Disabilities Act.
17 (b) The Division Board shall, by rule, establish goals for
18the award of contracts by each organization licensee or
19inter-track wagering licensee to businesses owned by
20minorities, women, and persons with disabilities, expressed as
21percentages of an organization licensee's or inter-track
22wagering licensee's total dollar amount of contracts awarded
23during each calendar year. Each organization licensee or
24inter-track wagering licensee must make every effort to meet
25the goals established by the Division Board pursuant to this

SB2254- 120 -LRB102 15486 SMS 20849 b
1Section. When setting the goals for the award of contracts,
2the Division Board shall not include contracts where: (1)
3licensees are purchasing goods or services from vendors or
4suppliers or in markets where there are no or a limited number
5of minority-owned businesses, women-owned businesses, or
6businesses owned by persons with disabilities that would be
7sufficient to satisfy the goal; (2) there are no or a limited
8number of suppliers licensed by the Division Board; (3) the
9licensee or its parent company owns a company that provides
10the goods or services; or (4) the goods or services are
11provided to the licensee by a publicly traded company.
12 (c) Each organization licensee or inter-track wagering
13licensee shall file with the Division Board an annual report
14of its utilization of minority-owned businesses, women-owned
15businesses, and businesses owned by persons with disabilities
16during the preceding calendar year. The reports shall include
17a self-evaluation of the efforts of the organization licensee
18or inter-track wagering licensee to meet its goals under this
19Section.
20 (d) The organization licensee or inter-track wagering
21licensee shall have the right to request a waiver from the
22requirements of this Section. The Division Board shall grant
23the waiver where the organization licensee or inter-track
24wagering licensee demonstrates that there has been made a good
25faith effort to comply with the goals for participation by
26minority-owned businesses, women-owned businesses, and

SB2254- 121 -LRB102 15486 SMS 20849 b
1businesses owned by persons with disabilities.
2 (e) If the Division Board determines that its goals and
3policies are not being met by any organization licensee or
4inter-track wagering licensee, then the Division Board may:
5 (1) adopt remedies for such violations; and
6 (2) recommend that the organization licensee or
7 inter-track wagering licensee provide additional
8 opportunities for participation by minority-owned
9 businesses, women-owned businesses, and businesses owned
10 by persons with disabilities; such recommendations may
11 include, but shall not be limited to:
12 (A) assurances of stronger and better focused
13 solicitation efforts to obtain more minority-owned
14 businesses, women-owned businesses, and businesses
15 owned by persons with disabilities as potential
16 sources of supply;
17 (B) division of job or project requirements, when
18 economically feasible, into tasks or quantities to
19 permit participation of minority-owned businesses,
20 women-owned businesses, and businesses owned by
21 persons with disabilities;
22 (C) elimination of extended experience or
23 capitalization requirements, when programmatically
24 feasible, to permit participation of minority-owned
25 businesses, women-owned businesses, and businesses
26 owned by persons with disabilities;

SB2254- 122 -LRB102 15486 SMS 20849 b
1 (D) identification of specific proposed contracts
2 as particularly attractive or appropriate for
3 participation by minority-owned businesses,
4 women-owned businesses, and businesses owned by
5 persons with disabilities, such identification to
6 result from and be coupled with the efforts of items
7 (A) through (C); and
8 (E) implementation of regulations established for
9 the use of the sheltered market process.
10 (f) The Division Board shall file, no later than March 1 of
11each year, an annual report that shall detail the level of
12achievement toward the goals specified in this Section over
13the 3 most recent fiscal years. The annual report shall
14include, but need not be limited to:
15 (1) a summary detailing expenditures subject to the
16 goals, the actual goals specified, and the goals attained
17 by each organization licensee or inter-track wagering
18 licensee;
19 (2) a summary of the number of contracts awarded and
20 the average contract amount by each organization licensee
21 or inter-track wagering licensee;
22 (3) an analysis of the level of overall goal
23 achievement concerning purchases from minority-owned
24 businesses, women-owned businesses, and businesses owned
25 by persons with disabilities;
26 (4) an analysis of the number of minority-owned

SB2254- 123 -LRB102 15486 SMS 20849 b
1 businesses, women-owned businesses, and businesses owned
2 by persons with disabilities that are certified under the
3 program as well as the number of those businesses that
4 received State procurement contracts; and
5 (5) (blank).
6(Source: P.A. 99-78, eff. 7-20-15; 99-891, eff. 1-1-17;
7100-391, eff. 8-25-17.)
8 (230 ILCS 5/13) (from Ch. 8, par. 37-13)
9 Sec. 13. The Director shall serve as the executive officer
10of the Division. executive director shall perform any and all
11duties that the Board shall assign him. The salary of the
12executive director shall be determined by the Board and, in
13addition, he shall be reimbursed for all actual and necessary
14expenses incurred by him in discharge of his official duties.
15The Director executive director shall keep records of all
16proceedings of the Board and shall preserve all records,
17books, documents and other papers belonging to the Division
18Board or entrusted to its care. The Director executive
19director shall devote his full time to the duties of the office
20and shall not hold any other office or employment.
21(Source: P.A. 84-531.)
22 (230 ILCS 5/14) (from Ch. 8, par. 37-14)
23 Sec. 14. (a) (Blank). The Board shall hold regular and
24special meetings at such times and places as may be necessary

SB2254- 124 -LRB102 15486 SMS 20849 b
1to perform properly and effectively all duties required under
2this Act. A majority of the members of the Board shall
3constitute a quorum for the transaction of any business, for
4the performance of any duty, or for the exercise of any power
5which this Act requires the Board members to transact, perform
6or exercise en banc, except that upon order of the Board one of
7the Board members may conduct the hearing provided in Section
816. The Board member conducting such hearing shall have all
9powers and rights granted to the Board in this Act. The record
10made at the hearing shall be reviewed by the Board, or a
11majority thereof, and the findings and decision of the
12majority of the Board shall constitute the order of the Board
13in such case.
14 (b) (Blank). The Board shall obtain a court reporter who
15will be present at each regular and special meeting and
16proceeding and who shall make accurate transcriptions thereof
17except that when in the judgment of the Board an emergency
18situation requires a meeting by teleconference, the executive
19director shall prepare minutes of the meeting indicating the
20date and time of the meeting and which members of the Board
21were present or absent, summarizing all matters proposed,
22deliberated, or decided at the meeting, and indicating the
23results of all votes taken. The public shall be allowed to
24listen to the proceedings of that meeting at all Board branch
25offices.
26 (c) (Blank). The Board shall provide records which are

SB2254- 125 -LRB102 15486 SMS 20849 b
1separate and distinct from the records of any other State
2board or commission. Such records shall be available for
3public inspection and shall accurately reflect all Board
4proceedings.
5 (d) The Division Board shall file a written annual report
6with the Governor on or before March 1 each year and such
7additional reports as the Governor may request. The annual
8report shall include a statement of receipts and disbursements
9by the Division Board, actions taken by the Division Board, a
10report on the industry's progress toward the policy objectives
11established in Section 1.2 of this Act, and any additional
12information and recommendations which the Division Board may
13deem valuable or which the Governor may request.
14 (e) The Division Board shall maintain a branch office on
15the ground of every organization licensee during the
16organization licensee's race meeting, which office shall be
17kept open throughout the time the race meeting is held. The
18Division Board shall designate one of its members, or an
19authorized agent of the Division Board who shall have the
20authority to act for the Division Board, to be in charge of the
21branch office during the time it is required to be kept open.
22(Source: P.A. 91-40, eff. 6-25-99.)
23 (230 ILCS 5/14a) (from Ch. 8, par. 37-14a)
24 Sec. 14a. The Division Board may employ hearing officers
25qualified by professional training or previous experience

SB2254- 126 -LRB102 15486 SMS 20849 b
1according to rules established by the Division Board. The
2Division Board shall also establish rules providing for the
3disqualification of hearing officers for bias or conflict of
4interest. Such hearing officers shall, under the direction of
5the Division Board, take testimony of witnesses, examine
6accounts, records, books, papers and facilities, either by
7holding hearings or making independent investigations, in any
8matter referred to them by the Division Board; and make report
9thereof to the Division Board, and attend at hearings before
10the Director Board when so directed by the Director Board, for
11the purpose of explaining their investigations and the result
12thereof to the Division Board and the parties interested; and
13perform such other duties as the Division Board may direct,
14subject to its orders. The Director Board may make final
15administrative decisions based upon reports presented to it
16and investigations and hearings conducted by hearing officers.
17(Source: P.A. 89-16, eff. 5-30-95.)
18 (230 ILCS 5/15) (from Ch. 8, par. 37-15)
19 Sec. 15. (a) The Division Board shall, in its discretion,
20issue occupation licenses to horse owners, trainers, harness
21drivers, jockeys, agents, apprentices, grooms, stable foremen,
22exercise persons, veterinarians, valets, blacksmiths,
23concessionaires and others designated by the Division Board
24whose work, in whole or in part, is conducted upon facilities
25within the State. Such occupation licenses will be obtained

SB2254- 127 -LRB102 15486 SMS 20849 b
1prior to the persons engaging in their vocation upon such
2facilities. The Division Board shall not license pari-mutuel
3clerks, parking attendants, security guards and employees of
4concessionaires. No occupation license shall be required of
5any person who works at facilities within this State as a
6pari-mutuel clerk, parking attendant, security guard or as an
7employee of a concessionaire. Concessionaires of the Illinois
8State Fair and DuQuoin State Fair and employees of the
9Illinois Department of Agriculture shall not be required to
10obtain an occupation license by the Division Board.
11 (b) Each application for an occupation license shall be on
12forms prescribed by the Division Board. Such license, when
13issued, shall be for the period ending December 31 of each
14year, except that the Division Board in its discretion may
15grant 3-year licenses. The application shall be accompanied by
16a fee of not more than $25 per year or, in the case of 3-year
17occupation license applications, a fee of not more than $60.
18Each applicant shall set forth in the application his full
19name and address, and if he had been issued prior occupation
20licenses or has been licensed in any other state under any
21other name, such name, his age, whether or not a permit or
22license issued to him in any other state has been suspended or
23revoked and if so whether such suspension or revocation is in
24effect at the time of the application, and such other
25information as the Division Board may require. Fees for
26registration of stable names shall not exceed $50.00.

SB2254- 128 -LRB102 15486 SMS 20849 b
1Beginning on the date when any organization licensee begins
2conducting gaming pursuant to an organization gaming license
3issued under the Illinois Gambling Act, the fee for
4registration of stable names shall not exceed $150, and the
5application fee for an occupation license shall not exceed
6$75, per year or, in the case of a 3-year occupation license
7application, the fee shall not exceed $180.
8 (c) The Division Board may in its discretion refuse an
9occupation license to any person:
10 (1) who has been convicted of a crime;
11 (2) who is unqualified to perform the duties required
12 of such applicant;
13 (3) who fails to disclose or states falsely any
14 information called for in the application;
15 (4) who has been found guilty of a violation of this
16 Act or of the rules and regulations of the Division Board;
17 or
18 (5) whose license or permit has been suspended,
19 revoked or denied for just cause in any other state.
20 (d) The Division Board may suspend or revoke any
21occupation license:
22 (1) for violation of any of the provisions of this
23 Act; or
24 (2) for violation of any of the rules or regulations
25 of the Division Board; or
26 (3) for any cause which, if known to the Division

SB2254- 129 -LRB102 15486 SMS 20849 b
1 Board, would have justified the Division Board in refusing
2 to issue such occupation license; or
3 (4) for any other just cause.
4 (e) Each applicant shall submit his or her fingerprints
5to the Department of State Police in the form and manner
6prescribed by the Department of State Police. These
7fingerprints shall be checked against the fingerprint records
8now and hereafter filed in the Department of State Police and
9Federal Bureau of Investigation criminal history records
10databases. The Illinois Department of State Police shall
11charge a fee for conducting the criminal history records
12check, which shall be deposited in the State Police Services
13Fund and shall not exceed the actual cost of the records check.
14The Illinois Department of State Police shall furnish,
15pursuant to positive identification, records of conviction to
16the Division Board. Each applicant for licensure shall submit
17with his occupation license application, on forms provided by
18the Division Board, 2 sets of his fingerprints. All such
19applicants shall appear in person at the location designated
20by the Division Board for the purpose of submitting such sets
21of fingerprints; however, with the prior approval of a State
22steward, an applicant may have such sets of fingerprints taken
23by an official law enforcement agency and submitted to the
24Division Board.
25 (f) The Division Board may, in its discretion, issue an
26occupation license without submission of fingerprints if an

SB2254- 130 -LRB102 15486 SMS 20849 b
1applicant has been duly licensed in another recognized racing
2jurisdiction after submitting fingerprints that were subjected
3to a Federal Bureau of Investigation criminal history
4background check in that jurisdiction.
5 (g) Beginning on the date when any organization licensee
6begins conducting gaming pursuant to an organization gaming
7license issued under the Illinois Gambling Act, the Division
8Board may charge each applicant a reasonable nonrefundable fee
9to defray the costs associated with the background
10investigation conducted by the Division Board. This fee shall
11be exclusive of any other fee or fees charged in connection
12with an application for and, if applicable, the issuance of,
13an organization gaming license. If the costs of the
14investigation exceed the amount of the fee charged, the
15Division Board shall immediately notify the applicant of the
16additional amount owed, payment of which must be submitted to
17the Division Board within 7 days after such notification. All
18information, records, interviews, reports, statements,
19memoranda, or other data supplied to or used by the Division
20Board in the course of its review or investigation of an
21applicant for a license or renewal under this Act shall be
22privileged, strictly confidential, and shall be used only for
23the purpose of evaluating an applicant for a license or a
24renewal. Such information, records, interviews, reports,
25statements, memoranda, or other data shall not be admissible
26as evidence, nor discoverable, in any action of any kind in any

SB2254- 131 -LRB102 15486 SMS 20849 b
1court or before any tribunal, board, agency, or person, except
2for any action deemed necessary by the Division Board.
3(Source: P.A. 101-31, eff. 6-28-19.)
4 (230 ILCS 5/15.1) (from Ch. 8, par. 37-15.1)
5 Sec. 15.1. Upon collection of the fee accompanying the
6application for an occupation license, the Division Board
7shall be authorized to make daily temporary deposits of the
8fees, for a period not to exceed 7 days, with the horsemen's
9bookkeeper at a race meeting. The horsemen's bookkeeper shall
10issue a check, payable to the order of the Division of Horse
11Racing Illinois Racing Board, for monies deposited under this
12Section within 24 hours of receipt of the monies. Provided
13however, upon the issuance of the check by the horsemen's
14bookkeeper the check shall be deposited into the Horse Racing
15Fund.
16(Source: P.A. 97-1060, eff. 8-24-12.)
17 (230 ILCS 5/15.2) (from Ch. 8, par. 37-15.2)
18 Sec. 15.2. (a) No pari-mutuel clerk, parking attendant or
19security guard employed by a licensee at a wagering facility
20shall commit any of the following acts: theft; fraud; wagering
21during the course of employment; touting; bookmaking; or any
22other act which is detrimental to the best interests of racing
23in Illinois. For purposes of this Section:
24 (1) "Theft" means the act of knowingly:

SB2254- 132 -LRB102 15486 SMS 20849 b
1 (A) obtaining or exerting unauthorized control
2 over State revenue or revenue of a licensee; or
3 (B) by deception obtaining control over patron
4 dollars.
5 (2) "Fraud" means the act of knowingly providing
6 false, misleading or deceptive information to a federal,
7 State or local governmental body.
8 (3) "Wagering" means the act of placing a wager at a
9 wagering facility on the outcome of a horse race under the
10 jurisdiction of the Division Board by a pari-mutuel clerk
11 during the course of employment.
12 (4) "Touting" means the act of soliciting anything of
13 value in exchange for information regarding the outcome of
14 a horse race on which wagers are made at a wagering
15 facility under the jurisdiction of the Division Board.
16 (5) "Bookmaking" means the act of accepting a wager
17 from an individual with the intent to withhold the wager
18 from being placed by the individual at a wagering
19 facility.
20 (b) A licensee, or occupation licensee upon receiving
21information that a pari-mutuel clerk, parking attendant or
22security guard in his employ has been accused of committing
23any act prohibited by subsection (a) of this Section shall:
24 (1) give immediate written notice of such accusation
25 to the stewards of the race meeting and to the accused
26 pari-mutuel clerk, parking attendant or security guard,

SB2254- 133 -LRB102 15486 SMS 20849 b
1 and
2 (2) give written notice of such accusation within a
3 reasonable time to the Division Board.
4 The Division Board may impose a civil penalty authorized
5by subsection (l) of Section 9 of this Act against a licensee
6or occupation licensee who fails to give any notice required
7by this subsection.
8 (c) Upon receiving the notice required by subsection (b)
9of this Section the stewards shall conduct an inquiry into the
10matter.
11 If the stewards determine that the accused has committed
12any of the acts prohibited by subsection (a) of this Section,
13they may exclude the accused or declare that person ineligible
14for employment at any pari-mutuel race meeting or wagering
15facility under the jurisdiction of the Division Board. A
16person so excluded or declared ineligible for employment may
17request a hearing before the Division Board as provided in
18Section 16 of this Act.
19(Source: P.A. 89-16, eff. 5-30-95.)
20 (230 ILCS 5/15.3) (from Ch. 8, par. 37-15.3)
21 Sec. 15.3. Any person who makes application for an
22employment position as a pari-mutuel clerk, parking attendant
23or security guard with a licensee, where such position would
24involve work conducted in whole or in part at a wagering
25facility within this State shall be required to fill out an

SB2254- 134 -LRB102 15486 SMS 20849 b
1employment application form prescribed by the Division
2Illinois Racing Board. Such application form shall require the
3applicant to state the following:
4 (a) whether the applicant has ever been convicted of a
5felony offense under the laws of this State, the laws of any
6other state, or the laws of the United States;
7 (b) whether the applicant has ever been convicted of a
8misdemeanor offense under the laws of this State, the laws of
9any other state, or the laws of the United States, which
10offense involved dishonesty, fraud, deception or moral
11turpitude;
12 (c) whether the applicant has ever been excluded by the
13Division Board or any other jurisdiction where wagering is
14conducted;
15 (d) whether the applicant has ever committed an act of
16touting, bookmaking, theft, or fraud, as those terms are
17defined in Section 15.2 of this Act; and
18 (e) any other information that the Division Board may deem
19necessary to carry out the purposes of Public Act 84-1468.
20 The applicant shall sign the application form and certify
21that, under the penalties of perjury of this State, the
22statements set forth in the application form are true and
23correct.
24 The licensee shall, upon its decision to hire the
25applicant, forward a copy of the application form to the
26Division Board. The Division Board shall review the

SB2254- 135 -LRB102 15486 SMS 20849 b
1application form immediately upon receipt.
2 The Division's Board's review of the application form
3shall include an inquiry as to whether the applicant has been
4accused of any of the acts prohibited under Section 15.2 of
5this Act and, if the Division Board does find that the
6applicant has been so accused, it shall conduct an
7investigation to determine whether, by a standard of
8reasonable certainty, the applicant committed the act. If the
9Division Board determines that the applicant did commit any of
10the acts prohibited under that Section, it may exclude the
11applicant or declare that the applicant is ineligible for
12employment.
13 The Division Board may declare an applicant ineligible for
14employment if it finds that the applicant has been previously
15excluded by the Division Board. In making such a declaration,
16the Division Board shall consider: (a) the reasons the
17applicant had been previously excluded; (b) the period of time
18that has elapsed since the applicant was excluded; and (c) how
19the previous exclusion relates to the applicant's ability to
20perform the duties of the employment position for which he or
21she is applying.
22 When the Division Board excludes an applicant or declares
23an applicant ineligible for employment, it shall immediately
24notify such applicant and the licensee of its action. A person
25so excluded or declared ineligible for employment may request
26a hearing before the Division Board in accordance with Section

SB2254- 136 -LRB102 15486 SMS 20849 b
116 of this Act.
2 No licensee may employ a pari-mutuel clerk, parking
3attendant or security guard at a wagering facility after such
4licensee has been notified that such person has been declared
5ineligible by the Division Board.
6 Nothing herein shall be construed to limit the Division's
7Board's exclusionary authority under Section 16.
8 Sections 15.2 and 15.3 of this Act shall apply to any
9person who holds an employment position as a pari-mutuel
10clerk, parking attendant, or security guard subsequent to July
111, 1987 with a licensee. All such employees employed prior to
12July 1, 1987 shall be required to file employment applications
13with the Division Board, and the information required under
14subparagraphs (a) through (e) of this Section pertaining to
15conduct or activities prior to July 1, 1987 shall only be used
16by the Division Board in its determination to exclude an
17applicant or its declaration that an applicant is ineligible
18for employment based on conduct that occurs after July 1,
191987.
20(Source: P.A. 89-16, eff. 5-30-95.)
21 (230 ILCS 5/15.4) (from Ch. 8, par. 37-15.4)
22 Sec. 15.4. The Division Board shall take disciplinary
23action authorized by subsection (d) of Section 9 of this Act or
24impose a civil penalty authorized by subsection (1) of Section
259 of this Act against any licensee which requires, as a

SB2254- 137 -LRB102 15486 SMS 20849 b
1condition precedent to employment, membership in any labor
2organization or association. Nothing in this Section shall
3prohibit an agreement between a labor organization or
4association and any such licensee which requires that, once
5employed, an employee be a member of the labor organization or
6association.
7(Source: P.A. 89-16, eff. 5-30-95.)
8 (230 ILCS 5/15.5)
9 Sec. 15.5. Labor agreements.
10 (a) This Section applies to each entity subject to this
11Act that has at least 10 employees on average over the 12
12months preceding application for an organization gaming
13license.
14 (b) Before an organization gaming license may be granted
15or renewed, the applicant or licensee seeking an organization
16gaming license or renewal shall:
17 (1) Enter into, and observe, the terms of a collective
18 bargaining agreement with any labor organization seeking
19 to represent a majority of the licensee's employees in a
20 bargaining unit consisting of all non-supervisory and
21 non-management employees in the classifications identified
22 by the labor organization. Any new employees hired by the
23 licensee who perform work substantially similar to current
24 employees in an existing bargaining unit already
25 represented by a labor organization at the facility shall

SB2254- 138 -LRB102 15486 SMS 20849 b
1 be incorporated into that existing bargaining unit.
2 (2) Upon written notice by a labor organization of its
3 desire to represent employees in a designated bargaining
4 unit, the licensee shall:
5 (A) provide the names, classifications, and home
6 addresses of each and every employee in the identified
7 bargaining unit;
8 (B) refrain from expressing any views on the
9 question whether its employees should be represented
10 by a labor organization;
11 (C) refrain from restraining or coercing its
12 employees in choosing to be represented or not
13 represented by a labor organization; and
14 (D) allow designated representatives of the labor
15 organization access to its non-work areas for the
16 purpose of meeting privately with its employees during
17 non-working times.
18 (3) Upon a showing of majority interest, to be
19 certified through card check by the Federal Mediation and
20 Conciliation Service or from a designated arbitrator from
21 a permanent panel of arbitrators appointed by the Division
22 Illinois Racing Board, the licensee and the labor
23 organization shall immediately enter into negotiations for
24 a collective bargaining agreement.
25 (4) If the parties are unable to conclude a labor
26 agreement within 60 days following the date of

SB2254- 139 -LRB102 15486 SMS 20849 b
1 certification, the terms of the agreement shall be set by
2 an arbitrator jointly selected by the parties from a panel
3 of arbitrators designated by the Division Illinois Racing
4 Board, who shall issue a final and binding award within
5 120 days after the date of certification, if the parties
6 fail to conclude an agreement by that date. Except with
7 regard to the minimum requirements in paragraph (5), the
8 arbitrator shall be guided by the terms of labor
9 agreements covering the same or similar classifications of
10 employees within 100 miles of the facility or facilities
11 for which the agreement is negotiated. The arbitrator
12 shall also resolve all disputes regarding the scope and
13 composition of the bargaining unit covered under the labor
14 agreement. The licensee and the labor organization shall
15 share equally the expenses of the arbitrator. No labor
16 agreement shall cover employees in a bargaining unit for
17 which another labor organization has been certified as a
18 bargaining representative under this Act and that
19 continues to actively represent such employees.
20 (5) All labor agreements required under this Section
21 shall, at a minimum, include a:
22 (A) term of at least 3 years;
23 (B) prohibition on strikes or other work stoppages
24 by the labor organization and the represented
25 employees during the term of the labor agreement; and
26 (C) restriction on subcontracting any work

SB2254- 140 -LRB102 15486 SMS 20849 b
1 performed on or about the licensee's premises as part
2 of its normal operations except by mutual agreement
3 with the labor organization, and then only to a person
4 or firm that is signatory to a labor agreement with a
5 labor organization that has indicated its interest in
6 representing the employees of the subcontractor,
7 provided, the subcontractor's employees are not
8 lawfully represented by another labor organization.
9 (6) A copy of the fully executed labor agreement shall
10 be submitted to the Division Illinois Racing Board prior
11 to the issuance or renewal of any organization gaming
12 license required under this Act.
13 (c) Upon the expiration of a labor agreement required
14under this Section, the parties shall negotiate a successor
15agreement under the procedures set forth in paragraphs (4) and
16(5) of subsection (b), except that the negotiation and
17arbitration procedures shall commence upon the last effective
18day of the expiring labor agreement.
19 (d) The provisions of this Section, except for paragraph
20(2) of subsection (b), do not apply to any entity that is
21covered, or subsequently becomes covered, under the National
22Labor Relations Act, 29 U.S.C. 151 et seq. However, nothing in
23this Act shall affect or diminish the validity and
24enforceability of any collective bargaining agreement entered
25into during the period that this Act applies.
26(Source: P.A. 101-651, eff. 8-7-20.)

SB2254- 141 -LRB102 15486 SMS 20849 b
1 (230 ILCS 5/16) (from Ch. 8, par. 37-16)
2 Sec. 16. (a) The Division Board shall, in accordance with
3Section 15, have the power to revoke or suspend an occupation
4license, and the steward or judges at a race meeting shall have
5the power to suspend an occupation license of any horse owner,
6trainer, harness driver, jockey, agent, apprentice, groom,
7stable foreman, exercise boy, veterinarian, valet, blacksmith
8or concessionaire whose work, in whole or in part, is
9conducted at facilities within the State, or to determine the
10eligibility for employment at a wagering facility of a
11pari-mutuel clerk, parking attendant or security guard. The
12Illinois Administrative Procedure Act shall not apply to the
13actions of the Division Board or of the stewards or judges at a
14race meeting, and those actions shall instead be subject to
15the procedures outlined in subsections (b) through (e) of this
16Section.
17 The Division Board may refuse to issue or may suspend the
18occupation license of any person who fails to file a return, or
19to pay the tax, penalty or interest shown in a filed return, or
20to pay any final assessment of tax, penalty or interest, as
21required by any tax Act administered by the Illinois
22Department of Revenue, until such time as the requirements of
23any such tax Act are satisfied.
24 (b) In the event the Division Board, for violation of the
25provisions of this Act or the rules and regulations of the

SB2254- 142 -LRB102 15486 SMS 20849 b
1Division Board or other just cause, refuses, revokes or
2suspends an occupation license, or a steward or the judges at
3any race meeting suspend an occupation license of any horse
4owner, trainer, harness driver, jockey, agent, apprentice,
5groom, stable foreman, exercise person, veterinarian, valet,
6blacksmith, concessionaire or other occupation licensee whose
7work, in whole or in part is conducted at facilities within the
8State and owned by a licensee, or declare a person ineligible
9for employment, then the occupation license of the person or
10his eligibility for employment shall be suspended pending a
11hearing before the Director of the Board.
12 (c) The person affected by such action at any race meeting
13may request a hearing before the Director Board within 5 days
14after receipt of notice of the suspension from the Division
15Board, the steward or the judges at any race meeting. The
16hearing shall be held by the Director Board within 7 days after
17such request has been received by the Director Board. Any
18action of a steward or the judges with respect to any
19occupation license or eligibility for employment may be heard
20before the Director on his or her by the Board on its own
21motion by giving the aggrieved party at least 3 days' notice in
22writing of the time and place of the hearing.
23 (d) All hearings before the Director by the Board under
24this Section shall be held at such place in the State as the
25Director Board may designate and any notice provided for shall
26be served by mailing it postage prepaid by certified mail to

SB2254- 143 -LRB102 15486 SMS 20849 b
1the parties affected. Any such notice so mailed is deemed to
2have been served on the business day next following the date of
3such mailing.
4 (e) The Director Board in conducting such hearings shall
5not be bound by technical rules of evidence, but all evidence
6offered before the Director Board shall be reduced to writing
7and shall, with petition and exhibits, if any, and the
8findings of the Director Board, be permanently preserved and
9constitute the record of the Director Board in such case. The
10Director Board may require that appellants bear reasonable
11costs of the production of hearing transcripts. Any of the
12parties affected in such hearing may be represented by counsel
13and introduce evidence. At the request of the Director Board,
14the Attorney General shall assist and participate in the
15conduct of such hearing.
16 (f) The Director Every member of the Board has the power to
17administer oaths and affirmations, certify all official acts,
18issue subpoenas, compel the attendance and testimony of
19witnesses and the production of papers, books, accounts, and
20documents.
21 (g) Any person who is served with a subpoena (issued by the
22Director Board or any member thereof) to appear and testify,
23or to produce books, papers, accounts or documents in the
24course of an inquiry or hearing conducted under this Act, and
25who refuses or neglects to appear or to testify or to produce
26books, papers, accounts and documents relative to the hearings

SB2254- 144 -LRB102 15486 SMS 20849 b
1as commanded in such subpoenas, may be punished by the Circuit
2Court in the county where the violation is committed in the
3same manner as the Circuit Court may punish such refusal or
4neglect in a case filed in court.
5 (h) In case of disobedience to a subpoena, the Director
6Board may petition the Circuit Court in the county where the
7violation was committed for an order requiring the attendance
8and testimony of witnesses or the production of documentary
9evidence or both. A copy of such petition shall be served by
10personal notice or by registered or certified mail upon the
11person who has failed to obey that subpoena, and such person
12shall be advised in writing that a hearing upon the petition
13will be requested in a court room to be designated in that
14notice before the judge occupying the courtroom on a specified
15date and at a specified time.
16 (i) The court, upon the filing of such a petition, may
17order the person refusing to obey the subpoena to appear
18before the Director Board at a designated time, or to there
19produce documentary evidence, if so ordered, or to give
20evidence relating to the subject matter of the hearing. Any
21failure to obey such order of the Circuit Court may be punished
22by that court as a civil or criminal contempt upon itself.
23 (j) The Director Board, any member thereof or any
24applicant may, in connection with any hearing before the
25Director Board, cause the deposition of witnesses within or
26without the State to be taken on oral or written

SB2254- 145 -LRB102 15486 SMS 20849 b
1interrogatories in the manner prescribed for depositions in
2the courts of this State.
3 (k) At the conclusion of such hearing, the Director shall
4make his or her Board shall make its findings which shall be
5the basis of the refusal, suspension or revocation of the
6occupation license or other action taken by the Division
7Board. Such findings and the action of the Director Board
8shall be final. However, the action of the Director Board and
9the propriety thereof are subject to review under Section 46.
10(Source: P.A. 89-16, eff. 5-30-95.)
11 (230 ILCS 5/18) (from Ch. 8, par. 37-18)
12 Sec. 18. (a) Together with its application, each applicant
13for racing dates shall deliver to the Division Board a
14certified check or bank draft payable to the order of the
15Division Board for $1,000. In the event the applicant applies
16for racing dates in 2 or 3 successive calendar years as
17provided in subsection (b) of Section 21, the fee shall be
18$2,000. Filing fees shall not be refunded in the event the
19application is denied. Beginning on the date when any
20organization licensee begins conducting gaming pursuant to an
21organization gaming license issued under the Illinois Gambling
22Act, the application fee for racing dates imposed by this
23subsection (a) shall be $10,000 and the application fee for
24racing dates in 2 or 3 successive calendar years as provided in
25subsection (b) of Section 21 shall be $20,000. All filing fees

SB2254- 146 -LRB102 15486 SMS 20849 b
1shall be deposited into the Horse Racing Fund.
2 (b) In addition to the filing fee imposed by subsection
3(a) and the fees provided in subsection (j) of Section 20, each
4organization licensee shall pay a license fee of $100 for each
5racing program on which its daily pari-mutuel handle is
6$400,000 or more but less than $700,000, and a license fee of
7$200 for each racing program on which its daily pari-mutuel
8handle is $700,000 or more. The additional fees required to be
9paid under this Section by this amendatory Act of 1982 shall be
10remitted by the organization licensee to the Division Illinois
11Racing Board with each day's graduated privilege tax or
12pari-mutuel tax and breakage as provided under Section 27.
13Beginning on the date when any organization licensee begins
14conducting gaming pursuant to an organization gaming license
15issued under the Illinois Gambling Act, the license fee
16imposed by this subsection (b) shall be $200 for each racing
17program on which the organization licensee's daily pari-mutuel
18handle is $100,000 or more, but less than $400,000, and the
19license fee imposed by this subsection (b) shall be $400 for
20each racing program on which the organization licensee's daily
21pari-mutuel handle is $400,000 or more.
22 (c) Sections 11-42-1, 11-42-5, and 11-54-1 of the Illinois
23Municipal Code shall not apply to any license under this Act.
24(Source: P.A. 101-31, eff. 6-28-19.)
25 (230 ILCS 5/19) (from Ch. 8, par. 37-19)

SB2254- 147 -LRB102 15486 SMS 20849 b
1 Sec. 19. (a) No organization license may be granted to
2conduct a horse race meeting:
3 (1) except as provided in subsection (c) of Section 21
4 of this Act, to any person at any place within 35 miles of
5 any other place licensed by the Division Board to hold a
6 race meeting on the same date during the same hours, the
7 mileage measurement used in this subsection (a) shall be
8 certified to the Division Board by the Bureau of Systems
9 and Services in the Illinois Department of Transportation
10 as the most commonly used public way of vehicular travel;
11 (2) to any person in default in the payment of any
12 obligation or debt due the State under this Act, provided
13 no applicant shall be deemed in default in the payment of
14 any obligation or debt due to the State under this Act as
15 long as there is pending a hearing of any kind relevant to
16 such matter;
17 (3) to any person who has been convicted of the
18 violation of any law of the United States or any State law
19 which provided as all or part of its penalty imprisonment
20 in any penal institution; to any person against whom there
21 is pending a Federal or State criminal charge; to any
22 person who is or has been connected with or engaged in the
23 operation of any illegal business; to any person who does
24 not enjoy a general reputation in his community of being
25 an honest, upright, law-abiding person; provided that none
26 of the matters set forth in this subparagraph (3) shall

SB2254- 148 -LRB102 15486 SMS 20849 b
1 make any person ineligible to be granted an organization
2 license if the Division Board determines, based on
3 circumstances of any such case, that the granting of a
4 license would not be detrimental to the interests of horse
5 racing and of the public;
6 (4) to any person who does not at the time of
7 application for the organization license own or have a
8 contract or lease for the possession of a finished race
9 track suitable for the type of racing intended to be held
10 by the applicant and for the accommodation of the public.
11 (b) (Blank).
12 (c) If any person is ineligible to receive an organization
13license because of any of the matters set forth in subsection
14(a) (2) or subsection (a) (3) of this Section, any other or
15separate person that either (i) controls, directly or
16indirectly, such ineligible person or (ii) is controlled,
17directly or indirectly, by such ineligible person or by a
18person which controls, directly or indirectly, such ineligible
19person shall also be ineligible.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 5/19.5)
22 Sec. 19.5. Standardbred racetrack in Cook County.
23Notwithstanding anything in this Act to the contrary, in
24addition to organization licenses issued by the Division Board
25on the effective date of this amendatory Act of the 101st

SB2254- 149 -LRB102 15486 SMS 20849 b
1General Assembly, the Division Board shall issue an
2organization license limited to standardbred racing to a
3racetrack located in one of the following townships of Cook
4County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
5Worth. This additional organization license shall not be
6issued within a 35-mile radius of another organization license
7issued by the former Illinois Racing Board on the effective
8date of this amendatory Act of the 101st General Assembly,
9unless the person having operating control of such racetrack
10has given written consent to the organization licensee
11applicant, which consent must be filed with the Division Board
12at or prior to the time application is made. The organization
13license shall be granted upon application, and the licensee
14shall have all of the current and future rights of existing
15Illinois racetracks, including, but not limited to, the
16ability to obtain an inter-track wagering license, the ability
17to obtain inter-track wagering location licenses, the ability
18to obtain an organization gaming license pursuant to the
19Illinois Gambling Act with 1,200 gaming positions, and the
20ability to offer Internet wagering on horse racing.
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 5/20) (from Ch. 8, par. 37-20)
23 Sec. 20. (a) Any person desiring to conduct a horse race
24meeting may apply to the Division Board for an organization
25license. The application shall be made on a form prescribed

SB2254- 150 -LRB102 15486 SMS 20849 b
1and furnished by the Division Board. The application shall
2specify:
3 (1) the dates on which it intends to conduct the horse
4 race meeting, which dates shall be provided under Section
5 21;
6 (2) the hours of each racing day between which it
7 intends to hold or conduct horse racing at such meeting;
8 (3) the location where it proposes to conduct the
9 meeting; and
10 (4) any other information the Division Board may
11 reasonably require.
12 (b) A separate application for an organization license
13shall be filed for each horse race meeting which such person
14proposes to hold. Any such application, if made by an
15individual, or by any individual as trustee, shall be signed
16and verified under oath by such individual. If the application
17is made by individuals, then it shall be signed and verified
18under oath by at least 2 of the individuals; if the application
19is made by a partnership, an association, a corporation, a
20corporate trustee, a limited liability company, or any other
21entity, it shall be signed by an authorized officer, a
22partner, a member, or a manager, as the case may be, of the
23entity.
24 (c) The application shall specify:
25 (1) the name of the persons, association, trust, or
26 corporation making such application;

SB2254- 151 -LRB102 15486 SMS 20849 b
1 (2) the principal address of the applicant;
2 (3) if the applicant is a trustee, the names and
3 addresses of the beneficiaries; if the applicant is a
4 corporation, the names and addresses of all officers,
5 stockholders and directors; or if such stockholders hold
6 stock as a nominee or fiduciary, the names and addresses
7 of the parties who are the beneficial owners thereof or
8 who are beneficially interested therein; if the applicant
9 is a partnership, the names and addresses of all partners,
10 general or limited; if the applicant is a limited
11 liability company, the names and addresses of the manager
12 and members; and if the applicant is any other entity, the
13 names and addresses of all officers or other authorized
14 persons of the entity.
15 (d) The applicant shall execute and file with the Division
16Board a good faith affirmative action plan to recruit, train,
17and upgrade minorities in all classifications within the
18association.
19 (e) With such application there shall be delivered to the
20Division Board a certified check or bank draft payable to the
21order of the Division Board for an amount equal to $1,000. All
22applications for the issuance of an organization license shall
23be filed with the Division Board before August 1 of the year
24prior to the year for which application is made and shall be
25acted upon by the Division Board at a meeting to be held on
26such date as shall be fixed by the Division Board during the

SB2254- 152 -LRB102 15486 SMS 20849 b
1last 15 days of September of such prior year. At such meeting,
2the Division Board shall announce the award of the racing
3meets, live racing schedule, and designation of host track to
4the applicants and its approval or disapproval of each
5application. No announcement shall be considered binding until
6a formal order is executed by the Division Board, which shall
7be executed no later than October 15 of that prior year. Absent
8the agreement of the affected organization licensees, the
9Division Board shall not grant overlapping race meetings to 2
10or more tracks that are within 100 miles of each other to
11conduct the thoroughbred racing.
12 (e-1) The Division Board shall award standardbred racing
13dates to organization licensees with an organization gaming
14license pursuant to the following schedule:
15 (1) For the first calendar year of operation of
16 gambling games by an organization gaming licensee under
17 this amendatory Act of the 101st General Assembly, when a
18 single entity requests standardbred racing dates, the
19 Division Board shall award no fewer than 100 days of
20 racing. The 100-day requirement may be reduced to no fewer
21 than 80 days if no dates are requested for the first 3
22 months of a calendar year. If more than one entity
23 requests standardbred racing dates, the Division Board
24 shall award no fewer than 140 days of racing between the
25 applicants.
26 (2) For the second calendar year of operation of

SB2254- 153 -LRB102 15486 SMS 20849 b
1 gambling games by an organization gaming licensee under
2 this amendatory Act of the 101st General Assembly, when a
3 single entity requests standardbred racing dates, the
4 Division Board shall award no fewer than 100 days of
5 racing. The 100-day requirement may be reduced to no fewer
6 than 80 days if no dates are requested for the first 3
7 months of a calendar year. If more than one entity
8 requests standardbred racing dates, the Division Board
9 shall award no fewer than 160 days of racing between the
10 applicants.
11 (3) For the third calendar year of operation of
12 gambling games by an organization gaming licensee under
13 this amendatory Act of the 101st General Assembly, and
14 each calendar year thereafter, when a single entity
15 requests standardbred racing dates, the Division Board
16 shall award no fewer than 120 days of racing. The 120-day
17 requirement may be reduced to no fewer than 100 days if no
18 dates are requested for the first 3 months of a calendar
19 year. If more than one entity requests standardbred racing
20 dates, the Division Board shall award no fewer than 200
21 days of racing between the applicants.
22 An organization licensee shall apply for racing dates
23pursuant to this subsection (e-1). In awarding racing dates
24under this subsection (e-1), the Division Board shall have the
25discretion to allocate those standardbred racing dates among
26these organization licensees.

SB2254- 154 -LRB102 15486 SMS 20849 b
1 (e-2) The Division Board shall award thoroughbred racing
2days to Cook County organization licensees pursuant to the
3following schedule:
4 (1) During the first year in which only one
5 organization licensee is awarded an organization gaming
6 license, the Division Board shall award no fewer than 110
7 days of racing.
8 During the second year in which only one organization
9 licensee is awarded an organization gaming license, the
10 Division Board shall award no fewer than 115 racing days.
11 During the third year and every year thereafter, in
12 which only one organization licensee is awarded an
13 organization gaming license, the Division Board shall
14 award no fewer than 120 racing days.
15 (2) During the first year in which 2 organization
16 licensees are awarded an organization gaming license, the
17 Division Board shall award no fewer than 139 total racing
18 days.
19 During the second year in which 2 organization
20 licensees are awarded an organization gaming license, the
21 Division Board shall award no fewer than 160 total racing
22 days.
23 During the third year and every year thereafter in
24 which 2 organization licensees are awarded an organization
25 gaming license, the Division Board shall award no fewer
26 than 174 total racing days.

SB2254- 155 -LRB102 15486 SMS 20849 b
1 A Cook County organization licensee shall apply for racing
2dates pursuant to this subsection (e-2). In awarding racing
3dates under this subsection (e-2), the Division Board shall
4have the discretion to allocate those thoroughbred racing
5dates among these Cook County organization licensees.
6 (e-3) In awarding racing dates for calendar year 2020 and
7thereafter in connection with a racetrack in Madison County,
8the Division Board shall award racing dates and such
9organization licensee shall run at least 700 thoroughbred
10races at the racetrack in Madison County each year.
11 Notwithstanding Section 7.7 of the Illinois Gambling Act
12or any provision of this Act other than subsection (e-4.5),
13for each calendar year for which an organization gaming
14licensee located in Madison County requests racing dates
15resulting in less than 700 live thoroughbred races at its
16racetrack facility, the organization gaming licensee may not
17conduct gaming pursuant to an organization gaming license
18issued under the Illinois Gambling Act for the calendar year
19of such requested live races.
20 (e-4) Notwithstanding the provisions of Section 7.7 of the
21Illinois Gambling Act or any provision of this Act other than
22subsections (e-3) and (e-4.5), for each calendar year for
23which an organization gaming licensee requests thoroughbred
24racing dates which results in a number of live races under its
25organization license that is less than the total number of
26live races which it conducted in 2017 at its racetrack

SB2254- 156 -LRB102 15486 SMS 20849 b
1facility, the organization gaming licensee may not conduct
2gaming pursuant to its organization gaming license for the
3calendar year of such requested live races.
4 (e-4.1) Notwithstanding the provisions of Section 7.7 of
5the Illinois Gambling Act or any provision of this Act other
6than subsections (e-3) and (e-4.5), for each calendar year for
7which an organization licensee requests racing dates for
8standardbred racing which results in a number of live races
9that is less than the total number of live races required in
10subsection (e-1), the organization gaming licensee may not
11conduct gaming pursuant to its organization gaming license for
12the calendar year of such requested live races.
13 (e-4.5) The Division Board shall award the minimum live
14racing guarantees contained in subsections (e-1), (e-2), and
15(e-3) to ensure that each organization licensee shall
16individually run a sufficient number of races per year to
17qualify for an organization gaming license under this Act. The
18General Assembly finds that the minimum live racing guarantees
19contained in subsections (e-1), (e-2), and (e-3) are in the
20best interest of the sport of horse racing, and that such
21guarantees may only be reduced in the calendar year in which
22they will be conducted in the limited circumstances described
23in this subsection. The Division Board may decrease the number
24of racing days without affecting an organization licensee's
25ability to conduct gaming pursuant to an organization gaming
26license issued under the Illinois Gambling Act only if the

SB2254- 157 -LRB102 15486 SMS 20849 b
1Director Board determines, after notice and hearing, that:
2 (i) a decrease is necessary to maintain a sufficient
3 number of betting interests per race to ensure the
4 integrity of racing;
5 (ii) there are unsafe track conditions due to weather
6 or acts of God;
7 (iii) there is an agreement between an organization
8 licensee and the breed association that is applicable to
9 the involved live racing guarantee, such association
10 representing either the largest number of thoroughbred
11 owners and trainers or the largest number of standardbred
12 owners, trainers and drivers who race horses at the
13 involved organization licensee's racing meeting, so long
14 as the agreement does not compromise the integrity of the
15 sport of horse racing; or
16 (iv) the horse population or purse levels are
17 insufficient to provide the number of racing opportunities
18 otherwise required in this Act.
19 In decreasing the number of racing dates in accordance
20with this subsection, the Director Board shall hold a hearing
21and shall provide the public and all interested parties notice
22and an opportunity to be heard. The Director Board shall
23accept testimony from all interested parties, including any
24association representing owners, trainers, jockeys, or drivers
25who will be affected by the decrease in racing dates. The
26Director Board shall provide a written explanation of the

SB2254- 158 -LRB102 15486 SMS 20849 b
1reasons for the decrease and the Board's findings. The written
2explanation shall include a listing and content of all
3communication between any party and any Division Illinois
4Racing Board member or staff that does not take place at a
5public hearing before the Director meeting of the Board.
6 (e-5) In reviewing an application for the purpose of
7granting an organization license consistent with the best
8interests of the public and the sport of horse racing, the
9Director Board shall consider:
10 (1) the character, reputation, experience, and
11 financial integrity of the applicant and of any other
12 separate person that either:
13 (i) controls the applicant, directly or
14 indirectly, or
15 (ii) is controlled, directly or indirectly, by
16 that applicant or by a person who controls, directly
17 or indirectly, that applicant;
18 (2) the applicant's facilities or proposed facilities
19 for conducting horse racing;
20 (3) the total revenue without regard to Section 32.1
21 to be derived by the State and horsemen from the
22 applicant's conducting a race meeting;
23 (4) the applicant's good faith affirmative action plan
24 to recruit, train, and upgrade minorities in all
25 employment classifications;
26 (5) the applicant's financial ability to purchase and

SB2254- 159 -LRB102 15486 SMS 20849 b
1 maintain adequate liability and casualty insurance;
2 (6) the applicant's proposed and prior year's
3 promotional and marketing activities and expenditures of
4 the applicant associated with those activities;
5 (7) an agreement, if any, among organization licensees
6 as provided in subsection (b) of Section 21 of this Act;
7 and
8 (8) the extent to which the applicant exceeds or meets
9 other standards for the issuance of an organization
10 license that the Division Board shall adopt by rule.
11 In granting organization licenses and allocating dates for
12horse race meetings, the Division Board shall have discretion
13to determine an overall schedule, including required
14simulcasts of Illinois races by host tracks that will, in its
15judgment, be conducive to the best interests of the public and
16the sport of horse racing.
17 (e-10) The Illinois Administrative Procedure Act shall
18apply to administrative procedures of the Director and the
19Division Board under this Act for the granting of an
20organization license, except that (1) notwithstanding the
21provisions of subsection (b) of Section 10-40 of the Illinois
22Administrative Procedure Act regarding cross-examination, the
23Division Board may prescribe rules limiting the right of an
24applicant or participant in any proceeding to award an
25organization license to conduct cross-examination of witnesses
26at that proceeding where that cross-examination would unduly

SB2254- 160 -LRB102 15486 SMS 20849 b
1obstruct the timely award of an organization license under
2subsection (e) of Section 20 of this Act; (2) the provisions of
3Section 10-45 of the Illinois Administrative Procedure Act
4regarding proposals for decision are excluded under this Act;
5(3) notwithstanding the provisions of subsection (a) of
6Section 10-60 of the Illinois Administrative Procedure Act
7regarding ex parte communications, the Division Board may
8prescribe rules allowing ex parte communications with
9applicants or participants in a proceeding to award an
10organization license where conducting those communications
11would be in the best interest of racing, provided all those
12communications are made part of the record of that proceeding
13pursuant to subsection (c) of Section 10-60 of the Illinois
14Administrative Procedure Act; (4) the provisions of Section
1514a of this Act and the rules of the Division Board promulgated
16under that Section shall apply instead of the provisions of
17Article 10 of the Illinois Administrative Procedure Act
18regarding administrative law judges; and (5) the provisions of
19subsection (d) of Section 10-65 of the Illinois Administrative
20Procedure Act that prevent summary suspension of a license
21pending revocation or other action shall not apply.
22 (f) The Division Board may allot racing dates to an
23organization licensee for more than one calendar year but for
24no more than 3 successive calendar years in advance, provided
25that the Division Board shall review such allotment for more
26than one calendar year prior to each year for which such

SB2254- 161 -LRB102 15486 SMS 20849 b
1allotment has been made. The granting of an organization
2license to a person constitutes a privilege to conduct a horse
3race meeting under the provisions of this Act, and no person
4granted an organization license shall be deemed to have a
5vested interest, property right, or future expectation to
6receive an organization license in any subsequent year as a
7result of the granting of an organization license.
8Organization licenses shall be subject to revocation if the
9organization licensee has violated any provision of this Act
10or the rules and regulations promulgated under this Act or has
11been convicted of a crime or has failed to disclose or has
12stated falsely any information called for in the application
13for an organization license. Any organization license
14revocation proceeding shall be in accordance with Section 16
15regarding suspension and revocation of occupation licenses.
16 (f-5) If, (i) an applicant does not file an acceptance of
17the racing dates awarded by the Division Board as required
18under part (1) of subsection (h) of this Section 20, or (ii) an
19organization licensee has its license suspended or revoked
20under this Act, the Director Board, upon conducting an
21emergency hearing as provided for in this Act, may reaward on
22an emergency basis pursuant to rules established by the
23Division Board, racing dates not accepted or the racing dates
24associated with any suspension or revocation period to one or
25more organization licensees, new applicants, or any
26combination thereof, upon terms and conditions that the

SB2254- 162 -LRB102 15486 SMS 20849 b
1Division Board determines are in the best interest of racing,
2provided, the organization licensees or new applicants
3receiving the awarded racing dates file an acceptance of those
4reawarded racing dates as required under paragraph (1) of
5subsection (h) of this Section 20 and comply with the other
6provisions of this Act. The Illinois Administrative Procedure
7Act shall not apply to the administrative procedures of the
8Division Board in conducting the emergency hearing and the
9reallocation of racing dates on an emergency basis.
10 (g) (Blank).
11 (h) The Division Board shall send the applicant a copy of
12its formally executed order by certified mail addressed to the
13applicant at the address stated in his application, which
14notice shall be mailed within 5 days of the date the formal
15order is executed.
16 Each applicant notified shall, within 10 days after
17receipt of the final executed order of the Division Board
18awarding racing dates:
19 (1) file with the Division Board an acceptance of such
20 award in the form prescribed by the Division Board;
21 (2) pay to the Division Board an additional amount
22 equal to $110 for each racing date awarded; and
23 (3) file with the Division Board the bonds required in
24 Sections 21 and 25 at least 20 days prior to the first day
25 of each race meeting.
26Upon compliance with the provisions of paragraphs (1), (2),

SB2254- 163 -LRB102 15486 SMS 20849 b
1and (3) of this subsection (h), the applicant shall be issued
2an organization license.
3 If any applicant fails to comply with this Section or
4fails to pay the organization license fees herein provided, no
5organization license shall be issued to such applicant.
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 5/20.1)
8 Sec. 20.1. Authority of licensees.
9 (a) Notwithstanding anything in this Act to the contrary,
10an organization licensee shall have authority to:
11 (1) determine prices charged for goods and services;
12 (2) determine prices charged for wagering products,
13 subject to Sections 26 and 26.2 of this Act;
14 (3) determine its hours of operation, subject to at
15 least 30 days prior notice to the Division Board if such
16 hours are different than provided such licensee's racing
17 dates application; and
18 (4) otherwise manage its business operations.
19 (b) The Division Board may disapprove of any business
20practices by organization licensees identified in subsection
21(a) of this Section if the Division Board finds that such
22practices are detrimental to the public interest.
23(Source: P.A. 91-40, eff. 6-25-99.)
24 (230 ILCS 5/20.5)

SB2254- 164 -LRB102 15486 SMS 20849 b
1 Sec. 20.5. (Repealed).
2(Source: P.A. 89-16, eff. 5-30-95. Repealed by 91-40, eff.
36-25-99.)
4 (230 ILCS 5/21) (from Ch. 8, par. 37-21)
5 Sec. 21. (a) Applications for organization licenses must
6be filed with the Division Board at a time and place prescribed
7by the rules and regulations of the Division Board. The
8Division Board shall examine the applications within 21 days
9after the date allowed for filing with respect to their
10conformity with this Act and such rules and regulations as may
11be prescribed by the Division Board. If any application does
12not comply with this Act or the rules and regulations
13prescribed by the Division Board, such application may be
14rejected and an organization license refused to the applicant,
15or the Division Board may, within 21 days of the receipt of
16such application, advise the applicant of the deficiencies of
17the application under the Act or the rules and regulations of
18the Division Board, and require the submittal of an amended
19application within a reasonable time determined by the
20Division Board; and upon submittal of the amended application
21by the applicant, the Division Board may consider the
22application consistent with the process described in
23subsection (e-5) of Section 20 of this Act. If it is found to
24be in compliance with this Act and the rules and regulations of
25the Division Board, the Division Board may then issue an

SB2254- 165 -LRB102 15486 SMS 20849 b
1organization license to such applicant.
2 (b) The Division Board may exercise discretion in granting
3racing dates to qualified applicants different from those
4requested by the applicants in their applications. However, if
5all eligible applicants for organization licenses whose tracks
6are located within 100 miles of each other execute and submit
7to the Division Board a written agreement among such
8applicants as to the award of racing dates, including where
9applicable racing programs, for up to 3 consecutive years,
10then subject to annual review of each applicant's compliance
11with Division Board rules and regulations, provisions of this
12Act and conditions contained in annual dates orders issued by
13the Division Board, the Division Board may grant such dates
14and programs to such applicants as so agreed by them if the
15Board determines that the grant of these racing dates is in the
16best interests of racing. The Division Board shall treat any
17such agreement as the agreement signatories' joint and several
18application for racing dates during the term of the agreement.
19 (c) Where 2 or more applicants propose to conduct horse
20race meetings within 35 miles of each other, as certified to
21the Division Board under Section 19 (a) (1) of this Act, on
22conflicting dates, the Division Board may determine and grant
23the number of racing days to be awarded to the several
24applicants in accordance with the provisions of subsection
25(e-5) of Section 20 of this Act.
26 (d) (Blank).

SB2254- 166 -LRB102 15486 SMS 20849 b
1 (e) Prior to the issuance of an organization license, the
2applicant shall file with the Division Board a bond payable to
3the State of Illinois in the sum of $200,000, executed by the
4applicant and a surety company or companies authorized to do
5business in this State, and conditioned upon the payment by
6the organization licensee of all taxes due under Section 27,
7other monies due and payable under this Act, all purses due and
8payable, and that the organization licensee will upon
9presentation of the winning ticket or tickets distribute all
10sums due to the patrons of pari-mutuel pools. Beginning on the
11date when any organization licensee begins conducting gaming
12pursuant to an organization gaming license issued under the
13Illinois Gambling Act, the amount of the bond required under
14this subsection (e) shall be $500,000.
15 (f) Each organization license shall specify the person to
16whom it is issued, the dates upon which horse racing is
17permitted, and the location, place, track, or enclosure where
18the horse race meeting is to be held.
19 (g) Any person who owns one or more race tracks within the
20State may seek, in its own name, a separate organization
21license for each race track.
22 (h) All racing conducted under such organization license
23is subject to this Act and to the rules and regulations from
24time to time prescribed by the Division Board, and every such
25organization license issued by the Division Board shall
26contain a recital to that effect.

SB2254- 167 -LRB102 15486 SMS 20849 b
1 (i) Each such organization licensee may provide that at
2least one race per day may be devoted to the racing of quarter
3horses, appaloosas, arabians, or paints.
4 (j) In acting on applications for organization licenses,
5the Division Board shall give weight to an organization
6license which has implemented a good faith affirmative action
7effort to recruit, train and upgrade minorities in all
8classifications within the organization license.
9(Source: P.A. 101-31, eff. 6-28-19.)
10 (230 ILCS 5/23) (from Ch. 8, par. 37-23)
11 Sec. 23. (a) The Division Board shall promulgate as part
12of its rules and regulations a set of minimum standards
13(including, but not limited to, a workers' compensation plan)
14to be observed by race tracks.
15 (b) The failure of a person who has been awarded racing
16dates to observe the minimum standards to be promulgated by
17the Division Board under subsection (a) of this Section shall
18result in the mandatory suspension of the organization license
19of that person by the Division Board. The suspended
20organization license of the person shall not be reinstated
21until the minimum standards are observed. Those persons and
22tracks which apply for dates shall not be granted organization
23licenses if they are not in observance of the minimum
24standards to be promulgated by the Division Board under
25subsection (a) of this Section.

SB2254- 168 -LRB102 15486 SMS 20849 b
1 The Division Board may refuse to issue or may suspend the
2organization license of any person who fails to file a return,
3or to pay the tax, penalty or interest shown in a filed return,
4or to pay any final assessment of tax, penalty or interest, as
5required by any tax Act administered by the Illinois
6Department of Revenue, until such time as the requirements of
7any such tax Act are satisfied.
8 (c) The Division Board shall consider the operational
9needs of the Illinois State Fair and the DuQuoin State Fair as
10this Section applies to the Illinois Department of
11Agriculture. In considering the operational needs of the
12Illinois Department of Agriculture, the Division Board may
13waive any rule or portion of a rule when the physical
14structure, improvement cost or other use of the facilities
15prohibits compliance within this Act or the Division's Board's
16rules.
17(Source: P.A. 89-16, eff. 5-30-95.)
18 (230 ILCS 5/24) (from Ch. 8, par. 37-24)
19 Sec. 24. (a) No license shall be issued to or held by an
20organization licensee unless all of its officers, directors,
21and holders of ownership interests of at least 5% are first
22approved by the Division Board. The Division Board shall not
23give approval of an organization license application to any
24person who has been convicted of or is under an indictment for
25a crime of moral turpitude or has violated any provision of the

SB2254- 169 -LRB102 15486 SMS 20849 b
1racing law of this State or any rules of the Division Board.
2 (b) An organization licensee must notify the Division
3Board within 10 days of any change in the holders of a direct
4or indirect interest in the ownership of the organization
5licensee. The Division Board may, after a hearing before the
6Director, revoke the organization license of any person who
7registers on its books or knowingly permits a direct or
8indirect interest in the ownership of that person without
9notifying the Division Board of the name of the holder in
10interest within this period.
11 (c) In addition to the provisions of subsection (a) of
12this Section, no person shall be granted an organization
13license if any public official of the State or member of his or
14her family holds any ownership or financial interest, directly
15or indirectly, in the person.
16 (d) No person which has been granted an organization
17license to hold a race meeting shall give to any public
18official or member of his family, directly or indirectly, for
19or without consideration, any interest in the person. The
20Division Board shall, after a hearing before the Director,
21revoke the organization license granted to a person which has
22violated this subsection.
23 (e) (Blank).
24 (f) No organization licensee or concessionaire or officer,
25director or holder or controller of 5% or more legal or
26beneficial interest in any organization licensee or concession

SB2254- 170 -LRB102 15486 SMS 20849 b
1shall make any sort of gift or contribution that is prohibited
2under Article 10 of the State Officials and Employees Ethics
3Act or pay or give any money or other thing of value to any
4person who is a public official, or a candidate or nominee for
5public office if that payment or gift is prohibited under
6Article 10 of the State Officials and Employees Ethics Act.
7(Source: P.A. 101-31, eff. 6-28-19.)
8 (230 ILCS 5/25) (from Ch. 8, par. 37-25)
9 Sec. 25. Admission charge; bond; fine.
10 (a) There shall be paid to the Division Board at such time
11or times as it shall prescribe, the sum of fifteen cents (15ďż˝)
12for each person entering the grounds or enclosure of each
13organization licensee and inter-track wagering licensee upon a
14ticket of admission except as provided in subsection (g) of
15Section 27 of this Act. If tickets are issued for more than one
16day then the sum of fifteen cents (15ďż˝) shall be paid for each
17person using such ticket on each day that the same shall be
18used. Provided, however, that no charge shall be made on
19tickets of admission issued to and in the name of directors,
20officers, agents or employees of the organization licensee, or
21inter-track wagering licensee, or to owners, trainers,
22jockeys, drivers and their employees or to any person or
23persons entering the grounds or enclosure for the transaction
24of business in connection with such race meeting. The
25organization licensee or inter-track wagering licensee may, if

SB2254- 171 -LRB102 15486 SMS 20849 b
1it desires, collect such amount from each ticket holder in
2addition to the amount or amounts charged for such ticket of
3admission. Beginning on the date when any organization
4licensee begins conducting gaming pursuant to an organization
5gaming license issued under the Illinois Gambling Act, the
6admission charge imposed by this subsection (a) shall be 40
7cents for each person entering the grounds or enclosure of
8each organization licensee and inter-track wagering licensee
9upon a ticket of admission, and if such tickets are issued for
10more than one day, 40 cents shall be paid for each person using
11such ticket on each day that the same shall be used.
12 (b) Accurate records and books shall at all times be kept
13and maintained by the organization licensees and inter-track
14wagering licensees showing the admission tickets issued and
15used on each racing day and the attendance thereat of each
16horse racing meeting. The Division Board or its duly
17authorized representative or representatives shall at all
18reasonable times have access to the admission records of any
19organization licensee and inter-track wagering licensee for
20the purpose of examining and checking the same and
21ascertaining whether or not the proper amount has been or is
22being paid the State of Illinois as herein provided. The
23Division Board shall also require, before issuing any license,
24that the licensee shall execute and deliver to it a bond,
25payable to the State of Illinois, in such sum as it shall
26determine, not, however, in excess of fifty thousand dollars

SB2254- 172 -LRB102 15486 SMS 20849 b
1($50,000), with a surety or sureties to be approved by it,
2conditioned for the payment of all sums due and payable or
3collected by it under this Section upon admission fees
4received for any particular racing meetings. The Division
5Board may also from time to time require sworn statements of
6the number or numbers of such admissions and may prescribe
7blanks upon which such reports shall be made. Any organization
8licensee or inter-track wagering licensee failing or refusing
9to pay the amount found to be due as herein provided, shall be
10deemed guilty of a business offense and upon conviction shall
11be punished by a fine of not more than five thousand dollars
12($5,000) in addition to the amount due from such organization
13licensee or inter-track wagering licensee as herein provided.
14All fines paid into court by an organization licensee or
15inter-track wagering licensee found guilty of violating this
16Section shall be transmitted and paid over by the clerk of the
17court to the Division Board. Beginning on the date when any
18organization licensee begins conducting gaming pursuant to an
19organization gaming license issued under the Illinois Gambling
20Act, any fine imposed pursuant to this subsection (b) shall
21not exceed $10,000.
22(Source: P.A. 101-31, eff. 6-28-19.)
23 (230 ILCS 5/26) (from Ch. 8, par. 37-26)
24 Sec. 26. Wagering.
25 (a) Any licensee may conduct and supervise the pari-mutuel

SB2254- 173 -LRB102 15486 SMS 20849 b
1system of wagering, as defined in Section 3.12 of this Act, on
2horse races conducted by an Illinois organization licensee or
3conducted at a racetrack located in another state or country
4in accordance with subsection (g) of Section 26 of this Act.
5Subject to the prior consent of the Division Board, licensees
6may supplement any pari-mutuel pool in order to guarantee a
7minimum distribution. Such pari-mutuel method of wagering
8shall not, under any circumstances if conducted under the
9provisions of this Act, be held or construed to be unlawful,
10other statutes of this State to the contrary notwithstanding.
11Subject to rules for advance wagering promulgated by the
12Division Board, any licensee may accept wagers in advance of
13the day of the race wagered upon occurs.
14 (b) Except for those gaming activities for which a license
15is obtained and authorized under the Illinois Lottery Law, the
16Charitable Games Act, the Raffles and Poker Runs Act, or the
17Illinois Gambling Act, no other method of betting, pool
18making, wagering or gambling shall be used or permitted by the
19licensee. Each licensee may retain, subject to the payment of
20all applicable taxes and purses, an amount not to exceed 17% of
21all money wagered under subsection (a) of this Section, except
22as may otherwise be permitted under this Act.
23 (b-5) An individual may place a wager under the
24pari-mutuel system from any licensed location authorized under
25this Act provided that wager is electronically recorded in the
26manner described in Section 3.12 of this Act. Any wager made

SB2254- 174 -LRB102 15486 SMS 20849 b
1electronically by an individual while physically on the
2premises of a licensee shall be deemed to have been made at the
3premises of that licensee.
4 (c) (Blank).
5 (c-5) The sum held by any licensee for payment of
6outstanding pari-mutuel tickets, if unclaimed prior to
7December 31 of the next year, shall be retained by the licensee
8for payment of such tickets until that date. Within 10 days
9thereafter, the balance of such sum remaining unclaimed, less
10any uncashed supplements contributed by such licensee for the
11purpose of guaranteeing minimum distributions of any
12pari-mutuel pool, shall be evenly distributed to the purse
13account of the organization licensee and the organization
14licensee, except that the balance of the sum of all
15outstanding pari-mutuel tickets generated from simulcast
16wagering and inter-track wagering by an organization licensee
17located in a county with a population in excess of 230,000 and
18borders the Mississippi River or any licensee that derives its
19license from that organization licensee shall be evenly
20distributed to the purse account of the organization licensee
21and the organization licensee.
22 (d) A pari-mutuel ticket shall be honored until December
2331 of the next calendar year, and the licensee shall pay the
24same and may charge the amount thereof against unpaid money
25similarly accumulated on account of pari-mutuel tickets not
26presented for payment.

SB2254- 175 -LRB102 15486 SMS 20849 b
1 (e) No licensee shall knowingly permit any minor, other
2than an employee of such licensee or an owner, trainer,
3jockey, driver, or employee thereof, to be admitted during a
4racing program unless accompanied by a parent or guardian, or
5any minor to be a patron of the pari-mutuel system of wagering
6conducted or supervised by it. The admission of any
7unaccompanied minor, other than an employee of the licensee or
8an owner, trainer, jockey, driver, or employee thereof at a
9race track is a Class C misdemeanor.
10 (f) Notwithstanding the other provisions of this Act, an
11organization licensee may contract with an entity in another
12state or country to permit any legal wagering entity in
13another state or country to accept wagers solely within such
14other state or country on races conducted by the organization
15licensee in this State. Beginning January 1, 2000, these
16wagers shall not be subject to State taxation. Until January
171, 2000, when the out-of-State entity conducts a pari-mutuel
18pool separate from the organization licensee, a privilege tax
19equal to 7 1/2% of all monies received by the organization
20licensee from entities in other states or countries pursuant
21to such contracts is imposed on the organization licensee, and
22such privilege tax shall be remitted to the Department of
23Revenue within 48 hours of receipt of the moneys from the
24simulcast. When the out-of-State entity conducts a combined
25pari-mutuel pool with the organization licensee, the tax shall
26be 10% of all monies received by the organization licensee

SB2254- 176 -LRB102 15486 SMS 20849 b
1with 25% of the receipts from this 10% tax to be distributed to
2the county in which the race was conducted.
3 An organization licensee may permit one or more of its
4races to be utilized for pari-mutuel wagering at one or more
5locations in other states and may transmit audio and visual
6signals of races the organization licensee conducts to one or
7more locations outside the State or country and may also
8permit pari-mutuel pools in other states or countries to be
9combined with its gross or net wagering pools or with wagering
10pools established by other states.
11 (g) A host track may accept interstate simulcast wagers on
12horse races conducted in other states or countries and shall
13control the number of signals and types of breeds of racing in
14its simulcast program, subject to the disapproval of the
15Division Board. The Division Board may prohibit a simulcast
16program only if it finds that the simulcast program is clearly
17adverse to the integrity of racing. The host track simulcast
18program shall include the signal of live racing of all
19organization licensees. All non-host licensees and advance
20deposit wagering licensees shall carry the signal of and
21accept wagers on live racing of all organization licensees.
22Advance deposit wagering licensees shall not be permitted to
23accept out-of-state wagers on any Illinois signal provided
24pursuant to this Section without the approval and consent of
25the organization licensee providing the signal. For one year
26after August 15, 2014 (the effective date of Public Act

SB2254- 177 -LRB102 15486 SMS 20849 b
198-968), non-host licensees may carry the host track simulcast
2program and shall accept wagers on all races included as part
3of the simulcast program of horse races conducted at race
4tracks located within North America upon which wagering is
5permitted. For a period of one year after August 15, 2014 (the
6effective date of Public Act 98-968), on horse races conducted
7at race tracks located outside of North America, non-host
8licensees may accept wagers on all races included as part of
9the simulcast program upon which wagering is permitted.
10Beginning August 15, 2015 (one year after the effective date
11of Public Act 98-968), non-host licensees may carry the host
12track simulcast program and shall accept wagers on all races
13included as part of the simulcast program upon which wagering
14is permitted. All organization licensees shall provide their
15live signal to all advance deposit wagering licensees for a
16simulcast commission fee not to exceed 6% of the advance
17deposit wagering licensee's Illinois handle on the
18organization licensee's signal without prior approval by the
19Division Board. The Division Board may adopt rules under which
20it may permit simulcast commission fees in excess of 6%. The
21Division Board shall adopt rules limiting the interstate
22commission fees charged to an advance deposit wagering
23licensee. The Division Board shall adopt rules regarding
24advance deposit wagering on interstate simulcast races that
25shall reflect, among other things, the General Assembly's
26desire to maximize revenues to the State, horsemen purses, and

SB2254- 178 -LRB102 15486 SMS 20849 b
1organization licensees. However, organization licensees
2providing live signals pursuant to the requirements of this
3subsection (g) may petition the Division Board to withhold
4their live signals from an advance deposit wagering licensee
5if the organization licensee discovers and the Division Board
6finds reputable or credible information that the advance
7deposit wagering licensee is under investigation by another
8state or federal governmental agency, the advance deposit
9wagering licensee's license has been suspended in another
10state, or the advance deposit wagering licensee's license is
11in revocation proceedings in another state. The organization
12licensee's provision of their live signal to an advance
13deposit wagering licensee under this subsection (g) pertains
14to wagers placed from within Illinois. Advance deposit
15wagering licensees may place advance deposit wagering
16terminals at wagering facilities as a convenience to
17customers. The advance deposit wagering licensee shall not
18charge or collect any fee from purses for the placement of the
19advance deposit wagering terminals. The costs and expenses of
20the host track and non-host licensees associated with
21interstate simulcast wagering, other than the interstate
22commission fee, shall be borne by the host track and all
23non-host licensees incurring these costs. The interstate
24commission fee shall not exceed 5% of Illinois handle on the
25interstate simulcast race or races without prior approval of
26the Division Board. The Division Board shall promulgate rules

SB2254- 179 -LRB102 15486 SMS 20849 b
1under which it may permit interstate commission fees in excess
2of 5%. The interstate commission fee and other fees charged by
3the sending racetrack, including, but not limited to,
4satellite decoder fees, shall be uniformly applied to the host
5track and all non-host licensees.
6 Notwithstanding any other provision of this Act, an
7organization licensee, with the consent of the horsemen
8association representing the largest number of owners,
9trainers, jockeys, or standardbred drivers who race horses at
10that organization licensee's racing meeting, may maintain a
11system whereby advance deposit wagering may take place or an
12organization licensee, with the consent of the horsemen
13association representing the largest number of owners,
14trainers, jockeys, or standardbred drivers who race horses at
15that organization licensee's racing meeting, may contract with
16another person to carry out a system of advance deposit
17wagering. Such consent may not be unreasonably withheld. Only
18with respect to an appeal to the Division Board that consent
19for an organization licensee that maintains its own advance
20deposit wagering system is being unreasonably withheld, the
21Division Board shall issue a final order within 30 days after
22initiation of the appeal, and the organization licensee's
23advance deposit wagering system may remain operational during
24that 30-day period. The actions of any organization licensee
25who conducts advance deposit wagering or any person who has a
26contract with an organization licensee to conduct advance

SB2254- 180 -LRB102 15486 SMS 20849 b
1deposit wagering who conducts advance deposit wagering on or
2after January 1, 2013 and prior to June 7, 2013 (the effective
3date of Public Act 98-18) taken in reliance on the changes made
4to this subsection (g) by Public Act 98-18 are hereby
5validated, provided payment of all applicable pari-mutuel
6taxes are remitted to the Division Board. All advance deposit
7wagers placed from within Illinois must be placed through a
8Division-approved Board-approved advance deposit wagering
9licensee; no other entity may accept an advance deposit wager
10from a person within Illinois. All advance deposit wagering is
11subject to any rules adopted by the Division Board. The
12Division Board may adopt rules necessary to regulate advance
13deposit wagering through the use of emergency rulemaking in
14accordance with Section 5-45 of the Illinois Administrative
15Procedure Act. The General Assembly finds that the adoption of
16rules to regulate advance deposit wagering is deemed an
17emergency and necessary for the public interest, safety, and
18welfare. An advance deposit wagering licensee may retain all
19moneys as agreed to by contract with an organization licensee.
20Any moneys retained by the organization licensee from advance
21deposit wagering, not including moneys retained by the advance
22deposit wagering licensee, shall be paid 50% to the
23organization licensee's purse account and 50% to the
24organization licensee. With the exception of any organization
25licensee that is owned by a publicly traded company that is
26incorporated in a state other than Illinois and advance

SB2254- 181 -LRB102 15486 SMS 20849 b
1deposit wagering licensees under contract with such
2organization licensees, organization licensees that maintain
3advance deposit wagering systems and advance deposit wagering
4licensees that contract with organization licensees shall
5provide sufficiently detailed monthly accountings to the
6horsemen association representing the largest number of
7owners, trainers, jockeys, or standardbred drivers who race
8horses at that organization licensee's racing meeting so that
9the horsemen association, as an interested party, can confirm
10the accuracy of the amounts paid to the purse account at the
11horsemen association's affiliated organization licensee from
12advance deposit wagering. If more than one breed races at the
13same race track facility, then the 50% of the moneys to be paid
14to an organization licensee's purse account shall be allocated
15among all organization licensees' purse accounts operating at
16that race track facility proportionately based on the actual
17number of host days that the Division Board grants to that
18breed at that race track facility in the current calendar
19year. To the extent any fees from advance deposit wagering
20conducted in Illinois for wagers in Illinois or other states
21have been placed in escrow or otherwise withheld from wagers
22pending a determination of the legality of advance deposit
23wagering, no action shall be brought to declare such wagers or
24the disbursement of any fees previously escrowed illegal.
25 (1) Between the hours of 6:30 a.m. and 6:30 p.m. an
26 inter-track wagering licensee other than the host track

SB2254- 182 -LRB102 15486 SMS 20849 b
1 may supplement the host track simulcast program with
2 additional simulcast races or race programs, provided that
3 between January 1 and the third Friday in February of any
4 year, inclusive, if no live thoroughbred racing is
5 occurring in Illinois during this period, only
6 thoroughbred races may be used for supplemental interstate
7 simulcast purposes. The Division Board shall withhold
8 approval for a supplemental interstate simulcast only if
9 it finds that the simulcast is clearly adverse to the
10 integrity of racing. A supplemental interstate simulcast
11 may be transmitted from an inter-track wagering licensee
12 to its affiliated non-host licensees. The interstate
13 commission fee for a supplemental interstate simulcast
14 shall be paid by the non-host licensee and its affiliated
15 non-host licensees receiving the simulcast.
16 (2) Between the hours of 6:30 p.m. and 6:30 a.m. an
17 inter-track wagering licensee other than the host track
18 may receive supplemental interstate simulcasts only with
19 the consent of the host track, except when the Division
20 Board finds that the simulcast is clearly adverse to the
21 integrity of racing. Consent granted under this paragraph
22 (2) to any inter-track wagering licensee shall be deemed
23 consent to all non-host licensees. The interstate
24 commission fee for the supplemental interstate simulcast
25 shall be paid by all participating non-host licensees.
26 (3) Each licensee conducting interstate simulcast

SB2254- 183 -LRB102 15486 SMS 20849 b
1 wagering may retain, subject to the payment of all
2 applicable taxes and the purses, an amount not to exceed
3 17% of all money wagered. If any licensee conducts the
4 pari-mutuel system wagering on races conducted at
5 racetracks in another state or country, each such race or
6 race program shall be considered a separate racing day for
7 the purpose of determining the daily handle and computing
8 the privilege tax of that daily handle as provided in
9 subsection (a) of Section 27. Until January 1, 2000, from
10 the sums permitted to be retained pursuant to this
11 subsection, each inter-track wagering location licensee
12 shall pay 1% of the pari-mutuel handle wagered on
13 simulcast wagering to the Horse Racing Tax Allocation
14 Fund, subject to the provisions of subparagraph (B) of
15 paragraph (11) of subsection (h) of Section 26 of this
16 Act.
17 (4) A licensee who receives an interstate simulcast
18 may combine its gross or net pools with pools at the
19 sending racetracks pursuant to rules established by the
20 Division Board. All licensees combining their gross pools
21 at a sending racetrack shall adopt the takeout percentages
22 of the sending racetrack. A licensee may also establish a
23 separate pool and takeout structure for wagering purposes
24 on races conducted at race tracks outside of the State of
25 Illinois. The licensee may permit pari-mutuel wagers
26 placed in other states or countries to be combined with

SB2254- 184 -LRB102 15486 SMS 20849 b
1 its gross or net wagering pools or other wagering pools.
2 (5) After the payment of the interstate commission fee
3 (except for the interstate commission fee on a
4 supplemental interstate simulcast, which shall be paid by
5 the host track and by each non-host licensee through the
6 host track) and all applicable State and local taxes,
7 except as provided in subsection (g) of Section 27 of this
8 Act, the remainder of moneys retained from simulcast
9 wagering pursuant to this subsection (g), and Section 26.2
10 shall be divided as follows:
11 (A) For interstate simulcast wagers made at a host
12 track, 50% to the host track and 50% to purses at the
13 host track.
14 (B) For wagers placed on interstate simulcast
15 races, supplemental simulcasts as defined in
16 subparagraphs (1) and (2), and separately pooled races
17 conducted outside of the State of Illinois made at a
18 non-host licensee, 25% to the host track, 25% to the
19 non-host licensee, and 50% to the purses at the host
20 track.
21 (6) Notwithstanding any provision in this Act to the
22 contrary, non-host licensees who derive their licenses
23 from a track located in a county with a population in
24 excess of 230,000 and that borders the Mississippi River
25 may receive supplemental interstate simulcast races at all
26 times subject to Division Board approval, which shall be

SB2254- 185 -LRB102 15486 SMS 20849 b
1 withheld only upon a finding that a supplemental
2 interstate simulcast is clearly adverse to the integrity
3 of racing.
4 (7) Effective January 1, 2017, notwithstanding any
5 provision of this Act to the contrary, after payment of
6 all applicable State and local taxes and interstate
7 commission fees, non-host licensees who derive their
8 licenses from a track located in a county with a
9 population in excess of 230,000 and that borders the
10 Mississippi River shall retain 50% of the retention from
11 interstate simulcast wagers and shall pay 50% to purses at
12 the track from which the non-host licensee derives its
13 license.
14 (7.1) Notwithstanding any other provision of this Act
15 to the contrary, if no standardbred racing is conducted at
16 a racetrack located in Madison County during any calendar
17 year beginning on or after January 1, 2002, all moneys
18 derived by that racetrack from simulcast wagering and
19 inter-track wagering that (1) are to be used for purses
20 and (2) are generated between the hours of 6:30 p.m. and
21 6:30 a.m. during that calendar year shall be paid as
22 follows:
23 (A) If the licensee that conducts horse racing at
24 that racetrack requests from the Division Board at
25 least as many racing dates as were conducted in
26 calendar year 2000, 80% shall be paid to its

SB2254- 186 -LRB102 15486 SMS 20849 b
1 thoroughbred purse account; and
2 (B) Twenty percent shall be deposited into the
3 Illinois Colt Stakes Purse Distribution Fund and shall
4 be paid to purses for standardbred races for Illinois
5 conceived and foaled horses conducted at any county
6 fairgrounds. The moneys deposited into the Fund
7 pursuant to this subparagraph (B) shall be deposited
8 within 2 weeks after the day they were generated,
9 shall be in addition to and not in lieu of any other
10 moneys paid to standardbred purses under this Act, and
11 shall not be commingled with other moneys paid into
12 that Fund. The moneys deposited pursuant to this
13 subparagraph (B) shall be allocated as provided by the
14 Department of Agriculture, with the advice and
15 assistance of the Illinois Standardbred Breeders Fund
16 Advisory Board.
17 (7.2) Notwithstanding any other provision of this Act
18 to the contrary, if no thoroughbred racing is conducted at
19 a racetrack located in Madison County during any calendar
20 year beginning on or after January 1, 2002, all moneys
21 derived by that racetrack from simulcast wagering and
22 inter-track wagering that (1) are to be used for purses
23 and (2) are generated between the hours of 6:30 a.m. and
24 6:30 p.m. during that calendar year shall be deposited as
25 follows:
26 (A) If the licensee that conducts horse racing at

SB2254- 187 -LRB102 15486 SMS 20849 b
1 that racetrack requests from the Division Board at
2 least as many racing dates as were conducted in
3 calendar year 2000, 80% shall be deposited into its
4 standardbred purse account; and
5 (B) Twenty percent shall be deposited into the
6 Illinois Colt Stakes Purse Distribution Fund. Moneys
7 deposited into the Illinois Colt Stakes Purse
8 Distribution Fund pursuant to this subparagraph (B)
9 shall be paid to Illinois conceived and foaled
10 thoroughbred breeders' programs and to thoroughbred
11 purses for races conducted at any county fairgrounds
12 for Illinois conceived and foaled horses at the
13 discretion of the Department of Agriculture, with the
14 advice and assistance of the Illinois Thoroughbred
15 Breeders Fund Advisory Board. The moneys deposited
16 into the Illinois Colt Stakes Purse Distribution Fund
17 pursuant to this subparagraph (B) shall be deposited
18 within 2 weeks after the day they were generated,
19 shall be in addition to and not in lieu of any other
20 moneys paid to thoroughbred purses under this Act, and
21 shall not be commingled with other moneys deposited
22 into that Fund.
23 (7.3) (Blank).
24 (7.4) (Blank).
25 (8) Notwithstanding any provision in this Act to the
26 contrary, an organization licensee from a track located in

SB2254- 188 -LRB102 15486 SMS 20849 b
1 a county with a population in excess of 230,000 and that
2 borders the Mississippi River and its affiliated non-host
3 licensees shall not be entitled to share in any retention
4 generated on racing, inter-track wagering, or simulcast
5 wagering at any other Illinois wagering facility.
6 (8.1) Notwithstanding any provisions in this Act to
7 the contrary, if 2 organization licensees are conducting
8 standardbred race meetings concurrently between the hours
9 of 6:30 p.m. and 6:30 a.m., after payment of all
10 applicable State and local taxes and interstate commission
11 fees, the remainder of the amount retained from simulcast
12 wagering otherwise attributable to the host track and to
13 host track purses shall be split daily between the 2
14 organization licensees and the purses at the tracks of the
15 2 organization licensees, respectively, based on each
16 organization licensee's share of the total live handle for
17 that day, provided that this provision shall not apply to
18 any non-host licensee that derives its license from a
19 track located in a county with a population in excess of
20 230,000 and that borders the Mississippi River.
21 (9) (Blank).
22 (10) (Blank).
23 (11) (Blank).
24 (12) The Division Board shall have authority to compel
25 all host tracks to receive the simulcast of any or all
26 races conducted at the Springfield or DuQuoin State

SB2254- 189 -LRB102 15486 SMS 20849 b
1 fairgrounds and include all such races as part of their
2 simulcast programs.
3 (13) Notwithstanding any other provision of this Act,
4 in the event that the total Illinois pari-mutuel handle on
5 Illinois horse races at all wagering facilities in any
6 calendar year is less than 75% of the total Illinois
7 pari-mutuel handle on Illinois horse races at all such
8 wagering facilities for calendar year 1994, then each
9 wagering facility that has an annual total Illinois
10 pari-mutuel handle on Illinois horse races that is less
11 than 75% of the total Illinois pari-mutuel handle on
12 Illinois horse races at such wagering facility for
13 calendar year 1994, shall be permitted to receive, from
14 any amount otherwise payable to the purse account at the
15 race track with which the wagering facility is affiliated
16 in the succeeding calendar year, an amount equal to 2% of
17 the differential in total Illinois pari-mutuel handle on
18 Illinois horse races at the wagering facility between that
19 calendar year in question and 1994 provided, however, that
20 a wagering facility shall not be entitled to any such
21 payment until the Division Board certifies in writing to
22 the wagering facility the amount to which the wagering
23 facility is entitled and a schedule for payment of the
24 amount to the wagering facility, based on: (i) the racing
25 dates awarded to the race track affiliated with the
26 wagering facility during the succeeding year; (ii) the

SB2254- 190 -LRB102 15486 SMS 20849 b
1 sums available or anticipated to be available in the purse
2 account of the race track affiliated with the wagering
3 facility for purses during the succeeding year; and (iii)
4 the need to ensure reasonable purse levels during the
5 payment period. The Division's Board's certification shall
6 be provided no later than January 31 of the succeeding
7 year. In the event a wagering facility entitled to a
8 payment under this paragraph (13) is affiliated with a
9 race track that maintains purse accounts for both
10 standardbred and thoroughbred racing, the amount to be
11 paid to the wagering facility shall be divided between
12 each purse account pro rata, based on the amount of
13 Illinois handle on Illinois standardbred and thoroughbred
14 racing respectively at the wagering facility during the
15 previous calendar year. Annually, the General Assembly
16 shall appropriate sufficient funds from the General
17 Revenue Fund to the Department of Agriculture for payment
18 into the thoroughbred and standardbred horse racing purse
19 accounts at Illinois pari-mutuel tracks. The amount paid
20 to each purse account shall be the amount certified by the
21 Division Illinois Racing Board in January to be
22 transferred from each account to each eligible racing
23 facility in accordance with the provisions of this
24 Section. Beginning in the calendar year in which an
25 organization licensee that is eligible to receive payment
26 under this paragraph (13) begins to receive funds from

SB2254- 191 -LRB102 15486 SMS 20849 b
1 gaming pursuant to an organization gaming license issued
2 under the Illinois Gambling Act, the amount of the payment
3 due to all wagering facilities licensed under that
4 organization licensee under this paragraph (13) shall be
5 the amount certified by the Division Board in January of
6 that year. An organization licensee and its related
7 wagering facilities shall no longer be able to receive
8 payments under this paragraph (13) beginning in the year
9 subsequent to the first year in which the organization
10 licensee begins to receive funds from gaming pursuant to
11 an organization gaming license issued under the Illinois
12 Gambling Act.
13 (h) The Division Board may approve and license the conduct
14of inter-track wagering and simulcast wagering by inter-track
15wagering licensees and inter-track wagering location licensees
16subject to the following terms and conditions:
17 (1) Any person licensed to conduct a race meeting (i)
18 at a track where 60 or more days of racing were conducted
19 during the immediately preceding calendar year or where
20 over the 5 immediately preceding calendar years an average
21 of 30 or more days of racing were conducted annually may be
22 issued an inter-track wagering license; (ii) at a track
23 located in a county that is bounded by the Mississippi
24 River, which has a population of less than 150,000
25 according to the 1990 decennial census, and an average of
26 at least 60 days of racing per year between 1985 and 1993

SB2254- 192 -LRB102 15486 SMS 20849 b
1 may be issued an inter-track wagering license; (iii) at a
2 track awarded standardbred racing dates; or (iv) at a
3 track located in Madison County that conducted at least
4 100 days of live racing during the immediately preceding
5 calendar year may be issued an inter-track wagering
6 license, unless a lesser schedule of live racing is the
7 result of (A) weather, unsafe track conditions, or other
8 acts of God; (B) an agreement between the organization
9 licensee and the associations representing the largest
10 number of owners, trainers, jockeys, or standardbred
11 drivers who race horses at that organization licensee's
12 racing meeting; or (C) a finding by the Division Board of
13 extraordinary circumstances and that it was in the best
14 interest of the public and the sport to conduct fewer than
15 100 days of live racing. Any such person having operating
16 control of the racing facility may receive inter-track
17 wagering location licenses. An eligible race track located
18 in a county that has a population of more than 230,000 and
19 that is bounded by the Mississippi River may establish up
20 to 9 inter-track wagering locations, an eligible race
21 track located in Stickney Township in Cook County may
22 establish up to 16 inter-track wagering locations, and an
23 eligible race track located in Palatine Township in Cook
24 County may establish up to 18 inter-track wagering
25 locations. An eligible racetrack conducting standardbred
26 racing may have up to 16 inter-track wagering locations.

SB2254- 193 -LRB102 15486 SMS 20849 b
1 An application for said license shall be filed with the
2 Division Board prior to such dates as may be fixed by the
3 Division Board. With an application for an inter-track
4 wagering location license there shall be delivered to the
5 Division Board a certified check or bank draft payable to
6 the order of the Division Board for an amount equal to
7 $500. The application shall be on forms prescribed and
8 furnished by the Division Board. The application shall
9 comply with all other rules, regulations and conditions
10 imposed by the Division Board in connection therewith.
11 (2) The Division Board shall examine the applications
12 with respect to their conformity with this Act and the
13 rules and regulations imposed by the Division Board. If
14 found to be in compliance with the Act and rules and
15 regulations of the Division Board, the Division Board may
16 then issue a license to conduct inter-track wagering and
17 simulcast wagering to such applicant. All such
18 applications shall be acted upon by the Division Board at
19 a meeting to be held on such date as may be fixed by the
20 Division Board.
21 (3) In granting licenses to conduct inter-track
22 wagering and simulcast wagering, the Division Board shall
23 give due consideration to the best interests of the
24 public, of horse racing, and of maximizing revenue to the
25 State.
26 (4) Prior to the issuance of a license to conduct

SB2254- 194 -LRB102 15486 SMS 20849 b
1 inter-track wagering and simulcast wagering, the applicant
2 shall file with the Division Board a bond payable to the
3 State of Illinois in the sum of $50,000, executed by the
4 applicant and a surety company or companies authorized to
5 do business in this State, and conditioned upon (i) the
6 payment by the licensee of all taxes due under Section 27
7 or 27.1 and any other monies due and payable under this
8 Act, and (ii) distribution by the licensee, upon
9 presentation of the winning ticket or tickets, of all sums
10 payable to the patrons of pari-mutuel pools.
11 (5) Each license to conduct inter-track wagering and
12 simulcast wagering shall specify the person to whom it is
13 issued, the dates on which such wagering is permitted, and
14 the track or location where the wagering is to be
15 conducted.
16 (6) All wagering under such license is subject to this
17 Act and to the rules and regulations from time to time
18 prescribed by the Division Board, and every such license
19 issued by the Division Board shall contain a recital to
20 that effect.
21 (7) An inter-track wagering licensee or inter-track
22 wagering location licensee may accept wagers at the track
23 or location where it is licensed, or as otherwise provided
24 under this Act.
25 (8) Inter-track wagering or simulcast wagering shall
26 not be conducted at any track less than 4 miles from a

SB2254- 195 -LRB102 15486 SMS 20849 b
1 track at which a racing meeting is in progress.
2 (8.1) Inter-track wagering location licensees who
3 derive their licenses from a particular organization
4 licensee shall conduct inter-track wagering and simulcast
5 wagering only at locations that are within 160 miles of
6 that race track where the particular organization licensee
7 is licensed to conduct racing. However, inter-track
8 wagering and simulcast wagering shall not be conducted by
9 those licensees at any location within 5 miles of any race
10 track at which a horse race meeting has been licensed in
11 the current year, unless the person having operating
12 control of such race track has given its written consent
13 to such inter-track wagering location licensees, which
14 consent must be filed with the Division Board at or prior
15 to the time application is made. In the case of any
16 inter-track wagering location licensee initially licensed
17 after December 31, 2013, inter-track wagering and
18 simulcast wagering shall not be conducted by those
19 inter-track wagering location licensees that are located
20 outside the City of Chicago at any location within 8 miles
21 of any race track at which a horse race meeting has been
22 licensed in the current year, unless the person having
23 operating control of such race track has given its written
24 consent to such inter-track wagering location licensees,
25 which consent must be filed with the Division Board at or
26 prior to the time application is made.

SB2254- 196 -LRB102 15486 SMS 20849 b
1 (8.2) Inter-track wagering or simulcast wagering shall
2 not be conducted by an inter-track wagering location
3 licensee at any location within 100 feet of an existing
4 church, an existing elementary or secondary public school,
5 or an existing elementary or secondary private school
6 registered with or recognized by the State Board of
7 Education. The distance of 100 feet shall be measured to
8 the nearest part of any building used for worship
9 services, education programs, or conducting inter-track
10 wagering by an inter-track wagering location licensee, and
11 not to property boundaries. However, inter-track wagering
12 or simulcast wagering may be conducted at a site within
13 100 feet of a church or school if such church or school has
14 been erected or established after the Division Board
15 issues the original inter-track wagering location license
16 at the site in question. Inter-track wagering location
17 licensees may conduct inter-track wagering and simulcast
18 wagering only in areas that are zoned for commercial or
19 manufacturing purposes or in areas for which a special use
20 has been approved by the local zoning authority. However,
21 no license to conduct inter-track wagering and simulcast
22 wagering shall be granted by the Division Board with
23 respect to any inter-track wagering location within the
24 jurisdiction of any local zoning authority which has, by
25 ordinance or by resolution, prohibited the establishment
26 of an inter-track wagering location within its

SB2254- 197 -LRB102 15486 SMS 20849 b
1 jurisdiction. However, inter-track wagering and simulcast
2 wagering may be conducted at a site if such ordinance or
3 resolution is enacted after the Division Board licenses
4 the original inter-track wagering location licensee for
5 the site in question.
6 (9) (Blank).
7 (10) An inter-track wagering licensee or an
8 inter-track wagering location licensee may retain, subject
9 to the payment of the privilege taxes and the purses, an
10 amount not to exceed 17% of all money wagered. Each
11 program of racing conducted by each inter-track wagering
12 licensee or inter-track wagering location licensee shall
13 be considered a separate racing day for the purpose of
14 determining the daily handle and computing the privilege
15 tax or pari-mutuel tax on such daily handle as provided in
16 Section 27.
17 (10.1) Except as provided in subsection (g) of Section
18 27 of this Act, inter-track wagering location licensees
19 shall pay 1% of the pari-mutuel handle at each location to
20 the municipality in which such location is situated and 1%
21 of the pari-mutuel handle at each location to the county
22 in which such location is situated. In the event that an
23 inter-track wagering location licensee is situated in an
24 unincorporated area of a county, such licensee shall pay
25 2% of the pari-mutuel handle from such location to such
26 county. Inter-track wagering location licensees must pay

SB2254- 198 -LRB102 15486 SMS 20849 b
1 the handle percentage required under this paragraph to the
2 municipality and county no later than the 20th of the
3 month following the month such handle was generated.
4 (10.2) Notwithstanding any other provision of this
5 Act, with respect to inter-track wagering at a race track
6 located in a county that has a population of more than
7 230,000 and that is bounded by the Mississippi River ("the
8 first race track"), or at a facility operated by an
9 inter-track wagering licensee or inter-track wagering
10 location licensee that derives its license from the
11 organization licensee that operates the first race track,
12 on races conducted at the first race track or on races
13 conducted at another Illinois race track and
14 simultaneously televised to the first race track or to a
15 facility operated by an inter-track wagering licensee or
16 inter-track wagering location licensee that derives its
17 license from the organization licensee that operates the
18 first race track, those moneys shall be allocated as
19 follows:
20 (A) That portion of all moneys wagered on
21 standardbred racing that is required under this Act to
22 be paid to purses shall be paid to purses for
23 standardbred races.
24 (B) That portion of all moneys wagered on
25 thoroughbred racing that is required under this Act to
26 be paid to purses shall be paid to purses for

SB2254- 199 -LRB102 15486 SMS 20849 b
1 thoroughbred races.
2 (11) (A) After payment of the privilege or pari-mutuel
3 tax, any other applicable taxes, and the costs and
4 expenses in connection with the gathering, transmission,
5 and dissemination of all data necessary to the conduct of
6 inter-track wagering, the remainder of the monies retained
7 under either Section 26 or Section 26.2 of this Act by the
8 inter-track wagering licensee on inter-track wagering
9 shall be allocated with 50% to be split between the 2
10 participating licensees and 50% to purses, except that an
11 inter-track wagering licensee that derives its license
12 from a track located in a county with a population in
13 excess of 230,000 and that borders the Mississippi River
14 shall not divide any remaining retention with the Illinois
15 organization licensee that provides the race or races, and
16 an inter-track wagering licensee that accepts wagers on
17 races conducted by an organization licensee that conducts
18 a race meet in a county with a population in excess of
19 230,000 and that borders the Mississippi River shall not
20 divide any remaining retention with that organization
21 licensee.
22 (B) From the sums permitted to be retained pursuant to
23 this Act each inter-track wagering location licensee shall
24 pay (i) the privilege or pari-mutuel tax to the State;
25 (ii) 4.75% of the pari-mutuel handle on inter-track
26 wagering at such location on races as purses, except that

SB2254- 200 -LRB102 15486 SMS 20849 b
1 an inter-track wagering location licensee that derives its
2 license from a track located in a county with a population
3 in excess of 230,000 and that borders the Mississippi
4 River shall retain all purse moneys for its own purse
5 account consistent with distribution set forth in this
6 subsection (h), and inter-track wagering location
7 licensees that accept wagers on races conducted by an
8 organization licensee located in a county with a
9 population in excess of 230,000 and that borders the
10 Mississippi River shall distribute all purse moneys to
11 purses at the operating host track; (iii) until January 1,
12 2000, except as provided in subsection (g) of Section 27
13 of this Act, 1% of the pari-mutuel handle wagered on
14 inter-track wagering and simulcast wagering at each
15 inter-track wagering location licensee facility to the
16 Horse Racing Tax Allocation Fund, provided that, to the
17 extent the total amount collected and distributed to the
18 Horse Racing Tax Allocation Fund under this subsection (h)
19 during any calendar year exceeds the amount collected and
20 distributed to the Horse Racing Tax Allocation Fund during
21 calendar year 1994, that excess amount shall be
22 redistributed (I) to all inter-track wagering location
23 licensees, based on each licensee's pro rata share of the
24 total handle from inter-track wagering and simulcast
25 wagering for all inter-track wagering location licensees
26 during the calendar year in which this provision is

SB2254- 201 -LRB102 15486 SMS 20849 b
1 applicable; then (II) the amounts redistributed to each
2 inter-track wagering location licensee as described in
3 subpart (I) shall be further redistributed as provided in
4 subparagraph (B) of paragraph (5) of subsection (g) of
5 this Section 26 provided first, that the shares of those
6 amounts, which are to be redistributed to the host track
7 or to purses at the host track under subparagraph (B) of
8 paragraph (5) of subsection (g) of this Section 26 shall
9 be redistributed based on each host track's pro rata share
10 of the total inter-track wagering and simulcast wagering
11 handle at all host tracks during the calendar year in
12 question, and second, that any amounts redistributed as
13 described in part (I) to an inter-track wagering location
14 licensee that accepts wagers on races conducted by an
15 organization licensee that conducts a race meet in a
16 county with a population in excess of 230,000 and that
17 borders the Mississippi River shall be further
18 redistributed, effective January 1, 2017, as provided in
19 paragraph (7) of subsection (g) of this Section 26, with
20 the portion of that further redistribution allocated to
21 purses at that organization licensee to be divided between
22 standardbred purses and thoroughbred purses based on the
23 amounts otherwise allocated to purses at that organization
24 licensee during the calendar year in question; and (iv) 8%
25 of the pari-mutuel handle on inter-track wagering wagered
26 at such location to satisfy all costs and expenses of

SB2254- 202 -LRB102 15486 SMS 20849 b
1 conducting its wagering. The remainder of the monies
2 retained by the inter-track wagering location licensee
3 shall be allocated 40% to the location licensee and 60% to
4 the organization licensee which provides the Illinois
5 races to the location, except that an inter-track wagering
6 location licensee that derives its license from a track
7 located in a county with a population in excess of 230,000
8 and that borders the Mississippi River shall not divide
9 any remaining retention with the organization licensee
10 that provides the race or races and an inter-track
11 wagering location licensee that accepts wagers on races
12 conducted by an organization licensee that conducts a race
13 meet in a county with a population in excess of 230,000 and
14 that borders the Mississippi River shall not divide any
15 remaining retention with the organization licensee.
16 Notwithstanding the provisions of clauses (ii) and (iv) of
17 this paragraph, in the case of the additional inter-track
18 wagering location licenses authorized under paragraph (1)
19 of this subsection (h) by Public Act 87-110, those
20 licensees shall pay the following amounts as purses:
21 during the first 12 months the licensee is in operation,
22 5.25% of the pari-mutuel handle wagered at the location on
23 races; during the second 12 months, 5.25%; during the
24 third 12 months, 5.75%; during the fourth 12 months,
25 6.25%; and during the fifth 12 months and thereafter,
26 6.75%. The following amounts shall be retained by the

SB2254- 203 -LRB102 15486 SMS 20849 b
1 licensee to satisfy all costs and expenses of conducting
2 its wagering: during the first 12 months the licensee is
3 in operation, 8.25% of the pari-mutuel handle wagered at
4 the location; during the second 12 months, 8.25%; during
5 the third 12 months, 7.75%; during the fourth 12 months,
6 7.25%; and during the fifth 12 months and thereafter,
7 6.75%. For additional inter-track wagering location
8 licensees authorized under Public Act 89-16, purses for
9 the first 12 months the licensee is in operation shall be
10 5.75% of the pari-mutuel wagered at the location, purses
11 for the second 12 months the licensee is in operation
12 shall be 6.25%, and purses thereafter shall be 6.75%. For
13 additional inter-track location licensees authorized under
14 Public Act 89-16, the licensee shall be allowed to retain
15 to satisfy all costs and expenses: 7.75% of the
16 pari-mutuel handle wagered at the location during its
17 first 12 months of operation, 7.25% during its second 12
18 months of operation, and 6.75% thereafter.
19 (C) There is hereby created the Horse Racing Tax
20 Allocation Fund which shall remain in existence until
21 December 31, 1999. Moneys remaining in the Fund after
22 December 31, 1999 shall be paid into the General Revenue
23 Fund. Until January 1, 2000, all monies paid into the
24 Horse Racing Tax Allocation Fund pursuant to this
25 paragraph (11) by inter-track wagering location licensees
26 located in park districts of 500,000 population or less,

SB2254- 204 -LRB102 15486 SMS 20849 b
1 or in a municipality that is not included within any park
2 district but is included within a conservation district
3 and is the county seat of a county that (i) is contiguous
4 to the state of Indiana and (ii) has a 1990 population of
5 88,257 according to the United States Bureau of the
6 Census, and operating on May 1, 1994 shall be allocated by
7 appropriation as follows:
8 Two-sevenths to the Department of Agriculture.
9 Fifty percent of this two-sevenths shall be used to
10 promote the Illinois horse racing and breeding
11 industry, and shall be distributed by the Department
12 of Agriculture upon the advice of a 9-member committee
13 appointed by the Governor consisting of the following
14 members: the Director of Agriculture, who shall serve
15 as chairman; 2 representatives of organization
16 licensees conducting thoroughbred race meetings in
17 this State, recommended by those licensees; 2
18 representatives of organization licensees conducting
19 standardbred race meetings in this State, recommended
20 by those licensees; a representative of the Illinois
21 Thoroughbred Breeders and Owners Foundation,
22 recommended by that Foundation; a representative of
23 the Illinois Standardbred Owners and Breeders
24 Association, recommended by that Association; a
25 representative of the Horsemen's Benevolent and
26 Protective Association or any successor organization

SB2254- 205 -LRB102 15486 SMS 20849 b
1 thereto established in Illinois comprised of the
2 largest number of owners and trainers, recommended by
3 that Association or that successor organization; and a
4 representative of the Illinois Harness Horsemen's
5 Association, recommended by that Association.
6 Committee members shall serve for terms of 2 years,
7 commencing January 1 of each even-numbered year. If a
8 representative of any of the above-named entities has
9 not been recommended by January 1 of any even-numbered
10 year, the Governor shall appoint a committee member to
11 fill that position. Committee members shall receive no
12 compensation for their services as members but shall
13 be reimbursed for all actual and necessary expenses
14 and disbursements incurred in the performance of their
15 official duties. The remaining 50% of this
16 two-sevenths shall be distributed to county fairs for
17 premiums and rehabilitation as set forth in the
18 Agricultural Fair Act;
19 Four-sevenths to park districts or municipalities
20 that do not have a park district of 500,000 population
21 or less for museum purposes (if an inter-track
22 wagering location licensee is located in such a park
23 district) or to conservation districts for museum
24 purposes (if an inter-track wagering location licensee
25 is located in a municipality that is not included
26 within any park district but is included within a

SB2254- 206 -LRB102 15486 SMS 20849 b
1 conservation district and is the county seat of a
2 county that (i) is contiguous to the state of Indiana
3 and (ii) has a 1990 population of 88,257 according to
4 the United States Bureau of the Census, except that if
5 the conservation district does not maintain a museum,
6 the monies shall be allocated equally between the
7 county and the municipality in which the inter-track
8 wagering location licensee is located for general
9 purposes) or to a municipal recreation board for park
10 purposes (if an inter-track wagering location licensee
11 is located in a municipality that is not included
12 within any park district and park maintenance is the
13 function of the municipal recreation board and the
14 municipality has a 1990 population of 9,302 according
15 to the United States Bureau of the Census); provided
16 that the monies are distributed to each park district
17 or conservation district or municipality that does not
18 have a park district in an amount equal to
19 four-sevenths of the amount collected by each
20 inter-track wagering location licensee within the park
21 district or conservation district or municipality for
22 the Fund. Monies that were paid into the Horse Racing
23 Tax Allocation Fund before August 9, 1991 (the
24 effective date of Public Act 87-110) by an inter-track
25 wagering location licensee located in a municipality
26 that is not included within any park district but is

SB2254- 207 -LRB102 15486 SMS 20849 b
1 included within a conservation district as provided in
2 this paragraph shall, as soon as practicable after
3 August 9, 1991 (the effective date of Public Act
4 87-110), be allocated and paid to that conservation
5 district as provided in this paragraph. Any park
6 district or municipality not maintaining a museum may
7 deposit the monies in the corporate fund of the park
8 district or municipality where the inter-track
9 wagering location is located, to be used for general
10 purposes; and
11 One-seventh to the Agricultural Premium Fund to be
12 used for distribution to agricultural home economics
13 extension councils in accordance with "An Act in
14 relation to additional support and finances for the
15 Agricultural and Home Economic Extension Councils in
16 the several counties of this State and making an
17 appropriation therefor", approved July 24, 1967.
18 Until January 1, 2000, all other monies paid into the
19 Horse Racing Tax Allocation Fund pursuant to this
20 paragraph (11) shall be allocated by appropriation as
21 follows:
22 Two-sevenths to the Department of Agriculture.
23 Fifty percent of this two-sevenths shall be used to
24 promote the Illinois horse racing and breeding
25 industry, and shall be distributed by the Department
26 of Agriculture upon the advice of a 9-member committee

SB2254- 208 -LRB102 15486 SMS 20849 b
1 appointed by the Governor consisting of the following
2 members: the Director of Agriculture, who shall serve
3 as chairman; 2 representatives of organization
4 licensees conducting thoroughbred race meetings in
5 this State, recommended by those licensees; 2
6 representatives of organization licensees conducting
7 standardbred race meetings in this State, recommended
8 by those licensees; a representative of the Illinois
9 Thoroughbred Breeders and Owners Foundation,
10 recommended by that Foundation; a representative of
11 the Illinois Standardbred Owners and Breeders
12 Association, recommended by that Association; a
13 representative of the Horsemen's Benevolent and
14 Protective Association or any successor organization
15 thereto established in Illinois comprised of the
16 largest number of owners and trainers, recommended by
17 that Association or that successor organization; and a
18 representative of the Illinois Harness Horsemen's
19 Association, recommended by that Association.
20 Committee members shall serve for terms of 2 years,
21 commencing January 1 of each even-numbered year. If a
22 representative of any of the above-named entities has
23 not been recommended by January 1 of any even-numbered
24 year, the Governor shall appoint a committee member to
25 fill that position. Committee members shall receive no
26 compensation for their services as members but shall

SB2254- 209 -LRB102 15486 SMS 20849 b
1 be reimbursed for all actual and necessary expenses
2 and disbursements incurred in the performance of their
3 official duties. The remaining 50% of this
4 two-sevenths shall be distributed to county fairs for
5 premiums and rehabilitation as set forth in the
6 Agricultural Fair Act;
7 Four-sevenths to museums and aquariums located in
8 park districts of over 500,000 population; provided
9 that the monies are distributed in accordance with the
10 previous year's distribution of the maintenance tax
11 for such museums and aquariums as provided in Section
12 2 of the Park District Aquarium and Museum Act; and
13 One-seventh to the Agricultural Premium Fund to be
14 used for distribution to agricultural home economics
15 extension councils in accordance with "An Act in
16 relation to additional support and finances for the
17 Agricultural and Home Economic Extension Councils in
18 the several counties of this State and making an
19 appropriation therefor", approved July 24, 1967. This
20 subparagraph (C) shall be inoperative and of no force
21 and effect on and after January 1, 2000.
22 (D) Except as provided in paragraph (11) of this
23 subsection (h), with respect to purse allocation from
24 inter-track wagering, the monies so retained shall be
25 divided as follows:
26 (i) If the inter-track wagering licensee,

SB2254- 210 -LRB102 15486 SMS 20849 b
1 except an inter-track wagering licensee that
2 derives its license from an organization licensee
3 located in a county with a population in excess of
4 230,000 and bounded by the Mississippi River, is
5 not conducting its own race meeting during the
6 same dates, then the entire purse allocation shall
7 be to purses at the track where the races wagered
8 on are being conducted.
9 (ii) If the inter-track wagering licensee,
10 except an inter-track wagering licensee that
11 derives its license from an organization licensee
12 located in a county with a population in excess of
13 230,000 and bounded by the Mississippi River, is
14 also conducting its own race meeting during the
15 same dates, then the purse allocation shall be as
16 follows: 50% to purses at the track where the
17 races wagered on are being conducted; 50% to
18 purses at the track where the inter-track wagering
19 licensee is accepting such wagers.
20 (iii) If the inter-track wagering is being
21 conducted by an inter-track wagering location
22 licensee, except an inter-track wagering location
23 licensee that derives its license from an
24 organization licensee located in a county with a
25 population in excess of 230,000 and bounded by the
26 Mississippi River, the entire purse allocation for

SB2254- 211 -LRB102 15486 SMS 20849 b
1 Illinois races shall be to purses at the track
2 where the race meeting being wagered on is being
3 held.
4 (12) The Division Board shall have all powers
5 necessary and proper to fully supervise and control the
6 conduct of inter-track wagering and simulcast wagering by
7 inter-track wagering licensees and inter-track wagering
8 location licensees, including, but not limited to, the
9 following:
10 (A) The Division Board is vested with power to
11 promulgate reasonable rules and regulations for the
12 purpose of administering the conduct of this wagering
13 and to prescribe reasonable rules, regulations and
14 conditions under which such wagering shall be held and
15 conducted. Such rules and regulations are to provide
16 for the prevention of practices detrimental to the
17 public interest and for the best interests of said
18 wagering and to impose penalties for violations
19 thereof.
20 (B) The Division Board, and any person or persons
21 to whom it delegates this power, is vested with the
22 power to enter the facilities of any licensee to
23 determine whether there has been compliance with the
24 provisions of this Act and the rules and regulations
25 relating to the conduct of such wagering.
26 (C) The Division Board, and any person or persons

SB2254- 212 -LRB102 15486 SMS 20849 b
1 to whom it delegates this power, may eject or exclude
2 from any licensee's facilities, any person whose
3 conduct or reputation is such that his presence on
4 such premises may, in the opinion of the Division
5 Board, call into the question the honesty and
6 integrity of, or interfere with the orderly conduct of
7 such wagering; provided, however, that no person shall
8 be excluded or ejected from such premises solely on
9 the grounds of race, color, creed, national origin,
10 ancestry, or sex.
11 (D) (Blank).
12 (E) The Division Board is vested with the power to
13 appoint delegates to execute any of the powers granted
14 to it under this Section for the purpose of
15 administering this wagering and any rules and
16 regulations promulgated in accordance with this Act.
17 (F) The Division Board shall name and appoint a
18 State director of this wagering who shall be a
19 representative of the Division Board and whose duty it
20 shall be to supervise the conduct of inter-track
21 wagering as may be provided for by the rules and
22 regulations of the Division Board; such rules and
23 regulation shall specify the method of appointment and
24 the Director's powers, authority and duties.
25 (G) The Division Board is vested with the power to
26 impose civil penalties of up to $5,000 against

SB2254- 213 -LRB102 15486 SMS 20849 b
1 individuals and up to $10,000 against licensees for
2 each violation of any provision of this Act relating
3 to the conduct of this wagering, any rules adopted by
4 the Division Board, any order of the Division Board or
5 any other action which in the Division's Board's
6 discretion, is a detriment or impediment to such
7 wagering.
8 (13) The Department of Agriculture may enter into
9 agreements with licensees authorizing such licensees to
10 conduct inter-track wagering on races to be held at the
11 licensed race meetings conducted by the Department of
12 Agriculture. Such agreement shall specify the races of the
13 Department of Agriculture's licensed race meeting upon
14 which the licensees will conduct wagering. In the event
15 that a licensee conducts inter-track pari-mutuel wagering
16 on races from the Illinois State Fair or DuQuoin State
17 Fair which are in addition to the licensee's previously
18 approved racing program, those races shall be considered a
19 separate racing day for the purpose of determining the
20 daily handle and computing the privilege or pari-mutuel
21 tax on that daily handle as provided in Sections 27 and
22 27.1. Such agreements shall be approved by the Division
23 Board before such wagering may be conducted. In
24 determining whether to grant approval, the Division Board
25 shall give due consideration to the best interests of the
26 public and of horse racing. The provisions of paragraphs

SB2254- 214 -LRB102 15486 SMS 20849 b
1 (1), (8), (8.1), and (8.2) of subsection (h) of this
2 Section which are not specified in this paragraph (13)
3 shall not apply to licensed race meetings conducted by the
4 Department of Agriculture at the Illinois State Fair in
5 Sangamon County or the DuQuoin State Fair in Perry County,
6 or to any wagering conducted on those race meetings.
7 (14) An inter-track wagering location license
8 authorized by the Board in 2016 that is owned and operated
9 by a race track in Rock Island County shall be transferred
10 to a commonly owned race track in Cook County on August 12,
11 2016 (the effective date of Public Act 99-757). The
12 licensee shall retain its status in relation to purse
13 distribution under paragraph (11) of this subsection (h)
14 following the transfer to the new entity. The pari-mutuel
15 tax credit under Section 32.1 shall not be applied toward
16 any pari-mutuel tax obligation of the inter-track wagering
17 location licensee of the license that is transferred under
18 this paragraph (14).
19 (i) Notwithstanding the other provisions of this Act, the
20conduct of wagering at wagering facilities is authorized on
21all days, except as limited by subsection (b) of Section 19 of
22this Act.
23(Source: P.A. 100-201, eff. 8-18-17; 100-627, eff. 7-20-18;
24100-1152, eff. 12-14-18; 101-31, eff. 6-28-19; 101-52, eff.
257-12-19; 101-81, eff. 7-12-19; 101-109, eff. 7-19-19; revised
269-27-19.)

SB2254- 215 -LRB102 15486 SMS 20849 b
1 (230 ILCS 5/26.9)
2 Sec. 26.9. Beginning on February 1, 2014, in addition to
3the surcharge imposed in Sections 26.3, 26.4, 26.5, 26.7, and
426.8 of this Act, each licensee shall impose a surcharge of
50.2% on winning wagers and winnings from wagers. The surcharge
6shall be deducted from winnings prior to payout. All amounts
7collected from the surcharges imposed under this Section shall
8be remitted to the Division Board. From amounts collected
9under this Section, the Division Board shall deposit an amount
10not to exceed $100,000 annually into the Quarter Horse Purse
11Fund and all remaining amounts into the Horse Racing Fund.
12(Source: P.A. 100-627, eff. 7-20-18; 101-31, eff. 6-28-19.)
13 (230 ILCS 5/27) (from Ch. 8, par. 37-27)
14 Sec. 27. (a) In addition to the organization license fee
15provided by this Act, until January 1, 2000, a graduated
16privilege tax is hereby imposed for conducting the pari-mutuel
17system of wagering permitted under this Act. Until January 1,
182000, except as provided in subsection (g) of Section 27 of
19this Act, all of the breakage of each racing day held by any
20licensee in the State shall be paid to the State. Until January
211, 2000, such daily graduated privilege tax shall be paid by
22the licensee from the amount permitted to be retained under
23this Act. Until January 1, 2000, each day's graduated
24privilege tax, breakage, and Horse Racing Tax Allocation funds

SB2254- 216 -LRB102 15486 SMS 20849 b
1shall be remitted to the Department of Revenue within 48 hours
2after the close of the racing day upon which it is assessed or
3within such other time as the Division Board prescribes. The
4privilege tax hereby imposed, until January 1, 2000, shall be
5a flat tax at the rate of 2% of the daily pari-mutuel handle
6except as provided in Section 27.1.
7 In addition, every organization licensee, except as
8provided in Section 27.1 of this Act, which conducts multiple
9wagering shall pay, until January 1, 2000, as a privilege tax
10on multiple wagers an amount equal to 1.25% of all moneys
11wagered each day on such multiple wagers, plus an additional
12amount equal to 3.5% of the amount wagered each day on any
13other multiple wager which involves a single betting interest
14on 3 or more horses. The licensee shall remit the amount of
15such taxes to the Department of Revenue within 48 hours after
16the close of the racing day on which it is assessed or within
17such other time as the Division Board prescribes.
18 This subsection (a) shall be inoperative and of no force
19and effect on and after January 1, 2000.
20 (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
21at the rate of 1.5% of the daily pari-mutuel handle is imposed
22at all pari-mutuel wagering facilities and on advance deposit
23wagering from a location other than a wagering facility,
24except as otherwise provided for in this subsection (a-5). In
25addition to the pari-mutuel tax imposed on advance deposit
26wagering pursuant to this subsection (a-5), beginning on

SB2254- 217 -LRB102 15486 SMS 20849 b
1August 24, 2012 (the effective date of Public Act 97-1060), an
2additional pari-mutuel tax at the rate of 0.25% shall be
3imposed on advance deposit wagering. Until August 25, 2012,
4the additional 0.25% pari-mutuel tax imposed on advance
5deposit wagering by Public Act 96-972 shall be deposited into
6the Quarter Horse Purse Fund, which shall be created as a
7non-appropriated trust fund administered by the Division Board
8for grants to thoroughbred organization licensees for payment
9of purses for quarter horse races conducted by the
10organization licensee. Beginning on August 26, 2012, the
11additional 0.25% pari-mutuel tax imposed on advance deposit
12wagering shall be deposited into the Standardbred Purse Fund,
13which shall be created as a non-appropriated trust fund
14administered by the Division Board, for grants to the
15standardbred organization licensees for payment of purses for
16standardbred horse races conducted by the organization
17licensee. Thoroughbred organization licensees may petition the
18Division Board to conduct quarter horse racing and receive
19purse grants from the Quarter Horse Purse Fund. The Division
20Board shall have complete discretion in distributing the
21Quarter Horse Purse Fund to the petitioning organization
22licensees. Beginning on July 26, 2010 (the effective date of
23Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
24the daily pari-mutuel handle is imposed at a pari-mutuel
25facility whose license is derived from a track located in a
26county that borders the Mississippi River and conducted live

SB2254- 218 -LRB102 15486 SMS 20849 b
1racing in the previous year. The pari-mutuel tax imposed by
2this subsection (a-5) shall be remitted to the Department of
3Revenue within 48 hours after the close of the racing day upon
4which it is assessed or within such other time as the Division
5Board prescribes.
6 (a-10) Beginning on the date when an organization licensee
7begins conducting gaming pursuant to an organization gaming
8license, the following pari-mutuel tax is imposed upon an
9organization licensee on Illinois races at the licensee's
10racetrack:
11 1.5% of the pari-mutuel handle at or below the average
12 daily pari-mutuel handle for 2011.
13 2% of the pari-mutuel handle above the average daily
14 pari-mutuel handle for 2011 up to 125% of the average
15 daily pari-mutuel handle for 2011.
16 2.5% of the pari-mutuel handle 125% or more above the
17 average daily pari-mutuel handle for 2011 up to 150% of
18 the average daily pari-mutuel handle for 2011.
19 3% of the pari-mutuel handle 150% or more above the
20 average daily pari-mutuel handle for 2011 up to 175% of
21 the average daily pari-mutuel handle for 2011.
22 3.5% of the pari-mutuel handle 175% or more above the
23 average daily pari-mutuel handle for 2011.
24 The pari-mutuel tax imposed by this subsection (a-10)
25shall be remitted to the Division Board within 48 hours after
26the close of the racing day upon which it is assessed or within

SB2254- 219 -LRB102 15486 SMS 20849 b
1such other time as the Division Board prescribes.
2 (b) On or before December 31, 1999, in the event that any
3organization licensee conducts 2 separate programs of races on
4any day, each such program shall be considered a separate
5racing day for purposes of determining the daily handle and
6computing the privilege tax on such daily handle as provided
7in subsection (a) of this Section.
8 (c) Licensees shall at all times keep accurate books and
9records of all monies wagered on each day of a race meeting and
10of the taxes paid to the Department of Revenue under the
11provisions of this Section. The Division Board or its duly
12authorized representative or representatives shall at all
13reasonable times have access to such records for the purpose
14of examining and checking the same and ascertaining whether
15the proper amount of taxes is being paid as provided. The
16Division Board shall require verified reports and a statement
17of the total of all monies wagered daily at each wagering
18facility upon which the taxes are assessed and may prescribe
19forms upon which such reports and statement shall be made.
20 (d) Before a license is issued or re-issued, the licensee
21shall post a bond in the sum of $500,000 to the State of
22Illinois. The bond shall be used to guarantee that the
23licensee faithfully makes the payments, keeps the books and
24records, and makes reports, and conducts games of chance in
25conformity with this Act and the rules adopted by the Division
26Board. The bond shall not be canceled by a surety on less than

SB2254- 220 -LRB102 15486 SMS 20849 b
130 days' notice in writing to the Division Board. If a bond is
2canceled and the licensee fails to file a new bond with the
3Division Board in the required amount on or before the
4effective date of cancellation, the licensee's license shall
5be revoked. The total and aggregate liability of the surety on
6the bond is limited to the amount specified in the bond.
7 (e) No other license fee, privilege tax, excise tax, or
8racing fee, except as provided in this Act, shall be assessed
9or collected from any such licensee by the State.
10 (f) No other license fee, privilege tax, excise tax or
11racing fee shall be assessed or collected from any such
12licensee by units of local government except as provided in
13paragraph 10.1 of subsection (h) and subsection (f) of Section
1426 of this Act. However, any municipality that has a
15Division-licensed Board licensed horse race meeting at a race
16track wholly within its corporate boundaries or a township
17that has a Division-licensed Board licensed horse race meeting
18at a race track wholly within the unincorporated area of the
19township may charge a local amusement tax not to exceed 10ďż˝ per
20admission to such horse race meeting by the enactment of an
21ordinance. However, any municipality or county that has a
22Division-licensed Board licensed inter-track wagering location
23facility wholly within its corporate boundaries may each
24impose an admission fee not to exceed $1.00 per admission to
25such inter-track wagering location facility, so that a total
26of not more than $2.00 per admission may be imposed. Except as

SB2254- 221 -LRB102 15486 SMS 20849 b
1provided in subparagraph (g) of Section 27 of this Act, the
2inter-track wagering location licensee shall collect any and
3all such fees. Inter-track wagering location licensees must
4pay the admission fees required under this subsection (f) to
5the municipality and county no later than the 20th of the month
6following the month such admission fees were imposed. as the
7Board prescribes
8 (g) Notwithstanding any provision in this Act to the
9contrary, if in any calendar year the total taxes and fees from
10wagering on live racing and from inter-track wagering required
11to be collected from licensees and distributed under this Act
12to all State and local governmental authorities exceeds the
13amount of such taxes and fees distributed to each State and
14local governmental authority to which each State and local
15governmental authority was entitled under this Act for
16calendar year 1994, then the first $11 million of that excess
17amount shall be allocated at the earliest possible date for
18distribution as purse money for the succeeding calendar year.
19Upon reaching the 1994 level, and until the excess amount of
20taxes and fees exceeds $11 million, the Division Board shall
21direct all licensees to cease paying the subject taxes and
22fees and the Division Board shall direct all licensees to
23allocate any such excess amount for purses as follows:
24 (i) the excess amount shall be initially divided
25 between thoroughbred and standardbred purses based on the
26 thoroughbred's and standardbred's respective percentages

SB2254- 222 -LRB102 15486 SMS 20849 b
1 of total Illinois live wagering in calendar year 1994;
2 (ii) each thoroughbred and standardbred organization
3 licensee issued an organization licensee in that
4 succeeding allocation year shall be allocated an amount
5 equal to the product of its percentage of total Illinois
6 live thoroughbred or standardbred wagering in calendar
7 year 1994 (the total to be determined based on the sum of
8 1994 on-track wagering for all organization licensees
9 issued organization licenses in both the allocation year
10 and the preceding year) multiplied by the total amount
11 allocated for standardbred or thoroughbred purses,
12 provided that the first $1,500,000 of the amount allocated
13 to standardbred purses under item (i) shall be allocated
14 to the Department of Agriculture to be expended with the
15 assistance and advice of the Illinois Standardbred
16 Breeders Funds Advisory Board for the purposes listed in
17 subsection (g) of Section 31 of this Act, before the
18 amount allocated to standardbred purses under item (i) is
19 allocated to standardbred organization licensees in the
20 succeeding allocation year.
21 To the extent the excess amount of taxes and fees to be
22collected and distributed to State and local governmental
23authorities exceeds $11 million, that excess amount shall be
24collected and distributed to State and local authorities as
25provided for under this Act.
26(Source: P.A. 100-627, eff. 7-20-18; 101-31, eff. 6-28-19;

SB2254- 223 -LRB102 15486 SMS 20849 b
1101-52, eff. 7-12-19; revised 8-28-19.)
2 (230 ILCS 5/27.2)
3 Sec. 27.2. Withholding of delinquent child support.
4 (a) From winnings required to be reported to the Internal
5Revenue Service and subject to withholding on Form W-2G,
6organization licensees and advance deposit wagering licensees
7licensed under this Act shall withhold up to the full amount of
8winnings necessary to pay the winner's past due child support
9amount as certified by the Department of Healthcare and Family
10Services under Section 10-17.15 of the Illinois Public Aid
11Code. Amounts withheld shall be paid to the Department of
12Healthcare and Family Services by the organization licensee or
13the advance deposit wagering licensee, as applicable.
14 (b) For withholding of winnings, the organization licensee
15or advance deposit wagering licensee shall be entitled to an
16administrative fee not to exceed the lesser of 4% of the total
17amount of cash winnings paid to the gambling winner or $150.
18 (c) In no event may the total amount withheld from the cash
19payout, including the administrative fee, exceed the total
20cash winnings claimed by the obligor. If the cash payout
21claimed is greater than the amount sufficient to satisfy the
22obligor's delinquent child support payments, the organization
23licensee or advance deposit wagering licensee shall pay the
24obligor the remaining balance of the payout, less the
25administrative fee authorized by subsection (b) of this

SB2254- 224 -LRB102 15486 SMS 20849 b
1Section, at the time it is claimed.
2 (d) An organization licensee or an advance deposit
3wagering licensee that in good faith complies with the
4requirements of this Section shall not be liable to the gaming
5winner or any other individual or entity.
6 (e) For an organization licensee under this Act, an agent
7of the Division Board (such as an employee of the Division
8Board) shall be responsible for notifying the person
9identified as being delinquent in child support payments that
10the organization licensee is required by law to withhold all
11or a portion of his or her winnings. This notification must be
12provided at the time the winnings are withheld.
13 (f) The provisions of this Section shall be operative on
14and after the date that rules are adopted by the Department of
15Healthcare and Family Services pursuant to Section 10-17.15 of
16the Illinois Public Aid Code.
17 (g) The delinquent child support required to be withheld
18under this Section and the administrative fee under subsection
19(b) of this Section have priority over any secured or
20unsecured claim on cash winnings, except claims for federal or
21State taxes that are required to be withheld under federal or
22State law.
23(Source: P.A. 98-318, eff. 8-12-13.)
24 (230 ILCS 5/28) (from Ch. 8, par. 37-28)
25 Sec. 28. Except as provided in subsection (g) of Section

SB2254- 225 -LRB102 15486 SMS 20849 b
127 of this Act, moneys collected shall be distributed
2according to the provisions of this Section 28.
3 (a) Thirty per cent of the total of all monies received by
4the State as privilege taxes shall be paid into the
5Metropolitan Exposition, Auditorium and Office Building Fund
6in the State Treasury.
7 (b) In addition, 4.5% of the total of all monies received
8by the State as privilege taxes shall be paid into the State
9treasury into a special Fund to be known as the Metropolitan
10Exposition, Auditorium and Office Building Fund.
11 (c) Fifty per cent of the total of all monies received by
12the State as privilege taxes under the provisions of this Act
13shall be paid into the Agricultural Premium Fund.
14 (d) Seven per cent of the total of all monies received by
15the State as privilege taxes shall be paid into the Fair and
16Exposition Fund in the State treasury; provided, however, that
17when all bonds issued prior to July 1, 1984 by the Metropolitan
18Fair and Exposition Authority shall have been paid or payment
19shall have been provided for upon a refunding of those bonds,
20thereafter 1/12 of $1,665,662 of such monies shall be paid
21each month into the Build Illinois Fund, and the remainder
22into the Fair and Exposition Fund. All excess monies shall be
23allocated to the Department of Agriculture for distribution to
24county fairs for premiums and rehabilitation as set forth in
25the Agricultural Fair Act.
26 (e) The monies provided for in Section 30 shall be paid

SB2254- 226 -LRB102 15486 SMS 20849 b
1into the Illinois Thoroughbred Breeders Fund.
2 (f) The monies provided for in Section 31 shall be paid
3into the Illinois Standardbred Breeders Fund.
4 (g) Until January 1, 2000, that part representing 1/2 of
5the total breakage in Thoroughbred, Harness, Appaloosa,
6Arabian, and Quarter Horse racing in the State shall be paid
7into the Illinois Race Track Improvement Fund as established
8in Section 32.
9 (h) All other monies received by the Division Board under
10this Act shall be paid into the Horse Racing Fund.
11 (i) The salaries of the Division Board members, secretary,
12stewards, directors of mutuels, veterinarians,
13representatives, accountants, clerks, stenographers,
14inspectors and other employees of the Division Board, and all
15expenses of the Division Board incident to the administration
16of this Act, including, but not limited to, all expenses and
17salaries incident to the taking of saliva and urine samples in
18accordance with the rules and regulations of the Division
19Board shall be paid out of the Agricultural Premium Fund.
20 (j) The Agricultural Premium Fund shall also be used:
21 (1) for the expenses of operating the Illinois State
22 Fair and the DuQuoin State Fair, including the payment of
23 prize money or premiums;
24 (2) for the distribution to county fairs, vocational
25 agriculture section fairs, agricultural societies, and
26 agricultural extension clubs in accordance with the

SB2254- 227 -LRB102 15486 SMS 20849 b
1 Agricultural Fair Act, as amended;
2 (3) for payment of prize monies and premiums awarded
3 and for expenses incurred in connection with the
4 International Livestock Exposition and the Mid-Continent
5 Livestock Exposition held in Illinois, which premiums, and
6 awards must be approved, and paid by the Illinois
7 Department of Agriculture;
8 (4) for personal service of county agricultural
9 advisors and county home advisors;
10 (5) for distribution to agricultural home economic
11 extension councils in accordance with "An Act in relation
12 to additional support and finance for the Agricultural and
13 Home Economic Extension Councils in the several counties
14 in this State and making an appropriation therefor",
15 approved July 24, 1967, as amended;
16 (6) for research on equine disease, including a
17 development center therefor;
18 (7) for training scholarships for study on equine
19 diseases to students at the University of Illinois College
20 of Veterinary Medicine;
21 (8) for the rehabilitation, repair and maintenance of
22 the Illinois and DuQuoin State Fair Grounds and the
23 structures and facilities thereon and the construction of
24 permanent improvements on such Fair Grounds, including
25 such structures, facilities and property located on such
26 State Fair Grounds which are under the custody and control

SB2254- 228 -LRB102 15486 SMS 20849 b
1 of the Department of Agriculture;
2 (9) (blank);
3 (10) for the expenses of the Department of Commerce
4 and Economic Opportunity under Sections 605-620, 605-625,
5 and 605-630 of the Department of Commerce and Economic
6 Opportunity Law (20 ILCS 605/605-620, 605/605-625, and
7 605/605-630);
8 (11) for remodeling, expanding, and reconstructing
9 facilities destroyed by fire of any Fair and Exposition
10 Authority in counties with a population of 1,000,000 or
11 more inhabitants;
12 (12) for the purpose of assisting in the care and
13 general rehabilitation of veterans with disabilities of
14 any war and their surviving spouses and orphans;
15 (13) for expenses of the Department of State Police
16 for duties performed under this Act;
17 (14) for the Department of Agriculture for soil
18 surveys and soil and water conservation purposes;
19 (15) for the Department of Agriculture for grants to
20 the City of Chicago for conducting the Chicagofest;
21 (16) for the State Comptroller for grants and
22 operating expenses authorized by the Illinois Global
23 Partnership Act.
24 (k) To the extent that monies paid by the Division Board to
25the Agricultural Premium Fund are in the opinion of the
26Governor in excess of the amount necessary for the purposes

SB2254- 229 -LRB102 15486 SMS 20849 b
1herein stated, the Governor shall notify the Comptroller and
2the State Treasurer of such fact, who, upon receipt of such
3notification, shall transfer such excess monies from the
4Agricultural Premium Fund to the General Revenue Fund.
5(Source: P.A. 99-143, eff. 7-27-15; 99-933, eff. 1-27-17;
6100-110, eff. 8-15-17; 100-863, eff. 8-14-18.)
7 (230 ILCS 5/28.1)
8 Sec. 28.1. Payments.
9 (a) Beginning on January 1, 2000, moneys collected by the
10Department of Revenue and the Division Racing Board pursuant
11to Section 26 or Section 27 of this Act shall be deposited into
12the Horse Racing Fund, which is hereby created as a special
13fund in the State Treasury.
14 (b) Appropriations, as approved by the General Assembly,
15may be made from the Horse Racing Fund to the Division Board to
16pay the salaries of the Division Board members, secretary,
17stewards, directors of mutuels, veterinarians,
18representatives, accountants, clerks, stenographers,
19inspectors and other employees of the Division Board, and all
20expenses of the Division Board incident to the administration
21of this Act, including, but not limited to, all expenses and
22salaries incident to the taking of saliva and urine samples in
23accordance with the rules and regulations of the Division
24Board.
25 (c) (Blank).

SB2254- 230 -LRB102 15486 SMS 20849 b
1 (d) Beginning January 1, 2000, payments to all programs in
2existence on the effective date of this amendatory Act of 1999
3that are identified in Sections 26(c), 26(f), 26(h)(11)(C),
4and 28, subsections (a), (b), (c), (d), (e), (f), (g), and (h)
5of Section 30, and subsections (a), (b), (c), (d), (e), (f),
6(g), and (h) of Section 31 shall be made from the General
7Revenue Fund at the funding levels determined by amounts paid
8under this Act in calendar year 1998. Beginning on the
9effective date of this amendatory Act of the 93rd General
10Assembly, payments to the Peoria Park District shall be made
11from the General Revenue Fund at the funding level determined
12by amounts paid to that park district for museum purposes
13under this Act in calendar year 1994.
14 If an inter-track wagering location licensee's facility
15changes its location, then the payments associated with that
16facility under this subsection (d) for museum purposes shall
17be paid to the park district in the area where the facility
18relocates, and the payments shall be used for museum purposes.
19If the facility does not relocate to a park district, then the
20payments shall be paid to the taxing district that is
21responsible for park or museum expenditures.
22 (e) Beginning July 1, 2006, the payment authorized under
23subsection (d) to museums and aquariums located in park
24districts of over 500,000 population shall be paid to museums,
25aquariums, and zoos in amounts determined by Museums in the
26Park, an association of museums, aquariums, and zoos located

SB2254- 231 -LRB102 15486 SMS 20849 b
1on Chicago Park District property.
2 (f) Beginning July 1, 2007, the Children's Discovery
3Museum in Normal, Illinois shall receive payments from the
4General Revenue Fund at the funding level determined by the
5amounts paid to the Miller Park Zoo in Bloomington, Illinois
6under this Section in calendar year 2006.
7(Source: P.A. 98-624, eff. 1-29-14.)
8 (230 ILCS 5/30) (from Ch. 8, par. 37-30)
9 Sec. 30. (a) The General Assembly declares that it is the
10policy of this State to encourage the breeding of thoroughbred
11horses in this State and the ownership of such horses by
12residents of this State in order to provide for: sufficient
13numbers of high quality thoroughbred horses to participate in
14thoroughbred racing meetings in this State, and to establish
15and preserve the agricultural and commercial benefits of such
16breeding and racing industries to the State of Illinois. It is
17the intent of the General Assembly to further this policy by
18the provisions of this Act.
19 (b) Each organization licensee conducting a thoroughbred
20racing meeting pursuant to this Act shall provide at least two
21races each day limited to Illinois conceived and foaled horses
22or Illinois foaled horses or both. A minimum of 6 races shall
23be conducted each week limited to Illinois conceived and
24foaled or Illinois foaled horses or both. No horses shall be
25permitted to start in such races unless duly registered under

SB2254- 232 -LRB102 15486 SMS 20849 b
1the rules of the Department of Agriculture.
2 (c) Conditions of races under subsection (b) shall be
3commensurate with past performance, quality, and class of
4Illinois conceived and foaled and Illinois foaled horses
5available. If, however, sufficient competition cannot be had
6among horses of that class on any day, the races may, with
7consent of the Division Board, be eliminated for that day and
8substitute races provided.
9 (d) There is hereby created a special fund of the State
10Treasury to be known as the Illinois Thoroughbred Breeders
11Fund.
12 Beginning on the effective date of this amendatory Act of
13the 101st General Assembly, the Illinois Thoroughbred Breeders
14Fund shall become a non-appropriated trust fund held separate
15from State moneys. Expenditures from this Fund shall no longer
16be subject to appropriation.
17 Except as provided in subsection (g) of Section 27 of this
18Act, 8.5% of all the monies received by the State as privilege
19taxes on Thoroughbred racing meetings shall be paid into the
20Illinois Thoroughbred Breeders Fund.
21 Notwithstanding any provision of law to the contrary,
22amounts deposited into the Illinois Thoroughbred Breeders Fund
23from revenues generated by gaming pursuant to an organization
24gaming license issued under the Illinois Gambling Act after
25the effective date of this amendatory Act of the 101st General
26Assembly shall be in addition to tax and fee amounts paid under

SB2254- 233 -LRB102 15486 SMS 20849 b
1this Section for calendar year 2019 and thereafter.
2 (e) The Illinois Thoroughbred Breeders Fund shall be
3administered by the Department of Agriculture with the advice
4and assistance of the Advisory Board created in subsection (f)
5of this Section.
6 (f) The Illinois Thoroughbred Breeders Fund Advisory Board
7shall consist of the Director of the Department of
8Agriculture, who shall serve as Chairman; The Director or his
9or her designee a member of the Illinois Racing Board,
10designated by it; 2 representatives of the organization
11licensees conducting thoroughbred racing meetings, recommended
12by them; 2 representatives of the Illinois Thoroughbred
13Breeders and Owners Foundation, recommended by it; one
14representative of the Horsemen's Benevolent Protective
15Association; and one representative from the Illinois
16Thoroughbred Horsemen's Association. Advisory Board members
17shall serve for 2 years commencing January 1 of each odd
18numbered year. If representatives of the organization
19licensees conducting thoroughbred racing meetings, the
20Illinois Thoroughbred Breeders and Owners Foundation, the
21Horsemen's Benevolent Protection Association, and the Illinois
22Thoroughbred Horsemen's Association have not been recommended
23by January 1, of each odd numbered year, the Director of the
24Department of Agriculture shall make an appointment for the
25organization failing to so recommend a member of the Advisory
26Board. Advisory Board members shall receive no compensation

SB2254- 234 -LRB102 15486 SMS 20849 b
1for their services as members but shall be reimbursed for all
2actual and necessary expenses and disbursements incurred in
3the execution of their official duties.
4 (g) Monies expended from the Illinois Thoroughbred
5Breeders Fund shall be expended by the Department of
6Agriculture, with the advice and assistance of the Illinois
7Thoroughbred Breeders Fund Advisory Board, for the following
8purposes only:
9 (1) To provide purse supplements to owners of horses
10 participating in races limited to Illinois conceived and
11 foaled and Illinois foaled horses. Any such purse
12 supplements shall not be included in and shall be paid in
13 addition to any purses, stakes, or breeders' awards
14 offered by each organization licensee as determined by
15 agreement between such organization licensee and an
16 organization representing the horsemen. No monies from the
17 Illinois Thoroughbred Breeders Fund shall be used to
18 provide purse supplements for claiming races in which the
19 minimum claiming price is less than $7,500.
20 (2) To provide stakes and awards to be paid to the
21 owners of the winning horses in certain races limited to
22 Illinois conceived and foaled and Illinois foaled horses
23 designated as stakes races.
24 (2.5) To provide an award to the owner or owners of an
25 Illinois conceived and foaled or Illinois foaled horse
26 that wins a maiden special weight, an allowance, overnight

SB2254- 235 -LRB102 15486 SMS 20849 b
1 handicap race, or claiming race with claiming price of
2 $10,000 or more providing the race is not restricted to
3 Illinois conceived and foaled or Illinois foaled horses.
4 Awards shall also be provided to the owner or owners of
5 Illinois conceived and foaled and Illinois foaled horses
6 that place second or third in those races. To the extent
7 that additional moneys are required to pay the minimum
8 additional awards of 40% of the purse the horse earns for
9 placing first, second or third in those races for Illinois
10 foaled horses and of 60% of the purse the horse earns for
11 placing first, second or third in those races for Illinois
12 conceived and foaled horses, those moneys shall be
13 provided from the purse account at the track where earned.
14 (3) To provide stallion awards to the owner or owners
15 of any stallion that is duly registered with the Illinois
16 Thoroughbred Breeders Fund Program whose duly registered
17 Illinois conceived and foaled offspring wins a race
18 conducted at an Illinois thoroughbred racing meeting other
19 than a claiming race, provided that the stallion stood
20 service within Illinois at the time the offspring was
21 conceived and that the stallion did not stand for service
22 outside of Illinois at any time during the year in which
23 the offspring was conceived.
24 (4) To provide $75,000 annually for purses to be
25 distributed to county fairs that provide for the running
26 of races during each county fair exclusively for the

SB2254- 236 -LRB102 15486 SMS 20849 b
1 thoroughbreds conceived and foaled in Illinois. The
2 conditions of the races shall be developed by the county
3 fair association and reviewed by the Department with the
4 advice and assistance of the Illinois Thoroughbred
5 Breeders Fund Advisory Board. There shall be no wagering
6 of any kind on the running of Illinois conceived and
7 foaled races at county fairs.
8 (4.1) To provide purse money for an Illinois stallion
9 stakes program.
10 (5) No less than 90% of all monies expended from the
11 Illinois Thoroughbred Breeders Fund shall be expended for
12 the purposes in (1), (2), (2.5), (3), (4), (4.1), and (5)
13 as shown above.
14 (6) To provide for educational programs regarding the
15 thoroughbred breeding industry.
16 (7) To provide for research programs concerning the
17 health, development and care of the thoroughbred horse.
18 (8) To provide for a scholarship and training program
19 for students of equine veterinary medicine.
20 (9) To provide for dissemination of public information
21 designed to promote the breeding of thoroughbred horses in
22 Illinois.
23 (10) To provide for all expenses incurred in the
24 administration of the Illinois Thoroughbred Breeders Fund.
25 (h) The Illinois Thoroughbred Breeders Fund is not subject
26to administrative charges or chargebacks, including, but not

SB2254- 237 -LRB102 15486 SMS 20849 b
1limited to, those authorized under Section 8h of the State
2Finance Act.
3 (i) A sum equal to 13% of the first prize money of every
4purse won by an Illinois foaled or Illinois conceived and
5foaled horse in races not limited to Illinois foaled horses or
6Illinois conceived and foaled horses, or both, shall be paid
7by the organization licensee conducting the horse race
8meeting. Such sum shall be paid 50% from the organization
9licensee's share of the money wagered and 50% from the purse
10account as follows: 11 1/2% to the breeder of the winning horse
11and 1 1/2% to the organization representing thoroughbred
12breeders and owners who representative serves on the Illinois
13Thoroughbred Breeders Fund Advisory Board for verifying the
14amounts of breeders' awards earned, ensuring their
15distribution in accordance with this Act, and servicing and
16promoting the Illinois thoroughbred horse racing industry.
17Beginning in the calendar year in which an organization
18licensee that is eligible to receive payments under paragraph
19(13) of subsection (g) of Section 26 of this Act begins to
20receive funds from gaming pursuant to an organization gaming
21license issued under the Illinois Gambling Act, a sum equal to
2221 1/2% of the first prize money of every purse won by an
23Illinois foaled or an Illinois conceived and foaled horse in
24races not limited to an Illinois conceived and foaled horse,
25or both, shall be paid 30% from the organization licensee's
26account and 70% from the purse account as follows: 20% to the

SB2254- 238 -LRB102 15486 SMS 20849 b
1breeder of the winning horse and 1 1/2% to the organization
2representing thoroughbred breeders and owners whose
3representatives serve on the Illinois Thoroughbred Breeders
4Fund Advisory Board for verifying the amounts of breeders'
5awards earned, ensuring their distribution in accordance with
6this Act, and servicing and promoting the Illinois
7Thoroughbred racing industry. The organization representing
8thoroughbred breeders and owners shall cause all expenditures
9of monies received under this subsection (i) to be audited at
10least annually by a registered public accountant. The
11organization shall file copies of each annual audit with the
12Division Racing Board, the Clerk of the House of
13Representatives and the Secretary of the Senate, and shall
14make copies of each annual audit available to the public upon
15request and upon payment of the reasonable cost of
16photocopying the requested number of copies. Such payments
17shall not reduce any award to the owner of the horse or reduce
18the taxes payable under this Act. Upon completion of its
19racing meet, each organization licensee shall deliver to the
20organization representing thoroughbred breeders and owners
21whose representative serves on the Illinois Thoroughbred
22Breeders Fund Advisory Board a listing of all the Illinois
23foaled and the Illinois conceived and foaled horses which won
24breeders' awards and the amount of such breeders' awards under
25this subsection to verify accuracy of payments and assure
26proper distribution of breeders' awards in accordance with the

SB2254- 239 -LRB102 15486 SMS 20849 b
1provisions of this Act. Such payments shall be delivered by
2the organization licensee within 30 days of the end of each
3race meeting.
4 (j) A sum equal to 13% of the first prize money won in
5every race limited to Illinois foaled horses or Illinois
6conceived and foaled horses, or both, shall be paid in the
7following manner by the organization licensee conducting the
8horse race meeting, 50% from the organization licensee's share
9of the money wagered and 50% from the purse account as follows:
1011 1/2% to the breeders of the horses in each such race which
11are the official first, second, third, and fourth finishers
12and 1 1/2% to the organization representing thoroughbred
13breeders and owners whose representatives serve on the
14Illinois Thoroughbred Breeders Fund Advisory Board for
15verifying the amounts of breeders' awards earned, ensuring
16their proper distribution in accordance with this Act, and
17servicing and promoting the Illinois horse racing industry.
18Beginning in the calendar year in which an organization
19licensee that is eligible to receive payments under paragraph
20(13) of subsection (g) of Section 26 of this Act begins to
21receive funds from gaming pursuant to an organization gaming
22license issued under the Illinois Gambling Act, a sum of 21
231/2% of every purse in a race limited to Illinois foaled horses
24or Illinois conceived and foaled horses, or both, shall be
25paid by the organization licensee conducting the horse race
26meeting. Such sum shall be paid 30% from the organization

SB2254- 240 -LRB102 15486 SMS 20849 b
1licensee's account and 70% from the purse account as follows:
220% to the breeders of the horses in each such race who are
3official first, second, third and fourth finishers and 1 1/2%
4to the organization representing thoroughbred breeders and
5owners whose representatives serve on the Illinois
6Thoroughbred Breeders Fund Advisory Board for verifying the
7amounts of breeders' awards earned, ensuring their proper
8distribution in accordance with this Act, and servicing and
9promoting the Illinois thoroughbred horse racing industry. The
10organization representing thoroughbred breeders and owners
11shall cause all expenditures of moneys received under this
12subsection (j) to be audited at least annually by a registered
13public accountant. The organization shall file copies of each
14annual audit with the Division Racing Board, the Clerk of the
15House of Representatives and the Secretary of the Senate, and
16shall make copies of each annual audit available to the public
17upon request and upon payment of the reasonable cost of
18photocopying the requested number of copies. The copies of the
19audit to the General Assembly shall be filed with the Clerk of
20the House of Representatives and the Secretary of the Senate
21in electronic form only, in the manner that the Clerk and the
22Secretary shall direct.
23 The amounts paid to the breeders in accordance with this
24subsection shall be distributed as follows:
25 (1) 60% of such sum shall be paid to the breeder of the
26 horse which finishes in the official first position;

SB2254- 241 -LRB102 15486 SMS 20849 b
1 (2) 20% of such sum shall be paid to the breeder of the
2 horse which finishes in the official second position;
3 (3) 15% of such sum shall be paid to the breeder of the
4 horse which finishes in the official third position; and
5 (4) 5% of such sum shall be paid to the breeder of the
6 horse which finishes in the official fourth position.
7 Such payments shall not reduce any award to the owners of a
8horse or reduce the taxes payable under this Act. Upon
9completion of its racing meet, each organization licensee
10shall deliver to the organization representing thoroughbred
11breeders and owners whose representative serves on the
12Illinois Thoroughbred Breeders Fund Advisory Board a listing
13of all the Illinois foaled and the Illinois conceived and
14foaled horses which won breeders' awards and the amount of
15such breeders' awards in accordance with the provisions of
16this Act. Such payments shall be delivered by the organization
17licensee within 30 days of the end of each race meeting.
18 (k) The term "breeder", as used herein, means the owner of
19the mare at the time the foal is dropped. An "Illinois foaled
20horse" is a foal dropped by a mare which enters this State on
21or before December 1, in the year in which the horse is bred,
22provided the mare remains continuously in this State until its
23foal is born. An "Illinois foaled horse" also means a foal born
24of a mare in the same year as the mare enters this State on or
25before March 1, and remains in this State at least 30 days
26after foaling, is bred back during the season of the foaling to

SB2254- 242 -LRB102 15486 SMS 20849 b
1an Illinois Registered Stallion (unless a veterinarian
2certifies that the mare should not be bred for health
3reasons), and is not bred to a stallion standing in any other
4state during the season of foaling. An "Illinois foaled horse"
5also means a foal born in Illinois of a mare purchased at
6public auction subsequent to the mare entering this State on
7or before March 1 of the foaling year providing the mare is
8owned solely by one or more Illinois residents or an Illinois
9entity that is entirely owned by one or more Illinois
10residents.
11 (l) The Department of Agriculture shall, by rule, with the
12advice and assistance of the Illinois Thoroughbred Breeders
13Fund Advisory Board:
14 (1) Qualify stallions for Illinois breeding; such
15 stallions to stand for service within the State of
16 Illinois at the time of a foal's conception. Such stallion
17 must not stand for service at any place outside the State
18 of Illinois during the calendar year in which the foal is
19 conceived. The Department of Agriculture may assess and
20 collect an application fee of up to $500 for the
21 registration of Illinois-eligible stallions. All fees
22 collected are to be held in trust accounts for the
23 purposes set forth in this Act and in accordance with
24 Section 205-15 of the Department of Agriculture Law.
25 (2) Provide for the registration of Illinois conceived
26 and foaled horses and Illinois foaled horses. No such

SB2254- 243 -LRB102 15486 SMS 20849 b
1 horse shall compete in the races limited to Illinois
2 conceived and foaled horses or Illinois foaled horses or
3 both unless registered with the Department of Agriculture.
4 The Department of Agriculture may prescribe such forms as
5 are necessary to determine the eligibility of such horses.
6 The Department of Agriculture may assess and collect
7 application fees for the registration of Illinois-eligible
8 foals. All fees collected are to be held in trust accounts
9 for the purposes set forth in this Act and in accordance
10 with Section 205-15 of the Department of Agriculture Law.
11 No person shall knowingly prepare or cause preparation of
12 an application for registration of such foals containing
13 false information.
14 (m) The Department of Agriculture, with the advice and
15assistance of the Illinois Thoroughbred Breeders Fund Advisory
16Board, shall provide that certain races limited to Illinois
17conceived and foaled and Illinois foaled horses be stakes
18races and determine the total amount of stakes and awards to be
19paid to the owners of the winning horses in such races.
20 In determining the stakes races and the amount of awards
21for such races, the Department of Agriculture shall consider
22factors, including but not limited to, the amount of money
23appropriated for the Illinois Thoroughbred Breeders Fund
24program, organization licensees' contributions, availability
25of stakes caliber horses as demonstrated by past performances,
26whether the race can be coordinated into the proposed racing

SB2254- 244 -LRB102 15486 SMS 20849 b
1dates within organization licensees' racing dates, opportunity
2for colts and fillies and various age groups to race, public
3wagering on such races, and the previous racing schedule.
4 (n) The Division Board and the organization licensee shall
5notify the Department of the conditions and minimum purses for
6races limited to Illinois conceived and foaled and Illinois
7foaled horses conducted for each organization licensee
8conducting a thoroughbred racing meeting. The Department of
9Agriculture with the advice and assistance of the Illinois
10Thoroughbred Breeders Fund Advisory Board may allocate monies
11for purse supplements for such races. In determining whether
12to allocate money and the amount, the Department of
13Agriculture shall consider factors, including but not limited
14to, the amount of money appropriated for the Illinois
15Thoroughbred Breeders Fund program, the number of races that
16may occur, and the organization licensee's purse structure.
17 (o) (Blank).
18(Source: P.A. 101-31, eff. 6-28-19.)
19 (230 ILCS 5/30.5)
20 Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
21 (a) The General Assembly declares that it is the policy of
22this State to encourage the breeding of racing quarter horses
23in this State and the ownership of such horses by residents of
24this State in order to provide for sufficient numbers of high
25quality racing quarter horses in this State and to establish

SB2254- 245 -LRB102 15486 SMS 20849 b
1and preserve the agricultural and commercial benefits of such
2breeding and racing industries to the State of Illinois. It is
3the intent of the General Assembly to further this policy by
4the provisions of this Act.
5 (b) There is hereby created a special fund in the State
6Treasury to be known as the Illinois Racing Quarter Horse
7Breeders Fund. Except as provided in subsection (g) of Section
827 of this Act, 8.5% of all the moneys received by the State as
9pari-mutuel taxes on quarter horse racing shall be paid into
10the Illinois Racing Quarter Horse Breeders Fund. The Illinois
11Racing Quarter Horse Breeders Fund shall not be subject to
12administrative charges or chargebacks, including, but not
13limited to, those authorized under Section 8h of the State
14Finance Act.
15 (c) The Illinois Racing Quarter Horse Breeders Fund shall
16be administered by the Department of Agriculture with the
17advice and assistance of the Advisory Board created in
18subsection (d) of this Section.
19 (d) The Illinois Racing Quarter Horse Breeders Fund
20Advisory Board shall consist of the Director of the Department
21of Agriculture, who shall serve as Chairman; the Director or
22his or her designee a member of the Illinois Racing Board,
23designated by it; one representative of the organization
24licensees conducting pari-mutuel quarter horse racing
25meetings, recommended by them; 2 representatives of the
26Illinois Running Quarter Horse Association, recommended by it;

SB2254- 246 -LRB102 15486 SMS 20849 b
1and the Superintendent of Fairs and Promotions from the
2Department of Agriculture. Advisory Board members shall serve
3for 2 years commencing January 1 of each odd numbered year. If
4representatives have not been recommended by January 1 of each
5odd numbered year, the Director of the Department of
6Agriculture may make an appointment for the organization
7failing to so recommend a member of the Advisory Board.
8Advisory Board members shall receive no compensation for their
9services as members but may be reimbursed for all actual and
10necessary expenses and disbursements incurred in the execution
11of their official duties.
12 (e) Moneys in the Illinois Racing Quarter Horse Breeders
13Fund shall be expended by the Department of Agriculture, with
14the advice and assistance of the Illinois Racing Quarter Horse
15Breeders Fund Advisory Board, for the following purposes only:
16 (1) To provide stakes and awards to be paid to the
17 owners of the winning horses in certain races. This
18 provision is limited to Illinois conceived and foaled
19 horses.
20 (2) To provide an award to the owner or owners of an
21 Illinois conceived and foaled horse that wins a race when
22 pari-mutuel wagering is conducted; providing the race is
23 not restricted to Illinois conceived and foaled horses.
24 (3) To provide purse money for an Illinois stallion
25 stakes program.
26 (4) To provide for purses to be distributed for the

SB2254- 247 -LRB102 15486 SMS 20849 b
1 running of races during the Illinois State Fair and the
2 DuQuoin State Fair exclusively for quarter horses
3 conceived and foaled in Illinois.
4 (5) To provide for purses to be distributed for the
5 running of races at Illinois county fairs exclusively for
6 quarter horses conceived and foaled in Illinois.
7 (6) To provide for purses to be distributed for
8 running races exclusively for quarter horses conceived and
9 foaled in Illinois at locations in Illinois determined by
10 the Department of Agriculture with advice and consent of
11 the Illinois Racing Quarter Horse Breeders Fund Advisory
12 Board.
13 (7) No less than 90% of all moneys appropriated from
14 the Illinois Racing Quarter Horse Breeders Fund shall be
15 expended for the purposes in items (1), (2), (3), (4), and
16 (5) of this subsection (e).
17 (8) To provide for research programs concerning the
18 health, development, and care of racing quarter horses.
19 (9) To provide for dissemination of public information
20 designed to promote the breeding of racing quarter horses
21 in Illinois.
22 (10) To provide for expenses incurred in the
23 administration of the Illinois Racing Quarter Horse
24 Breeders Fund.
25 (f) The Department of Agriculture shall, by rule, with the
26advice and assistance of the Illinois Racing Quarter Horse

SB2254- 248 -LRB102 15486 SMS 20849 b
1Breeders Fund Advisory Board:
2 (1) Qualify stallions for Illinois breeding; such
3 stallions to stand for service within the State of
4 Illinois, at the time of a foal's conception. Such
5 stallion must not stand for service at any place outside
6 the State of Illinois during the calendar year in which
7 the foal is conceived. The Department of Agriculture may
8 assess and collect application fees for the registration
9 of Illinois-eligible stallions. All fees collected are to
10 be paid into the Illinois Racing Quarter Horse Breeders
11 Fund.
12 (2) Provide for the registration of Illinois conceived
13 and foaled horses. No such horse shall compete in the
14 races limited to Illinois conceived and foaled horses
15 unless it is registered with the Department of
16 Agriculture. The Department of Agriculture may prescribe
17 such forms as are necessary to determine the eligibility
18 of such horses. The Department of Agriculture may assess
19 and collect application fees for the registration of
20 Illinois-eligible foals. All fees collected are to be paid
21 into the Illinois Racing Quarter Horse Breeders Fund. No
22 person shall knowingly prepare or cause preparation of an
23 application for registration of such foals that contains
24 false information.
25 (g) The Department of Agriculture, with the advice and
26assistance of the Illinois Racing Quarter Horse Breeders Fund

SB2254- 249 -LRB102 15486 SMS 20849 b
1Advisory Board, shall provide that certain races limited to
2Illinois conceived and foaled be stakes races and determine
3the total amount of stakes and awards to be paid to the owners
4of the winning horses in such races.
5(Source: P.A. 101-31, eff. 6-28-19.)
6 (230 ILCS 5/31) (from Ch. 8, par. 37-31)
7 Sec. 31. (a) The General Assembly declares that it is the
8policy of this State to encourage the breeding of standardbred
9horses in this State and the ownership of such horses by
10residents of this State in order to provide for: sufficient
11numbers of high quality standardbred horses to participate in
12harness racing meetings in this State, and to establish and
13preserve the agricultural and commercial benefits of such
14breeding and racing industries to the State of Illinois. It is
15the intent of the General Assembly to further this policy by
16the provisions of this Section of this Act.
17 (b) Each organization licensee conducting a harness racing
18meeting pursuant to this Act shall provide for at least two
19races each race program limited to Illinois conceived and
20foaled horses. A minimum of 6 races shall be conducted each
21week limited to Illinois conceived and foaled horses. No
22horses shall be permitted to start in such races unless duly
23registered under the rules of the Department of Agriculture.
24 (b-5) Organization licensees, not including the Illinois
25State Fair or the DuQuoin State Fair, shall provide stake

SB2254- 250 -LRB102 15486 SMS 20849 b
1races and early closer races for Illinois conceived and foaled
2horses so that purses distributed for such races shall be no
3less than 17% of total purses distributed for harness racing
4in that calendar year in addition to any stakes payments and
5starting fees contributed by horse owners.
6 (b-10) Each organization licensee conducting a harness
7racing meeting pursuant to this Act shall provide an owner
8award to be paid from the purse account equal to 12% of the
9amount earned by Illinois conceived and foaled horses
10finishing in the first 3 positions in races that are not
11restricted to Illinois conceived and foaled horses. The owner
12awards shall not be paid on races below the $10,000 claiming
13class.
14 (c) Conditions of races under subsection (b) shall be
15commensurate with past performance, quality and class of
16Illinois conceived and foaled horses available. If, however,
17sufficient competition cannot be had among horses of that
18class on any day, the races may, with consent of the Division
19Board, be eliminated for that day and substitute races
20provided.
21 (d) There is hereby created a special fund of the State
22Treasury to be known as the Illinois Standardbred Breeders
23Fund. Beginning on June 28, 2019 (the effective date of Public
24Act 101-31) this amendatory Act of the 101st General Assembly,
25the Illinois Standardbred Breeders Fund shall become a
26non-appropriated trust fund held separate and apart from State

SB2254- 251 -LRB102 15486 SMS 20849 b
1moneys. Expenditures from this Fund shall no longer be subject
2to appropriation.
3 During the calendar year 1981, and each year thereafter,
4except as provided in subsection (g) of Section 27 of this Act,
5eight and one-half per cent of all the monies received by the
6State as privilege taxes on harness racing meetings shall be
7paid into the Illinois Standardbred Breeders Fund.
8 (e) Notwithstanding any provision of law to the contrary,
9amounts deposited into the Illinois Standardbred Breeders Fund
10from revenues generated by gaming pursuant to an organization
11gaming license issued under the Illinois Gambling Act after
12June 28, 2019 (the effective date of Public Act 101-31) this
13amendatory Act of the 101st General Assembly shall be in
14addition to tax and fee amounts paid under this Section for
15calendar year 2019 and thereafter. The Illinois Standardbred
16Breeders Fund shall be administered by the Department of
17Agriculture with the assistance and advice of the Advisory
18Board created in subsection (f) of this Section.
19 (f) The Illinois Standardbred Breeders Fund Advisory Board
20is hereby created. The Advisory Board shall consist of the
21Director of the Department of Agriculture, who shall serve as
22Chairman; the Superintendent of the Illinois State Fair; the
23Director or his or her designee a member of the Illinois Racing
24Board, designated by it; a representative of the largest
25association of Illinois standardbred owners and breeders,
26recommended by it; a representative of a statewide association

SB2254- 252 -LRB102 15486 SMS 20849 b
1representing agricultural fairs in Illinois, recommended by
2it, such representative to be from a fair at which Illinois
3conceived and foaled racing is conducted; a representative of
4the organization licensees conducting harness racing meetings,
5recommended by them; a representative of the Breeder's
6Committee of the association representing the largest number
7of standardbred owners, breeders, trainers, caretakers, and
8drivers, recommended by it; and a representative of the
9association representing the largest number of standardbred
10owners, breeders, trainers, caretakers, and drivers,
11recommended by it. Advisory Board members shall serve for 2
12years commencing January 1 of each odd numbered year. If
13representatives of the largest association of Illinois
14standardbred owners and breeders, a statewide association of
15agricultural fairs in Illinois, the association representing
16the largest number of standardbred owners, breeders, trainers,
17caretakers, and drivers, a member of the Breeder's Committee
18of the association representing the largest number of
19standardbred owners, breeders, trainers, caretakers, and
20drivers, and the organization licensees conducting harness
21racing meetings have not been recommended by January 1 of each
22odd numbered year, the Director of the Department of
23Agriculture shall make an appointment for the organization
24failing to so recommend a member of the Advisory Board.
25Advisory Board members shall receive no compensation for their
26services as members but shall be reimbursed for all actual and

SB2254- 253 -LRB102 15486 SMS 20849 b
1necessary expenses and disbursements incurred in the execution
2of their official duties.
3 (g) Monies expended from the Illinois Standardbred
4Breeders Fund shall be expended by the Department of
5Agriculture, with the assistance and advice of the Illinois
6Standardbred Breeders Fund Advisory Board for the following
7purposes only:
8 1. To provide purses for races limited to Illinois
9 conceived and foaled horses at the State Fair and the
10 DuQuoin State Fair.
11 2. To provide purses for races limited to Illinois
12 conceived and foaled horses at county fairs.
13 3. To provide purse supplements for races limited to
14 Illinois conceived and foaled horses conducted by
15 associations conducting harness racing meetings.
16 4. No less than 75% of all monies in the Illinois
17 Standardbred Breeders Fund shall be expended for purses in
18 1, 2, and 3 as shown above.
19 5. In the discretion of the Department of Agriculture
20 to provide awards to harness breeders of Illinois
21 conceived and foaled horses which win races conducted by
22 organization licensees conducting harness racing meetings.
23 A breeder is the owner of a mare at the time of conception.
24 No more than 10% of all monies appropriated from the
25 Illinois Standardbred Breeders Fund shall be expended for
26 such harness breeders awards. No more than 25% of the

SB2254- 254 -LRB102 15486 SMS 20849 b
1 amount expended for harness breeders awards shall be
2 expended for expenses incurred in the administration of
3 such harness breeders awards.
4 6. To pay for the improvement of racing facilities
5 located at the State Fair and County fairs.
6 7. To pay the expenses incurred in the administration
7 of the Illinois Standardbred Breeders Fund.
8 8. To promote the sport of harness racing, including
9 grants up to a maximum of $7,500 per fair per year for
10 conducting pari-mutuel wagering during the advertised
11 dates of a county fair.
12 9. To pay up to $50,000 annually for the Department of
13 Agriculture to conduct drug testing at county fairs racing
14 standardbred horses.
15 (h) The Illinois Standardbred Breeders Fund is not subject
16to administrative charges or chargebacks, including, but not
17limited to, those authorized under Section 8h of the State
18Finance Act.
19 (i) A sum equal to 13% of the first prize money of the
20gross purse won by an Illinois conceived and foaled horse
21shall be paid 50% by the organization licensee conducting the
22horse race meeting to the breeder of such winning horse from
23the organization licensee's account and 50% from the purse
24account of the licensee. Such payment shall not reduce any
25award to the owner of the horse or reduce the taxes payable
26under this Act. Such payment shall be delivered by the

SB2254- 255 -LRB102 15486 SMS 20849 b
1organization licensee at the end of each quarter.
2 (j) The Department of Agriculture shall, by rule, with the
3assistance and advice of the Illinois Standardbred Breeders
4Fund Advisory Board:
5 1. Qualify stallions for Illinois Standardbred
6 Breeders Fund breeding; such stallion shall be owned by a
7 resident of the State of Illinois or by an Illinois
8 corporation all of whose shareholders, directors, officers
9 and incorporators are residents of the State of Illinois.
10 Such stallion shall stand for service at and within the
11 State of Illinois at the time of a foal's conception, and
12 such stallion must not stand for service at any place, nor
13 may semen from such stallion be transported, outside the
14 State of Illinois during that calendar year in which the
15 foal is conceived and that the owner of the stallion was
16 for the 12 months prior, a resident of Illinois. However,
17 from January 1, 2018 until January 1, 2022, semen from an
18 Illinois stallion may be transported outside the State of
19 Illinois. The articles of agreement of any partnership,
20 joint venture, limited partnership, syndicate, association
21 or corporation and any bylaws and stock certificates must
22 contain a restriction that provides that the ownership or
23 transfer of interest by any one of the persons a party to
24 the agreement can only be made to a person who qualifies as
25 an Illinois resident.
26 2. Provide for the registration of Illinois conceived

SB2254- 256 -LRB102 15486 SMS 20849 b
1 and foaled horses and no such horse shall compete in the
2 races limited to Illinois conceived and foaled horses
3 unless registered with the Department of Agriculture. The
4 Department of Agriculture may prescribe such forms as may
5 be necessary to determine the eligibility of such horses.
6 No person shall knowingly prepare or cause preparation of
7 an application for registration of such foals containing
8 false information. A mare (dam) must be in the State at
9 least 30 days prior to foaling or remain in the State at
10 least 30 days at the time of foaling. However, the
11 requirement that a mare (dam) must be in the State at least
12 30 days before foaling or remain in the State at least 30
13 days at the time of foaling shall not be in effect from
14 January 1, 2018 until January 1, 2022. Beginning with the
15 1996 breeding season and for foals of 1997 and thereafter,
16 a foal conceived by transported semen may be eligible for
17 Illinois conceived and foaled registration provided all
18 breeding and foaling requirements are met. The stallion
19 must be qualified for Illinois Standardbred Breeders Fund
20 breeding at the time of conception and the mare must be
21 inseminated within the State of Illinois. The foal must be
22 dropped in Illinois and properly registered with the
23 Department of Agriculture in accordance with this Act.
24 However, from January 1, 2018 until January 1, 2022, the
25 requirement for a mare to be inseminated within the State
26 of Illinois and the requirement for a foal to be dropped in

SB2254- 257 -LRB102 15486 SMS 20849 b
1 Illinois are inapplicable.
2 3. Provide that at least a 5-day racing program shall
3 be conducted at the State Fair each year, unless an
4 alternate racing program is requested by the Illinois
5 Standardbred Breeders Fund Advisory Board, which program
6 shall include at least the following races limited to
7 Illinois conceived and foaled horses: (a) a 2-year-old two
8 year old Trot and Pace, and Filly Division of each; (b) a
9 3-year-old three year old Trot and Pace, and Filly
10 Division of each; (c) an aged Trot and Pace, and Mare
11 Division of each.
12 4. Provide for the payment of nominating, sustaining
13 and starting fees for races promoting the sport of harness
14 racing and for the races to be conducted at the State Fair
15 as provided in subsection (j) 3 of this Section provided
16 that the nominating, sustaining and starting payment
17 required from an entrant shall not exceed 2% of the purse
18 of such race. All nominating, sustaining and starting
19 payments shall be held for the benefit of entrants and
20 shall be paid out as part of the respective purses for such
21 races. Nominating, sustaining and starting fees shall be
22 held in trust accounts for the purposes as set forth in
23 this Act and in accordance with Section 205-15 of the
24 Department of Agriculture Law.
25 5. Provide for the registration with the Department of
26 Agriculture of Colt Associations or county fairs desiring

SB2254- 258 -LRB102 15486 SMS 20849 b
1 to sponsor races at county fairs.
2 6. Provide for the promotion of producing standardbred
3 racehorses by providing a bonus award program for owners
4 of 2-year-old horses that win multiple major stakes races
5 that are limited to Illinois conceived and foaled horses.
6 (k) The Department of Agriculture, with the advice and
7assistance of the Illinois Standardbred Breeders Fund Advisory
8Board, may allocate monies for purse supplements for such
9races. In determining whether to allocate money and the
10amount, the Department of Agriculture shall consider factors,
11including, but not limited to, the amount of money
12appropriated for the Illinois Standardbred Breeders Fund
13program, the number of races that may occur, and an
14organization licensee's purse structure. The organization
15licensee shall notify the Department of Agriculture of the
16conditions and minimum purses for races limited to Illinois
17conceived and foaled horses to be conducted by each
18organization licensee conducting a harness racing meeting for
19which purse supplements have been negotiated.
20 (l) All races held at county fairs and the State Fair which
21receive funds from the Illinois Standardbred Breeders Fund
22shall be conducted in accordance with the rules of the United
23States Trotting Association unless otherwise modified by the
24Department of Agriculture.
25 (m) At all standardbred race meetings held or conducted
26under authority of a license granted by the Division Board,

SB2254- 259 -LRB102 15486 SMS 20849 b
1and at all standardbred races held at county fairs which are
2approved by the Department of Agriculture or at the Illinois
3or DuQuoin State Fairs, no one shall jog, train, warm up or
4drive a standardbred horse unless he or she is wearing a
5protective safety helmet, with the chin strap fastened and in
6place, which meets the standards and requirements as set forth
7in the 1984 Standard for Protective Headgear for Use in
8Harness Racing and Other Equestrian Sports published by the
9Snell Memorial Foundation, or any standards and requirements
10for headgear the Division Illinois Racing Board may approve.
11Any other standards and requirements so approved by the
12Division Board shall equal or exceed those published by the
13Snell Memorial Foundation. Any equestrian helmet bearing the
14Snell label shall be deemed to have met those standards and
15requirements.
16(Source: P.A. 100-777, eff. 8-10-18; 101-31, eff. 6-28-19;
17101-157, eff. 7-26-19; revised 9-27-19.)
18 (230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
19 Sec. 31.1. (a) Unless subsection (a-5) applies,
20organization licensees collectively shall contribute annually
21to charity the sum of $750,000 to non-profit organizations
22that provide medical and family, counseling, and similar
23services to persons who reside or work on the backstretch of
24Illinois racetracks. Unless subsection (a-5) applies, these
25contributions shall be collected as follows: (i) no later than

SB2254- 260 -LRB102 15486 SMS 20849 b
1July 1st of each year the Division Board shall assess each
2organization licensee, except those tracks located in Madison
3County, which tracks shall pay $30,000 annually apiece into
4the Division Board charity fund, that amount which equals
5$690,000 multiplied by the amount of pari-mutuel wagering
6handled by the organization licensee in the year preceding
7assessment and divided by the total pari-mutuel wagering
8handled by all Illinois organization licensees, except those
9tracks located in Madison and Rock Island counties, in the
10year preceding assessment; (ii) notice of the assessed
11contribution shall be mailed to each organization licensee;
12(iii) within thirty days of its receipt of such notice, each
13organization licensee shall remit the assessed contribution to
14the Division Board. Unless subsection (a-5) applies, if an
15organization licensee commences operation of gaming at its
16facility pursuant to an organization gaming license under the
17Illinois Gambling Act, then the organization licensee shall
18contribute an additional $83,000 per year beginning in the
19year subsequent to the first year in which the organization
20licensee begins receiving funds from gaming pursuant to an
21organization gaming license. If an organization licensee
22wilfully fails to so remit the contribution, the Division
23Board may revoke its license to conduct horse racing.
24 (a-5) If (1) an organization licensee that did not operate
25live racing in 2017 is awarded racing dates in 2018 or in any
26subsequent year and (2) all organization licensees are

SB2254- 261 -LRB102 15486 SMS 20849 b
1operating gaming pursuant to an organization gaming license
2under the Illinois Gambling Act, then subsection (a) does not
3apply and organization licensees collectively shall contribute
4annually to charity the sum of $1,000,000 to non-profit
5organizations that provide medical and family, counseling, and
6similar services to persons who reside or work on the
7backstretch of Illinois racetracks. These contributions shall
8be collected as follows: (i) no later than July 1st of each
9year the Division Board shall assess each organization
10licensee an amount based on the proportionate amount of live
11racing days in the calendar year for which the Division Board
12has awarded to the organization licensee out of the total
13aggregate number of live racing days awarded; (ii) notice of
14the assessed contribution shall be mailed to each organization
15licensee; (iii) within 30 days after its receipt of such
16notice, each organization licensee shall remit the assessed
17contribution to the Division Board. If an organization
18licensee willfully fails to so remit the contribution, the
19Division Board may revoke its license to conduct horse racing.
20 (b) No later than October 1st of each year, any qualified
21charitable organization seeking an allotment of contributed
22funds shall submit to the Division Board an application for
23those funds, using the Division's Board's approved form. No
24later than December 31st of each year, the Division Board
25shall distribute all such amounts collected that year to such
26charitable organization applicants.

SB2254- 262 -LRB102 15486 SMS 20849 b
1(Source: P.A. 101-31, eff. 6-28-19.)
2 (230 ILCS 5/32) (from Ch. 8, par. 37-32)
3 Sec. 32. Illinois Race Track Improvement Fund. Within 30
4days after the effective date of this Act, the Division Board
5shall cause all moneys previously deposited in the Illinois
6Race Track Improvement Fund to be remitted to the racetrack
7from which the licensee derives its license in accordance to
8the amounts generated by each licensee.
9(Source: P.A. 91-40, eff. 1-1-00.)
10 (230 ILCS 5/32.1)
11 Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
12real estate equalization.
13 (a) In order to encourage new investment in Illinois
14racetrack facilities and mitigate differing real estate tax
15burdens among all racetracks, the licensees affiliated or
16associated with each racetrack that has been awarded live
17racing dates in the current year shall receive an immediate
18pari-mutuel tax credit in an amount equal to the greater of (i)
1950% of the amount of the real estate taxes paid in the prior
20year attributable to that racetrack, or (ii) the amount by
21which the real estate taxes paid in the prior year
22attributable to that racetrack exceeds 60% of the average real
23estate taxes paid in the prior year for all racetracks awarded
24live horse racing meets in the current year.

SB2254- 263 -LRB102 15486 SMS 20849 b
1 Each year, regardless of whether the organization licensee
2conducted live racing in the year of certification, the
3Division Board shall certify in writing, prior to December 31,
4the real estate taxes paid in that year for each racetrack and
5the amount of the pari-mutuel tax credit that each
6organization licensee, inter-track wagering licensee, and
7inter-track wagering location licensee that derives its
8license from such racetrack is entitled in the succeeding
9calendar year. The real estate taxes considered under this
10Section for any racetrack shall be those taxes on the real
11estate parcels and related facilities used to conduct a horse
12race meeting and inter-track wagering at such racetrack under
13this Act. In no event shall the amount of the tax credit under
14this Section exceed the amount of pari-mutuel taxes otherwise
15calculated under this Act. The amount of the tax credit under
16this Section shall be retained by each licensee and shall not
17be subject to any reallocation or further distribution under
18this Act. The Board may promulgate emergency rules to
19implement this Section.
20 (b) If the organization licensee is operating gaming
21pursuant to an organization gaming license issued under the
22Illinois Gambling Act, except the organization licensee
23described in Section 19.5, then, for the 5-year period
24beginning on the January 1 of the calendar year immediately
25following the calendar year during which an organization
26licensee begins conducting gaming operations pursuant to an

SB2254- 264 -LRB102 15486 SMS 20849 b
1organization gaming license issued under the Illinois Gambling
2Act, the organization licensee shall make capital
3expenditures, in an amount equal to no less than 50% of the tax
4credit under this Section, to the improvement and maintenance
5of the backstretch, including, but not limited to, backstretch
6barns, dormitories, and services for backstretch workers.
7Those capital expenditures must be in addition to, and not in
8lieu of, the capital expenditures made for backstretch
9improvements in calendar year 2015, as reported to the
10Division Board in the organization licensee's application for
11racing dates and as certified by the Division Board. The
12organization licensee is required to annually submit the list
13and amounts of these capital expenditures to the Division
14Board by January 30th of the year following the expenditure.
15 (c) If the organization licensee is conducting gaming in
16accordance with paragraph (b), then, after the 5-year period
17beginning on January 1 of the calendar year immediately
18following the calendar year during which an organization
19licensee begins conducting gaming operations pursuant to an
20organization gaming license issued under the Illinois Gambling
21Act, the organization license is ineligible to receive a tax
22credit under this Section.
23(Source: P.A. 100-201, eff. 8-18-17; 101-31, eff. 6-28-19.)
24 (230 ILCS 5/34.3)
25 Sec. 34.3. Drug testing. The Division Illinois Racing

SB2254- 265 -LRB102 15486 SMS 20849 b
1Board and the Department of Agriculture shall jointly
2establish a program for the purpose of conducting drug testing
3of horses at county fairs and shall adopt any rules necessary
4for enforcement of the program. The rules shall include
5appropriate penalties for violations.
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 5/35) (from Ch. 8, par. 37-35)
8 Sec. 35. Any person holding or conducting any meeting
9within the State at which racing of horses shall be permitted
10for any stake, purse or reward or any person or persons aiding,
11assisting or abetting in the holding or conducting of such
12meeting where racing is held or conducted contrary to or in
13violation of any of the provisions and requirements of this
14Act shall be guilty of a Class 4 felony. For the purpose of
15this Section, each day of racing in violation of the
16provisions of this Act shall be considered as a separate and
17distinct offense. Any failure by any member of the Division
18Board to make public any violation of this Act within a
19reasonable time of learning thereof shall be punished as a
20Class A misdemeanor and issuance of a license prior to
21compliance with Section 20 shall be punishable as a Class A
22misdemeanor.
23(Source: P.A. 89-16, eff. 5-30-95.)
24 (230 ILCS 5/36) (from Ch. 8, par. 37-36)

SB2254- 266 -LRB102 15486 SMS 20849 b
1 Sec. 36. (a) Whoever administers or conspires to
2administer to any horse a hypnotic, narcotic, stimulant,
3depressant or any chemical substance which may affect the
4speed of a horse at any time in any race where the purse or any
5part of the purse is made of money authorized by any Section of
6this Act, except those chemical substances permitted by ruling
7of the Director Board, internally, externally or by hypodermic
8method in a race or prior thereto, or whoever knowingly enters
9a horse in any race within a period of 24 hours after any
10hypnotic, narcotic, stimulant, depressant or any other
11chemical substance which may affect the speed of a horse at any
12time, except those chemical substances permitted by ruling of
13the Director Board, has been administered to such horse either
14internally or externally or by hypodermic method for the
15purpose of increasing or retarding the speed of such horse
16shall be guilty of a Class 4 felony. The Division Board shall
17suspend or revoke such violator's license.
18 (b) The term "hypnotic" as used in this Section includes
19all barbituric acid preparations and derivatives.
20 (c) The term "narcotic" as used in this Section includes
21opium and all its alkaloids, salts, preparations and
22derivatives, cocaine and all its salts, preparations and
23derivatives and substitutes.
24 (d) The provisions of this Section and the treatment
25authorized in this Section apply to horses entered in and
26competing in race meetings as defined in Section 3.07 of this

SB2254- 267 -LRB102 15486 SMS 20849 b
1Act and to horses entered in and competing at any county fair.
2(Source: P.A. 101-31, eff. 6-28-19.)
3 (230 ILCS 5/36a) (from Ch. 8, par. 37-36a)
4 Sec. 36a. (a) It is recognized that there are horses which
5exhibit symptoms of epistaxis or respiratory tract hemorrhage
6which with proper treatment are sound and able to compete in
7races. The Division Board shall establish by rule the
8appropriate standards for the administration of furosemide
9(Lasix) or other Division-approved Board approved bleeder
10medications in such circumstances.
11 (b) Every horse entered to race shall be placed in a
12security area as designated by the Division Board. The
13Division Board, in designating a security area, shall not
14require that a horse be placed in a barn or stall other than
15the barn or stall assigned to that horse by the racing
16secretary. The barn or stall shall be posted as a security
17area. The trainer of record shall be responsible for the
18security of the horse and barn or stall area. The security area
19shall be under the supervision of the Division Board.
20 No unauthorized person shall approach the security area.
21If any unauthorized person does approach the security area, a
22report of the incident is to be made immediately to one of the
23State veterinarians or the stewards, or a board investigator.
24 The provisions of this Section 36a and the treatment
25authorized herein shall apply to and be available only for

SB2254- 268 -LRB102 15486 SMS 20849 b
1horses entered in and competing in race meetings as defined in
2Section 3.07 of this Act.
3(Source: P.A. 89-16, eff. 5-30-95.)
4 (230 ILCS 5/37) (from Ch. 8, par. 37-37)
5 Sec. 37. (a) It shall be unlawful for any person:
6 (1) to use or conspire to use any battery, buzzer,
7electrical, mechanical or other appliances other than the
8ordinary whip or spur for the purpose of stimulating or
9depressing a horse or affecting its speed in a race or workout
10or at any time; or
11 (2) to sponge a horse's nostrils or windpipe or use any
12method injurious or otherwise for the purpose of stimulating
13or depressing a horse or affecting its speed in a race or a
14workout at any time; or
15 (3) to have in his possession within the confines of a race
16track, sheds, buildings or grounds, or within the confines of
17a stable, shed, building or ground where horses are kept which
18are eligible to race over a race track of any racing
19association or licensee, any appliance other than the ordinary
20whip or spur which may or can be used for the purpose of
21stimulating or depressing a horse or affecting its speed at
22any time; or
23 (4) to have in his possession with the intent to sell, give
24away or exchange any of such instrumentalities.
25 (b) Such possession of such instrumentalities by anyone

SB2254- 269 -LRB102 15486 SMS 20849 b
1within the confines of a race track, stables, sheds, buildings
2or grounds where horses are kept which are eligible to race
3over the race tracks of any racing association or licensee
4shall be prima facie evidence of intention to so use such
5instrumentalities.
6 (c) Any persons who violate this Section shall be guilty
7of a Class 4 felony. The Division Board shall suspend or revoke
8such violator's license.
9(Source: P.A. 79-1185.)
10 (230 ILCS 5/38) (from Ch. 8, par. 37-38)
11 Sec. 38. (a) It is unlawful for any person knowingly to
12enter or cause to be entered any horse - mare, stallion,
13gelding, colt or filly - for competition or knowingly to
14compete with any horse - mare, stallion, gelding, colt or
15filly -- entered for competition under any name other than its
16true name or out of its proper class for any purse, prize,
17premium, stake or sweepstakes offered or given by any
18agricultural or other society, association or persons in the
19State where such prize, purse, premium, stake or sweepstakes
20is to be decided by a contest of speed.
21 (b) Any person who violates this Section is guilty of a
22Class 4 felony. The Division Board shall suspend or revoke the
23violator's license.
24 (c) The true name of any horse -- mare, stallion, gelding,
25colt or filly -- for the purpose of entry for competition or

SB2254- 270 -LRB102 15486 SMS 20849 b
1performance in any contest of speed shall be the name under
2which the horse has publicly performed and shall not be
3changed after having once so performed or contested for a
4prize, purse, premium, stake or sweepstakes, except as
5provided by the code of printed rules of the society or
6association under which the contest is advertised to be
7conducted.
8 (d) It is further provided that the official records shall
9be received in all courts as evidence upon the trial of any
10person under this Section.
11(Source: P.A. 79-1185.)
12 (230 ILCS 5/39) (from Ch. 8, par. 37-39)
13 Sec. 39. (a) It shall be unlawful for any person to engage
14directly or indirectly or for any person to conspire with or to
15aid, assist or abet any other person in the engagement or
16commission of any corrupt act or practice, including, but not
17limited to:
18 (1) the giving or offering or promising to give,
19 directly or indirectly, a bribe in any form to any public
20 official or person having official duties in relation to
21 any race or race horse or to any trainer, jockey or agent
22 or to any other person having charge of, or access to, any
23 race horse;
24 (2) the passing or attempting to pass or the cashing
25 or attempting to cash any altered or fraudulent mutuel

SB2254- 271 -LRB102 15486 SMS 20849 b
1 ticket;
2 (3) the unauthorized sale or the attempt to make an
3 unauthorized sale of any race track admission ticket.
4 (b) Any person who violates this Section is guilty of a
5Class 4 felony.
6 (c) If any person who violates this Section is licensed
7under this Act, the Division Board shall suspend or revoke the
8organization or occupation license of that person, in addition
9to the penalty and fine imposed in subsection (b).
10(Source: P.A. 89-16, eff. 5-30-95.)
11 (230 ILCS 5/40) (from Ch. 8, par. 37-40)
12 Sec. 40. (a) The imposition of any fine or penalty
13provided in this Act shall not preclude the Division Board in
14its rules and regulations from imposing a fine or penalty for
15any other action which, in the Division's Board's discretion,
16is a detriment or impediment to horse racing.
17 (b) The Director of Agriculture or his or her authorized
18representative shall impose the following monetary penalties
19and hold administrative hearings as required for failure to
20submit the following applications, lists, or reports within
21the time period, date or manner required by statute or rule or
22for removing a foal from Illinois prior to inspection:
23 (1) late filing of a renewal application for offering
24 or standing stallion for service:
25 (A) if an application is submitted no more than 30

SB2254- 272 -LRB102 15486 SMS 20849 b
1 days late, $50;
2 (B) if an application is submitted no more than 45
3 days late, $150; or
4 (C) if an application is submitted more than 45
5 days late, if filing of the application is allowed
6 under an administrative hearing, $250;
7 (2) late filing of list or report of mares bred:
8 (A) if a list or report is submitted no more than
9 30 days late, $50;
10 (B) if a list or report is submitted no more than
11 60 days late, $150; or
12 (C) if a list or report is submitted more than 60
13 days late, if filing of the list or report is allowed
14 under an administrative hearing, $250;
15 (3) filing an Illinois foaled thoroughbred mare status
16 report after the statutory deadline as provided in
17 subsection (k) of Section 30 of this Act:
18 (A) if a report is submitted no more than 30 days
19 late, $50;
20 (B) if a report is submitted no more than 90 days
21 late, $150;
22 (C) if a report is submitted no more than 150 days
23 late, $250; or
24 (D) if a report is submitted more than 150 days
25 late, if filing of the report is allowed under an
26 administrative hearing, $500;

SB2254- 273 -LRB102 15486 SMS 20849 b
1 (4) late filing of application for foal eligibility
2 certificate:
3 (A) if an application is submitted no more than 30
4 days late, $50;
5 (B) if an application is submitted no more than 90
6 days late, $150;
7 (C) if an application is submitted no more than
8 150 days late, $250; or
9 (D) if an application is submitted more than 150
10 days late, if filing of the application is allowed
11 under an administrative hearing, $500;
12 (5) failure to report the intent to remove a foal from
13 Illinois prior to inspection, identification and
14 certification by a Department of Agriculture investigator,
15 $50; and
16 (6) if a list or report of mares bred is incomplete,
17 $50 per mare not included on the list or report.
18 Any person upon whom monetary penalties are imposed under
19this Section 3 times within a 5-year period shall have any
20further monetary penalties imposed at double the amounts set
21forth above. All monies assessed and collected for violations
22relating to thoroughbreds shall be paid into the Illinois
23Thoroughbred Breeders Fund. All monies assessed and collected
24for violations relating to standardbreds shall be paid into
25the Illinois Standardbred Breeders Fund.
26(Source: P.A. 100-201, eff. 8-18-17; 101-31, eff. 6-28-19.)

SB2254- 274 -LRB102 15486 SMS 20849 b
1 (230 ILCS 5/45) (from Ch. 8, par. 37-45)
2 Sec. 45. It shall be the duty of the Attorney General and
3the various State's attorneys in this State in cooperation
4with the Department of State Police to enforce this Act. The
5Governor may, upon request of the Department of State Police,
6order the law enforcing officers of the various cities and
7counties to assign a sufficient number of deputies to aid
8members of the Department of State Police in preventing horse
9racing at any track within the respective jurisdiction of such
10cities or counties an organization license for which has been
11refused, suspended or revoked by the Division Board. The
12Governor may similarly assign such deputies to aid the
13Department of State Police when, by his determination,
14additional forces are needed to preserve the health, welfare
15or safety of any person or animal within the grounds of any
16race track in the State.
17(Source: P.A. 84-25.)
18 (230 ILCS 5/46) (from Ch. 8, par. 37-46)
19 Sec. 46. All final decisions of the Director or the
20Division Board hereunder shall be subject to judicial review
21pursuant to the provisions of the "Administrative Review Law",
22as now or hereafter amended, and the rules adopted pursuant
23thereto. The term "administrative decision" is as defined in
24Section 3-101 of the Administrative Review Law, as now or

SB2254- 275 -LRB102 15486 SMS 20849 b
1hereafter amended.
2(Source: P.A. 83-1539.)
3 (230 ILCS 5/49) (from Ch. 8, par. 37-49)
4 Sec. 49. The General Assembly declares that it is the
5policy of this State to foster the running of the Hambletonian
6Stakes in Illinois. Should the Hambletonian stakes no longer
7be run in Illinois then it is the policy of the State to foster
8a race or races at the DuQuoin State Fair, the Illinois State
9Fair, and the Illinois county fairs for the benefit of the
10harness horse racing industry. In order to further this
11policy, the Division Board shall keep a record of the moneys
12deposited in the Agricultural Premium Fund which are derived
13from the third and fourth races conducted on each Friday and
14Saturday during each harness racing meeting licensed under
15this Act, provided that each such Friday and Saturday program
16has at least 11 races. Each year, from the moneys in the
17Agricultural Premium Fund provided from such races, an
18appropriation shall be made to the Department of Agriculture
19to be used to supplement the purses offered for, and for other
20expenses in connection with, the Hambletonian Stakes or other
21harness races as authorized in this Section.
22(Source: P.A. 86-1458.)
23 (230 ILCS 5/51) (from Ch. 8, par. 37-51)
24 Sec. 51. (a) (Blank).

SB2254- 276 -LRB102 15486 SMS 20849 b
1 (b) All proceedings respecting acts done before the
2effective date of this Act shall be determined in accordance
3with law and regulations enforced at the time the acts
4occurred. All proceedings instituted for actions taken after
5the effective date of this Act shall be governed by this Act.
6 (c) All rules and regulations of the Division Board
7relating to subjects embraced by this Act shall remain in full
8force and effect unless repealed, amended or superseded by
9rules and regulations issued under this Act.
10 (d) All orders entered, licenses granted, and pending
11proceedings instituted by the Division Board relating to
12subjects embraced within this Act shall remain in full force
13and effect until superseded by actions taken under this Act.
14(Source: P.A. 89-16, eff. 5-30-95.)
15 (230 ILCS 5/54.75)
16 Sec. 54.75. Horse Racing Equity Trust Fund.
17 (a) There is created a Fund to be known as the Horse Racing
18Equity Trust Fund, which is a non-appropriated trust fund held
19separate and apart from State moneys. The Fund shall consist
20of moneys paid into it by owners licensees under the Illinois
21Gambling Act for the purposes described in this Section. The
22Fund shall be administered by the Division Board. Moneys in
23the Fund shall be distributed as directed and certified by the
24Division Board in accordance with the provisions of subsection
25(b).

SB2254- 277 -LRB102 15486 SMS 20849 b
1 (b) The moneys deposited into the Fund, plus any accrued
2interest on those moneys, shall be distributed within 10 days
3after those moneys are deposited into the Fund as follows:
4 (1) Sixty percent of all moneys distributed under this
5 subsection shall be distributed to organization licensees
6 to be distributed at their race meetings as purses.
7 Fifty-seven percent of the amount distributed under this
8 paragraph (1) shall be distributed for thoroughbred race
9 meetings and 43% shall be distributed for standardbred
10 race meetings. Within each breed, moneys shall be
11 allocated to each organization licensee's purse fund in
12 accordance with the ratio between the purses generated for
13 that breed by that licensee during the prior calendar year
14 and the total purses generated throughout the State for
15 that breed during the prior calendar year by licensees in
16 the current calendar year.
17 (2) The remaining 40% of the moneys distributed under
18 this subsection (b) shall be distributed as follows:
19 (A) 11% shall be distributed to any person (or its
20 successors or assigns) who had operating control of a
21 racetrack that conducted live racing in 2002 at a
22 racetrack in a county with at least 230,000
23 inhabitants that borders the Mississippi River and is
24 a licensee in the current year; and
25 (B) the remaining 89% shall be distributed pro
26 rata according to the aggregate proportion of total

SB2254- 278 -LRB102 15486 SMS 20849 b
1 handle from wagering on live races conducted in
2 Illinois (irrespective of where the wagers are placed)
3 for calendar years 2004 and 2005 to any person (or its
4 successors or assigns) who (i) had majority operating
5 control of a racing facility at which live racing was
6 conducted in calendar year 2002, (ii) is a licensee in
7 the current year, and (iii) is not eligible to receive
8 moneys under subparagraph (A) of this paragraph (2).
9 The moneys received by an organization licensee
10 under this paragraph (2) shall be used by each
11 organization licensee to improve, maintain, market,
12 and otherwise operate its racing facilities to conduct
13 live racing, which shall include backstretch services
14 and capital improvements related to live racing and
15 the backstretch. Any organization licensees sharing
16 common ownership may pool the moneys received and
17 spent at all racing facilities commonly owned in order
18 to meet these requirements.
19 If any person identified in this paragraph (2) becomes
20 ineligible to receive moneys from the Fund, such amount
21 shall be redistributed among the remaining persons in
22 proportion to their percentages otherwise calculated.
23 (c) The Division Board shall monitor organization
24licensees to ensure that moneys paid to organization licensees
25under this Section are distributed by the organization
26licensees as provided in subsection (b).

SB2254- 279 -LRB102 15486 SMS 20849 b
1(Source: P.A. 101-31, eff. 6-28-19.)
2 (230 ILCS 5/55)
3 Sec. 55. Study concerning account wagering and fixed odds
4wagering. The Division Board shall study whether it would be
5in the best interests of the horse racing industry and the
6State of Illinois to authorize account wagering and fixed odds
7wagering. The Division Board shall file a written report
8containing its findings with the General Assembly no later
9than December 31, 1999.
10(Source: P.A. 91-40, eff. 6-25-99.)
11 (230 ILCS 5/56)
12 Sec. 56. Gaming pursuant to an organization gaming
13license.
14 (a) A person, firm, corporation, partnership, or limited
15liability company having operating control of a racetrack may
16apply to the Department of Lottery and Gaming Board for an
17organization gaming license. An organization gaming license
18shall authorize its holder to conduct gaming on the grounds of
19the racetrack of which the organization gaming licensee has
20operating control. Only one organization gaming license may be
21awarded for any racetrack. A holder of an organization gaming
22license shall be subject to the Illinois Gambling Act and
23rules of the Department of Lottery and Gaming Illinois Gaming
24Board concerning gaming pursuant to an organization gaming

SB2254- 280 -LRB102 15486 SMS 20849 b
1license issued under the Illinois Gambling Act. If the person,
2firm, corporation, or limited liability company having
3operating control of a racetrack is found by the Department of
4Lottery and Gaming Illinois Gaming Board to be unsuitable for
5an organization gaming license under the Illinois Gambling Act
6and rules of the Department of Lottery and Gaming Board, that
7person, firm, corporation, or limited liability company shall
8not be granted an organization gaming license. Each license
9shall specify the number of gaming positions that its holder
10may operate.
11 An organization gaming licensee may not permit patrons
12under 21 years of age to be present in its organization gaming
13facility, but the licensee may accept wagers on live racing
14and inter-track wagers at its organization gaming facility.
15 (b) For purposes of this subsection, "adjusted gross
16receipts" means an organization gaming licensee's gross
17receipts less winnings paid to wagerers and shall also include
18any amounts that would otherwise be deducted pursuant to
19subsection (a-9) of Section 13 of the Illinois Gambling Act.
20The adjusted gross receipts by an organization gaming licensee
21from gaming pursuant to an organization gaming license issued
22under the Illinois Gambling Act remaining after the payment of
23taxes under Section 13 of the Illinois Gambling Act shall be
24distributed as follows:
25 (1) Amounts shall be paid to the purse account at the
26 track at which the organization licensee is conducting

SB2254- 281 -LRB102 15486 SMS 20849 b
1 racing equal to the following:
2 12.75% of annual adjusted gross receipts up to and
3 including $93,000,000;
4 20% of annual adjusted gross receipts in excess of
5 $93,000,000 but not exceeding $100,000,000;
6 26.5% of annual adjusted gross receipts in excess
7 of $100,000,000 but not exceeding $125,000,000; and
8 20.5% of annual adjusted gross receipts in excess
9 of $125,000,000.
10 If 2 different breeds race at the same racetrack in
11 the same calendar year, the purse moneys allocated under
12 this subsection (b) shall be divided pro rata based on
13 live racing days awarded by the Division Board to that
14 race track for each breed. However, the ratio may not
15 exceed 60% for either breed, except if one breed is
16 awarded fewer than 20 live racing days, in which case the
17 purse moneys allocated shall be divided pro rata based on
18 live racing days.
19 (2) The remainder shall be retained by the
20 organization gaming licensee.
21 (c) Annually, from the purse account of an organization
22licensee racing thoroughbred horses in this State, except for
23in Madison County, an amount equal to 12% of the gaming
24receipts from gaming pursuant to an organization gaming
25license placed into the purse accounts shall be paid to the
26Illinois Thoroughbred Breeders Fund and shall be used for

SB2254- 282 -LRB102 15486 SMS 20849 b
1owner awards; a stallion program pursuant to paragraph (3) of
2subsection (g) of Section 30 of this Act; and Illinois
3conceived and foaled stakes races pursuant to paragraph (2) of
4subsection (g) of Section 30 of this Act, as specifically
5designated by the horsemen association representing the
6largest number of owners and trainers who race at the
7organization licensee's race meetings.
8 Annually, from the purse account of an organization
9licensee racing thoroughbred horses in Madison County, an
10amount equal to 10% of the gaming receipts from gaming
11pursuant to an organization gaming license placed into the
12purse accounts shall be paid to the Illinois Thoroughbred
13Breeders Fund and shall be used for owner awards; a stallion
14program pursuant to paragraph (3) of subsection (g) of Section
1530 of this Act; and Illinois conceived and foaled stakes races
16pursuant to paragraph (2) of subsection (g) of Section 30 of
17this Act, as specifically designated by the horsemen
18association representing the largest number of owners and
19trainers who race at the organization licensee's race
20meetings.
21 Annually, from the amounts generated for purses from all
22sources, including, but not limited to, amounts generated from
23wagering conducted by organization licensees, organization
24gaming licensees, inter-track wagering licensees, inter-track
25wagering locations licensees, and advance deposit wagering
26licensees, or an organization licensee to the purse account of

SB2254- 283 -LRB102 15486 SMS 20849 b
1an organization licensee conducting thoroughbred races at a
2track in Madison County, an amount equal to 10% of adjusted
3gross receipts as defined in subsection (b) of this Section
4shall be paid to the horsemen association representing the
5largest number of owners and trainers who race at the
6organization licensee's race meets, to be used to for
7operational expenses and may be also used for after care
8programs for retired thoroughbred race horses, backstretch
9laundry and kitchen facilities, a health insurance or
10retirement program, the Future Farmers of America, and such
11other programs.
12 Annually, from the purse account of organization licensees
13conducting thoroughbred races at racetracks in Cook County,
14$100,000 shall be paid for division and equal distribution to
15the animal sciences department of each Illinois public
16university system engaged in equine research and education on
17or before the effective date of this amendatory Act of the
18101st General Assembly for equine research and education.
19 (d) Annually, from the purse account of an organization
20licensee racing standardbred horses, an amount equal to 15% of
21the gaming receipts from gaming pursuant to an organization
22gaming license placed into that purse account shall be paid to
23the Illinois Standardbred Breeders Fund. Moneys deposited into
24the Illinois Standardbred Breeders Fund shall be used for
25standardbred racing as authorized in paragraphs 1, 2, 3, 8,
26and 9 of subsection (g) of Section 31 of this Act and for bonus

SB2254- 284 -LRB102 15486 SMS 20849 b
1awards as authorized under paragraph 6 of subsection (j) of
2Section 31 of this Act.
3(Source: P.A. 101-31, eff. 6-28-19.)
4 (230 ILCS 5/5 rep.)
5 (230 ILCS 5/6 rep.)
6 (230 ILCS 5/7 rep.)
7 (230 ILCS 5/8 rep.)
8 Section 120. The Illinois Horse Racing Act of 1975 is
9amended by repealing Sections 5, 6, 7, and 8.
10 Section 125. The Illinois Gambling Act is amended by
11changing Sections 2, 4, 5, 5.1, 5.2, 5.3, 6, 7, 7.1, 7.3, 7.4,
127.5, 7.6, 7.7, 7.10, 7.11, 7.12, 8, 9, 10, 11, 11.2, 12, 13,
1313.05, 14, 15, 16, 17, 17.1, 18, 18.1, and 22 as follows:
14 (230 ILCS 10/2) (from Ch. 120, par. 2402)
15 Sec. 2. Legislative intent.
16 (a) This Act is intended to benefit the people of the State
17of Illinois by assisting economic development, promoting
18Illinois tourism, and increasing the amount of revenues
19available to the State to assist and support education, and to
20defray State expenses.
21 (b) While authorization of riverboat and casino gambling
22will enhance investment, beautification, development and
23tourism in Illinois, it is recognized that it will do so

SB2254- 285 -LRB102 15486 SMS 20849 b
1successfully only if public confidence and trust in the
2credibility and integrity of the gambling operations and the
3regulatory process is maintained. Therefore, regulatory
4provisions of this Act are designed to strictly regulate the
5facilities, persons, associations and practices related to
6gambling operations pursuant to the police powers of the
7State, including comprehensive law enforcement supervision.
8 (c) The Division of Casino Gambling of the Department of
9Lottery and Gaming Illinois Gaming Board established under
10this Act should, as soon as possible, inform each applicant
11for an owners license of the Division's Board's intent to
12grant or deny a license.
13(Source: P.A. 101-31, eff. 6-28-19.)
14 (230 ILCS 10/4) (from Ch. 120, par. 2404)
15 Sec. 4. Definitions. As used in this Act:
16 "Board" means the Illinois Gaming Board.
17 "Director" means the Director of the Division of Casino
18Gaming of the Department of Lottery and Gaming.
19 "Division" means the Division of Casino Gambling of the
20Department of Lottery and Gaming.
21 "Occupational license" means a license issued by the
22Division Board to a person or entity to perform an occupation
23which the Division Board has identified as requiring a license
24to engage in riverboat gambling, casino gambling, or gaming
25pursuant to an organization gaming license issued under this

SB2254- 286 -LRB102 15486 SMS 20849 b
1Act in Illinois.
2 "Gambling game" includes, but is not limited to, baccarat,
3twenty-one, poker, craps, slot machine, video game of chance,
4roulette wheel, klondike table, punchboard, faro layout, keno
5layout, numbers ticket, push card, jar ticket, or pull tab
6which is authorized by the Division Board as a wagering device
7under this Act.
8 "Riverboat" means a self-propelled excursion boat, a
9permanently moored barge, or permanently moored barges that
10are permanently fixed together to operate as one vessel, on
11which lawful gambling is authorized and licensed as provided
12in this Act.
13 "Slot machine" means any mechanical, electrical, or other
14device, contrivance, or machine that is authorized by the
15Division Board as a wagering device under this Act which, upon
16insertion of a coin, currency, token, or similar object
17therein, or upon payment of any consideration whatsoever, is
18available to play or operate, the play or operation of which
19may deliver or entitle the person playing or operating the
20machine to receive cash, premiums, merchandise, tokens, or
21anything of value whatsoever, whether the payoff is made
22automatically from the machine or in any other manner
23whatsoever. A slot machine:
24 (1) may utilize spinning reels or video displays or
25 both;
26 (2) may or may not dispense coins, tickets, or tokens

SB2254- 287 -LRB102 15486 SMS 20849 b
1 to winning patrons;
2 (3) may use an electronic credit system for receiving
3 wagers and making payouts; and
4 (4) may simulate a table game.
5 "Slot machine" does not include table games authorized by
6the Division Board as a wagering device under this Act.
7 "Managers license" means a license issued by the Division
8Board to a person or entity to manage gambling operations
9conducted by the State pursuant to Section 7.3.
10 "Dock" means the location where a riverboat moors for the
11purpose of embarking passengers for and disembarking
12passengers from the riverboat.
13 "Gross receipts" means the total amount of money exchanged
14for the purchase of chips, tokens, or electronic cards by
15riverboat patrons.
16 "Adjusted gross receipts" means the gross receipts less
17winnings paid to wagerers.
18 "Cheat" means to alter the selection of criteria which
19determine the result of a gambling game or the amount or
20frequency of payment in a gambling game.
21 "Gambling operation" means the conduct of gambling games
22authorized under this Act upon a riverboat or in a casino or
23authorized under this Act and the Illinois Horse Racing Act of
241975 at an organization gaming facility.
25 "License bid" means the lump sum amount of money that an
26applicant bids and agrees to pay the State in return for an

SB2254- 288 -LRB102 15486 SMS 20849 b
1owners license that is issued or re-issued on or after July 1,
22003.
3 "Table game" means a live gaming apparatus upon which
4gaming is conducted or that determines an outcome that is the
5object of a wager, including, but not limited to, baccarat,
6twenty-one, blackjack, poker, craps, roulette wheel, klondike
7table, punchboard, faro layout, keno layout, numbers ticket,
8push card, jar ticket, pull tab, or other similar games that
9are authorized by the Division Board as a wagering device
10under this Act. "Table game" does not include slot machines or
11video games of chance.
12 The terms "minority person", "woman", and "person with a
13disability" shall have the same meaning as defined in Section
142 of the Business Enterprise for Minorities, Women, and
15Persons with Disabilities Act.
16 "Casino" means a facility at which lawful gambling is
17authorized as provided in this Act.
18 "Owners license" means a license to conduct riverboat or
19casino gambling operations, but does not include an
20organization gaming license.
21 "Licensed owner" means a person who holds an owners
22license.
23 "Organization gaming facility" means that portion of an
24organization licensee's racetrack facilities at which gaming
25authorized under Section 7.7 is conducted.
26 "Organization gaming license" means a license issued by

SB2254- 289 -LRB102 15486 SMS 20849 b
1the Division Illinois Gaming Board under Section 7.7 of this
2Act authorizing gaming pursuant to that Section at an
3organization gaming facility.
4 "Organization gaming licensee" means an entity that holds
5an organization gaming license.
6 "Organization licensee" means an entity authorized by the
7Division of Horse Racing Illinois Racing Board to conduct
8pari-mutuel wagering in accordance with the Illinois Horse
9Racing Act of 1975. With respect only to gaming pursuant to an
10organization gaming license, "organization licensee" includes
11the authorization for gaming created under subsection (a) of
12Section 56 of the Illinois Horse Racing Act of 1975.
13(Source: P.A. 100-391, eff. 8-25-17; 101-31, eff. 6-28-19.)
14 (230 ILCS 10/5) (from Ch. 120, par. 2405)
15 Sec. 5. Division of Casino Gambling Gaming Board.
16 (a) (1) There is hereby established Division of Casino
17Gaming of the Department of Lottery and Gaming the Illinois
18Gaming Board, which shall have the powers and duties specified
19in this Act, and all other powers necessary and proper to fully
20and effectively execute this Act for the purpose of
21administering, regulating, and enforcing the system of
22riverboat and casino gambling established by this Act and
23gaming pursuant to an organization gaming license issued under
24this Act. Its jurisdiction shall extend under this Act to
25every person, association, corporation, partnership and trust

SB2254- 290 -LRB102 15486 SMS 20849 b
1involved in riverboat and casino gambling operations and
2gaming pursuant to an organization gaming license issued under
3this Act in the State of Illinois.
4 (2) (Blank). The Board shall consist of 5 members to be
5appointed by the Governor with the advice and consent of the
6Senate, one of whom shall be designated by the Governor to be
7chairperson. Each member shall have a reasonable knowledge of
8the practice, procedure and principles of gambling operations.
9Each member shall either be a resident of Illinois or shall
10certify that he or she will become a resident of Illinois
11before taking office.
12 On and after the effective date of this amendatory Act of
13the 101st General Assembly, new appointees to the Board must
14include the following:
15 (A) One member who has received, at a minimum, a
16 bachelor's degree from an accredited school and at least
17 10 years of verifiable experience in the fields of
18 investigation and law enforcement.
19 (B) One member who is a certified public accountant
20 with experience in auditing and with knowledge of complex
21 corporate structures and transactions.
22 (C) One member who has 5 years' experience as a
23 principal, senior officer, or director of a company or
24 business with either material responsibility for the daily
25 operations and management of the overall company or
26 business or material responsibility for the policy making

SB2254- 291 -LRB102 15486 SMS 20849 b
1 of the company or business.
2 (D) One member who is an attorney licensed to practice
3 law in Illinois for at least 5 years.
4 Notwithstanding any provision of this subsection (a), the
5requirements of subparagraphs (A) through (D) of this
6paragraph (2) shall not apply to any person reappointed
7pursuant to paragraph (3).
8 No more than 3 members of the Board may be from the same
9political party. No Board member shall, within a period of one
10year immediately preceding nomination, have been employed or
11received compensation or fees for services from a person or
12entity, or its parent or affiliate, that has engaged in
13business with the Board, a licensee, or a licensee under the
14Illinois Horse Racing Act of 1975. Board members must publicly
15disclose all prior affiliations with gaming interests,
16including any compensation, fees, bonuses, salaries, and other
17reimbursement received from a person or entity, or its parent
18or affiliate, that has engaged in business with the Board, a
19licensee, or a licensee under the Illinois Horse Racing Act of
201975. This disclosure must be made within 30 days after
21nomination but prior to confirmation by the Senate and must be
22made available to the members of the Senate.
23 (3) (Blank). The terms of office of the Board members
24shall be 3 years, except that the terms of office of the
25initial Board members appointed pursuant to this Act will
26commence from the effective date of this Act and run as

SB2254- 292 -LRB102 15486 SMS 20849 b
1follows: one for a term ending July 1, 1991, 2 for a term
2ending July 1, 1992, and 2 for a term ending July 1, 1993. Upon
3the expiration of the foregoing terms, the successors of such
4members shall serve a term for 3 years and until their
5successors are appointed and qualified for like terms.
6Vacancies in the Board shall be filled for the unexpired term
7in like manner as original appointments. Each member of the
8Board shall be eligible for reappointment at the discretion of
9the Governor with the advice and consent of the Senate.
10 (4) (Blank). Each member of the Board shall receive $300
11for each day the Board meets and for each day the member
12conducts any hearing pursuant to this Act. Each member of the
13Board shall also be reimbursed for all actual and necessary
14expenses and disbursements incurred in the execution of
15official duties.
16 (5) (Blank). No person shall be appointed a member of the
17Board or continue to be a member of the Board who is, or whose
18spouse, child or parent is, a member of the board of directors
19of, or a person financially interested in, any gambling
20operation subject to the jurisdiction of this Board, or any
21race track, race meeting, racing association or the operations
22thereof subject to the jurisdiction of the Illinois Racing
23Board. No Board member shall hold any other public office. No
24person shall be a member of the Board who is not of good moral
25character or who has been convicted of, or is under indictment
26for, a felony under the laws of Illinois or any other state, or

SB2254- 293 -LRB102 15486 SMS 20849 b
1the United States.
2 (5.5) (Blank). No member of the Board shall engage in any
3political activity. For the purposes of this Section,
4"political" means any activity in support of or in connection
5with any campaign for federal, State, or local elective office
6or any political organization, but does not include activities
7(i) relating to the support or opposition of any executive,
8legislative, or administrative action (as those terms are
9defined in Section 2 of the Lobbyist Registration Act), (ii)
10relating to collective bargaining, or (iii) that are otherwise
11in furtherance of the person's official State duties or
12governmental and public service functions.
13 (6) (Blank). Any member of the Board may be removed by the
14Governor for neglect of duty, misfeasance, malfeasance, or
15nonfeasance in office or for engaging in any political
16activity.
17 (7) (Blank). Before entering upon the discharge of the
18duties of his office, each member of the Board shall take an
19oath that he will faithfully execute the duties of his office
20according to the laws of the State and the rules and
21regulations adopted therewith and shall give bond to the State
22of Illinois, approved by the Governor, in the sum of $25,000.
23Every such bond, when duly executed and approved, shall be
24recorded in the office of the Secretary of State. Whenever the
25Governor determines that the bond of any member of the Board
26has become or is likely to become invalid or insufficient, he

SB2254- 294 -LRB102 15486 SMS 20849 b
1shall require such member forthwith to renew his bond, which
2is to be approved by the Governor. Any member of the Board who
3fails to take oath and give bond within 30 days from the date
4of his appointment, or who fails to renew his bond within 30
5days after it is demanded by the Governor, shall be guilty of
6neglect of duty and may be removed by the Governor. The cost of
7any bond given by any member of the Board under this Section
8shall be taken to be a part of the necessary expenses of the
9Board.
10 (7.5) For the examination of all mechanical,
11electromechanical, or electronic table games, slot machines,
12slot accounting systems, sports wagering systems, and other
13electronic gaming equipment, and the field inspection of such
14systems, games, and machines, for compliance with this Act,
15the Division Board shall utilize the services of independent
16outside testing laboratories that have been accredited in
17accordance with ISO/IEC 17025 by an accreditation body that is
18a signatory to the International Laboratory Accreditation
19Cooperation Mutual Recognition Agreement signifying they are
20qualified to perform such examinations. Notwithstanding any
21law to the contrary, the Division Board shall consider the
22licensing of independent outside testing laboratory applicants
23in accordance with procedures established by the Division
24Board by rule. The Board shall not withhold its approval of an
25independent outside testing laboratory license applicant that
26has been accredited as required under this paragraph (7.5) and

SB2254- 295 -LRB102 15486 SMS 20849 b
1is licensed in gaming jurisdictions comparable to Illinois.
2Upon the finalization of required rules, the Division Board
3shall license independent testing laboratories and accept the
4test reports of any licensed testing laboratory of the
5system's, game's, or machine manufacturer's choice,
6notwithstanding the existence of contracts between the
7Division Board and any independent testing laboratory.
8 (8) The Division Board shall employ such personnel as may
9be necessary to carry out its functions and shall determine
10the salaries of all personnel, except those personnel whose
11salaries are determined under the terms of a collective
12bargaining agreement. No person shall be employed to serve the
13Division Board who is, or whose spouse, parent or child is, an
14official of, or has a financial interest in or financial
15relation with, any operator engaged in gambling operations
16within this State or any organization engaged in conducting
17horse racing within this State. For the one year immediately
18preceding employment, an employee shall not have been employed
19or received compensation or fees for services from a person or
20entity, or its parent or affiliate, that has engaged in
21business with the Division Board, a licensee, or a licensee
22under the Illinois Horse Racing Act of 1975. Any employee
23violating these prohibitions shall be subject to termination
24of employment.
25 (9) An Administrator shall perform any and all duties that
26the Division Board shall assign him. The salary of the

SB2254- 296 -LRB102 15486 SMS 20849 b
1Administrator shall be determined by the Division Board and,
2in addition, he shall be reimbursed for all actual and
3necessary expenses incurred by him in discharge of his
4official duties. The Administrator shall keep records of all
5proceedings of hearings before the Director the Board and
6shall preserve all records, books, documents and other papers
7belonging to the Division Board or entrusted to its care. The
8Administrator shall devote his full time to the duties of the
9office and shall not hold any other office or employment.
10 (b) The Division Board shall have general responsibility
11for the implementation of this Act. Its duties include,
12without limitation, the following:
13 (1) To decide promptly and in reasonable order all
14 license applications. Any party aggrieved by an action of
15 the Board denying, suspending, revoking, restricting or
16 refusing to renew a license may request a hearing before
17 the Director Board. A request for a hearing must be made to
18 the Director Board in writing within 5 days after service
19 of notice of the action of the Division Board. Notice of
20 the action of the Division Board shall be served either by
21 personal delivery or by certified mail, postage prepaid,
22 to the aggrieved party. Notice served by certified mail
23 shall be deemed complete on the business day following the
24 date of such mailing. The Director Board shall conduct any
25 such hearings promptly and in reasonable order;
26 (2) To conduct all hearings pertaining to civil

SB2254- 297 -LRB102 15486 SMS 20849 b
1 violations of this Act or rules and regulations
2 promulgated hereunder;
3 (3) To promulgate such rules and regulations as in its
4 judgment may be necessary to protect or enhance the
5 credibility and integrity of gambling operations
6 authorized by this Act and the regulatory process
7 hereunder;
8 (4) To provide for the establishment and collection of
9 all license and registration fees and taxes imposed by
10 this Act and the rules and regulations issued pursuant
11 hereto. All such fees and taxes shall be deposited into
12 the State Gaming Fund;
13 (5) To provide for the levy and collection of
14 penalties and fines for the violation of provisions of
15 this Act and the rules and regulations promulgated
16 hereunder. All such fines and penalties shall be deposited
17 into the Education Assistance Fund, created by Public Act
18 86-0018, of the State of Illinois;
19 (6) To be present through its inspectors and agents
20 any time gambling operations are conducted on any
21 riverboat, in any casino, or at any organization gaming
22 facility for the purpose of certifying the revenue
23 thereof, receiving complaints from the public, and
24 conducting such other investigations into the conduct of
25 the gambling games and the maintenance of the equipment as
26 from time to time the Division Board may deem necessary

SB2254- 298 -LRB102 15486 SMS 20849 b
1 and proper;
2 (7) To review and rule upon any complaint by a
3 licensee regarding any investigative procedures of the
4 State which are unnecessarily disruptive of gambling
5 operations. The need to inspect and investigate shall be
6 presumed at all times. The disruption of a licensee's
7 operations shall be proved by clear and convincing
8 evidence, and establish that: (A) the procedures had no
9 reasonable law enforcement purposes, and (B) the
10 procedures were so disruptive as to unreasonably inhibit
11 gambling operations;
12 (8) (Blank) To hold at least one meeting each quarter
13 of the fiscal year. In addition, special meetings may be
14 called by the Chairman or any 2 Board members upon 72 hours
15 written notice to each member. All Board meetings shall be
16 subject to the Open Meetings Act. Three members of the
17 Board shall constitute a quorum, and 3 votes shall be
18 required for any final determination by the Board. The
19 Board shall keep a complete and accurate record of all its
20 meetings. A majority of the members of the Board shall
21 constitute a quorum for the transaction of any business,
22 for the performance of any duty, or for the exercise of any
23 power which this Act requires the Board members to
24 transact, perform or exercise en banc, except that, upon
25 order of the Board, one of the Board members or an
26 administrative law judge designated by the Board may

SB2254- 299 -LRB102 15486 SMS 20849 b
1 conduct any hearing provided for under this Act or by
2 Board rule and may recommend findings and decisions to the
3 Board. The Board member or administrative law judge
4 conducting such hearing shall have all powers and rights
5 granted to the Board in this Act. The record made at the
6 time of the hearing shall be reviewed by the Board, or a
7 majority thereof, and the findings and decision of the
8 majority of the Board shall constitute the order of the
9 Board in such case;
10 (9) To maintain records which are separate and
11 distinct from the records of any other State board or
12 commission. Such records shall be available for public
13 inspection and shall accurately reflect all Board
14 proceedings before the Director;
15 (10) To file a written annual report with the Governor
16 on or before July 1 each year and such additional reports
17 as the Governor may request. The annual report shall
18 include a statement of receipts and disbursements by the
19 Division Board, actions taken by the Division Board, and
20 any additional information and recommendations which the
21 Board may deem valuable or which the Governor may request;
22 (11) (Blank);
23 (12) (Blank);
24 (13) (Blank) To assume responsibility for
25 administration and enforcement of the Video Gaming Act;
26 (13.1) To assume responsibility for the administration

SB2254- 300 -LRB102 15486 SMS 20849 b
1 and enforcement of operations at organization gaming
2 facilities pursuant to this Act and the Illinois Horse
3 Racing Act of 1975;
4 (13.2) (Blank) To assume responsibility for the
5 administration and enforcement of the Sports Wagering Act;
6 and
7 (14) To adopt, by rule, a code of conduct governing
8 Division Board members and employees that ensure, to the
9 maximum extent possible, that persons subject to this Code
10 avoid situations, relationships, or associations that may
11 represent or lead to a conflict of interest.
12 Internal controls and changes submitted by licensees must
13be reviewed and either approved or denied with cause within 90
14days after receipt of submission is deemed final by the
15Division Illinois Gaming Board. In the event an internal
16control submission or change does not meet the standards set
17by the Division Board, staff of the Division Board must
18provide technical assistance to the licensee to rectify such
19deficiencies within 90 days after the initial submission and
20the revised submission must be reviewed and approved or denied
21with cause within 90 days after the date the revised
22submission is deemed final by the Division Board. For the
23purposes of this paragraph, "with cause" means that the
24approval of the submission would jeopardize the integrity of
25gaming. In the event the Division Board staff has not acted
26within the timeframe, the submission shall be deemed approved.

SB2254- 301 -LRB102 15486 SMS 20849 b
1 (c) The Division Board shall have jurisdiction over and
2shall supervise all gambling operations governed by this Act.
3The Division Board shall have all powers necessary and proper
4to fully and effectively execute the provisions of this Act,
5including, but not limited to, the following:
6 (1) To investigate applicants and determine the
7 eligibility of applicants for licenses and to select among
8 competing applicants the applicants which best serve the
9 interests of the citizens of Illinois.
10 (2) To have jurisdiction and supervision over all
11 riverboat gambling operations authorized under this Act
12 and all persons in places where gambling operations are
13 conducted.
14 (3) To promulgate rules and regulations for the
15 purpose of administering the provisions of this Act and to
16 prescribe rules, regulations and conditions under which
17 all gambling operations subject to this Act shall be
18 conducted. Such rules and regulations are to provide for
19 the prevention of practices detrimental to the public
20 interest and for the best interests of riverboat gambling,
21 including rules and regulations regarding the inspection
22 of organization gaming facilities, casinos, and
23 riverboats, and the review of any permits or licenses
24 necessary to operate a riverboat, casino, or organization
25 gaming facility under any laws or regulations applicable
26 to riverboats, casinos, or organization gaming facilities

SB2254- 302 -LRB102 15486 SMS 20849 b
1 and to impose penalties for violations thereof.
2 (4) To enter the office, riverboats, casinos,
3 organization gaming facilities, and other facilities, or
4 other places of business of a licensee, where evidence of
5 the compliance or noncompliance with the provisions of
6 this Act is likely to be found.
7 (5) To investigate alleged violations of this Act or
8 the rules of the Division Board and to take appropriate
9 disciplinary action against a licensee or a holder of an
10 occupational license for a violation, or institute
11 appropriate legal action for enforcement, or both.
12 (6) To adopt standards for the licensing of all
13 persons and entities under this Act, as well as for
14 electronic or mechanical gambling games, and to establish
15 fees for such licenses.
16 (7) To adopt appropriate standards for all
17 organization gaming facilities, riverboats, casinos, and
18 other facilities authorized under this Act.
19 (8) To require that the records, including financial
20 or other statements of any licensee under this Act, shall
21 be kept in such manner as prescribed by the Division Board
22 and that any such licensee involved in the ownership or
23 management of gambling operations submit to the Division
24 Board an annual balance sheet and profit and loss
25 statement, list of the stockholders or other persons
26 having a 1% or greater beneficial interest in the gambling

SB2254- 303 -LRB102 15486 SMS 20849 b
1 activities of each licensee, and any other information the
2 Division Board deems necessary in order to effectively
3 administer this Act and all rules, regulations, orders and
4 final decisions promulgated under this Act.
5 (9) To conduct hearings, issue subpoenas for the
6 attendance of witnesses and subpoenas duces tecum for the
7 production of books, records and other pertinent documents
8 in accordance with the Illinois Administrative Procedure
9 Act, and to administer oaths and affirmations to the
10 witnesses, when, in the judgment of the Division Board, it
11 is necessary to administer or enforce this Act or the
12 Division Board rules.
13 (10) To prescribe a form to be used by any licensee
14 involved in the ownership or management of gambling
15 operations as an application for employment for their
16 employees.
17 (11) To revoke or suspend licenses, as the Division
18 Board may see fit and in compliance with applicable laws
19 of the State regarding administrative procedures, and to
20 review applications for the renewal of licenses. The
21 Division Board may suspend an owners license or an
22 organization gaming license without notice or hearing upon
23 a determination that the safety or health of patrons or
24 employees is jeopardized by continuing a gambling
25 operation conducted under that license. The suspension may
26 remain in effect until the Division Board determines that

SB2254- 304 -LRB102 15486 SMS 20849 b
1 the cause for suspension has been abated. The Division
2 Board may revoke an owners license or organization gaming
3 license upon a determination that the licensee has not
4 made satisfactory progress toward abating the hazard.
5 (12) To eject or exclude or authorize the ejection or
6 exclusion of, any person from gambling facilities where
7 that person is in violation of this Act, rules and
8 regulations thereunder, or final orders of the Division
9 Board, or where such person's conduct or reputation is
10 such that his or her presence within the gambling
11 facilities may, in the opinion of the Division Board, call
12 into question the honesty and integrity of the gambling
13 operations or interfere with the orderly conduct thereof;
14 provided that the propriety of such ejection or exclusion
15 is subject to subsequent hearing by the Division Board.
16 (13) To require all licensees of gambling operations
17 to utilize a cashless wagering system whereby all players'
18 money is converted to tokens, electronic cards, or chips
19 which shall be used only for wagering in the gambling
20 establishment.
21 (14) (Blank).
22 (15) To suspend, revoke or restrict licenses, to
23 require the removal of a licensee or an employee of a
24 licensee for a violation of this Act or a Division Board
25 rule or for engaging in a fraudulent practice, and to
26 impose civil penalties of up to $5,000 against individuals

SB2254- 305 -LRB102 15486 SMS 20849 b
1 and up to $10,000 or an amount equal to the daily gross
2 receipts, whichever is larger, against licensees for each
3 violation of any provision of the Act, any rules adopted
4 by the Division Board, any order of the Division Board or
5 any other action which, in the Division's Board's
6 discretion, is a detriment or impediment to gambling
7 operations.
8 (16) To hire employees to gather information, conduct
9 investigations and carry out any other tasks contemplated
10 under this Act.
11 (17) To establish minimum levels of insurance to be
12 maintained by licensees.
13 (18) To authorize a licensee to sell or serve
14 alcoholic liquors, wine or beer as defined in the Liquor
15 Control Act of 1934 on board a riverboat or in a casino and
16 to have exclusive authority to establish the hours for
17 sale and consumption of alcoholic liquor on board a
18 riverboat or in a casino, notwithstanding any provision of
19 the Liquor Control Act of 1934 or any local ordinance, and
20 regardless of whether the riverboat makes excursions. The
21 establishment of the hours for sale and consumption of
22 alcoholic liquor on board a riverboat or in a casino is an
23 exclusive power and function of the State. A home rule
24 unit may not establish the hours for sale and consumption
25 of alcoholic liquor on board a riverboat or in a casino.
26 This subdivision (18) is a denial and limitation of home

SB2254- 306 -LRB102 15486 SMS 20849 b
1 rule powers and functions under subsection (h) of Section
2 6 of Article VII of the Illinois Constitution.
3 (19) After consultation with the U.S. Army Corps of
4 Engineers, to establish binding emergency orders upon the
5 concurrence of a majority of the members of the Division
6 Board regarding the navigability of water, relative to
7 excursions, in the event of extreme weather conditions,
8 acts of God or other extreme circumstances.
9 (20) To delegate the execution of any of its powers
10 under this Act for the purpose of administering and
11 enforcing this Act and the rules adopted by the Division
12 Board.
13 (20.5) To approve any contract entered into on its
14 behalf.
15 (20.6) To appoint investigators to conduct
16 investigations, searches, seizures, arrests, and other
17 duties imposed under this Act, as deemed necessary by the
18 Division Board. These investigators have and may exercise
19 all of the rights and powers of peace officers, provided
20 that these powers shall be limited to offenses or
21 violations occurring or committed in a casino, in an
22 organization gaming facility, or on a riverboat or dock,
23 as defined in subsections (d) and (f) of Section 4, or as
24 otherwise provided by this Act or any other law.
25 (20.7) To contract with the Department of State Police
26 for the use of trained and qualified State police officers

SB2254- 307 -LRB102 15486 SMS 20849 b
1 and with the Department of Revenue for the use of trained
2 and qualified Department of Revenue investigators to
3 conduct investigations, searches, seizures, arrests, and
4 other duties imposed under this Act and to exercise all of
5 the rights and powers of peace officers, provided that the
6 powers of Department of Revenue investigators under this
7 subdivision (20.7) shall be limited to offenses or
8 violations occurring or committed in a casino, in an
9 organization gaming facility, or on a riverboat or dock,
10 as defined in subsections (d) and (f) of Section 4, or as
11 otherwise provided by this Act or any other law. In the
12 event the Department of State Police or the Department of
13 Revenue is unable to fill contracted police or
14 investigative positions, the Division Board may appoint
15 investigators to fill those positions pursuant to
16 subdivision (20.6).
17 (21) To adopt rules concerning the conduct of gaming
18 pursuant to an organization gaming license issued under
19 this Act.
20 (22) To have the same jurisdiction and supervision
21 over casinos and organization gaming facilities as the
22 Division Board has over riverboats, including, but not
23 limited to, the power to (i) investigate, review, and
24 approve contracts as that power is applied to riverboats,
25 (ii) adopt rules for administering the provisions of this
26 Act, (iii) adopt standards for the licensing of all

SB2254- 308 -LRB102 15486 SMS 20849 b
1 persons involved with a casino or organization gaming
2 facility, (iv) investigate alleged violations of this Act
3 by any person involved with a casino or organization
4 gaming facility, and (v) require that records, including
5 financial or other statements of any casino or
6 organization gaming facility, shall be kept in such manner
7 as prescribed by the Division Board.
8 (23) To take any other action as may be reasonable or
9 appropriate to enforce this Act and the rules adopted by
10 the Division Board.
11 (d) The Division Board may seek and shall receive the
12cooperation of the Department of State Police in conducting
13background investigations of applicants and in fulfilling its
14responsibilities under this Section. Costs incurred by the
15Department of State Police as a result of such cooperation
16shall be paid by the Division Board in conformance with the
17requirements of Section 2605-400 of the Department of State
18Police Law.
19 (e) The Division Board must authorize to each investigator
20and to any other employee of the Division Board exercising the
21powers of a peace officer a distinct badge that, on its face,
22(i) clearly states that the badge is authorized by the
23Division Board and (ii) contains a unique identifying number.
24No other badge shall be authorized by the Division Board.
25(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)

SB2254- 309 -LRB102 15486 SMS 20849 b
1 (230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
2 Sec. 5.1. Disclosure of records.
3 (a) Notwithstanding any applicable statutory provision to
4the contrary, the Division Board shall, on written request
5from any person, provide information furnished by an applicant
6or licensee concerning the applicant or licensee, his
7products, services or gambling enterprises and his business
8holdings, as follows:
9 (1) The name, business address and business telephone
10 number of any applicant or licensee.
11 (2) An identification of any applicant or licensee
12 including, if an applicant or licensee is not an
13 individual, the names and addresses of all stockholders
14 and directors, if the entity is a corporation; the names
15 and addresses of all members, if the entity is a limited
16 liability company; the names and addresses of all
17 partners, both general and limited, if the entity is a
18 partnership; and the names and addresses of all
19 beneficiaries, if the entity is a trust. If an applicant
20 or licensee has a pending registration statement filed
21 with the Securities and Exchange Commission, only the
22 names of those persons or entities holding interest of 5%
23 or more must be provided.
24 (3) An identification of any business, including, if
25 applicable, the state of incorporation or registration, in
26 which an applicant or licensee or an applicant's or

SB2254- 310 -LRB102 15486 SMS 20849 b
1 licensee's spouse or children has an equity interest of
2 more than 1%. If an applicant or licensee is a
3 corporation, partnership or other business entity, the
4 applicant or licensee shall identify any other
5 corporation, partnership or business entity in which it
6 has an equity interest of 1% or more, including, if
7 applicable, the state of incorporation or registration.
8 This information need not be provided by a corporation,
9 partnership or other business entity that has a pending
10 registration statement filed with the Securities and
11 Exchange Commission.
12 (4) Whether an applicant or licensee has been
13 indicted, convicted, pleaded guilty or nolo contendere, or
14 forfeited bail concerning any criminal offense under the
15 laws of any jurisdiction, either felony or misdemeanor
16 (except for traffic violations), including the date, the
17 name and location of the court, arresting agency and
18 prosecuting agency, the case number, the offense, the
19 disposition and the location and length of incarceration.
20 (5) Whether an applicant or licensee has had any
21 license or certificate issued by a licensing authority in
22 Illinois or any other jurisdiction denied, restricted,
23 suspended, revoked or not renewed and a statement
24 describing the facts and circumstances concerning the
25 denial, restriction, suspension, revocation or
26 non-renewal, including the licensing authority, the date

SB2254- 311 -LRB102 15486 SMS 20849 b
1 each such action was taken, and the reason for each such
2 action.
3 (6) Whether an applicant or licensee has ever filed or
4 had filed against it a proceeding in bankruptcy or has
5 ever been involved in any formal process to adjust, defer,
6 suspend or otherwise work out the payment of any debt
7 including the date of filing, the name and location of the
8 court, the case and number of the disposition.
9 (7) Whether an applicant or licensee has filed, or
10 been served with a complaint or other notice filed with
11 any public body, regarding the delinquency in the payment
12 of, or a dispute over the filings concerning the payment
13 of, any tax required under federal, State or local law,
14 including the amount, type of tax, the taxing agency and
15 time periods involved.
16 (8) A statement listing the names and titles of all
17 public officials or officers of any unit of government,
18 and relatives of said public officials or officers who,
19 directly or indirectly, own any financial interest in,
20 have any beneficial interest in, are the creditors of or
21 hold any debt instrument issued by, or hold or have any
22 interest in any contractual or service relationship with,
23 an applicant or licensee.
24 (9) Whether an applicant or licensee has made,
25 directly or indirectly, any political contribution, or any
26 loans, donations or other payments, to any candidate or

SB2254- 312 -LRB102 15486 SMS 20849 b
1 office holder, within 5 years from the date of filing the
2 application, including the amount and the method of
3 payment.
4 (10) The name and business telephone number of the
5 counsel representing an applicant or licensee in matters
6 before the Division Board.
7 (11) A description of any proposed or approved
8 gambling operation, including the type of boat, home dock,
9 or casino or gaming location, expected economic benefit to
10 the community, anticipated or actual number of employees,
11 any statement from an applicant or licensee regarding
12 compliance with federal and State affirmative action
13 guidelines, projected or actual admissions and projected
14 or actual adjusted gross gaming receipts.
15 (12) A description of the product or service to be
16 supplied by an applicant for a supplier's license.
17 (b) Notwithstanding any applicable statutory provision to
18the contrary, the Division Board shall, on written request
19from any person, also provide the following information:
20 (1) The amount of the wagering tax and admission tax
21 paid daily to the State of Illinois by the holder of an
22 owner's license.
23 (2) Whenever the Division Board finds an applicant for
24 an owner's license unsuitable for licensing, a copy of the
25 written letter outlining the reasons for the denial.
26 (3) Whenever the Division Board has refused to grant

SB2254- 313 -LRB102 15486 SMS 20849 b
1 leave for an applicant to withdraw his application, a copy
2 of the letter outlining the reasons for the refusal.
3 (c) Subject to the above provisions, the Division Board
4shall not disclose any information which would be barred by:
5 (1) Section 7 of the Freedom of Information Act; or
6 (2) The statutes, rules, regulations or
7 intergovernmental agreements of any jurisdiction.
8 (d) The Division Board may assess fees for the copying of
9information in accordance with Section 6 of the Freedom of
10Information Act.
11(Source: P.A. 101-31, eff. 6-28-19.)
12 (230 ILCS 10/5.2)
13 Sec. 5.2. Separation from Department of Revenue. As of
14July 1, 2009, all of the powers, duties, assets, liabilities,
15employees, contracts, property, records, pending business, and
16unexpended appropriations of the Department of Revenue related
17to the administration and enforcement of this Act are
18transferred to the former Illinois Gaming Board.
19 The status and rights of the transferred employees, and
20the rights of the State of Illinois and its agencies, under the
21Personnel Code and applicable collective bargaining agreements
22or under any pension, retirement, or annuity plan are not
23affected (except as provided in Sections 14-110 and 18-127 of
24the Illinois Pension Code) by that transfer or by any other
25provision of this amendatory Act of the 96th General Assembly.

SB2254- 314 -LRB102 15486 SMS 20849 b
1 This Section is declarative of existing law.
2(Source: P.A. 96-1392, eff. 1-1-11.)
3 (230 ILCS 10/5.3)
4 Sec. 5.3. Ethical conduct.
5 (a) Officials and employees of the corporate authority of
6a host community must carry out their duties and
7responsibilities in such a manner as to promote and preserve
8public trust and confidence in the integrity and conduct of
9gaming.
10 (b) Officials and employees of the corporate authority of
11a host community shall not use or attempt to use his or her
12official position to secure or attempt to secure any
13privilege, advantage, favor, or influence for himself or
14herself or others.
15 (c) Officials and employees of the corporate authority of
16a host community may not have a financial interest, directly
17or indirectly, in his or her own name or in the name of any
18other person, partnership, association, trust, corporation, or
19other entity in any contract or subcontract for the
20performance of any work for a riverboat or casino that is
21located in the host community. This prohibition shall extend
22to the holding or acquisition of an interest in any entity
23identified by Division Board action that, in the Division's
24Board's judgment, could represent the potential for or the
25appearance of a financial interest. The holding or acquisition

SB2254- 315 -LRB102 15486 SMS 20849 b
1of an interest in such entities through an indirect means,
2such as through a mutual fund, shall not be prohibited, except
3that the Division Board may identify specific investments or
4funds that, in its judgment, are so influenced by gaming
5holdings as to represent the potential for or the appearance
6of a conflict of interest.
7 (d) Officials and employees of the corporate authority of
8a host community may not accept any gift, gratuity, service,
9compensation, travel, lodging, or thing of value, with the
10exception of unsolicited items of an incidental nature, from
11any person, corporation, or entity doing business with the
12riverboat or casino that is located in the host community.
13 (e) Officials and employees of the corporate authority of
14a host community shall not, during the period that the person
15is an official or employee of the corporate authority or for a
16period of 2 years immediately after leaving such office,
17knowingly accept employment or receive compensation or fees
18for services from a person or entity, or its parent or
19affiliate, that has engaged in business with the riverboat or
20casino that is located in the host community that resulted in
21contracts with an aggregate value of at least $25,000 or if
22that official or employee has made a decision that directly
23applied to the person or entity, or its parent or affiliate.
24 (f) A spouse, child, or parent of an official or employee
25of the corporate authority of a host community may not have a
26financial interest, directly or indirectly, in his or her own

SB2254- 316 -LRB102 15486 SMS 20849 b
1name or in the name of any other person, partnership,
2association, trust, corporation, or other entity in any
3contract or subcontract for the performance of any work for a
4riverboat or casino in the host community. This prohibition
5shall extend to the holding or acquisition of an interest in
6any entity identified by Division Board action that, in the
7judgment of the Division Board, could represent the potential
8for or the appearance of a conflict of interest. The holding or
9acquisition of an interest in such entities through an
10indirect means, such as through a mutual fund, shall not be
11prohibited, expect that the Division Board may identify
12specific investments or funds that, in its judgment, are so
13influenced by gaming holdings as to represent the potential
14for or the appearance of a conflict of interest.
15 (g) A spouse, child, or parent of an official or employee
16of the corporate authority of a host community may not accept
17any gift, gratuity, service, compensation, travel, lodging, or
18thing of value, with the exception of unsolicited items of an
19incidental nature, from any person, corporation, or entity
20doing business with the riverboat or casino that is located in
21the host community.
22 (h) A spouse, child, or parent of an official or employee
23of the corporate authority of a host community may not, during
24the period that the person is an official of the corporate
25authority or for a period of 2 years immediately after leaving
26such office or employment, knowingly accept employment or

SB2254- 317 -LRB102 15486 SMS 20849 b
1receive compensation or fees for services from a person or
2entity, or its parent or affiliate, that has engaged in
3business with the riverboat or casino that is located in the
4host community that resulted in contracts with an aggregate
5value of at least $25,000 or if that official or employee has
6made a decision that directly applied to the person or entity,
7or its parent or affiliate.
8 (i) Officials and employees of the corporate authority of
9a host community shall not attempt, in any way, to influence
10any person or entity doing business with the riverboat or
11casino that is located in the host community or any officer,
12agent, or employee thereof to hire or contract with any person
13or entity for any compensated work.
14 (j) Any communication between an official of the corporate
15authority of a host community and any applicant for an owners
16license in the host community, or an officer, director, or
17employee of a riverboat or casino in the host community,
18concerning any matter relating in any way to gaming shall be
19disclosed to the Division Board. Such disclosure shall be in
20writing by the official within 30 days after the communication
21and shall be filed with the Division Board. Disclosure must
22consist of the date of the communication, the identity and job
23title of the person with whom the communication was made, a
24brief summary of the communication, the action requested or
25recommended, all responses made, the identity and job title of
26the person making the response, and any other pertinent

SB2254- 318 -LRB102 15486 SMS 20849 b
1information. Public disclosure of the written summary provided
2to the Division Board and the Gaming Board shall be subject to
3the exemptions provided under the Freedom of Information Act.
4 This subsection (j) shall not apply to communications
5regarding traffic, law enforcement, security, environmental
6issues, city services, transportation, or other routine
7matters concerning the ordinary operations of the riverboat or
8casino. For purposes of this subsection (j), "ordinary
9operations" means operations relating to the casino or
10riverboat facility other than the conduct of gambling
11activities, and "routine matters" includes the application
12for, issuance of, renewal of, and other processes associated
13with municipal permits and licenses.
14 (k) Any official or employee who violates any provision of
15this Section is guilty of a Class 4 felony.
16 (l) For purposes of this Section, "host community" or
17"host municipality" means a unit of local government that
18contains a riverboat or casino within its borders.
19(Source: P.A. 101-31, eff. 6-28-19.)
20 (230 ILCS 10/6) (from Ch. 120, par. 2406)
21 Sec. 6. Application for owners license.
22 (a) A qualified person may apply to the Division Board for
23an owners license to conduct a gambling operation as provided
24in this Act. The application shall be made on forms provided by
25the Division Board and shall contain such information as the

SB2254- 319 -LRB102 15486 SMS 20849 b
1Division Board prescribes, including but not limited to the
2identity of the riverboat on which such gambling operation is
3to be conducted, if applicable, and the exact location where
4such riverboat or casino will be located, a certification that
5the riverboat will be registered under this Act at all times
6during which gambling operations are conducted on board,
7detailed information regarding the ownership and management of
8the applicant, and detailed personal information regarding the
9applicant. Any application for an owners license to be
10re-issued on or after June 1, 2003 shall also include the
11applicant's license bid in a form prescribed by the Division
12Board. Information provided on the application shall be used
13as a basis for a thorough background investigation which the
14Division Board shall conduct with respect to each applicant.
15An incomplete application shall be cause for denial of a
16license by the Division Board.
17 (a-5) In addition to any other information required under
18this Section, each application for an owners license must
19include the following information:
20 (1) The history and success of the applicant and each
21 person and entity disclosed under subsection (c) of this
22 Section in developing tourism facilities ancillary to
23 gaming, if applicable.
24 (2) The likelihood that granting a license to the
25 applicant will lead to the creation of quality, living
26 wage jobs and permanent, full-time jobs for residents of

SB2254- 320 -LRB102 15486 SMS 20849 b
1 the State and residents of the unit of local government
2 that is designated as the home dock of the proposed
3 facility where gambling is to be conducted by the
4 applicant.
5 (3) The projected number of jobs that would be created
6 if the license is granted and the projected number of new
7 employees at the proposed facility where gambling is to be
8 conducted by the applicant.
9 (4) The record, if any, of the applicant and its
10 developer in meeting commitments to local agencies,
11 community-based organizations, and employees at other
12 locations where the applicant or its developer has
13 performed similar functions as they would perform if the
14 applicant were granted a license.
15 (5) Identification of adverse effects that might be
16 caused by the proposed facility where gambling is to be
17 conducted by the applicant, including the costs of meeting
18 increased demand for public health care, child care,
19 public transportation, affordable housing, and social
20 services, and a plan to mitigate those adverse effects.
21 (6) The record, if any, of the applicant and its
22 developer regarding compliance with:
23 (A) federal, state, and local discrimination, wage
24 and hour, disability, and occupational and
25 environmental health and safety laws; and
26 (B) state and local labor relations and employment

SB2254- 321 -LRB102 15486 SMS 20849 b
1 laws.
2 (7) The applicant's record, if any, in dealing with
3 its employees and their representatives at other
4 locations.
5 (8) A plan concerning the utilization of
6 minority-owned and women-owned businesses and concerning
7 the hiring of minorities and women.
8 (9) Evidence the applicant used its best efforts to
9 reach a goal of 25% ownership representation by minority
10 persons and 5% ownership representation by women.
11 (b) Applicants shall submit with their application all
12documents, resolutions, and letters of support from the
13governing body that represents the municipality or county
14wherein the licensee will be located.
15 (c) Each applicant shall disclose the identity of every
16person or entity having a greater than 1% direct or indirect
17pecuniary interest in the gambling operation with respect to
18which the license is sought. If the disclosed entity is a
19trust, the application shall disclose the names and addresses
20of all beneficiaries; if a corporation, the names and
21addresses of all stockholders and directors; if a partnership,
22the names and addresses of all partners, both general and
23limited.
24 (d) An application shall be filed and considered in
25accordance with the rules of the Division Board. Each
26application shall be accompanied by a nonrefundable

SB2254- 322 -LRB102 15486 SMS 20849 b
1application fee of $250,000. In addition, a nonrefundable fee
2of $50,000 shall be paid at the time of filing to defray the
3costs associated with the background investigation conducted
4by the Division Board. If the costs of the investigation
5exceed $50,000, the applicant shall pay the additional amount
6to the Division Board within 7 days after requested by the
7Division Board. If the costs of the investigation are less
8than $50,000, the applicant shall receive a refund of the
9remaining amount. All information, records, interviews,
10reports, statements, memoranda or other data supplied to or
11used by the Division Board in the course of its review or
12investigation of an application for a license or a renewal
13under this Act shall be privileged, strictly confidential and
14shall be used only for the purpose of evaluating an applicant
15for a license or a renewal. Such information, records,
16interviews, reports, statements, memoranda or other data shall
17not be admissible as evidence, nor discoverable in any action
18of any kind in any court or before any tribunal, board, agency
19or person, except for any action deemed necessary by the
20Division Board. The application fee shall be deposited into
21the State Gaming Fund.
22 (e) The Division Board shall charge each applicant a fee
23set by the Department of State Police to defray the costs
24associated with the search and classification of fingerprints
25obtained by the Division Board with respect to the applicant's
26application. These fees shall be paid into the State Police

SB2254- 323 -LRB102 15486 SMS 20849 b
1Services Fund. In order to expedite the application process,
2the Division Board may establish rules allowing applicants to
3acquire criminal background checks and financial integrity
4reviews as part of the initial application process from a list
5of vendors approved by the Division Board.
6 (f) The licensed owner shall be the person primarily
7responsible for the boat or casino itself. Only one gambling
8operation may be authorized by the Division Board on any
9riverboat or in any casino. The applicant must identify the
10riverboat or premises it intends to use and certify that the
11riverboat or premises: (1) has the authorized capacity
12required in this Act; (2) is accessible to persons with
13disabilities; and (3) is fully registered and licensed in
14accordance with any applicable laws.
15 (g) A person who knowingly makes a false statement on an
16application is guilty of a Class A misdemeanor.
17(Source: P.A. 101-31, eff. 6-28-19.)
18 (230 ILCS 10/7) (from Ch. 120, par. 2407)
19 Sec. 7. Owners licenses.
20 (a) The Division Board shall issue owners licenses to
21persons or entities that apply for such licenses upon payment
22to the Division Board of the non-refundable license fee as
23provided in subsection (e) or (e-5) and upon a determination
24by the Division Board that the applicant is eligible for an
25owners license pursuant to this Act and the rules of the

SB2254- 324 -LRB102 15486 SMS 20849 b
1Division Board. From December 15, 2008 (the effective date of
2Public Act 95-1008) this amendatory Act of the 95th General
3Assembly until (i) 3 years after December 15, 2008 (the
4effective date of Public Act 95-1008) this amendatory Act of
5the 95th General Assembly, (ii) the date any organization
6licensee begins to operate a slot machine or video game of
7chance under the Illinois Horse Racing Act of 1975 or this Act,
8(iii) the date that payments begin under subsection (c-5) of
9Section 13 of this Act, (iv) the wagering tax imposed under
10Section 13 of this Act is increased by law to reflect a tax
11rate that is at least as stringent or more stringent than the
12tax rate contained in subsection (a-3) of Section 13, or (v)
13when an owners licensee holding a license issued pursuant to
14Section 7.1 of this Act begins conducting gaming, whichever
15occurs first, as a condition of licensure and as an
16alternative source of payment for those funds payable under
17subsection (c-5) of Section 13 of this Act, any owners
18licensee that holds or receives its owners license on or after
19May 26, 2006 (the effective date of Public Act 94-804) this
20amendatory Act of the 94th General Assembly, other than an
21owners licensee operating a riverboat with adjusted gross
22receipts in calendar year 2004 of less than $200,000,000, must
23pay into the Horse Racing Equity Trust Fund, in addition to any
24other payments required under this Act, an amount equal to 3%
25of the adjusted gross receipts received by the owners
26licensee. The payments required under this Section shall be

SB2254- 325 -LRB102 15486 SMS 20849 b
1made by the owners licensee to the State Treasurer no later
2than 3:00 o'clock p.m. of the day after the day when the
3adjusted gross receipts were received by the owners licensee.
4A person or entity is ineligible to receive an owners license
5if:
6 (1) the person has been convicted of a felony under
7 the laws of this State, any other state, or the United
8 States;
9 (2) the person has been convicted of any violation of
10 Article 28 of the Criminal Code of 1961 or the Criminal
11 Code of 2012, or substantially similar laws of any other
12 jurisdiction;
13 (3) the person has submitted an application for a
14 license under this Act which contains false information;
15 (4) (blank) the person is a member of the Board;
16 (5) a person defined in (1), (2), (3), or (4) is an
17 officer, director, or managerial employee of the entity;
18 (6) the entity employs a person defined in (1), (2),
19 (3), or (4) who participates in the management or
20 operation of gambling operations authorized under this
21 Act;
22 (7) (blank); or
23 (8) a license of the person or entity issued under
24 this Act, or a license to own or operate gambling
25 facilities in any other jurisdiction, has been revoked.
26 The Division Board is expressly prohibited from making

SB2254- 326 -LRB102 15486 SMS 20849 b
1changes to the requirement that licensees make payment into
2the Horse Racing Equity Trust Fund without the express
3authority of the Illinois General Assembly and making any
4other rule to implement or interpret Public Act 95-1008 this
5amendatory Act of the 95th General Assembly. For the purposes
6of this paragraph, "rules" is given the meaning given to that
7term in Section 1-70 of the Illinois Administrative Procedure
8Act.
9 (b) In determining whether to grant an owners license to
10an applicant, the Division Board shall consider:
11 (1) the character, reputation, experience, and
12 financial integrity of the applicants and of any other or
13 separate person that either:
14 (A) controls, directly or indirectly, such
15 applicant; , or
16 (B) is controlled, directly or indirectly, by such
17 applicant or by a person which controls, directly or
18 indirectly, such applicant;
19 (2) the facilities or proposed facilities for the
20 conduct of gambling;
21 (3) the highest prospective total revenue to be
22 derived by the State from the conduct of gambling;
23 (4) the extent to which the ownership of the applicant
24 reflects the diversity of the State by including minority
25 persons, women, and persons with a disability and the good
26 faith affirmative action plan of each applicant to

SB2254- 327 -LRB102 15486 SMS 20849 b
1 recruit, train and upgrade minority persons, women, and
2 persons with a disability in all employment
3 classifications; the Division Board shall further consider
4 granting an owners license and giving preference to an
5 applicant under this Section to applicants in which
6 minority persons and women hold ownership interest of at
7 least 16% and 4%, respectively; .
8 (4.5) the extent to which the ownership of the
9 applicant includes veterans of service in the armed forces
10 of the United States, and the good faith affirmative
11 action plan of each applicant to recruit, train, and
12 upgrade veterans of service in the armed forces of the
13 United States in all employment classifications;
14 (5) the financial ability of the applicant to purchase
15 and maintain adequate liability and casualty insurance;
16 (6) whether the applicant has adequate capitalization
17 to provide and maintain, for the duration of a license, a
18 riverboat or casino;
19 (7) the extent to which the applicant exceeds or meets
20 other standards for the issuance of an owners license
21 which the Division Board may adopt by rule;
22 (8) the amount of the applicant's license bid;
23 (9) the extent to which the applicant or the proposed
24 host municipality plans to enter into revenue sharing
25 agreements with communities other than the host
26 municipality; and

SB2254- 328 -LRB102 15486 SMS 20849 b
1 (10) the extent to which the ownership of an applicant
2 includes the most qualified number of minority persons,
3 women, and persons with a disability.
4 (c) Each owners license shall specify the place where the
5casino shall operate or the riverboat shall operate and dock.
6 (d) Each applicant shall submit with his or her
7application, on forms provided by the Division Board, 2 sets
8of his or her fingerprints.
9 (e) In addition to any licenses authorized under
10subsection (e-5) of this Section, the Division Board may issue
11up to 10 licenses authorizing the holders of such licenses to
12own riverboats. In the application for an owners license, the
13applicant shall state the dock at which the riverboat is based
14and the water on which the riverboat will be located. The
15Division Board shall issue 5 licenses to become effective not
16earlier than January 1, 1991. Three of such licenses shall
17authorize riverboat gambling on the Mississippi River, or,
18with approval by the municipality in which the riverboat was
19docked on August 7, 2003 and with Division Board approval, be
20authorized to relocate to a new location, in a municipality
21that (1) borders on the Mississippi River or is within 5 miles
22of the city limits of a municipality that borders on the
23Mississippi River and (2) on August 7, 2003, had a riverboat
24conducting riverboat gambling operations pursuant to a license
25issued under this Act; one of which shall authorize riverboat
26gambling from a home dock in the city of East St. Louis; and

SB2254- 329 -LRB102 15486 SMS 20849 b
1one of which shall authorize riverboat gambling from a home
2dock in the City of Alton. One other license shall authorize
3riverboat gambling on the Illinois River in the City of East
4Peoria or, with Division Board approval, shall authorize
5land-based gambling operations anywhere within the corporate
6limits of the City of Peoria. The Division Board shall issue
7one additional license to become effective not earlier than
8March 1, 1992, which shall authorize riverboat gambling on the
9Des Plaines River in Will County. The Division Board may issue
104 additional licenses to become effective not earlier than
11March 1, 1992. In determining the water upon which riverboats
12will operate, the Division Board shall consider the economic
13benefit which riverboat gambling confers on the State, and
14shall seek to assure that all regions of the State share in the
15economic benefits of riverboat gambling.
16 In granting all licenses, the Division Board may give
17favorable consideration to economically depressed areas of the
18State, to applicants presenting plans which provide for
19significant economic development over a large geographic area,
20and to applicants who currently operate non-gambling
21riverboats in Illinois. The Board shall review all
22applications for owners licenses, and shall inform each
23applicant of the Division's Board's decision. The Division
24Board may grant an owners license to an applicant that has not
25submitted the highest license bid, but if it does not select
26the highest bidder, the Division Board shall issue a written

SB2254- 330 -LRB102 15486 SMS 20849 b
1decision explaining why another applicant was selected and
2identifying the factors set forth in this Section that favored
3the winning bidder. The fee for issuance or renewal of a
4license pursuant to this subsection (e) shall be $250,000.
5 (e-5) In addition to licenses authorized under subsection
6(e) of this Section:
7 (1) the Division Board may issue one owners license
8 authorizing the conduct of casino gambling in the City of
9 Chicago;
10 (2) the Division Board may issue one owners license
11 authorizing the conduct of riverboat gambling in the City
12 of Danville;
13 (3) the Division Board may issue one owners license
14 authorizing the conduct of riverboat gambling in the City
15 of Waukegan;
16 (4) the Division Board may issue one owners license
17 authorizing the conduct of riverboat gambling in the City
18 of Rockford;
19 (5) the Division Board may issue one owners license
20 authorizing the conduct of riverboat gambling in a
21 municipality that is wholly or partially located in one of
22 the following townships of Cook County: Bloom, Bremen,
23 Calumet, Rich, Thornton, or Worth Township; and
24 (6) the Division Board may issue one owners license
25 authorizing the conduct of riverboat gambling in the
26 unincorporated area of Williamson County adjacent to the

SB2254- 331 -LRB102 15486 SMS 20849 b
1 Big Muddy River.
2 Except for the license authorized under paragraph (1),
3each application for a license pursuant to this subsection
4(e-5) shall be submitted to the Division Board no later than
5120 days after June 28, 2019 (the effective date of Public Act
6101-31). All applications for a license under this subsection
7(e-5) shall include the nonrefundable application fee and the
8nonrefundable background investigation fee as provided in
9subsection (d) of Section 6 of this Act. In the event that an
10applicant submits an application for a license pursuant to
11this subsection (e-5) prior to June 28, 2019 (the effective
12date of Public Act 101-31), such applicant shall submit the
13nonrefundable application fee and background investigation fee
14as provided in subsection (d) of Section 6 of this Act no later
15than 6 months after June 28, 2019 (the effective date of Public
16Act 101-31).
17 The Division Board shall consider issuing a license
18pursuant to paragraphs (1) through (6) of this subsection only
19after the corporate authority of the municipality or the
20county board of the county in which the riverboat or casino
21shall be located has certified to the Division Board the
22following:
23 (i) that the applicant has negotiated with the
24 corporate authority or county board in good faith;
25 (ii) that the applicant and the corporate authority or
26 county board have mutually agreed on the permanent

SB2254- 332 -LRB102 15486 SMS 20849 b
1 location of the riverboat or casino;
2 (iii) that the applicant and the corporate authority
3 or county board have mutually agreed on the temporary
4 location of the riverboat or casino;
5 (iv) that the applicant and the corporate authority or
6 the county board have mutually agreed on the percentage of
7 revenues that will be shared with the municipality or
8 county, if any;
9 (v) that the applicant and the corporate authority or
10 county board have mutually agreed on any zoning,
11 licensing, public health, or other issues that are within
12 the jurisdiction of the municipality or county;
13 (vi) that the corporate authority or county board has
14 passed a resolution or ordinance in support of the
15 riverboat or casino in the municipality or county;
16 (vii) the applicant for a license under paragraph (1)
17 has made a public presentation concerning its casino
18 proposal; and
19 (viii) the applicant for a license under paragraph (1)
20 has prepared a summary of its casino proposal and such
21 summary has been posted on a public website of the
22 municipality or the county.
23 At least 7 days before the corporate authority of a
24municipality or county board of the county submits a
25certification to the Division Board concerning items (i)
26through (viii) of this subsection, it shall hold a public

SB2254- 333 -LRB102 15486 SMS 20849 b
1hearing to discuss items (i) through (viii), as well as any
2other details concerning the proposed riverboat or casino in
3the municipality or county. The corporate authority or county
4board must subsequently memorialize the details concerning the
5proposed riverboat or casino in a resolution that must be
6adopted by a majority of the corporate authority or county
7board before any certification is sent to the Division Board.
8The Division Board shall not alter, amend, change, or
9otherwise interfere with any agreement between the applicant
10and the corporate authority of the municipality or county
11board of the county regarding the location of any temporary or
12permanent facility.
13 In addition, within 10 days after June 28, 2019 (the
14effective date of Public Act 101-31), the Board, with consent
15and at the expense of the City of Chicago, shall select and
16retain the services of a nationally recognized casino gaming
17feasibility consultant. Within 45 days after June 28, 2019
18(the effective date of Public Act 101-31), the consultant
19shall prepare and deliver to the Board a study concerning the
20feasibility of, and the ability to finance, a casino in the
21City of Chicago. The feasibility study shall be delivered to
22the Mayor of the City of Chicago, the Governor, the President
23of the Senate, and the Speaker of the House of
24Representatives. Ninety days after receipt of the feasibility
25study, the Board shall make a determination, based on the
26results of the feasibility study, whether to recommend to the

SB2254- 334 -LRB102 15486 SMS 20849 b
1General Assembly that the terms of the license under paragraph
2(1) of this subsection (e-5) should be modified. The Board may
3begin accepting applications for the owners license under
4paragraph (1) of this subsection (e-5) upon the determination
5to issue such an owners license.
6 In addition, prior to the Division Board issuing the
7owners license authorized under paragraph (4) of subsection
8(e-5), an impact study shall be completed to determine what
9location in the city will provide the greater impact to the
10region, including the creation of jobs and the generation of
11tax revenue.
12 (e-10) The licenses authorized under subsection (e-5) of
13this Section shall be issued within 12 months after the date
14the license application is submitted. If the Division Board
15does not issue the licenses within that time period, then the
16Division Board shall give a written explanation to the
17applicant as to why it has not reached a determination and when
18it reasonably expects to make a determination. The fee for the
19issuance or renewal of a license issued pursuant to this
20subsection (e-10) shall be $250,000. Additionally, a licensee
21located outside of Cook County shall pay a minimum initial fee
22of $17,500 per gaming position, and a licensee located in Cook
23County shall pay a minimum initial fee of $30,000 per gaming
24position. The initial fees payable under this subsection
25(e-10) shall be deposited into the Rebuild Illinois Projects
26Fund. If at any point after June 1, 2020 there are no pending

SB2254- 335 -LRB102 15486 SMS 20849 b
1applications for a license under subsection (e-5) and not all
2licenses authorized under subsection (e-5) have been issued,
3then the Division Board shall reopen the license application
4process for those licenses authorized under subsection (e-5)
5that have not been issued. The Division Board shall follow the
6licensing process provided in subsection (e-5) with all time
7frames tied to the last date of a final order issued by the
8Division Board under subsection (e-5) rather than the
9effective date of the amendatory Act.
10 (e-15) Each licensee of a license authorized under
11subsection (e-5) of this Section shall make a reconciliation
12payment 3 years after the date the licensee begins operating
13in an amount equal to 75% of the adjusted gross receipts for
14the most lucrative 12-month period of operations, minus an
15amount equal to the initial payment per gaming position paid
16by the specific licensee. Each licensee shall pay a
17$15,000,000 reconciliation fee upon issuance of an owners
18license. If this calculation results in a negative amount,
19then the licensee is not entitled to any reimbursement of fees
20previously paid. This reconciliation payment may be made in
21installments over a period of no more than 6 years.
22 All payments by licensees under this subsection (e-15)
23shall be deposited into the Rebuild Illinois Projects Fund.
24 (e-20) In addition to any other revocation powers granted
25to the Division Board under this Act, the Division Board may
26revoke the owners license of a licensee which fails to begin

SB2254- 336 -LRB102 15486 SMS 20849 b
1conducting gambling within 15 months of receipt of the
2Division's Board's approval of the application if the Division
3Board determines that license revocation is in the best
4interests of the State.
5 (f) The first 10 owners licenses issued under this Act
6shall permit the holder to own up to 2 riverboats and equipment
7thereon for a period of 3 years after the effective date of the
8license. Holders of the first 10 owners licenses must pay the
9annual license fee for each of the 3 years during which they
10are authorized to own riverboats.
11 (g) Upon the termination, expiration, or revocation of
12each of the first 10 licenses, which shall be issued for a
133-year period, all licenses are renewable annually upon
14payment of the fee and a determination by the Division Board
15that the licensee continues to meet all of the requirements of
16this Act and the Division's Board's rules. However, for
17licenses renewed on or after May 1, 1998, renewal shall be for
18a period of 4 years, unless the Division Board sets a shorter
19period.
20 (h) An owners license, except for an owners license issued
21under subsection (e-5) of this Section, shall entitle the
22licensee to own up to 2 riverboats.
23 An owners licensee of a casino or riverboat that is
24located in the City of Chicago pursuant to paragraph (1) of
25subsection (e-5) of this Section shall limit the number of
26gaming positions to 4,000 for such owner. An owners licensee

SB2254- 337 -LRB102 15486 SMS 20849 b
1authorized under subsection (e) or paragraph (2), (3), (4), or
2(5) of subsection (e-5) of this Section shall limit the number
3of gaming positions to 2,000 for any such owners license. An
4owners licensee authorized under paragraph (6) of subsection
5(e-5) of this Section shall limit the number of gaming
6positions to 1,200 for such owner. The initial fee for each
7gaming position obtained on or after June 28, 2019 (the
8effective date of Public Act 101-31) shall be a minimum of
9$17,500 for licensees not located in Cook County and a minimum
10of $30,000 for licensees located in Cook County, in addition
11to the reconciliation payment, as set forth in subsection
12(e-15) of this Section. The fees under this subsection (h)
13shall be deposited into the Rebuild Illinois Projects Fund.
14The fees under this subsection (h) that are paid by an owners
15licensee authorized under subsection (e) shall be paid by July
161, 2021.
17 Each owners licensee under subsection (e) of this Section
18shall reserve its gaming positions within 30 days after June
1928, 2019 (the effective date of Public Act 101-31). The
20Division Board may grant an extension to this 30-day period,
21provided that the owners licensee submits a written request
22and explanation as to why it is unable to reserve its positions
23within the 30-day period.
24 Each owners licensee under subsection (e-5) of this
25Section shall reserve its gaming positions within 30 days
26after issuance of its owners license. The Division Board may

SB2254- 338 -LRB102 15486 SMS 20849 b
1grant an extension to this 30-day period, provided that the
2owners licensee submits a written request and explanation as
3to why it is unable to reserve its positions within the 30-day
4period.
5 A licensee may operate both of its riverboats
6concurrently, provided that the total number of gaming
7positions on both riverboats does not exceed the limit
8established pursuant to this subsection. Riverboats licensed
9to operate on the Mississippi River and the Illinois River
10south of Marshall County shall have an authorized capacity of
11at least 500 persons. Any other riverboat licensed under this
12Act shall have an authorized capacity of at least 400 persons.
13 (h-5) An owners licensee who conducted gambling operations
14prior to January 1, 2012 and obtains positions pursuant to
15Public Act 101-31 shall make a reconciliation payment 3 years
16after any additional gaming positions begin operating in an
17amount equal to 75% of the owners licensee's average gross
18receipts for the most lucrative 12-month period of operations
19minus an amount equal to the initial fee that the owners
20licensee paid per additional gaming position. For purposes of
21this subsection (h-5), "average gross receipts" means (i) the
22increase in adjusted gross receipts for the most lucrative
2312-month period of operations over the adjusted gross receipts
24for 2019, multiplied by (ii) the percentage derived by
25dividing the number of additional gaming positions that an
26owners licensee had obtained by the total number of gaming

SB2254- 339 -LRB102 15486 SMS 20849 b
1positions operated by the owners licensee. If this calculation
2results in a negative amount, then the owners licensee is not
3entitled to any reimbursement of fees previously paid. This
4reconciliation payment may be made in installments over a
5period of no more than 6 years. These reconciliation payments
6shall be deposited into the Rebuild Illinois Projects Fund.
7 (i) A licensed owner is authorized to apply to the
8Division Board for and, if approved therefor, to receive all
9licenses from the Division Board necessary for the operation
10of a riverboat or casino, including a liquor license, a
11license to prepare and serve food for human consumption, and
12other necessary licenses. All use, occupation, and excise
13taxes which apply to the sale of food and beverages in this
14State and all taxes imposed on the sale or use of tangible
15personal property apply to such sales aboard the riverboat or
16in the casino.
17 (j) The Division Board may issue or re-issue a license
18authorizing a riverboat to dock in a municipality or approve a
19relocation under Section 11.2 only if, prior to the issuance
20or re-issuance of the license or approval, the governing body
21of the municipality in which the riverboat will dock has by a
22majority vote approved the docking of riverboats in the
23municipality. The Division Board may issue or re-issue a
24license authorizing a riverboat to dock in areas of a county
25outside any municipality or approve a relocation under Section
2611.2 only if, prior to the issuance or re-issuance of the

SB2254- 340 -LRB102 15486 SMS 20849 b
1license or approval, the governing body of the county has by a
2majority vote approved of the docking of riverboats within
3such areas.
4 (k) An owners licensee may conduct land-based gambling
5operations upon approval by the Division Board and payment of
6a fee of $250,000, which shall be deposited into the State
7Gaming Fund.
8 (l) An owners licensee may conduct gaming at a temporary
9facility pending the construction of a permanent facility or
10the remodeling or relocation of an existing facility to
11accommodate gaming participants for up to 24 months after the
12temporary facility begins to conduct gaming. Upon request by
13an owners licensee and upon a showing of good cause by the
14owners licensee, the Division Board shall extend the period
15during which the licensee may conduct gaming at a temporary
16facility by up to 12 months. The Division Board shall make
17rules concerning the conduct of gaming from temporary
18facilities.
19(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18;
20101-31, eff. 6-28-19; 101-648, eff. 6-30-20; revised 8-19-20.)
21 (230 ILCS 10/7.1)
22 Sec. 7.1. Re-issuance of revoked or non-renewed owners
23licenses.
24 (a) If an owners license terminates or expires without
25renewal or the Division Board revokes or determines not to

SB2254- 341 -LRB102 15486 SMS 20849 b
1renew an owners license (including, without limitation, an
2owners license for a licensee that was not conducting
3riverboat gambling operations on January 1, 1998) and that
4revocation or determination is final, the Division Board may
5re-issue such license to a qualified applicant pursuant to an
6open and competitive bidding process, as set forth in Section
77.5, and subject to the maximum number of authorized licenses
8set forth in Section 7(e).
9 (b) To be a qualified applicant, a person, firm, or
10corporation cannot be ineligible to receive an owners license
11under Section 7(a) and must submit an application for an
12owners license that complies with Section 6. Each such
13applicant must also submit evidence to the Division Board that
14minority persons and women hold ownership interests in the
15applicant of at least 16% and 4% respectively.
16 (c) Notwithstanding anything to the contrary in Section
177(e), an applicant may apply to the Division Board for
18approval of relocation of a re-issued license to a new home
19dock location authorized under Section 3(c) upon receipt of
20the approval from the municipality or county, as the case may
21be, pursuant to Section 7(j).
22 (d) In determining whether to grant a re-issued owners
23license to an applicant, the Division Board shall consider all
24of the factors set forth in Sections 7(b) and (e) as well as
25the amount of the applicant's license bid. The Division Board
26may grant the re-issued owners license to an applicant that

SB2254- 342 -LRB102 15486 SMS 20849 b
1has not submitted the highest license bid, but if it does not
2select the highest bidder, the Division Board shall issue a
3written decision explaining why another applicant was selected
4and identifying the factors set forth in Sections 7(b) and (e)
5that favored the winning bidder.
6 (e) Re-issued owners licenses shall be subject to annual
7license fees as provided for in Section 7(a) and shall be
8governed by the provisions of Sections 7(f), (g), (h), and
9(i).
10(Source: P.A. 100-391, eff. 8-25-17.)
11 (230 ILCS 10/7.3)
12 Sec. 7.3. State conduct of gambling operations.
13 (a) If, after reviewing each application for a re-issued
14license, the Division Board determines that the highest
15prospective total revenue to the State would be derived from
16State conduct of the gambling operation in lieu of re-issuing
17the license, the Division Board shall inform each applicant of
18its decision. The Division Board shall thereafter have the
19authority, without obtaining an owners license, to conduct
20casino or riverboat gambling operations as previously
21authorized by the terminated, expired, revoked, or nonrenewed
22license through a licensed manager selected pursuant to an
23open and competitive bidding process as set forth in Section
247.5 and as provided in Section 7.4.
25 (b) The Division Board may locate any casino or riverboat

SB2254- 343 -LRB102 15486 SMS 20849 b
1on which a gambling operation is conducted by the State in any
2home dock or other location authorized by Section 3(c) upon
3receipt of approval from a majority vote of the governing body
4of the municipality or county, as the case may be, in which the
5riverboat will dock.
6 (c) The Division Board shall have jurisdiction over and
7shall supervise all gambling operations conducted by the State
8provided for in this Act and shall have all powers necessary
9and proper to fully and effectively execute the provisions of
10this Act relating to gambling operations conducted by the
11State.
12 (d) The maximum number of owners licenses authorized under
13Section 7 shall be reduced by one for each instance in which
14the Division Board authorizes the State to conduct a casino or
15riverboat gambling operation under subsection (a) in lieu of
16re-issuing a license to an applicant under Section 7.1.
17(Source: P.A. 101-31, eff. 6-28-19.)
18 (230 ILCS 10/7.4)
19 Sec. 7.4. Managers licenses.
20 (a) A qualified person may apply to the Division Board for
21a managers license to operate and manage any gambling
22operation conducted by the State. The application shall be
23made on forms provided by the Division Board and shall contain
24such information as the Division Board prescribes, including
25but not limited to information required in Sections 6(a), (b),

SB2254- 344 -LRB102 15486 SMS 20849 b
1and (c) and information relating to the applicant's proposed
2price to manage State gambling operations and to provide the
3riverboat, gambling equipment, and supplies necessary to
4conduct State gambling operations.
5 (b) Each applicant must submit evidence to the Division
6Board that minority persons and women hold ownership interests
7in the applicant of at least 16% and 4%, respectively.
8 (c) A person, firm, or corporation is ineligible to
9receive a managers license if:
10 (1) the person has been convicted of a felony under
11 the laws of this State, any other state, or the United
12 States;
13 (2) the person has been convicted of any violation of
14 Article 28 of the Criminal Code of 1961 or the Criminal
15 Code of 2012, or substantially similar laws of any other
16 jurisdiction;
17 (3) the person has submitted an application for a
18 license under this Act which contains false information;
19 (4) (blank) the person is a member of the Board;
20 (5) a person defined in (1), (2), (3), or (4) is an
21 officer, director, or managerial employee of the firm or
22 corporation;
23 (6) the firm or corporation employs a person defined
24 in (1), (2), (3), or (4) who participates in the
25 management or operation of gambling operations authorized
26 under this Act; or

SB2254- 345 -LRB102 15486 SMS 20849 b
1 (7) a license of the person, firm, or corporation
2 issued under this Act, or a license to own or operate
3 gambling facilities in any other jurisdiction, has been
4 revoked.
5 (d) Each applicant shall submit with his or her
6application, on forms prescribed by the Division Board, 2 sets
7of his or her fingerprints.
8 (e) The Division Board shall charge each applicant a fee,
9set by the Division Board, to defray the costs associated with
10the background investigation conducted by the Division Board.
11 (f) A person who knowingly makes a false statement on an
12application is guilty of a Class A misdemeanor.
13 (g) The managers license shall be for a term not to exceed
1410 years, shall be renewable at the Division's Board's option,
15and shall contain such terms and provisions as the Division
16Board deems necessary to protect or enhance the credibility
17and integrity of State gambling operations, achieve the
18highest prospective total revenue to the State, and otherwise
19serve the interests of the citizens of Illinois.
20 (h) Issuance of a managers license shall be subject to an
21open and competitive bidding process. The Division Board may
22select an applicant other than the lowest bidder by price. If
23it does not select the lowest bidder, the Division Board shall
24issue a notice of who the lowest bidder was and a written
25decision as to why another bidder was selected.
26(Source: P.A. 100-391, eff. 8-25-17.)

SB2254- 346 -LRB102 15486 SMS 20849 b
1 (230 ILCS 10/7.5)
2 Sec. 7.5. Competitive bidding. When the Division Board
3determines that (i) it will re-issue an owners license
4pursuant to an open and competitive bidding process, as set
5forth in Section 7.1, (ii) it will issue a managers license
6pursuant to an open and competitive bidding process, as set
7forth in Section 7.4, or (iii) it will issue an owners license
8pursuant to an open and competitive bidding process, as set
9forth in Section 7.12, the open and competitive bidding
10process shall adhere to the following procedures:
11 (1) The Division Board shall make applications for
12 owners and managers licenses available to the public and
13 allow a reasonable time for applicants to submit
14 applications to the Division Board.
15 (2) During the filing period for owners or managers
16 license applications, the Division Board may retain the
17 services of an investment banking firm to assist the
18 Division Board in conducting the open and competitive
19 bidding process.
20 (3) After receiving all of the bid proposals, the
21 Division Board shall open all of the proposals in a public
22 forum and disclose the prospective owners or managers
23 names, venture partners, if any, and, in the case of
24 applicants for owners licenses, the locations of the
25 proposed development sites.

SB2254- 347 -LRB102 15486 SMS 20849 b
1 (4) The Division Board shall summarize the terms of
2 the proposals and may make this summary available to the
3 public.
4 (5) The Division Board shall evaluate the proposals
5 within a reasonable time and select no more than 3 final
6 applicants to make presentations of their proposals to the
7 Division Board.
8 (6) The final applicants shall make their
9 presentations to the Division Board on the same day during
10 an open session of the Division Board.
11 (7) As soon as practicable after the public
12 presentations by the final applicants, the Division Board,
13 in its discretion, may conduct further negotiations among
14 the 3 final applicants. During such negotiations, each
15 final applicant may increase its license bid or otherwise
16 enhance its bid proposal. At the conclusion of such
17 negotiations, the Division Board shall select the winning
18 proposal. In the case of negotiations for an owners
19 license, the Division Board may, at the conclusion of such
20 negotiations, make the determination allowed under Section
21 7.3(a).
22 (8) Upon selection of a winning bid, the Division
23 Board shall evaluate the winning bid within a reasonable
24 period of time for licensee suitability in accordance with
25 all applicable statutory and regulatory criteria.
26 (9) If the winning bidder is unable or otherwise fails

SB2254- 348 -LRB102 15486 SMS 20849 b
1 to consummate the transaction, (including if the Division
2 Board determines that the winning bidder does not satisfy
3 the suitability requirements), the Division Board may, on
4 the same criteria, select from the remaining bidders or
5 make the determination allowed under Section 7.3(a).
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 10/7.6)
8 Sec. 7.6. Business enterprise program.
9 (a) For the purposes of this Section, the terms
10"minority", "minority-owned business", "woman", "women-owned
11business", "person with a disability", and "business owned by
12a person with a disability" have the meanings ascribed to them
13in the Business Enterprise for Minorities, Women, and Persons
14with Disabilities Act.
15 (b) The Division Board shall, by rule, establish goals for
16the award of contracts by each owners licensee to businesses
17owned by minorities, women, and persons with disabilities,
18expressed as percentages of an owners licensee's total dollar
19amount of contracts awarded during each calendar year. Each
20owners licensee must make every effort to meet the goals
21established by the Division Board pursuant to this Section.
22When setting the goals for the award of contracts, the
23Division Board shall not include contracts where: (1) any
24purchasing mandates would be dependent upon the availability
25of minority-owned businesses, women-owned businesses, and

SB2254- 349 -LRB102 15486 SMS 20849 b
1businesses owned by persons with disabilities ready, willing,
2and able with capacity to provide quality goods and services
3to a gaming operation at reasonable prices; (2) there are no or
4a limited number of licensed suppliers as defined by this Act
5for the goods or services provided to the licensee; (3) the
6licensee or its parent company owns a company that provides
7the goods or services; or (4) the goods or services are
8provided to the licensee by a publicly traded company.
9 (c) Each owners licensee shall file with the Division
10Board an annual report of its utilization of minority-owned
11businesses, women-owned businesses, and businesses owned by
12persons with disabilities during the preceding calendar year.
13The reports shall include a self-evaluation of the efforts of
14the owners licensee to meet its goals under this Section.
15 (c-5) The Division Board shall, by rule, establish goals
16for the award of contracts by each owners licensee to
17businesses owned by veterans of service in the armed forces of
18the United States, expressed as percentages of an owners
19licensee's total dollar amount of contracts awarded during
20each calendar year. When setting the goals for the award of
21contracts, the Division Board shall not include contracts
22where: (1) any purchasing mandates would be dependent upon the
23availability of veteran-owned businesses ready, willing, and
24able with capacity to provide quality goods and services to a
25gaming operation at reasonable prices; (2) there are no or a
26limited number of licensed suppliers as defined in this Act

SB2254- 350 -LRB102 15486 SMS 20849 b
1for the goods or services provided to the licensee; (3) the
2licensee or its parent company owns a company that provides
3the goods or services; or (4) the goods or services are
4provided to the licensee by a publicly traded company.
5 Each owners licensee shall file with the Division Board an
6annual report of its utilization of veteran-owned businesses
7during the preceding calendar year. The reports shall include
8a self-evaluation of the efforts of the owners licensee to
9meet its goals under this Section.
10 (d) The owners licensee shall have the right to request a
11waiver from the requirements of this Section. The Division
12Board shall grant the waiver where the owners licensee
13demonstrates that there has been made a good faith effort to
14comply with the goals for participation by minority-owned
15businesses, women-owned businesses, businesses owned by
16persons with disabilities, and veteran-owned businesses.
17 (e) If the Division Board determines that its goals and
18policies are not being met by any owners licensee, then the
19Division Board may:
20 (1) adopt remedies for such violations; and
21 (2) recommend that the owners licensee provide
22 additional opportunities for participation by
23 minority-owned businesses, women-owned businesses,
24 businesses owned by persons with disabilities, and
25 veteran-owned businesses; such recommendations may
26 include, but shall not be limited to:

SB2254- 351 -LRB102 15486 SMS 20849 b
1 (A) assurances of stronger and better focused
2 solicitation efforts to obtain more minority-owned
3 businesses, women-owned businesses, businesses owned
4 by persons with disabilities, and veteran-owned
5 businesses as potential sources of supply;
6 (B) division of job or project requirements, when
7 economically feasible, into tasks or quantities to
8 permit participation of minority-owned businesses,
9 women-owned businesses, businesses owned by persons
10 with disabilities, and veteran-owned businesses;
11 (C) elimination of extended experience or
12 capitalization requirements, when programmatically
13 feasible, to permit participation of minority-owned
14 businesses, women-owned businesses, businesses owned
15 by persons with disabilities, and veteran-owned
16 businesses;
17 (D) identification of specific proposed contracts
18 as particularly attractive or appropriate for
19 participation by minority-owned businesses,
20 women-owned businesses, businesses owned by persons
21 with disabilities, and veteran-owned businesses, such
22 identification to result from and be coupled with the
23 efforts of items (A) through (C); and
24 (E) implementation of regulations established for
25 the use of the sheltered market process.
26 (f) The Division Board shall file, no later than March 1 of

SB2254- 352 -LRB102 15486 SMS 20849 b
1each year, an annual report that shall detail the level of
2achievement toward the goals specified in this Section over
3the 3 most recent fiscal years. The annual report shall
4include, but need not be limited to:
5 (1) a summary detailing expenditures subject to the
6 goals, the actual goals specified, and the goals attained
7 by each owners licensee; and
8 (2) an analysis of the level of overall goal
9 achievement concerning purchases from minority-owned
10 businesses, women-owned businesses, businesses owned by
11 persons with disabilities, and veteran-owned businesses.
12(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17;
13100-1152, eff. 12-14-18.)
14 (230 ILCS 10/7.7)
15 Sec. 7.7. Organization gaming licenses.
16 (a) The Division Illinois Gaming Board shall award one
17organization gaming license to each person or entity having
18operating control of a racetrack that applies under Section 56
19of the Illinois Horse Racing Act of 1975, subject to the
20application and eligibility requirements of this Section.
21Within 60 days after the effective date of this amendatory Act
22of the 101st General Assembly, a person or entity having
23operating control of a racetrack may submit an application for
24an organization gaming license. The application shall be made
25on such forms as provided by the Division Board and shall

SB2254- 353 -LRB102 15486 SMS 20849 b
1contain such information as the Division Board prescribes,
2including, but not limited to, the identity of any racetrack
3at which gaming will be conducted pursuant to an organization
4gaming license, detailed information regarding the ownership
5and management of the applicant, and detailed personal
6information regarding the applicant. The application shall
7specify the number of gaming positions the applicant intends
8to use and the place where the organization gaming facility
9will operate. A person who knowingly makes a false statement
10on an application is guilty of a Class A misdemeanor.
11 Each applicant shall disclose the identity of every person
12or entity having a direct or indirect pecuniary interest
13greater than 1% in any racetrack with respect to which the
14license is sought. If the disclosed entity is a corporation,
15the applicant shall disclose the names and addresses of all
16officers, stockholders, and directors. If the disclosed entity
17is a limited liability company, the applicant shall disclose
18the names and addresses of all members and managers. If the
19disclosed entity is a partnership, the applicant shall
20disclose the names and addresses of all partners, both general
21and limited. If the disclosed entity is a trust, the applicant
22shall disclose the names and addresses of all beneficiaries.
23 An application shall be filed and considered in accordance
24with the rules of the Division Board. Each application for an
25organization gaming license shall include a nonrefundable
26application fee of $250,000. In addition, a nonrefundable fee

SB2254- 354 -LRB102 15486 SMS 20849 b
1of $50,000 shall be paid at the time of filing to defray the
2costs associated with background investigations conducted by
3the Division Board. If the costs of the background
4investigation exceed $50,000, the applicant shall pay the
5additional amount to the Division Board within 7 days after a
6request by the Division Board. If the costs of the
7investigation are less than $50,000, the applicant shall
8receive a refund of the remaining amount. All information,
9records, interviews, reports, statements, memoranda, or other
10data supplied to or used by the Division Board in the course of
11this review or investigation of an applicant for an
12organization gaming license under this Act shall be privileged
13and strictly confidential and shall be used only for the
14purpose of evaluating an applicant for an organization gaming
15license or a renewal. Such information, records, interviews,
16reports, statements, memoranda, or other data shall not be
17admissible as evidence nor discoverable in any action of any
18kind in any court or before any tribunal, board, agency or
19person, except for any action deemed necessary by the Division
20Board. The application fee shall be deposited into the State
21Gaming Fund.
22 Any applicant or key person, including the applicant's
23owners, officers, directors (if a corporation), managers and
24members (if a limited liability company), and partners (if a
25partnership), for an organization gaming license shall have
26his or her fingerprints submitted to the Department of State

SB2254- 355 -LRB102 15486 SMS 20849 b
1Police in an electronic format that complies with the form and
2manner for requesting and furnishing criminal history record
3information as prescribed by the Department of State Police.
4These fingerprints shall be checked against the Department of
5State Police and Federal Bureau of Investigation criminal
6history record databases now and hereafter filed, including,
7but not limited to, civil, criminal, and latent fingerprint
8databases. The Department of State Police shall charge
9applicants a fee for conducting the criminal history records
10check, which shall be deposited into the State Police Services
11Fund and shall not exceed the actual cost of the records check.
12The Department of State Police shall furnish, pursuant to
13positive identification, records of Illinois criminal history
14to the Department.
15 (b) The Division Board shall determine within 120 days
16after receiving an application for an organization gaming
17license whether to grant an organization gaming license to the
18applicant. If the Division Board does not make a determination
19within that time period, then the Division Board shall give a
20written explanation to the applicant as to why it has not
21reached a determination and when it reasonably expects to make
22a determination.
23 The organization gaming licensee shall purchase up to the
24amount of gaming positions authorized under this Act within
25120 days after receiving its organization gaming license. If
26an organization gaming licensee is prepared to purchase the

SB2254- 356 -LRB102 15486 SMS 20849 b
1gaming positions, but is temporarily prohibited from doing so
2by order of a court of competent jurisdiction or the Division
3Board, then the 120-day period is tolled until a resolution is
4reached.
5 An organization gaming license shall authorize its holder
6to conduct gaming under this Act at its racetracks on the same
7days of the year and hours of the day that owners licenses are
8allowed to operate under approval of the Division Board.
9 An organization gaming license and any renewal of an
10organization gaming license shall authorize gaming pursuant to
11this Section for a period of 4 years. The fee for the issuance
12or renewal of an organization gaming license shall be
13$250,000.
14 All payments by licensees under this subsection (b) shall
15be deposited into the Rebuild Illinois Projects Fund.
16 (c) To be eligible to conduct gaming under this Section, a
17person or entity having operating control of a racetrack must
18(i) obtain an organization gaming license, (ii) hold an
19organization license under the Illinois Horse Racing Act of
201975, (iii) hold an inter-track wagering license, (iv) pay an
21initial fee of $30,000 per gaming position from organization
22gaming licensees where gaming is conducted in Cook County and,
23except as provided in subsection (c-5), $17,500 for
24organization gaming licensees where gaming is conducted
25outside of Cook County before beginning to conduct gaming plus
26make the reconciliation payment required under subsection (k),

SB2254- 357 -LRB102 15486 SMS 20849 b
1(v) conduct live racing in accordance with subsections (e-1),
2(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
3of 1975, (vi) meet the requirements of subsection (a) of
4Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
5organization licensees conducting standardbred race meetings,
6keep backstretch barns and dormitories open and operational
7year-round unless a lesser schedule is mutually agreed to by
8the organization licensee and the horsemen association racing
9at that organization licensee's race meeting, (viii) for
10organization licensees conducting thoroughbred race meetings,
11the organization licensee must maintain accident medical
12expense liability insurance coverage of $1,000,000 for
13jockeys, and (ix) meet all other requirements of this Act that
14apply to owners licensees.
15 An organization gaming licensee may enter into a joint
16venture with a licensed owner to own, manage, conduct, or
17otherwise operate the organization gaming licensee's
18organization gaming facilities, unless the organization gaming
19licensee has a parent company or other affiliated company that
20is, directly or indirectly, wholly owned by a parent company
21that is also licensed to conduct organization gaming, casino
22gaming, or their equivalent in another state.
23 All payments by licensees under this subsection (c) shall
24be deposited into the Rebuild Illinois Projects Fund.
25 (c-5) A person or entity having operating control of a
26racetrack located in Madison County shall only pay the initial

SB2254- 358 -LRB102 15486 SMS 20849 b
1fees specified in subsection (c) for 540 of the gaming
2positions authorized under the license.
3 (d) A person or entity is ineligible to receive an
4organization gaming license if:
5 (1) the person or entity has been convicted of a
6 felony under the laws of this State, any other state, or
7 the United States, including a conviction under the
8 Racketeer Influenced and Corrupt Organizations Act;
9 (2) the person or entity has been convicted of any
10 violation of Article 28 of the Criminal Code of 2012, or
11 substantially similar laws of any other jurisdiction;
12 (3) the person or entity has submitted an application
13 for a license under this Act that contains false
14 information;
15 (4) (blank) the person is a member of the Board;
16 (5) a person defined in (1), (2), (3), or (4) of this
17 subsection (d) is an officer, director, or managerial
18 employee of the entity;
19 (6) the person or entity employs a person defined in
20 (1), (2), (3), or (4) of this subsection (d) who
21 participates in the management or operation of gambling
22 operations authorized under this Act; or
23 (7) a license of the person or entity issued under
24 this Act or a license to own or operate gambling
25 facilities in any other jurisdiction has been revoked.
26 (e) The Division Board may approve gaming positions

SB2254- 359 -LRB102 15486 SMS 20849 b
1pursuant to an organization gaming license statewide as
2provided in this Section. The authority to operate gaming
3positions under this Section shall be allocated as follows: up
4to 1,200 gaming positions for any organization gaming licensee
5in Cook County and up to 900 gaming positions for any
6organization gaming licensee outside of Cook County.
7 (f) Each applicant for an organization gaming license
8shall specify in its application for licensure the number of
9gaming positions it will operate, up to the applicable
10limitation set forth in subsection (e) of this Section. Any
11unreserved gaming positions that are not specified shall be
12forfeited and retained by the Division Board. For the purposes
13of this subsection (f), an organization gaming licensee that
14did not conduct live racing in 2010 and is located within 3
15miles of the Mississippi River may reserve up to 900 positions
16and shall not be penalized under this Section for not
17operating those positions until it meets the requirements of
18subsection (e) of this Section, but such licensee shall not
19request unreserved gaming positions under this subsection (f)
20until its 900 positions are all operational.
21 Thereafter, the Division Board shall publish the number of
22unreserved gaming positions and shall accept requests for
23additional positions from any organization gaming licensee
24that initially reserved all of the positions that were
25offered. The Division Board shall allocate expeditiously the
26unreserved gaming positions to requesting organization gaming

SB2254- 360 -LRB102 15486 SMS 20849 b
1licensees in a manner that maximizes revenue to the State. The
2Division Board may allocate any such unused gaming positions
3pursuant to an open and competitive bidding process, as
4provided under Section 7.5 of this Act. This process shall
5continue until all unreserved gaming positions have been
6purchased. All positions obtained pursuant to this process and
7all positions the organization gaming licensee specified it
8would operate in its application must be in operation within
918 months after they were obtained or the organization gaming
10licensee forfeits the right to operate those positions, but is
11not entitled to a refund of any fees paid. The Division Board
12may, after holding a public hearing, grant extensions so long
13as the organization gaming licensee is working in good faith
14to make the positions operational. The extension may be for a
15period of 6 months. If, after the period of the extension, the
16organization gaming licensee has not made the positions
17operational, then another public hearing must be held by the
18Division Board before it may grant another extension.
19 Unreserved gaming positions retained from and allocated to
20organization gaming licensees by the Division Board pursuant
21to this subsection (f) shall not be allocated to owners
22licensees under this Act.
23 For the purpose of this subsection (f), the unreserved
24gaming positions for each organization gaming licensee shall
25be the applicable limitation set forth in subsection (e) of
26this Section, less the number of reserved gaming positions by

SB2254- 361 -LRB102 15486 SMS 20849 b
1such organization gaming licensee, and the total unreserved
2gaming positions shall be the aggregate of the unreserved
3gaming positions for all organization gaming licensees.
4 (g) An organization gaming licensee is authorized to
5conduct the following at a racetrack:
6 (1) slot machine gambling;
7 (2) video game of chance gambling;
8 (3) gambling with electronic gambling games as defined
9 in this Act or defined by the Division Illinois Gaming
10 Board; and
11 (4) table games.
12 (h) Subject to the approval of the Division Illinois
13Gaming Board, an organization gaming licensee may make
14modification or additions to any existing buildings and
15structures to comply with the requirements of this Act. The
16Division Illinois Gaming Board shall make its decision after
17consulting with the Division of Horse Racing Illinois Racing
18Board. In no case, however, shall the Division Illinois Gaming
19Board approve any modification or addition that alters the
20grounds of the organization licensee such that the act of live
21racing is an ancillary activity to gaming authorized under
22this Section. Gaming authorized under this Section may take
23place in existing structures where inter-track wagering is
24conducted at the racetrack or a facility within 300 yards of
25the racetrack in accordance with the provisions of this Act
26and the Illinois Horse Racing Act of 1975.

SB2254- 362 -LRB102 15486 SMS 20849 b
1 (i) An organization gaming licensee may conduct gaming at
2a temporary facility pending the construction of a permanent
3facility or the remodeling or relocation of an existing
4facility to accommodate gaming participants for up to 24
5months after the temporary facility begins to conduct gaming
6authorized under this Section. Upon request by an organization
7gaming licensee and upon a showing of good cause by the
8organization gaming licensee, the Division Board shall extend
9the period during which the licensee may conduct gaming
10authorized under this Section at a temporary facility by up to
1112 months. The Division Board shall make rules concerning the
12conduct of gaming authorized under this Section from temporary
13facilities.
14 The gaming authorized under this Section may take place in
15existing structures where inter-track wagering is conducted at
16the racetrack or a facility within 300 yards of the racetrack
17in accordance with the provisions of this Act and the Illinois
18Horse Racing Act of 1975.
19 (i-5) Under no circumstances shall an organization gaming
20licensee conduct gaming at any State or county fair.
21 (j) The Division Illinois Gaming Board must adopt
22emergency rules in accordance with Section 5-45 of the
23Illinois Administrative Procedure Act as necessary to ensure
24compliance with the provisions of this amendatory Act of the
25101st General Assembly concerning the conduct of gaming by an
26organization gaming licensee. The adoption of emergency rules

SB2254- 363 -LRB102 15486 SMS 20849 b
1authorized by this subsection (j) shall be deemed to be
2necessary for the public interest, safety, and welfare.
3 (k) Each organization gaming licensee who obtains gaming
4positions must make a reconciliation payment 3 years after the
5date the organization gaming licensee begins operating the
6positions in an amount equal to 75% of the difference between
7its adjusted gross receipts from gaming authorized under this
8Section and amounts paid to its purse accounts pursuant to
9item (1) of subsection (b) of Section 56 of the Illinois Horse
10Racing Act of 1975 for the 12-month period for which such
11difference was the largest, minus an amount equal to the
12initial per position fee paid by the organization gaming
13licensee. If this calculation results in a negative amount,
14then the organization gaming licensee is not entitled to any
15reimbursement of fees previously paid. This reconciliation
16payment may be made in installments over a period of no more
17than 6 years.
18 All payments by licensees under this subsection (k) shall
19be deposited into the Rebuild Illinois Projects Fund.
20 (l) As soon as practical after a request is made by the
21Division Illinois Gaming Board, to minimize duplicate
22submissions by the applicant, the Division of Horse Racing
23Illinois Racing Board must provide information on an applicant
24for an organization gaming license to the Division Illinois
25Gaming Board.
26(Source: P.A. 101-31, eff. 6-28-19; 101-597, eff. 12-6-19;

SB2254- 364 -LRB102 15486 SMS 20849 b
1101-648, eff. 6-30-20.)
2 (230 ILCS 10/7.10)
3 Sec. 7.10. Diversity program.
4 (a) Each owners licensee, organization gaming licensee,
5and suppliers licensee shall establish and maintain a
6diversity program to ensure non-discrimination in the award
7and administration of contracts. The programs shall establish
8goals of awarding not less than 25% of the annual dollar value
9of all contracts, purchase orders, or other agreements to
10minority-owned businesses and 5% of the annual dollar value of
11all contracts to women-owned businesses.
12 (b) Each owners licensee, organization gaming licensee,
13and suppliers licensee shall establish and maintain a
14diversity program designed to promote equal opportunity for
15employment. The program shall establish hiring goals as the
16Division Board and each licensee determines appropriate. The
17Division Board shall monitor the progress of the gaming
18licensee's progress with respect to the program's goals.
19 (c) No later than May 31 of each year, each licensee shall
20report to the Division Board (1) the number of respective
21employees and the number of its respective employees who have
22designated themselves as members of a minority group and
23gender and (2) the total goals achieved under subsection (a)
24of this Section as a percentage of the total contracts awarded
25by the license. In addition, all licensees shall submit a

SB2254- 365 -LRB102 15486 SMS 20849 b
1report with respect to the minority-owned and women-owned
2businesses program created in this Section to the Division
3Board.
4 (d) When considering whether to re-issue or renew a
5license to an owners licensee, organization gaming licensee,
6or suppliers licensee, the Division Board shall take into
7account the licensee's success in complying with the
8provisions of this Section. If an owners licensee,
9organization gaming licensee, or suppliers licensee has not
10satisfied the goals contained in this Section, the Division
11Board shall require a written explanation as to why the
12licensee is not in compliance and shall require the licensee
13to file multi-year metrics designed to achieve compliance with
14the provisions by the next renewal period, consistent with
15State and federal law.
16(Source: P.A. 101-31, eff. 6-28-19.)
17 (230 ILCS 10/7.11)
18 Sec. 7.11. Annual report on diversity.
19 (a) Each licensee that receives a license under Sections
207, 7.1, and 7.7 shall execute and file a report with the
21Division Board no later than December 31 of each year that
22shall contain, but not be limited to, the following
23information:
24 (i) a good faith affirmative action plan to recruit,
25 train, and upgrade minority persons, women, and persons

SB2254- 366 -LRB102 15486 SMS 20849 b
1 with a disability in all employment classifications;
2 (ii) the total dollar amount of contracts that were
3 awarded to businesses owned by minority persons, women,
4 and persons with a disability;
5 (iii) the total number of businesses owned by minority
6 persons, women, and persons with a disability that were
7 utilized by the licensee;
8 (iv) the utilization of businesses owned by minority
9 persons, women, and persons with disabilities during the
10 preceding year; and
11 (v) the outreach efforts used by the licensee to
12 attract investors and businesses consisting of minority
13 persons, women, and persons with a disability.
14 (b) The Division Board shall forward a copy of each
15licensee's annual reports to the General Assembly no later
16than February 1 of each year. The reports to the General
17Assembly shall be filed with the Clerk of the House of
18Representatives and the Secretary of the Senate in electronic
19form only, in the manner that the Clerk and the Secretary shall
20direct.
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 10/7.12)
23 Sec. 7.12. Issuance of new owners licenses.
24 (a) Owners licenses newly authorized pursuant to this
25amendatory Act of the 101st General Assembly may be issued by

SB2254- 367 -LRB102 15486 SMS 20849 b
1the Division Board to a qualified applicant pursuant to an
2open and competitive bidding process, as set forth in Section
37.5, and subject to the maximum number of authorized licenses
4set forth in subsection (e-5) of Section 7 of this Act.
5 (b) To be a qualified applicant, a person or entity may not
6be ineligible to receive an owners license under subsection
7(a) of Section 7 of this Act and must submit an application for
8an owners license that complies with Section 6 of this Act.
9 (c) In determining whether to grant an owners license to
10an applicant, the Division Board shall consider all of the
11factors set forth in subsections (b) and (e-10) of Section 7 of
12this Act, as well as the amount of the applicant's license bid.
13The Division Board may grant the owners license to an
14applicant that has not submitted the highest license bid, but
15if it does not select the highest bidder, the Division Board
16shall issue a written decision explaining why another
17applicant was selected and identifying the factors set forth
18in subsections (b) and (e-10) of Section 7 of this Act that
19favored the winning bidder.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 10/8) (from Ch. 120, par. 2408)
22 Sec. 8. Suppliers licenses.
23 (a) The Division Board may issue a suppliers license to
24such persons, firms or corporations which apply therefor upon
25the payment of a non-refundable application fee set by the

SB2254- 368 -LRB102 15486 SMS 20849 b
1Division Board, upon a determination by the Division Board
2that the applicant is eligible for a suppliers license and
3upon payment of a $5,000 annual license fee.
4 (b) The holder of a suppliers license is authorized to
5sell or lease, and to contract to sell or lease, gambling
6equipment and supplies to any licensee involved in the
7ownership or management of gambling operations.
8 (c) Gambling supplies and equipment may not be distributed
9unless supplies and equipment conform to standards adopted by
10rules of the Division Board.
11 (d) A person, firm or corporation is ineligible to receive
12a suppliers license if:
13 (1) the person has been convicted of a felony under
14 the laws of this State, any other state, or the United
15 States;
16 (2) the person has been convicted of any violation of
17 Article 28 of the Criminal Code of 1961 or the Criminal
18 Code of 2012, or substantially similar laws of any other
19 jurisdiction;
20 (3) the person has submitted an application for a
21 license under this Act which contains false information;
22 (4) (blank) the person is a member of the Board;
23 (5) the entity is one in which a person defined in (1),
24 (2), (3) or (4), is an officer, director or managerial
25 employee;
26 (6) the firm or corporation employs a person who

SB2254- 369 -LRB102 15486 SMS 20849 b
1 participates in the management or operation of gambling
2 authorized under this Act;
3 (7) the license of the person, firm or corporation
4 issued under this Act, or a license to own or operate
5 gambling facilities in any other jurisdiction, has been
6 revoked.
7 (e) Any person that supplies any equipment, devices, or
8supplies to a licensed gambling operation must first obtain a
9suppliers license. A supplier shall furnish to the Division
10Board a list of all equipment, devices and supplies offered
11for sale or lease in connection with gambling games authorized
12under this Act. A supplier shall keep books and records for the
13furnishing of equipment, devices and supplies to gambling
14operations separate and distinct from any other business that
15the supplier might operate. A supplier shall file a quarterly
16return with the Division Board listing all sales and leases. A
17supplier shall permanently affix its name or a distinctive
18logo or other mark or design element identifying the
19manufacturer or supplier to all its equipment, devices, and
20supplies, except gaming chips without a value impressed,
21engraved, or imprinted on it, for gambling operations. The
22Division Board may waive this requirement for any specific
23product or products if it determines that the requirement is
24not necessary to protect the integrity of the game. Items
25purchased from a licensed supplier may continue to be used
26even though the supplier subsequently changes its name,

SB2254- 370 -LRB102 15486 SMS 20849 b
1distinctive logo, or other mark or design element; undergoes a
2change in ownership; or ceases to be licensed as a supplier for
3any reason. Any supplier's equipment, devices or supplies
4which are used by any person in an unauthorized gambling
5operation shall be forfeited to the State. A holder of an
6owners license or an organization gaming license may own its
7own equipment, devices and supplies. Each holder of an owners
8license or an organization gaming license under the Act shall
9file an annual report listing its inventories of gambling
10equipment, devices and supplies.
11 (f) Any person who knowingly makes a false statement on an
12application is guilty of a Class A misdemeanor.
13 (g) Any gambling equipment, devices and supplies provided
14by any licensed supplier may either be repaired on the
15riverboat, in the casino, or at the organization gaming
16facility or removed from the riverboat, casino, or
17organization gaming facility to a facility owned by the holder
18of an owners license, organization gaming license, or
19suppliers license for repair.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 10/9) (from Ch. 120, par. 2409)
22 Sec. 9. Occupational licenses.
23 (a) The Division Board may issue an occupational license
24to an applicant upon the payment of a non-refundable fee set by
25the Division Board, upon a determination by the Division Board

SB2254- 371 -LRB102 15486 SMS 20849 b
1that the applicant is eligible for an occupational license and
2upon payment of an annual license fee in an amount to be
3established. To be eligible for an occupational license, an
4applicant must:
5 (1) be at least 21 years of age if the applicant will
6 perform any function involved in gaming by patrons. Any
7 applicant seeking an occupational license for a non-gaming
8 function shall be at least 18 years of age;
9 (2) not have been convicted of a felony offense, a
10 violation of Article 28 of the Criminal Code of 1961 or the
11 Criminal Code of 2012, or a similar statute of any other
12 jurisdiction;
13 (2.5) not have been convicted of a crime, other than a
14 crime described in item (2) of this subsection (a),
15 involving dishonesty or moral turpitude, except that the
16 Division Board may, in its discretion, issue an
17 occupational license to a person who has been convicted of
18 a crime described in this item (2.5) more than 10 years
19 prior to his or her application and has not subsequently
20 been convicted of any other crime;
21 (3) have demonstrated a level of skill or knowledge
22 which the Division Board determines to be necessary in
23 order to operate gambling aboard a riverboat, in a casino,
24 or at an organization gaming facility; and
25 (4) have met standards for the holding of an
26 occupational license as adopted by rules of the Division

SB2254- 372 -LRB102 15486 SMS 20849 b
1 Board. Such rules shall provide that any person or entity
2 seeking an occupational license to manage gambling
3 operations under this Act shall be subject to background
4 inquiries and further requirements similar to those
5 required of applicants for an owners license. Furthermore,
6 such rules shall provide that each such entity shall be
7 permitted to manage gambling operations for only one
8 licensed owner.
9 (b) Each application for an occupational license shall be
10on forms prescribed by the Division Board and shall contain
11all information required by the Division Board. The applicant
12shall set forth in the application: whether he has been issued
13prior gambling related licenses; whether he has been licensed
14in any other state under any other name, and, if so, such name
15and his age; and whether or not a permit or license issued to
16him in any other state has been suspended, restricted or
17revoked, and, if so, for what period of time.
18 (c) Each applicant shall submit with his application, on
19forms provided by the Division Board, 2 sets of his
20fingerprints. The Division Board shall charge each applicant a
21fee set by the Department of State Police to defray the costs
22associated with the search and classification of fingerprints
23obtained by the Division Board with respect to the applicant's
24application. These fees shall be paid into the State Police
25Services Fund.
26 (d) The Division Board may in its discretion refuse an

SB2254- 373 -LRB102 15486 SMS 20849 b
1occupational license to any person: (1) who is unqualified to
2perform the duties required of such applicant; (2) who fails
3to disclose or states falsely any information called for in
4the application; (3) who has been found guilty of a violation
5of this Act or whose prior gambling related license or
6application therefor has been suspended, restricted, revoked
7or denied for just cause in any other state; or (4) for any
8other just cause.
9 (e) The Division Board may suspend, revoke or restrict any
10occupational licensee: (1) for violation of any provision of
11this Act; (2) for violation of any of the rules and regulations
12of the Division Board; (3) for any cause which, if known to the
13Division Board, would have disqualified the applicant from
14receiving such license; or (4) for default in the payment of
15any obligation or debt due to the State of Illinois; or (5) for
16any other just cause.
17 (f) A person who knowingly makes a false statement on an
18application is guilty of a Class A misdemeanor.
19 (g) Any license issued pursuant to this Section shall be
20valid for a period of one year from the date of issuance.
21 (h) Nothing in this Act shall be interpreted to prohibit a
22licensed owner or organization gaming licensee from entering
23into an agreement with a public community college or a school
24approved under the Private Business and Vocational Schools Act
25of 2012 for the training of any occupational licensee. Any
26training offered by such a school shall be in accordance with a

SB2254- 374 -LRB102 15486 SMS 20849 b
1written agreement between the licensed owner or organization
2gaming licensee and the school.
3 (i) Any training provided for occupational licensees may
4be conducted either at the site of the gambling facility or at
5a school with which a licensed owner or organization gaming
6licensee has entered into an agreement pursuant to subsection
7(h).
8(Source: P.A. 101-31, eff. 6-28-19.)
9 (230 ILCS 10/10) (from Ch. 120, par. 2410)
10 Sec. 10. Bond of licensee. Before an owners license is
11issued or re-issued or a managers license is issued, the
12licensee shall post a bond in the sum of $200,000 to the State
13of Illinois. The bond shall be used to guarantee that the
14licensee faithfully makes the payments, keeps his books and
15records and makes reports, and conducts his games of chance in
16conformity with this Act and the rules adopted by the Division
17Board. The bond shall not be canceled by a surety on less than
1830 days notice in writing to the Division Board. If a bond is
19canceled and the licensee fails to file a new bond with the
20Division Board in the required amount on or before the
21effective date of cancellation, the licensee's license shall
22be revoked. The total and aggregate liability of the surety on
23the bond is limited to the amount specified in the bond.
24(Source: P.A. 93-28, eff. 6-20-03.)

SB2254- 375 -LRB102 15486 SMS 20849 b
1 (230 ILCS 10/11) (from Ch. 120, par. 2411)
2 Sec. 11. Conduct of gambling. Gambling may be conducted by
3licensed owners or licensed managers on behalf of the State
4aboard riverboats. Gambling may be conducted by organization
5gaming licensees at organization gaming facilities. Gambling
6authorized under this Section is subject to the following
7standards:
8 (1) A licensee may conduct riverboat gambling
9 authorized under this Act regardless of whether it
10 conducts excursion cruises. A licensee may permit the
11 continuous ingress and egress of patrons on a riverboat
12 not used for excursion cruises for the purpose of
13 gambling. Excursion cruises shall not exceed 4 hours for a
14 round trip. However, the Division Board may grant express
15 approval for an extended cruise on a case-by-case basis.
16 (1.5) An owners licensee may conduct gambling
17 operations authorized under this Act 24 hours a day.
18 (2) (Blank).
19 (3) Minimum and maximum wagers on games shall be set
20 by the licensee.
21 (4) Agents of the Division Board and the Department of
22 State Police may board and inspect any riverboat, enter
23 and inspect any portion of a casino, or enter and inspect
24 any portion of an organization gaming facility at any time
25 for the purpose of determining whether this Act is being
26 complied with. Every riverboat, if under way and being

SB2254- 376 -LRB102 15486 SMS 20849 b
1 hailed by a law enforcement officer or agent of the
2 Division Board, must stop immediately and lay to.
3 (5) Employees of the Division Board shall have the
4 right to be present on the riverboat or in the casino or on
5 adjacent facilities under the control of the licensee and
6 at the organization gaming facility under the control of
7 the organization gaming licensee.
8 (6) Gambling equipment and supplies customarily used
9 in conducting gambling must be purchased or leased only
10 from suppliers licensed for such purpose under this Act.
11 The Division Board may approve the transfer, sale, or
12 lease of gambling equipment and supplies by a licensed
13 owner from or to an affiliate of the licensed owner as long
14 as the gambling equipment and supplies were initially
15 acquired from a supplier licensed in Illinois.
16 (7) Persons licensed under this Act shall permit no
17 form of wagering on gambling games except as permitted by
18 this Act.
19 (8) Wagers may be received only from a person present
20 on a licensed riverboat, in a casino, or at an
21 organization gaming facility. No person present on a
22 licensed riverboat, in a casino, or at an organization
23 gaming facility shall place or attempt to place a wager on
24 behalf of another person who is not present on the
25 riverboat, in a casino, or at the organization gaming
26 facility.

SB2254- 377 -LRB102 15486 SMS 20849 b
1 (9) Wagering, including gaming authorized under
2 Section 7.7, shall not be conducted with money or other
3 negotiable currency.
4 (10) A person under age 21 shall not be permitted on an
5 area of a riverboat or casino where gambling is being
6 conducted or at an organization gaming facility where
7 gambling is being conducted, except for a person at least
8 18 years of age who is an employee of the riverboat or
9 casino gambling operation or gaming operation. No employee
10 under age 21 shall perform any function involved in
11 gambling by the patrons. No person under age 21 shall be
12 permitted to make a wager under this Act, and any winnings
13 that are a result of a wager by a person under age 21,
14 whether or not paid by a licensee, shall be treated as
15 winnings for the privilege tax purposes, confiscated, and
16 forfeited to the State and deposited into the Education
17 Assistance Fund.
18 (11) Gambling excursion cruises are permitted only
19 when the waterway for which the riverboat is licensed is
20 navigable, as determined by the Division Board in
21 consultation with the U.S. Army Corps of Engineers. This
22 paragraph (11) does not limit the ability of a licensee to
23 conduct gambling authorized under this Act when gambling
24 excursion cruises are not permitted.
25 (12) All tickets, chips, or electronic cards used to
26 make wagers must be purchased (i) from a licensed owner or

SB2254- 378 -LRB102 15486 SMS 20849 b
1 manager, in the case of a riverboat, either aboard a
2 riverboat or at an onshore facility which has been
3 approved by the Division Board and which is located where
4 the riverboat docks, (ii) in the case of a casino, from a
5 licensed owner at the casino, or (iii) from an
6 organization gaming licensee at the organization gaming
7 facility. The tickets, chips, or electronic cards may be
8 purchased by means of an agreement under which the owner
9 or manager extends credit to the patron. Such tickets,
10 chips, or electronic cards may be used while aboard the
11 riverboat, in the casino, or at the organization gaming
12 facility only for the purpose of making wagers on gambling
13 games.
14 (13) Notwithstanding any other Section of this Act, in
15 addition to the other licenses authorized under this Act,
16 the Division Board may issue special event licenses
17 allowing persons who are not otherwise licensed to conduct
18 riverboat gambling to conduct such gambling on a specified
19 date or series of dates. Riverboat gambling under such a
20 license may take place on a riverboat not normally used
21 for riverboat gambling. The Division Board shall establish
22 standards, fees and fines for, and limitations upon, such
23 licenses, which may differ from the standards, fees, fines
24 and limitations otherwise applicable under this Act. All
25 such fees shall be deposited into the State Gaming Fund.
26 All such fines shall be deposited into the Education

SB2254- 379 -LRB102 15486 SMS 20849 b
1 Assistance Fund, created by Public Act 86-0018, of the
2 State of Illinois.
3 (14) In addition to the above, gambling must be
4 conducted in accordance with all rules adopted by the
5 Division Board.
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 10/11.2)
8 Sec. 11.2. Relocation of riverboat home dock.
9 (a) A licensee that was not conducting riverboat gambling
10on January 1, 1998 may apply to the Division Board for renewal
11and approval of relocation to a new home dock location
12authorized under Section 3(c) and the Division Board shall
13grant the application and approval upon receipt by the
14licensee of approval from the new municipality or county, as
15the case may be, in which the licensee wishes to relocate
16pursuant to Section 7(j).
17 (b) Any licensee that relocates its home dock pursuant to
18this Section shall attain a level of at least 20% minority
19person and woman ownership, at least 16% and 4% respectively,
20within a time period prescribed by the Division Board, but not
21to exceed 12 months from the date the licensee begins
22conducting gambling at the new home dock location. The
2312-month period shall be extended by the amount of time
24necessary to conduct a background investigation pursuant to
25Section 6. For the purposes of this Section, the terms "woman"

SB2254- 380 -LRB102 15486 SMS 20849 b
1and "minority person" have the meanings provided in Section 2
2of the Business Enterprise for Minorities, Women, and Persons
3with Disabilities Act.
4(Source: P.A. 100-391, eff. 8-25-17.)
5 (230 ILCS 10/12) (from Ch. 120, par. 2412)
6 Sec. 12. Admission tax; fees.
7 (a) A tax is hereby imposed upon admissions to riverboat
8and casino gambling facilities operated by licensed owners
9authorized pursuant to this Act. Until July 1, 2002, the rate
10is $2 per person admitted. From July 1, 2002 until July 1,
112003, the rate is $3 per person admitted. From July 1, 2003
12until August 23, 2005 (the effective date of Public Act
1394-673), for a licensee that admitted 1,000,000 persons or
14fewer in the previous calendar year, the rate is $3 per person
15admitted; for a licensee that admitted more than 1,000,000 but
16no more than 2,300,000 persons in the previous calendar year,
17the rate is $4 per person admitted; and for a licensee that
18admitted more than 2,300,000 persons in the previous calendar
19year, the rate is $5 per person admitted. Beginning on August
2023, 2005 (the effective date of Public Act 94-673), for a
21licensee that admitted 1,000,000 persons or fewer in calendar
22year 2004, the rate is $2 per person admitted, and for all
23other licensees, including licensees that were not conducting
24gambling operations in 2004, the rate is $3 per person
25admitted. This admission tax is imposed upon the licensed

SB2254- 381 -LRB102 15486 SMS 20849 b
1owner conducting gambling.
2 (1) The admission tax shall be paid for each
3 admission, except that a person who exits a riverboat
4 gambling facility and reenters that riverboat gambling
5 facility within the same gaming day shall be subject only
6 to the initial admission tax.
7 (2) (Blank).
8 (3) The riverboat licensee may issue tax-free passes
9 to actual and necessary officials and employees of the
10 licensee or other persons actually working on the
11 riverboat.
12 (4) The number and issuance of tax-free passes is
13 subject to the rules of the Division Board, and a list of
14 all persons to whom the tax-free passes are issued shall
15 be filed with the Division Board.
16 (a-5) A fee is hereby imposed upon admissions operated by
17licensed managers on behalf of the State pursuant to Section
187.3 at the rates provided in this subsection (a-5). For a
19licensee that admitted 1,000,000 persons or fewer in the
20previous calendar year, the rate is $3 per person admitted;
21for a licensee that admitted more than 1,000,000 but no more
22than 2,300,000 persons in the previous calendar year, the rate
23is $4 per person admitted; and for a licensee that admitted
24more than 2,300,000 persons in the previous calendar year, the
25rate is $5 per person admitted.
26 (1) The admission fee shall be paid for each

SB2254- 382 -LRB102 15486 SMS 20849 b
1 admission.
2 (2) (Blank).
3 (3) The licensed manager may issue fee-free passes to
4 actual and necessary officials and employees of the
5 manager or other persons actually working on the
6 riverboat.
7 (4) The number and issuance of fee-free passes is
8 subject to the rules of the Division Board, and a list of
9 all persons to whom the fee-free passes are issued shall
10 be filed with the Division Board.
11 (b) Except as provided in subsection (b-5), from the tax
12imposed under subsection (a) and the fee imposed under
13subsection (a-5), a municipality shall receive from the State
14$1 for each person embarking on a riverboat docked within the
15municipality or entering a casino located within the
16municipality, and a county shall receive $1 for each person
17entering a casino or embarking on a riverboat docked within
18the county but outside the boundaries of any municipality. The
19municipality's or county's share shall be collected by the
20Division Board on behalf of the State and remitted quarterly
21by the State, subject to appropriation, to the treasurer of
22the unit of local government for deposit in the general fund.
23 (b-5) From the tax imposed under subsection (a) and the
24fee imposed under subsection (a-5), $1 for each person
25embarking on a riverboat designated in paragraph (4) of
26subsection (e-5) of Section 7 shall be divided as follows:

SB2254- 383 -LRB102 15486 SMS 20849 b
1$0.70 to the City of Rockford, $0.05 to the City of Loves Park,
2$0.05 to the Village of Machesney Park, and $0.20 to Winnebago
3County.
4 The municipality's or county's share shall be collected by
5the Division Board on behalf of the State and remitted monthly
6by the State, subject to appropriation, to the treasurer of
7the unit of local government for deposit in the general fund.
8 (b-10) From the tax imposed under subsection (a) and the
9fee imposed under subsection (a-5), $1 for each person
10embarking on a riverboat or entering a casino designated in
11paragraph (1) of subsection (e-5) of Section 7 shall be
12divided as follows: $0.70 to the City of Chicago, $0.15 to the
13Village of Maywood, and $0.15 to the Village of Summit.
14 The municipality's or county's share shall be collected by
15the Division Board on behalf of the State and remitted monthly
16by the State, subject to appropriation, to the treasurer of
17the unit of local government for deposit in the general fund.
18 (b-15) From the tax imposed under subsection (a) and the
19fee imposed under subsection (a-5), $1 for each person
20embarking on a riverboat or entering a casino designated in
21paragraph (2) of subsection (e-5) of Section 7 shall be
22divided as follows: $0.70 to the City of Danville and $0.30 to
23Vermilion County.
24 The municipality's or county's share shall be collected by
25the Division Board on behalf of the State and remitted monthly
26by the State, subject to appropriation, to the treasurer of

SB2254- 384 -LRB102 15486 SMS 20849 b
1the unit of local government for deposit in the general fund.
2 (c) The licensed owner shall pay the entire admission tax
3to the Division Board and the licensed manager shall pay the
4entire admission fee to the Division Board. Such payments
5shall be made daily. Accompanying each payment shall be a
6return on forms provided by the Division Board which shall
7include other information regarding admissions as the Division
8Board may require. Failure to submit either the payment or the
9return within the specified time may result in suspension or
10revocation of the owners or managers license.
11 (c-5) A tax is imposed on admissions to organization
12gaming facilities at the rate of $3 per person admitted by an
13organization gaming licensee. The tax is imposed upon the
14organization gaming licensee.
15 (1) The admission tax shall be paid for each
16 admission, except that a person who exits an organization
17 gaming facility and reenters that organization gaming
18 facility within the same gaming day, as the term "gaming
19 day" is defined by the Division Board by rule, shall be
20 subject only to the initial admission tax. The Division
21 Board shall establish, by rule, a procedure to determine
22 whether a person admitted to an organization gaming
23 facility has paid the admission tax.
24 (2) An organization gaming licensee may issue tax-free
25 passes to actual and necessary officials and employees of
26 the licensee and other persons associated with its gaming

SB2254- 385 -LRB102 15486 SMS 20849 b
1 operations.
2 (3) The number and issuance of tax-free passes is
3 subject to the rules of the Division Board, and a list of
4 all persons to whom the tax-free passes are issued shall
5 be filed with the Division Board.
6 (4) The organization gaming licensee shall pay the
7 entire admission tax to the Division Board.
8 Such payments shall be made daily. Accompanying each
9payment shall be a return on forms provided by the Division
10Board, which shall include other information regarding
11admission as the Division Board may require. Failure to submit
12either the payment or the return within the specified time may
13result in suspension or revocation of the organization gaming
14license.
15 From the tax imposed under this subsection (c-5), a
16municipality other than the Village of Stickney or the City of
17Collinsville in which an organization gaming facility is
18located, or if the organization gaming facility is not located
19within a municipality, then the county in which the
20organization gaming facility is located, except as otherwise
21provided in this Section, shall receive, subject to
22appropriation, $1 for each person who enters the organization
23gaming facility. For each admission to the organization gaming
24facility in excess of 1,500,000 in a year, from the tax imposed
25under this subsection (c-5), the county in which the
26organization gaming facility is located shall receive, subject

SB2254- 386 -LRB102 15486 SMS 20849 b
1to appropriation, $0.30, which shall be in addition to any
2other moneys paid to the county under this Section.
3 From the tax imposed under this subsection (c-5) on an
4organization gaming facility located in the Village of
5Stickney, $1 for each person who enters the organization
6gaming facility shall be distributed as follows, subject to
7appropriation: $0.24 to the Village of Stickney, $0.49 to the
8Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
9Stickney Public Health District, and $0.05 to the City of
10Bridgeview.
11 From the tax imposed under this subsection (c-5) on an
12organization gaming facility located in the City of
13Collinsville, the following shall each receive 10 cents for
14each person who enters the organization gaming facility,
15subject to appropriation: the Village of Alorton; the Village
16of Washington Park; State Park Place; the Village of Fairmont
17City; the City of Centreville; the Village of Brooklyn; the
18City of Venice; the City of Madison; the Village of
19Caseyville; and the Village of Pontoon Beach.
20 On the 25th day of each month, all amounts remaining after
21payments required under this subsection (c-5) have been made
22shall be transferred into the Capital Projects Fund.
23 (d) The Division Board shall administer and collect the
24admission tax imposed by this Section, to the extent
25practicable, in a manner consistent with the provisions of
26Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,

SB2254- 387 -LRB102 15486 SMS 20849 b
16c, 8, 9 and 10 of the Retailers' Occupation Tax Act and
2Section 3-7 of the Uniform Penalty and Interest Act.
3(Source: P.A. 101-31, eff. 6-28-19.)
4 (230 ILCS 10/13) (from Ch. 120, par. 2413)
5 Sec. 13. Wagering tax; rate; distribution.
6 (a) Until January 1, 1998, a tax is imposed on the adjusted
7gross receipts received from gambling games authorized under
8this Act at the rate of 20%.
9 (a-1) From January 1, 1998 until July 1, 2002, a privilege
10tax is imposed on persons engaged in the business of
11conducting riverboat gambling operations, based on the
12adjusted gross receipts received by a licensed owner from
13gambling games authorized under this Act at the following
14rates:
15 15% of annual adjusted gross receipts up to and
16 including $25,000,000;
17 20% of annual adjusted gross receipts in excess of
18 $25,000,000 but not exceeding $50,000,000;
19 25% of annual adjusted gross receipts in excess of
20 $50,000,000 but not exceeding $75,000,000;
21 30% of annual adjusted gross receipts in excess of
22 $75,000,000 but not exceeding $100,000,000;
23 35% of annual adjusted gross receipts in excess of
24 $100,000,000.
25 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax

SB2254- 388 -LRB102 15486 SMS 20849 b
1is imposed on persons engaged in the business of conducting
2riverboat gambling operations, other than licensed managers
3conducting riverboat gambling operations on behalf of the
4State, based on the adjusted gross receipts received by a
5licensed owner from gambling games authorized under this Act
6at the following rates:
7 15% of annual adjusted gross receipts up to and
8 including $25,000,000;
9 22.5% of annual adjusted gross receipts in excess of
10 $25,000,000 but not exceeding $50,000,000;
11 27.5% of annual adjusted gross receipts in excess of
12 $50,000,000 but not exceeding $75,000,000;
13 32.5% of annual adjusted gross receipts in excess of
14 $75,000,000 but not exceeding $100,000,000;
15 37.5% of annual adjusted gross receipts in excess of
16 $100,000,000 but not exceeding $150,000,000;
17 45% of annual adjusted gross receipts in excess of
18 $150,000,000 but not exceeding $200,000,000;
19 50% of annual adjusted gross receipts in excess of
20 $200,000,000.
21 (a-3) Beginning July 1, 2003, a privilege tax is imposed
22on persons engaged in the business of conducting riverboat
23gambling operations, other than licensed managers conducting
24riverboat gambling operations on behalf of the State, based on
25the adjusted gross receipts received by a licensed owner from
26gambling games authorized under this Act at the following

SB2254- 389 -LRB102 15486 SMS 20849 b
1rates:
2 15% of annual adjusted gross receipts up to and
3 including $25,000,000;
4 27.5% of annual adjusted gross receipts in excess of
5 $25,000,000 but not exceeding $37,500,000;
6 32.5% of annual adjusted gross receipts in excess of
7 $37,500,000 but not exceeding $50,000,000;
8 37.5% of annual adjusted gross receipts in excess of
9 $50,000,000 but not exceeding $75,000,000;
10 45% of annual adjusted gross receipts in excess of
11 $75,000,000 but not exceeding $100,000,000;
12 50% of annual adjusted gross receipts in excess of
13 $100,000,000 but not exceeding $250,000,000;
14 70% of annual adjusted gross receipts in excess of
15 $250,000,000.
16 An amount equal to the amount of wagering taxes collected
17under this subsection (a-3) that are in addition to the amount
18of wagering taxes that would have been collected if the
19wagering tax rates under subsection (a-2) were in effect shall
20be paid into the Common School Fund.
21 The privilege tax imposed under this subsection (a-3)
22shall no longer be imposed beginning on the earlier of (i) July
231, 2005; (ii) the first date after June 20, 2003 that riverboat
24gambling operations are conducted pursuant to a dormant
25license; or (iii) the first day that riverboat gambling
26operations are conducted under the authority of an owners

SB2254- 390 -LRB102 15486 SMS 20849 b
1license that is in addition to the 10 owners licenses
2initially authorized under this Act. For the purposes of this
3subsection (a-3), the term "dormant license" means an owners
4license that is authorized by this Act under which no
5riverboat gambling operations are being conducted on June 20,
62003.
7 (a-4) Beginning on the first day on which the tax imposed
8under subsection (a-3) is no longer imposed and ending upon
9the imposition of the privilege tax under subsection (a-5) of
10this Section, a privilege tax is imposed on persons engaged in
11the business of conducting gambling operations, other than
12licensed managers conducting riverboat gambling operations on
13behalf of the State, based on the adjusted gross receipts
14received by a licensed owner from gambling games authorized
15under this Act at the following rates:
16 15% of annual adjusted gross receipts up to and
17 including $25,000,000;
18 22.5% of annual adjusted gross receipts in excess of
19 $25,000,000 but not exceeding $50,000,000;
20 27.5% of annual adjusted gross receipts in excess of
21 $50,000,000 but not exceeding $75,000,000;
22 32.5% of annual adjusted gross receipts in excess of
23 $75,000,000 but not exceeding $100,000,000;
24 37.5% of annual adjusted gross receipts in excess of
25 $100,000,000 but not exceeding $150,000,000;
26 45% of annual adjusted gross receipts in excess of

SB2254- 391 -LRB102 15486 SMS 20849 b
1 $150,000,000 but not exceeding $200,000,000;
2 50% of annual adjusted gross receipts in excess of
3 $200,000,000.
4 For the imposition of the privilege tax in this subsection
5(a-4), amounts paid pursuant to item (1) of subsection (b) of
6Section 56 of the Illinois Horse Racing Act of 1975 shall not
7be included in the determination of adjusted gross receipts.
8 (a-5)(1) Beginning on July 1, 2020, a privilege tax is
9imposed on persons engaged in the business of conducting
10gambling operations, other than the owners licensee under
11paragraph (1) of subsection (e-5) of Section 7 and licensed
12managers conducting riverboat gambling operations on behalf of
13the State, based on the adjusted gross receipts received by
14such licensee from the gambling games authorized under this
15Act. The privilege tax for all gambling games other than table
16games, including, but not limited to, slot machines, video
17game of chance gambling, and electronic gambling games shall
18be at the following rates:
19 15% of annual adjusted gross receipts up to and
20 including $25,000,000;
21 22.5% of annual adjusted gross receipts in excess of
22 $25,000,000 but not exceeding $50,000,000;
23 27.5% of annual adjusted gross receipts in excess of
24 $50,000,000 but not exceeding $75,000,000;
25 32.5% of annual adjusted gross receipts in excess of
26 $75,000,000 but not exceeding $100,000,000;

SB2254- 392 -LRB102 15486 SMS 20849 b
1 37.5% of annual adjusted gross receipts in excess of
2 $100,000,000 but not exceeding $150,000,000;
3 45% of annual adjusted gross receipts in excess of
4 $150,000,000 but not exceeding $200,000,000;
5 50% of annual adjusted gross receipts in excess of
6 $200,000,000.
7 The privilege tax for table games shall be at the
8following rates:
9 15% of annual adjusted gross receipts up to and
10 including $25,000,000;
11 20% of annual adjusted gross receipts in excess of
12 $25,000,000.
13 For the imposition of the privilege tax in this subsection
14(a-5), amounts paid pursuant to item (1) of subsection (b) of
15Section 56 of the Illinois Horse Racing Act of 1975 shall not
16be included in the determination of adjusted gross receipts.
17 (2) Beginning on the first day that an owners licensee
18under paragraph (1) of subsection (e-5) of Section 7 conducts
19gambling operations, either in a temporary facility or a
20permanent facility, a privilege tax is imposed on persons
21engaged in the business of conducting gambling operations
22under paragraph (1) of subsection (e-5) of Section 7, other
23than licensed managers conducting riverboat gambling
24operations on behalf of the State, based on the adjusted gross
25receipts received by such licensee from the gambling games
26authorized under this Act. The privilege tax for all gambling

SB2254- 393 -LRB102 15486 SMS 20849 b
1games other than table games, including, but not limited to,
2slot machines, video game of chance gambling, and electronic
3gambling games shall be at the following rates:
4 12% of annual adjusted gross receipts up to and
5 including $25,000,000 to the State and 10.5% of annual
6 adjusted gross receipts up to and including $25,000,000 to
7 the City of Chicago;
8 16% of annual adjusted gross receipts in excess of
9 $25,000,000 but not exceeding $50,000,000 to the State and
10 14% of annual adjusted gross receipts in excess of
11 $25,000,000 but not exceeding $50,000,000 to the City of
12 Chicago;
13 20.1% of annual adjusted gross receipts in excess of
14 $50,000,000 but not exceeding $75,000,000 to the State and
15 17.4% of annual adjusted gross receipts in excess of
16 $50,000,000 but not exceeding $75,000,000 to the City of
17 Chicago;
18 21.4% of annual adjusted gross receipts in excess of
19 $75,000,000 but not exceeding $100,000,000 to the State
20 and 18.6% of annual adjusted gross receipts in excess of
21 $75,000,000 but not exceeding $100,000,000 to the City of
22 Chicago;
23 22.7% of annual adjusted gross receipts in excess of
24 $100,000,000 but not exceeding $150,000,000 to the State
25 and 19.8% of annual adjusted gross receipts in excess of
26 $100,000,000 but not exceeding $150,000,000 to the City of

SB2254- 394 -LRB102 15486 SMS 20849 b
1 Chicago;
2 24.1% of annual adjusted gross receipts in excess of
3 $150,000,000 but not exceeding $225,000,000 to the State
4 and 20.9% of annual adjusted gross receipts in excess of
5 $150,000,000 but not exceeding $225,000,000 to the City of
6 Chicago;
7 26.8% of annual adjusted gross receipts in excess of
8 $225,000,000 but not exceeding $1,000,000,000 to the State
9 and 23.2% of annual adjusted gross receipts in excess of
10 $225,000,000 but not exceeding $1,000,000,000 to the City
11 of Chicago;
12 40% of annual adjusted gross receipts in excess of
13 $1,000,000,000 to the State and 34.7% of annual gross
14 receipts in excess of $1,000,000,000 to the City of
15 Chicago.
16 The privilege tax for table games shall be at the
17following rates:
18 8.1% of annual adjusted gross receipts up to and
19 including $25,000,000 to the State and 6.9% of annual
20 adjusted gross receipts up to and including $25,000,000 to
21 the City of Chicago;
22 10.7% of annual adjusted gross receipts in excess of
23 $25,000,000 but not exceeding $75,000,000 to the State and
24 9.3% of annual adjusted gross receipts in excess of
25 $25,000,000 but not exceeding $75,000,000 to the City of
26 Chicago;

SB2254- 395 -LRB102 15486 SMS 20849 b
1 11.2% of annual adjusted gross receipts in excess of
2 $75,000,000 but not exceeding $175,000,000 to the State
3 and 9.8% of annual adjusted gross receipts in excess of
4 $75,000,000 but not exceeding $175,000,000 to the City of
5 Chicago;
6 13.5% of annual adjusted gross receipts in excess of
7 $175,000,000 but not exceeding $225,000,000 to the State
8 and 11.5% of annual adjusted gross receipts in excess of
9 $175,000,000 but not exceeding $225,000,000 to the City of
10 Chicago;
11 15.1% of annual adjusted gross receipts in excess of
12 $225,000,000 but not exceeding $275,000,000 to the State
13 and 12.9% of annual adjusted gross receipts in excess of
14 $225,000,000 but not exceeding $275,000,000 to the City of
15 Chicago;
16 16.2% of annual adjusted gross receipts in excess of
17 $275,000,000 but not exceeding $375,000,000 to the State
18 and 13.8% of annual adjusted gross receipts in excess of
19 $275,000,000 but not exceeding $375,000,000 to the City of
20 Chicago;
21 18.9% of annual adjusted gross receipts in excess of
22 $375,000,000 to the State and 16.1% of annual gross
23 receipts in excess of $375,000,000 to the City of Chicago.
24 For the imposition of the privilege tax in this subsection
25(a-5), amounts paid pursuant to item (1) of subsection (b) of
26Section 56 of the Illinois Horse Racing Act of 1975 shall not

SB2254- 396 -LRB102 15486 SMS 20849 b
1be included in the determination of adjusted gross receipts.
2 Notwithstanding the provisions of this subsection (a-5),
3for the first 10 years that the privilege tax is imposed under
4this subsection (a-5), the privilege tax shall be imposed on
5the modified annual adjusted gross receipts of a riverboat or
6casino conducting gambling operations in the City of East St.
7Louis, unless:
8 (1) the riverboat or casino fails to employ at least
9 450 people;
10 (2) the riverboat or casino fails to maintain
11 operations in a manner consistent with this Act or is not a
12 viable riverboat or casino subject to the approval of the
13 Division Board; or
14 (3) the owners licensee is not an entity in which
15 employees participate in an employee stock ownership plan.
16 As used in this subsection (a-5), "modified annual
17adjusted gross receipts" means:
18 (A) for calendar year 2020, the annual adjusted gross
19 receipts for the current year minus the difference between
20 an amount equal to the average annual adjusted gross
21 receipts from a riverboat or casino conducting gambling
22 operations in the City of East St. Louis for 2014, 2015,
23 2016, 2017, and 2018 and the annual adjusted gross
24 receipts for 2018;
25 (B) for calendar year 2021, the annual adjusted gross
26 receipts for the current year minus the difference between

SB2254- 397 -LRB102 15486 SMS 20849 b
1 an amount equal to the average annual adjusted gross
2 receipts from a riverboat or casino conducting gambling
3 operations in the City of East St. Louis for 2014, 2015,
4 2016, 2017, and 2018 and the annual adjusted gross
5 receipts for 2019; and
6 (C) for calendar years 2022 through 2029, the annual
7 adjusted gross receipts for the current year minus the
8 difference between an amount equal to the average annual
9 adjusted gross receipts from a riverboat or casino
10 conducting gambling operations in the City of East St.
11 Louis for 3 years preceding the current year and the
12 annual adjusted gross receipts for the immediately
13 preceding year.
14 (a-6) From June 28, 2019 (the effective date of Public Act
15101-31) until June 30, 2023, an owners licensee that conducted
16gambling operations prior to January 1, 2011 shall receive a
17dollar-for-dollar credit against the tax imposed under this
18Section for any renovation or construction costs paid by the
19owners licensee, but in no event shall the credit exceed
20$2,000,000.
21 Additionally, from June 28, 2019 (the effective date of
22Public Act 101-31) until December 31, 2022, an owners licensee
23that (i) is located within 15 miles of the Missouri border, and
24(ii) has at least 3 riverboats, casinos, or their equivalent
25within a 45-mile radius, may be authorized to relocate to a new
26location with the approval of both the unit of local

SB2254- 398 -LRB102 15486 SMS 20849 b
1government designated as the home dock and the Division Board,
2so long as the new location is within the same unit of local
3government and no more than 3 miles away from its original
4location. Such owners licensee shall receive a credit against
5the tax imposed under this Section equal to 8% of the total
6project costs, as approved by the Division Board, for any
7renovation or construction costs paid by the owners licensee
8for the construction of the new facility, provided that the
9new facility is operational by July 1, 2022. In determining
10whether or not to approve a relocation, the Division Board
11must consider the extent to which the relocation will diminish
12the gaming revenues received by other Illinois gaming
13facilities.
14 (a-7) Beginning in the initial adjustment year and through
15the final adjustment year, if the total obligation imposed
16pursuant to either subsection (a-5) or (a-6) will result in an
17owners licensee receiving less after-tax adjusted gross
18receipts than it received in calendar year 2018, then the
19total amount of privilege taxes that the owners licensee is
20required to pay for that calendar year shall be reduced to the
21extent necessary so that the after-tax adjusted gross receipts
22in that calendar year equals the after-tax adjusted gross
23receipts in calendar year 2018, but the privilege tax
24reduction shall not exceed the annual adjustment cap. If
25pursuant to this subsection (a-7), the total obligation
26imposed pursuant to either subsection (a-5) or (a-6) shall be

SB2254- 399 -LRB102 15486 SMS 20849 b
1reduced, then the owners licensee shall not receive a refund
2from the State at the end of the subject calendar year but
3instead shall be able to apply that amount as a credit against
4any payments it owes to the State in the following calendar
5year to satisfy its total obligation under either subsection
6(a-5) or (a-6). The credit for the final adjustment year shall
7occur in the calendar year following the final adjustment
8year.
9 If an owners licensee that conducted gambling operations
10prior to January 1, 2019 expands its riverboat or casino,
11including, but not limited to, with respect to its gaming
12floor, additional non-gaming amenities such as restaurants,
13bars, and hotels and other additional facilities, and incurs
14construction and other costs related to such expansion from
15June 28, 2019 (the effective date of Public Act 101-31) until
16June 28, 2024 (the 5th anniversary of the effective date of
17Public Act 101-31), then for each $15,000,000 spent for any
18such construction or other costs related to expansion paid by
19the owners licensee, the final adjustment year shall be
20extended by one year and the annual adjustment cap shall
21increase by 0.2% of adjusted gross receipts during each
22calendar year until and including the final adjustment year.
23No further modifications to the final adjustment year or
24annual adjustment cap shall be made after $75,000,000 is
25incurred in construction or other costs related to expansion
26so that the final adjustment year shall not extend beyond the

SB2254- 400 -LRB102 15486 SMS 20849 b
19th calendar year after the initial adjustment year, not
2including the initial adjustment year, and the annual
3adjustment cap shall not exceed 4% of adjusted gross receipts
4in a particular calendar year. Construction and other costs
5related to expansion shall include all project related costs,
6including, but not limited to, all hard and soft costs,
7financing costs, on or off-site ground, road or utility work,
8cost of gaming equipment and all other personal property,
9initial fees assessed for each incremental gaming position,
10and the cost of incremental land acquired for such expansion.
11Soft costs shall include, but not be limited to, legal fees,
12architect, engineering and design costs, other consultant
13costs, insurance cost, permitting costs, and pre-opening costs
14related to the expansion, including, but not limited to, any
15of the following: marketing, real estate taxes, personnel,
16training, travel and out-of-pocket expenses, supply,
17inventory, and other costs, and any other project related soft
18costs.
19 To be eligible for the tax credits in subsection (a-6),
20all construction contracts shall include a requirement that
21the contractor enter into a project labor agreement with the
22building and construction trades council with geographic
23jurisdiction of the location of the proposed gaming facility.
24 Notwithstanding any other provision of this subsection
25(a-7), this subsection (a-7) does not apply to an owners
26licensee unless such owners licensee spends at least

SB2254- 401 -LRB102 15486 SMS 20849 b
1$15,000,000 on construction and other costs related to its
2expansion, excluding the initial fees assessed for each
3incremental gaming position.
4 This subsection (a-7) does not apply to owners licensees
5authorized pursuant to subsection (e-5) of Section 7 of this
6Act.
7 For purposes of this subsection (a-7):
8 "Building and construction trades council" means any
9organization representing multiple construction entities that
10are monitoring or attentive to compliance with public or
11workers' safety laws, wage and hour requirements, or other
12statutory requirements or that are making or maintaining
13collective bargaining agreements.
14 "Initial adjustment year" means the year commencing on
15January 1 of the calendar year immediately following the
16earlier of the following:
17 (1) the commencement of gambling operations, either in
18 a temporary or permanent facility, with respect to the
19 owners license authorized under paragraph (1) of
20 subsection (e-5) of Section 7 of this Act; or
21 (2) June 28, 2021 (24 months after the effective date
22 of Public Act 101-31);
23provided the initial adjustment year shall not commence
24earlier than June 28, 2020 (12 months after the effective date
25of Public Act 101-31).
26 "Final adjustment year" means the 2nd calendar year after

SB2254- 402 -LRB102 15486 SMS 20849 b
1the initial adjustment year, not including the initial
2adjustment year, and as may be extended further as described
3in this subsection (a-7).
4 "Annual adjustment cap" means 3% of adjusted gross
5receipts in a particular calendar year, and as may be
6increased further as otherwise described in this subsection
7(a-7).
8 (a-8) Riverboat gambling operations conducted by a
9licensed manager on behalf of the State are not subject to the
10tax imposed under this Section.
11 (a-9) Beginning on January 1, 2020, the calculation of
12gross receipts or adjusted gross receipts, for the purposes of
13this Section, for a riverboat, a casino, or an organization
14gaming facility shall not include the dollar amount of
15non-cashable vouchers, coupons, and electronic promotions
16redeemed by wagerers upon the riverboat, in the casino, or in
17the organization gaming facility up to and including an amount
18not to exceed 20% of a riverboat's, a casino's, or an
19organization gaming facility's adjusted gross receipts.
20 The Division Illinois Gaming Board shall submit to the
21General Assembly a comprehensive report no later than March
2231, 2023 detailing, at a minimum, the effect of removing
23non-cashable vouchers, coupons, and electronic promotions from
24this calculation on net gaming revenues to the State in
25calendar years 2020 through 2022, the increase or reduction in
26wagerers as a result of removing non-cashable vouchers,

SB2254- 403 -LRB102 15486 SMS 20849 b
1coupons, and electronic promotions from this calculation, the
2effect of the tax rates in subsection (a-5) on net gaming
3revenues to this State, and proposed modifications to the
4calculation.
5 (a-10) The taxes imposed by this Section shall be paid by
6the licensed owner or the organization gaming licensee to the
7Division Board not later than 5:00 o'clock p.m. of the day
8after the day when the wagers were made.
9 (a-15) If the privilege tax imposed under subsection (a-3)
10is no longer imposed pursuant to item (i) of the last paragraph
11of subsection (a-3), then by June 15 of each year, each owners
12licensee, other than an owners licensee that admitted
131,000,000 persons or fewer in calendar year 2004, must, in
14addition to the payment of all amounts otherwise due under
15this Section, pay to the Division Board a reconciliation
16payment in the amount, if any, by which the licensed owner's
17base amount exceeds the amount of net privilege tax paid by the
18licensed owner to the Division Board in the then current State
19fiscal year. A licensed owner's net privilege tax obligation
20due for the balance of the State fiscal year shall be reduced
21up to the total of the amount paid by the licensed owner in its
22June 15 reconciliation payment. The obligation imposed by this
23subsection (a-15) is binding on any person, firm, corporation,
24or other entity that acquires an ownership interest in any
25such owners license. The obligation imposed under this
26subsection (a-15) terminates on the earliest of: (i) July 1,

SB2254- 404 -LRB102 15486 SMS 20849 b
12007, (ii) the first day after the effective date of this
2amendatory Act of the 94th General Assembly that riverboat
3gambling operations are conducted pursuant to a dormant
4license, (iii) the first day that riverboat gambling
5operations are conducted under the authority of an owners
6license that is in addition to the 10 owners licenses
7initially authorized under this Act, or (iv) the first day
8that a licensee under the Illinois Horse Racing Act of 1975
9conducts gaming operations with slot machines or other
10electronic gaming devices. The Division Board must reduce the
11obligation imposed under this subsection (a-15) by an amount
12the Division Board deems reasonable for any of the following
13reasons: (A) an act or acts of God, (B) an act of bioterrorism
14or terrorism or a bioterrorism or terrorism threat that was
15investigated by a law enforcement agency, or (C) a condition
16beyond the control of the owners licensee that does not result
17from any act or omission by the owners licensee or any of its
18agents and that poses a hazardous threat to the health and
19safety of patrons. If an owners licensee pays an amount in
20excess of its liability under this Section, the Division Board
21shall apply the overpayment to future payments required under
22this Section.
23 For purposes of this subsection (a-15):
24 "Act of God" means an incident caused by the operation of
25an extraordinary force that cannot be foreseen, that cannot be
26avoided by the exercise of due care, and for which no person

SB2254- 405 -LRB102 15486 SMS 20849 b
1can be held liable.
2 "Base amount" means the following:
3 For a riverboat in Alton, $31,000,000.
4 For a riverboat in East Peoria, $43,000,000.
5 For the Empress riverboat in Joliet, $86,000,000.
6 For a riverboat in Metropolis, $45,000,000.
7 For the Harrah's riverboat in Joliet, $114,000,000.
8 For a riverboat in Aurora, $86,000,000.
9 For a riverboat in East St. Louis, $48,500,000.
10 For a riverboat in Elgin, $198,000,000.
11 "Dormant license" has the meaning ascribed to it in
12subsection (a-3).
13 "Net privilege tax" means all privilege taxes paid by a
14licensed owner to the Division Board under this Section, less
15all payments made from the State Gaming Fund pursuant to
16subsection (b) of this Section.
17 The changes made to this subsection (a-15) by Public Act
1894-839 are intended to restate and clarify the intent of
19Public Act 94-673 with respect to the amount of the payments
20required to be made under this subsection by an owners
21licensee to the Division Board.
22 (b) From the tax revenue from riverboat or casino gambling
23deposited in the State Gaming Fund under this Section, an
24amount equal to 5% of adjusted gross receipts generated by a
25riverboat or a casino, other than a riverboat or casino
26designated in paragraph (1), (3), or (4) of subsection (e-5)

SB2254- 406 -LRB102 15486 SMS 20849 b
1of Section 7, shall be paid monthly, subject to appropriation
2by the General Assembly, to the unit of local government in
3which the casino is located or that is designated as the home
4dock of the riverboat. Notwithstanding anything to the
5contrary, beginning on the first day that an owners licensee
6under paragraph (1), (2), (3), (4), (5), or (6) of subsection
7(e-5) of Section 7 conducts gambling operations, either in a
8temporary facility or a permanent facility, and for 2 years
9thereafter, a unit of local government designated as the home
10dock of a riverboat whose license was issued before January 1,
112019, other than a riverboat conducting gambling operations in
12the City of East St. Louis, shall not receive less under this
13subsection (b) than the amount the unit of local government
14received under this subsection (b) in calendar year 2018.
15Notwithstanding anything to the contrary and because the City
16of East St. Louis is a financially distressed city, beginning
17on the first day that an owners licensee under paragraph (1),
18(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
19conducts gambling operations, either in a temporary facility
20or a permanent facility, and for 10 years thereafter, a unit of
21local government designated as the home dock of a riverboat
22conducting gambling operations in the City of East St. Louis
23shall not receive less under this subsection (b) than the
24amount the unit of local government received under this
25subsection (b) in calendar year 2018.
26 From the tax revenue deposited in the State Gaming Fund

SB2254- 407 -LRB102 15486 SMS 20849 b
1pursuant to riverboat or casino gambling operations conducted
2by a licensed manager on behalf of the State, an amount equal
3to 5% of adjusted gross receipts generated pursuant to those
4riverboat or casino gambling operations shall be paid monthly,
5subject to appropriation by the General Assembly, to the unit
6of local government that is designated as the home dock of the
7riverboat upon which those riverboat gambling operations are
8conducted or in which the casino is located.
9 From the tax revenue from riverboat or casino gambling
10deposited in the State Gaming Fund under this Section, an
11amount equal to 5% of the adjusted gross receipts generated by
12a riverboat designated in paragraph (3) of subsection (e-5) of
13Section 7 shall be divided and remitted monthly, subject to
14appropriation, as follows: 70% to Waukegan, 10% to Park City,
1515% to North Chicago, and 5% to Lake County.
16 From the tax revenue from riverboat or casino gambling
17deposited in the State Gaming Fund under this Section, an
18amount equal to 5% of the adjusted gross receipts generated by
19a riverboat designated in paragraph (4) of subsection (e-5) of
20Section 7 shall be remitted monthly, subject to appropriation,
21as follows: 70% to the City of Rockford, 5% to the City of
22Loves Park, 5% to the Village of Machesney, and 20% to
23Winnebago County.
24 From the tax revenue from riverboat or casino gambling
25deposited in the State Gaming Fund under this Section, an
26amount equal to 5% of the adjusted gross receipts generated by

SB2254- 408 -LRB102 15486 SMS 20849 b
1a riverboat designated in paragraph (5) of subsection (e-5) of
2Section 7 shall be remitted monthly, subject to appropriation,
3as follows: 2% to the unit of local government in which the
4riverboat or casino is located, and 3% shall be distributed:
5(A) in accordance with a regional capital development plan
6entered into by the following communities: Village of Beecher,
7City of Blue Island, Village of Burnham, City of Calumet City,
8Village of Calumet Park, City of Chicago Heights, City of
9Country Club Hills, Village of Crestwood, Village of Crete,
10Village of Dixmoor, Village of Dolton, Village of East Hazel
11Crest, Village of Flossmoor, Village of Ford Heights, Village
12of Glenwood, City of Harvey, Village of Hazel Crest, Village
13of Homewood, Village of Lansing, Village of Lynwood, City of
14Markham, Village of Matteson, Village of Midlothian, Village
15of Monee, City of Oak Forest, Village of Olympia Fields,
16Village of Orland Hills, Village of Orland Park, City of Palos
17Heights, Village of Park Forest, Village of Phoenix, Village
18of Posen, Village of Richton Park, Village of Riverdale,
19Village of Robbins, Village of Sauk Village, Village of South
20Chicago Heights, Village of South Holland, Village of Steger,
21Village of Thornton, Village of Tinley Park, Village of
22University Park and Village of Worth; or (B) if no regional
23capital development plan exists, equally among the communities
24listed in item (A) to be used for capital expenditures or
25public pension payments, or both.
26 Units of local government may refund any portion of the

SB2254- 409 -LRB102 15486 SMS 20849 b
1payment that they receive pursuant to this subsection (b) to
2the riverboat or casino.
3 (b-4) Beginning on the first day the licensee under
4paragraph (5) of subsection (e-5) of Section 7 conducts
5gambling operations, either in a temporary facility or a
6permanent facility, and ending on July 31, 2042, from the tax
7revenue deposited in the State Gaming Fund under this Section,
8$5,000,000 shall be paid annually, subject to appropriation,
9to the host municipality of that owners licensee of a license
10issued or re-issued pursuant to Section 7.1 of this Act before
11January 1, 2012. Payments received by the host municipality
12pursuant to this subsection (b-4) may not be shared with any
13other unit of local government.
14 (b-5) Beginning on June 28, 2019 (the effective date of
15Public Act 101-31), from the tax revenue deposited in the
16State Gaming Fund under this Section, an amount equal to 3% of
17adjusted gross receipts generated by each organization gaming
18facility located outside Madison County shall be paid monthly,
19subject to appropriation by the General Assembly, to a
20municipality other than the Village of Stickney in which each
21organization gaming facility is located or, if the
22organization gaming facility is not located within a
23municipality, to the county in which the organization gaming
24facility is located, except as otherwise provided in this
25Section. From the tax revenue deposited in the State Gaming
26Fund under this Section, an amount equal to 3% of adjusted

SB2254- 410 -LRB102 15486 SMS 20849 b
1gross receipts generated by an organization gaming facility
2located in the Village of Stickney shall be paid monthly,
3subject to appropriation by the General Assembly, as follows:
425% to the Village of Stickney, 5% to the City of Berwyn, 50%
5to the Town of Cicero, and 20% to the Stickney Public Health
6District.
7 From the tax revenue deposited in the State Gaming Fund
8under this Section, an amount equal to 5% of adjusted gross
9receipts generated by an organization gaming facility located
10in the City of Collinsville shall be paid monthly, subject to
11appropriation by the General Assembly, as follows: 30% to the
12City of Alton, 30% to the City of East St. Louis, and 40% to
13the City of Collinsville.
14 Municipalities and counties may refund any portion of the
15payment that they receive pursuant to this subsection (b-5) to
16the organization gaming facility.
17 (b-6) Beginning on June 28, 2019 (the effective date of
18Public Act 101-31), from the tax revenue deposited in the
19State Gaming Fund under this Section, an amount equal to 2% of
20adjusted gross receipts generated by an organization gaming
21facility located outside Madison County shall be paid monthly,
22subject to appropriation by the General Assembly, to the
23county in which the organization gaming facility is located
24for the purposes of its criminal justice system or health care
25system.
26 Counties may refund any portion of the payment that they

SB2254- 411 -LRB102 15486 SMS 20849 b
1receive pursuant to this subsection (b-6) to the organization
2gaming facility.
3 (b-7) From the tax revenue from the organization gaming
4licensee located in one of the following townships of Cook
5County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
6Worth, an amount equal to 5% of the adjusted gross receipts
7generated by that organization gaming licensee shall be
8remitted monthly, subject to appropriation, as follows: 2% to
9the unit of local government in which the organization gaming
10licensee is located, and 3% shall be distributed: (A) in
11accordance with a regional capital development plan entered
12into by the following communities: Village of Beecher, City of
13Blue Island, Village of Burnham, City of Calumet City, Village
14of Calumet Park, City of Chicago Heights, City of Country Club
15Hills, Village of Crestwood, Village of Crete, Village of
16Dixmoor, Village of Dolton, Village of East Hazel Crest,
17Village of Flossmoor, Village of Ford Heights, Village of
18Glenwood, City of Harvey, Village of Hazel Crest, Village of
19Homewood, Village of Lansing, Village of Lynwood, City of
20Markham, Village of Matteson, Village of Midlothian, Village
21of Monee, City of Oak Forest, Village of Olympia Fields,
22Village of Orland Hills, Village of Orland Park, City of Palos
23Heights, Village of Park Forest, Village of Phoenix, Village
24of Posen, Village of Richton Park, Village of Riverdale,
25Village of Robbins, Village of Sauk Village, Village of South
26Chicago Heights, Village of South Holland, Village of Steger,

SB2254- 412 -LRB102 15486 SMS 20849 b
1Village of Thornton, Village of Tinley Park, Village of
2University Park, and Village of Worth; or (B) if no regional
3capital development plan exists, equally among the communities
4listed in item (A) to be used for capital expenditures or
5public pension payments, or both.
6 (b-8) In lieu of the payments under subsection (b) of this
7Section, from the tax revenue deposited in the State Gaming
8Fund pursuant to riverboat or casino gambling operations
9conducted by an owners licensee under paragraph (1) of
10subsection (e-5) of Section 7, an amount equal to the tax
11revenue generated from the privilege tax imposed by paragraph
12(2) of subsection (a-5) that is to be paid to the City of
13Chicago shall be paid monthly, subject to appropriation by the
14General Assembly, as follows: (1) an amount equal to 0.5% of
15the annual adjusted gross receipts generated by the owners
16licensee under paragraph (1) of subsection (e-5) of Section 7
17to the home rule county in which the owners licensee is located
18for the purpose of enhancing the county's criminal justice
19system; and (2) the balance to the City of Chicago and shall be
20expended or obligated by the City of Chicago for pension
21payments in accordance with Public Act 99-506.
22 (c) Appropriations, as approved by the General Assembly,
23may be made from the State Gaming Fund to the Division Board
24(i) for the administration and enforcement of this Act and the
25Video Gaming Act, (ii) for distribution to the Department of
26State Police and to the Department of Revenue for the

SB2254- 413 -LRB102 15486 SMS 20849 b
1enforcement of this Act and the Video Gaming Act, and (iii) to
2the Department of Human Services for the administration of
3programs to treat problem gambling, including problem gambling
4from sports wagering. The Division's Board's annual
5appropriations request must separately state its funding needs
6for the regulation of gaming authorized under Section 7.7,
7riverboat gaming, casino gaming, video gaming, and sports
8wagering.
9 (c-2) An amount equal to 2% of the adjusted gross receipts
10generated by an organization gaming facility located within a
11home rule county with a population of over 3,000,000
12inhabitants shall be paid, subject to appropriation from the
13General Assembly, from the State Gaming Fund to the home rule
14county in which the organization gaming licensee is located
15for the purpose of enhancing the county's criminal justice
16system.
17 (c-3) Appropriations, as approved by the General Assembly,
18may be made from the tax revenue deposited into the State
19Gaming Fund from organization gaming licensees pursuant to
20this Section for the administration and enforcement of this
21Act.
22 (c-4) After payments required under subsections (b),
23(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
24the tax revenue from organization gaming licensees deposited
25into the State Gaming Fund under this Section, all remaining
26amounts from organization gaming licensees shall be

SB2254- 414 -LRB102 15486 SMS 20849 b
1transferred into the Capital Projects Fund.
2 (c-5) (Blank).
3 (c-10) Each year the General Assembly shall appropriate
4from the General Revenue Fund to the Education Assistance Fund
5an amount equal to the amount paid into the Horse Racing Equity
6Fund pursuant to subsection (c-5) in the prior calendar year.
7 (c-15) After the payments required under subsections (b),
8(c), and (c-5) have been made, an amount equal to 2% of the
9adjusted gross receipts of (1) an owners licensee that
10relocates pursuant to Section 11.2, (2) an owners licensee
11conducting riverboat gambling operations pursuant to an owners
12license that is initially issued after June 25, 1999, or (3)
13the first riverboat gambling operations conducted by a
14licensed manager on behalf of the State under Section 7.3,
15whichever comes first, shall be paid, subject to appropriation
16from the General Assembly, from the State Gaming Fund to each
17home rule county with a population of over 3,000,000
18inhabitants for the purpose of enhancing the county's criminal
19justice system.
20 (c-20) Each year the General Assembly shall appropriate
21from the General Revenue Fund to the Education Assistance Fund
22an amount equal to the amount paid to each home rule county
23with a population of over 3,000,000 inhabitants pursuant to
24subsection (c-15) in the prior calendar year.
25 (c-21) After the payments required under subsections (b),
26(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have

SB2254- 415 -LRB102 15486 SMS 20849 b
1been made, an amount equal to 0.5% of the adjusted gross
2receipts generated by the owners licensee under paragraph (1)
3of subsection (e-5) of Section 7 shall be paid monthly,
4subject to appropriation from the General Assembly, from the
5State Gaming Fund to the home rule county in which the owners
6licensee is located for the purpose of enhancing the county's
7criminal justice system.
8 (c-22) After the payments required under subsections (b),
9(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
10(c-21) have been made, an amount equal to 2% of the adjusted
11gross receipts generated by the owners licensee under
12paragraph (5) of subsection (e-5) of Section 7 shall be paid,
13subject to appropriation from the General Assembly, from the
14State Gaming Fund to the home rule county in which the owners
15licensee is located for the purpose of enhancing the county's
16criminal justice system.
17 (c-25) From July 1, 2013 and each July 1 thereafter
18through July 1, 2019, $1,600,000 shall be transferred from the
19State Gaming Fund to the Chicago State University Education
20Improvement Fund.
21 On July 1, 2020 and each July 1 thereafter, $3,000,000
22shall be transferred from the State Gaming Fund to the Chicago
23State University Education Improvement Fund.
24 (c-30) On July 1, 2013 or as soon as possible thereafter,
25$92,000,000 shall be transferred from the State Gaming Fund to
26the School Infrastructure Fund and $23,000,000 shall be

SB2254- 416 -LRB102 15486 SMS 20849 b
1transferred from the State Gaming Fund to the Horse Racing
2Equity Fund.
3 (c-35) Beginning on July 1, 2013, in addition to any
4amount transferred under subsection (c-30) of this Section,
5$5,530,000 shall be transferred monthly from the State Gaming
6Fund to the School Infrastructure Fund.
7 (d) From time to time, the Division Board shall transfer
8the remainder of the funds generated by this Act into the
9Education Assistance Fund, created by Public Act 86-0018, of
10the State of Illinois.
11 (e) Nothing in this Act shall prohibit the unit of local
12government designated as the home dock of the riverboat from
13entering into agreements with other units of local government
14in this State or in other states to share its portion of the
15tax revenue.
16 (f) To the extent practicable, the Division Board shall
17administer and collect the wagering taxes imposed by this
18Section in a manner consistent with the provisions of Sections
194, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
20and 10 of the Retailers' Occupation Tax Act and Section 3-7 of
21the Uniform Penalty and Interest Act.
22(Source: P.A. 101-31, Article 25, Section 25-910, eff.
236-28-19; 101-31, Article 35, Section 35-55, eff. 6-28-19;
24101-648, eff. 6-30-20.)
25 (230 ILCS 10/13.05)

SB2254- 417 -LRB102 15486 SMS 20849 b
1 Sec. 13.05. Withholding of delinquent child support.
2 (a) From winnings required to be reported to the Internal
3Revenue Service on Form W-2G, an owners licensee or a licensee
4that operates one or more facilities or gaming locations at
5which lawful gambling is authorized as provided in this Act
6shall withhold up to the full amount of winnings necessary to
7pay the winner's past due child support amount as certified by
8the Department of Healthcare and Family Services under Section
910-17.15 of the Illinois Public Aid Code. Amounts withheld
10shall be paid to the Department of Healthcare and Family
11Services by the owners licensee or casino operator licensee,
12as applicable.
13 (b) For withholding of winnings, the licensee shall be
14entitled to an administrative fee not to exceed the lesser of
154% of the total amount of cash winnings paid to the gambling
16winner or $150.
17 (c) In no event may the total amount withheld from the cash
18payout, including the administrative fee, exceed the total
19cash winnings claimed by the obligor. If the cash payout
20claimed is greater than the amount sufficient to satisfy the
21obligor's delinquent child support payments, the licensee
22shall pay the obligor the remaining balance of the payout,
23less the administrative fee authorized by subsection (b) of
24this Section, at the time it is claimed.
25 (d) A licensee who in good faith complies with the
26requirements of this Section shall not be liable to the gaming

SB2254- 418 -LRB102 15486 SMS 20849 b
1winner or any other individual or entity.
2 (e) Upon request of a licensed owner under this Act, an
3agent of the Division Board (such as a gaming special agent
4employed by the Division Board, a State police officer, or a
5revenue agent) shall be responsible for notifying the person
6identified as being delinquent in child support payments that
7the licensed owner is required by law to withhold all or a
8portion of his or her winnings. If given, this notification
9must be provided at the time the winnings are withheld.
10 (f) The provisions of this Section shall be operative on
11and after the date that rules are adopted by the Department of
12Healthcare and Family Services pursuant to Section 10-17.15 of
13the Illinois Public Aid Code.
14 (g) The delinquent child support required to be withheld
15under this Section and the administrative fee under subsection
16(b) of this Section have priority over any secured or
17unsecured claim on cash winnings, except claims for federal or
18State taxes that are required to be withheld under federal or
19State law.
20(Source: P.A. 98-318, eff. 8-12-13.)
21 (230 ILCS 10/14) (from Ch. 120, par. 2414)
22 Sec. 14. Licensees - Records - Reports - Supervision.
23 (a) Licensed owners and organization gaming licensees
24shall keep books and records so as to clearly show the
25following:

SB2254- 419 -LRB102 15486 SMS 20849 b
1 (1) The amount received daily from admission fees.
2 (2) The total amount of gross receipts.
3 (3) The total amount of the adjusted gross receipts.
4 (b) Licensed owners and organization gaming licensees
5shall furnish to the Division Board reports and information as
6the Division Board may require with respect to its activities
7on forms designed and supplied for such purpose by the
8Division Board.
9 (c) The books and records kept by a licensed owner as
10provided by this Section are public records and the
11examination, publication, and dissemination of the books and
12records are governed by the provisions of The Freedom of
13Information Act.
14(Source: P.A. 101-31, eff. 6-28-19.)
15 (230 ILCS 10/15) (from Ch. 120, par. 2415)
16 Sec. 15. Audit of licensee operations. Annually, the
17licensed owner, manager, or organization gaming licensee shall
18transmit to the Division Board an audit of the financial
19transactions and condition of the licensee's or manager's
20total operations. Additionally, within 90 days after the end
21of each quarter of each fiscal year, the licensed owner,
22manager, or organization gaming licensee shall transmit to the
23Division Board a compliance report on engagement procedures
24determined by the Division Board. All audits and compliance
25engagements shall be conducted by certified public accountants

SB2254- 420 -LRB102 15486 SMS 20849 b
1selected by the Division Board. Each certified public
2accountant must be registered in the State of Illinois under
3the Illinois Public Accounting Act. The compensation for each
4certified public accountant shall be paid directly by the
5licensed owner, manager, or organization gaming licensee to
6the certified public accountant.
7(Source: P.A. 101-31, eff. 6-28-19.)
8 (230 ILCS 10/16) (from Ch. 120, par. 2416)
9 Sec. 16. Annual Report of Division Board. The Division
10Board shall make an annual report to the Governor, for the
11period ending December 31 of each year. Included in the report
12shall be an account of the Division Board actions, its
13financial position and results of operation under this Act,
14the practical results attained under this Act and any
15recommendations for legislation which the Division Board deems
16advisable.
17(Source: P.A. 86-1029.)
18 (230 ILCS 10/17) (from Ch. 120, par. 2417)
19 Sec. 17. Administrative procedures. The Illinois
20Administrative Procedure Act shall apply to all administrative
21rules and procedures of the Division Board under this Act and
22the Video Gaming Act, except that: (1) subsection (b) of
23Section 5-10 of the Illinois Administrative Procedure Act does
24not apply to final orders, decisions and opinions of the

SB2254- 421 -LRB102 15486 SMS 20849 b
1Division Board; (2) subsection (a) of Section 5-10 of the
2Illinois Administrative Procedure Act does not apply to forms
3established by the Division Board for use under this Act and or
4the Video Gaming Act; (3) the provisions of Section 10-45 of
5the Illinois Administrative Procedure Act regarding proposals
6for decision are excluded under this Act and the Video Gaming
7Act; and (4) the provisions of subsection (d) of Section 10-65
8of the Illinois Administrative Procedure Act do not apply so
9as to prevent summary suspension of any license pending
10revocation or other action, which suspension shall remain in
11effect unless modified by the Division Board or unless the
12Division's Board's decision is reversed on the merits upon
13judicial review.
14(Source: P.A. 101-31, eff. 6-28-19.)
15 (230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
16 Sec. 17.1. Judicial review.
17 (a) Jurisdiction and venue for the judicial review of a
18final order of the Division Board relating to licensed owners,
19suppliers, organization gaming licensees, and special event
20licenses is vested in the Appellate Court of the judicial
21district in which Sangamon County is located. A petition for
22judicial review of a final order of the Division Board must be
23filed in the Appellate Court, within 35 days from the date that
24a copy of the decision sought to be reviewed was served upon
25the party affected by the decision.

SB2254- 422 -LRB102 15486 SMS 20849 b
1 (b) Judicial review of all other final orders of the
2Division Board shall be conducted in accordance with the
3Administrative Review Law.
4(Source: P.A. 101-31, eff. 6-28-19.)
5 (230 ILCS 10/18) (from Ch. 120, par. 2418)
6 Sec. 18. Prohibited Activities - Penalty.
7 (a) A person is guilty of a Class A misdemeanor for doing
8any of the following:
9 (1) Conducting gambling where wagering is used or to
10 be used without a license issued by the Division Board.
11 (2) Conducting gambling where wagering is permitted
12 other than in the manner specified by Section 11.
13 (b) A person is guilty of a Class B misdemeanor for doing
14any of the following:
15 (1) permitting a person under 21 years to make a
16 wager; or
17 (2) violating paragraph (12) of subsection (a) of
18 Section 11 of this Act.
19 (c) A person wagering or accepting a wager at any location
20outside the riverboat, casino, or organization gaming facility
21in violation of paragraph (1) or (2) of subsection (a) of
22Section 28-1 of the Criminal Code of 2012 is subject to the
23penalties provided in that Section.
24 (d) A person commits a Class 4 felony and, in addition,
25shall be barred for life from gambling operations under the

SB2254- 423 -LRB102 15486 SMS 20849 b
1jurisdiction of the Division Board, if the person does any of
2the following:
3 (1) Offers, promises, or gives anything of value or
4 benefit to a person who is connected with a riverboat or
5 casino owner or organization gaming licensee, including,
6 but not limited to, an officer or employee of a licensed
7 owner, organization gaming licensee, or holder of an
8 occupational license pursuant to an agreement or
9 arrangement or with the intent that the promise or thing
10 of value or benefit will influence the actions of the
11 person to whom the offer, promise, or gift was made in
12 order to affect or attempt to affect the outcome of a
13 gambling game, or to influence official action of an
14 employee of the Division a member of the Board.
15 (2) Solicits or knowingly accepts or receives a
16 promise of anything of value or benefit while the person
17 is connected with a riverboat, casino, or organization
18 gaming facility, including, but not limited to, an officer
19 or employee of a licensed owner or organization gaming
20 licensee, or the holder of an occupational license,
21 pursuant to an understanding or arrangement or with the
22 intent that the promise or thing of value or benefit will
23 influence the actions of the person to affect or attempt
24 to affect the outcome of a gambling game, or to influence
25 official action of an employee of the Division a member of
26 the Board.

SB2254- 424 -LRB102 15486 SMS 20849 b
1 (3) Uses or possesses with the intent to use a device
2 to assist:
3 (i) In projecting the outcome of the game.
4 (ii) In keeping track of the cards played.
5 (iii) In analyzing the probability of the
6 occurrence of an event relating to the gambling game.
7 (iv) In analyzing the strategy for playing or
8 betting to be used in the game except as permitted by
9 the Division Board.
10 (4) Cheats at a gambling game.
11 (5) Manufactures, sells, or distributes any cards,
12 chips, dice, game or device which is intended to be used to
13 violate any provision of this Act.
14 (6) Alters or misrepresents the outcome of a gambling
15 game on which wagers have been made after the outcome is
16 made sure but before it is revealed to the players.
17 (7) Places a bet after acquiring knowledge, not
18 available to all players, of the outcome of the gambling
19 game which is subject of the bet or to aid a person in
20 acquiring the knowledge for the purpose of placing a bet
21 contingent on that outcome.
22 (8) Claims, collects, or takes, or attempts to claim,
23 collect, or take, money or anything of value in or from the
24 gambling games, with intent to defraud, without having
25 made a wager contingent on winning a gambling game, or
26 claims, collects, or takes an amount of money or thing of

SB2254- 425 -LRB102 15486 SMS 20849 b
1 value of greater value than the amount won.
2 (9) Uses counterfeit chips or tokens in a gambling
3 game.
4 (10) Possesses any key or device designed for the
5 purpose of opening, entering, or affecting the operation
6 of a gambling game, drop box, or an electronic or
7 mechanical device connected with the gambling game or for
8 removing coins, tokens, chips or other contents of a
9 gambling game. This paragraph (10) does not apply to a
10 gambling licensee or employee of a gambling licensee
11 acting in furtherance of the employee's employment.
12 (e) The possession of more than one of the devices
13described in subsection (d), paragraphs (3), (5), or (10)
14permits a rebuttable presumption that the possessor intended
15to use the devices for cheating.
16 (f) A person under the age of 21 who, except as authorized
17under paragraph (10) of Section 11, enters upon a riverboat or
18in a casino or organization gaming facility commits a petty
19offense and is subject to a fine of not less than $100 or more
20than $250 for a first offense and of not less than $200 or more
21than $500 for a second or subsequent offense.
22 An action to prosecute any crime occurring on a riverboat
23shall be tried in the county of the dock at which the riverboat
24is based. An action to prosecute any crime occurring in a
25casino or organization gaming facility shall be tried in the
26county in which the casino or organization gaming facility is

SB2254- 426 -LRB102 15486 SMS 20849 b
1located.
2(Source: P.A. 101-31, eff. 6-28-19.)
3 (230 ILCS 10/18.1)
4 Sec. 18.1. Distribution of certain fines. If a fine is
5imposed on an owners licensee or an organization gaming
6licensee for knowingly sending marketing or promotional
7materials to any person placed on the self-exclusion list,
8then the Division Board shall distribute an amount equal to
915% of the fine imposed to the unit of local government in
10which the casino, riverboat, or organization gaming facility
11is located for the purpose of awarding grants to non-profit
12entities that assist gambling addicts.
13(Source: P.A. 101-31, eff. 6-28-19.)
14 (230 ILCS 10/22) (from Ch. 120, par. 2422)
15 Sec. 22. Criminal history record information. Whenever the
16Division Board is authorized or required by law to consider
17some aspect of criminal history record information for the
18purpose of carrying out its statutory powers and
19responsibilities, the Division Board shall, in the form and
20manner required by the Department of State Police and the
21Federal Bureau of Investigation, cause to be conducted a
22criminal history record investigation to obtain any
23information currently or thereafter contained in the files of
24the Department of State Police or the Federal Bureau of

SB2254- 427 -LRB102 15486 SMS 20849 b
1Investigation, including, but not limited to, civil, criminal,
2and latent fingerprint databases. Each applicant for
3occupational licensing under Section 9 or key person as
4defined by the Division Board in administrative rules shall
5submit his or her fingerprints to the Department of State
6Police in the form and manner prescribed by the Department of
7State Police. These fingerprints shall be checked against the
8fingerprint records now and hereafter filed in the Department
9of State Police and Federal Bureau of Investigation criminal
10history records databases, including, but not limited to,
11civil, criminal, and latent fingerprint databases. The
12Department of State Police shall charge a fee for conducting
13the criminal history records check, which shall be deposited
14in the State Police Services Fund and shall not exceed the
15actual cost of the records check. The Department of State
16Police shall provide, on the Division's Board's request,
17information concerning any criminal charges, and their
18disposition, currently or thereafter filed against any
19applicant, key person, or holder of any license or for
20determinations of suitability. Information obtained as a
21result of an investigation under this Section shall be used in
22determining eligibility for any license. Upon request and
23payment of fees in conformance with the requirements of
24Section 2605-400 of the Department of State Police Law (20
25ILCS 2605/2605-400), the Department of State Police is
26authorized to furnish, pursuant to positive identification,

SB2254- 428 -LRB102 15486 SMS 20849 b
1such information contained in State files as is necessary to
2fulfill the request.
3(Source: P.A. 101-597, eff. 12-6-19.)
4 Section 130. The Video Gaming Act is amended by changing
5Sections 5, 15, 20, 25, 26, 35, 43, 45, 50, 57, 58, 60, 78, 79,
679.5, 80, and 85 as follows:
7 (230 ILCS 40/5)
8 Sec. 5. Definitions. As used in this Act:
9 "Board" means the Illinois Gaming Board.
10 "Credit" means one, 5, 10, or 25 cents either won or
11purchased by a player.
12 "Distributor" means an individual, partnership,
13corporation, or limited liability company licensed under this
14Act to buy, sell, lease, or distribute video gaming terminals
15or major components or parts of video gaming terminals to or
16from terminal operators.
17 "Director" means the Director of Video Gaming of the
18Department of Lottery and Gaming.
19 "Division" means the Division of Video Gaming of the
20Department of Lottery and Gaming.
21 "Electronic card" means a card purchased from a licensed
22establishment, licensed fraternal establishment, licensed
23veterans establishment, licensed truck stop establishment, or
24licensed large truck stop establishment for use in that

SB2254- 429 -LRB102 15486 SMS 20849 b
1establishment as a substitute for cash in the conduct of
2gaming on a video gaming terminal.
3 "Electronic voucher" means a voucher printed by an
4electronic video game machine that is redeemable in the
5licensed establishment for which it was issued.
6 "In-location bonus jackpot" means one or more video gaming
7terminals at a single licensed establishment that allows for
8wagers placed on such video gaming terminals to contribute to
9a cumulative maximum jackpot of up to $10,000.
10 "Terminal operator" means an individual, partnership,
11corporation, or limited liability company that is licensed
12under this Act and that owns, services, and maintains video
13gaming terminals for placement in licensed establishments,
14licensed truck stop establishments, licensed large truck stop
15establishments, licensed fraternal establishments, or licensed
16veterans establishments.
17 "Licensed technician" means an individual who is licensed
18under this Act to repair, service, and maintain video gaming
19terminals.
20 "Licensed terminal handler" means a person, including but
21not limited to an employee or independent contractor working
22for a manufacturer, distributor, supplier, technician, or
23terminal operator, who is licensed under this Act to possess
24or control a video gaming terminal or to have access to the
25inner workings of a video gaming terminal. A licensed terminal
26handler does not include an individual, partnership,

SB2254- 430 -LRB102 15486 SMS 20849 b
1corporation, or limited liability company defined as a
2manufacturer, distributor, supplier, technician, or terminal
3operator under this Act.
4 "Manufacturer" means an individual, partnership,
5corporation, or limited liability company that is licensed
6under this Act and that manufactures or assembles video gaming
7terminals.
8 "Supplier" means an individual, partnership, corporation,
9or limited liability company that is licensed under this Act
10to supply major components or parts to video gaming terminals
11to licensed terminal operators.
12 "Net terminal income" means money put into a video gaming
13terminal minus credits paid out to players.
14 "Video gaming terminal" means any electronic video game
15machine that, upon insertion of cash, electronic cards or
16vouchers, or any combination thereof, is available to play or
17simulate the play of a video game, including but not limited to
18video poker, line up, and blackjack, as authorized by the
19Division Board utilizing a video display and microprocessors
20in which the player may receive free games or credits that can
21be redeemed for cash. The term does not include a machine that
22directly dispenses coins, cash, or tokens or is for amusement
23purposes only.
24 "Licensed establishment" means any licensed retail
25establishment where alcoholic liquor is drawn, poured, mixed,
26or otherwise served for consumption on the premises, whether

SB2254- 431 -LRB102 15486 SMS 20849 b
1the establishment operates on a nonprofit or for-profit basis.
2"Licensed establishment" includes any such establishment that
3has a contractual relationship with an inter-track wagering
4location licensee licensed under the Illinois Horse Racing Act
5of 1975, provided any contractual relationship shall not
6include any transfer or offer of revenue from the operation of
7video gaming under this Act to any licensee licensed under the
8Illinois Horse Racing Act of 1975. Provided, however, that the
9licensed establishment that has such a contractual
10relationship with an inter-track wagering location licensee
11may not, itself, be (i) an inter-track wagering location
12licensee, (ii) the corporate parent or subsidiary of any
13licensee licensed under the Illinois Horse Racing Act of 1975,
14or (iii) the corporate subsidiary of a corporation that is
15also the corporate parent or subsidiary of any licensee
16licensed under the Illinois Horse Racing Act of 1975.
17"Licensed establishment" does not include a facility operated
18by an organization licensee, an inter-track wagering licensee,
19or an inter-track wagering location licensee licensed under
20the Illinois Horse Racing Act of 1975 or a riverboat licensed
21under the Illinois Gambling Act, except as provided in this
22paragraph. The changes made to this definition by Public Act
2398-587 are declarative of existing law.
24 "Licensed fraternal establishment" means the location
25where a qualified fraternal organization that derives its
26charter from a national fraternal organization regularly

SB2254- 432 -LRB102 15486 SMS 20849 b
1meets.
2 "Licensed veterans establishment" means the location where
3a qualified veterans organization that derives its charter
4from a national veterans organization regularly meets.
5 "Licensed truck stop establishment" means a facility (i)
6that is at least a 3-acre facility with a convenience store,
7(ii) with separate diesel islands for fueling commercial motor
8vehicles, (iii) that sells at retail more than 10,000 gallons
9of diesel or biodiesel fuel per month, and (iv) with parking
10spaces for commercial motor vehicles. "Commercial motor
11vehicles" has the same meaning as defined in Section 18b-101
12of the Illinois Vehicle Code. The requirement of item (iii) of
13this paragraph may be met by showing that estimated future
14sales or past sales average at least 10,000 gallons per month.
15 "Licensed large truck stop establishment" means a facility
16located within 3 road miles from a freeway interchange, as
17measured in accordance with the Department of Transportation's
18rules regarding the criteria for the installation of business
19signs: (i) that is at least a 3-acre facility with a
20convenience store, (ii) with separate diesel islands for
21fueling commercial motor vehicles, (iii) that sells at retail
22more than 50,000 gallons of diesel or biodiesel fuel per
23month, and (iv) with parking spaces for commercial motor
24vehicles. "Commercial motor vehicles" has the same meaning as
25defined in Section 18b-101 of the Illinois Vehicle Code. The
26requirement of item (iii) of this paragraph may be met by

SB2254- 433 -LRB102 15486 SMS 20849 b
1showing that estimated future sales or past sales average at
2least 50,000 gallons per month.
3(Source: P.A. 101-31, eff. 6-28-19.)
4 (230 ILCS 40/15)
5 Sec. 15. Minimum requirements for licensing and
6registration. Every video gaming terminal offered for play
7shall first be tested and approved pursuant to the rules of the
8Division Board, and each video gaming terminal offered in this
9State for play shall conform to an approved model. For the
10examination of video gaming machines and associated equipment
11as required by this Section, the Division Board shall utilize
12the services of independent outside testing laboratories that
13have been accredited in accordance with ISO/IEC 17025 by an
14accreditation body that is a signatory to the International
15Laboratory Accreditation Cooperation Mutual Recognition
16Agreement signifying they are qualified to perform such
17examinations. Notwithstanding any law to the contrary, the
18Division Board shall consider the licensing of independent
19outside testing laboratory applicants in accordance with
20procedures established by the Division Board by rule. The
21Board shall not withhold its approval of an independent
22outside testing laboratory license applicant that has been
23accredited as required by this Section and is licensed in
24gaming jurisdictions comparable to Illinois. Upon the
25finalization of required rules, the Division Board shall

SB2254- 434 -LRB102 15486 SMS 20849 b
1license independent testing laboratories and accept the test
2reports of any licensed testing laboratory of the video gaming
3machine's or associated equipment manufacturer's choice,
4notwithstanding the existence of contracts between the
5Division Board and any independent testing laboratory. Every
6video gaming terminal offered in this State for play must meet
7minimum standards approved by the Division Board. Each
8approved model shall, at a minimum, meet the following
9criteria:
10 (1) It must conform to all requirements of federal law
11 and regulations, including FCC Class A Emissions
12 Standards.
13 (2) It must theoretically pay out a mathematically
14 demonstrable percentage during the expected lifetime of
15 the machine of all amounts played, which must not be less
16 than 80%. The Division Board shall establish a maximum
17 payout percentage for approved models by rule. Video
18 gaming terminals that may be affected by skill must meet
19 this standard when using a method of play that will
20 provide the greatest return to the player over a period of
21 continuous play.
22 (3) It must use a random selection process to
23 determine the outcome of each play of a game. The random
24 selection process must meet 99% confidence limits using a
25 standard chi-squared test for (randomness) goodness of
26 fit.

SB2254- 435 -LRB102 15486 SMS 20849 b
1 (4) It must display an accurate representation of the
2 game outcome.
3 (5) It must not automatically alter pay tables or any
4 function of the video gaming terminal based on internal
5 computation of hold percentage or have any means of
6 manipulation that affects the random selection process or
7 probabilities of winning a game.
8 (6) It must not be adversely affected by static
9 discharge or other electromagnetic interference.
10 (7) It must be capable of detecting and displaying the
11 following conditions during idle states or on demand:
12 power reset; door open; and door just closed.
13 (8) It must have the capacity to display complete play
14 history (outcome, intermediate play steps, credits
15 available, bets placed, credits paid, and credits cashed
16 out) for the most recent game played and 10 games prior
17 thereto.
18 (9) The theoretical payback percentage of a video
19 gaming terminal must not be capable of being changed
20 without making a hardware or software change in the video
21 gaming terminal, either on site or via the central
22 communications system.
23 (10) Video gaming terminals must be designed so that
24 replacement of parts or modules required for normal
25 maintenance does not necessitate replacement of the
26 electromechanical meters.

SB2254- 436 -LRB102 15486 SMS 20849 b
1 (11) It must have nonresettable meters housed in a
2 locked area of the terminal that keep a permanent record
3 of all cash inserted into the machine, all winnings made
4 by the terminal printer, credits played in for video
5 gaming terminals, and credits won by video gaming players.
6 The video gaming terminal must provide the means for
7 on-demand display of stored information as determined by
8 the Division Board.
9 (12) Electronically stored meter information required
10 by this Section must be preserved for a minimum of 180 days
11 after a power loss to the service.
12 (13) It must have one or more mechanisms that accept
13 cash in the form of bills. The mechanisms shall be
14 designed to prevent obtaining credits without paying by
15 stringing, slamming, drilling, or other means. If such
16 attempts at physical tampering are made, the video gaming
17 terminal shall suspend itself from operating until reset.
18 (14) It shall have accounting software that keeps an
19 electronic record which includes, but is not limited to,
20 the following: total cash inserted into the video gaming
21 terminal; the value of winning tickets claimed by players;
22 the total credits played; the total credits awarded by a
23 video gaming terminal; and pay back percentage credited to
24 players of each video game.
25 (15) It shall be linked by a central communications
26 system to provide auditing program information as approved

SB2254- 437 -LRB102 15486 SMS 20849 b
1 by the Division Board. The central communications system
2 shall use a standard industry protocol, as defined by the
3 Gaming Standards Association, and shall have the
4 functionality to enable the Division Board or its designee
5 to activate or deactivate individual gaming devices from
6 the central communications system. In no event may the
7 communications system approved by the Division Board limit
8 participation to only one manufacturer of video gaming
9 terminals by either the cost in implementing the necessary
10 program modifications to communicate or the inability to
11 communicate with the central communications system.
12 (16) The Division Board, in its discretion, may
13 require video gaming terminals to display Amber Alert
14 messages if the Division Board makes a finding that it
15 would be economically and technically feasible and pose no
16 risk to the integrity and security of the central
17 communications system and video gaming terminals.
18 Licensed terminal handlers shall have access to video
19gaming terminals, including, but not limited to, logic door
20access, without the physical presence or supervision of the
21Division Board or its agent to perform, in coordination with
22and with project approval from the central communication
23system provider:
24 (i) the clearing of the random access memory and
25 reprogramming of the video gaming terminal;
26 (ii) the installation of new video gaming terminal

SB2254- 438 -LRB102 15486 SMS 20849 b
1 software and software upgrades that have been approved by
2 the Division Board;
3 (iii) the placement, connection to the central
4 communication system, and go-live operation of video
5 gaming terminals at a licensed establishment, licensed
6 truck stop establishment, licensed large truck stop
7 establishment, licensed fraternal establishment, or
8 licensed veterans establishment;
9 (iv) the repair and maintenance of a video gaming
10 terminal located at a licensed establishment, licensed
11 truck stop establishment, licensed large truck stop
12 establishment, licensed fraternal establishment, or
13 licensed veterans establishment, including, but not
14 limited to, the replacement of the video gaming terminal
15 with a new video gaming terminal;
16 (v) the temporary movement, disconnection,
17 replacement, and reconnection of video gaming terminals to
18 allow for physical improvements and repairs at a licensed
19 establishment, licensed truck stop establishment, licensed
20 large truck stop establishment, licensed fraternal
21 establishment, or licensed veterans establishment, such as
22 replacement of flooring, interior repairs, and other
23 similar activities; and
24 (vi) such other functions as the Division Board may
25 otherwise authorize.
26 The Division Board shall, at a licensed terminal

SB2254- 439 -LRB102 15486 SMS 20849 b
1operator's expense, cause all keys and other required devices
2to be provided to a terminal operator necessary to allow the
3licensed terminal handler access to the logic door to the
4terminal operator's video gaming terminals.
5 The Division Board may adopt rules to establish additional
6criteria to preserve the integrity and security of video
7gaming in this State. The central communications system vendor
8may be licensed as a video gaming terminal manufacturer or a
9video gaming terminal distributor, or both, but in no event
10shall the central communications system vendor be licensed as
11a video gaming terminal operator.
12 The Division Board shall not permit the development of
13information or the use by any licensee of gaming device or
14individual game performance data. Nothing in this Act shall
15inhibit or prohibit the Division Board from the use of gaming
16device or individual game performance data in its regulatory
17duties. The Division Board shall adopt rules to ensure that
18all licensees are treated and all licensees act in a
19non-discriminatory manner and develop processes and penalties
20to enforce those rules.
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 40/20)
23 Sec. 20. Video gaming terminal payouts.
24 (a) A video gaming terminal may not directly dispense
25coins, cash, tokens, or any other article of exchange or value

SB2254- 440 -LRB102 15486 SMS 20849 b
1except for receipt tickets. Tickets shall be dispensed by
2pressing the ticket dispensing button on the video gaming
3terminal at the end of one's turn or play. The ticket shall
4indicate the total amount of credits and the cash award, the
5time of day in a 24-hour format showing hours and minutes, the
6date, the terminal serial number, the sequential number of the
7ticket, and an encrypted validation number from which the
8validity of the prize may be determined. The player shall turn
9in this ticket to the appropriate person at the licensed
10establishment, licensed truck stop establishment, licensed
11large truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment to receive
13the cash award.
14 (b) The cost of the credit shall be one cent, 5 cents, 10
15cents, 25 cents, or $1, and the maximum wager played per hand
16shall not exceed $4. No cash award for the maximum wager on any
17individual hand shall exceed $1,199. No cash award for the
18maximum wager on a jackpot, progressive or otherwise, shall
19exceed $10,000.
20 (c) In-location bonus jackpot games are hereby authorized.
21The Board shall adopt emergency rules pursuant to Section 5-45
22of the Illinois Administrative Procedure Act to implement this
23subsection (c) within 90 days after the effective date of this
24amendatory Act of the 101st General Assembly. Jackpot winnings
25from in-location progressive games shall be paid by the
26terminal operator to the player not later than 3 days after

SB2254- 441 -LRB102 15486 SMS 20849 b
1winning such a jackpot.
2(Source: P.A. 101-31, eff. 6-28-19.)
3 (230 ILCS 40/25)
4 Sec. 25. Restriction of licensees.
5 (a) Manufacturer. A person may not be licensed as a
6manufacturer of a video gaming terminal in Illinois unless the
7person has a valid manufacturer's license issued under this
8Act. A manufacturer may only sell video gaming terminals for
9use in Illinois to persons having a valid distributor's
10license.
11 (b) Distributor. A person may not sell, distribute, or
12lease or market a video gaming terminal in Illinois unless the
13person has a valid distributor's license issued under this
14Act. A distributor may only sell video gaming terminals for
15use in Illinois to persons having a valid distributor's or
16terminal operator's license.
17 (c) Terminal operator. A person may not own, maintain, or
18place a video gaming terminal unless he has a valid terminal
19operator's license issued under this Act. A terminal operator
20may only place video gaming terminals for use in Illinois in
21licensed establishments, licensed truck stop establishments,
22licensed large truck stop establishments, licensed fraternal
23establishments, and licensed veterans establishments. No
24terminal operator may give anything of value, including but
25not limited to a loan or financing arrangement, to a licensed

SB2254- 442 -LRB102 15486 SMS 20849 b
1establishment, licensed truck stop establishment, licensed
2large truck stop establishment, licensed fraternal
3establishment, or licensed veterans establishment as any
4incentive or inducement to locate video terminals in that
5establishment. Of the after-tax profits from a video gaming
6terminal, 50% shall be paid to the terminal operator and 50%
7shall be paid to the licensed establishment, licensed truck
8stop establishment, licensed large truck stop establishment,
9licensed fraternal establishment, or licensed veterans
10establishment, notwithstanding any agreement to the contrary.
11A video terminal operator that violates one or more
12requirements of this subsection is guilty of a Class 4 felony
13and is subject to termination of his or her license by the
14Division Board.
15 (d) Licensed technician. A person may not service,
16maintain, or repair a video gaming terminal in this State
17unless he or she (1) has a valid technician's license issued
18under this Act, (2) is a terminal operator, or (3) is employed
19by a terminal operator, distributor, or manufacturer.
20 (d-5) Licensed terminal handler. No person, including, but
21not limited to, an employee or independent contractor working
22for a manufacturer, distributor, supplier, technician, or
23terminal operator licensed pursuant to this Act, shall have
24possession or control of a video gaming terminal, or access to
25the inner workings of a video gaming terminal, unless that
26person possesses a valid terminal handler's license issued

SB2254- 443 -LRB102 15486 SMS 20849 b
1under this Act.
2 (e) Licensed establishment. No video gaming terminal may
3be placed in any licensed establishment, licensed veterans
4establishment, licensed truck stop establishment, licensed
5large truck stop establishment, or licensed fraternal
6establishment unless the owner or agent of the owner of the
7licensed establishment, licensed veterans establishment,
8licensed truck stop establishment, licensed large truck stop
9establishment, or licensed fraternal establishment has entered
10into a written use agreement with the terminal operator for
11placement of the terminals. A copy of the use agreement shall
12be on file in the terminal operator's place of business and
13available for inspection by individuals authorized by the
14Division Board. A licensed establishment, licensed truck stop
15establishment, licensed veterans establishment, or licensed
16fraternal establishment may operate up to 6 video gaming
17terminals on its premises at any time. A licensed large truck
18stop establishment may operate up to 10 video gaming terminals
19on its premises at any time.
20 (f) (Blank).
21 (g) Financial interest restrictions. As used in this Act,
22"substantial interest" in a partnership, a corporation, an
23organization, an association, a business, or a limited
24liability company means:
25 (A) When, with respect to a sole proprietorship, an
26 individual or his or her spouse owns, operates, manages,

SB2254- 444 -LRB102 15486 SMS 20849 b
1 or conducts, directly or indirectly, the organization,
2 association, or business, or any part thereof; or
3 (B) When, with respect to a partnership, the
4 individual or his or her spouse shares in any of the
5 profits, or potential profits, of the partnership
6 activities; or
7 (C) When, with respect to a corporation, an individual
8 or his or her spouse is an officer or director, or the
9 individual or his or her spouse is a holder, directly or
10 beneficially, of 5% or more of any class of stock of the
11 corporation; or
12 (D) When, with respect to an organization not covered
13 in (A), (B) or (C) above, an individual or his or her
14 spouse is an officer or manages the business affairs, or
15 the individual or his or her spouse is the owner of or
16 otherwise controls 10% or more of the assets of the
17 organization; or
18 (E) When an individual or his or her spouse furnishes
19 5% or more of the capital, whether in cash, goods, or
20 services, for the operation of any business, association,
21 or organization during any calendar year; or
22 (F) When, with respect to a limited liability company,
23 an individual or his or her spouse is a member, or the
24 individual or his or her spouse is a holder, directly or
25 beneficially, of 5% or more of the membership interest of
26 the limited liability company.

SB2254- 445 -LRB102 15486 SMS 20849 b
1 For purposes of this subsection (g), "individual" includes
2all individuals or their spouses whose combined interest would
3qualify as a substantial interest under this subsection (g)
4and whose activities with respect to an organization,
5association, or business are so closely aligned or coordinated
6as to constitute the activities of a single entity.
7 (h) Location restriction. A licensed establishment,
8licensed truck stop establishment, licensed large truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment that is (i) located within 1,000 feet
11of a facility operated by an organization licensee licensed
12under the Illinois Horse Racing Act of 1975 or the home dock of
13a riverboat licensed under the Illinois Gambling Act or (ii)
14located within 100 feet of a school or a place of worship under
15the Religious Corporation Act, is ineligible to operate a
16video gaming terminal. The location restrictions in this
17subsection (h) do not apply if (A) a facility operated by an
18organization licensee, a school, or a place of worship moves
19to or is established within the restricted area after a
20licensed establishment, licensed truck stop establishment,
21licensed large truck stop establishment, licensed fraternal
22establishment, or licensed veterans establishment becomes
23licensed under this Act or (B) a school or place of worship
24moves to or is established within the restricted area after a
25licensed establishment, licensed truck stop establishment,
26licensed large truck stop establishment, licensed fraternal

SB2254- 446 -LRB102 15486 SMS 20849 b
1establishment, or licensed veterans establishment obtains its
2original liquor license. For the purpose of this subsection,
3"school" means an elementary or secondary public school, or an
4elementary or secondary private school registered with or
5recognized by the State Board of Education.
6 Notwithstanding the provisions of this subsection (h), the
7Division Board may waive the requirement that a licensed
8establishment, licensed truck stop establishment, licensed
9large truck stop establishment, licensed fraternal
10establishment, or licensed veterans establishment not be
11located within 1,000 feet from a facility operated by an
12organization licensee licensed under the Illinois Horse Racing
13Act of 1975 or the home dock of a riverboat licensed under the
14Illinois Gambling Act. The Division Board shall not grant such
15waiver if there is any common ownership or control, shared
16business activity, or contractual arrangement of any type
17between the establishment and the organization licensee or
18owners licensee of a riverboat. The Division Board shall adopt
19rules to implement the provisions of this paragraph.
20 (h-5) Restrictions on licenses in malls. The Division
21Board shall not grant an application to become a licensed
22video gaming location if the Division Board determines that
23granting the application would more likely than not cause a
24terminal operator, individually or in combination with other
25terminal operators, licensed video gaming location, or other
26person or entity, to operate the video gaming terminals in 2 or

SB2254- 447 -LRB102 15486 SMS 20849 b
1more licensed video gaming locations as a single video gaming
2operation.
3 (1) In making determinations under this subsection
4 (h-5), factors to be considered by the Division Board
5 shall include, but not be limited to, the following:
6 (A) the physical aspects of the location;
7 (B) the ownership, control, or management of the
8 location;
9 (C) any arrangements, understandings, or
10 agreements, written or otherwise, among or involving
11 any persons or entities that involve the conducting of
12 any video gaming business or the sharing of costs or
13 revenues; and
14 (D) the manner in which any terminal operator or
15 other related entity markets, advertises, or otherwise
16 describes any location or locations to any other
17 person or entity or to the public.
18 (2) The Division Board shall presume, subject to
19 rebuttal, that the granting of an application to become a
20 licensed video gaming location within a mall will cause a
21 terminal operator, individually or in combination with
22 other persons or entities, to operate the video gaming
23 terminals in 2 or more licensed video gaming locations as
24 a single video gaming operation if the Division Board
25 determines that granting the license would create a local
26 concentration of licensed video gaming locations.

SB2254- 448 -LRB102 15486 SMS 20849 b
1 For the purposes of this subsection (h-5):
2 "Mall" means a building, or adjoining or connected
3buildings, containing 4 or more separate locations.
4 "Video gaming operation" means the conducting of video
5gaming and all related activities.
6 "Location" means a space within a mall containing a
7separate business, a place for a separate business, or a place
8subject to a separate leasing arrangement by the mall owner.
9 "Licensed video gaming location" means a licensed
10establishment, licensed fraternal establishment, licensed
11veterans establishment, licensed truck stop establishment, or
12licensed large truck stop.
13 "Local concentration of licensed video gaming locations"
14means that the combined number of licensed video gaming
15locations within a mall exceed half of the separate locations
16within the mall.
17 (i) Undue economic concentration. In addition to
18considering all other requirements under this Act, in deciding
19whether to approve the operation of video gaming terminals by
20a terminal operator in a location, the Division Board shall
21consider the impact of any economic concentration of such
22operation of video gaming terminals. The Division Board shall
23not allow a terminal operator to operate video gaming
24terminals if the Division Board determines such operation will
25result in undue economic concentration. For purposes of this
26Section, "undue economic concentration" means that a terminal

SB2254- 449 -LRB102 15486 SMS 20849 b
1operator would have such actual or potential influence over
2video gaming terminals in Illinois as to:
3 (1) substantially impede or suppress competition among
4 terminal operators;
5 (2) adversely impact the economic stability of the
6 video gaming industry in Illinois; or
7 (3) negatively impact the purposes of the Video Gaming
8 Act.
9 The Division Board shall adopt rules concerning undue
10economic concentration with respect to the operation of video
11gaming terminals in Illinois. The rules shall include, but not
12be limited to, (i) limitations on the number of video gaming
13terminals operated by any terminal operator within a defined
14geographic radius and (ii) guidelines on the discontinuation
15of operation of any such video gaming terminals the Division
16Board determines will cause undue economic concentration.
17 (j) The provisions of the Illinois Antitrust Act are fully
18and equally applicable to the activities of any licensee under
19this Act.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 40/26)
22 Sec. 26. Residency requirement. Each licensed distributor,
23terminal operator, and person with a substantial interest in a
24licensed distributor or terminal operator must be an Illinois
25resident. However, if an out-of-state distributor or terminal

SB2254- 450 -LRB102 15486 SMS 20849 b
1operator has performed its respective business within Illinois
2for at least 48 months prior to the effective date of this Act,
3the out-of-state person may be eligible for licensing under
4this Act, upon application to and approval of the Division
5Board. The Division Board shall adopt rules to implement this
6Section.
7(Source: P.A. 96-38, eff. 7-13-09.)
8 (230 ILCS 40/35)
9 Sec. 35. Display of license; confiscation; violation as
10felony.
11 (a) Each video gaming terminal shall be licensed by the
12Division Board before placement or operation on the premises
13of a licensed establishment, licensed truck stop
14establishment, licensed large truck stop establishment,
15licensed fraternal establishment, or licensed veterans
16establishment. The license of each video gaming terminal shall
17be maintained at the location where the video gaming terminal
18is operated. Failure to do so is a petty offense with a fine
19not to exceed $100. Any licensed establishment, licensed truck
20stop establishment, licensed large truck stop establishment,
21licensed fraternal establishment, or licensed veterans
22establishment used for the conduct of gambling games in
23violation of this Act shall be considered a gambling place in
24violation of Section 28-3 of the Criminal Code of 2012. Every
25gambling device found in a licensed establishment, licensed

SB2254- 451 -LRB102 15486 SMS 20849 b
1truck stop establishment, licensed large truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment operating gambling games in violation
4of this Act shall be subject to seizure, confiscation, and
5destruction as provided in Section 28-5 of the Criminal Code
6of 2012. Any license issued under the Liquor Control Act of
71934 to any owner or operator of a licensed establishment,
8licensed truck stop establishment, licensed large truck stop
9establishment, licensed fraternal establishment, or licensed
10veterans establishment that operates or permits the operation
11of a video gaming terminal within its establishment in
12violation of this Act shall be immediately revoked. No person
13may own, operate, have in his or her possession or custody or
14under his or her control, or permit to be kept in any place
15under his or her possession or control, any device that awards
16credits and contains a circuit, meter, or switch capable of
17removing and recording the removal of credits when the award
18of credits is dependent upon chance.
19 Nothing in this Section shall be deemed to prohibit the
20use of a game device only if the game device is used in an
21activity that is not gambling under subsection (b) of Section
2228-1 of the Criminal Code of 2012.
23 A violation of this Section is a Class 4 felony. All
24devices that are owned, operated, or possessed in violation of
25this Section are hereby declared to be public nuisances and
26shall be subject to seizure, confiscation, and destruction as

SB2254- 452 -LRB102 15486 SMS 20849 b
1provided in Section 28-5 of the Criminal Code of 2012.
2 The provisions of this Section do not apply to devices or
3electronic video game terminals licensed pursuant to this Act.
4A video gaming terminal operated for amusement only and
5bearing a valid amusement tax sticker shall not be subject to
6this Section until 30 days after the Division Board
7establishes that the central communications system is
8functional.
9 (b) (1) The odds of winning each video game shall be posted
10on or near each video gaming terminal. The manner in which the
11odds are calculated and how they are posted shall be
12determined by the Division Board by rule.
13 (2) No video gaming terminal licensed under this Act may
14be played except during the legal hours of operation allowed
15for the consumption of alcoholic beverages at the licensed
16establishment, licensed fraternal establishment, or licensed
17veterans establishment. A licensed establishment, licensed
18fraternal establishment, or licensed veterans establishment
19that violates this subsection is subject to termination of its
20license by the Division Board.
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 40/43)
23 Sec. 43. Notice of alleged violation of Section 40. In all
24instances of an alleged violation of Section 40, the Division
25Board or its agents or designees shall provide written notice

SB2254- 453 -LRB102 15486 SMS 20849 b
1of the alleged violation to the affected licensed
2establishment, licensed fraternal establishment, licensed
3veterans establishment, or licensed truck stop establishment
4within 15 days after the alleged occurrence of the violation.
5(Source: P.A. 101-318, eff. 8-9-19.)
6 (230 ILCS 40/45)
7 Sec. 45. Issuance of license.
8 (a) The burden is upon each applicant to demonstrate his
9suitability for licensure. Each video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed large truck stop establishment, licensed fraternal
13establishment, and licensed veterans establishment shall be
14licensed by the Division Board. The Division Board may issue
15or deny a license under this Act to any person pursuant to the
16same criteria set forth in Section 9 of the Illinois Gambling
17Act.
18 (a-5) The Division Board shall not grant a license to a
19person who has facilitated, enabled, or participated in the
20use of coin-operated devices for gambling purposes or who is
21under the significant influence or control of such a person.
22For the purposes of this Act, "facilitated, enabled, or
23participated in the use of coin-operated amusement devices for
24gambling purposes" means that the person has been convicted of
25any violation of Article 28 of the Criminal Code of 1961 or the

SB2254- 454 -LRB102 15486 SMS 20849 b
1Criminal Code of 2012. If there is pending legal action
2against a person for any such violation, then the Division
3Board shall delay the licensure of that person until the legal
4action is resolved.
5 (b) Each person seeking and possessing a license as a
6video gaming terminal manufacturer, distributor, supplier,
7operator, handler, licensed establishment, licensed truck stop
8establishment, licensed large truck stop establishment,
9licensed fraternal establishment, or licensed veterans
10establishment shall submit to a background investigation
11conducted by the Division Board with the assistance of the
12State Police or other law enforcement. To the extent that the
13corporate structure of the applicant allows, the background
14investigation shall include any or all of the following as the
15Division Board deems appropriate or as provided by rule for
16each category of licensure: (i) each beneficiary of a trust,
17(ii) each partner of a partnership, (iii) each member of a
18limited liability company, (iv) each director and officer of a
19publicly or non-publicly held corporation, (v) each
20stockholder of a non-publicly held corporation, (vi) each
21stockholder of 5% or more of a publicly held corporation, or
22(vii) each stockholder of 5% or more in a parent or subsidiary
23corporation.
24 (c) Each person seeking and possessing a license as a
25video gaming terminal manufacturer, distributor, supplier,
26operator, handler, licensed establishment, licensed truck stop

SB2254- 455 -LRB102 15486 SMS 20849 b
1establishment, licensed large truck stop establishment,
2licensed fraternal establishment, or licensed veterans
3establishment shall disclose the identity of every person,
4association, trust, corporation, or limited liability company
5having a greater than 1% direct or indirect pecuniary interest
6in the video gaming terminal operation for which the license
7is sought. If the disclosed entity is a trust, the application
8shall disclose the names and addresses of the beneficiaries;
9if a corporation, the names and addresses of all stockholders
10and directors; if a limited liability company, the names and
11addresses of all members; or if a partnership, the names and
12addresses of all partners, both general and limited.
13 (d) No person may be licensed as a video gaming terminal
14manufacturer, distributor, supplier, operator, handler,
15licensed establishment, licensed truck stop establishment,
16licensed large truck stop establishment, licensed fraternal
17establishment, or licensed veterans establishment if that
18person has been found by the Division Board to:
19 (1) have a background, including a criminal record,
20 reputation, habits, social or business associations, or
21 prior activities that pose a threat to the public
22 interests of the State or to the security and integrity of
23 video gaming;
24 (2) create or enhance the dangers of unsuitable,
25 unfair, or illegal practices, methods, and activities in
26 the conduct of video gaming; or

SB2254- 456 -LRB102 15486 SMS 20849 b
1 (3) present questionable business practices and
2 financial arrangements incidental to the conduct of video
3 gaming activities.
4 (e) Any applicant for any license under this Act has the
5burden of proving his or her qualifications to the
6satisfaction of the Division Board. The Division Board may
7adopt rules to establish additional qualifications and
8requirements to preserve the integrity and security of video
9gaming in this State.
10 (f) A non-refundable application fee shall be paid at the
11time an application for a license is filed with the Division
12Board in the following amounts:
13 (1) Manufacturer..........................$5,000
14 (2) Distributor...........................$5,000
15 (3) Terminal operator.....................$5,000
16 (4) Supplier..............................$2,500
17 (5) Technician..............................$100
18 (6) Terminal Handler........................$100
19 (7) Licensed establishment, licensed truck stop
20 establishment, licensed large truck stop establishment,
21 licensed fraternal establishment, or licensed
22 veterans establishment...............................$100
23 (g) The Division Board shall establish an annual fee for
24each license not to exceed the following:
25 (1) Manufacturer.........................$10,000
26 (2) Distributor..........................$10,000

SB2254- 457 -LRB102 15486 SMS 20849 b
1 (3) Terminal operator.....................$5,000
2 (4) Supplier..............................$2,000
3 (5) Technician..............................$100
4 (6) Licensed establishment, licensed truck stop
5 establishment, licensed large truck stop establishment,
6 licensed fraternal establishment, or licensed
7 veterans establishment..........................$100
8 (7) Video gaming terminal...................$100
9 (8) Terminal Handler............................$100
10 (h) A terminal operator and a licensed establishment,
11licensed truck stop establishment, licensed large truck stop
12establishment, licensed fraternal establishment, or licensed
13veterans establishment shall equally split the fees specified
14in item (7) of subsection (g).
15(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
16 (230 ILCS 40/50)
17 Sec. 50. Distribution of license fees.
18 (a) All fees collected under Section 45 shall be deposited
19into the State Gaming Fund.
20 (b) Fees collected under Section 45 shall be used as
21follows:
22 (1) Twenty-five percent shall be paid, subject to
23 appropriation by the General Assembly, to the Department
24 of Human Services for administration of programs for the
25 treatment of compulsive gambling.

SB2254- 458 -LRB102 15486 SMS 20849 b
1 (2) Seventy-five percent shall be used for the
2 administration of this Act.
3 (c) All licenses issued by the Division Board under this
4Act are renewable annually unless sooner cancelled or
5terminated. No license issued under this Act is transferable
6or assignable.
7(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
8 (230 ILCS 40/57)
9 Sec. 57. Insurance. Each terminal operator shall maintain
10liability insurance on any gaming device that it places in a
11licensed video gaming location in an amount set by the
12Division Board.
13(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
14 (230 ILCS 40/58)
15 Sec. 58. Location of terminals. Video gaming terminals in
16a licensed establishment, licensed fraternal establishment, or
17licensed veterans establishment must be located in an area
18that is restricted to persons over 21 years of age and the
19entrance to the area must be within the view of at least one
20employee of the establishment who is over 21 years of age.
21 The placement of video gaming terminals in licensed
22establishments, licensed truck stop establishments, licensed
23large truck stop establishments, licensed fraternal
24establishments, and licensed veterans establishments shall be

SB2254- 459 -LRB102 15486 SMS 20849 b
1subject to the rules promulgated by the Division Board
2pursuant to the Illinois Administrative Procedure Act.
3(Source: P.A. 101-31, eff. 6-28-19; 101-318, eff. 8-9-19;
4revised 9-20-19.)
5 (230 ILCS 40/60)
6 Sec. 60. Imposition and distribution of tax.
7 (a) A tax of 30% is imposed on net terminal income and
8shall be collected by the Division Board.
9 Of the tax collected under this subsection (a),
10five-sixths shall be deposited into the Capital Projects Fund
11and one-sixth shall be deposited into the Local Government
12Video Gaming Distributive Fund.
13 (b) Beginning on July 1, 2019, an additional tax of 3% is
14imposed on net terminal income and shall be collected by the
15Division Board.
16 Beginning on July 1, 2020, an additional tax of 1% is
17imposed on net terminal income and shall be collected by the
18Division Board.
19 The tax collected under this subsection (b) shall be
20deposited into the Capital Projects Fund.
21 (c) Revenues generated from the play of video gaming
22terminals shall be deposited by the terminal operator, who is
23responsible for tax payments, in a specially created, separate
24bank account maintained by the video gaming terminal operator
25to allow for electronic fund transfers of moneys for tax

SB2254- 460 -LRB102 15486 SMS 20849 b
1payment.
2 (d) Each licensed establishment, licensed truck stop
3establishment, licensed large truck stop establishment,
4licensed fraternal establishment, and licensed veterans
5establishment shall maintain an adequate video gaming fund,
6with the amount to be determined by the Division Board.
7 (e) The State's percentage of net terminal income shall be
8reported and remitted to the Division Board within 15 days
9after the 15th day of each month and within 15 days after the
10end of each month by the video terminal operator. A video
11terminal operator who falsely reports or fails to report the
12amount due required by this Section is guilty of a Class 4
13felony and is subject to termination of his or her license by
14the Division Board. Each video terminal operator shall keep a
15record of net terminal income in such form as the Division
16Board may require. All payments not remitted when due shall be
17paid together with a penalty assessment on the unpaid balance
18at a rate of 1.5% per month.
19(Source: P.A. 101-31, eff. 6-28-19.)
20 (230 ILCS 40/78)
21 Sec. 78. Authority of the Department of Lottery and Gaming
22Illinois Gaming Board.
23 (a) The Division of Video Gaming of the Department of
24Lottery and Gaming Board shall have jurisdiction over and
25shall supervise all gaming operations governed by this Act.

SB2254- 461 -LRB102 15486 SMS 20849 b
1The Division Board shall have all powers necessary and proper
2to fully and effectively execute the provisions of this Act,
3including, but not limited to, the following:
4 (1) To investigate applicants and determine the
5 eligibility of applicants for licenses and to select among
6 competing applicants the applicants which best serve the
7 interests of the citizens of Illinois.
8 (2) To have jurisdiction and supervision over all
9 video gaming operations in this State and all persons in
10 establishments where video gaming operations are
11 conducted.
12 (3) To adopt rules for the purpose of administering
13 the provisions of this Act and to prescribe rules,
14 regulations, and conditions under which all video gaming
15 in the State shall be conducted. Such rules and
16 regulations are to provide for the prevention of practices
17 detrimental to the public interest and for the best
18 interests of video gaming, including rules and regulations
19 (i) regarding the inspection of such establishments and
20 the review of any permits or licenses necessary to operate
21 an establishment under any laws or regulations applicable
22 to establishments, (ii) to impose penalties for violations
23 of this Act and its rules, and (iii) establishing
24 standards for advertising video gaming.
25 (b) (Blank) The Board shall adopt emergency rules to
26administer this Act in accordance with Section 5-45 of the

SB2254- 462 -LRB102 15486 SMS 20849 b
1Illinois Administrative Procedure Act. For the purposes of the
2Illinois Administrative Procedure Act, the General Assembly
3finds that the adoption of rules to implement this Act is
4deemed an emergency and necessary to the public interest,
5safety, and welfare.
6(Source: P.A. 98-31, eff. 6-24-13.)
7 (230 ILCS 40/79)
8 Sec. 79. Investigators. Investigators appointed by the
9Division Board pursuant to the powers conferred upon the
10Division Board by paragraph (20.6) of subsection (c) of
11Section 5 of the Illinois Gambling Act and Section 80 of this
12Act shall have authority to conduct investigations, searches,
13seizures, arrests, and other duties imposed under this Act and
14the Illinois Gambling Act, as deemed necessary by the Division
15Board. These investigators have and may exercise all of the
16rights and powers of peace officers, provided that these
17powers shall be (1) limited to offenses or violations
18occurring or committed in connection with conduct subject to
19this Act, including, but not limited to, the manufacture,
20distribution, supply, operation, placement, service,
21maintenance, or play of video gaming terminals and the
22distribution of profits and collection of revenues resulting
23from such play, and (2) exercised, to the fullest extent
24practicable, in cooperation with the local police department
25of the applicable municipality or, if these powers are

SB2254- 463 -LRB102 15486 SMS 20849 b
1exercised outside the boundaries of an incorporated
2municipality or within a municipality that does not have its
3own police department, in cooperation with the police
4department whose jurisdiction encompasses the applicable
5locality.
6(Source: P.A. 101-31, eff. 6-28-19.)
7 (230 ILCS 40/79.5)
8 Sec. 79.5. Enforcement actions. The Division Board shall
9establish a policy and standards for compliance operations to
10investigate whether a licensed establishment, licensed
11fraternal establishment, licensed veterans establishment, or a
12licensed truck stop establishment is: (1) permitting any
13person under the age of 21 years to use or play a video gaming
14terminal in violation of this Act; or (2) furnishing alcoholic
15liquor to persons under 21 years of age in violation of the
16Liquor Control Act of 1934.
17 The policy and standards for compliance operations under
18this Section shall be similar to the model policy and
19guidelines for the operation of alcohol and tobacco compliance
20checks by local law enforcement officers adopted by the
21Illinois Law Enforcement Training Standards Board pursuant to
22subsection (c) of Section 6-16.1 of the Liquor Control Act of
231934. The Board shall adopt the policy and standards in the
24form of emergency rulemaking that shall be adopted no later
25than 90 days after the effective date of this amendatory Act of

SB2254- 464 -LRB102 15486 SMS 20849 b
1the 101st General Assembly and shall be immediately followed
2by permanent rulemaking on the same subject.
3 A licensed establishment, licensed fraternal
4establishment, licensed veterans establishment, or licensed
5truck stop establishment that is the subject of an enforcement
6action under this Section and is found, pursuant to the
7enforcement action, to be in compliance with this Act shall be
8notified by the Division Board that no violation was found
9within 30 days after the finding.
10(Source: P.A. 101-318, eff. 8-9-19.)
11 (230 ILCS 40/80)
12 Sec. 80. Applicability of Illinois Gambling Act. The
13provisions of the Illinois Gambling Act, and all rules
14promulgated thereunder, shall apply to the Video Gaming Act,
15except where there is a conflict between the 2 Acts. In the
16event of a conflict between the 2 Acts, the provisions of the
17Illinois Gambling Act shall prevail. All current supplier
18licensees under the Illinois Gambling Act shall be entitled to
19licensure under the Video Gaming Act as manufacturers,
20distributors, or suppliers without additional Division Board
21investigation or approval, except by vote of the Division
22Board; however, they are required to pay application and
23annual fees under this Act. All provisions of the Uniform
24Penalty and Interest Act shall apply, as far as practicable,
25to the subject matter of this Act to the same extent as if such

SB2254- 465 -LRB102 15486 SMS 20849 b
1provisions were included herein.
2(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
3 Section 135. The Sports Wagering Act is amended by
4changing Sections 25-10, 25-15, 25-20, 25-25, 25-30, 25-35,
525-40, 25-45, 25-50, 25-55, 25-60, 25-70, 25-75, 25-85, 25-90,
625-100, and 25-105 as follows:
7 (230 ILCS 45/25-10)
8 Sec. 25-10. Definitions. As used in this Act:
9 "Adjusted gross sports wagering receipts" means a master
10sports wagering licensee's gross sports wagering receipts,
11less winnings paid to wagerers in such games.
12 "Athlete" means any current or former professional athlete
13or collegiate athlete.
14 "Board" means the Illinois Gaming Board.
15 "Covered persons" includes athletes; umpires, referees,
16and officials; personnel associated with clubs, teams,
17leagues, and athletic associations; medical professionals
18(including athletic trainers) who provide services to athletes
19and players; and the family members and associates of these
20persons where required to serve the purposes of this Act.
21 "Department" means the Department of the Lottery and
22Gaming.
23 "Director" means the Director of Video Gaming of the
24Department of Lottery and Gaming.

SB2254- 466 -LRB102 15486 SMS 20849 b
1 "Division" means the Division of Video Gaming of the
2Department of Lottery and Gaming.
3 "Gaming facility" means a facility at which gambling
4operations are conducted under the Illinois Gambling Act,
5pari-mutuel wagering is conducted under the Illinois Horse
6Racing Act of 1975, or sports wagering is conducted under this
7Act.
8 "Official league data" means statistics, results,
9outcomes, and other data related to a sports event obtained
10pursuant to an agreement with the relevant sports governing
11body, or an entity expressly authorized by the sports
12governing body to provide such information to licensees, that
13authorizes the use of such data for determining the outcome of
14tier 2 sports wagers on such sports events.
15 "Organization licensee" has the meaning given to that term
16in the Illinois Horse Racing Act of 1975.
17 "Owners licensee" means the holder of an owners license
18under the Illinois Gambling Act.
19 "Person" means an individual, partnership, committee,
20association, corporation, or any other organization or group
21of persons.
22 "Personal biometric data" means an athlete's information
23derived from DNA, heart rate, blood pressure, perspiration
24rate, internal or external body temperature, hormone levels,
25glucose levels, hydration levels, vitamin levels, bone
26density, muscle density, and sleep patterns.

SB2254- 467 -LRB102 15486 SMS 20849 b
1 "Prohibited conduct" includes any statement, action, and
2other communication intended to influence, manipulate, or
3control a betting outcome of a sporting contest or of any
4individual occurrence or performance in a sporting contest in
5exchange for financial gain or to avoid financial or physical
6harm. "Prohibited conduct" includes statements, actions, and
7communications made to a covered person by a third party, such
8as a family member or through social media. "Prohibited
9conduct" does not include statements, actions, or
10communications made or sanctioned by a team or sports
11governing body.
12 "Qualified applicant" means an applicant for a license
13under this Act whose application meets the mandatory minimum
14qualification criteria as required by the Division Board.
15 "Sporting contest" means a sports event or game on which
16the State allows sports wagering to occur under this Act.
17 "Sports event" means a professional sport or athletic
18event, a collegiate sport or athletic event, a motor race
19event, or any other event or competition of relative skill
20authorized by the Division Board under this Act.
21 "Sports facility" means a facility that hosts sports
22events and holds a seating capacity greater than 17,000
23persons.
24 "Sports governing body" means the organization that
25prescribes final rules and enforces codes of conduct with
26respect to a sports event and participants therein.

SB2254- 468 -LRB102 15486 SMS 20849 b
1 "Sports wagering" means accepting wagers on sports events
2or portions of sports events, or on the individual performance
3statistics of athletes in a sports event or combination of
4sports events, by any system or method of wagering, including,
5but not limited to, in person or over the Internet through
6websites and on mobile devices. "Sports wagering" includes,
7but is not limited to, single-game bets, teaser bets, parlays,
8over-under, moneyline, pools, exchange wagering, in-game
9wagering, in-play bets, proposition bets, and straight bets.
10 "Sports wagering account" means a financial record
11established by a master sports wagering licensee for an
12individual patron in which the patron may deposit and withdraw
13funds for sports wagering and other authorized purchases and
14to which the master sports wagering licensee may credit
15winnings or other amounts due to that patron or authorized by
16that patron.
17 "Tier 1 sports wager" means a sports wager that is
18determined solely by the final score or final outcome of the
19sports event and is placed before the sports event has begun.
20 "Tier 2 sports wager" means a sports wager that is not a
21tier 1 sports wager.
22 "Wager" means a sum of money or thing of value risked on an
23uncertain occurrence.
24 "Winning bidder" means a qualified applicant for a master
25sports wagering license chosen through the competitive
26selection process under Section 25-45.

SB2254- 469 -LRB102 15486 SMS 20849 b
1(Source: P.A. 101-31, eff. 6-28-19.)
2 (230 ILCS 45/25-15)
3 Sec. 25-15. Division Board duties and powers.
4 (a) Except for sports wagering conducted under Section
525-70, the Division Board shall have the authority to regulate
6the conduct of sports wagering under this Act.
7 (b) The Division Board may adopt any rules the Division
8Board considers necessary for the successful implementation,
9administration, and enforcement of this Act, except for
10Section 25-70. Rules proposed by the Division Board may be
11adopted as emergency rules pursuant to Section 5-45 of the
12Illinois Administrative Procedure Act.
13 (c) The Division Board shall levy and collect all fees,
14surcharges, civil penalties, and monthly taxes on adjusted
15gross sports wagering receipts imposed by this Act and deposit
16all moneys into the Sports Wagering Fund, except as otherwise
17provided under this Act.
18 (d) The Division Board may exercise any other powers
19necessary to enforce the provisions of this Act that it
20regulates and the rules of the Division Board.
21 (e) The Division Board shall adopt rules for a license to
22be employed by a master sports wagering licensee when the
23employee works in a designated gaming area that has sports
24wagering or performs duties in furtherance of or associated
25with the operation of sports wagering by the master sports

SB2254- 470 -LRB102 15486 SMS 20849 b
1wagering licensee (occupational license), which shall require
2an annual license fee of $250. License fees shall be deposited
3into the State Gaming Fund and used for the administration of
4this Act.
5 (f) The Division Board may require that licensees share,
6in real time and at the sports wagering account level,
7information regarding a wagerer, amount and type of wager, the
8time the wager was placed, the location of the wager,
9including the Internet protocol address, if applicable, the
10outcome of the wager, and records of abnormal wagering
11activity. Information shared under this subsection (f) must be
12submitted in the form and manner as required by rule. If a
13sports governing body has notified the Division Board that
14real-time information sharing for wagers placed on its sports
15events is necessary and desirable, licensees may share the
16same information in the form and manner required by the
17Division Board by rule with the sports governing body or its
18designee with respect to wagers on its sports events subject
19to applicable federal, State, or local laws or regulations,
20including, without limitation, privacy laws and regulations.
21Such information may be provided in anonymized form and may be
22used by a sports governing body solely for integrity purposes.
23For purposes of this subsection (f), "real-time" means a
24commercially reasonable periodic interval.
25 (g) A master sports wagering licensee, professional sports
26team, league, or association, sports governing body, or

SB2254- 471 -LRB102 15486 SMS 20849 b
1institution of higher education may submit to the Division
2Board in writing a request to prohibit a type or form of
3wagering if the master sports wagering licensee, professional
4sports team, league, or association, sports governing body, or
5institution of higher education believes that such wagering by
6type or form is contrary to public policy, unfair to
7consumers, or affects the integrity of a particular sport or
8the sports betting industry. The Division Board shall grant
9the request upon a demonstration of good cause from the
10requester and consultation with licensees. The Division Board
11shall respond to a request pursuant to this subsection (g)
12concerning a particular event before the start of the event
13or, if it is not feasible to respond before the start of the
14event, as soon as practicable.
15 (h) The Division Board and master sports wagering
16licensees may cooperate with investigations conducted by
17sports governing bodies or law enforcement agencies,
18including, but not limited to, providing and facilitating the
19provision of account-level betting information and audio or
20video files relating to persons placing wagers.
21 (i) A master sports wagering licensee shall make
22commercially reasonable efforts to promptly notify the
23Division Board any information relating to:
24 (1) criminal or disciplinary proceedings commenced
25 against the master sports wagering licensee in connection
26 with its operations;

SB2254- 472 -LRB102 15486 SMS 20849 b
1 (2) abnormal wagering activity or patterns that may
2 indicate a concern with the integrity of a sports event or
3 sports events;
4 (3) any potential breach of the relevant sports
5 governing body's internal rules and codes of conduct
6 pertaining to sports wagering that a licensee has
7 knowledge of;
8 (4) any other conduct that corrupts a wagering outcome
9 of a sports event or sports events for purposes of
10 financial gain, including match fixing; and
11 (5) suspicious or illegal wagering activities,
12 including use of funds derived from illegal activity,
13 wagers to conceal or launder funds derived from illegal
14 activity, using agents to place wagers, and using false
15 identification.
16 A master sports wagering licensee shall also make
17commercially reasonable efforts to promptly report information
18relating to conduct described in paragraphs (2), (3), and (4)
19of this subsection (i) to the relevant sports governing body.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 (230 ILCS 45/25-20)
22 Sec. 25-20. Licenses required.
23 (a) No person may engage in any activity in connection
24with sports wagering in this State unless all necessary
25licenses have been obtained in accordance with this Act and

SB2254- 473 -LRB102 15486 SMS 20849 b
1the rules of the Division Board and the Department. The
2following licenses shall be issued under this Act:
3 (1) master sports wagering license;
4 (2) occupational license;
5 (3) supplier license;
6 (4) management services provider license;
7 (5) tier 2 official league data provider license; and
8 (6) central system provider license.
9 No person or entity may engage in a sports wagering
10operation or activity without first obtaining the appropriate
11license.
12 (b) An applicant for a license issued under this Act shall
13submit an application to the Division Board in the form the
14Division Board requires. The applicant shall submit
15fingerprints for a national criminal records check by the
16Illinois Department of State Police and the Federal Bureau of
17Investigation. The fingerprints shall be furnished by the
18applicant's owners, officers, and directors (if a
19corporation), managers and members (if a limited liability
20company), and partners (if a partnership). The fingerprints
21shall be accompanied by a signed authorization for the release
22of information by the Federal Bureau of Investigation. The
23Division Board may require additional background checks on
24licensees when they apply for license renewal, and an
25applicant convicted of a disqualifying offense shall not be
26licensed.

SB2254- 474 -LRB102 15486 SMS 20849 b
1 (c) Each master sports wagering licensee shall display the
2license conspicuously in the licensee's place of business or
3have the license available for inspection by an agent of the
4Division Board or a law enforcement agency.
5 (d) Each holder of an occupational license shall carry the
6license and have some indicia of licensure prominently
7displayed on his or her person when present in a gaming
8facility licensed under this Act at all times, in accordance
9with the rules of the Division Board.
10 (e) Each person licensed under this Act shall give the
11Division Board written notice within 30 days after a material
12change to information provided in the licensee's application
13for a license or renewal.
14(Source: P.A. 101-31, eff. 6-28-19; 101-597, eff. 12-6-19.)
15 (230 ILCS 45/25-25)
16 Sec. 25-25. Sports wagering authorized.
17 (a) Notwithstanding any provision of law to the contrary,
18the operation of sports wagering is only lawful when conducted
19in accordance with the provisions of this Act and the rules of
20the Department of Lottery and Gaming Illinois Gaming Board and
21the Department of the Lottery.
22 (b) A person placing a wager under this Act shall be at
23least 21 years of age.
24 (c) A licensee under this Act may not accept a wager on a
25minor league sports event.

SB2254- 475 -LRB102 15486 SMS 20849 b
1 (d) A licensee under this Act may not accept a wager for a
2sports event involving an Illinois collegiate team.
3 (e) A licensee under this Act may only accept a wager from
4a person physically located in the State.
5 (f) Master sports wagering licensees may use any data
6source for determining the results of all tier 1 sports
7wagers.
8 (g) A sports governing body headquartered in the United
9States may notify the Division Board that it desires to supply
10official league data to master sports wagering licensees for
11determining the results of tier 2 sports wagers. Such
12notification shall be made in the form and manner as the
13Division Board may require. If a sports governing body does
14not notify the Division Board of its desire to supply official
15league data, a master sports wagering licensee may use any
16data source for determining the results of any and all tier 2
17sports wagers on sports contests for that sports governing
18body.
19 Within 30 days of a sports governing body notifying the
20Division Board, master sports wagering licensees shall use
21only official league data to determine the results of tier 2
22sports wagers on sports events sanctioned by that sports
23governing body, unless: (1) the sports governing body or
24designee cannot provide a feed of official league data to
25determine the results of a particular type of tier 2 sports
26wager, in which case master sports wagering licensees may use

SB2254- 476 -LRB102 15486 SMS 20849 b
1any data source for determining the results of the applicable
2tier 2 sports wager until such time as such data feed becomes
3available on commercially reasonable terms; or (2) a master
4sports wagering licensee can demonstrate to the Division Board
5that the sports governing body or its designee cannot provide
6a feed of official league data to the master sports wagering
7licensee on commercially reasonable terms. During the pendency
8of the Division's Board's determination, such master sports
9wagering licensee may use any data source for determining the
10results of any and all tier 2 sports wagers.
11 (h) A licensee under this Act may not accept wagers on a
12kindergarten through 12th grade sports event.
13(Source: P.A. 101-31, eff. 6-28-19.)
14 (230 ILCS 45/25-30)
15 Sec. 25-30. Master sports wagering license issued to an
16organization licensee.
17 (a) An organization licensee may apply to the Division
18Board for a master sports wagering license. To the extent
19permitted by federal and State law, the Division Board shall
20actively seek to achieve racial, ethnic, and geographic
21diversity when issuing master sports wagering licenses to
22organization licensees and encourage minority-owned
23businesses, women-owned businesses, veteran-owned businesses,
24and businesses owned by persons with disabilities to apply for
25licensure. Additionally, the report published under subsection

SB2254- 477 -LRB102 15486 SMS 20849 b
1(m) of Section 25-45 shall impact the issuance of the master
2sports wagering license to the extent permitted by federal and
3State law.
4 For the purposes of this subsection (a), "minority-owned
5business", "women-owned business", and "business owned by
6persons with disabilities" have the meanings given to those
7terms in Section 2 of the Business Enterprise for Minorities,
8Women, and Persons with Disabilities Act.
9 (b) Except as otherwise provided in this subsection (b),
10the initial license fee for a master sports wagering license
11for an organization licensee is 5% of its handle from the
12preceding calendar year or the lowest amount that is required
13to be paid as an initial license fee by an owners licensee
14under subsection (b) of Section 25-35, whichever is greater.
15No initial license fee shall exceed $10,000,000. An
16organization licensee licensed on the effective date of this
17Act shall pay the initial master sports wagering license fee
18by July 1, 2021. For an organization licensee licensed after
19the effective date of this Act, the master sports wagering
20license fee shall be $5,000,000, but the amount shall be
21adjusted 12 months after the organization licensee begins
22racing operations based on 5% of its handle from the first 12
23months of racing operations. The master sports wagering
24license is valid for 4 years.
25 (c) The organization licensee may renew the master sports
26wagering license for a period of 4 years by paying a $1,000,000

SB2254- 478 -LRB102 15486 SMS 20849 b
1renewal fee to the Division Board.
2 (d) An organization licensee issued a master sports
3wagering license may conduct sports wagering:
4 (1) at its facility at which inter-track wagering is
5 conducted pursuant to an inter-track wagering license
6 under the Illinois Horse Racing Act of 1975;
7 (2) at 3 inter-track wagering locations if the
8 inter-track wagering location licensee from which it
9 derives its license is an organization licensee that is
10 issued a master sports wagering license; and
11 (3) over the Internet or through a mobile application.
12 (e) The sports wagering offered over the Internet or
13through a mobile application shall only be offered under
14either the same brand as the organization licensee is
15operating under or a brand owned by a direct or indirect
16holding company that owns at least an 80% interest in that
17organization licensee on the effective date of this Act.
18 (f) Until issuance of the first license under Section
1925-45, an individual must create a sports wagering account in
20person at a facility under paragraph (1) or (2) of subsection
21(d) to participate in sports wagering offered over the
22Internet or through a mobile application.
23(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
24 (230 ILCS 45/25-35)
25 Sec. 25-35. Master sports wagering license issued to an

SB2254- 479 -LRB102 15486 SMS 20849 b
1owners licensee.
2 (a) An owners licensee may apply to the Division Board for
3a master sports wagering license. To the extent permitted by
4federal and State law, the Division Board shall actively seek
5to achieve racial, ethnic, and geographic diversity when
6issuing master sports wagering licenses to owners licensees
7and encourage minority-owned businesses, women-owned
8businesses, veteran-owned businesses, and businesses owned by
9persons with disabilities to apply for licensure.
10Additionally, the report published under subsection (m) of
11Section 25-45 shall impact the issuance of the master sports
12wagering license to the extent permitted by federal and State
13law.
14 For the purposes of this subsection (a), "minority-owned
15business", "women-owned business", and "business owned by
16persons with disabilities" have the meanings given to those
17terms in Section 2 of the Business Enterprise for Minorities,
18Women, and Persons with Disabilities Act.
19 (b) Except as otherwise provided in subsection (b-5), the
20initial license fee for a master sports wagering license for
21an owners licensee is 5% of its adjusted gross receipts from
22the preceding calendar year. No initial license fee shall
23exceed $10,000,000. An owners licensee licensed on the
24effective date of this Act shall pay the initial master sports
25wagering license fee by July 1, 2021. The master sports
26wagering license is valid for 4 years.

SB2254- 480 -LRB102 15486 SMS 20849 b
1 (b-5) For an owners licensee licensed after the effective
2date of this Act, the master sports wagering license fee shall
3be $5,000,000, but the amount shall be adjusted 12 months
4after the owners licensee begins gambling operations under the
5Illinois Gambling Act based on 5% of its adjusted gross
6receipts from the first 12 months of gambling operations. The
7master sports wagering license is valid for 4 years.
8 (c) The owners licensee may renew the master sports
9wagering license for a period of 4 years by paying a $1,000,000
10renewal fee to the Division Board.
11 (d) An owners licensee issued a master sports wagering
12license may conduct sports wagering:
13 (1) at its facility in this State that is authorized
14 to conduct gambling operations under the Illinois Gambling
15 Act; and
16 (2) over the Internet or through a mobile application.
17 (e) The sports wagering offered over the Internet or
18through a mobile application shall only be offered under
19either the same brand as the owners licensee is operating
20under or a brand owned by a direct or indirect holding company
21that owns at least an 80% interest in that owners licensee on
22the effective date of this Act.
23 (f) Until issuance of the first license under Section
2425-45, an individual must create a sports wagering account in
25person at a facility under paragraph (1) of subsection (d) to
26participate in sports wagering offered over the Internet or

SB2254- 481 -LRB102 15486 SMS 20849 b
1through a mobile application.
2(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
3 (230 ILCS 45/25-40)
4 Sec. 25-40. Master sports wagering license issued to a
5sports facility.
6 (a) As used in this Section, "designee" means a master
7sports wagering licensee under Section 25-30, 25-35, or 25-45
8or a management services provider licensee.
9 (b) A sports facility or a designee contracted to operate
10sports wagering at or within a 5-block radius of the sports
11facility may apply to the Division Board for a master sports
12wagering license. To the extent permitted by federal and State
13law, the Division Board shall actively seek to achieve racial,
14ethnic, and geographic diversity when issuing master sports
15wagering licenses to sports facilities or their designees and
16encourage minority-owned businesses, women-owned businesses,
17veteran-owned businesses, and businesses owned by persons with
18disabilities to apply for licensure. Additionally, the report
19published under subsection (m) of Section 25-45 shall impact
20the issuance of the master sports wagering license to the
21extent permitted by federal and State law.
22 For the purposes of this subsection (b), "minority-owned
23business", "women-owned business", and "business owned by
24persons with disabilities" have the meanings given to those
25terms in Section 2 of the Business Enterprise for Minorities,

SB2254- 482 -LRB102 15486 SMS 20849 b
1Women, and Persons with Disabilities Act.
2 (c) The Division Board may issue up to 7 master sports
3wagering licenses to sports facilities or their designees that
4meet the requirements for licensure as determined by rule by
5the Division Board. If more than 7 qualified applicants apply
6for a master sports wagering license under this Section, the
7licenses shall be granted in the order in which the
8applications were received. If a license is denied, revoked,
9or not renewed, the Division Board may begin a new application
10process and issue a license under this Section in the order in
11which the application was received.
12 (d) The initial license fee for a master sports wagering
13license for a sports facility is $10,000,000. The master
14sports wagering license is valid for 4 years.
15 (e) The sports facility or its designee may renew the
16master sports wagering license for a period of 4 years by
17paying a $1,000,000 renewal fee to the Division Board.
18 (f) A sports facility or its designee issued a master
19sports wagering license may conduct sports wagering at or
20within a 5-block radius of the sports facility.
21 (g) A sports facility or its designee issued a master
22sports wagering license may conduct sports wagering over the
23Internet within the sports facility or within a 5-block radius
24of the sports facility.
25 (h) The sports wagering offered by a sports facility or
26its designee over the Internet or through a mobile application

SB2254- 483 -LRB102 15486 SMS 20849 b
1shall be offered under the same brand as the sports facility is
2operating under, the brand the designee is operating under, or
3a combination thereof.
4 (i) Until issuance of the first license under Section
525-45, an individual must register in person at a sports
6facility or the designee's facility to participate in sports
7wagering offered over the Internet or through a mobile
8application.
9(Source: P.A. 101-31, eff. 6-28-19.)
10 (230 ILCS 45/25-45)
11 Sec. 25-45. Master sports wagering license issued to an
12online sports wagering operator.
13 (a) The Division Board shall issue 3 master sports
14wagering licenses to online sports wagering operators for a
15nonrefundable license fee of $20,000,000 pursuant to an open
16and competitive selection process. The master sports wagering
17license issued under this Section may be renewed every 4 years
18upon payment of a $1,000,000 renewal fee. To the extent
19permitted by federal and State law, the Division Board shall
20actively seek to achieve racial, ethnic, and geographic
21diversity when issuing master sports wagering licenses under
22this Section and encourage minority-owned businesses,
23women-owned businesses, veteran-owned businesses, and
24businesses owned by persons with disabilities to apply for
25licensure.

SB2254- 484 -LRB102 15486 SMS 20849 b
1 For the purposes of this subsection (a), "minority-owned
2business", "women-owned business", and "business owned by
3persons with disabilities" have the meanings given to those
4terms in Section 2 of the Business Enterprise for Minorities,
5Women, and Persons with Disabilities Act.
6 (b) Applications for the initial competitive selection
7occurring after the effective date of this Act shall be
8received by the Division Board within 540 days after the first
9license is issued under this Act to qualify. The Division
10Board shall announce the winning bidders for the initial
11competitive selection within 630 days after the first license
12is issued under this Act, and this time frame may be extended
13at the discretion of the Division Board.
14 (c) The Division Board shall provide public notice of its
15intent to solicit applications for master sports wagering
16licenses under this Section by posting the notice, application
17instructions, and materials on its website for at least 30
18calendar days before the applications are due. Failure by an
19applicant to submit all required information may result in the
20application being disqualified. The Division Board may notify
21an applicant that its application is incomplete and provide an
22opportunity to cure by rule. Application instructions shall
23include a brief overview of the selection process and how
24applications are scored.
25 (d) To be eligible for a master sports wagering license
26under this Section, an applicant must: (1) be at least 21 years

SB2254- 485 -LRB102 15486 SMS 20849 b
1of age; (2) not have been convicted of a felony offense or a
2violation of Article 28 of the Criminal Code of 1961 or the
3Criminal Code of 2012 or a similar statute of any other
4jurisdiction; (3) not have been convicted of a crime involving
5dishonesty or moral turpitude; (4) have demonstrated a level
6of skill or knowledge that the Division Board determines to be
7necessary in order to operate sports wagering; and (5) have
8met standards for the holding of a license as adopted by rules
9of the Division Board.
10 The Division Board may adopt rules to establish additional
11qualifications and requirements to preserve the integrity and
12security of sports wagering in this State and to promote and
13maintain a competitive sports wagering market. After the close
14of the application period, the Division Board shall determine
15whether the applications meet the mandatory minimum
16qualification criteria and conduct a comprehensive, fair, and
17impartial evaluation of all qualified applications.
18 (e) The Division Board shall open all qualified
19applications in a public forum and disclose the applicants'
20names. The Division Board shall summarize the terms of the
21proposals and make the summaries available to the public on
22its website.
23 (f) Not more than 90 days after the publication of the
24qualified applications, the Division Board shall identify the
25winning bidders. In granting the licenses, the Division Board
26may give favorable consideration to qualified applicants

SB2254- 486 -LRB102 15486 SMS 20849 b
1presenting plans that provide for economic development and
2community engagement. To the extent permitted by federal and
3State law, the Division Board may give favorable consideration
4to qualified applicants demonstrating commitment to diversity
5in the workplace.
6 (g) Upon selection of the winning bidders, the Division
7Board shall have a reasonable period of time to ensure
8compliance with all applicable statutory and regulatory
9criteria before issuing the licenses. If the Division Board
10determines a winning bidder does not satisfy all applicable
11statutory and regulatory criteria, the Division Board shall
12select another bidder from the remaining qualified applicants.
13 (h) Nothing in this Section is intended to confer a
14property or other right, duty, privilege, or interest
15entitling an applicant to an administrative hearing upon
16denial of an application.
17 (i) Upon issuance of a master sports wagering license to a
18winning bidder, the information and plans provided in the
19application become a condition of the license. A master sports
20wagering licensee under this Section has a duty to disclose
21any material changes to the application. Failure to comply
22with the conditions or requirements in the application may
23subject the master sports wagering licensee under this Section
24to discipline, including, but not limited to, fines,
25suspension, and revocation of its license, pursuant to rules
26adopted by the Division Board.

SB2254- 487 -LRB102 15486 SMS 20849 b
1 (j) The Division Board shall disseminate information about
2the licensing process through media demonstrated to reach
3large numbers of business owners and entrepreneurs who are
4minorities, women, veterans, and persons with disabilities.
5 (k) The Department of Commerce and Economic Opportunity,
6in conjunction with the Division Board, shall conduct ongoing,
7thorough, and comprehensive outreach to businesses owned by
8minorities, women, veterans, and persons with disabilities
9about contracting and entrepreneurial opportunities in sports
10wagering. This outreach shall include, but not be limited to:
11 (1) cooperating and collaborating with other State
12 boards, commissions, and agencies; public and private
13 universities and community colleges; and local governments
14 to target outreach efforts; and
15 (2) working with organizations serving minorities,
16 women, and persons with disabilities to establish and
17 conduct training for employment in sports wagering.
18 (l) The Division Board shall partner with the Department
19of Labor, the Department of Financial and Professional
20Regulation, and the Department of Commerce and Economic
21Opportunity to identify employment opportunities within the
22sports wagering industry for job seekers and dislocated
23workers.
24 (m) By March 1, 2020, the Division Board shall prepare a
25request for proposals to conduct a study of the online sports
26wagering industry and market to determine whether there is a

SB2254- 488 -LRB102 15486 SMS 20849 b
1compelling interest in implementing remedial measures,
2including the application of the Business Enterprise Program
3under the Business Enterprise for Minorities, Women, and
4Persons with Disabilities Act or a similar program to assist
5minorities, women, and persons with disabilities in the sports
6wagering industry.
7 As a part of the study, the Division Board shall evaluate
8race and gender-neutral programs or other methods that may be
9used to address the needs of minority and women applicants and
10minority-owned and women-owned businesses seeking to
11participate in the sports wagering industry. The Division
12Board shall submit to the General Assembly and publish on its
13website the results of this study by August 1, 2020.
14 If, as a result of the study conducted under this
15subsection (m), the Division Board finds that there is a
16compelling interest in implementing remedial measures, the
17Division Board may adopt rules, including emergency rules, to
18implement remedial measures, if necessary and to the extent
19permitted by State and federal law, based on the findings of
20the study conducted under this subsection (m).
21(Source: P.A. 101-31, eff. 6-28-19.)
22 (230 ILCS 45/25-50)
23 Sec. 25-50. Supplier license.
24 (a) The Division Board may issue a supplier license to a
25person to sell or lease sports wagering equipment, systems, or

SB2254- 489 -LRB102 15486 SMS 20849 b
1other gaming items to conduct sports wagering and offer
2services related to the equipment or other gaming items and
3data to a master sports wagering licensee while the license is
4active.
5 (b) The Division Board may adopt rules establishing
6additional requirements for a supplier and any system or other
7equipment utilized for sports wagering. The Division Board may
8accept licensing by another jurisdiction that it specifically
9determines to have similar licensing requirements as evidence
10the applicant meets supplier licensing requirements.
11 (c) An applicant for a supplier license shall demonstrate
12that the equipment, system, or services that the applicant
13plans to offer to the master sports wagering licensee conforms
14to standards established by the Division Board and applicable
15State law. The Division Board may accept approval by another
16jurisdiction that it specifically determines have similar
17equipment standards as evidence the applicant meets the
18standards established by the Division Board and applicable
19State law.
20 (d) Applicants shall pay to the Division Board a
21nonrefundable license and application fee in the amount of
22$150,000. After the initial 4-year term, the Division Board
23shall renew supplier licenses annually thereafter. Renewal of
24a supplier license shall be granted to a renewal applicant who
25has continued to comply with all applicable statutory and
26regulatory requirements, upon submission of the

SB2254- 490 -LRB102 15486 SMS 20849 b
1Division-issued Board-issued renewal form and payment of a
2$150,000 renewal fee.
3 (e) A supplier shall submit to the Division Board a list of
4all sports wagering equipment and services sold, delivered, or
5offered to a master sports wagering licensee in this State, as
6required by the Division Board, all of which must be tested and
7approved by an independent testing laboratory approved by the
8Division Board. A master sports wagering licensee may continue
9to use supplies acquired from a licensed supplier, even if a
10supplier's license expires or is otherwise canceled, unless
11the Division Board finds a defect in the supplies.
12(Source: P.A. 101-31, eff. 6-28-19.)
13 (230 ILCS 45/25-55)
14 Sec. 25-55. Management services provider license.
15 (a) A master sports wagering licensee may contract with an
16entity to conduct that operation in accordance with the rules
17of the Division Board and the provisions of this Act. That
18entity shall obtain a license as a management services
19provider before the execution of any such contract, and the
20management services provider license shall be issued pursuant
21to the provisions of this Act and any rules adopted by the
22Division Board.
23 (b) Each applicant for a management services provider
24license shall meet all requirements for licensure and pay a
25nonrefundable license and application fee of $1,000,000. The

SB2254- 491 -LRB102 15486 SMS 20849 b
1Division Board may adopt rules establishing additional
2requirements for an authorized management services provider.
3The Division Board may accept licensing by another
4jurisdiction that it specifically determines to have similar
5licensing requirements as evidence the applicant meets
6authorized management services provider licensing
7requirements.
8 (c) Management services provider licenses shall be renewed
9every 4 years to licensees who continue to be in compliance
10with all requirements and who pay the renewal fee of $500,000.
11 (d) A person who shares in revenue shall be licensed under
12this Section.
13(Source: P.A. 101-31, eff. 6-28-19.)
14 (230 ILCS 45/25-60)
15 Sec. 25-60. Tier 2 official league data provider license.
16 (a) A sports governing body or a sports league,
17organization, or association or a vendor authorized by such
18sports governing body or sports league, organization, or
19association to distribute tier 2 official league data may
20apply to the Division Board for a tier 2 official league data
21provider license.
22 (b) A tier 2 official league data provider licensee may
23provide a master sports wagering licensee with official league
24data for tier 2 sports wagers. No sports governing body or
25sports league, organization, or association or a vendor

SB2254- 492 -LRB102 15486 SMS 20849 b
1authorized by such sports governing body or sports league,
2organization, or association may provide tier 2 official
3league data to a master sports wagering licensee without a
4tier 2 official league data provider license.
5 Notwithstanding the provisions of this Section, the
6licensing and fee requirements of this Section shall not apply
7if, under subsection (g) of Section 25-25, master sports
8wagering licensees are not required to use official league
9data to determine the results of tier 2 sports wagers.
10 (c) The initial license fee for a tier 2 official league
11data provider license is payable to the Division Board at the
12end of the first year of licensure based on the amount of data
13sold to master sports wagering licensees as official league
14data as follows:
15 (1) for data sales up to and including $500,000, the
16 fee is $30,000;
17 (2) for data sales in excess of $500,000 and up to and
18 including $750,000, the fee is $60,000;
19 (3) for data sales in excess of $750,000 and up to and
20 including $1,000,000, the fee is $125,000;
21 (4) for data sales in excess of $1,000,000 and up to
22 and including $1,500,000, the fee is $250,000;
23 (5) for data sales in excess of $1,500,000 and up to
24 and including $2,000,000, the fee is $375,000; and
25 (6) for data sales in excess of $2,000,000, the fee is
26 $500,000.

SB2254- 493 -LRB102 15486 SMS 20849 b
1 The license is valid for 3 years.
2 (d) The tier 2 official league data provider licensee may
3renew the license for 3 years by paying a renewal fee to the
4Division Board based on the amount of data sold to master
5sports wagering licensees as official league data in the
6immediately preceding year as provided in paragraphs (1)
7through (6) of subsection (c).
8(Source: P.A. 101-31, eff. 6-28-19.)
9 (230 ILCS 45/25-70)
10 (Section scheduled to be repealed on January 1, 2024)
11 Sec. 25-70. Lottery sports wagering pilot program.
12 (a) As used in this Section:
13 "Central system" means the hardware, software,
14peripherals, and network components provided by the
15Department's central system provider that link and support all
16required sports lottery terminals and the central site and
17that are unique and separate from the lottery central system
18for draw and instant games.
19 "Central system provider" means an individual,
20partnership, corporation, or limited liability company that
21has been licensed for the purpose of providing and maintaining
22a central system and the related management facilities
23specifically for the management of sports lottery terminals.
24 "Electronic card" means a card purchased from a lottery
25retailer.

SB2254- 494 -LRB102 15486 SMS 20849 b
1 "Lottery retailer" means a location licensed by the
2Department to sell lottery tickets or shares.
3 "Sports lottery systems" means systems provided by the
4central system provider consisting of sports wagering
5products, risk management, operations, and support services.
6 "Sports lottery terminal" means a terminal linked to the
7central system in which bills or coins are deposited or an
8electronic card is inserted in order to place wagers on a
9sports event and lottery offerings.
10 (b) The Department shall issue one central system provider
11license pursuant to an open and competitive bidding process
12that uses the following procedures:
13 (1) The Department shall make applications for the
14 central system provider license available to the public
15 and allow a reasonable time for applicants to submit
16 applications to the Department.
17 (2) During the filing period for central system
18 provider license applications, the Department may retain
19 professional services to assist the Department in
20 conducting the open and competitive bidding process.
21 (3) After receiving all of the bid proposals, the
22 Department shall open all of the proposals in a public
23 forum and disclose the prospective central system provider
24 names and venture partners, if any.
25 (4) The Department shall summarize the terms of the
26 bid proposals and may make this summary available to the

SB2254- 495 -LRB102 15486 SMS 20849 b
1 public.
2 (5) The Department shall evaluate the bid proposals
3 within a reasonable time and select no more than 3 final
4 applicants to make presentations of their bid proposals to
5 the Department.
6 (6) The final applicants shall make their
7 presentations to the Department on the same day during an
8 open session of the Department.
9 (7) As soon as practicable after the public
10 presentations by the final applicants, the Department, in
11 its discretion, may conduct further negotiations among the
12 3 final applicants. At the conclusion of such
13 negotiations, the Department shall select the winning bid.
14 (8) Upon selection of the winning bid, the Department
15 shall evaluate the winning bid within a reasonable period
16 of time for licensee suitability in accordance with all
17 applicable statutory and regulatory criteria.
18 (9) If the winning bidder is unable or otherwise fails
19 to consummate the transaction, (including if the
20 Department determines that the winning bidder does not
21 satisfy the suitability requirements), the Department may,
22 on the same criteria, select from the remaining bidders.
23 (10) The winning bidder shall pay $20,000,000 to the
24 Department upon being issued the central system provider
25 license.
26 (c) Every sports lottery terminal offered in this State

SB2254- 496 -LRB102 15486 SMS 20849 b
1for play shall first be tested and approved pursuant to the
2rules of the Department, and each sports lottery terminal
3offered in this State for play shall conform to an approved
4model. For the examination of sports lottery terminals and
5associated equipment as required by this Section, the central
6system provider may utilize the services of one or more
7independent outside testing laboratories that have been
8accredited by a national accreditation body and that, in the
9judgment of the Department, are qualified to perform such
10examinations. Every sports lottery terminal offered in this
11State for play must meet minimum standards set by an
12independent outside testing laboratory approved by the
13Department.
14 (d) During the first 360 days after the effective date of
15this Act, sport lottery terminals may be placed in no more than
162,500 Lottery retail locations in the State. Sports lottery
17terminals may be placed in an additional 2,500 Lottery retail
18locations during the second year after the effective date of
19this Act.
20 (e) A sports lottery terminal may not directly dispense
21coins, cash, tokens, or any other article of exchange or value
22except for receipt tickets. Tickets shall be dispensed by
23pressing the ticket dispensing button on the sports lottery
24terminal at the end of the placement of one's wager or wagers.
25The ticket shall indicate the total amount wagered, odds for
26each wager placed, and the cash award for each bet placed, the

SB2254- 497 -LRB102 15486 SMS 20849 b
1time of day in a 24-hour format showing hours and minutes, the
2date, the terminal serial number, the sequential number of the
3ticket, and an encrypted validation number from which the
4validity of the prize may be determined. The player shall turn
5in this ticket to the appropriate person at a lottery retailer
6to receive the cash award.
7 (f) No lottery retailer may cause or permit any person
8under the age of 21 years to use a sports lottery terminal or
9sports wagering application. A lottery retailer who knowingly
10causes or permits a person under the age of 21 years to use a
11sports lottery terminal or sports wagering application is
12guilty of a business offense and shall be fined an amount not
13to exceed $5,000.
14 (g) A sports lottery terminal shall only accept parlay
15wagers and fixed odds parlay wagers. The Department shall, by
16rule, establish the total amount, as a percentage, of all
17wagers placed that a lottery retailer may retain.
18 (h) The Department shall have jurisdiction over and shall
19supervise all lottery sports wagering operations governed by
20this Section. The Department shall have all powers necessary
21and proper to fully and effectively execute the provisions of
22this Section, including, but not limited to, the following:
23 (1) To investigate applicants and determine the
24 eligibility of applicants for licenses and to select among
25 competing applicants the applicants which best serve the
26 interests of the citizens of Illinois.

SB2254- 498 -LRB102 15486 SMS 20849 b
1 (2) To have jurisdiction and supervision over all
2 lottery sports wagering operations in this State.
3 (3) To adopt rules for the purpose of administering
4 the provisions of this Section and to adopt rules and
5 conditions under which all lottery sports wagering in the
6 State shall be conducted. Such rules are to provide for
7 the prevention of practices detrimental to the public
8 interest and for the best interests of lottery sports
9 wagering, including rules (i) regarding the inspection of
10 such licensees necessary to operate a lottery retailer
11 under any laws or rules applicable to licensees, (ii) to
12 impose penalties for violations of the Act and its rules,
13 and (iii) establishing standards for advertising lottery
14 sports wagering.
15 (i) The Department shall adopt emergency rules to
16administer this Section in accordance with Section 5-45 of the
17Illinois Administrative Procedure Act. For the purposes of the
18Illinois Administrative Procedure Act, the General Assembly
19finds that the adoption of rules to implement this Section is
20deemed an emergency and necessary to the public interest,
21safety, and welfare.
22 (j) For the privilege of operating lottery sports wagering
23under this Section, all proceeds minus net of proceeds
24returned to players shall be electronically transferred daily
25or weekly, at the discretion of the Director of the Lottery,
26into the State Lottery Fund. After amounts owed to the central

SB2254- 499 -LRB102 15486 SMS 20849 b
1system provider and licensed agents, as determined by the
2Department, are paid from the moneys deposited into the State
3Lottery Fund under this subsection, the remainder shall be
4transferred on the 15th of each month to the Capital Projects
5Fund.
6 (k) This Section is repealed on January 1, 2024.
7(Source: P.A. 101-31, eff. 6-28-19.)
8 (230 ILCS 45/25-75)
9 Sec. 25-75. Reporting prohibited conduct; investigations
10of prohibited conduct.
11 (a) The Division Board shall establish a hotline or other
12method of communication that allows any person to
13confidentially report information about prohibited conduct to
14the Division Board.
15 (b) The Division Board shall investigate all reasonable
16allegations of prohibited conduct and refer any allegations it
17deems credible to the appropriate law enforcement entity.
18 (c) The identity of any reporting person shall remain
19confidential unless that person authorizes disclosure of his
20or her identity or until such time as the allegation of
21prohibited conduct is referred to law enforcement.
22 (d) If the Division Board receives a complaint of
23prohibited conduct by an athlete, the Division Board shall
24notify the appropriate sports governing body of the athlete to
25review the complaint as provided by rule.

SB2254- 500 -LRB102 15486 SMS 20849 b
1 (e) The Division Board shall adopt emergency rules to
2administer this Section in accordance with Section 5-45 of the
3Illinois Administrative Procedure Act.
4 (f) The Division Board shall adopt rules governing
5investigations of prohibited conduct and referrals to law
6enforcement entities.
7(Source: P.A. 101-31, eff. 6-28-19.)
8 (230 ILCS 45/25-85)
9 Sec. 25-85. Supplier diversity goals for sports wagering.
10 (a) As used in this Section only, "licensee" means a
11licensee under this Act other than an occupational licensee.
12 (b) The public policy of this State is to collaboratively
13work with companies that serve Illinois residents to improve
14their supplier diversity in a non-antagonistic manner.
15 (c) The Board and the Department shall require all
16licensees under this Act to submit an annual report by April
1715, 2020 and every April 15 thereafter, in a searchable Adobe
18PDF format, on all procurement goals and actual spending for
19businesses owned by women, minorities, veterans, and persons
20with disabilities and small business enterprises in the
21previous calendar year. These goals shall be expressed as a
22percentage of the total work performed by the entity
23submitting the report, and the actual spending for all
24businesses owned by women, minorities, veterans, and persons
25with disabilities and small business enterprises shall also be

SB2254- 501 -LRB102 15486 SMS 20849 b
1expressed as a percentage of the total work performed by the
2entity submitting the report.
3 (d) Each licensee in its annual report shall include the
4following information:
5 (1) an explanation of the plan for the next year to
6 increase participation;
7 (2) an explanation of the plan to increase the goals;
8 (3) the areas of procurement each licensee shall be
9 actively seeking more participation in the next year;
10 (4) an outline of the plan to alert and encourage
11 potential vendors in that area to seek business from the
12 licensee;
13 (5) an explanation of the challenges faced in finding
14 quality vendors and offer any suggestions for what the
15 Division Board could do to be helpful to identify those
16 vendors;
17 (6) a list of the certifications the licensee
18 recognizes;
19 (7) the point of contact for any potential vendor who
20 wishes to do business with the licensee and explain the
21 process for a vendor to enroll with the licensee as a
22 businesses owned by women, minorities, veterans, or
23 persons with disabilities; and
24 (8) any particular success stories to encourage other
25 licensee to emulate best practices.
26 (e) Each annual report shall include as much

SB2254- 502 -LRB102 15486 SMS 20849 b
1State-specific data as possible. If the submitting entity does
2not submit State-specific data, then the licensee shall
3include any national data it does have and explain why it could
4not submit State-specific data and how it intends to do so in
5future reports, if possible.
6 (f) Each annual report shall include the rules,
7regulations, and definitions used for the procurement goals in
8the licensee's annual report.
9 (g) The Division Board, Department, and all licensees
10shall hold an annual workshop and job fair open to the public
11in 2020 and every year thereafter on the state of supplier
12diversity to collaboratively seek solutions to structural
13impediments to achieving stated goals, including testimony
14from each licensee as well as subject matter experts and
15advocates. The Board and Department shall publish a database
16on its website their websites of the point of contact for
17licensees they regulate under this Act for supplier diversity,
18along with a list of certifications each licensee recognizes
19from the information submitted in each annual report. The
20Board and Department shall publish each annual report on its
21website their websites and shall maintain each annual report
22for at least 5 years.
23(Source: P.A. 101-31, eff. 6-28-19.)
24 (230 ILCS 45/25-90)
25 Sec. 25-90. Tax; Sports Wagering Fund.

SB2254- 503 -LRB102 15486 SMS 20849 b
1 (a) For the privilege of holding a license to operate
2sports wagering under this Act, this State shall impose and
3collect 15% of a master sports wagering licensee's adjusted
4gross sports wagering receipts from sports wagering. The
5accrual method of accounting shall be used for purposes of
6calculating the amount of the tax owed by the licensee.
7 The taxes levied and collected pursuant to this subsection
8(a) are due and payable to the Division Board no later than the
9last day of the month following the calendar month in which the
10adjusted gross sports wagering receipts were received and the
11tax obligation was accrued.
12 (a-5) In addition to the tax imposed under subsection (a)
13of this Section, for the privilege of holding a license to
14operate sports wagering under this Act, the State shall impose
15and collect 2% of the adjusted gross receipts from sports
16wagers that are placed within a home rule county with a
17population of over 3,000,000 inhabitants, which shall be paid,
18subject to appropriation from the General Assembly, from the
19Sports Wagering Fund to that home rule county for the purpose
20of enhancing the county's criminal justice system.
21 (b) The Sports Wagering Fund is hereby created as special
22fund in the State treasury. Except as otherwise provided in
23this Act, all moneys collected under this Act by the Division
24Board shall be deposited into the Sports Wagering Fund. On the
2525th of each month, any moneys remaining in the Sports
26Wagering Fund shall be transferred to the Capital Projects

SB2254- 504 -LRB102 15486 SMS 20849 b
1Fund.
2(Source: P.A. 101-31, eff. 6-28-19.)
3 (230 ILCS 45/25-100)
4 Sec. 25-100. Voluntary self-exclusion program for sports
5wagering. Any resident, or non-resident if allowed to
6participate in sports wagering, may voluntarily prohibit
7himself or herself from establishing a sports wagering account
8with a licensee under this Act. The Board and Department shall
9incorporate the voluntary self-exclusion program for sports
10wagering into any existing self-exclusion program that it
11operates on the effective date of this Act.
12(Source: P.A. 101-31, eff. 6-28-19.)
13 (230 ILCS 45/25-105)
14 Sec. 25-105. Report to General Assembly. On or before
15January 15, 2021 and every January 15 thereafter, the Division
16Board shall provide a report to the General Assembly on sports
17wagering conducted under this Act.
18(Source: P.A. 101-31, eff. 6-28-19.)
19 Section 140. The State Fair Gaming Act is amended by
20changing Sections 30-5, 30-10, 30-20, and 30-25 as follows:
21 (230 ILCS 50/30-5)
22 Sec. 30-5. Definitions. As used in this Act:

SB2254- 505 -LRB102 15486 SMS 20849 b
1 "Board" means the Illinois Gaming Board.
2 "Department" means the Department of Agriculture.
3 "Division" means the Division of Video Gaming of the
4Department of Lottery and Gaming.
5 "State Fair" has the meaning given to that term in the
6State Fair Act.
7(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
8 (230 ILCS 50/30-10)
9 Sec. 30-10. Gaming at the State Fair.
10 (a) The Division Board shall issue a licensed
11establishment license to the Department to operate video
12gaming at the Illinois State Fairgrounds and at the DuQuoin
13State Fairgrounds. The Department shall select, under the
14Illinois Procurement Code, Division-licensed Board-licensed
15terminal operators for an operational period not to exceed 3
16years. At the conclusion of each 3-year cycle, the Illinois
17Procurement Code shall be used to determine the new terminal
18operators.
19 (b) Moneys bid by the terminal operators shall be
20deposited into the State Fairgrounds Capital Improvements and
21Harness Racing Fund.
22(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20.)
23 (230 ILCS 50/30-20)
24 Sec. 30-20. Revenue.

SB2254- 506 -LRB102 15486 SMS 20849 b
1 (a) Notwithstanding any other law to the contrary, a tax
2is imposed at the rate of 35% of net terminal income received
3from video gaming under this Act, which shall be remitted to
4the Division Board and deposited into the State Fairgrounds
5Capital Improvements and Harness Racing Fund.
6 (b) There is created within the State treasury the State
7Fairgrounds Capital Improvements and Harness Racing Fund. The
8Department of Agriculture shall use moneys in the State
9Fairgrounds Capital Improvements and Harness Racing Fund as
10follows and in the order of priority:
11 (1) to provide support for a harness race meeting
12 produced by an organization licensee under the Illinois
13 Horse Racing Act of 1975 and which shall consist of up to
14 30 days of live racing per year at the Illinois State
15 Fairgrounds in Springfield;
16 (2) to repair and rehabilitate fairgrounds'
17 backstretch facilities to such a level as determined by
18 the Department of Agriculture to be required to carry out
19 a program of live harness racing; and
20 (3) for the overall repair and rehabilitation of the
21 capital infrastructure of: (i) the Illinois State
22 Fairgrounds in Springfield, and (ii) the DuQuoin State
23 Fairgrounds in DuQuoin, and for no other purpose.
24 Notwithstanding any other law to the contrary, the entire
25State share of tax revenues from the race meetings under
26paragraph (1) of this subsection (c) shall be reinvested into

SB2254- 507 -LRB102 15486 SMS 20849 b
1the State Fairgrounds Capital Improvements and Harness Racing
2Fund.
3(Source: P.A. 101-31, eff. 6-28-19.)
4 (230 ILCS 50/30-25)
5 Sec. 30-25. Rules. The Division Board and the Department
6of Agriculture may adopt rules for the implementation of this
7Act.
8(Source: P.A. 101-31, eff. 6-28-19.)
9 Section 145. The Open Meetings Act is amended by changing
10Section 2 as follows:
11 (5 ILCS 120/2) (from Ch. 102, par. 42)
12 Sec. 2. Open meetings.
13 (a) Openness required. All meetings of public bodies shall
14be open to the public unless excepted in subsection (c) and
15closed in accordance with Section 2a.
16 (b) Construction of exceptions. The exceptions contained
17in subsection (c) are in derogation of the requirement that
18public bodies meet in the open, and therefore, the exceptions
19are to be strictly construed, extending only to subjects
20clearly within their scope. The exceptions authorize but do
21not require the holding of a closed meeting to discuss a
22subject included within an enumerated exception.
23 (c) Exceptions. A public body may hold closed meetings to

SB2254- 508 -LRB102 15486 SMS 20849 b
1consider the following subjects:
2 (1) The appointment, employment, compensation,
3 discipline, performance, or dismissal of specific
4 employees, specific individuals who serve as independent
5 contractors in a park, recreational, or educational
6 setting, or specific volunteers of the public body or
7 legal counsel for the public body, including hearing
8 testimony on a complaint lodged against an employee, a
9 specific individual who serves as an independent
10 contractor in a park, recreational, or educational
11 setting, or a volunteer of the public body or against
12 legal counsel for the public body to determine its
13 validity. However, a meeting to consider an increase in
14 compensation to a specific employee of a public body that
15 is subject to the Local Government Wage Increase
16 Transparency Act may not be closed and shall be open to the
17 public and posted and held in accordance with this Act.
18 (2) Collective negotiating matters between the public
19 body and its employees or their representatives, or
20 deliberations concerning salary schedules for one or more
21 classes of employees.
22 (3) The selection of a person to fill a public office,
23 as defined in this Act, including a vacancy in a public
24 office, when the public body is given power to appoint
25 under law or ordinance, or the discipline, performance or
26 removal of the occupant of a public office, when the

SB2254- 509 -LRB102 15486 SMS 20849 b
1 public body is given power to remove the occupant under
2 law or ordinance.
3 (4) Evidence or testimony presented in open hearing,
4 or in closed hearing where specifically authorized by law,
5 to a quasi-adjudicative body, as defined in this Act,
6 provided that the body prepares and makes available for
7 public inspection a written decision setting forth its
8 determinative reasoning.
9 (5) The purchase or lease of real property for the use
10 of the public body, including meetings held for the
11 purpose of discussing whether a particular parcel should
12 be acquired.
13 (6) The setting of a price for sale or lease of
14 property owned by the public body.
15 (7) The sale or purchase of securities, investments,
16 or investment contracts. This exception shall not apply to
17 the investment of assets or income of funds deposited into
18 the Illinois Prepaid Tuition Trust Fund.
19 (8) Security procedures, school building safety and
20 security, and the use of personnel and equipment to
21 respond to an actual, a threatened, or a reasonably
22 potential danger to the safety of employees, students,
23 staff, the public, or public property.
24 (9) Student disciplinary cases.
25 (10) The placement of individual students in special
26 education programs and other matters relating to

SB2254- 510 -LRB102 15486 SMS 20849 b
1 individual students.
2 (11) Litigation, when an action against, affecting or
3 on behalf of the particular public body has been filed and
4 is pending before a court or administrative tribunal, or
5 when the public body finds that an action is probable or
6 imminent, in which case the basis for the finding shall be
7 recorded and entered into the minutes of the closed
8 meeting.
9 (12) The establishment of reserves or settlement of
10 claims as provided in the Local Governmental and
11 Governmental Employees Tort Immunity Act, if otherwise the
12 disposition of a claim or potential claim might be
13 prejudiced, or the review or discussion of claims, loss or
14 risk management information, records, data, advice or
15 communications from or with respect to any insurer of the
16 public body or any intergovernmental risk management
17 association or self insurance pool of which the public
18 body is a member.
19 (13) Conciliation of complaints of discrimination in
20 the sale or rental of housing, when closed meetings are
21 authorized by the law or ordinance prescribing fair
22 housing practices and creating a commission or
23 administrative agency for their enforcement.
24 (14) Informant sources, the hiring or assignment of
25 undercover personnel or equipment, or ongoing, prior or
26 future criminal investigations, when discussed by a public

SB2254- 511 -LRB102 15486 SMS 20849 b
1 body with criminal investigatory responsibilities.
2 (15) Professional ethics or performance when
3 considered by an advisory body appointed to advise a
4 licensing or regulatory agency on matters germane to the
5 advisory body's field of competence.
6 (16) Self evaluation, practices and procedures or
7 professional ethics, when meeting with a representative of
8 a statewide association of which the public body is a
9 member.
10 (17) The recruitment, credentialing, discipline or
11 formal peer review of physicians or other health care
12 professionals, or for the discussion of matters protected
13 under the federal Patient Safety and Quality Improvement
14 Act of 2005, and the regulations promulgated thereunder,
15 including 42 C.F.R. Part 3 (73 FR 70732), or the federal
16 Health Insurance Portability and Accountability Act of
17 1996, and the regulations promulgated thereunder,
18 including 45 C.F.R. Parts 160, 162, and 164, by a
19 hospital, or other institution providing medical care,
20 that is operated by the public body.
21 (18) Deliberations for decisions of the Prisoner
22 Review Board.
23 (19) Review or discussion of applications received
24 under the Experimental Organ Transplantation Procedures
25 Act.
26 (20) The classification and discussion of matters

SB2254- 512 -LRB102 15486 SMS 20849 b
1 classified as confidential or continued confidential by
2 the State Government Suggestion Award Board.
3 (21) Discussion of minutes of meetings lawfully closed
4 under this Act, whether for purposes of approval by the
5 body of the minutes or semi-annual review of the minutes
6 as mandated by Section 2.06.
7 (22) Deliberations for decisions of the State
8 Emergency Medical Services Disciplinary Review Board.
9 (23) The operation by a municipality of a municipal
10 utility or the operation of a municipal power agency or
11 municipal natural gas agency when the discussion involves
12 (i) contracts relating to the purchase, sale, or delivery
13 of electricity or natural gas or (ii) the results or
14 conclusions of load forecast studies.
15 (24) Meetings of a residential health care facility
16 resident sexual assault and death review team or the
17 Executive Council under the Abuse Prevention Review Team
18 Act.
19 (25) Meetings of an independent team of experts under
20 Brian's Law.
21 (26) Meetings of a mortality review team appointed
22 under the Department of Juvenile Justice Mortality Review
23 Team Act.
24 (27) (Blank).
25 (28) Correspondence and records (i) that may not be
26 disclosed under Section 11-9 of the Illinois Public Aid

SB2254- 513 -LRB102 15486 SMS 20849 b
1 Code or (ii) that pertain to appeals under Section 11-8 of
2 the Illinois Public Aid Code.
3 (29) Meetings between internal or external auditors
4 and governmental audit committees, finance committees, and
5 their equivalents, when the discussion involves internal
6 control weaknesses, identification of potential fraud risk
7 areas, known or suspected frauds, and fraud interviews
8 conducted in accordance with generally accepted auditing
9 standards of the United States of America.
10 (30) Those meetings or portions of meetings of a
11 fatality review team or the Illinois Fatality Review Team
12 Advisory Council during which a review of the death of an
13 eligible adult in which abuse or neglect is suspected,
14 alleged, or substantiated is conducted pursuant to Section
15 15 of the Adult Protective Services Act.
16 (31) Meetings and deliberations for decisions of the
17 Concealed Carry Licensing Review Board under the Firearm
18 Concealed Carry Act.
19 (32) Meetings between the Regional Transportation
20 Authority Board and its Service Boards when the discussion
21 involves review by the Regional Transportation Authority
22 Board of employment contracts under Section 28d of the
23 Metropolitan Transit Authority Act and Sections 3A.18 and
24 3B.26 of the Regional Transportation Authority Act.
25 (33) Those meetings or portions of meetings of the
26 advisory committee and peer review subcommittee created

SB2254- 514 -LRB102 15486 SMS 20849 b
1 under Section 320 of the Illinois Controlled Substances
2 Act during which specific controlled substance prescriber,
3 dispenser, or patient information is discussed.
4 (34) Meetings of the Tax Increment Financing Reform
5 Task Force under Section 2505-800 of the Department of
6 Revenue Law of the Civil Administrative Code of Illinois.
7 (35) Meetings of the group established to discuss
8 Medicaid capitation rates under Section 5-30.8 of the
9 Illinois Public Aid Code.
10 (36) Those deliberations or portions of deliberations
11 for decisions of any Division of the Department of Lottery
12 and Gaming the Illinois Gaming Board in which there is
13 discussed any of the following: (i) personal, commercial,
14 financial, or other information obtained from any source
15 that is privileged, proprietary, confidential, or a trade
16 secret; or (ii) information specifically exempted from the
17 disclosure by federal or State law.
18 (d) Definitions. For purposes of this Section:
19 "Employee" means a person employed by a public body whose
20relationship with the public body constitutes an
21employer-employee relationship under the usual common law
22rules, and who is not an independent contractor.
23 "Public office" means a position created by or under the
24Constitution or laws of this State, the occupant of which is
25charged with the exercise of some portion of the sovereign
26power of this State. The term "public office" shall include

SB2254- 515 -LRB102 15486 SMS 20849 b
1members of the public body, but it shall not include
2organizational positions filled by members thereof, whether
3established by law or by a public body itself, that exist to
4assist the body in the conduct of its business.
5 "Quasi-adjudicative body" means an administrative body
6charged by law or ordinance with the responsibility to conduct
7hearings, receive evidence or testimony and make
8determinations based thereon, but does not include local
9electoral boards when such bodies are considering petition
10challenges.
11 (e) Final action. No final action may be taken at a closed
12meeting. Final action shall be preceded by a public recital of
13the nature of the matter being considered and other
14information that will inform the public of the business being
15conducted.
16(Source: P.A. 100-201, eff. 8-18-17; 100-465, eff. 8-31-17;
17100-646, eff. 7-27-18; 101-31, eff. 6-28-19; 101-459, eff.
188-23-19; revised 9-27-19.)
19 Section 150. The Illinois Public Labor Relations Act is
20amended by changing Section 3 as follows:
21 (5 ILCS 315/3) (from Ch. 48, par. 1603)
22 Sec. 3. Definitions. As used in this Act, unless the
23context otherwise requires:
24 (a) "Board" means the Illinois Labor Relations Board or,

SB2254- 516 -LRB102 15486 SMS 20849 b
1with respect to a matter over which the jurisdiction of the
2Board is assigned to the State Panel or the Local Panel under
3Section 5, the panel having jurisdiction over the matter.
4 (b) "Collective bargaining" means bargaining over terms
5and conditions of employment, including hours, wages, and
6other conditions of employment, as detailed in Section 7 and
7which are not excluded by Section 4.
8 (c) "Confidential employee" means an employee who, in the
9regular course of his or her duties, assists and acts in a
10confidential capacity to persons who formulate, determine, and
11effectuate management policies with regard to labor relations
12or who, in the regular course of his or her duties, has
13authorized access to information relating to the effectuation
14or review of the employer's collective bargaining policies.
15 (d) "Craft employees" means skilled journeymen, crafts
16persons, and their apprentices and helpers.
17 (e) "Essential services employees" means those public
18employees performing functions so essential that the
19interruption or termination of the function will constitute a
20clear and present danger to the health and safety of the
21persons in the affected community.
22 (f) "Exclusive representative", except with respect to
23non-State fire fighters and paramedics employed by fire
24departments and fire protection districts, non-State peace
25officers, and peace officers in the Department of State
26Police, means the labor organization that has been (i)

SB2254- 517 -LRB102 15486 SMS 20849 b
1designated by the Board as the representative of a majority of
2public employees in an appropriate bargaining unit in
3accordance with the procedures contained in this Act, (ii)
4historically recognized by the State of Illinois or any
5political subdivision of the State before July 1, 1984 (the
6effective date of this Act) as the exclusive representative of
7the employees in an appropriate bargaining unit, (iii) after
8July 1, 1984 (the effective date of this Act) recognized by an
9employer upon evidence, acceptable to the Board, that the
10labor organization has been designated as the exclusive
11representative by a majority of the employees in an
12appropriate bargaining unit; (iv) recognized as the exclusive
13representative of personal assistants under Executive Order
142003-8 prior to the effective date of this amendatory Act of
15the 93rd General Assembly, and the organization shall be
16considered to be the exclusive representative of the personal
17assistants as defined in this Section; or (v) recognized as
18the exclusive representative of child and day care home
19providers, including licensed and license exempt providers,
20pursuant to an election held under Executive Order 2005-1
21prior to the effective date of this amendatory Act of the 94th
22General Assembly, and the organization shall be considered to
23be the exclusive representative of the child and day care home
24providers as defined in this Section.
25 With respect to non-State fire fighters and paramedics
26employed by fire departments and fire protection districts,

SB2254- 518 -LRB102 15486 SMS 20849 b
1non-State peace officers, and peace officers in the Department
2of State Police, "exclusive representative" means the labor
3organization that has been (i) designated by the Board as the
4representative of a majority of peace officers or fire
5fighters in an appropriate bargaining unit in accordance with
6the procedures contained in this Act, (ii) historically
7recognized by the State of Illinois or any political
8subdivision of the State before January 1, 1986 (the effective
9date of this amendatory Act of 1985) as the exclusive
10representative by a majority of the peace officers or fire
11fighters in an appropriate bargaining unit, or (iii) after
12January 1, 1986 (the effective date of this amendatory Act of
131985) recognized by an employer upon evidence, acceptable to
14the Board, that the labor organization has been designated as
15the exclusive representative by a majority of the peace
16officers or fire fighters in an appropriate bargaining unit.
17 Where a historical pattern of representation exists for
18the workers of a water system that was owned by a public
19utility, as defined in Section 3-105 of the Public Utilities
20Act, prior to becoming certified employees of a municipality
21or municipalities once the municipality or municipalities have
22acquired the water system as authorized in Section 11-124-5 of
23the Illinois Municipal Code, the Board shall find the labor
24organization that has historically represented the workers to
25be the exclusive representative under this Act, and shall find
26the unit represented by the exclusive representative to be the

SB2254- 519 -LRB102 15486 SMS 20849 b
1appropriate unit.
2 (g) "Fair share agreement" means an agreement between the
3employer and an employee organization under which all or any
4of the employees in a collective bargaining unit are required
5to pay their proportionate share of the costs of the
6collective bargaining process, contract administration, and
7pursuing matters affecting wages, hours, and other conditions
8of employment, but not to exceed the amount of dues uniformly
9required of members. The amount certified by the exclusive
10representative shall not include any fees for contributions
11related to the election or support of any candidate for
12political office. Nothing in this subsection (g) shall
13preclude an employee from making voluntary political
14contributions in conjunction with his or her fair share
15payment.
16 (g-1) "Fire fighter" means, for the purposes of this Act
17only, any person who has been or is hereafter appointed to a
18fire department or fire protection district or employed by a
19state university and sworn or commissioned to perform fire
20fighter duties or paramedic duties, including paramedics
21employed by a unit of local government, except that the
22following persons are not included: part-time fire fighters,
23auxiliary, reserve or voluntary fire fighters, including paid
24on-call fire fighters, clerks and dispatchers or other
25civilian employees of a fire department or fire protection
26district who are not routinely expected to perform fire

SB2254- 520 -LRB102 15486 SMS 20849 b
1fighter duties, or elected officials.
2 (g-2) "General Assembly of the State of Illinois" means
3the legislative branch of the government of the State of
4Illinois, as provided for under Article IV of the Constitution
5of the State of Illinois, and includes but is not limited to
6the House of Representatives, the Senate, the Speaker of the
7House of Representatives, the Minority Leader of the House of
8Representatives, the President of the Senate, the Minority
9Leader of the Senate, the Joint Committee on Legislative
10Support Services and any legislative support services agency
11listed in the Legislative Commission Reorganization Act of
121984.
13 (h) "Governing body" means, in the case of the State, the
14State Panel of the Illinois Labor Relations Board, the
15Director of the Department of Central Management Services, and
16the Director of the Department of Labor; the county board in
17the case of a county; the corporate authorities in the case of
18a municipality; and the appropriate body authorized to provide
19for expenditures of its funds in the case of any other unit of
20government.
21 (i) "Labor organization" means any organization in which
22public employees participate and that exists for the purpose,
23in whole or in part, of dealing with a public employer
24concerning wages, hours, and other terms and conditions of
25employment, including the settlement of grievances.
26 (i-5) "Legislative liaison" means a person who is an

SB2254- 521 -LRB102 15486 SMS 20849 b
1employee of a State agency, the Attorney General, the
2Secretary of State, the Comptroller, or the Treasurer, as the
3case may be, and whose job duties require the person to
4regularly communicate in the course of his or her employment
5with any official or staff of the General Assembly of the State
6of Illinois for the purpose of influencing any legislative
7action.
8 (j) "Managerial employee" means an individual who is
9engaged predominantly in executive and management functions
10and is charged with the responsibility of directing the
11effectuation of management policies and practices. With
12respect only to State employees in positions under the
13jurisdiction of the Attorney General, Secretary of State,
14Comptroller, or Treasurer (i) that were certified in a
15bargaining unit on or after December 2, 2008, (ii) for which a
16petition is filed with the Illinois Public Labor Relations
17Board on or after April 5, 2013 (the effective date of Public
18Act 97-1172), or (iii) for which a petition is pending before
19the Illinois Public Labor Relations Board on that date,
20"managerial employee" means an individual who is engaged in
21executive and management functions or who is charged with the
22effectuation of management policies and practices or who
23represents management interests by taking or recommending
24discretionary actions that effectively control or implement
25policy. Nothing in this definition prohibits an individual
26from also meeting the definition of "supervisor" under

SB2254- 522 -LRB102 15486 SMS 20849 b
1subsection (r) of this Section.
2 (k) "Peace officer" means, for the purposes of this Act
3only, any persons who have been or are hereafter appointed to a
4police force, department, or agency and sworn or commissioned
5to perform police duties, except that the following persons
6are not included: part-time police officers, special police
7officers, auxiliary police as defined by Section 3.1-30-20 of
8the Illinois Municipal Code, night watchmen, "merchant
9police", court security officers as defined by Section
103-6012.1 of the Counties Code, temporary employees, traffic
11guards or wardens, civilian parking meter and parking
12facilities personnel or other individuals specially appointed
13to aid or direct traffic at or near schools or public functions
14or to aid in civil defense or disaster, parking enforcement
15employees who are not commissioned as peace officers and who
16are not armed and who are not routinely expected to effect
17arrests, parking lot attendants, clerks and dispatchers or
18other civilian employees of a police department who are not
19routinely expected to effect arrests, or elected officials.
20 (l) "Person" includes one or more individuals, labor
21organizations, public employees, associations, corporations,
22legal representatives, trustees, trustees in bankruptcy,
23receivers, or the State of Illinois or any political
24subdivision of the State or governing body, but does not
25include the General Assembly of the State of Illinois or any
26individual employed by the General Assembly of the State of

SB2254- 523 -LRB102 15486 SMS 20849 b
1Illinois.
2 (m) "Professional employee" means any employee engaged in
3work predominantly intellectual and varied in character rather
4than routine mental, manual, mechanical or physical work;
5involving the consistent exercise of discretion and adjustment
6in its performance; of such a character that the output
7produced or the result accomplished cannot be standardized in
8relation to a given period of time; and requiring advanced
9knowledge in a field of science or learning customarily
10acquired by a prolonged course of specialized intellectual
11instruction and study in an institution of higher learning or
12a hospital, as distinguished from a general academic education
13or from apprenticeship or from training in the performance of
14routine mental, manual, or physical processes; or any employee
15who has completed the courses of specialized intellectual
16instruction and study prescribed in this subsection (m) and is
17performing related work under the supervision of a
18professional person to qualify to become a professional
19employee as defined in this subsection (m).
20 (n) "Public employee" or "employee", for the purposes of
21this Act, means any individual employed by a public employer,
22including (i) interns and residents at public hospitals, (ii)
23as of the effective date of this amendatory Act of the 93rd
24General Assembly, but not before, personal assistants working
25under the Home Services Program under Section 3 of the
26Rehabilitation of Persons with Disabilities Act, subject to

SB2254- 524 -LRB102 15486 SMS 20849 b
1the limitations set forth in this Act and in the
2Rehabilitation of Persons with Disabilities Act, (iii) as of
3the effective date of this amendatory Act of the 94th General
4Assembly, but not before, child and day care home providers
5participating in the child care assistance program under
6Section 9A-11 of the Illinois Public Aid Code, subject to the
7limitations set forth in this Act and in Section 9A-11 of the
8Illinois Public Aid Code, (iv) as of January 29, 2013 (the
9effective date of Public Act 97-1158), but not before except
10as otherwise provided in this subsection (n), home care and
11home health workers who function as personal assistants and
12individual maintenance home health workers and who also work
13under the Home Services Program under Section 3 of the
14Rehabilitation of Persons with Disabilities Act, no matter
15whether the State provides those services through direct
16fee-for-service arrangements, with the assistance of a managed
17care organization or other intermediary, or otherwise, (v)
18beginning on the effective date of this amendatory Act of the
1998th General Assembly and notwithstanding any other provision
20of this Act, any person employed by a public employer and who
21is classified as or who holds the employment title of Chief
22Stationary Engineer, Assistant Chief Stationary Engineer,
23Sewage Plant Operator, Water Plant Operator, Stationary
24Engineer, Plant Operating Engineer, and any other employee who
25holds the position of: Civil Engineer V, Civil Engineer VI,
26Civil Engineer VII, Technical Manager I, Technical Manager II,

SB2254- 525 -LRB102 15486 SMS 20849 b
1Technical Manager III, Technical Manager IV, Technical Manager
2V, Technical Manager VI, Realty Specialist III, Realty
3Specialist IV, Realty Specialist V, Technical Advisor I,
4Technical Advisor II, Technical Advisor III, Technical Advisor
5IV, or Technical Advisor V employed by the Department of
6Transportation who is in a position which is certified in a
7bargaining unit on or before the effective date of this
8amendatory Act of the 98th General Assembly, and (vi)
9beginning on the effective date of this amendatory Act of the
1098th General Assembly and notwithstanding any other provision
11of this Act, any mental health administrator in the Department
12of Corrections who is classified as or who holds the position
13of Public Service Administrator (Option 8K), any employee of
14the Office of the Inspector General in the Department of Human
15Services who is classified as or who holds the position of
16Public Service Administrator (Option 7), any Deputy of
17Intelligence in the Department of Corrections who is
18classified as or who holds the position of Public Service
19Administrator (Option 7), and any employee of the Department
20of State Police who handles issues concerning the Illinois
21State Police Sex Offender Registry and who is classified as or
22holds the position of Public Service Administrator (Option 7),
23but excluding all of the following: employees of the General
24Assembly of the State of Illinois; elected officials;
25executive heads of a department; members of boards or
26commissions; the Executive Inspectors General; any special

SB2254- 526 -LRB102 15486 SMS 20849 b
1Executive Inspectors General; employees of each Office of an
2Executive Inspector General; commissioners and employees of
3the Executive Ethics Commission; the Auditor General's
4Inspector General; employees of the Office of the Auditor
5General's Inspector General; the Legislative Inspector
6General; any special Legislative Inspectors General; employees
7of the Office of the Legislative Inspector General;
8commissioners and employees of the Legislative Ethics
9Commission; employees of any agency, board or commission
10created by this Act; employees appointed to State positions of
11a temporary or emergency nature; all employees of school
12districts and higher education institutions except
13firefighters and peace officers employed by a state university
14and except peace officers employed by a school district in its
15own police department in existence on the effective date of
16this amendatory Act of the 96th General Assembly; managerial
17employees; short-term employees; legislative liaisons; a
18person who is a State employee under the jurisdiction of the
19Office of the Attorney General who is licensed to practice law
20or whose position authorizes, either directly or indirectly,
21meaningful input into government decision-making on issues
22where there is room for principled disagreement on goals or
23their implementation; a person who is a State employee under
24the jurisdiction of the Office of the Comptroller who holds
25the position of Public Service Administrator or whose position
26is otherwise exempt under the Comptroller Merit Employment

SB2254- 527 -LRB102 15486 SMS 20849 b
1Code; a person who is a State employee under the jurisdiction
2of the Secretary of State who holds the position
3classification of Executive I or higher, whose position
4authorizes, either directly or indirectly, meaningful input
5into government decision-making on issues where there is room
6for principled disagreement on goals or their implementation,
7or who is otherwise exempt under the Secretary of State Merit
8Employment Code; employees in the Office of the Secretary of
9State who are completely exempt from jurisdiction B of the
10Secretary of State Merit Employment Code and who are in
11Rutan-exempt positions on or after April 5, 2013 (the
12effective date of Public Act 97-1172); a person who is a State
13employee under the jurisdiction of the Treasurer who holds a
14position that is exempt from the State Treasurer Employment
15Code; any employee of a State agency who (i) holds the title or
16position of, or exercises substantially similar duties as a
17legislative liaison, Agency General Counsel, Agency Chief of
18Staff, Agency Executive Director, Agency Deputy Director,
19Agency Chief Fiscal Officer, Agency Human Resources Director,
20Public Information Officer, or Chief Information Officer and
21(ii) was neither included in a bargaining unit nor subject to
22an active petition for certification in a bargaining unit; any
23employee of a State agency who (i) is in a position that is
24Rutan-exempt, as designated by the employer, and completely
25exempt from jurisdiction B of the Personnel Code and (ii) was
26neither included in a bargaining unit nor subject to an active

SB2254- 528 -LRB102 15486 SMS 20849 b
1petition for certification in a bargaining unit; any term
2appointed employee of a State agency pursuant to Section 8b.18
3or 8b.19 of the Personnel Code who was neither included in a
4bargaining unit nor subject to an active petition for
5certification in a bargaining unit; any employment position
6properly designated pursuant to Section 6.1 of this Act;
7confidential employees; independent contractors; and
8supervisors except as provided in this Act.
9 Home care and home health workers who function as personal
10assistants and individual maintenance home health workers and
11who also work under the Home Services Program under Section 3
12of the Rehabilitation of Persons with Disabilities Act shall
13not be considered public employees for any purposes not
14specifically provided for in Public Act 93-204 or Public Act
1597-1158, including but not limited to, purposes of vicarious
16liability in tort and purposes of statutory retirement or
17health insurance benefits. Home care and home health workers
18who function as personal assistants and individual maintenance
19home health workers and who also work under the Home Services
20Program under Section 3 of the Rehabilitation of Persons with
21Disabilities Act shall not be covered by the State Employees
22Group Insurance Act of 1971 (5 ILCS 375/).
23 Child and day care home providers shall not be considered
24public employees for any purposes not specifically provided
25for in this amendatory Act of the 94th General Assembly,
26including but not limited to, purposes of vicarious liability

SB2254- 529 -LRB102 15486 SMS 20849 b
1in tort and purposes of statutory retirement or health
2insurance benefits. Child and day care home providers shall
3not be covered by the State Employees Group Insurance Act of
41971.
5 Notwithstanding Section 9, subsection (c), or any other
6provisions of this Act, all peace officers above the rank of
7captain in municipalities with more than 1,000,000 inhabitants
8shall be excluded from this Act.
9 (o) Except as otherwise in subsection (o-5), "public
10employer" or "employer" means the State of Illinois; any
11political subdivision of the State, unit of local government
12or school district; authorities including departments,
13divisions, bureaus, boards, commissions, or other agencies of
14the foregoing entities; and any person acting within the scope
15of his or her authority, express or implied, on behalf of those
16entities in dealing with its employees. As of the effective
17date of the amendatory Act of the 93rd General Assembly, but
18not before, the State of Illinois shall be considered the
19employer of the personal assistants working under the Home
20Services Program under Section 3 of the Rehabilitation of
21Persons with Disabilities Act, subject to the limitations set
22forth in this Act and in the Rehabilitation of Persons with
23Disabilities Act. As of January 29, 2013 (the effective date
24of Public Act 97-1158), but not before except as otherwise
25provided in this subsection (o), the State shall be considered
26the employer of home care and home health workers who function

SB2254- 530 -LRB102 15486 SMS 20849 b
1as personal assistants and individual maintenance home health
2workers and who also work under the Home Services Program
3under Section 3 of the Rehabilitation of Persons with
4Disabilities Act, no matter whether the State provides those
5services through direct fee-for-service arrangements, with the
6assistance of a managed care organization or other
7intermediary, or otherwise, but subject to the limitations set
8forth in this Act and the Rehabilitation of Persons with
9Disabilities Act. The State shall not be considered to be the
10employer of home care and home health workers who function as
11personal assistants and individual maintenance home health
12workers and who also work under the Home Services Program
13under Section 3 of the Rehabilitation of Persons with
14Disabilities Act, for any purposes not specifically provided
15for in Public Act 93-204 or Public Act 97-1158, including but
16not limited to, purposes of vicarious liability in tort and
17purposes of statutory retirement or health insurance benefits.
18Home care and home health workers who function as personal
19assistants and individual maintenance home health workers and
20who also work under the Home Services Program under Section 3
21of the Rehabilitation of Persons with Disabilities Act shall
22not be covered by the State Employees Group Insurance Act of
231971 (5 ILCS 375/). As of the effective date of this amendatory
24Act of the 94th General Assembly but not before, the State of
25Illinois shall be considered the employer of the day and child
26care home providers participating in the child care assistance

SB2254- 531 -LRB102 15486 SMS 20849 b
1program under Section 9A-11 of the Illinois Public Aid Code,
2subject to the limitations set forth in this Act and in Section
39A-11 of the Illinois Public Aid Code. The State shall not be
4considered to be the employer of child and day care home
5providers for any purposes not specifically provided for in
6this amendatory Act of the 94th General Assembly, including
7but not limited to, purposes of vicarious liability in tort
8and purposes of statutory retirement or health insurance
9benefits. Child and day care home providers shall not be
10covered by the State Employees Group Insurance Act of 1971.
11 "Public employer" or "employer" as used in this Act,
12however, does not mean and shall not include the General
13Assembly of the State of Illinois, the Executive Ethics
14Commission, the Offices of the Executive Inspectors General,
15the Legislative Ethics Commission, the Office of the
16Legislative Inspector General, the Office of the Auditor
17General's Inspector General, the Office of the Governor, the
18Governor's Office of Management and Budget, the Illinois
19Finance Authority, the Office of the Lieutenant Governor, the
20State Board of Elections, and educational employers or
21employers as defined in the Illinois Educational Labor
22Relations Act, except with respect to a state university in
23its employment of firefighters and peace officers and except
24with respect to a school district in the employment of peace
25officers in its own police department in existence on the
26effective date of this amendatory Act of the 96th General

SB2254- 532 -LRB102 15486 SMS 20849 b
1Assembly. County boards and county sheriffs shall be
2designated as joint or co-employers of county peace officers
3appointed under the authority of a county sheriff. Nothing in
4this subsection (o) shall be construed to prevent the State
5Panel or the Local Panel from determining that employers are
6joint or co-employers.
7 (o-5) With respect to wages, fringe benefits, hours,
8holidays, vacations, proficiency examinations, sick leave, and
9other conditions of employment, the public employer of public
10employees who are court reporters, as defined in the Court
11Reporters Act, shall be determined as follows:
12 (1) For court reporters employed by the Cook County
13 Judicial Circuit, the chief judge of the Cook County
14 Circuit Court is the public employer and employer
15 representative.
16 (2) For court reporters employed by the 12th, 18th,
17 19th, and, on and after December 4, 2006, the 22nd
18 judicial circuits, a group consisting of the chief judges
19 of those circuits, acting jointly by majority vote, is the
20 public employer and employer representative.
21 (3) For court reporters employed by all other judicial
22 circuits, a group consisting of the chief judges of those
23 circuits, acting jointly by majority vote, is the public
24 employer and employer representative.
25 (p) "Security employee" means an employee who is
26responsible for the supervision and control of inmates at

SB2254- 533 -LRB102 15486 SMS 20849 b
1correctional facilities. The term also includes other
2non-security employees in bargaining units having the majority
3of employees being responsible for the supervision and control
4of inmates at correctional facilities.
5 (q) "Short-term employee" means an employee who is
6employed for less than 2 consecutive calendar quarters during
7a calendar year and who does not have a reasonable assurance
8that he or she will be rehired by the same employer for the
9same service in a subsequent calendar year.
10 (q-5) "State agency" means an agency directly responsible
11to the Governor, as defined in Section 3.1 of the Executive
12Reorganization Implementation Act, and the Illinois Commerce
13Commission, the Illinois Workers' Compensation Commission, the
14Civil Service Commission, the Pollution Control Board, the
15Department of Lottery and Gaming Illinois Racing Board, and
16the Department of State Police Merit Board.
17 (r) "Supervisor" is:
18 (1) An employee whose principal work is substantially
19 different from that of his or her subordinates and who has
20 authority, in the interest of the employer, to hire,
21 transfer, suspend, lay off, recall, promote, discharge,
22 direct, reward, or discipline employees, to adjust their
23 grievances, or to effectively recommend any of those
24 actions, if the exercise of that authority is not of a
25 merely routine or clerical nature, but requires the
26 consistent use of independent judgment. Except with

SB2254- 534 -LRB102 15486 SMS 20849 b
1 respect to police employment, the term "supervisor"
2 includes only those individuals who devote a preponderance
3 of their employment time to exercising that authority,
4 State supervisors notwithstanding. Nothing in this
5 definition prohibits an individual from also meeting the
6 definition of "managerial employee" under subsection (j)
7 of this Section. In addition, in determining supervisory
8 status in police employment, rank shall not be
9 determinative. The Board shall consider, as evidence of
10 bargaining unit inclusion or exclusion, the common law
11 enforcement policies and relationships between police
12 officer ranks and certification under applicable civil
13 service law, ordinances, personnel codes, or Division 2.1
14 of Article 10 of the Illinois Municipal Code, but these
15 factors shall not be the sole or predominant factors
16 considered by the Board in determining police supervisory
17 status.
18 Notwithstanding the provisions of the preceding
19 paragraph, in determining supervisory status in fire
20 fighter employment, no fire fighter shall be excluded as a
21 supervisor who has established representation rights under
22 Section 9 of this Act. Further, in new fire fighter units,
23 employees shall consist of fire fighters of the rank of
24 company officer and below. If a company officer otherwise
25 qualifies as a supervisor under the preceding paragraph,
26 however, he or she shall not be included in the fire

SB2254- 535 -LRB102 15486 SMS 20849 b
1 fighter unit. If there is no rank between that of chief and
2 the highest company officer, the employer may designate a
3 position on each shift as a Shift Commander, and the
4 persons occupying those positions shall be supervisors.
5 All other ranks above that of company officer shall be
6 supervisors.
7 (2) With respect only to State employees in positions
8 under the jurisdiction of the Attorney General, Secretary
9 of State, Comptroller, or Treasurer (i) that were
10 certified in a bargaining unit on or after December 2,
11 2008, (ii) for which a petition is filed with the Illinois
12 Public Labor Relations Board on or after April 5, 2013
13 (the effective date of Public Act 97-1172), or (iii) for
14 which a petition is pending before the Illinois Public
15 Labor Relations Board on that date, an employee who
16 qualifies as a supervisor under (A) Section 152 of the
17 National Labor Relations Act and (B) orders of the
18 National Labor Relations Board interpreting that provision
19 or decisions of courts reviewing decisions of the National
20 Labor Relations Board.
21 (s)(1) "Unit" means a class of jobs or positions that are
22held by employees whose collective interests may suitably be
23represented by a labor organization for collective bargaining.
24Except with respect to non-State fire fighters and paramedics
25employed by fire departments and fire protection districts,
26non-State peace officers, and peace officers in the Department

SB2254- 536 -LRB102 15486 SMS 20849 b
1of State Police, a bargaining unit determined by the Board
2shall not include both employees and supervisors, or
3supervisors only, except as provided in paragraph (2) of this
4subsection (s) and except for bargaining units in existence on
5July 1, 1984 (the effective date of this Act). With respect to
6non-State fire fighters and paramedics employed by fire
7departments and fire protection districts, non-State peace
8officers, and peace officers in the Department of State
9Police, a bargaining unit determined by the Board shall not
10include both supervisors and nonsupervisors, or supervisors
11only, except as provided in paragraph (2) of this subsection
12(s) and except for bargaining units in existence on January 1,
131986 (the effective date of this amendatory Act of 1985). A
14bargaining unit determined by the Board to contain peace
15officers shall contain no employees other than peace officers
16unless otherwise agreed to by the employer and the labor
17organization or labor organizations involved. Notwithstanding
18any other provision of this Act, a bargaining unit, including
19a historical bargaining unit, containing sworn peace officers
20of the Department of Natural Resources (formerly designated
21the Department of Conservation) shall contain no employees
22other than such sworn peace officers upon the effective date
23of this amendatory Act of 1990 or upon the expiration date of
24any collective bargaining agreement in effect upon the
25effective date of this amendatory Act of 1990 covering both
26such sworn peace officers and other employees.

SB2254- 537 -LRB102 15486 SMS 20849 b
1 (2) Notwithstanding the exclusion of supervisors from
2bargaining units as provided in paragraph (1) of this
3subsection (s), a public employer may agree to permit its
4supervisory employees to form bargaining units and may bargain
5with those units. This Act shall apply if the public employer
6chooses to bargain under this subsection.
7 (3) Public employees who are court reporters, as defined
8in the Court Reporters Act, shall be divided into 3 units for
9collective bargaining purposes. One unit shall be court
10reporters employed by the Cook County Judicial Circuit; one
11unit shall be court reporters employed by the 12th, 18th,
1219th, and, on and after December 4, 2006, the 22nd judicial
13circuits; and one unit shall be court reporters employed by
14all other judicial circuits.
15 (t) "Active petition for certification in a bargaining
16unit" means a petition for certification filed with the Board
17under one of the following case numbers: S-RC-11-110;
18S-RC-11-098; S-UC-11-080; S-RC-11-086; S-RC-11-074;
19S-RC-11-076; S-RC-11-078; S-UC-11-052; S-UC-11-054;
20S-RC-11-062; S-RC-11-060; S-RC-11-042; S-RC-11-014;
21S-RC-11-016; S-RC-11-020; S-RC-11-030; S-RC-11-004;
22S-RC-10-244; S-RC-10-228; S-RC-10-222; S-RC-10-220;
23S-RC-10-214; S-RC-10-196; S-RC-10-194; S-RC-10-178;
24S-RC-10-176; S-RC-10-162; S-RC-10-156; S-RC-10-088;
25S-RC-10-074; S-RC-10-076; S-RC-10-078; S-RC-10-060;
26S-RC-10-070; S-RC-10-044; S-RC-10-038; S-RC-10-040;

SB2254- 538 -LRB102 15486 SMS 20849 b
1S-RC-10-042; S-RC-10-018; S-RC-10-024; S-RC-10-004;
2S-RC-10-006; S-RC-10-008; S-RC-10-010; S-RC-10-012;
3S-RC-09-202; S-RC-09-182; S-RC-09-180; S-RC-09-156;
4S-UC-09-196; S-UC-09-182; S-RC-08-130; S-RC-07-110; or
5S-RC-07-100.
6(Source: P.A. 99-143, eff. 7-27-15; 100-1131, eff. 11-28-18.)
7 Section 155. The State Officials and Employees Ethics Act
8is amended by changing Sections 5-45 and 5-50 as follows:
9 (5 ILCS 430/5-45)
10 Sec. 5-45. Procurement; revolving door prohibition.
11 (a) No former officer, member, or State employee, or
12spouse or immediate family member living with such person,
13shall, within a period of one year immediately after
14termination of State employment, knowingly accept employment
15or receive compensation or fees for services from a person or
16entity if the officer, member, or State employee, during the
17year immediately preceding termination of State employment,
18participated personally and substantially in the award of
19State contracts, or the issuance of State contract change
20orders, with a cumulative value of $25,000 or more to the
21person or entity, or its parent or subsidiary.
22 (a-5) No officer, member, or spouse or immediate family
23member living with such person shall, during the officer or
24member's term in office or within a period of 2 years

SB2254- 539 -LRB102 15486 SMS 20849 b
1immediately leaving office, hold an ownership interest, other
2than a passive interest in a publicly traded company, in any
3gaming license under the Illinois Gambling Act, the Video
4Gaming Act, the Illinois Horse Racing Act of 1975, or the
5Sports Wagering Act. Any member of the General Assembly or
6spouse or immediate family member living with such person who
7has an ownership interest, other than a passive interest in a
8publicly traded company, in any gaming license under the
9Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
10the Video Gaming Act, or the Sports Wagering Act at the time of
11the effective date of this amendatory Act of the 101st General
12Assembly shall divest himself or herself of such ownership
13within one year after the effective date of this amendatory
14Act of the 101st General Assembly. No State employee who works
15for the Department of Lottery and Gaming Illinois Gaming Board
16or Illinois Racing Board or spouse or immediate family member
17living with such person shall, during State employment or
18within a period of 2 years immediately after termination of
19State employment, hold an ownership interest, other than a
20passive interest in a publicly traded company, in any gaming
21license under the Illinois Gambling Act, the Video Gaming Act,
22the Illinois Horse Racing Act of 1975, or the Sports Wagering
23Act.
24 (a-10) This subsection (a-10) applies on and after June
2525, 2021. No officer, member, or spouse or immediate family
26member living with such person, shall, during the officer or

SB2254- 540 -LRB102 15486 SMS 20849 b
1member's term in office or within a period of 2 years
2immediately after leaving office, hold an ownership interest,
3other than a passive interest in a publicly traded company, in
4any cannabis business establishment which is licensed under
5the Cannabis Regulation and Tax Act. Any member of the General
6Assembly or spouse or immediate family member living with such
7person who has an ownership interest, other than a passive
8interest in a publicly traded company, in any cannabis
9business establishment which is licensed under the Cannabis
10Regulation and Tax Act at the time of the effective date of
11this amendatory Act of the 101st General Assembly shall divest
12himself or herself of such ownership within one year after the
13effective date of this amendatory Act of the 101st General
14Assembly.
15 No State employee who works for any State agency that
16regulates cannabis business establishment license holders who
17participated personally and substantially in the award of
18licenses under the Cannabis Regulation and Tax Act or a spouse
19or immediate family member living with such person shall,
20during State employment or within a period of 2 years
21immediately after termination of State employment, hold an
22ownership interest, other than a passive interest in a
23publicly traded company, in any cannabis license under the
24Cannabis Regulation and Tax Act.
25 (b) No former officer of the executive branch or State
26employee of the executive branch with regulatory or licensing

SB2254- 541 -LRB102 15486 SMS 20849 b
1authority, or spouse or immediate family member living with
2such person, shall, within a period of one year immediately
3after termination of State employment, knowingly accept
4employment or receive compensation or fees for services from a
5person or entity if the officer or State employee, during the
6year immediately preceding termination of State employment,
7participated personally and substantially in making a
8regulatory or licensing decision that directly applied to the
9person or entity, or its parent or subsidiary.
10 (c) Within 6 months after the effective date of this
11amendatory Act of the 96th General Assembly, each executive
12branch constitutional officer and legislative leader, the
13Auditor General, and the Joint Committee on Legislative
14Support Services shall adopt a policy delineating which State
15positions under his or her jurisdiction and control, by the
16nature of their duties, may have the authority to participate
17personally and substantially in the award of State contracts
18or in regulatory or licensing decisions. The Governor shall
19adopt such a policy for all State employees of the executive
20branch not under the jurisdiction and control of any other
21executive branch constitutional officer.
22 The policies required under subsection (c) of this Section
23shall be filed with the appropriate ethics commission
24established under this Act or, for the Auditor General, with
25the Office of the Auditor General.
26 (d) Each Inspector General shall have the authority to

SB2254- 542 -LRB102 15486 SMS 20849 b
1determine that additional State positions under his or her
2jurisdiction, not otherwise subject to the policies required
3by subsection (c) of this Section, are nonetheless subject to
4the notification requirement of subsection (f) below due to
5their involvement in the award of State contracts or in
6regulatory or licensing decisions.
7 (e) The Joint Committee on Legislative Support Services,
8the Auditor General, and each of the executive branch
9constitutional officers and legislative leaders subject to
10subsection (c) of this Section shall provide written
11notification to all employees in positions subject to the
12policies required by subsection (c) or a determination made
13under subsection (d): (1) upon hiring, promotion, or transfer
14into the relevant position; and (2) at the time the employee's
15duties are changed in such a way as to qualify that employee.
16An employee receiving notification must certify in writing
17that the person was advised of the prohibition and the
18requirement to notify the appropriate Inspector General in
19subsection (f).
20 (f) Any State employee in a position subject to the
21policies required by subsection (c) or to a determination
22under subsection (d), but who does not fall within the
23prohibition of subsection (h) below, who is offered non-State
24employment during State employment or within a period of one
25year immediately after termination of State employment shall,
26prior to accepting such non-State employment, notify the

SB2254- 543 -LRB102 15486 SMS 20849 b
1appropriate Inspector General. Within 10 calendar days after
2receiving notification from an employee in a position subject
3to the policies required by subsection (c), such Inspector
4General shall make a determination as to whether the State
5employee is restricted from accepting such employment by
6subsection (a) or (b). In making a determination, in addition
7to any other relevant information, an Inspector General shall
8assess the effect of the prospective employment or
9relationship upon decisions referred to in subsections (a) and
10(b), based on the totality of the participation by the former
11officer, member, or State employee in those decisions. A
12determination by an Inspector General must be in writing,
13signed and dated by the Inspector General, and delivered to
14the subject of the determination within 10 calendar days or
15the person is deemed eligible for the employment opportunity.
16For purposes of this subsection, "appropriate Inspector
17General" means (i) for members and employees of the
18legislative branch, the Legislative Inspector General; (ii)
19for the Auditor General and employees of the Office of the
20Auditor General, the Inspector General provided for in Section
2130-5 of this Act; and (iii) for executive branch officers and
22employees, the Inspector General having jurisdiction over the
23officer or employee. Notice of any determination of an
24Inspector General and of any such appeal shall be given to the
25ultimate jurisdictional authority, the Attorney General, and
26the Executive Ethics Commission.

SB2254- 544 -LRB102 15486 SMS 20849 b
1 (g) An Inspector General's determination regarding
2restrictions under subsection (a) or (b) may be appealed to
3the appropriate Ethics Commission by the person subject to the
4decision or the Attorney General no later than the 10th
5calendar day after the date of the determination.
6 On appeal, the Ethics Commission or Auditor General shall
7seek, accept, and consider written public comments regarding a
8determination. In deciding whether to uphold an Inspector
9General's determination, the appropriate Ethics Commission or
10Auditor General shall assess, in addition to any other
11relevant information, the effect of the prospective employment
12or relationship upon the decisions referred to in subsections
13(a) and (b), based on the totality of the participation by the
14former officer, member, or State employee in those decisions.
15The Ethics Commission shall decide whether to uphold an
16Inspector General's determination within 10 calendar days or
17the person is deemed eligible for the employment opportunity.
18 (h) The following officers, members, or State employees
19shall not, within a period of one year immediately after
20termination of office or State employment, knowingly accept
21employment or receive compensation or fees for services from a
22person or entity if the person or entity or its parent or
23subsidiary, during the year immediately preceding termination
24of State employment, was a party to a State contract or
25contracts with a cumulative value of $25,000 or more involving
26the officer, member, or State employee's State agency, or was

SB2254- 545 -LRB102 15486 SMS 20849 b
1the subject of a regulatory or licensing decision involving
2the officer, member, or State employee's State agency,
3regardless of whether he or she participated personally and
4substantially in the award of the State contract or contracts
5or the making of the regulatory or licensing decision in
6question:
7 (1) members or officers;
8 (2) members of a commission or board created by the
9 Illinois Constitution;
10 (3) persons whose appointment to office is subject to
11 the advice and consent of the Senate;
12 (4) the head of a department, commission, board,
13 division, bureau, authority, or other administrative unit
14 within the government of this State;
15 (5) chief procurement officers, State purchasing
16 officers, and their designees whose duties are directly
17 related to State procurement;
18 (6) chiefs of staff, deputy chiefs of staff, associate
19 chiefs of staff, assistant chiefs of staff, and deputy
20 governors;
21 (7) employees of the Illinois Racing Board; and
22 (8) employees of the Illinois Gaming Board.
23 (i) For the purposes of this Section, with respect to
24officers or employees of a regional transit board, as defined
25in this Act, the phrase "person or entity" does not include:
26(i) the United States government, (ii) the State, (iii)

SB2254- 546 -LRB102 15486 SMS 20849 b
1municipalities, as defined under Article VII, Section 1 of the
2Illinois Constitution, (iv) units of local government, as
3defined under Article VII, Section 1 of the Illinois
4Constitution, or (v) school districts.
5(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
6 (5 ILCS 430/5-50)
7 Sec. 5-50. Ex parte communications; special government
8agents.
9 (a) This Section applies to ex parte communications made
10to any agency listed in subsection (e).
11 (b) "Ex parte communication" means any written or oral
12communication by any person that imparts or requests material
13information or makes a material argument regarding potential
14action concerning regulatory, quasi-adjudicatory, investment,
15or licensing matters pending before or under consideration by
16the agency. "Ex parte communication" does not include the
17following: (i) statements by a person publicly made in a
18public forum; (ii) statements regarding matters of procedure
19and practice, such as format, the number of copies required,
20the manner of filing, and the status of a matter; and (iii)
21statements made by a State employee of the agency to the agency
22head or other employees of that agency.
23 (b-5) An ex parte communication received by an agency,
24agency head, or other agency employee from an interested party
25or his or her official representative or attorney shall

SB2254- 547 -LRB102 15486 SMS 20849 b
1promptly be memorialized and made a part of the record.
2 (c) An ex parte communication received by any agency,
3agency head, or other agency employee, other than an ex parte
4communication described in subsection (b-5), shall immediately
5be reported to that agency's ethics officer by the recipient
6of the communication and by any other employee of that agency
7who responds to the communication. The ethics officer shall
8require that the ex parte communication be promptly made a
9part of the record. The ethics officer shall promptly file the
10ex parte communication with the Executive Ethics Commission,
11including all written communications, all written responses to
12the communications, and a memorandum prepared by the ethics
13officer stating the nature and substance of all oral
14communications, the identity and job title of the person to
15whom each communication was made, all responses made, the
16identity and job title of the person making each response, the
17identity of each person from whom the written or oral ex parte
18communication was received, the individual or entity
19represented by that person, any action the person requested or
20recommended, and any other pertinent information. The
21disclosure shall also contain the date of any ex parte
22communication.
23 (d) "Interested party" means a person or entity whose
24rights, privileges, or interests are the subject of or are
25directly affected by a regulatory, quasi-adjudicatory,
26investment, or licensing matter.

SB2254- 548 -LRB102 15486 SMS 20849 b
1 (e) This Section applies to the following agencies:
2Executive Ethics Commission
3Illinois Commerce Commission
4Educational Labor Relations Board
5State Board of Elections
6Illinois Gaming Board
7Health Facilities and Services Review Board
8Illinois Workers' Compensation Commission
9Illinois Labor Relations Board
10Illinois Liquor Control Commission
11Pollution Control Board
12Property Tax Appeal Board
13Department of Lottery and Gaming Illinois Racing Board
14Illinois Purchased Care Review Board
15Department of State Police Merit Board
16Motor Vehicle Review Board
17Prisoner Review Board
18Civil Service Commission
19Personnel Review Board for the Treasurer
20Merit Commission for the Secretary of State
21Merit Commission for the Office of the Comptroller
22Court of Claims
23Board of Review of the Department of Employment Security
24Department of Insurance
25Department of Professional Regulation and licensing boards
26 under the Department

SB2254- 549 -LRB102 15486 SMS 20849 b
1Department of Public Health and licensing boards under the
2 Department
3Office of Banks and Real Estate and licensing boards under
4 the Office
5State Employees Retirement System Board of Trustees
6Judges Retirement System Board of Trustees
7General Assembly Retirement System Board of Trustees
8Illinois Board of Investment
9State Universities Retirement System Board of Trustees
10Teachers Retirement System Officers Board of Trustees
11 (f) Any person who fails to (i) report an ex parte
12communication to an ethics officer, (ii) make information part
13of the record, or (iii) make a filing with the Executive Ethics
14Commission as required by this Section or as required by
15Section 5-165 of the Illinois Administrative Procedure Act
16violates this Act.
17(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
18 Section 160. The Executive Reorganization Implementation
19Act is amended by changing Section 3.1 as follows:
20 (15 ILCS 15/3.1)
21 Sec. 3.1. "Agency directly responsible to the Governor" or
22"agency" means any office, officer, division, or part thereof,
23and any other office, nonelective officer, department,
24division, bureau, board, or commission in the executive branch

SB2254- 550 -LRB102 15486 SMS 20849 b
1of State government, except that it does not apply to any
2agency whose primary function is service to the General
3Assembly or the Judicial Branch of State government, or to any
4agency administered by the Attorney General, Secretary of
5State, State Comptroller or State Treasurer. In addition the
6term does not apply to the following agencies created by law
7with the primary responsibility of exercising regulatory or
8adjudicatory functions independently of the Governor:
9 (1) the State Board of Elections;
10 (2) the State Board of Education;
11 (3) the Illinois Commerce Commission;
12 (4) the Illinois Workers' Compensation Commission;
13 (5) the Civil Service Commission;
14 (6) the Fair Employment Practices Commission;
15 (7) the Pollution Control Board;
16 (8) the Department of State Police Merit Board;
17 (9) (blank) the Illinois Racing Board;
18 (10) the Illinois Power Agency;
19 (11) the Illinois Law Enforcement Training Standards
20Board; and
21 (12) the Illinois Liquor Control Commission.
22(Source: P.A. 100-995, eff. 8-20-18; 100-1050, eff. 7-1-19;
23101-81, eff. 7-12-19.)
24 Section 165. The Department of Public Health Powers and
25Duties Law of the Civil Administrative Code of Illinois is

SB2254- 551 -LRB102 15486 SMS 20849 b
1amended by changing Section 2310-348 as follows:
2 (20 ILCS 2310/2310-348)
3 Sec. 2310-348. The Quality of Life Board.
4 (a) The Quality of Life Board is created as an advisory
5board within the Department. The Board shall consist of 11
6members as follows: 2 members appointed by the President of
7the Senate; one member appointed by the Minority Leader of the
8Senate; 2 members appointed by the Speaker of the House of
9Representatives; one member appointed by the Minority Leader
10of the House of Representatives; 2 members appointed by the
11Governor, one of whom shall be designated as chair of the Board
12at the time of appointment; and 3 members appointed by the
13Director who represent organizations that advocate for the
14healthcare needs of the first and second highest HIV/AIDS risk
15groups, one each from the northern Illinois region, the
16central Illinois region, and the southern Illinois region.
17 The Board members shall serve one 2-year term. If a
18vacancy occurs in the Board membership, the vacancy shall be
19filled in the same manner as the initial appointment.
20 (b) Board members shall serve without compensation but may
21be reimbursed for their reasonable travel expenses from funds
22appropriated for that purpose. The Department shall provide
23staff and administrative support services to the Board.
24 (c) The Board must:
25 (i) consult with the Division of Lottery of the

SB2254- 552 -LRB102 15486 SMS 20849 b
1 Department of Lottery and Gaming the Lottery in designing
2 and promoting the Quality of Life special instant
3 scratch-off lottery game; and
4 (ii) review grant applications, make recommendations
5 and comments, and consult with the Department of Public
6 Health in making grants, from amounts appropriated from
7 the Quality of Life Endowment Fund, to public or private
8 entities in Illinois for the purpose of
9 HIV/AIDS-prevention education and for making grants to
10 public or private entities in Illinois for the purpose of
11 funding organizations that serve the highest at-risk
12 categories for contracting HIV or developing AIDS in
13 accordance with Section 21.7 of the Illinois Lottery Law.
14 (d) The Board is discontinued on June 30, 2018.
15(Source: P.A. 97-464, eff. 10-15-11; 97-1117, eff. 8-27-12.)
16 Section 170. The Department of Revenue Law of the Civil
17Administrative Code of Illinois is amended by changing Section
182505-305 as follows:
19 (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
20 Sec. 2505-305. Investigators.
21 (a) The Department has the power to appoint investigators
22to conduct all investigations, searches, seizures, arrests,
23and other duties imposed under the provisions of any law
24administered by the Department. Except as provided in

SB2254- 553 -LRB102 15486 SMS 20849 b
1subsection (c), these investigators have and may exercise all
2the powers of peace officers solely for the purpose of
3enforcing taxing measures administered by the Department.
4 (b) The Director must authorize to each investigator
5employed under this Section and to any other employee of the
6Department exercising the powers of a peace officer a distinct
7badge that, on its face, (i) clearly states that the badge is
8authorized by the Department and (ii) contains a unique
9identifying number. No other badge shall be authorized by the
10Department.
11 (c) The Department may enter into agreements with the
12Department of Lottery and Gaming Illinois Gaming Board
13providing that investigators appointed under this Section
14shall exercise the peace officer powers set forth in paragraph
15(20.6) of subsection (c) of Section 5 of the Illinois Gambling
16Act.
17(Source: P.A. 101-31, eff. 6-28-19.)
18 Section 175. The State Finance Act is amended by changing
19Section 6b-2 as follows:
20 (30 ILCS 105/6b-2) (from Ch. 127, par. 142b2)
21 Sec. 6b-2. The Department of Agriculture is authorized to
22establish and maintain a "Working Cash Account" to receive
23moneys obtained from the sale of pari-mutuel wagering tickets
24and to disburse moneys from such account as provided in this

SB2254- 554 -LRB102 15486 SMS 20849 b
1Section. The Department shall appoint a custodian who will be
2responsible for the "Working Cash Account" and who shall be
3bonded by a $100,000 penal bond made payable to the people of
4the State of Illinois, and shall establish accounting and
5reconciliation procedures to assure the safeguarding of these
6moneys.
7 Moneys in the Department of Agriculture's "Working Cash
8Account" shall be used only for the purposes of providing
9change for ticket windows, paying winning tickets,
10establishing the winning ticket reserve and purse fund as
11required by the Division of Horse Racing of the Department of
12Lottery and Gaming "Illinois Racing Board", paying race
13purses, and paying Federal and State taxes in relation
14thereto. That portion of the income received not expended for
15uses as authorized shall within 10 days after receipt be paid
16into the Agricultural Premium Fund.
17 The Governor may request at the recommendation of the
18custodian of the "Working Cash Account" an amount of money not
19to exceed $50,000 be transferred from the Agricultural Premium
20Fund to the "Working Cash Account", to provide change for
21ticket windows, such transfer to be made within 30 days prior
22to a racing meet. The custodian shall within 2 working days
23after the close of a racing meet transfer the money used for
24change back to the Agricultural Premium Fund. The Department
25of Agriculture is authorized to pay from the Agricultural
26Premium Fund the annual license fee, the daily race fee, and

SB2254- 555 -LRB102 15486 SMS 20849 b
1other expenses such as track security, stewards, investigators
2and such other fees as required by the Division of Horse Racing
3of the Department of Lottery and Gaming Illinois Racing Board
4connected with the holding of a racing meet.
5 The Auditor General shall audit or cause to be audited the
6above items of income and expenditures.
7(Source: P.A. 84-1308.)
8 Section 180. The Agricultural Fair Act is amended by
9changing Section 18 as follows:
10 (30 ILCS 120/18) (from Ch. 85, par. 668)
11 Sec. 18. Money shall be paid into the Fair and Exposition
12Fund by the Division of Horse Racing of the Department of
13Lottery and Gaming Illinois Racing Board, as provided in
14Section 28 of the Illinois Horse Racing Act of 1975. The
15General Assembly shall from time to time make appropriations
16payable from such fund to the Department for distribution to
17county fairs. Such appropriations shall be distributed by the
18Department to county fairs which are eligible to participate
19in appropriations made from the Agricultural Premium Fund but
20which elect instead to participate in appropriations made from
21the Fair and Exposition Fund. If a county has more than one
22county fair, such fairs shall jointly elect to participate
23either in appropriations made from the Agricultural Premium
24Fund or in appropriations made from the Fair and Exposition

SB2254- 556 -LRB102 15486 SMS 20849 b
1Fund. All participating county fairs of the same county shall
2participate in the same appropriation. Except as otherwise
3allowed by the Director, a participant, to be eligible to
4expend moneys appropriated from the Fair and Exposition Fund
5for the purchase of new or additional land construction or
6maintenance of buildings, grounds, facilities, infrastructure,
7or any improvement to the grounds must hold the land on which
8such fair or exposition is to be conducted as a fee or under a
9lease of at least 20 years, the terms of which require the
10lessee to have continuous possession of the land during every
11day of the lease period, or must be owned by the fair
12association participating in this disbursement, by an
13agricultural society, or by a fair and exposition authority.
14(Source: P.A. 99-183, eff. 7-29-15.)
15 Section 185. The Illinois Income Tax Act is amended by
16changing Section 201 as follows:
17 (35 ILCS 5/201)
18 (Text of Section without the changes made by P.A. 101-8,
19which did not take effect (see Section 99 of P.A. 101-8))
20 Sec. 201. Tax imposed.
21 (a) In general. A tax measured by net income is hereby
22imposed on every individual, corporation, trust and estate for
23each taxable year ending after July 31, 1969 on the privilege
24of earning or receiving income in or as a resident of this

SB2254- 557 -LRB102 15486 SMS 20849 b
1State. Such tax shall be in addition to all other occupation or
2privilege taxes imposed by this State or by any municipal
3corporation or political subdivision thereof.
4 (b) Rates. The tax imposed by subsection (a) of this
5Section shall be determined as follows, except as adjusted by
6subsection (d-1):
7 (1) In the case of an individual, trust or estate, for
8 taxable years ending prior to July 1, 1989, an amount
9 equal to 2 1/2% of the taxpayer's net income for the
10 taxable year.
11 (2) In the case of an individual, trust or estate, for
12 taxable years beginning prior to July 1, 1989 and ending
13 after June 30, 1989, an amount equal to the sum of (i) 2
14 1/2% of the taxpayer's net income for the period prior to
15 July 1, 1989, as calculated under Section 202.3, and (ii)
16 3% of the taxpayer's net income for the period after June
17 30, 1989, as calculated under Section 202.3.
18 (3) In the case of an individual, trust or estate, for
19 taxable years beginning after June 30, 1989, and ending
20 prior to January 1, 2011, an amount equal to 3% of the
21 taxpayer's net income for the taxable year.
22 (4) In the case of an individual, trust, or estate,
23 for taxable years beginning prior to January 1, 2011, and
24 ending after December 31, 2010, an amount equal to the sum
25 of (i) 3% of the taxpayer's net income for the period prior
26 to January 1, 2011, as calculated under Section 202.5, and

SB2254- 558 -LRB102 15486 SMS 20849 b
1 (ii) 5% of the taxpayer's net income for the period after
2 December 31, 2010, as calculated under Section 202.5.
3 (5) In the case of an individual, trust, or estate,
4 for taxable years beginning on or after January 1, 2011,
5 and ending prior to January 1, 2015, an amount equal to 5%
6 of the taxpayer's net income for the taxable year.
7 (5.1) In the case of an individual, trust, or estate,
8 for taxable years beginning prior to January 1, 2015, and
9 ending after December 31, 2014, an amount equal to the sum
10 of (i) 5% of the taxpayer's net income for the period prior
11 to January 1, 2015, as calculated under Section 202.5, and
12 (ii) 3.75% of the taxpayer's net income for the period
13 after December 31, 2014, as calculated under Section
14 202.5.
15 (5.2) In the case of an individual, trust, or estate,
16 for taxable years beginning on or after January 1, 2015,
17 and ending prior to July 1, 2017, an amount equal to 3.75%
18 of the taxpayer's net income for the taxable year.
19 (5.3) In the case of an individual, trust, or estate,
20 for taxable years beginning prior to July 1, 2017, and
21 ending after June 30, 2017, an amount equal to the sum of
22 (i) 3.75% of the taxpayer's net income for the period
23 prior to July 1, 2017, as calculated under Section 202.5,
24 and (ii) 4.95% of the taxpayer's net income for the period
25 after June 30, 2017, as calculated under Section 202.5.
26 (5.4) In the case of an individual, trust, or estate,

SB2254- 559 -LRB102 15486 SMS 20849 b
1 for taxable years beginning on or after July 1, 2017, an
2 amount equal to 4.95% of the taxpayer's net income for the
3 taxable year.
4 (6) In the case of a corporation, for taxable years
5 ending prior to July 1, 1989, an amount equal to 4% of the
6 taxpayer's net income for the taxable year.
7 (7) In the case of a corporation, for taxable years
8 beginning prior to July 1, 1989 and ending after June 30,
9 1989, an amount equal to the sum of (i) 4% of the
10 taxpayer's net income for the period prior to July 1,
11 1989, as calculated under Section 202.3, and (ii) 4.8% of
12 the taxpayer's net income for the period after June 30,
13 1989, as calculated under Section 202.3.
14 (8) In the case of a corporation, for taxable years
15 beginning after June 30, 1989, and ending prior to January
16 1, 2011, an amount equal to 4.8% of the taxpayer's net
17 income for the taxable year.
18 (9) In the case of a corporation, for taxable years
19 beginning prior to January 1, 2011, and ending after
20 December 31, 2010, an amount equal to the sum of (i) 4.8%
21 of the taxpayer's net income for the period prior to
22 January 1, 2011, as calculated under Section 202.5, and
23 (ii) 7% of the taxpayer's net income for the period after
24 December 31, 2010, as calculated under Section 202.5.
25 (10) In the case of a corporation, for taxable years
26 beginning on or after January 1, 2011, and ending prior to

SB2254- 560 -LRB102 15486 SMS 20849 b
1 January 1, 2015, an amount equal to 7% of the taxpayer's
2 net income for the taxable year.
3 (11) In the case of a corporation, for taxable years
4 beginning prior to January 1, 2015, and ending after
5 December 31, 2014, an amount equal to the sum of (i) 7% of
6 the taxpayer's net income for the period prior to January
7 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
8 of the taxpayer's net income for the period after December
9 31, 2014, as calculated under Section 202.5.
10 (12) In the case of a corporation, for taxable years
11 beginning on or after January 1, 2015, and ending prior to
12 July 1, 2017, an amount equal to 5.25% of the taxpayer's
13 net income for the taxable year.
14 (13) In the case of a corporation, for taxable years
15 beginning prior to July 1, 2017, and ending after June 30,
16 2017, an amount equal to the sum of (i) 5.25% of the
17 taxpayer's net income for the period prior to July 1,
18 2017, as calculated under Section 202.5, and (ii) 7% of
19 the taxpayer's net income for the period after June 30,
20 2017, as calculated under Section 202.5.
21 (14) In the case of a corporation, for taxable years
22 beginning on or after July 1, 2017, an amount equal to 7%
23 of the taxpayer's net income for the taxable year.
24 The rates under this subsection (b) are subject to the
25provisions of Section 201.5.
26 (b-5) Surcharge; sale or exchange of assets, properties,

SB2254- 561 -LRB102 15486 SMS 20849 b
1and intangibles of organization gaming licensees. For each of
2taxable years 2019 through 2027, a surcharge is imposed on all
3taxpayers on income arising from the sale or exchange of
4capital assets, depreciable business property, real property
5used in the trade or business, and Section 197 intangibles (i)
6of an organization licensee under the Illinois Horse Racing
7Act of 1975 and (ii) of an organization gaming licensee under
8the Illinois Gambling Act. The amount of the surcharge is
9equal to the amount of federal income tax liability for the
10taxable year attributable to those sales and exchanges. The
11surcharge imposed shall not apply if:
12 (1) the organization gaming license, organization
13 license, or racetrack property is transferred as a result
14 of any of the following:
15 (A) bankruptcy, a receivership, or a debt
16 adjustment initiated by or against the initial
17 licensee or the substantial owners of the initial
18 licensee;
19 (B) cancellation, revocation, or termination of
20 any such license by the Department of Lottery and
21 Gaming Illinois Gaming Board or the Illinois Racing
22 Board;
23 (C) a determination by the Division of Casino
24 Gambling of the Department of Lottery and Gaming
25 Illinois Gaming Board that transfer of the license is
26 in the best interests of Illinois gaming;

SB2254- 562 -LRB102 15486 SMS 20849 b
1 (D) the death of an owner of the equity interest in
2 a licensee;
3 (E) the acquisition of a controlling interest in
4 the stock or substantially all of the assets of a
5 publicly traded company;
6 (F) a transfer by a parent company to a wholly
7 owned subsidiary; or
8 (G) the transfer or sale to or by one person to
9 another person where both persons were initial owners
10 of the license when the license was issued; or
11 (2) the controlling interest in the organization
12 gaming license, organization license, or racetrack
13 property is transferred in a transaction to lineal
14 descendants in which no gain or loss is recognized or as a
15 result of a transaction in accordance with Section 351 of
16 the Internal Revenue Code in which no gain or loss is
17 recognized; or
18 (3) live horse racing was not conducted in 2010 at a
19 racetrack located within 3 miles of the Mississippi River
20 under a license issued pursuant to the Illinois Horse
21 Racing Act of 1975.
22 The transfer of an organization gaming license,
23organization license, or racetrack property by a person other
24than the initial licensee to receive the organization gaming
25license is not subject to a surcharge. The Department shall
26adopt rules necessary to implement and administer this

SB2254- 563 -LRB102 15486 SMS 20849 b
1subsection.
2 (c) Personal Property Tax Replacement Income Tax.
3Beginning on July 1, 1979 and thereafter, in addition to such
4income tax, there is also hereby imposed the Personal Property
5Tax Replacement Income Tax measured by net income on every
6corporation (including Subchapter S corporations), partnership
7and trust, for each taxable year ending after June 30, 1979.
8Such taxes are imposed on the privilege of earning or
9receiving income in or as a resident of this State. The
10Personal Property Tax Replacement Income Tax shall be in
11addition to the income tax imposed by subsections (a) and (b)
12of this Section and in addition to all other occupation or
13privilege taxes imposed by this State or by any municipal
14corporation or political subdivision thereof.
15 (d) Additional Personal Property Tax Replacement Income
16Tax Rates. The personal property tax replacement income tax
17imposed by this subsection and subsection (c) of this Section
18in the case of a corporation, other than a Subchapter S
19corporation and except as adjusted by subsection (d-1), shall
20be an additional amount equal to 2.85% of such taxpayer's net
21income for the taxable year, except that beginning on January
221, 1981, and thereafter, the rate of 2.85% specified in this
23subsection shall be reduced to 2.5%, and in the case of a
24partnership, trust or a Subchapter S corporation shall be an
25additional amount equal to 1.5% of such taxpayer's net income
26for the taxable year.

SB2254- 564 -LRB102 15486 SMS 20849 b
1 (d-1) Rate reduction for certain foreign insurers. In the
2case of a foreign insurer, as defined by Section 35A-5 of the
3Illinois Insurance Code, whose state or country of domicile
4imposes on insurers domiciled in Illinois a retaliatory tax
5(excluding any insurer whose premiums from reinsurance assumed
6are 50% or more of its total insurance premiums as determined
7under paragraph (2) of subsection (b) of Section 304, except
8that for purposes of this determination premiums from
9reinsurance do not include premiums from inter-affiliate
10reinsurance arrangements), beginning with taxable years ending
11on or after December 31, 1999, the sum of the rates of tax
12imposed by subsections (b) and (d) shall be reduced (but not
13increased) to the rate at which the total amount of tax imposed
14under this Act, net of all credits allowed under this Act,
15shall equal (i) the total amount of tax that would be imposed
16on the foreign insurer's net income allocable to Illinois for
17the taxable year by such foreign insurer's state or country of
18domicile if that net income were subject to all income taxes
19and taxes measured by net income imposed by such foreign
20insurer's state or country of domicile, net of all credits
21allowed or (ii) a rate of zero if no such tax is imposed on
22such income by the foreign insurer's state of domicile. For
23the purposes of this subsection (d-1), an inter-affiliate
24includes a mutual insurer under common management.
25 (1) For the purposes of subsection (d-1), in no event
26 shall the sum of the rates of tax imposed by subsections

SB2254- 565 -LRB102 15486 SMS 20849 b
1 (b) and (d) be reduced below the rate at which the sum of:
2 (A) the total amount of tax imposed on such
3 foreign insurer under this Act for a taxable year, net
4 of all credits allowed under this Act, plus
5 (B) the privilege tax imposed by Section 409 of
6 the Illinois Insurance Code, the fire insurance
7 company tax imposed by Section 12 of the Fire
8 Investigation Act, and the fire department taxes
9 imposed under Section 11-10-1 of the Illinois
10 Municipal Code,
11 equals 1.25% for taxable years ending prior to December
12 31, 2003, or 1.75% for taxable years ending on or after
13 December 31, 2003, of the net taxable premiums written for
14 the taxable year, as described by subsection (1) of
15 Section 409 of the Illinois Insurance Code. This paragraph
16 will in no event increase the rates imposed under
17 subsections (b) and (d).
18 (2) Any reduction in the rates of tax imposed by this
19 subsection shall be applied first against the rates
20 imposed by subsection (b) and only after the tax imposed
21 by subsection (a) net of all credits allowed under this
22 Section other than the credit allowed under subsection (i)
23 has been reduced to zero, against the rates imposed by
24 subsection (d).
25 This subsection (d-1) is exempt from the provisions of
26Section 250.

SB2254- 566 -LRB102 15486 SMS 20849 b
1 (e) Investment credit. A taxpayer shall be allowed a
2credit against the Personal Property Tax Replacement Income
3Tax for investment in qualified property.
4 (1) A taxpayer shall be allowed a credit equal to .5%
5 of the basis of qualified property placed in service
6 during the taxable year, provided such property is placed
7 in service on or after July 1, 1984. There shall be allowed
8 an additional credit equal to .5% of the basis of
9 qualified property placed in service during the taxable
10 year, provided such property is placed in service on or
11 after July 1, 1986, and the taxpayer's base employment
12 within Illinois has increased by 1% or more over the
13 preceding year as determined by the taxpayer's employment
14 records filed with the Illinois Department of Employment
15 Security. Taxpayers who are new to Illinois shall be
16 deemed to have met the 1% growth in base employment for the
17 first year in which they file employment records with the
18 Illinois Department of Employment Security. The provisions
19 added to this Section by Public Act 85-1200 (and restored
20 by Public Act 87-895) shall be construed as declaratory of
21 existing law and not as a new enactment. If, in any year,
22 the increase in base employment within Illinois over the
23 preceding year is less than 1%, the additional credit
24 shall be limited to that percentage times a fraction, the
25 numerator of which is .5% and the denominator of which is
26 1%, but shall not exceed .5%. The investment credit shall

SB2254- 567 -LRB102 15486 SMS 20849 b
1 not be allowed to the extent that it would reduce a
2 taxpayer's liability in any tax year below zero, nor may
3 any credit for qualified property be allowed for any year
4 other than the year in which the property was placed in
5 service in Illinois. For tax years ending on or after
6 December 31, 1987, and on or before December 31, 1988, the
7 credit shall be allowed for the tax year in which the
8 property is placed in service, or, if the amount of the
9 credit exceeds the tax liability for that year, whether it
10 exceeds the original liability or the liability as later
11 amended, such excess may be carried forward and applied to
12 the tax liability of the 5 taxable years following the
13 excess credit years if the taxpayer (i) makes investments
14 which cause the creation of a minimum of 2,000 full-time
15 equivalent jobs in Illinois, (ii) is located in an
16 enterprise zone established pursuant to the Illinois
17 Enterprise Zone Act and (iii) is certified by the
18 Department of Commerce and Community Affairs (now
19 Department of Commerce and Economic Opportunity) as
20 complying with the requirements specified in clause (i)
21 and (ii) by July 1, 1986. The Department of Commerce and
22 Community Affairs (now Department of Commerce and Economic
23 Opportunity) shall notify the Department of Revenue of all
24 such certifications immediately. For tax years ending
25 after December 31, 1988, the credit shall be allowed for
26 the tax year in which the property is placed in service,

SB2254- 568 -LRB102 15486 SMS 20849 b
1 or, if the amount of the credit exceeds the tax liability
2 for that year, whether it exceeds the original liability
3 or the liability as later amended, such excess may be
4 carried forward and applied to the tax liability of the 5
5 taxable years following the excess credit years. The
6 credit shall be applied to the earliest year for which
7 there is a liability. If there is credit from more than one
8 tax year that is available to offset a liability, earlier
9 credit shall be applied first.
10 (2) The term "qualified property" means property
11 which:
12 (A) is tangible, whether new or used, including
13 buildings and structural components of buildings and
14 signs that are real property, but not including land
15 or improvements to real property that are not a
16 structural component of a building such as
17 landscaping, sewer lines, local access roads, fencing,
18 parking lots, and other appurtenances;
19 (B) is depreciable pursuant to Section 167 of the
20 Internal Revenue Code, except that "3-year property"
21 as defined in Section 168(c)(2)(A) of that Code is not
22 eligible for the credit provided by this subsection
23 (e);
24 (C) is acquired by purchase as defined in Section
25 179(d) of the Internal Revenue Code;
26 (D) is used in Illinois by a taxpayer who is

SB2254- 569 -LRB102 15486 SMS 20849 b
1 primarily engaged in manufacturing, or in mining coal
2 or fluorite, or in retailing, or was placed in service
3 on or after July 1, 2006 in a River Edge Redevelopment
4 Zone established pursuant to the River Edge
5 Redevelopment Zone Act; and
6 (E) has not previously been used in Illinois in
7 such a manner and by such a person as would qualify for
8 the credit provided by this subsection (e) or
9 subsection (f).
10 (3) For purposes of this subsection (e),
11 "manufacturing" means the material staging and production
12 of tangible personal property by procedures commonly
13 regarded as manufacturing, processing, fabrication, or
14 assembling which changes some existing material into new
15 shapes, new qualities, or new combinations. For purposes
16 of this subsection (e) the term "mining" shall have the
17 same meaning as the term "mining" in Section 613(c) of the
18 Internal Revenue Code. For purposes of this subsection
19 (e), the term "retailing" means the sale of tangible
20 personal property for use or consumption and not for
21 resale, or services rendered in conjunction with the sale
22 of tangible personal property for use or consumption and
23 not for resale. For purposes of this subsection (e),
24 "tangible personal property" has the same meaning as when
25 that term is used in the Retailers' Occupation Tax Act,
26 and, for taxable years ending after December 31, 2008,

SB2254- 570 -LRB102 15486 SMS 20849 b
1 does not include the generation, transmission, or
2 distribution of electricity.
3 (4) The basis of qualified property shall be the basis
4 used to compute the depreciation deduction for federal
5 income tax purposes.
6 (5) If the basis of the property for federal income
7 tax depreciation purposes is increased after it has been
8 placed in service in Illinois by the taxpayer, the amount
9 of such increase shall be deemed property placed in
10 service on the date of such increase in basis.
11 (6) The term "placed in service" shall have the same
12 meaning as under Section 46 of the Internal Revenue Code.
13 (7) If during any taxable year, any property ceases to
14 be qualified property in the hands of the taxpayer within
15 48 months after being placed in service, or the situs of
16 any qualified property is moved outside Illinois within 48
17 months after being placed in service, the Personal
18 Property Tax Replacement Income Tax for such taxable year
19 shall be increased. Such increase shall be determined by
20 (i) recomputing the investment credit which would have
21 been allowed for the year in which credit for such
22 property was originally allowed by eliminating such
23 property from such computation and, (ii) subtracting such
24 recomputed credit from the amount of credit previously
25 allowed. For the purposes of this paragraph (7), a
26 reduction of the basis of qualified property resulting

SB2254- 571 -LRB102 15486 SMS 20849 b
1 from a redetermination of the purchase price shall be
2 deemed a disposition of qualified property to the extent
3 of such reduction.
4 (8) Unless the investment credit is extended by law,
5 the basis of qualified property shall not include costs
6 incurred after December 31, 2018, except for costs
7 incurred pursuant to a binding contract entered into on or
8 before December 31, 2018.
9 (9) Each taxable year ending before December 31, 2000,
10 a partnership may elect to pass through to its partners
11 the credits to which the partnership is entitled under
12 this subsection (e) for the taxable year. A partner may
13 use the credit allocated to him or her under this
14 paragraph only against the tax imposed in subsections (c)
15 and (d) of this Section. If the partnership makes that
16 election, those credits shall be allocated among the
17 partners in the partnership in accordance with the rules
18 set forth in Section 704(b) of the Internal Revenue Code,
19 and the rules promulgated under that Section, and the
20 allocated amount of the credits shall be allowed to the
21 partners for that taxable year. The partnership shall make
22 this election on its Personal Property Tax Replacement
23 Income Tax return for that taxable year. The election to
24 pass through the credits shall be irrevocable.
25 For taxable years ending on or after December 31,
26 2000, a partner that qualifies its partnership for a

SB2254- 572 -LRB102 15486 SMS 20849 b
1 subtraction under subparagraph (I) of paragraph (2) of
2 subsection (d) of Section 203 or a shareholder that
3 qualifies a Subchapter S corporation for a subtraction
4 under subparagraph (S) of paragraph (2) of subsection (b)
5 of Section 203 shall be allowed a credit under this
6 subsection (e) equal to its share of the credit earned
7 under this subsection (e) during the taxable year by the
8 partnership or Subchapter S corporation, determined in
9 accordance with the determination of income and
10 distributive share of income under Sections 702 and 704
11 and Subchapter S of the Internal Revenue Code. This
12 paragraph is exempt from the provisions of Section 250.
13 (f) Investment credit; Enterprise Zone; River Edge
14Redevelopment Zone.
15 (1) A taxpayer shall be allowed a credit against the
16 tax imposed by subsections (a) and (b) of this Section for
17 investment in qualified property which is placed in
18 service in an Enterprise Zone created pursuant to the
19 Illinois Enterprise Zone Act or, for property placed in
20 service on or after July 1, 2006, a River Edge
21 Redevelopment Zone established pursuant to the River Edge
22 Redevelopment Zone Act. For partners, shareholders of
23 Subchapter S corporations, and owners of limited liability
24 companies, if the liability company is treated as a
25 partnership for purposes of federal and State income
26 taxation, there shall be allowed a credit under this

SB2254- 573 -LRB102 15486 SMS 20849 b
1 subsection (f) to be determined in accordance with the
2 determination of income and distributive share of income
3 under Sections 702 and 704 and Subchapter S of the
4 Internal Revenue Code. The credit shall be .5% of the
5 basis for such property. The credit shall be available
6 only in the taxable year in which the property is placed in
7 service in the Enterprise Zone or River Edge Redevelopment
8 Zone and shall not be allowed to the extent that it would
9 reduce a taxpayer's liability for the tax imposed by
10 subsections (a) and (b) of this Section to below zero. For
11 tax years ending on or after December 31, 1985, the credit
12 shall be allowed for the tax year in which the property is
13 placed in service, or, if the amount of the credit exceeds
14 the tax liability for that year, whether it exceeds the
15 original liability or the liability as later amended, such
16 excess may be carried forward and applied to the tax
17 liability of the 5 taxable years following the excess
18 credit year. The credit shall be applied to the earliest
19 year for which there is a liability. If there is credit
20 from more than one tax year that is available to offset a
21 liability, the credit accruing first in time shall be
22 applied first.
23 (2) The term qualified property means property which:
24 (A) is tangible, whether new or used, including
25 buildings and structural components of buildings;
26 (B) is depreciable pursuant to Section 167 of the

SB2254- 574 -LRB102 15486 SMS 20849 b
1 Internal Revenue Code, except that "3-year property"
2 as defined in Section 168(c)(2)(A) of that Code is not
3 eligible for the credit provided by this subsection
4 (f);
5 (C) is acquired by purchase as defined in Section
6 179(d) of the Internal Revenue Code;
7 (D) is used in the Enterprise Zone or River Edge
8 Redevelopment Zone by the taxpayer; and
9 (E) has not been previously used in Illinois in
10 such a manner and by such a person as would qualify for
11 the credit provided by this subsection (f) or
12 subsection (e).
13 (3) The basis of qualified property shall be the basis
14 used to compute the depreciation deduction for federal
15 income tax purposes.
16 (4) If the basis of the property for federal income
17 tax depreciation purposes is increased after it has been
18 placed in service in the Enterprise Zone or River Edge
19 Redevelopment Zone by the taxpayer, the amount of such
20 increase shall be deemed property placed in service on the
21 date of such increase in basis.
22 (5) The term "placed in service" shall have the same
23 meaning as under Section 46 of the Internal Revenue Code.
24 (6) If during any taxable year, any property ceases to
25 be qualified property in the hands of the taxpayer within
26 48 months after being placed in service, or the situs of

SB2254- 575 -LRB102 15486 SMS 20849 b
1 any qualified property is moved outside the Enterprise
2 Zone or River Edge Redevelopment Zone within 48 months
3 after being placed in service, the tax imposed under
4 subsections (a) and (b) of this Section for such taxable
5 year shall be increased. Such increase shall be determined
6 by (i) recomputing the investment credit which would have
7 been allowed for the year in which credit for such
8 property was originally allowed by eliminating such
9 property from such computation, and (ii) subtracting such
10 recomputed credit from the amount of credit previously
11 allowed. For the purposes of this paragraph (6), a
12 reduction of the basis of qualified property resulting
13 from a redetermination of the purchase price shall be
14 deemed a disposition of qualified property to the extent
15 of such reduction.
16 (7) There shall be allowed an additional credit equal
17 to 0.5% of the basis of qualified property placed in
18 service during the taxable year in a River Edge
19 Redevelopment Zone, provided such property is placed in
20 service on or after July 1, 2006, and the taxpayer's base
21 employment within Illinois has increased by 1% or more
22 over the preceding year as determined by the taxpayer's
23 employment records filed with the Illinois Department of
24 Employment Security. Taxpayers who are new to Illinois
25 shall be deemed to have met the 1% growth in base
26 employment for the first year in which they file

SB2254- 576 -LRB102 15486 SMS 20849 b
1 employment records with the Illinois Department of
2 Employment Security. If, in any year, the increase in base
3 employment within Illinois over the preceding year is less
4 than 1%, the additional credit shall be limited to that
5 percentage times a fraction, the numerator of which is
6 0.5% and the denominator of which is 1%, but shall not
7 exceed 0.5%.
8 (8) For taxable years beginning on or after January 1,
9 2021, there shall be allowed an Enterprise Zone
10 construction jobs credit against the taxes imposed under
11 subsections (a) and (b) of this Section as provided in
12 Section 13 of the Illinois Enterprise Zone Act.
13 The credit or credits may not reduce the taxpayer's
14 liability to less than zero. If the amount of the credit or
15 credits exceeds the taxpayer's liability, the excess may
16 be carried forward and applied against the taxpayer's
17 liability in succeeding calendar years in the same manner
18 provided under paragraph (4) of Section 211 of this Act.
19 The credit or credits shall be applied to the earliest
20 year for which there is a tax liability. If there are
21 credits from more than one taxable year that are available
22 to offset a liability, the earlier credit shall be applied
23 first.
24 For partners, shareholders of Subchapter S
25 corporations, and owners of limited liability companies,
26 if the liability company is treated as a partnership for

SB2254- 577 -LRB102 15486 SMS 20849 b
1 the purposes of federal and State income taxation, there
2 shall be allowed a credit under this Section to be
3 determined in accordance with the determination of income
4 and distributive share of income under Sections 702 and
5 704 and Subchapter S of the Internal Revenue Code.
6 The total aggregate amount of credits awarded under
7 the Blue Collar Jobs Act (Article 20 of Public Act 101-9
8 this amendatory Act of the 101st General Assembly) shall
9 not exceed $20,000,000 in any State fiscal year.
10 This paragraph (8) is exempt from the provisions of
11 Section 250.
12 (g) (Blank).
13 (h) Investment credit; High Impact Business.
14 (1) Subject to subsections (b) and (b-5) of Section
15 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
16 be allowed a credit against the tax imposed by subsections
17 (a) and (b) of this Section for investment in qualified
18 property which is placed in service by a Department of
19 Commerce and Economic Opportunity designated High Impact
20 Business. The credit shall be .5% of the basis for such
21 property. The credit shall not be available (i) until the
22 minimum investments in qualified property set forth in
23 subdivision (a)(3)(A) of Section 5.5 of the Illinois
24 Enterprise Zone Act have been satisfied or (ii) until the
25 time authorized in subsection (b-5) of the Illinois
26 Enterprise Zone Act for entities designated as High Impact

SB2254- 578 -LRB102 15486 SMS 20849 b
1 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
2 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
3 Act, and shall not be allowed to the extent that it would
4 reduce a taxpayer's liability for the tax imposed by
5 subsections (a) and (b) of this Section to below zero. The
6 credit applicable to such investments shall be taken in
7 the taxable year in which such investments have been
8 completed. The credit for additional investments beyond
9 the minimum investment by a designated high impact
10 business authorized under subdivision (a)(3)(A) of Section
11 5.5 of the Illinois Enterprise Zone Act shall be available
12 only in the taxable year in which the property is placed in
13 service and shall not be allowed to the extent that it
14 would reduce a taxpayer's liability for the tax imposed by
15 subsections (a) and (b) of this Section to below zero. For
16 tax years ending on or after December 31, 1987, the credit
17 shall be allowed for the tax year in which the property is
18 placed in service, or, if the amount of the credit exceeds
19 the tax liability for that year, whether it exceeds the
20 original liability or the liability as later amended, such
21 excess may be carried forward and applied to the tax
22 liability of the 5 taxable years following the excess
23 credit year. The credit shall be applied to the earliest
24 year for which there is a liability. If there is credit
25 from more than one tax year that is available to offset a
26 liability, the credit accruing first in time shall be

SB2254- 579 -LRB102 15486 SMS 20849 b
1 applied first.
2 Changes made in this subdivision (h)(1) by Public Act
3 88-670 restore changes made by Public Act 85-1182 and
4 reflect existing law.
5 (2) The term qualified property means property which:
6 (A) is tangible, whether new or used, including
7 buildings and structural components of buildings;
8 (B) is depreciable pursuant to Section 167 of the
9 Internal Revenue Code, except that "3-year property"
10 as defined in Section 168(c)(2)(A) of that Code is not
11 eligible for the credit provided by this subsection
12 (h);
13 (C) is acquired by purchase as defined in Section
14 179(d) of the Internal Revenue Code; and
15 (D) is not eligible for the Enterprise Zone
16 Investment Credit provided by subsection (f) of this
17 Section.
18 (3) The basis of qualified property shall be the basis
19 used to compute the depreciation deduction for federal
20 income tax purposes.
21 (4) If the basis of the property for federal income
22 tax depreciation purposes is increased after it has been
23 placed in service in a federally designated Foreign Trade
24 Zone or Sub-Zone located in Illinois by the taxpayer, the
25 amount of such increase shall be deemed property placed in
26 service on the date of such increase in basis.

SB2254- 580 -LRB102 15486 SMS 20849 b
1 (5) The term "placed in service" shall have the same
2 meaning as under Section 46 of the Internal Revenue Code.
3 (6) If during any taxable year ending on or before
4 December 31, 1996, any property ceases to be qualified
5 property in the hands of the taxpayer within 48 months
6 after being placed in service, or the situs of any
7 qualified property is moved outside Illinois within 48
8 months after being placed in service, the tax imposed
9 under subsections (a) and (b) of this Section for such
10 taxable year shall be increased. Such increase shall be
11 determined by (i) recomputing the investment credit which
12 would have been allowed for the year in which credit for
13 such property was originally allowed by eliminating such
14 property from such computation, and (ii) subtracting such
15 recomputed credit from the amount of credit previously
16 allowed. For the purposes of this paragraph (6), a
17 reduction of the basis of qualified property resulting
18 from a redetermination of the purchase price shall be
19 deemed a disposition of qualified property to the extent
20 of such reduction.
21 (7) Beginning with tax years ending after December 31,
22 1996, if a taxpayer qualifies for the credit under this
23 subsection (h) and thereby is granted a tax abatement and
24 the taxpayer relocates its entire facility in violation of
25 the explicit terms and length of the contract under
26 Section 18-183 of the Property Tax Code, the tax imposed

SB2254- 581 -LRB102 15486 SMS 20849 b
1 under subsections (a) and (b) of this Section shall be
2 increased for the taxable year in which the taxpayer
3 relocated its facility by an amount equal to the amount of
4 credit received by the taxpayer under this subsection (h).
5 (h-5) High Impact Business construction constructions jobs
6credit. For taxable years beginning on or after January 1,
72021, there shall also be allowed a High Impact Business
8construction jobs credit against the tax imposed under
9subsections (a) and (b) of this Section as provided in
10subsections (i) and (j) of Section 5.5 of the Illinois
11Enterprise Zone Act.
12 The credit or credits may not reduce the taxpayer's
13liability to less than zero. If the amount of the credit or
14credits exceeds the taxpayer's liability, the excess may be
15carried forward and applied against the taxpayer's liability
16in succeeding calendar years in the manner provided under
17paragraph (4) of Section 211 of this Act. The credit or credits
18shall be applied to the earliest year for which there is a tax
19liability. If there are credits from more than one taxable
20year that are available to offset a liability, the earlier
21credit shall be applied first.
22 For partners, shareholders of Subchapter S corporations,
23and owners of limited liability companies, if the liability
24company is treated as a partnership for the purposes of
25federal and State income taxation, there shall be allowed a
26credit under this Section to be determined in accordance with

SB2254- 582 -LRB102 15486 SMS 20849 b
1the determination of income and distributive share of income
2under Sections 702 and 704 and Subchapter S of the Internal
3Revenue Code.
4 The total aggregate amount of credits awarded under the
5Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
6amendatory Act of the 101st General Assembly) shall not exceed
7$20,000,000 in any State fiscal year.
8 This subsection (h-5) is exempt from the provisions of
9Section 250.
10 (i) Credit for Personal Property Tax Replacement Income
11Tax. For tax years ending prior to December 31, 2003, a credit
12shall be allowed against the tax imposed by subsections (a)
13and (b) of this Section for the tax imposed by subsections (c)
14and (d) of this Section. This credit shall be computed by
15multiplying the tax imposed by subsections (c) and (d) of this
16Section by a fraction, the numerator of which is base income
17allocable to Illinois and the denominator of which is Illinois
18base income, and further multiplying the product by the tax
19rate imposed by subsections (a) and (b) of this Section.
20 Any credit earned on or after December 31, 1986 under this
21subsection which is unused in the year the credit is computed
22because it exceeds the tax liability imposed by subsections
23(a) and (b) for that year (whether it exceeds the original
24liability or the liability as later amended) may be carried
25forward and applied to the tax liability imposed by
26subsections (a) and (b) of the 5 taxable years following the

SB2254- 583 -LRB102 15486 SMS 20849 b
1excess credit year, provided that no credit may be carried
2forward to any year ending on or after December 31, 2003. This
3credit shall be applied first to the earliest year for which
4there is a liability. If there is a credit under this
5subsection from more than one tax year that is available to
6offset a liability the earliest credit arising under this
7subsection shall be applied first.
8 If, during any taxable year ending on or after December
931, 1986, the tax imposed by subsections (c) and (d) of this
10Section for which a taxpayer has claimed a credit under this
11subsection (i) is reduced, the amount of credit for such tax
12shall also be reduced. Such reduction shall be determined by
13recomputing the credit to take into account the reduced tax
14imposed by subsections (c) and (d). If any portion of the
15reduced amount of credit has been carried to a different
16taxable year, an amended return shall be filed for such
17taxable year to reduce the amount of credit claimed.
18 (j) Training expense credit. Beginning with tax years
19ending on or after December 31, 1986 and prior to December 31,
202003, a taxpayer shall be allowed a credit against the tax
21imposed by subsections (a) and (b) under this Section for all
22amounts paid or accrued, on behalf of all persons employed by
23the taxpayer in Illinois or Illinois residents employed
24outside of Illinois by a taxpayer, for educational or
25vocational training in semi-technical or technical fields or
26semi-skilled or skilled fields, which were deducted from gross

SB2254- 584 -LRB102 15486 SMS 20849 b
1income in the computation of taxable income. The credit
2against the tax imposed by subsections (a) and (b) shall be
31.6% of such training expenses. For partners, shareholders of
4subchapter S corporations, and owners of limited liability
5companies, if the liability company is treated as a
6partnership for purposes of federal and State income taxation,
7there shall be allowed a credit under this subsection (j) to be
8determined in accordance with the determination of income and
9distributive share of income under Sections 702 and 704 and
10subchapter S of the Internal Revenue Code.
11 Any credit allowed under this subsection which is unused
12in the year the credit is earned may be carried forward to each
13of the 5 taxable years following the year for which the credit
14is first computed until it is used. This credit shall be
15applied first to the earliest year for which there is a
16liability. If there is a credit under this subsection from
17more than one tax year that is available to offset a liability,
18the earliest credit arising under this subsection shall be
19applied first. No carryforward credit may be claimed in any
20tax year ending on or after December 31, 2003.
21 (k) Research and development credit. For tax years ending
22after July 1, 1990 and prior to December 31, 2003, and
23beginning again for tax years ending on or after December 31,
242004, and ending prior to January 1, 2027, a taxpayer shall be
25allowed a credit against the tax imposed by subsections (a)
26and (b) of this Section for increasing research activities in

SB2254- 585 -LRB102 15486 SMS 20849 b
1this State. The credit allowed against the tax imposed by
2subsections (a) and (b) shall be equal to 6 1/2% of the
3qualifying expenditures for increasing research activities in
4this State. For partners, shareholders of subchapter S
5corporations, and owners of limited liability companies, if
6the liability company is treated as a partnership for purposes
7of federal and State income taxation, there shall be allowed a
8credit under this subsection to be determined in accordance
9with the determination of income and distributive share of
10income under Sections 702 and 704 and subchapter S of the
11Internal Revenue Code.
12 For purposes of this subsection, "qualifying expenditures"
13means the qualifying expenditures as defined for the federal
14credit for increasing research activities which would be
15allowable under Section 41 of the Internal Revenue Code and
16which are conducted in this State, "qualifying expenditures
17for increasing research activities in this State" means the
18excess of qualifying expenditures for the taxable year in
19which incurred over qualifying expenditures for the base
20period, "qualifying expenditures for the base period" means
21the average of the qualifying expenditures for each year in
22the base period, and "base period" means the 3 taxable years
23immediately preceding the taxable year for which the
24determination is being made.
25 Any credit in excess of the tax liability for the taxable
26year may be carried forward. A taxpayer may elect to have the

SB2254- 586 -LRB102 15486 SMS 20849 b
1unused credit shown on its final completed return carried over
2as a credit against the tax liability for the following 5
3taxable years or until it has been fully used, whichever
4occurs first; provided that no credit earned in a tax year
5ending prior to December 31, 2003 may be carried forward to any
6year ending on or after December 31, 2003.
7 If an unused credit is carried forward to a given year from
82 or more earlier years, that credit arising in the earliest
9year will be applied first against the tax liability for the
10given year. If a tax liability for the given year still
11remains, the credit from the next earliest year will then be
12applied, and so on, until all credits have been used or no tax
13liability for the given year remains. Any remaining unused
14credit or credits then will be carried forward to the next
15following year in which a tax liability is incurred, except
16that no credit can be carried forward to a year which is more
17than 5 years after the year in which the expense for which the
18credit is given was incurred.
19 No inference shall be drawn from Public Act 91-644 this
20amendatory Act of the 91st General Assembly in construing this
21Section for taxable years beginning before January 1, 1999.
22 It is the intent of the General Assembly that the research
23and development credit under this subsection (k) shall apply
24continuously for all tax years ending on or after December 31,
252004 and ending prior to January 1, 2027, including, but not
26limited to, the period beginning on January 1, 2016 and ending

SB2254- 587 -LRB102 15486 SMS 20849 b
1on July 6, 2017 (the effective date of Public Act 100-22) this
2amendatory Act of the 100th General Assembly. All actions
3taken in reliance on the continuation of the credit under this
4subsection (k) by any taxpayer are hereby validated.
5 (l) Environmental Remediation Tax Credit.
6 (i) For tax years ending after December 31, 1997 and
7 on or before December 31, 2001, a taxpayer shall be
8 allowed a credit against the tax imposed by subsections
9 (a) and (b) of this Section for certain amounts paid for
10 unreimbursed eligible remediation costs, as specified in
11 this subsection. For purposes of this Section,
12 "unreimbursed eligible remediation costs" means costs
13 approved by the Illinois Environmental Protection Agency
14 ("Agency") under Section 58.14 of the Environmental
15 Protection Act that were paid in performing environmental
16 remediation at a site for which a No Further Remediation
17 Letter was issued by the Agency and recorded under Section
18 58.10 of the Environmental Protection Act. The credit must
19 be claimed for the taxable year in which Agency approval
20 of the eligible remediation costs is granted. The credit
21 is not available to any taxpayer if the taxpayer or any
22 related party caused or contributed to, in any material
23 respect, a release of regulated substances on, in, or
24 under the site that was identified and addressed by the
25 remedial action pursuant to the Site Remediation Program
26 of the Environmental Protection Act. After the Pollution

SB2254- 588 -LRB102 15486 SMS 20849 b
1 Control Board rules are adopted pursuant to the Illinois
2 Administrative Procedure Act for the administration and
3 enforcement of Section 58.9 of the Environmental
4 Protection Act, determinations as to credit availability
5 for purposes of this Section shall be made consistent with
6 those rules. For purposes of this Section, "taxpayer"
7 includes a person whose tax attributes the taxpayer has
8 succeeded to under Section 381 of the Internal Revenue
9 Code and "related party" includes the persons disallowed a
10 deduction for losses by paragraphs (b), (c), and (f)(1) of
11 Section 267 of the Internal Revenue Code by virtue of
12 being a related taxpayer, as well as any of its partners.
13 The credit allowed against the tax imposed by subsections
14 (a) and (b) shall be equal to 25% of the unreimbursed
15 eligible remediation costs in excess of $100,000 per site,
16 except that the $100,000 threshold shall not apply to any
17 site contained in an enterprise zone as determined by the
18 Department of Commerce and Community Affairs (now
19 Department of Commerce and Economic Opportunity). The
20 total credit allowed shall not exceed $40,000 per year
21 with a maximum total of $150,000 per site. For partners
22 and shareholders of subchapter S corporations, there shall
23 be allowed a credit under this subsection to be determined
24 in accordance with the determination of income and
25 distributive share of income under Sections 702 and 704
26 and subchapter S of the Internal Revenue Code.

SB2254- 589 -LRB102 15486 SMS 20849 b
1 (ii) A credit allowed under this subsection that is
2 unused in the year the credit is earned may be carried
3 forward to each of the 5 taxable years following the year
4 for which the credit is first earned until it is used. The
5 term "unused credit" does not include any amounts of
6 unreimbursed eligible remediation costs in excess of the
7 maximum credit per site authorized under paragraph (i).
8 This credit shall be applied first to the earliest year
9 for which there is a liability. If there is a credit under
10 this subsection from more than one tax year that is
11 available to offset a liability, the earliest credit
12 arising under this subsection shall be applied first. A
13 credit allowed under this subsection may be sold to a
14 buyer as part of a sale of all or part of the remediation
15 site for which the credit was granted. The purchaser of a
16 remediation site and the tax credit shall succeed to the
17 unused credit and remaining carry-forward period of the
18 seller. To perfect the transfer, the assignor shall record
19 the transfer in the chain of title for the site and provide
20 written notice to the Director of the Illinois Department
21 of Revenue of the assignor's intent to sell the
22 remediation site and the amount of the tax credit to be
23 transferred as a portion of the sale. In no event may a
24 credit be transferred to any taxpayer if the taxpayer or a
25 related party would not be eligible under the provisions
26 of subsection (i).

SB2254- 590 -LRB102 15486 SMS 20849 b
1 (iii) For purposes of this Section, the term "site"
2 shall have the same meaning as under Section 58.2 of the
3 Environmental Protection Act.
4 (m) Education expense credit. Beginning with tax years
5ending after December 31, 1999, a taxpayer who is the
6custodian of one or more qualifying pupils shall be allowed a
7credit against the tax imposed by subsections (a) and (b) of
8this Section for qualified education expenses incurred on
9behalf of the qualifying pupils. The credit shall be equal to
1025% of qualified education expenses, but in no event may the
11total credit under this subsection claimed by a family that is
12the custodian of qualifying pupils exceed (i) $500 for tax
13years ending prior to December 31, 2017, and (ii) $750 for tax
14years ending on or after December 31, 2017. In no event shall a
15credit under this subsection reduce the taxpayer's liability
16under this Act to less than zero. Notwithstanding any other
17provision of law, for taxable years beginning on or after
18January 1, 2017, no taxpayer may claim a credit under this
19subsection (m) if the taxpayer's adjusted gross income for the
20taxable year exceeds (i) $500,000, in the case of spouses
21filing a joint federal tax return or (ii) $250,000, in the case
22of all other taxpayers. This subsection is exempt from the
23provisions of Section 250 of this Act.
24 For purposes of this subsection:
25 "Qualifying pupils" means individuals who (i) are
26residents of the State of Illinois, (ii) are under the age of

SB2254- 591 -LRB102 15486 SMS 20849 b
121 at the close of the school year for which a credit is
2sought, and (iii) during the school year for which a credit is
3sought were full-time pupils enrolled in a kindergarten
4through twelfth grade education program at any school, as
5defined in this subsection.
6 "Qualified education expense" means the amount incurred on
7behalf of a qualifying pupil in excess of $250 for tuition,
8book fees, and lab fees at the school in which the pupil is
9enrolled during the regular school year.
10 "School" means any public or nonpublic elementary or
11secondary school in Illinois that is in compliance with Title
12VI of the Civil Rights Act of 1964 and attendance at which
13satisfies the requirements of Section 26-1 of the School Code,
14except that nothing shall be construed to require a child to
15attend any particular public or nonpublic school to qualify
16for the credit under this Section.
17 "Custodian" means, with respect to qualifying pupils, an
18Illinois resident who is a parent, the parents, a legal
19guardian, or the legal guardians of the qualifying pupils.
20 (n) River Edge Redevelopment Zone site remediation tax
21credit.
22 (i) For tax years ending on or after December 31,
23 2006, a taxpayer shall be allowed a credit against the tax
24 imposed by subsections (a) and (b) of this Section for
25 certain amounts paid for unreimbursed eligible remediation
26 costs, as specified in this subsection. For purposes of

SB2254- 592 -LRB102 15486 SMS 20849 b
1 this Section, "unreimbursed eligible remediation costs"
2 means costs approved by the Illinois Environmental
3 Protection Agency ("Agency") under Section 58.14a of the
4 Environmental Protection Act that were paid in performing
5 environmental remediation at a site within a River Edge
6 Redevelopment Zone for which a No Further Remediation
7 Letter was issued by the Agency and recorded under Section
8 58.10 of the Environmental Protection Act. The credit must
9 be claimed for the taxable year in which Agency approval
10 of the eligible remediation costs is granted. The credit
11 is not available to any taxpayer if the taxpayer or any
12 related party caused or contributed to, in any material
13 respect, a release of regulated substances on, in, or
14 under the site that was identified and addressed by the
15 remedial action pursuant to the Site Remediation Program
16 of the Environmental Protection Act. Determinations as to
17 credit availability for purposes of this Section shall be
18 made consistent with rules adopted by the Pollution
19 Control Board pursuant to the Illinois Administrative
20 Procedure Act for the administration and enforcement of
21 Section 58.9 of the Environmental Protection Act. For
22 purposes of this Section, "taxpayer" includes a person
23 whose tax attributes the taxpayer has succeeded to under
24 Section 381 of the Internal Revenue Code and "related
25 party" includes the persons disallowed a deduction for
26 losses by paragraphs (b), (c), and (f)(1) of Section 267

SB2254- 593 -LRB102 15486 SMS 20849 b
1 of the Internal Revenue Code by virtue of being a related
2 taxpayer, as well as any of its partners. The credit
3 allowed against the tax imposed by subsections (a) and (b)
4 shall be equal to 25% of the unreimbursed eligible
5 remediation costs in excess of $100,000 per site.
6 (ii) A credit allowed under this subsection that is
7 unused in the year the credit is earned may be carried
8 forward to each of the 5 taxable years following the year
9 for which the credit is first earned until it is used. This
10 credit shall be applied first to the earliest year for
11 which there is a liability. If there is a credit under this
12 subsection from more than one tax year that is available
13 to offset a liability, the earliest credit arising under
14 this subsection shall be applied first. A credit allowed
15 under this subsection may be sold to a buyer as part of a
16 sale of all or part of the remediation site for which the
17 credit was granted. The purchaser of a remediation site
18 and the tax credit shall succeed to the unused credit and
19 remaining carry-forward period of the seller. To perfect
20 the transfer, the assignor shall record the transfer in
21 the chain of title for the site and provide written notice
22 to the Director of the Illinois Department of Revenue of
23 the assignor's intent to sell the remediation site and the
24 amount of the tax credit to be transferred as a portion of
25 the sale. In no event may a credit be transferred to any
26 taxpayer if the taxpayer or a related party would not be

SB2254- 594 -LRB102 15486 SMS 20849 b
1 eligible under the provisions of subsection (i).
2 (iii) For purposes of this Section, the term "site"
3 shall have the same meaning as under Section 58.2 of the
4 Environmental Protection Act.
5 (o) For each of taxable years during the Compassionate Use
6of Medical Cannabis Program, a surcharge is imposed on all
7taxpayers on income arising from the sale or exchange of
8capital assets, depreciable business property, real property
9used in the trade or business, and Section 197 intangibles of
10an organization registrant under the Compassionate Use of
11Medical Cannabis Program Act. The amount of the surcharge is
12equal to the amount of federal income tax liability for the
13taxable year attributable to those sales and exchanges. The
14surcharge imposed does not apply if:
15 (1) the medical cannabis cultivation center
16 registration, medical cannabis dispensary registration, or
17 the property of a registration is transferred as a result
18 of any of the following:
19 (A) bankruptcy, a receivership, or a debt
20 adjustment initiated by or against the initial
21 registration or the substantial owners of the initial
22 registration;
23 (B) cancellation, revocation, or termination of
24 any registration by the Illinois Department of Public
25 Health;
26 (C) a determination by the Illinois Department of

SB2254- 595 -LRB102 15486 SMS 20849 b
1 Public Health that transfer of the registration is in
2 the best interests of Illinois qualifying patients as
3 defined by the Compassionate Use of Medical Cannabis
4 Program Act;
5 (D) the death of an owner of the equity interest in
6 a registrant;
7 (E) the acquisition of a controlling interest in
8 the stock or substantially all of the assets of a
9 publicly traded company;
10 (F) a transfer by a parent company to a wholly
11 owned subsidiary; or
12 (G) the transfer or sale to or by one person to
13 another person where both persons were initial owners
14 of the registration when the registration was issued;
15 or
16 (2) the cannabis cultivation center registration,
17 medical cannabis dispensary registration, or the
18 controlling interest in a registrant's property is
19 transferred in a transaction to lineal descendants in
20 which no gain or loss is recognized or as a result of a
21 transaction in accordance with Section 351 of the Internal
22 Revenue Code in which no gain or loss is recognized.
23(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
24eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
25revised 11-18-20.)

SB2254- 596 -LRB102 15486 SMS 20849 b
1 (Text of Section with the changes made by P.A. 101-8,
2which did not take effect (see Section 99 of P.A. 101-8))
3 Sec. 201. Tax imposed.
4 (a) In general. A tax measured by net income is hereby
5imposed on every individual, corporation, trust and estate for
6each taxable year ending after July 31, 1969 on the privilege
7of earning or receiving income in or as a resident of this
8State. Such tax shall be in addition to all other occupation or
9privilege taxes imposed by this State or by any municipal
10corporation or political subdivision thereof.
11 (b) Rates. The tax imposed by subsection (a) of this
12Section shall be determined as follows, except as adjusted by
13subsection (d-1):
14 (1) In the case of an individual, trust or estate, for
15 taxable years ending prior to July 1, 1989, an amount
16 equal to 2 1/2% of the taxpayer's net income for the
17 taxable year.
18 (2) In the case of an individual, trust or estate, for
19 taxable years beginning prior to July 1, 1989 and ending
20 after June 30, 1989, an amount equal to the sum of (i) 2
21 1/2% of the taxpayer's net income for the period prior to
22 July 1, 1989, as calculated under Section 202.3, and (ii)
23 3% of the taxpayer's net income for the period after June
24 30, 1989, as calculated under Section 202.3.
25 (3) In the case of an individual, trust or estate, for
26 taxable years beginning after June 30, 1989, and ending

SB2254- 597 -LRB102 15486 SMS 20849 b
1 prior to January 1, 2011, an amount equal to 3% of the
2 taxpayer's net income for the taxable year.
3 (4) In the case of an individual, trust, or estate,
4 for taxable years beginning prior to January 1, 2011, and
5 ending after December 31, 2010, an amount equal to the sum
6 of (i) 3% of the taxpayer's net income for the period prior
7 to January 1, 2011, as calculated under Section 202.5, and
8 (ii) 5% of the taxpayer's net income for the period after
9 December 31, 2010, as calculated under Section 202.5.
10 (5) In the case of an individual, trust, or estate,
11 for taxable years beginning on or after January 1, 2011,
12 and ending prior to January 1, 2015, an amount equal to 5%
13 of the taxpayer's net income for the taxable year.
14 (5.1) In the case of an individual, trust, or estate,
15 for taxable years beginning prior to January 1, 2015, and
16 ending after December 31, 2014, an amount equal to the sum
17 of (i) 5% of the taxpayer's net income for the period prior
18 to January 1, 2015, as calculated under Section 202.5, and
19 (ii) 3.75% of the taxpayer's net income for the period
20 after December 31, 2014, as calculated under Section
21 202.5.
22 (5.2) In the case of an individual, trust, or estate,
23 for taxable years beginning on or after January 1, 2015,
24 and ending prior to July 1, 2017, an amount equal to 3.75%
25 of the taxpayer's net income for the taxable year.
26 (5.3) In the case of an individual, trust, or estate,

SB2254- 598 -LRB102 15486 SMS 20849 b
1 for taxable years beginning prior to July 1, 2017, and
2 ending after June 30, 2017, an amount equal to the sum of
3 (i) 3.75% of the taxpayer's net income for the period
4 prior to July 1, 2017, as calculated under Section 202.5,
5 and (ii) 4.95% of the taxpayer's net income for the period
6 after June 30, 2017, as calculated under Section 202.5.
7 (5.4) In the case of an individual, trust, or estate,
8 for taxable years beginning on or after July 1, 2017 and
9 beginning prior to January 1, 2021, an amount equal to
10 4.95% of the taxpayer's net income for the taxable year.
11 (5.5) In the case of an individual, trust, or estate,
12 for taxable years beginning on or after January 1, 2021,
13 an amount calculated under the rate structure set forth in
14 Section 201.1.
15 (6) In the case of a corporation, for taxable years
16 ending prior to July 1, 1989, an amount equal to 4% of the
17 taxpayer's net income for the taxable year.
18 (7) In the case of a corporation, for taxable years
19 beginning prior to July 1, 1989 and ending after June 30,
20 1989, an amount equal to the sum of (i) 4% of the
21 taxpayer's net income for the period prior to July 1,
22 1989, as calculated under Section 202.3, and (ii) 4.8% of
23 the taxpayer's net income for the period after June 30,
24 1989, as calculated under Section 202.3.
25 (8) In the case of a corporation, for taxable years
26 beginning after June 30, 1989, and ending prior to January

SB2254- 599 -LRB102 15486 SMS 20849 b
1 1, 2011, an amount equal to 4.8% of the taxpayer's net
2 income for the taxable year.
3 (9) In the case of a corporation, for taxable years
4 beginning prior to January 1, 2011, and ending after
5 December 31, 2010, an amount equal to the sum of (i) 4.8%
6 of the taxpayer's net income for the period prior to
7 January 1, 2011, as calculated under Section 202.5, and
8 (ii) 7% of the taxpayer's net income for the period after
9 December 31, 2010, as calculated under Section 202.5.
10 (10) In the case of a corporation, for taxable years
11 beginning on or after January 1, 2011, and ending prior to
12 January 1, 2015, an amount equal to 7% of the taxpayer's
13 net income for the taxable year.
14 (11) In the case of a corporation, for taxable years
15 beginning prior to January 1, 2015, and ending after
16 December 31, 2014, an amount equal to the sum of (i) 7% of
17 the taxpayer's net income for the period prior to January
18 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
19 of the taxpayer's net income for the period after December
20 31, 2014, as calculated under Section 202.5.
21 (12) In the case of a corporation, for taxable years
22 beginning on or after January 1, 2015, and ending prior to
23 July 1, 2017, an amount equal to 5.25% of the taxpayer's
24 net income for the taxable year.
25 (13) In the case of a corporation, for taxable years
26 beginning prior to July 1, 2017, and ending after June 30,

SB2254- 600 -LRB102 15486 SMS 20849 b
1 2017, an amount equal to the sum of (i) 5.25% of the
2 taxpayer's net income for the period prior to July 1,
3 2017, as calculated under Section 202.5, and (ii) 7% of
4 the taxpayer's net income for the period after June 30,
5 2017, as calculated under Section 202.5.
6 (14) In the case of a corporation, for taxable years
7 beginning on or after July 1, 2017 and beginning prior to
8 January 1, 2021, an amount equal to 7% of the taxpayer's
9 net income for the taxable year.
10 (15) In the case of a corporation, for taxable years
11 beginning on or after January 1, 2021, an amount equal to
12 7.99% of the taxpayer's net income for the taxable year.
13 The rates under this subsection (b) are subject to the
14provisions of Section 201.5.
15 (b-5) Surcharge; sale or exchange of assets, properties,
16and intangibles of organization gaming licensees. For each of
17taxable years 2019 through 2027, a surcharge is imposed on all
18taxpayers on income arising from the sale or exchange of
19capital assets, depreciable business property, real property
20used in the trade or business, and Section 197 intangibles (i)
21of an organization licensee under the Illinois Horse Racing
22Act of 1975 and (ii) of an organization gaming licensee under
23the Illinois Gambling Act. The amount of the surcharge is
24equal to the amount of federal income tax liability for the
25taxable year attributable to those sales and exchanges. The
26surcharge imposed shall not apply if:

SB2254- 601 -LRB102 15486 SMS 20849 b
1 (1) the organization gaming license, organization
2 license, or racetrack property is transferred as a result
3 of any of the following:
4 (A) bankruptcy, a receivership, or a debt
5 adjustment initiated by or against the initial
6 licensee or the substantial owners of the initial
7 licensee;
8 (B) cancellation, revocation, or termination of
9 any such license by the Department of Lottery and
10 Gaming Illinois Gaming Board or the Illinois Racing
11 Board;
12 (C) a determination by the Division of Casino
13 Gambling of the Department of Lottery and Gaming
14 Illinois Gaming Board that transfer of the license is
15 in the best interests of Illinois gaming;
16 (D) the death of an owner of the equity interest in
17 a licensee;
18 (E) the acquisition of a controlling interest in
19 the stock or substantially all of the assets of a
20 publicly traded company;
21 (F) a transfer by a parent company to a wholly
22 owned subsidiary; or
23 (G) the transfer or sale to or by one person to
24 another person where both persons were initial owners
25 of the license when the license was issued; or
26 (2) the controlling interest in the organization

SB2254- 602 -LRB102 15486 SMS 20849 b
1 gaming license, organization license, or racetrack
2 property is transferred in a transaction to lineal
3 descendants in which no gain or loss is recognized or as a
4 result of a transaction in accordance with Section 351 of
5 the Internal Revenue Code in which no gain or loss is
6 recognized; or
7 (3) live horse racing was not conducted in 2010 at a
8 racetrack located within 3 miles of the Mississippi River
9 under a license issued pursuant to the Illinois Horse
10 Racing Act of 1975.
11 The transfer of an organization gaming license,
12organization license, or racetrack property by a person other
13than the initial licensee to receive the organization gaming
14license is not subject to a surcharge. The Department shall
15adopt rules necessary to implement and administer this
16subsection.
17 (c) Personal Property Tax Replacement Income Tax.
18Beginning on July 1, 1979 and thereafter, in addition to such
19income tax, there is also hereby imposed the Personal Property
20Tax Replacement Income Tax measured by net income on every
21corporation (including Subchapter S corporations), partnership
22and trust, for each taxable year ending after June 30, 1979.
23Such taxes are imposed on the privilege of earning or
24receiving income in or as a resident of this State. The
25Personal Property Tax Replacement Income Tax shall be in
26addition to the income tax imposed by subsections (a) and (b)

SB2254- 603 -LRB102 15486 SMS 20849 b
1of this Section and in addition to all other occupation or
2privilege taxes imposed by this State or by any municipal
3corporation or political subdivision thereof.
4 (d) Additional Personal Property Tax Replacement Income
5Tax Rates. The personal property tax replacement income tax
6imposed by this subsection and subsection (c) of this Section
7in the case of a corporation, other than a Subchapter S
8corporation and except as adjusted by subsection (d-1), shall
9be an additional amount equal to 2.85% of such taxpayer's net
10income for the taxable year, except that beginning on January
111, 1981, and thereafter, the rate of 2.85% specified in this
12subsection shall be reduced to 2.5%, and in the case of a
13partnership, trust or a Subchapter S corporation shall be an
14additional amount equal to 1.5% of such taxpayer's net income
15for the taxable year.
16 (d-1) Rate reduction for certain foreign insurers. In the
17case of a foreign insurer, as defined by Section 35A-5 of the
18Illinois Insurance Code, whose state or country of domicile
19imposes on insurers domiciled in Illinois a retaliatory tax
20(excluding any insurer whose premiums from reinsurance assumed
21are 50% or more of its total insurance premiums as determined
22under paragraph (2) of subsection (b) of Section 304, except
23that for purposes of this determination premiums from
24reinsurance do not include premiums from inter-affiliate
25reinsurance arrangements), beginning with taxable years ending
26on or after December 31, 1999, the sum of the rates of tax

SB2254- 604 -LRB102 15486 SMS 20849 b
1imposed by subsections (b) and (d) shall be reduced (but not
2increased) to the rate at which the total amount of tax imposed
3under this Act, net of all credits allowed under this Act,
4shall equal (i) the total amount of tax that would be imposed
5on the foreign insurer's net income allocable to Illinois for
6the taxable year by such foreign insurer's state or country of
7domicile if that net income were subject to all income taxes
8and taxes measured by net income imposed by such foreign
9insurer's state or country of domicile, net of all credits
10allowed or (ii) a rate of zero if no such tax is imposed on
11such income by the foreign insurer's state of domicile. For
12the purposes of this subsection (d-1), an inter-affiliate
13includes a mutual insurer under common management.
14 (1) For the purposes of subsection (d-1), in no event
15 shall the sum of the rates of tax imposed by subsections
16 (b) and (d) be reduced below the rate at which the sum of:
17 (A) the total amount of tax imposed on such
18 foreign insurer under this Act for a taxable year, net
19 of all credits allowed under this Act, plus
20 (B) the privilege tax imposed by Section 409 of
21 the Illinois Insurance Code, the fire insurance
22 company tax imposed by Section 12 of the Fire
23 Investigation Act, and the fire department taxes
24 imposed under Section 11-10-1 of the Illinois
25 Municipal Code,
26 equals 1.25% for taxable years ending prior to December

SB2254- 605 -LRB102 15486 SMS 20849 b
1 31, 2003, or 1.75% for taxable years ending on or after
2 December 31, 2003, of the net taxable premiums written for
3 the taxable year, as described by subsection (1) of
4 Section 409 of the Illinois Insurance Code. This paragraph
5 will in no event increase the rates imposed under
6 subsections (b) and (d).
7 (2) Any reduction in the rates of tax imposed by this
8 subsection shall be applied first against the rates
9 imposed by subsection (b) and only after the tax imposed
10 by subsection (a) net of all credits allowed under this
11 Section other than the credit allowed under subsection (i)
12 has been reduced to zero, against the rates imposed by
13 subsection (d).
14 This subsection (d-1) is exempt from the provisions of
15Section 250.
16 (e) Investment credit. A taxpayer shall be allowed a
17credit against the Personal Property Tax Replacement Income
18Tax for investment in qualified property.
19 (1) A taxpayer shall be allowed a credit equal to .5%
20 of the basis of qualified property placed in service
21 during the taxable year, provided such property is placed
22 in service on or after July 1, 1984. There shall be allowed
23 an additional credit equal to .5% of the basis of
24 qualified property placed in service during the taxable
25 year, provided such property is placed in service on or
26 after July 1, 1986, and the taxpayer's base employment

SB2254- 606 -LRB102 15486 SMS 20849 b
1 within Illinois has increased by 1% or more over the
2 preceding year as determined by the taxpayer's employment
3 records filed with the Illinois Department of Employment
4 Security. Taxpayers who are new to Illinois shall be
5 deemed to have met the 1% growth in base employment for the
6 first year in which they file employment records with the
7 Illinois Department of Employment Security. The provisions
8 added to this Section by Public Act 85-1200 (and restored
9 by Public Act 87-895) shall be construed as declaratory of
10 existing law and not as a new enactment. If, in any year,
11 the increase in base employment within Illinois over the
12 preceding year is less than 1%, the additional credit
13 shall be limited to that percentage times a fraction, the
14 numerator of which is .5% and the denominator of which is
15 1%, but shall not exceed .5%. The investment credit shall
16 not be allowed to the extent that it would reduce a
17 taxpayer's liability in any tax year below zero, nor may
18 any credit for qualified property be allowed for any year
19 other than the year in which the property was placed in
20 service in Illinois. For tax years ending on or after
21 December 31, 1987, and on or before December 31, 1988, the
22 credit shall be allowed for the tax year in which the
23 property is placed in service, or, if the amount of the
24 credit exceeds the tax liability for that year, whether it
25 exceeds the original liability or the liability as later
26 amended, such excess may be carried forward and applied to

SB2254- 607 -LRB102 15486 SMS 20849 b
1 the tax liability of the 5 taxable years following the
2 excess credit years if the taxpayer (i) makes investments
3 which cause the creation of a minimum of 2,000 full-time
4 equivalent jobs in Illinois, (ii) is located in an
5 enterprise zone established pursuant to the Illinois
6 Enterprise Zone Act and (iii) is certified by the
7 Department of Commerce and Community Affairs (now
8 Department of Commerce and Economic Opportunity) as
9 complying with the requirements specified in clause (i)
10 and (ii) by July 1, 1986. The Department of Commerce and
11 Community Affairs (now Department of Commerce and Economic
12 Opportunity) shall notify the Department of Revenue of all
13 such certifications immediately. For tax years ending
14 after December 31, 1988, the credit shall be allowed for
15 the tax year in which the property is placed in service,
16 or, if the amount of the credit exceeds the tax liability
17 for that year, whether it exceeds the original liability
18 or the liability as later amended, such excess may be
19 carried forward and applied to the tax liability of the 5
20 taxable years following the excess credit years. The
21 credit shall be applied to the earliest year for which
22 there is a liability. If there is credit from more than one
23 tax year that is available to offset a liability, earlier
24 credit shall be applied first.
25 (2) The term "qualified property" means property
26 which:

SB2254- 608 -LRB102 15486 SMS 20849 b
1 (A) is tangible, whether new or used, including
2 buildings and structural components of buildings and
3 signs that are real property, but not including land
4 or improvements to real property that are not a
5 structural component of a building such as
6 landscaping, sewer lines, local access roads, fencing,
7 parking lots, and other appurtenances;
8 (B) is depreciable pursuant to Section 167 of the
9 Internal Revenue Code, except that "3-year property"
10 as defined in Section 168(c)(2)(A) of that Code is not
11 eligible for the credit provided by this subsection
12 (e);
13 (C) is acquired by purchase as defined in Section
14 179(d) of the Internal Revenue Code;
15 (D) is used in Illinois by a taxpayer who is
16 primarily engaged in manufacturing, or in mining coal
17 or fluorite, or in retailing, or was placed in service
18 on or after July 1, 2006 in a River Edge Redevelopment
19 Zone established pursuant to the River Edge
20 Redevelopment Zone Act; and
21 (E) has not previously been used in Illinois in
22 such a manner and by such a person as would qualify for
23 the credit provided by this subsection (e) or
24 subsection (f).
25 (3) For purposes of this subsection (e),
26 "manufacturing" means the material staging and production

SB2254- 609 -LRB102 15486 SMS 20849 b
1 of tangible personal property by procedures commonly
2 regarded as manufacturing, processing, fabrication, or
3 assembling which changes some existing material into new
4 shapes, new qualities, or new combinations. For purposes
5 of this subsection (e) the term "mining" shall have the
6 same meaning as the term "mining" in Section 613(c) of the
7 Internal Revenue Code. For purposes of this subsection
8 (e), the term "retailing" means the sale of tangible
9 personal property for use or consumption and not for
10 resale, or services rendered in conjunction with the sale
11 of tangible personal property for use or consumption and
12 not for resale. For purposes of this subsection (e),
13 "tangible personal property" has the same meaning as when
14 that term is used in the Retailers' Occupation Tax Act,
15 and, for taxable years ending after December 31, 2008,
16 does not include the generation, transmission, or
17 distribution of electricity.
18 (4) The basis of qualified property shall be the basis
19 used to compute the depreciation deduction for federal
20 income tax purposes.
21 (5) If the basis of the property for federal income
22 tax depreciation purposes is increased after it has been
23 placed in service in Illinois by the taxpayer, the amount
24 of such increase shall be deemed property placed in
25 service on the date of such increase in basis.
26 (6) The term "placed in service" shall have the same

SB2254- 610 -LRB102 15486 SMS 20849 b
1 meaning as under Section 46 of the Internal Revenue Code.
2 (7) If during any taxable year, any property ceases to
3 be qualified property in the hands of the taxpayer within
4 48 months after being placed in service, or the situs of
5 any qualified property is moved outside Illinois within 48
6 months after being placed in service, the Personal
7 Property Tax Replacement Income Tax for such taxable year
8 shall be increased. Such increase shall be determined by
9 (i) recomputing the investment credit which would have
10 been allowed for the year in which credit for such
11 property was originally allowed by eliminating such
12 property from such computation and, (ii) subtracting such
13 recomputed credit from the amount of credit previously
14 allowed. For the purposes of this paragraph (7), a
15 reduction of the basis of qualified property resulting
16 from a redetermination of the purchase price shall be
17 deemed a disposition of qualified property to the extent
18 of such reduction.
19 (8) Unless the investment credit is extended by law,
20 the basis of qualified property shall not include costs
21 incurred after December 31, 2018, except for costs
22 incurred pursuant to a binding contract entered into on or
23 before December 31, 2018.
24 (9) Each taxable year ending before December 31, 2000,
25 a partnership may elect to pass through to its partners
26 the credits to which the partnership is entitled under

SB2254- 611 -LRB102 15486 SMS 20849 b
1 this subsection (e) for the taxable year. A partner may
2 use the credit allocated to him or her under this
3 paragraph only against the tax imposed in subsections (c)
4 and (d) of this Section. If the partnership makes that
5 election, those credits shall be allocated among the
6 partners in the partnership in accordance with the rules
7 set forth in Section 704(b) of the Internal Revenue Code,
8 and the rules promulgated under that Section, and the
9 allocated amount of the credits shall be allowed to the
10 partners for that taxable year. The partnership shall make
11 this election on its Personal Property Tax Replacement
12 Income Tax return for that taxable year. The election to
13 pass through the credits shall be irrevocable.
14 For taxable years ending on or after December 31,
15 2000, a partner that qualifies its partnership for a
16 subtraction under subparagraph (I) of paragraph (2) of
17 subsection (d) of Section 203 or a shareholder that
18 qualifies a Subchapter S corporation for a subtraction
19 under subparagraph (S) of paragraph (2) of subsection (b)
20 of Section 203 shall be allowed a credit under this
21 subsection (e) equal to its share of the credit earned
22 under this subsection (e) during the taxable year by the
23 partnership or Subchapter S corporation, determined in
24 accordance with the determination of income and
25 distributive share of income under Sections 702 and 704
26 and Subchapter S of the Internal Revenue Code. This

SB2254- 612 -LRB102 15486 SMS 20849 b
1 paragraph is exempt from the provisions of Section 250.
2 (f) Investment credit; Enterprise Zone; River Edge
3Redevelopment Zone.
4 (1) A taxpayer shall be allowed a credit against the
5 tax imposed by subsections (a) and (b) of this Section for
6 investment in qualified property which is placed in
7 service in an Enterprise Zone created pursuant to the
8 Illinois Enterprise Zone Act or, for property placed in
9 service on or after July 1, 2006, a River Edge
10 Redevelopment Zone established pursuant to the River Edge
11 Redevelopment Zone Act. For partners, shareholders of
12 Subchapter S corporations, and owners of limited liability
13 companies, if the liability company is treated as a
14 partnership for purposes of federal and State income
15 taxation, there shall be allowed a credit under this
16 subsection (f) to be determined in accordance with the
17 determination of income and distributive share of income
18 under Sections 702 and 704 and Subchapter S of the
19 Internal Revenue Code. The credit shall be .5% of the
20 basis for such property. The credit shall be available
21 only in the taxable year in which the property is placed in
22 service in the Enterprise Zone or River Edge Redevelopment
23 Zone and shall not be allowed to the extent that it would
24 reduce a taxpayer's liability for the tax imposed by
25 subsections (a) and (b) of this Section to below zero. For
26 tax years ending on or after December 31, 1985, the credit

SB2254- 613 -LRB102 15486 SMS 20849 b
1 shall be allowed for the tax year in which the property is
2 placed in service, or, if the amount of the credit exceeds
3 the tax liability for that year, whether it exceeds the
4 original liability or the liability as later amended, such
5 excess may be carried forward and applied to the tax
6 liability of the 5 taxable years following the excess
7 credit year. The credit shall be applied to the earliest
8 year for which there is a liability. If there is credit
9 from more than one tax year that is available to offset a
10 liability, the credit accruing first in time shall be
11 applied first.
12 (2) The term qualified property means property which:
13 (A) is tangible, whether new or used, including
14 buildings and structural components of buildings;
15 (B) is depreciable pursuant to Section 167 of the
16 Internal Revenue Code, except that "3-year property"
17 as defined in Section 168(c)(2)(A) of that Code is not
18 eligible for the credit provided by this subsection
19 (f);
20 (C) is acquired by purchase as defined in Section
21 179(d) of the Internal Revenue Code;
22 (D) is used in the Enterprise Zone or River Edge
23 Redevelopment Zone by the taxpayer; and
24 (E) has not been previously used in Illinois in
25 such a manner and by such a person as would qualify for
26 the credit provided by this subsection (f) or

SB2254- 614 -LRB102 15486 SMS 20849 b
1 subsection (e).
2 (3) The basis of qualified property shall be the basis
3 used to compute the depreciation deduction for federal
4 income tax purposes.
5 (4) If the basis of the property for federal income
6 tax depreciation purposes is increased after it has been
7 placed in service in the Enterprise Zone or River Edge
8 Redevelopment Zone by the taxpayer, the amount of such
9 increase shall be deemed property placed in service on the
10 date of such increase in basis.
11 (5) The term "placed in service" shall have the same
12 meaning as under Section 46 of the Internal Revenue Code.
13 (6) If during any taxable year, any property ceases to
14 be qualified property in the hands of the taxpayer within
15 48 months after being placed in service, or the situs of
16 any qualified property is moved outside the Enterprise
17 Zone or River Edge Redevelopment Zone within 48 months
18 after being placed in service, the tax imposed under
19 subsections (a) and (b) of this Section for such taxable
20 year shall be increased. Such increase shall be determined
21 by (i) recomputing the investment credit which would have
22 been allowed for the year in which credit for such
23 property was originally allowed by eliminating such
24 property from such computation, and (ii) subtracting such
25 recomputed credit from the amount of credit previously
26 allowed. For the purposes of this paragraph (6), a

SB2254- 615 -LRB102 15486 SMS 20849 b
1 reduction of the basis of qualified property resulting
2 from a redetermination of the purchase price shall be
3 deemed a disposition of qualified property to the extent
4 of such reduction.
5 (7) There shall be allowed an additional credit equal
6 to 0.5% of the basis of qualified property placed in
7 service during the taxable year in a River Edge
8 Redevelopment Zone, provided such property is placed in
9 service on or after July 1, 2006, and the taxpayer's base
10 employment within Illinois has increased by 1% or more
11 over the preceding year as determined by the taxpayer's
12 employment records filed with the Illinois Department of
13 Employment Security. Taxpayers who are new to Illinois
14 shall be deemed to have met the 1% growth in base
15 employment for the first year in which they file
16 employment records with the Illinois Department of
17 Employment Security. If, in any year, the increase in base
18 employment within Illinois over the preceding year is less
19 than 1%, the additional credit shall be limited to that
20 percentage times a fraction, the numerator of which is
21 0.5% and the denominator of which is 1%, but shall not
22 exceed 0.5%.
23 (8) For taxable years beginning on or after January 1,
24 2021, there shall be allowed an Enterprise Zone
25 construction jobs credit against the taxes imposed under
26 subsections (a) and (b) of this Section as provided in

SB2254- 616 -LRB102 15486 SMS 20849 b
1 Section 13 of the Illinois Enterprise Zone Act.
2 The credit or credits may not reduce the taxpayer's
3 liability to less than zero. If the amount of the credit or
4 credits exceeds the taxpayer's liability, the excess may
5 be carried forward and applied against the taxpayer's
6 liability in succeeding calendar years in the same manner
7 provided under paragraph (4) of Section 211 of this Act.
8 The credit or credits shall be applied to the earliest
9 year for which there is a tax liability. If there are
10 credits from more than one taxable year that are available
11 to offset a liability, the earlier credit shall be applied
12 first.
13 For partners, shareholders of Subchapter S
14 corporations, and owners of limited liability companies,
15 if the liability company is treated as a partnership for
16 the purposes of federal and State income taxation, there
17 shall be allowed a credit under this Section to be
18 determined in accordance with the determination of income
19 and distributive share of income under Sections 702 and
20 704 and Subchapter S of the Internal Revenue Code.
21 The total aggregate amount of credits awarded under
22 the Blue Collar Jobs Act (Article 20 of Public Act 101-9
23 this amendatory Act of the 101st General Assembly) shall
24 not exceed $20,000,000 in any State fiscal year.
25 This paragraph (8) is exempt from the provisions of
26 Section 250.

SB2254- 617 -LRB102 15486 SMS 20849 b
1 (g) (Blank).
2 (h) Investment credit; High Impact Business.
3 (1) Subject to subsections (b) and (b-5) of Section
4 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
5 be allowed a credit against the tax imposed by subsections
6 (a) and (b) of this Section for investment in qualified
7 property which is placed in service by a Department of
8 Commerce and Economic Opportunity designated High Impact
9 Business. The credit shall be .5% of the basis for such
10 property. The credit shall not be available (i) until the
11 minimum investments in qualified property set forth in
12 subdivision (a)(3)(A) of Section 5.5 of the Illinois
13 Enterprise Zone Act have been satisfied or (ii) until the
14 time authorized in subsection (b-5) of the Illinois
15 Enterprise Zone Act for entities designated as High Impact
16 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
17 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
18 Act, and shall not be allowed to the extent that it would
19 reduce a taxpayer's liability for the tax imposed by
20 subsections (a) and (b) of this Section to below zero. The
21 credit applicable to such investments shall be taken in
22 the taxable year in which such investments have been
23 completed. The credit for additional investments beyond
24 the minimum investment by a designated high impact
25 business authorized under subdivision (a)(3)(A) of Section
26 5.5 of the Illinois Enterprise Zone Act shall be available

SB2254- 618 -LRB102 15486 SMS 20849 b
1 only in the taxable year in which the property is placed in
2 service and shall not be allowed to the extent that it
3 would reduce a taxpayer's liability for the tax imposed by
4 subsections (a) and (b) of this Section to below zero. For
5 tax years ending on or after December 31, 1987, the credit
6 shall be allowed for the tax year in which the property is
7 placed in service, or, if the amount of the credit exceeds
8 the tax liability for that year, whether it exceeds the
9 original liability or the liability as later amended, such
10 excess may be carried forward and applied to the tax
11 liability of the 5 taxable years following the excess
12 credit year. The credit shall be applied to the earliest
13 year for which there is a liability. If there is credit
14 from more than one tax year that is available to offset a
15 liability, the credit accruing first in time shall be
16 applied first.
17 Changes made in this subdivision (h)(1) by Public Act
18 88-670 restore changes made by Public Act 85-1182 and
19 reflect existing law.
20 (2) The term qualified property means property which:
21 (A) is tangible, whether new or used, including
22 buildings and structural components of buildings;
23 (B) is depreciable pursuant to Section 167 of the
24 Internal Revenue Code, except that "3-year property"
25 as defined in Section 168(c)(2)(A) of that Code is not
26 eligible for the credit provided by this subsection

SB2254- 619 -LRB102 15486 SMS 20849 b
1 (h);
2 (C) is acquired by purchase as defined in Section
3 179(d) of the Internal Revenue Code; and
4 (D) is not eligible for the Enterprise Zone
5 Investment Credit provided by subsection (f) of this
6 Section.
7 (3) The basis of qualified property shall be the basis
8 used to compute the depreciation deduction for federal
9 income tax purposes.
10 (4) If the basis of the property for federal income
11 tax depreciation purposes is increased after it has been
12 placed in service in a federally designated Foreign Trade
13 Zone or Sub-Zone located in Illinois by the taxpayer, the
14 amount of such increase shall be deemed property placed in
15 service on the date of such increase in basis.
16 (5) The term "placed in service" shall have the same
17 meaning as under Section 46 of the Internal Revenue Code.
18 (6) If during any taxable year ending on or before
19 December 31, 1996, any property ceases to be qualified
20 property in the hands of the taxpayer within 48 months
21 after being placed in service, or the situs of any
22 qualified property is moved outside Illinois within 48
23 months after being placed in service, the tax imposed
24 under subsections (a) and (b) of this Section for such
25 taxable year shall be increased. Such increase shall be
26 determined by (i) recomputing the investment credit which

SB2254- 620 -LRB102 15486 SMS 20849 b
1 would have been allowed for the year in which credit for
2 such property was originally allowed by eliminating such
3 property from such computation, and (ii) subtracting such
4 recomputed credit from the amount of credit previously
5 allowed. For the purposes of this paragraph (6), a
6 reduction of the basis of qualified property resulting
7 from a redetermination of the purchase price shall be
8 deemed a disposition of qualified property to the extent
9 of such reduction.
10 (7) Beginning with tax years ending after December 31,
11 1996, if a taxpayer qualifies for the credit under this
12 subsection (h) and thereby is granted a tax abatement and
13 the taxpayer relocates its entire facility in violation of
14 the explicit terms and length of the contract under
15 Section 18-183 of the Property Tax Code, the tax imposed
16 under subsections (a) and (b) of this Section shall be
17 increased for the taxable year in which the taxpayer
18 relocated its facility by an amount equal to the amount of
19 credit received by the taxpayer under this subsection (h).
20 (h-5) High Impact Business construction constructions jobs
21credit. For taxable years beginning on or after January 1,
222021, there shall also be allowed a High Impact Business
23construction jobs credit against the tax imposed under
24subsections (a) and (b) of this Section as provided in
25subsections (i) and (j) of Section 5.5 of the Illinois
26Enterprise Zone Act.

SB2254- 621 -LRB102 15486 SMS 20849 b
1 The credit or credits may not reduce the taxpayer's
2liability to less than zero. If the amount of the credit or
3credits exceeds the taxpayer's liability, the excess may be
4carried forward and applied against the taxpayer's liability
5in succeeding calendar years in the manner provided under
6paragraph (4) of Section 211 of this Act. The credit or credits
7shall be applied to the earliest year for which there is a tax
8liability. If there are credits from more than one taxable
9year that are available to offset a liability, the earlier
10credit shall be applied first.
11 For partners, shareholders of Subchapter S corporations,
12and owners of limited liability companies, if the liability
13company is treated as a partnership for the purposes of
14federal and State income taxation, there shall be allowed a
15credit under this Section to be determined in accordance with
16the determination of income and distributive share of income
17under Sections 702 and 704 and Subchapter S of the Internal
18Revenue Code.
19 The total aggregate amount of credits awarded under the
20Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
21amendatory Act of the 101st General Assembly) shall not exceed
22$20,000,000 in any State fiscal year.
23 This subsection (h-5) is exempt from the provisions of
24Section 250.
25 (i) Credit for Personal Property Tax Replacement Income
26Tax. For tax years ending prior to December 31, 2003, a credit

SB2254- 622 -LRB102 15486 SMS 20849 b
1shall be allowed against the tax imposed by subsections (a)
2and (b) of this Section for the tax imposed by subsections (c)
3and (d) of this Section. This credit shall be computed by
4multiplying the tax imposed by subsections (c) and (d) of this
5Section by a fraction, the numerator of which is base income
6allocable to Illinois and the denominator of which is Illinois
7base income, and further multiplying the product by the tax
8rate imposed by subsections (a) and (b) of this Section.
9 Any credit earned on or after December 31, 1986 under this
10subsection which is unused in the year the credit is computed
11because it exceeds the tax liability imposed by subsections
12(a) and (b) for that year (whether it exceeds the original
13liability or the liability as later amended) may be carried
14forward and applied to the tax liability imposed by
15subsections (a) and (b) of the 5 taxable years following the
16excess credit year, provided that no credit may be carried
17forward to any year ending on or after December 31, 2003. This
18credit shall be applied first to the earliest year for which
19there is a liability. If there is a credit under this
20subsection from more than one tax year that is available to
21offset a liability the earliest credit arising under this
22subsection shall be applied first.
23 If, during any taxable year ending on or after December
2431, 1986, the tax imposed by subsections (c) and (d) of this
25Section for which a taxpayer has claimed a credit under this
26subsection (i) is reduced, the amount of credit for such tax

SB2254- 623 -LRB102 15486 SMS 20849 b
1shall also be reduced. Such reduction shall be determined by
2recomputing the credit to take into account the reduced tax
3imposed by subsections (c) and (d). If any portion of the
4reduced amount of credit has been carried to a different
5taxable year, an amended return shall be filed for such
6taxable year to reduce the amount of credit claimed.
7 (j) Training expense credit. Beginning with tax years
8ending on or after December 31, 1986 and prior to December 31,
92003, a taxpayer shall be allowed a credit against the tax
10imposed by subsections (a) and (b) under this Section for all
11amounts paid or accrued, on behalf of all persons employed by
12the taxpayer in Illinois or Illinois residents employed
13outside of Illinois by a taxpayer, for educational or
14vocational training in semi-technical or technical fields or
15semi-skilled or skilled fields, which were deducted from gross
16income in the computation of taxable income. The credit
17against the tax imposed by subsections (a) and (b) shall be
181.6% of such training expenses. For partners, shareholders of
19subchapter S corporations, and owners of limited liability
20companies, if the liability company is treated as a
21partnership for purposes of federal and State income taxation,
22there shall be allowed a credit under this subsection (j) to be
23determined in accordance with the determination of income and
24distributive share of income under Sections 702 and 704 and
25subchapter S of the Internal Revenue Code.
26 Any credit allowed under this subsection which is unused

SB2254- 624 -LRB102 15486 SMS 20849 b
1in the year the credit is earned may be carried forward to each
2of the 5 taxable years following the year for which the credit
3is first computed until it is used. This credit shall be
4applied first to the earliest year for which there is a
5liability. If there is a credit under this subsection from
6more than one tax year that is available to offset a liability,
7the earliest credit arising under this subsection shall be
8applied first. No carryforward credit may be claimed in any
9tax year ending on or after December 31, 2003.
10 (k) Research and development credit. For tax years ending
11after July 1, 1990 and prior to December 31, 2003, and
12beginning again for tax years ending on or after December 31,
132004, and ending prior to January 1, 2027, a taxpayer shall be
14allowed a credit against the tax imposed by subsections (a)
15and (b) of this Section for increasing research activities in
16this State. The credit allowed against the tax imposed by
17subsections (a) and (b) shall be equal to 6 1/2% of the
18qualifying expenditures for increasing research activities in
19this State. For partners, shareholders of subchapter S
20corporations, and owners of limited liability companies, if
21the liability company is treated as a partnership for purposes
22of federal and State income taxation, there shall be allowed a
23credit under this subsection to be determined in accordance
24with the determination of income and distributive share of
25income under Sections 702 and 704 and subchapter S of the
26Internal Revenue Code.

SB2254- 625 -LRB102 15486 SMS 20849 b
1 For purposes of this subsection, "qualifying expenditures"
2means the qualifying expenditures as defined for the federal
3credit for increasing research activities which would be
4allowable under Section 41 of the Internal Revenue Code and
5which are conducted in this State, "qualifying expenditures
6for increasing research activities in this State" means the
7excess of qualifying expenditures for the taxable year in
8which incurred over qualifying expenditures for the base
9period, "qualifying expenditures for the base period" means
10the average of the qualifying expenditures for each year in
11the base period, and "base period" means the 3 taxable years
12immediately preceding the taxable year for which the
13determination is being made.
14 Any credit in excess of the tax liability for the taxable
15year may be carried forward. A taxpayer may elect to have the
16unused credit shown on its final completed return carried over
17as a credit against the tax liability for the following 5
18taxable years or until it has been fully used, whichever
19occurs first; provided that no credit earned in a tax year
20ending prior to December 31, 2003 may be carried forward to any
21year ending on or after December 31, 2003.
22 If an unused credit is carried forward to a given year from
232 or more earlier years, that credit arising in the earliest
24year will be applied first against the tax liability for the
25given year. If a tax liability for the given year still
26remains, the credit from the next earliest year will then be

SB2254- 626 -LRB102 15486 SMS 20849 b
1applied, and so on, until all credits have been used or no tax
2liability for the given year remains. Any remaining unused
3credit or credits then will be carried forward to the next
4following year in which a tax liability is incurred, except
5that no credit can be carried forward to a year which is more
6than 5 years after the year in which the expense for which the
7credit is given was incurred.
8 No inference shall be drawn from Public Act 91-644 this
9amendatory Act of the 91st General Assembly in construing this
10Section for taxable years beginning before January 1, 1999.
11 It is the intent of the General Assembly that the research
12and development credit under this subsection (k) shall apply
13continuously for all tax years ending on or after December 31,
142004 and ending prior to January 1, 2027, including, but not
15limited to, the period beginning on January 1, 2016 and ending
16on July 6, 2017 (the effective date of Public Act 100-22) this
17amendatory Act of the 100th General Assembly. All actions
18taken in reliance on the continuation of the credit under this
19subsection (k) by any taxpayer are hereby validated.
20 (l) Environmental Remediation Tax Credit.
21 (i) For tax years ending after December 31, 1997 and
22 on or before December 31, 2001, a taxpayer shall be
23 allowed a credit against the tax imposed by subsections
24 (a) and (b) of this Section for certain amounts paid for
25 unreimbursed eligible remediation costs, as specified in
26 this subsection. For purposes of this Section,

SB2254- 627 -LRB102 15486 SMS 20849 b
1 "unreimbursed eligible remediation costs" means costs
2 approved by the Illinois Environmental Protection Agency
3 ("Agency") under Section 58.14 of the Environmental
4 Protection Act that were paid in performing environmental
5 remediation at a site for which a No Further Remediation
6 Letter was issued by the Agency and recorded under Section
7 58.10 of the Environmental Protection Act. The credit must
8 be claimed for the taxable year in which Agency approval
9 of the eligible remediation costs is granted. The credit
10 is not available to any taxpayer if the taxpayer or any
11 related party caused or contributed to, in any material
12 respect, a release of regulated substances on, in, or
13 under the site that was identified and addressed by the
14 remedial action pursuant to the Site Remediation Program
15 of the Environmental Protection Act. After the Pollution
16 Control Board rules are adopted pursuant to the Illinois
17 Administrative Procedure Act for the administration and
18 enforcement of Section 58.9 of the Environmental
19 Protection Act, determinations as to credit availability
20 for purposes of this Section shall be made consistent with
21 those rules. For purposes of this Section, "taxpayer"
22 includes a person whose tax attributes the taxpayer has
23 succeeded to under Section 381 of the Internal Revenue
24 Code and "related party" includes the persons disallowed a
25 deduction for losses by paragraphs (b), (c), and (f)(1) of
26 Section 267 of the Internal Revenue Code by virtue of

SB2254- 628 -LRB102 15486 SMS 20849 b
1 being a related taxpayer, as well as any of its partners.
2 The credit allowed against the tax imposed by subsections
3 (a) and (b) shall be equal to 25% of the unreimbursed
4 eligible remediation costs in excess of $100,000 per site,
5 except that the $100,000 threshold shall not apply to any
6 site contained in an enterprise zone as determined by the
7 Department of Commerce and Community Affairs (now
8 Department of Commerce and Economic Opportunity). The
9 total credit allowed shall not exceed $40,000 per year
10 with a maximum total of $150,000 per site. For partners
11 and shareholders of subchapter S corporations, there shall
12 be allowed a credit under this subsection to be determined
13 in accordance with the determination of income and
14 distributive share of income under Sections 702 and 704
15 and subchapter S of the Internal Revenue Code.
16 (ii) A credit allowed under this subsection that is
17 unused in the year the credit is earned may be carried
18 forward to each of the 5 taxable years following the year
19 for which the credit is first earned until it is used. The
20 term "unused credit" does not include any amounts of
21 unreimbursed eligible remediation costs in excess of the
22 maximum credit per site authorized under paragraph (i).
23 This credit shall be applied first to the earliest year
24 for which there is a liability. If there is a credit under
25 this subsection from more than one tax year that is
26 available to offset a liability, the earliest credit

SB2254- 629 -LRB102 15486 SMS 20849 b
1 arising under this subsection shall be applied first. A
2 credit allowed under this subsection may be sold to a
3 buyer as part of a sale of all or part of the remediation
4 site for which the credit was granted. The purchaser of a
5 remediation site and the tax credit shall succeed to the
6 unused credit and remaining carry-forward period of the
7 seller. To perfect the transfer, the assignor shall record
8 the transfer in the chain of title for the site and provide
9 written notice to the Director of the Illinois Department
10 of Revenue of the assignor's intent to sell the
11 remediation site and the amount of the tax credit to be
12 transferred as a portion of the sale. In no event may a
13 credit be transferred to any taxpayer if the taxpayer or a
14 related party would not be eligible under the provisions
15 of subsection (i).
16 (iii) For purposes of this Section, the term "site"
17 shall have the same meaning as under Section 58.2 of the
18 Environmental Protection Act.
19 (m) Education expense credit. Beginning with tax years
20ending after December 31, 1999, a taxpayer who is the
21custodian of one or more qualifying pupils shall be allowed a
22credit against the tax imposed by subsections (a) and (b) of
23this Section for qualified education expenses incurred on
24behalf of the qualifying pupils. The credit shall be equal to
2525% of qualified education expenses, but in no event may the
26total credit under this subsection claimed by a family that is

SB2254- 630 -LRB102 15486 SMS 20849 b
1the custodian of qualifying pupils exceed (i) $500 for tax
2years ending prior to December 31, 2017, and (ii) $750 for tax
3years ending on or after December 31, 2017. In no event shall a
4credit under this subsection reduce the taxpayer's liability
5under this Act to less than zero. Notwithstanding any other
6provision of law, for taxable years beginning on or after
7January 1, 2017, no taxpayer may claim a credit under this
8subsection (m) if the taxpayer's adjusted gross income for the
9taxable year exceeds (i) $500,000, in the case of spouses
10filing a joint federal tax return or (ii) $250,000, in the case
11of all other taxpayers. This subsection is exempt from the
12provisions of Section 250 of this Act.
13 For purposes of this subsection:
14 "Qualifying pupils" means individuals who (i) are
15residents of the State of Illinois, (ii) are under the age of
1621 at the close of the school year for which a credit is
17sought, and (iii) during the school year for which a credit is
18sought were full-time pupils enrolled in a kindergarten
19through twelfth grade education program at any school, as
20defined in this subsection.
21 "Qualified education expense" means the amount incurred on
22behalf of a qualifying pupil in excess of $250 for tuition,
23book fees, and lab fees at the school in which the pupil is
24enrolled during the regular school year.
25 "School" means any public or nonpublic elementary or
26secondary school in Illinois that is in compliance with Title

SB2254- 631 -LRB102 15486 SMS 20849 b
1VI of the Civil Rights Act of 1964 and attendance at which
2satisfies the requirements of Section 26-1 of the School Code,
3except that nothing shall be construed to require a child to
4attend any particular public or nonpublic school to qualify
5for the credit under this Section.
6 "Custodian" means, with respect to qualifying pupils, an
7Illinois resident who is a parent, the parents, a legal
8guardian, or the legal guardians of the qualifying pupils.
9 (n) River Edge Redevelopment Zone site remediation tax
10credit.
11 (i) For tax years ending on or after December 31,
12 2006, a taxpayer shall be allowed a credit against the tax
13 imposed by subsections (a) and (b) of this Section for
14 certain amounts paid for unreimbursed eligible remediation
15 costs, as specified in this subsection. For purposes of
16 this Section, "unreimbursed eligible remediation costs"
17 means costs approved by the Illinois Environmental
18 Protection Agency ("Agency") under Section 58.14a of the
19 Environmental Protection Act that were paid in performing
20 environmental remediation at a site within a River Edge
21 Redevelopment Zone for which a No Further Remediation
22 Letter was issued by the Agency and recorded under Section
23 58.10 of the Environmental Protection Act. The credit must
24 be claimed for the taxable year in which Agency approval
25 of the eligible remediation costs is granted. The credit
26 is not available to any taxpayer if the taxpayer or any

SB2254- 632 -LRB102 15486 SMS 20849 b
1 related party caused or contributed to, in any material
2 respect, a release of regulated substances on, in, or
3 under the site that was identified and addressed by the
4 remedial action pursuant to the Site Remediation Program
5 of the Environmental Protection Act. Determinations as to
6 credit availability for purposes of this Section shall be
7 made consistent with rules adopted by the Pollution
8 Control Board pursuant to the Illinois Administrative
9 Procedure Act for the administration and enforcement of
10 Section 58.9 of the Environmental Protection Act. For
11 purposes of this Section, "taxpayer" includes a person
12 whose tax attributes the taxpayer has succeeded to under
13 Section 381 of the Internal Revenue Code and "related
14 party" includes the persons disallowed a deduction for
15 losses by paragraphs (b), (c), and (f)(1) of Section 267
16 of the Internal Revenue Code by virtue of being a related
17 taxpayer, as well as any of its partners. The credit
18 allowed against the tax imposed by subsections (a) and (b)
19 shall be equal to 25% of the unreimbursed eligible
20 remediation costs in excess of $100,000 per site.
21 (ii) A credit allowed under this subsection that is
22 unused in the year the credit is earned may be carried
23 forward to each of the 5 taxable years following the year
24 for which the credit is first earned until it is used. This
25 credit shall be applied first to the earliest year for
26 which there is a liability. If there is a credit under this

SB2254- 633 -LRB102 15486 SMS 20849 b
1 subsection from more than one tax year that is available
2 to offset a liability, the earliest credit arising under
3 this subsection shall be applied first. A credit allowed
4 under this subsection may be sold to a buyer as part of a
5 sale of all or part of the remediation site for which the
6 credit was granted. The purchaser of a remediation site
7 and the tax credit shall succeed to the unused credit and
8 remaining carry-forward period of the seller. To perfect
9 the transfer, the assignor shall record the transfer in
10 the chain of title for the site and provide written notice
11 to the Director of the Illinois Department of Revenue of
12 the assignor's intent to sell the remediation site and the
13 amount of the tax credit to be transferred as a portion of
14 the sale. In no event may a credit be transferred to any
15 taxpayer if the taxpayer or a related party would not be
16 eligible under the provisions of subsection (i).
17 (iii) For purposes of this Section, the term "site"
18 shall have the same meaning as under Section 58.2 of the
19 Environmental Protection Act.
20 (o) For each of taxable years during the Compassionate Use
21of Medical Cannabis Program, a surcharge is imposed on all
22taxpayers on income arising from the sale or exchange of
23capital assets, depreciable business property, real property
24used in the trade or business, and Section 197 intangibles of
25an organization registrant under the Compassionate Use of
26Medical Cannabis Program Act. The amount of the surcharge is

SB2254- 634 -LRB102 15486 SMS 20849 b
1equal to the amount of federal income tax liability for the
2taxable year attributable to those sales and exchanges. The
3surcharge imposed does not apply if:
4 (1) the medical cannabis cultivation center
5 registration, medical cannabis dispensary registration, or
6 the property of a registration is transferred as a result
7 of any of the following:
8 (A) bankruptcy, a receivership, or a debt
9 adjustment initiated by or against the initial
10 registration or the substantial owners of the initial
11 registration;
12 (B) cancellation, revocation, or termination of
13 any registration by the Illinois Department of Public
14 Health;
15 (C) a determination by the Illinois Department of
16 Public Health that transfer of the registration is in
17 the best interests of Illinois qualifying patients as
18 defined by the Compassionate Use of Medical Cannabis
19 Program Act;
20 (D) the death of an owner of the equity interest in
21 a registrant;
22 (E) the acquisition of a controlling interest in
23 the stock or substantially all of the assets of a
24 publicly traded company;
25 (F) a transfer by a parent company to a wholly
26 owned subsidiary; or

SB2254- 635 -LRB102 15486 SMS 20849 b
1 (G) the transfer or sale to or by one person to
2 another person where both persons were initial owners
3 of the registration when the registration was issued;
4 or
5 (2) the cannabis cultivation center registration,
6 medical cannabis dispensary registration, or the
7 controlling interest in a registrant's property is
8 transferred in a transaction to lineal descendants in
9 which no gain or loss is recognized or as a result of a
10 transaction in accordance with Section 351 of the Internal
11 Revenue Code in which no gain or loss is recognized.
12(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
13effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
14101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
15 Section 190. The Illinois Urban Development Authority Act
16is amended by changing Section 3 as follows:
17 (70 ILCS 531/3)
18 Sec. 3. Definitions. The following terms, whenever used or
19referred to in this Act, shall have the following meanings,
20except in such instances where the context may clearly
21indicate otherwise:
22 "Authority" means the Illinois Urban Development Authority
23created by this Act.
24 "Board" means the Illinois Urban Development Authority

SB2254- 636 -LRB102 15486 SMS 20849 b
1Board of Directors.
2 "Bonds" shall include bonds, notes, or other evidence of
3indebtedness.
4 "Commercial project" means any project, including but not
5limited to one or more buildings and other structures,
6improvements, machinery, and equipment whether or not on the
7same site or sites now existing or hereafter acquired,
8suitable for use by any retail or wholesale concern,
9distributorship, or agency, any cultural facilities of a
10for-profit or not-for-profit type including but not limited to
11educational, theatrical, recreational and entertainment,
12sports facilities, racetracks, stadiums, convention centers,
13exhibition halls, arenas, opera houses and theaters,
14waterfront improvements, swimming pools, boat storage,
15moorage, docking facilities, restaurants, coliseums, sports
16training facilities, parking facilities, terminals, hotels and
17motels, gymnasiums, medical facilities, and port facilities.
18 "Costs incurred in connection with the development,
19construction, acquisition, or improvement of a project" means
20the cost of purchase and construction of all lands and
21improvements in connection with a project and equipment and
22other property, rights, easements, and franchises acquired
23that are deemed necessary for such construction; financing
24charges; interest costs with respect to bonds, notes, and
25other evidences of indebtedness of the Authority prior to and
26during construction and for a period of 6 months thereafter;

SB2254- 637 -LRB102 15486 SMS 20849 b
1engineering and legal expenses; the costs of plans,
2specifications, surveys, and estimates of costs and other
3expenses necessary or incident to determining the feasibility
4or practicability of any project, together with such other
5expenses as may be necessary or incident to the financing,
6insuring, acquisition, and construction of a specific project
7and the placing of the same in operation.
8 "Develop" or "development" means to do one or more of the
9following: plan, design, develop, lease, acquire, install,
10construct, reconstruct, rehabilitate, extend, or expand.
11 "Financial aid" means the expenditure of Authority funds
12or funds provided by the Authority through the issuance of its
13revenue bonds, notes, or other evidences of indebtedness for
14the development, construction, acquisition, or improvement of
15a project.
16 "Governmental agency" means any federal, State or local
17governmental body, and any agency or instrumentality thereof,
18corporate or otherwise.
19 "Governor" means the Governor of the State of Illinois.
20 "Housing project" or "residential project" includes a
21specific work or improvement undertaken to provide dwelling
22accommodations, including the acquisition, construction,
23leasing, or rehabilitation of lands, buildings, and community
24facilities and in connection therewith to provide nonhousing
25facilities which are an integral part of a planned large-scale
26project or new community.

SB2254- 638 -LRB102 15486 SMS 20849 b
1 "Industrial project" means (1) a capital project,
2including one or more buildings and other structures,
3improvements, machinery, and equipment whether or not on the
4same site or sites now existing or hereafter acquired,
5suitable for use by any manufacturing, industrial, research,
6transportation, or commercial enterprise including but not
7limited to use as a factory, mill, processing plant, assembly
8plant, packaging plant, fabricating plant, office building,
9industrial distribution center, warehouse, repair, overhaul or
10service facility, freight terminal, research facility, test
11facility, railroad facility, solid waste and wastewater
12treatment and disposal sites and other pollution control
13facilities, resource or waste reduction, recovery, treatment
14and disposal facilities, and including also the sites thereof
15and other rights in land therefor whether improved or
16unimproved, site preparation and landscaping and all
17appurtenances and facilities incidental thereto such as
18utilities, access roads, railroad sidings, truck docking and
19similar facilities, parking facilities, dockage, wharfage,
20railroad roadbed, track, trestle, depot, terminal, switching,
21and signaling equipment or related equipment and other
22improvements necessary or convenient thereto; or (2) any land,
23buildings, machinery or equipment comprising an addition to or
24renovation, rehabilitation or improvement of any existing
25capital project.
26 "Lease agreement" means an agreement whereby a project

SB2254- 639 -LRB102 15486 SMS 20849 b
1acquired by the Authority by purchase, gift, or lease is
2leased to any person or corporation that will use or cause the
3project to be used as a project as defined in this Act upon
4terms providing for lease rental payments at least sufficient
5to pay when due all principal of and interest and premium, if
6any, on any bonds, notes or other evidences of indebtedness of
7the Authority issued with respect to such project, providing
8for the maintenance, insurance, and operation of the project
9on terms satisfactory to the Authority, and providing for
10disposition of the project upon termination of the lease term,
11including purchase options or abandonment of the premises,
12with such other terms as may be deemed desirable by the
13Authority. The Authority may, directly or indirectly, lease or
14otherwise transfer property the Authority owns to another and
15such leased property shall remain tax exempt.
16 "Loan agreement" means any agreement pursuant to which the
17Authority agrees to loan the proceeds of its bonds, notes, or
18other evidences of indebtedness issued with respect to a
19project to any person or corporation that will use or cause the
20project to be used as a project as defined in this Act upon
21terms providing for loan repayment installments at least
22sufficient to pay when due all principal and interest and
23premium, if any, on any bonds, notes, or other evidences of
24indebtedness of the Authority issued with respect to the
25project, providing for maintenance, insurance, and operation
26of the project on terms satisfactory to the Authority and

SB2254- 640 -LRB102 15486 SMS 20849 b
1providing for other matters as may be deemed advisable by the
2Authority.
3 "Maintain" or "maintenance" includes ordinary maintenance,
4repair, rehabilitation, capital maintenance, maintenance
5replacement, and any other categories of maintenance that may
6be designated by the local, regional, or State transportation
7agency.
8 "Municipal poverty rate" is the percentage of total
9population of the municipality having income levels below the
10poverty level as determined by the Authority based upon the
11most recent data released by the United States Census Bureau
12before the beginning of such calendar year.
13 "Occupational license" means a license issued by the
14Casino Gambling Division of the Department of Lottery and
15Gaming Illinois Gaming Board to a person or entity to perform
16an occupation which the Division Illinois Gaming Board has
17identified as requiring a license to engage in riverboat,
18dockside, or land-based gambling in Illinois.
19 "Operate" or "operation" means to do one or more of the
20following: maintain, improve, equip, modify, or otherwise
21operate.
22 "Person" means any natural person, firm, partnership,
23corporation, both domestic and foreign, company, association,
24or joint stock association and includes any trustee, receiver,
25assignee, or personal representative thereof.
26 "Project" means an industrial, housing, residential,

SB2254- 641 -LRB102 15486 SMS 20849 b
1commercial, transportation, or service project, or any
2combination thereof, provided that all uses shall fall within
3one of those categories. Any project, of any nature
4whatsoever, shall automatically include all site improvements
5and new construction involving sidewalks, sewers, solid waste
6and wastewater treatment and disposal sites and other
7pollution control facilities, resource or waste reduction,
8recovery, treatment and disposal facilities, parks, open
9spaces, wildlife sanctuaries, streets, highways, and runways.
10 "Revenue bond" means any bond issued by the Authority
11under the supervision of the Illinois Finance Authority, the
12principal and interest of which are payable solely from
13revenues or income derived from any project or activity of the
14Authority.
15 "Transportation facility" means any new or existing road,
16highway, toll highway, bridge, tunnel, intermodal facility,
17intercity or high-speed passenger rail, or other
18transportation facility or infrastructure, excluding airports.
19The term "transportation facility" may refer to one or more
20transportation facilities that are proposed to be developed or
21operated as part of a single transportation project.
22 "Transportation project" means one or more transportation
23improvement projects including, but not limited to, new or
24existing roads or highways, new or expanded intermodal
25projects, and new or expanded transit projects,
26transit-oriented development, intercity rail, and passenger

SB2254- 642 -LRB102 15486 SMS 20849 b
1rail. "Transportation project" does not include airport
2projects.
3(Source: P.A. 98-384, eff. 8-16-13.)
4 Section 195. The Joliet Regional Port District Act is
5amended by changing Section 5.1 as follows:
6 (70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
7 Sec. 5.1. Riverboat and casino gambling. Notwithstanding
8any other provision of this Act, the District may not regulate
9the operation, conduct, or navigation of any riverboat
10gambling casino licensed under the Illinois Gambling Act, and
11the District may not license, tax, or otherwise levy any
12assessment of any kind on any riverboat gambling casino
13licensed under the Illinois Gambling Act. The General Assembly
14declares that the powers to regulate the operation, conduct,
15and navigation of riverboat gambling casinos and to license,
16tax, and levy assessments upon riverboat gambling casinos are
17exclusive powers of the State of Illinois and the Department
18of Lottery and Gaming Illinois Gaming Board as provided in the
19Illinois Gambling Act.
20(Source: P.A. 101-31, eff. 6-28-19.)
21 Section 200. The Raffles and Poker Runs Act is amended by
22changing Section 1 as follows:

SB2254- 643 -LRB102 15486 SMS 20849 b
1 (230 ILCS 15/1) (from Ch. 85, par. 2301)
2 Sec. 1. Definitions. For the purposes of this Act the
3terms defined in this Section have the meanings given them.
4 "Key location" means:
5 (1) For a poker run, the location where the poker run
6 concludes and the prizes are awarded.
7 (2) For a raffle, the location where the winning
8 chances in the raffle are determined.
9 "Law enforcement agency" means an agency of this State or
10a unit of local government in this State that is vested by law
11or ordinance with the duty to maintain public order and to
12enforce criminal laws or ordinances.
13 "Net proceeds" means the gross receipts from the conduct
14of raffles, less reasonable sums expended for prizes, local
15license fees and other operating expenses incurred as a result
16of operating a raffle or poker run.
17 "Poker run" means a prize-awarding event organized by an
18organization licensed under this Act in which participants
19travel to multiple predetermined locations, including a key
20location, to play a randomized game based on an element of
21chance. "Poker run" includes dice runs, marble runs, or other
22events where the objective is to build the best hand or highest
23score by obtaining an item or playing a randomized game at each
24location.
25 "Raffle" means a form of lottery, as defined in subsection
26(b) of Section 28-2 of the Criminal Code of 2012, conducted by

SB2254- 644 -LRB102 15486 SMS 20849 b
1an organization licensed under this Act, in which:
2 (1) the player pays or agrees to pay something of
3 value for a chance, represented and differentiated by a
4 number or by a combination of numbers or by some other
5 medium, one or more of which chances is to be designated
6 the winning chance; and
7 (2) the winning chance is to be determined through a
8 drawing or by some other method based on an element of
9 chance by an act or set of acts on the part of persons
10 conducting or connected with the lottery, except that the
11 winning chance shall not be determined by the outcome of a
12 publicly exhibited sporting contest.
13 "Raffle" does not include any game designed to simulate:
14(1) gambling games as defined in the Illinois Riverboat
15Gambling Act, (2) any casino game approved for play by the
16Department of Lottery and Gaming Illinois Gaming Board, (3)
17any games provided by a video gaming terminal, as defined in
18the Video Gaming Act, or (4) a savings promotion raffle
19authorized under Section 5g of the Illinois Banking Act,
20Section 7008 of the Savings Bank Act, Section 42.7 of the
21Illinois Credit Union Act, Section 5136B of the National Bank
22Act, or Section 4 of the Home Owners' Loan Act.
23(Source: P.A. 101-109, eff. 7-19-19; revised 12-9-19.)
24 Section 205. The Smoke Free Illinois Act is amended by
25changing Section 10 as follows:

SB2254- 645 -LRB102 15486 SMS 20849 b
1 (410 ILCS 82/10)
2 Sec. 10. Definitions. In this Act:
3 "Bar" means an establishment that is devoted to the
4serving of alcoholic beverages for consumption by guests on
5the premises and that derives no more than 10% of its gross
6revenue from the sale of food consumed on the premises. "Bar"
7includes, but is not limited to, taverns, nightclubs, cocktail
8lounges, adult entertainment facilities, and cabarets.
9 "Department" means the Department of Public Health.
10 "Employee" means a person who is employed by an employer
11in consideration for direct or indirect monetary wages or
12profits or a person who volunteers his or her services for a
13non-profit entity.
14 "Employer" means a person, business, partnership,
15association, or corporation, including a municipal
16corporation, trust, or non-profit entity, that employs the
17services of one or more individual persons.
18 "Enclosed area" means all space between a floor and a
19ceiling that is enclosed or partially enclosed with (i) solid
20walls or windows, exclusive of doorways, or (ii) solid walls
21with partitions and no windows, exclusive of doorways, that
22extend from the floor to the ceiling, including, without
23limitation, lobbies and corridors.
24 "Enclosed or partially enclosed sports arena" means any
25sports pavilion, stadium, gymnasium, health spa, boxing arena,

SB2254- 646 -LRB102 15486 SMS 20849 b
1swimming pool, roller rink, ice rink, bowling alley, or other
2similar place where members of the general public assemble to
3engage in physical exercise or participate in athletic
4competitions or recreational activities or to witness sports,
5cultural, recreational, or other events.
6 "Gaming equipment or supplies" means gaming
7equipment/supplies as defined in the Department of Lottery and
8Gaming Illinois Gaming Board Rules of the Illinois
9Administrative Code.
10 "Gaming facility" means an establishment utilized
11primarily for the purposes of gaming and where gaming
12equipment or supplies are operated for the purposes of
13accruing business revenue.
14 "Healthcare facility" means an office or institution
15providing care or treatment of diseases, whether physical,
16mental, or emotional, or other medical, physiological, or
17psychological conditions, including, but not limited to,
18hospitals, rehabilitation hospitals, weight control clinics,
19nursing homes, homes for the aging or chronically ill,
20laboratories, and offices of surgeons, chiropractors, physical
21therapists, physicians, dentists, and all specialists within
22these professions. "Healthcare facility" includes all waiting
23rooms, hallways, private rooms, semiprivate rooms, and wards
24within healthcare facilities.
25 "Place of employment" means any area under the control of
26a public or private employer that employees are required to

SB2254- 647 -LRB102 15486 SMS 20849 b
1enter, leave, or pass through during the course of employment,
2including, but not limited to entrances and exits to places of
3employment, including a minimum distance, as set forth in
4Section 70 of this Act, of 15 feet from entrances, exits,
5windows that open, and ventilation intakes that serve an
6enclosed area where smoking is prohibited; offices and work
7areas; restrooms; conference and classrooms; break rooms and
8cafeterias; and other common areas. A private residence or
9home-based business, unless used to provide licensed child
10care, foster care, adult care, or other similar social service
11care on the premises, is not a "place of employment", nor are
12enclosed laboratories, not open to the public, in an
13accredited university or government facility where the
14activity of smoking is exclusively conducted for the purpose
15of medical or scientific health-related research. Rulemaking
16authority to implement this amendatory Act of the 95th General
17Assembly, if any, is conditioned on the rules being adopted in
18accordance with all provisions of the Illinois Administrative
19Procedure Act and all rules and procedures of the Joint
20Committee on Administrative Rules; any purported rule not so
21adopted, for whatever reason, is unauthorized.
22 "Private club" means a not-for-profit association that (1)
23has been in active and continuous existence for at least 3
24years prior to the effective date of this amendatory Act of the
2595th General Assembly, whether incorporated or not, (2) is the
26owner, lessee, or occupant of a building or portion thereof

SB2254- 648 -LRB102 15486 SMS 20849 b
1used exclusively for club purposes at all times, (3) is
2operated solely for a recreational, fraternal, social,
3patriotic, political, benevolent, or athletic purpose, but not
4for pecuniary gain, and (4) only sells alcoholic beverages
5incidental to its operation. For purposes of this definition,
6"private club" means an organization that is managed by a
7board of directors, executive committee, or similar body
8chosen by the members at an annual meeting, has established
9bylaws, a constitution, or both to govern its activities, and
10has been granted an exemption from the payment of federal
11income tax as a club under 26 U.S.C. 501.
12 "Private residence" means the part of a structure used as
13a dwelling, including, without limitation: a private home,
14townhouse, condominium, apartment, mobile home, vacation home,
15cabin, or cottage. For the purposes of this definition, a
16hotel, motel, inn, resort, lodge, bed and breakfast or other
17similar public accommodation, hospital, nursing home, or
18assisted living facility shall not be considered a private
19residence.
20 "Public place" means that portion of any building or
21vehicle used by and open to the public, regardless of whether
22the building or vehicle is owned in whole or in part by private
23persons or entities, the State of Illinois, or any other
24public entity and regardless of whether a fee is charged for
25admission, including a minimum distance, as set forth in
26Section 70 of this Act, of 15 feet from entrances, exits,

SB2254- 649 -LRB102 15486 SMS 20849 b
1windows that open, and ventilation intakes that serve an
2enclosed area where smoking is prohibited. A "public place"
3does not include a private residence unless the private
4residence is used to provide licensed child care, foster care,
5or other similar social service care on the premises. A
6"public place" includes, but is not limited to, hospitals,
7restaurants, retail stores, offices, commercial
8establishments, elevators, indoor theaters, libraries,
9museums, concert halls, public conveyances, educational
10facilities, nursing homes, auditoriums, enclosed or partially
11enclosed sports arenas, meeting rooms, schools, exhibition
12halls, convention facilities, polling places, private clubs,
13gaming facilities, all government owned vehicles and
14facilities, including buildings and vehicles owned, leased, or
15operated by the State or State subcontract, healthcare
16facilities or clinics, enclosed shopping centers, retail
17service establishments, financial institutions, educational
18facilities, ticket areas, public hearing facilities, public
19restrooms, waiting areas, lobbies, bars, taverns, bowling
20alleys, skating rinks, reception areas, and no less than 75%
21of the sleeping quarters within a hotel, motel, resort, inn,
22lodge, bed and breakfast, or other similar public
23accommodation that are rented to guests, but excludes private
24residences.
25 "Restaurant" means (i) an eating establishment, including,
26but not limited to, coffee shops, cafeterias, sandwich stands,

SB2254- 650 -LRB102 15486 SMS 20849 b
1and private and public school cafeterias, that gives or offers
2for sale food to the public, guests, or employees, and (ii) a
3kitchen or catering facility in which food is prepared on the
4premises for serving elsewhere. "Restaurant" includes a bar
5area within the restaurant.
6 "Retail tobacco store" means a retail establishment that
7derives more than 80% of its gross revenue from the sale of
8loose tobacco, plants, or herbs and cigars, cigarettes, pipes,
9and other smoking devices for burning tobacco and related
10smoking accessories and in which the sale of other products is
11merely incidental. "Retail tobacco store" includes an enclosed
12workplace that manufactures, imports, or distributes tobacco
13or tobacco products, when, as a necessary and integral part of
14the process of making, manufacturing, importing, or
15distributing a tobacco product for the eventual retail sale of
16that tobacco or tobacco product, tobacco is heated, burned, or
17smoked, or a lighted tobacco product is tested, provided that
18the involved business entity: (1) maintains a specially
19designated area or areas within the workplace for the purpose
20of the heating, burning, smoking, or lighting activities, and
21does not create a facility that permits smoking throughout;
22(2) satisfies the 80% requirement related to gross sales; and
23(3) delivers tobacco products to consumers, retail
24establishments, or other wholesale establishments as part of
25its business. "Retail tobacco store" does not include a
26tobacco department or section of a larger commercial

SB2254- 651 -LRB102 15486 SMS 20849 b
1establishment or any establishment with any type of liquor,
2food, or restaurant license. Rulemaking authority to implement
3this amendatory Act of the 95th General Assembly, if any, is
4conditioned on the rules being adopted in accordance with all
5provisions of the Illinois Administrative Procedure Act and
6all rules and procedures of the Joint Committee on
7Administrative Rules; any purported rule not so adopted, for
8whatever reason, is unauthorized.
9 "Smoke" or "smoking" means the carrying, smoking, burning,
10inhaling, or exhaling of any kind of lighted pipe, cigar,
11cigarette, hookah, weed, herbs, or any other lighted smoking
12equipment. "Smoke" or "smoking" does not include smoking that
13is associated with a native recognized religious ceremony,
14ritual, or activity by American Indians that is in accordance
15with the federal American Indian Religious Freedom Act, 42
16U.S.C. 1996 and 1996a.
17 "State agency" has the meaning formerly ascribed to it in
18subsection (a) of Section 3 of the Illinois Purchasing Act
19(now repealed).
20 "Unit of local government" has the meaning ascribed to it
21in Section 1 of Article VII of the Illinois Constitution of
221970.
23(Source: P.A. 95-17, eff. 1-1-08; 95-1029, eff. 2-4-09;
2496-797, eff. 1-1-10.)
25 Section 210. The Illinois Equine Infectious Anemia Control

SB2254- 652 -LRB102 15486 SMS 20849 b
1Act is amended by changing Section 5 as follows:
2 (510 ILCS 65/5) (from Ch. 8, par. 955)
3 Sec. 5. Quarantine and branding of reactors. In the event
4an Illinois owner voluntarily elects to have his equidae
5tested and a reactor is found, the reactor shall be (a)
6quarantined until death or until released by a written notice
7from the Department and (b) permanently identified with a
8freezemarking brand which shall be applied by an employee of
9the Department, a veterinarian in the employ of the Division
10of Horse Racing of the Department of Lottery and Gaming
11Illinois Racing Board, or an employee of the Animal and Plant
12Health Inspection Service of the United States Department of
13Agriculture or any successor agency. The freezemarking brand
14shall be not less than 2 inches in height, shall be applied to
15the left side of the neck of the reactor, and the identifying
16mark shall be "33" followed by the letter "A" and a number
17designated by the Department to indicate individual
18identification.
19 Any animal under 12 months of age which reacts positively
20to an official test for EIA shall be quarantined and retested
21at 12 months of age. If positive at that time, it shall be
22subject to permanent identification as a reactor and continue
23under quarantine. Foals being nursed by reactor dams shall be
24quarantined until they are weaned from their dams and have a
25negative official test for EIA not less than 60 days following

SB2254- 653 -LRB102 15486 SMS 20849 b
1their weaning.
2(Source: P.A. 86-223.)
3 Section 215. The Pay-Per-Call Services Consumer Protection
4Act is amended by changing Section 10 as follows:
5 (815 ILCS 520/10) (from Ch. 134, par. 160)
6 Sec. 10. Rules applicable to the pay-per-call industry.
7 (a) Each sponsor engaged in furnishing any live, recorded,
8or recorded-interactive audio text information services
9including, but not limited to, "900" numbers and "976" numbers
10shall utilize advertising that accurately describes the
11message content, terms, conditions, and price of the offered
12service in a clear and understandable manner in all print,
13broadcast, or telephone advertising and announcements
14promoting their offers including:
15 (1) The charges for the offer per call or per minute.
16 (2) Any geographic, time of day, or other limitations
17 on the availability of the offer.
18 (3) A requirement that callers under 12 years of age
19 must request parental or adult guardian permission before
20 calling to hear the offer.
21 (4) Display the charges in broadcast advertising with
22 the telephone numbers and a voice announcement of the
23 charges during the course of the commercials.
24 (5) Repeated voice announcements of these charges at

SB2254- 654 -LRB102 15486 SMS 20849 b
1 regular intervals for commercials in excess of 2 minutes.
2 (6) Charges for all subsequent calls if the program
3 refers to and requires another pay-per-call.
4 (b) The sponsor shall provide a minimum of 12 seconds of
5delayed timing for information charges and price disclosure
6message. If the delayed timing period is exceeded, a consumer
7shall be billed from the time of the initial connection, and
8transport charges shall be billed to the information provider
9from the time of the initial connection. If the consumer
10disconnects the call within the delayed timing period, no
11information charge shall be billed to the caller. During the
12delayed timing period, the sponsor shall inform the consumer
13of all of the following:
14 (1) An accurate description of the service that will
15 be provided to the caller.
16 (2) An accurate summation of the cost of the service
17 including, but not limited to, all of the following:
18 (A) The initial flat rate charge, if any.
19 (B) The per minute charge, if any.
20 (C) The maximum per call charge.
21 (3) That, if the caller disconnects the call within
22 the delayed timing period, the consumer will not be
23 charged for the call.
24 (4) Before the end of the delayed timing period, that
25 the billing will commence after a stated period of not
26 less than 3 seconds.

SB2254- 655 -LRB102 15486 SMS 20849 b
1 (c) This information shall be provided at the beginning of
2every call and at least 3 seconds shall be allowed at the end
3of the message within the delayed timing period for the
4consumer to hang up without being charged. An introductory
5message, however, is not required if the cost of the call is $1
6or less per minute or the total potential cost of the call is
7$5 or less, or if the call is related to polling services,
8asynchronous technology or political fundraising.
9 (d) Games of chance must, at a minimum, meet the following
10criteria:
11 (1) The game must be operated as a means of promoting
12 goods or services other than the game itself.
13 (2) A no-purchase alternative method of participating
14 must be available that provides all entrants, including
15 non-purchasers and pay-per-call users, with an equal
16 chance of winning.
17 (3) The prize may not be financed from the proceeds of
18 the program sponsor's billed charges.
19 (4) The prize amount or value is not dependent on the
20 number of entries received.
21 (e) Game programs billed as pay-per-call shall include in
22the official rules and, in all broadcasts and print
23advertising of the game, a complete statement that includes
24all of the following:
25 (1) Declares no purchase is necessary to play for free
26 or that an alternate means of entry is provided.

SB2254- 656 -LRB102 15486 SMS 20849 b
1 (2) Lists the sponsor's name, starting and closing
2 dates, any age restrictions for the participants, and
3 availability of complete official rules.
4 (3) Provides callers with sufficient information to
5 participate fully in the game.
6 (f) The provisions of subsections (d) and (e) of this
7Section do not apply to any game of chance sponsored directly
8or indirectly by the Department of Lottery and Gaming the
9Lottery.
10(Source: P.A. 87-452.)

SB2254- 657 -LRB102 15486 SMS 20849 b
1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 20 ILCS 5/5-15was 20 ILCS 5/3
5 20 ILCS 5/5-20was 20 ILCS 5/4
6 20 ILCS 5/5-372 rep.
7 20 ILCS 1605/3from Ch. 120, par. 1153
8 20 ILCS 1605/4from Ch. 120, par. 1154
9 20 ILCS 1605/5from Ch. 120, par. 1155
10 20 ILCS 1605/5.1
11 20 ILCS 1605/7.1from Ch. 120, par. 1157.1
12 20 ILCS 1605/7.2from Ch. 120, par. 1157.2
13 20 ILCS 1605/7.3from Ch. 120, par. 1157.3
14 20 ILCS 1605/7.4from Ch. 120, par. 1157.4
15 20 ILCS 1605/7.5from Ch. 120, par. 1157.5
16 20 ILCS 1605/7.8from Ch. 120, par. 1157.8
17 20 ILCS 1605/7.8afrom Ch. 120, par. 1157.8a
18 20 ILCS 1605/7.11from Ch. 120, par. 1157.11
19 20 ILCS 1605/7.12
20 20 ILCS 1605/7.15
21 20 ILCS 1605/7.16
22 20 ILCS 1605/8from Ch. 120, par. 1158
23 20 ILCS 1605/9from Ch. 120, par. 1159
24 20 ILCS 1605/9.1
25 20 ILCS 1605/10from Ch. 120, par. 1160

SB2254- 658 -LRB102 15486 SMS 20849 b
1 20 ILCS 1605/10.1from Ch. 120, par. 1160.1
2 20 ILCS 1605/10.1afrom Ch. 120, par. 1160.1a
3 20 ILCS 1605/10.2from Ch. 120, par. 1160.2
4 20 ILCS 1605/10.3from Ch. 120, par. 1160.3
5 20 ILCS 1605/10.4from Ch. 120, par. 1160.4
6 20 ILCS 1605/10.5from Ch. 120, par. 1160.5
7 20 ILCS 1605/10.6from Ch. 120, par. 1160.6
8 20 ILCS 1605/10.7
9 20 ILCS 1605/10.8
10 20 ILCS 1605/12from Ch. 120, par. 1162
11 20 ILCS 1605/13from Ch. 120, par. 1163
12 20 ILCS 1605/13.1
13 20 ILCS 1605/14from Ch. 120, par. 1164
14 20 ILCS 1605/14.3
15 20 ILCS 1605/14.4
16 20 ILCS 1605/15from Ch. 120, par. 1165
17 20 ILCS 1605/19from Ch. 120, par. 1169
18 20 ILCS 1605/20.1from Ch. 120, par. 1170.1
19 20 ILCS 1605/21from Ch. 120, par. 1171
20 20 ILCS 1605/21.3from Ch. 120, par. 1171.3
21 20 ILCS 1605/21.5
22 20 ILCS 1605/21.6
23 20 ILCS 1605/21.7
24 20 ILCS 1605/21.8
25 20 ILCS 1605/21.9
26 20 ILCS 1605/21.10

SB2254- 659 -LRB102 15486 SMS 20849 b
1 20 ILCS 1605/21.11
2 20 ILCS 1605/21.12
3 20 ILCS 1605/21.13
4 20 ILCS 1605/24from Ch. 120, par. 1174
5 20 ILCS 1605/25from Ch. 120, par. 1175
6 20 ILCS 1605/6 rep.
7 20 ILCS 1605/7.6 rep.
8 230 ILCS 5/2from Ch. 8, par. 37-2
9 230 ILCS 5/2.5
10 230 ILCS 5/3.01from Ch. 8, par. 37-3.01
11 230 ILCS 5/3.04from Ch. 8, par. 37-3.04
12 230 ILCS 5/3.07from Ch. 8, par. 37-3.07
13 230 ILCS 5/3.075
14 230 ILCS 5/3.080
15 230 ILCS 5/3.11from Ch. 8, par. 37-3.11
16 230 ILCS 5/3.12from Ch. 8, par. 37-3.12
17 230 ILCS 5/3.13from Ch. 8, par. 37-3.13
18 230 ILCS 5/3.17from Ch. 8, par. 37-3.17
19 230 ILCS 5/3.18from Ch. 8, par. 37-3.18
20 230 ILCS 5/3.19from Ch. 8, par. 37-3.19
21 230 ILCS 5/3.29
22 230 ILCS 5/3.35
23 230 ILCS 5/4from Ch. 8, par. 37-4
24 230 ILCS 5/9from Ch. 8, par. 37-9
25 230 ILCS 5/10from Ch. 8, par. 37-10
26 230 ILCS 5/12from Ch. 8, par. 37-12

SB2254- 660 -LRB102 15486 SMS 20849 b
1 230 ILCS 5/12.1from Ch. 8, par. 37-12.1
2 230 ILCS 5/12.2
3 230 ILCS 5/13from Ch. 8, par. 37-13
4 230 ILCS 5/14from Ch. 8, par. 37-14
5 230 ILCS 5/14afrom Ch. 8, par. 37-14a
6 230 ILCS 5/15from Ch. 8, par. 37-15
7 230 ILCS 5/15.1from Ch. 8, par. 37-15.1
8 230 ILCS 5/15.2from Ch. 8, par. 37-15.2
9 230 ILCS 5/15.3from Ch. 8, par. 37-15.3
10 230 ILCS 5/15.4from Ch. 8, par. 37-15.4
11 230 ILCS 5/15.5
12 230 ILCS 5/16from Ch. 8, par. 37-16
13 230 ILCS 5/18from Ch. 8, par. 37-18
14 230 ILCS 5/19from Ch. 8, par. 37-19
15 230 ILCS 5/19.5
16 230 ILCS 5/20from Ch. 8, par. 37-20
17 230 ILCS 5/20.1
18 230 ILCS 5/20.5
19 230 ILCS 5/21from Ch. 8, par. 37-21
20 230 ILCS 5/23from Ch. 8, par. 37-23
21 230 ILCS 5/24from Ch. 8, par. 37-24
22 230 ILCS 5/25from Ch. 8, par. 37-25
23 230 ILCS 5/26from Ch. 8, par. 37-26
24 230 ILCS 5/26.9
25 230 ILCS 5/27from Ch. 8, par. 37-27
26 230 ILCS 5/27.2

SB2254- 661 -LRB102 15486 SMS 20849 b
1 230 ILCS 5/28from Ch. 8, par. 37-28
2 230 ILCS 5/28.1
3 230 ILCS 5/30from Ch. 8, par. 37-30
4 230 ILCS 5/30.5
5 230 ILCS 5/31from Ch. 8, par. 37-31
6 230 ILCS 5/31.1from Ch. 8, par. 37-31.1
7 230 ILCS 5/32from Ch. 8, par. 37-32
8 230 ILCS 5/32.1
9 230 ILCS 5/34.3
10 230 ILCS 5/35from Ch. 8, par. 37-35
11 230 ILCS 5/36from Ch. 8, par. 37-36
12 230 ILCS 5/36afrom Ch. 8, par. 37-36a
13 230 ILCS 5/37from Ch. 8, par. 37-37
14 230 ILCS 5/38from Ch. 8, par. 37-38
15 230 ILCS 5/39from Ch. 8, par. 37-39
16 230 ILCS 5/40from Ch. 8, par. 37-40
17 230 ILCS 5/45from Ch. 8, par. 37-45
18 230 ILCS 5/46from Ch. 8, par. 37-46
19 230 ILCS 5/49from Ch. 8, par. 37-49
20 230 ILCS 5/51from Ch. 8, par. 37-51
21 230 ILCS 5/54.75
22 230 ILCS 5/55
23 230 ILCS 5/56
24 230 ILCS 5/5 rep.
25 230 ILCS 5/6 rep.
26 230 ILCS 5/7 rep.

SB2254- 662 -LRB102 15486 SMS 20849 b
1 230 ILCS 5/8 rep.
2 230 ILCS 10/2from Ch. 120, par. 2402
3 230 ILCS 10/4from Ch. 120, par. 2404
4 230 ILCS 10/5from Ch. 120, par. 2405
5 230 ILCS 10/5.1from Ch. 120, par. 2405.1
6 230 ILCS 10/5.2
7 230 ILCS 10/5.3
8 230 ILCS 10/6from Ch. 120, par. 2406
9 230 ILCS 10/7from Ch. 120, par. 2407
10 230 ILCS 10/7.1
11 230 ILCS 10/7.3
12 230 ILCS 10/7.4
13 230 ILCS 10/7.5
14 230 ILCS 10/7.6
15 230 ILCS 10/7.7
16 230 ILCS 10/7.10
17 230 ILCS 10/7.11
18 230 ILCS 10/7.12
19 230 ILCS 10/8from Ch. 120, par. 2408
20 230 ILCS 10/9from Ch. 120, par. 2409
21 230 ILCS 10/10from Ch. 120, par. 2410
22 230 ILCS 10/11from Ch. 120, par. 2411
23 230 ILCS 10/11.2
24 230 ILCS 10/12from Ch. 120, par. 2412
25 230 ILCS 10/13from Ch. 120, par. 2413
26 230 ILCS 10/13.05

SB2254- 663 -LRB102 15486 SMS 20849 b
1 230 ILCS 10/14from Ch. 120, par. 2414
2 230 ILCS 10/15from Ch. 120, par. 2415
3 230 ILCS 10/16from Ch. 120, par. 2416
4 230 ILCS 10/17from Ch. 120, par. 2417
5 230 ILCS 10/17.1from Ch. 120, par. 2417.1
6 230 ILCS 10/18from Ch. 120, par. 2418
7 230 ILCS 10/18.1
8 230 ILCS 10/22from Ch. 120, par. 2422
9 230 ILCS 40/5
10 230 ILCS 40/15
11 230 ILCS 40/20
12 230 ILCS 40/25
13 230 ILCS 40/26
14 230 ILCS 40/35
15 230 ILCS 40/43
16 230 ILCS 40/45
17 230 ILCS 40/50
18 230 ILCS 40/57
19 230 ILCS 40/58
20 230 ILCS 40/60
21 230 ILCS 40/78
22 230 ILCS 40/79
23 230 ILCS 40/79.5
24 230 ILCS 40/80
25 230 ILCS 45/25-10
26 230 ILCS 45/25-15

SB2254- 664 -LRB102 15486 SMS 20849 b
1 230 ILCS 45/25-20
2 230 ILCS 45/25-25
3 230 ILCS 45/25-30
4 230 ILCS 45/25-35
5 230 ILCS 45/25-40
6 230 ILCS 45/25-45
7 230 ILCS 45/25-50
8 230 ILCS 45/25-55
9 230 ILCS 45/25-60
10 230 ILCS 45/25-70
11 230 ILCS 45/25-75
12 230 ILCS 45/25-85
13 230 ILCS 45/25-90
14 230 ILCS 45/25-100
15 230 ILCS 45/25-105
16 230 ILCS 50/30-5
17 230 ILCS 50/30-10
18 230 ILCS 50/30-20
19 230 ILCS 50/30-25
20 5 ILCS 120/2from Ch. 102, par. 42
21 5 ILCS 315/3from Ch. 48, par. 1603
22 5 ILCS 430/5-45
23 5 ILCS 430/5-50
24 15 ILCS 15/3.1
25 20 ILCS 2310/2310-348
26 20 ILCS 2505/2505-305was 20 ILCS 2505/39b15.1

SB2254- 665 -LRB102 15486 SMS 20849 b