093_HB1065sam001

 










                                     LRB093 05454 LRD 17090 a

 1                    AMENDMENT TO HOUSE BILL 1065

 2        AMENDMENT NO.     .  Amend House Bill 1065  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to gaming."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1. This Act shall be known and may be  cited  as
 8    the "Illinois Urban Development Authority Act".

 9        Section  2.  The  General  Assembly hereby determines and
10    declares:
11        (a)  That the economic burdens resulting from involuntary
12    unemployment fall in part upon  the  State  in  the  form  of
13    increased  need  for  public assistance, reduced tax revenues
14    and increased  resources  devoted  to  crime  prevention  and
15    incarceration  and  that the unemployed worker and his family
16    may migrate outside the State to find work and such migration
17    will reduced tax revenues for local governments and the State
18    of Illinois, thereby endangering their financial  ability  to
19    support  necessary  governmental services for their remaining
20    inhabitants.
21        (b)  That the State has a responsibility to help create a
 
                            -2-      LRB093 05454 LRD 17090 a
 1    favorable climate for new and improved job opportunities  for
 2    all  of  its citizens, especially in areas with high economic
 3    distress, by encouraging the development  of  commercial  and
 4    service  businesses  and  industrial and manufacturing plants
 5    and creating job opportunities.
 6        (c)  That the State has a responsibility to increase  and
 7    improve    post-release    employment    opportunities    for
 8    ex-offenders and reduce recidivism rates through the combined
 9    resources   and   expertise   of   providers   of   workforce
10    development, supportive services and private enterprises.
11        (d)  That  a  lack of decent housing contributes to urban
12    blight, crime, anti-social behavior, disease, a  higher  need
13    for public assistance, reduced tax revenues and the migration
14    of  workers  and their families away from areas which fail to
15    offer adequate, decent, affordable housing.
16        (e)  That  decent,  affordable  housing  is  a  necessary
17    ingredient  of  life,  affording  each  citizen  basic  human
18    dignity, a  sense  of  self  worth,  confidence  and  a  firm
19    foundation upon which to build a family and educate children.
20        (f)  That  in  order  to  foster  civic  and neighborhood
21    pride, citizens require access to  educational  institutions,
22    recreation,  parks and open spaces, entertainment and sports,
23    a reliable transportation network,  cultural  facilities  and
24    theaters.
25        It  is  hereby  declared to be the policy of the State of
26    Illinois to promote industrial, commercial,  and  residential
27    jobs,   service,   transportation   and  facilities,  thereby
28    reducing the evils attendant  upon  unemployment,  crime  and
29    recidivism  and enhancing the public health,  safety, morals,
30    happiness and general welfare of this State, specifically  by
31    making  available    through  the  Illinois Urban Development
32    Authority,  hereinafter   created,   funds   for   industrial
33    projects, commercial projects, housing projects and projects,
34    as  terms  hereinafter  defined,  to  a   municipality with a
 
                            -3-      LRB093 05454 LRD 17090 a
 1    municipal poverty rate greater  than  3%  in  excess  of  the
 2    statewide average.

 3        Section 3. The following terms, whenever used or referred
 4    to in this Act, shall have the  following meanings, except in
 5    such   instances  where  the  context  may  clearly  indicate
 6    otherwise:
 7        (a)  "Authority" means  the  Illinois  Urban  Development
 8    Authority created by this Act.
 9        (b)  "Governmental  agency"  means  any federal, State or
10    local governmental body, and any  agency  or  instrumentality
11    thereof, corporate or otherwise.
12        (c)  "Person"    means    any   natural   person,   firm,
13    partnership, corporation, both domestic and foreign, company,
14    association or  joint  stock  association  and  includes  any
15    trustee,   receiver,   assignee  or  personal  representative
16    thereof.
17        (d)  "Revenue  bond"  means  any  bond  issued   by   the
18    Authority,  the  principal  and  interest of which is payable
19    solely from revenues or income derived from  any  project  or
20    activity of the Authority.
21        (e)  "Board"   means   the   Illinois  Urban  Development
22    Authority Board of Directors.
23        (f)  "Governor"  means  the  Governor  of  the  State  of
24    Illinois.
25        (g)  "City" means any city, village, incorporated town or
26    township.
27        (h)  "Industrial project" means (1)  a  capital  project,
28    including   one  or  more  buildings  and  other  structures,
29    improvements, machinery and equipment whether or not  on  the
30    same  site  or  sites  now  existing  or  hereafter acquired,
31    suitable for use by any manufacturing, industrial,  research,
32    transportation  or  commercial  enterprise, including but not
33    limited to use as a factory, mill, processing plant, assembly
 
                            -4-      LRB093 05454 LRD 17090 a
 1    plant, packaging plant, fabricating plant,  office  building,
 2    industrial  distribution  center, warehouse, repair, overhaul
 3    or service facility,  freight  terminal,  research  facility,
 4    test  facility, railroad facility, solid waste and wastewater
 5    treatment  and  disposal  site  or  other  pollution  control
 6    facility, or resource or waste reduction, recovery, treatment
 7    and disposal facility, and including also the  sites  thereof
 8    and  other  rights  in  land  therefor  whether  improved  or
 9    unimproved,   site   preparation   and  landscaping  and  all
10    appurtenances  and  facilities  incidental  thereto  such  as
11    utilities, access roads, railroad sidings, truck docking  and
12    similar  facilities,  parking  facilities, dockage, wharfage,
13    railroad roadbed, track, trestle, depot, terminal,  switching
14    and  signaling  equipment  or  related  equipment  and  other
15    improvements  necessary  or  convenient  thereto;  or (2) any
16    land,  buildings,  machinery  or  equipment   comprising   an
17    addition  to  or renovation, rehabilitation or improvement of
18    any existing capital project.
19        (i)  "Housing project" or "residential project"  includes
20    a specific work or improvement undertaken to provide dwelling
21    accommodations,   including  the  acquisition,  construction,
22    leasing or rehabilitation of lands, buildings  and  community
23    facilities  and in connection therewith to provide nonhousing
24    facilities  which  are  an  integral  part   of   a   planned
25    large-scale project or new community.
26        (j)  "Commercial  project"  means  any project, including
27    but  not  limited  to  one  or  more  buildings   and   other
28    structures,  improvements, machinery and equipment whether or
29    not on the same site  or  sites  now  existing  or  hereafter
30    acquired,  suitable  for  use  by  any  retail  or  wholesale
31    concern,  distributorship  or agency, any cultural facilities
32    of a for-profit or not-for-profit  type,  including  but  not
33    limited   to   educational,   theatrical,  recreational,  and
34    entertainment,  sports  facilities,   racetracks,   stadiums,
 
                            -5-      LRB093 05454 LRD 17090 a
 1    convention  centers,  exhibition  halls, arenas, opera houses
 2    and theaters, waterfront improvements, swimming  pools,  boat
 3    storage, moorage, docking facilities, restaurants, coliseums,
 4    sports  training  facilities,  parking facilities, terminals,
 5    hotels and motels, gymnasiums, medical  facilities  and  port
 6    facilities.
 7        (k)  "Project" means an industrial, housing, residential,
 8    commercial  or  service  project  or  any combination thereof
 9    provided  that  all  uses  shall  fall  within  one  of   the
10    categories  described  above.  Any  project,  of  any  nature
11    whatsoever, shall automatically include all site improvements
12    and new construction involving sidewalks, sewers, solid waste
13    and   wastewater  treatment  and  disposal  sites  and  other
14    pollution control facilities, resource  or  waste  reduction,
15    recovery,  treatment  and  disposal  facilities,  parks, open
16    spaces, wildlife sanctuaries, streets, highways and runways.
17        (l)  "Lease agreement" shall mean an agreement whereby  a
18    project  acquired by the Authority by purchase, gift or lease
19    is leased to any person or  corporation  which  will  use  or
20    cause  the  project  to  be  used  as a project as heretofore
21    defined upon terms providing for  lease  rental  payments  at
22    least  sufficient  to  pay  when  due  all  principal  of and
23    interest and premium, if any, on any bonds,  notes  or  other
24    evidences  of  indebtedness  of  the  Authority  issued  with
25    respect  to  such  project,  providing  for  the maintenance,
26    insurance and operation of the project on terms  satisfactory
27    to the Authority and providing for disposition of the project
28    upon  termination  of  the  lease  term,  including  purchase
29    options or abandonment of the premises, with such other terms
30    as  may  be  deemed desirable by the Authority. The Authority
31    may, directly or  indirectly,  lease  or  otherwise  transfer
32    property  the  Authority  owns  to  another  and  such leased
33    property shall remain tax exempt.
34        (m)  "Loan agreement" means  any  agreement  pursuant  to
 
                            -6-      LRB093 05454 LRD 17090 a
 1    which the Authority agrees to loan the proceeds of its bonds,
 2    notes  or other evidences of indebtedness issued with respect
 3    to a project to any person or corporation which will  use  or
 4    cause  the  project  to  be  used  as a project as heretofore
 5    defined upon terms providing for loan repayment  installments
 6    at  least  sufficient  to  pay  when due all principal of and
 7    interest and premium, if any, on any bonds,  notes  or  other
 8    evidences  of  indebtedness  of  the  Authority  issued  with
 9    respect  to the project, providing for maintenance, insurance
10    and operation of the project on  terms  satisfactory  to  the
11    Authority  and  providing  for other matters as may be deemed
12    advisable by the Authority.
13        (n)  "Financial aid" means the expenditure  of  Authority
14    funds or funds provided by the Authority through the issuance
15    of   its   revenue   bonds,   notes  or  other  evidences  of
16    indebtedness for the development,  construction,  acquisition
17    or improvement of a project.
18        (o)  "Costs  incurred in connection with the development,
19    construction, acquisition or  improvement of a project" means
20    the following: the cost of purchase and construction  of  all
21    lands  and improvements in connection therewith and equipment
22    and  other  property,  rights,    easements  and   franchises
23    acquired  which  are  deemed necessary for such construction;
24    financing  charges; interest costs  with  respect  to  bonds,
25    notes  and  other evidences of indebtedness of the  Authority
26    prior to and during construction and for a period of 6 months
27    thereafter;  engineering and legal  expenses;  the  costs  of
28    plans,  specifications,  surveys  and estimates of  costs and
29    other expenses  necessary  or  incident  to  determining  the
30    feasibility  or practicability  of any project, together with
31    such other expenses as may be necessary or  incident  to  the
32    financing,   insuring,  acquisition  and  construction  of  a
33    specific project and the placing of the same  in operation.
34        (p)  The term "bond"  or  "bonds"  shall  include  bonds,
 
                            -7-      LRB093 05454 LRD 17090 a
 1    notes or other evidence of indebtedness.
 2        (q)  "Occupational license" means a license issued by the
 3    Illinois Gaming Board to a person or  entity  to  perform  an
 4    occupation  which the Illinois Gaming Board has identified as
 5    requiring a license to  engage  in  riverboat,  dockside,  or
 6    land-based gambling in Illinois.
 7        (r)  "Municipal  poverty rate" is the percentage of total
 8    population of such municipality having  income  levels  below
 9    the  poverty  level as determined by the Authority based upon
10    the most recent data released by  the  United  States  Census
11    Bureau before the beginning of such calendar year.

12        Section   4.   There   is   hereby  created  a  political
13    subdivision, body politic and corporate by the name and style
14    of Illinois Urban Development Authority. The exercise by  the
15    Authority  of  the  powers  conferred  by  law  shall  be  an
16    essential  public  function.  The  governing  powers  of  the
17    Authority shall be vested in a body consisting of 11 members,
18    which  are  the  Director of the Illinois Development Finance
19    Authority, the Director of the Illinois  Housing  Development
20    Authority,  2  members  appointed by the Mayor of the City of
21    Chicago, 1 member appointed by the President of Cook  County,
22    3  members  appointed  by the Governor who are residents of a
23    municipality, other than a  municipality  with  a  population
24    greater  than 1,000,000, whose municipal poverty rate is more
25    than 3% in excess of the statewide  average,  and  3  members
26    appointed  by the Governor that have an expertise, skill, and
27    experience in labor relations  or  that  have  an  expertise,
28    skill,  and experience operating a business that is certified
29    by  the  State  of  Illinois  as  a  Disadvantaged   Business
30    Enterprise,  Minority  Business  Enterprise or Women Business
31    Enterprise.
32        Six members shall constitute a quorum.  However,  when  a
33    quorum  of  members of the Authority is physically present at
 
                            -8-      LRB093 05454 LRD 17090 a
 1    the meeting site, other Authority members may participate  in
 2    and  act  at  any  meeting  through  the  use of a conference
 3    telephone or other communications equipment by means of which
 4    all persons participating in the meeting can hear each other.
 5    Participation in such meeting shall constitute attendance and
 6    presence in person at the meeting of the person or persons so
 7    participating. The Chairman of the Authority shall be elected
 8    by the Authority. All  board  members  shall  be  persons  of
 9    recognized  ability  and  experience  in  one  or more of the
10    following  areas:  economic  development,  finance,  banking,
11    industrial  development,  small  business  management,   real
12    estate  development,  community development, venture finance,
13    construction, and labor relations.
14        The terms of all members of the Authority shall begin  30
15    days  after  the  effective  date of this Act. Other than the
16    Director of the Illinois Housing  Development  Authority  and
17    the  Director  of the Illinois Finance Development Authority,
18    of the other 9 members appointed  pursuant  to  this  Act,  3
19    shall  serve  until the third Monday in January 2004, 3 shall
20    serve until the third Monday in January  2005,  and  3  shall
21    serve  until  the  third  Monday  in  January 2006. All board
22    members shall hold office for a term of 4  years,  commencing
23    the  third Monday in January of the year in which their terms
24    commence, except in case of an appointment to fill a vacancy.
25    In case of vacancy in the office when the Senate  is  not  in
26    session,  the Governor may make a temporary appointment until
27    the next meeting of the Senate when he or she shall  nominate
28    such  person to fill such office, and any person so nominated
29    who is confirmed by the Senate shall hold his or  her  office
30    during  the  remainder  of  the  term  and  until  his or her
31    successor shall be appointed and qualified. If the Senate  is
32    not  in session, the Governor may make temporary appointments
33    in the case of vacancies.
34        Members  of  the  Authority  shall  not  be  entitled  to
 
                            -9-      LRB093 05454 LRD 17090 a
 1    compensation for their services  as  members,  but  shall  be
 2    entitled to reimbursement for all necessary expenses incurred
 3    in  connection  with  the  performance  of  their  duties  as
 4    members.  The Governor may remove any member of the Authority
 5    in case of incompetency, neglect of duty, or  malfeasance  in
 6    office,  after service on him or her of a copy of the written
 7    charges against him or her and an opportunity to be  publicly
 8    heard  in person or by counsel in his or her own defense upon
 9    not less than 10 days notice.
10        The members of the Authority shall appoint  an  Executive
11    Director  who shall be a person knowledgeable in the areas of
12    financial  markets  and  instruments  and  the  financing  of
13    business enterprises, to hold office during the  pleasure  of
14    the  members.  The  Executive  Director  shall  be  the chief
15    administrative and operational officer of the  Authority  and
16    shall  direct  and  supervise  its administrative affairs and
17    general management and perform such other duties  as  may  be
18    prescribed from time to time by the members and shall receive
19    compensation  fixed  by the Authority. The Executive Director
20    or  any  committee  of  the  members  may  carry   out   such
21    responsibilities  of the members as the members by resolution
22    may  delegate.  The  Executive  Director  shall  attend   all
23    meetings   of  the  Authority;  however,  no  action  of  the
24    Authority shall be invalid on account of the absence  of  the
25    Executive  Director  from a meeting. The Authority may engage
26    the services of such other agents  and  employees,  including
27    attorneys,   appraisers,   engineers,   accountants,   credit
28    analysts  and other consultants, as it may deem advisable and
29    may prescribe their duties and fix their compensation.
30        The Authority shall determine the municipal poverty  rate
31    and  the statewide average municipal poverty rate annually by
32    utilizing the most recent data released by the United  States
33    Census Bureau before the beginning of such calendar year. The
34    Authority  shall  have  the  sole  and exclusive authority to
 
                            -10-     LRB093 05454 LRD 17090 a
 1    determine  the  municipal  poverty  rate  and  the  statewide
 2    average  municipal  poverty  rate  and  determine  whether  a
 3    municipality's poverty rate is greater than 3% in  excess  of
 4    the  statewide average so long as such determination is based
 5    on the most recent data released by the United States  Census
 6    Bureau.

 7        Section 5. Conflicts of Interest. Members or employees of
 8    Authority; conflicting relations or interests; effects.
 9        (a)  No  member  of  the  Authority  or officer, agent or
10    employee thereof shall, in his or her own name or in the name
11    of a nominee, be an officer, director or  hold  an  ownership
12    interest of more than 7.5% in any person, association, trust,
13    corporation, partnership or other entity which is, in its own
14    name  or  in  the name of a nominee, a party to a contract or
15    agreement upon which the member or officer, agent or employee
16    may be called upon to act or vote.
17        (b) With respect to any direct or any indirect  interest,
18    other  than  an  interest  prohibited in subsection (a), in a
19    contract or agreement upon which the member or officer, agent
20    or employee may be called upon to act or vote,  a  member  of
21    the  Authority  or  officer,  agent or employee thereof shall
22    disclose the same to the secretary of the Authority prior  to
23    the  taking  of final action by the Authority concerning such
24    contract or agreement and shall so disclose  the  nature  and
25    extent  of  such interest and his or her acquisition thereof,
26    which disclosures  shall  be  publicly  acknowledged  by  the
27    Authority and entered upon the minutes of the Authority. If a
28    member of the Authority or officer, agent or employee thereof
29    holds such an interest, then he or she shall refrain from any
30    further  official  involvement  in regard to such contract or
31    agreement, from voting  on  any  matter  pertaining  to  such
32    contract  or  agreement,  and  from  communicating with other
33    members  of  the  Authority  or  its  officers,  agents   and
 
                            -11-     LRB093 05454 LRD 17090 a
 1    employees    concerning    said    contract   or   agreement.
 2    Notwithstanding any other provision of law, any  contract  or
 3    agreement entered into in conformity with this subsection (b)
 4    shall  not  be  void  or  invalid  by  reason of the interest
 5    described  in  this  subsection,  nor  shall  any  person  so
 6    disclosing the interest and refraining from further  official
 7    involvement  as  provided  in this subsection be guilty of an
 8    offense, be removed from office or be subject  to  any  other
 9    penalty on account of such interest.
10        (c)  Any  contract  or  agreement  made  in  violation of
11    subsection (a) or (b) of this Section shall be null and void,
12    whether or not such contract performance has been authorized,
13    and shall give rise to no action against  the  Authority.  No
14    real  estate  to  which a member or employee of the Authority
15    holds legal title or in which such person has any  beneficial
16    interest,  including  any  interest in a land trust, shall be
17    purchased by the Authority or by a nonprofit  corporation  or
18    limited-profit  entity for a development to be financed under
19    this Act.
20        All members and employees of  the  Authority  shall  file
21    annually  with  the  Authority a record of all real estate in
22    this State of which such person holds legal title or in which
23    such  person  has  any  beneficial  interest,  including  any
24    interest in a land trust. In the event it is later  disclosed
25    that  the  Authority  has  purchased  real  estate in which a
26    member or employee had an interest, such  purchase  shall  be
27    voidable by the Authority and the member or employee involved
28    shall be disqualified from membership in or employment by the
29    Authority.

30        Section  6.  Records  and  reports  of the Authority. The
31    secretary shall keep a  record  of  the  proceedings  of  the
32    Authority.  The treasurer of the Authority shall be custodian
33    of all Authority funds, and shall be bonded in such amount as
 
                            -12-     LRB093 05454 LRD 17090 a
 1    the  other  members  of  the  Authority  may  designate.  The
 2    accounts and bonds of the  Authority  shall  be  set  up  and
 3    maintained  in  a manner approved by the Auditor General, and
 4    the Authority shall file with the Auditor General a certified
 5    annual report within 120 days after the close of  its  fiscal
 6    year.  The  Authority  shall also file with the Governor, the
 7    Secretary  of  the  Senate,  the  Clerk  of  the   House   of
 8    Representatives,    and    the    Illinois    Commission   on
 9    Intergovernmental Cooperation, by March 1  of  each  year,  a
10    written  report covering its activities and any activities of
11    any instrumentality corporation established pursuant to  this
12    Act  for  the previous fiscal year. In its report to be filed
13    by March 1, 2004, the Authority  shall  present  an  economic
14    development  strategy for all municipalities with a municipal
15    poverty rate greater than  3%  in  excess  of  the  statewide
16    average.  The  Authority  shall  make  modifications  in such
17    economic development strategy for the 4  years  beginning  on
18    the  next  ensuing  July  1,  to  reflect changes in economic
19    conditions or other factors, including the  policies  of  the
20    Authority and the State of Illinois. It also shall present an
21    economic  development  strategy  for the fifth year beginning
22    after the next ensuing July 1. The strategy  shall  recommend
23    specific  legislative and administrative action by the State,
24    the  Authority,  units   of   local   government   or   other
25    governmental  agencies. Such recommendations may include, but
26    are not limited to, new programs, modifications  to  existing
27    programs,   credit  enhancements  for  bonds  issued  by  the
28    Authority, and amendments  to  this  Act.  When  filed,  such
29    report  shall  be  a public record and open for inspection at
30    the offices of the Authority during normal business hours.

31        Section 7. All  official  acts  of  the  Authority  shall
32    require the approval of at least 6 members.
 
                            -13-     LRB093 05454 LRD 17090 a
 1        Section 8. Authority powers.
 2        (a)  The  Authority  possesses  all  the powers of a body
 3    corporate necessary and convenient to accomplish the purposes
 4    of this Act, including, without  any  limitation,  except  as
 5    provided  in  Section  10,  upon  the  general  powers hereby
 6    conferred, the following:
 7             (1) to enter into loans, contracts,  agreements  and
 8        mortgages  in  any  matter  connected  with  any  of  its
 9        corporate purposes and to invest its funds;
10             (2) to sue and be sued;
11             (3)  to  employ  agents  and  employees necessary to
12        carry out its purposes;
13             (4) to have and use a common seal and to  alter  the
14        same at its discretion;
15             (5)  to  adopt  all needful ordinances, resolutions,
16        by-laws, rules and regulations for  the  conduct  of  its
17        business  and  affairs  and for the management and use of
18        the  projects  developed,   constructed,   acquired   and
19        improved in furtherance of its purposes;
20             (6) to designate the fiscal year for the Authority;
21             (7) to accept and expend appropriations;
22             (8)  to  maintain an office or offices at such place
23        as the Authority may designate;
24             (9) to employ, either as  regular  employees  or  as
25        independent  contractors,  such  consultants,  engineers,
26        architects,  accountants,  attorneys,  financial experts,
27        construction  experts  and  personnel,   superintendents,
28        managers and other professional personnel, personnel, and
29        actors  as  may  be  necessary  in  the  judgment  of the
30        Authority, and to fix their compensation;
31             (10)  to  acquire,  hold,  lease,   use,   encumber,
32        transfer or dispose of real and personal  property;
33             (11) to enter into contracts of any kind and execute
34        all  instruments  necessary or convenient with respect to
 
                            -14-     LRB093 05454 LRD 17090 a
 1        its carrying out the powers in this Act to accomplish the
 2        purposes of the Authority;
 3             (12) to fix and revise from time to time and  charge
 4        and  collect  rates, rents, fees or other charges for the
 5        use of facilities or for services rendered in  connection
 6        with the facilities;
 7             (13)  to  borrow  money  from  any  source  for  any
 8        corporate  purpose,  including  working  capital  for its
 9        operations, reserve funds, or the  payment  of  interest,
10        and   to  mortgage,  pledge  or  otherwise  encumber  the
11        property or funds of the Authority and to  contract  with
12        or  engage  the services of any person in connection with
13        any financing, including financial institutions,  issuers
14        of letters of credit, or insurers;
15             (14) to issue bonds or notes under this Act;
16             (15)  to receive and accept from any source, private
17        or public, contributions, gifts or  grants  of  money  or
18        property;
19             (16)  to make loans from proceeds or funds otherwise
20        available to  the  extent  necessary  or  appropriate  to
21        accomplish the purposes of the Authority;
22             (17) to exercise all the corporate powers granted to
23        Illinois  corporations under the Business Corporation Act
24        of 1983, except to the extent that any  such  powers  are
25        inconsistent  with  those of a body politic and corporate
26        of the State;
27             (18) to have and exercise all powers and be  subject
28        to  all duties usually incident to boards of directors of
29        corporations; and
30             (19) to do all things  necessary  or  convenient  to
31        carry out the powers granted by this Act.
32        (b)  The  Authority shall not issue any bonds relating to
33    the financing of a project located within  the  planning  and
34    subdivision  control  jurisdiction  of  any  municipality  or
 
                            -15-     LRB093 05454 LRD 17090 a
 1    county unless notice, including a description of the proposed
 2    project  and  the  financing  therefor,  is  submitted to the
 3    corporate authorities of such municipality or, in the case of
 4    a proposed project in an unincorporated area, to  the  county
 5    board.
 6        (c)  If  any  of  the  powers  set  forth in this Act are
 7    exercised   within   the   jurisdictional   limits   of   any
 8    municipality,  all  ordinances  of  such  municipality  shall
 9    remain in full force and effect and shall be controlling.

10        Section 9. Bonds and notes.
11             (a)(1) The Authority may, at any time and from  time
12        to time, issue bonds and notes for any corporate purpose,
13        including  the  establishment of reserves and the payment
14        of interest. In this Act the term "bonds" includes  notes
15        of any kind, interim certificates, refunding bonds or any
16        other evidence of obligation.
17             (2)  The  bonds of any issue shall be payable solely
18        from  the  property  or  receipts   of   the   Authority,
19        including, without limitation: (I) fees, charges or other
20        revenues  payable  to  the  Authority;  (II)  payments by
21        financial institutions, insurance  companies,  or  others
22        pursuant  to  letters  or  lines  of  credit, policies of
23        insurance,  or  purchase  agreements;  (III)   investment
24        earnings  from funds or accounts maintained pursuant to a
25        bond resolution or  trust  agreement;  (IV)  proceeds  of
26        refunding  bonds  and  (V)  any  and  all  appropriations
27        authorized by the General Assembly.
28             (3) Bonds shall be authorized by a resolution of the
29        Authority  and may be secured by a trust agreement by and
30        between  the  Authority  and  a  corporate   trustee   or
31        trustees,  which  may be any trust company or bank having
32        the powers of a  trust  company  within  or  without  the
33        State.
 
                            -16-     LRB093 05454 LRD 17090 a
 1             (4)  Bonds shall:
 2                  (I)  be  issued  at,  above or below par value,
 3             for cash or other valuable consideration, and mature
 4             at time or times, whether as serial bonds or as term
 5             bonds or both, not exceeding  35  years  from  their
 6             respective date of issue; however, the length of the
 7             term   of   the   bond   should  bear  a  reasonable
 8             relationship to the value life of the item financed;
 9                  (II)  bear interest at the  fixed  or  variable
10             rate  or  rates determined by the method provided in
11             the resolution or trust agreement;
12                  (III) be payable at a time  or  times,  in  the
13             denominations  and form, either coupon or registered
14             or both, and carry the registration  and  privileges
15             as   to   conversion  and  for  the  replacement  of
16             mutilated, lost or destroyed bonds as the resolution
17             or trust agreement may provide;
18                  (IV) be payable in lawful money of  the  United
19             States at a designated place;
20                  (V)  be  subject  to  the  terms  of  purchase,
21             payment,  redemption,  refunding or refinancing that
22             the resolution or trust agreement provides;
23                  (VI) be executed by  the  manual  or  facsimile
24             signatures   of   the   officers  of  the  Authority
25             designated by the Authority, which signatures  shall
26             be  valid at delivery even for one who has ceased to
27             hold office; and
28                  (VII) be sold in the manner and upon the  terms
29             determined by the Authority.
30        (b)   Any  resolution  or  trust  agreement  may  contain
31    provisions which shall be a part of  the  contract  with  the
32    holders of the bonds as to:
33             (1)   pledging,  assigning  or  directing  the  use,
34        investment or disposition of receipts of the Authority or
 
                            -17-     LRB093 05454 LRD 17090 a
 1        proceeds or benefits of any  contract  and  conveying  or
 2        otherwise securing any property or property rights;
 3             (2) the setting aside of loan funding deposits, debt
 4        service  reserves, capitalized interest accounts, cost of
 5        issuance accounts and sinking funds, and the regulations,
 6        investment and disposition thereof;
 7             (3) limitations on  the  purpose  to  which  or  the
 8        investments  in  which  the  proceeds  of the sale of any
 9        issue  of  bonds  may  be  applied  and  restrictions  to
10        investment of revenues or  bond  proceeds  in  government
11        obligations   for   which   principal  and  interest  are
12        unconditionally  guaranteed  by  the  United  States   of
13        America;
14             (4)  limitations  on  the issue of additional bonds,
15        the terms upon which additional bonds may be  issued  and
16        secured,  the  terms upon which additional bonds may rank
17        on a parity with, or be subordinate or superior to, other
18        bonds;
19             (5) the  refunding  or  refinancing  of  outstanding
20        bonds;
21             (6) the procedure, if any, by which the terms of any
22        contract  with  bondholders may be altered or amended and
23        the amount of bonds and holders  of  which  must  consent
24        thereto, and the manner in which consent shall be given;
25             (7)  defining  the  acts  or  omissions  which shall
26        constitute a default in the duties of  the  Authority  to
27        holders  of bonds and providing the rights or remedies of
28        such holders in the event of a default which may  include
29        provisions  restricting  individual  right  of  action by
30        bondholders;
31             (8) providing for guarantees, pledges  of  property,
32        letters  of  credit,  or other security, or insurance for
33        the benefit of bondholders; and
34             (9) any other matter relating to the bonds which the
 
                            -18-     LRB093 05454 LRD 17090 a
 1        Authority determines appropriate.
 2        (c) No member of the Authority nor any  person  executing
 3    the  bonds shall be liable personally on the bonds or subject
 4    to any personal liability by reason of the  issuance  of  the
 5    bonds.
 6        (d)  The Authority may enter into agreements with agents,
 7    banks, insurers or others for the purpose  of  enhancing  the
 8    marketability of or as security for its bonds.
 9        (e)(1)  A pledge by the Authority of revenues as security
10    for an issue of bonds shall be valid  and  binding  from  the
11    time when the pledge is made.
12             (2)   The  revenues  pledged  shall  immediately  be
13        subject to the lien of the pledge  without  any  physical
14        delivery or further act, and the lien of any pledge shall
15        be  valid and binding against any person having any claim
16        of any kind in tort, contract or  otherwise  against  the
17        Authority, irrespective of whether the person has notice.
18             (3)  No  resolution,  trust  agreement  or financing
19        statement, continuation statement,  or  other  instrument
20        adopted or entered into by the Authority need be filed or
21        recorded  in  any public record other than the records of
22        the authority in order to perfect the lien against  third
23        persons, regardless of any contrary provision of law.
24        (f)  The  Authority  may issue bonds to refund any of its
25    bonds  then  outstanding,  including  the  payment   of   any
26    redemption  premium  and any interest accrued or to accrue to
27    the earliest or any subsequent date of  redemption,  purchase
28    or  maturity  of the bonds. Refunding bonds may be issued for
29    the public purposes of realizing  savings  in  the  effective
30    costs   of   debt   service,   directly  or  through  a  debt
31    restructuring, for alleviating impending  or  actual  default
32    and  may  be  issued  in  one  or more series in an amount in
33    excess of that of the bonds to be refunded.
34        (g) Bonds or notes of the Authority may be  sold  by  the
 
                            -19-     LRB093 05454 LRD 17090 a
 1    Authority   through   the   process  of  competitive  bid  or
 2    negotiated sale.
 3        (h) At no time shall  the  total  outstanding  bonds  and
 4    notes of the Authority exceed $500 million exclusive of bonds
 5    issued to refund outstanding bonds.
 6        (i)  The  bonds  and  notes of the Authority shall not be
 7    debts of the State, any  unit  of  local  government  or  any
 8    political subdivision.

 9        Section 10. Limitation.
10        (a) The Authority may issue its bonds or notes (including
11    refunding  bond  or  notes)  only  if the financed project is
12    situated   within   the   territorial   jurisdiction   of   a
13    municipality whose poverty rate is greater than 3% in  excess
14    of the statewide average.
15        (b)   If   a   project   is   situated  in  two  or  more
16    municipalities where one such municipality  has  a  municipal
17    poverty  rate more than 3% in excess of the statewide average
18    and the other does not, the project shall  be  deemed  to  be
19    within such municipality whose municipal poverty rate is more
20    than 3% in excess of the statewide average.

21        Section   11.  Legality  for  investment.  Any  financial
22    institution,  investment  company,   insurance   company   or
23    association,   and  any  personal  representative,  guardian,
24    trustee or other fiduciary, may  legally  invest  any  monies
25    belonging to them or within their control in any bonds issued
26    by the Authority.

27        Section  12.  Tax  exemption.  The Authority shall not be
28    required  to  pay  any  taxes  or  assessments  of  any  kind
29    whatsoever  and  its  bonds,  their  transfer,  the  interest
30    payable on them, and any income derived from  them  shall  be
31    exempt  at  the  time of issuance and at all times from every
 
                            -20-     LRB093 05454 LRD 17090 a
 1    kind and nature of taxation by this State or by  any  of  its
 2    political  subdivisions,  municipal  corporations,  or public
 3    agencies  of  any  kind,  except  for  estate,  transfer  and
 4    inheritance taxes as provided in Section 13.
 5        For purposes of Section 250 of the  Illinois  Income  Tax
 6    Act,  the  exemption  of  the income from bonds issued by the
 7    Authority shall terminate after all of the  bonds  have  been
 8    paid.  The amount of such income that shall be added and then
 9    subtracted on the Illinois income tax return of  a  taxpayer,
10    pursuant  to Section 203 of the Illinois Income Tax Act, from
11    federal adjusted gross income or federal  taxable  income  in
12    computing  Illinois  base income shall be the interest net of
13    any bond premium amortization. The amount of such income that
14    shall be added and then subtracted on the Illinois income tax
15    return of a taxpayer, pursuant to Section 203 of the Illinois
16    Income Tax Act, from federal adjusted gross income or federal
17    taxable income in computing Illinois base income shall be the
18    interest net of any bond premium amortization.

19        Section 13. Additional powers and duties.
20        (a) The Authority may, but need not, acquire title to any
21    project with respect to which it exercises its authority.
22        (b) The Authority shall have  the  power  to  enter  into
23    intergovernmental  agreements with the State of Illinois, the
24    United States government and any agency or instrumentality of
25    the United States, any unit of local government or any  other
26    unit  of  government  to  the  extent allowed by Article VII,
27    Section   10   of   the   Illinois   Constitution   and   the
28    Intergovernmental Cooperation Act.
29        (c) The Authority shall have the power to share employees
30    with other units of government,  including  agencies  of  the
31    United States, agencies of the State of Illinois and agencies
32    or personnel of any unit of local government.
33        (d) The Authority shall have the power to exercise powers
 
                            -21-     LRB093 05454 LRD 17090 a
 1    and issue bonds as if it were a municipality so authorized in
 2    Divisions  12.1, 74, 74.1, 74.3, 74.4, and 74.5 of Article 11
 3    of the Illinois Municipal Code.

 4        Section 14. The Authority may by resolution designate any
 5    portion of the State as an Enterprise Zone under the Illinois
 6    Enterprise Zone Act in addition to any other enterprise zones
 7    which may be created under the Illinois Enterprise Zone  Act,
 8    which  area  shall  have  all the privileges and rights of an
 9    Enterprise Zone pursuant to the Illinois Enterprise Zone Act,
10    but which shall not be counted in determining the  number  of
11    Enterprise  Zones  to be created in any year pursuant to that
12    Act.

13        Section 15.  The Authority may collect fees  and  charges
14    in  connection  with its loans, commitments and servicing and
15    provide  technical  assistance  in  the  development  of  the
16    region.

17        Section 16. Annual Appropriation.  The  General  Assembly
18    shall  appropriate  moneys annually as provided in subsection
19    (b-10) of Section 13 of the Riverboat Gambling Act  into  the
20    Illinois  Urban  Development  Authority Fund, which is hereby
21    created as  a  special  fund  in  the  State  Treasury.   The
22    Authority  may  use  moneys  in  the  fund  for  the purposes
23    specified in this Act.

24        Section 75.  The Illinois Horse Racing  Act  of  1975  is
25    amended  by changing Sections 1.2, 3.11, 9, 20, 25, 26, 26.1,
26    27, 28.1, 30, 31, 36, and 42 and adding Sections 3.24,  3.25,
27    3.26, 3.27, 34.2, and 56 as follows:

28        (230 ILCS 5/1.2)
29        Sec.  1.2.   Legislative  intent. This Act is intended to
 
                            -22-     LRB093 05454 LRD 17090 a
 1    benefit the people of the State of  Illinois  by  encouraging
 2    the   breeding  and  production  of  race  horses,  assisting
 3    economic development, and  promoting  Illinois  tourism.  The
 4    General  Assembly  finds  and  declares  it  to be the public
 5    policy of the State of Illinois to:
 6        (a)  support and enhance Illinois' horse racing industry,
 7    which is a  significant  component  within  the  agribusiness
 8    industry;
 9        (b)  ensure  that Illinois' horse racing industry remains
10    competitive with neighboring states;
11        (c)  stimulate  growth  within  Illinois'  horse   racing
12    industry,  thereby encouraging new investment and development
13    to produce additional tax revenues and to  create  additional
14    jobs;
15        (d)  promote the further growth of tourism;
16        (e)  encourage   the   breeding   of   thoroughbred   and
17    standardbred horses in this State; and
18        (f)  ensure  that  public  confidence  and  trust  in the
19    credibility  and  integrity  of  racing  operations  and  the
20    regulatory process is maintained.
21    (Source: P.A. 91-40, eff. 6-25-99.)

22        (230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
23        Sec. 3.11.  "Organization  licensee"  means  any  person,
24    not-for-profit  corporation, municipality, or legal authority
25    with bonding power created to promote tourism,  receiving  an
26    organization license from the Board to conduct a race meeting
27    or meetings.
28    (Source: P.A. 79-1185.)

29        (230 ILCS 5/3.24 new)
30        Sec.  3.24.  "Adjusted  gross  receipts"  means the gross
31    receipts  from  electronic  gaming  less  winnings  paid   to
32    wagerers.
 
                            -23-     LRB093 05454 LRD 17090 a
 1        (230 ILCS 5/3.25 new)
 2        Sec.   3.25.   "Electronic  gaming"  means  slot  machine
 3    gambling conducted at a race track pursuant to an  electronic
 4    gaming license.

 5        (230 ILCS 5/3.26 new)
 6        Sec. 3.26. "Electronic gaming license" means a license to
 7    conduct electronic gaming issued under Section 56.

 8        (230 ILCS 5/3.27 new)
 9        Sec.   3.27.  "Electronic  gaming  facility"  means  that
10    portion of an organization licensee's race track facility  at
11    which electronic gaming is conducted.

12        (230 ILCS 5/9) (from Ch. 8, par. 37-9)
13        Sec.  9.  The  Board  shall have all powers necessary and
14    proper to fully and  effectively execute  the  provisions  of
15    this Act, including, but not limited to, the following:
16        (a)  The   Board   is   vested   with   jurisdiction  and
17    supervision over all race meetings in this  State,  over  all
18    licensees  doing  business in this State, over all occupation
19    licensees, and over all persons  on  the  facilities  of  any
20    licensee.  Such jurisdiction shall include the power to issue
21    licenses  to   the   Illinois   Department   of   Agriculture
22    authorizing the pari-mutuel system of wagering on harness and
23    Quarter  Horse  races held (1)  at the Illinois State Fair in
24    Sangamon County, and (2) at the DuQuoin State Fair  in  Perry
25    County.  The jurisdiction of the Board shall also include the
26    power to issue licenses to county fairs which are eligible to
27    receive funds pursuant to the Agricultural Fair Act,  as  now
28    or  hereafter  amended,  or  their  agents,  authorizing  the
29    pari-mutuel  system  of  wagering on horse races conducted at
30    the county fairs  receiving  such  licenses.   Such  licenses
31    shall be governed by subsection (n) of this Section.
 
                            -24-     LRB093 05454 LRD 17090 a
 1        Upon  application, the Board shall issue a license to the
 2    Illinois Department of Agriculture  to  conduct  harness  and
 3    Quarter  Horse  races  at  the Illinois State Fair and at the
 4    DuQuoin State Fairgrounds during the scheduled dates of  each
 5    fair.   The  Board  shall  not  require and the Department of
 6    Agriculture shall be exempt from the requirements of Sections
 7    15.3, 18 and 19,  paragraphs  (a)(2),  (b),  (c),  (d),  (e),
 8    (e-5),  (e-10), (f), (g), and (h) of Section 20, and Sections
 9    21, 24 and 25. The Board and the  Department  of  Agriculture
10    may  extend  any or all of these exemptions to any contractor
11    or agent engaged by the Department of Agriculture to  conduct
12    its  race  meetings when the Board determines that this would
13    best serve the public interest  and  the  interest  of  horse
14    racing.
15        Notwithstanding  any provision of law to the contrary, it
16    shall be lawful  for  any  licensee  to  operate  pari-mutuel
17    wagering  or  contract  with the Department of Agriculture to
18    operate pari-mutuel wagering at the DuQuoin State Fairgrounds
19    or  for  the  Department  to  enter  into  contracts  with  a
20    licensee, employ its owners, employees or agents  and  employ
21    such  other  occupation  licensees  as  the  Department deems
22    necessary in connection with race meetings and wagerings.
23        (b)  The  Board  is  vested  with  the  full   power   to
24    promulgate  reasonable  rules and regulations for the purpose
25    of administering the provisions of this Act and to  prescribe
26    reasonable  rules, regulations and conditions under which all
27    horse race  meetings  or  wagering  in  the  State  shall  be
28    conducted.   Such  reasonable  rules   and regulations are to
29    provide for the prevention of practices  detrimental  to  the
30    public  interest  and  to promote the best interests of horse
31    racing and to impose penalties for violations thereof.
32        (c)  The Board, and any person  or  persons  to  whom  it
33    delegates  this  power, is vested with the power to enter the
34    facilities and other places of business of  any  licensee  to
 
                            -25-     LRB093 05454 LRD 17090 a
 1    determine   whether   there  has  been  compliance  with  the
 2    provisions of this Act and its rules and regulations.
 3        (d)  The Board, and any person  or  persons  to  whom  it
 4    delegates  this  power,  is  vested  with  the  authority  to
 5    investigate alleged violations of the provisions of this Act,
 6    its  reasonable  rules  and  regulations,  orders  and  final
 7    decisions;  the  Board  shall  take  appropriate disciplinary
 8    action  against  any  licensee  or  occupation  licensee  for
 9    violation thereof or institute appropriate legal  action  for
10    the enforcement thereof.
11        (e)  The  Board,  and  any  person  or persons to whom it
12    delegates this power, may eject  or  exclude  from  any  race
13    meeting  or  the  facilities  of  any  licensee,  or any part
14    thereof, any occupation  licensee  or  any  other  individual
15    whose  conduct  or  reputation  is  such that his presence on
16    those facilities may, in the opinion of the Board, call  into
17    question  the  honesty  and  integrity  of  horse  racing  or
18    wagering  or  interfere  with  the  orderly  conduct of horse
19    racing or wagering; provided, however, that no  person  shall
20    be  excluded  or  ejected from the facilities of any licensee
21    solely on the grounds of race, color, creed, national origin,
22    ancestry,  or  sex.   The  power  to  eject  or  exclude   an
23    occupation  licensee or other individual may be exercised for
24    just  cause  by  the  licensee  or  the  Board,  subject   to
25    subsequent  hearing  by the Board as to the propriety of said
26    exclusion.
27        (f)  The Board is  vested  with  the  power  to  acquire,
28    establish,  maintain  and  operate (or provide by contract to
29    maintain  and  operate)  testing  laboratories  and   related
30    facilities,  for  the  purpose  of  conducting saliva, blood,
31    urine and other tests on the horses run or to be run  in  any
32    horse  race meeting, including races run at county fairs, and
33    to purchase all equipment and supplies  deemed  necessary  or
34    desirable  in  connection  with any such testing laboratories
 
                            -26-     LRB093 05454 LRD 17090 a
 1    and related facilities and all such tests.
 2        (g)  The Board may require that  the  records,  including
 3    financial  or  other statements of any licensee or any person
 4    affiliated with the licensee  who  is  involved  directly  or
 5    indirectly  in  the  activities  of any licensee as regulated
 6    under this Act to the extent that those  financial  or  other
 7    statements  relate  to such activities be kept in such manner
 8    as prescribed by the Board, and that  Board  employees  shall
 9    have  access  to  those  records  during  reasonable business
10    hours.  Within 120 days of the end of its fiscal  year,  each
11    licensee  shall  transmit  to  the  Board  an  audit  of  the
12    financial  transactions and condition of the licensee's total
13    operations.  All  audits  shall  be  conducted  by  certified
14    public accountants.  Each certified public accountant must be
15    registered in the State of Illinois under the Illinois Public
16    Accounting  Act.   The compensation for each certified public
17    accountant shall be paid directly  by  the  licensee  to  the
18    certified  public  accountant.   A licensee shall also submit
19    any other financial or related information  the  Board  deems
20    necessary  to  effectively administer this Act and all rules,
21    regulations, and final decisions promulgated under this Act.
22        (h)  The Board shall  name  and  appoint  in  the  manner
23    provided  by  the  rules  and  regulations  of the Board:  an
24    Executive  Director;  a  State  director  of  mutuels;  State
25    veterinarians and  representatives  to  take  saliva,  blood,
26    urine and other tests on horses; licensing personnel; revenue
27    inspectors; and State seasonal employees (excluding admission
28    ticket  sellers  and  mutuel clerks).  All of those named and
29    appointed as provided in this subsection shall  serve  during
30    the  pleasure  of  the  Board;  their  compensation  shall be
31    determined by the Board and be paid in  the  same  manner  as
32    other employees of the Board under this Act.
33        (i)  The  Board  shall  require  that  there  shall  be 3
34    stewards at each horse race meeting, at least 2 of whom shall
 
                            -27-     LRB093 05454 LRD 17090 a
 1    be named and appointed by the Board.  Stewards  appointed  or
 2    approved  by  the  Board, while performing duties required by
 3    this Act or by the Board,  shall  be  entitled  to  the  same
 4    rights  and  immunities as granted to Board members and Board
 5    employees in Section 10 of this Act.
 6        (j)  The Board may discharge any Board employee who fails
 7    or refuses for any  reason  to  comply  with  the  rules  and
 8    regulations  of  the  Board,  or  who,  in the opinion of the
 9    Board, is guilty of fraud, dishonesty or who is proven to  be
10    incompetent.  The  Board  shall  have  no  right  or power to
11    determine who shall be officers, directors  or  employees  of
12    any  licensee,  or  their  salaries  except the Board may, by
13    rule, require that all  or  any  officials  or  employees  in
14    charge  of  or  whose  duties relate to the actual running of
15    races be  approved by the Board.
16        (k)  The Board  is  vested  with  the  power  to  appoint
17    delegates  to  execute  any of the powers granted to it under
18    this Section for the purpose of administering  this  Act  and
19    any  rules or regulations promulgated in accordance with this
20    Act.
21        (l)  The Board is vested with the power to  impose  civil
22    penalties  of  up  to  $5,000 against an individual and up to
23    $10,000  against  a  licensee  for  each  violation  of   any
24    provision  of  this  Act, any rules adopted by the Board, any
25    order of the Board or any other action which, in the  Board's
26    discretion,  is  a detriment or impediment to horse racing or
27    wagering.
28        (m)  The Board is vested with the power  to  prescribe  a
29    form to be used by licensees as an application for employment
30    for employees of each licensee.
31        (n)  The Board shall have the power to issue a license to
32    any county fair, or its agent, authorizing the conduct of the
33    pari-mutuel system of wagering.  The Board is vested with the
34    full  power  to  promulgate reasonable rules, regulations and
 
                            -28-     LRB093 05454 LRD 17090 a
 1    conditions under  which  all  horse  race  meetings  licensed
 2    pursuant  to  this  subsection  shall  be held and conducted,
 3    including rules, regulations and conditions for  the  conduct
 4    of   the   pari-mutuel   system   of  wagering.   The  rules,
 5    regulations and conditions shall provide for  the  prevention
 6    of  practices  detrimental to the public interest and for the
 7    best interests of horse racing, and shall prescribe penalties
 8    for violations thereof.   Any  authority  granted  the  Board
 9    under   this   Act  shall  extend  to  its  jurisdiction  and
10    supervision over county  fairs,  or  their  agents,  licensed
11    pursuant  to  this  subsection.  However, the Board may waive
12    any provision of this Act or its rules or  regulations  which
13    would otherwise apply to such county fairs or their agents.
14        (o)  Whenever  the Board is authorized or required by law
15    to  consider  some  aspect   of   criminal   history   record
16    information  for  the  purpose  of carrying out its statutory
17    powers and responsibilities, then, upon request  and  payment
18    of  fees  in  conformance  with  the  requirements of Section
19    2605-400 of the Department  of  State  Police  Law  (20  ILCS
20    2605/2605-400),  the Department of State Police is authorized
21    to  furnish,  pursuant  to  positive   identification,   such
22    information  contained  in  State  files  as  is necessary to
23    fulfill the request.
24        (p)  To insure the  convenience,  comfort,  and  wagering
25    accessibility  of  race  track  patrons,  to  provide for the
26    maximization of State revenue, and to generate  increases  in
27    purse allotments to the horsemen, the Board shall require any
28    licensee  to  staff  the pari-mutuel department with adequate
29    personnel.
30    (Source: P.A. 91-239, eff. 1-1-00.)

31        (230 ILCS 5/20) (from Ch. 8, par. 37-20)
32        Sec. 20. (a) Any person desiring to conduct a horse  race
33    meeting  may  apply to the Board for an organization license.
 
                            -29-     LRB093 05454 LRD 17090 a
 1    The application shall  be  made  on  a  form  prescribed  and
 2    furnished by the Board.  The application shall specify:
 3             (1)  the  dates  on  which it intends to conduct the
 4        horse race meeting, which dates shall be  provided  under
 5        Section 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 Board may reasonably
11        require.
12        (b)  A separate application for an  organization  license
13    shall  be filed for each horse race meeting which such person
14    proposes to  hold.  Any  such  application,  if  made  by  an
15    individual,  or by any individual as trustee, shall be signed
16    and verified under oath  by  such  individual.   If  made  by
17    individuals or a partnership, it shall be signed and verified
18    under  oath  by  at least 2 of such individuals or members of
19    such   partnership  as  the  case  may  be.  If  made  by  an
20    association,  corporation,  corporate  trustee  or  any other
21    entity, it shall be signed by the president and  attested  by
22    the  secretary  or assistant secretary under the seal of such
23    association, trust or corporation if it has a seal, and shall
24    also be verified under oath by one of the signing officers.
25        (c)  The  application  shall  specify  the  name  of  the
26    persons,  association,  trust,  or  corporation  making  such
27    application and the post office address of the applicant;  if
28    the  applicant  is  a trustee, the names and addresses of the
29    beneficiaries; if a corporation, the names  and  post  office
30    addresses  of all officers, stockholders and directors; or if
31    such stockholders hold stock as a  nominee or fiduciary,  the
32    names   and   post   office   addresses   of  these  persons,
33    partnerships, corporations, or trusts who are the  beneficial
34    owners  thereof  or  who are beneficially interested therein;
 
                            -30-     LRB093 05454 LRD 17090 a
 1    and if a partnership, the names and post office addresses  of
 2    all  partners,  general  or  limited;  if  the applicant is a
 3    corporation, the name of the state of its incorporation shall
 4    be specified.
 5        (d)  The applicant shall execute and file with the  Board
 6    a  good  faith affirmative action plan to recruit, train, and
 7    upgrade  minorities  in  all   classifications   within   the
 8    association.
 9        (e)  With  such  application  there shall be delivered to
10    the Board a certified check or  bank  draft  payable  to  the
11    order  of  the  Board  for  an  amount  equal  to $1,000. All
12    applications for the  issuance  of  an  organization  license
13    shall  be  filed  with  the Board before August 1 of the year
14    prior to the year for which application is made and shall  be
15    acted  upon by the Board at a meeting to be held on such date
16    as shall be fixed by the Board during the  last  15  days  of
17    September  of  such  prior  year.  At such meeting, the Board
18    shall announce the award of the  racing  meets,  live  racing
19    schedule, and designation of host track to the applicants and
20    its   approval   or   disapproval  of  each  application.  No
21    announcement shall be considered binding until a formal order
22    is executed by the Board, which shall be  executed  no  later
23    than  October  15 of that prior year. Absent the agreement of
24    the affected organization  licensees,  the  Board  shall  not
25    grant  overlapping race meetings to 2 or more tracks that are
26    within 100 miles of each other to  conduct  the  thoroughbred
27    racing.
28        (e-2)  In  awarding  racing  dates for calendar year 2004
29    and thereafter, the Board shall award the same  total  number
30    of  racing  days  as it awarded in calendar year 2003 plus an
31    amount as provided in subsection (e-3).  In  awarding  racing
32    dates  under  this subsection (e-2), the Board shall have the
33    discretion to allocate those racing dates among  organization
34    licensees.
 
                            -31-     LRB093 05454 LRD 17090 a
 1        (e-3)  Upon  request,  the Board shall award at least 100
 2    standardbred racing dates to the organization  licensee  that
 3    conducts  racing  at  Fairmount Race Track.  Any racing dates
 4    awarded  under  this  subsection  (e-3)  to  an  organization
 5    licensee that conducts racing at Fairmount  Race  Track  that
 6    are  in  excess  of  the  number awarded to that organization
 7    licensee in 2003 shall be in addition to those  racing  dates
 8    awarded under subsection (e-2).
 9        (e-5)  In  reviewing  an  application  for the purpose of
10    granting an organization license  consistent  with  the  best
11    interests  of  the  public and the sport of horse racing, the
12    Board shall consider:
13             (1)  the  character,  reputation,  experience,   and
14        financial  integrity  of  the  applicant and of any other
15        separate person that either:
16                  (i)  controls  the   applicant,   directly   or
17             indirectly, or
18                  (ii)  is controlled, directly or indirectly, by
19             that applicant or by a person who controls, directly
20             or indirectly, that applicant;
21             (2)  the    applicant's   facilities   or   proposed
22        facilities for conducting horse racing;
23             (3)  the total revenue  without  regard  to  Section
24        32.1  to  be  derived  by the State and horsemen from the
25        applicant's conducting a race meeting;
26             (4)  the applicant's good faith  affirmative  action
27        plan  to  recruit,  train,  and upgrade minorities in all
28        employment classifications;
29             (5)  the applicant's financial ability  to  purchase
30        and maintain adequate liability and casualty insurance;
31             (6)  the   applicant's  proposed  and  prior  year's
32        promotional and marketing activities and expenditures  of
33        the applicant associated with those activities;
34             (7)  an   agreement,   if  any,  among  organization
 
                            -32-     LRB093 05454 LRD 17090 a
 1        licensees as provided in subsection (b) of Section 21  of
 2        this Act; and
 3             (8)  the  extent  to  which the applicant exceeds or
 4        meets other standards for the issuance of an organization
 5        license that the Board shall adopt by rule.
 6        In granting organization licenses  and  allocating  dates
 7    for  horse  race meetings, the Board shall have discretion to
 8    determine an overall schedule, including required  simulcasts
 9    of  Illinois races by host tracks that will, in its judgment,
10    be conducive to the best interests  of  the  public  and  the
11    sport of horse racing.
12        (e-10)  The  Illinois  Administrative Procedure Act shall
13    apply to administrative procedures of the  Board  under  this
14    Act  for the granting of an organization license, except that
15    (1) notwithstanding  the  provisions  of  subsection  (b)  of
16    Section  10-40  of  the Illinois Administrative Procedure Act
17    regarding cross-examination, the Board  may  prescribe  rules
18    limiting  the  right  of  an  applicant or participant in any
19    proceeding  to  award  an  organization  license  to  conduct
20    cross-examination of witnesses at that proceeding where  that
21    cross-examination  would  unduly obstruct the timely award of
22    an organization license under subsection (e) of Section 20 of
23    this Act; (2) the provisions of Section 10-45 of the Illinois
24    Administrative Procedure Act regarding proposals for decision
25    are  excluded  under  this  Act;  (3)   notwithstanding   the
26    provisions of subsection (a) of Section 10-60 of the Illinois
27    Administrative    Procedure    Act    regarding    ex   parte
28    communications, the Board may  prescribe  rules  allowing  ex
29    parte  communications  with  applicants  or participants in a
30    proceeding to award an organization license where  conducting
31    those communications would be in the best interest of racing,
32    provided all those communications are made part of the record
33    of  that  proceeding  pursuant  to  subsection (c) of Section
34    10-60 of the Illinois Administrative Procedure Act;  (4)  the
 
                            -33-     LRB093 05454 LRD 17090 a
 1    provisions  of  Section  14a of this Act and the rules of the
 2    Board promulgated under that Section shall apply  instead  of
 3    the  provisions  of Article 10 of the Illinois Administrative
 4    Procedure Act regarding administrative law  judges;  and  (5)
 5    the  provisions  of  subsection  (d)  of Section 10-65 of the
 6    Illinois Administrative Procedure Act  that  prevent  summary
 7    suspension  of  a  license pending revocation or other action
 8    shall not apply.
 9        (f)  The Board may allot racing dates to an  organization
10    licensee for more than one calendar year but for no more than
11    3  successive  calendar  years  in advance, provided that the
12    Board shall review such allotment for more than one  calendar
13    year  prior  to  each  year for which such allotment has been
14    made.  The granting of an organization license  to  a  person
15    constitutes a privilege to conduct a horse race meeting under
16    the  provisions  of  this  Act,  and  no  person  granted  an
17    organization  license  shall  be  deemed  to  have  a  vested
18    interest, property right, or future expectation to receive an
19    organization  license  in  any subsequent year as a result of
20    the  granting  of  an  organization   license.   Organization
21    licenses  shall  be subject to revocation if the organization
22    licensee has violated any provision of this Act or the  rules
23    and  regulations  promulgated  under  this  Act  or  has been
24    convicted of a crime or has failed to disclose or has  stated
25    falsely  any information called for in the application for an
26    organization license.  Any  organization  license  revocation
27    proceeding  shall  be in accordance with Section 16 regarding
28    suspension and revocation of occupation licenses.
29        (f-5)  If, (i) an applicant does not file  an  acceptance
30    of  the  racing  dates awarded by the Board as required under
31    part (1) of subsection (h) of this Section  20,  or  (ii)  an
32    organization  licensee  has  its license suspended or revoked
33    under this Act,  the  Board,  upon  conducting  an  emergency
34    hearing  as  provided  for  in  this  Act,  may reaward on an
 
                            -34-     LRB093 05454 LRD 17090 a
 1    emergency basis pursuant to rules established by  the  Board,
 2    racing dates not accepted or the racing dates associated with
 3    any   suspension   or   revocation  period  to  one  or  more
 4    organization licensees, new applicants,  or  any  combination
 5    thereof,  upon terms and conditions that the Board determines
 6    are  in  the  best  interest   of   racing,   provided,   the
 7    organization   licensees  or  new  applicants  receiving  the
 8    awarded racing dates file an acceptance  of  those  reawarded
 9    racing  dates  as  required under paragraph (1) of subsection
10    (h) of this Section 20 and comply with the  other  provisions
11    of  this  Act.   The  Illinois  Administrative Procedures Act
12    shall not apply to the administrative procedures of the Board
13    in conducting the emergency hearing and the  reallocation  of
14    racing dates on an emergency basis.
15        (g)  (Blank).
16        (h)  The  Board  shall  send  the applicant a copy of its
17    formally executed order by certified mail  addressed  to  the
18    applicant  at  the  address  stated in his application, which
19    notice shall be mailed within 5 days of the date  the  formal
20    order is executed.
21        Each  applicant  notified  shall,  within  10  days after
22    receipt of the final executed order  of  the  Board  awarding
23    racing dates:
24             (1)  file with the Board an acceptance of such award
25        in the form prescribed by the Board;
26             (2)  pay  to the Board an additional amount equal to
27        $110 for each racing date awarded; and
28             (3)  file with  the  Board  the  bonds  required  in
29        Sections  21  and  25 at least 20 days prior to the first
30        day of each race meeting.
31    Upon compliance with the provisions of paragraphs  (1),  (2),
32    and (3) of this subsection (h), the applicant shall be issued
33    an organization license.
34        If  any  applicant  fails  to comply with this Section or
 
                            -35-     LRB093 05454 LRD 17090 a
 1    fails to pay the organization license fees  herein  provided,
 2    no organization license shall be issued to such applicant.
 3    (Source: P.A. 91-40, eff. 6-25-99.)

 4        (230 ILCS 5/25) (from Ch. 8, par. 37-25)
 5        Sec.   25.  Admissions  tax;  records  and  books;  bond;
 6    penalty.
 7        (a) There shall be paid to the  Board  at  such  time  or
 8    times  as  it shall prescribe, the sum of fifteen cents (15¢)
 9    for each person entering the grounds  or  enclosure  of  each
10    organization  licensee and inter-track wagering licensee upon
11    a ticket of admission except as provided in subsection (g) of
12    Section 27 of this Act.  If tickets are issued for more  than
13    one day then the sum of fifteen cents (15¢) shall be paid for
14    each person using such ticket on each day that the same shall
15    be  used.  Provided, however, that no charge shall be made on
16    tickets of admission issued to and in the name of  directors,
17    officers,  agents  or employees of the organization licensee,
18    or inter-track wagering licensee,  or  to  owners,  trainers,
19    jockeys,  drivers  and  their  employees  or to any person or
20    persons entering the grounds or enclosure for the transaction
21    of business  in  connection  with  such  race  meeting.   The
22    organization  licensee  or inter-track wagering licensee may,
23    if it desires, collect such amount from each ticket holder in
24    addition to the amount or amounts charged for such ticket  of
25    admission.
26        (b) Accurate records and books shall at all times be kept
27    and  maintained by the organization licensees and inter-track
28    wagering licensees showing the admission tickets  issued  and
29    used  on  each  racing day and the attendance thereat of each
30    horse racing meeting.   The  Board  or  its  duly  authorized
31    representative  or  representatives  shall  at all reasonable
32    times  have  access  to  the   admission   records   of   any
33    organization  licensee  and inter-track wagering licensee for
 
                            -36-     LRB093 05454 LRD 17090 a
 1    the  purpose  of  examining  and  checking   the   same   and
 2    ascertaining  whether or not the proper amount has been or is
 3    being paid the State of  Illinois  as  herein  provided.  The
 4    Board  shall  also  require, before issuing any license, that
 5    the licensee shall execute and deliver to it a bond,  payable
 6    to  the State of Illinois, in such sum as it shall determine,
 7    not, however, in excess of fifty thousand dollars  ($50,000),
 8    with  a  surety or sureties to be approved by it, conditioned
 9    for the payment of all sums due and payable or  collected  by
10    it  under  this  Section upon admission fees received for any
11    particular racing meetings.  The Board may also from time  to
12    time  require  sworn  statements  of the number or numbers of
13    such admissions and may  prescribe  blanks  upon  which  such
14    reports   shall   be  made.   Any  organization  licensee  or
15    inter-track wagering licensee failing or  refusing to pay the
16    amount found to be due as herein provided,  shall  be  deemed
17    guilty  of  a  business  offense and upon conviction shall be
18    punished by a fine of not more  than  five  thousand  dollars
19    ($5,000) in addition to the amount due from such organization
20    licensee or inter-track wagering licensee as herein provided.
21    All  fines  paid  into  court  by an organization licensee or
22    inter-track wagering licensee found guilty of violating  this
23    Section  shall  be  transmitted and paid over by the clerk of
24    the court to the Board.
25        (c)  In addition  to  the  admission  tax  imposed  under
26    subsection (a), a tax is imposed on admissions at the rate of
27    $2  per person for the first 1,500,000 persons admitted by an
28    organization licensee per year and  $3  per  person  for  all
29    persons  admitted by that licensee in excess of 1,500,000 per
30    year. The tax is imposed upon the organization licensee.
31             (1)  The  admission  tax  shall  be  paid  for  each
32        admission.
33             (2)  An organization  licensee  may  issue  tax-free
34        passes to actual and necessary officials and employees of
 
                            -37-     LRB093 05454 LRD 17090 a
 1        the  licensee  and  other  persons  associated  with race
 2        meeting operations.
 3             (3)  The number and issuance of tax-free  passes  is
 4        subject  to  the  rules  of  the Board, and a list of all
 5        persons to whom the tax-free passes are issued  shall  be
 6        filed with the Board.
 7             (4)  The  organization licensee shall pay the entire
 8        admission tax to the Board. Such payments shall  be  made
 9        daily.  Accompanying  each  payment  shall be a return on
10        forms provided by the Board, which  shall  include  other
11        information regarding admission as the Board may require.
12        Failure to submit either the payment or the return within
13        the specified time may result in suspension or revocation
14        of the organization licensee's license.
15             (5)  The  Board  shall  administer  and  collect the
16        admission tax imposed by this subsection, to  the  extent
17        practicable,  in  a manner consistent with the provisions
18        of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 6, 6a,  6b,
19        6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
20        Section  3-7 of the Uniform Penalty and Interest Act. All
21        moneys collected by the Board shall be deposited into the
22        State Gaming Fund and shall be distributed as provided in
23        subsection (d).
24        (d)  From the  tax  imposed  under  subsection  (c),  the
25    municipality  in  which an organization licensee's race track
26    is located or, if the race track  is  not  located  within  a
27    municipality,  the  county in which the race track is located
28    shall receive, subject to appropriation, $1 for  each  person
29    who  enters  the  race track. For each admission in excess of
30    1,500,000 in a year, from the tax  imposed  under  subsection
31    (c),  the  county  in  which  the race track is located shall
32    receive, subject to appropriation, $0.15, which shall  be  in
33    addition  to  any  other moneys paid to the county under this
34    Section, and  $0.20  shall  be  paid  into  the  Agricultural
 
                            -38-     LRB093 05454 LRD 17090 a
 1    Premium  Fund and $0.15 shall be paid into the Illinois Urban
 2    Development Authority Fund.
 3    (Source: P.A. 88-495; 89-16, eff. 5-30-95.)

 4        (230 ILCS 5/26) (from Ch. 8, par. 37-26)
 5        Sec. 26. Wagering.
 6        (a)  Any  licensee  may   conduct   and   supervise   the
 7    pari-mutuel system of wagering, as defined in Section 3.12 of
 8    this   Act,   on   horse   races  conducted  by  an  Illinois
 9    organization licensee or conducted at a racetrack located  in
10    another  state  or  country  and  televised  in  Illinois  in
11    accordance  with  subsection  (g)  of Section 26 of this Act.
12    Subject to the prior consent  of  the  Board,  licensees  may
13    supplement  any  pari-mutuel  pool  in  order  to guarantee a
14    minimum distribution.  Such pari-mutuel  method  of  wagering
15    shall  not,  under  any  circumstances if conducted under the
16    provisions of this Act, be held or construed to be  unlawful,
17    other statutes of this State to the contrary notwithstanding.
18    Subject  to  rules  for  advance  wagering promulgated by the
19    Board, any licensee may accept wagers in advance of  the  day
20    of the race wagered upon occurs.
21        (b)  Except as otherwise provided in Section 56, no other
22    method of betting, pool making, wagering or gambling shall be
23    used or permitted by the licensee.  Each licensee may retain,
24    subject to the payment of all applicable taxes and purses, an
25    amount   not  to  exceed  17%  of  all  money  wagered  under
26    subsection (a) of this Section, except as  may  otherwise  be
27    permitted under this Act.
28        (b-5)  An   individual   may  place  a  wager  under  the
29    pari-mutuel system  from  any  licensed  location  authorized
30    under this Act provided that wager is electronically recorded
31    in  the  manner  described  in  Section 3.12 of this Act. Any
32    wager made electronically by an individual  while  physically
33    on  the  premises  of a licensee shall be deemed to have been
 
                            -39-     LRB093 05454 LRD 17090 a
 1    made at the premises of that licensee.
 2        (c)  Until January 1, 2000, the sum held by any  licensee
 3    for  payment of outstanding pari-mutuel tickets, if unclaimed
 4    prior to December 31 of the next year, shall be  retained  by
 5    the  licensee  for  payment  of such tickets until that date.
 6    Within 10 days thereafter, the balance of such sum  remaining
 7    unclaimed,  less any uncashed supplements contributed by such
 8    licensee   for   the   purpose   of   guaranteeing    minimum
 9    distributions  of  any pari-mutuel pool, shall be paid to the
10    Illinois Veterans' Rehabilitation Fund of the State treasury,
11    except as provided in subsection (g) of Section  27  of  this
12    Act.
13        (c-5)  Beginning  January  1,  2000,  the sum held by any
14    licensee for payment of outstanding pari-mutuel  tickets,  if
15    unclaimed  prior  to  December  31 of the next year, shall be
16    retained by the licensee for payment of  such  tickets  until
17    that  date.   Within  10 days thereafter, the balance of such
18    sum  remaining  unclaimed,  less  any  uncashed   supplements
19    contributed  by such licensee for the purpose of guaranteeing
20    minimum distributions  of  any  pari-mutuel  pool,  shall  be
21    evenly  distributed  to the purse account of the organization
22    licensee and the organization licensee.
23        (d)  A pari-mutuel ticket shall be honored until December
24    31 of the next calendar year, and the licensee shall pay  the
25    same  and  may charge the amount thereof against unpaid money
26    similarly accumulated on account of pari-mutuel  tickets  not
27    presented for payment.
28        (e)  No  licensee shall knowingly permit any minor, other
29    than an employee of  such  licensee  or  an  owner,  trainer,
30    jockey,  driver, or employee thereof, to be admitted during a
31    racing program unless accompanied by a parent or guardian, or
32    any minor to  be  a  patron  of  the  pari-mutuel  system  of
33    wagering conducted or supervised by it.  The admission of any
34    unaccompanied  minor,  other than an employee of the licensee
 
                            -40-     LRB093 05454 LRD 17090 a
 1    or an owner, trainer, jockey, driver, or employee thereof  at
 2    a race track is a Class C misdemeanor.
 3        (f)  Notwithstanding the other provisions of this Act, an
 4    organization  licensee may contract with an entity in another
 5    state or country to  permit  any  legal  wagering  entity  in
 6    another  state or country to accept wagers solely within such
 7    other state or country on races conducted by the organization
 8    licensee in this State.  Beginning  January  1,  2000,  these
 9    wagers shall not be subject to State taxation.  Until January
10    1,  2000, when the out-of-State entity conducts a pari-mutuel
11    pool separate from the organization licensee, a privilege tax
12    equal to 7 1/2% of all monies received  by  the  organization
13    licensee  from entities in other states or countries pursuant
14    to such contracts is imposed on  the  organization  licensee,
15    and such privilege tax shall be remitted to the Department of
16    Revenue  within  48  hours  of receipt of the moneys from the
17    simulcast.  When the out-of-State entity conducts a  combined
18    pari-mutuel  pool  with  the  organization  licensee, the tax
19    shall be 10% of  all  monies  received  by  the  organization
20    licensee  with  25%  of  the receipts from this 10% tax to be
21    distributed to the county in which the race was conducted.
22        An organization licensee may permit one or  more  of  its
23    races  to be utilized for pari-mutuel wagering at one or more
24    locations in other states and may transmit audio  and  visual
25    signals of races the organization licensee conducts to one or
26    more  locations  outside  the  State  or country and may also
27    permit pari-mutuel pools in other states or countries  to  be
28    combined  with  its  gross  or  net  wagering  pools  or with
29    wagering pools established by other states.
30        (g)  A host track may accept interstate simulcast  wagers
31    on  horse  races  conducted  in other states or countries and
32    shall control the number of signals and types  of  breeds  of
33    racing  in  its simulcast program, subject to the disapproval
34    of the Board.  The Board may  prohibit  a  simulcast  program
 
                            -41-     LRB093 05454 LRD 17090 a
 1    only  if  it  finds  that  the  simulcast  program is clearly
 2    adverse to the integrity of racing.  The host track simulcast
 3    program shall include  the  signal  of  live  racing  of  all
 4    organization  licensees.  All  non-host licensees shall carry
 5    the host track simulcast program and  accept  wagers  on  all
 6    races  included  as  part of the simulcast program upon which
 7    wagering is permitted. The costs and  expenses  of  the  host
 8    track  and  non-host  licensees  associated  with  interstate
 9    simulcast wagering, other than the interstate commission fee,
10    shall  be  borne by the host track and all non-host licensees
11    incurring these costs. The interstate  commission  fee  shall
12    not  exceed 5% of Illinois handle on the interstate simulcast
13    race or races without prior approval of the Board.  The Board
14    shall promulgate rules under which it may  permit  interstate
15    commission  fees  in excess of 5%.  The interstate commission
16    fee  and  other  fees  charged  by  the  sending   racetrack,
17    including,  but not limited to, satellite decoder fees, shall
18    be uniformly applied to  the  host  track  and  all  non-host
19    licensees.
20             (1)  Between the hours of 6:30 a.m. and 6:30 p.m. an
21        intertrack  wagering  licensee  other than the host track
22        may supplement the  host  track  simulcast  program  with
23        additional  simulcast  races  or  race programs, provided
24        that between January 1 and the third Friday  in  February
25        of any year, inclusive, if no live thoroughbred racing is
26        occurring   in   Illinois   during   this   period,  only
27        thoroughbred  races  may   be   used   for   supplemental
28        interstate  simulcast purposes.  The Board shall withhold
29        approval for a supplemental interstate simulcast only  if
30        it  finds  that  the  simulcast is clearly adverse to the
31        integrity of racing.  A supplemental interstate simulcast
32        may be transmitted from an intertrack  wagering  licensee
33        to  its  affiliated  non-host  licensees.  The interstate
34        commission fee for a  supplemental  interstate  simulcast
 
                            -42-     LRB093 05454 LRD 17090 a
 1        shall be paid by the non-host licensee and its affiliated
 2        non-host licensees receiving the simulcast.
 3             (2)  Between the hours of 6:30 p.m. and 6:30 a.m. an
 4        intertrack  wagering  licensee  other than the host track
 5        may receive supplemental interstate simulcasts only  with
 6        the  consent  of  the  host track, except when  the Board
 7        finds that  the  simulcast  is  clearly  adverse  to  the
 8        integrity   of   racing.    Consent  granted  under  this
 9        paragraph (2) to any intertrack wagering  licensee  shall
10        be   deemed  consent  to  all  non-host  licensees.   The
11        interstate commission fee for the supplemental interstate
12        simulcast shall be paid  by  all  participating  non-host
13        licensees.
14             (3)  Each  licensee  conducting interstate simulcast
15        wagering may  retain,  subject  to  the  payment  of  all
16        applicable  taxes and the purses, an amount not to exceed
17        17% of all money wagered.  If any licensee conducts   the
18        pari-mutuel   system   wagering  on  races  conducted  at
19        racetracks in another state or country, each such race or
20        race program shall be considered a  separate  racing  day
21        for  the  purpose  of  determining  the  daily handle and
22        computing the privilege  tax  of  that  daily  handle  as
23        provided  in  subsection (a) of Section 27. Until January
24        1, 2000, from the sums permitted to be retained  pursuant
25        to  this  subsection,  each  intertrack wagering location
26        licensee shall pay 1% of the pari-mutuel  handle  wagered
27        on  simulcast wagering to the Horse Racing Tax Allocation
28        Fund, subject to the provisions of  subparagraph  (B)  of
29        paragraph  (11)  of  subsection (h) of Section 26 of this
30        Act.
31             (4)  A licensee who receives an interstate simulcast
32        may combine its gross or net  pools  with  pools  at  the
33        sending  racetracks  pursuant to rules established by the
34        Board.  All licensees combining their gross  pools  at  a
 
                            -43-     LRB093 05454 LRD 17090 a
 1        sending racetrack shall adopt the take-out percentages of
 2        the  sending  racetrack.  A licensee may also establish a
 3        separate pool and takeout structure for wagering purposes
 4        on races conducted at race tracks outside of the State of
 5        Illinois.  The licensee  may  permit  pari-mutuel  wagers
 6        placed  in  other states or countries to be combined with
 7        its gross or net wagering pools or other wagering pools.
 8             (5)  After the payment of the interstate  commission
 9        fee  (except  for  the  interstate  commission  fee  on a
10        supplemental interstate simulcast, which shall be paid by
11        the host track and by each non-host licensee through  the
12        host-track)  and  all  applicable  State and local taxes,
13        except as provided in subsection (g)  of  Section  27  of
14        this Act, the remainder of moneys retained from simulcast
15        wagering  pursuant  to  this  subsection (g), and Section
16        26.2 shall be divided as follows:
17                  (A)  For interstate simulcast wagers made at  a
18             host  track, 50% to the host track and 50% to purses
19             at the host track.
20                  (B)  For wagers placed on interstate  simulcast
21             races,   supplemental   simulcasts   as  defined  in
22             subparagraphs (1) and  (2),  and  separately  pooled
23             races  conducted  outside  of  the State of Illinois
24             made at a non-host licensee, 25% to the host  track,
25             25%  to the non-host licensee, and 50% to the purses
26             at the host track.
27             (6)  Notwithstanding any provision in  this  Act  to
28        the   contrary,   non-host  licensees  who  derive  their
29        licenses  from  a  track  located  in  a  county  with  a
30        population in excess of  230,000  and  that  borders  the
31        Mississippi  River  may  receive  supplemental interstate
32        simulcast races at all times subject to  Board  approval,
33        which  shall  be  withheld  only  upon  a  finding that a
34        supplemental interstate simulcast is clearly  adverse  to
 
                            -44-     LRB093 05454 LRD 17090 a
 1        the integrity of racing.
 2             (7)  Notwithstanding  any  provision  of this Act to
 3        the contrary, after payment of all applicable  State  and
 4        local  taxes  and  interstate  commission  fees, non-host
 5        licensees who derive their licenses from a track  located
 6        in  a  county  with a population in excess of 230,000 and
 7        that borders the Mississippi River shall  retain  50%  of
 8        the  retention from interstate simulcast wagers and shall
 9        pay 50% to purses at the track from  which  the  non-host
10        licensee derives its license as follows:
11                  (A)  Between  January 1 and the third Friday in
12             February, inclusive, if no live thoroughbred  racing
13             is  occurring  in  Illinois during this period, when
14             the interstate simulcast is a standardbred race, the
15             purse share to its standardbred purse account;
16                  (B)  Between January 1 and the third Friday  in
17             February,  inclusive, if no live thoroughbred racing
18             is occurring in Illinois during this period, and the
19             interstate simulcast is  a  thoroughbred  race,  the
20             purse  share  to its interstate simulcast purse pool
21             to be  distributed  under  paragraph  (10)  of  this
22             subsection (g);
23                  (C)  Between  January 1 and the third Friday in
24             February, inclusive, if live thoroughbred racing  is
25             occurring  in  Illinois,  between 6:30 a.m. and 6:30
26             p.m. the purse share from wagers  made  during  this
27             time  period  to  its thoroughbred purse account and
28             between 6:30 p.m. and 6:30 a.m. the purse share from
29             wagers  made  during  this  time   period   to   its
30             standardbred purse accounts;
31                  (D)  Between the third Saturday in February and
32             December  31,  when  the interstate simulcast occurs
33             between the hours of 6:30 a.m. and  6:30  p.m.,  the
34             purse share to its thoroughbred purse account;
 
                            -45-     LRB093 05454 LRD 17090 a
 1                  (E)  Between the third Saturday in February and
 2             December  31,  when  the interstate simulcast occurs
 3             between the hours of 6:30 p.m. and  6:30  a.m.,  the
 4             purse share to its standardbred purse account.
 5             (7.1)  Notwithstanding  any  other provision of this
 6        Act  to  the  contrary,  if  no  standardbred  racing  is
 7        conducted at a racetrack located in Madison County during
 8        any calendar year beginning on or after January 1,  2002,
 9        all  moneys  derived  by  that  racetrack  from simulcast
10        wagering and inter-track wagering that (1) are to be used
11        for purses and (2) are generated  between  the  hours  of
12        6:30  p.m.  and 6:30 a.m. during that calendar year shall
13        be paid as follows:
14                  (A)  If the licensee that conducts horse racing
15             at that racetrack requests from the Board  at  least
16             as  many  racing dates as were conducted in calendar
17             year 2000, 80% shall be  paid  to  its  thoroughbred
18             purse account; and
19                  (B)  Twenty percent shall be deposited into the
20             Illinois  Colt  Stakes  Purse  Distribution Fund and
21             shall be paid to purses for standardbred  races  for
22             Illinois  conceived  and  foaled horses conducted at
23             any county fairgrounds. The  moneys  deposited  into
24             the  Fund pursuant to this subparagraph (B) shall be
25             deposited within 2 weeks after  the  day  they  were
26             generated,  shall  be in addition to and not in lieu
27             of any other  moneys  paid  to  standardbred  purses
28             under  this  Act,  and  shall not be commingled with
29             other  moneys  paid  into  that  Fund.   The  moneys
30             deposited pursuant to this subparagraph (B) shall be
31             allocated  as  provided   by   the   Department   of
32             Agriculture,  with  the advice and assistance of the
33             Illinois Standardbred Breeders Fund Advisory Board.
34             (7.2)  Notwithstanding any other provision  of  this
 
                            -46-     LRB093 05454 LRD 17090 a
 1        Act  to  the  contrary,  if  no  thoroughbred  racing  is
 2        conducted at a racetrack located in Madison County during
 3        any  calendar year beginning on or after January 1, 2002,
 4        all moneys  derived  by  that  racetrack  from  simulcast
 5        wagering and inter-track wagering that (1) are to be used
 6        for  purses  and  (2)  are generated between the hours of
 7        6:30 a.m. and 6:30 p.m. during that calendar  year  shall
 8        be deposited as follows:
 9                  (A)  If the licensee that conducts horse racing
10             at  that  racetrack requests from the Board at least
11             as many racing dates as were conducted  in  calendar
12             year   2000,   80%   shall  be  deposited  into  its
13             standardbred purse account; and
14                  (B)  Twenty percent shall be deposited into the
15             Illinois  Colt  Stakes  Purse   Distribution   Fund.
16             Moneys deposited into the Illinois Colt Stakes Purse
17             Distribution  Fund pursuant to this subparagraph (B)
18             shall be  paid  to  Illinois  conceived  and  foaled
19             thoroughbred  breeders' programs and to thoroughbred
20             purses for races conducted at any county fairgrounds
21             for Illinois conceived  and  foaled  horses  at  the
22             discretion  of  the  Department of Agriculture, with
23             the  advice   and   assistance   of   the   Illinois
24             Thoroughbred  Breeders  Fund  Advisory  Board.   The
25             moneys deposited into the Illinois Colt Stakes Purse
26             Distribution  Fund pursuant to this subparagraph (B)
27             shall be deposited within 2 weeks after the day they
28             were generated, shall be in addition to and  not  in
29             lieu of any other moneys paid to thoroughbred purses
30             under  this  Act,  and  shall not be commingled with
31             other moneys deposited into that Fund.
32             (7.3)  If no live standardbred racing  is  conducted
33        at a racetrack located in Madison County in calendar year
34        2000 or 2001, an organization licensee who is licensed to
 
                            -47-     LRB093 05454 LRD 17090 a
 1        conduct  horse  racing  at  that  racetrack shall, before
 2        January 1, 2002, pay all moneys  derived  from  simulcast
 3        wagering  and inter-track wagering in calendar years 2000
 4        and 2001 and paid into the licensee's standardbred  purse
 5        account as follows:
 6                  (A)  Eighty    percent   to   that   licensee's
 7             thoroughbred  purse   account   to   be   used   for
 8             thoroughbred purses; and
 9                  (B)  Twenty percent to the Illinois Colt Stakes
10             Purse Distribution Fund.
11             Failure  to  make  the  payment to the Illinois Colt
12        Stakes Purse Distribution Fund  before  January  1,  2002
13        shall   result   in   the  immediate  revocation  of  the
14        licensee's  organization  license,  inter-track  wagering
15        license, and inter-track wagering location license.
16             Moneys paid into  the  Illinois  Colt  Stakes  Purse
17        Distribution  Fund pursuant to this paragraph (7.3) shall
18        be paid to purses for  standardbred  races  for  Illinois
19        conceived  and  foaled  horses  conducted  at  any county
20        fairgrounds. Moneys paid into the  Illinois  Colt  Stakes
21        Purse  Distribution Fund pursuant to this paragraph (7.3)
22        shall  be  used  as  determined  by  the  Department   of
23        Agriculture,  with  the  advice  and  assistance  of  the
24        Illinois Standardbred Breeders Fund Advisory Board, shall
25        be  in  addition  to  and not in lieu of any other moneys
26        paid to standardbred purses under this Act, and shall not
27        be commingled with any other moneys paid into that Fund.
28             (7.4)  If live standardbred racing is conducted at a
29        racetrack located  in  Madison  County  at  any  time  in
30        calendar  year  2001  before  the  payment required under
31        paragraph (7.3) has been made, the organization  licensee
32        who is licensed to conduct racing at that racetrack shall
33        pay  all  moneys derived by that racetrack from simulcast
34        wagering and inter-track wagering during  calendar  years
 
                            -48-     LRB093 05454 LRD 17090 a
 1        2000  and 2001 that (1) are to be used for purses and (2)
 2        are generated between the hours of  6:30  p.m.  and  6:30
 3        a.m.  during  2000  or  2001  to  the  standardbred purse
 4        account at that racetrack to  be  used  for  standardbred
 5        purses.
 6             (8)  Notwithstanding  any  provision  in this Act to
 7        the contrary,  an  organization  licensee  from  a  track
 8        located  in  a  county  with  a  population  in excess of
 9        230,000 and that borders the Mississippi  River  and  its
10        affiliated  non-host  licensees  shall not be entitled to
11        share in any retention generated on  racing,  inter-track
12        wagering,  or  simulcast  wagering  at any other Illinois
13        wagering facility.
14             (8.1)  Notwithstanding any provisions in this Act to
15        the contrary, if 2 organization licensees are  conducting
16        standardbred race meetings concurrently between the hours
17        of  6:30  p.m.  and  6:30  a.m.,  after  payment  of  all
18        applicable   State   and   local   taxes  and  interstate
19        commission fees, the remainder  of  the  amount  retained
20        from  simulcast  wagering  otherwise  attributable to the
21        host track and to host track purses shall be split  daily
22        between  the  2  organization licensees and the purses at
23        the tracks of the 2 organization licensees, respectively,
24        based on each organization licensee's share of the  total
25        live  handle  for  that day, provided that this provision
26        shall not apply to any non-host licensee that derives its
27        license  from  a  track  located  in  a  county  with   a
28        population  in  excess  of  230,000  and that borders the
29        Mississippi River.
30             (9)  (Blank).
31             (10)  (Blank).
32             (11)  (Blank).
33             (12)  The Board shall have authority to  compel  all
34        host  tracks to receive the simulcast of any or all races
 
                            -49-     LRB093 05454 LRD 17090 a
 1        conducted at the Springfield or DuQuoin State fairgrounds
 2        and include all such races as  part  of  their  simulcast
 3        programs.
 4             (13)  (Blank).  Notwithstanding  any other provision
 5        of this  Act,  in  the  event  that  the  total  Illinois
 6        pari-mutuel   handle  on  Illinois  horse  races  at  all
 7        wagering facilities in any calendar year is less than 75%
 8        of the total  Illinois  pari-mutuel  handle  on  Illinois
 9        horse  races at all such wagering facilities for calendar
10        year 1994, then each wagering facility that has an annual
11        total Illinois pari-mutuel handle on Illinois horse races
12        that is less than 75% of the total  Illinois  pari-mutuel
13        handle  on Illinois horse races at such wagering facility
14        for calendar year 1994, shall be  permitted  to  receive,
15        from any amount otherwise payable to the purse account at
16        the  race  track  with  which  the  wagering  facility is
17        affiliated in the succeeding  calendar  year,  an  amount
18        equal  to  2%  of  the  differential  in  total  Illinois
19        pari-mutuel   handle  on  Illinois  horse  races  at  the
20        wagering facility between that calendar year in  question
21        and  1994  provided,  however,  that  a wagering facility
22        shall not be entitled to any such payment until the Board
23        certifies in writing to the wagering facility the  amount
24        to which the wagering facility is entitled and a schedule
25        for payment of the amount to the wagering facility, based
26        on:  (i)  the  racing  dates  awarded  to  the race track
27        affiliated  with  the  wagering   facility   during   the
28        succeeding  year;  (ii) the sums available or anticipated
29        to be available in the purse account of  the  race  track
30        affiliated  with  the wagering facility for purses during
31        the  succeeding  year;  and  (iii)  the  need  to  ensure
32        reasonable purse levels during the  payment  period.  The
33        Board's  certification  shall  be  provided no later than
34        January 31  of  the  succeeding  year.  In  the  event  a
 
                            -50-     LRB093 05454 LRD 17090 a
 1        wagering  facility  entitled  to  a  payment  under  this
 2        paragraph  (13)  is  affiliated  with  a  race track that
 3        maintains  purse  accounts  for  both  standardbred   and
 4        thoroughbred  racing,  the  amount  to  be  paid  to  the
 5        wagering  facility  shall  be  divided between each purse
 6        account pro rata, based on the amount of Illinois  handle
 7        on   Illinois   standardbred   and   thoroughbred  racing
 8        respectively at the wagering facility during the previous
 9        calendar  year.  Annually,  the  General  Assembly  shall
10        appropriate sufficient funds  from  the  General  Revenue
11        Fund  to  the  Department of Agriculture for payment into
12        the thoroughbred  and  standardbred  horse  racing  purse
13        accounts at Illinois pari-mutuel tracks.  The amount paid
14        to  each  purse  account shall be the amount certified by
15        the Illinois Racing Board in  January to  be  transferred
16        from  each  account  to  each eligible racing facility in
17        accordance with the provisions of this Section.
18        (h)  The Board may approve and  license  the  conduct  of
19    inter-track  wagering  and  simulcast wagering by inter-track
20    wagering  licensees   and   inter-track   wagering   location
21    licensees subject to the following terms and conditions:
22             (1)  Any  person  licensed to conduct a race meeting
23        (i) at a track where 60  or  more  days  of  racing  were
24        conducted  during the immediately preceding calendar year
25        or where over the 5 immediately preceding calendar  years
26        an  average  of  30 or more days of racing were conducted
27        annually may be issued an inter-track  wagering  license;
28        (ii)  at  a  track located in a county that is bounded by
29        the Mississippi River, which has  a  population  of  less
30        than  150,000 according to the 1990 decennial census, and
31        an average of at least 60 days of racing per year between
32        1985 and 1993  may  be  issued  an  inter-track  wagering
33        license;  or  (iii)  at a track located in Madison County
34        that conducted at least 100 days of  live  racing  during
 
                            -51-     LRB093 05454 LRD 17090 a
 1        the  immediately preceding calendar year may be issued an
 2        inter-track wagering license, unless a lesser schedule of
 3        live racing is the result of (A)  weather,  unsafe  track
 4        conditions,  or  other  acts  of  God;  (B)  an agreement
 5        between the organization licensee  and  the  associations
 6        representing  the  largest  number  of  owners, trainers,
 7        jockeys, or standardbred drivers who race horses at  that
 8        organization  licensee's racing meeting; or (C) a finding
 9        by the Board of extraordinary circumstances and  that  it
10        was  in  the best interest of the public and the sport to
11        conduct fewer than 100 days  of  live  racing.  Any  such
12        person  having  operating  control of the racing facility
13        may also receive up to 6  inter-track  wagering  location
14        licenses.  In  no  event  shall  more  than 6 inter-track
15        wagering locations be established for each eligible  race
16        track,  except  that  an eligible race track located in a
17        county that has a population of  more  than  230,000  and
18        that is bounded by the Mississippi River may establish up
19        to  7  inter-track wagering locations. An application for
20        said license shall be filed with the Board prior to  such
21        dates  as may be fixed by the Board.  With an application
22        for an inter-track wagering location license there  shall
23        be delivered to the Board a certified check or bank draft
24        payable  to the order of the Board for an amount equal to
25        $500. The application shall be on  forms  prescribed  and
26        furnished  by  the  Board.   The application shall comply
27        with all other rules, regulations and conditions  imposed
28        by the Board in connection therewith.
29             (2)  The  Board  shall examine the applications with
30        respect to their conformity with this Act and  the  rules
31        and  regulations imposed by the Board.  If found to be in
32        compliance with the Act and rules and regulations of  the
33        Board,  the  Board  may  then  issue a license to conduct
34        inter-track  wagering  and  simulcast  wagering  to  such
 
                            -52-     LRB093 05454 LRD 17090 a
 1        applicant.  All such applications shall be acted upon  by
 2        the  Board at a meeting to be held on such date as may be
 3        fixed by the Board.
 4             (3)  In granting  licenses  to  conduct  inter-track
 5        wagering and simulcast wagering, the Board shall give due
 6        consideration  to  the  best  interests of the public, of
 7        horse racing, and of maximizing revenue to the State.
 8             (4)  Prior to the issuance of a license  to  conduct
 9        inter-track   wagering   and   simulcast   wagering,  the
10        applicant shall file with the Board a bond payable to the
11        State of Illinois in the sum of $50,000, executed by  the
12        applicant and a surety company or companies authorized to
13        do  business  in this State, and conditioned upon (i) the
14        payment by the licensee of all taxes due under Section 27
15        or 27.1 and any other monies due and payable  under  this
16        Act,   and   (ii)  distribution  by  the  licensee,  upon
17        presentation of the winning ticket  or  tickets,  of  all
18        sums payable to the patrons of pari-mutuel pools.
19             (5)  Each  license  to  conduct inter-track wagering
20        and simulcast wagering shall specify the person  to  whom
21        it  is  issued,  the  dates  on  which  such  wagering is
22        permitted, and the track or location where  the  wagering
23        is to be conducted.
24             (6)  All  wagering  under such license is subject to
25        this Act and to the rules and regulations  from  time  to
26        time  prescribed  by  the  Board,  and every such license
27        issued by the Board  shall  contain  a  recital  to  that
28        effect.
29             (7)  An inter-track wagering licensee or inter-track
30        wagering location licensee may accept wagers at the track
31        or  location  where  it  is  licensed,  or  as  otherwise
32        provided under this Act.
33             (8)  Inter-track   wagering  or  simulcast  wagering
34        shall not be conducted at any track  less  than  5  miles
 
                            -53-     LRB093 05454 LRD 17090 a
 1        from a 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  which are either within 90
 6        miles  of  that   race   track   where   the   particular
 7        organization  licensee  is licensed to conduct racing, or
 8        within 135 miles of that race track where the  particular
 9        organization  licensee  is  licensed to conduct racing in
10        the case of race tracks in counties of less than  400,000
11        that  were operating on or before June 1, 1986.  However,
12        inter-track wagering and simulcast wagering shall not  be
13        conducted  by  those  licensees  at any location within 5
14        miles of any race track at which a horse race meeting has
15        been licensed in the  current  year,  unless  the  person
16        having operating control of such race track has given its
17        written  consent  to  such  inter-track wagering location
18        licensees, which consent must be filed with the Board  at
19        or prior to the time application is made.
20             (8.2)  Inter-track  wagering  or  simulcast wagering
21        shall  not  be  conducted  by  an  inter-track   wagering
22        location  licensee  at any location within 500 feet of an
23        existing church or existing school, nor within  500  feet
24        of  the  residences  of  more  than  50 registered voters
25        without receiving written permission from a  majority  of
26        the  registered  voters  at such residences. Such written
27        permission statements shall be filed with the Board.  The
28        distance of 500 feet shall be  measured  to  the  nearest
29        part of any building used for worship services, education
30        programs, residential purposes, or conducting inter-track
31        wagering  by  an  inter-track wagering location licensee,
32        and not to  property  boundaries.   However,  inter-track
33        wagering or simulcast wagering may be conducted at a site
34        within  500  feet of a church, school or residences of 50
 
                            -54-     LRB093 05454 LRD 17090 a
 1        or more registered  voters  if  such  church,  school  or
 2        residences  have  been  erected  or  established, or such
 3        voters have been registered, after the Board  issues  the
 4        original  inter-track  wagering  location  license at the
 5        site in question. Inter-track wagering location licensees
 6        may conduct inter-track wagering and  simulcast  wagering
 7        only   in   areas   that  are  zoned  for  commercial  or
 8        manufacturing purposes or in areas for  which  a  special
 9        use  has  been  approved  by  the local zoning authority.
10        However, no license to conduct inter-track  wagering  and
11        simulcast  wagering  shall  be  granted by the Board with
12        respect to any inter-track wagering location  within  the
13        jurisdiction  of any local zoning authority which has, by
14        ordinance or by resolution, prohibited the  establishment
15        of   an   inter-track   wagering   location   within  its
16        jurisdiction.    However,   inter-track   wagering    and
17        simulcast  wagering  may  be  conducted at a site if such
18        ordinance  or  resolution  is  enacted  after  the  Board
19        licenses  the  original  inter-track  wagering   location
20        licensee for the site in question.
21             (9)  (Blank).
22             (10)  An   inter-track   wagering   licensee  or  an
23        inter-track  wagering  location  licensee   may   retain,
24        subject  to  the  payment  of the privilege taxes and the
25        purses, an amount not to exceed 17% of all money wagered.
26        Each program of  racing  conducted  by  each  inter-track
27        wagering   licensee   or  inter-track  wagering  location
28        licensee shall be considered a separate  racing  day  for
29        the purpose of determining the daily handle and computing
30        the privilege tax or pari-mutuel tax on such daily handle
31        as provided in Section 27.
32             (10.1)  Except  as  provided  in  subsection  (g) of
33        Section 27 of this  Act,  inter-track  wagering  location
34        licensees  shall pay 1% of the pari-mutuel handle at each
 
                            -55-     LRB093 05454 LRD 17090 a
 1        location to the municipality in which  such  location  is
 2        situated  and  1%  of  the  pari-mutuel  handle  at  each
 3        location   to  the  county  in  which  such  location  is
 4        situated.  In the  event  that  an  inter-track  wagering
 5        location  licensee  is situated in an unincorporated area
 6        of  a  county,  such  licensee  shall  pay  2%   of   the
 7        pari-mutuel handle from such location to such county.
 8             (10.2)  Notwithstanding  any other provision of this
 9        Act, with respect to intertrack wagering at a race  track
10        located  in  a  county that has a population of more than
11        230,000 and that is  bounded  by  the  Mississippi  River
12        ("the first race track"), or at a facility operated by an
13        inter-track  wagering  licensee  or  inter-track wagering
14        location licensee  that  derives  its  license  from  the
15        organization licensee that operates the first race track,
16        on  races  conducted  at the first race track or on races
17        conducted   at   another   Illinois   race   track    and
18        simultaneously  televised to the first race track or to a
19        facility operated by an inter-track wagering licensee  or
20        inter-track  wagering  location licensee that derives its
21        license from the organization licensee that operates  the
22        first  race  track,  those  moneys  shall be allocated as
23        follows:
24                  (A)  That portion  of  all  moneys  wagered  on
25             standardbred  racing that is required under this Act
26             to be paid to purses shall be  paid  to  purses  for
27             standardbred races.
28                  (B)  That  portion  of  all  moneys  wagered on
29             thoroughbred racing that is required under this  Act
30             to  be  paid  to  purses shall be paid to purses for
31             thoroughbred races.
32             (11) (A)  After  payment   of   the   privilege   or
33        pari-mutuel  tax,  any  other  applicable  taxes, and the
34        costs and expenses  in  connection  with  the  gathering,
 
                            -56-     LRB093 05454 LRD 17090 a
 1        transmission,  and dissemination of all data necessary to
 2        the conduct of inter-track wagering, the remainder of the
 3        monies retained under either Section 26 or  Section  26.2
 4        of  this  Act  by  the  inter-track  wagering licensee on
 5        inter-track wagering shall be allocated with  50%  to  be
 6        split  between  the  2 participating licensees and 50% to
 7        purses, except that an intertrack wagering licensee  that
 8        derives its license from a track located in a county with
 9        a  population  in  excess of 230,000 and that borders the
10        Mississippi  River  shall  not   divide   any   remaining
11        retention  with  the  Illinois organization licensee that
12        provides the race or races, and  an  intertrack  wagering
13        licensee  that  accepts  wagers  on races conducted by an
14        organization licensee that conducts  a  race  meet  in  a
15        county  with  a  population in excess of 230,000 and that
16        borders  the  Mississippi  River  shall  not  divide  any
17        remaining retention with that organization licensee.
18             (B)  From the sums permitted to be retained pursuant
19        to this Act each inter-track wagering  location  licensee
20        shall  pay  (i)  the  privilege or pari-mutuel tax to the
21        State; (ii) 4.75% of the pari-mutuel handle on intertrack
22        wagering at such location on races as purses, except that
23        an intertrack wagering location licensee that derives its
24        license  from  a  track  located  in  a  county  with   a
25        population  in  excess  of  230,000  and that borders the
26        Mississippi River shall retain all purse moneys  for  its
27        own  purse account consistent with distribution set forth
28        in this subsection (h), and intertrack wagering  location
29        licensees  that  accept  wagers  on races conducted by an
30        organization  licensee  located  in  a  county   with   a
31        population  in  excess  of  230,000  and that borders the
32        Mississippi River shall distribute all  purse  moneys  to
33        purses  at  the operating host track; (iii) until January
34        1, 2000, except as provided in subsection (g) of  Section
 
                            -57-     LRB093 05454 LRD 17090 a
 1        27  of  this Act, 1% of the pari-mutuel handle wagered on
 2        inter-track  wagering  and  simulcast  wagering  at  each
 3        inter-track wagering location licensee  facility  to  the
 4        Horse  Racing  Tax Allocation Fund, provided that, to the
 5        extent the total amount collected and distributed to  the
 6        Horse  Racing  Tax  Allocation Fund under this subsection
 7        (h) during any calendar year exceeds the amount collected
 8        and distributed to the Horse Racing Tax  Allocation  Fund
 9        during  calendar  year  1994, that excess amount shall be
10        redistributed (I) to all  inter-track  wagering  location
11        licensees, based on each licensee's pro-rata share of the
12        total  handle  from  inter-track  wagering  and simulcast
13        wagering for all inter-track wagering location  licensees
14        during  the  calendar  year  in  which  this provision is
15        applicable; then (II) the amounts redistributed  to  each
16        inter-track  wagering  location  licensee as described in
17        subpart (I) shall be further redistributed as provided in
18        subparagraph (B) of paragraph (5) of  subsection  (g)  of
19        this  Section 26 provided first, that the shares of those
20        amounts, which are to be redistributed to the host  track
21        or  to purses at the host track under subparagraph (B) of
22        paragraph (5) of subsection (g) of this Section 26  shall
23        be  redistributed  based  on  each  host track's pro rata
24        share of the total  inter-track  wagering  and  simulcast
25        wagering  handle  at  all host tracks during the calendar
26        year  in  question,  and   second,   that   any   amounts
27        redistributed  as described in part (I) to an inter-track
28        wagering location licensee that accepts wagers  on  races
29        conducted  by  an  organization  licensee that conducts a
30        race meet in a county with  a  population  in  excess  of
31        230,000  and  that borders the Mississippi River shall be
32        further redistributed as provided  in  subparagraphs  (D)
33        and  (E)  of  paragraph  (7)  of  subsection  (g) of this
34        Section  26,   with   the   portion   of   that   further
 
                            -58-     LRB093 05454 LRD 17090 a
 1        redistribution  allocated  to purses at that organization
 2        licensee to be divided between  standardbred  purses  and
 3        thoroughbred   purses  based  on  the  amounts  otherwise
 4        allocated to purses at that organization licensee  during
 5        the  calendar  year  in  question;   and  (iv)  8% of the
 6        pari-mutuel handle on  inter-track  wagering  wagered  at
 7        such  location  to  satisfy  all  costs  and  expenses of
 8        conducting its wagering.  The  remainder  of  the  monies
 9        retained  by  the  inter-track wagering location licensee
10        shall be allocated 40% to the location licensee  and  60%
11        to  the organization licensee which provides the Illinois
12        races to the location, except that an intertrack wagering
13        location licensee that derives its license from  a  track
14        located  in  a  county  with  a  population  in excess of
15        230,000 and that borders the Mississippi River shall  not
16        divide  any  remaining  retention  with  the organization
17        licensee  that  provides  the  race  or  races   and   an
18        intertrack wagering location licensee that accepts wagers
19        on  races  conducted  by  an  organization  licensee that
20        conducts a race meet in a county  with  a  population  in
21        excess  of 230,000 and that borders the Mississippi River
22        shall  not  divide  any  remaining  retention  with   the
23        organization  licensee. Notwithstanding the provisions of
24        clauses (ii) and (iv) of this paragraph, in the  case  of
25        the  additional  inter-track  wagering  location licenses
26        authorized under paragraph (1) of this subsection (h)  by
27        this  amendatory  Act  of 1991, those licensees shall pay
28        the following amounts as  purses:  during  the  first  12
29        months  the  licensee  is  in  operation,  5.25%  of  the
30        pari-mutuel  handle  wagered  at  the  location on races;
31        during the second 12 months, 5.25%; during the  third  12
32        months,  5.75%;  during  the fourth 12 months, 6.25%; and
33        during the fifth 12 months  and  thereafter,  6.75%.  The
34        following  amounts  shall  be retained by the licensee to
 
                            -59-     LRB093 05454 LRD 17090 a
 1        satisfy  all  costs  and  expenses  of   conducting   its
 2        wagering:  during  the first 12 months the licensee is in
 3        operation, 8.25% of the pari-mutuel handle wagered at the
 4        location; during the second 12 months, 8.25%; during  the
 5        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  intertrack  wagering  location
 8        licensees authorized under this amendatory Act  of  1995,
 9        purses  for  the  first  12  months  the  licensee  is in
10        operation shall be 5.75% of the  pari-mutuel  wagered  at
11        the  location,  purses  for  the  second  12  months  the
12        licensee  is  in  operation  shall  be  6.25%, and purses
13        thereafter shall be  6.75%.   For  additional  intertrack
14        location  licensees  authorized under this amendatory Act
15        of 1995, the licensee  shall  be  allowed  to  retain  to
16        satisfy  all costs and expenses: 7.75% of the pari-mutuel
17        handle wagered at the location during its first 12 months
18        of operation,  7.25%  during  its  second  12  months  of
19        operation, and 6.75% thereafter.
20             (C)  There  is  hereby  created the Horse Racing Tax
21        Allocation Fund which shall  remain  in  existence  until
22        December  31,  1999.   Moneys remaining in the Fund after
23        December 31, 1999 shall be paid into the General  Revenue
24        Fund.   Until  January  1, 2000, all monies paid into the
25        Horse  Racing  Tax  Allocation  Fund  pursuant  to   this
26        paragraph (11) by inter-track wagering location licensees
27        located  in park districts of 500,000 population or less,
28        or in a municipality that is not included within any park
29        district but is included within a  conservation  district
30        and is the county seat of a county that (i) is contiguous
31        to the state of Indiana and (ii) has a 1990 population of
32        88,257  according  to  the  United  States  Bureau of the
33        Census, and operating on May 1, 1994 shall  be  allocated
34        by appropriation as follows:
 
                            -60-     LRB093 05454 LRD 17090 a
 1                  Two-sevenths  to the Department of Agriculture.
 2             Fifty percent of this two-sevenths shall be used  to
 3             promote  the  Illinois  horse  racing  and  breeding
 4             industry, and shall be distributed by the Department
 5             of   Agriculture  upon  the  advice  of  a  9-member
 6             committee appointed by the  Governor  consisting  of
 7             the  following members: the Director of Agriculture,
 8             who shall serve as chairman;  2  representatives  of
 9             organization  licensees conducting thoroughbred race
10             meetings  in  this  State,  recommended   by   those
11             licensees;   2   representatives   of   organization
12             licensees  conducting  standardbred race meetings in
13             this  State,  recommended  by  those  licensees;   a
14             representative of the Illinois Thoroughbred Breeders
15             and   Owners   Foundation,   recommended   by   that
16             Foundation;   a   representative   of  the  Illinois
17             Standardbred  Owners   and   Breeders   Association,
18             recommended by that Association; a representative of
19             the Horsemen's Benevolent and Protective Association
20             or any successor organization thereto established in
21             Illinois  comprised  of the largest number of owners
22             and trainers, recommended  by  that  Association  or
23             that successor organization; and a representative of
24             the   Illinois   Harness   Horsemen's   Association,
25             recommended  by that Association.  Committee members
26             shall serve for terms of 2 years, commencing January
27             1 of each even-numbered year.  If  a  representative
28             of  any  of  the  above-named  entities has not been
29             recommended by January 1 of any even-numbered  year,
30             the  Governor  shall  appoint  a committee member to
31             fill that position.  Committee members shall receive
32             no compensation for their services  as  members  but
33             shall  be  reimbursed  for  all actual and necessary
34             expenses   and   disbursements   incurred   in   the
 
                            -61-     LRB093 05454 LRD 17090 a
 1             performance of their official duties.  The remaining
 2             50% of this two-sevenths  shall  be  distributed  to
 3             county  fairs for premiums and rehabilitation as set
 4             forth in the Agricultural Fair Act;
 5                  Four-sevenths    to    park    districts     or
 6             municipalities  that  do not have a park district of
 7             500,000 population or less for museum  purposes  (if
 8             an inter-track wagering location licensee is located
 9             in   such   a  park  district)  or  to  conservation
10             districts for museum  purposes  (if  an  inter-track
11             wagering   location   licensee   is   located  in  a
12             municipality that is not included  within  any  park
13             district  but  is  included  within  a  conservation
14             district and is the county seat of a county that (i)
15             is contiguous to the state of Indiana and (ii) has a
16             1990  population  of  88,257 according to the United
17             States Bureau of the  Census,  except  that  if  the
18             conservation  district  does  not maintain a museum,
19             the monies shall be allocated  equally  between  the
20             county and the municipality in which the inter-track
21             wagering  location  licensee  is located for general
22             purposes) or to a  municipal  recreation  board  for
23             park  purposes  (if an inter-track wagering location
24             licensee is located in a municipality  that  is  not
25             included   within   any   park   district  and  park
26             maintenance  is  the  function  of   the   municipal
27             recreation  board  and  the  municipality has a 1990
28             population of 9,302 according to the  United  States
29             Bureau  of the Census); provided that the monies are
30             distributed to each park  district  or  conservation
31             district  or  municipality that does not have a park
32             district in an amount equal to four-sevenths of  the
33             amount   collected   by  each  inter-track  wagering
34             location  licensee  within  the  park  district   or
 
                            -62-     LRB093 05454 LRD 17090 a
 1             conservation  district or municipality for the Fund.
 2             Monies that were paid  into  the  Horse  Racing  Tax
 3             Allocation  Fund  before  the effective date of this
 4             amendatory Act of 1991 by  an  inter-track  wagering
 5             location  licensee located in a municipality that is
 6             not  included  within  any  park  district  but   is
 7             included  within a conservation district as provided
 8             in this paragraph  shall,  as  soon  as  practicable
 9             after  the  effective date of this amendatory Act of
10             1991, be allocated and  paid  to  that  conservation
11             district  as  provided  in  this paragraph. Any park
12             district or municipality not  maintaining  a  museum
13             may  deposit the monies in the corporate fund of the
14             park district or municipality where the  inter-track
15             wagering location is located, to be used for general
16             purposes; and
17                  One-seventh to the Agricultural Premium Fund to
18             be   used  for  distribution  to  agricultural  home
19             economics extension councils in accordance with  "An
20             Act  in  relation to additional support and finances
21             for the Agricultural  and  Home  Economic  Extension
22             Councils  in  the several counties of this State and
23             making an appropriation therefor", approved July 24,
24             1967.
25             Until January 1, 2000, all other  monies  paid  into
26        the  Horse  Racing  Tax  Allocation Fund pursuant to this
27        paragraph (11) shall be  allocated  by  appropriation  as
28        follows:
29                  Two-sevenths  to the Department of Agriculture.
30             Fifty percent of this two-sevenths shall be used  to
31             promote  the  Illinois  horse  racing  and  breeding
32             industry, and shall be distributed by the Department
33             of   Agriculture  upon  the  advice  of  a  9-member
34             committee appointed by the  Governor  consisting  of
 
                            -63-     LRB093 05454 LRD 17090 a
 1             the  following members: the Director of Agriculture,
 2             who shall serve as chairman;  2  representatives  of
 3             organization  licensees conducting thoroughbred race
 4             meetings  in  this  State,  recommended   by   those
 5             licensees;   2   representatives   of   organization
 6             licensees  conducting  standardbred race meetings in
 7             this  State,  recommended  by  those  licensees;   a
 8             representative of the Illinois Thoroughbred Breeders
 9             and   Owners   Foundation,   recommended   by   that
10             Foundation;   a   representative   of  the  Illinois
11             Standardbred  Owners   and   Breeders   Association,
12             recommended by that Association; a representative of
13             the Horsemen's Benevolent and Protective Association
14             or any successor organization thereto established in
15             Illinois  comprised  of the largest number of owners
16             and trainers, recommended  by  that  Association  or
17             that successor organization; and a representative of
18             the   Illinois   Harness   Horsemen's   Association,
19             recommended  by that Association.  Committee members
20             shall serve for terms of 2 years, commencing January
21             1 of each even-numbered year.  If  a  representative
22             of  any  of  the  above-named  entities has not been
23             recommended by January 1 of any even-numbered  year,
24             the  Governor  shall  appoint  a committee member to
25             fill that position.  Committee members shall receive
26             no compensation for their services  as  members  but
27             shall  be  reimbursed  for  all actual and necessary
28             expenses   and   disbursements   incurred   in   the
29             performance of their official duties.  The remaining
30             50% of this two-sevenths  shall  be  distributed  to
31             county  fairs for premiums and rehabilitation as set
32             forth in the Agricultural Fair Act;
33                  Four-sevenths to museums and aquariums  located
34             in   park  districts  of  over  500,000  population;
 
                            -64-     LRB093 05454 LRD 17090 a
 1             provided  that  the  monies   are   distributed   in
 2             accordance  with the previous year's distribution of
 3             the maintenance tax for such museums  and  aquariums
 4             as  provided  in  Section  2  of  the  Park District
 5             Aquarium and Museum Act; and
 6                  One-seventh to the Agricultural Premium Fund to
 7             be  used  for  distribution  to  agricultural   home
 8             economics  extension councils in accordance with "An
 9             Act in relation to additional support  and  finances
10             for  the  Agricultural  and  Home Economic Extension
11             Councils in the several counties of this  State  and
12             making an appropriation therefor", approved July 24,
13             1967. This subparagraph (C) shall be inoperative and
14             of no force and effect on and after January 1, 2000.
15                  (D)  Except  as  provided  in paragraph (11) of
16             this  subsection  (h),   with   respect   to   purse
17             allocation  from  intertrack wagering, the monies so
18             retained shall be divided as follows:
19                       (i)  If the inter-track wagering licensee,
20                  except an  intertrack  wagering  licensee  that
21                  derives   its   license  from  an  organization
22                  licensee located in a county with a  population
23                  in   excess  of  230,000  and  bounded  by  the
24                  Mississippi River, is not  conducting  its  own
25                  race  meeting  during  the same dates, then the
26                  entire purse allocation shall be to  purses  at
27                  the  track where the races wagered on are being
28                  conducted.
29                       (ii)  If    the    inter-track    wagering
30                  licensee,   except   an   intertrack   wagering
31                  licensee  that  derives  its  license  from  an
32                  organization licensee located in a county  with
33                  a  population  in excess of 230,000 and bounded
34                  by the Mississippi River,  is  also  conducting
 
                            -65-     LRB093 05454 LRD 17090 a
 1                  its  own  race  meeting  during the same dates,
 2                  then the purse allocation shall be as  follows:
 3                  50%  to  purses  at  the  track where the races
 4                  wagered on are being conducted; 50%  to  purses
 5                  at  the  track  where  the inter-track wagering
 6                  licensee is accepting such wagers.
 7                       (iii)  If  the  inter-track  wagering   is
 8                  being  conducted  by  an  inter-track  wagering
 9                  location   licensee,   except   an   intertrack
10                  wagering  location  licensee  that  derives its
11                  license from an organization  licensee  located
12                  in  a  county  with  a  population in excess of
13                  230,000 and bounded by the  Mississippi  River,
14                  the  entire purse allocation for Illinois races
15                  shall be to purses at the track where the  race
16                  meeting being wagered on is being held.
17             (12)  The  Board shall have all powers necessary and
18        proper to fully supervise  and  control  the  conduct  of
19        inter-track    wagering   and   simulcast   wagering   by
20        inter-track wagering licensees and  inter-track  wagering
21        location  licensees,  including,  but  not limited to the
22        following:
23                  (A)  The  Board  is  vested   with   power   to
24             promulgate  reasonable rules and regulations for the
25             purpose  of  administering  the  conduct   of   this
26             wagering   and   to   prescribe   reasonable  rules,
27             regulations and conditions under which such wagering
28             shall  be  held  and  conducted.   Such  rules   and
29             regulations  are  to  provide  for the prevention of
30             practices detrimental to the public interest and for
31             the best interests of said wagering  and  to  impose
32             penalties for violations thereof.
33                  (B)  The  Board,  and  any person or persons to
34             whom it delegates this power,  is  vested  with  the
 
                            -66-     LRB093 05454 LRD 17090 a
 1             power  to  enter  the  facilities of any licensee to
 2             determine whether there has been compliance with the
 3             provisions of this Act and the rules and regulations
 4             relating to the conduct of such wagering.
 5                  (C)  The Board, and any person  or  persons  to
 6             whom  it  delegates this power, may eject or exclude
 7             from any licensee's  facilities,  any  person  whose
 8             conduct  or  reputation is such that his presence on
 9             such premises may, in the opinion of the Board, call
10             into the question the honesty and integrity  of,  or
11             interfere with the orderly conduct of such wagering;
12             provided,  however, that no person shall be excluded
13             or ejected from such premises solely on the  grounds
14             of race, color, creed, national origin, ancestry, or
15             sex.
16                  (D)  (Blank).
17                  (E)  The  Board  is  vested  with  the power to
18             appoint delegates  to  execute  any  of  the  powers
19             granted  to it under this Section for the purpose of
20             administering  this  wagering  and  any  rules   and
21             regulations promulgated in accordance with this Act.
22                  (F)  The  Board  shall name and appoint a State
23             director  of  this   wagering   who   shall   be   a
24             representative  of the Board and whose duty it shall
25             be to supervise the conduct of inter-track  wagering
26             as  may be provided for by the rules and regulations
27             of  the  Board;  such  rules  and  regulation  shall
28             specify the method of appointment and the Director's
29             powers, authority and duties.
30                  (G)  The Board is  vested  with  the  power  to
31             impose  civil  penalties  of  up  to  $5,000 against
32             individuals and up to $10,000 against licensees  for
33             each violation of any provision of this Act relating
34             to  the  conduct of this wagering, any rules adopted
 
                            -67-     LRB093 05454 LRD 17090 a
 1             by the Board, any order of the Board  or  any  other
 2             action   which  in  the  Board's  discretion,  is  a
 3             detriment or impediment to such wagering.
 4             (13)  The Department of Agriculture may  enter  into
 5        agreements  with  licensees authorizing such licensees to
 6        conduct inter-track wagering on races to be held  at  the
 7        licensed  race  meetings  conducted  by the Department of
 8        Agriculture.   Such agreement shall specify the races  of
 9        the  Department  of  Agriculture's  licensed race meeting
10        upon which the licensees will conduct wagering.   In  the
11        event  that  a  licensee conducts inter-track pari-mutuel
12        wagering on races from the Illinois State Fair or DuQuoin
13        State Fair  which  are  in  addition  to  the  licensee's
14        previously  approved racing program, those races shall be
15        considered a separate  racing  day  for  the  purpose  of
16        determining  the daily handle and computing the privilege
17        or pari-mutuel tax on that daily handle  as  provided  in
18        Sections  27 and 27.1.  Such agreements shall be approved
19        by the Board before such wagering may be  conducted.   In
20        determining  whether  to  grant approval, the Board shall
21        give due consideration  to  the  best  interests  of  the
22        public  and of horse racing. The provisions of paragraphs
23        (1), (8), (8.1), and (8.2)  of  subsection  (h)  of  this
24        Section  which  are  not specified in this paragraph (13)
25        shall not apply to licensed race  meetings  conducted  by
26        the  Department of Agriculture at the Illinois State Fair
27        in Sangamon County or the DuQuoin  State  Fair  in  Perry
28        County,  or  to  any  wagering  conducted  on  those race
29        meetings.
30        (i)  Notwithstanding the other provisions  of  this  Act,
31    the  conduct of wagering at wagering facilities is authorized
32    on all days, except as limited by subsection (b)  of  Section
33    19 of this Act.
34    (Source: P.A. 91-40, eff. 6-25-99; 92-211, eff. 8-2-01.)
 
                            -68-     LRB093 05454 LRD 17090 a
 1        (230 ILCS 5/26.1) (from Ch. 8, par. 37-26.1)
 2        Sec.   26.1.   For  all  pari-mutuel  wagering  conducted
 3    pursuant to this Act, breakage shall be at all times computed
 4    on the basis of not to exceed 10¢ on the dollar.  If there is
 5    a minus pool, the breakage shall be computed on the basis  of
 6    not  to exceed 5¢ on the dollar. Breakage shall be calculated
 7    only after the amounts  retained  by  licensees  pursuant  to
 8    Sections  26  and  26.2  of  this  Act,  and  all  applicable
 9    surcharges, are taken out of winning wagers and winnings from
10    wagers.  From  Beginning  January 1, 2000 until July 1, 2004,
11    all breakage shall be retained  by  licensees,  with  50%  of
12    breakage  to  be used by licensees for racetrack improvements
13    at the racetrack from which the wagering facility derives its
14    license.  The remaining 50% is to be  allocated  50%  to  the
15    purse  account  for  the  licensee  from  which  the wagering
16    facility  derives  its  license  and  50%  to  the  licensee.
17    Beginning July 1, 2004, all breakage  shall  be  retained  by
18    licensees,  with  50% of breakage to be used by licensees for
19    racetrack  improvements  at  the  racetrack  from  which  the
20    wagering facility derives its license.  The remaining 50%  is
21    to  be  allocated  to the purse account for the licensee from
22    which the wagering facility derives its license.
23    (Source: P.A. 91-40, eff. 6-25-99.)

24        (230 ILCS 5/27) (from Ch. 8, par. 37-27)
25        Sec. 27.  (a) In addition to the organization license fee
26    provided by this Act, until  January  1,  2000,  a  graduated
27    privilege   tax   is   hereby   imposed  for  conducting  the
28    pari-mutuel system of  wagering  permitted  under  this  Act.
29    Until  January  1, 2000, except as provided in subsection (g)
30    of Section 27 of this Act, all of the breakage of each racing
31    day held by any licensee in the State shall be  paid  to  the
32    State.  Until January 1, 2000, such daily graduated privilege
33    tax shall be paid by the licensee from the  amount  permitted
 
                            -69-     LRB093 05454 LRD 17090 a
 1    to  be  retained  under this Act. Until January 1, 2000, each
 2    day's graduated privilege tax, breakage, and Horse Racing Tax
 3    Allocation funds shall  be  remitted  to  the  Department  of
 4    Revenue  within  48  hours  after the close of the racing day
 5    upon which it is assessed or within such other  time  as  the
 6    Board  prescribes.   The  privilege tax hereby imposed, until
 7    January 1, 2000, shall be a flat tax at the rate of 2% of the
 8    daily pari-mutuel handle except as provided in Section 27.1.
 9        In  addition,  every  organization  licensee,  except  as
10    provided in Section 27.1 of this Act, which conducts multiple
11    wagering shall pay, until January 1, 2000, as a privilege tax
12    on multiple wagers an amount equal to  1.25%  of  all  moneys
13    wagered  each day on such multiple wagers, plus an additional
14    amount equal to 3.5% of the amount wagered each  day  on  any
15    other multiple wager which involves a single betting interest
16    on  3  or more horses. The licensee shall remit the amount of
17    such taxes to the Department of Revenue within 48 hours after
18    the close of the racing day on which it is assessed or within
19    such other time as the Board prescribes.
20        This subsection (a) shall be inoperative and of no  force
21    and effect on and after January 1, 2000.
22        (a-5)  Beginning  on  January 1, 2000, a flat pari-mutuel
23    tax at the rate of 1.5% of the daily  pari-mutuel  handle  is
24    imposed  at  all pari-mutuel wagering facilities, which shall
25    be remitted to the Department  of  Revenue  within  48  hours
26    after  the  close of the racing day upon which it is assessed
27    or within such other time as the Board prescribes.
28        (b)  On or before December 31, 1999, in  the  event  that
29    any  organization  licensee  conducts  2 separate programs of
30    races on any day, each such program  shall  be  considered  a
31    separate  racing  day  for  purposes of determining the daily
32    handle and computing the privilege tax on such  daily  handle
33    as provided in subsection (a) of this Section.
34        (c)  Licensees shall at all times keep accurate books and
 
                            -70-     LRB093 05454 LRD 17090 a
 1    records  of  all monies wagered on each day of a race meeting
 2    and of the taxes paid to the Department of Revenue under  the
 3    provisions of this Section.  The Board or its duly authorized
 4    representative  or  representatives  shall  at all reasonable
 5    times  have  access  to  such  records  for  the  purpose  of
 6    examining and checking the same and ascertaining whether  the
 7    proper  amount of taxes is being paid as provided.  The Board
 8    shall require verified reports and a statement of  the  total
 9    of  all  monies  wagered daily at each wagering facility upon
10    which the taxes are assessed and  may  prescribe  forms  upon
11    which such reports and statement shall be made.
12        (d)  Any  licensee  failing or refusing to pay the amount
13    of any tax due under  this  Section  shall  be  guilty  of  a
14    business  offense and upon conviction shall be fined not more
15    than $5,000 in addition to the amount found due as tax  under
16    this  Section.   Each  day's  violation  shall  constitute  a
17    separate  offense.   All  fines paid into Court by a licensee
18    hereunder shall be transmitted and paid over by the Clerk  of
19    the Court to the Board.
20        (e)  No  other license fee, privilege tax, excise tax, or
21    racing fee, except as provided in this Act, shall be assessed
22    or collected from any such licensee by the State.
23        (f)  No other license fee, privilege tax, excise  tax  or
24    racing  fee  shall  be  assessed  or  collected from any such
25    licensee  by units of local government except as provided  in
26    paragraph  10.1  of  subsection  (h)  and  subsection  (f) of
27    Section 26 of this Act.  However, any municipality that has a
28    Board licensed horse race meeting  at  a  race  track  wholly
29    within  its  corporate  boundaries  or  a township that has a
30    Board licensed horse race meeting  at  a  race  track  wholly
31    within  the  unincorporated area of the township may charge a
32    local amusement tax not to exceed 10¢ per admission  to  such
33    horse   race  meeting  by  the  enactment  of  an  ordinance.
34    However, any municipality or county that has a Board licensed
 
                            -71-     LRB093 05454 LRD 17090 a
 1    inter-track wagering  location  facility  wholly  within  its
 2    corporate  boundaries may each impose an admission fee not to
 3    exceed $1.00  per  admission  to  such  inter-track  wagering
 4    location facility, so that a total of not more than $2.00 per
 5    admission may be imposed.  Except as provided in subparagraph
 6    (g)  of  Section  27  of  this  Act, the inter-track wagering
 7    location licensee shall collect any and  all  such  fees  and
 8    within  48  hours  remit  the fees to the Board, which shall,
 9    pursuant to rule, cause the fees to  be  distributed  to  the
10    county or municipality.
11        (g)  Notwithstanding  any  provision  in  this Act to the
12    contrary, if in any calendar year the total  taxes  and  fees
13    from  wagering  on  live racing and from inter-track wagering
14    required to be collected from licensees and distributed under
15    this Act to all  State  and  local  governmental  authorities
16    exceeds the amount of such taxes and fees distributed to each
17    State  and  local  governmental authority to which each State
18    and local governmental authority was entitled under this  Act
19    for  calendar  year  1994, then the first $11 million of that
20    excess amount shall be allocated  at  the  earliest  possible
21    date  for  distribution  as  purse  money  for the succeeding
22    calendar year. Upon reaching the 1994 level,  and  until  the
23    excess  amount  of  taxes  and  fees exceeds $11 million, the
24    Board shall direct all licensees to cease paying the  subject
25    taxes  and  fees  and the Board shall direct all licensees to
26    allocate any such excess amount for purses as follows:
27             (i)  the excess amount shall  be  initially  divided
28        between thoroughbred and standardbred purses based on the
29        thoroughbred's  and standardbred's respective percentages
30        of total Illinois live wagering in calendar year 1994;
31             (ii)  each     thoroughbred     and     standardbred
32        organization licensee issued an organization licensee  in
33        that  succeeding  allocation  year  shall be allocated an
34        amount equal to the product of its  percentage  of  total
 
                            -72-     LRB093 05454 LRD 17090 a
 1        Illinois  live  thoroughbred  or standardbred wagering in
 2        calendar year 1994 (the total to be determined  based  on
 3        the  sum  of  1994 on-track wagering for all organization
 4        licensees  issued   organization  licenses  in  both  the
 5        allocation year and the preceding year) multiplied by the
 6        total amount allocated for standardbred  or  thoroughbred
 7        purses,  provided that the first $1,500,000 of the amount
 8        allocated to standardbred purses under item (i) shall  be
 9        allocated to the Department of Agriculture to be expended
10        with   the   assistance   and   advice  of  the  Illinois
11        Standardbred  Breeders  Funds  Advisory  Board  for   the
12        purposes  listed  in subsection (g) of Section 31 of this
13        Act, before the amount allocated to  standardbred  purses
14        under  item (i) is allocated to standardbred organization
15        licensees in the succeeding allocation year.
16        To the extent the excess amount of taxes and fees  to  be
17    collected  and  distributed  to  State and local governmental
18    authorities exceeds $11 million, that excess amount shall  be
19    collected  and  distributed to State and local authorities as
20    provided for under this Act.
21    (Source: P.A. 91-40, eff. 6-25-99.)

22        (230 ILCS 5/28.1)
23        Sec. 28.1.  Payments.
24        (a)  Beginning on January 1, 2000,  moneys  collected  by
25    the  Department  of  Revenue and the Racing Board pursuant to
26    Section 26 or Section 27 of this Act shall be deposited  into
27    the  Horse  Racing Fund, which is hereby created as a special
28    fund in the State Treasury.
29        (b)  Appropriations, as approved by the General Assembly,
30    may be made from the Horse Racing Fund to the  Board  to  pay
31    the  salaries  of  the  Board  members,  secretary, stewards,
32    directors   of   mutuels,   veterinarians,   representatives,
33    accountants,  clerks,  stenographers,  inspectors  and  other
 
                            -73-     LRB093 05454 LRD 17090 a
 1    employees of  the  Board,  and  all  expenses  of  the  Board
 2    incident  to  the  administration of this Act, including, but
 3    not limited to, all expenses and  salaries  incident  to  the
 4    taking  of  saliva  and  urine samples in accordance with the
 5    rules and regulations of the Board.
 6        (c)  Appropriations, as approved by the General Assembly,
 7    shall be made from the Horse Racing Fund to the Department of
 8    Agriculture for the purposes identified  in  paragraphs  (2),
 9    (2.5),  (4),  (4.1), (6), (7), (8), and (9) of subsection (g)
10    of Section 30, subsection (e) of Section 30.5, and paragraphs
11    (1), (2), (3), (5), and (8) of subsection (g) of  Section  31
12    and for standardbred bonus programs for owners of horses that
13    win  multiple  stakes  races  that  are  limited  to Illinois
14    conceived and foaled horses.  From Beginning  on  January  1,
15    2000  until  the effective date of this amendatory Act of the
16    93rd General Assembly, the Board shall transfer the remainder
17    of the funds generated pursuant to Sections 26  and  27  from
18    the Horse Racing Fund into the General Revenue Fund.
19        (d)  Beginning  January 1, 2000, payments to all programs
20    in existence on the effective date of this amendatory Act  of
21    1999   that   are   identified   in  Sections  26(c),  26(f),
22    26(h)(11)(C), and 28, subsections (a), (b),  (c),  (d),  (e),
23    (f),  (g),  and  (h) of Section 30, and subsections (a), (b),
24    (c), (d), (e), (f), (g), and (h) of Section 31 shall be  made
25    from   the   General  Revenue  Fund  at  the  funding  levels
26    determined by amounts paid under this Act  in  calendar  year
27    1998.
28        (e)  Notwithstanding  any  other provision of this Act to
29    the contrary, appropriations,  as  approved  by  the  General
30    Assembly,  may  be  made from the Fair and Exposition Fund to
31    the Department of Agriculture for  distribution  to  Illinois
32    county   fairs  to  supplement  premiums  offered  in  junior
33    classes.
34    (Source: P.A. 91-40, eff. 6-25-99.)
 
                            -74-     LRB093 05454 LRD 17090 a
 1        (230 ILCS 5/30) (from Ch. 8, par. 37-30)
 2        Sec. 30.  (a)  The General Assembly declares that  it  is
 3    the  policy  of  this  State  to  encourage  the  breeding of
 4    thoroughbred horses in this State and the ownership  of  such
 5    horses  by  residents  of this State in order to provide for:
 6    sufficient numbers of high quality  thoroughbred  horses   to
 7    participate  in  thoroughbred  racing meetings in this State,
 8    and to establish and preserve the agricultural and commercial
 9    benefits of such breeding and racing industries to the  State
10    of  Illinois.   It  is  the intent of the General Assembly to
11    further this policy by the provisions of this Act.
12        (b)  Each organization licensee conducting a thoroughbred
13    racing meeting pursuant to this Act shall  provide  at  least
14    two  races  each day limited to Illinois conceived and foaled
15    horses or Illinois foaled horses or both.   A  minimum  of  6
16    races  shall   be  conducted  each  week  limited to Illinois
17    conceived and foaled  or  Illinois  foaled  horses  or  both.
18    Subject  to  the  daily  availability of horses, one of the 6
19    races  scheduled  per  week  that  are  limited  to  Illinois
20    conceived and foaled or Illinois foaled horses or both  shall
21    be  limited  to  Illinois  conceived  and  foaled or Illinois
22    foaled maidens. No horses shall be permitted to start in such
23    races  unless  duly  registered  under  the  rules   of   the
24    Department of Agriculture.
25        (c)  Conditions  of  races  under subsection (b) shall be
26    commensurate with past performance,  quality,  and  class  of
27    Illinois  conceived  and  foaled  and  Illinois foaled horses
28    available.  If, however, sufficient competition cannot be had
29    among horses of that class on any day, the  races  may,  with
30    consent  of  the  Board,  be  eliminated  for  that  day  and
31    substitute races provided.
32        (d)  There  is hereby created a special fund of the State
33    Treasury to be known as the  Illinois  Thoroughbred  Breeders
34    Fund.
 
                            -75-     LRB093 05454 LRD 17090 a
 1        Except  as  provided  in  subsection (g) of Section 27 of
 2    this Act, 8.5% of all the monies received  by  the  State  as
 3    privilege taxes on Thoroughbred racing meetings shall be paid
 4    into the Illinois Thoroughbred Breeders Fund.
 5        (e)  The  Illinois  Thoroughbred  Breeders  Fund shall be
 6    administered by the Department of Agriculture with the advice
 7    and assistance of the Advisory Board  created  in  subsection
 8    (f) of this Section.
 9        (f)  The  Illinois  Thoroughbred  Breeders  Fund Advisory
10    Board shall consist of the  Director  of  the  Department  of
11    Agriculture,  who  shall  serve  as Chairman; a member of the
12    Illinois Racing Board, designated by it; 2 representatives of
13    the organization  licensees  conducting  thoroughbred  racing
14    meetings,  recommended  by  them;  2  representatives  of the
15    Illinois  Thoroughbred  Breeders   and   Owners   Foundation,
16    recommended  by  it;  and 2 representatives of the Horsemen's
17    Benevolent   Protective   Association   or   any    successor
18    organization established in Illinois comprised of the largest
19    number  of  owners  and trainers, recommended by it, with one
20    representative of the Horsemen's  Benevolent  and  Protective
21    Association  to come from its Illinois Division, and one from
22    its Chicago Division. Advisory Board members shall serve  for
23    2  years  commencing January 1 of each odd numbered year.  If
24    representatives  of  the  organization  licensees  conducting
25    thoroughbred  racing  meetings,  the  Illinois   Thoroughbred
26    Breeders and Owners Foundation, and the Horsemen's Benevolent
27    Protection  Association  have not been recommended by January
28    1, of each odd numbered year, the Director of the  Department
29    of Agriculture shall make an appointment for the organization
30    failing  to  so  recommend  a  member  of the Advisory Board.
31    Advisory Board members  shall  receive  no  compensation  for
32    their  services  as  members  but shall be reimbursed for all
33    actual and necessary expenses and disbursements  incurred  in
34    the execution of their official duties.
 
                            -76-     LRB093 05454 LRD 17090 a
 1        (g)  Moneys No monies shall be expended from the Illinois
 2    Thoroughbred  Breeders  Fund  except  as  appropriated by the
 3    General Assembly pursuant to this Act, the Riverboat Gambling
 4    Act,  or  both.   Monies  appropriated  from   the   Illinois
 5    Thoroughbred   Breeders   Fund   shall  be  expended  by  the
 6    Department of Agriculture, with the advice and assistance  of
 7    the  Illinois  Thoroughbred Breeders Fund Advisory Board, for
 8    the following purposes only:
 9             (1)  To  provide  purse  supplements  to  owners  of
10        horses  participating  in  races  limited   to   Illinois
11        conceived  and  foaled   and Illinois foaled horses.  Any
12        such purse supplements shall not be included in and shall
13        be paid in addition to any purses, stakes,  or  breeders'
14        awards   offered   by   each   organization  licensee  as
15        determined  by  agreement   between   such   organization
16        licensee  and  an organization representing the horsemen.
17        No monies from the Illinois  Thoroughbred  Breeders  Fund
18        shall  be  used to provide purse supplements for claiming
19        races in which the minimum claiming price  is  less  than
20        $7,500.
21             (2)  To  provide stakes and awards to be paid to the
22        owners of the winning horses in certain races limited  to
23        Illinois  conceived and foaled and Illinois foaled horses
24        designated as stakes races.
25             (2.5)  To provide an award to the owner or owners of
26        an Illinois conceived and foaled or Illinois foaled horse
27        that  wins  a  maiden  special  weight,   an   allowance,
28        overnight  handicap  race, or claiming race with claiming
29        price of $10,000  or  more  providing  the  race  is  not
30        restricted  to  Illinois conceived and foaled or Illinois
31        foaled horses.  Awards shall  also  be  provided  to  the
32        owner  or  owners  of  Illinois  conceived and foaled and
33        Illinois foaled horses that  place  second  or  third  in
34        those  races.   To  the extent that additional moneys are
 
                            -77-     LRB093 05454 LRD 17090 a
 1        required to pay the minimum additional awards of  40%  of
 2        the  purse  the  horse earns for placing first, second or
 3        third in those races for Illinois foaled  horses  and  of
 4        60%  of  the  purse  the  horse  earns for placing first,
 5        second or third in those races for Illinois conceived and
 6        foaled horses, those moneys shall be  provided  from  the
 7        purse account at the track where earned.
 8             (3)  To  provide  stallion  awards  to  the owner or
 9        owners of any stallion that is duly registered  with  the
10        Illinois  Thoroughbred Breeders Fund Program prior to the
11        effective date of this amendatory Act of 1995 whose  duly
12        registered Illinois conceived and foaled offspring wins a
13        race conducted at an Illinois thoroughbred racing meeting
14        other  than a claiming race. Such award shall not be paid
15        to the owner or  owners  of  an  Illinois  stallion  that
16        served outside this State at any time during the calendar
17        year in which such race was conducted.
18             (4)  To  provide  $75,000  annually for purses to be
19        distributed to county fairs that provide for the  running
20        of  races  during  each  county  fair exclusively for the
21        thoroughbreds conceived  and  foaled  in  Illinois.   The
22        conditions  of the races shall be developed by the county
23        fair association and reviewed by the Department with  the
24        advice   and  assistance  of  the  Illinois  Thoroughbred
25        Breeders Fund Advisory Board. There shall be no  wagering
26        of  any  kind  on  the  running of Illinois conceived and
27        foaled races at county fairs.
28             (4.1)  (Blank).  To  provide  purse  money  for   an
29        Illinois stallion stakes program.
30             (5)  No  less than 80% of all monies appropriated to
31        from the Illinois Thoroughbred  Breeders  Fund  shall  be
32        expended  for  the purposes in (1), (2), (2.5), (3), (4),
33        (4.1), and (5) as shown above.
34             (6)  To provide for educational  programs  regarding
 
                            -78-     LRB093 05454 LRD 17090 a
 1        the thoroughbred breeding industry.
 2             (7)  To provide for research programs concerning the
 3        health, development and care of the thoroughbred horse.
 4             (8)  To  provide  for  a  scholarship  and  training
 5        program for students of equine veterinary medicine.
 6             (9)  To   provide   for   dissemination   of  public
 7        information  designed  to   promote   the   breeding   of
 8        thoroughbred horses in Illinois.
 9             (10)  To  provide  for  all expenses incurred in the
10        administration  of  the  Illinois  Thoroughbred  Breeders
11        Fund.
12        (h)  (Blank). Whenever the Governor finds that the amount
13    in the Illinois Thoroughbred Breeders Fund is more  than  the
14    total  of  the outstanding appropriations from such fund, the
15    Governor shall notify the State  Comptroller  and  the  State
16    Treasurer  of  such  fact.   The  Comptroller  and  the State
17    Treasurer, upon receipt of such notification, shall  transfer
18    such  excess  amount  from the Illinois Thoroughbred Breeders
19    Fund to the General Revenue Fund.
20        (i)  A sum equal to 12 1/2% of the first prize  money  of
21    every  purse  won  by  an  Illinois  foaled  or  an  Illinois
22    conceived  and  foaled horse in races not limited to Illinois
23    foaled horses or Illinois conceived  and  foaled  horses,  or
24    both,  shall  be paid by the organization licensee conducting
25    the horse race meeting. Such  sum  shall  be  paid  from  the
26    organization   licensee's  share  of  the  money  wagered  as
27    follows:  11 1/2% to the breeder of the winning horse and  1%
28    to  the  organization  representing thoroughbred breeders and
29    owners  whose   representative   serves   on   the   Illinois
30    Thoroughbred  Breeders  Fund Advisory Board for verifying the
31    amounts  of   breeders'   awards   earned,   assuring   their
32    distribution  in  accordance with this Act, and servicing and
33    promoting the Illinois thoroughbred  horse  racing  industry.
34    The   organization  representing  thoroughbred  breeders  and
 
                            -79-     LRB093 05454 LRD 17090 a
 1    owners shall cause all expenditures of monies received  under
 2    this  subsection  (i)  to  be  audited at least annually by a
 3    registered public accountant.  The  organization  shall  file
 4    copies  of each annual audit with the Racing Board, the Clerk
 5    of the House of Representatives  and  the  Secretary  of  the
 6    Senate,  and shall make copies of each annual audit available
 7    to the public upon request and upon payment of the reasonable
 8    cost of photocopying the requested  number  of  copies.  Such
 9    payments shall not reduce any award to the owner of the horse
10    or  reduce the taxes payable under this Act.  Upon completion
11    of its racing meet, each organization licensee shall  deliver
12    to  the  organization  representing thoroughbred breeders and
13    owners  whose   representative   serves   on   the   Illinois
14    Thoroughbred  Breeders  Fund  Advisory Board a listing of all
15    the Illinois foaled and the  Illinois  conceived  and  foaled
16    horses  which  won  breeders'  awards  and the amount of such
17    breeders' awards under this subsection to verify accuracy  of
18    payments  and  assure proper distribution of breeders' awards
19    in accordance with the provisions of this Act.  Such payments
20    shall be delivered by the  organization  licensee  within  30
21    days of the end of each race meeting.
22        (j)  A  sum equal to 12 1/2% of the first prize money won
23    in each race limited to Illinois foaled  horses  or  Illinois
24    conceived  and  foaled  horses, or both, shall be paid in the
25    following manner by the organization licensee conducting  the
26    horse race meeting, from the organization licensee's share of
27    the  money  wagered: 11 1/2% to the breeders of the horses in
28    each such race which are the official  first,  second,  third
29    and  fourth finishers and 1% to the organization representing
30    thoroughbred breeders and owners whose representative  serves
31    on the Illinois Thoroughbred Breeders Fund Advisory Board for
32    verifying  the  amounts  of breeders' awards earned, assuring
33    their proper distribution in accordance with  this  Act,  and
34    servicing  and  promoting  the  Illinois  thoroughbred  horse
 
                            -80-     LRB093 05454 LRD 17090 a
 1    racing  industry.  The organization representing thoroughbred
 2    breeders and owners shall cause all  expenditures  of  monies
 3    received  under  this  subsection  (j) to be audited at least
 4    annually by a registered public accountant.  The organization
 5    shall file copies of each annual audit with the Racing Board,
 6    the Clerk of the House of Representatives and  the  Secretary
 7    of  the  Senate,  and  shall make copies of each annual audit
 8    available to the public upon request and upon payment of  the
 9    reasonable  cost  of  photocopying  the  requested  number of
10    copies.
11        The 11 1/2% paid to the breeders in accordance with  this
12    subsection shall be distributed as follows:
13             (1)  60% of such sum shall be paid to the breeder of
14        the horse which finishes in the official first position;
15             (2)  20% of such sum shall be paid to the breeder of
16        the horse which finishes in the official second position;
17             (3)  15% of such sum shall be paid to the breeder of
18        the  horse which finishes in the official third position;
19        and
20             (4)  5% of such sum shall be paid to the breeder  of
21        the horse which finishes in the official fourth position.
22        Such payments shall not reduce any award to the owners of
23    a  horse  or  reduce  the  taxes payable under this Act. Upon
24    completion of its racing  meet,  each  organization  licensee
25    shall  deliver  to the organization representing thoroughbred
26    breeders  and  owners  whose  representative  serves  on  the
27    Illinois Thoroughbred Breeders Fund Advisory Board a  listing
28    of  all  the  Illinois  foaled and the Illinois conceived and
29    foaled horses which won breeders' awards and  the  amount  of
30    such  breeders'  awards  in accordance with the provisions of
31    this  Act.  Such  payments  shall   be   delivered   by   the
32    organization  licensee within 30 days of the end of each race
33    meeting.
34        (k)  The term "breeder", as used herein, means the  owner
 
                            -81-     LRB093 05454 LRD 17090 a
 1    of  the  mare  at the time the foal is dropped.  An "Illinois
 2    foaled horse" is a foal dropped by a mare which  enters  this
 3    State on or before December 1, in the year in which the horse
 4    is bred, provided the mare remains continuously in this State
 5    until its foal is born. An "Illinois foaled horse" also means
 6    a  foal  born  of  a mare in the same year as the mare enters
 7    this State on or before March 1, and remains in this State at
 8    least 30 days after foaling, is bred back during  the  season
 9    of  the  foaling to an Illinois Registered Stallion (unless a
10    veterinarian certifies that the mare should not be  bred  for
11    health  reasons),  and  is not bred to a stallion standing in
12    any other state during the season of foaling.   An  "Illinois
13    foaled  horse"  also  means a foal born in Illinois of a mare
14    purchased at public auction subsequent to the  mare  entering
15    this  State  prior  to March 1 February 1 of the foaling year
16    providing the mare is owned solely by one  or  more  Illinois
17    residents or an Illinois entity that is entirely owned by one
18    or more Illinois residents.
19        (l)  The  Department  of Agriculture shall, by rule, with
20    the  advice  and  assistance  of  the  Illinois  Thoroughbred
21    Breeders Fund Advisory Board:
22             (1)  Qualify stallions for Illinois  breeding;  such
23        stallions  to  stand  for  service  within  the  State of
24        Illinois  at  the  time  of  a  foal's  conception.  Such
25        stallion must not stand for service at any place  outside
26        the  State  of Illinois during the calendar year in which
27        the foal is conceived. The Department of Agriculture  may
28        assess  and  collect  an application fee of $500 fees for
29        the  registration  of  each  Illinois-eligible   stallion
30        stallions.   All  fees  collected are to be paid into the
31        Illinois Thoroughbred  Breeders  Fund  and  used  by  the
32        Illinois  Thoroughbred  Breeders  Fund Advisory Board for
33        stallion awards.
34             (2)  Provide  for  the  registration   of   Illinois
 
                            -82-     LRB093 05454 LRD 17090 a
 1        conceived  and  foaled horses and Illinois foaled horses.
 2        No such horse shall  compete  in  the  races  limited  to
 3        Illinois  conceived  and foaled horses or Illinois foaled
 4        horses or both unless registered with the  Department  of
 5        Agriculture.  The Department of Agriculture may prescribe
 6        such forms as are necessary to determine the  eligibility
 7        of  such horses. The Department of Agriculture may assess
 8        and collect application  fees  for  the  registration  of
 9        Illinois-eligible  foals.   All  fees collected are to be
10        paid into the Illinois  Thoroughbred  Breeders  Fund.  No
11        person shall knowingly prepare or cause preparation of an
12        application  for  registration  of  such foals containing
13        false information.
14        (m)  The Department of Agriculture, with the  advice  and
15    assistance   of   the  Illinois  Thoroughbred  Breeders  Fund
16    Advisory Board, shall provide that certain races  limited  to
17    Illinois  conceived  and foaled and Illinois foaled horses be
18    stakes races and determine the total  amount  of  stakes  and
19    awards to be paid to the owners of the winning horses in such
20    races.
21        In  determining the stakes races and the amount of awards
22    for such races, the Department of Agriculture shall  consider
23    factors,  including  but  not limited to, the amount of money
24    appropriated for  the  Illinois  Thoroughbred  Breeders  Fund
25    program,  organization licensees' contributions, availability
26    of  stakes   caliber   horses   as   demonstrated   by   past
27    performances,  whether  the  race can be coordinated into the
28    proposed racing dates within organization  licensees'  racing
29    dates,  opportunity  for  colts  and  fillies and various age
30    groups to race,  public  wagering  on  such  races,  and  the
31    previous racing schedule.
32        (n)  The  Board  and  the  organizational  licensee shall
33    notify the Department of the conditions  and  minimum  purses
34    for  races  limited  to  Illinois  conceived  and  foaled and
 
                            -83-     LRB093 05454 LRD 17090 a
 1    Illinois foaled  horses  conducted  for  each  organizational
 2    licensee  conducting  a  thoroughbred  racing  meeting.   The
 3    Department  of  Agriculture with the advice and assistance of
 4    the Illinois Thoroughbred Breeders Fund  Advisory  Board  may
 5    allocate  monies  for  purse  supplements for such races.  In
 6    determining whether to allocate money  and  the  amount,  the
 7    Department  of  Agriculture shall consider factors, including
 8    but not limited to, the amount of money appropriated for  the
 9    Illinois  Thoroughbred  Breeders  Fund program, the number of
10    races that may occur, and the organizational licensee's purse
11    structure.
12        (o)  (Blank). In order to improve the breeding quality of
13    thoroughbred  horses  in  the  State,  the  General  Assembly
14    recognizes  that  existing  provisions  of  this  Section  to
15    encourage such  quality  breeding  need  to  be  revised  and
16    strengthened.  As such, a Thoroughbred Breeder's Program Task
17    Force is to be appointed by the Governor by September 1, 1999
18    to  make  recommendations to the General Assembly by no later
19    than March 1, 2000.  This task force is to be composed  of  2
20    representatives  from  the Illinois Thoroughbred Breeders and
21    Owners  Foundation,  2   from   the   Illinois   Thoroughbred
22    Horsemen's Association, 3 from Illinois race tracks operating
23    thoroughbred race meets for an average of at least 30 days in
24    the  past 3 years, the Director of Agriculture, the Executive
25    Director of the Racing Board, who shall serve as Chairman.
26    (Source: P.A. 91-40, eff. 6-25-99.)

27        (230 ILCS 5/31) (from Ch. 8, par. 37-31)
28        Sec. 31.  (a) The General Assembly declares  that  it  is
29    the  policy  of  this  State  to  encourage  the  breeding of
30    standardbred horses in this State and the ownership  of  such
31    horses  by  residents  of this State in order to provide for:
32    sufficient numbers of high  quality  standardbred  horses  to
33    participate  in harness racing meetings in this State, and to
 
                            -84-     LRB093 05454 LRD 17090 a
 1    establish  and  preserve  the  agricultural  and   commercial
 2    benefits  of such breeding and racing industries to the State
 3    of Illinois.  It is the intent of  the  General  Assembly  to
 4    further this policy by the provisions of this Section of this
 5    Act.
 6        (b)  Each  organization  licensee  conducting  a  harness
 7    racing  meeting  pursuant  to  this  Act shall provide for at
 8    least  two  races  each  race  program  limited  to  Illinois
 9    conceived and foaled horses.  A minimum of 6 races  shall  be
10    conducted  each week limited to Illinois conceived and foaled
11    horses.  No horses shall be permitted to start in such  races
12    unless  duly  registered under the rules of the Department of
13    Agriculture.
14        (b-5)  Each organization licensee  conducting  a  harness
15    racing  meeting  pursuant  to  this  Act shall provide stakes
16    races and early  closer  races  for  Illinois  conceived  and
17    foaled  horses so the total purses distributed for such races
18    shall be no less than 17% of the total purses distributed  at
19    the meeting.
20        (b-10)  Each  organization  licensee conducting a harness
21    racing meeting pursuant to this Act shall  provide  an  owner
22    award  to  be paid from the purse account equal to 25% of the
23    amount earned by Illinois  conceived  and  foaled  horses  in
24    races  that  are  not  restricted  to  Illinois conceived and
25    foaled horses.
26        (c)  Conditions of races under subsection  (b)  shall  be
27    commensurate  with  past  performance,  quality  and class of
28    Illinois conceived and foaled horses available.  If, however,
29    sufficient competition cannot be had  among  horses  of  that
30    class  on  any day, the races may, with consent of the Board,
31    be eliminated for that day and substitute races provided.
32        (d)  There is hereby created a special fund of the  State
33    Treasury  to  be  known as the Illinois Standardbred Breeders
34    Fund.
 
                            -85-     LRB093 05454 LRD 17090 a
 1        During the calendar year 1981, and each year  thereafter,
 2    except  as  provided  in subsection (g) of Section 27 of this
 3    Act, eight and one-half per cent of all the  monies  received
 4    by  the  State  as privilege taxes on harness racing meetings
 5    shall be paid into the Illinois Standardbred Breeders Fund.
 6        (e)  The Illinois Standardbred  Breeders  Fund  shall  be
 7    administered  by  the  Department  of  Agriculture  with  the
 8    assistance  and  advice  of  the  Advisory  Board  created in
 9    subsection (f) of this Section.
10        (f)  The Illinois  Standardbred  Breeders  Fund  Advisory
11    Board is hereby created.  The Advisory Board shall consist of
12    the  Director  of  the  Department  of Agriculture, who shall
13    serve as Chairman; the Superintendent of the  Illinois  State
14    Fair;  a  member  of the Illinois Racing Board, designated by
15    it; a representative of the Illinois Standardbred Owners  and
16    Breeders  Association, recommended by it; a representative of
17    the Illinois Association of Agricultural  Fairs,  recommended
18    by  it,  such  representative  to  be  from  a  fair at which
19    Illinois  conceived  and  foaled  racing  is   conducted;   a
20    representative   of  the  organization  licensees  conducting
21    harness  racing  meetings,  recommended   by   them   and   a
22    representative    of    the   Illinois   Harness   Horsemen's
23    Association, recommended by it.  Advisory Board members shall
24    serve for 2 years commencing January 1, of each odd  numbered
25    year.  If representatives of the Illinois Standardbred Owners
26    and   Breeders  Associations,  the  Illinois  Association  of
27    Agricultural   Fairs,   the   Illinois   Harness   Horsemen's
28    Association,  and  the  organization   licensees   conducting
29    harness  racing meetings have not been recommended by January
30    1, of each odd numbered year, the Director of the  Department
31    of Agriculture shall make an appointment for the organization
32    failing  to  so  recommend  a  member  of the Advisory Board.
33    Advisory Board members  shall  receive  no  compensation  for
34    their  services  as  members  but shall be reimbursed for all
 
                            -86-     LRB093 05454 LRD 17090 a
 1    actual and necessary expenses and disbursements  incurred  in
 2    the execution of their official duties.
 3        (g)  No  monies  shall  be  expended  from  the  Illinois
 4    Standardbred  Breeders  Fund  except  as  appropriated by the
 5    General Assembly.   Monies  appropriated  from  the  Illinois
 6    Standardbred   Breeders   Fund   shall  be  expended  by  the
 7    Department of Agriculture, with the assistance and advice  of
 8    the  Illinois  Standardbred  Breeders Fund Advisory Board for
 9    the following purposes only:
10             1.  To provide purses for races limited to  Illinois
11        conceived  and  foaled  horses  at the State Fair and the
12        DuQuoin State Fair.
13             2.  To provide purses for races limited to  Illinois
14        conceived and foaled horses at county fairs.
15             3.  To  provide  purse supplements for races limited
16        to Illinois conceived  and  foaled  horses  conducted  by
17        associations conducting harness racing meetings.
18             4.  No  less  than 75% of all monies in the Illinois
19        Standardbred Breeders Fund shall be expended  for  purses
20        in 1, 2 and 3 as shown above.
21             5.  In   the   discretion   of   the  Department  of
22        Agriculture to provide  awards  to  harness  breeders  of
23        Illinois  conceived  and  foaled  horses  which win races
24        conducted by organization  licensees  conducting  harness
25        racing  meetings. A breeder is the owner of a mare at the
26        time of conception.  No  more  than  10%  of  all  monies
27        appropriated from the Illinois Standardbred Breeders Fund
28        shall  be  expended for such harness breeders awards.  No
29        more than 25% of the amount expended for harness breeders
30        awards shall be expended for  expenses  incurred  in  the
31        administration of such harness breeders awards.
32             6.  To  pay for the improvement of racing facilities
33        located at the State Fair and County fairs.
34             7.  To   pay   the   expenses   incurred   in    the
 
                            -87-     LRB093 05454 LRD 17090 a
 1        administration  of  the  Illinois  Standardbred  Breeders
 2        Fund.
 3             8.  To   promote   the   sport  of  harness  racing,
 4        including grants up to a maximum of $7,500 per  fair  per
 5        year  for  the  cost of a totalizer system to be used for
 6        conducting pari-mutuel  wagering  during  the  advertised
 7        dates of a county fair.
 8        (h)  Whenever  the  Governor finds that the amount in the
 9    Illinois Standardbred Breeders Fund is more than the total of
10    the outstanding appropriations from such fund,  the  Governor
11    shall notify the State Comptroller and the State Treasurer of
12    such  fact.  The  Comptroller  and the  State Treasurer, upon
13    receipt of such  notification,  shall  transfer  such  excess
14    amount  from  the  Illinois Standardbred Breeders Fund to the
15    General Revenue Fund.
16        (i)  A sum equal to 12 1/2% of the first prize  money  of
17    every  purse  won  by  an Illinois conceived and foaled horse
18    shall be paid by the  organization  licensee  conducting  the
19    horse  race meeting to the breeder of such winning horse from
20    the  organization  licensee's  account  share  of  the  money
21    wagered. Such payment shall not reduce any award to the owner
22    of the horse or reduce the  taxes  payable  under  this  Act.
23    Such  payment shall be delivered by the organization licensee
24    at the end of each month race meeting.
25        (j)  The Department of Agriculture shall, by  rule,  with
26    the  assistance  and  advice  of  the  Illinois  Standardbred
27    Breeders Fund Advisory Board:
28        1.  Qualify  stallions for Illinois Standardbred Breeders
29    Fund breeding; such stallion shall be owned by a resident  of
30    the  State  of  Illinois or by an Illinois corporation all of
31    whose shareholders, directors, officers and incorporators are
32    residents of the State  of  Illinois.   Such  stallion  shall
33    stand  for service at and within the State of Illinois at the
34    time of a foal's conception, and such stallion must not stand
 
                            -88-     LRB093 05454 LRD 17090 a
 1    for service at any place, nor may semen from such stallion be
 2    transported,  outside  the  State  of  Illinois  during  that
 3    calendar year in which the foal is  conceived  and  that  the
 4    owner of the stallion was for the 12 months prior, a resident
 5    of  Illinois.  The  articles of agreement of any partnership,
 6    joint venture, limited partnership, syndicate, association or
 7    corporation  and  any  bylaws  and  stock  certificates  must
 8    contain a restriction that provides  that  the  ownership  or
 9    transfer of interest by any one of the persons a party to the
10    agreement  can  only  be made to a person who qualifies as an
11    Illinois resident.  Foals  conceived  outside  the  State  of
12    Illinois  from  shipped  semen  from a stallion qualified for
13    breeders' awards under  this  Section  are  not  eligible  to
14    participate in the Illinois conceived and foaled program.
15        2.  Provide  for  the  registration of Illinois conceived
16    and foaled horses and no such  horse  shall  compete  in  the
17    races  limited to Illinois conceived and foaled horses unless
18    registered  with  the   Department   of   Agriculture.    The
19    Department  of Agriculture may prescribe such forms as may be
20    necessary to determine the eligibility  of  such  horses.  No
21    person  shall  knowingly  prepare  or cause preparation of an
22    application for registration of such foals  containing  false
23    information.  A  mare  (dam) must be in the state at least 30
24    days prior to foaling or remain in the State at least 30 days
25    at the time of foaling.  Beginning  with  the  1996  breeding
26    season and for foals of 1997 and thereafter, a foal conceived
27    in  the  State  of Illinois by transported fresh semen may be
28    eligible  for  Illinois  conceived  and  foaled  registration
29    provided all breeding and foaling requirements are met.   The
30    stallion must be qualified for Illinois Standardbred Breeders
31    Fund  breeding at the time of conception and the mare must be
32    inseminated within the State of Illinois.  The foal  must  be
33    dropped   in   Illinois  and  properly  registered  with  the
34    Department of Agriculture in accordance with this Act.
 
                            -89-     LRB093 05454 LRD 17090 a
 1        3.  Provide that at least a 5 day racing program shall be
 2    conducted at the State Fair each year,  which  program  shall
 3    include  at  least  the  following  races limited to Illinois
 4    conceived and foaled horses:  (a) a two  year  old  Trot  and
 5    Pace,  and Filly Division of each;  (b) a three year old Trot
 6    and Pace, and Filly Division of each;  (c) an aged  Trot  and
 7    Pace, and Mare Division of each.
 8        4.  Provide for the payment of nominating, sustaining and
 9    starting fees for races promoting the sport of harness racing
10    and  for  the  races  to  be  conducted  at the State Fair as
11    provided in subsection (j) 3 of this  Section  provided  that
12    the nominating, sustaining and starting payment required from
13    an  entrant  shall  not  exceed 2% of the purse of such race.
14    All nominating, sustaining and  starting  payments  shall  be
15    held  for  the  benefit  of entrants and shall be paid out as
16    part of the respective purses  for  such  races.  Nominating,
17    sustaining  and starting fees shall be held in trust accounts
18    for the purposes as set forth in this Act and  in  accordance
19    with  Section 205-15 of the Department of Agriculture Law (20
20    ILCS 205/205-15).
21        5.  Provide for the registration with the  Department  of
22    Agriculture  of Colt Associations or county fairs desiring to
23    sponsor races at county fairs.
24        (k)  The Department of Agriculture, with the  advice  and
25    assistance   of   the  Illinois  Standardbred  Breeders  Fund
26    Advisory Board, may allocate monies for purse supplements for
27    such races.  In determining whether to allocate money and the
28    amount, the Department of Agriculture shall consider factors,
29    including  but  not  limited  to,   the   amount   of   money
30    appropriated  for  the  Illinois  Standardbred  Breeders Fund
31    program,  the  number  of  races  that  may  occur,  and   an
32    organizational     licensee's     purse    structure.     The
33    organizational  licensee  shall  notify  the  Department   of
34    Agriculture  of  the  conditions and minimum purses for races
 
                            -90-     LRB093 05454 LRD 17090 a
 1    limited  to  Illinois  conceived  and  foaled  horses  to  be
 2    conducted  by  each  organizational  licensee  conducting   a
 3    harness  racing meeting for which purse supplements have been
 4    negotiated.
 5        (l)  All races held at county fairs and  the  State  Fair
 6    which  receive  funds from the Illinois Standardbred Breeders
 7    Fund shall be conducted in accordance with the rules  of  the
 8    United  States Trotting Association unless otherwise modified
 9    by the Department of Agriculture.
10        (m)  At all standardbred race meetings held or  conducted
11    under authority of a license granted by the Board, and at all
12    standardbred races held at county fairs which are approved by
13    the  Department  of Agriculture or at the Illinois or DuQuoin
14    State Fairs, no one shall jog, train,  warm  up  or  drive  a
15    standardbred  horse  unless he or she is wearing a protective
16    safety helmet, with the chin strap  fastened  and  in  place,
17    which  meets  the  standards and requirements as set forth in
18    the 1984 Standard for Protective Headgear for Use in  Harness
19    Racing  and  Other  Equestrian  Sports published by the Snell
20    Memorial Foundation, or any standards  and  requirements  for
21    headgear  the  Illinois  Racing Board may approve.  Any other
22    standards and requirements so approved  by  the  Board  shall
23    equal  or  exceed  those  published  by  the  Snell  Memorial
24    Foundation.   Any  equestrian  helmet bearing the Snell label
25    shall be deemed to have met those standards and requirements.
26    (Source: P.A. 91-239, eff. 1-1-00.)

27        (230 ILCS 5/34.2 new)
28        Sec. 34.2.  Racetrack consolidation.
29        (a)  Findings.    The   General   Assembly   finds   that
30    encouraging organization licensees  to  consolidate  will  be
31    beneficial   to  the  horse  racing  industry.   The  General
32    Assembly declares it to be the public policy of this State to
33    enhance  the  viability  of  the  horse  racing  industry  by
 
                            -91-     LRB093 05454 LRD 17090 a
 1    encouraging organization licensees to consolidate and not  be
 2    penalized  or  lose any rights, benefits, or powers by reason
 3    of such consolidation.
 4        (b)  Consolidation.   Notwithstanding  any  provision  of
 5    this Act to the contrary, if 2 or  more  former  or  existing
 6    organization licensees consolidate into a single organization
 7    licensee  or  otherwise  form  a  joint venture, corporation,
 8    limited liability company, or similar consolidated enterprise
 9    (consolidated organization licensee) whereby the consolidated
10    organization licensee makes application or joint application,
11    as the case may be, as a  single  organization  licensee,  or
12    such  existing  licensees, after consolidation, make separate
13    applications in the names of such pre-existing licensees, the
14    newly  consolidated  organization  licensee  or   each   such
15    separate pre-existing licensee shall thereafter retain and be
16    entitled   to  all  of  the  rights,  benefits,  powers,  and
17    obligations under this Act that would have otherwise  accrued
18    to   each   such  individual  pre-consolidation  organization
19    licensee but for such consolidation,  regardless  of  whether
20    all  or  a  portion  of the facilities of a pre-consolidation
21    licensee are sold, transferred,  or  otherwise  cease  to  be
22    utilized  by  the newly consolidated organization licensee or
23    either of the pre-existing licensees.  Such multiple  rights,
24    benefits,  powers,  and obligations shall include, but not be
25    limited to:
26             (1)  the  authority  to  make  application  for  and
27        receive, within  the  discretion  of  the  Board,  racing
28        dates,  including  host track days, in the same manner as
29        the individual pre-consolidation  organization  licensees
30        and  the racetracks from which the organization licensees
31        derive their licenses;
32             (2)  the right to retain  the  existing  inter-track
33        wagering   licenses  and  inter-track  wagering  location
34        licenses of the individual pre-consolidation organization
 
                            -92-     LRB093 05454 LRD 17090 a
 1        licensees and the racetracks from which the  organization
 2        licensees  derive  their  licenses,  and the authority to
 3        make application for future inter-track wagering licenses
 4        and inter-track wagering location licenses  in  the  same
 5        manner  as each individual pre-consolidation organization
 6        licensee   and   the   racetracks   from    which    each
 7        pre-consolidation   organization   licensee  derives  its
 8        license had or has in its own right; and
 9             (3)  all existing and future rights,  benefits,  and
10        powers that the individual pre-consolidation organization
11        licensees  and the racetracks from which the organization
12        licensees  derive  their  licenses  would  have  had   or
13        received but for the consolidation, provided that nothing
14        in  this  Section  shall  be  deemed  to  create  in  the
15        consolidated organization licensee any rights superior to
16        those   of   a   non-consolidated   licensee,  except  as
17        specifically provided in this Section.
18        The newly consolidated  organization  licensee  shall  be
19    subject to such taxation and fees as other similarly situated
20    organization  licensees.  This  Section  shall  apply  to any
21    consolidation occurring after January 1, 2002.

22        (230 ILCS 5/36) (from Ch. 8, par. 37-36)
23        Sec.  36.   (a)   Whoever  administers  or  conspires  to
24    administer to  any horse  a  hypnotic,  narcotic,  stimulant,
25    depressant  or  any  chemical  substance which may affect the
26    speed of a horse at any time in any race where the  purse  or
27    any  part  of  the  purse  is made of money authorized by any
28    Section  of  this  Act,  except  those  chemical   substances
29    permitted  by  ruling of the Board, internally, externally or
30    by hypodermic method in a race or prior thereto,  or  whoever
31    knowingly  enters  a  horse in any race within a period of 24
32    hours after any hypnotic, narcotic, stimulant, depressant  or
33    any  other chemical substance which may affect the speed of a
 
                            -93-     LRB093 05454 LRD 17090 a
 1    horse at any time, except those chemical substances permitted
 2    by ruling of the Board, has been administered to  such  horse
 3    either  internally  or externally or by hypodermic method for
 4    the purpose of increasing or  retarding  the  speed  of  such
 5    horse  shall  be guilty of a Class 4 felony.  The Board shall
 6    suspend or revoke such violator's license.
 7        (b)  The term "hypnotic" as used in this Section includes
 8    all barbituric acid preparations and derivatives.
 9        (c)  The term "narcotic" as used in this Section includes
10    opium  and  all  its  alkaloids,  salts,   preparations   and
11    derivatives,  cocaine  and  all  its  salts, preparations and
12    derivatives and substitutes.
13        (d)  The provisions of this Section 36 and the  treatment
14    authorized herein apply to horses entered in and competing in
15    race  meetings  as defined in Section 3.47 of this Act and to
16    horses entered in and competing at any county fair.
17    (Source: P.A. 79-1185.)

18        (230 ILCS 5/42) (from Ch. 8, par. 37-42)
19        Sec. 42.  (a)  Except as to the  distribution  of  monies
20    provided  for by Sections 28, 29, 30, and 31 and the treating
21    of horses as provided in Section 36,  nothing  whatsoever  in
22    this  Act shall be held or taken to apply to county fairs and
23    State Fairs or  to  agricultural  and  livestock  exhibitions
24    where  the  pari-mutuel system of wagering upon the result of
25    horses is not permitted or conducted.
26        (b)  Nothing herein shall  be  construed  to  permit  the
27    pari-mutuel  method  of  wagering  upon any race track unless
28    such race track is licensed under this  Act.   It  is  hereby
29    declared  to be unlawful for any person to permit, conduct or
30    supervise upon any race track ground the  pari-mutuel  method
31    of  wagering except in accordance with the provisions of this
32    Act.
33        (c)  Whoever violates subsection (b) of this  Section  is
 
                            -94-     LRB093 05454 LRD 17090 a
 1    guilty of a Class 4 felony.
 2    (Source: P.A. 89-16, eff. 5-30-95.)

 3        (230 ILCS 5/56 new)
 4        Sec. 56. Electronic gaming.
 5        (a)  An  organization  licensee  may  apply to the Gaming
 6    Board for an electronic gaming license.  An electronic gaming
 7    license shall authorize its holder  to  conduct  gambling  at
 8    slot  machines  on  the grounds of the licensee's race track.
 9    Only one organization licensee per race track may be  awarded
10    an  electronic gaming license. Each license shall specify the
11    number of slot machines that  its  holder  may  operate.   An
12    electronic  gaming  licensee  may not permit persons under 21
13    years of age to be present in its electronic gaming facility,
14    but the  licensee  may  accept  wagers  on  live  racing  and
15    inter-track wagers at its electronic gaming facility.
16        (b)  The   adjusted   gross   receipts   received  by  an
17    electronic gaming licensee from electronic  gaming  remaining
18    after  the payment of taxes under Section 13 of the Riverboat
19    Gambling Act shall be distributed as follows:
20             77.5% shall be retained by the licensee;
21             20% shall be paid to purse equity accounts;
22             1.75% shall be paid  to  the  Illinois  Thoroughbred
23        Breeders  Fund  and  the  Illinois  Standardbred Breeders
24        Fund, divided pro rata based on the  proportion  of  live
25        thoroughbred   racing   and   live   standardbred  racing
26        conducted at that licensee's race track;
27             0.25% shall be paid to the  Illinois  Quarter  Horse
28        Breeders Fund;
29             0.125%  shall  be paid to the University of Illinois
30        for equine research;
31             0.125%  shall  be  paid  to  the   Racing   Industry
32        Charitable Foundation;
33             0.25%  shall  be  paid to the licensee's live racing
 
                            -95-     LRB093 05454 LRD 17090 a
 1        and horse ownership promotional account.
 2        Of the  moneys  paid  to  purse  equity  accounts  by  an
 3    electronic   gaming  licensee,  58%  shall  be  paid  to  the
 4    licensee's thoroughbred purse equity account and 42% shall be
 5    paid to the licensee's standardbred purse equity account.

 6        Section 80.  The Riverboat Gambling  Act  is  amended  by
 7    changing Sections 3, 4, 5, 7, 8, 9, 11, 11.1, 12, 13, 14, 18,
 8    19, and 20 and adding Sections 7.4 and 7.5 as follows:

 9        (230 ILCS 10/3) (from Ch. 120, par. 2403)
10        Sec. 3.  Riverboat Gambling Authorized.
11        (a)  Riverboat  gambling operations and electronic gaming
12    operations and the system of wagering  incorporated  therein,
13    as  defined  in this Act, are hereby authorized to the extent
14    that they are carried out in accordance with  the  provisions
15    of this Act.
16        (b)  This Act does not apply to the pari-mutuel system of
17    wagering  used  or intended to be used in connection with the
18    horse-race meetings as authorized under  the  Illinois  Horse
19    Racing  Act  of  1975,  lottery  games  authorized  under the
20    Illinois  Lottery  Law,  bingo  authorized  under  the  Bingo
21    License and Tax Act, charitable games  authorized  under  the
22    Charitable  Games  Act  or  pull tabs and jar games conducted
23    under the Illinois Pull Tabs and Jar Games Act. This Act does
24    apply to electronic  gaming  authorized  under  the  Illinois
25    Horse  Racing  Act of 1975 to the extent provided in that Act
26    and in this Act.
27        (c)  Riverboat gambling conducted pursuant  to  this  Act
28    may be authorized upon any water within the State of Illinois
29    or  any  water  other  than Lake Michigan which constitutes a
30    boundary  of  the  State  of  Illinois.  Notwithstanding  any
31    provision in this subsection (c) to the contrary, a  licensee
32    that  receives  its  license  pursuant to subsection (e-5) of
 
                            -96-     LRB093 05454 LRD 17090 a
 1    Section  7  authorizing  its  holder  to  conduct   riverboat
 2    gambling  from  a  home  dock  in  Lake  County  may  conduct
 3    riverboat  gambling on Lake Michigan from a home dock located
 4    on Lake  Michigan.  Notwithstanding  any  provision  in  this
 5    subsection  (c)  to  the  contrary,  a  licensee  may conduct
 6    gambling at its home dock facility as provided in Sections  7
 7    and  11. A licensee may conduct riverboat gambling authorized
 8    under this Act regardless of whether  it  conducts  excursion
 9    cruises.   A  licensee  may permit the continuous ingress and
10    egress of passengers for the purpose of gambling.
11        (d)  Gambling that is conducted in accordance  with  this
12    Act  using  slot  machines  shall be authorized at electronic
13    gaming facilities as provided in this Act.
14    (Source: P.A. 91-40, eff. 6-25-99.)

15        (230 ILCS 10/4) (from Ch. 120, par. 2404)
16        Sec. 4.  Definitions. As used in this Act:
17        (a)  "Board" means the Illinois Gaming Board.
18        (b)  "Occupational license" means a license issued by the
19    Board to a person or entity to perform  an  occupation  which
20    the  Board has identified as requiring a license to engage in
21    riverboat gambling in Illinois.
22        (c)  "Gambling game" includes, but  is  not  limited  to,
23    baccarat,  twenty-one, poker, craps, slot machine, video game
24    of chance, roulette wheel, klondike table,  punchboard,  faro
25    layout,  keno  layout, numbers ticket, push card, jar ticket,
26    or pull tab which is authorized by the Board  as  a  wagering
27    device under this Act.
28        (d)  "Riverboat" means a self-propelled excursion boat, a
29    permanently  moored  barge, or permanently moored barges that
30    are permanently fixed together to operate as one  vessel,  on
31    which  lawful gambling is authorized and licensed as provided
32    in this Act.
33        (e)  (Blank).
 
                            -97-     LRB093 05454 LRD 17090 a
 1        (f)  "Dock" means the location where  a  riverboat  moors
 2    for  the purpose of embarking passengers for and disembarking
 3    passengers from the riverboat.
 4        (g)  "Gross receipts" means the  total  amount  of  money
 5    exchanged  for  the  purchase  of chips, tokens or electronic
 6    cards by riverboat patrons  or  electronic  gaming  operation
 7    patrons.
 8        (h)  "Adjusted  gross  receipts" means the gross receipts
 9    less winnings paid to wagerers.
10        (i)  "Cheat" means to alter  the  selection  of  criteria
11    which  determine  the result of a gambling game or the amount
12    or frequency of payment in a gambling game.
13        (j)  "Department" means the Department of Revenue.
14        (k)  "Gambling operation" means the conduct of authorized
15    gambling games authorized under this Act on upon a  riverboat
16    or  authorized  under  this Act and the Illinois Horse Racing
17    Act of 1975 at an electronic gaming facility.
18        "Owners license" means a  license  to  conduct  riverboat
19    gambling  operations,  but  does  not  include  an electronic
20    gaming license.
21        "Licensed owner" means  a  person  who  holds  an  owners
22    license.
23        "Electronic gaming license" means a license issued by the
24    Board  under  Section  7.4 of this Act authorizing electronic
25    gaming at an electronic gaming facility.
26        "Electronic gaming" means the conduct of  gambling  using
27    slot  machines  at  a  race track licensed under the Illinois
28    Horse Racing Act of  1975  pursuant  to  the  Illinois  Horse
29    Racing Act of 1975 and this Act.
30        "Electronic  gaming  facility"  means  the area where the
31    Board has authorized limited gaming at a  race  track  of  an
32    organization  licensee under the Illinois Horse Racing Act of
33    1975 that holds an electronic gaming license.
34        "Organization licensee" means an entity authorized by the
 
                            -98-     LRB093 05454 LRD 17090 a
 1    Illinois Racing Board  to  conduct  pari-mutuel  wagering  in
 2    accordance with the Illinois Horse Racing Act of 1975.
 3    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

 4        (230 ILCS 10/5) (from Ch. 120, par. 2405)
 5        Sec. 5.  Gaming Board.
 6        (a) (1)  There   is   hereby   established   within   the
 7    Department  of  Revenue  an Illinois Gaming Board which shall
 8    have the powers and duties specified in  this  Act,  and  all
 9    other  powers  necessary  and proper to fully and effectively
10    execute  this  Act  for   the   purpose   of   administering,
11    regulating,  and  enforcing  the system of riverboat gambling
12    established by this Act. Its jurisdiction shall extend  under
13    this   Act   to   every   person,  association,  corporation,
14    partnership  and  trust  involved   in   riverboat   gambling
15    operations in the State of Illinois.
16        (2)  The Board shall consist of 5 members to be appointed
17    by  the  Governor  with the advice and consent of the Senate,
18    one of whom  shall  be  designated  by  the  Governor  to  be
19    chairman.   Each  member shall have a reasonable knowledge of
20    the  practice,   procedure   and   principles   of   gambling
21    operations.  Each  member  shall  either  be  a  resident  of
22    Illinois  or  shall certify that he will become a resident of
23    Illinois before taking office. At least one member  shall  be
24    experienced in law enforcement and criminal investigation, at
25    least  one  member  shall  be  a  certified public accountant
26    experienced in accounting and  auditing,  and  at  least  one
27    member  shall  be  a  lawyer  licensed  to  practice  law  in
28    Illinois.
29        (3)  The  terms of office of the Board members shall be 3
30    years, except that the terms of office of the  initial  Board
31    members appointed pursuant to this Act will commence from the
32    effective  date  of  this  Act and run as follows:  one for a
33    term ending July 1, 1991, 2 for a term ending July  1,  1992,
 
                            -99-     LRB093 05454 LRD 17090 a
 1    and 2 for a term ending July 1, 1993.  Upon the expiration of
 2    the  foregoing  terms,  the  successors of such members shall
 3    serve a term for 3  years  and  until  their  successors  are
 4    appointed  and  qualified  for  like  terms. Vacancies in the
 5    Board shall be filled for the unexpired term in  like  manner
 6    as  original appointments.  Each member of the Board shall be
 7    eligible for reappointment at the discretion of the  Governor
 8    with the advice and consent of the Senate.
 9        (4)  Each member of the Board shall receive $300 for each
10    day  the Board meets and for each day the member conducts any
11    hearing pursuant to this Act.  Each member of the Board shall
12    also be reimbursed for all actual and necessary expenses  and
13    disbursements incurred in the execution of official duties.
14        (5)  No  person  shall be appointed a member of the Board
15    or continue to be a member of the  Board  who  is,  or  whose
16    spouse,  child  or  parent  is,  a  member  of  the  board of
17    directors of, or a  person  financially  interested  in,  any
18    gambling operation subject to the jurisdiction of this Board,
19    or  any  race  track, race meeting, racing association or the
20    operations  thereof  subject  to  the  jurisdiction  of   the
21    Illinois  Racing Board.  No Board member shall hold any other
22    public office for which he shall receive  compensation  other
23    than  necessary  travel  or  other  incidental  expenses.  No
24    person shall be a member of the Board  who  is  not  of  good
25    moral  character  or  who  has been convicted of, or is under
26    indictment for, a felony under the laws of  Illinois  or  any
27    other state, or the United States.
28        (6)  Any  member  of  the  Board  may  be  removed by the
29    Governor for neglect of duty,  misfeasance,  malfeasance,  or
30    nonfeasance in office.
31        (7)  Before  entering upon the discharge of the duties of
32    his office, each member of the Board shall take an oath  that
33    he will faithfully execute the duties of his office according
34    to  the  laws  of  the  State  and  the rules and regulations
 
                            -100-    LRB093 05454 LRD 17090 a
 1    adopted therewith  and  shall  give  bond  to  the  State  of
 2    Illinois,  approved  by  the Governor, in the sum of $25,000.
 3    Every such bond, when duly executed and  approved,  shall  be
 4    recorded  in  the office of the Secretary of State.  Whenever
 5    the Governor determines that the bond of any  member  of  the
 6    Board   has   become  or  is  likely  to  become  invalid  or
 7    insufficient, he shall require such member forthwith to renew
 8    his bond, which is to  be  approved  by  the  Governor.   Any
 9    member  of  the  Board  who  fails to take oath and give bond
10    within 30 days from the date of his appointment, or who fails
11    to renew his bond within 30 days after it is demanded by  the
12    Governor,  shall  be  guilty  of  neglect  of duty and may be
13    removed by the Governor.  The cost of any bond given  by  any
14    member of the Board under this Section shall be taken to be a
15    part of the necessary expenses of the Board.
16        (8)  Upon  the request of the Board, the Department shall
17    employ such personnel as may be necessary to  carry  out  the
18    functions of the Board.  No person shall be employed to serve
19    the  Board  who  is,  or whose spouse, parent or child is, an
20    official of, or has a  financial  interest  in  or  financial
21    relation  with,  any  operator engaged in gambling operations
22    within this State or any organization engaged  in  conducting
23    horse racing within this State.  Any employee violating these
24    prohibitions shall be subject to termination of employment.
25        (9)  An  Administrator  shall  perform any and all duties
26    that  the  Board  shall  assign  him.   The  salary  of   the
27    Administrator  shall  be determined by the Board and approved
28    by the Director of the Department and, in addition, he  shall
29    be  reimbursed for all actual and necessary expenses incurred
30    by  him  in  discharge   of   his   official   duties.    The
31    Administrator  shall  keep  records of all proceedings of the
32    Board and shall preserve all records,  books,  documents  and
33    other papers belonging to the Board or entrusted to its care.
34    The Administrator shall devote his full time to the duties of
 
                            -101-    LRB093 05454 LRD 17090 a
 1    the office and shall not hold any other office or employment.
 2        (b)  The  Board shall have general responsibility for the
 3    implementation of this  Act.   Its  duties  include,  without
 4    limitation, the following:
 5             (1)  To  decide promptly and in reasonable order all
 6        license applications. Any party aggrieved by an action of
 7        the Board denying, suspending, revoking,  restricting  or
 8        refusing  to renew a license may request a hearing before
 9        the Board.  A request for a hearing must be made  to  the
10        Board in writing within 5 days after service of notice of
11        the  action  of  the  Board.  Notice of the action of the
12        Board shall be served either by personal delivery  or  by
13        certified mail, postage prepaid, to the aggrieved party.
14        Notice  served by certified mail shall be deemed complete
15        on the business day following the date of  such  mailing.
16        The  Board  shall conduct all requested hearings promptly
17        and in reasonable order;
18             (2)  To conduct all  hearings  pertaining  to  civil
19        violations   of   this   Act  or  rules  and  regulations
20        promulgated hereunder;
21             (3)  To promulgate such rules and regulations as  in
22        its  judgment  may be necessary to protect or enhance the
23        credibility  and   integrity   of   gambling   operations
24        authorized   by  this  Act  and  the  regulatory  process
25        hereunder;
26             (4)  To provide for the establishment and collection
27        of all license and registration fees and taxes imposed by
28        this Act and the rules and  regulations  issued  pursuant
29        hereto.   All such fees and taxes shall be deposited into
30        the State Gaming Fund;
31             (5)  To provide  for  the  levy  and  collection  of
32        penalties  and  fines  for the violation of provisions of
33        this  Act  and  the  rules  and  regulations  promulgated
34        hereunder.   All  such  fines  and  penalties  shall   be
 
                            -102-    LRB093 05454 LRD 17090 a
 1        deposited  into the Education Assistance Fund, created by
 2        Public Act 86-0018, of the State of Illinois;
 3             (6)  To be present through its inspectors and agents
 4        any  time  gambling  operations  are  conducted  on   any
 5        riverboat  or  at  any electronic gaming facility for the
 6        purpose of  certifying  the  revenue  thereof,  receiving
 7        complaints  from  the  public,  and conducting such other
 8        investigations into the conduct of the gambling games and
 9        the maintenance of the equipment as from time to time the
10        Board may deem necessary and proper;
11             (7)  To review and rule  upon  any  complaint  by  a
12        licensee  regarding  any  investigative procedures of the
13        State which  are  unnecessarily  disruptive  of  gambling
14        operations.  The need to inspect and investigate shall be
15        presumed  at  all  times.  The disruption of a licensee's
16        operations  shall  be  proved  by  clear  and  convincing
17        evidence, and establish that:  (A) the procedures had  no
18        reasonable   law   enforcement   purposes,  and  (B)  the
19        procedures were so disruptive as to unreasonably  inhibit
20        gambling operations;
21             (8)  To  hold  at  least one meeting each quarter of
22        the fiscal year.  In addition, special  meetings  may  be
23        called  by  the  Chairman  or any 2 Board members upon 72
24        hours written notice to each member.  All Board  meetings
25        shall  be subject to the Open Meetings Act. Three members
26        of the Board shall constitute a quorum, and 3 votes shall
27        be required for any final  determination  by  the  Board.
28        The  Board  shall  keep a complete and accurate record of
29        all its meetings. A majority of the members of the  Board
30        shall  constitute  a  quorum  for  the transaction of any
31        business, for the performance of any  duty,  or  for  the
32        exercise  of  any power which this Act requires the Board
33        members to transact, perform or exercise en banc,  except
34        that,  upon  order of the Board, one of the Board members
 
                            -103-    LRB093 05454 LRD 17090 a
 1        or an administrative law judge designated  by  the  Board
 2        may conduct any hearing provided for under this Act or by
 3        Board  rule  and  may recommend findings and decisions to
 4        the Board.  The Board member or administrative law  judge
 5        conducting  such hearing shall have all powers and rights
 6        granted to the Board in this Act. The record made at  the
 7        time  of the hearing shall be reviewed by the Board, or a
 8        majority thereof, and the findings and  decision  of  the
 9        majority  of  the Board shall constitute the order of the
10        Board in such case;
11             (9)  To maintain  records  which  are  separate  and
12        distinct  from  the  records  of any other State board or
13        commission.  Such records shall be available  for  public
14        inspection   and   shall  accurately  reflect  all  Board
15        proceedings;
16             (10)  To file  a  written  annual  report  with  the
17        Governor  on  or  before  March  1  each  year  and  such
18        additional  reports  as  the  Governor  may  request. The
19        annual report shall include a statement of  receipts  and
20        disbursements  by  the Board, actions taken by the Board,
21        and any additional information and recommendations  which
22        the  Board  may  deem  valuable or which the Governor may
23        request;
24             (11)  (Blank); and
25             (12)  To    assume    responsibility     for     the
26        administration  and  enforcement of the Bingo License and
27        Tax Act, the Charitable Games Act, and the Pull Tabs  and
28        Jar  Games  Act if such responsibility is delegated to it
29        by the Director of Revenue; and.
30             (13)  To    assume    responsibility     for     the
31        administration   and   enforcement   of   operations   at
32        electronic gaming facilities pursuant to this Act and the
33        Illinois Horse Racing Act of 1975.
34        (c)  The  Board  shall  have  jurisdiction over and shall
 
                            -104-    LRB093 05454 LRD 17090 a
 1    supervise all gambling operations governed by this Act.   The
 2    Board shall have all powers necessary and proper to fully and
 3    effectively  execute  the  provisions of this Act, including,
 4    but not limited to, the following:
 5             (1)  To investigate  applicants  and  determine  the
 6        eligibility  of  applicants  for  licenses  and to select
 7        among competing  applicants  the  applicants  which  best
 8        serve the interests of the citizens of Illinois.
 9             (2)  To  have  jurisdiction and supervision over all
10        riverboat gambling operations authorized under  this  Act
11        in  this  State  and  all persons in places on riverboats
12        where gambling operations are conducted.
13             (3)  To promulgate rules  and  regulations  for  the
14        purpose  of  administering the provisions of this Act and
15        to prescribe  rules,  regulations  and  conditions  under
16        which  all  riverboat gambling operations subject to this
17        Act in the State shall  be  conducted.   Such  rules  and
18        regulations   are   to  provide  for  the  prevention  of
19        practices detrimental to the public interest and for  the
20        best interests of riverboat gambling, including rules and
21        regulations regarding the inspection of electronic gaming
22        facilities  and  such  riverboats  and  the review of any
23        permits or licenses  necessary  to  operate  a  riverboat
24        under  any  laws or regulations applicable to riverboats,
25        and to impose penalties for violations thereof.
26             (4)  To enter  the  office,  riverboats,  electronic
27        gaming  facilities, and other facilities, or other places
28        of  business  of  a  licensee,  where  evidence  of   the
29        compliance  or  noncompliance with the provisions of this
30        Act is likely to be found.
31             (5)  To investigate alleged violations of  this  Act
32        or  the  rules  of  the  Board  and  to  take appropriate
33        disciplinary action against a licensee or a holder of  an
34        occupational   license  for  a  violation,  or  institute
 
                            -105-    LRB093 05454 LRD 17090 a
 1        appropriate legal action for enforcement, or both.
 2             (6)  To adopt standards for  the  licensing  of  all
 3        persons  under  this  Act,  as  well as for electronic or
 4        mechanical gambling games, and to establish fees for such
 5        licenses.
 6             (7)  To  adopt   appropriate   standards   for   all
 7        electronic   gaming  facilities,  riverboats,  and  other
 8        facilities authorized under this Act.
 9             (8)  To  require   that   the   records,   including
10        financial  or other statements of any licensee under this
11        Act, shall be kept in such manner as  prescribed  by  the
12        Board   and  that  any  such  licensee  involved  in  the
13        ownership or management of gambling operations submit  to
14        the  Board  an  annual  balance sheet and profit and loss
15        statement, list of  the  stockholders  or  other  persons
16        having  a  1%  or  greater  beneficial  interest  in  the
17        gambling  activities  of  each  licensee,   and any other
18        information  the  Board  deems  necessary  in  order   to
19        effectively   administer   this   Act   and   all  rules,
20        regulations, orders and final decisions promulgated under
21        this Act.
22             (9)  To conduct hearings, issue  subpoenas  for  the
23        attendance of witnesses and subpoenas duces tecum for the
24        production   of   books,   records  and  other  pertinent
25        documents in accordance with the Illinois  Administrative
26        Procedure  Act,  and to administer oaths and affirmations
27        to the witnesses, when, in the judgment of the Board,  it
28        is  necessary  to  administer  or enforce this Act or the
29        Board rules.
30             (10)  To prescribe a form to be used by any licensee
31        involved in  the  ownership  or  management  of  gambling
32        operations  as  an  application  for employment for their
33        employees.
34             (11)  To revoke or suspend licenses,  as  the  Board
 
                            -106-    LRB093 05454 LRD 17090 a
 1        may see fit and in compliance with applicable laws of the
 2        State  regarding administrative procedures, and to review
 3        applications for the renewal of licenses.  The Board  may
 4        suspend  an  owners license or electronic gaming license,
 5        without notice or hearing, upon a determination that  the
 6        safety  or  health of patrons or employees is jeopardized
 7        by continuing a gambling operation conducted  under  that
 8        license  a  riverboat's  operation.   The  suspension may
 9        remain in effect until  the  Board  determines  that  the
10        cause  for  suspension  has  been  abated.  The Board may
11        revoke the owners license or  electronic  gaming  license
12        upon a determination that the licensee owner has not made
13        satisfactory progress toward abating the hazard.
14             (12)  To  eject or exclude or authorize the ejection
15        or exclusion  of,  any  person  from  riverboat  gambling
16        facilities where that such person is in violation of this
17        Act, rules and regulations thereunder, or final orders of
18        the  Board,  or where such person's conduct or reputation
19        is such that his or her  presence  within  the  riverboat
20        gambling  facilities  may,  in  the opinion of the Board,
21        call into question  the  honesty  and  integrity  of  the
22        gambling operations or interfere with the orderly conduct
23        thereof;  provided that the propriety of such ejection or
24        exclusion is subject to subsequent hearing by the Board.
25             (13)  To   require   all   licensees   of   gambling
26        operations to utilize a cashless wagering system  whereby
27        all  players'  money  is  converted to tokens, electronic
28        cards, or chips which shall be used only for wagering  in
29        the gambling establishment.
30             (14)  (Blank).
31             (15)  To  suspend,  revoke  or restrict licenses, to
32        require the removal of a licensee or  an  employee  of  a
33        licensee  for  a violation of this Act or a Board rule or
34        for engaging in a  fraudulent  practice,  and  to  impose
 
                            -107-    LRB093 05454 LRD 17090 a
 1        civil  penalties  of up to $5,000 against individuals and
 2        up to $10,000 or an  amount  equal  to  the  daily  gross
 3        receipts, whichever is larger, against licensees for each
 4        violation  of any provision of the Act, any rules adopted
 5        by the Board, any order of the Board or any other  action
 6        which,  in  the  Board's  discretion,  is  a detriment or
 7        impediment to riverboat gambling operations.
 8             (16)  To  hire  employees  to  gather   information,
 9        conduct  investigations  and  carry  out  any other tasks
10        contemplated 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  and  to  have
16        exclusive  authority  to establish the hours for sale and
17        consumption of alcoholic liquor  on  board  a  riverboat,
18        notwithstanding  any  provision of the Liquor Control Act
19        of 1934 or any local ordinance, and regardless of whether
20        the riverboat makes excursions.  The establishment of the
21        hours for sale and consumption  of  alcoholic  liquor  on
22        board  a  riverboat is an exclusive power and function of
23        the State.  A home rule unit may not establish the  hours
24        for  sale  and consumption of alcoholic liquor on board a
25        riverboat.  This subdivision (18) amendatory Act of  1991
26        is  a  denial  and  limitation  of  home  rule powers and
27        functions under subsection (h) of Section  6  of  Article
28        VII of the Illinois Constitution.
29             (19)  After consultation with the U.S. Army Corps of
30        Engineers, to establish binding emergency orders upon the
31        concurrence  of  a  majority  of the members of the Board
32        regarding  the  navigability  of   water,   relative   to
33        excursions,  in  the event of extreme weather conditions,
34        acts of God or other extreme circumstances.
 
                            -108-    LRB093 05454 LRD 17090 a
 1             (20)  To delegate the execution of any of its powers
 2        under this Act  for  the  purpose  of  administering  and
 3        enforcing   this   Act  and  its  rules  and  regulations
 4        hereunder.
 5             (21)  To  make  rules  concerning  the  conduct   of
 6        electronic gaming.
 7             (22)  (21)  To  take  any  other  action  as  may be
 8        reasonable or appropriate to enforce this Act  and  rules
 9        and regulations hereunder.
10        (d)  The Board may seek and shall receive the cooperation
11    of  the  Department  of State Police in conducting background
12    investigations  of   applicants   and   in   fulfilling   its
13    responsibilities  under  this Section.  Costs incurred by the
14    Department of State Police as a result  of  such  cooperation
15    shall   be   paid  by  the  Board  in  conformance  with  the
16    requirements of Section 2605-400 of the Department  of  State
17    Police Law (20 ILCS 2605/2605-400).
18        (e)  The Board must authorize to each investigator and to
19    any  other  employee  of the Board exercising the powers of a
20    peace officer a distinct badge that, on its face, (i) clearly
21    states that the badge is authorized by  the  Board  and  (ii)
22    contains  a  unique identifying number.  No other badge shall
23    be authorized by the Board.
24    (Source:  P.A.  91-40,  eff.  1-1-00;  91-239,  eff.  1-1-00;
25    91-883, eff. 1-1-01.)

26        (230 ILCS 10/7) (from Ch. 120, par. 2407)
27        Sec. 7.  Owners Licenses.
28        (a)  The Board shall issue owners  licenses  to  persons,
29    firms  or  corporations  which  apply  for such licenses upon
30    payment to the Board of the non-refundable license fee set by
31    the Board, upon payment of a  $25,000  license  fee  for  the
32    first  year  of  operation  and a $5,000 license fee for each
33    succeeding year and upon a determination by  the  Board  that
 
                            -109-    LRB093 05454 LRD 17090 a
 1    the  applicant is eligible for an owners  license pursuant to
 2    this Act and the rules of  the  Board.   A  person,  firm  or
 3    corporation is ineligible to receive an owners license if:
 4             (1)  the person has been convicted of a felony under
 5        the  laws  of  this State, any other state, or the United
 6        States;
 7             (2)  the person has been convicted of any  violation
 8        of   Article   28  of  the  Criminal  Code  of  1961,  or
 9        substantially similar laws of any other jurisdiction;
10             (3)  the person has submitted an application  for  a
11        license under this Act which contains false information;
12             (4)  the person is a member of the Board;
13             (5)  a  person defined in (1), (2), (3) or (4) is an
14        officer, director or managerial employee of the  firm  or
15        corporation;
16             (6)  the   firm  or  corporation  employs  a  person
17        defined in (1), (2), (3) or (4) who participates  in  the
18        management or operation of gambling operations authorized
19        under this Act;
20             (7)  (blank); or
21             (8)  a  license  of  the person, firm or corporation
22        issued under this Act, or a license  to  own  or  operate
23        gambling  facilities  in any other jurisdiction, has been
24        revoked.
25        (b)  In determining whether to grant an owners license to
26    an applicant, the Board shall consider:
27             (1)  the  character,  reputation,  experience    and
28        financial integrity of the applicants and of any other or
29        separate person that either:
30                  (A)  controls,  directly  or  indirectly,  such
31             applicant, or
32                  (B)  is  controlled, directly or indirectly, by
33             such  applicant  or  by  a  person  which  controls,
34             directly or indirectly, such applicant;
 
                            -110-    LRB093 05454 LRD 17090 a
 1             (2)  the facilities or proposed facilities  for  the
 2        conduct of riverboat gambling;
 3             (3)  the  highest  prospective  total  revenue to be
 4        derived by  the  State  from  the  conduct  of  riverboat
 5        gambling;
 6             (4)  the  good faith affirmative action plan of each
 7        applicant to recruit, train and upgrade minorities in all
 8        employment classifications;
 9             (5)  the  financial  ability  of  the  applicant  to
10        purchase and maintain  adequate  liability  and  casualty
11        insurance;
12             (6)  whether     the    applicant    has    adequate
13        capitalization to provide and maintain, for the  duration
14        of a license, a riverboat; and
15             (7)  the  extent  to  which the applicant exceeds or
16        meets other standards  for  the  issuance  of  an  owners
17        license which the Board may adopt by rule.
18        (c)  Each  owners  license  shall specify the place where
19    riverboats shall operate and dock.
20        (d)  Each applicant shall submit with his application, on
21    forms provided by the Board, 2 sets of his fingerprints.
22        (e)  In  addition  to  the  licenses   authorized   under
23    subsection  (e-5),  the  Board  may  issue  up to 10 licenses
24    authorizing the holders of such licenses to  own  riverboats.
25    In the application for an owners license, the applicant shall
26    state  the dock at which the riverboat is based and the water
27    on which the riverboat will  be  located.   The  Board  shall
28    issue 5 licenses to become effective not earlier than January
29    1,  1991.   Three  of such licenses shall authorize riverboat
30    gambling on the Mississippi River or, with  approval  by  the
31    municipality   in  which  the  riverboat  is  docked  on  the
32    effective date of this amendatory Act of the  93rd  Assembly,
33    in  a  municipality that (1) borders on the Mississippi River
34    or is within 5 miles of the city  limits  of  a  municipality
 
                            -111-    LRB093 05454 LRD 17090 a
 1    that  borders  on  the  Mississippi  River  and  (2)  on  the
 2    effective  date  of  this  amendatory Act of the 93rd General
 3    Assembly,  has  a  riverboat  conducting  riverboat  gambling
 4    operations pursuant to a license issued under this  Act,  one
 5    of  which shall authorize riverboat gambling from a home dock
 6    in the city of  East  St.  Louis,  and  one  of  which  shall
 7    authorize riverboat gambling on the Mississippi River or in a
 8    municipality  that (1) borders on the Mississippi River or is
 9    within 5 miles of the city  limits  of  a  municipality  that
10    borders  on  the  Mississippi  River and (2) on the effective
11    date of this amendatory Act of the 92nd General Assembly  has
12    a riverboat conducting riverboat gambling operations pursuant
13    to  a  license issued under this Act. One other license shall
14    authorize riverboat gambling on the Illinois River  south  of
15    Marshall  County.   The  Board  shall  issue  one  additional
16    license  to  become effective not earlier than March 1, 1992,
17    which shall authorize riverboat gambling on the  Des  Plaines
18    River  in  Will  County.   The  Board  may issue 4 additional
19    licenses to become effective not earlier than March 1,  1992.
20    In  determining the water upon which riverboats will operate,
21    the Board shall consider the economic benefit which riverboat
22    gambling confers on the State, and shall seek to assure  that
23    all  regions  of  the State share in the economic benefits of
24    riverboat gambling.
25        (e-5)  In  addition  to  the  licenses  authorized  under
26    subsection (e), the Board may  issue  2  additional  licenses
27    authorizing  riverboat  gambling.  One of the licenses issued
28    under this subsection (e-5) shall  authorize  its  holder  to
29    conduct  riverboat  gambling  from a home dock located in the
30    most populous  municipality  within  Lake  County  and  shall
31    authorize  its  holder  to conduct riverboat gambling on Lake
32    Michigan. The other  license  issued  under  this  subsection
33    (e-5)   shall  authorize  its  holder  to  conduct  riverboat
34    gambling in Cook County and south of  Interstate  55  from  a
 
                            -112-    LRB093 05454 LRD 17090 a
 1    home  dock  located on either the Little Calumet River or the
 2    Cal-Sag Channel.
 3        Licenses authorized under this subsection (e-5) shall  be
 4    awarded  pursuant  to a process of competitive bidding to the
 5    highest bidder that is eligible to  hold  an  owners  license
 6    under  this  Act. The minimum bid for an owners license under
 7    this subsection (e-5) shall be $250,000,000.
 8        Any  licensee  that  receives  its  license  under   this
 9    subsection  (e-5)  shall  attain  a  level  of  at  least 20%
10    minority person and female ownership, at  least  16%  and  4%
11    respectively,  within  a time period prescribed by the Board,
12    but not to exceed 12 months from the date the licensee begins
13    conducting riverboat gambling.  The 12-month period shall  be
14    extended  by  the  amount  of  time  necessary  to  conduct a
15    background investigation  pursuant  to  Section  6.  For  the
16    purposes  of  this  Section, the terms "female" and "minority
17    person" have the  meanings  provided  in  Section  2  of  the
18    Business Enterprise for Minorities, Females, and Persons with
19    Disabilities Act.
20        (e-10)  In  granting  all  licenses,  the  Board may give
21    favorable consideration to economically  depressed  areas  of
22    the  State,  to applicants presenting plans which provide for
23    significant economic  development  over  a  large  geographic
24    area,  and  to  applicants who currently operate non-gambling
25    riverboats  in  Illinois.   The  Board   shall   review   all
26    applications  for  owners  licenses,  and  shall  inform each
27    applicant of the Board's decision.
28        (e-15)  The Board may revoke  the  owners  license  of  a
29    licensee  which  fails to begin conducting gambling within 15
30    months of receipt of the Board's approval of the  application
31    if  the  Board  determines  that license revocation is in the
32    best interests of the State.
33        If, subsequent  to  the  conduct  of  riverboat  gambling
34    operations  under  a license issued under this Act, riverboat
 
                            -113-    LRB093 05454 LRD 17090 a
 1    gambling operations are not conducted under that license  for
 2    a period of at least 12 months, the license shall be declared
 3    dormant and shall be revoked by the Board.
 4        (f)  The  first  10 owners licenses issued under this Act
 5    shall permit the  holder  to  own  up  to  2  riverboats  and
 6    equipment thereon for a period of 3 years after the effective
 7    date  of the license. Holders of the first 10 owners licenses
 8    must pay the annual license fee  for  each  of  the  3  years
 9    during which they are authorized to own riverboats.
10        (g)  Upon  the  termination, expiration, or revocation of
11    each of the first 10 licenses, which shall be issued for a  3
12    year period, all licenses are renewable annually upon payment
13    of the fee and a determination by the Board that the licensee
14    continues to meet all of the requirements of this Act and the
15    Board's rules.  However, for licenses renewed on or after May
16    1, 1998, renewal shall be for a period of 4 years, unless the
17    Board sets a shorter period.
18        (h)  An  owners license shall entitle the licensee to own
19    up to 2 riverboats and operate up to 1,200 gaming  positions,
20    plus  an  additional  number  of  positions  as  provided  in
21    subsections (h-5) and (h-10).
22        (h-5)     In  addition  to  the  1,200  gaming  positions
23    authorized under  subsection  (h),  a  licensee  may  operate
24    gaming positions that it acquires pursuant to this subsection
25    (h-5).    A  licensee  may  obtain up to 800 gaming positions
26    under  this  subsection  (h-5).  A  licensee   may   purchase
27    additional  gaming  positions  under this subsection (h-5) in
28    groups of 100.  The  price  for  each  group  of  100  gaming
29    positions  shall  be  $2,000,000.   If the Board finds that a
30    licensee is not using some or all  of  the  gaming  positions
31    that it obtained under this subsection (h-5), it may withdraw
32    up to 10% of those gaming positions.
33        (h-10)  In  addition  to  the gaming positions authorized
34    under subsections (h) and (h-5), an owners licensee  may  bid
 
                            -114-    LRB093 05454 LRD 17090 a
 1    on  gaming  positions  that have been withdrawn by the Board.
 2    Gaming positions that  are  subject  to  competitive  bidding
 3    under this subsection (h-10) shall be awarded in groups of 10
 4    and  the  minimum  bid for a group of 10 positions under this
 5    subsection (h-10) shall be $200,000.
 6        (h-15)  A licensee may operate  both  of  its  riverboats
 7    concurrently,  provided  that  the  total  number  of  gaming
 8    positions  on  both riverboats does not exceed 1,200 plus the
 9    number of gaming positions it receives under the  competitive
10    bidding process under subsections (h-5) and (h-10).
11        An owners licensee that is authorized to use in excess of
12    1,200   positions  under  this  subsection  (h)  may  conduct
13    riverboat gambling operations  from  a  land-based  temporary
14    facility within or attached to its home dock facility pending
15    the construction of a permanent facility or the remodeling of
16    an  existing  facility  to accommodate those excess positions
17    for up to 24 months after  receiving  the  authority  to  use
18    those   excess  positions.  Gaming  positions  located  in  a
19    temporary facility  must  be  located  in  an  area  that  is
20    accessible  only to persons who are at least 21 years of age.
21    A licensee may not conduct gambling at a  temporary  facility
22    unless  the  admission  tax imposed under Section 12 has been
23    paid for all persons who enter the temporary facility.    The
24    Board  shall  make  rules  concerning the conduct of gambling
25    from temporary facilities.  A licensee shall limit the number
26    of  gambling  participants  to  1,200  for  any  such  owners
27    license. A  licensee  may  operate  both  of  its  riverboats
28    concurrently,  provided  that  the  total  number of gambling
29    participants  on  both  riverboats  does  not  exceed  1,200.
30    Riverboats licensed to operate on the Mississippi  River  and
31    the  Illinois  River  south  of Marshall County shall have an
32    authorized capacity of  at  least  500  persons.   Any  other
33    riverboat  licensed  under  this Act shall have an authorized
34    capacity of at least 400 persons.
 
                            -115-    LRB093 05454 LRD 17090 a
 1        (i)  A licensed owner is authorized to apply to the Board
 2    for and, if approved therefor, to receive all  licenses  from
 3    the  Board  necessary  for  the  operation  of  a  riverboat,
 4    including  a  liquor  license, a license to prepare and serve
 5    food for human consumption,  and  other  necessary  licenses.
 6    All  use, occupation and excise taxes which apply to the sale
 7    of food and beverages in this State and all taxes imposed  on
 8    the  sale  or use of tangible personal property apply to such
 9    sales aboard the riverboat.
10        (j)  The  Board  may  issue  a  license   authorizing   a
11    riverboat  to  dock in a municipality or approve a relocation
12    under Section 11.2 only if, prior  to  the  issuance  of  the
13    license  or  approval, the governing body of the municipality
14    in which the riverboat will  dock  has  by  a  majority  vote
15    approved  the docking of riverboats in the municipality.  The
16    Board may issue a license authorizing a riverboat to dock  in
17    areas  of  a  county  outside  any  municipality or approve a
18    relocation under Section 11.2 only if, prior to the  issuance
19    of  the license or approval, the governing body of the county
20    has by a majority vote approved of the docking of  riverboats
21    within such areas.
22    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

23        (230 ILCS 10/7.4 new)
24        Sec. 7.4.  Electronic gaming.
25        (a)  The General Assembly finds that the horse racing and
26    riverboat  gambling  industries  share  many similarities and
27    collectively  comprise  the  bulk  of  the   State's   gaming
28    industry.  One  feature  in common to both industries is that
29    each is highly regulated by the State of Illinois.
30        The General Assembly further finds, however, that despite
31    their shared features each  industry  is  distinct  from  the
32    other  in that horse racing is and continues to be intimately
33    tied to Illinois' agricultural economy and is, at its core, a
 
                            -116-    LRB093 05454 LRD 17090 a
 1    spectator  sport.  This  distinction  requires  the   General
 2    Assembly to utilize different methods to regulate and promote
 3    the horse racing industry throughout the State.
 4        The  General Assembly finds that in order to promote live
 5    horse racing  as  a  spectator  sport  in  Illinois  and  the
 6    agricultural  economy of this State, it is necessary to allow
 7    electronic gaming at Illinois race tracks given  the  success
 8    of  other states in increasing live racing purse accounts and
 9    improving the quality of horses participating in  horse  race
10    meetings.
11        The General Assembly finds, however, that even though the
12    authority  to conduct electronic gaming is a uniform means to
13    improve live horse racing in this  State,  electronic  gaming
14    must  be  regulated  and  implemented differently in southern
15    Illinois versus the Chicago area. The General Assembly  finds
16    that  Fairmount  Park  is  the only race track operating on a
17    year round basis in southern Illinois that offers live racing
18    and for that matter only conducts live  thoroughbred  racing.
19    The  General Assembly finds that the current state of affairs
20    deprives spectators and  standardbred  horsemen  residing  in
21    southern  Illinois  of the opportunity to participate in live
22    standardbred  racing  in  a  manner  similar  to  spectators,
23    thoroughbred horsemen, and standardbred horsemen residing  in
24    the Chicago area. The General Assembly declares that southern
25    Illinois spectators and standardbred horsemen are entitled to
26    have   a   similar   opportunity   to   participate  in  live
27    standardbred racing as spectators in the  Chicago  area.  The
28    General  Assembly  declares  that  in  order  to  remove this
29    disparity between southern Illinois and the Chicago area,  it
30    is  necessary  for  the  State  to  regulate  Fairmount  Park
31    differently  from horse race tracks found in the Chicago area
32    and tie Fairmount Park's authorization to conduct  electronic
33    gaming  to  a  commitment  to  conduct  at  least 100 days of
34    standardbred racing as set forth in subsection  (d)  of  this
 
                            -117-    LRB093 05454 LRD 17090 a
 1    Section.
 2        (b)  The Illinois Gaming Board shall award one electronic
 3    gaming  license  to become effective on or after July 1, 2003
 4    to each organization licensee under the Illinois Horse Racing
 5    Act  of  1975,  subject  to   application   and   eligibility
 6    requirements  of  this  Section. An electronic gaming license
 7    shall authorize its holder to conduct  electronic  gaming  at
 8    its race track at the following times:
 9             (1)  on  days  when  it  conducts live racing at the
10        track where its electronic  gaming  facility  is  located
11        from  the  time  the  first race of the day at that track
12        begins until the end of the final race of the day at that
13        race track; and
14             (2)  on days when it conducts simulcast wagering  on
15        races  run  in  the  United States from the time it first
16        receives the simulcast signal until  one  hour  after  it
17        stops  receiving  the  simulcast  signal.   A  license to
18        conduct limited gaming  and  any  renewal  of  a  limited
19        owners  license  shall  authorize  limited  gaming  for a
20        period of 4 years.
21        (c)  To be eligible  to  conduct  electronic  gaming,  an
22    organization  licensee  must  (i) obtain an electronic gaming
23    license, (ii) hold an organization license under the Illinois
24    Horse Racing Act of 1975, (iii) hold an inter-track  wagering
25    license,  (iv)  pay  a  fee  of  $50,000  for  each  position
26    authorized  under  this  amendatory  Act  of the 93rd General
27    Assembly before beginning to conduct electronic  gaming,  (v)
28    apply  for  at  least the same number of days of thoroughbred
29    racing or standardbred racing or both, as the case may be, as
30    it was awarded in calendar year 2003, and (vi) meet all other
31    requirements of this Act that apply to owners licensees.
32        With respect to the live racing requirement described  in
33    this  subsection,  an  organization licensee must conduct the
34    same number of days of thoroughbred or standardbred racing or
 
                            -118-    LRB093 05454 LRD 17090 a
 1    both, as the case may be, as it was  awarded  by  the  Board,
 2    unless  a lesser schedule of live racing is the result of (A)
 3    weather or unsafe track conditions due to acts of God or  (B)
 4    a   strike   between   the   organization  licensee  and  the
 5    associations  representing  the  largest  number  of  owners,
 6    trainers, jockeys, or standardbred drivers who race horses at
 7    that organization licensee's racing meeting.
 8        (d)  In addition to the other eligibility requirements of
 9    subsection  (c),  an  organization  licensee  that  holds  an
10    electronic  gaming  license   authorizing   it   to   conduct
11    electronic  gaming  at  Fairmount  Park  must  apply  for and
12    conduct at least 100 days of standardbred racing in  calendar
13    year  2004  and  thereafter, unless a lesser schedule of live
14    racing  is  the  result  of  (A)  weather  or  unsafe   track
15    conditions  due  to  acts  of God or (B) a strike between the
16    organization licensee and the associations  representing  the
17    largest  number of owners, trainers, jockeys, or standardbred
18    drivers who  race  horses  at  that  organization  licensee's
19    racing meeting.
20        (e)  The  Board  may  approve  electronic gaming licenses
21    authorizing the conduct  of  electronic  gaming  by  eligible
22    organization licensees.
23        (f)  In  calendar  year 2003, the Board may approve up to
24    3,500 aggregate gambling participants statewide  as  provided
25    in  this  Section.  The authority to admit participants under
26    this Section in calendar year  2003  shall  be  allocated  as
27    follows:
28             (1)  The    organization   licensee   operating   at
29        Arlington Park Race Course may operate up to 1,000 gaming
30        positions at a time;
31             (2)  The   organization   licensees   operating   at
32        Hawthorne  Race  Course,   including   the   organization
33        licensee  formerly  operating  at  Sportsman's  Park, may
34        collectively operate up to  900  gaming  positions  at  a
 
                            -119-    LRB093 05454 LRD 17090 a
 1        time;
 2             (3)  The organization licensee operating at Balmoral
 3        Park may operate up to 450 gaming positions at a time;
 4             (4)  The  organization licensee operating at Maywood
 5        Park may operate up to 700 gaming positions  at  a  time;
 6        and
 7             (5)  The    organization   licensee   operating   at
 8        Fairmount Park may operate up to 450 gaming positions  at
 9        a time.
10        (g)  For  each  calendar  year  after  2003  in  which an
11    electronic gaming licensee requests a number of  racing  days
12    under  its  organization license that is less than 90% of the
13    number of days of live racing it was  awarded  in  2003,  the
14    electronic gaming licensee may not conduct electronic gaming.
15        (h)  Upon  renewal of an electronic gaming license, if an
16    electronic gaming licensee had a higher  average  daily  live
17    handle  in the term of its previous electronic gaming license
18    than in 2003,  then  the  number  of  participants  that  the
19    electronic  gaming  licensee  may  admit after its license is
20    renewed shall be increased  by  a  percentage  equal  to  the
21    percentage  increase in average daily live handle during that
22    previous license term over calendar  year  2003,  but  in  no
23    event  by  more than 10%.  If an electronic gaming license is
24    authorized  to  operate  additional  positions   under   this
25    subsection  (h),  it must pay the fee imposed under item (iv)
26    of subsection (c) for each additional participant.
27        (i)    An  electronic   gaming   licensee   may   conduct
28    electronic   gaming  at  a  temporary  facility  pending  the
29    construction  of a permanent facility or the remodeling of an
30    existing   facility   to   accommodate   electronic    gaming
31    participants   for   up  to  24  months  after  receiving  an
32    electronic  gaming  license.  The  Board  shall  make   rules
33    concerning  the  conduct  of electronic gaming from temporary
34    facilities.
 
                            -120-    LRB093 05454 LRD 17090 a
 1        (230 ILCS 10/7.5 new)
 2        Sec. 7.5.  Home rule. The  regulation  and  licensing  of
 3    electronic   gaming   and  electronic  gaming  licensees  are
 4    exclusive powers and functions of the  State.   A  home  rule
 5    unit  may  not  regulate  or  license  electronic  gaming  or
 6    electronic  gaming  licensees.   This Section is a denial and
 7    limitation of home rule powers and functions under subsection
 8    (h) of Section 6 of Article VII of the Illinois Constitution.

 9        (230 ILCS 10/8) (from Ch. 120, par. 2408)
10        Sec. 8.  Suppliers licenses.
11        (a)  The Board may issue  a  suppliers  license  to  such
12    persons,  firms or corporations which apply therefor upon the
13    payment of a non-refundable application fee set by the Board,
14    upon a determination by  the  Board  that  the  applicant  is
15    eligible for a suppliers license and upon payment of a $5,000
16    annual license fee.
17        (b)  The  holder  of a suppliers license is authorized to
18    sell or lease, and to contract to  sell  or  lease,  gambling
19    equipment  and  supplies  to  any  licensee  involved  in the
20    ownership or management of gambling operations.
21        (c)  Gambling  supplies  and   equipment   may   not   be
22    distributed   unless   supplies   and  equipment  conform  to
23    standards adopted by rules of the Board.
24        (d)  A person,  firm  or  corporation  is  ineligible  to
25    receive a suppliers license if:
26             (1)  the person has been convicted of a felony under
27        the  laws  of  this State, any other state, or the United
28        States;
29             (2)  the person has been convicted of any  violation
30        of   Article   28  of  the  Criminal  Code  of  1961,  or
31        substantially similar laws of any other jurisdiction;
32             (3)  the person has submitted an application  for  a
33        license under this Act which contains false information;
 
                            -121-    LRB093 05454 LRD 17090 a
 1             (4)  the person is a member of the Board;
 2             (5)  the  firm  or  corporation  is  one  in which a
 3        person defined in (1), (2), (3) or (4),  is  an  officer,
 4        director or managerial employee;
 5             (6)  the  firm  or corporation  employs a person who
 6        participates in the management or operation of  riverboat
 7        gambling authorized under this Act;
 8             (7)  the  license of the person, firm or corporation
 9        issued under this Act, or a license  to  own  or  operate
10        gambling  facilities  in any other jurisdiction, has been
11        revoked.
12        (e)  Any person that supplies any equipment, devices,  or
13    supplies  to  a  licensed  riverboat  gambling  operation  or
14    electronic  gaming  operation  must  first obtain a suppliers
15    license.  A supplier shall furnish to the Board a list of all
16    equipment, devices and supplies offered for sale or lease  in
17    connection  with  gambling games authorized under this Act. A
18    supplier shall keep books and records for the  furnishing  of
19    equipment,   devices  and  supplies  to  gambling  operations
20    separate and  distinct  from  any  other  business  that  the
21    supplier  might  operate.   A supplier shall file a quarterly
22    return with  the  Board  listing  all  sales  and  leases.  A
23    supplier   shall  permanently  affix  its  name  to  all  its
24    equipment, devices, and supplies for gambling operations. Any
25    supplier's equipment, devices or supplies which are  used  by
26    any  person  in  an  unauthorized gambling operation shall be
27    forfeited to the State.  A holder of an owners license or  an
28    electronic  gaming  license  licensed  owner  may own its own
29    equipment, devices and supplies.  Each holder  of  an  owners
30    license  or  an electronic gaming license under the Act shall
31    file an annual report listing  its  inventories  of  gambling
32    equipment, devices and supplies.
33        (f)  Any  person who knowingly makes a false statement on
34    an application is guilty of a Class A misdemeanor.
 
                            -122-    LRB093 05454 LRD 17090 a
 1        (g)  Any  gambling  equipment,   devices   and   supplies
 2    provided  by  any licensed supplier may either be repaired on
 3    the riverboat or electronic gaming facility or  removed  from
 4    the  riverboat or electronic gaming facility to a an on-shore
 5    facility  owned  by  the  holder  of  an  owners  license  or
 6    electronic gaming license for repair.
 7        (h)  On and after the effective date of  this  amendatory
 8    Act  of  the  93rd General Assembly, at least 30% of all slot
 9    machines and video games of chance  purchased  by  an  owners
10    licensee   shall   be   purchased  from  manufacturers  whose
11    manufacturing facilities are located in  Illinois.  Beginning
12    one year after the effective date of this amendatory Act, the
13    Board shall review the availability of such slot machines and
14    video  games of chance and shall have the discretion to raise
15    the minimum percentage of those slot machines and video games
16    of  chance  that  must  be  purchased  from  suppliers  whose
17    manufacturing facilities are located in Illinois by  rule  as
18    it sees fit.
19    (Source: P.A. 86-1029; 87-826.)

20        (230 ILCS 10/9) (from Ch. 120, par. 2409)
21        Sec. 9.  Occupational licenses.
22        (a)  The  Board  may  issue an occupational license to an
23    applicant upon the payment of a non-refundable fee set by the
24    Board, upon a determination by the Board that  the  applicant
25    is  eligible  for an occupational license and upon payment of
26    an annual license fee in an amount to be established.  To  be
27    eligible for an occupational license, an applicant must:
28             (1)  be  at  least  21 years of age if the applicant
29        will perform any function involved in gaming by  patrons.
30        Any  applicant  seeking  an  occupational  license  for a
31        non-gaming function shall be at least 18 years of age;
32             (2)  not have been convicted of a felony offense,  a
33        violation  of Article 28 of the Criminal Code of 1961, or
 
                            -123-    LRB093 05454 LRD 17090 a
 1        a similar statute of any other jurisdiction, or  a  crime
 2        involving dishonesty or moral turpitude;
 3             (3)  have demonstrated a level of skill or knowledge
 4        which  the  Board  determines to be necessary in order to
 5        operate gambling aboard a riverboat or at  an  electronic
 6        gaming facility; and
 7             (4)  have  met  standards  for  the  holding  of  an
 8        occupational  license  as  adopted by rules of the Board.
 9        Such rules  shall  provide  that  any  person  or  entity
10        seeking   an  occupational  license  to  manage  gambling
11        operations  hereunder  shall  be  subject  to  background
12        inquiries  and  further  requirements  similar  to  those
13        required   of   applicants   for   an   owners   license.
14        Furthermore, such rules  shall  provide  that  each  such
15        entity  shall  be permitted to manage gambling operations
16        for only one licensed owner.
17        (b)  Each application for an occupational  license  shall
18    be  on  forms  prescribed  by the Board and shall contain all
19    information required by the Board.  The applicant  shall  set
20    forth  in  the application:  whether he has been issued prior
21    gambling related licenses; whether he has  been  licensed  in
22    any  other  state under any other name, and, if so, such name
23    and his age; and whether or not a permit or license issued to
24    him in any other state  has  been  suspended,  restricted  or
25    revoked, and, if so, for what period of time.
26        (c)  Each applicant shall submit with his application, on
27    forms  provided by the Board, 2 sets of his fingerprints. The
28    Board shall charge each applicant a fee set by the Department
29    of State Police to  defray  the  costs  associated  with  the
30    search  and  classification  of  fingerprints obtained by the
31    Board with respect to  the  applicant's  application.   These
32    fees shall be paid into the State Police Services Fund.
33        (d)  The   Board   may   in   its  discretion  refuse  an
34    occupational license to any person: (1) who is unqualified to
 
                            -124-    LRB093 05454 LRD 17090 a
 1    perform the duties required of such applicant; (2) who  fails
 2    to  disclose  or states falsely any information called for in
 3    the application; (3) who has been found guilty of a violation
 4    of this Act  or  whose  prior  gambling  related  license  or
 5    application  therefor has been suspended, restricted, revoked
 6    or denied for just cause in any other state; or (4)  for  any
 7    other just cause.
 8        (e)  The  Board  may  suspend,  revoke  or  restrict  any
 9    occupational  licensee: (1) for violation of any provision of
10    this  Act;  (2)  for  violation  of  any  of  the  rules  and
11    regulations of the Board; (3) for any cause which,  if  known
12    to  the  Board,  would  have  disqualified the applicant from
13    receiving such license; or (4) for default in the payment  of
14    any  obligation  or debt due to the State of Illinois; or (5)
15    for any other just cause.
16        (f)  A person who knowingly makes a false statement on an
17    application is guilty of a Class A misdemeanor.
18        (g)  Any license issued pursuant to this Section shall be
19    valid for a period of one year from the date of issuance.
20        (h)  Nothing in this Act shall be interpreted to prohibit
21    a licensed owner or electronic gaming licensee from  entering
22    into  an  agreement  with a school approved under the Private
23    Business and Vocational Schools Act for the training  of  any
24    occupational licensee.  Any training offered by such a school
25    shall  be  in accordance with a written agreement between the
26    licensed owner or electronic gaming licensee and the school.
27        (i)  Any training provided for occupational licensees may
28    be conducted either at the site of the gambling  facility  on
29    the  riverboat  or at a school with which a licensed owner or
30    electronic gaming licensee  has  entered  into  an  agreement
31    pursuant to subsection (h).
32    (Source: P.A. 86-1029; 87-826.)

33        (230 ILCS 10/11) (from Ch. 120, par. 2411)
 
                            -125-    LRB093 05454 LRD 17090 a
 1        Sec.  11.  Conduct of gambling. Gambling may be conducted
 2    by licensed owners aboard riverboats. If  authorized  by  the
 3    Board  by rule, an owners licensee may move all of its gaming
 4    positions in excess of 1,200 from its riverboats to its  home
 5    dock  facility  and  use  those  gaming  positions to conduct
 6    gambling, provided that the gaming positions are  located  in
 7    an  area  that is accessible only to persons who are at least
 8    21 years of age and provided that the admission  tax  imposed
 9    under  Section 12 has been paid for all persons who use those
10    gaming positions.  Gambling may be  conducted  by  electronic
11    gaming  licensees  at  electronic gaming facilities. Gambling
12    authorized under  this  Section  shall  be,  subject  to  the
13    following standards:
14             (1)  A   licensee  may  conduct  riverboat  gambling
15        authorized  under  this  Act  regardless  of  whether  it
16        conducts excursion cruises.  A licensee  may  permit  the
17        continuous  ingress  and  egress  of  passengers  for the
18        purpose of gambling.
19             (2)  (Blank).
20             (3)  Minimum and maximum wagers on  games  shall  be
21        set by the licensee.
22             (4)  Agents of the Board and the Department of State
23        Police  may  board and inspect any riverboat or enter and
24        inspect any portion  of  an  electronic  gaming  facility
25        where  electronic gaming is conducted at any time for the
26        purpose of determining whether this Act is being complied
27        with.  Every riverboat, if under way and being hailed  by
28        a  law  enforcement  officer  or agent of the Board, must
29        stop immediately and lay to.
30             (5)  Employees of the Board shall have the right  to
31        be  present  on  the  riverboat or on adjacent facilities
32        under the control of the licensee and at  the  electronic
33        gaming  facility  under  the  control  of  the electronic
34        gaming licensee.
 
                            -126-    LRB093 05454 LRD 17090 a
 1             (6)  Gambling  equipment  and  supplies  customarily
 2        used  in  conducting  riverboat  gambling  or  electronic
 3        gaming must be purchased or leased  only  from  suppliers
 4        licensed for such purpose under this Act.
 5             (7)  Persons licensed under this Act shall permit no
 6        form of wagering on gambling games except as permitted by
 7        this Act.
 8             (8)  Wagers  may  be  received  only  from  a person
 9        present on a  licensed  riverboat  or  at  an  electronic
10        gaming   facility.   No  person  present  on  a  licensed
11        riverboat or at an electronic gaming facility shall place
12        or attempt to place a wager on behalf of  another  person
13        who  is not present on the riverboat or at the electronic
14        gaming facility.
15             (9)  Wagering, including  electronic  gaming,  shall
16        not be conducted with money or other negotiable currency.
17             (10)  A  person  under age 21 shall not be permitted
18        on an  area  of  a  riverboat  where  gambling  is  being
19        conducted  or  at  an  electronic  gaming  facility where
20        gambling is being conducted, except for a person at least
21        18 years of age who  is  an  employee  of  the  riverboat
22        gambling  operation  or  electronic gaming operation.  No
23        employee under age 21 shall perform any function involved
24        in gambling by the patrons. No person under age 21  shall
25        be permitted to make a wager under this Act.
26             (11)  Gambling  excursion cruises are permitted only
27        when the waterway for which the riverboat is licensed  is
28        navigable,  as  determined  by  the Board in consultation
29        with the U.S. Army Corps  of  Engineers.  This  paragraph
30        (11)  does not limit the ability of a licensee to conduct
31        gambling  authorized  under  this   Act   when   gambling
32        excursion cruises are not permitted.
33             (12)  All  tokens, chips or electronic cards used to
34        make wagers must be purchased (i) from a licensed  owner,
 
                            -127-    LRB093 05454 LRD 17090 a
 1        in the case of a riverboat, either aboard the a riverboat
 2        or  at an onshore facility which has been approved by the
 3        Board and which is located where the riverboat  docks  or
 4        (ii) from an electronic gaming licensee at the electronic
 5        gaming  facility.  The  tokens, chips or electronic cards
 6        may be purchased by means of an agreement under which the
 7        owner extends credit to the patron.  Such  tokens,  chips
 8        or   electronic  cards  may  be  used  while  aboard  the
 9        riverboat or at the electronic gaming facility  only  for
10        the purpose of making wagers on gambling games.
11             (13)  Notwithstanding any other Section of this Act,
12        in  addition  to the other licenses authorized under this
13        Act, the Board may issue special event licenses  allowing
14        persons   who  are  not  otherwise  licensed  to  conduct
15        riverboat  gambling  to  conduct  such  gambling   on   a
16        specified  date  or  series of dates.  Riverboat gambling
17        under such a license may take place on  a  riverboat  not
18        normally  used  for  riverboat gambling.  The Board shall
19        establish standards, fees and fines for, and  limitations
20        upon, such licenses, which may differ from the standards,
21        fees,  fines  and  limitations otherwise applicable under
22        this Act.  All such fees  shall  be  deposited  into  the
23        State  Gaming  Fund.   All  such fines shall be deposited
24        into the Education Assistance Fund, created by Public Act
25        86-0018, of the State of Illinois.
26             (14)  In addition to the  above,  gambling  must  be
27        conducted  in  accordance  with  all rules adopted by the
28        Board.
29    (Source: P.A. 91-40, eff. 6-25-99.)

30        (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
31        Sec. 11.1.  Collection  of  amounts  owing  under  credit
32    agreements.      Notwithstanding   any  applicable  statutory
33    provision to the contrary, a  licensed  owner  or  electronic
 
                            -128-    LRB093 05454 LRD 17090 a
 1    gaming  licensee  who  extends credit to a riverboat gambling
 2    patron pursuant to  Section  11  (a)  (12)  of  this  Act  is
 3    expressly  authorized  to  institute  a  cause  of  action to
 4    collect any amounts due and  owing  under  the  extension  of
 5    credit, as well as the owner's costs, expenses and reasonable
 6    attorney's fees incurred in collection.
 7    (Source: P.A. 86-1029; 86-1389; 87-826.)

 8        (230 ILCS 10/12) (from Ch. 120, par. 2412)
 9        Sec. 12. Admission tax; fees.
10        (a)  A tax is hereby imposed upon admissions to riverboat
11    gambling  facilities  authorized pursuant to this Act.  Until
12    July 1, 2002, the rate  is  $2  per  person  admitted.   From
13    Beginning  July  1,  2002  until  the  effective date of this
14    amendatory Act of the 93rd General Assembly, the rate  is  $3
15    per person admitted.  Beginning on the effective date of this
16    amendatory  Act,  the  rate  is  $2  per person for the first
17    1,500,000 persons admitted by a licensee per year and $3  per
18    person for all persons admitted by that licensee in excess of
19    1,500,000  per  year.  This admission tax is imposed upon the
20    licensed owner conducting gambling.
21             (1)  The  admission  tax  shall  be  paid  for  each
22        admission, except that a person  who  exits  a  riverboat
23        gambling  facility  and  reenters that riverboat gambling
24        facility within the same gaming day, as  defined  by  the
25        Board  by  rule,  shall  be  subject  only to the initial
26        admission tax.
27             (2)  (Blank).
28             (3)  The  riverboat  licensee  may  issue   tax-free
29        passes to actual and necessary officials and employees of
30        the  licensee  or  other  persons actually working on the
31        riverboat.
32             (4)  The number and issuance of tax-free  passes  is
33        subject  to  the  rules  of  the Board, and a list of all
 
                            -129-    LRB093 05454 LRD 17090 a
 1        persons to whom the tax-free passes are issued  shall  be
 2        filed with the Board.
 3        (b)  From   the  tax  imposed  under  subsection  (a),  a
 4    municipality shall receive from the State $1 for each  person
 5    embarking  on a riverboat docked within the municipality, and
 6    a county shall receive $1 for  each  person  embarking  on  a
 7    riverboat docked within the county but outside the boundaries
 8    of  any  municipality.   The municipality's or county's share
 9    shall be collected by the Board on behalf of  the  State  and
10    remitted quarterly by the State, subject to appropriation, to
11    the  treasurer of the unit of local government for deposit in
12    the general fund. For each admission in excess  of  1,500,000
13    in  a  year,  from  the  tax  imposed under this Section, the
14    county in which the licensee's home  dock  is  located  shall
15    receive,  subject  to appropriation, $0.15, which shall be in
16    addition to any other moneys paid to the  county  under  this
17    Section,  and  $0.20  shall  be  paid  into  the Agricultural
18    Premium Fund and $0.15 shall be paid into the Illinois  Urban
19    Development Authority Fund.
20        (c)  The  licensed  owner  shall pay the entire admission
21    tax  to  the  Board.  Such  payments  shall  be  made  daily.
22    Accompanying each payment shall be a return on forms provided
23    by the Board which shall include other information  regarding
24    admissions  as  the  Board  may  require.   Failure to submit
25    either the payment or the return within  the  specified  time
26    may result in suspension or revocation of the owners license.
27        (d)  The Board shall administer and collect the admission
28    tax  imposed by this Section, to the extent practicable, in a
29    manner consistent with the provisions of Sections 4,  5,  5a,
30    5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of
31    the  Retailers'  Occupation  Tax  Act  and Section 3-7 of the
32    Uniform Penalty and Interest Act.
33    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)
 
                            -130-    LRB093 05454 LRD 17090 a
 1        (230 ILCS 10/13) (from Ch. 120, par. 2413)
 2        Sec. 13.  Wagering tax; rate; distribution.
 3        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
 4    adjusted   gross   receipts   received  from  gambling  games
 5    authorized under this Act at the rate of 20%.
 6        From January 1, 1998 until July 1, 2002, a privilege  tax
 7    is  imposed  on persons engaged in the business of conducting
 8    riverboat gambling operations, based on  the  adjusted  gross
 9    receipts  received  by  a  licensed owner from gambling games
10    authorized under this Act at the following rates:
11             15% of annual adjusted  gross  receipts  up  to  and
12        including $25,000,000;
13             20%  of  annual adjusted gross receipts in excess of
14        $25,000,000 but not exceeding $50,000,000;
15             25% of annual adjusted gross receipts in  excess  of
16        $50,000,000 but not exceeding $75,000,000;
17             30%  of  annual adjusted gross receipts in excess of
18        $75,000,000 but not exceeding $100,000,000;
19             35% of annual adjusted gross receipts in  excess  of
20        $100,000,000.
21        From  Beginning  July 1, 2002 until the effective date of
22    this amendatory Act of the 93rd General Assembly, a privilege
23    tax  is  imposed  on  persons  engaged  in  the  business  of
24    conducting  riverboat  gambling  operations,  based  on   the
25    adjusted  gross  receipts  received  by a licensed owner from
26    gambling games authorized under this  Act  at  the  following
27    rates:
28             15%  of  annual  adjusted  gross  receipts up to and
29        including $25,000,000;
30             22.5% of annual adjusted gross receipts in excess of
31        $25,000,000 but not exceeding $50,000,000;
32             27.5% of annual adjusted gross receipts in excess of
33        $50,000,000 but not exceeding $75,000,000;
34             32.5% of annual adjusted gross receipts in excess of
 
                            -131-    LRB093 05454 LRD 17090 a
 1        $75,000,000 but not exceeding $100,000,000;
 2             37.5% of annual adjusted gross receipts in excess of
 3        $100,000,000 but not exceeding $150,000,000;
 4             45% of annual adjusted gross receipts in  excess  of
 5        $150,000,000 but not exceeding $200,000,000;
 6             50%  of  annual adjusted gross receipts in excess of
 7        $200,000,000.
 8        Beginning on the effective date of this amendatory Act of
 9    the 93rd General Assembly, a  privilege  tax  is  imposed  on
10    persons  engaged  in  the  business  of  conducting riverboat
11    gambling operations, based on  the  adjusted  gross  receipts
12    received  by  a licensed owner from gambling games authorized
13    under this Act, and on persons conducting electronic  gaming,
14    based   on   the  adjusted  gross  receipts  received  by  an
15    electronic gaming licensee from electronic gambling,  at  the
16    following rates:
17             15%  of  annual  adjusted  gross  receipts up to and
18        including $25,000,000;
19             20% of annual adjusted gross receipts in  excess  of
20        $25,000,000 but not exceeding $50,000,000;
21             25%  of  annual adjusted gross receipts in excess of
22        $50,000,000 but not exceeding $75,000,000;
23             30% of annual adjusted gross receipts in  excess  of
24        $75,000,000 but not exceeding $100,000,000;
25             35%  of  annual adjusted gross receipts in excess of
26        $100,000,000 but not exceeding $400,000,000;
27             40% of annual adjusted gross receipts in  excess  of
28        $400,000,000 but not exceeding $450,000,000;
29             45%  of  annual adjusted gross receipts in excess of
30        $450,000,000 but not exceeding $500,000,000;
31             50% of annual adjusted gross receipts in  excess  of
32        $500,000,000.
33        The  taxes  imposed  by this Section shall be paid by the
34    licensed owner or electronic gaming licensee to the Board not
 
                            -132-    LRB093 05454 LRD 17090 a
 1    later than 3:00 o'clock p.m. of the day after  the  day  when
 2    the wagers were made.
 3        (b)  Until  January  1,  1998,  25%  of  the  tax revenue
 4    deposited in the State Gaming Fund under this  Section  shall
 5    be paid, subject to appropriation by the General Assembly, to
 6    the  unit of local government which is designated as the home
 7    dock of the riverboat.  Except as otherwise provided in  this
 8    subsection  (b),  beginning  January  1,  1998,  from the tax
 9    revenue from riverboat gambling deposited in the State Gaming
10    Fund under this Section, an amount equal to  5%  of  adjusted
11    gross  receipts  generated  by  a  riverboat  shall  be  paid
12    monthly, subject to appropriation by the General Assembly, to
13    the  unit  of local government that is designated as the home
14    dock of the riverboat.
15        (b-5)  Beginning on the effective date of this amendatory
16    Act of the 93rd General Assembly, from the tax  revenue  from
17    electronic  gaming deposited into the State Gaming Fund under
18    this Section, an amount equal to 1%  of  the  adjusted  gross
19    receipts  generated by an electronic gaming licensee shall be
20    paid monthly, subject to appropriation, to  the  municipality
21    in  which  the  electronic gaming facility is located.  If an
22    electronic  gaming  facility  is   not   located   within   a
23    municipality,  then  an  amount  equal  to 1% of the adjusted
24    gross receipts generated by the  electronic  gaming  licensee
25    shall  be  paid  monthly,  subject  to  appropriation, to the
26    county in which the electronic gaming facility is located.
27        (b-10)  Beginning  on  the   effective   date   of   this
28    amendatory  Act  of  the  93rd General Assembly, from the tax
29    revenue from  electronic  gaming  deposited  into  the  State
30    Gaming  Fund under this Section, an amount equal to 1% of the
31    adjusted gross receipts generated  by  an  electronic  gaming
32    licensee,  but in no event more than $25,000,000 in any year,
33    shall be paid monthly, subject  to  appropriation,  into  the
34    Illinois Urban Development Authority Fund.
 
                            -133-    LRB093 05454 LRD 17090 a
 1        (b-15)  Beginning   on   the   effective   date  of  this
 2    amendatory Act  of  the  93rd  General  Assembly,  after  the
 3    payments  required  under  subsections (b), (b-5), and (b-10)
 4    have been made, the first $5,000,000 of tax  revenue  derived
 5    from  electronic  gaming  shall  be paid to the Department of
 6    Human Services to be used for compulsive gambling programs.
 7        (c)  Appropriations, as approved by the General Assembly,
 8    may be made from the State Gaming Fund to the  Department  of
 9    Revenue   and   the   Department  of  State  Police  for  the
10    administration and enforcement of this Act.
11        (c-5)  (Blank).  After  the   payments   required   under
12    subsections  (b)  and  (c) have been made, an amount equal to
13    15% of the adjusted gross receipts of a  riverboat  (1)  that
14    relocates  pursuant  to  Section  11.2,  or  (2) for which an
15    owners license is initially issued after the  effective  date
16    of  this amendatory Act of 1999, whichever comes first, shall
17    be paid from the State Gaming  Fund  into  the  Horse  Racing
18    Equity Fund.
19        (c-10)  (Blank).  Each  year  the  General Assembly shall
20    appropriate from the General Revenue Fund  to  the  Education
21    Assistance  Fund  an amount equal to the amount paid into the
22    Horse Racing Equity Fund pursuant to subsection (c-5) in  the
23    prior calendar year.
24        (c-15)  (Blank).   After   the  payments  required  under
25    subsections (b) , (c), and (c-5) have been  made,  an  amount
26    equal to 2% of the adjusted gross receipts of a riverboat (1)
27    that  relocates pursuant to Section 11.2, or (2) for which an
28    owners license is initially issued after the  effective  date
29    of  this amendatory Act of 1999, whichever comes first, shall
30    be paid, subject to appropriation from the General  Assembly,
31    from  the  State  Gaming Fund to each home rule county with a
32    population of over 3,000,000 inhabitants for the  purpose  of
33    enhancing the county's criminal justice system.
34        (c-20)  (Blank).  Each  year  the  General Assembly shall
 
                            -134-    LRB093 05454 LRD 17090 a
 1    appropriate from the General Revenue Fund  to  the  Education
 2    Assistance  Fund  an  amount equal to the amount paid to each
 3    home  rule  county  with  a  population  of  over   3,000,000
 4    inhabitants  pursuant  to  subsection  (c-15)  in  the  prior
 5    calendar year.
 6        (c-25)  (Blank).   After   the  payments  required  under
 7    subsections (b), (c), (c-5) and (c-15)  have  been  made,  an
 8    amount  equal  to  2%  of  the  adjusted  gross receipts of a
 9    riverboat (1) that relocates pursuant to Section 11.2, or (2)
10    for which an owners license is  initially  issued  after  the
11    effective  date  of  this  amendatory  Act of 1999, whichever
12    comes first, shall be paid from the State  Gaming  Fund  into
13    the State Universities Athletic Capital Improvement Fund.
14        (d)  From  time  to  time,  the  Board shall transfer the
15    remainder of  the  funds  generated  by  this  Act  into  the
16    Education  Assistance Fund, created by Public Act 86-0018, of
17    the State of Illinois.
18        (e)  Nothing in this Act shall prohibit the unit of local
19    government designated as the home dock of the riverboat  from
20    entering into agreements with other units of local government
21    in  this State or in other states to share its portion of the
22    tax revenue.
23        (f)  To  the  extent   practicable,   the   Board   shall
24    administer  and  collect  the  wagering taxes imposed by this
25    Section  in  a  manner  consistent  with  the  provisions  of
26    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
27    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
28    Section 3-7 of the Uniform Penalty and Interest Act.
29    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

30        (230 ILCS 10/14) (from Ch. 120, par. 2414)
31        Sec. 14.  Licensees - Records - Reports - Supervision.
32        (a)  A  Licensed  owners  and electronic gaming licensees
33    owner shall keep their his books and records so as to clearly
 
                            -135-    LRB093 05454 LRD 17090 a
 1    show the following:
 2        (1)  The amount received daily from admission fees.
 3        (2)  The total amount of gross receipts.
 4        (3)  The total amount of the adjusted gross receipts.
 5        (b)  The Licensed owners and electronic gaming  licensees
 6    owner  shall  furnish to the Board reports and information as
 7    the Board may require with respect to its activities on forms
 8    designed and supplied for such purpose by the Board.
 9        (c)  The books and records kept by a  licensed  owner  or
10    electronic  gaming  licensee  as provided by this Section are
11    public  records  and  the   examination,   publication,   and
12    dissemination  of  the  books and records are governed by the
13    provisions of The Freedom of Information Act.
14    (Source: P.A. 86-1029.)

15        (230 ILCS 10/18) (from Ch. 120, par. 2418)
16        Sec. 18.  Prohibited Activities - Penalty.
17        (a)  A person is guilty of  a  Class  A  misdemeanor  for
18    doing any of the following:
19             (1)  Conducting  gambling  where wagering is used or
20        to be used without a license issued by the Board.
21             (2)  Conducting gambling where wagering is permitted
22        other than in the manner specified by Section 11.
23        (b)  A person is guilty of  a  Class  B  misdemeanor  for
24    doing any of the following:
25             (1)  permitting  a  person  under 21 years to make a
26        wager; or
27             (2)  violating paragraph (12) of subsection  (a)  of
28        Section 11 of this Act.
29        (c)  A  person  wagering  or  accepting  a  wager  at any
30    location outside the riverboat or electronic gaming  facility
31    in  violation  of  paragraph  is  subject to the penalties in
32    paragraphs (1) or (2) of subsection (a) of  Section  28-1  of
33    the  Criminal  Code  of  1961  is  subject  to  the penalties
 
                            -136-    LRB093 05454 LRD 17090 a
 1    provided in that Section.
 2        (d)  A person commits a Class 4 felony and, in  addition,
 3    shall  be barred for life from gambling operations riverboats
 4    under the jurisdiction of the Board, if the person  does  any
 5    of the following:
 6             (1)  Offers, promises, or gives anything of value or
 7        benefit  to  a  person  who is connected with a riverboat
 8        owner or electronic gaming licensee  including,  but  not
 9        limited to, an officer or employee of a licensed owner or
10        electronic  gaming  licensee or holder of an occupational
11        license pursuant to an agreement or arrangement  or  with
12        the  intent that the promise or thing of value or benefit
13        will influence the actions of  the  person  to  whom  the
14        offer,  promise,  or  gift was made in order to affect or
15        attempt to affect the outcome of a gambling game,  or  to
16        influence official action of a member of the Board.
17             (2)  Solicits  or  knowingly  accepts  or receives a
18        promise of anything of value or benefit while the  person
19        is  connected  with  a  riverboat  or  electronic  gaming
20        facility,  including,  but  not limited to, an officer or
21        employee  of  a  licensed  owner  or  electronic   gaming
22        licensee,  or  the  holder  of  an  occupational license,
23        pursuant to an understanding or arrangement or  with  the
24        intent that the promise or thing of value or benefit will
25        influence  the actions of the person to affect or attempt
26        to affect the outcome of a gambling game, or to influence
27        official action of a member of the Board.
28             (3)  Uses or possesses with  the  intent  to  use  a
29        device to assist:
30                  (i)  In projecting the outcome of the game.
31                  (ii)  In keeping track of the cards played.
32                  (iii)  In  analyzing  the  probability  of  the
33             occurrence  of  an  event  relating  to the gambling
34             game.
 
                            -137-    LRB093 05454 LRD 17090 a
 1                  (iv)  In analyzing the strategy for playing  or
 2             betting  to  be used in the game except as permitted
 3             by the Board.
 4             (4)  Cheats at a gambling game.
 5             (5)  Manufactures, sells, or distributes any  cards,
 6        chips,  dice, game or device which is intended to be used
 7        to violate any provision of this Act.
 8             (6)  Alters  or  misrepresents  the  outcome  of   a
 9        gambling  game  on  which wagers have been made after the
10        outcome is made sure but before it  is  revealed  to  the
11        players.
12             (7)  Places  a  bet  after  acquiring knowledge, not
13        available to all players, of the outcome of the  gambling
14        game  which  is  subject of the bet or to aid a person in
15        acquiring the knowledge for the purpose of placing a  bet
16        contingent on that outcome.
17             (8)  Claims,  collects,  or  takes,  or  attempts to
18        claim, collect, or take, money or anything of value in or
19        from the gambling games, with intent to defraud,  without
20        having  made  a  wager  contingent  on winning a gambling
21        game, or claims, collects, or takes an amount of money or
22        thing of value of greater value than the amount won.
23             (9)  Uses counterfeit chips or tokens in a  gambling
24        game.
25             (10)  Possesses  any  key or device designed for the
26        purpose of opening, entering, or affecting the  operation
27        of  a  gambling  game,  drop  box,  or  an  electronic or
28        mechanical device connected with the gambling game or for
29        removing coins, tokens,  chips or  other  contents  of  a
30        gambling  game.   This paragraph (10) does not apply to a
31        gambling licensee or  employee  of  a  gambling  licensee
32        acting in furtherance of the employee's employment.
33        (e)  The  possession  of  more  than  one  of the devices
34    described in subsection (d),  paragraphs  (3),  (5)  or  (10)
 
                            -138-    LRB093 05454 LRD 17090 a
 1    permits  a rebuttable presumption that the possessor intended
 2    to use the devices for cheating.
 3        An action to prosecute any crime occurring on a riverboat
 4    shall be tried in  the  county  of  the  dock  at  which  the
 5    riverboat is based.
 6    (Source: P.A. 91-40, eff. 6-25-99.)

 7        (230 ILCS 10/19) (from Ch. 120, par. 2419)
 8        Sec. 19.  Forfeiture of property.
 9        (a)  Except  as provided in subsection (b), any riverboat
10    or  electronic  gaming  facility  used  for  the  conduct  of
11    gambling games in violation of this Act shall be considered a
12    gambling place in violation of Section 28-3 of  the  Criminal
13    Code  of  1961,  as now or hereafter amended.  Every gambling
14    device found on  a  riverboat  or  at  an  electronic  gaming
15    facility  operating  gambling  games in violation of this Act
16    and every slot machine found at an electronic gaming facility
17    operating gambling games in violation of this  Act  shall  be
18    subject  to seizure, confiscation and destruction as provided
19    in Section 28-5 of the Criminal  Code  of  1961,  as  now  or
20    hereafter amended.
21        (b)  It is not a violation of this Act for a riverboat or
22    other watercraft which is licensed for gaming by a contiguous
23    state to dock on the shores of this State if the municipality
24    having  jurisdiction of the shores, or the county in the case
25    of unincorporated areas, has granted permission  for  docking
26    and  no  gaming  is  conducted  on  the  riverboat  or  other
27    watercraft while it is docked on the shores of this State. No
28    gambling  device shall be subject to seizure, confiscation or
29    destruction if the gambling device is located on a  riverboat
30    or  other  watercraft  which  is  licensed  for  gaming  by a
31    contiguous state and which is docked on the  shores  of  this
32    State  if the municipality having jurisdiction of the shores,
33    or the county  in  the  case  of  unincorporated  areas,  has
 
                            -139-    LRB093 05454 LRD 17090 a
 1    granted  permission for docking and no gaming is conducted on
 2    the riverboat or other watercraft while it is docked  on  the
 3    shores of this State.
 4    (Source: P.A. 86-1029.)

 5        (230 ILCS 10/20) (from Ch. 120, par. 2420)
 6        Sec.  20.   Prohibited activities - civil penalties.  Any
 7    person  who  conducts  a  gambling  operation  without  first
 8    obtaining a license to do so, or  who  continues  to  conduct
 9    such  games  after revocation of his license, or any licensee
10    who conducts or  allows  to  be  conducted  any  unauthorized
11    gambling  games  on  a  riverboat  or at an electronic gaming
12    facility where it is  authorized  to  conduct  its  riverboat
13    gambling  operation, in addition to other penalties provided,
14    shall be subject to a civil penalty equal to  the  amount  of
15    gross  receipts  derived from wagering on the gambling games,
16    whether unauthorized or authorized, conducted on that day  as
17    well  as  confiscation  and  forfeiture  of all gambling game
18    equipment used in the conduct of unauthorized gambling games.
19    (Source: P.A. 86-1029.)

20        Section 85.  The Illinois Pull Tabs and Jar Games Act  is
21    amended by changing Sections 1.1, 4, and 5 as follows:

22        (230 ILCS 20/1.1) (from Ch. 120, par. 1051.1)
23        Sec. 1.1.  Definitions.  As used in this Act:
24        "Pull   tabs"   and   "jar  games"  means  a  game  using
25    single-folded or banded tickets or a card, the face of  which
26    is  initially  covered or otherwise hidden from view in order
27    to conceal a number, symbol or set of symbols, some of  which
28    are  winners.   Players  with winning tickets receive a prize
29    stated on a promotional display or "flare".  Pull  tabs  also
30    means  a game in which prizes are won by pulling a tab from a
31    board thereby revealing a number  which  corresponds  to  the
 
                            -140-    LRB093 05454 LRD 17090 a
 1    number for a given prize.
 2        Except  in  the  case  of bingo event games, each winning
 3    pull tab or  slip  shall  be  predetermined.   The  right  to
 4    participate  in  such  games  shall  not  cost  more than $2.
 5    Except for prizes awarded as part of a progressive  game,  no
 6    single  prize shall exceed $500.  There shall be no more than
 7    6,000 tickets in a game.
 8        "Pull tabs and jar games", as used in this Act, does  not
 9    include  the  following:  numbers,  policy, bolita or similar
10    games, dice, slot machines,  bookmaking  and  wagering  pools
11    with respect to a sporting event, or that game commonly known
12    as  punch boards, or any other game or activity not expressly
13    defined in this Section.
14        "Organization" means a corporation, agency,  partnership,
15    association,  firm  or  other  entity consisting of 2 or more
16    persons joined by a common interest or purpose.
17        "Non-profit  organization"  means  an   organization   or
18    institution organized and conducted on a not-for-profit basis
19    with  no personal profit inuring to anyone as a result of the
20    operation.
21        "Charitable  organization"  means  an   organization   or
22    institution  organized  and operated to benefit an indefinite
23    number of the public.
24        "Educational  organization"  means  an  organization   or
25    institution  organized  and  operated  to  provide systematic
26    instruction in useful branches of learning by methods  common
27    to   schools  and  institutions  of  learning  which  compare
28    favorably in their scope and intensity  with  the  course  of
29    study presented in tax-supported schools.
30        "Religious  organization" means any church, congregation,
31    society, or organization founded for the purpose of religious
32    worship.
33        "Fraternal  organization"  means   an   organization   of
34    persons,  including  but not limited to ethnic organizations,
 
                            -141-    LRB093 05454 LRD 17090 a
 1    having a common interest, organized and operated  exclusively
 2    to  promote  the  welfare  of  its members and to benefit the
 3    general public on a continuing and consistent basis.
 4        "Veterans' organization" means an organization  comprised
 5    of members of which substantially all are individuals who are
 6    veterans  or  spouses,  widows,  or widowers of veterans, the
 7    primary purpose of which is to promote  the  welfare  of  its
 8    members  and  to  provide assistance to the general public in
 9    such a way as to confer a public benefit.
10        "Labor organization" means an  organization  composed  of
11    labor  unions  or  workers  organized  with  the objective of
12    betterment of the conditions of those engaged in such pursuit
13    and the development of a higher degree of efficiency in their
14    respective occupations.
15        "Youth  athletic  organization"  means  an   organization
16    having  as  its exclusive purpose the promotion and provision
17    of athletic activities for youth aged 18 and under.
18        "Senior citizens organization" means an  organization  or
19    association  comprised  of members of which substantially all
20    are individuals who are senior citizens, as  defined  in  the
21    Illinois Act on the Aging, the primary purpose of which is to
22    promote the welfare of its members.
23        "Progressive  game"  means  a  pull  tab  game that has a
24    portion of its predetermined prize  payout  designated  to  a
25    progressive  jackpot that, if not won, is carried forward and
26    added to the jackpot of subsequent games until won.
27        "Bingo event game" means a pull tab game played with pull
28    tab tickets where the  winner  has  not  been  designated  in
29    advance by the manufacturer, but is determined by chance.
30    (Source: P.A. 90-536, eff. 1-1-98.)

31        (230 ILCS 20/4) (from Ch. 120, par. 1054)
32        Sec.  4.   The  conducting  of pull tabs and jar games is
33    subject to the following restrictions:
 
                            -142-    LRB093 05454 LRD 17090 a
 1        (1)  The entire net proceeds of  any  pull  tabs  or  jar
 2    games,  except  as  otherwise  approved  in this Act, must be
 3    exclusively  devoted  to   the   lawful   purposes   of   the
 4    organization permitted to conduct such drawings.
 5        (2)  No  person  except a bona fide member or employee of
 6    the sponsoring organization may participate in the management
 7    or operation of such pull tabs or jar games; however, nothing
 8    herein shall conflict with pull tabs and jar games  conducted
 9    under the provisions of the Charitable Games Act.
10        (3)  No person may receive any remuneration or profit for
11    participating  in  the  management  or operation of such pull
12    tabs or jar games; however,  nothing  herein  shall  conflict
13    with  pull  tabs and jar games conducted under the provisions
14    of the Charitable Games Act.
15        (4)  The price paid for  a  single  chance  or  right  to
16    participate  in  a  game  licensed  under  this Act shall not
17    exceed $2.  The aggregate value of all prizes or  merchandise
18    awarded  in  any  single day of pull tabs and jar games shall
19    not exceed $5,000, except that in adjoining  counties  having
20    200,000  to  275,000  inhabitants each, and in counties which
21    are adjacent to either of such  adjoining  counties  and  are
22    adjacent  to total of not more than 2 counties in this State,
23    the value of all prizes or merchandise awarded may not exceed
24    $5,000 in a single day.
25        (5)  No person under the age of 18 years  shall  play  or
26    participate  in games under this Act.  A person under the age
27    of 18 years may be within the area where pull  tabs  and  jar
28    games are being conducted only when accompanied by his parent
29    or guardian.
30        (6)  Pull  tabs  and jar games shall be conducted only on
31    premises owned or occupied by licensed organizations and used
32    by its members for general activities, or on  premises  owned
33    or  rented  for conducting the game of bingo, or as permitted
34    in subsection (4) of Section 3.
 
                            -143-    LRB093 05454 LRD 17090 a
 1    (Source: P.A. 90-536, eff. 1-1-98; 90-808, eff. 12-1-98.)

 2        (230 ILCS 20/5) (from Ch. 120, par. 1055)
 3        Sec. 5. There shall be paid to the Department of  Revenue
 4    5%  of  the  gross  proceeds  of  any pull tabs and jar games
 5    conducted under this Act.  Such  payments  shall  be  made  4
 6    times  per year, between the first and the 20th day of April,
 7    July, October and January.  Payment must  be  made  by  money
 8    order or certified check.  Accompanying each payment shall be
 9    a  report,  on  forms  provided by the Department of Revenue,
10    listing the number of drawings conducted,  the  gross  income
11    derived   therefrom   and   such  other  information  as  the
12    Department of Revenue may require.  Failure to submit  either
13    the  payment  or  the  report within the specified time shall
14    result in automatic revocation of the license.  All  payments
15    made  to  the  Department  of Revenue under this Act shall be
16    deposited as follows:
17        (a)  50% shall be deposited in the  Common  School  Fund;
18    and
19        (b)  50%  shall  be  deposited in the Illinois Gaming Law
20    Enforcement Fund.  Of the monies deposited  in  the  Illinois
21    Gaming  Law  Enforcement Fund under this Section, the General
22    Assembly shall appropriate two-thirds to  the  Department  of
23    Revenue,  Department  of  State  Police and the Office of the
24    Attorney General for  State  law  enforcement  purposes,  and
25    one-third  shall be appropriated to the Department of Revenue
26    for the purpose of distribution in  the  form  of  grants  to
27    counties or municipalities for law enforcement purposes.  The
28    amounts  of  grants  to counties or municipalities shall bear
29    the same ratio as the number of licenses issued  in  counties
30    or  municipalities  bears  to  the  total  number of licenses
31    issued in the State. In  computing  the  number  of  licenses
32    issued  in  a  county, licenses issued for locations within a
33    municipality's boundaries shall be excluded.
 
                            -144-    LRB093 05454 LRD 17090 a
 1        The Department of Revenue  shall  license  suppliers  and
 2    manufacturers  of pull tabs and jar games at an annual fee of
 3    $5,000.  Suppliers   and   manufacturers   shall   meet   the
 4    requirements  and  qualifications  established by rule by the
 5    Department.  Licensed manufacturers shall sell pull tabs  and
 6    jar  games  only  to  licensed suppliers.  Licensed suppliers
 7    shall  buy  pull  tabs  and  jar  games  only  from  licensed
 8    manufacturers and shall sell pull tabs and jar games only  to
 9    licensed organizations. Licensed organizations shall buy pull
10    tabs and jar games only from licensed suppliers.
11        The  Department  of  Revenue  shall adopt by rule minimum
12    quality production standards for pull tabs and jar games.  In
13    determining such standards, the Department shall consider the
14    standards adopted by the  National  Association  of  Gambling
15    Regulatory   Agencies   and   the   National  Association  of
16    Fundraising  Ticket  Manufacturers.  Such   standards   shall
17    include  the name of the supplier which shall appear in plain
18    view to the casual observer on the face side of each pull tab
19    ticket and on each jar game  ticket.   The  pull  tab  ticket
20    shall  contain the name of the game, the selling price of the
21    ticket, the amount of the prize and the serial number of  the
22    ticket.   The  back side of a pull tab ticket shall contain a
23    series of perforated tabs marked "open here".   The  logo  of
24    the  manufacturer  shall  be clearly visible on each jar game
25    ticket.
26        The Department of Revenue shall adopt rules necessary  to
27    provide  for  the proper accounting and control of activities
28    under this Act, to ensure that the  proper  taxes  are  paid,
29    that the proceeds from the activities under this Act are used
30    lawfully, and to prevent illegal activity associated with the
31    use of pull tabs and jar games.
32        The provisions of Section 2a of the Retailers' Occupation
33    Tax  Act  pertaining  to  the  furnishing  of a bond or other
34    security are incorporated by reference into this Act and  are
 
                            -145-    LRB093 05454 LRD 17090 a
 1    applicable  to  licensees under this Act as a precondition of
 2    obtaining a  license  under  this  Act.   The  provisions  of
 3    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a,
 4    6b,  6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax
 5    Act, and Section 3-7 of the Uniform Penalty and Interest Act,
 6    which are not inconsistent with this Act shall apply, as  far
 7    as practicable, to the subject matter of this Act to the same
 8    extent  as if such provisions were included in this Act.  For
 9    the purposes of this Act,  references  in  such  incorporated
10    Sections  of  the Retailers' Occupation Tax Act to retailers,
11    sellers  or  persons  engaged  in  the  business  of  selling
12    tangible  personal  property   means   persons   engaged   in
13    conducting  pull  tabs  and  jar games and references in such
14    incorporated Sections of the Retailers' Occupation Tax Act to
15    sales of tangible personal property mean  the  conducting  of
16    pull  tabs  and  jar  games  and  the  making  of charges for
17    participating in such drawings.
18    (Source: P.A. 87-205; 87-895.)

19        Section 90.  The Criminal Code  of  1961  is  amended  by
20    changing Sections 28-1, 28-5 and 28-7 as follows:

21        (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
22        Sec. 28-1.  Gambling.
23        (a)  A person commits gambling when he:
24             (1)  Plays  a  game  of chance or skill for money or
25        other thing of value, unless excepted in  subsection  (b)
26        of this Section; or
27             (2)  Makes  a  wager  upon  the  result of any game,
28        contest, or  any  political  nomination,  appointment  or
29        election; or
30             (3)  Operates,   keeps,   owns,   uses,   purchases,
31        exhibits,  rents,  sells,  bargains for the sale or lease
32        of, manufactures or distributes any gambling device; or
 
                            -146-    LRB093 05454 LRD 17090 a
 1             (4)  Contracts to have or give  himself  or  another
 2        the  option  to buy or sell, or contracts to buy or sell,
 3        at  a  future  time,  any  grain   or   other   commodity
 4        whatsoever,  or  any  stock  or  security of any company,
 5        where it is at the time of making such contract  intended
 6        by both parties thereto that the contract to buy or sell,
 7        or  the  option,  whenever  exercised,  or  the  contract
 8        resulting therefrom, shall be settled, not by the receipt
 9        or  delivery of such property, but by the payment only of
10        differences in prices  thereof;  however,  the  issuance,
11        purchase, sale, exercise, endorsement or guarantee, by or
12        through  a  person registered with the Secretary of State
13        pursuant to Section 8 of the Illinois Securities  Law  of
14        1953,  or  by  or  through  a  person  exempt  from  such
15        registration  under  said  Section  8, of a put, call, or
16        other option to buy or sell securities  which  have  been
17        registered  with  the  Secretary  of  State  or which are
18        exempt from such registration  under  Section  3  of  the
19        Illinois  Securities  Law  of 1953 is not gambling within
20        the meaning of this paragraph (4); or
21             (5)  Knowingly   owns   or   possesses   any   book,
22        instrument or apparatus by means of which bets or  wagers
23        have  been,  or are, recorded or registered, or knowingly
24        possesses any money which he has received in  the  course
25        of a bet or wager; or
26             (6)  Sells  pools  upon  the  result  of any game or
27        contest  of  skill  or  chance,   political   nomination,
28        appointment or election; or
29             (7)  Sets  up  or  promotes  any  lottery  or sells,
30        offers to sell or transfers any ticket or share  for  any
31        lottery; or
32             (8)  Sets  up  or promotes any policy game or sells,
33        offers to sell or knowingly possesses  or  transfers  any
34        policy  ticket,  slip,  record, document or other similar
 
                            -147-    LRB093 05454 LRD 17090 a
 1        device; or
 2             (9)  Knowingly  drafts,  prints  or  publishes   any
 3        lottery  ticket  or  share,  or  any policy ticket, slip,
 4        record, document  or  similar  device,  except  for  such
 5        activity  related  to  lotteries, bingo games and raffles
 6        authorized by and conducted in accordance with  the  laws
 7        of Illinois or any other state or foreign government; or
 8             (10)  Knowingly  advertises  any  lottery  or policy
 9        game, except for  such  activity  related  to  lotteries,
10        bingo  games  and  raffles authorized by and conducted in
11        accordance with the laws of Illinois or any other  state;
12        or
13             (11)  Knowingly  transmits information as to wagers,
14        betting odds, or changes in betting  odds  by  telephone,
15        telegraph,   radio,   semaphore   or  similar  means;  or
16        knowingly  installs  or  maintains  equipment   for   the
17        transmission  or receipt of such information; except that
18        nothing in this subdivision (11)  prohibits  transmission
19        or  receipt of such information for use in news reporting
20        of sporting events or contests; or
21             (12) Knowingly establishes, maintains,  or  operates
22        an  Internet site that permits a person to play a game of
23        chance or skill for money or  other  thing  of  value  by
24        means  of the Internet or to make a wager upon the result
25        of any game, contest, political nomination,  appointment,
26        or election by means of the Internet.
27        (b)  Participants  in  any  of  the  following activities
28    shall not be convicted of gambling therefor:
29             (1)  Agreements to compensate for loss caused by the
30        happening  of   chance   including   without   limitation
31        contracts  of indemnity or guaranty and life or health or
32        accident insurance;
33             (2)  Offers of prizes, award or compensation to  the
34        actual  contestants  in  any  bona  fide  contest for the
 
                            -148-    LRB093 05454 LRD 17090 a
 1        determination of skill, speed, strength or  endurance  or
 2        to  the  owners  of  animals  or vehicles entered in such
 3        contest;
 4             (3)  Pari-mutuel betting as authorized by the law of
 5        this State;
 6             (4)  Manufacture of gambling devices, including  the
 7        acquisition  of essential parts therefor and the assembly
 8        thereof, for  transportation  in  interstate  or  foreign
 9        commerce  to  any  place  outside  this  State  when such
10        transportation  is  not  prohibited  by  any   applicable
11        Federal law;
12             (5)  The   game  commonly  known  as  "bingo",  when
13        conducted in accordance with the Bingo  License  and  Tax
14        Act;
15             (6)  Lotteries   when  conducted  by  the  State  of
16        Illinois in accordance with the Illinois Lottery Law;
17             (7)  Possession of an antique slot machine  that  is
18        neither  used nor intended to be used in the operation or
19        promotion  of   any   unlawful   gambling   activity   or
20        enterprise.  For the purpose of this subparagraph (b)(7),
21        an  antique slot machine is one manufactured 25 years ago
22        or earlier;
23             (8)  Raffles when conducted in accordance  with  the
24        Raffles Act;
25             (9)  Charitable  games  when conducted in accordance
26        with the Charitable Games Act;
27             (10)  Pull tabs and jar games when  conducted  under
28        the Illinois Pull Tabs and Jar Games Act; or
29             (11)  Gambling  games  conducted  on riverboats when
30        authorized by the Riverboat Gambling Act.
31        (c)  Sentence.
32        Gambling  under  subsection  (a)(1)  or  (a)(2)  of  this
33    Section is a Class A  misdemeanor.   Gambling  under  any  of
34    subsections (a)(3) through (a)(11) of this Section is a Class
 
                            -149-    LRB093 05454 LRD 17090 a
 1    A  misdemeanor.   A second or subsequent conviction under any
 2    of subsections (a)(3) through (a)(11), is a Class  4  felony.
 3    Gambling  under subsection (a)(12) of this Section is a Class
 4    A misdemeanor.   A  second  or  subsequent  conviction  under
 5    subsection (a)(12) is a Class 4 felony.
 6        (d)  Circumstantial evidence.
 7        In  prosecutions  under subsection (a)(1) through (a)(12)
 8    of this Section circumstantial evidence shall have  the  same
 9    validity and weight as in any criminal prosecution.
10    (Source: P.A. 91-257, eff. 1-1-00.)

11        (720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
12        Sec.  28-5.   Seizure  of  gambling  devices and gambling
13    funds.
14        (a)  Every  device  designed  for   gambling   which   is
15    incapable  of  lawful use or every device used unlawfully for
16    gambling shall be considered a "gambling device",  and  shall
17    be  subject  to  seizure, confiscation and destruction by the
18    Department of State Police or  by  any  municipal,  or  other
19    local  authority,  within  whose jurisdiction the same may be
20    found.  As used in this Section, a "gambling device" includes
21    any  slot  machine,  and  includes  any  machine  or   device
22    constructed  for  the  reception  of  money or other thing of
23    value and so constructed as to return, or to cause someone to
24    return, on chance to the player thereof money, property or  a
25    right  to  receive  money or property.  With the exception of
26    any device designed for gambling which is incapable of lawful
27    use, no gambling  device  shall  be  forfeited  or  destroyed
28    unless  an individual with a property interest in said device
29    knows of the unlawful use of the device.
30        (b)  Every gambling device shall be seized and  forfeited
31    to  the  county  wherein  such  seizure occurs.  Any money or
32    other thing of value integrally related to acts  of  gambling
33    shall  be  seized  and  forfeited  to the county wherein such
 
                            -150-    LRB093 05454 LRD 17090 a
 1    seizure occurs.
 2        (c)  If, within 60 days after  any  seizure  pursuant  to
 3    subparagraph  (b)  of  this  Section,  a  person  having  any
 4    property  interest  in the seized property is charged with an
 5    offense, the court which renders judgment  upon  such  charge
 6    shall,   within  30  days  after  such  judgment,  conduct  a
 7    forfeiture hearing to determine whether such property  was  a
 8    gambling  device  at the time of seizure.  Such hearing shall
 9    be commenced by a written petition by  the  State,  including
10    material  allegations  of fact, the name and address of every
11    person determined by the State to have any property  interest
12    in  the seized property, a representation that written notice
13    of the date, time and place of such hearing has  been  mailed
14    to  every  such  person  by  certified  mail at least 10 days
15    before such date, and a request for forfeiture.   Every  such
16    person  may  appear  as  a party and present evidence at such
17    hearing.   The  quantum  of  proof  required   shall   be   a
18    preponderance  of the evidence, and the burden of proof shall
19    be on the State.  If the court  determines  that  the  seized
20    property  was  a  gambling  device at the time of seizure, an
21    order of forfeiture and disposition of  the  seized  property
22    shall  be entered: a gambling device shall be received by the
23    State's Attorney, who shall effect  its  destruction,  except
24    that  valuable  parts  thereof  may  be  liquidated  and  the
25    resultant money shall be deposited in the general fund of the
26    county  wherein such seizure occurred; money and other things
27    of value shall be received by the State's Attorney and,  upon
28    liquidation,  shall  be  deposited in the general fund of the
29    county wherein such seizure occurred.  However, in the  event
30    that  a  defendant  raises  the  defense that the seized slot
31    machine is an antique slot machine described in  subparagraph
32    (b)  (7)  of  Section  28-1 of this Code and therefore  he is
33    exempt from the charge of a  gambling  activity  participant,
34    the  seized  antique  slot  machine shall not be destroyed or
 
                            -151-    LRB093 05454 LRD 17090 a
 1    otherwise altered until a final determination is made by  the
 2    Court as to whether it is such an antique slot machine.  Upon
 3    a  final determination by the Court of this question in favor
 4    of the defendant, such  slot  machine  shall  be  immediately
 5    returned  to  the  defendant.   Such  order of forfeiture and
 6    disposition shall, for the purposes of  appeal,  be  a  final
 7    order and judgment in a civil proceeding.
 8        (d)  If  a  seizure  pursuant to subparagraph (b) of this
 9    Section is not followed by a charge pursuant to  subparagraph
10    (c)  of this Section, or if the prosecution of such charge is
11    permanently terminated or indefinitely  discontinued  without
12    any  judgment  of  conviction  or  acquittal  (1) the State's
13    Attorney  shall  commence  an  in  rem  proceeding  for   the
14    forfeiture  and  destruction of a gambling device, or for the
15    forfeiture and deposit in the general fund of the  county  of
16    any  seized  money  or other things of value, or both, in the
17    circuit court and (2) any person having any property interest
18    in such seized gambling device, money or other thing of value
19    may  commence  separate  civil  proceedings  in  the   manner
20    provided by law.
21        (e)  Any   gambling   device  displayed  for  sale  to  a
22    riverboat gambling operation or used  to  train  occupational
23    licensees  of  a  riverboat  gambling operation as authorized
24    under the Riverboat Gambling Act is exempt from seizure under
25    this Section.
26        (f)  Any  gambling  equipment,   devices   and   supplies
27    provided  by  a  licensed  supplier  in  accordance  with the
28    Riverboat Gambling Act which are removed from a the riverboat
29    or electronic gaming facility  for  repair  are  exempt  from
30    seizure under this Section.
31    (Source: P.A. 87-826.)

32        (720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
33        Sec. 28-7. Gambling contracts void.
 
                            -152-    LRB093 05454 LRD 17090 a
 1        (a)  All   promises,   notes,  bills,  bonds,  covenants,
 2    contracts,  agreements,  judgments,   mortgages,   or   other
 3    securities  or  conveyances  made,  given, granted, drawn, or
 4    entered into, or executed by any person whatsoever, where the
 5    whole or any part of the consideration  thereof  is  for  any
 6    money  or thing of value, won or obtained in violation of any
 7    Section of this Article are null and void.
 8        (b)  Any obligation void under this Section  may  be  set
 9    aside  and  vacated  by  any court of competent jurisdiction,
10    upon a complaint filed for that purpose,  by  the  person  so
11    granting, giving, entering into, or executing the same, or by
12    his  executors  or  administrators, or by any creditor, heir,
13    legatee, purchaser or other person interested therein; or  if
14    a judgment, the same may be set aside on motion of any person
15    stated above, on due notice thereof given.
16        (c)  No  assignment  of  any  obligation  void under this
17    Section may in any manner affect the defense  of  the  person
18    giving,  granting,  drawing,  entering into or executing such
19    obligation, or the remedies of any person interested therein.
20        (d)  This Section shall not prevent a licensed owner of a
21    riverboat gambling operation or an electronic gaming licensee
22    under the Riverboat  Gambling  Act  and  the  Illinois  Horse
23    Racing  Act  of  1975  from  instituting a cause of action to
24    collect any amount due and owing under an extension of credit
25    to a riverboat gambling patron as  authorized  under  Section
26    11.1 of the Riverboat Gambling Act.
27    (Source: P.A. 87-826.)

28        (230 ILCS 5/32.1 rep.)
29        (230 ILCS 5/54 rep.)
30        Section  95.  The Illinois Horse Racing Act is amended by
31    repealing Sections 32.1 and 54.

32        (230 ILCS 10/11.2 rep.)
 
                            -153-    LRB093 05454 LRD 17090 a
 1        Section 97.  The Riverboat Gambling  Act  is  amended  by
 2    repealing Section 11.2.

 3        Section  100.  "An  Act in relation to gambling, amending
 4    named Acts", approved June 25, 1999,  Public  Act  91-40,  is
 5    amended by changing Section 30 as follows:

 6        (P.A. 91-40, Sec. 30)
 7        Sec.  30.  Severability.   If  any  provision of this Act
 8    (Public Act 91-40) or the application thereof to  any  person
 9    or  circumstance  is  held  invalid, that invalidity does not
10    affect the other provisions or applications of the Act  which
11    can  be  given  effect  without  the  invalid  application or
12    provision, and to this end the provisions  of  this  Act  are
13    severable.   This  severability  applies  without  regard  to
14    whether  the  action  challenging  the  validity  was brought
15    before the effective date of this amendatory Act of the  93rd
16    General Assembly.
17        Inseverability.   The provisions of this Act are mutually
18    dependent and inseverable.  If any provision is held  invalid
19    other than as applied to a particular person or circumstance,
20    then this entire Act is invalid.
21    (Source: P.A. 91-40, eff. 6-25-99.)

22        Section  105.  The State Finance Act is amended by adding
23    Section 5.595 as follows:

24        (30 ILCS 105/5.595 new)
25        Sec. 5.595.  The  Illinois  Urban  Development  Authority
26    Fund.

27        Section  995.   Severability.  The provisions of this Act
28    are severable under Section 1.31 of the Statute on Statutes.
 
                            -154-    LRB093 05454 LRD 17090 a
 1        Section 999.  Effective date.  This Act takes effect upon
 2    becoming law.".