Anatomy of the Gambling Bill
Illinois is going to dramatically expand gambling.
Here’s the bill and what it means.
by Jason Grotto and David Eads
On Sunday, June 2, 2019, the General Assembly passed Senate Bill 690, an 816-page measure that could make Illinois the gambling capital of the Midwest.
Among many other actions, the legislation legalizes sports gambling; sanctions six new casinos, including one in Chicago; increases the number of video gambling machines as well as the maximum bet; and transforms horse racing tracks into “racinos” by permitting casino operations at the state’s three existing tracks while allowing two more to open. The main purpose of the bill is to fund Gov. J.B. Pritzker’s $45 billion building program, called Rebuild Illinois.
How many people — including the lawmakers who voted on it — have actually read the bill? Who knows.
So, we’re offering this handy annotated version. It’s a work in progress, so stay tuned for updates. And if you want to contribute, reach out to [email protected].
→ Less than 48 hours before Senate Bill 690 passed the General Assembly, it was a 29-page bill making technical changes to the Property Tax Code. The Senate had approved that bill in early May.
But then, late Friday, May 31, the last day of the legislative session, Rep. Robert Rita, a Democrat from Blue Island, introduced an amendment that removed the previous language and inserted 716 pages of new legislation. After a quick stop in the House Executive Committee, the bill cleared the House on Saturday, June 1.
The following day, Sen. Terry Link, a Gurnee Democrat, added 100 pages of changes when the bill moved to the Senate. Because the Senate had already voted on Senate Bill 690 — although not the language that had been inserted by Rita and Link — the bill was able to bypass the committee process and go straight to the full Senate, where it passed late Sunday afternoon.
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
→ This part of the bill has nothing to do with gambling, but it’s really interesting if you’re into tax policy. We don’t know much about it, other than it’s a proposal to tax online purchases. Know more about this? Have some thoughts? Let us know.
Section 5-1. Short title. This Article may be cited as the
Leveling the Playing Field for Illinois Retail Act. References
in this Article to "this Act" means this Article.
Section 5-5. Findings. The General Assembly finds that
certified service providers and certified automated systems
simplify use and occupation tax compliance for out-of-state
sellers, which fosters higher levels of accurate tax collection
and remittance and generates administrative savings and new
marginal tax revenue for both State and local taxing
jurisdictions. By making the services of certified service
providers and certified automated systems available to remote
retailers without charge as provided in this Act, the State
will substantially eliminate the burden on those remote
retailers to collect and remit both State and local taxing
jurisdiction use and occupation taxes. While providing a means
for remote retailers to collect and remit tax on an even basis
with Illinois retailers, this Act also protects existing local
tax revenue streams by retaining origin sourcing for all
transactions by retailers maintaining a physical presence in
Illinois.
Section 5-10. Definitions. As used in this Act:
"Certified service provider" means an agent certified by
the Department to perform the remote retailer's use and
occupation tax functions, as outlined in the contract between
the State and the certified service provider.
"Certified automated system" means an automated software
system that is certified by the State as meeting all
performance and tax calculation standards required by
Department rules.
"Department" means the Department of Revenue.
"Remote retailer" means a retailer as defined in Section 1
of the Retailers' Occupation Tax Act that has an obligation to
collect State and local retailers' occupation tax under
subsection (b) of Section 2 of the Retailers' Occupation Tax
Act.
"Retailers' occupation tax" means the tax levied under the
Retailers' Occupation Tax Act and all applicable local
retailers' occupation taxes collected by the Department in
conjunction with the State retailers' occupation tax.
Section 5-15. Certification of certified service
providers. The Department shall, no later than December 31,
2019, establish standards for the certification of certified
service providers and certified automated systems and may act
jointly with other states to accomplish these ends.
The Department may take other actions reasonably required
to implement the provisions of this Act, including the adoption
of rules and emergency rules and the procurement of goods and
services, which also may be coordinated jointly with other
states.
Section 5-20. Provision of databases. The Department
shall, no later than July 1, 2020:
(1) provide and maintain an electronic, downloadable
database of defined product categories that identifies the
taxability of each category;
(2) provide and maintain an electronic, downloadable
database of all retailers' occupation tax rates for the
jurisdictions in this State that levy a retailers'
occupation tax; and
(3) provide and maintain an electronic, downloadable
database that assigns delivery addresses in this State to
the applicable taxing jurisdictions.
Section 5-25. Certification. The Department shall, no
later than July 1, 2020:
(1) provide uniform minimum standards that companies
wishing to be designated as a certified service provider in
this State must meet; those minimum standards must include
an expedited certification process for companies that have
been certified in at least 5 other states;
(2) provide uniform minimum standards that certified
automated systems must meet; those minimum standards may
include an expedited certification process for automated
systems that have been certified in at least 5 other
states;
(3) establish a certification process to review the
systems of companies wishing to be designated as a
certified service provider in this State or of companies
wishing to use a certified automated process; this
certification process shall provide that companies that
meet all required standards and whose systems have been
tested and approved by the Department for properly
determining the taxability of items to be sold, the correct
tax rate to apply to a transaction, and the appropriate
jurisdictions to which the tax shall be remitted, shall be
certified;
(4) enter into a contractual relationship with each
company that qualifies as a certified service provider or
that will be using a certified automated system; those
contracts shall, at a minimum, provide:
(A) the responsibilities of the certified service
provider and the remote retailers that contract with
the certified service provider or the user of a
certified automated system related to liability for
proper collection and remittance of use and occupation
taxes;
(B) the responsibilities of the certified service
provider and the remote retailers that contract with
the certified service provider or the user of a
certified service provider related to record keeping
and auditing;
(C) for the protection and confidentiality of tax
information; and
(D) compensation equal to 1.75% of the tax dollars
collected and remitted to the State by a certified
service provider on a timely basis on behalf of remote
retailers; remote retailers using a certified service
provider may not claim the vendor's discount allowed
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act.
The provisions of this Section shall supersede the
provisions of the Illinois Procurement Code.
Section 5-30. Relief from liability. Beginning January 1,
2020, remote retailers using certified service providers or
certified automated systems and their certified service
providers or certified automated systems providers are
relieved from liability to the State for having charged and
collected the incorrect amount of use or occupation tax
resulting from a certified service provider or certified
automated system relying, at the time of the sale, on: (1)
erroneous data provided by the State in database files on tax
rates, boundaries, or taxing jurisdictions; or (2) erroneous
data provided by the State concerning the taxability of
products and services.
The Department shall, to the best of its ability, assign
addresses to the proper local taxing jurisdiction using a
9-digit zip code identifier. On an annual basis, the Department
shall make available to local taxing jurisdictions the taxing
jurisdiction boundaries determined by the Department for their
verification. If a jurisdiction fails to verify their taxing
jurisdiction boundaries to the Department in any given year,
the Department shall assign retailers' occupation tax revenue
from remote retail sales based on its best information. In that
case, tax revenues from remote retail sales remitted to a
taxing jurisdiction based on erroneous local tax boundary
information will be assigned to the correct taxing jurisdiction
on a prospective basis upon notice of the boundary error from a
local taxing jurisdiction. No certified service provider or
remote retailer using a certified automated system shall be
subject to a class action brought on behalf of customers and
arising from, or in any way related to, an overpayment of
retailers' occupation tax collected by the certified service
provider if, at the time of the sale, they relied on
information provided by the Department, regardless of whether
that claim is characterized as a tax refund claim. Nothing in
this Section affects a customer's right to seek a refund from
the remote retailer as provided in this Act.
Section 5-97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
→ This increases the amount of taxes you pay when you park your car, or, as the bill says, “the gross amount of consideration for the use or privilege of parking a motor vehicle in or upon any parking lot or garage in the State.”
Section 10-1. Short title. This Article may be cited as the
Parking Excise Tax Act. References in this Article to "this
Act" mean this Article.
Section 10-5. Definitions.
"Booking intermediary" means any person or entity that
facilitates the processing and fulfillment of reservation
transactions between an operator and a person or entity
desiring parking in a parking lot or garage of that operator.
"Charge or fee paid for parking" means the gross amount of
consideration for the use or privilege of parking a motor
vehicle in or upon any parking lot or garage in the State,
collected by an operator and valued in money, whether received
in money or otherwise, including cash, credits, property, and
services, determined without any deduction for costs or
expenses, but not including charges that are added to the
charge or fee on account of the tax imposed by this Act or on
account of any other tax imposed on the charge or fee. "Charge
or fee paid for parking" excludes separately stated charges not
for the use or privilege or parking and excludes amounts
retained by or paid to a booking intermediary for services
provided by the booking intermediary. If any separately stated
charge is not optional, it shall be presumed that it is part of
the charge for the use or privilege or parking.
"Department" means the Department of Revenue.
"Operator" means any person who engages in the business of
operating a parking area or garage, or who, directly or through
an agreement or arrangement with another party, collects the
consideration for parking or storage of motor vehicles,
recreational vehicles, or other self-propelled vehicles, at
that parking place. This includes, but is not limited to, any
facilitator or aggregator that collects from the purchaser the
charge or fee paid for parking. "Operator" does not include a
bank, credit card company, payment processor, booking
intermediary, or person whose involvement is limited to
performing functions that are similar to those performed by a
bank, credit card company, payment processor, or booking
intermediary.
"Parking area or garage" means any real estate, building,
structure, premises, enclosure or other place, whether
enclosed or not, except a public way, within the State, where
motor vehicles, recreational vehicles, or other self-propelled
vehicles, are stored, housed or parked for hire, charge, fee or
other valuable consideration in a condition ready for use, or
where rent or compensation is paid to the owner, manager,
operator or lessee of the premises for the housing, storing,
sheltering, keeping or maintaining motor vehicles,
recreational vehicles, or other self-propelled vehicles.
"Parking area or garage" includes any parking area or garage,
whether the vehicle is parked by the owner of the vehicle or by
the operator or an attendant.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court.
"Purchase price" means the consideration paid for the
purchase of a parking space in a parking area or garage, valued
in money, whether received in money or otherwise, including
cash, gift cards, credits, and property, and shall be
determined without any deduction on account of the cost of
materials used, labor or service costs, or any other expense
whatsoever.
"Purchase price" includes any and all charges that the
recipient pays related to or incidental to obtaining the use or
privilege of using a parking space in a parking area or garage,
including but not limited to any and all related markups,
service fees, convenience fees, facilitation fees,
cancellation fees, overtime fees, or other such charges,
regardless of terminology. However, "purchase price" shall not
include consideration paid for:
(1) optional, separately stated charges not for the use
or privilege of using a parking space in the parking area
or garage;
(2) any charge for a dishonored check;
(3) any finance or credit charge, penalty or charge for
delayed payment, or discount for prompt payment;
(4) any purchase by a purchaser if the operator is
prohibited by federal or State Constitution, treaty,
convention, statute or court decision from collecting the
tax from such purchaser;
(5) the isolated or occasional sale of parking spaces
subject to tax under this Act by a person who does not hold
himself out as being engaged (or who does not habitually
engage) in selling of parking spaces; and
(6) any amounts added to a purchaser's bills because of
charges made pursuant to the tax imposed by this Act. If
credit is extended, then the amount thereof shall be
included only as and when payments are made.
"Purchaser" means any person who acquires a parking space
in a parking area or garage for use for valuable consideration.
"Use" means the exercise by any person of any right or
power over, or the enjoyment of, a parking space in a parking
area or garage subject to tax under this Act.
Section 10-10. Imposition of tax; calculation of tax.
(a) Beginning on January 1, 2020, a tax is imposed on the
privilege of using in this State a parking space in a parking
area or garage for the use of parking one or more motor
vehicles, recreational vehicles, or other self-propelled
vehicles, at the rate of:
(1) 6% of the purchase price for a parking space paid
for on an hourly, daily, or weekly basis; and
(2) 9% of the purchase price for a parking space paid
for on a monthly or annual basis.
(b) The tax shall be collected from the purchaser by the
operator.
(c) An operator that has paid or remitted the tax imposed
by this Act to another operator in connection with the same
parking transaction, or the use of the same parking space, that
is subject to tax under this Act, shall be entitled to a credit
for such tax paid or remitted against the amount of tax owed
under this Act, provided that the other operator is registered
under this Act. The operator claiming the credit shall have the
burden of proving it is entitled to claim a credit.
(d) If any operator erroneously collects tax or collects
more from the purchaser than the purchaser's liability for the
transaction, the purchaser shall have a legal right to claim a
refund of such amount from the operator. However, if such
amount is not refunded to the purchaser for any reason, the
operator is liable to pay such amount to the Department.
(e) The tax imposed by this Section is not imposed with
respect to any transaction in interstate commerce, to the
extent that the transaction may not, under the Constitution and
statutes of the United States, be made the subject of taxation
by this State.
Section 10-15. Filing of returns and deposit of proceeds.
On or before the last day of each calendar month, every
operator engaged in the business of providing to purchasers
parking areas and garages in this State during the preceding
calendar month shall file a return with the Department,
stating:
(1) the name of the operator;
(2) the address of its principal place of business and
the address of the principal place of business from which
it provides parking areas and garages in this State;
(3) the total amount of receipts received by the
operator during the preceding calendar month or quarter, as
the case may be, from sales of parking spaces to purchasers
in parking areas or garages during the preceding calendar
month or quarter;
(4) deductions allowed by law;
(5) the total amount of receipts received by the
operator during the preceding calendar month or quarter
upon which the tax was computed;
(6) the amount of tax due; and
(7) such other reasonable information as the
Department may require.
If an operator ceases to engage in the kind of business
that makes it responsible for filing returns under this Act,
then that operator shall file a final return under this Act
with the Department on or before the last day of the month
after discontinuing such business.
All returns required to be filed and payments required to
be made under this Act shall be by electronic means. Taxpayers
who demonstrate hardship in filing or paying electronically may
petition the Department to waive the electronic filing or
payment requirement, or both. The Department may require a
separate return for the tax under this Act or combine the
return for the tax under this Act with the return for other
taxes.
If the same person has more than one business registered
with the Department under separate registrations under this
Act, that person shall not file each return that is due as a
single return covering all such registered businesses but shall
file separate returns for each such registered business.
If the operator is a corporation, the return filed on
behalf of that corporation shall be signed by the president,
vice-president, secretary, or treasurer, or by a properly
accredited agent of such corporation.
The operator filing the return under this Act shall, at the
time of filing the return, pay to the Department the amount of
tax imposed by this Act less a discount of 1.75%, not to exceed
$1,000 per month, which is allowed to reimburse the operator
for the expenses incurred in keeping records, preparing and
filing returns, remitting the tax, and supplying data to the
Department on request.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
Section 10-20. Exemptions. The tax imposed by this Act
shall not apply to:
(1) parking in a parking area or garage operated by the
federal government or its instrumentalities that has been
issued an active tax exemption number by the Department
under Section 1g of the Retailers' Occupation Tax Act; for
this exemption to apply, the parking area or garage must be
operated by the federal government or its
instrumentalities; the exemption under this paragraph (1)
does not apply if the parking area or garage is operated by
a third party, whether under a lease or other contractual
arrangement, or any other manner whatsoever;
(2) residential off-street parking for home or
apartment tenants or condominium occupants, if the
arrangement for such parking is provided in the home or
apartment lease or in a separate writing between the
landlord and tenant, or in a condominium agreement between
the condominium association and the owner, occupant, or
guest of a unit, whether the parking charge is payable to
the landlord, condominium association, or to the operator
of the parking spaces;
(3) parking by hospital employees in a parking space
that is owned and operated by the hospital for which they
work; and
(4) parking in a parking area or garage where 3 or
fewer motor vehicles are stored, housed, or parked for
hire, charge, fee or other valuable consideration, if the
operator of the parking area or garage does not act as the
operator of more than a total of 3 parking spaces located
in the State; if any operator of parking areas or garages,
including any facilitator or aggregator, acts as an
operator of more than 3 parking spaces in total that are
located in the State, then this exemption shall not apply
to any of those spaces.
Section 10-25. Collection of tax.
(a) Beginning with bills issued or charges collected for a
purchase of a parking space in a parking area or garage on and
after January 1, 2020, the tax imposed by this Act shall be
collected from the purchaser by the operator at the rate stated
in Section 10-10 and shall be remitted to the Department as
provided in this Act. All charges for parking spaces in a
parking area or garage are presumed subject to tax collection.
Operators shall collect the tax from purchasers by adding the
tax to the amount of the purchase price received from the
purchaser. The tax imposed by the Act shall when collected be
stated as a distinct item separate and apart from the purchase
price of the service subject to tax under this Act. However,
where it is not possible to state the tax separately the
Department may by rule exempt such purchases from this
requirement so long as purchasers are notified by language on
the invoice or notified by a sign that the tax is included in
the purchase price.
(b) Any person purchasing a parking space in a parking area
or garage subject to tax under this Act as to which there has
been no charge made to him of the tax imposed by Section 10-10,
shall make payment of the tax imposed by Section 10-10 of this
Act in the form and manner provided by the Department, such
payment to be made to the Department in the manner and form
required by the Department not later than the 20th day of the
month following the month of purchase of the parking space.
Section 10-30. Registration of operators.
(a) A person who engages in business as an operator of a
parking area or garage in this State shall register with the
Department. Application for a certificate of registration
shall be made to the Department, by electronic means, in the
form and manner prescribed by the Department and shall contain
any reasonable information the Department may require. Upon
receipt of the application for a certificate of registration in
proper form and manner, the Department shall issue to the
applicant a certificate of registration. Operators who
demonstrate that they do not have access to the Internet or
demonstrate hardship in applying electronically may petition
the Department to waive the electronic application
requirements.
(b) The Department may refuse to issue or reissue a
certificate of registration to any applicant for the reasons
set forth in Section 2505-380 of the Department of Revenue Law
of the Civil Administrative Code of Illinois.
(c) Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
Section 10-35. Revocation of certificate of registration.
(a) The Department may, after notice and a hearing as
provided in this Act, revoke the certificate of registration of
any operator who violates any of the provisions of this Act or
any rule adopted pursuant to this Act. Before revocation of a
certificate of registration, the Department shall, within 90
days after non-compliance and at least 7 days prior to the date
of the hearing, give the operator so accused notice in writing
of the charge against him or her, and on the date designated
shall conduct a hearing upon this matter. The lapse of such
90-day period shall not preclude the Department from conducting
revocation proceedings at a later date if necessary. Any
hearing held under this Section shall be conducted by the
Director or by any officer or employee of the Department
designated in writing by the Director.
(b) The Department may revoke a certificate of registration
for the reasons set forth in Section 2505-380 of the Department
of Revenue Law of the Civil Administrative Code of Illinois.
(c) Upon the hearing of any such proceeding, the Director
or any officer or employee of the Department designated in
writing by the Director may administer oaths, and the
Department may procure by its subpoena the attendance of
witnesses and, by its subpoena duces tecum, the production of
relevant books and papers. Any circuit court, upon application
either of the operator or of the Department, may, by order duly
entered, require the attendance of witnesses and the production
of relevant books and papers before the Department in any
hearing relating to the revocation of certificates of
registration. Upon refusal or neglect to obey the order of the
court, the court may compel obedience thereof by proceedings
for contempt.
(d) The Department may, by application to any circuit
court, obtain an injunction requiring any person who engages in
business as an operator under this Act to obtain a certificate
of registration. Upon refusal or neglect to obey the order of
the court, the court may compel obedience by proceedings for
contempt.
Section 10-40. Valet services.
(a) Persons engaged in the business of providing valet
services are subject to the tax imposed by this Act on the
purchase price received in connection with their valet parking
operations.
(b) Persons engaged in the business of providing valet
services are entitled to take the credit in subsection (c) of
Section 10-10.
(c) Tips received by persons parking cars for persons
engaged in the business of providing valet services are not
subject to the tax imposed by this Act if the tips are retained
by the person receiving the tip. If the tips are turned over to
the valet business, the tips shall be included in the purchase
price.
Section 10-45. Tax collected as debt owed to State. The tax
herein required to be collected by any operator or valet
business and any such tax collected by that person, shall
constitute a debt owed by that person to this State.
Section 10-50. Incorporation by reference. All of the
provisions of Sections 1, 2a, 2b, 3 (except provisions relating
to transaction returns and except for provisions that are
inconsistent with this Act), in respect to all provisions
therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and
13 of the Retailers' Occupation Tax Act that are not
inconsistent with this Act, and all provisions of the Uniform
Penalty and Interest Act shall apply, as far as practicable, to
the subject matter of this Act to the same extent as if such
provisions were included in this Act.
Section 10-55. Deposit of proceeds from parking excise tax.
The moneys received by the Department from the tax imposed by
this Act shall be deposited into the Capital Projects Fund.
→ This allows the Illinois Gaming Board and other agencies to make changes to the rules they use to regulate gambling so that they comply with other provisions of the bill. There could be some interesting stuff in here, but we haven’t had time to absorb it yet.
Section 15-5. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(hh) In order to provide for the expeditious and timely
implementation of the provisions of the Leveling the Playing
Field for Illinois Retail Act, emergency rules may be adopted
in accordance with this subsection (hh) to implement the
changes made by the Leveling the Playing Field for Illinois
Retail Act. The adoption of emergency rules authorized by this
subsection (hh) is deemed to be necessary for the public
interest, safety, and welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 15-10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by adding Section 605-1025 as follows:
(20 ILCS 605/605-1025 new)
Sec. 605-1025. Data center investment.
(a) The Department shall issue certificates of exemption
from the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act, all
locally-imposed retailers' occupation taxes administered and
collected by the Department, the Chicago non-titled Use Tax,
the Electricity Excise Tax Act, and a credit certification
against the taxes imposed under subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act to qualifying
Illinois data centers.
(b) For taxable years beginning on or after January 1,
2019, the Department shall award credits against the taxes
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act as provided in Section 229 of the
Illinois Income Tax Act.
(c) For purposes of this Section:
"Data center" means a facility: (1) whose primary
services are the storage, management, and processing of
digital data; and (2) that is used to house (i) computer
and network systems, including associated components such
as servers, network equipment and appliances,
telecommunications, and data storage systems, (ii) systems
for monitoring and managing infrastructure performance,
(iii) Internet-related equipment and services, (iv) data
communications connections, (v) environmental controls,
(vi) fire protection systems, and (vii) security systems
and services.
"Qualifying Illinois data center" means a new or
existing data center that:
(1) is located in the State of Illinois;
(2) in the case of an existing data center, made a
capital investment of at least $250,000,000
collectively by the data center operator and the
tenants of all of its data centers over the 60-month
period immediately prior to January 1, 2020 or
committed to make a capital investment of at least
$250,000,000 over a 60-month period commencing before
January 1, 2020 and ending after January 1, 2020; or
(3) in the case of a new data center, makes a
capital investment of at least $250,000,000 over a
60-month period; and
(4) in the case of both existing and new data
centers, results in the creation of at least 20
full-time or full-time equivalent new jobs over a
period of 60 months by the data center operator and the
tenants of the data center, collectively, associated
with the operation or maintenance of the data center;
those jobs must have a total compensation equal to or
greater than 120% of the median wage paid to full-time
employees in the county where the data center is
located, as determined by the U.S. Bureau of Labor
Statistics; and
(5) is carbon neutral or attains certification
under one or more of the following green building
standards:
(A) BREEAM for New Construction or BREEAM
In-Use;
(B) ENERGY STAR;
(C) Envision;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction
or LEED for Operations and Maintenance;
(F) Green Globes for New Construction or Green
Globes for Existing Buildings;
(G) UL 3223; or
(H) an equivalent program approved by the
Department of Commerce and Economic Opportunity.
"Full-time equivalent job" means a job in which the new
employee works for the owner, operator, contractor, or
tenant of a data center or for a corporation under contract
with the owner, operator or tenant of a data center at a
rate of at least 35 hours per week. An owner, operator or
tenant who employs labor or services at a specific site or
facility under contract with another may declare one
full-time, permanent job for every 1,820 man hours worked
per year under that contract. Vacations, paid holidays, and
sick time are included in this computation. Overtime is not
considered a part of regular hours.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. "Qualified tangible personal property" also
includes building materials physically incorporated in to
the qualifying data center.
To document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department.
(d) New and existing data centers seeking a certificate of
exemption for new or existing facilities shall apply to the
Department in the manner specified by the Department. The
Department shall determine the duration of the certificate of
exemption awarded under this Act. The duration of the
certificate of exemption may not exceed 20 calendar years. The
Department and any data center seeking the exemption, including
a data center operator on behalf of itself and its tenants,
must enter into a memorandum of understanding that at a minimum
provides:
(1) the details for determining the amount of capital
investment to be made;
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
and new job goals;
(4) the repayment obligation should those goals not be
achieved and any conditions under which repayment by the
qualifying data center or data center tenant claiming the
exemption will be required;
(5) the duration of the exemption; and
(6) other provisions as deemed necessary by the
Department.
(e) Beginning July 1, 2021, and each year thereafter, the
Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of this
amendatory Act of the 101st General Assembly that shall include
the following:
(1) the name of each recipient business;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new jobs and, if applicable, retained
jobs pledged as a result of the project; and
(5) whether or not the project is located in an
underserved area.
(f) New and existing data centers seeking a certificate of
exemption related to the rehabilitation or construction of data
centers in the State shall require the contractor and all
subcontractors to comply with the requirements of Section 30-22
of the Illinois Procurement Code as they apply to responsible
bidders and to present satisfactory evidence of that compliance
to the Department.
(g) New and existing data centers seeking a certificate of
exemption for the rehabilitation or construction of data
centers in the State shall require the contractor to enter into
a project labor agreement approved by the Department.
(h) Any qualifying data center issued a certificate of
exemption under this Section must annually report to the
Department the total data center tax benefits that are received
by the business. Reports are due no later than May 31 of each
year and shall cover the previous calendar year. The first
report is for the 2019 calendar year and is due no later than
May 31, 2020.
To the extent that a business issued a certificate of
exemption under this Section has obtained an Enterprise Zone
Building Materials Exemption Certificate or a High Impact
Business Building Materials Exemption Certificate, no
additional reporting for those building materials exemption
benefits is required under this Section.
Failure to file a report under this subsection (h) may
result in suspension or revocation of the certificate of
exemption. The Department shall adopt rules governing
suspension or revocation of the certificate of exemption,
including the length of suspension. Factors to be considered in
determining whether a data center certificate of exemption
shall be suspended or revoked include, but are not limited to,
prior compliance with the reporting requirements, cooperation
in discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
(i) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2029. This sunset shall not affect any existing certificates of
exemption in effect on July 1, 2029.
Section 15-20. The State Finance Act is amended by adding
Sections 5.891, 5.893, and 5.894 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Transportation Renewal Fund.
(30 ILCS 105/5.893 new)
Sec. 5.893. The Regional Transportation Authority Capital
Improvement Fund.
(30 ILCS 105/5.894 new)
Sec. 5.894. The Downstate Mass Transportation Capital
Improvement Fund.
Section 15-25. The Illinois Income Tax Act is amended by
adding Section 229 as follows:
(35 ILCS 5/229 new)
Sec. 229. Data center construction employment tax credit.
(a) A taxpayer who has been awarded a credit by the
Department of Commerce and Economic Opportunity under Section
605-1025 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois is entitled to
a credit against the taxes imposed under subsections (a) and
(b) of Section 201 of this Act. The amount of the credit shall
be 20% of the wages paid during the taxable year to a full-time
or part-time employee of a construction contractor employed by
a certified data center if those wages are paid for the
construction of a new data center in a geographic area that
meets any one of the following criteria:
(1) the area has a poverty rate of at least 20%,
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate
in the federal free lunch program, according to reported
statistics from the State Board of Education;
(3) 20% or more of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as
determined by the U.S. Department of Labor, for a period of
at least 2 consecutive calendar years preceding the date of
the application.
If the taxpayer is a partnership, a Subchapter S
corporation, or a limited liability company that has elected
partnership tax treatment, the credit shall be allowed to the
partners, shareholders, or members in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code, as applicable. The Department, in cooperation with the
Department of Commerce and Economic Opportunity, shall adopt
rules to enforce and administer this Section. This Section is
exempt from the provisions of Section 250 of this Act.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(c) No credit shall be allowed with respect to any
certification for any taxable year ending after the revocation
of the certification by the Department of Commerce and Economic
Opportunity. Upon receiving notification by the Department of
Commerce and Economic Opportunity of the revocation of
certification, the Department shall notify the taxpayer that no
credit is allowed for any taxable year ending after the
revocation date, as stated in such notification. If any credit
has been allowed with respect to a certification for a taxable
year ending after the revocation date, any refund paid to the
taxpayer for that taxable year shall, to the extent of that
credit allowed, be an erroneous refund within the meaning of
Section 912 of this Act.
Section 15-30. The Use Tax Act is amended by changing
Sections 2 and 3-5 as follows:
(35 ILCS 105/2) (from Ch. 120, par. 439.2)
Sec. 2. Definitions.
"Use" means the exercise by any person of any right or
power over tangible personal property incident to the ownership
of that property, except that it does not include the sale of
such property in any form as tangible personal property in the
regular course of business to the extent that such property is
not first subjected to a use for which it was purchased, and
does not include the use of such property by its owner for
demonstration purposes: Provided that the property purchased
is deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or by-product
of manufacturing. "Use" does not mean the demonstration use or
interim use of tangible personal property by a retailer before
he sells that tangible personal property. For watercraft or
aircraft, if the period of demonstration use or interim use by
the retailer exceeds 18 months, the retailer shall pay on the
retailers' original cost price the tax imposed by this Act, and
no credit for that tax is permitted if the watercraft or
aircraft is subsequently sold by the retailer. "Use" does not
mean the physical incorporation of tangible personal property,
to the extent not first subjected to a use for which it was
purchased, as an ingredient or constituent, into other tangible
personal property (a) which is sold in the regular course of
business or (b) which the person incorporating such ingredient
or constituent therein has undertaken at the time of such
purchase to cause to be transported in interstate commerce to
destinations outside the State of Illinois: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
by-product of manufacturing.
"Watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
"Purchase at retail" means the acquisition of the ownership
of or title to tangible personal property through a sale at
retail.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of tangible personal property for a
valuable consideration.
"Sale at retail" means any transfer of the ownership of or
title to tangible personal property to a purchaser, for the
purpose of use, and not for the purpose of resale in any form
as tangible personal property to the extent not first subjected
to a use for which it was purchased, for a valuable
consideration: Provided that the property purchased is deemed
to be purchased for the purpose of resale, despite first being
used, to the extent to which it is resold as an ingredient of
an intentionally produced product or by-product of
manufacturing. For this purpose, slag produced as an incident
to manufacturing pig iron or steel and sold is considered to be
an intentionally produced by-product of manufacturing. "Sale
at retail" includes any such transfer made for resale unless
made in compliance with Section 2c of the Retailers' Occupation
Tax Act, as incorporated by reference into Section 12 of this
Act. Transactions whereby the possession of the property is
transferred but the seller retains the title as security for
payment of the selling price are sales.
"Sale at retail" shall also be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property other than as hereinafter provided, and
services, but, prior to January 1, 2020, not including the
value of or credit given for traded-in tangible personal
property where the item that is traded-in is of like kind and
character as that which is being sold; beginning January 1,
2020, "selling price" includes the portion of the value of or
credit given for traded-in motor vehicles of the First Division
as defined in Section 1-146 of the Illinois Vehicle Code of
like kind and character as that which is being sold that
exceeds $10,000. "Selling price" , and shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include interest or
finance charges which appear as separate items on the bill of
sale or sales contract nor charges that are added to prices by
sellers on account of the seller's tax liability under the
"Retailers' Occupation Tax Act", or on account of the seller's
duty to collect, from the purchaser, the tax that is imposed by
this Act, or, except as otherwise provided with respect to any
cigarette tax imposed by a home rule unit, on account of the
seller's tax liability under any local occupation tax
administered by the Department, or, except as otherwise
provided with respect to any cigarette tax imposed by a home
rule unit on account of the seller's duty to collect, from the
purchasers, the tax that is imposed under any local use tax
administered by the Department. Effective December 1, 1985,
"selling price" shall include charges that are added to prices
by sellers on account of the seller's tax liability under the
Cigarette Tax Act, on account of the seller's duty to collect,
from the purchaser, the tax imposed under the Cigarette Use Tax
Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all
monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by this Act or to pay the tax imposed by the
Retailers' Occupation Tax Act on those amounts. However, the
lessor who purchased the motor vehicle assumes the liability
for reporting and paying the tax on those amounts directly to
the Department in the same form (Illinois Retailers' Occupation
Tax, and local retailers' occupation taxes, if applicable) in
which the retailer would have reported and paid such tax if the
retailer had accounted for the tax to the Department. For
amounts received by the lessor from the lessee that are not
calculated at the time the lease is executed, the lessor must
file the return and pay the tax to the Department by the due
date otherwise required by this Act for returns other than
transaction returns. If the retailer is entitled under this Act
to a discount for collecting and remitting the tax imposed
under this Act to the Department with respect to the sale of
the motor vehicle to the lessor, then the right to the discount
provided in this Act shall be transferred to the lessor with
respect to the tax paid by the lessor for any amount received
by the lessor from the lessee for the leased vehicle that is
not calculated at the time the lease is executed; provided that
the discount is only allowed if the return is timely filed and
for amounts timely paid. The "selling price" of a motor vehicle
that is sold on or after January 1, 2015 for the purpose of
leasing for a defined period of longer than one year shall not
be reduced by the value of or credit given for traded-in
tangible personal property owned by the lessor, nor shall it be
reduced by the value of or credit given for traded-in tangible
personal property owned by the lessee, regardless of whether
the trade-in value thereof is assigned by the lessee to the
lessor. In the case of a motor vehicle that is sold for the
purpose of leasing for a defined period of longer than one
year, the sale occurs at the time of the delivery of the
vehicle, regardless of the due date of any lease payments. A
lessor who incurs a Retailers' Occupation Tax liability on the
sale of a motor vehicle coming off lease may not take a credit
against that liability for the Use Tax the lessor paid upon the
purchase of the motor vehicle (or for any tax the lessor paid
with respect to any amount received by the lessor from the
lessee for the leased vehicle that was not calculated at the
time the lease was executed) if the selling price of the motor
vehicle at the time of purchase was calculated using the
definition of "selling price" as defined in this paragraph.
Notwithstanding any other provision of this Act to the
contrary, lessors shall file all returns and make all payments
required under this paragraph to the Department by electronic
means in the manner and form as required by the Department.
This paragraph does not apply to leases of motor vehicles for
which, at the time the lease is entered into, the term of the
lease is not a defined period, including leases with a defined
initial period with the option to continue the lease on a
month-to-month or other basis beyond the initial defined
period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
"Retailer" means and includes every person engaged in the
business of making sales at retail as defined in this Section.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a retailer hereunder with respect to such
sales (and not primarily in a service occupation)
notwithstanding the fact that such person designs and produces
such tangible personal property on special order for the
purchaser and in such a way as to render the property of value
only to such purchaser, if such tangible personal property so
produced on special order serves substantially the same
function as stock or standard items of tangible personal
property that are sold at retail.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is a retailer with respect to such transactions, excepting only
a person organized and operated exclusively for charitable,
religious or educational purposes either (1), to the extent of
sales by such person to its members, students, patients or
inmates of tangible personal property to be used primarily for
the purposes of such person, or (2), to the extent of sales by
such person of tangible personal property which is not sold or
offered for sale by persons organized for profit. The selling
of school books and school supplies by schools at retail to
students is not "primarily for the purposes of" the school
which does such selling. This paragraph does not apply to nor
subject to taxation occasional dinners, social or similar
activities of a person organized and operated exclusively for
charitable, religious or educational purposes, whether or not
such activities are open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not a
retailer under this Act with respect to such transactions.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
retailers hereunder when engaged in such business.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail or a sale through a
bulk vending machine does not make such person a retailer
hereunder. However, any person who is engaged in a business
which is not subject to the tax imposed by the "Retailers'
Occupation Tax Act" because of involving the sale of or a
contract to sell real estate or a construction contract to
improve real estate, but who, in the course of conducting such
business, transfers tangible personal property to users or
consumers in the finished form in which it was purchased, and
which does not become real estate, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is a retailer to the
extent of the value of the tangible personal property so
transferred. If, in such transaction, a separate charge is made
for the tangible personal property so transferred, the value of
such property, for the purposes of this Act, is the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property.
"Retailer maintaining a place of business in this State",
or any like term, means and includes any of the following
retailers:
(1) A retailer having or maintaining within this State,
directly or by a subsidiary, an office, distribution house,
sales house, warehouse or other place of business, or any
agent or other representative operating within this State
under the authority of the retailer or its subsidiary,
irrespective of whether such place of business or agent or
other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State. However, the
ownership of property that is located at the premises of a
printer with which the retailer has contracted for printing
and that consists of the final printed product, property
that becomes a part of the final printed product, or copy
from which the printed product is produced shall not result
in the retailer being deemed to have or maintain an office,
distribution house, sales house, warehouse, or other place
of business within this State.
(1.1) (Blank). A retailer having a contract with a
(1.2) (Blank). Beginning July 1, 2011, a retailer
(2) (Blank). A retailer soliciting orders for tangible
(3) (Blank). A retailer, pursuant to a contract with a
(4) (Blank). A retailer soliciting orders for tangible
(5) (Blank). A retailer that is owned or controlled by
(6) (Blank). A retailer having a franchisee or licensee
(7) (Blank). A retailer, pursuant to a contract with a
(8) (Blank). A retailer engaging in activities in
(9) Beginning October 1, 2018 through June 30, 2020, a
retailer making sales of tangible personal property to
purchasers in Illinois from outside of Illinois if:
(A) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois
are $100,000 or more; or
(B) the retailer enters into 200 or more separate
transactions for the sale of tangible personal
property to purchasers in Illinois.
The retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
subparagraph (A) or (B) of this paragraph (9) for the
preceding 12-month period. If the retailer meets the
criteria of either subparagraph (A) or (B) for a 12-month
period, he or she is considered a retailer maintaining a
place of business in this State and is required to collect
and remit the tax imposed under this Act and file returns
for one year. At the end of that one-year period, the
retailer shall determine whether the retailer met the
criteria of either subparagraph (A) or (B) during the
preceding 12-month period. If the retailer met the criteria
in either subparagraph (A) or (B) for the preceding
12-month period, he or she is considered a retailer
maintaining a place of business in this State and is
required to collect and remit the tax imposed under this
Act and file returns for the subsequent year. If at the end
of a one-year period a retailer that was required to
collect and remit the tax imposed under this Act determines
that he or she did not meet the criteria in either
subparagraph (A) or (B) during the preceding 12-month
period, the retailer shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the
criteria of either subparagraph (A) or (B) for the
preceding 12-month period.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts
machinery and equipment is included in the manufacturing and
assembling machinery and equipment exemption under paragraph
(18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (11). Agricultural chemical tender tanks and dry
boxes shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order for
a particular purchaser. The exemption provided by this
paragraph (18) does not include machinery and equipment used in
(i) the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1, 2017,
the exemption provided by this paragraph (18) includes, but is
not limited to, graphic arts machinery and equipment, as
defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 for such taxes paid during the period beginning May 30,
2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the property is leased in a
manner that does not qualify for this exemption or used in any
other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department. This
paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (35) by Public Act 98-534 are declarative of existing
law.
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase Agreement
Act, and provide proof of registration under the Rental
Purchase Agreement Occupation and Use Tax Act. This paragraph
is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (40) is exempt from the provisions of Section
3-90.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
6-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised
1-8-19.)
Section 15-35. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the provisions
of Section 3-75, and the exemption provided for under this item
(14) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) this amendatory
period beginning May 30, 2000 and ending on January 1, 2008
(the effective date of Public Act 95-88) this amendatory Act of
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax
Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
(20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying
use occurs. No lessor shall collect or attempt to collect an
amount (however designated) that purports to reimburse that
lessor for the tax imposed by this Act or the Use Tax Act, as
the case may be, if the tax has not been paid by the lessor. If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable to
pay that amount to the Department. This paragraph is exempt
from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property transferred incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (27) by Public Act 98-534 are declarative of existing
law.
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
1-4-19; revised 1-8-19.)
Section 15-40. The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the benefit
of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale
by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the provisions
of Section 3-55, and the exemption provided for under this item
(15) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-55.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from
the provisions of Section 3-55.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act. This paragraph is exempt from the provisions of
Section 3-55.
(26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i) for
the purpose of subsequently transporting it outside this State
for use or consumption thereafter solely outside this State or
(ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this State
and thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (26). The permit issued under this paragraph (26)
shall authorize the holder, to the extent and in the manner
specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the
taxes imposed by this Act. Taxpayers shall maintain all
necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (29) by Public Act 98-534 are declarative of existing
law.
(30) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
1-4-19; revised 1-8-19.)
Section 15-45. The Retailers' Occupation Tax Act is amended
by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:
(35 ILCS 120/1) (from Ch. 120, par. 440)
Sec. 1. Definitions. "Sale at retail" means any transfer of
the ownership of or title to tangible personal property to a
purchaser, for the purpose of use or consumption, and not for
the purpose of resale in any form as tangible personal property
to the extent not first subjected to a use for which it was
purchased, for a valuable consideration: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
byproduct of manufacturing. For this purpose, slag produced as
an incident to manufacturing pig iron or steel and sold is
considered to be an intentionally produced byproduct of
manufacturing. Transactions whereby the possession of the
property is transferred but the seller retains the title as
security for payment of the selling price shall be deemed to be
sales.
"Sale at retail" shall be construed to include any transfer
of the ownership of or title to tangible personal property to a
purchaser, for use or consumption by any other person to whom
such purchaser may transfer the tangible personal property
without a valuable consideration, and to include any transfer,
whether made for or without a valuable consideration, for
resale in any form as tangible personal property unless made in
compliance with Section 2c of this Act.
Sales of tangible personal property, which property, to the
extent not first subjected to a use for which it was purchased,
as an ingredient or constituent, goes into and forms a part of
tangible personal property subsequently the subject of a "Sale
at retail", are not sales at retail as defined in this Act:
Provided that the property purchased is deemed to be purchased
for the purpose of resale, despite first being used, to the
extent to which it is resold as an ingredient of an
intentionally produced product or byproduct of manufacturing.
"Sale at retail" shall be construed to include any Illinois
florist's sales transaction in which the purchase order is
received in Illinois by a florist and the sale is for use or
consumption, but the Illinois florist has a florist in another
state deliver the property to the purchaser or the purchaser's
donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is engaged in the business of selling tangible personal
property at retail with respect to such transactions, excepting
only a person organized and operated exclusively for
charitable, religious or educational purposes either (1), to
the extent of sales by such person to its members, students,
patients or inmates of tangible personal property to be used
primarily for the purposes of such person, or (2), to the
extent of sales by such person of tangible personal property
which is not sold or offered for sale by persons organized for
profit. The selling of school books and school supplies by
schools at retail to students is not "primarily for the
purposes of" the school which does such selling. The provisions
of this paragraph shall not apply to nor subject to taxation
occasional dinners, socials or similar activities of a person
organized and operated exclusively for charitable, religious
or educational purposes, whether or not such activities are
open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property
at retail with respect to such transactions.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of or title to tangible personal
property for a valuable consideration.
"Reseller of motor fuel" means any person engaged in the
business of selling or delivering or transferring title of
motor fuel to another person other than for use or consumption.
No person shall act as a reseller of motor fuel within this
State without first being registered as a reseller pursuant to
Section 2c or a retailer pursuant to Section 2a.
"Selling price" or the "amount of sale" means the
consideration for a sale valued in money whether received in
money or otherwise, including cash, credits, property, other
than as hereinafter provided, and services, but, prior to
January 1, 2020, not including the value of or credit given for
traded-in tangible personal property where the item that is
traded-in is of like kind and character as that which is being
sold; beginning January 1, 2020, "selling price" includes the
portion of the value of or credit given for traded-in motor
vehicles of the First Division as defined in Section 1-146 of
the Illinois Vehicle Code of like kind and character as that
which is being sold that exceeds $10,000. "Selling price" , and
shall be determined without any deduction on account of the
cost of the property sold, the cost of materials used, labor or
service cost or any other expense whatsoever, but does not
include charges that are added to prices by sellers on account
of the seller's tax liability under this Act, or on account of
the seller's duty to collect, from the purchaser, the tax that
is imposed by the Use Tax Act, or, except as otherwise provided
with respect to any cigarette tax imposed by a home rule unit,
on account of the seller's tax liability under any local
occupation tax administered by the Department, or, except as
otherwise provided with respect to any cigarette tax imposed by
a home rule unit on account of the seller's duty to collect,
from the purchasers, the tax that is imposed under any local
use tax administered by the Department. Effective December 1,
1985, "selling price" shall include charges that are added to
prices by sellers on account of the seller's tax liability
under the Cigarette Tax Act, on account of the sellers' duty to
collect, from the purchaser, the tax imposed under the
Cigarette Use Tax Act, and on account of the seller's duty to
collect, from the purchaser, any cigarette tax imposed by a
home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all
monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by the Use Tax Act or to pay the tax imposed by this
Act on those amounts. However, the lessor who purchased the
motor vehicle assumes the liability for reporting and paying
the tax on those amounts directly to the Department in the same
form (Illinois Retailers' Occupation Tax, and local retailers'
occupation taxes, if applicable) in which the retailer would
have reported and paid such tax if the retailer had accounted
for the tax to the Department. For amounts received by the
lessor from the lessee that are not calculated at the time the
lease is executed, the lessor must file the return and pay the
tax to the Department by the due date otherwise required by
this Act for returns other than transaction returns. If the
retailer is entitled under this Act to a discount for
collecting and remitting the tax imposed under this Act to the
Department with respect to the sale of the motor vehicle to the
lessor, then the right to the discount provided in this Act
shall be transferred to the lessor with respect to the tax paid
by the lessor for any amount received by the lessor from the
lessee for the leased vehicle that is not calculated at the
time the lease is executed; provided that the discount is only
allowed if the return is timely filed and for amounts timely
paid. The "selling price" of a motor vehicle that is sold on or
after January 1, 2015 for the purpose of leasing for a defined
period of longer than one year shall not be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessor, nor shall it be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessee, regardless of whether the
trade-in value thereof is assigned by the lessee to the lessor.
In the case of a motor vehicle that is sold for the purpose of
leasing for a defined period of longer than one year, the sale
occurs at the time of the delivery of the vehicle, regardless
of the due date of any lease payments. A lessor who incurs a
Retailers' Occupation Tax liability on the sale of a motor
vehicle coming off lease may not take a credit against that
liability for the Use Tax the lessor paid upon the purchase of
the motor vehicle (or for any tax the lessor paid with respect
to any amount received by the lessor from the lessee for the
leased vehicle that was not calculated at the time the lease
was executed) if the selling price of the motor vehicle at the
time of purchase was calculated using the definition of
"selling price" as defined in this paragraph. Notwithstanding
any other provision of this Act to the contrary, lessors shall
file all returns and make all payments required under this
paragraph to the Department by electronic means in the manner
and form as required by the Department. This paragraph does not
apply to leases of motor vehicles for which, at the time the
lease is entered into, the term of the lease is not a defined
period, including leases with a defined initial period with the
option to continue the lease on a month-to-month or other basis
beyond the initial defined period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Gross receipts" from the sales of tangible personal
property at retail means the total selling price or the amount
of such sales, as hereinbefore defined. In the case of charge
and time sales, the amount thereof shall be included only as
and when payments are received by the seller. Receipts or other
consideration derived by a seller from the sale, transfer or
assignment of accounts receivable to a wholly owned subsidiary
will not be deemed payments prior to the time the purchaser
makes payment on such accounts.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail, or a sale through a
bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail
within the meaning of this Act; provided that any person who is
engaged in a business which is not subject to the tax imposed
by this Act because of involving the sale of or a contract to
sell real estate or a construction contract to improve real
estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the
course of conducting such business, transfers tangible
personal property to users or consumers in the finished form in
which it was purchased, and which does not become real estate
or was not engineered and installed, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is engaged in the business
of selling tangible personal property at retail to the extent
of the value of the tangible personal property so transferred.
If, in such a transaction, a separate charge is made for the
tangible personal property so transferred, the value of such
property, for the purpose of this Act, shall be the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property. Construction
contracts for the improvement of real estate consisting of
engineering, installation, and maintenance of voice, data,
video, security, and all telecommunication systems do not
constitute engaging in a business of selling tangible personal
property at retail within the meaning of this Act if they are
sold at one specified contract price.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property
of value only to such purchaser, if such tangible personal
property so produced on special order serves substantially the
same function as stock or standard items of tangible personal
property that are sold at retail.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
engaged in the business of selling such property at retail and
shall be liable for and shall pay the tax imposed by this Act
on the basis of the retail value of the property transferred
upon redemption of such stamps.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
"Remote retailer" means a retailer located outside of this
State that does not maintain within this State, directly or by
a subsidiary, an office, distribution house, sales house,
warehouse or other place of business, or any agent or other
representative operating within this State under the authority
of the retailer or its subsidiary, irrespective of whether such
place of business or agent is located here permanently or
temporarily or whether such retailer or subsidiary is licensed
to do business in this State.
(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed.
(a) A tax is imposed upon persons engaged in the business
of selling at retail tangible personal property, including
computer software, and including photographs, negatives, and
positives that are the product of photoprocessing, but not
including products of photoprocessing produced for use in
motion pictures for public commercial exhibition. Beginning
January 1, 2001, prepaid telephone calling arrangements shall
be considered tangible personal property subject to the tax
imposed under this Act regardless of the form in which those
arrangements may be embodied, transmitted, or fixed by any
method now known or hereafter developed. Sales of (1)
electricity delivered to customers by wire; (2) natural or
artificial gas that is delivered to customers through pipes,
pipelines, or mains; and (3) water that is delivered to
customers through pipes, pipelines, or mains are not subject to
tax under this Act. The provisions of this amendatory Act of
the 98th General Assembly are declaratory of existing law as to
the meaning and scope of this Act.
(b) Beginning on July 1, 2020, a remote retailer is engaged
in the occupation of selling at retail in Illinois for purposes
of this Act, if:
(1) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois are
$100,000 or more; or
(2) the retailer enters into 200 or more separate
transactions for the sale of tangible personal property to
purchasers in Illinois.
Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State and locally imposed retailers' occupation
taxes on all retail sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and December,
whether he or she meets the criteria of either paragraph (1) or
(2) of this subsection for the preceding 12-month period. If
the retailer meets the criteria of either paragraph (1) or (2)
for a 12-month period, he or she is considered a retailer
maintaining a place of business in this State and is required
to collect and remit the tax imposed under this Act and all
retailers' occupation tax imposed by local taxing
jurisdictions in Illinois, provided such local taxes are
administered by the Department, and to file all applicable
returns for one year. At the end of that one-year period, the
retailer shall determine whether the retailer met the criteria
of either paragraph (1) or (2) for the preceding 12-month
period. If the retailer met the criteria in either paragraph
(1) or (2) for the preceding 12-month period, he or she is
considered a retailer maintaining a place of business in this
State and is required to collect and remit all applicable State
and local retailers' occupation taxes and file returns for the
subsequent year. If, at the end of a one-year period, a
retailer that was required to collect and remit the tax imposed
under this Act determines that he or she did not meet the
criteria in either paragraph (1) or (2) during the preceding
12-month period, then the retailer shall subsequently
determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether he or she meets
the criteria of either paragraph (1) or (2) for the preceding
12-month period.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the
sale of the following tangible personal property are exempt
from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined in
Section 1-130 of the Illinois Vehicle Code, farm machinery
and agricultural chemical and fertilizer spreaders, and
nurse wagons required to be registered under Section 3-809
of the Illinois Vehicle Code, but excluding other motor
vehicles required to be registered under the Illinois
Vehicle Code. Horticultural polyhouses or hoop houses used
for propagating, growing, or overwintering plants shall be
considered farm machinery and equipment under this item
(2). Agricultural chemical tender tanks and dry boxes shall
include units sold separately from a motor vehicle required
to be licensed and units sold mounted on a motor vehicle
required to be licensed, if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but
not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors,
computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (2) is exempt
from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by
the retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both
new and used, and including that manufactured on special
order or purchased for lease, certified by the purchaser to
be used primarily for graphic arts production. Equipment
includes chemicals or chemicals acting as catalysts but
only if the chemicals or chemicals acting as catalysts
effect a direct and immediate change upon a graphic arts
product. Beginning on July 1, 2017, graphic arts machinery
and equipment is included in the manufacturing and
assembling machinery and equipment exemption under
paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of the
selling price of a passenger car the sale of which is
subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35), however, an entity otherwise eligible for this
exemption shall not make tax-free purchases unless it has
an active identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,
other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(11) Personal property sold to a governmental body, to
a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no
compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years
of age or older. A limited liability company may qualify
for the exemption under this paragraph only if the limited
liability company is organized and operated exclusively
for educational purposes. On and after July 1, 1987,
however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such
a motor vehicle if that motor vehicle is used in a manner
that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of any
commercial or industrial enterprise whether for-hire or
not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock
moving in interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier
by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in
interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by
some other person, whether the materials used in the
process are owned by the manufacturer or some other person,
or whether the sale or lease is made apart from or as an
incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns,
gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption
provided by this paragraph (14) does not include machinery
and equipment used in (i) the generation of electricity for
wholesale or retail sale; (ii) the generation or treatment
of natural or artificial gas for wholesale or retail sale
that is delivered to customers through pipes, pipelines, or
mains; or (iii) the treatment of water for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope
of this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service
charge is imposed.
(16) Tangible personal property sold to a purchaser if
the purchaser is exempt from use tax by operation of
federal law. This paragraph is exempt from the provisions
of Section 2-70.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and
parts of rigs, rotary rigs, cable tool rigs, and workover
rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual
replacement part for oil field exploration, drilling, and
production equipment, and (vi) machinery and equipment
purchased for lease; but excluding motor vehicles required
to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment
purchased for lease.
(21) Until July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required
to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on
and after July 1, 2003, but no claim for credit or refund
is allowed on or after August 16, 2013 (the effective date
of Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this Section,
a motor vehicle sold in this State to a nonresident even
though the motor vehicle is delivered to the nonresident in
this State, if the motor vehicle is not to be titled in
this State, and if a drive-away permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
drive-away permit or having the out-of-state registration
plates to be transferred is prima facie evidence that the
motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on the
sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the time
of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his
or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to require
the removal of the vehicle from this state following the
filing of an intent to title the vehicle in the purchaser's
state of residence if the purchaser titles the vehicle in
his or her state of residence within 30 days after the date
of sale. The tax collected under this Act in accordance
with this item (25-5) shall be proportionately distributed
as if the tax were collected at the 6.25% general rate
imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the authorized
approval for return to service, completion of the
maintenance record entry, and completion of the test
flight and ground test for inspection, as required by
14 C.F.R. 91.407;
(2) the aircraft is not based or registered in this
State after the sale of the aircraft; and
(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.
This paragraph (25-7) is exempt from the provisions of
Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse
Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting
Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (27)
is exempt from the provisions of Section 2-70, and the
exemption provided for under this item (27) applies for all
periods beginning May 30, 1995, but no claim for credit or
refund is allowed on or after January 1, 2008 (the
effective date of Public Act 95-88) for such taxes paid
during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption
identification number by the Department under Section 1g of
this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax
exemption identification number by the Department that
assists victims of the disaster who reside within the
declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is used
in the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities,
resulting from a State or federally declared disaster in
Illinois or bordering Illinois when such repairs are
initiated on facilities located in the declared disaster
area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold at
a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from
the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is donated
to a corporation, limited liability company, society,
association, foundation, or institution that is determined
by the Department to be organized and operated exclusively
for educational purposes. For purposes of this exemption,
"a corporation, limited liability company, society,
association, foundation, or institution organized and
operated exclusively for educational purposes" means all
tax-supported public schools, private schools that offer
systematic instruction in useful branches of learning by
methods common to public schools and that compare favorably
in their scope and intensity with the course of study
presented in tax-supported schools, and vocational or
technical schools or institutes organized and operated
exclusively to provide a course of study of not less than 6
weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical,
mechanical, industrial, business, or commercial
occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for
the benefit of a public or private elementary or secondary
school, a group of those schools, or one or more school
districts if the events are sponsored by an entity
recognized by the school district that consists primarily
of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to
fundraising events (i) for the benefit of private home
instruction or (ii) for which the fundraising entity
purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the fundraising entity. This
paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare
and serve hot food and beverages, including coffee, soup,
and other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003,
machines and parts for machines used in commercial,
coin-operated amusement and vending business if a use or
occupation tax is paid on the gross receipts derived from
the use of the commercial, coin-operated amusement and
vending machines. This paragraph is exempt from the
provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use by
a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or treatment
of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or
in effect at the time of the purchase, to a hospital that
has been issued an active tax exemption identification
number by the Department under Section 1g of this Act. This
paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a governmental body that has been issued an
active tax exemption identification number by the
Department under Section 1g of this Act. This paragraph is
exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an
Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois who will, upon receipt of
the property in Illinois, temporarily store the property in
Illinois (i) for the purpose of subsequently transporting
it outside this State for use or consumption thereafter
solely outside this State or (ii) for the purpose of being
processed, fabricated, or manufactured into, attached to,
or incorporated into other tangible personal property to be
transported outside this State and thereafter used or
consumed solely outside this State. The Director of Revenue
shall, pursuant to rules adopted in accordance with the
Illinois Administrative Procedure Act, issue a permit to
any taxpayer in good standing with the Department who is
eligible for the exemption under this paragraph (38). The
permit issued under this paragraph (38) shall authorize the
holder, to the extent and in the manner specified in the
rules adopted under this Act, to purchase tangible personal
property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and
records to substantiate the use and consumption of all such
tangible personal property outside of the State of
Illinois.
(39) Beginning January 1, 2008, tangible personal
property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into
or upon an aircraft as part of the modification,
refurbishment, completion, replacement, repair, or
maintenance of the aircraft. This exemption includes
consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft, but excludes any materials,
parts, equipment, components, and consumable supplies used
in the modification, replacement, repair, and maintenance
of aircraft engines or power plants, whether such engines
or power plants are installed or uninstalled upon any such
aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and
protective films. This exemption applies only to the sale
of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The exemption
does not include aircraft operated by a commercial air
carrier providing scheduled passenger air service pursuant
to authority issued under Part 121 or Part 129 of the
Federal Aviation Regulations. The changes made to this
paragraph (40) by Public Act 98-534 are declarative of
existing law.
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any further
consideration by or on behalf of the municipality at the
time of the completion of the municipal convention hall or
upon the retirement or redemption of any bonds or other
debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017, menstrual pads,
tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must
certify that the item is purchased to be rented subject to
a rental purchase agreement, as defined in the Rental
Purchase Agreement Act, and provide proof of registration
under the Rental Purchase Agreement Occupation and Use Tax
Act. This paragraph is exempt from the provisions of
Section 2-70.
(44) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or
subcontractor of the owner, operator, or tenant. Data
centers that would have qualified for a certificate of
exemption prior to January 1, 2020 had this amendatory Act
of the 101st General Assembly been in effect, may apply for
and obtain an exemption for subsequent purchases of
computer equipment or enabling software purchased or
leased to upgrade, supplement, or replace computer
equipment or enabling software purchased or leased in the
original investment that would have qualified.
The Department of Commerce and Economic Opportunity
shall grant a certificate of exemption under this item (44)
to qualified data centers as defined by Section 605-1025 of
the Department of Commerce and Economic Opportunity Law of
the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house
working servers in one physical location or multiple
sites within the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks;
cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or
systems; software; mechanical, electrical, or plumbing
systems; battery systems; cooling systems and towers;
temperature control systems; other cabling; and other
data center infrastructure equipment and systems
necessary to operate qualified tangible personal
property, including fixtures; and component parts of
any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible personal property to generate,
transform, transmit, distribute, or manage electricity
necessary to operate qualified tangible personal
property; and all other tangible personal property
that is essential to the operations of a computer data
center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of Section
2-70.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
1-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
100-1171, eff. 1-4-19; revised 1-8-19.)
(35 ILCS 120/2-12)
Sec. 2-12. Location where retailer is deemed to be engaged
in the business of selling. The purpose of this Section is to
specify where a retailer is deemed to be engaged in the
business of selling tangible personal property for the purposes
of this Act, the Use Tax Act, the Service Use Tax Act, and the
Service Occupation Tax Act, and for the purpose of collecting
any other local retailers' occupation tax administered by the
Department. This Section applies only with respect to the
particular selling activities described in the following
paragraphs. The provisions of this Section are not intended to,
and shall not be interpreted to, affect where a retailer is
deemed to be engaged in the business of selling with respect to
any activity that is not specifically described in the
following paragraphs.
(1) If a purchaser who is present at the retailer's
place of business, having no prior commitment to the
retailer, agrees to purchase and makes payment for tangible
personal property at the retailer's place of business, then
the transaction shall be deemed an over-the-counter sale
occurring at the retailer's same place of business where
the purchaser was present and made payment for that
tangible personal property if the retailer regularly
stocks the purchased tangible personal property or similar
tangible personal property in the quantity, or similar
quantity, for sale at the retailer's same place of business
and then either (i) the purchaser takes possession of the
tangible personal property at the same place of business or
(ii) the retailer delivers or arranges for the tangible
personal property to be delivered to the purchaser.
(2) If a purchaser, having no prior commitment to the
retailer, agrees to purchase tangible personal property
and makes payment over the phone, in writing, or via the
Internet and takes possession of the tangible personal
property at the retailer's place of business, then the sale
shall be deemed to have occurred at the retailer's place of
business where the purchaser takes possession of the
property if the retailer regularly stocks the item or
similar items in the quantity, or similar quantities,
purchased by the purchaser.
(3) A retailer is deemed to be engaged in the business
of selling food, beverages, or other tangible personal
property through a vending machine at the location where
the vending machine is located at the time the sale is made
if (i) the vending machine is a device operated by coin,
currency, credit card, token, coupon or similar device; (2)
the food, beverage or other tangible personal property is
contained within the vending machine and dispensed from the
vending machine; and (3) the purchaser takes possession of
the purchased food, beverage or other tangible personal
property immediately.
(4) Minerals. A producer of coal or other mineral mined
in Illinois is deemed to be engaged in the business of
selling at the place where the coal or other mineral mined
in Illinois is extracted from the earth. With respect to
minerals (i) the term "extracted from the earth" means the
location at which the coal or other mineral is extracted
from the mouth of the mine, and (ii) a "mineral" includes
not only coal, but also oil, sand, stone taken from a
quarry, gravel and any other thing commonly regarded as a
mineral and extracted from the earth. This paragraph does
not apply to coal or another mineral when it is delivered
or shipped by the seller to the purchaser at a point
outside Illinois so that the sale is exempt under the
United States Constitution as a sale in interstate or
foreign commerce.
(5) A retailer selling tangible personal property to a
nominal lessee or bailee pursuant to a lease with a dollar
or other nominal option to purchase is engaged in the
business of selling at the location where the property is
first delivered to the lessee or bailee for its intended
use.
(6) Beginning on July 1, 2020, for the purposes of
determining the correct local retailers' occupation tax
rate, retail sales made by a remote retailer that meet or
exceed the thresholds established in paragraph (1) or (2)
of subsection (b) of Section 2 of this Act shall be deemed
to be made at the Illinois location to which the tangible
personal property is shipped or delivered or at which
possession is taken by the purchaser.
(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. It is unlawful for any person to engage in the
business of selling tangible personal property at retail in
this State without a certificate of registration from the
Department. Application for a certificate of registration
shall be made to the Department upon forms furnished by it.
Each such application shall be signed and verified and shall
state: (1) the name and social security number of the
applicant; (2) the address of his principal place of business;
(3) the address of the principal place of business from which
he engages in the business of selling tangible personal
property at retail in this State and the addresses of all other
places of business, if any (enumerating such addresses, if any,
in a separate list attached to and made a part of the
application), from which he engages in the business of selling
tangible personal property at retail in this State; (4) the
name and address of the person or persons who will be
responsible for filing returns and payment of taxes due under
this Act; (5) in the case of a publicly traded corporation, the
name and title of the Chief Financial Officer, Chief Operating
Officer, and any other officer or employee with responsibility
for preparing tax returns under this Act, and, in the case of
all other corporations, the name, title, and social security
number of each corporate officer; (6) in the case of a limited
liability company, the name, social security number, and FEIN
number of each manager and member; and (7) such other
information as the Department may reasonably require. The
application shall contain an acceptance of responsibility
signed by the person or persons who will be responsible for
filing returns and payment of the taxes due under this Act. If
the applicant will sell tangible personal property at retail
through vending machines, his application to register shall
indicate the number of vending machines to be so operated. If
requested by the Department at any time, that person shall
verify the total number of vending machines he or she uses in
his or her business of selling tangible personal property at
retail.
The Department shall provide by rule for an expedited
business registration process for remote retailers required to
register and file under subsection (b) of Section 2 who use a
certified service provider to file their returns under this
Act. Such expedited registration process shall allow the
Department to register a taxpayer based upon the same
registration information required by the Streamlined Sales Tax
Governing Board for states participating in the Streamlined
Sales Tax Project.
The Department may deny a certificate of registration to
any applicant if a person who is named as the owner, a partner,
a manager or member of a limited liability company, or a
corporate officer of the applicant on the application for the
certificate of registration is or has been named as the owner,
a partner, a manager or member of a limited liability company,
or a corporate officer on the application for the certificate
of registration of another retailer that is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department. For purposes of this paragraph
only, in determining whether a person is in default for moneys
due, the Department shall include only amounts established as a
final liability within the 20 years prior to the date of the
Department's notice of denial of a certificate of registration.
The Department may require an applicant for a certificate
of registration hereunder to, at the time of filing such
application, furnish a bond from a surety company authorized to
do business in the State of Illinois, or an irrevocable bank
letter of credit or a bond signed by 2 personal sureties who
have filed, with the Department, sworn statements disclosing
net assets equal to at least 3 times the amount of the bond to
be required of such applicant, or a bond secured by an
assignment of a bank account or certificate of deposit, stocks
or bonds, conditioned upon the applicant paying to the State of
Illinois all moneys becoming due under this Act and under any
other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the
applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and
whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the amount
of the bond or other security, taking into consideration the
amount of money expected to become due from the applicant under
this Act and under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the applicant under this Act
will permit the applicant to engage in business without
registering separately under such other law, ordinance, or
resolution. The amount of security required by the Department
shall be such as, in its opinion, will protect the State of
Illinois against failure to pay the amount which may become due
from the applicant under this Act and under any other State tax
law or municipal or county tax ordinance or resolution under
which the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage in
business without registering separately under such other law,
ordinance or resolution, but the amount of the security
required by the Department shall not exceed three times the
amount of the applicant's average monthly tax liability, or
$50,000.00, whichever amount is lower.
No certificate of registration under this Act shall be
issued by the Department until the applicant provides the
Department with satisfactory security, if required, as herein
provided for.
Upon receipt of the application for certificate of
registration in proper form, and upon approval by the
Department of the security furnished by the applicant, if
required, the Department shall issue to such applicant a
certificate of registration which shall permit the person to
whom it is issued to engage in the business of selling tangible
personal property at retail in this State. The certificate of
registration shall be conspicuously displayed at the place of
business which the person so registered states in his
application to be the principal place of business from which he
engages in the business of selling tangible personal property
at retail in this State.
No certificate of registration issued prior to July 1, 2017
to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration issued
on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after
July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after July
1, 2017, a certificate of registration shall automatically be
renewed, subject to revocation as provided by this Act, for an
additional one year from the date of its expiration unless
otherwise notified by the Department as provided by this
paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois
for delinquent returns or for moneys due under this Act or any
other State tax law or municipal or county ordinance
administered or enforced by the Department, the Department
shall, not less than 60 days before the expiration date of such
certificate of registration, give notice to the taxpayer to
whom the certificate was issued of the account period of the
delinquent returns, the amount of tax, penalty and interest due
and owing from the taxpayer, and that the certificate of
registration shall not be automatically renewed upon its
expiration date unless the taxpayer, on or before the date of
expiration, has filed and paid the delinquent returns or paid
the defaulted amount in full. A taxpayer to whom such a notice
is issued shall be deemed an applicant for renewal. The
Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis
but desire and qualify to change to a quarterly or yearly
filing basis and will no longer be subject to renewal under
this Section, and for taxpayers who file returns on a yearly or
quarterly basis but who desire or are required to change to a
monthly filing basis and will be subject to renewal under this
Section.
The Department may in its discretion approve renewal by an
applicant who is in default if, at the time of application for
renewal, the applicant files all of the delinquent returns or
pays to the Department such percentage of the defaulted amount
as may be determined by the Department and agrees in writing to
waive all limitations upon the Department for collection of the
remaining defaulted amount to the Department over a period not
to exceed 5 years from the date of renewal of the certificate;
however, no renewal application submitted by an applicant who
is in default shall be approved if the immediately preceding
renewal by the applicant was conditioned upon the installment
payment agreement described in this Section. The payment
agreement herein provided for shall be in addition to and not
in lieu of the security that may be required by this Section of
a taxpayer who is no longer considered a prior continuous
compliance taxpayer. The execution of the payment agreement as
provided in this Act shall not toll the accrual of interest at
the statutory rate.
The Department may suspend a certificate of registration if
the Department finds that the person to whom the certificate of
registration has been issued knowingly sold contraband
cigarettes.
A certificate of registration issued under this Act more
than 5 years before January 1, 1990 (the effective date of
Public Act 86-383) shall expire and be subject to the renewal
provisions of this Section on the next anniversary of the date
of issuance of such certificate which occurs more than 6 months
after January 1, 1990 (the effective date of Public Act
86-383). A certificate of registration issued less than 5 years
before January 1, 1990 (the effective date of Public Act
86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State, the
Department shall furnish him with a sub-certificate of
registration for each such place of business, and the applicant
shall display the appropriate sub-certificate of registration
at each such place of business. All sub-certificates of
registration shall bear the same registration number as that
appearing upon the certificate of registration to which such
sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of
registration to a conspicuous part of such vending machine. If
a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of vending
machines he or she uses in his or her business of selling
tangible personal property at retail, he or she shall notify
the Department, on a form prescribed by the Department, to
request an additional sub-certificate or additional
sub-certificates of registration, as applicable. With each
such request, the applicant shall report the number of
sub-certificates of registration he or she is requesting as
well as the total number of vending machines from which he or
she makes retail sales.
Where the same person engages in 2 or more businesses of
selling tangible personal property at retail in this State,
which businesses are substantially different in character or
engaged in under different trade names or engaged in under
other substantially dissimilar circumstances (so that it is
more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered),
the Department may require or permit such person (subject to
the same requirements concerning the furnishing of security as
those that are provided for hereinbefore in this Section as to
each application for a certificate of registration) to apply
for and obtain a separate certificate of registration for each
such business or for any of such businesses, under a single
certificate of registration supplemented by related
sub-certificates of registration.
Any person who is registered under the Retailers'
Occupation Tax Act as of March 8, 1963, and who, during the
3-year period immediately prior to March 8, 1963, or during a
continuous 3-year period part of which passed immediately
before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is
determined by the Department not to have been either delinquent
or deficient in the payment of tax liability during that period
under this Act or under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, shall be considered to be a Prior Continuous
Compliance taxpayer. Also any taxpayer who has, as verified by
the Department, faithfully and continuously complied with the
condition of his bond or other security under the provisions of
this Act for a period of 3 consecutive years shall be
considered to be a Prior Continuous Compliance taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt
from all requirements under this Act concerning the furnishing
of a bond or other security as a condition precedent to his
being authorized to engage in the business of selling tangible
personal property at retail in this State. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing of
any returns, or is determined by the Department (either through
the Department's issuance of a final assessment which has
become final under the Act, or by the taxpayer's filing of a
return which admits tax that is not paid to be due) to be
delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject to
all the financial responsibility requirements of this Act and,
as a condition of being allowed to continue to engage in the
business of selling tangible personal property at retail, may
be required to post bond or other acceptable security with the
Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which the
certificate of registration that is issued to the applicant
under this Act will permit the applicant to engage in business
without registering separately under such other law, ordinance
or resolution.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
With respect to security other than bonds (upon which the
Department may sue in the event of a forfeiture), if the
taxpayer fails to pay, when due, any amount whose payment such
security guarantees, the Department shall, after such
liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has
become final under the law, convert the security which that
taxpayer has furnished into money for the State, after first
giving the taxpayer at least 10 days' written notice, by
registered or certified mail, to pay the liability or forfeit
such security to the Department. If the security consists of
stocks or bonds or other securities which are listed on a
public exchange, the Department shall sell such securities
through such public exchange. If the security consists of an
irrevocable bank letter of credit, the Department shall convert
the security in the manner provided for in the Uniform
Commercial Code. If the security consists of a bank certificate
of deposit, the Department shall convert the security into
money by demanding and collecting the amount of such bank
certificate of deposit from the bank which issued such
certificate. If the security consists of a type of stocks or
other securities which are not listed on a public exchange, the
Department shall sell such security to the highest and best
bidder after giving at least 10 days' notice of the date, time
and place of the intended sale by publication in the "State
Official Newspaper". If the Department realizes more than the
amount of such liability from the security, plus the expenses
incurred by the Department in converting the security into
money, the Department shall pay such excess to the taxpayer who
furnished such security, and the balance shall be paid into the
State Treasury.
The Department shall discharge any surety and shall release
and return any security deposited, assigned, pledged or
otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such taxpayer becomes a Prior Continuous
Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax
liability, as determined by the Department, under this Act
and under every other State tax law or municipal or county
tax ordinance or resolution under which the certificate of
registration issued under this Act permits the registrant
to engage in business without registering separately under
such other law, ordinance or resolution. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible
after his final tax return has been filed; if the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its reasons
therefor.
(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
100-863, eff. 8-14-18.)
Section 15-50. The Cigarette Tax Act is amended by changing
Section 2 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) Beginning on July 1, 2019, in place of the aggregate
tax rate of 99 mills previously imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 149 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. A tax is imposed upon any person engaged in business as
(b) The payment of such taxes shall be evidenced by a stamp
affixed to each original package of cigarettes, or an
authorized substitute for such stamp imprinted on each original
package of such cigarettes underneath the sealed transparent
outside wrapper of such original package, as hereinafter
provided. However, such taxes are not imposed upon any activity
in such business in interstate commerce or otherwise, which
activity may not under the Constitution and statutes of the
United States be made the subject of taxation by this State.
Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, and other than the
moneys from the additional taxes imposed by this amendatory Act
of the 101st General Assembly that must be paid each month
under subsection (c), shall be distributed each month as
follows: first, there shall be paid into the General Revenue
Fund an amount that, when added to the amount paid into the
Common School Fund for that month, equals $29,200,000; then,
from the moneys remaining, if any amounts required to be paid
into the General Revenue Fund in previous months remain unpaid,
those amounts shall be paid into the General Revenue Fund; then
from the moneys remaining, $5,000,000 per month shall be paid
into the School Infrastructure Fund; then, if any amounts
required to be paid into the School Infrastructure Fund in
previous months remain unpaid, those amounts shall be paid into
the School Infrastructure Fund; then the moneys remaining, if
any, shall be paid into the Long-Term Care Provider Fund.
(c) Beginning on July 1, 2019, all of the moneys from the
additional taxes imposed by this amendatory Act of the 101st
General Assembly received by the Department of Revenue pursuant
to this Act and the Cigarette Use Tax Act shall be distributed
each month into the Capital Projects Fund.
(d) Moneys collected from the tax imposed on little cigars
under Section 10-10 of the Tobacco Products Tax Act of 1995
shall be included with the moneys collected under the Cigarette
Tax Act and the Cigarette Use Tax Act when making distributions
to the Common School Fund, the Healthcare Provider Relief Fund,
the General Revenue Fund, the School Infrastructure Fund, and
the Long-Term Care Provider Fund under this Section.
(e) If the When any tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases
from the Department by such distributor.
(f) The impact of the tax levied by this Act is imposed
upon the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
(g) Each distributor shall collect the tax from the
retailer at or before the time of the sale, shall affix the
stamps as hereinafter required, and shall remit the tax
collected from retailers to the Department, as hereinafter
provided. Any distributor who fails to properly collect and pay
the tax imposed by this Act shall be liable for the tax. Any
(h) Any distributor having cigarettes in his or her
possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in
subsection (l), is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2019 or on the
first due date of a return under this Act occurring on or after
July 1, 2019, whichever occurs first. Those distributors may
elect to pay the additional tax on packages of cigarettes to
which stamps have been affixed and on any stamps in the
distributor's possession that have not been affixed to packages
of cigarettes in their possession on July 1, 2019 over a period
not to exceed 12 months from the due date of the additional tax
by notifying the Department in writing. The first payment for
distributors making such election is due when the distributor
first makes a purchase of cigarette tax stamps on or after July
1, 2019 or on the first due date of a return under this Act
occurring on or after July 1, 2019, whichever occurs first.
Distributors making such an election are not entitled to take
the discount provided in subsection (l) on such payments.
(i) Any retailer having cigarettes in its his or her
possession on July 1, 2019 June 24, 2012 to which tax stamps
have been affixed is not required to pay the additional tax
that begins on July 1, 2019 June 24, 2012 imposed by this
amendatory Act of the 101st General Assembly this amendatory
(j) Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
(k) The amount of the Cigarette Tax imposed by this Act
shall be separately stated, apart from the price of the goods,
by distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
(l) (b) The distributor shall be required to collect the
tax taxes provided under paragraph (a) hereof, and, to cover
the costs of such collection, shall be allowed a discount
during any year commencing July 1st and ending the following
June 30th in accordance with the schedule set out hereinbelow,
which discount shall be allowed at the time of purchase of the
stamps when purchase is required by this Act, or at the time
when the tax is remitted to the Department without the purchase
of stamps from the Department when that method of paying the
tax is required or authorized by this Act. Prior to December 1,
On and after December 1, 1985, a discount equal to 1.75% of
the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
(m) (c) The taxes herein imposed are in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, or by any political subdivision thereof, or by any
municipal corporation.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 130/29 rep.)
Section 15-55. The Cigarette Tax Act is amended by
repealing Section 29.
Section 15-60. The Cigarette Use Tax Act is amended by
changing Sections 2 and 35 as follows:
(35 ILCS 135/2) (from Ch. 120, par. 453.32)
Sec. 2. Beginning on July 1, 2019, in place of the
aggregate tax rate of 99 mills previously imposed by this Act,
a tax is imposed upon the privilege of using cigarettes in this
State at the rate of 149 mills per cigarette so used. A tax is
herein imposed shall be in addition to all other occupation or
privilege taxes imposed by the State of Illinois or by any
political subdivision thereof or by any municipal corporation.
If the When any tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases
from the Department by such distributors.
When the word "tax" is used in this Act, it shall include
any tax or tax rate imposed by this Act and shall mean the
singular of "tax" or the plural "taxes" as the context may
require.
Any retailer having cigarettes in its possession on July 1,
2019 to which tax stamps have been affixed is not required to
pay the additional tax that begins on July 1, 2019 imposed by
this amendatory Act of the 101st General Assembly on those
stamped cigarettes. Any distributor having cigarettes in his or
her possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in Section
3, is due when the distributor first makes a purchase of
cigarette stamps on or after July 1, 2019 or on the first due
date of a return under this Act occurring on or after July 1,
2019, whichever occurs first. Those distributors may elect to
pay the additional tax on packages of cigarettes to which
stamps have been affixed and on any stamps in the distributor's
possession that have not been affixed to packages of cigarettes
in their possession on July 1, 2019 over a period not to exceed
12 months from the due date of the additional tax by notifying
the Department in writing. The first payment for distributors
making such election is due when the distributor first makes a
purchase of cigarette tax stamps on or after July 1, 2019 or on
the first due date of a return under this Act occurring on or
after July 1, 2019, whichever occurs first. Distributors making
such an election are not entitled to take the discount provided
in Section 3 on such payments.
(Source: P.A. 97-688, eff. 6-14-12.)
(35 ILCS 135/35) (from Ch. 120, par. 453.65)
Sec. 35. Distribution of receipts. All moneys received by
the Department under this Act shall be distributed as provided
in subsection (a) of Section 2 of the Cigarette Tax Act.
(Source: P.A. 88-535.)
Section 15-65. The Tobacco Products Tax Act of 1995 is
amended by changing Sections 10-5 and 10-10 as follows:
(35 ILCS 143/10-5)
Sec. 10-5. Definitions. For purposes of this Act:
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the
purpose of selling tobacco products.
"Cigarette" has the meaning ascribed to the term in Section
1 of the Cigarette Tax Act.
"Contraband little cigar" means:
(1) packages of little cigars containing 20 or 25
little cigars that do not bear a required tax stamp under
this Act;
(2) packages of little cigars containing 20 or 25
little cigars that bear a fraudulent, imitation, or
counterfeit tax stamp;
(3) packages of little cigars containing 20 or 25
little cigars that are improperly tax stamped, including
packages of little cigars that bear only a tax stamp of
another state or taxing jurisdiction; or
(4) packages of little cigars containing other than 20
or 25 little cigars in the possession of a distributor,
retailer or wholesaler, unless the distributor, retailer,
or wholesaler possesses, or produces within the time frame
provided in Section 10-27 or 10-28 of this Act, an invoice
from a stamping distributor, distributor, or wholesaler
showing that the tax on the packages has been or will be
paid.
"Correctional Industries program" means a program run by a
State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.
(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily.
(3) Any retailer who receives tobacco products on which
the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever
resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State operated mental health facility.
"Electronic cigarette" means:
(1) any device that employs a battery or other
mechanism to heat a solution or substance to produce a
vapor or aerosol intended for inhalation;
(2) any cartridge or container of a solution or
substance intended to be used with or in the device or to
refill the device; or
(3) any solution or substance, whether or not it
contains nicotine, intended for use in the device.
"Electronic cigarette" includes, but is not limited to, any
electronic nicotine delivery system, electronic cigar,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, or similar product or device, and any component or part
that can be used to build the product or device. "Electronic
cigarette" does not include: cigarettes, as defined in Section
1 of the Cigarette Tax Act; any product approved by the United
States Food and Drug Administration for sale as a tobacco
cessation product, a tobacco dependence product, or for other
medical purposes that is marketed and sold solely for that
approved purpose; any asthma inhaler prescribed by a physician
for that condition that is marketed and sold solely for that
approved purpose; or any therapeutic product approved for use
under the Compassionate Use of Medical Cannabis Pilot Program
Act.
"Little cigar" means and includes any roll, made wholly or
in part of tobacco, where such roll has an integrated cellulose
acetate filter and weighs less than 4 pounds per thousand and
the wrapper or cover of which is made in whole or in part of
tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a
person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State operated mental health facility.
Beginning on January 1, 2013, "moist snuff" means any
finely cut, ground, or powdered tobacco that is not intended to
be smoked, but shall not include any finely cut, ground, or
powdered tobacco that is intended to be placed in the nasal
cavity.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Stamp" or "stamps" mean the indicia required to be affixed
on a package of little cigars that evidence payment of the tax
on packages of little cigars containing 20 or 25 little cigars
under Section 10-10 of this Act. These stamps shall be the same
stamps used for cigarettes under the Cigarette Tax Act.
"Stamping distributor" means a distributor licensed under
this Act and also licensed as a distributor under the Cigarette
Tax Act or Cigarette Use Tax Act.
"Tobacco products" means any cigars, including little
cigars; cheroots; stogies; periques; granulated, plug cut,
crimp cut, ready rubbed, and other smoking tobacco; snuff
(including moist snuff) or snuff flour; cavendish; plug and
twist tobacco; fine-cut and other chewing tobaccos; shorts;
refuse scraps, clippings, cuttings, and sweeping of tobacco;
and other kinds and forms of tobacco, prepared in such manner
as to be suitable for chewing or smoking in a pipe or
otherwise, or both for chewing and smoking; but does not
include cigarettes as defined in Section 1 of the Cigarette Tax
Act or tobacco purchased for the manufacture of cigarettes by
cigarette distributors and manufacturers defined in the
Cigarette Tax Act and persons who make, manufacture, or
fabricate cigarettes as a part of a Correctional Industries
program for sale to residents incarcerated in penal
institutions or resident patients of a State operated mental
health facility.
Beginning on July 1, 2019, "tobacco products" also includes
electronic cigarettes.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the
manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or
located, engaged in the business of selling tobacco products to
others for the purpose of resale. "Wholesaler", when used in
this Act, does not include a person licensed as a distributor
under Section 10-20 of this Act unless expressly stated in this
Act.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;
98-1055, eff. 1-1-16.)
(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed.
(a) Except as otherwise provided in this Section with
respect to little cigars, on the first day of the third month
after the month in which this Act becomes law, a tax is imposed
on any person engaged in business as a distributor of tobacco
products, as defined in Section 10-5, at the rate of (i) 18% of
the wholesale price of tobacco products sold or otherwise
disposed of to retailers or consumers located in this State
prior to July 1, 2012 and (ii) 36% of the wholesale price of
tobacco products sold or otherwise disposed of to retailers or
consumers located in this State beginning on July 1, 2012;
except that, beginning on January 1, 2013, the tax on moist
snuff shall be imposed at a rate of $0.30 per ounce, and a
proportionate tax at the like rate on all fractional parts of
an ounce, sold or otherwise disposed of to retailers or
consumers located in this State; and except that, beginning
July 1, 2019, the tax on electronic cigarettes shall be imposed
at the rate of 15% of the wholesale price of electronic
cigarettes sold or otherwise disposed of to retailers or
consumers located in this State. The tax is in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, by any political subdivision thereof, or by any
municipal corporation. However, the tax is not imposed upon any
activity in that business in interstate commerce or otherwise,
to the extent to which that activity may not, under the
Constitution and Statutes of the United States, be made the
subject of taxation by this State, and except that, beginning
July 1, 2013, the tax on little cigars shall be imposed at the
same rate, and the proceeds shall be distributed in the same
manner, as the tax imposed on cigarettes under the Cigarette
Tax Act. The tax is also not imposed on sales made to the
United States or any entity thereof.
(b) Notwithstanding subsection (a) of this Section,
stamping distributors of packages of little cigars containing
20 or 25 little cigars sold or otherwise disposed of in this
State shall remit the tax by purchasing tax stamps from the
Department and affixing them to packages of little cigars in
the same manner as stamps are purchased and affixed to
cigarettes under the Cigarette Tax Act, unless the stamping
distributor sells or otherwise disposes of those packages of
little cigars to another stamping distributor. Only persons
meeting the definition of "stamping distributor" contained in
Section 10-5 of this Act may affix stamps to packages of little
cigars containing 20 or 25 little cigars. Stamping distributors
may not sell or dispose of little cigars at retail to consumers
or users at locations where stamping distributors affix stamps
to packages of little cigars containing 20 or 25 little cigars.
(c) The impact of the tax levied by this Act is imposed
upon distributors engaged in the business of selling tobacco
products to retailers or consumers in this State. Whenever a
stamping distributor brings or causes to be brought into this
State from without this State, or purchases from without or
within this State, any packages of little cigars containing 20
or 25 little cigars upon which there are no tax stamps affixed
as required by this Act, for purposes of resale or disposal in
this State to a person not a stamping distributor, then such
stamping distributor shall pay the tax to the Department and
add the amount of the tax to the price of such packages sold by
such stamping distributor. Payment of the tax shall be
evidenced by a stamp or stamps affixed to each package of
little cigars containing 20 or 25 little cigars.
Stamping distributors paying the tax to the Department on
packages of little cigars containing 20 or 25 little cigars
sold to other distributors, wholesalers or retailers shall add
the amount of the tax to the price of the packages of little
cigars containing 20 or 25 little cigars sold by such stamping
distributors.
(d) Beginning on January 1, 2013, the tax rate imposed per
ounce of moist snuff may not exceed 15% of the tax imposed upon
a package of 20 cigarettes pursuant to the Cigarette Tax Act.
(e) All moneys received by the Department under this Act
from sales occurring prior to July 1, 2012 shall be paid into
the Long-Term Care Provider Fund of the State Treasury. Of the
moneys received by the Department from sales occurring on or
after July 1, 2012, except for moneys received from the tax
imposed on the sale of little cigars, 50% shall be paid into
the Long-Term Care Provider Fund and 50% shall be paid into the
Healthcare Provider Relief Fund. Beginning July 1, 2013, all
moneys received by the Department under this Act from the tax
imposed on little cigars shall be distributed as provided in
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
Section 15-75. The Motor Vehicle Retail Installment Sales
Act is amended by changing Section 11.1 as follows:
(815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
Sec. 11.1.
(a) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2008 until January 1,
2020, of $150, which shall be subject to an annual rate
adjustment equal to the percentage of change in the Bureau of
Labor Statistics Consumer Price Index. Every retail
installment contract under this Act shall contain or be
accompanied by a notice containing the following information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE
CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(b) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2020, of $300, which shall
be subject to an annual rate adjustment equal to the percentage
of change in the Bureau of Labor Statistics Consumer Price
Index. Every retail installment contract under this Act shall
contain or be accompanied by a notice containing the following
information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(Source: P.A. 95-280, eff. 1-1-08.)
→ This is another nongambling provision, which appears to provide apprenticeship programs and other job-training opportunities related to the the capital program, Rebuild Illinois.
Section 20-1. Short title. This Article may be cited as the
Illinois Works Jobs Program Act. References in this Article to
"this Act" mean this Article.
Section 20-5. Findings. It is in the public policy interest
of the State to ensure that all Illinois residents have access
to State capital projects and careers in the construction
industry and building trades, including those who have been
historically underrepresented in those trades. To ensure that
those interests are met, the General Assembly hereby creates
the Illinois Works Preapprenticeship Program and the Illinois
Works Apprenticeship Initiative.
Section 20-10. Definitions.
"Apprentice" means a participant in an apprenticeship
program approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.
"Apprenticeship program" means an apprenticeship and
training program approved by and registered with the United
States Department of Labor's Bureau of Apprenticeship and
Training.
"Bid credit" means a virtual dollar for a contractor or
subcontractor to use toward future bids for public works
contracts.
"Community-based organization" means a nonprofit
organization selected by the Department to participate in the
Illinois Works Preapprenticeship Program. To qualify as a
"community-based organization", the organization must
demonstrate the following:
(1) the ability to effectively serve diverse and
underrepresented populations, including by providing
employment services to such populations;
(2) knowledge of the construction and building trades;
(3) the ability to recruit, prescreen, and provide
preapprenticeship training to prepare workers for
employment in the construction and building trades; and
(4) a plan to provide the following:
(A) preparatory classes;
(B) workplace readiness skills, such as resume
preparation and interviewing techniques;
(C) strategies for overcoming barriers to entry
and completion of an apprenticeship program; and
(D) any prerequisites for acceptance into an
apprenticeship program.
"Contractor" means a person, corporation, partnership,
limited liability company, or joint venture entering into a
contract with the State or any State agency to construct a
public work.
"Department" means the Department of Commerce and Economic
Opportunity.
"Labor hours" means the total hours for workers who are
receiving an hourly wage and who are directly employed for the
public works project. "Labor hours" includes hours performed by
workers employed by the contractor and subcontractors on the
public works project. "Labor hours" does not include hours
worked by the forepersons, superintendents, owners, and
workers who are not subject to prevailing wage requirements.
"Minorities" means minority persons as defined in the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Public works" means all projects that constitute public
works under the Prevailing Wage Act.
"Subcontractor" means a person, corporation, partnership,
limited liability company, or joint venture that has contracted
with the contractor to perform all or part of the work to
construct a public work by a contractor.
"Underrepresented populations" means populations
identified by the Department that historically have had
barriers to entry or advancement in the workforce.
"Underrepresented populations" includes, but is not limited
to, minorities, women, and veterans.
Section 20-15. Illinois Works Preapprenticeship Program;
Illinois Works Bid Credit Program.
(a) The Illinois Works Preapprenticeship Program is
established and shall be administered by the Department. The
goal of the Illinois Works Preapprenticeship Program is to
create a network of community-based organizations throughout
the State that will recruit, prescreen, and provide
preapprenticeship skills training to create a qualified,
diverse pipeline of workers who are prepared for careers in the
construction and building trades. Upon completion of the
Illinois Works Preapprenticeship Program, the candidates will
be skilled and work-ready.
(b) There is created the Illinois Works Fund, a special
fund in the State treasury. The Illinois Works Fund shall be
administered by the Department. The Illinois Works Fund shall
be used to provide funding for community-based organizations
throughout the State. In addition to any other transfers that
may be provided for by law, on and after July 1, 2019 and until
June 30, 2020, at the direction of the Director of the
Governor's Office of Management and Budget, the State
Comptroller shall direct and the State Treasurer shall transfer
amounts not exceeding a total of $25,000,000 from the Rebuild
Illinois Projects Fund to the Illinois Works Fund.
(c) Each community-based organization that receives
funding from the Illinois Works Fund shall provide an annual
report to the Illinois Works Review Panel by April 1 of each
calendar year. The annual report shall include the following
information:
(1) a description of the community-based
organization's recruitment, screening, and training
efforts;
(2) the number of individuals who apply to, participate
in, and complete the community-based organization's
program, broken down by race, gender, age, and veteran
status; and
(3) the number of the individuals referenced in item
(2) of this subsection who are initially accepted and
placed into apprenticeship programs in the construction
and building trades.
(d) The Department shall create and administer the Illinois
Works Bid Credit Program that shall provide economic
incentives, through bid credits, to encourage contractors and
subcontractors to provide contracting and employment
opportunities to historically underrepresented populations in
the construction industry.
The Illinois Works Bid Credit Program shall allow
contractors and subcontractors to earn bid credits for use
toward future bids for public works projects in order to
increase the chances that the contractor and the subcontractors
will be selected.
Contractors or subcontractors may be eligible for bid
credits for employing apprentices who have completed the
Illinois Works Preapprenticeship Program. Contractors or
subcontractors shall earn bid credits at a rate established by
the Department and published on the Department's website,
including any appropriate caps.
The Illinois Works Credit Bank is hereby created and shall
be administered by the Department. The Illinois Works Credit
Bank shall track the bid credits.
A contractor or subcontractor who has been awarded bid
credits under any other State program for employing apprentices
who have completed the Illinois Works Preapprenticeship
Program is not eligible to receive bid credits under the
Illinois Works Bid Credit Program relating to the same
contract.
The Department shall report to the Illinois Works Review
Panel the following: (i) the number of bid credits awarded by
the Department; (ii) the number of bid credits submitted by the
contractor or subcontractor to the agency administering the
public works contract; and (iii) the number of bid credits
accepted by the agency for such contract. Any agency that
awards bid credits pursuant to the Illinois Works Credit Bank
Program shall report to the Department the number of bid
credits it accepted for the public works contract.
Upon a finding that a contractor or subcontractor has
reported falsified records to the Department in order to
fraudulently obtain bid credits, the Department shall
permanently bar the contractor or subcontractor from
participating in the Illinois Works Bid Credit Program and may
suspend the contractor or subcontractor from bidding on or
participating in any public works project. False or fraudulent
claims for payment relating to false bid credits may be subject
to damages and penalties under applicable law.
(e) The Department shall adopt any rules deemed necessary
to implement this Section.
Section 20-20. Illinois Works Apprenticeship Initiative.
(a) The Illinois Works Apprenticeship Initiative is
established and shall be administered by the Department.
(1) Subject to the exceptions set forth in subsection
(b) of this Section, apprentices shall be utilized on all
public works projects in accordance with this subsection
(a).
(2) For public works projects, the goal of the Illinois
Works Apprenticeship Initiative is that apprentices will
perform either 10% of the total labor hours actually worked
in each prevailing wage classification or 10% of the
estimated labor hours in each prevailing wage
classification, whichever is less.
(b) Before or during the term of a contract subject to this
Section, the Department may reduce or waive the goals set forth
in paragraph (2) of subsection (a). Prior to the Department
granting a request for a reduction or waiver, the Department
shall hold a public hearing and shall consult with the Business
Enterprise Council under the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act and the
Chief Procurement Officer of the agency administering the
public works contract. The Department may grant a reduction or
waiver upon a determination that:
(1) the contractor or subcontractor has demonstrated
that insufficient apprentices are available;
(2) the reasonable and necessary requirements of the
contract do not allow the goal to be met;
(3) there is a disproportionately high ratio of
material costs to labor hours that makes meeting the goal
infeasible; or
(4) apprentice labor hour goals conflict with existing
requirements, including federal requirements, in
connection with the public work.
(c) Contractors and subcontractors must submit a
certification to the Department and the agency that is
administering the contract demonstrating that the contractor
or subcontractor has either:
(1) met the apprentice labor hour goals set forth in
paragraph (2) of subsection (a); or
(2) received a reduction or waiver pursuant to
subsection (b).
It shall be deemed to be a material breach of the contract
and entitle the State to declare a default, terminate the
contract, and exercise those remedies provided for in the
contract, at law, or in equity if the contractor or
subcontractor fails to submit the certification required in
this subsection or submits false or misleading information.
(d) No later than one year after the effective date of this
Act, and by April 1 of every calendar year thereafter, the
Department of Labor shall submit a report to the Illinois Works
Review Panel regarding the use of apprentices under the
Illinois Works Apprenticeship Initiative for public works
projects. To the extent it is available, the report shall
include the following information:
(1) the total number of labor hours on each project and
the percentage of labor hours actually worked by
apprentices on each public works project;
(2) the number of apprentices used in each public works
project, broken down by trade; and
(3) the number and percentage of minorities, women, and
veterans utilized as apprentices on each public works
project.
(e) The Department shall adopt any rules deemed necessary
to implement the Illinois Works Apprenticeship Initiative.
(f) The Illinois Works Apprenticeship Initiative shall not
interfere with any contracts or program in existence on the
effective date of this Act.
Section 20-25. The Illinois Works Review Panel.
(a) The Illinois Works Review Panel is created and shall be
comprised of 11 members, each serving 3-year terms. The Speaker
of the House of Representatives and the President of the Senate
shall each appoint 2 members. The Minority Leader of the House
of Representatives and the Minority Leader of the Senate shall
each appoint one member. The Director of Commerce and Economic
Opportunity, or his or her designee, shall serve as a member.
The Governor shall appoint the following individuals to serve
as members: a representative from a contractor organization; a
representative from a labor organization; and 2 members of the
public with workforce development expertise, one of whom shall
be a representative of a nonprofit organization that addresses
workforce development.
(b) The members of the Illinois Works Review Panel shall
make recommendations to the Department regarding
identification and evaluation of community-based
organizations.
(c) The Illinois Works Review Panel shall meet, at least
quarterly, to review and evaluate (i) the Illinois Works
Preapprenticeship Program and the Illinois Works
Apprenticeship Initiative, (ii) ideas to diversify the
workforce in the construction industry in Illinois, and (iii)
workforce demographic data collected by the Illinois
Department of Labor.
(d) All State contracts shall include a requirement that
the contractor and subcontractor shall, upon reasonable
notice, appear before and respond to requests for information
from the Illinois Works Review Panel.
(e) By August 1, 2020, and every August 1 thereafter, the
Illinois Works Review Panel shall report to the General
Assembly on its evaluation of the Illinois Works
Preapprenticeship Program and the Illinois Works
Apprenticeship initiative, including any recommended
modifications.
Section 20-900. The State Finance Act is amended by adding
Section 5.895 as follows:
(30 ILCS 105/5.895 new)
Sec. 5.895. The Illinois Works Fund.
Section 20-905. The Illinois Procurement Code is amended by
changing Section 20-10 as follows:
(30 ILCS 500/20-10)
(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
98-1076, 99-906 and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the
winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 calendar days
after the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
Section 1-56, subsections (a) and (c) of Section 1-75 and
subsection (d) of Section 1-78 of the Illinois Power Agency Act
and Section 16-111.5(c) of the Public Utilities Act and to
procure renewable energy resources under Section 1-56 of the
Illinois Power Agency Act. These alternative procedures shall
be set forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
98-1076, 99-906, and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the
winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 days after
the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
subsections (a) and (c) of Section 1-75 and subsection (d) of
Section 1-78 of the Illinois Power Agency Act and Section
16-111.5(c) of the Public Utilities Act and to procure
renewable energy resources under Section 1-56 of the Illinois
Power Agency Act. These alternative procedures shall be set
forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
Section 20-910. The Prevailing Wage Act is amended by
changing Section 5 as follows:
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
(Text of Section before amendment by P.A. 100-1177)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before January
1, 2014 (the effective date of Public Act 98-328) and for a
period of 5 years from the date of the last payment made on
or after January 1, 2014 (the effective date of Public Act
98-328) on a contract or subcontract for public works,
records of all laborers, mechanics, and other workers
employed by them on the project; the records shall include
(i) the worker's name, (ii) the worker's address, (iii) the
worker's telephone number when available, (iv) the
worker's social security number, (v) the worker's
classification or classifications, (vi) the worker's skill
level, such as apprentice or journeyman, (vii) (vi) the
worker's gross and net wages paid in each pay period,
(viii) (vii) the worker's number of hours worked each day,
(ix) (viii) the worker's starting and ending times of work
each day, (x) (ix) the worker's hourly wage rate, (xi) (x)
the worker's hourly overtime wage rate, (xii) (xi) the
worker's hourly fringe benefit rates, (xiii) (xii) the name
and address of each fringe benefit fund, (xiv) (xiii) the
plan sponsor of each fringe benefit, if applicable, and
(xv) (xiv) the plan administrator of each fringe benefit,
if applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project. A
certified payroll must be filed for only those calendar
months during which construction on a public works project
has occurred. The certified payroll shall consist of a
complete copy of the records identified in paragraph (1) of
this subsection (a), but may exclude the starting and
ending times of work each day. The certified payroll shall
be accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that: (i) he or she
has examined the certified payroll records required to be
submitted by the Act and such records are true and
accurate; (ii) the hourly rate paid to each worker is not
less than the general prevailing rate of hourly wages
required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll that
he or she knows to be false is a Class A misdemeanor. A
general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or
subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be filed
and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1, 2014
(the effective date of Public Act 98-328) for a period of 5
years, from the date of the last payment for work on a
contract or subcontract for public works. The records
submitted in accordance with this paragraph (2) of
subsection (a) shall be considered public records, except
an employee's address, telephone number, and social
security number, and made available in accordance with the
Freedom of Information Act. The public body shall accept
any reasonable submissions by the contractor that meet the
requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(ix) (viii) of paragraph (1) of subsection (a) only. However,
the information required under items (x) (ix) through (xv)
any contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
eff. 1-1-14; 98-756, eff. 7-16-14.)
(Text of Section after amendment by P.A. 100-1177)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before January
1, 2014 (the effective date of Public Act 98-328) and for a
period of 5 years from the date of the last payment made on
or after January 1, 2014 (the effective date of Public Act
98-328) on a contract or subcontract for public works,
records of all laborers, mechanics, and other workers
employed by them on the project; the records shall include
(i) the worker's name, (ii) the worker's address, (iii) the
worker's telephone number when available, (iv) the last 4
digits of the worker's social security number, (v) the
worker's gender, (vi) the worker's race, (vii) the worker's
ethnicity, (viii) veteran status, (ix) the worker's
classification or classifications, (x) the worker's skill
level, such as apprentice or journeyman, (xi) (x) the
worker's gross and net wages paid in each pay period, (xii)
day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
the worker's hourly overtime wage rate, (xvi) (xv) the
worker's hourly fringe benefit rates, (xvii) (xvi) the name
and address of each fringe benefit fund, (xviii) (xvii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) (xviii) the plan administrator of each fringe
benefit, if applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until
the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified
electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the
State agency. A certified payroll must be filed for only
those calendar months during which construction on a public
works project has occurred. The certified payroll shall
consist of a complete copy of the records identified in
paragraph (1) of this subsection (a), but may exclude the
starting and ending times of work each day. The certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(i) he or she has examined the certified payroll records
required to be submitted by the Act and such records are
true and accurate; (ii) the hourly rate paid to each worker
is not less than the general prevailing rate of hourly
wages required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll that
he or she knows to be false is a Class A misdemeanor. A
general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or
subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be filed
and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1, 2014
(the effective date of Public Act 98-328) for a period of 5
years, from the date of the last payment for work on a
contract or subcontract for public works or until the
Department of Labor activates the database created under
Section 5.1, whichever is less. After the activation of the
database created under Section 5.1, the Department of Labor
rather than the public body in charge of the project shall
keep the records and maintain the database. The records
submitted in accordance with this paragraph (2) of
subsection (a) shall be considered public records, except
an employee's address, telephone number, social security
number, race, ethnicity, and gender, and made available in
accordance with the Freedom of Information Act. The public
body shall accept any reasonable submissions by the
contractor that meet the requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) (xiv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 100-1177, eff. 6-1-19.)
→ This is a big one. It makes Illinois the first state in the Midwest to legalize sports gambling. The implications of this piece of the legislation are huge. It allows seven sporting venues with capacities of 17,000 or more to offer betting through mobile apps and kiosks. They have rooftop bars at Wrigley, why not rooftop gambling?
This provision would also allow sports betting anywhere within a five-block radius of the stadiums. Instead of making a few bucks selling parking spaces, maybe people will open betting parlors in their basements. Who knows? After 18 months, three licenses will also be issued for online sports gambling. This presumably will allow companies to take bets over the internet, including your phone.
There’s more. The legislation also creates a pilot program, allowing kiosks to be set up across the state to take bets. These could be in convenience stores, gas stations — anywhere lottery tickets are sold. There can be 2,500 locations the first year and another 2,500 after 18 months.
Section 25-1. Short title. This Article may be cited as the
Sports Wagering Act. References in this Article to "this Act"
mean this Article.
Section 25-5. Legislative findings. The General Assembly
recognizes the promotion of public safety is an important
consideration for sports leagues, teams, players, and fans at
large. All persons who present sporting contests are encouraged
to take reasonable measures to ensure the safety and security
of all involved or attending sporting contests. Persons who
present sporting contests are encouraged to establish codes of
conduct that forbid all persons associated with the sporting
contest from engaging in violent behavior and to hire, train,
and equip safety and security personnel to enforce those codes
of conduct. Persons who present sporting contests are further
encouraged to provide public notice of those codes of conduct.
Section 25-10. Definitions. As used in this Act:
"Adjusted gross sports wagering receipts" means a master
sports wagering licensee's gross sports wagering receipts,
less winnings paid to wagerers in such games.
"Athlete" means any current or former professional athlete
or collegiate athlete.
"Board" means the Illinois Gaming Board.
"Covered persons" includes athletes; umpires, referees,
and officials; personnel associated with clubs, teams,
leagues, and athletic associations; medical professionals
(including athletic trainers) who provide services to athletes
and players; and the family members and associates of these
persons where required to serve the purposes of this Act.
"Department" means the Department of the Lottery.
"Gaming facility" means a facility at which gambling
operations are conducted under the Illinois Gambling Act,
pari-mutuel wagering is conducted under the Illinois Horse
Racing Act of 1975, or sports wagering is conducted under this
Act.
"Official league data" means statistics, results,
outcomes, and other data related to a sports event obtained
pursuant to an agreement with the relevant sports governing
body, or an entity expressly authorized by the sports governing
body to provide such information to licensees, that authorizes
the use of such data for determining the outcome of tier 2
sports wagers on such sports events.
"Organization licensee" has the meaning given to that term
in the Illinois Horse Racing Act of 1975.
"Owners licensee" means the holder of an owners license
under the Illinois Gambling Act.
"Person" means an individual, partnership, committee,
association, corporation, or any other organization or group of
persons.
"Personal biometric data" means an athlete's information
derived from DNA, heart rate, blood pressure, perspiration
rate, internal or external body temperature, hormone levels,
glucose levels, hydration levels, vitamin levels, bone
density, muscle density, and sleep patterns.
"Prohibited conduct" includes any statement, action, and
other communication intended to influence, manipulate, or
control a betting outcome of a sporting contest or of any
individual occurrence or performance in a sporting contest in
exchange for financial gain or to avoid financial or physical
harm. "Prohibited conduct" includes statements, actions, and
communications made to a covered person by a third party, such
as a family member or through social media. "Prohibited
conduct" does not include statements, actions, or
communications made or sanctioned by a team or sports governing
body.
"Qualified applicant" means an applicant for a license
under this Act whose application meets the mandatory minimum
qualification criteria as required by the Board.
"Sporting contest" means a sports event or game on which
the State allows sports wagering to occur under this Act.
"Sports event" means a professional sport or athletic
event, a collegiate sport or athletic event, a motor race
event, or any other event or competition of relative skill
authorized by the Board under this Act.
"Sports facility" means a facility that hosts sports events
and holds a seating capacity greater than 17,000 persons.
"Sports governing body" means the organization that
prescribes final rules and enforces codes of conduct with
respect to a sports event and participants therein.
"Sports wagering" means accepting wagers on sports events
or portions of sports events, or on the individual performance
statistics of athletes in a sports event or combination of
sports events, by any system or method of wagering, including,
but not limited to, in person or over the Internet through
websites and on mobile devices. "Sports wagering" includes, but
is not limited to, single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game
wagering, in-play bets, proposition bets, and straight bets.
"Sports wagering account" means a financial record
established by a master sports wagering licensee for an
individual patron in which the patron may deposit and withdraw
funds for sports wagering and other authorized purchases and to
which the master sports wagering licensee may credit winnings
or other amounts due to that patron or authorized by that
patron.
"Tier 1 sports wager" means a sports wager that is
determined solely by the final score or final outcome of the
sports event and is placed before the sports event has begun.
"Tier 2 sports wager" means a sports wager that is not a
tier 1 sports wager.
"Wager" means a sum of money or thing of value risked on an
uncertain occurrence.
"Winning bidder" means a qualified applicant for a master
sports wagering license chosen through the competitive
selection process under Section 25-45.
Section 25-15. Board duties and powers.
(a) Except for sports wagering conducted under Section
25-70, the Board shall have the authority to regulate the
conduct of sports wagering under this Act.
(b) The Board may adopt any rules the Board considers
necessary for the successful implementation, administration,
and enforcement of this Act, except for Section 25-70. Rules
proposed by the Board may be adopted as emergency rules
pursuant to Section 5-45 of the Illinois Administrative
Procedure Act.
(c) The Board shall levy and collect all fees, surcharges,
civil penalties, and monthly taxes on adjusted gross sports
wagering receipts imposed by this Act and deposit all moneys
into the Sports Wagering Fund, except as otherwise provided
under this Act.
(d) The Board may exercise any other powers necessary to
enforce the provisions of this Act that it regulates and the
rules of the Board.
(e) The Board shall adopt rules for a license to be
employed by a master sports wagering licensee when the employee
works in a designated gaming area that has sports wagering or
performs duties in furtherance of or associated with the
operation of sports wagering by the master sports wagering
licensee (occupational license), which shall require an annual
license fee of $250. License fees shall be deposited into the
State Gaming Fund and used for the administration of this Act.
(f) The Board may require that licensees share, in real
time and at the sports wagering account level, information
regarding a wagerer, amount and type of wager, the time the
wager was placed, the location of the wager, including the
Internet protocol address, if applicable, the outcome of the
wager, and records of abnormal wagering activity. Information
shared under this subsection (f) must be submitted in the form
and manner as required by rule. If a sports governing body has
notified the Board that real-time information sharing for
wagers placed on its sports events is necessary and desirable,
licensees may share the same information in the form and manner
required by the Board by rule with the sports governing body or
its designee with respect to wagers on its sports events
subject to applicable federal, State, or local laws or
regulations, including, without limitation, privacy laws and
regulations. Such information may be provided in anonymized
form and may be used by a sports governing body solely for
integrity purposes. For purposes of this subsection (f),
"real-time" means a commercially reasonable periodic interval.
(g) A master sports wagering licensee, professional sports
team, league, or association, sports governing body, or
institution of higher education may submit to the Board in
writing a request to prohibit a type or form of wagering if the
master sports wagering licensee, professional sports team,
league, or association, sports governing body, or institution
of higher education believes that such wagering by type or form
is contrary to public policy, unfair to consumers, or affects
the integrity of a particular sport or the sports betting
industry. The Board shall grant the request upon a
demonstration of good cause from the requester and consultation
with licensees. The Board shall respond to a request pursuant
to this subsection (g) concerning a particular event before the
start of the event or, if it is not feasible to respond before
the start of the event, as soon as practicable.
(h) The Board and master sports wagering licensees may
cooperate with investigations conducted by sports governing
bodies or law enforcement agencies, including, but not limited
to, providing and facilitating the provision of account-level
betting information and audio or video files relating to
persons placing wagers.
(i) A master sports wagering licensee shall make
commercially reasonable efforts to promptly notify the Board
any information relating to:
(1) criminal or disciplinary proceedings commenced
against the master sports wagering licensee in connection
with its operations;
(2) abnormal wagering activity or patterns that may
indicate a concern with the integrity of a sports event or
sports events;
(3) any potential breach of the relevant sports
governing body's internal rules and codes of conduct
pertaining to sports wagering that a licensee has knowledge
of;
(4) any other conduct that corrupts a wagering outcome
of a sports event or sports events for purposes of
financial gain, including match fixing; and
(5) suspicious or illegal wagering activities,
including use of funds derived from illegal activity,
wagers to conceal or launder funds derived from illegal
activity, using agents to place wagers, and using false
identification.
A master sports wagering licensee shall also make
commercially reasonable efforts to promptly report information
relating to conduct described in paragraphs (2), (3), and (4)
of this subsection (i) to the relevant sports governing body.
Section 25-20. Licenses required.
(a) No person may engage in any activity in connection with
sports wagering in this State unless all necessary licenses
have been obtained in accordance with this Act and the rules of
the Board and the Department. The following licenses shall be
issued under this Act:
(1) master sports wagering license;
(2) occupational license;
(3) supplier license;
(4) management services provider license
(5) tier 2 official league data provider license; and
(6) central system provider license.
No person or entity may engage in a sports wagering
operation or activity without first obtaining the appropriate
license.
(b) An applicant for a license issued under this Act shall
submit an application to the Board in the form the Board
requires. The applicant shall submit fingerprints for a
national criminal records check by the Department of State
Police and the Federal Bureau of Investigation. The
fingerprints shall be furnished by the applicant's officers and
directors (if a corporation), members (if a limited liability
company), and partners (if a partnership). The fingerprints
shall be accompanied by a signed authorization for the release
of information by the Federal Bureau of Investigation. The
Board may require additional background checks on licensees
when they apply for license renewal, and an applicant convicted
of a disqualifying offense shall not be licensed.
(c) Each master sports wagering licensee shall display the
license conspicuously in the licensee's place of business or
have the license available for inspection by an agent of the
Board or a law enforcement agency.
(d) Each holder of an occupational license shall carry the
license and have some indicia of licensure prominently
displayed on his or her person when present in a gaming
facility licensed under this Act at all times, in accordance
with the rules of the Board.
(e) Each person licensed under this Act shall give the
Board written notice within 30 days after a material change to
information provided in the licensee's application for a
license or renewal.
Section 25-25. Sports wagering authorized.
(a) Notwithstanding any provision of law to the contrary,
the operation of sports wagering is only lawful when conducted
in accordance with the provisions of this Act and the rules of
the Illinois Gaming Board and the Department of the Lottery.
(b) A person placing a wager under this Act shall be at
least 21 years of age.
(c) A licensee under this Act may not accept a wager on a
minor league sports event.
(d) A licensee under this Act may not accept a wager for a
sports event involving an Illinois collegiate team.
(e) A licensee under this Act may only accept a wager from
a person physically located in the State.
(f) Master sports wagering licensees may use any data
source for determining the results of all tier 1 sports wagers.
(g) A sports governing body headquartered in the United
States may notify the Board that it desires to supply official
league data to master sports wagering licensees for determining
the results of tier 2 sports wagers. Such notification shall be
made in the form and manner as the Board may require. If a
sports governing body does not notify the Board of its desire
to supply official league data, a master sports wagering
licensee may use any data source for determining the results of
any and all tier 2 sports wagers on sports contests for that
sports governing body.
Within 30 days of a sports governing body notifying the
Board, master sports wagering licensees shall use only official
league data to determine the results of tier 2 sports wagers on
sports events sanctioned by that sports governing body, unless:
(1) the sports governing body or designee cannot provide a feed
of official league data to determine the results of a
particular type of tier 2 sports wager, in which case master
sports wagering licensees may use any data source for
determining the results of the applicable tier 2 sports wager
until such time as such data feed becomes available on
commercially reasonable terms; or (2) a master sports wagering
licensee can demonstrate to the Board that the sports governing
body or its designee cannot provide a feed of official league
data to the master sports wagering licensee on commercially
reasonable terms. During the pendency of the Board's
determination, such master sports wagering licensee may use any
data source for determining the results of any and all tier 2
sports wagers.
(h) A licensee under this Act may not accept wagers on a
kindergarten through 12th grade sports event.
Section 25-30. Master sports wagering license issued to an
organization licensee.
(a) An organization licensee may apply to the Board for a
master sports wagering license. To the extent permitted by
federal and State law, the Board shall actively seek to achieve
racial, ethnic, and geographic diversity when issuing master
sports wagering licenses to organization licensees and
encourage minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in this subsection (b),
the initial license fee for a master sports wagering license
for an organization licensee is 5% of its handle from the
preceding calendar year or the lowest amount that is required
to be paid as an initial license fee by an owners licensee
under subsection (b) of Section 25-35, whichever is greater. No
initial license fee shall exceed $10,000,000. An organization
licensee licensed on the effective date of this Act shall pay
the initial master sports wagering license fee by July 1, 2020.
For an organization licensee licensed after the effective date
of this Act, the master sports wagering license fee shall be
$5,000,000, but the amount shall be adjusted 12 months after
the organization licensee begins racing operations based on 5%
of its handle from the first 12 months of racing operations.
The master sports wagering license is valid for 4 years.
(c) The organization licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An organization licensee issued a master sports
wagering license may conduct sports wagering:
(1) at its facility at which inter-track wagering is
conducted pursuant to an inter-track wagering license
under the Illinois Horse Racing Act of 1975;
(2) at 3 inter-track wagering locations if the
inter-track wagering location licensee from which it
derives its license is an organization licensee that is
issued a master sports wagering license; and
(3) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under either
the same brand as the organization licensee is operating under
or a brand owned by a direct or indirect holding company that
owns at least an 80% interest in that organization licensee on
the effective date of this Act.
(f) Until issuance of the first license under Section
25-45, an individual must create a sports wagering account in
person at a facility under paragraph (1) or (2) of subsection
(d) to participate in sports wagering offered over the Internet
or through a mobile application.
Section 25-35. Master sports wagering license issued to an
owners licensee.
(a) An owners licensee may apply to the Board for a master
sports wagering license. To the extent permitted by federal and
State law, the Board shall actively seek to achieve racial,
ethnic, and geographic diversity when issuing master sports
wagering licenses to owners licensees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Except as otherwise provided in subsection (b-5), the
initial license fee for a master sports wagering license for an
owners licensee is 5% of its adjusted gross receipts from the
preceding calendar year. No initial license fee shall exceed
$10,000,000. An owners licensee licensed on the effective date
of this Act shall pay the initial master sports wagering
license fee by July 1, 2020. The master sports wagering license
is valid for 4 years.
(b-5) For an owners licensee licensed after the effective
date of this Act, the master sports wagering license fee shall
be $5,000,000, but the amount shall be adjusted 12 months after
the owners licensee begins gambling operations under the
Illinois Gambling Act based on 5% of its adjusted gross
receipts from the first 12 months of gambling operations. The
master sports wagering license is valid for 4 years.
(c) The owners licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An owners licensee issued a master sports wagering
license may conduct sports wagering:
(1) at its facility in this State that is authorized to
conduct gambling operations under the Illinois Gambling
Act; and
(2) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under either
the same brand as the owners licensee is operating under or a
brand owned by a direct or indirect holding company that owns
at least an 80% interest in that owners licensee on the
effective date of this Act.
(f) Until issuance of the first license under Section
25-45, an individual must create a sports wagering account in
person at a facility under paragraph (1) of subsection (d) to
participate in sports wagering offered over the Internet or
through a mobile application.
Section 25-40. Master sports wagering license issued to a
sports facility.
(a) As used in this Section, "designee" means a master
sports wagering licensee under Section 25-30, 25-35, or 25-45
or a management services provider licensee.
(b) A sports facility or a designee contracted to operate
sports wagering at or within a 5-block radius of the sports
facility may apply to the Board for a master sports wagering
license. To the extent permitted by federal and State law, the
Board shall actively seek to achieve racial, ethnic, and
geographic diversity when issuing master sports wagering
licenses to sports facilities or their designees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (b), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(c) The Board may issue up to 7 master sports wagering
licenses to sports facilities or their designees that meet the
requirements for licensure as determined by rule by the Board.
If more than 7 qualified applicants apply for a master sports
wagering license under this Section, the licenses shall be
granted in the order in which the applications were received.
If a license is denied, revoked, or not renewed, the Board may
begin a new application process and issue a license under this
Section in the order in which the application was received.
(d) The initial license fee for a master sports wagering
license for a sports facility is $10,000,000. The master sports
wagering license is valid for 4 years.
(e) The sports facility or its designee may renew the
master sports wagering license for a period of 4 years by
paying a $1,000,000 renewal fee to the Board.
(f) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering at or
within a 5-block radius of the sports facility.
(g) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering over the
Internet within the sports facility or within a 5-block radius
of the sports facility.
(h) The sports wagering offered by a sports facility or its
designee over the Internet or through a mobile application
shall be offered under the same brand as the sports facility is
operating under, the brand the designee is operating under, or
a combination thereof.
(i) Until issuance of the first license under Section
25-45, an individual must register in person at a sports
facility or the designee's facility to participate in sports
wagering offered over the Internet or through a mobile
application.
Section 25-45. Master sports wagering license issued to an
online sports wagering operator.
(a) The Board shall issue 3 master sports wagering licenses
to online sports wagering operators for a nonrefundable license
fee of $20,000,000 pursuant to an open and competitive
selection process. The master sports wagering license issued
under this Section may be renewed every 4 years upon payment of
a $1,000,000 renewal fee. To the extent permitted by federal
and State law, the Board shall actively seek to achieve racial,
ethnic, and geographic diversity when issuing master sports
wagering licenses under this Section and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Applications for the initial competitive selection
occurring after the effective date of this Act shall be
received by the Board within 540 days after the first license
is issued under this Act to qualify. The Board shall announce
the winning bidders for the initial competitive selection
within 630 days after the first license is issued under this
Act, and this time frame may be extended at the discretion of
the Board.
(c) The Board shall provide public notice of its intent to
solicit applications for master sports wagering licenses under
this Section by posting the notice, application instructions,
and materials on its website for at least 30 calendar days
before the applications are due. Failure by an applicant to
submit all required information may result in the application
being disqualified. The Board may notify an applicant that its
application is incomplete and provide an opportunity to cure by
rule. Application instructions shall include a brief overview
of the selection process and how applications are scored.
(d) To be eligible for a master sports wagering license
under this Section, an applicant must: (1) be at least 21 years
of age; (2) not have been convicted of a felony offense or a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012 or a similar statute of any other
jurisdiction; (3) not have been convicted of a crime involving
dishonesty or moral turpitude; (4) have demonstrated a level of
skill or knowledge that the Board determines to be necessary in
order to operate sports wagering; and (5) have met standards
for the holding of a license as adopted by rules of the Board.
The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of sports wagering in this State and to promote and
maintain a competitive sports wagering market. After the close
of the application period, the Board shall determine whether
the applications meet the mandatory minimum qualification
criteria and conduct a comprehensive, fair, and impartial
evaluation of all qualified applications.
(e) The Board shall open all qualified applications in a
public forum and disclose the applicants' names. The Board
shall summarize the terms of the proposals and make the
summaries available to the public on its website.
(f) Not more than 90 days after the publication of the
qualified applications, the Board shall identify the winning
bidders. In granting the licenses, the Board may give favorable
consideration to qualified applicants presenting plans that
provide for economic development and community engagement. To
the extent permitted by federal and State law, the Board may
give favorable consideration to qualified applicants
demonstrating commitment to diversity in the workplace.
(g) Upon selection of the winning bidders, the Board shall
have a reasonable period of time to ensure compliance with all
applicable statutory and regulatory criteria before issuing
the licenses. If the Board determines a winning bidder does not
satisfy all applicable statutory and regulatory criteria, the
Board shall select another bidder from the remaining qualified
applicants.
(h) Nothing in this Section is intended to confer a
property or other right, duty, privilege, or interest entitling
an applicant to an administrative hearing upon denial of an
application.
(i) Upon issuance of a master sports wagering license to a
winning bidder, the information and plans provided in the
application become a condition of the license. A master sports
wagering licensee under this Section has a duty to disclose any
material changes to the application. Failure to comply with the
conditions or requirements in the application may subject the
master sports wagering licensee under this Section to
discipline, including, but not limited to, fines, suspension,
and revocation of its license, pursuant to rules adopted by the
Board.
(j) The Board shall disseminate information about the
licensing process through media demonstrated to reach large
numbers of business owners and entrepreneurs who are
minorities, women, veterans, and persons with disabilities.
(k) The Department of Commerce and Economic Opportunity, in
conjunction with the Board, shall conduct ongoing, thorough,
and comprehensive outreach to businesses owned by minorities,
women, veterans, and persons with disabilities about
contracting and entrepreneurial opportunities in sports
wagering. This outreach shall include, but not be limited to:
(1) cooperating and collaborating with other State
boards, commissions, and agencies; public and private
universities and community colleges; and local governments
to target outreach efforts; and
(2) working with organizations serving minorities,
women, and persons with disabilities to establish and
conduct training for employment in sports wagering.
(l) The Board shall partner with the Department of Labor,
the Department of Financial and Professional Regulation, and
the Department of Commerce and Economic Opportunity to identify
employment opportunities within the sports wagering industry
for job seekers and dislocated workers.
(m) By March 1, 2020, the Board shall prepare a request for
proposals to conduct a study of the online sports wagering
industry and market to determine whether there is a compelling
interest in implementing remedial measures, including the
application of the Business Enterprise Program under the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act or a similar program to assist minorities,
women, and persons with disabilities in the sports wagering
industry.
As a part of the study, the Board shall evaluate race and
gender-neutral programs or other methods that may be used to
address the needs of minority and women applicants and
minority-owned and women-owned businesses seeking to
participate in the sports wagering industry. The Board shall
submit to the General Assembly and publish on its website the
results of this study by August 1, 2020.
If, as a result of the study conducted under this
subsection (m), the Board finds that there is a compelling
interest in implementing remedial measures, the Board may adopt
rules, including emergency rules, to implement remedial
measures, if necessary and to the extent permitted by State and
federal law, based on the findings of the study conducted under
this subsection (m).
Section 25-50. Supplier license.
(a) The Board may issue a supplier license to a person to
sell or lease sports wagering equipment, systems, or other
gaming items to conduct sports wagering and offer services
related to the equipment or other gaming items and data to a
master sports wagering licensee while the license is active.
(b) The Board may adopt rules establishing additional
requirements for a supplier and any system or other equipment
utilized for sports wagering. The Board may accept licensing by
another jurisdiction that it specifically determines to have
similar licensing requirements as evidence the applicant meets
supplier licensing requirements.
(c) An applicant for a supplier license shall demonstrate
that the equipment, system, or services that the applicant
plans to offer to the master sports wagering licensee conforms
to standards established by the Board and applicable State law.
The Board may accept approval by another jurisdiction that it
specifically determines have similar equipment standards as
evidence the applicant meets the standards established by the
Board and applicable State law.
(d) Applicants shall pay to the Board a nonrefundable
license and application fee in the amount of $150,000. After
the initial 4-year term, the Board shall renew supplier
licenses annually thereafter. Renewal of a supplier license
shall be granted to a renewal applicant who has continued to
comply with all applicable statutory and regulatory
requirements, upon submission of the Board-issued renewal form
and payment of a $150,000 renewal fee.
(e) A supplier shall submit to the Board a list of all
sports wagering equipment and services sold, delivered, or
offered to a master sports wagering licensee in this State, as
required by the Board, all of which must be tested and approved
by an independent testing laboratory approved by the Board. A
master sports wagering licensee may continue to use supplies
acquired from a licensed supplier, even if a supplier's license
expires or is otherwise canceled, unless the Board finds a
defect in the supplies.
Section 25-55. Management services provider license.
(a) A master sports wagering licensee may contract with an
entity to conduct that operation in accordance with the rules
of the Board and the provisions of this Act. That entity shall
obtain a license as a management services provider before the
execution of any such contract, and the management services
provider license shall be issued pursuant to the provisions of
this Act and any rules adopted by the Board.
(b) Each applicant for a management services provider
license shall meet all requirements for licensure and pay a
nonrefundable license and application fee of $1,000,000. The
Board may adopt rules establishing additional requirements for
an authorized management services provider. The Board may
accept licensing by another jurisdiction that it specifically
determines to have similar licensing requirements as evidence
the applicant meets authorized management services provider
licensing requirements.
(c) Management services provider licenses shall be renewed
every 4 years to licensees who continue to be in compliance
with all requirements and who pay the renewal fee of $500,000.
(d) A person who shares in revenue shall be licensed under
this Section.
Section 25-60. Tier 2 official league data provider
license.
(a) A sports governing body or a sports league,
organization, or association or a vendor authorized by such
sports governing body or sports league, organization, or
association to distribute tier 2 official league data may apply
to the Board for a tier 2 official league data provider
license.
(b) A tier 2 official league data provider licensee may
provide a master sports wagering licensee with official league
data for tier 2 sports wagers. No sports governing body or
sports league, organization, or association or a vendor
authorized by such sports governing body or sports league,
organization, or association may provide tier 2 official league
data to a master sports wagering licensee without a tier 2
official league data provider license.
Notwithstanding the provisions of this Section, the
licensing and fee requirements of this Section shall not apply
if, under subsection (g) of Section 25-25, master sports
wagering licensees are not required to use official league data
to determine the results of tier 2 sports wagers.
(c) The initial license fee for a tier 2 official league
data provider license is payable to the Board at the end of the
first year of licensure based on the amount of data sold to
master sports wagering licensees as official league data as
follows:
(1) for data sales up to and including $500,000, the
fee is $30,000;
(2) for data sales in excess of $500,000 and up to and
including $750,000, the fee is $60,000;
(3) for data sales in excess of $750,000 and up to and
including $1,000,000, the fee is $125,000;
(4) for data sales in excess of $1,000,000 and up to
and including $1,500,000, the fee is $250,000;
(5) for data sales in excess of $1,500,000 and up to
and including $2,000,000, the fee is $375,000; and
(6) for data sales in excess of $2,000,000, the fee is
$500,000.
The license is valid for 3 years.
(d) The tier 2 official league data provider licensee may
renew the license for 3 years by paying a renewal fee to the
Board based on the amount of data sold to master sports
wagering licensees as official league data in the immediately
preceding year as provided in paragraphs (1) through (6) of
subsection (c).
Section 25-65. Sports wagering at a sports facility. Sports
wagering may be offered in person at or within a 5-block radius
of a sports facility if sports wagering is offered by a
designee, as defined in Section 25-40, and that designee has
received written authorization from the relevant sports team
that plays its home contests at the sports facility. If more
than one professional sports team plays its home contests at
the same sports facility, written authorization is required
from all sports teams that play home contests at the sports
facility.
Section 25-70. Lottery sports wagering pilot program.
(a) As used in this Section:
"Central system" means the hardware, software,
peripherals, and network components provided by the
Department's central system provider that link and support all
required sports lottery terminals and the central site and that
are unique and separate from the lottery central system for
draw and instant games.
"Central system provider" means an individual,
partnership, corporation, or limited liability company that
has been licensed for the purpose of providing and maintaining
a central system and the related management facilities
specifically for the management of sports lottery terminals.
"Electronic card" means a card purchased from a lottery
retailer.
"Lottery retailer" means a location licensed by the
Department to sell lottery tickets or shares.
"Sports lottery systems" means systems provided by the
central system provider consisting of sports wagering
products, risk management, operations, and support services.
"Sports lottery terminal" means a terminal linked to the
central system in which bills or coins are deposited or an
electronic card is inserted in order to place wagers on a
sports event and lottery offerings.
(b) The Department shall issue one central system provider
license pursuant to an open and competitive bidding process
that uses the following procedures:
(1) The Department shall make applications for the
central system provider license available to the public and
allow a reasonable time for applicants to submit
applications to the Department.
(2) During the filing period for central system
provider license applications, the Department may retain
professional services to assist the Department in
conducting the open and competitive bidding process.
(3) After receiving all of the bid proposals, the
Department shall open all of the proposals in a public
forum and disclose the prospective central system provider
names and venture partners, if any.
(4) The Department shall summarize the terms of the bid
proposals and may make this summary available to the
public.
(5) The Department shall evaluate the bid proposals
within a reasonable time and select no more than 3 final
applicants to make presentations of their bid proposals to
the Department.
(6) The final applicants shall make their
presentations to the Department on the same day during an
open session of the Department.
(7) As soon as practicable after the public
presentations by the final applicants, the Department, in
its discretion, may conduct further negotiations among the
3 final applicants. At the conclusion of such negotiations,
the Department shall select the winning bid.
(8) Upon selection of the winning bid, the Department
shall evaluate the winning bid within a reasonable period
of time for licensee suitability in accordance with all
applicable statutory and regulatory criteria.
(9) If the winning bidder is unable or otherwise fails
to consummate the transaction, (including if the
Department determines that the winning bidder does not
satisfy the suitability requirements), the Department may,
on the same criteria, select from the remaining bidders.
(10) The winning bidder shall pay $20,000,000 to the
Department upon being issued the central system provider
license.
(c) Every sports lottery terminal offered in this State for
play shall first be tested and approved pursuant to the rules
of the Department, and each sports lottery terminal offered in
this State for play shall conform to an approved model. For the
examination of sports lottery terminals and associated
equipment as required by this Section, the central system
provider may utilize the services of one or more independent
outside testing laboratories that have been accredited by a
national accreditation body and that, in the judgment of the
Department, are qualified to perform such examinations. Every
sports lottery terminal offered in this State for play must
meet minimum standards set by an independent outside testing
laboratory approved by the Department.
(d) During the first 360 days after the effective date of
this Act, sport lottery terminals may be placed in no more than
2,500 Lottery retail locations in the State. Sports lottery
terminals may be placed in an additional 2,500 Lottery retail
locations during the second year after the effective date of
this Act.
(e) A sports lottery terminal may not directly dispense
coins, cash, tokens, or any other article of exchange or value
except for receipt tickets. Tickets shall be dispensed by
pressing the ticket dispensing button on the sports lottery
terminal at the end of the placement of one's wager or wagers.
The ticket shall indicate the total amount wagered, odds for
each wager placed, and the cash award for each bet placed, the
time of day in a 24-hour format showing hours and minutes, the
date, the terminal serial number, the sequential number of the
ticket, and an encrypted validation number from which the
validity of the prize may be determined. The player shall turn
in this ticket to the appropriate person at a lottery retailer
to receive the cash award.
(f) No lottery retailer may cause or permit any person
under the age of 21 years to use a sports lottery terminal or
sports wagering application. A lottery retailer who knowingly
causes or permits a person under the age of 21 years to use a
sports lottery terminal or sports wagering application is
guilty of a business offense and shall be fined an amount not
to exceed $5,000.
(g) A sports lottery terminal shall only accept parlay
wagers and fixed odds parlay wagers. The Department shall, by
rule, establish the total amount, as a percentage, of all
wagers placed that a lottery retailer may retain.
(h) The Department shall have jurisdiction over and shall
supervise all lottery sports wagering operations governed by
this Section. The Department shall have all powers necessary
and proper to fully and effectively execute the provisions of
this Section, including, but not limited to, the following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
lottery sports wagering operations in this State.
(3) To adopt rules for the purpose of administering the
provisions of this Section and to adopt rules and
conditions under which all lottery sports wagering in the
State shall be conducted. Such rules are to provide for the
prevention of practices detrimental to the public interest
and for the best interests of lottery sports wagering,
including rules (i) regarding the inspection of such
licensees necessary to operate a lottery retailer under any
laws or rules applicable to licensees, (ii) to impose
penalties for violations of the Act and its rules, and
(iii) establishing standards for advertising lottery
sports wagering.
(i) The Department shall adopt emergency rules to
administer this Section in accordance with Section 5-45 of the
Illinois Administrative Procedure Act. For the purposes of the
Illinois Administrative Procedure Act, the General Assembly
finds that the adoption of rules to implement this Section is
deemed an emergency and necessary to the public interest,
safety, and welfare.
(j) For the privilege of operating lottery sports wagering
under this Section, all proceeds minus net of proceeds returned
to players shall be electronically transferred daily or weekly,
at the discretion of the Director of the Lottery, into the
State Lottery Fund. After amounts owed to the central system
provider and licensed agents, as determined by the Department,
are paid from the moneys deposited into the State Lottery Fund
under this subsection, the remainder shall be transferred on
the 15th of each month to the Capital Projects Fund.
(k) This Section is repealed on January 1, 2024.
Section 25-75. Reporting prohibited conduct;
investigations of prohibited conduct.
(a) The Board shall establish a hotline or other method of
communication that allows any person to confidentially report
information about prohibited conduct to the Board.
(b) The Board shall investigate all reasonable allegations
of prohibited conduct and refer any allegations it deems
credible to the appropriate law enforcement entity.
(c) The identity of any reporting person shall remain
confidential unless that person authorizes disclosure of his or
her identity or until such time as the allegation of prohibited
conduct is referred to law enforcement.
(d) If the Board receives a complaint of prohibited conduct
by an athlete, the Board shall notify the appropriate sports
governing body of the athlete to review the complaint as
provided by rule.
(e) The Board shall adopt emergency rules to administer
this Section in accordance with Section 5-45 of the Illinois
Administrative Procedure Act.
(f) The Board shall adopt rules governing investigations of
prohibited conduct and referrals to law enforcement entities.
Section 25-80. Personal biometric data. A master sports
wagering licensee shall not purchase or use any personal
biometric data of an athlete unless the master sports wagering
licensee has received written permission from the athlete's
exclusive bargaining representative.
Section 25-85. Supplier diversity goals for sports
wagering.
(a) As used in this Section only, "licensee" means a
licensee under this Act other than an occupational licensee.
(b) The public policy of this State is to collaboratively
work with companies that serve Illinois residents to improve
their supplier diversity in a non-antagonistic manner.
(c) The Board and the Department shall require all
licensees under this Act to submit an annual report by April
15, 2020 and every April 15 thereafter, in a searchable Adobe
PDF format, on all procurement goals and actual spending for
businesses owned by women, minorities, veterans, and persons
with disabilities and small business enterprises in the
previous calendar year. These goals shall be expressed as a
percentage of the total work performed by the entity submitting
the report, and the actual spending for all businesses owned by
women, minorities, veterans, and persons with disabilities and
small business enterprises shall also be expressed as a
percentage of the total work performed by the entity submitting
the report.
(d) Each licensee in its annual report shall include the
following information:
(1) an explanation of the plan for the next year to
increase participation;
(2) an explanation of the plan to increase the goals;
(3) the areas of procurement each licensee shall be
actively seeking more participation in the next year;
(4) an outline of the plan to alert and encourage
potential vendors in that area to seek business from the
licensee;
(5) an explanation of the challenges faced in finding
quality vendors and offer any suggestions for what the
Board could do to be helpful to identify those vendors;
(6) a list of the certifications the licensee
recognizes;
(7) the point of contact for any potential vendor who
wishes to do business with the licensee and explain the
process for a vendor to enroll with the licensee as a
businesses owned by women, minorities, veterans, or
persons with disabilities; and
(8) any particular success stories to encourage other
licensee to emulate best practices.
(e) Each annual report shall include as much State-specific
data as possible. If the submitting entity does not submit
State-specific data, then the licensee shall include any
national data it does have and explain why it could not submit
State-specific data and how it intends to do so in future
reports, if possible.
(f) Each annual report shall include the rules,
regulations, and definitions used for the procurement goals in
the licensee's annual report.
(g) The Board, Department, and all licensees shall hold an
annual workshop and job fair open to the public in 2020 and
every year thereafter on the state of supplier diversity to
collaboratively seek solutions to structural impediments to
achieving stated goals, including testimony from each licensee
as well as subject matter experts and advocates. The Board and
Department shall publish a database on their websites of the
point of contact for licensees they regulate under this Act for
supplier diversity, along with a list of certifications each
licensee recognizes from the information submitted in each
annual report. The Board and Department shall publish each
annual report on their websites and shall maintain each annual
report for at least 5 years.
Section 25-90. Tax; Sports Wagering Fund.
(a) For the privilege of holding a license to operate
sports wagering under this Act, this State shall impose and
collect 15% of a master sports wagering licensee's adjusted
gross sports wagering receipts from sports wagering. The
accrual method of accounting shall be used for purposes of
calculating the amount of the tax owed by the licensee.
The taxes levied and collected pursuant to this subsection
(a) are due and payable to the Board no later than the last day
of the month following the calendar month in which the adjusted
gross sports wagering receipts were received and the tax
obligation was accrued.
(a-5) In addition to the tax imposed under subsection (a)
of this Section, for the privilege of holding a license to
operate sports wagering under this Act, the State shall impose
and collect 2% of the adjusted gross receipts from sports
wagers that are placed within a home rule county with a
population of over 3,000,000 inhabitants, which shall be paid,
subject to appropriation from the General Assembly, from the
Sports Wagering Fund to that home rule county for the purpose
of enhancing the county's criminal justice system.
(b) The Sports Wagering Fund is hereby created as special
fund in the State treasury. Except as otherwise provided in
this Act, all moneys collected under this Act by the Board
shall be deposited into the Sports Wagering Fund. On the 25th
of each month, any moneys remaining in the Sports Wagering Fund
shall be transferred to the Capital Projects Fund.
Section 25-95. Compulsive gambling. Each master sports
wagering licensee shall include a statement regarding
obtaining assistance with gambling problems, the text of which
shall be determined by rule by the Department of Human
Services, on the master sports wagering licensee's portal,
Internet website, or computer or mobile application.
Section 25-100. Voluntary self-exclusion program for
sports wagering. Any resident, or non-resident if allowed to
participate in sports wagering, may voluntarily prohibit
himself or herself from establishing a sports wagering account
with a licensee under this Act. The Board and Department shall
incorporate the voluntary self-exclusion program for sports
wagering into any existing self-exclusion program that it
operates on the effective date of this Act.
Section 25-105. Report to General Assembly. On or before
January 15, 2021 and every January 15 thereafter, the Board
shall provide a report to the General Assembly on sports
wagering conducted under this Act.
Section 25-110. Preemption. Nothing in this Act shall be
deemed to diminish the rights, privileges, or remedies of a
person under any other federal or State law, rule, or
regulation.
Section 25-900. The Illinois Administrative Procedure Act
is amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(ii) In order to provide for the expeditious and timely
implementation of the provisions of Section 25-70 of the Sports
Wagering Act, emergency rules to implement Section 25-70 of the
Sports Wagering Act may be adopted in accordance with this
subsection (ii) by the Department of the Lottery as provided in
the Sports Wagering Act. The adoption of emergency rules
authorized by this subsection (ii) is deemed to be necessary
for the public interest, safety, and welfare.
(jj) In order to provide for the expeditious and timely
implementation of the Sports Wagering Act, emergency rules to
implement the Sports Wagering Act may be adopted in accordance
with this subsection (jj) by the Illinois Gaming Board. The
adoption of emergency rules authorized by this subsection (jj)
is deemed to be necessary for the public interest, safety, and
welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 25-905. The State Finance Act is amended by adding
Section 5.896 as follows:
(30 ILCS 105/5.896 new)
Sec. 5.896. The Sports Wagering Fund.
Section 25-910. The Riverboat Gambling Act is amended by
changing Section 13 as follows:
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed, a privilege tax is
imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner to the Board not later than 5:00 o'clock
p.m. of the day after the day when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,
(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the
Board.
(b) Until January 1, 1998, 25% of the tax revenue deposited
in the State Gaming Fund under this Section shall be paid,
subject to appropriation by the General Assembly, to the unit
of local government which is designated as the home dock of the
riverboat. Beginning January 1, 1998, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of adjusted gross receipts generated by a
riverboat shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat. From the tax
revenue deposited in the State Gaming Fund pursuant to
riverboat gambling operations conducted by a licensed manager
on behalf of the State, an amount equal to 5% of adjusted gross
receipts generated pursuant to those riverboat gambling
operations shall be paid monthly, subject to appropriation by
the General Assembly, to the unit of local government that is
designated as the home dock of the riverboat upon which those
riverboat gambling operations are conducted.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video Gaming
Act, (ii) for distribution to the Department of State Police
and to the Department of Revenue for the enforcement of this
Act, and (iii) to the Department of Human Services for the
administration of programs to treat problem gambling,
including problem gambling from sports wagering.
(c-5) Before May 26, 2006 (the effective date of Public Act
94-804) and beginning on the effective date of this amendatory
Act of the 95th General Assembly, unless any organization
licensee under the Illinois Horse Racing Act of 1975 begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, after the
payments required under subsections (b) and (c) have been made,
an amount equal to 15% of the adjusted gross receipts of (1) an
owners licensee that relocates pursuant to Section 11.2, (2) an
owners licensee conducting riverboat gambling operations
pursuant to an owners license that is initially issued after
June 25, 1999, or (3) the first riverboat gambling operations
conducted by a licensed manager on behalf of the State under
Section 7.3, whichever comes first, shall be paid from the
State Gaming Fund into the Horse Racing Equity Fund.
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-25) On July 1, 2013 and each July 1 thereafter,
$1,600,000 shall be transferred from the State Gaming Fund to
the Chicago State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any amount
transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education
Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 98-18, eff. 6-7-13.)
Section 25-915. The Criminal Code of 2012 is amended by
changing Sections 28-1, 28-3, and 28-5 as follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section
8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by
and conducted in accordance with the laws of Illinois or
any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6), and (6.1), and
(15) of subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games conducted on riverboats when
authorized by the Riverboat Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment when conducted in accordance with the Video
Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
1463).
(15) Sports wagering when conducted in accordance with
the Sports Wagering Act.
(c) Sentence.
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
any real estate, vehicle, boat or any other property whatsoever
used for the purposes of gambling other than gambling conducted
in the manner authorized by the Riverboat Gambling Act, the
Sports Wagering Act, or the Video Gaming Act. Any person who
knowingly permits any premises or property owned or occupied by
him or under his control to be used as a gambling place commits
a Class A misdemeanor. Each subsequent offense is a Class 4
felony. When any premises is determined by the circuit court to
be a gambling place:
(a) Such premises is a public nuisance and may be proceeded
against as such, and
(b) All licenses, permits or certificates issued by the
State of Illinois or any subdivision or public agency thereof
authorizing the serving of food or liquor on such premises
shall be void; and no license, permit or certificate so
cancelled shall be reissued for such premises for a period of
60 days thereafter; nor shall any person convicted of keeping a
gambling place be reissued such license for one year from his
conviction and, after a second conviction of keeping a gambling
place, any such person shall not be reissued such license, and
(c) Such premises of any person who knowingly permits
thereon a violation of any Section of this Article shall be
held liable for, and may be sold to pay any unsatisfied
judgment that may be recovered and any unsatisfied fine that
may be levied under any Section of this Article.
(Source: P.A. 96-34, eff. 7-13-09.)
(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,
and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request
for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b) (7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.
(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat
gambling operation or used to train occupational licensees of a
riverboat gambling operation as authorized under the Riverboat
Gambling Act is exempt from seizure under this Section.
(f) Any gambling equipment, devices and supplies provided
by a licensed supplier in accordance with the Riverboat
Gambling Act which are removed from the riverboat for repair
are exempt from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:
(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment for repair.
(h) Property seized or forfeited under this Section is
subject to reporting under the Seizure and Forfeiture Reporting
Act.
(i) Any sports lottery terminals provided by a central
system provider that are removed from a lottery retailer for
repair under the Sports Wagering Act are exempt from seizure
under this Section.
(Source: P.A. 100-512, eff. 7-1-18.)
→ This allows the gaming board to license an operator to run video slot and poker machines at the Illinois State Fairgrounds in Springfield and the DuQuoin State Fairgrounds.
Section 30-1. Short title. This Article may be cited as the
State Fair Gaming Act. References in this Article to "this Act"
mean this Article.
Section 30-5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"State Fair" has the meaning given to that term in the
State Fair Act.
Section 30-10. Gambling at the State Fair.
(a) The Board shall issue a licensed establishment license
as provided under Section 25 of the Video Gaming Act to a
concessioner who will operate at the Illinois State Fairgrounds
and at the DuQuoin State Fairgrounds. The concessioner shall be
chosen under the Illinois Procurement Code for an operational
period not to exceed 3 years. At the conclusion of each 3-year
cycle, the Illinois Procurement Code shall be used to determine
the new concessioner.
(b) Moneys bid by the concessioner shall be deposited into
the State Fairgrounds Capital Improvements and Harness Racing
Fund.
Section 30-15. Video gaming at the State Fair.
(a) The concessioner issued a licensed establishment
license under Section 30-10 may operate: (1) up to 50 video
gaming terminals as provided in the Video Gaming Act during the
scheduled dates of the Illinois State Fair; and (2) up to 30
video gaming terminals as provided in the Video Gaming Act
during the scheduled dates of the DuQuoin State Fair.
(b) No more than 10 video gaming terminals may be placed in
any temporary pavilion where alcoholic beverages are served at
either State Fair.
Section 30-20. Revenue.
(a) Notwithstanding any other law to the contrary, a tax is
imposed at the rate of 35% of net terminal income received from
video gaming under this Act, which shall be remitted to the
Board and deposited into the State Fairgrounds Capital
Improvements and Harness Racing Fund.
(b) There is created within the State treasury the State
Fairgrounds Capital Improvements and Harness Racing Fund. The
Department of Agriculture shall use moneys in the State
Fairgrounds Capital Improvements and Harness Racing Fund as
follows and in the order of priority:
(1) to provide support for a harness race meeting
produced by an organization licensee under the Illinois
Horse Racing Act of 1975 and which shall consist of up to
30 days of live racing per year at the Illinois State
Fairgrounds in Springfield;
(2) to repair and rehabilitate fairgrounds'
backstretch facilities to such a level as determined by the
Department of Agriculture to be required to carry out a
program of live harness racing; and
(3) for the overall repair and rehabilitation of the
capital infrastructure of: (i) the Illinois State
Fairgrounds in Springfield, and (ii) the DuQuoin State
Fairgrounds in DuQuoin, and for no other purpose.
Notwithstanding any other law to the contrary, the entire
State share of tax revenues from the race meetings under
paragraph (1) of this subsection (c) shall be reinvested into
the State Fairgrounds Capital Improvements and Harness Racing
Fund.
Section 30-25. Rules. The Board and the Department of
Agriculture may adopt rules for the implementation of this Act.
Section 30-900. The State Finance Act is amended by adding
Section 5.897 as follows:
(30 ILCS 105/5.897 new)
Sec. 5.897. The State Fairgrounds Capital Improvements and
Harness Racing Fund.
Section 35-3. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,
emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois
Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections
16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172 this
implementing the Illinois Underground Natural Gas Storage
Safety Act may be adopted in accordance with this subsection by
the Department of Natural Resources. The adoption of emergency
rules authorized by this subsection is deemed to be necessary
for the public interest, safety, and welfare.
(ff) (ee) In order to provide for the expeditious and
timely initial implementation of the changes made to Articles
5A and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-1181 this amendatory Act of the 100th General
on a one-time-only basis adopt emergency rules in accordance
with this subsection (ff) (ee). The 24-month limitation on the
adoption of emergency rules does not apply to rules to
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection (ff)
subsection (ff) (ee) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) (ff) In order to provide for the expeditious and
timely implementation of the provisions of Public Act 101-1
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) (ff) to implement the changes made by
Public Act 101-1 this amendatory Act of the 101st General
rules authorized by this subsection (gg) (ff) is deemed to be
necessary for the public interest, safety, and welfare.
(kk) In order to provide for the expeditious and timely
implementation of the provisions of subsection (c) of Section
20 of the Video Gaming Act, emergency rules to implement the
provisions of subsection (c) of Section 20 of the Video Gaming
Act may be adopted in accordance with this subsection (kk) by
the Illinois Gaming Board. The adoption of emergency rules
authorized by this subsection (kk) is deemed to be necessary
for the public interest, safety, and welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
Section 35-5. The Open Meetings Act is amended by changing
Section 2 as follows:
(5 ILCS 120/2) (from Ch. 102, par. 42)
Sec. 2. Open meetings.
(a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
(b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
(c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
(1) The appointment, employment, compensation,
discipline, performance, or dismissal of specific
employees of the public body or legal counsel for the
public body, including hearing testimony on a complaint
lodged against an employee of the public body or against
legal counsel for the public body to determine its
validity. However, a meeting to consider an increase in
compensation to a specific employee of a public body that
is subject to the Local Government Wage Increase
Transparency Act may not be closed and shall be open to the
public and posted and held in accordance with this Act.
(2) Collective negotiating matters between the public
body and its employees or their representatives, or
deliberations concerning salary schedules for one or more
classes of employees.
(3) The selection of a person to fill a public office,
as defined in this Act, including a vacancy in a public
office, when the public body is given power to appoint
under law or ordinance, or the discipline, performance or
removal of the occupant of a public office, when the public
body is given power to remove the occupant under law or
ordinance.
(4) Evidence or testimony presented in open hearing, or
in closed hearing where specifically authorized by law, to
a quasi-adjudicative body, as defined in this Act, provided
that the body prepares and makes available for public
inspection a written decision setting forth its
determinative reasoning.
(5) The purchase or lease of real property for the use
of the public body, including meetings held for the purpose
of discussing whether a particular parcel should be
acquired.
(6) The setting of a price for sale or lease of
property owned by the public body.
(7) The sale or purchase of securities, investments, or
investment contracts. This exception shall not apply to the
investment of assets or income of funds deposited into the
Illinois Prepaid Tuition Trust Fund.
(8) Security procedures, school building safety and
security, and the use of personnel and equipment to respond
to an actual, a threatened, or a reasonably potential
danger to the safety of employees, students, staff, the
public, or public property.
(9) Student disciplinary cases.
(10) The placement of individual students in special
education programs and other matters relating to
individual students.
(11) Litigation, when an action against, affecting or
on behalf of the particular public body has been filed and
is pending before a court or administrative tribunal, or
when the public body finds that an action is probable or
imminent, in which case the basis for the finding shall be
recorded and entered into the minutes of the closed
meeting.
(12) The establishment of reserves or settlement of
claims as provided in the Local Governmental and
Governmental Employees Tort Immunity Act, if otherwise the
disposition of a claim or potential claim might be
prejudiced, or the review or discussion of claims, loss or
risk management information, records, data, advice or
communications from or with respect to any insurer of the
public body or any intergovernmental risk management
association or self insurance pool of which the public body
is a member.
(13) Conciliation of complaints of discrimination in
the sale or rental of housing, when closed meetings are
authorized by the law or ordinance prescribing fair housing
practices and creating a commission or administrative
agency for their enforcement.
(14) Informant sources, the hiring or assignment of
undercover personnel or equipment, or ongoing, prior or
future criminal investigations, when discussed by a public
body with criminal investigatory responsibilities.
(15) Professional ethics or performance when
considered by an advisory body appointed to advise a
licensing or regulatory agency on matters germane to the
advisory body's field of competence.
(16) Self evaluation, practices and procedures or
professional ethics, when meeting with a representative of
a statewide association of which the public body is a
member.
(17) The recruitment, credentialing, discipline or
formal peer review of physicians or other health care
professionals, or for the discussion of matters protected
under the federal Patient Safety and Quality Improvement
Act of 2005, and the regulations promulgated thereunder,
including 42 C.F.R. Part 3 (73 FR 70732), or the federal
Health Insurance Portability and Accountability Act of
1996, and the regulations promulgated thereunder,
including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
or other institution providing medical care, that is
operated by the public body.
(18) Deliberations for decisions of the Prisoner
Review Board.
(19) Review or discussion of applications received
under the Experimental Organ Transplantation Procedures
Act.
(20) The classification and discussion of matters
classified as confidential or continued confidential by
the State Government Suggestion Award Board.
(21) Discussion of minutes of meetings lawfully closed
under this Act, whether for purposes of approval by the
body of the minutes or semi-annual review of the minutes as
mandated by Section 2.06.
(22) Deliberations for decisions of the State
Emergency Medical Services Disciplinary Review Board.
(23) The operation by a municipality of a municipal
utility or the operation of a municipal power agency or
municipal natural gas agency when the discussion involves
(i) contracts relating to the purchase, sale, or delivery
of electricity or natural gas or (ii) the results or
conclusions of load forecast studies.
(24) Meetings of a residential health care facility
resident sexual assault and death review team or the
Executive Council under the Abuse Prevention Review Team
Act.
(25) Meetings of an independent team of experts under
Brian's Law.
(26) Meetings of a mortality review team appointed
under the Department of Juvenile Justice Mortality Review
Team Act.
(27) (Blank).
(28) Correspondence and records (i) that may not be
disclosed under Section 11-9 of the Illinois Public Aid
Code or (ii) that pertain to appeals under Section 11-8 of
the Illinois Public Aid Code.
(29) Meetings between internal or external auditors
and governmental audit committees, finance committees, and
their equivalents, when the discussion involves internal
control weaknesses, identification of potential fraud risk
areas, known or suspected frauds, and fraud interviews
conducted in accordance with generally accepted auditing
standards of the United States of America.
(30) Those meetings or portions of meetings of a
fatality review team or the Illinois Fatality Review Team
Advisory Council during which a review of the death of an
eligible adult in which abuse or neglect is suspected,
alleged, or substantiated is conducted pursuant to Section
15 of the Adult Protective Services Act.
(31) Meetings and deliberations for decisions of the
Concealed Carry Licensing Review Board under the Firearm
Concealed Carry Act.
(32) Meetings between the Regional Transportation
Authority Board and its Service Boards when the discussion
involves review by the Regional Transportation Authority
Board of employment contracts under Section 28d of the
Metropolitan Transit Authority Act and Sections 3A.18 and
3B.26 of the Regional Transportation Authority Act.
(33) Those meetings or portions of meetings of the
advisory committee and peer review subcommittee created
under Section 320 of the Illinois Controlled Substances Act
during which specific controlled substance prescriber,
dispenser, or patient information is discussed.
(34) Meetings of the Tax Increment Financing Reform
Task Force under Section 2505-800 of the Department of
Revenue Law of the Civil Administrative Code of Illinois.
(35) Meetings of the group established to discuss
Medicaid capitation rates under Section 5-30.8 of the
Illinois Public Aid Code.
(36) Those deliberations or portions of deliberations
for decisions of the Illinois Gaming Board in which there
is discussed any of the following: (i) personal,
commercial, financial, or other information obtained from
any source that is privileged, proprietary, confidential,
or a trade secret; or (ii) information specifically
exempted from the disclosure by federal or State law.
→ Here, the gaming board is given broad latitude to close its meetings to the public, power it has been seeking for some time. In two recent court cases, Cook County Circuit Court judges have found the board violated the Open Meetings Act. In fact, records show the board probably had been violating the act for years, since it regularly used the same improper procedures cited in the two court cases. This provision could make the board’s work less transparent as the massive gambling expansion gets underway.
(d) Definitions. For purposes of this Section:
"Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
rules, and who is not an independent contractor.
"Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
"Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.
(e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480,
eff. 9-9-15; 99-642, eff. 7-28-16; 99-646, eff. 7-28-16;
99-687, eff. 1-1-17; 100-201, eff. 8-18-17; 100-465, eff.
8-31-17; 100-646, eff. 7-27-18.)
Section 35-10. The State Officials and Employees Ethics Act
is amended by changing Section 5-45 as follows:
(5 ILCS 430/5-45)
Sec. 5-45. Procurement; revolving door prohibition.
→ Changes in this section bar former employees of the gaming board from holding an ownership stake in a casino, video gambling operation or location, sports gambling company or horse racing track within two years of leaving the board.
It also bars employees of the gaming board and the Illinois Racing Board from working for any gambling entity within a year of ending their employment. This comes after a number of gaming board employees went to work for video gambling companies, including employees who were present during closed-session meetings of the board, when key decisions were made without public knowledge. It’s been a source of controversy among people in the video gambling industry for some time now.
(a) No former officer, member, or State employee, or spouse
or immediate family member living with such person, shall,
within a period of one year immediately after termination of
State employment, knowingly accept employment or receive
compensation or fees for services from a person or entity if
the officer, member, or State employee, during the year
immediately preceding termination of State employment,
participated personally and substantially in the award of State
contracts, or the issuance of State contract change orders,
with a cumulative value of $25,000 or more to the person or
entity, or its parent or subsidiary.
(a-5) No officer, member, or spouse or immediate family
member living with such person shall, during the officer or
member's term in office or within a period of 2 years
immediately leaving office, hold an ownership interest, other
than a passive interest in a publicly traded company, in any
gaming license under the Illinois Gambling Act, the Video
Gaming Act, the Illinois Horse Racing Act of 1975, or the
Sports Wagering Act. Any member of the General Assembly or
spouse or immediate family member living with such person who
has an ownership interest, other than a passive interest in a
publicly traded company, in any gaming license under the
Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
the Video Gaming Act, or the Sports Wagering Act at the time of
the effective date of this amendatory Act of the 101st General
Assembly shall divest himself or herself of such ownership
within one year after the effective date of this amendatory Act
of the 101st General Assembly. No State employee who works for
the Illinois Gaming Board or Illinois Racing Board or spouse or
immediate family member living with such person shall, during
State employment or within a period of 2 years immediately
after termination of State employment, hold an ownership
interest, other than a passive interest in a publicly traded
company, in any gaming license under the Illinois Gambling Act,
the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
the Sports Wagering Act.
(b) No former officer of the executive branch or State
employee of the executive branch with regulatory or licensing
authority, or spouse or immediate family member living with
such person, shall, within a period of one year immediately
after termination of State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the officer or State employee, during the
year immediately preceding termination of State employment,
participated personally and substantially in making a
regulatory or licensing decision that directly applied to the
person or entity, or its parent or subsidiary.
(c) Within 6 months after the effective date of this
amendatory Act of the 96th General Assembly, each executive
branch constitutional officer and legislative leader, the
Auditor General, and the Joint Committee on Legislative Support
Services shall adopt a policy delineating which State positions
under his or her jurisdiction and control, by the nature of
their duties, may have the authority to participate personally
and substantially in the award of State contracts or in
regulatory or licensing decisions. The Governor shall adopt
such a policy for all State employees of the executive branch
not under the jurisdiction and control of any other executive
branch constitutional officer.
The policies required under subsection (c) of this Section
shall be filed with the appropriate ethics commission
established under this Act or, for the Auditor General, with
the Office of the Auditor General.
(d) Each Inspector General shall have the authority to
determine that additional State positions under his or her
jurisdiction, not otherwise subject to the policies required by
subsection (c) of this Section, are nonetheless subject to the
notification requirement of subsection (f) below due to their
involvement in the award of State contracts or in regulatory or
licensing decisions.
(e) The Joint Committee on Legislative Support Services,
the Auditor General, and each of the executive branch
constitutional officers and legislative leaders subject to
subsection (c) of this Section shall provide written
notification to all employees in positions subject to the
policies required by subsection (c) or a determination made
under subsection (d): (1) upon hiring, promotion, or transfer
into the relevant position; and (2) at the time the employee's
duties are changed in such a way as to qualify that employee.
An employee receiving notification must certify in writing that
the person was advised of the prohibition and the requirement
to notify the appropriate Inspector General in subsection (f).
(f) Any State employee in a position subject to the
policies required by subsection (c) or to a determination under
subsection (d), but who does not fall within the prohibition of
subsection (h) below, who is offered non-State employment
during State employment or within a period of one year
immediately after termination of State employment shall, prior
to accepting such non-State employment, notify the appropriate
Inspector General. Within 10 calendar days after receiving
notification from an employee in a position subject to the
policies required by subsection (c), such Inspector General
shall make a determination as to whether the State employee is
restricted from accepting such employment by subsection (a) or
(b). In making a determination, in addition to any other
relevant information, an Inspector General shall assess the
effect of the prospective employment or relationship upon
decisions referred to in subsections (a) and (b), based on the
totality of the participation by the former officer, member, or
State employee in those decisions. A determination by an
Inspector General must be in writing, signed and dated by the
Inspector General, and delivered to the subject of the
determination within 10 calendar days or the person is deemed
eligible for the employment opportunity. For purposes of this
subsection, "appropriate Inspector General" means (i) for
members and employees of the legislative branch, the
Legislative Inspector General; (ii) for the Auditor General and
employees of the Office of the Auditor General, the Inspector
General provided for in Section 30-5 of this Act; and (iii) for
executive branch officers and employees, the Inspector General
having jurisdiction over the officer or employee. Notice of any
determination of an Inspector General and of any such appeal
shall be given to the ultimate jurisdictional authority, the
Attorney General, and the Executive Ethics Commission.
(g) An Inspector General's determination regarding
restrictions under subsection (a) or (b) may be appealed to the
appropriate Ethics Commission by the person subject to the
decision or the Attorney General no later than the 10th
calendar day after the date of the determination.
On appeal, the Ethics Commission or Auditor General shall
seek, accept, and consider written public comments regarding a
determination. In deciding whether to uphold an Inspector
General's determination, the appropriate Ethics Commission or
Auditor General shall assess, in addition to any other relevant
information, the effect of the prospective employment or
relationship upon the decisions referred to in subsections (a)
and (b), based on the totality of the participation by the
former officer, member, or State employee in those decisions.
The Ethics Commission shall decide whether to uphold an
Inspector General's determination within 10 calendar days or
the person is deemed eligible for the employment opportunity.
(h) The following officers, members, or State employees
shall not, within a period of one year immediately after
termination of office or State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the person or entity or its parent or
subsidiary, during the year immediately preceding termination
of State employment, was a party to a State contract or
contracts with a cumulative value of $25,000 or more involving
the officer, member, or State employee's State agency, or was
the subject of a regulatory or licensing decision involving the
officer, member, or State employee's State agency, regardless
of whether he or she participated personally and substantially
in the award of the State contract or contracts or the making
of the regulatory or licensing decision in question:
(1) members or officers;
(2) members of a commission or board created by the
Illinois Constitution;
(3) persons whose appointment to office is subject to
the advice and consent of the Senate;
(4) the head of a department, commission, board,
division, bureau, authority, or other administrative unit
within the government of this State;
(5) chief procurement officers, State purchasing
officers, and their designees whose duties are directly
related to State procurement; and
(6) chiefs of staff, deputy chiefs of staff, associate
chiefs of staff, assistant chiefs of staff, and deputy
governors; .
(7) employees of the Illinois Racing Board; and
(8) employees of the Illinois Gaming Board.
(i) For the purposes of this Section, with respect to
officers or employees of a regional transit board, as defined
in this Act, the phrase "person or entity" does not include:
(i) the United States government, (ii) the State, (iii)
municipalities, as defined under Article VII, Section 1 of the
Illinois Constitution, (iv) units of local government, as
defined under Article VII, Section 1 of the Illinois
Constitution, or (v) school districts.
(Source: P.A. 96-555, eff. 8-18-09; 97-653, eff. 1-13-12.)
Section 35-15. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by changing Section 5-20 as follows:
(20 ILCS 301/5-20)
Sec. 5-20. Gambling disorders.
(a) Subject to appropriation, the Department shall
establish a program for public education, research, and
training regarding gambling disorders and the treatment and
prevention of gambling disorders. Subject to specific
appropriation for these stated purposes, the program must
include all of the following:
(1) Establishment and maintenance of a toll-free "800"
telephone number to provide crisis counseling and referral
services to families experiencing difficulty as a result of
gambling disorders.
(2) Promotion of public awareness regarding the
recognition and prevention of gambling disorders.
(3) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for gambling disorders.
(4) Conducting studies to identify adults and
juveniles in this State who have, or who are at risk of
developing, gambling disorders.
(b) Subject to appropriation, the Department shall either
establish and maintain the program or contract with a private
or public entity for the establishment and maintenance of the
program. Subject to appropriation, either the Department or the
private or public entity shall implement the toll-free
telephone number, promote public awareness, and conduct
in-service training concerning gambling disorders.
(c) Subject to appropriation, the Department shall produce
and supply the signs specified in Section 10.7 of the Illinois
Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
of the Charitable Games Act, and Section 13.1 of the Illinois
(Source: P.A. 100-759, eff. 1-1-19.)
Section 35-20. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on the
effective date of this amendatory Act of the 96th General
Assembly in connection with the selection of the private
manager. As part of its obligation to terminate these contracts
and select the private manager, the Department shall establish
a mutually agreeable timetable to transfer the functions of
existing contractors to the private manager so that existing
Lottery operations are not materially diminished or impaired
during the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department shall
not renew such contract for a term extending beyond the
mutually agreed timetable for transfer of functions; or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on the effective date of this amendatory Act
of the 96th General Assembly are not subject to termination as
provided for in this subsection (c), then the Department may
include a provision in the contract with the private manager
specifying a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be State
employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager shall
include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive information
from the private manager concerning any aspect of the
Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any operating
decision that bears significantly on the public interest,
including, but not limited to, decisions on the kinds of
games to be offered to the public and decisions affecting
the relative risk and reward of the games being offered, so
the Department has a reasonable opportunity to evaluate and
countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund except
as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to locate
its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under the
oversight of the Department, the private manager shall have
the following duties and obligations with respect to the
management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis, appropriate
financial statements in a form and manner acceptable to the
Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the
best overall value. The process shall not be subject to the
provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling its
obligations under the management agreement during the term
of the agreement.
(22) The disclosure of any information requested by the
Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a competitive
request for qualifications process consistent with Section
20-35 of the Illinois Procurement Code, which shall take into
account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of the
people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery on
behalf of Illinois, another State or foreign government and
attracting persons who are not currently regular players of
a lottery.
(f) The Department may retain the services of an advisor or
advisors with significant experience in financial services or
the management, operation, and procurement of goods, services,
and equipment for a government-run lottery to assist in the
preparation of the terms of the request for qualifications and
selection of the private manager. Any prospective advisor
seeking to provide services under this subsection (f) shall
disclose any material business or financial relationship
during the past 3 years with any potential offeror, or with a
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery. The Department shall evaluate the material business or
financial relationship of each prospective advisor. The
Department shall not select any prospective advisor with a
substantial business or financial relationship that the
Department deems to impair the objectivity of the services to
be provided by the prospective advisor. During the course of
the advisor's engagement by the Department, and for a period of
one year thereafter, the advisor shall not enter into any
business or financial relationship with any offeror or any
vendor identified to assist an offeror in performing its
obligations under the management agreement. Any advisor
retained by the Department shall be disqualified from being an
offeror. The Department shall not include terms in the request
for qualifications that provide a material advantage whether
directly or indirectly to any potential offeror, or any
contractor or subcontractor presently providing goods,
services, or equipment to the Department to support the
Lottery, including terms contained in previous responses to
requests for proposals or qualifications submitted to
Illinois, another State or foreign government when those terms
are uniquely associated with a particular potential offeror,
contractor, or subcontractor. The request for proposals
offered by the Department on December 22, 2008 as
"LOT08GAMESYS" and reference number "22016176" is declared
void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the Department.
(h) At the public hearing, the Department shall (i) provide
sufficient time for each finalist to present and explain its
proposal to the Department and the Governor or the Governor's
designee, including an opportunity to respond to questions
posed by the Department, Governor, or designee and (ii) allow
the public and non-selected offerors to comment on the
presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin on
or before September 15, 2010. The Governor shall include in the
notice a detailed explanation and the reasons why the final
offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department and
leased to the private manager shall be owned by the Department
in the name of the State and shall be considered to be public
property devoted to an essential public and governmental
function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by this amendatory Act of the 101st General Assembly constitute
authorized forms of gambling that are not in direct competition
with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to determine
whether the private manager has complied with this Section and
the management agreement. The private manager shall bear the
cost of an investigation or reinvestigation of the private
manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department, agency,
or instrumentality of the State or any political subdivision is
required for the Department to enter into a management
agreement under this Section. This Section contains full and
complete authority for the Department to approve any contracts
entered into by a private manager with a vendor providing
goods, services, or both goods and services to the private
manager under the terms of the management agreement, including
subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract to
the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but no
later than 5 business days after the request is received by the
Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement Officer
with reasonable advance written notice of any contract that is
pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
21.9, and 21.10, and 21.11, 21.10 the Department shall
distribute all proceeds of lottery tickets and shares sold in
the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that report
to the Governor and General Assembly.
(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17;
100-587, eff. 6-4-18; 100-647, eff. 7-30-18; 100-1068, eff.
8-24-18; revised 9-20-18.)
Section 35-25. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-305 as follows:
(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
Sec. 2505-305. Investigators.
(a) The Department has the power to appoint investigators
to conduct all investigations, searches, seizures, arrests,
and other duties imposed under the provisions of any law
administered by the Department. Except as provided in
subsection (c), these investigators have and may exercise all
the powers of peace officers solely for the purpose of
enforcing taxing measures administered by the Department.
(b) The Director must authorize to each investigator
employed under this Section and to any other employee of the
Department exercising the powers of a peace officer a distinct
badge that, on its face, (i) clearly states that the badge is
authorized by the Department and (ii) contains a unique
identifying number. No other badge shall be authorized by the
Department.
(c) The Department may enter into agreements with the
Illinois Gaming Board providing that investigators appointed
under this Section shall exercise the peace officer powers set
forth in paragraph (20.6) of subsection (c) of Section 5 of the
Illinois Riverboat Gambling Act.
(Source: P.A. 96-37, eff. 7-13-09.)
Section 35-30. The State Finance Act is amended by changing
Section 6z-45 as follows:
(30 ILCS 105/6z-45)
Sec. 6z-45. The School Infrastructure Fund.
(a) The School Infrastructure Fund is created as a special
fund in the State Treasury.
In addition to any other deposits authorized by law,
beginning January 1, 2000, on the first day of each month, or
as soon thereafter as may be practical, the State Treasurer and
State Comptroller shall transfer the sum of $5,000,000 from the
General Revenue Fund to the School Infrastructure Fund, except
that, notwithstanding any other provision of law, and in
addition to any other transfers that may be provided for by
law, before June 30, 2012, the Comptroller and the Treasurer
shall transfer $45,000,000 from the General Revenue Fund into
the School Infrastructure Fund, and, for fiscal year 2013 only,
the Treasurer and the Comptroller shall transfer $1,250,000
from the General Revenue Fund to the School Infrastructure Fund
on the first day of each month; provided, however, that no such
transfers shall be made from July 1, 2001 through June 30,
2003.
(a-5) Money in the School Infrastructure Fund may be used
to pay the expenses of the State Board of Education, the
Governor's Office of Management and Budget, and the Capital
Development Board in administering programs under the School
Construction Law, the total expenses not to exceed $1,315,000
in any fiscal year.
(b) Subject to the transfer provisions set forth below,
money in the School Infrastructure Fund shall, if and when the
State of Illinois incurs any bonded indebtedness for the
construction of school improvements under subsection (e) of
Section 5 of the General Obligation Bond Act, be set aside and
used for the purpose of paying and discharging annually the
principal and interest on that bonded indebtedness then due and
payable, and for no other purpose.
In addition to other transfers to the General Obligation
Bond Retirement and Interest Fund made pursuant to Section 15
of the General Obligation Bond Act, upon each delivery of bonds
issued for construction of school improvements under the School
Construction Law, the State Comptroller shall compute and
certify to the State Treasurer the total amount of principal
of, interest on, and premium, if any, on such bonds during the
then current and each succeeding fiscal year. With respect to
the interest payable on variable rate bonds, such
certifications shall be calculated at the maximum rate of
interest that may be payable during the fiscal year, after
taking into account any credits permitted in the related
indenture or other instrument against the amount of such
interest required to be appropriated for that period.
On or before the last day of each month, the State
Treasurer and State Comptroller shall transfer from the School
Infrastructure Fund to the General Obligation Bond Retirement
and Interest Fund an amount sufficient to pay the aggregate of
the principal of, interest on, and premium, if any, on the
bonds payable on their next payment date, divided by the number
of monthly transfers occurring between the last previous
payment date (or the delivery date if no payment date has yet
occurred) and the next succeeding payment date. Interest
payable on variable rate bonds shall be calculated at the
maximum rate of interest that may be payable for the relevant
period, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
(b-5) The money deposited into the School Infrastructure
Fund from transfers pursuant to subsections (c-30) and (c-35)
of Section 13 of the Illinois Riverboat Gambling Act shall be
applied, without further direction, as provided in subsection
(b-3) of Section 5-35 of the School Construction Law.
(c) The surplus, if any, in the School Infrastructure Fund
after payments made pursuant to subsections (a-5), (b), and
(b-5) of this Section shall, subject to appropriation, be used
as follows:
First - to make 3 payments to the School Technology
Revolving Loan Fund as follows:
Transfer of $30,000,000 in fiscal year 1999;
Transfer of $20,000,000 in fiscal year 2000; and
Transfer of $10,000,000 in fiscal year 2001.
Second - to pay any amounts due for grants for school
construction projects and debt service under the School
Construction Law.
Third - to pay any amounts due for grants for school
maintenance projects under the School Construction Law.
(Source: P.A. 100-23, eff. 7-6-17.)
Section 35-35. The Illinois Income Tax Act is amended by
changing Sections 201, 303, 304, and 710 as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount equal
to 2 1/2% of the taxpayer's net income for the taxable
year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period prior
to July 1, 2017, as calculated under Section 202.5, and
(ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1, 1989,
as calculated under Section 202.3, and (ii) 4.8% of the
taxpayer's net income for the period after June 30, 1989,
as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1, 2017,
as calculated under Section 202.5, and (ii) 7% of the
taxpayer's net income for the period after June 30, 2017,
as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing Act
of 1975 and (ii) of an organization gaming licensee under the
Illinois Gambling Act. The amount of the surcharge is equal to
the amount of federal income tax liability for the taxable year
attributable to those sales and exchanges. The surcharge
imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such foreign
insurer under this Act for a taxable year, net of all
credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of the
Illinois Insurance Code, the fire insurance company
tax imposed by Section 12 of the Fire Investigation
Act, and the fire department taxes imposed under
Section 11-10-1 of the Illinois Municipal Code,
equals 1.25% for taxable years ending prior to December 31,
2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will in
no event increase the rates imposed under subsections (b)
and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates imposed
by subsection (b) and only after the tax imposed by
subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service during
the taxable year, provided such property is placed in
service on or after July 1, 1984. There shall be allowed an
additional credit equal to .5% of the basis of qualified
property placed in service during the taxable year,
provided such property is placed in service on or after
July 1, 1986, and the taxpayer's base employment within
Illinois has increased by 1% or more over the preceding
year as determined by the taxpayer's employment records
filed with the Illinois Department of Employment Security.
Taxpayers who are new to Illinois shall be deemed to have
met the 1% growth in base employment for the first year in
which they file employment records with the Illinois
Department of Employment Security. The provisions added to
this Section by Public Act 85-1200 (and restored by Public
Act 87-895) shall be construed as declaratory of existing
law and not as a new enactment. If, in any year, the
increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit shall
be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i) and
(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability or
the liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land or
improvements to real property that are not a structural
component of a building such as landscaping, sewer
lines, local access roads, fencing, parking lots, and
other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes of
this subsection (e) the term "mining" shall have the same
meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection (e),
the term "retailing" means the sale of tangible personal
property for use or consumption and not for resale, or
services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for
taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in Illinois by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal Property
Tax Replacement Income Tax for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation and, (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (7), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on
its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction
under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code. This paragraph is exempt from the provisions
of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in service
in an Enterprise Zone created pursuant to the Illinois
Enterprise Zone Act or, for property placed in service on
or after July 1, 2006, a River Edge Redevelopment Zone
established pursuant to the River Edge Redevelopment Zone
Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. The credit
shall be .5% of the basis for such property. The credit
shall be available only in the taxable year in which the
property is placed in service in the Enterprise Zone or
River Edge Redevelopment Zone and shall not be allowed to
the extent that it would reduce a taxpayer's liability for
the tax imposed by subsections (a) and (b) of this Section
to below zero. For tax years ending on or after December
31, 1985, the credit shall be allowed for the tax year in
which the property is placed in service, or, if the amount
of the credit exceeds the tax liability for that year,
whether it exceeds the original liability or the liability
as later amended, such excess may be carried forward and
applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be
applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise Zone
or River Edge Redevelopment Zone within 48 months after
being placed in service, the tax imposed under subsections
(a) and (b) of this Section for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (6), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more over
the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file employment
records with the Illinois Department of Employment
Security. If, in any year, the increase in base employment
within Illinois over the preceding year is less than 1%,
the additional credit shall be limited to that percentage
times a fraction, the numerator of which is 0.5% and the
denominator of which is 1%, but shall not exceed 0.5%.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in the
taxable year in which such investments have been completed.
The credit for additional investments beyond the minimum
investment by a designated high impact business authorized
under subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act shall be available only in the taxable
year in which the property is placed in service and shall
not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections (a)
and (b) of this Section to below zero. For tax years ending
on or after December 31, 1987, the credit shall be allowed
for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois by the taxpayer, the amount of
such increase shall be deemed property placed in service on
the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such property
was originally allowed by eliminating such property from
such computation, and (ii) subtracting such recomputed
credit from the amount of credit previously allowed. For
the purposes of this paragraph (6), a reduction of the
basis of qualified property resulting from a
redetermination of the purchase price shall be deemed a
disposition of qualified property to the extent of such
reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under Section
18-183 of the Property Tax Code, the tax imposed under
subsections (a) and (b) of this Section shall be increased
for the taxable year in which the taxpayer relocated its
facility by an amount equal to the amount of credit
received by the taxpayer under this subsection (h).
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
If, during any taxable year ending on or after December 31,
1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such taxable
year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or semi-skilled
or skilled fields, which were deducted from gross income in the
computation of taxable income. The credit against the tax
imposed by subsections (a) and (b) shall be 1.6% of such
training expenses. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection (j) to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2022, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a) and
(b) of this Section for increasing research activities in this
State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2022, including, but not
limited to, the period beginning on January 1, 2016 and ending
on the effective date of this amendatory Act of the 100th
General Assembly. All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and on
or before December 31, 2001, a taxpayer shall be allowed a
credit against the tax imposed by subsections (a) and (b)
of this Section for certain amounts paid for unreimbursed
eligible remediation costs, as specified in this
subsection. For purposes of this Section, "unreimbursed
eligible remediation costs" means costs approved by the
Illinois Environmental Protection Agency ("Agency") under
Section 58.14 of the Environmental Protection Act that were
paid in performing environmental remediation at a site for
which a No Further Remediation Letter was issued by the
Agency and recorded under Section 58.10 of the
Environmental Protection Act. The credit must be claimed
for the taxable year in which Agency approval of the
eligible remediation costs is granted. The credit is not
available to any taxpayer if the taxpayer or any related
party caused or contributed to, in any material respect, a
release of regulated substances on, in, or under the site
that was identified and addressed by the remedial action
pursuant to the Site Remediation Program of the
Environmental Protection Act. After the Pollution Control
Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue Code
and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of being
a related taxpayer, as well as any of its partners. The
credit allowed against the tax imposed by subsections (a)
and (b) shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site, except
that the $100,000 threshold shall not apply to any site
contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year with
a maximum total of $150,000 per site. For partners and
shareholders of subchapter S corporations, there shall be
allowed a credit under this subsection to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed (i) $500 for tax years
ending prior to December 31, 2017, and (ii) $750 for tax years
ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31, 2006,
a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval of
the eligible remediation costs is granted. The credit is
not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or under
the site that was identified and addressed by the remedial
action pursuant to the Site Remediation Program of the
Environmental Protection Act. Determinations as to credit
availability for purposes of this Section shall be made
consistent with rules adopted by the Pollution Control
Board pursuant to the Illinois Administrative Procedure
Act for the administration and enforcement of Section 58.9
of the Environmental Protection Act. For purposes of this
Section, "taxpayer" includes a person whose tax attributes
the taxpayer has succeeded to under Section 381 of the
Internal Revenue Code and "related party" includes the
persons disallowed a deduction for losses by paragraphs
(b), (c), and (f)(1) of Section 267 of the Internal Revenue
Code by virtue of being a related taxpayer, as well as any
of its partners. The credit allowed against the tax imposed
by subsections (a) and (b) shall be equal to 25% of the
unreimbursed eligible remediation costs in excess of
$100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Pilot Program, a surcharge is imposed on
all taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Pilot Program Act. The amount of the surcharge
is equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Pilot Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17.)
(35 ILCS 5/303) (from Ch. 120, par. 3-303)
Sec. 303. (a) In general. Any item of capital gain or loss,
and any item of income from rents or royalties from real or
tangible personal property, interest, dividends, and patent or
copyright royalties, and prizes awarded under the Illinois
Lottery Law, and, for taxable years ending on or after December
31, 2019, wagering and gambling winnings from Illinois sources
as set forth in subsection (e-1) of this Section, to the extent
such item constitutes nonbusiness income, together with any
item of deduction directly allocable thereto, shall be
allocated by any person other than a resident as provided in
this Section.
(b) Capital gains and losses.
(1) Real property. Capital gains and losses from sales
or exchanges of real property are allocable to this State
if the property is located in this State.
(2) Tangible personal property. Capital gains and
losses from sales or exchanges of tangible personal
property are allocable to this State if, at the time of
such sale or exchange:
(A) The property had its situs in this State; or
(B) The taxpayer had its commercial domicile in
this State and was not taxable in the state in which
the property had its situs.
(3) Intangibles. Capital gains and losses from sales or
exchanges of intangible personal property are allocable to
this State if the taxpayer had its commercial domicile in
this State at the time of such sale or exchange.
(c) Rents and royalties.
(1) Real property. Rents and royalties from real
property are allocable to this State if the property is
located in this State.
(2) Tangible personal property. Rents and royalties
from tangible personal property are allocable to this
State:
(A) If and to the extent that the property is
utilized in this State; or
(B) In their entirety if, at the time such rents or
royalties were paid or accrued, the taxpayer had its
commercial domicile in this State and was not organized
under the laws of or taxable with respect to such rents
or royalties in the state in which the property was
utilized. The extent of utilization of tangible
personal property in a state is determined by
multiplying the rents or royalties derived from such
property by a fraction, the numerator of which is the
number of days of physical location of the property in
the state during the rental or royalty period in the
taxable year and the denominator of which is the number
of days of physical location of the property everywhere
during all rental or royalty periods in the taxable
year. If the physical location of the property during
the rental or royalty period is unknown or
unascertainable by the taxpayer, tangible personal
property is utilized in the state in which the property
was located at the time the rental or royalty payer
obtained possession.
(d) Patent and copyright royalties.
(1) Allocation. Patent and copyright royalties are
allocable to this State:
(A) If and to the extent that the patent or
copyright is utilized by the payer in this State; or
(B) If and to the extent that the patent or
copyright is utilized by the payer in a state in which
the taxpayer is not taxable with respect to such
royalties and, at the time such royalties were paid or
accrued, the taxpayer had its commercial domicile in
this State.
(2) Utilization.
(A) A patent is utilized in a state to the extent
that it is employed in production, fabrication,
manufacturing or other processing in the state or to
the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties
does not permit allocation to states or if the
accounting procedures do not reflect states of
utilization, the patent is utilized in this State if
the taxpayer has its commercial domicile in this State.
(B) A copyright is utilized in a state to the
extent that printing or other publication originates
in the state. If the basis of receipts from copyright
royalties does not permit allocation to states or if
the accounting procedures do not reflect states of
utilization, the copyright is utilized in this State if
the taxpayer has its commercial domicile in this State.
(e) Illinois lottery prizes. Prizes awarded under the
Illinois Lottery Law are allocable to this State. Payments
received in taxable years ending on or after December 31, 2013,
from the assignment of a prize under Section 13.1 of the
Illinois Lottery Law are allocable to this State.
(e-1) Wagering and gambling winnings. Payments received in
taxable years ending on or after December 31, 2019 of winnings
from pari-mutuel wagering conducted at a wagering facility
licensed under the Illinois Horse Racing Act of 1975 and from
gambling games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act are allocable to this State.
(e-5) Unemployment benefits. Unemployment benefits paid by
the Illinois Department of Employment Security are allocable to
this State.
(f) Taxability in other state. For purposes of allocation
of income pursuant to this Section, a taxpayer is taxable in
another state if:
(1) In that state he is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for
the privilege of doing business, or a corporate stock tax;
or
(2) That state has jurisdiction to subject the taxpayer
to a net income tax regardless of whether, in fact, the
state does or does not.
(g) Cross references.
(1) For allocation of interest and dividends by persons
other than residents, see Section 301(c)(2).
(2) For allocation of nonbusiness income by residents,
see Section 301(a).
(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than residents.
(a) In general. The business income of a person other than
a resident shall be allocated to this State if such person's
business income is derived solely from this State. If a person
other than a resident derives business income from this State
and one or more other states, then, for tax years ending on or
before December 30, 1998, and except as otherwise provided by
this Section, such person's business income shall be
apportioned to this State by multiplying the income by a
fraction, the numerator of which is the sum of the property
factor (if any), the payroll factor (if any) and 200% of the
sales factor (if any), and the denominator of which is 4
reduced by the number of factors other than the sales factor
which have a denominator of zero and by an additional 2 if the
sales factor has a denominator of zero. For tax years ending on
or after December 31, 1998, and except as otherwise provided by
this Section, persons other than residents who derive business
income from this State and one or more other states shall
compute their apportionment factor by weighting their
property, payroll, and sales factors as provided in subsection
(h) of this Section.
(1) Property factor.
(A) The property factor is a fraction, the numerator of
which is the average value of the person's real and
tangible personal property owned or rented and used in the
trade or business in this State during the taxable year and
the denominator of which is the average value of all the
person's real and tangible personal property owned or
rented and used in the trade or business during the taxable
year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at 8
times the net annual rental rate. Net annual rental rate is
the annual rental rate paid by the person less any annual
rental rate received by the person from sub-rentals.
(C) The average value of property shall be determined
by averaging the values at the beginning and ending of the
taxable year but the Director may require the averaging of
monthly values during the taxable year if reasonably
required to reflect properly the average value of the
person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator of
which is the total amount paid in this State during the
taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed entirely
within this State;
(ii) The individual's service is performed both
within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or
(iii) Some of the service is performed within this
State and either the base of operations, or if there is
no base of operations, the place from which the service
is directed or controlled is within this State, or the
base of operations or the place from which the service
is directed or controlled is not in any state in which
some part of the service is performed, but the
individual's residence is in this State.
(iv) Compensation paid to nonresident professional
athletes.
(a) General. The Illinois source income of a
nonresident individual who is a member of a
professional athletic team includes the portion of the
individual's total compensation for services performed
as a member of a professional athletic team during the
taxable year which the number of duty days spent within
this State performing services for the team in any
manner during the taxable year bears to the total
number of duty days spent both within and without this
State during the taxable year.
(b) Travel days. Travel days that do not involve
either a game, practice, team meeting, or other similar
team event are not considered duty days spent in this
State. However, such travel days are considered in the
total duty days spent both within and without this
State.
(c) Definitions. For purposes of this subpart
(iv):
(1) The term "professional athletic team"
includes, but is not limited to, any professional
baseball, basketball, football, soccer, or hockey
team.
(2) The term "member of a professional
athletic team" includes those employees who are
active players, players on the disabled list, and
any other persons required to travel and who travel
with and perform services on behalf of a
professional athletic team on a regular basis.
This includes, but is not limited to, coaches,
managers, and trainers.
(3) Except as provided in items (C) and (D) of
this subpart (3), the term "duty days" means all
days during the taxable year from the beginning of
the professional athletic team's official
pre-season training period through the last game
in which the team competes or is scheduled to
compete. Duty days shall be counted for the year in
which they occur, including where a team's
official pre-season training period through the
last game in which the team competes or is
scheduled to compete, occurs during more than one
tax year.
(A) Duty days shall also include days on
which a member of a professional athletic team
performs service for a team on a date that does
not fall within the foregoing period (e.g.,
participation in instructional leagues, the
"All Star Game", or promotional "caravans").
Performing a service for a professional
athletic team includes conducting training and
rehabilitation activities, when such
activities are conducted at team facilities.
(B) Also included in duty days are game
days, practice days, days spent at team
meetings, promotional caravans, preseason
training camps, and days served with the team
through all post-season games in which the team
competes or is scheduled to compete.
(C) Duty days for any person who joins a
team during the period from the beginning of
the professional athletic team's official
pre-season training period through the last
game in which the team competes, or is
scheduled to compete, shall begin on the day
that person joins the team. Conversely, duty
days for any person who leaves a team during
this period shall end on the day that person
leaves the team. Where a person switches teams
during a taxable year, a separate duty-day
calculation shall be made for the period the
person was with each team.
(D) Days for which a member of a
professional athletic team is not compensated
and is not performing services for the team in
any manner, including days when such member of
a professional athletic team has been
suspended without pay and prohibited from
performing any services for the team, shall not
be treated as duty days.
(E) Days for which a member of a
professional athletic team is on the disabled
list and does not conduct rehabilitation
activities at facilities of the team, and is
not otherwise performing services for the team
in Illinois, shall not be considered duty days
spent in this State. All days on the disabled
list, however, are considered to be included in
total duty days spent both within and without
this State.
(4) The term "total compensation for services
performed as a member of a professional athletic
team" means the total compensation received during
the taxable year for services performed:
(A) from the beginning of the official
pre-season training period through the last
game in which the team competes or is scheduled
to compete during that taxable year; and
(B) during the taxable year on a date which
does not fall within the foregoing period
(e.g., participation in instructional leagues,
the "All Star Game", or promotional caravans).
This compensation shall include, but is not
limited to, salaries, wages, bonuses as described
in this subpart, and any other type of compensation
paid during the taxable year to a member of a
professional athletic team for services performed
in that year. This compensation does not include
strike benefits, severance pay, termination pay,
contract or option year buy-out payments,
expansion or relocation payments, or any other
payments not related to services performed for the
team.
For purposes of this subparagraph, "bonuses"
included in "total compensation for services
performed as a member of a professional athletic
team" subject to the allocation described in
Section 302(c)(1) are: bonuses earned as a result
of play (i.e., performance bonuses) during the
season, including bonuses paid for championship,
playoff or "bowl" games played by a team, or for
selection to all-star league or other honorary
positions; and bonuses paid for signing a
contract, unless the payment of the signing bonus
is not conditional upon the signee playing any
games for the team or performing any subsequent
services for the team or even making the team, the
signing bonus is payable separately from the
salary and any other compensation, and the signing
bonus is nonrefundable.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator of
which is the total sales of the person in this State during
the taxable year, and the denominator of which is the total
sales of the person everywhere during the taxable year.
(B) Sales of tangible personal property are in this
State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point or
other conditions of the sale; or
(ii) The property is shipped from an office, store,
warehouse, factory or other place of storage in this
State and either the purchaser is the United States
government or the person is not taxable in the state of
the purchaser; provided, however, that premises owned
or leased by a person who has independently contracted
with the seller for the printing of newspapers,
periodicals or books shall not be deemed to be an
office, store, warehouse, factory or other place of
storage for purposes of this Section. Sales of tangible
personal property are not in this State if the seller
and purchaser would be members of the same unitary
business group but for the fact that either the seller
or purchaser is a person with 80% or more of total
business activity outside of the United States and the
property is purchased for resale.
(B-1) Patents, copyrights, trademarks, and similar
items of intangible personal property.
(i) Gross receipts from the licensing, sale, or
other disposition of a patent, copyright, trademark,
or similar item of intangible personal property, other
than gross receipts governed by paragraph (B-7) of this
item (3), are in this State to the extent the item is
utilized in this State during the year the gross
receipts are included in gross income.
(ii) Place of utilization.
(I) A patent is utilized in a state to the
extent that it is employed in production,
fabrication, manufacturing, or other processing in
the state or to the extent that a patented product
is produced in the state. If a patent is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction equal
to the gross receipts of the licensee or purchaser
from sales or leases of items produced,
fabricated, manufactured, or processed within that
state using the patent and of patented items
produced within that state, divided by the total of
such gross receipts for all states in which the
patent is utilized.
(II) A copyright is utilized in a state to the
extent that printing or other publication
originates in the state. If a copyright is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction equal
to the gross receipts from sales or licenses of
materials printed or published in that state
divided by the total of such gross receipts for all
states in which the copyright is utilized.
(III) Trademarks and other items of intangible
personal property governed by this paragraph (B-1)
are utilized in the state in which the commercial
domicile of the licensee or purchaser is located.
(iii) If the state of utilization of an item of
property governed by this paragraph (B-1) cannot be
determined from the taxpayer's books and records or
from the books and records of any person related to the
taxpayer within the meaning of Section 267(b) of the
Internal Revenue Code, 26 U.S.C. 267, the gross
receipts attributable to that item shall be excluded
from both the numerator and the denominator of the
sales factor.
(B-2) Gross receipts from the license, sale, or other
disposition of patents, copyrights, trademarks, and
similar items of intangible personal property, other than
gross receipts governed by paragraph (B-7) of this item
(3), may be included in the numerator or denominator of the
sales factor only if gross receipts from licenses, sales,
or other disposition of such items comprise more than 50%
of the taxpayer's total gross receipts included in gross
income during the tax year and during each of the 2
immediately preceding tax years; provided that, when a
taxpayer is a member of a unitary business group, such
determination shall be made on the basis of the gross
receipts of the entire unitary business group.
(B-5) For taxable years ending on or after December 31,
2008, except as provided in subsections (ii) through (vii),
receipts from the sale of telecommunications service or
mobile telecommunications service are in this State if the
customer's service address is in this State.
(i) For purposes of this subparagraph (B-5), the
following terms have the following meanings:
"Ancillary services" means services that are
associated with or incidental to the provision of
"telecommunications services", including but not
limited to "detailed telecommunications billing",
"directory assistance", "vertical service", and "voice
mail services".
"Air-to-Ground Radiotelephone service" means a
radio service, as that term is defined in 47 CFR 22.99,
in which common carriers are authorized to offer and
provide radio telecommunications service for hire to
subscribers in aircraft.
"Call-by-call Basis" means any method of charging
for telecommunications services where the price is
measured by individual calls.
"Communications Channel" means a physical or
virtual path of communications over which signals are
transmitted between or among customer channel
termination points.
"Conference bridging service" means an "ancillary
service" that links two or more participants of an
audio or video conference call and may include the
provision of a telephone number. "Conference bridging
service" does not include the "telecommunications
services" used to reach the conference bridge.
"Customer Channel Termination Point" means the
location where the customer either inputs or receives
the communications.
"Detailed telecommunications billing service"
means an "ancillary service" of separately stating
information pertaining to individual calls on a
customer's billing statement.
"Directory assistance" means an "ancillary
service" of providing telephone number information,
and/or address information.
"Home service provider" means the facilities based
carrier or reseller with which the customer contracts
for the provision of mobile telecommunications
services.
"Mobile telecommunications service" means
commercial mobile radio service, as defined in Section
20.3 of Title 47 of the Code of Federal Regulations as
in effect on June 1, 1999.
"Place of primary use" means the street address
representative of where the customer's use of the
telecommunications service primarily occurs, which
must be the residential street address or the primary
business street address of the customer. In the case of
mobile telecommunications services, "place of primary
use" must be within the licensed service area of the
home service provider.
"Post-paid telecommunication service" means the
telecommunications service obtained by making a
payment on a call-by-call basis either through the use
of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by
charge made to a telephone number which is not
associated with the origination or termination of the
telecommunications service. A post-paid calling
service includes telecommunications service, except a
prepaid wireless calling service, that would be a
prepaid calling service except it is not exclusively a
telecommunication service.
"Prepaid telecommunication service" means the
right to access exclusively telecommunications
services, which must be paid for in advance and which
enables the origination of calls using an access number
or authorization code, whether manually or
electronically dialed, and that is sold in
predetermined units or dollars of which the number
declines with use in a known amount.
"Prepaid Mobile telecommunication service" means a
telecommunications service that provides the right to
utilize mobile wireless service as well as other
non-telecommunication services, including but not
limited to ancillary services, which must be paid for
in advance that is sold in predetermined units or
dollars of which the number declines with use in a
known amount.
"Private communication service" means a
telecommunication service that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
other associated services that are provided in
connection with the use of such channel or channels.
"Service address" means:
(a) The location of the telecommunications
equipment to which a customer's call is charged and
from which the call originates or terminates,
regardless of where the call is billed or paid;
(b) If the location in line (a) is not known,
service address means the origination point of the
signal of the telecommunications services first
identified by either the seller's
telecommunications system or in information
received by the seller from its service provider
where the system used to transport such signals is
not that of the seller; and
(c) If the locations in line (a) and line (b)
are not known, the service address means the
location of the customer's place of primary use.
"Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data,
audio, video, or any other information or signals to a
point, or between or among points. The term
"telecommunications service" includes such
transmission, conveyance, or routing in which computer
processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service is referred to as voice over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications service" does not include:
(a) Data processing and information services
that allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser when such
purchaser's primary purpose for the underlying
transaction is the processed data or information;
(b) Installation or maintenance of wiring or
equipment on a customer's premises;
(c) Tangible personal property;
(d) Advertising, including but not limited to
directory advertising;
(e) Billing and collection services provided
to third parties;
(f) Internet access service;
(g) Radio and television audio and video
programming services, regardless of the medium,
including the furnishing of transmission,
conveyance and routing of such services by the
programming service provider. Radio and television
audio and video programming services shall include
but not be limited to cable service as defined in
47 USC 522(6) and audio and video programming
services delivered by commercial mobile radio
service providers, as defined in 47 CFR 20.3;
(h) "Ancillary services"; or
(i) Digital products "delivered
electronically", including but not limited to
software, music, video, reading materials or ring
tones.
"Vertical service" means an "ancillary service"
that is offered in connection with one or more
"telecommunications services", which offers advanced
calling features that allow customers to identify
callers and to manage multiple calls and call
connections, including "conference bridging services".
"Voice mail service" means an "ancillary service"
that enables the customer to store, send or receive
recorded messages. "Voice mail service" does not
include any "vertical services" that the customer may
be required to have in order to utilize the "voice mail
service".
(ii) Receipts from the sale of telecommunications
service sold on an individual call-by-call basis are in
this State if either of the following applies:
(a) The call both originates and terminates in
this State.
(b) The call either originates or terminates
in this State and the service address is located in
this State.
(iii) Receipts from the sale of postpaid
telecommunications service at retail are in this State
if the origination point of the telecommunication
signal, as first identified by the service provider's
telecommunication system or as identified by
information received by the seller from its service
provider if the system used to transport
telecommunication signals is not the seller's, is
located in this State.
(iv) Receipts from the sale of prepaid
telecommunications service or prepaid mobile
telecommunications service at retail are in this State
if the purchaser obtains the prepaid card or similar
means of conveyance at a location in this State.
Receipts from recharging a prepaid telecommunications
service or mobile telecommunications service is in
this State if the purchaser's billing information
indicates a location in this State.
(v) Receipts from the sale of private
communication services are in this State as follows:
(a) 100% of receipts from charges imposed at
each channel termination point in this State.
(b) 100% of receipts from charges for the total
channel mileage between each channel termination
point in this State.
(c) 50% of the total receipts from charges for
service segments when those segments are between 2
customer channel termination points, 1 of which is
located in this State and the other is located
outside of this State, which segments are
separately charged.
(d) The receipts from charges for service
segments with a channel termination point located
in this State and in two or more other states, and
which segments are not separately billed, are in
this State based on a percentage determined by
dividing the number of customer channel
termination points in this State by the total
number of customer channel termination points.
(vi) Receipts from charges for ancillary services
for telecommunications service sold to customers at
retail are in this State if the customer's primary
place of use of telecommunications services associated
with those ancillary services is in this State. If the
seller of those ancillary services cannot determine
where the associated telecommunications are located,
then the ancillary services shall be based on the
location of the purchaser.
(vii) Receipts to access a carrier's network or
from the sale of telecommunication services or
ancillary services for resale are in this State as
follows:
(a) 100% of the receipts from access fees
attributable to intrastate telecommunications
service that both originates and terminates in
this State.
(b) 50% of the receipts from access fees
attributable to interstate telecommunications
service if the interstate call either originates
or terminates in this State.
(c) 100% of the receipts from interstate end
user access line charges, if the customer's
service address is in this State. As used in this
subdivision, "interstate end user access line
charges" includes, but is not limited to, the
surcharge approved by the federal communications
commission and levied pursuant to 47 CFR 69.
(d) Gross receipts from sales of
telecommunication services or from ancillary
services for telecommunications services sold to
other telecommunication service providers for
resale shall be sourced to this State using the
apportionment concepts used for non-resale
receipts of telecommunications services if the
information is readily available to make that
determination. If the information is not readily
available, then the taxpayer may use any other
reasonable and consistent method.
(B-7) For taxable years ending on or after December 31,
2008, receipts from the sale of broadcasting services are
in this State if the broadcasting services are received in
this State. For purposes of this paragraph (B-7), the
following terms have the following meanings:
"Advertising revenue" means consideration received
by the taxpayer in exchange for broadcasting services
or allowing the broadcasting of commercials or
announcements in connection with the broadcasting of
film or radio programming, from sponsorships of the
programming, or from product placements in the
programming.
"Audience factor" means the ratio that the
audience or subscribers located in this State of a
station, a network, or a cable system bears to the
total audience or total subscribers for that station,
network, or cable system. The audience factor for film
or radio programming shall be determined by reference
to the books and records of the taxpayer or by
reference to published rating statistics provided the
method used by the taxpayer is consistently used from
year to year for this purpose and fairly represents the
taxpayer's activity in this State.
"Broadcast" or "broadcasting" or "broadcasting
services" means the transmission or provision of film
or radio programming, whether through the public
airwaves, by cable, by direct or indirect satellite
transmission, or by any other means of communication,
either through a station, a network, or a cable system.
"Film" or "film programming" means the broadcast
on television of any and all performances, events, or
productions, including but not limited to news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of video tape, disc, or any
other type of format or medium. Each episode of a
series of films produced for television shall
constitute separate "film" notwithstanding that the
series relates to the same principal subject and is
produced during one or more tax periods.
"Radio" or "radio programming" means the broadcast
on radio of any and all performances, events, or
productions, including but not limited to news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of an audio tape, disc, or any
other format or medium. Each episode in a series of
radio programming produced for radio broadcast shall
constitute a separate "radio programming"
notwithstanding that the series relates to the same
principal subject and is produced during one or more
tax periods.
(i) In the case of advertising revenue from
broadcasting, the customer is the advertiser and
the service is received in this State if the
commercial domicile of the advertiser is in this
State.
(ii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
received from the recipient of the broadcast, the
portion of the service that is received in this
State is measured by the portion of the recipients
of the broadcast located in this State.
Accordingly, the fee or other remuneration for
such service that is included in the Illinois
numerator of the sales factor is the total of those
fees or other remuneration received from
recipients in Illinois. For purposes of this
paragraph, a taxpayer may determine the location
of the recipients of its broadcast using the
address of the recipient shown in its contracts
with the recipient or using the billing address of
the recipient in the taxpayer's records.
(iii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
from the person providing the programming, the
portion of the broadcast service that is received
by such station, network, or cable system in this
State is measured by the portion of recipients of
the broadcast located in this State. Accordingly,
the amount of revenue related to such an
arrangement that is included in the Illinois
numerator of the sales factor is the total fee or
other total remuneration from the person providing
the programming related to that broadcast
multiplied by the Illinois audience factor for
that broadcast.
(iv) In the case where film or radio
programming is provided by a taxpayer that is a
network or station to a customer for broadcast in
exchange for a fee or other remuneration from that
customer the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(v) In the case where film or radio programming
is provided by a taxpayer that is not a network or
station to another person for broadcasting in
exchange for a fee or other remuneration from that
person, the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(B-8) Gross receipts from winnings under the Illinois
Lottery Law from the assignment of a prize under Section
13.1 of the Illinois Lottery Law are received in this
State. This paragraph (B-8) applies only to taxable years
ending on or after December 31, 2013.
(B-9) For taxable years ending on or after December 31,
2019, gross receipts from winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from winnings from
gambling games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act are in this State.
(C) For taxable years ending before December 31, 2008,
sales, other than sales governed by paragraphs (B), (B-1),
(B-2), and (B-8) are in this State if:
(i) The income-producing activity is performed in
this State; or
(ii) The income-producing activity is performed
both within and without this State and a greater
proportion of the income-producing activity is
performed within this State than without this State,
based on performance costs.
(C-5) For taxable years ending on or after December 31,
2008, sales, other than sales governed by paragraphs (B),
(B-1), (B-2), (B-5), and (B-7), are in this State if any of
the following criteria are met:
(i) Sales from the sale or lease of real property
are in this State if the property is located in this
State.
(ii) Sales from the lease or rental of tangible
personal property are in this State if the property is
located in this State during the rental period. Sales
from the lease or rental of tangible personal property
that is characteristically moving property, including,
but not limited to, motor vehicles, rolling stock,
aircraft, vessels, or mobile equipment are in this
State to the extent that the property is used in this
State.
(iii) In the case of interest, net gains (but not
less than zero) and other items of income from
intangible personal property, the sale is in this State
if:
(a) in the case of a taxpayer who is a dealer
in the item of intangible personal property within
the meaning of Section 475 of the Internal Revenue
Code, the income or gain is received from a
customer in this State. For purposes of this
subparagraph, a customer is in this State if the
customer is an individual, trust or estate who is a
resident of this State and, for all other
customers, if the customer's commercial domicile
is in this State. Unless the dealer has actual
knowledge of the residence or commercial domicile
of a customer during a taxable year, the customer
shall be deemed to be a customer in this State if
the billing address of the customer, as shown in
the records of the dealer, is in this State; or
(b) in all other cases, if the
income-producing activity of the taxpayer is
performed in this State or, if the
income-producing activity of the taxpayer is
performed both within and without this State, if a
greater proportion of the income-producing
activity of the taxpayer is performed within this
State than in any other state, based on performance
costs.
(iv) Sales of services are in this State if the
services are received in this State. For the purposes
of this section, gross receipts from the performance of
services provided to a corporation, partnership, or
trust may only be attributed to a state where that
corporation, partnership, or trust has a fixed place of
business. If the state where the services are received
is not readily determinable or is a state where the
corporation, partnership, or trust receiving the
service does not have a fixed place of business, the
services shall be deemed to be received at the location
of the office of the customer from which the services
were ordered in the regular course of the customer's
trade or business. If the ordering office cannot be
determined, the services shall be deemed to be received
at the office of the customer to which the services are
billed. If the taxpayer is not taxable in the state in
which the services are received, the sale must be
excluded from both the numerator and the denominator of
the sales factor. The Department shall adopt rules
prescribing where specific types of service are
received, including, but not limited to, publishing,
and utility service.
(D) For taxable years ending on or after December 31,
1995, the following items of income shall not be included
in the numerator or denominator of the sales factor:
dividends; amounts included under Section 78 of the
Internal Revenue Code; and Subpart F income as defined in
Section 952 of the Internal Revenue Code. No inference
shall be drawn from the enactment of this paragraph (D) in
construing this Section for taxable years ending before
December 31, 1995.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years
ending on or after December 31, 1999, provided that a
taxpayer may elect to apply the provisions of these
paragraphs to prior tax years. Such election shall be made
in the form and manner prescribed by the Department, shall
be irrevocable, and shall apply to all tax years; provided
that, if a taxpayer's Illinois income tax liability for any
tax year, as assessed under Section 903 prior to January 1,
1999, was computed in a manner contrary to the provisions
of paragraphs (B-1) or (B-2), no refund shall be payable to
the taxpayer for that tax year to the extent such refund is
the result of applying the provisions of paragraph (B-1) or
(B-2) retroactively. In the case of a unitary business
group, such election shall apply to all members of such
group for every tax year such group is in existence, but
shall not apply to any taxpayer for any period during which
that taxpayer is not a member of such group.
(b) Insurance companies.
(1) In general. Except as otherwise provided by
paragraph (2), business income of an insurance company for
a taxable year shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the direct premiums written for insurance upon
property or risk in this State, and the denominator of
which is the direct premiums written for insurance upon
property or risk everywhere. For purposes of this
subsection, the term "direct premiums written" means the
total amount of direct premiums written, assessments and
annuity considerations as reported for the taxable year on
the annual statement filed by the company with the Illinois
Director of Insurance in the form approved by the National
Convention of Insurance Commissioners or such other form as
may be prescribed in lieu thereof.
(2) Reinsurance. If the principal source of premiums
written by an insurance company consists of premiums for
reinsurance accepted by it, the business income of such
company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the
sum of (i) direct premiums written for insurance upon
property or risk in this State, plus (ii) premiums written
for reinsurance accepted in respect of property or risk in
this State, and the denominator of which is the sum of
(iii) direct premiums written for insurance upon property
or risk everywhere, plus (iv) premiums written for
reinsurance accepted in respect of property or risk
everywhere. For purposes of this paragraph, premiums
written for reinsurance accepted in respect of property or
risk in this State, whether or not otherwise determinable,
may, at the election of the company, be determined on the
basis of the proportion which premiums written for
reinsurance accepted from companies commercially domiciled
in Illinois bears to premiums written for reinsurance
accepted from all sources, or, alternatively, in the
proportion which the sum of the direct premiums written for
insurance upon property or risk in this State by each
ceding company from which reinsurance is accepted bears to
the sum of the total direct premiums written by each such
ceding company for the taxable year. The election made by a
company under this paragraph for its first taxable year
ending on or after December 31, 2011, shall be binding for
that company for that taxable year and for all subsequent
taxable years, and may be altered only with the written
permission of the Department, which shall not be
unreasonably withheld.
(c) Financial organizations.
(1) In general. For taxable years ending before
December 31, 2008, business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is its business income from sources within this
State, and the denominator of which is its business income
from all sources. For the purposes of this subsection, the
business income of a financial organization from sources
within this State is the sum of the amounts referred to in
subparagraphs (A) through (E) following, but excluding the
adjusted income of an international banking facility as
determined in paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the
operation as a financial organization within this
State. In computing the amounts referred to in
paragraphs (A) through (E) of this subsection, any
amount received by a member of an affiliated group
(determined under Section 1504(a) of the Internal
Revenue Code but without reference to whether any such
corporation is an "includible corporation" under
Section 1504(b) of the Internal Revenue Code) from
another member of such group shall be included only to
the extent such amount exceeds expenses of the
recipient directly related thereto.
(2) International Banking Facility. For taxable years
ending before December 31, 2008:
(A) Adjusted Income. The adjusted income of an
international banking facility is its income reduced
by the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income of
the international banking facility by a fraction, not
greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured
primarily by real estate) and to foreign
governments and other foreign official
institutions, as reported for its branches,
agencies and offices within the state on its
"Consolidated Report of Condition", Schedule A,
Lines 2.c., 5.b., and 7.a., which was filed with
the Federal Deposit Insurance Corporation and
other regulatory authorities, for the year 1980,
minus
The average aggregate, determined on a
quarterly basis, of such loans (other than loans of
an international banking facility), as reported by
the financial institution for its branches,
agencies and offices within the state, on the
corresponding Schedule and lines of the
Consolidated Report of Condition for the current
taxable year, provided, however, that in no case
shall the amount determined in this clause (the
subtrahend) exceed the amount determined in the
preceding clause (the minuend); and
(ii) the denominator shall be the average
aggregate, determined on a quarterly basis, of the
international banking facility's loans to banks in
foreign countries, to foreign domiciled borrowers
(except where secured primarily by real estate)
and to foreign governments and other foreign
official institutions, which were recorded in its
financial accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit
Insurance Corporation and other regulatory authorities
is altered so that the information required for
determining the floor amount is not found on Schedule
A, lines 2.c., 5.b. and 7.a., the financial institution
shall notify the Department and the Department may, by
regulations or otherwise, prescribe or authorize the
use of an alternative source for such information. The
financial institution shall also notify the Department
should its international banking facility fail to
qualify as such, in whole or in part, or should there
be any amendment or change to the Consolidated Report
of Condition, as originally filed, to the extent such
amendment or change alters the information used in
determining the floor amount.
(3) For taxable years ending on or after December 31,
2008, the business income of a financial organization shall
be apportioned to this State by multiplying such income by
a fraction, the numerator of which is its gross receipts
from sources in this State or otherwise attributable to
this State's marketplace and the denominator of which is
its gross receipts everywhere during the taxable year.
"Gross receipts" for purposes of this subparagraph (3)
means gross income, including net taxable gain on
disposition of assets, including securities and money
market instruments, when derived from transactions and
activities in the regular course of the financial
organization's trade or business. The following examples
are illustrative:
(i) Receipts from the lease or rental of real or
tangible personal property are in this State if the
property is located in this State during the rental
period. Receipts from the lease or rental of tangible
personal property that is characteristically moving
property, including, but not limited to, motor
vehicles, rolling stock, aircraft, vessels, or mobile
equipment are from sources in this State to the extent
that the property is used in this State.
(ii) Interest income, commissions, fees, gains on
disposition, and other receipts from assets in the
nature of loans that are secured primarily by real
estate or tangible personal property are from sources
in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on
disposition, and other receipts from consumer loans
that are not secured by real or tangible personal
property are from sources in this State if the debtor
is a resident of this State.
(iv) Interest income, commissions, fees, gains on
disposition, and other receipts from commercial loans
and installment obligations that are not secured by
real or tangible personal property are from sources in
this State if the proceeds of the loan are to be
applied in this State. If it cannot be determined where
the funds are to be applied, the income and receipts
are from sources in this State if the office of the
borrower from which the loan was negotiated in the
regular course of business is located in this State. If
the location of this office cannot be determined, the
income and receipts shall be excluded from the
numerator and denominator of the sales factor.
(v) Interest income, fees, gains on disposition,
service charges, merchant discount income, and other
receipts from credit card receivables are from sources
in this State if the card charges are regularly billed
to a customer in this State.
(vi) Receipts from the performance of services,
including, but not limited to, fiduciary, advisory,
and brokerage services, are in this State if the
services are received in this State within the meaning
of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers
checks and money orders are from sources in this State
if the checks and money orders are issued from a
location within this State.
(viii) Receipts from investment assets and
activities and trading assets and activities are
included in the receipts factor as follows:
(1) Interest, dividends, net gains (but not
less than zero) and other income from investment
assets and activities from trading assets and
activities shall be included in the receipts
factor. Investment assets and activities and
trading assets and activities include but are not
limited to: investment securities; trading account
assets; federal funds; securities purchased and
sold under agreements to resell or repurchase;
options; futures contracts; forward contracts;
notional principal contracts such as swaps;
equities; and foreign currency transactions. With
respect to the investment and trading assets and
activities described in subparagraphs (A) and (B)
of this paragraph, the receipts factor shall
include the amounts described in such
subparagraphs.
(A) The receipts factor shall include the
amount by which interest from federal funds
sold and securities purchased under resale
agreements exceeds interest expense on federal
funds purchased and securities sold under
repurchase agreements.
(B) The receipts factor shall include the
amount by which interest, dividends, gains and
other income from trading assets and
activities, including but not limited to
assets and activities in the matched book, in
the arbitrage book, and foreign currency
transactions, exceed amounts paid in lieu of
interest, amounts paid in lieu of dividends,
and losses from such assets and activities.
(2) The numerator of the receipts factor
includes interest, dividends, net gains (but not
less than zero), and other income from investment
assets and activities and from trading assets and
activities described in paragraph (1) of this
subsection that are attributable to this State.
(A) The amount of interest, dividends, net
gains (but not less than zero), and other
income from investment assets and activities
in the investment account to be attributed to
this State and included in the numerator is
determined by multiplying all such income from
such assets and activities by a fraction, the
numerator of which is the gross income from
such assets and activities which are properly
assigned to a fixed place of business of the
taxpayer within this State and the denominator
of which is the gross income from all such
assets and activities.
(B) The amount of interest from federal
funds sold and purchased and from securities
purchased under resale agreements and
securities sold under repurchase agreements
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (A) of
paragraph (1) of this subsection from such
funds and such securities by a fraction, the
numerator of which is the gross income from
such funds and such securities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such funds and such securities.
(C) The amount of interest, dividends,
gains, and other income from trading assets and
activities, including but not limited to
assets and activities in the matched book, in
the arbitrage book and foreign currency
transactions (but excluding amounts described
in subparagraphs (A) or (B) of this paragraph),
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (B) of
paragraph (1) of this subsection by a fraction,
the numerator of which is the gross income from
such trading assets and activities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such assets and activities.
(D) Properly assigned, for purposes of
this paragraph (2) of this subsection, means
the investment or trading asset or activity is
assigned to the fixed place of business with
which it has a preponderance of substantive
contacts. An investment or trading asset or
activity assigned by the taxpayer to a fixed
place of business without the State shall be
presumed to have been properly assigned if:
(i) the taxpayer has assigned, in the
regular course of its business, such asset
or activity on its records to a fixed place
of business consistent with federal or
state regulatory requirements;
(ii) such assignment on its records is
based upon substantive contacts of the
asset or activity to such fixed place of
business; and
(iii) the taxpayer uses such records
reflecting assignment of such assets or
activities for the filing of all state and
local tax returns for which an assignment
of such assets or activities to a fixed
place of business is required.
(E) The presumption of proper assignment
of an investment or trading asset or activity
provided in subparagraph (D) of paragraph (2)
of this subsection may be rebutted upon a
showing by the Department, supported by a
preponderance of the evidence, that the
preponderance of substantive contacts
regarding such asset or activity did not occur
at the fixed place of business to which it was
assigned on the taxpayer's records. If the
fixed place of business that has a
preponderance of substantive contacts cannot
be determined for an investment or trading
asset or activity to which the presumption in
subparagraph (D) of paragraph (2) of this
subsection does not apply or with respect to
which that presumption has been rebutted, that
asset or activity is properly assigned to the
state in which the taxpayer's commercial
domicile is located. For purposes of this
subparagraph (E), it shall be presumed,
subject to rebuttal, that taxpayer's
commercial domicile is in the state of the
United States or the District of Columbia to
which the greatest number of employees are
regularly connected with the management of the
investment or trading income or out of which
they are working, irrespective of where the
services of such employees are performed, as of
the last day of the taxable year.
(4) (Blank).
(5) (Blank).
(c-1) Federally regulated exchanges. For taxable years
ending on or after December 31, 2012, business income of a
federally regulated exchange shall, at the option of the
federally regulated exchange, be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is its business income from sources within this State, and the
denominator of which is its business income from all sources.
For purposes of this subsection, the business income within
this State of a federally regulated exchange is the sum of the
following:
(1) Receipts attributable to transactions executed on
a physical trading floor if that physical trading floor is
located in this State.
(2) Receipts attributable to all other matching,
execution, or clearing transactions, including without
limitation receipts from the provision of matching,
execution, or clearing services to another entity,
multiplied by (i) for taxable years ending on or after
December 31, 2012 but before December 31, 2013, 63.77%; and
(ii) for taxable years ending on or after December 31,
2013, 27.54%.
(3) All other receipts not governed by subparagraphs
(1) or (2) of this subsection (c-1), to the extent the
receipts would be characterized as "sales in this State"
under item (3) of subsection (a) of this Section.
"Federally regulated exchange" means (i) a "registered
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
or (C), (ii) an "exchange" or "clearing agency" within the
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
entities regulated under any successor regulatory structure to
the foregoing, and (iv) all taxpayers who are members of the
same unitary business group as a federally regulated exchange,
determined without regard to the prohibition in Section
1501(a)(27) of this Act against including in a unitary business
group taxpayers who are ordinarily required to apportion
business income under different subsections of this Section;
provided that this subparagraph (iv) shall apply only if 50% or
more of the business receipts of the unitary business group
determined by application of this subparagraph (iv) for the
taxable year are attributable to the matching, execution, or
clearing of transactions conducted by an entity described in
subparagraph (i), (ii), or (iii) of this paragraph.
In no event shall the Illinois apportionment percentage
computed in accordance with this subsection (c-1) for any
taxpayer for any tax year be less than the Illinois
apportionment percentage computed under this subsection (c-1)
for that taxpayer for the first full tax year ending on or
after December 31, 2013 for which this subsection (c-1) applied
to the taxpayer.
(d) Transportation services. For taxable years ending
before December 31, 2008, business income derived from
furnishing transportation services shall be apportioned to
this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived from
transportation by pipeline) shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the
person's
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Interstate Commerce Commission, in the case of
transportation by railroad, and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from transportation
by pipeline shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For the purposes of this paragraph, a revenue
mile is the transportation by pipeline of 1 barrel of oil,
1,000 cubic feet of gas, or of any specified quantity of
any other substance, the distance of 1 mile for a
consideration.
(3) For taxable years ending on or after December 31,
2008, business income derived from providing
transportation services other than airline services shall
be apportioned to this State by using a fraction, (a) the
numerator of which shall be (i) all receipts from any
movement or shipment of people, goods, mail, oil, gas, or
any other substance (other than by airline) that both
originates and terminates in this State, plus (ii) that
portion of the person's gross receipts from movements or
shipments of people, goods, mail, oil, gas, or any other
substance (other than by airline) that originates in one
state or jurisdiction and terminates in another state or
jurisdiction, that is determined by the ratio that the
miles traveled in this State bears to total miles
everywhere and (b) the denominator of which shall be all
revenue derived from the movement or shipment of people,
goods, mail, oil, gas, or any other substance (other than
by airline). Where a taxpayer is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall first be determined
separately for passenger miles and freight miles. Then an
average of the passenger miles fraction and the freight
miles fraction shall be weighted to reflect the taxpayer's:
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Surface Transportation Board, in the case of
transportation by railroad; and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(4) For taxable years ending on or after December 31,
2008, business income derived from furnishing airline
transportation services shall be apportioned to this State
by multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For purposes of this paragraph, a revenue mile
is the transportation of one passenger or one net ton of
freight the distance of one mile for a consideration. If a
person is engaged in the transportation of both passengers
and freight, the fraction above referred to shall be
determined by means of an average of the passenger revenue
mile fraction and the freight revenue mile fraction,
weighted to reflect the person's relative gross receipts
from passenger and freight airline transportation.
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business income
attributable to this State by any such member or members shall
be apportioned by means of the combined apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) and of
subsection (h) do not, for taxable years ending before December
31, 2008, fairly represent the extent of a person's business
activity in this State, or, for taxable years ending on or
after December 31, 2008, fairly represent the market for the
person's goods, services, or other sources of business income,
the person may petition for, or the Director may, without a
petition, permit or require, in respect of all or any part of
the person's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;
(3) The inclusion of one or more additional factors
which will fairly represent the person's business
activities or market in this State; or
(4) The employment of any other method to effectuate an
equitable allocation and apportionment of the person's
business income.
(g) Cross reference. For allocation of business income by
residents, see Section 301(a).
(h) For tax years ending on or after December 31, 1998, the
apportionment factor of persons who apportion their business
income to this State under subsection (a) shall be equal to:
(1) for tax years ending on or after December 31, 1998
and before December 31, 1999, 16 2/3% of the property
factor plus 16 2/3% of the payroll factor plus 66 2/3% of
the sales factor;
(2) for tax years ending on or after December 31, 1999
and before December 31, 2000, 8 1/3% of the property factor
plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
factor;
(3) for tax years ending on or after December 31, 2000,
the sales factor.
If, in any tax year ending on or after December 31, 1998 and
before December 31, 2000, the denominator of the payroll,
property, or sales factor is zero, the apportionment factor
computed in paragraph (1) or (2) of this subsection for that
year shall be divided by an amount equal to 100% minus the
percentage weight given to each factor whose denominator is
equal to zero.
(Source: P.A. 99-642, eff. 7-28-16; 100-201, eff. 8-18-17.)
(35 ILCS 5/710) (from Ch. 120, par. 7-710)
Sec. 710. Withholding from lottery winnings.
(a) In general.
(1) Any person making a payment to a resident or
nonresident of winnings under the Illinois Lottery Law and
not required to withhold Illinois income tax from such
payment under Subsection (b) of Section 701 of this Act
because those winnings are not subject to Federal income
tax withholding, must withhold Illinois income tax from
such payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that withholding is not required if such payment
of winnings is less than $1,000.
(2) In the case of an assignment of a lottery prize
under Section 13.1 of the Illinois Lottery Law, any person
making a payment of the purchase price after December 31,
2013, shall withhold from the amount of each payment at a
rate equal to the percentage tax rate for individuals
provided in subsection (b) of Section 201.
(3) Any person making a payment after December 31, 2019
to a resident or nonresident of winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from gambling
games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act must withhold Illinois income tax from such
payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that the person making the payment is required to
withhold under Section 3402(q) of the Internal Revenue
Code.
(b) Credit for taxes withheld. Any amount withheld under
Subsection (a) shall be a credit against the Illinois income
tax liability of the person to whom the payment of winnings was
made for the taxable year in which that person incurred an
Illinois income tax liability with respect to those winnings.
(Source: P.A. 98-496, eff. 1-1-14.)
Section 35-40. The Joliet Regional Port District Act is
amended by changing Section 5.1 as follows:
(70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
Sec. 5.1. Riverboat and casino gambling. Notwithstanding
any other provision of this Act, the District may not regulate
the operation, conduct, or navigation of any riverboat gambling
casino licensed under the Illinois Riverboat Gambling Act, and
the District may not license, tax, or otherwise levy any
assessment of any kind on any riverboat gambling casino
licensed under the Illinois Riverboat Gambling Act. The General
Assembly declares that the powers to regulate the operation,
conduct, and navigation of riverboat gambling casinos and to
license, tax, and levy assessments upon riverboat gambling
casinos are exclusive powers of the State of Illinois and the
Illinois Gaming Board as provided in the Illinois Riverboat
Gambling Act.
(Source: P.A. 87-1175.)
Section 35-45. The Consumer Installment Loan Act is amended
by changing Section 12.5 as follows:
(205 ILCS 670/12.5)
Sec. 12.5. Limited purpose branch.
(a) Upon the written approval of the Director, a licensee
may maintain a limited purpose branch for the sole purpose of
making loans as permitted by this Act. A limited purpose branch
may include an automatic loan machine. No other activity shall
be conducted at the site, including but not limited to,
accepting payments, servicing the accounts, or collections.
(b) The licensee must submit an application for a limited
purpose branch to the Director on forms prescribed by the
Director with an application fee of $300. The approval for the
limited purpose branch must be renewed concurrently with the
renewal of the licensee's license along with a renewal fee of
$300 for the limited purpose branch.
(c) The books, accounts, records, and files of the limited
purpose branch's transactions shall be maintained at the
licensee's licensed location. The licensee shall notify the
Director of the licensed location at which the books, accounts,
records, and files shall be maintained.
(d) The licensee shall prominently display at the limited
purpose branch the address and telephone number of the
licensee's licensed location.
(e) No other business shall be conducted at the site of the
limited purpose branch unless authorized by the Director.
(f) The Director shall make and enforce reasonable rules
for the conduct of a limited purpose branch.
(g) A limited purpose branch may not be located within
1,000 feet of a facility operated by an inter-track wagering
licensee or an organization licensee subject to the Illinois
Horse Racing Act of 1975, on a riverboat or in a casino subject
to the Illinois Riverboat Gambling Act, or within 1,000 feet of
the location at which the riverboat docks or within 1,000 feet
of a casino.
(Source: P.A. 90-437, eff. 1-1-98.)
Section 35-50. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
20, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1,
32.1, 36, 40, and 54.75 and by adding Sections 3.32, 3.33,
3.34, 3.35, 19.5, 34.3, and 56 as follows:
→ This transforms the state’s current three horse racing tracks into racinos: horse racing tracks that also feature casino operations. The horse racing industry, which has been in decline for years, has been pushing for this in an attempt to revive revenues. It will allow up to 1,200 gambling positions — seats in the racino where you can play card games or make bets on video gambling machines. That’s the same number of positions currently allowed in casinos under the Riverboat Gambling Act. This legislation also provides for two additional racinos to open.
(230 ILCS 5/1.2)
Sec. 1.2. Legislative intent. This Act is intended to
benefit the people of the State of Illinois by encouraging the
breeding and production of race horses, assisting economic
development and promoting Illinois tourism. The General
Assembly finds and declares it to be the public policy of the
State of Illinois to:
(a) support and enhance Illinois' horse racing industry,
which is a significant component within the agribusiness
industry;
(b) ensure that Illinois' horse racing industry remains
competitive with neighboring states;
(c) stimulate growth within Illinois' horse racing
industry, thereby encouraging new investment and development
to produce additional tax revenues and to create additional
jobs;
(d) promote the further growth of tourism;
(e) encourage the breeding of thoroughbred and
standardbred horses in this State; and
(f) ensure that public confidence and trust in the
credibility and integrity of racing operations and the
regulatory process is maintained.
(Source: P.A. 91-40, eff. 6-25-99.)
(230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
Sec. 3.11. "Organization Licensee" means any person
receiving an organization license from the Board to conduct a
race meeting or meetings. With respect only to organization
gaming, "organization licensee" includes the authorization for
an organization gaming license under subsection (a) of Section
56 of this Act.
(Source: P.A. 79-1185.)
(230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
system of wagering" means a form of wagering on the outcome of
horse races in which wagers are made in various denominations
on a horse or horses and all wagers for each race are pooled
and held by a licensee for distribution in a manner approved by
the Board. "Pari-mutuel system of wagering" shall not include
wagering on historic races. Wagers may be placed via any method
or at any location authorized under this Act.
(Source: P.A. 96-762, eff. 8-25-09.)
(230 ILCS 5/3.32 new)
Sec. 3.32. Gross receipts. "Gross receipts" means the total
amount of money exchanged for the purchase of chips, tokens, or
electronic cards by riverboat or casino patrons or organization
gaming patrons.
(230 ILCS 5/3.33 new)
Sec. 3.33. Adjusted gross receipts. "Adjusted gross
receipts" means the gross receipts less winnings paid to
wagerers.
(230 ILCS 5/3.34 new)
Sec. 3.34. Organization gaming facility. "Organization
gaming facility" means that portion of an organization
licensee's racetrack facilities at which gaming authorized
under Section 7.7 of the Illinois Gambling Act is conducted.
(230 ILCS 5/3.35 new)
Sec. 3.35. Organization gaming license. "Organization
gaming license" means a license issued by the Illinois Gaming
Board under Section 7.7 of the Illinois Gambling Act
authorizing gaming pursuant to that Section at an organization
gaming facility.
(230 ILCS 5/6) (from Ch. 8, par. 37-6)
Sec. 6. Restrictions on Board members.
(a) No person shall be appointed a member of the Board or
continue to be a member of the Board if the person or any
member of their immediate family is a member of the Board of
Directors, employee, or financially interested in any of the
following: (i) any licensee or other person who has applied for
racing dates to the Board, or the operations thereof including,
but not limited to, concessions, data processing, track
maintenance, track security, and pari-mutuel operations,
located, scheduled or doing business within the State of
Illinois, (ii) any race horse competing at a meeting under the
Board's jurisdiction, or (iii) any licensee under the Illinois
Gambling Act. No person shall be appointed a member of the
(b) No person shall be a member of the Board who is not of
good moral character or who has been convicted of, or is under
indictment for, a felony under the laws of Illinois or any
other state, or the United States.
(c) No member of the Board or employee shall engage in any
political activity.
For the purposes of this subsection (c):
"Political" means any activity in support of or in
connection with any campaign for State or local elective office
or any political organization, but does not include activities
(i) relating to the support or opposition of any executive,
legislative, or administrative action (as those terms are
defined in Section 2 of the Lobbyist Registration Act), (ii)
relating to collective bargaining, or (iii) that are otherwise
in furtherance of the person's official State duties or
governmental and public service functions.
"Political organization" means a party, committee,
association, fund, or other organization (whether or not
incorporated) that is required to file a statement of
organization with the State Board of Elections or county clerk
under Section 9-3 of the Election Code, but only with regard to
those activities that require filing with the State Board of
Elections or county clerk.
(d) Board members and employees may not engage in
communications or any activity that may cause or have the
appearance of causing a conflict of interest. A conflict of
interest exists if a situation influences or creates the
appearance that it may influence judgment or performance of
regulatory duties and responsibilities. This prohibition shall
extend to any act identified by Board action that, in the
judgment of the Board, could represent the potential for or the
appearance of a conflict of interest.
(e) Board members and employees may not accept any gift,
gratuity, service, compensation, travel, lodging, or thing of
value, with the exception of unsolicited items of an incidental
nature, from any person, corporation, limited liability
company, or entity doing business with the Board.
(f) A Board member or employee shall not use or attempt to
use his or her official position to secure, or attempt to
secure, any privilege, advantage, favor, or influence for
himself or herself or others. No Board member or employee,
within a period of one year immediately preceding nomination by
the Governor or employment, shall have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee or a licensee under the
Illinois Gambling Act. In addition, all Board members and
employees are subject to the restrictions set forth in Section
5-45 of the State Officials and Employees Ethics Act.
(Source: P.A. 89-16, eff. 5-30-95.)
(230 ILCS 5/9) (from Ch. 8, par. 37-9)
Sec. 9. The Board shall have all powers necessary and
proper to fully and effectively execute the provisions of this
Act, including, but not limited to, the following:
(a) The Board is vested with jurisdiction and supervision
over all race meetings in this State, over all licensees doing
business in this State, over all occupation licensees, and over
all persons on the facilities of any licensee. Such
jurisdiction shall include the power to issue licenses to the
Illinois Department of Agriculture authorizing the pari-mutuel
system of wagering on harness and Quarter Horse races held (1)
at the Illinois State Fair in Sangamon County, and (2) at the
DuQuoin State Fair in Perry County. The jurisdiction of the
Board shall also include the power to issue licenses to county
fairs which are eligible to receive funds pursuant to the
Agricultural Fair Act, as now or hereafter amended, or their
agents, authorizing the pari-mutuel system of wagering on horse
races conducted at the county fairs receiving such licenses.
Such licenses shall be governed by subsection (n) of this
Section.
Upon application, the Board shall issue a license to the
Illinois Department of Agriculture to conduct harness and
Quarter Horse races at the Illinois State Fair and at the
DuQuoin State Fairgrounds during the scheduled dates of each
fair. The Board shall not require and the Department of
Agriculture shall be exempt from the requirements of Sections
15.3, 18 and 19, paragraphs (a)(2), (b), (c), (d), (e), (e-5),
(e-10), (f), (g), and (h) of Section 20, and Sections 21, 24
and 25. The Board and the Department of Agriculture may extend
any or all of these exemptions to any contractor or agent
engaged by the Department of Agriculture to conduct its race
meetings when the Board determines that this would best serve
the public interest and the interest of horse racing.
Notwithstanding any provision of law to the contrary, it
shall be lawful for any licensee to operate pari-mutuel
wagering or contract with the Department of Agriculture to
operate pari-mutuel wagering at the DuQuoin State Fairgrounds
or for the Department to enter into contracts with a licensee,
employ its owners, employees or agents and employ such other
occupation licensees as the Department deems necessary in
connection with race meetings and wagerings.
(b) The Board is vested with the full power to promulgate
reasonable rules and regulations for the purpose of
administering the provisions of this Act and to prescribe
reasonable rules, regulations and conditions under which all
horse race meetings or wagering in the State shall be
conducted. Such reasonable rules and regulations are to provide
for the prevention of practices detrimental to the public
interest and to promote the best interests of horse racing and
to impose penalties for violations thereof.
(c) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter the
facilities and other places of business of any licensee to
determine whether there has been compliance with the provisions
of this Act and its rules and regulations.
(d) The Board, and any person or persons to whom it
delegates this power, is vested with the authority to
investigate alleged violations of the provisions of this Act,
its reasonable rules and regulations, orders and final
decisions; the Board shall take appropriate disciplinary
action against any licensee or occupation licensee for
violation thereof or institute appropriate legal action for the
enforcement thereof.
(e) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any race
meeting or the facilities of any licensee, or any part thereof,
any occupation licensee or any other individual whose conduct
or reputation is such that his presence on those facilities
may, in the opinion of the Board, call into question the
honesty and integrity of horse racing or wagering or interfere
with the orderly conduct of horse racing or wagering; provided,
however, that no person shall be excluded or ejected from the
facilities of any licensee solely on the grounds of race,
color, creed, national origin, ancestry, or sex. The power to
eject or exclude an occupation licensee or other individual may
be exercised for just cause by the licensee or the Board,
subject to subsequent hearing by the Board as to the propriety
of said exclusion.
(f) The Board is vested with the power to acquire,
establish, maintain and operate (or provide by contract to
maintain and operate) testing laboratories and related
facilities, for the purpose of conducting saliva, blood, urine
and other tests on the horses run or to be run in any horse race
meeting, including races run at county fairs, and to purchase
all equipment and supplies deemed necessary or desirable in
connection with any such testing laboratories and related
facilities and all such tests.
(g) The Board may require that the records, including
financial or other statements of any licensee or any person
affiliated with the licensee who is involved directly or
indirectly in the activities of any licensee as regulated under
this Act to the extent that those financial or other statements
relate to such activities be kept in such manner as prescribed
by the Board, and that Board employees shall have access to
those records during reasonable business hours. Within 120 days
of the end of its fiscal year, each licensee shall transmit to
the Board an audit of the financial transactions and condition
of the licensee's total operations. All audits shall be
conducted by certified public accountants. Each certified
public accountant must be registered in the State of Illinois
under the Illinois Public Accounting Act. The compensation for
each certified public accountant shall be paid directly by the
licensee to the certified public accountant. A licensee shall
also submit any other financial or related information the
Board deems necessary to effectively administer this Act and
all rules, regulations, and final decisions promulgated under
this Act.
(h) The Board shall name and appoint in the manner provided
by the rules and regulations of the Board: an Executive
Director; a State director of mutuels; State veterinarians and
representatives to take saliva, blood, urine and other tests on
horses; licensing personnel; revenue inspectors; and State
seasonal employees (excluding admission ticket sellers and
mutuel clerks). All of those named and appointed as provided in
this subsection shall serve during the pleasure of the Board;
their compensation shall be determined by the Board and be paid
in the same manner as other employees of the Board under this
Act.
(i) The Board shall require that there shall be 3 stewards
at each horse race meeting, at least 2 of whom shall be named
and appointed by the Board. Stewards appointed or approved by
the Board, while performing duties required by this Act or by
the Board, shall be entitled to the same rights and immunities
as granted to Board members and Board employees in Section 10
of this Act.
(j) The Board may discharge any Board employee who fails or
refuses for any reason to comply with the rules and regulations
of the Board, or who, in the opinion of the Board, is guilty of
fraud, dishonesty or who is proven to be incompetent. The Board
shall have no right or power to determine who shall be
officers, directors or employees of any licensee, or their
salaries except the Board may, by rule, require that all or any
officials or employees in charge of or whose duties relate to
the actual running of races be approved by the Board.
(k) The Board is vested with the power to appoint delegates
to execute any of the powers granted to it under this Section
for the purpose of administering this Act and any rules or
regulations promulgated in accordance with this Act.
(l) The Board is vested with the power to impose civil
penalties of up to $5,000 against an individual and up to
$10,000 against a licensee for each violation of any provision
of this Act, any rules adopted by the Board, any order of the
Board or any other action which, in the Board's discretion, is
a detriment or impediment to horse racing or wagering.
Beginning on the date when any organization licensee begins
conducting gaming pursuant to an organization gaming license
issued under the Illinois Gambling Act, the power granted to
the Board pursuant to this subsection (l) shall authorize the
Board to impose penalties of up to $10,000 against an
individual and up to $25,000 against a licensee. All such civil
penalties shall be deposited into the Horse Racing Fund.
(m) The Board is vested with the power to prescribe a form
to be used by licensees as an application for employment for
employees of each licensee.
(n) The Board shall have the power to issue a license to
any county fair, or its agent, authorizing the conduct of the
pari-mutuel system of wagering. The Board is vested with the
full power to promulgate reasonable rules, regulations and
conditions under which all horse race meetings licensed
pursuant to this subsection shall be held and conducted,
including rules, regulations and conditions for the conduct of
the pari-mutuel system of wagering. The rules, regulations and
conditions shall provide for the prevention of practices
detrimental to the public interest and for the best interests
of horse racing, and shall prescribe penalties for violations
thereof. Any authority granted the Board under this Act shall
extend to its jurisdiction and supervision over county fairs,
or their agents, licensed pursuant to this subsection. However,
the Board may waive any provision of this Act or its rules or
regulations which would otherwise apply to such county fairs or
their agents.
(o) Whenever the Board is authorized or required by law to
consider some aspect of criminal history record information for
the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in
conformance with the requirements of Section 2605-400 of the
Department of State Police Law (20 ILCS 2605/2605-400), the
Department of State Police is authorized to furnish, pursuant
to positive identification, such information contained in
State files as is necessary to fulfill the request.
(p) To insure the convenience, comfort, and wagering
accessibility of race track patrons, to provide for the
maximization of State revenue, and to generate increases in
purse allotments to the horsemen, the Board shall require any
licensee to staff the pari-mutuel department with adequate
personnel.
(Source: P.A. 97-1060, eff. 8-24-12.)
(230 ILCS 5/15) (from Ch. 8, par. 37-15)
Sec. 15. (a) The Board shall, in its discretion, issue
occupation licenses to horse owners, trainers, harness
drivers, jockeys, agents, apprentices, grooms, stable foremen,
exercise persons, veterinarians, valets, blacksmiths,
concessionaires and others designated by the Board whose work,
in whole or in part, is conducted upon facilities within the
State. Such occupation licenses will be obtained prior to the
persons engaging in their vocation upon such facilities. The
Board shall not license pari-mutuel clerks, parking
attendants, security guards and employees of concessionaires.
No occupation license shall be required of any person who works
at facilities within this State as a pari-mutuel clerk, parking
attendant, security guard or as an employee of a
concessionaire. Concessionaires of the Illinois State Fair and
DuQuoin State Fair and employees of the Illinois Department of
Agriculture shall not be required to obtain an occupation
license by the Board.
(b) Each application for an occupation license shall be on
forms prescribed by the Board. Such license, when issued, shall
be for the period ending December 31 of each year, except that
the Board in its discretion may grant 3-year licenses. The
application shall be accompanied by a fee of not more than $25
per year or, in the case of 3-year occupation license
applications, a fee of not more than $60. Each applicant shall
set forth in the application his full name and address, and if
he had been issued prior occupation licenses or has been
licensed in any other state under any other name, such name,
his age, whether or not a permit or license issued to him in
any other state has been suspended or revoked and if so whether
such suspension or revocation is in effect at the time of the
application, and such other information as the Board may
require. Fees for registration of stable names shall not exceed
$50.00. Beginning on the date when any organization licensee
begins conducting gaming pursuant to an organization gaming
license issued under the Illinois Gambling Act, the fee for
registration of stable names shall not exceed $150, and the
application fee for an occupation license shall not exceed $75,
per year or, in the case of a 3-year occupation license
application, the fee shall not exceed $180.
(c) The Board may in its discretion refuse an occupation
license to any person:
(1) who has been convicted of a crime;
(2) who is unqualified to perform the duties required
of such applicant;
(3) who fails to disclose or states falsely any
information called for in the application;
(4) who has been found guilty of a violation of this
Act or of the rules and regulations of the Board; or
(5) whose license or permit has been suspended, revoked
or denied for just cause in any other state.
(d) The Board may suspend or revoke any occupation license:
(1) for violation of any of the provisions of this Act;
or
(2) for violation of any of the rules or regulations of
the Board; or
(3) for any cause which, if known to the Board, would
have justified the Board in refusing to issue such
occupation license; or
(4) for any other just cause.
(e) Each applicant shall submit his or her fingerprints
to the Department of State Police in the form and manner
prescribed by the Department of State Police. These
fingerprints shall be checked against the fingerprint records
now and hereafter filed in the Department of State Police and
Federal Bureau of Investigation criminal history records
databases. The Department of State Police shall charge a fee
for conducting the criminal history records check, which shall
be deposited in the State Police Services Fund and shall not
exceed the actual cost of the records check. The Department of
State Police shall furnish, pursuant to positive
identification, records of conviction to the Board. Each
applicant for licensure shall submit with his occupation
license application, on forms provided by the Board, 2 sets of
his fingerprints. All such applicants shall appear in person at
the location designated by the Board for the purpose of
submitting such sets of fingerprints; however, with the prior
approval of a State steward, an applicant may have such sets of
fingerprints taken by an official law enforcement agency and
submitted to the Board.
(f) The Board may, in its discretion, issue an occupation
license without submission of fingerprints if an applicant has
been duly licensed in another recognized racing jurisdiction
after submitting fingerprints that were subjected to a Federal
Bureau of Investigation criminal history background check in
that jurisdiction.
(g) Beginning on the date when any organization licensee
begins conducting gaming pursuant to an organization gaming
license issued under the Illinois Gambling Act, the Board may
charge each applicant a reasonable nonrefundable fee to defray
the costs associated with the background investigation
conducted by the Board. This fee shall be exclusive of any
other fee or fees charged in connection with an application for
and, if applicable, the issuance of, an organization gaming
license. If the costs of the investigation exceed the amount of
the fee charged, the Board shall immediately notify the
applicant of the additional amount owed, payment of which must
be submitted to the Board within 7 days after such
notification. All information, records, interviews, reports,
statements, memoranda, or other data supplied to or used by the
Board in the course of its review or investigation of an
applicant for a license or renewal under this Act shall be
privileged, strictly confidential, and shall be used only for
the purpose of evaluating an applicant for a license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence, nor discoverable, in any action of any kind in any
court or before any tribunal, board, agency, or person, except
for any action deemed necessary by the Board.
(Source: P.A. 93-418, eff. 1-1-04.)
(230 ILCS 5/18) (from Ch. 8, par. 37-18)
Sec. 18. (a) Together with its application, each applicant
for racing dates shall deliver to the Board a certified check
or bank draft payable to the order of the Board for $1,000. In
the event the applicant applies for racing dates in 2 or 3
successive calendar years as provided in subsection (b) of
Section 21, the fee shall be $2,000. Filing fees shall not be
refunded in the event the application is denied. Beginning on
the date when any organization licensee begins conducting
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act, the application fee for racing dates
imposed by this subsection (a) shall be $10,000 and the
application fee for racing dates in 2 or 3 successive calendar
years as provided in subsection (b) of Section 21 shall be
$20,000. All filing fees shall be deposited into the Horse
Racing Fund.
(b) In addition to the filing fee imposed by subsection (a)
each organization licensee shall pay a license fee of $100 for
each racing program on which its daily pari-mutuel handle is
$400,000 or more but less than $700,000, and a license fee of
$200 for each racing program on which its daily pari-mutuel
handle is $700,000 or more. The additional fees required to be
paid under this Section by this amendatory Act of 1982 shall be
remitted by the organization licensee to the Illinois Racing
Board with each day's graduated privilege tax or pari-mutuel
tax and breakage as provided under Section 27. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the license fee imposed by this
subsection (b) shall be $200 for each racing program on which
the organization licensee's daily pari-mutuel handle is
$100,000 or more, but less than $400,000, and the license fee
imposed by this subsection (b) shall be $400 for each racing
program on which the organization licensee's daily pari-mutuel
handle is $400,000 or more.
(c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
Municipal Code," approved May 29, 1961, as now or hereafter
(Source: P.A. 97-1060, eff. 8-24-12.)
(230 ILCS 5/19) (from Ch. 8, par. 37-19)
Sec. 19. (a) No organization license may be granted to
conduct a horse race meeting:
(1) except as provided in subsection (c) of Section 21
of this Act, to any person at any place within 35 miles of
any other place licensed by the Board to hold a race
meeting on the same date during the same hours, the mileage
measurement used in this subsection (a) shall be certified
to the Board by the Bureau of Systems and Services in the
Illinois Department of Transportation as the most commonly
used public way of vehicular travel;
(2) to any person in default in the payment of any
obligation or debt due the State under this Act, provided
no applicant shall be deemed in default in the payment of
any obligation or debt due to the State under this Act as
long as there is pending a hearing of any kind relevant to
such matter;
(3) to any person who has been convicted of the
violation of any law of the United States or any State law
which provided as all or part of its penalty imprisonment
in any penal institution; to any person against whom there
is pending a Federal or State criminal charge; to any
person who is or has been connected with or engaged in the
operation of any illegal business; to any person who does
not enjoy a general reputation in his community of being an
honest, upright, law-abiding person; provided that none of
the matters set forth in this subparagraph (3) shall make
any person ineligible to be granted an organization license
if the Board determines, based on circumstances of any such
case, that the granting of a license would not be
detrimental to the interests of horse racing and of the
public;
(4) to any person who does not at the time of
application for the organization license own or have a
contract or lease for the possession of a finished race
track suitable for the type of racing intended to be held
by the applicant and for the accommodation of the public.
(b) (Blank) Horse racing on Sunday shall be prohibited
(c) If any person is ineligible to receive an organization
license because of any of the matters set forth in subsection
(a) (2) or subsection (a) (3) of this Section, any other or
separate person that either (i) controls, directly or
indirectly, such ineligible person or (ii) is controlled,
directly or indirectly, by such ineligible person or by a
person which controls, directly or indirectly, such ineligible
person shall also be ineligible.
(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
(230 ILCS 5/19.5 new)
Sec. 19.5. Standardbred racetrack in Cook County.
Notwithstanding anything in this Act to the contrary, in
addition to organization licenses issued by the Board on the
effective date of this amendatory Act of the 101st General
Assembly, the Board shall issue an organization license limited
to standardbred racing to a racetrack located in one of the
following townships of Cook County: Bloom, Bremen, Calumet,
Orland, Rich, Thornton, or Worth. This additional organization
license shall not be issued within a 35-mile radius of another
organization license issued by the Board on the effective date
of this amendatory Act of the 101st General Assembly, unless
the person having operating control of such racetrack has given
written consent to the organization licensee applicant, which
consent must be filed with the Board at or prior to the time
application is made. The organization license shall be granted
upon application, and the licensee shall have all of the
current and future rights of existing Illinois racetracks,
including, but not limited to, the ability to obtain an
inter-track wagering license, the ability to obtain
inter-track wagering location licenses, the ability to obtain
an organization gaming license pursuant to the Illinois
Gambling Act with 1,200 gaming positions, and the ability to
offer Internet wagering on horse racing.
(230 ILCS 5/20) (from Ch. 8, par. 37-20)
Sec. 20. (a) Any person desiring to conduct a horse race
meeting may apply to the Board for an organization license. The
application shall be made on a form prescribed and furnished by
the Board. The application shall specify:
(1) the dates on which it intends to conduct the horse
race meeting, which dates shall be provided under Section
21;
(2) the hours of each racing day between which it
intends to hold or conduct horse racing at such meeting;
(3) the location where it proposes to conduct the
meeting; and
(4) any other information the Board may reasonably
require.
(b) A separate application for an organization license
shall be filed for each horse race meeting which such person
proposes to hold. Any such application, if made by an
individual, or by any individual as trustee, shall be signed
and verified under oath by such individual. If the application
is made by individuals, then it shall be signed and verified
under oath by at least 2 of the individuals; if the application
is made by or a partnership, it shall be signed and verified
corporation, a corporate trustee, a limited liability company,
or any other entity, it shall be signed by an authorized
officer, a partner, a member, or a manager, as the case may be,
of the entity the president and attested by the secretary or
(c) The application shall specify:
(1) the name of the persons, association, trust, or
corporation making such application; and
(2) the principal post office address of the applicant;
(3) if the applicant is a trustee, the names and
addresses of the beneficiaries; if the applicant is a
corporation, the names and post office addresses of all
officers, stockholders and directors; or if such
stockholders hold stock as a nominee or fiduciary, the
names and post office addresses of the parties these
beneficial owners thereof or who are beneficially
interested therein; and if the applicant is a partnership,
the names and post office addresses of all partners,
general or limited; if the applicant is a limited liability
company, the names and addresses of the manager and
members; and if the applicant is any other entity, the
names and addresses of all officers or other authorized
persons of the entity corporation, the name of the state of
(d) The applicant shall execute and file with the Board a
good faith affirmative action plan to recruit, train, and
upgrade minorities in all classifications within the
association.
(e) With such application there shall be delivered to the
Board a certified check or bank draft payable to the order of
the Board for an amount equal to $1,000. All applications for
the issuance of an organization license shall be filed with the
Board before August 1 of the year prior to the year for which
application is made and shall be acted upon by the Board at a
meeting to be held on such date as shall be fixed by the Board
during the last 15 days of September of such prior year. At
such meeting, the Board shall announce the award of the racing
meets, live racing schedule, and designation of host track to
the applicants and its approval or disapproval of each
application. No announcement shall be considered binding until
a formal order is executed by the Board, which shall be
executed no later than October 15 of that prior year. Absent
the agreement of the affected organization licensees, the Board
shall not grant overlapping race meetings to 2 or more tracks
that are within 100 miles of each other to conduct the
thoroughbred racing.
(e-1) The Board shall award standardbred racing dates to
organization licensees with an organization gaming license
pursuant to the following schedule:
(1) For the first calendar year of operation of
gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, when a
single entity requests standardbred racing dates, the
Board shall award no fewer than 100 days of racing. The
100-day requirement may be reduced to no fewer than 80 days
if no dates are requested for the first 3 months of a
calendar year. If more than one entity requests
standardbred racing dates, the Board shall award no fewer
than 140 days of racing between the applicants.
(2) For the second calendar year of operation of
gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, when a
single entity requests standardbred racing dates, the
Board shall award no fewer than 100 days of racing. The
100-day requirement may be reduced to no fewer than 80 days
if no dates are requested for the first 3 months of a
calendar year. If more than one entity requests
standardbred racing dates, the Board shall award no fewer
than 160 days of racing between the applicants.
(3) For the third calendar year of operation of
gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, and each
calendar year thereafter, when a single entity requests
standardbred racing dates, the Board shall award no fewer
than 120 days of racing. The 120-day requirement may be
reduced to no fewer than 100 days if no dates are requested
for the first 3 months of a calendar year. If more than one
entity requests standardbred racing dates, the Board shall
award no fewer than 200 days of racing between the
applicants.
An organization licensee shall apply for racing dates
pursuant to this subsection (e-1). In awarding racing dates
under this subsection (e-1), the Board shall have the
discretion to allocate those standardbred racing dates among
these organization licensees.
(e-2) The Board shall award thoroughbred racing days to
Cook County organization licensees pursuant to the following
schedule:
(1) During the first year in which only one
organization licensee is awarded an organization gaming
license, the Board shall award no fewer than 110 days of
racing.
During the second year in which only one organization
licensee is awarded an organization gaming license, the
Board shall award no fewer than 115 racing days.
During the third year and every year thereafter, in
which only one organization licensee is awarded an
organization gaming license, the Board shall award no fewer
than 120 racing days.
(2) During the first year in which 2 organization
licensees are awarded an organization gaming license, the
Board shall award no fewer than 139 total racing days.
During the second year in which 2 organization
licensees are awarded an organization gaming license, the
Board shall award no fewer than 160 total racing days.
During the third year and every year thereafter in
which 2 organization licensees are awarded an organization
gaming license, the Board shall award no fewer than 174
total racing days.
A Cook County organization licensee shall apply for racing
dates pursuant to this subsection (e-2). In awarding racing
dates under this subsection (e-2), the Board shall have the
discretion to allocate those thoroughbred racing dates among
these Cook County organization licensees.
(e-3) In awarding racing dates for calendar year 2020 and
thereafter in connection with a racetrack in Madison County,
the Board shall award racing dates and such organization
licensee shall run at least 700 thoroughbred races at the
racetrack in Madison County each year.
Notwithstanding Section 7.7 of the Illinois Gambling Act or
any provision of this Act other than subsection (e-4.5), for
each calendar year for which an organization gaming licensee
located in Madison County requests racing dates resulting in
less than 700 live thoroughbred races at its racetrack
facility, the organization gaming licensee may not conduct
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act for the calendar year of such
requested live races.
(e-4) Notwithstanding the provisions of Section 7.7 of the
Illinois Gambling Act or any provision of this Act other than
subsections (e-3) and (e-4.5), for each calendar year for which
an organization gaming licensee requests thoroughbred racing
dates which results in a number of live races under its
organization license that is less than the total number of live
races which it conducted in 2017 at its racetrack facility, the
organization gaming licensee may not conduct gaming pursuant to
its organization gaming license for the calendar year of such
requested live races.
(e-4.1) Notwithstanding the provisions of Section 7.7 of
the Illinois Gambling Act or any provision of this Act other
than subsections (e-3) and (e-4.5), for each calendar year for
which an organization licensee requests racing dates for
standardbred racing which results in a number of live races
that is less than the total number of live races required in
subsection (e-1), the organization gaming licensee may not
conduct gaming pursuant to its organization gaming license for
the calendar year of such requested live races.
(e-4.5) The Board shall award the minimum live racing
guarantees contained in subsections (e-1), (e-2), and (e-3) to
ensure that each organization licensee shall individually run a
sufficient number of races per year to qualify for an
organization gaming license under this Act. The General
Assembly finds that the minimum live racing guarantees
contained in subsections (e-1), (e-2), and (e-3) are in the
best interest of the sport of horse racing, and that such
guarantees may only be reduced in the calendar year in which
they will be conducted in the limited circumstances described
in this subsection. The Board may decrease the number of racing
days without affecting an organization licensee's ability to
conduct gaming pursuant to an organization gaming license
issued under the Illinois Gambling Act only if the Board
determines, after notice and hearing, that:
(i) a decrease is necessary to maintain a sufficient
number of betting interests per race to ensure the
integrity of racing;
(ii) there are unsafe track conditions due to weather
or acts of God;
(iii) there is an agreement between an organization
licensee and the breed association that is applicable to
the involved live racing guarantee, such association
representing either the largest number of thoroughbred
owners and trainers or the largest number of standardbred
owners, trainers and drivers who race horses at the
involved organization licensee's racing meeting, so long
as the agreement does not compromise the integrity of the
sport of horse racing; or
(iv) the horse population or purse levels are
insufficient to provide the number of racing opportunities
otherwise required in this Act.
In decreasing the number of racing dates in accordance with
this subsection, the Board shall hold a hearing and shall
provide the public and all interested parties notice and an
opportunity to be heard. The Board shall accept testimony from
all interested parties, including any association representing
owners, trainers, jockeys, or drivers who will be affected by
the decrease in racing dates. The Board shall provide a written
explanation of the reasons for the decrease and the Board's
findings. The written explanation shall include a listing and
content of all communication between any party and any Illinois
Racing Board member or staff that does not take place at a
public meeting of the Board.
(e-5) In reviewing an application for the purpose of
granting an organization license consistent with the best
interests of the public and the sport of horse racing, the
Board shall consider:
(1) the character, reputation, experience, and
financial integrity of the applicant and of any other
separate person that either:
(i) controls the applicant, directly or
indirectly, or
(ii) is controlled, directly or indirectly, by
that applicant or by a person who controls, directly or
indirectly, that applicant;
(2) the applicant's facilities or proposed facilities
for conducting horse racing;
(3) the total revenue without regard to Section 32.1 to
be derived by the State and horsemen from the applicant's
conducting a race meeting;
(4) the applicant's good faith affirmative action plan
to recruit, train, and upgrade minorities in all employment
classifications;
(5) the applicant's financial ability to purchase and
maintain adequate liability and casualty insurance;
(6) the applicant's proposed and prior year's
promotional and marketing activities and expenditures of
the applicant associated with those activities;
(7) an agreement, if any, among organization licensees
as provided in subsection (b) of Section 21 of this Act;
and
(8) the extent to which the applicant exceeds or meets
other standards for the issuance of an organization license
that the Board shall adopt by rule.
In granting organization licenses and allocating dates for
horse race meetings, the Board shall have discretion to
determine an overall schedule, including required simulcasts
of Illinois races by host tracks that will, in its judgment, be
conducive to the best interests of the public and the sport of
horse racing.
(e-10) The Illinois Administrative Procedure Act shall
apply to administrative procedures of the Board under this Act
for the granting of an organization license, except that (1)
notwithstanding the provisions of subsection (b) of Section
10-40 of the Illinois Administrative Procedure Act regarding
cross-examination, the Board may prescribe rules limiting the
right of an applicant or participant in any proceeding to award
an organization license to conduct cross-examination of
witnesses at that proceeding where that cross-examination
would unduly obstruct the timely award of an organization
license under subsection (e) of Section 20 of this Act; (2) the
provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded
under this Act; (3) notwithstanding the provisions of
subsection (a) of Section 10-60 of the Illinois Administrative
Procedure Act regarding ex parte communications, the Board may
prescribe rules allowing ex parte communications with
applicants or participants in a proceeding to award an
organization license where conducting those communications
would be in the best interest of racing, provided all those
communications are made part of the record of that proceeding
pursuant to subsection (c) of Section 10-60 of the Illinois
Administrative Procedure Act; (4) the provisions of Section 14a
of this Act and the rules of the Board promulgated under that
Section shall apply instead of the provisions of Article 10 of
the Illinois Administrative Procedure Act regarding
administrative law judges; and (5) the provisions of subsection
(d) of Section 10-65 of the Illinois Administrative Procedure
Act that prevent summary suspension of a license pending
revocation or other action shall not apply.
(f) The Board may allot racing dates to an organization
licensee for more than one calendar year but for no more than 3
successive calendar years in advance, provided that the Board
shall review such allotment for more than one calendar year
prior to each year for which such allotment has been made. The
granting of an organization license to a person constitutes a
privilege to conduct a horse race meeting under the provisions
of this Act, and no person granted an organization license
shall be deemed to have a vested interest, property right, or
future expectation to receive an organization license in any
subsequent year as a result of the granting of an organization
license. Organization licenses shall be subject to revocation
if the organization licensee has violated any provision of this
Act or the rules and regulations promulgated under this Act or
has been convicted of a crime or has failed to disclose or has
stated falsely any information called for in the application
for an organization license. Any organization license
revocation proceeding shall be in accordance with Section 16
regarding suspension and revocation of occupation licenses.
(f-5) If, (i) an applicant does not file an acceptance of
the racing dates awarded by the Board as required under part
(1) of subsection (h) of this Section 20, or (ii) an
organization licensee has its license suspended or revoked
under this Act, the Board, upon conducting an emergency hearing
as provided for in this Act, may reaward on an emergency basis
pursuant to rules established by the Board, racing dates not
accepted or the racing dates associated with any suspension or
revocation period to one or more organization licensees, new
applicants, or any combination thereof, upon terms and
conditions that the Board determines are in the best interest
of racing, provided, the organization licensees or new
applicants receiving the awarded racing dates file an
acceptance of those reawarded racing dates as required under
paragraph (1) of subsection (h) of this Section 20 and comply
with the other provisions of this Act. The Illinois
Administrative Procedure Act shall not apply to the
administrative procedures of the Board in conducting the
emergency hearing and the reallocation of racing dates on an
emergency basis.
(g) (Blank).
(h) The Board shall send the applicant a copy of its
formally executed order by certified mail addressed to the
applicant at the address stated in his application, which
notice shall be mailed within 5 days of the date the formal
order is executed.
Each applicant notified shall, within 10 days after receipt
of the final executed order of the Board awarding racing dates:
(1) file with the Board an acceptance of such award in
the form prescribed by the Board;
(2) pay to the Board an additional amount equal to $110
for each racing date awarded; and
(3) file with the Board the bonds required in Sections
21 and 25 at least 20 days prior to the first day of each
race meeting.
Upon compliance with the provisions of paragraphs (1), (2), and
(3) of this subsection (h), the applicant shall be issued an
organization license.
If any applicant fails to comply with this Section or fails
to pay the organization license fees herein provided, no
organization license shall be issued to such applicant.
(Source: P.A. 97-333, eff. 8-12-11.)
(230 ILCS 5/21) (from Ch. 8, par. 37-21)
Sec. 21. (a) Applications for organization licenses must be
filed with the Board at a time and place prescribed by the
rules and regulations of the Board. The Board shall examine the
applications within 21 days after the date allowed for filing
with respect to their conformity with this Act and such rules
and regulations as may be prescribed by the Board. If any
application does not comply with this Act or the rules and
regulations prescribed by the Board, such application may be
rejected and an organization license refused to the applicant,
or the Board may, within 21 days of the receipt of such
application, advise the applicant of the deficiencies of the
application under the Act or the rules and regulations of the
Board, and require the submittal of an amended application
within a reasonable time determined by the Board; and upon
submittal of the amended application by the applicant, the
Board may consider the application consistent with the process
described in subsection (e-5) of Section 20 of this Act. If it
is found to be in compliance with this Act and the rules and
regulations of the Board, the Board may then issue an
organization license to such applicant.
(b) The Board may exercise discretion in granting racing
dates to qualified applicants different from those requested by
the applicants in their applications. However, if all eligible
applicants for organization licenses whose tracks are located
within 100 miles of each other execute and submit to the Board
a written agreement among such applicants as to the award of
racing dates, including where applicable racing programs, for
up to 3 consecutive years, then subject to annual review of
each applicant's compliance with Board rules and regulations,
provisions of this Act and conditions contained in annual dates
orders issued by the Board, the Board may grant such dates and
programs to such applicants as so agreed by them if the Board
determines that the grant of these racing dates is in the best
interests of racing. The Board shall treat any such agreement
as the agreement signatories' joint and several application for
racing dates during the term of the agreement.
(c) Where 2 or more applicants propose to conduct horse
race meetings within 35 miles of each other, as certified to
the Board under Section 19 (a) (1) of this Act, on conflicting
dates, the Board may determine and grant the number of racing
days to be awarded to the several applicants in accordance with
the provisions of subsection (e-5) of Section 20 of this Act.
(d) (Blank).
(e) Prior to the issuance of an organization license, the
applicant shall file with the Board a bond payable to the State
of Illinois in the sum of $200,000, executed by the applicant
and a surety company or companies authorized to do business in
this State, and conditioned upon the payment by the
organization licensee of all taxes due under Section 27, other
monies due and payable under this Act, all purses due and
payable, and that the organization licensee will upon
presentation of the winning ticket or tickets distribute all
sums due to the patrons of pari-mutuel pools. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the amount of the bond required under
this subsection (e) shall be $500,000.
(f) Each organization license shall specify the person to
whom it is issued, the dates upon which horse racing is
permitted, and the location, place, track, or enclosure where
the horse race meeting is to be held.
(g) Any person who owns one or more race tracks within the
State may seek, in its own name, a separate organization
license for each race track.
(h) All racing conducted under such organization license is
subject to this Act and to the rules and regulations from time
to time prescribed by the Board, and every such organization
license issued by the Board shall contain a recital to that
effect.
(i) Each such organization licensee may provide that at
least one race per day may be devoted to the racing of quarter
horses, appaloosas, arabians, or paints.
(j) In acting on applications for organization licenses,
the Board shall give weight to an organization license which
has implemented a good faith affirmative action effort to
recruit, train and upgrade minorities in all classifications
within the organization license.
(Source: P.A. 90-754, eff. 1-1-99; 91-40, eff. 6-25-99.)
(230 ILCS 5/24) (from Ch. 8, par. 37-24)
Sec. 24. (a) No license shall be issued to or held by an
organization licensee unless all of its officers, directors,
and holders of ownership interests of at least 5% are first
approved by the Board. The Board shall not give approval of an
organization license application to any person who has been
convicted of or is under an indictment for a crime of moral
turpitude or has violated any provision of the racing law of
this State or any rules of the Board.
(b) An organization licensee must notify the Board within
10 days of any change in the holders of a direct or indirect
interest in the ownership of the organization licensee. The
Board may, after hearing, revoke the organization license of
any person who registers on its books or knowingly permits a
direct or indirect interest in the ownership of that person
without notifying the Board of the name of the holder in
interest within this period.
(c) In addition to the provisions of subsection (a) of this
Section, no person shall be granted an organization license if
any public official of the State or member of his or her family
holds any ownership or financial interest, directly or
indirectly, in the person.
(d) No person which has been granted an organization
license to hold a race meeting shall give to any public
official or member of his family, directly or indirectly, for
or without consideration, any interest in the person. The Board
shall, after hearing, revoke the organization license granted
to a person which has violated this subsection.
(e) (Blank).
(f) No organization licensee or concessionaire or officer,
director or holder or controller of 5% or more legal or
beneficial interest in any organization licensee or concession
shall make any sort of gift or contribution that is prohibited
under Article 10 of the State Officials and Employees Ethics
Act of any kind or pay or give any money or other thing of value
to any person who is a public official, or a candidate or
nominee for public office if that payment or gift is prohibited
under Article 10 of the State Officials and Employees Ethics
Act.
(Source: P.A. 89-16, eff. 5-30-95.)
(230 ILCS 5/25) (from Ch. 8, par. 37-25)
Sec. 25. Admission charge; bond; fine.
(a) There shall be paid to the Board at such time or times
as it shall prescribe, the sum of fifteen cents (15¢) for each
person entering the grounds or enclosure of each organization
licensee and inter-track wagering licensee upon a ticket of
admission except as provided in subsection (g) of Section 27 of
this Act. If tickets are issued for more than one day then the
sum of fifteen cents (15¢) shall be paid for each person using
such ticket on each day that the same shall be used. Provided,
however, that no charge shall be made on tickets of admission
issued to and in the name of directors, officers, agents or
employees of the organization licensee, or inter-track
wagering licensee, or to owners, trainers, jockeys, drivers and
their employees or to any person or persons entering the
grounds or enclosure for the transaction of business in
connection with such race meeting. The organization licensee or
inter-track wagering licensee may, if it desires, collect such
amount from each ticket holder in addition to the amount or
amounts charged for such ticket of admission. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the admission charge imposed by this
subsection (a) shall be 40 cents for each person entering the
grounds or enclosure of each organization licensee and
inter-track wagering licensee upon a ticket of admission, and
if such tickets are issued for more than one day, 40 cents
shall be paid for each person using such ticket on each day
that the same shall be used.
(b) Accurate records and books shall at all times be kept
and maintained by the organization licensees and inter-track
wagering licensees showing the admission tickets issued and
used on each racing day and the attendance thereat of each
horse racing meeting. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to the admission records of any organization
licensee and inter-track wagering licensee for the purpose of
examining and checking the same and ascertaining whether or not
the proper amount has been or is being paid the State of
Illinois as herein provided. The Board shall also require,
before issuing any license, that the licensee shall execute and
deliver to it a bond, payable to the State of Illinois, in such
sum as it shall determine, not, however, in excess of fifty
thousand dollars ($50,000), with a surety or sureties to be
approved by it, conditioned for the payment of all sums due and
payable or collected by it under this Section upon admission
fees received for any particular racing meetings. The Board may
also from time to time require sworn statements of the number
or numbers of such admissions and may prescribe blanks upon
which such reports shall be made. Any organization licensee or
inter-track wagering licensee failing or refusing to pay the
amount found to be due as herein provided, shall be deemed
guilty of a business offense and upon conviction shall be
punished by a fine of not more than five thousand dollars
($5,000) in addition to the amount due from such organization
licensee or inter-track wagering licensee as herein provided.
All fines paid into court by an organization licensee or
inter-track wagering licensee found guilty of violating this
Section shall be transmitted and paid over by the clerk of the
court to the Board. Beginning on the date when any organization
licensee begins conducting gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act, any fine
imposed pursuant to this subsection (b) shall not exceed
$10,000.
(Source: P.A. 88-495; 89-16, eff. 5-30-95.)
(230 ILCS 5/26) (from Ch. 8, par. 37-26)
Sec. 26. Wagering.
(a) Any licensee may conduct and supervise the pari-mutuel
system of wagering, as defined in Section 3.12 of this Act, on
horse races conducted by an Illinois organization licensee or
conducted at a racetrack located in another state or country
Section 26 of this Act. Subject to the prior consent of the
Board, licensees may supplement any pari-mutuel pool in order
to guarantee a minimum distribution. Such pari-mutuel method of
wagering shall not, under any circumstances if conducted under
the provisions of this Act, be held or construed to be
unlawful, other statutes of this State to the contrary
notwithstanding. Subject to rules for advance wagering
promulgated by the Board, any licensee may accept wagers in
advance of the day of the race wagered upon occurs.
(b) Except for those gaming activities for which a license
is obtained and authorized under the Illinois Lottery Law, the
Charitable Games Act, the Raffles and Poker Runs Act, or the
Illinois Gambling Act, no No other method of betting, pool
making, wagering or gambling shall be used or permitted by the
licensee. Each licensee may retain, subject to the payment of
all applicable taxes and purses, an amount not to exceed 17% of
all money wagered under subsection (a) of this Section, except
as may otherwise be permitted under this Act.
(b-5) An individual may place a wager under the pari-mutuel
system from any licensed location authorized under this Act
provided that wager is electronically recorded in the manner
described in Section 3.12 of this Act. Any wager made
electronically by an individual while physically on the
premises of a licensee shall be deemed to have been made at the
premises of that licensee.
(c) (Blank). Until January 1, 2000, the sum held by any
(c-5) The Beginning January 1, 2000, the sum held by any
licensee for payment of outstanding pari-mutuel tickets, if
unclaimed prior to December 31 of the next year, shall be
retained by the licensee for payment of such tickets until that
date. Within 10 days thereafter, the balance of such sum
remaining unclaimed, less any uncashed supplements contributed
by such licensee for the purpose of guaranteeing minimum
distributions of any pari-mutuel pool, shall be evenly
distributed to the purse account of the organization licensee
and the organization licensee, except that the balance of the
sum of all outstanding pari-mutuel tickets generated from
simulcast wagering and inter-track wagering by an organization
licensee located in a county with a population in excess of
230,000 and borders the Mississippi River or any licensee that
derives its license from that organization licensee shall be
evenly distributed to the purse account of the organization
licensee and the organization licensee.
(d) A pari-mutuel ticket shall be honored until December 31
of the next calendar year, and the licensee shall pay the same
and may charge the amount thereof against unpaid money
similarly accumulated on account of pari-mutuel tickets not
presented for payment.
(e) No licensee shall knowingly permit any minor, other
than an employee of such licensee or an owner, trainer, jockey,
driver, or employee thereof, to be admitted during a racing
program unless accompanied by a parent or guardian, or any
minor to be a patron of the pari-mutuel system of wagering
conducted or supervised by it. The admission of any
unaccompanied minor, other than an employee of the licensee or
an owner, trainer, jockey, driver, or employee thereof at a
race track is a Class C misdemeanor.
(f) Notwithstanding the other provisions of this Act, an
organization licensee may contract with an entity in another
state or country to permit any legal wagering entity in another
state or country to accept wagers solely within such other
state or country on races conducted by the organization
licensee in this State. Beginning January 1, 2000, these wagers
shall not be subject to State taxation. Until January 1, 2000,
when the out-of-State entity conducts a pari-mutuel pool
separate from the organization licensee, a privilege tax equal
to 7 1/2% of all monies received by the organization licensee
from entities in other states or countries pursuant to such
contracts is imposed on the organization licensee, and such
privilege tax shall be remitted to the Department of Revenue
within 48 hours of receipt of the moneys from the simulcast.
When the out-of-State entity conducts a combined pari-mutuel
pool with the organization licensee, the tax shall be 10% of
all monies received by the organization licensee with 25% of
the receipts from this 10% tax to be distributed to the county
in which the race was conducted.
An organization licensee may permit one or more of its
races to be utilized for pari-mutuel wagering at one or more
locations in other states and may transmit audio and visual
signals of races the organization licensee conducts to one or
more locations outside the State or country and may also permit
pari-mutuel pools in other states or countries to be combined
with its gross or net wagering pools or with wagering pools
established by other states.
(g) A host track may accept interstate simulcast wagers on
horse races conducted in other states or countries and shall
control the number of signals and types of breeds of racing in
its simulcast program, subject to the disapproval of the Board.
The Board may prohibit a simulcast program only if it finds
that the simulcast program is clearly adverse to the integrity
of racing. The host track simulcast program shall include the
signal of live racing of all organization licensees. All
non-host licensees and advance deposit wagering licensees
shall carry the signal of and accept wagers on live racing of
all organization licensees. Advance deposit wagering licensees
shall not be permitted to accept out-of-state wagers on any
Illinois signal provided pursuant to this Section without the
approval and consent of the organization licensee providing the
signal. For one year after August 15, 2014 (the effective date
of Public Act 98-968), non-host licensees may carry the host
track simulcast program and shall accept wagers on all races
included as part of the simulcast program of horse races
conducted at race tracks located within North America upon
which wagering is permitted. For a period of one year after
August 15, 2014 (the effective date of Public Act 98-968), on
horse races conducted at race tracks located outside of North
America, non-host licensees may accept wagers on all races
included as part of the simulcast program upon which wagering
is permitted. Beginning August 15, 2015 (one year after the
effective date of Public Act 98-968), non-host licensees may
carry the host track simulcast program and shall accept wagers
on all races included as part of the simulcast program upon
which wagering is permitted. All organization licensees shall
provide their live signal to all advance deposit wagering
licensees for a simulcast commission fee not to exceed 6% of
the advance deposit wagering licensee's Illinois handle on the
organization licensee's signal without prior approval by the
Board. The Board may adopt rules under which it may permit
simulcast commission fees in excess of 6%. The Board shall
adopt rules limiting the interstate commission fees charged to
an advance deposit wagering licensee. The Board shall adopt
rules regarding advance deposit wagering on interstate
simulcast races that shall reflect, among other things, the
General Assembly's desire to maximize revenues to the State,
horsemen purses, and organization organizational licensees.
However, organization licensees providing live signals
pursuant to the requirements of this subsection (g) may
petition the Board to withhold their live signals from an
advance deposit wagering licensee if the organization licensee
discovers and the Board finds reputable or credible information
that the advance deposit wagering licensee is under
investigation by another state or federal governmental agency,
the advance deposit wagering licensee's license has been
suspended in another state, or the advance deposit wagering
licensee's license is in revocation proceedings in another
state. The organization licensee's provision of their live
signal to an advance deposit wagering licensee under this
subsection (g) pertains to wagers placed from within Illinois.
Advance deposit wagering licensees may place advance deposit
wagering terminals at wagering facilities as a convenience to
customers. The advance deposit wagering licensee shall not
charge or collect any fee from purses for the placement of the
advance deposit wagering terminals. The costs and expenses of
the host track and non-host licensees associated with
interstate simulcast wagering, other than the interstate
commission fee, shall be borne by the host track and all
non-host licensees incurring these costs. The interstate
commission fee shall not exceed 5% of Illinois handle on the
interstate simulcast race or races without prior approval of
the Board. The Board shall promulgate rules under which it may
permit interstate commission fees in excess of 5%. The
interstate commission fee and other fees charged by the sending
racetrack, including, but not limited to, satellite decoder
fees, shall be uniformly applied to the host track and all
non-host licensees.
Notwithstanding any other provision of this Act, through
of the horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
maintain a system whereby advance deposit wagering may take
place or an organization licensee, with the consent of the
horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
contract with another person to carry out a system of advance
deposit wagering. Such consent may not be unreasonably
withheld. Only with respect to an appeal to the Board that
consent for an organization licensee that maintains its own
advance deposit wagering system is being unreasonably
withheld, the Board shall issue a final order within 30 days
after initiation of the appeal, and the organization licensee's
advance deposit wagering system may remain operational during
that 30-day period. The actions of any organization licensee
who conducts advance deposit wagering or any person who has a
contract with an organization licensee to conduct advance
deposit wagering who conducts advance deposit wagering on or
after January 1, 2013 and prior to June 7, 2013 (the effective
date of Public Act 98-18) taken in reliance on the changes made
to this subsection (g) by Public Act 98-18 are hereby
validated, provided payment of all applicable pari-mutuel
taxes are remitted to the Board. All advance deposit wagers
placed from within Illinois must be placed through a
Board-approved advance deposit wagering licensee; no other
entity may accept an advance deposit wager from a person within
Illinois. All advance deposit wagering is subject to any rules
adopted by the Board. The Board may adopt rules necessary to
regulate advance deposit wagering through the use of emergency
rulemaking in accordance with Section 5-45 of the Illinois
Administrative Procedure Act. The General Assembly finds that
the adoption of rules to regulate advance deposit wagering is
deemed an emergency and necessary for the public interest,
safety, and welfare. An advance deposit wagering licensee may
retain all moneys as agreed to by contract with an organization
licensee. Any moneys retained by the organization licensee from
advance deposit wagering, not including moneys retained by the
advance deposit wagering licensee, shall be paid 50% to the
organization licensee's purse account and 50% to the
organization licensee. With the exception of any organization
licensee that is owned by a publicly traded company that is
incorporated in a state other than Illinois and advance deposit
wagering licensees under contract with such organization
licensees, organization licensees that maintain advance
deposit wagering systems and advance deposit wagering
licensees that contract with organization licensees shall
provide sufficiently detailed monthly accountings to the
horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting so that
the horsemen association, as an interested party, can confirm
the accuracy of the amounts paid to the purse account at the
horsemen association's affiliated organization licensee from
advance deposit wagering. If more than one breed races at the
same race track facility, then the 50% of the moneys to be paid
to an organization licensee's purse account shall be allocated
among all organization licensees' purse accounts operating at
that race track facility proportionately based on the actual
number of host days that the Board grants to that breed at that
race track facility in the current calendar year. To the extent
any fees from advance deposit wagering conducted in Illinois
for wagers in Illinois or other states have been placed in
escrow or otherwise withheld from wagers pending a
determination of the legality of advance deposit wagering, no
action shall be brought to declare such wagers or the
disbursement of any fees previously escrowed illegal.
(1) Between the hours of 6:30 a.m. and 6:30 p.m. an
inter-track wagering licensee other than the host track may
supplement the host track simulcast program with
additional simulcast races or race programs, provided that
between January 1 and the third Friday in February of any
year, inclusive, if no live thoroughbred racing is
occurring in Illinois during this period, only
thoroughbred races may be used for supplemental interstate
simulcast purposes. The Board shall withhold approval for a
supplemental interstate simulcast only if it finds that the
simulcast is clearly adverse to the integrity of racing. A
supplemental interstate simulcast may be transmitted from
an inter-track wagering licensee to its affiliated
non-host licensees. The interstate commission fee for a
supplemental interstate simulcast shall be paid by the
non-host licensee and its affiliated non-host licensees
receiving the simulcast.
(2) Between the hours of 6:30 p.m. and 6:30 a.m. an
inter-track wagering licensee other than the host track may
receive supplemental interstate simulcasts only with the
consent of the host track, except when the Board finds that
the simulcast is clearly adverse to the integrity of
racing. Consent granted under this paragraph (2) to any
inter-track wagering licensee shall be deemed consent to
all non-host licensees. The interstate commission fee for
the supplemental interstate simulcast shall be paid by all
participating non-host licensees.
(3) Each licensee conducting interstate simulcast
wagering may retain, subject to the payment of all
applicable taxes and the purses, an amount not to exceed
17% of all money wagered. If any licensee conducts the
pari-mutuel system wagering on races conducted at
racetracks in another state or country, each such race or
race program shall be considered a separate racing day for
the purpose of determining the daily handle and computing
the privilege tax of that daily handle as provided in
subsection (a) of Section 27. Until January 1, 2000, from
the sums permitted to be retained pursuant to this
subsection, each inter-track wagering location licensee
shall pay 1% of the pari-mutuel handle wagered on simulcast
wagering to the Horse Racing Tax Allocation Fund, subject
to the provisions of subparagraph (B) of paragraph (11) of
subsection (h) of Section 26 of this Act.
(4) A licensee who receives an interstate simulcast may
combine its gross or net pools with pools at the sending
racetracks pursuant to rules established by the Board. All
licensees combining their gross pools at a sending
racetrack shall adopt the takeout take-out percentages of
the sending racetrack. A licensee may also establish a
separate pool and takeout structure for wagering purposes
on races conducted at race tracks outside of the State of
Illinois. The licensee may permit pari-mutuel wagers
placed in other states or countries to be combined with its
gross or net wagering pools or other wagering pools.
(5) After the payment of the interstate commission fee
(except for the interstate commission fee on a supplemental
interstate simulcast, which shall be paid by the host track
and by each non-host licensee through the host track
except as provided in subsection (g) of Section 27 of this
Act, the remainder of moneys retained from simulcast
wagering pursuant to this subsection (g), and Section 26.2
shall be divided as follows:
(A) For interstate simulcast wagers made at a host
track, 50% to the host track and 50% to purses at the
host track.
(B) For wagers placed on interstate simulcast
races, supplemental simulcasts as defined in
subparagraphs (1) and (2), and separately pooled races
conducted outside of the State of Illinois made at a
non-host licensee, 25% to the host track, 25% to the
non-host licensee, and 50% to the purses at the host
track.
(6) Notwithstanding any provision in this Act to the
contrary, non-host licensees who derive their licenses
from a track located in a county with a population in
excess of 230,000 and that borders the Mississippi River
may receive supplemental interstate simulcast races at all
times subject to Board approval, which shall be withheld
only upon a finding that a supplemental interstate
simulcast is clearly adverse to the integrity of racing.
(7) Effective January 1, 2017, notwithstanding any
provision of this Act to the contrary, after payment of all
applicable State and local taxes and interstate commission
fees, non-host licensees who derive their licenses from a
track located in a county with a population in excess of
230,000 and that borders the Mississippi River shall retain
50% of the retention from interstate simulcast wagers and
shall pay 50% to purses at the track from which the
non-host licensee derives its license.
(7.1) Notwithstanding any other provision of this Act
to the contrary, if no standardbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 p.m. and 6:30
a.m. during that calendar year shall be paid as follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many
racing dates as were conducted in calendar year 2000,
80% shall be paid to its thoroughbred purse account;
and
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund and shall
be paid to purses for standardbred races for Illinois
conceived and foaled horses conducted at any county
fairgrounds. The moneys deposited into the Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall
be in addition to and not in lieu of any other moneys
paid to standardbred purses under this Act, and shall
not be commingled with other moneys paid into that
Fund. The moneys deposited pursuant to this
subparagraph (B) shall be allocated as provided by the
Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund
Advisory Board.
(7.2) Notwithstanding any other provision of this Act
to the contrary, if no thoroughbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 a.m. and 6:30
p.m. during that calendar year shall be deposited as
follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many
racing dates as were conducted in calendar year 2000,
80% shall be deposited into its standardbred purse
account; and
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund. Moneys
deposited into the Illinois Colt Stakes Purse
Distribution Fund pursuant to this subparagraph (B)
shall be paid to Illinois conceived and foaled
thoroughbred breeders' programs and to thoroughbred
purses for races conducted at any county fairgrounds
for Illinois conceived and foaled horses at the
discretion of the Department of Agriculture, with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. The moneys deposited
into the Illinois Colt Stakes Purse Distribution Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall
be in addition to and not in lieu of any other moneys
paid to thoroughbred purses under this Act, and shall
not be commingled with other moneys deposited into that
Fund.
(7.3) (Blank).
(7.4) (Blank).
(8) Notwithstanding any provision in this Act to the
contrary, an organization licensee from a track located in
a county with a population in excess of 230,000 and that
borders the Mississippi River and its affiliated non-host
licensees shall not be entitled to share in any retention
generated on racing, inter-track wagering, or simulcast
wagering at any other Illinois wagering facility.
(8.1) Notwithstanding any provisions in this Act to the
contrary, if 2 organization licensees are conducting
standardbred race meetings concurrently between the hours
of 6:30 p.m. and 6:30 a.m., after payment of all applicable
State and local taxes and interstate commission fees, the
remainder of the amount retained from simulcast wagering
otherwise attributable to the host track and to host track
purses shall be split daily between the 2 organization
licensees and the purses at the tracks of the 2
organization licensees, respectively, based on each
organization licensee's share of the total live handle for
that day, provided that this provision shall not apply to
any non-host licensee that derives its license from a track
located in a county with a population in excess of 230,000
and that borders the Mississippi River.
(9) (Blank).
(10) (Blank).
(11) (Blank).
(12) The Board shall have authority to compel all host
tracks to receive the simulcast of any or all races
conducted at the Springfield or DuQuoin State fairgrounds
and include all such races as part of their simulcast
programs.
(13) Notwithstanding any other provision of this Act,
in the event that the total Illinois pari-mutuel handle on
Illinois horse races at all wagering facilities in any
calendar year is less than 75% of the total Illinois
pari-mutuel handle on Illinois horse races at all such
wagering facilities for calendar year 1994, then each
wagering facility that has an annual total Illinois
pari-mutuel handle on Illinois horse races that is less
than 75% of the total Illinois pari-mutuel handle on
Illinois horse races at such wagering facility for calendar
year 1994, shall be permitted to receive, from any amount
otherwise payable to the purse account at the race track
with which the wagering facility is affiliated in the
succeeding calendar year, an amount equal to 2% of the
differential in total Illinois pari-mutuel handle on
Illinois horse races at the wagering facility between that
calendar year in question and 1994 provided, however, that
a wagering facility shall not be entitled to any such
payment until the Board certifies in writing to the
wagering facility the amount to which the wagering facility
is entitled and a schedule for payment of the amount to the
wagering facility, based on: (i) the racing dates awarded
to the race track affiliated with the wagering facility
during the succeeding year; (ii) the sums available or
anticipated to be available in the purse account of the
race track affiliated with the wagering facility for purses
during the succeeding year; and (iii) the need to ensure
reasonable purse levels during the payment period. The
Board's certification shall be provided no later than
January 31 of the succeeding year. In the event a wagering
facility entitled to a payment under this paragraph (13) is
affiliated with a race track that maintains purse accounts
for both standardbred and thoroughbred racing, the amount
to be paid to the wagering facility shall be divided
between each purse account pro rata, based on the amount of
Illinois handle on Illinois standardbred and thoroughbred
racing respectively at the wagering facility during the
previous calendar year. Annually, the General Assembly
shall appropriate sufficient funds from the General
Revenue Fund to the Department of Agriculture for payment
into the thoroughbred and standardbred horse racing purse
accounts at Illinois pari-mutuel tracks. The amount paid to
each purse account shall be the amount certified by the
Illinois Racing Board in January to be transferred from
each account to each eligible racing facility in accordance
with the provisions of this Section. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payment under this paragraph (13)
begins to receive funds from gaming pursuant to an
organization gaming license issued under the Illinois
Gambling Act, the amount of the payment due to all wagering
facilities licensed under that organization licensee under
this paragraph (13) shall be the amount certified by the
Board in January of that year. An organization licensee and
its related wagering facilities shall no longer be able to
receive payments under this paragraph (13) beginning in the
year subsequent to the first year in which the organization
licensee begins to receive funds from gaming pursuant to an
organization gaming license issued under the Illinois
Gambling Act.
(h) The Board may approve and license the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location licensees
subject to the following terms and conditions:
(1) Any person licensed to conduct a race meeting (i)
at a track where 60 or more days of racing were conducted
during the immediately preceding calendar year or where
over the 5 immediately preceding calendar years an average
of 30 or more days of racing were conducted annually may be
issued an inter-track wagering license; (ii) at a track
located in a county that is bounded by the Mississippi
River, which has a population of less than 150,000
according to the 1990 decennial census, and an average of
at least 60 days of racing per year between 1985 and 1993
may be issued an inter-track wagering license; or (iii) at
a track awarded standardbred racing dates; or (iv) at a
track located in Madison County that conducted at least 100
days of live racing during the immediately preceding
calendar year may be issued an inter-track wagering
license, unless a lesser schedule of live racing is the
result of (A) weather, unsafe track conditions, or other
acts of God; (B) an agreement between the organization
licensee and the associations representing the largest
number of owners, trainers, jockeys, or standardbred
drivers who race horses at that organization licensee's
racing meeting; or (C) a finding by the Board of
extraordinary circumstances and that it was in the best
interest of the public and the sport to conduct fewer than
100 days of live racing. Any such person having operating
control of the racing facility may receive inter-track
wagering location licenses. An eligible race track located
in a county that has a population of more than 230,000 and
that is bounded by the Mississippi River may establish up
to 9 inter-track wagering locations, an eligible race track
located in Stickney Township in Cook County may establish
up to 16 inter-track wagering locations, and an eligible
race track located in Palatine Township in Cook County may
establish up to 18 inter-track wagering locations. An
eligible racetrack conducting standardbred racing may have
up to 16 inter-track wagering locations. An application for
said license shall be filed with the Board prior to such
dates as may be fixed by the Board. With an application for
an inter-track wagering location license there shall be
delivered to the Board a certified check or bank draft
payable to the order of the Board for an amount equal to
$500. The application shall be on forms prescribed and
furnished by the Board. The application shall comply with
all other rules, regulations and conditions imposed by the
Board in connection therewith.
(2) The Board shall examine the applications with
respect to their conformity with this Act and the rules and
regulations imposed by the Board. If found to be in
compliance with the Act and rules and regulations of the
Board, the Board may then issue a license to conduct
inter-track wagering and simulcast wagering to such
applicant. All such applications shall be acted upon by the
Board at a meeting to be held on such date as may be fixed
by the Board.
(3) In granting licenses to conduct inter-track
wagering and simulcast wagering, the Board shall give due
consideration to the best interests of the public, of horse
racing, and of maximizing revenue to the State.
(4) Prior to the issuance of a license to conduct
inter-track wagering and simulcast wagering, the applicant
shall file with the Board a bond payable to the State of
Illinois in the sum of $50,000, executed by the applicant
and a surety company or companies authorized to do business
in this State, and conditioned upon (i) the payment by the
licensee of all taxes due under Section 27 or 27.1 and any
other monies due and payable under this Act, and (ii)
distribution by the licensee, upon presentation of the
winning ticket or tickets, of all sums payable to the
patrons of pari-mutuel pools.
(5) Each license to conduct inter-track wagering and
simulcast wagering shall specify the person to whom it is
issued, the dates on which such wagering is permitted, and
the track or location where the wagering is to be
conducted.
(6) All wagering under such license is subject to this
Act and to the rules and regulations from time to time
prescribed by the Board, and every such license issued by
the Board shall contain a recital to that effect.
(7) An inter-track wagering licensee or inter-track
wagering location licensee may accept wagers at the track
or location where it is licensed, or as otherwise provided
under this Act.
(8) Inter-track wagering or simulcast wagering shall
not be conducted at any track less than 4 5 miles from a
track at which a racing meeting is in progress.
(8.1) Inter-track wagering location licensees who
derive their licenses from a particular organization
licensee shall conduct inter-track wagering and simulcast
wagering only at locations that are within 160 miles of
that race track where the particular organization licensee
is licensed to conduct racing. However, inter-track
wagering and simulcast wagering shall not be conducted by
those licensees at any location within 5 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made. In the case of any inter-track
wagering location licensee initially licensed after
December 31, 2013, inter-track wagering and simulcast
wagering shall not be conducted by those inter-track
wagering location licensees that are located outside the
City of Chicago at any location within 8 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made.
(8.2) Inter-track wagering or simulcast wagering shall
not be conducted by an inter-track wagering location
licensee at any location within 500 feet of an existing
church, an or existing elementary or secondary public
school, or an existing elementary or secondary private
school registered with or recognized by the State Board of
Education school, nor within 500 feet of the residences of
more than 50 registered voters without receiving written
permission from a majority of the registered voters at such
residences. Such written permission statements shall be
filed with the Board. The distance of 500 feet shall be
measured to the nearest part of any building used for
worship services, education programs, residential
purposes, or conducting inter-track wagering by an
inter-track wagering location licensee, and not to
property boundaries. However, inter-track wagering or
simulcast wagering may be conducted at a site within 500
feet of a church, school or residences of 50 or more
registered voters if such church, school or residences have
been erected or established, or such voters have been
registered, after the Board issues the original
inter-track wagering location license at the site in
question. Inter-track wagering location licensees may
conduct inter-track wagering and simulcast wagering only
in areas that are zoned for commercial or manufacturing
purposes or in areas for which a special use has been
approved by the local zoning authority. However, no license
to conduct inter-track wagering and simulcast wagering
shall be granted by the Board with respect to any
inter-track wagering location within the jurisdiction of
any local zoning authority which has, by ordinance or by
resolution, prohibited the establishment of an inter-track
wagering location within its jurisdiction. However,
inter-track wagering and simulcast wagering may be
conducted at a site if such ordinance or resolution is
enacted after the Board licenses the original inter-track
wagering location licensee for the site in question.
(9) (Blank).
(10) An inter-track wagering licensee or an
inter-track wagering location licensee may retain, subject
to the payment of the privilege taxes and the purses, an
amount not to exceed 17% of all money wagered. Each program
of racing conducted by each inter-track wagering licensee
or inter-track wagering location licensee shall be
considered a separate racing day for the purpose of
determining the daily handle and computing the privilege
tax or pari-mutuel tax on such daily handle as provided in
Section 27.
(10.1) Except as provided in subsection (g) of Section
27 of this Act, inter-track wagering location licensees
shall pay 1% of the pari-mutuel handle at each location to
the municipality in which such location is situated and 1%
of the pari-mutuel handle at each location to the county in
which such location is situated. In the event that an
inter-track wagering location licensee is situated in an
unincorporated area of a county, such licensee shall pay 2%
of the pari-mutuel handle from such location to such
county.
(10.2) Notwithstanding any other provision of this
Act, with respect to inter-track wagering at a race track
located in a county that has a population of more than
230,000 and that is bounded by the Mississippi River ("the
first race track"), or at a facility operated by an
inter-track wagering licensee or inter-track wagering
location licensee that derives its license from the
organization licensee that operates the first race track,
on races conducted at the first race track or on races
conducted at another Illinois race track and
simultaneously televised to the first race track or to a
facility operated by an inter-track wagering licensee or
inter-track wagering location licensee that derives its
license from the organization licensee that operates the
first race track, those moneys shall be allocated as
follows:
(A) That portion of all moneys wagered on
standardbred racing that is required under this Act to
be paid to purses shall be paid to purses for
standardbred races.
(B) That portion of all moneys wagered on
thoroughbred racing that is required under this Act to
be paid to purses shall be paid to purses for
thoroughbred races.
(11) (A) After payment of the privilege or pari-mutuel
tax, any other applicable taxes, and the costs and expenses
in connection with the gathering, transmission, and
dissemination of all data necessary to the conduct of
inter-track wagering, the remainder of the monies retained
under either Section 26 or Section 26.2 of this Act by the
inter-track wagering licensee on inter-track wagering
shall be allocated with 50% to be split between the 2
participating licensees and 50% to purses, except that an
inter-track wagering licensee that derives its license
from a track located in a county with a population in
excess of 230,000 and that borders the Mississippi River
shall not divide any remaining retention with the Illinois
organization licensee that provides the race or races, and
an inter-track wagering licensee that accepts wagers on
races conducted by an organization licensee that conducts a
race meet in a county with a population in excess of
230,000 and that borders the Mississippi River shall not
divide any remaining retention with that organization
licensee.
(B) From the sums permitted to be retained pursuant to
this Act each inter-track wagering location licensee shall
pay (i) the privilege or pari-mutuel tax to the State; (ii)
4.75% of the pari-mutuel handle on inter-track wagering at
such location on races as purses, except that an
inter-track wagering location licensee that derives its
license from a track located in a county with a population
in excess of 230,000 and that borders the Mississippi River
shall retain all purse moneys for its own purse account
consistent with distribution set forth in this subsection
(h), and inter-track wagering location licensees that
accept wagers on races conducted by an organization
licensee located in a county with a population in excess of
230,000 and that borders the Mississippi River shall
distribute all purse moneys to purses at the operating host
track; (iii) until January 1, 2000, except as provided in
subsection (g) of Section 27 of this Act, 1% of the
pari-mutuel handle wagered on inter-track wagering and
simulcast wagering at each inter-track wagering location
licensee facility to the Horse Racing Tax Allocation Fund,
provided that, to the extent the total amount collected and
distributed to the Horse Racing Tax Allocation Fund under
this subsection (h) during any calendar year exceeds the
amount collected and distributed to the Horse Racing Tax
Allocation Fund during calendar year 1994, that excess
amount shall be redistributed (I) to all inter-track
wagering location licensees, based on each licensee's pro
rata pro-rata share of the total handle from inter-track
wagering and simulcast wagering for all inter-track
wagering location licensees during the calendar year in
which this provision is applicable; then (II) the amounts
redistributed to each inter-track wagering location
licensee as described in subpart (I) shall be further
redistributed as provided in subparagraph (B) of paragraph
(5) of subsection (g) of this Section 26 provided first,
that the shares of those amounts, which are to be
redistributed to the host track or to purses at the host
track under subparagraph (B) of paragraph (5) of subsection
(g) of this Section 26 shall be redistributed based on each
host track's pro rata share of the total inter-track
wagering and simulcast wagering handle at all host tracks
during the calendar year in question, and second, that any
amounts redistributed as described in part (I) to an
inter-track wagering location licensee that accepts wagers
on races conducted by an organization licensee that
conducts a race meet in a county with a population in
excess of 230,000 and that borders the Mississippi River
shall be further redistributed, effective January 1, 2017,
as provided in paragraph (7) of subsection (g) of this
Section 26, with the portion of that further redistribution
allocated to purses at that organization licensee to be
divided between standardbred purses and thoroughbred
purses based on the amounts otherwise allocated to purses
at that organization licensee during the calendar year in
question; and (iv) 8% of the pari-mutuel handle on
inter-track wagering wagered at such location to satisfy
all costs and expenses of conducting its wagering. The
remainder of the monies retained by the inter-track
wagering location licensee shall be allocated 40% to the
location licensee and 60% to the organization licensee
which provides the Illinois races to the location, except
that an inter-track wagering location licensee that
derives its license from a track located in a county with a
population in excess of 230,000 and that borders the
Mississippi River shall not divide any remaining retention
with the organization licensee that provides the race or
races and an inter-track wagering location licensee that
accepts wagers on races conducted by an organization
licensee that conducts a race meet in a county with a
population in excess of 230,000 and that borders the
Mississippi River shall not divide any remaining retention
with the organization licensee. Notwithstanding the
provisions of clauses (ii) and (iv) of this paragraph, in
the case of the additional inter-track wagering location
licenses authorized under paragraph (1) of this subsection
(h) by Public Act 87-110, those licensees shall pay the
following amounts as purses: during the first 12 months the
licensee is in operation, 5.25% of the pari-mutuel handle
wagered at the location on races; during the second 12
months, 5.25%; during the third 12 months, 5.75%; during
the fourth 12 months, 6.25%; and during the fifth 12 months
and thereafter, 6.75%. The following amounts shall be
retained by the licensee to satisfy all costs and expenses
of conducting its wagering: during the first 12 months the
licensee is in operation, 8.25% of the pari-mutuel handle
wagered at the location; during the second 12 months,
8.25%; during the third 12 months, 7.75%; during the fourth
12 months, 7.25%; and during the fifth 12 months and
thereafter, 6.75%. For additional inter-track wagering
location licensees authorized under Public Act 89-16,
purses for the first 12 months the licensee is in operation
shall be 5.75% of the pari-mutuel wagered at the location,
purses for the second 12 months the licensee is in
operation shall be 6.25%, and purses thereafter shall be
6.75%. For additional inter-track location licensees
authorized under Public Act 89-16, the licensee shall be
allowed to retain to satisfy all costs and expenses: 7.75%
of the pari-mutuel handle wagered at the location during
its first 12 months of operation, 7.25% during its second
12 months of operation, and 6.75% thereafter.
(C) There is hereby created the Horse Racing Tax
Allocation Fund which shall remain in existence until
December 31, 1999. Moneys remaining in the Fund after
December 31, 1999 shall be paid into the General Revenue
Fund. Until January 1, 2000, all monies paid into the Horse
Racing Tax Allocation Fund pursuant to this paragraph (11)
by inter-track wagering location licensees located in park
districts of 500,000 population or less, or in a
municipality that is not included within any park district
but is included within a conservation district and is the
county seat of a county that (i) is contiguous to the state
of Indiana and (ii) has a 1990 population of 88,257
according to the United States Bureau of the Census, and
operating on May 1, 1994 shall be allocated by
appropriation as follows:
Two-sevenths to the Department of Agriculture.
Fifty percent of this two-sevenths shall be used to
promote the Illinois horse racing and breeding
industry, and shall be distributed by the Department of
Agriculture upon the advice of a 9-member committee
appointed by the Governor consisting of the following
members: the Director of Agriculture, who shall serve
as chairman; 2 representatives of organization
licensees conducting thoroughbred race meetings in
this State, recommended by those licensees; 2
representatives of organization licensees conducting
standardbred race meetings in this State, recommended
by those licensees; a representative of the Illinois
Thoroughbred Breeders and Owners Foundation,
recommended by that Foundation; a representative of
the Illinois Standardbred Owners and Breeders
Association, recommended by that Association; a
representative of the Horsemen's Benevolent and
Protective Association or any successor organization
thereto established in Illinois comprised of the
largest number of owners and trainers, recommended by
that Association or that successor organization; and a
representative of the Illinois Harness Horsemen's
Association, recommended by that Association.
Committee members shall serve for terms of 2 years,
commencing January 1 of each even-numbered year. If a
representative of any of the above-named entities has
not been recommended by January 1 of any even-numbered
year, the Governor shall appoint a committee member to
fill that position. Committee members shall receive no
compensation for their services as members but shall be
reimbursed for all actual and necessary expenses and
disbursements incurred in the performance of their
official duties. The remaining 50% of this
two-sevenths shall be distributed to county fairs for
premiums and rehabilitation as set forth in the
Agricultural Fair Act;
Four-sevenths to park districts or municipalities
that do not have a park district of 500,000 population
or less for museum purposes (if an inter-track wagering
location licensee is located in such a park district)
or to conservation districts for museum purposes (if an
inter-track wagering location licensee is located in a
municipality that is not included within any park
district but is included within a conservation
district and is the county seat of a county that (i) is
contiguous to the state of Indiana and (ii) has a 1990
population of 88,257 according to the United States
Bureau of the Census, except that if the conservation
district does not maintain a museum, the monies shall
be allocated equally between the county and the
municipality in which the inter-track wagering
location licensee is located for general purposes) or
to a municipal recreation board for park purposes (if
an inter-track wagering location licensee is located
in a municipality that is not included within any park
district and park maintenance is the function of the
municipal recreation board and the municipality has a
1990 population of 9,302 according to the United States
Bureau of the Census); provided that the monies are
distributed to each park district or conservation
district or municipality that does not have a park
district in an amount equal to four-sevenths of the
amount collected by each inter-track wagering location
licensee within the park district or conservation
district or municipality for the Fund. Monies that were
paid into the Horse Racing Tax Allocation Fund before
August 9, 1991 (the effective date of Public Act
87-110) by an inter-track wagering location licensee
located in a municipality that is not included within
any park district but is included within a conservation
district as provided in this paragraph shall, as soon
as practicable after August 9, 1991 (the effective date
of Public Act 87-110), be allocated and paid to that
conservation district as provided in this paragraph.
Any park district or municipality not maintaining a
museum may deposit the monies in the corporate fund of
the park district or municipality where the
inter-track wagering location is located, to be used
for general purposes; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967.
Until January 1, 2000, all other monies paid into the
Horse Racing Tax Allocation Fund pursuant to this paragraph
(11) shall be allocated by appropriation as follows:
Two-sevenths to the Department of Agriculture.
Fifty percent of this two-sevenths shall be used to
promote the Illinois horse racing and breeding
industry, and shall be distributed by the Department of
Agriculture upon the advice of a 9-member committee
appointed by the Governor consisting of the following
members: the Director of Agriculture, who shall serve
as chairman; 2 representatives of organization
licensees conducting thoroughbred race meetings in
this State, recommended by those licensees; 2
representatives of organization licensees conducting
standardbred race meetings in this State, recommended
by those licensees; a representative of the Illinois
Thoroughbred Breeders and Owners Foundation,
recommended by that Foundation; a representative of
the Illinois Standardbred Owners and Breeders
Association, recommended by that Association; a
representative of the Horsemen's Benevolent and
Protective Association or any successor organization
thereto established in Illinois comprised of the
largest number of owners and trainers, recommended by
that Association or that successor organization; and a
representative of the Illinois Harness Horsemen's
Association, recommended by that Association.
Committee members shall serve for terms of 2 years,
commencing January 1 of each even-numbered year. If a
representative of any of the above-named entities has
not been recommended by January 1 of any even-numbered
year, the Governor shall appoint a committee member to
fill that position. Committee members shall receive no
compensation for their services as members but shall be
reimbursed for all actual and necessary expenses and
disbursements incurred in the performance of their
official duties. The remaining 50% of this
two-sevenths shall be distributed to county fairs for
premiums and rehabilitation as set forth in the
Agricultural Fair Act;
Four-sevenths to museums and aquariums located in
park districts of over 500,000 population; provided
that the monies are distributed in accordance with the
previous year's distribution of the maintenance tax
for such museums and aquariums as provided in Section 2
of the Park District Aquarium and Museum Act; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967. This
subparagraph (C) shall be inoperative and of no force
and effect on and after January 1, 2000.
(D) Except as provided in paragraph (11) of this
subsection (h), with respect to purse allocation from
inter-track wagering, the monies so retained shall be
divided as follows:
(i) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is
not conducting its own race meeting during the same
dates, then the entire purse allocation shall be to
purses at the track where the races wagered on are
being conducted.
(ii) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is
also conducting its own race meeting during the
same dates, then the purse allocation shall be as
follows: 50% to purses at the track where the races
wagered on are being conducted; 50% to purses at
the track where the inter-track wagering licensee
is accepting such wagers.
(iii) If the inter-track wagering is being
conducted by an inter-track wagering location
licensee, except an inter-track wagering location
licensee that derives its license from an
organization licensee located in a county with a
population in excess of 230,000 and bounded by the
Mississippi River, the entire purse allocation for
Illinois races shall be to purses at the track
where the race meeting being wagered on is being
held.
(12) The Board shall have all powers necessary and
proper to fully supervise and control the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location
licensees, including, but not limited to the following:
(A) The Board is vested with power to promulgate
reasonable rules and regulations for the purpose of
administering the conduct of this wagering and to
prescribe reasonable rules, regulations and conditions
under which such wagering shall be held and conducted.
Such rules and regulations are to provide for the
prevention of practices detrimental to the public
interest and for the best interests of said wagering
and to impose penalties for violations thereof.
(B) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter
the facilities of any licensee to determine whether
there has been compliance with the provisions of this
Act and the rules and regulations relating to the
conduct of such wagering.
(C) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any
licensee's facilities, any person whose conduct or
reputation is such that his presence on such premises
may, in the opinion of the Board, call into the
question the honesty and integrity of, or interfere
with the orderly conduct of such wagering; provided,
however, that no person shall be excluded or ejected
from such premises solely on the grounds of race,
color, creed, national origin, ancestry, or sex.
(D) (Blank).
(E) The Board is vested with the power to appoint
delegates to execute any of the powers granted to it
under this Section for the purpose of administering
this wagering and any rules and regulations
promulgated in accordance with this Act.
(F) The Board shall name and appoint a State
director of this wagering who shall be a representative
of the Board and whose duty it shall be to supervise
the conduct of inter-track wagering as may be provided
for by the rules and regulations of the Board; such
rules and regulation shall specify the method of
appointment and the Director's powers, authority and
duties.
(G) The Board is vested with the power to impose
civil penalties of up to $5,000 against individuals and
up to $10,000 against licensees for each violation of
any provision of this Act relating to the conduct of
this wagering, any rules adopted by the Board, any
order of the Board or any other action which in the
Board's discretion, is a detriment or impediment to
such wagering.
(13) The Department of Agriculture may enter into
agreements with licensees authorizing such licensees to
conduct inter-track wagering on races to be held at the
licensed race meetings conducted by the Department of
Agriculture. Such agreement shall specify the races of the
Department of Agriculture's licensed race meeting upon
which the licensees will conduct wagering. In the event
that a licensee conducts inter-track pari-mutuel wagering
on races from the Illinois State Fair or DuQuoin State Fair
which are in addition to the licensee's previously approved
racing program, those races shall be considered a separate
racing day for the purpose of determining the daily handle
and computing the privilege or pari-mutuel tax on that
daily handle as provided in Sections 27 and 27.1. Such
agreements shall be approved by the Board before such
wagering may be conducted. In determining whether to grant
approval, the Board shall give due consideration to the
best interests of the public and of horse racing. The
provisions of paragraphs (1), (8), (8.1), and (8.2) of
subsection (h) of this Section which are not specified in
this paragraph (13) shall not apply to licensed race
meetings conducted by the Department of Agriculture at the
Illinois State Fair in Sangamon County or the DuQuoin State
Fair in Perry County, or to any wagering conducted on those
race meetings.
(14) An inter-track wagering location license
authorized by the Board in 2016 that is owned and operated
by a race track in Rock Island County shall be transferred
to a commonly owned race track in Cook County on August 12,
2016 (the effective date of Public Act 99-757). The
licensee shall retain its status in relation to purse
distribution under paragraph (11) of this subsection (h)
following the transfer to the new entity. The pari-mutuel
tax credit under Section 32.1 shall not be applied toward
any pari-mutuel tax obligation of the inter-track wagering
location licensee of the license that is transferred under
this paragraph (14).
(i) Notwithstanding the other provisions of this Act, the
conduct of wagering at wagering facilities is authorized on all
days, except as limited by subsection (b) of Section 19 of this
Act.
(Source: P.A. 99-756, eff. 8-12-16; 99-757, eff. 8-12-16;
100-201, eff. 8-18-17; 100-627, eff. 7-20-18; 100-1152, eff.
12-14-18; revised 1-13-19.)
(230 ILCS 5/26.8)
Sec. 26.8. Beginning on February 1, 2014 and through
surcharge of up to 0.5% on winning wagers and winnings from
wagers. The surcharge shall be deducted from winnings prior to
payout. All amounts collected from the imposition of this
surcharge shall be evenly distributed to the organization
licensee and the purse account of the organization licensee
with which the licensee is affiliated. The amounts distributed
under this Section shall be in addition to the amounts paid
pursuant to paragraph (10) of subsection (h) of Section 26,
Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
(230 ILCS 5/26.9)
Sec. 26.9. Beginning on February 1, 2014 and through
Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
licensee shall impose a surcharge of 0.2% on winning wagers and
winnings from wagers. The surcharge shall be deducted from
winnings prior to payout. All amounts collected from the
surcharges imposed under this Section shall be remitted to the
Board. From amounts collected under this Section, the Board
shall deposit an amount not to exceed $100,000 annually into
the Quarter Horse Purse Fund and all remaining amounts into the
Horse Racing Fund.
(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
(230 ILCS 5/27) (from Ch. 8, par. 37-27)
Sec. 27. (a) In addition to the organization license fee
provided by this Act, until January 1, 2000, a graduated
privilege tax is hereby imposed for conducting the pari-mutuel
system of wagering permitted under this Act. Until January 1,
2000, except as provided in subsection (g) of Section 27 of
this Act, all of the breakage of each racing day held by any
licensee in the State shall be paid to the State. Until January
1, 2000, such daily graduated privilege tax shall be paid by
the licensee from the amount permitted to be retained under
this Act. Until January 1, 2000, each day's graduated privilege
tax, breakage, and Horse Racing Tax Allocation funds shall be
remitted to the Department of Revenue within 48 hours after the
close of the racing day upon which it is assessed or within
such other time as the Board prescribes. The privilege tax
hereby imposed, until January 1, 2000, shall be a flat tax at
the rate of 2% of the daily pari-mutuel handle except as
provided in Section 27.1.
In addition, every organization licensee, except as
provided in Section 27.1 of this Act, which conducts multiple
wagering shall pay, until January 1, 2000, as a privilege tax
on multiple wagers an amount equal to 1.25% of all moneys
wagered each day on such multiple wagers, plus an additional
amount equal to 3.5% of the amount wagered each day on any
other multiple wager which involves a single betting interest
on 3 or more horses. The licensee shall remit the amount of
such taxes to the Department of Revenue within 48 hours after
the close of the racing day on which it is assessed or within
such other time as the Board prescribes.
This subsection (a) shall be inoperative and of no force
and effect on and after January 1, 2000.
(a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
at the rate of 1.5% of the daily pari-mutuel handle is imposed
at all pari-mutuel wagering facilities and on advance deposit
wagering from a location other than a wagering facility, except
as otherwise provided for in this subsection (a-5). In addition
to the pari-mutuel tax imposed on advance deposit wagering
pursuant to this subsection (a-5), beginning on August 24, 2012
(the effective date of Public Act 97-1060) and through December
shall be imposed on advance deposit wagering. Until August 25,
2012, the additional 0.25% pari-mutuel tax imposed on advance
deposit wagering by Public Act 96-972 shall be deposited into
the Quarter Horse Purse Fund, which shall be created as a
non-appropriated trust fund administered by the Board for
grants to thoroughbred organization licensees for payment of
purses for quarter horse races conducted by the organization
licensee. Beginning on August 26, 2012, the additional 0.25%
pari-mutuel tax imposed on advance deposit wagering shall be
deposited into the Standardbred Purse Fund, which shall be
created as a non-appropriated trust fund administered by the
Board, for grants to the standardbred organization licensees
for payment of purses for standardbred horse races conducted by
the organization licensee. Thoroughbred organization licensees
may petition the Board to conduct quarter horse racing and
receive purse grants from the Quarter Horse Purse Fund. The
Board shall have complete discretion in distributing the
Quarter Horse Purse Fund to the petitioning organization
licensees. Beginning on July 26, 2010 (the effective date of
Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
the daily pari-mutuel handle is imposed at a pari-mutuel
facility whose license is derived from a track located in a
county that borders the Mississippi River and conducted live
racing in the previous year. The pari-mutuel tax imposed by
this subsection (a-5) shall be remitted to the Department of
Revenue within 48 hours after the close of the racing day upon
which it is assessed or within such other time as the Board
prescribes.
(a-10) Beginning on the date when an organization licensee
begins conducting gaming pursuant to an organization gaming
license, the following pari-mutuel tax is imposed upon an
organization licensee on Illinois races at the licensee's
racetrack:
1.5% of the pari-mutuel handle at or below the average
daily pari-mutuel handle for 2011.
2% of the pari-mutuel handle above the average daily
pari-mutuel handle for 2011 up to 125% of the average daily
pari-mutuel handle for 2011.
2.5% of the pari-mutuel handle 125% or more above the
average daily pari-mutuel handle for 2011 up to 150% of the
average daily pari-mutuel handle for 2011.
3% of the pari-mutuel handle 150% or more above the
average daily pari-mutuel handle for 2011 up to 175% of the
average daily pari-mutuel handle for 2011.
3.5% of the pari-mutuel handle 175% or more above the
average daily pari-mutuel handle for 2011.
The pari-mutuel tax imposed by this subsection (a-10) shall
be remitted to the Board within 48 hours after the close of the
racing day upon which it is assessed or within such other time
as the Board prescribes.
(b) On or before December 31, 1999, in the event that any
organization licensee conducts 2 separate programs of races on
any day, each such program shall be considered a separate
racing day for purposes of determining the daily handle and
computing the privilege tax on such daily handle as provided in
subsection (a) of this Section.
(c) Licensees shall at all times keep accurate books and
records of all monies wagered on each day of a race meeting and
of the taxes paid to the Department of Revenue under the
provisions of this Section. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to such records for the purpose of examining
and checking the same and ascertaining whether the proper
amount of taxes is being paid as provided. The Board shall
require verified reports and a statement of the total of all
monies wagered daily at each wagering facility upon which the
taxes are assessed and may prescribe forms upon which such
reports and statement shall be made.
(d) Before a license is issued or re-issued, the licensee
shall post a bond in the sum of $500,000 to the State of
Illinois. The bond shall be used to guarantee that the licensee
faithfully makes the payments, keeps the books and records and
makes reports, and conducts games of chance in conformity with
this Act and the rules adopted by the Board. The bond shall not
be canceled by a surety on less than 30 days' notice in writing
to the Board. If a bond is canceled and the licensee fails to
file a new bond with the Board in the required amount on or
before the effective date of cancellation, the licensee's
license shall be revoked. The total and aggregate liability of
the surety on the bond is limited to the amount specified in
the bond. Any licensee failing or refusing to pay the amount of
(e) No other license fee, privilege tax, excise tax, or
racing fee, except as provided in this Act, shall be assessed
or collected from any such licensee by the State.
(f) No other license fee, privilege tax, excise tax or
racing fee shall be assessed or collected from any such
licensee by units of local government except as provided in
paragraph 10.1 of subsection (h) and subsection (f) of Section
26 of this Act. However, any municipality that has a Board
licensed horse race meeting at a race track wholly within its
corporate boundaries or a township that has a Board licensed
horse race meeting at a race track wholly within the
unincorporated area of the township may charge a local
amusement tax not to exceed 10¢ per admission to such horse
race meeting by the enactment of an ordinance. However, any
municipality or county that has a Board licensed inter-track
wagering location facility wholly within its corporate
boundaries may each impose an admission fee not to exceed $1.00
per admission to such inter-track wagering location facility,
so that a total of not more than $2.00 per admission may be
imposed. Except as provided in subparagraph (g) of Section 27
of this Act, the inter-track wagering location licensee shall
collect any and all such fees and within 48 hours remit the
fees to the Board as the Board prescribes, which shall,
pursuant to rule, cause the fees to be distributed to the
county or municipality.
(g) Notwithstanding any provision in this Act to the
contrary, if in any calendar year the total taxes and fees from
wagering on live racing and from inter-track wagering required
to be collected from licensees and distributed under this Act
to all State and local governmental authorities exceeds the
amount of such taxes and fees distributed to each State and
local governmental authority to which each State and local
governmental authority was entitled under this Act for calendar
year 1994, then the first $11 million of that excess amount
shall be allocated at the earliest possible date for
distribution as purse money for the succeeding calendar year.
Upon reaching the 1994 level, and until the excess amount of
taxes and fees exceeds $11 million, the Board shall direct all
licensees to cease paying the subject taxes and fees and the
Board shall direct all licensees to allocate any such excess
amount for purses as follows:
(i) the excess amount shall be initially divided
between thoroughbred and standardbred purses based on the
thoroughbred's and standardbred's respective percentages
of total Illinois live wagering in calendar year 1994;
(ii) each thoroughbred and standardbred organization
licensee issued an organization licensee in that
succeeding allocation year shall be allocated an amount
equal to the product of its percentage of total Illinois
live thoroughbred or standardbred wagering in calendar
year 1994 (the total to be determined based on the sum of
1994 on-track wagering for all organization licensees
issued organization licenses in both the allocation year
and the preceding year) multiplied by the total amount
allocated for standardbred or thoroughbred purses,
provided that the first $1,500,000 of the amount allocated
to standardbred purses under item (i) shall be allocated to
the Department of Agriculture to be expended with the
assistance and advice of the Illinois Standardbred
Breeders Funds Advisory Board for the purposes listed in
subsection (g) of Section 31 of this Act, before the amount
allocated to standardbred purses under item (i) is
allocated to standardbred organization licensees in the
succeeding allocation year.
To the extent the excess amount of taxes and fees to be
collected and distributed to State and local governmental
authorities exceeds $11 million, that excess amount shall be
collected and distributed to State and local authorities as
provided for under this Act.
(Source: P.A. 99-756, eff. 8-12-16; 100-627, eff. 7-20-18.)
(230 ILCS 5/29) (from Ch. 8, par. 37-29)
Sec. 29. (a) After the privilege or pari-mutuel tax
established in Sections 26(f), 27, and 27.1 is paid to the
State from the monies retained by the organization licensee
pursuant to Sections 26, 26.2, and 26.3, the remainder of those
monies retained pursuant to Sections 26 and 26.2, except as
provided in subsection (g) of Section 27 of this Act, shall be
allocated evenly to the organization licensee and as purses.
(b) (Blank).
(c) (Blank).
(d) From the amounts generated for purses from all sources,
including, but not limited to, amounts generated from wagering
conducted by organization licensees, organization gaming
licensees, inter-track wagering licensees, inter-track
wagering location licensees, and advance deposit wagering
licensees, an organization licensee shall pay to an
organization representing the largest number of horse owners
and trainers in Illinois, for thoroughbred and standardbred
horses that race at the track of the organization licensee, an
amount equal to at least 5% of any and all revenue earned by
the organization licensee for purses for that calendar year. A
contract with the appropriate thoroughbred or standardbred
horsemen organization shall be negotiated and signed by the
organization licensee before the beginning of each calendar
year. Amounts may be used for any legal purpose, including, but
not limited to, operational expenses, programs for backstretch
workers, retirement plans, diversity scholarships, horse
aftercare programs, workers compensation insurance fees, and
horse ownership programs. Financial statements highlighting
how the funding is spent shall be provided upon request to the
organization licensee. The appropriate thoroughbred or
standardbred horsemen organization shall make that information
available on its website.
(Source: P.A. 91-40, eff. 6-25-99.)
(230 ILCS 5/30) (from Ch. 8, par. 37-30)
Sec. 30. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of thoroughbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality thoroughbred horses to participate in
thoroughbred racing meetings in this State, and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.
(b) Each organization licensee conducting a thoroughbred
racing meeting pursuant to this Act shall provide at least two
races each day limited to Illinois conceived and foaled horses
or Illinois foaled horses or both. A minimum of 6 races shall
be conducted each week limited to Illinois conceived and foaled
or Illinois foaled horses or both. No horses shall be permitted
to start in such races unless duly registered under the rules
of the Department of Agriculture.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality, and class of
Illinois conceived and foaled and Illinois foaled horses
available. If, however, sufficient competition cannot be had
among horses of that class on any day, the races may, with
consent of the Board, be eliminated for that day and substitute
races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Thoroughbred Breeders
Fund.
Beginning on the effective date of this amendatory Act of
the 101st General Assembly, the Illinois Thoroughbred Breeders
Fund shall become a non-appropriated trust fund held separate
from State moneys. Expenditures from this Fund shall no longer
be subject to appropriation.
Except as provided in subsection (g) of Section 27 of this
Act, 8.5% of all the monies received by the State as privilege
taxes on Thoroughbred racing meetings shall be paid into the
Illinois Thoroughbred Breeders Fund.
Notwithstanding any provision of law to the contrary,
amounts deposited into the Illinois Thoroughbred Breeders Fund
from revenues generated by gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act after the
effective date of this amendatory Act of the 101st General
Assembly shall be in addition to tax and fee amounts paid under
this Section for calendar year 2019 and thereafter.
(e) The Illinois Thoroughbred Breeders Fund shall be
administered by the Department of Agriculture with the advice
and assistance of the Advisory Board created in subsection (f)
of this Section.
(f) The Illinois Thoroughbred Breeders Fund Advisory Board
shall consist of the Director of the Department of Agriculture,
who shall serve as Chairman; a member of the Illinois Racing
Board, designated by it; 2 representatives of the organization
licensees conducting thoroughbred racing meetings, recommended
by them; 2 representatives of the Illinois Thoroughbred
Breeders and Owners Foundation, recommended by it; one
representative and 2 representatives of the Horsemen's
Benevolent Protective Association; and one representative from
the Illinois Thoroughbred Horsemen's Association or any
serve for 2 years commencing January 1 of each odd numbered
year. If representatives of the organization licensees
conducting thoroughbred racing meetings, the Illinois
Thoroughbred Breeders and Owners Foundation, and the
Horsemen's Benevolent Protection Association, and the Illinois
Thoroughbred Horsemen's Association have not been recommended
by January 1, of each odd numbered year, the Director of the
Department of Agriculture shall make an appointment for the
organization failing to so recommend a member of the Advisory
Board. Advisory Board members shall receive no compensation for
their services as members but shall be reimbursed for all
actual and necessary expenses and disbursements incurred in the
execution of their official duties.
(g) No monies shall be expended from the Illinois
Illinois Thoroughbred Breeders Fund shall be expended by the
Department of Agriculture, with the advice and assistance of
the Illinois Thoroughbred Breeders Fund Advisory Board, for the
following purposes only:
(1) To provide purse supplements to owners of horses
participating in races limited to Illinois conceived and
foaled and Illinois foaled horses. Any such purse
supplements shall not be included in and shall be paid in
addition to any purses, stakes, or breeders' awards offered
by each organization licensee as determined by agreement
between such organization licensee and an organization
representing the horsemen. No monies from the Illinois
Thoroughbred Breeders Fund shall be used to provide purse
supplements for claiming races in which the minimum
claiming price is less than $7,500.
(2) To provide stakes and awards to be paid to the
owners of the winning horses in certain races limited to
Illinois conceived and foaled and Illinois foaled horses
designated as stakes races.
(2.5) To provide an award to the owner or owners of an
Illinois conceived and foaled or Illinois foaled horse that
wins a maiden special weight, an allowance, overnight
handicap race, or claiming race with claiming price of
$10,000 or more providing the race is not restricted to
Illinois conceived and foaled or Illinois foaled horses.
Awards shall also be provided to the owner or owners of
Illinois conceived and foaled and Illinois foaled horses
that place second or third in those races. To the extent
that additional moneys are required to pay the minimum
additional awards of 40% of the purse the horse earns for
placing first, second or third in those races for Illinois
foaled horses and of 60% of the purse the horse earns for
placing first, second or third in those races for Illinois
conceived and foaled horses, those moneys shall be provided
from the purse account at the track where earned.
(3) To provide stallion awards to the owner or owners
of any stallion that is duly registered with the Illinois
Thoroughbred Breeders Fund Program prior to the effective
Illinois conceived and foaled offspring wins a race
conducted at an Illinois thoroughbred racing meeting other
than a claiming race, provided that the stallion stood
service within Illinois at the time the offspring was
conceived and that the stallion did not stand for service
outside of Illinois at any time during the year in which
the offspring was conceived. Such award shall not be paid
(4) To provide $75,000 annually for purses to be
distributed to county fairs that provide for the running of
races during each county fair exclusively for the
thoroughbreds conceived and foaled in Illinois. The
conditions of the races shall be developed by the county
fair association and reviewed by the Department with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. There shall be no wagering of
any kind on the running of Illinois conceived and foaled
races at county fairs.
(4.1) To provide purse money for an Illinois stallion
stakes program.
(5) No less than 90% 80% of all monies expended
shall be expended for the purposes in (1), (2), (2.5), (3),
(4), (4.1), and (5) as shown above.
(6) To provide for educational programs regarding the
thoroughbred breeding industry.
(7) To provide for research programs concerning the
health, development and care of the thoroughbred horse.
(8) To provide for a scholarship and training program
for students of equine veterinary medicine.
(9) To provide for dissemination of public information
designed to promote the breeding of thoroughbred horses in
Illinois.
(10) To provide for all expenses incurred in the
administration of the Illinois Thoroughbred Breeders Fund.
(h) The Illinois Thoroughbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act. Whenever the Governor finds that the amount in the
(i) A sum equal to 13% of the first prize money of every
purse won by an Illinois foaled or Illinois conceived and
foaled horse in races not limited to Illinois foaled horses or
Illinois conceived and foaled horses, or both, shall be paid by
the organization licensee conducting the horse race meeting.
Such sum shall be paid 50% from the organization licensee's
share of the money wagered and 50% from the purse account as
follows: 11 1/2% to the breeder of the winning horse and 1 1/2%
to the organization representing thoroughbred breeders and
owners who representative serves on the Illinois Thoroughbred
Breeders Fund Advisory Board for verifying the amounts of
breeders' awards earned, ensuring their distribution in
accordance with this Act, and servicing and promoting the
Illinois thoroughbred horse racing industry. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payments under paragraph (13) of subsection
(g) of Section 26 of this Act begins to receive funds from
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act, a sum equal to 21 1/2% of the first
prize money of every purse won by an Illinois foaled or an
Illinois conceived and foaled horse in races not limited to an
Illinois conceived and foaled horse, or both, shall be paid 30%
from the organization licensee's account and 70% from the purse
account as follows: 20% to the breeder of the winning horse and
1 1/2% to the organization representing thoroughbred breeders
and owners whose representatives serve on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, ensuring their
distribution in accordance with this Act, and servicing and
promoting the Illinois Thoroughbred racing industry. A sum
organization representing thoroughbred breeders and owners
shall cause all expenditures of monies received under this
subsection (i) to be audited at least annually by a registered
public accountant. The organization shall file copies of each
annual audit with the Racing Board, the Clerk of the House of
Representatives and the Secretary of the Senate, and shall make
copies of each annual audit available to the public upon
request and upon payment of the reasonable cost of photocopying
the requested number of copies. Such payments shall not reduce
any award to the owner of the horse or reduce the taxes payable
under this Act. Upon completion of its racing meet, each
organization licensee shall deliver to the organization
representing thoroughbred breeders and owners whose
representative serves on the Illinois Thoroughbred Breeders
Fund Advisory Board a listing of all the Illinois foaled and
the Illinois conceived and foaled horses which won breeders'
awards and the amount of such breeders' awards under this
subsection to verify accuracy of payments and assure proper
distribution of breeders' awards in accordance with the
provisions of this Act. Such payments shall be delivered by the
organization licensee within 30 days of the end of each race
meeting.
(j) A sum equal to 13% of the first prize money won in
every race limited to Illinois foaled horses or Illinois
conceived and foaled horses, or both, shall be paid in the
following manner by the organization licensee conducting the
horse race meeting, 50% from the organization licensee's share
of the money wagered and 50% from the purse account as follows:
11 1/2% to the breeders of the horses in each such race which
are the official first, second, third, and fourth finishers and
1 1/2% to the organization representing thoroughbred breeders
and owners whose representatives serve on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, ensuring their proper
distribution in accordance with this Act, and servicing and
promoting the Illinois horse racing industry. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payments under paragraph (13) of subsection
(g) of Section 26 of this Act begins to receive funds from
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act, a sum of 21 1/2% of every purse in a
race limited to Illinois foaled horses or Illinois conceived
and foaled horses, or both, shall be paid by the organization
licensee conducting the horse race meeting. Such sum shall be
paid 30% from the organization licensee's account and 70% from
the purse account as follows: 20% to the breeders of the horses
in each such race who are official first, second, third and
fourth finishers and 1 1/2% to the organization representing
thoroughbred breeders and owners whose representatives serve
on the Illinois Thoroughbred Breeders Fund Advisory Board for
verifying the amounts of breeders' awards earned, ensuring
their proper distribution in accordance with this Act, and
servicing and promoting the Illinois thoroughbred horse racing
industry. The organization representing thoroughbred breeders
and owners shall cause all expenditures of moneys received
under this subsection (j) to be audited at least annually by a
registered public accountant. The organization shall file
copies of each annual audit with the Racing Board, the Clerk of
the House of Representatives and the Secretary of the Senate,
and shall make copies of each annual audit available to the
public upon request and upon payment of the reasonable cost of
photocopying the requested number of copies. The copies of the
audit to the General Assembly shall be filed with the Clerk of
the House of Representatives and the Secretary of the Senate in
electronic form only, in the manner that the Clerk and the
Secretary shall direct. A sum equal to 12 1/2% of the first
The amounts 11 1/2% paid to the breeders in accordance with
this subsection shall be distributed as follows:
(1) 60% of such sum shall be paid to the breeder of the
horse which finishes in the official first position;
(2) 20% of such sum shall be paid to the breeder of the
horse which finishes in the official second position;
(3) 15% of such sum shall be paid to the breeder of the
horse which finishes in the official third position; and
(4) 5% of such sum shall be paid to the breeder of the
horse which finishes in the official fourth position.
Such payments shall not reduce any award to the owners of a
horse or reduce the taxes payable under this Act. Upon
completion of its racing meet, each organization licensee shall
deliver to the organization representing thoroughbred breeders
and owners whose representative serves on the Illinois
Thoroughbred Breeders Fund Advisory Board a listing of all the
Illinois foaled and the Illinois conceived and foaled horses
which won breeders' awards and the amount of such breeders'
awards in accordance with the provisions of this Act. Such
payments shall be delivered by the organization licensee within
30 days of the end of each race meeting.
(k) The term "breeder", as used herein, means the owner of
the mare at the time the foal is dropped. An "Illinois foaled
horse" is a foal dropped by a mare which enters this State on
or before December 1, in the year in which the horse is bred,
provided the mare remains continuously in this State until its
foal is born. An "Illinois foaled horse" also means a foal born
of a mare in the same year as the mare enters this State on or
before March 1, and remains in this State at least 30 days
after foaling, is bred back during the season of the foaling to
an Illinois Registered Stallion (unless a veterinarian
certifies that the mare should not be bred for health reasons),
and is not bred to a stallion standing in any other state
during the season of foaling. An "Illinois foaled horse" also
means a foal born in Illinois of a mare purchased at public
auction subsequent to the mare entering this State on or before
March 1 prior to February 1 of the foaling year providing the
mare is owned solely by one or more Illinois residents or an
Illinois entity that is entirely owned by one or more Illinois
residents.
(l) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Thoroughbred Breeders
Fund Advisory Board:
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of Illinois
at the time of a foal's conception. Such stallion must not
stand for service at any place outside the State of
Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect an application fee of up to $500 fees for the
registration of Illinois-eligible stallions. All fees
collected are to be held in trust accounts for the purposes
set forth in this Act and in accordance with Section 205-15
of the Department of Agriculture Law paid into the Illinois
(2) Provide for the registration of Illinois conceived
and foaled horses and Illinois foaled horses. No such horse
shall compete in the races limited to Illinois conceived
and foaled horses or Illinois foaled horses or both unless
registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The
Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be held in trust accounts
for the purposes set forth in this Act and in accordance
with Section 205-15 of the Department of Agriculture Law
person shall knowingly prepare or cause preparation of an
application for registration of such foals containing
false information.
(m) The Department of Agriculture, with the advice and
assistance of the Illinois Thoroughbred Breeders Fund Advisory
Board, shall provide that certain races limited to Illinois
conceived and foaled and Illinois foaled horses be stakes races
and determine the total amount of stakes and awards to be paid
to the owners of the winning horses in such races.
In determining the stakes races and the amount of awards
for such races, the Department of Agriculture shall consider
factors, including but not limited to, the amount of money
appropriated for the Illinois Thoroughbred Breeders Fund
program, organization licensees' contributions, availability
of stakes caliber horses as demonstrated by past performances,
whether the race can be coordinated into the proposed racing
dates within organization licensees' racing dates, opportunity
for colts and fillies and various age groups to race, public
wagering on such races, and the previous racing schedule.
(n) The Board and the organization organizational licensee
shall notify the Department of the conditions and minimum
purses for races limited to Illinois conceived and foaled and
Illinois foaled horses conducted for each organization
meeting. The Department of Agriculture with the advice and
assistance of the Illinois Thoroughbred Breeders Fund Advisory
Board may allocate monies for purse supplements for such races.
In determining whether to allocate money and the amount, the
Department of Agriculture shall consider factors, including
but not limited to, the amount of money appropriated for the
Illinois Thoroughbred Breeders Fund program, the number of
races that may occur, and the organization organizational
licensee's purse structure.
(o) (Blank).
(Source: P.A. 98-692, eff. 7-1-14.)
(230 ILCS 5/30.5)
Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.
(a) The General Assembly declares that it is the policy of
this State to encourage the breeding of racing quarter horses
in this State and the ownership of such horses by residents of
this State in order to provide for sufficient numbers of high
quality racing quarter horses in this State and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.
(b) There is hereby created a special fund in the State
Treasury to be known as the Illinois Racing Quarter Horse
Breeders Fund. Except as provided in subsection (g) of Section
27 of this Act, 8.5% of all the moneys received by the State as
pari-mutuel taxes on quarter horse racing shall be paid into
the Illinois Racing Quarter Horse Breeders Fund. The Illinois
Racing Quarter Horse Breeders Fund shall not be subject to
administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act.
(c) The Illinois Racing Quarter Horse Breeders Fund shall
be administered by the Department of Agriculture with the
advice and assistance of the Advisory Board created in
subsection (d) of this Section.
(d) The Illinois Racing Quarter Horse Breeders Fund
Advisory Board shall consist of the Director of the Department
of Agriculture, who shall serve as Chairman; a member of the
Illinois Racing Board, designated by it; one representative of
the organization licensees conducting pari-mutuel quarter
horse racing meetings, recommended by them; 2 representatives
of the Illinois Running Quarter Horse Association, recommended
by it; and the Superintendent of Fairs and Promotions from the
Department of Agriculture. Advisory Board members shall serve
for 2 years commencing January 1 of each odd numbered year. If
representatives have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture may make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but may be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(e) Moneys in No moneys shall be expended from the Illinois
Racing Quarter Horse Breeders Fund shall be expended by the
Department of Agriculture, with the advice and assistance of
the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
for the following purposes only:
(1) To provide stakes and awards to be paid to the
owners of the winning horses in certain races. This
provision is limited to Illinois conceived and foaled
horses.
(2) To provide an award to the owner or owners of an
Illinois conceived and foaled horse that wins a race when
pari-mutuel wagering is conducted; providing the race is
not restricted to Illinois conceived and foaled horses.
(3) To provide purse money for an Illinois stallion
stakes program.
(4) To provide for purses to be distributed for the
running of races during the Illinois State Fair and the
DuQuoin State Fair exclusively for quarter horses
conceived and foaled in Illinois.
(5) To provide for purses to be distributed for the
running of races at Illinois county fairs exclusively for
quarter horses conceived and foaled in Illinois.
(6) To provide for purses to be distributed for running
races exclusively for quarter horses conceived and foaled
in Illinois at locations in Illinois determined by the
Department of Agriculture with advice and consent of the
Illinois Racing Quarter Horse Breeders Fund Advisory
Board.
(7) No less than 90% of all moneys appropriated from
the Illinois Racing Quarter Horse Breeders Fund shall be
expended for the purposes in items (1), (2), (3), (4), and
(5) of this subsection (e).
(8) To provide for research programs concerning the
health, development, and care of racing quarter horses.
(9) To provide for dissemination of public information
designed to promote the breeding of racing quarter horses
in Illinois.
(10) To provide for expenses incurred in the
administration of the Illinois Racing Quarter Horse
Breeders Fund.
(f) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Racing Quarter Horse
Breeders Fund Advisory Board:
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of
Illinois, at the time of a foal's conception. Such stallion
must not stand for service at any place outside the State
of Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect application fees for the registration of
Illinois-eligible stallions. All fees collected are to be
paid into the Illinois Racing Quarter Horse Breeders Fund.
(2) Provide for the registration of Illinois conceived
and foaled horses. No such horse shall compete in the races
limited to Illinois conceived and foaled horses unless it
is registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The
Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be paid into the Illinois
Racing Quarter Horse Breeders Fund. No person shall
knowingly prepare or cause preparation of an application
for registration of such foals that contains false
information.
(g) The Department of Agriculture, with the advice and
assistance of the Illinois Racing Quarter Horse Breeders Fund
Advisory Board, shall provide that certain races limited to
Illinois conceived and foaled be stakes races and determine the
total amount of stakes and awards to be paid to the owners of
the winning horses in such races.
(Source: P.A. 98-463, eff. 8-16-13.)
(230 ILCS 5/31) (from Ch. 8, par. 37-31)
Sec. 31. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of standardbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality standardbred horses to participate in
harness racing meetings in this State, and to establish and
preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Section of this Act.
(b) Each organization licensee conducting a harness racing
meeting pursuant to this Act shall provide for at least two
races each race program limited to Illinois conceived and
foaled horses. A minimum of 6 races shall be conducted each
week limited to Illinois conceived and foaled horses. No horses
shall be permitted to start in such races unless duly
registered under the rules of the Department of Agriculture.
(b-5) Organization licensees, not including the Illinois
State Fair or the DuQuoin State Fair, shall provide stake races
and early closer races for Illinois conceived and foaled horses
so that purses distributed for such races shall be no less than
17% of total purses distributed for harness racing in that
calendar year in addition to any stakes payments and starting
fees contributed by horse owners.
(b-10) Each organization licensee conducting a harness
racing meeting pursuant to this Act shall provide an owner
award to be paid from the purse account equal to 12% of the
amount earned by Illinois conceived and foaled horses finishing
in the first 3 positions in races that are not restricted to
Illinois conceived and foaled horses. The owner awards shall
not be paid on races below the $10,000 claiming class.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality and class of
Illinois conceived and foaled horses available. If, however,
sufficient competition cannot be had among horses of that class
on any day, the races may, with consent of the Board, be
eliminated for that day and substitute races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Standardbred Breeders
Fund. Beginning on the effective date of this amendatory Act of
the 101st General Assembly, the Illinois Standardbred Breeders
Fund shall become a non-appropriated trust fund held separate
and apart from State moneys. Expenditures from this Fund shall
no longer be subject to appropriation.
During the calendar year 1981, and each year thereafter,
except as provided in subsection (g) of Section 27 of this Act,
eight and one-half per cent of all the monies received by the
State as privilege taxes on harness racing meetings shall be
paid into the Illinois Standardbred Breeders Fund.
(e) Notwithstanding any provision of law to the contrary,
amounts deposited into the Illinois Standardbred Breeders Fund
from revenues generated by gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act after the
effective date of this amendatory Act of the 101st General
Assembly shall be in addition to tax and fee amounts paid under
this Section for calendar year 2019 and thereafter. The
Illinois Standardbred Breeders Fund shall be administered by
the Department of Agriculture with the assistance and advice of
the Advisory Board created in subsection (f) of this Section.
(f) The Illinois Standardbred Breeders Fund Advisory Board
is hereby created. The Advisory Board shall consist of the
Director of the Department of Agriculture, who shall serve as
Chairman; the Superintendent of the Illinois State Fair; a
member of the Illinois Racing Board, designated by it; a
representative of the largest association of Illinois
standardbred owners and breeders, recommended by it; a
representative of a statewide association representing
agricultural fairs in Illinois, recommended by it, such
representative to be from a fair at which Illinois conceived
and foaled racing is conducted; a representative of the
organization licensees conducting harness racing meetings,
recommended by them; a representative of the Breeder's
Committee of the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, recommended by it; and a representative of the
association representing the largest number of standardbred
owners, breeders, trainers, caretakers, and drivers,
recommended by it. Advisory Board members shall serve for 2
years commencing January 1 of each odd numbered year. If
representatives of the largest association of Illinois
standardbred owners and breeders, a statewide association of
agricultural fairs in Illinois, the association representing
the largest number of standardbred owners, breeders, trainers,
caretakers, and drivers, a member of the Breeder's Committee of
the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, and the organization licensees conducting harness
racing meetings have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture shall make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but shall be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(g) No monies shall be expended from the Illinois
Illinois Standardbred Breeders Fund shall be expended by the
Department of Agriculture, with the assistance and advice of
the Illinois Standardbred Breeders Fund Advisory Board for the
following purposes only:
1. To provide purses for races limited to Illinois
conceived and foaled horses at the State Fair and the
DuQuoin State Fair.
2. To provide purses for races limited to Illinois
conceived and foaled horses at county fairs.
3. To provide purse supplements for races limited to
Illinois conceived and foaled horses conducted by
associations conducting harness racing meetings.
4. No less than 75% of all monies in the Illinois
Standardbred Breeders Fund shall be expended for purses in
1, 2 and 3 as shown above.
5. In the discretion of the Department of Agriculture
to provide awards to harness breeders of Illinois conceived
and foaled horses which win races conducted by organization
licensees conducting harness racing meetings. A breeder is
the owner of a mare at the time of conception. No more than
10% of all monies appropriated from the Illinois
Standardbred Breeders Fund shall be expended for such
harness breeders awards. No more than 25% of the amount
expended for harness breeders awards shall be expended for
expenses incurred in the administration of such harness
breeders awards.
6. To pay for the improvement of racing facilities
located at the State Fair and County fairs.
7. To pay the expenses incurred in the administration
of the Illinois Standardbred Breeders Fund.
8. To promote the sport of harness racing, including
grants up to a maximum of $7,500 per fair per year for
conducting pari-mutuel wagering during the advertised
dates of a county fair.
9. To pay up to $50,000 annually for the Department of
Agriculture to conduct drug testing at county fairs racing
standardbred horses.
(h) The Illinois Standardbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act. Whenever the Governor finds that the amount in the
(i) A sum equal to 13% 12 1/2% of the first prize money of
the gross every purse won by an Illinois conceived and foaled
horse shall be paid 50% by the organization licensee conducting
the horse race meeting to the breeder of such winning horse
from the organization licensee's account and 50% from the purse
account of the licensee share of the money wagered. Such
payment shall not reduce any award to the owner of the horse or
reduce the taxes payable under this Act. Such payment shall be
delivered by the organization licensee at the end of each
quarter race meeting.
(j) The Department of Agriculture shall, by rule, with the
assistance and advice of the Illinois Standardbred Breeders
Fund Advisory Board:
1. Qualify stallions for Illinois Standardbred
Breeders Fund breeding; such stallion shall be owned by a
resident of the State of Illinois or by an Illinois
corporation all of whose shareholders, directors, officers
and incorporators are residents of the State of Illinois.
Such stallion shall stand for service at and within the
State of Illinois at the time of a foal's conception, and
such stallion must not stand for service at any place, nor
may semen from such stallion be transported, outside the
State of Illinois during that calendar year in which the
foal is conceived and that the owner of the stallion was
for the 12 months prior, a resident of Illinois. However,
from January 1, 2018 until January 1, 2022, semen from an
Illinois stallion may be transported outside the State of
Illinois. The articles of agreement of any partnership,
joint venture, limited partnership, syndicate, association
or corporation and any bylaws and stock certificates must
contain a restriction that provides that the ownership or
transfer of interest by any one of the persons a party to
the agreement can only be made to a person who qualifies as
an Illinois resident.
2. Provide for the registration of Illinois conceived
and foaled horses and no such horse shall compete in the
races limited to Illinois conceived and foaled horses
unless registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as may
be necessary to determine the eligibility of such horses.
No person shall knowingly prepare or cause preparation of
an application for registration of such foals containing
false information. A mare (dam) must be in the State at
least 30 days prior to foaling or remain in the State at
least 30 days at the time of foaling. However, the
requirement that a mare (dam) must be in the State at least
30 days before foaling or remain in the State at least 30
days at the time of foaling shall not be in effect from
January 1, 2018 until January 1, 2022. Beginning with the
1996 breeding season and for foals of 1997 and thereafter,
a foal conceived by transported semen may be eligible for
Illinois conceived and foaled registration provided all
breeding and foaling requirements are met. The stallion
must be qualified for Illinois Standardbred Breeders Fund
breeding at the time of conception and the mare must be
inseminated within the State of Illinois. The foal must be
dropped in Illinois and properly registered with the
Department of Agriculture in accordance with this Act.
However, from January 1, 2018 until January 1, 2022, the
requirement for a mare to be inseminated within the State
of Illinois and the requirement for a foal to be dropped in
Illinois are inapplicable.
3. Provide that at least a 5 day racing program shall
be conducted at the State Fair each year, which program
shall include at least the following races limited to
Illinois conceived and foaled horses: (a) a two year old
Trot and Pace, and Filly Division of each; (b) a three year
old Trot and Pace, and Filly Division of each; (c) an aged
Trot and Pace, and Mare Division of each.
4. Provide for the payment of nominating, sustaining
and starting fees for races promoting the sport of harness
racing and for the races to be conducted at the State Fair
as provided in subsection (j) 3 of this Section provided
that the nominating, sustaining and starting payment
required from an entrant shall not exceed 2% of the purse
of such race. All nominating, sustaining and starting
payments shall be held for the benefit of entrants and
shall be paid out as part of the respective purses for such
races. Nominating, sustaining and starting fees shall be
held in trust accounts for the purposes as set forth in
this Act and in accordance with Section 205-15 of the
Department of Agriculture Law (20 ILCS 205/205-15).
5. Provide for the registration with the Department of
Agriculture of Colt Associations or county fairs desiring
to sponsor races at county fairs.
6. Provide for the promotion of producing standardbred
racehorses by providing a bonus award program for owners of
2-year-old horses that win multiple major stakes races that
are limited to Illinois conceived and foaled horses.
(k) The Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund Advisory
Board, may allocate monies for purse supplements for such
races. In determining whether to allocate money and the amount,
the Department of Agriculture shall consider factors,
including but not limited to, the amount of money appropriated
for the Illinois Standardbred Breeders Fund program, the number
of races that may occur, and an organization organizational
licensee's purse structure. The organization organizational
licensee shall notify the Department of Agriculture of the
conditions and minimum purses for races limited to Illinois
conceived and foaled horses to be conducted by each
organization organizational licensee conducting a harness
racing meeting for which purse supplements have been
negotiated.
(l) All races held at county fairs and the State Fair which
receive funds from the Illinois Standardbred Breeders Fund
shall be conducted in accordance with the rules of the United
States Trotting Association unless otherwise modified by the
Department of Agriculture.
(m) At all standardbred race meetings held or conducted
under authority of a license granted by the Board, and at all
standardbred races held at county fairs which are approved by
the Department of Agriculture or at the Illinois or DuQuoin
State Fairs, no one shall jog, train, warm up or drive a
standardbred horse unless he or she is wearing a protective
safety helmet, with the chin strap fastened and in place, which
meets the standards and requirements as set forth in the 1984
Standard for Protective Headgear for Use in Harness Racing and
Other Equestrian Sports published by the Snell Memorial
Foundation, or any standards and requirements for headgear the
Illinois Racing Board may approve. Any other standards and
requirements so approved by the Board shall equal or exceed
those published by the Snell Memorial Foundation. Any
equestrian helmet bearing the Snell label shall be deemed to
have met those standards and requirements.
(Source: P.A. 99-756, eff. 8-12-16; 100-777, eff. 8-10-18.)
(230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
Sec. 31.1. (a) Unless subsection (a-5) applies,
organization Organization licensees collectively shall
contribute annually to charity the sum of $750,000 to
non-profit organizations that provide medical and family,
counseling, and similar services to persons who reside or work
on the backstretch of Illinois racetracks. Unless subsection
(a-5) applies, these These contributions shall be collected as
follows: (i) no later than July 1st of each year the Board
shall assess each organization licensee, except those tracks
located in Madison County, which are not within 100 miles of
the Board charity fund, that amount which equals $690,000
multiplied by the amount of pari-mutuel wagering handled by the
organization licensee in the year preceding assessment and
divided by the total pari-mutuel wagering handled by all
Illinois organization licensees, except those tracks located
in Madison and Rock Island counties which are not within 100
notice of the assessed contribution shall be mailed to each
organization licensee; (iii) within thirty days of its receipt
of such notice, each organization licensee shall remit the
assessed contribution to the Board. Unless subsection (a-5)
applies, if an organization licensee commences operation of
gaming at its facility pursuant to an organization gaming
license under the Illinois Gambling Act, then the organization
licensee shall contribute an additional $83,000 per year
beginning in the year subsequent to the first year in which the
organization licensee begins receiving funds from gaming
pursuant to an organization gaming license. If an organization
licensee wilfully fails to so remit the contribution, the Board
may revoke its license to conduct horse racing.
(a-5) If (1) an organization licensee that did not operate
live racing in 2017 is awarded racing dates in 2018 or in any
subsequent year and (2) all organization licensees are
operating gaming pursuant to an organization gaming license
under the Illinois Gambling Act, then subsection (a) does not
apply and organization licensees collectively shall contribute
annually to charity the sum of $1,000,000 to non-profit
organizations that provide medical and family, counseling, and
similar services to persons who reside or work on the
backstretch of Illinois racetracks. These contributions shall
be collected as follows: (i) no later than July 1st of each
year the Board shall assess each organization licensee an
amount based on the proportionate amount of live racing days in
the calendar year for which the Board has awarded to the
organization licensee out of the total aggregate number of live
racing days awarded; (ii) notice of the assessed contribution
shall be mailed to each organization licensee; (iii) within 30
days after its receipt of such notice, each organization
licensee shall remit the assessed contribution to the Board. If
an organization licensee willfully fails to so remit the
contribution, the Board may revoke its license to conduct horse
racing.
(b) No later than October 1st of each year, any qualified
charitable organization seeking an allotment of contributed
funds shall submit to the Board an application for those funds,
using the Board's approved form. No later than December 31st of
each year, the Board shall distribute all such amounts
collected that year to such charitable organization
applicants.
(Source: P.A. 87-110.)
(230 ILCS 5/32.1)
Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
real estate equalization.
(a) In order to encourage new investment in Illinois
racetrack facilities and mitigate differing real estate tax
burdens among all racetracks, the licensees affiliated or
associated with each racetrack that has been awarded live
racing dates in the current year shall receive an immediate
pari-mutuel tax credit in an amount equal to the greater of (i)
50% of the amount of the real estate taxes paid in the prior
year attributable to that racetrack, or (ii) the amount by
which the real estate taxes paid in the prior year attributable
to that racetrack exceeds 60% of the average real estate taxes
paid in the prior year for all racetracks awarded live horse
racing meets in the current year.
Each year, regardless of whether the organization licensee
conducted live racing in the year of certification, the Board
shall certify in writing, prior to December 31, the real estate
taxes paid in that year for each racetrack and the amount of
the pari-mutuel tax credit that each organization licensee,
inter-track wagering licensee, and inter-track wagering
location licensee that derives its license from such racetrack
is entitled in the succeeding calendar year. The real estate
taxes considered under this Section for any racetrack shall be
those taxes on the real estate parcels and related facilities
used to conduct a horse race meeting and inter-track wagering
at such racetrack under this Act. In no event shall the amount
of the tax credit under this Section exceed the amount of
pari-mutuel taxes otherwise calculated under this Act. The
amount of the tax credit under this Section shall be retained
by each licensee and shall not be subject to any reallocation
or further distribution under this Act. The Board may
promulgate emergency rules to implement this Section.
(b) If the organization licensee is operating gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, except the organization licensee
described in Section 19.5, then, for the 5-year period
beginning on the January 1 of the calendar year immediately
following the calendar year during which an organization
licensee begins conducting gaming operations pursuant to an
organization gaming license issued under the Illinois Gambling
Act, the organization licensee shall make capital
expenditures, in an amount equal to no less than 50% of the tax
credit under this Section, to the improvement and maintenance
of the backstretch, including, but not limited to, backstretch
barns, dormitories, and services for backstretch workers.
Those capital expenditures must be in addition to, and not in
lieu of, the capital expenditures made for backstretch
improvements in calendar year 2015, as reported to the Board in
the organization licensee's application for racing dates and as
certified by the Board. The organization licensee is required
to annually submit the list and amounts of these capital
expenditures to the Board by January 30th of the year following
the expenditure.
(c) If the organization licensee is conducting gaming in
accordance with paragraph (b), then, after the 5-year period
beginning on January 1 of the calendar year immediately
following the calendar year during which an organization
licensee begins conducting gaming operations pursuant to an
organization gaming license issued under the Illinois Gambling
Act, the organization license is ineligible to receive a tax
credit under this Section.
(Source: P.A. 100-201, eff. 8-18-17.)
(230 ILCS 5/34.3 new)
Sec. 34.3. Drug testing. The Illinois Racing Board and the
Department of Agriculture shall jointly establish a program for
the purpose of conducting drug testing of horses at county
fairs and shall adopt any rules necessary for enforcement of
the program. The rules shall include appropriate penalties for
violations.
(230 ILCS 5/36) (from Ch. 8, par. 37-36)
Sec. 36. (a) Whoever administers or conspires to administer
to any horse a hypnotic, narcotic, stimulant, depressant or any
chemical substance which may affect the speed of a horse at any
time in any race where the purse or any part of the purse is
made of money authorized by any Section of this Act, except
those chemical substances permitted by ruling of the Board,
internally, externally or by hypodermic method in a race or
prior thereto, or whoever knowingly enters a horse in any race
within a period of 24 hours after any hypnotic, narcotic,
stimulant, depressant or any other chemical substance which may
affect the speed of a horse at any time, except those chemical
substances permitted by ruling of the Board, has been
administered to such horse either internally or externally or
by hypodermic method for the purpose of increasing or retarding
the speed of such horse shall be guilty of a Class 4 felony.
The Board shall suspend or revoke such violator's license.
(b) The term "hypnotic" as used in this Section includes
all barbituric acid preparations and derivatives.
(c) The term "narcotic" as used in this Section includes
opium and all its alkaloids, salts, preparations and
derivatives, cocaine and all its salts, preparations and
derivatives and substitutes.
(d) The provisions of this Section and the treatment
authorized in this Section apply to horses entered in and
competing in race meetings as defined in Section 3.07 of this
Act and to horses entered in and competing at any county fair.
(Source: P.A. 79-1185.)
(230 ILCS 5/40) (from Ch. 8, par. 37-40)
Sec. 40. (a) The imposition of any fine or penalty provided
in this Act shall not preclude the Board in its rules and
regulations from imposing a fine or penalty for any other
action which, in the Board's discretion, is a detriment or
impediment to horse racing.
(b) The Director of Agriculture or his or her authorized
representative shall impose the following monetary penalties
and hold administrative hearings as required for failure to
submit the following applications, lists, or reports within the
time period, date or manner required by statute or rule or for
removing a foal from Illinois prior to inspection:
(1) late filing of a renewal application for offering
or standing stallion for service:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 45
days late, $150; or
(C) if an application is submitted more than 45
days late, if filing of the application is allowed
under an administrative hearing, $250;
(2) late filing of list or report of mares bred:
(A) if a list or report is submitted no more than
30 days late, $50;
(B) if a list or report is submitted no more than
60 days late, $150; or
(C) if a list or report is submitted more than 60
days late, if filing of the list or report is allowed
under an administrative hearing, $250;
(3) filing an Illinois foaled thoroughbred mare status
report after the statutory deadline as provided in
subsection (k) of Section 30 of this Act December 31:
(A) if a report is submitted no more than 30 days
late, $50;
(B) if a report is submitted no more than 90 days
late, $150;
(C) if a report is submitted no more than 150 days
late, $250; or
(D) if a report is submitted more than 150 days
late, if filing of the report is allowed under an
administrative hearing, $500;
(4) late filing of application for foal eligibility
certificate:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 90
days late, $150;
(C) if an application is submitted no more than 150
days late, $250; or
(D) if an application is submitted more than 150
days late, if filing of the application is allowed
under an administrative hearing, $500;
(5) failure to report the intent to remove a foal from
Illinois prior to inspection, identification and
certification by a Department of Agriculture investigator,
$50; and
(6) if a list or report of mares bred is incomplete,
$50 per mare not included on the list or report.
Any person upon whom monetary penalties are imposed under
this Section 3 times within a 5-year period shall have any
further monetary penalties imposed at double the amounts set
forth above. All monies assessed and collected for violations
relating to thoroughbreds shall be paid into the Illinois
Thoroughbred Breeders Fund. All monies assessed and collected
for violations relating to standardbreds shall be paid into the
Illinois Standardbred Breeders Fund.
(Source: P.A. 99-933, eff. 1-27-17; 100-201, eff. 8-18-17.)
(230 ILCS 5/54.75)
Sec. 54.75. Horse Racing Equity Trust Fund.
(a) There is created a Fund to be known as the Horse Racing
Equity Trust Fund, which is a non-appropriated trust fund held
separate and apart from State moneys. The Fund shall consist of
moneys paid into it by owners licensees under the Illinois
Section. The Fund shall be administered by the Board. Moneys in
the Fund shall be distributed as directed and certified by the
Board in accordance with the provisions of subsection (b).
(b) The moneys deposited into the Fund, plus any accrued
interest on those moneys, shall be distributed within 10 days
after those moneys are deposited into the Fund as follows:
(1) Sixty percent of all moneys distributed under this
subsection shall be distributed to organization licensees
to be distributed at their race meetings as purses.
Fifty-seven percent of the amount distributed under this
paragraph (1) shall be distributed for thoroughbred race
meetings and 43% shall be distributed for standardbred race
meetings. Within each breed, moneys shall be allocated to
each organization licensee's purse fund in accordance with
the ratio between the purses generated for that breed by
that licensee during the prior calendar year and the total
purses generated throughout the State for that breed during
the prior calendar year by licensees in the current
calendar year.
(2) The remaining 40% of the moneys distributed under
this subsection (b) shall be distributed as follows:
(A) 11% shall be distributed to any person (or its
successors or assigns) who had operating control of a
racetrack that conducted live racing in 2002 at a
racetrack in a county with at least 230,000 inhabitants
that borders the Mississippi River and is a licensee in
the current year; and
(B) the remaining 89% shall be distributed pro rata
according to the aggregate proportion of total handle
from wagering on live races conducted in Illinois
(irrespective of where the wagers are placed) for
calendar years 2004 and 2005 to any person (or its
successors or assigns) who (i) had majority operating
control of a racing facility at which live racing was
conducted in calendar year 2002, (ii) is a licensee in
the current year, and (iii) is not eligible to receive
moneys under subparagraph (A) of this paragraph (2).
The moneys received by an organization licensee
under this paragraph (2) shall be used by each
organization licensee to improve, maintain, market,
and otherwise operate its racing facilities to conduct
live racing, which shall include backstretch services
and capital improvements related to live racing and the
backstretch. Any organization licensees sharing common
ownership may pool the moneys received and spent at all
racing facilities commonly owned in order to meet these
requirements.
If any person identified in this paragraph (2) becomes
ineligible to receive moneys from the Fund, such amount
shall be redistributed among the remaining persons in
proportion to their percentages otherwise calculated.
(c) The Board shall monitor organization licensees to
ensure that moneys paid to organization licensees under this
Section are distributed by the organization licensees as
provided in subsection (b).
(Source: P.A. 95-1008, eff. 12-15-08.)
(230 ILCS 5/56 new)
Sec. 56. Gaming pursuant to an organization gaming license.
(a) A person, firm, corporation, partnership, or limited
liability company having operating control of a racetrack may
apply to the Gaming Board for an organization gaming license.
An organization gaming license shall authorize its holder to
conduct gaming on the grounds of the racetrack of which the
organization gaming licensee has operating control. Only one
organization gaming license may be awarded for any racetrack. A
holder of an organization gaming license shall be subject to
the Illinois Gambling Act and rules of the Illinois Gaming
Board concerning gaming pursuant to an organization gaming
license issued under the Illinois Gambling Act. If the person,
firm, corporation, or limited liability company having
operating control of a racetrack is found by the Illinois
Gaming Board to be unsuitable for an organization gaming
license under the Illinois Gambling Act and rules of the Gaming
Board, that person, firm, corporation, or limited liability
company shall not be granted an organization gaming license.
Each license shall specify the number of gaming positions that
its holder may operate.
An organization gaming licensee may not permit patrons
under 21 years of age to be present in its organization gaming
facility, but the licensee may accept wagers on live racing and
inter-track wagers at its organization gaming facility.
(b) For purposes of this subsection, "adjusted gross
receipts" means an organization gaming licensee's gross
receipts less winnings paid to wagerers and shall also include
any amounts that would otherwise be deducted pursuant to
subsection (a-9) of Section 13 of the Illinois Gambling Act.
The adjusted gross receipts by an organization gaming licensee
from gaming pursuant to an organization gaming license issued
under the Illinois Gambling Act remaining after the payment of
taxes under Section 13 of the Illinois Gambling Act shall be
distributed as follows:
(1) Amounts shall be paid to the purse account at the
track at which the organization licensee is conducting
racing equal to the following:
12.75% of annual adjusted gross receipts up to and
including $93,000,000;
20% of annual adjusted gross receipts in excess of
$93,000,000 but not exceeding $100,000,000;
26.5% of annual adjusted gross receipts in excess
of $100,000,000 but not exceeding $125,000,000; and
20.5% of annual adjusted gross receipts in excess
of $125,000,000.
If 2 different breeds race at the same racetrack in the
same calendar year, the purse moneys allocated under this
subsection (b) shall be divided pro rata based on live
racing days awarded by the Board to that race track for
each breed. However, the ratio may not exceed 60% for
either breed, except if one breed is awarded fewer than 20
live racing days, in which case the purse moneys allocated
shall be divided pro rata based on live racing days.
(2) The remainder shall be retained by the organization
gaming licensee.
(c) Annually, from the purse account of an organization
licensee racing thoroughbred horses in this State, except for
in Madison County, an amount equal to 12% of the gaming
receipts from gaming pursuant to an organization gaming license
placed into the purse accounts shall be paid to the Illinois
Thoroughbred Breeders Fund and shall be used for owner awards;
a stallion program pursuant to paragraph (3) of subsection (g)
of Section 30 of this Act; and Illinois conceived and foaled
stakes races pursuant to paragraph (2) of subsection (g) of
Section 30 of this Act, as specifically designated by the
horsemen association representing the largest number of owners
and trainers who race at the organization licensee's race
meetings.
Annually, from the purse account of an organization
licensee racing thoroughbred horses in Madison County, an
amount equal to 10% of the gaming receipts from gaming pursuant
to an organization gaming license placed into the purse
accounts shall be paid to the Illinois Thoroughbred Breeders
Fund and shall be used for owner awards; a stallion program
pursuant to paragraph (3) of subsection (g) of Section 30 of
this Act; and Illinois conceived and foaled stakes races
pursuant to paragraph (2) of subsection (g) of Section 30 of
this Act, as specifically designated by the horsemen
association representing the largest number of owners and
trainers who race at the organization licensee's race meetings.
Annually, from the amounts generated for purses from all
sources, including, but not limited to, amounts generated from
wagering conducted by organization licensees, organization
gaming licensees, inter-track wagering licensees, inter-track
wagering locations licensees, and advance deposit wagering
licensees, or an organization licensee to the purse account of
an organization licensee conducting thoroughbred races at a
track in Madison County, an amount equal to 10% of adjusted
gross receipts as defined in subsection (b) of this Section
shall be paid to the horsemen association representing the
largest number of owners and trainers who race at the
organization licensee's race meets, to be used to for
operational expenses and may be also used for after care
programs for retired thoroughbred race horses, backstretch
laundry and kitchen facilities, a health insurance or
retirement program, the Future Farmers of America, and such
other programs.
Annually, from the purse account of organization licensees
conducting thoroughbred races at racetracks in Cook County,
$100,000 shall be paid for division and equal distribution to
the animal sciences department of each Illinois public
university system engaged in equine research and education on
or before the effective date of this amendatory Act of the
101st General Assembly for equine research and education.
(d) Annually, from the purse account of an organization
licensee racing standardbred horses, an amount equal to 15% of
the gaming receipts from gaming pursuant to an organization
gaming license placed into that purse account shall be paid to
the Illinois Standardbred Breeders Fund. Moneys deposited into
the Illinois Standardbred Breeders Fund shall be used for
standardbred racing as authorized in paragraphs 1, 2, 3, 8, and
9 of subsection (g) of Section 31 of this Act and for bonus
awards as authorized under paragraph 6 of subsection (j) of
Section 31 of this Act.
Section 35-55. The Riverboat Gambling Act is amended by
changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
11.1, 12, 13, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 and by
adding Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14,
and 7.15 as follows:
→ This is a key section in the proposal. It creates a Chicago megacasino with 4,000 positions as well as five other new casinos, each with up to 2,000 positions. It also increases the maximum number of positions at the state’s existing 10 casinos from 1,200 to 2,000. That could be an additional 23,000 gambling positions.
Other sections allow current riverboat casinos to relocate to dry land and adjust casino taxes.
Additional provisions require a study by a “nationally recognized casino gaming feasibility consultant” to determine “the feasibility of, and the ability to finance, a casino in the City of Chicago.” A separate commission is created to ensure minority- and women-owned businesses will participate in the construction and running of a Chicago casino.
Finally, this piece of the bill lays out how all the tax and licensing money generated from these casinos will be divvied up between the state and local governments.
(230 ILCS 10/1) (from Ch. 120, par. 2401)
Sec. 1. Short title. This Act shall be known and may be
cited as the Illinois Riverboat Gambling Act.
(Source: P.A. 86-1029.)
(230 ILCS 10/2) (from Ch. 120, par. 2402)
Sec. 2. Legislative Intent.
(a) This Act is intended to benefit the people of the State
of Illinois by assisting economic development, and promoting
Illinois tourism, and by increasing the amount of revenues
available to the State to assist and support education, and to
defray State expenses.
(b) While authorization of riverboat and casino gambling
will enhance investment, beautification, development and
tourism in Illinois, it is recognized that it will do so
successfully only if public confidence and trust in the
credibility and integrity of the gambling operations and the
regulatory process is maintained. Therefore, regulatory
provisions of this Act are designed to strictly regulate the
facilities, persons, associations and practices related to
gambling operations pursuant to the police powers of the State,
including comprehensive law enforcement supervision.
(c) The Illinois Gaming Board established under this Act
should, as soon as possible, inform each applicant for an
owners license of the Board's intent to grant or deny a
license.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/3) (from Ch. 120, par. 2403)
Sec. 3. Riverboat Gambling Authorized.
(a) Riverboat and casino gambling operations and gaming
operations pursuant to an organization gaming license and the
Act, are hereby authorized to the extent that they are carried
out in accordance with the provisions of this Act.
(b) This Act does not apply to the pari-mutuel system of
wagering used or intended to be used in connection with the
horse-race meetings as authorized under the Illinois Horse
Racing Act of 1975, lottery games authorized under the Illinois
Lottery Law, bingo authorized under the Bingo License and Tax
Act, charitable games authorized under the Charitable Games Act
or pull tabs and jar games conducted under the Illinois Pull
Tabs and Jar Games Act. This Act applies to gaming by an
organization gaming licensee authorized under the Illinois
Horse Racing Act of 1975 to the extent provided in that Act and
in this Act.
(c) Riverboat gambling conducted pursuant to this Act may
be authorized upon any water within the State of Illinois or
any water other than Lake Michigan which constitutes a boundary
of the State of Illinois. Notwithstanding any provision in this
subsection (c) to the contrary, a licensee that receives its
license pursuant to subsection (e-5) of Section 7 may conduct
riverboat gambling on Lake Michigan from a home dock located on
Lake Michigan subject to any limitations contained in Section
7. Notwithstanding any provision in this subsection (c) to the
contrary, a licensee may conduct gambling at its home dock
facility as provided in Sections 7 and 11. A licensee may
conduct riverboat gambling authorized under this Act
regardless of whether it conducts excursion cruises. A licensee
may permit the continuous ingress and egress of passengers for
the purpose of gambling.
(d) Gambling that is conducted in accordance with this Act
using slot machines and video games of chance and other
electronic gambling games as defined in both this Act and the
Illinois Horse Racing Act of 1975 is authorized.
(Source: P.A. 91-40, eff. 6-25-99.)
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
Board to a person or entity to perform an occupation which the
Board has identified as requiring a license to engage in
riverboat gambling, casino gambling, or gaming pursuant to an
organization gaming license issued under this Act in Illinois.
baccarat, twenty-one, poker, craps, slot machine, video game of
chance, roulette wheel, klondike table, punchboard, faro
layout, keno layout, numbers ticket, push card, jar ticket, or
pull tab which is authorized by the Board as a wagering device
under this Act.
permanently moored barge, or permanently moored barges that are
permanently fixed together to operate as one vessel, on which
lawful gambling is authorized and licensed as provided in this
Act.
"Slot machine" means any mechanical, electrical, or other
device, contrivance, or machine that is authorized by the Board
as a wagering device under this Act which, upon insertion of a
coin, currency, token, or similar object therein, or upon
payment of any consideration whatsoever, is available to play
or operate, the play or operation of which may deliver or
entitle the person playing or operating the machine to receive
cash, premiums, merchandise, tokens, or anything of value
whatsoever, whether the payoff is made automatically from the
machine or in any other manner whatsoever. A slot machine:
(1) may utilize spinning reels or video displays or
both;
(2) may or may not dispense coins, tickets, or tokens
to winning patrons;
(3) may use an electronic credit system for receiving
wagers and making payouts; and
(4) may simulate a table game.
"Slot machine" does not include table games authorized by
the Board as a wagering device under this Act.
to a person or entity to manage gambling operations conducted
by the State pursuant to Section 7.3.
the purpose of embarking passengers for and disembarking
passengers from the riverboat.
exchanged for the purchase of chips, tokens, or electronic
cards by riverboat patrons.
winnings paid to wagerers.
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
gambling games authorized under this Act upon a riverboat or in
a casino or authorized under this Act and the Illinois Horse
Racing Act of 1975 at an organization gaming facility.
an applicant bids and agrees to pay the State in return for an
owners license that is issued or re-issued on or after July 1,
2003.
"Table game" means a live gaming apparatus upon which
gaming is conducted or that determines an outcome that is the
object of a wager, including, but not limited to, baccarat,
twenty-one, blackjack, poker, craps, roulette wheel, klondike
table, punchboard, faro layout, keno layout, numbers ticket,
push card, jar ticket, pull tab, or other similar games that
are authorized by the Board as a wagering device under this
Act. "Table game" does not include slot machines or video games
of chance.
a disability" shall have the same meaning as defined in Section
2 of the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
"Casino" means a facility at which lawful gambling is
authorized as provided in this Act.
"Owners license" means a license to conduct riverboat or
casino gambling operations, but does not include an
organization gaming license.
"Licensed owner" means a person who holds an owners
license.
"Organization gaming facility" means that portion of an
organization licensee's racetrack facilities at which gaming
authorized under Section 7.7 is conducted.
"Organization gaming license" means a license issued by the
Illinois Gaming Board under Section 7.7 of this Act authorizing
gaming pursuant to that Section at an organization gaming
facility.
"Organization gaming licensee" means an entity that holds
an organization gaming license.
"Organization licensee" means an entity authorized by the
Illinois Racing Board to conduct pari-mutuel wagering in
accordance with the Illinois Horse Racing Act of 1975. With
respect only to gaming pursuant to an organization gaming
license, "organization licensee" includes the authorization
for gaming created under subsection (a) of Section 56 of the
Illinois Horse Racing Act of 1975.
(Source: P.A. 100-391, eff. 8-25-17.)
(230 ILCS 10/5) (from Ch. 120, par. 2405)
Sec. 5. Gaming Board.
(a) (1) There is hereby established the Illinois Gaming
Board, which shall have the powers and duties specified in this
Act, and all other powers necessary and proper to fully and
effectively execute this Act for the purpose of administering,
regulating, and enforcing the system of riverboat and casino
gambling established by this Act and gaming pursuant to an
organization gaming license issued under this Act. Its
jurisdiction shall extend under this Act to every person,
association, corporation, partnership and trust involved in
riverboat and casino gambling operations and gaming pursuant to
an organization gaming license issued under this Act in the
State of Illinois.
(2) The Board shall consist of 5 members to be appointed by
the Governor with the advice and consent of the Senate, one of
whom shall be designated by the Governor to be chairperson
practice, procedure and principles of gambling operations.
Each member shall either be a resident of Illinois or shall
certify that he or she will become a resident of Illinois
before taking office.
On and after the effective date of this amendatory Act of
the 101st General Assembly, new appointees to the Board must
include the following:
(A) One member who has received, at a minimum, a
bachelor's degree from an accredited school and at least 10
years of verifiable experience in the fields of
investigation and law enforcement.
(B) One member who is a certified public accountant
with experience in auditing and with knowledge of complex
corporate structures and transactions.
(C) One member who has 5 years' experience as a
principal, senior officer, or director of a company or
business with either material responsibility for the daily
operations and management of the overall company or
business or material responsibility for the policy making
of the company or business.
(D) One member who is an attorney licensed to practice
law in Illinois for at least 5 years.
Notwithstanding any provision of this subsection (a), the
requirements of subparagraphs (A) through (D) of this paragraph
(2) shall not apply to any person reappointed pursuant to
paragraph (3).
No more than 3 members of the Board may be from the same
political party. No Board member shall, within a period of one
year immediately preceding nomination, have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee, or a licensee under the
Illinois Horse Racing Act of 1975. Board members must publicly
disclose all prior affiliations with gaming interests,
including any compensation, fees, bonuses, salaries, and other
reimbursement received from a person or entity, or its parent
or affiliate, that has engaged in business with the Board, a
licensee, or a licensee under the Illinois Horse Racing Act of
1975. This disclosure must be made within 30 days after
nomination but prior to confirmation by the Senate and must be
made available to the members of the Senate. At least one
(3) The terms of office of the Board members shall be 3
years, except that the terms of office of the initial Board
members appointed pursuant to this Act will commence from the
effective date of this Act and run as follows: one for a term
ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
a term ending July 1, 1993. Upon the expiration of the
foregoing terms, the successors of such members shall serve a
term for 3 years and until their successors are appointed and
qualified for like terms. Vacancies in the Board shall be
filled for the unexpired term in like manner as original
appointments. Each member of the Board shall be eligible for
reappointment at the discretion of the Governor with the advice
and consent of the Senate.
(4) Each member of the Board shall receive $300 for each
day the Board meets and for each day the member conducts any
hearing pursuant to this Act. Each member of the Board shall
also be reimbursed for all actual and necessary expenses and
disbursements incurred in the execution of official duties.
(5) No person shall be appointed a member of the Board or
continue to be a member of the Board who is, or whose spouse,
child or parent is, a member of the board of directors of, or a
person financially interested in, any gambling operation
subject to the jurisdiction of this Board, or any race track,
race meeting, racing association or the operations thereof
subject to the jurisdiction of the Illinois Racing Board. No
Board member shall hold any other public office. No person
shall be a member of the Board who is not of good moral
character or who has been convicted of, or is under indictment
for, a felony under the laws of Illinois or any other state, or
the United States.
(5.5) No member of the Board shall engage in any political
activity. For the purposes of this Section, "political" means
any activity in support of or in connection with any campaign
for federal, State, or local elective office or any political
organization, but does not include activities (i) relating to
the support or opposition of any executive, legislative, or
administrative action (as those terms are defined in Section 2
of the Lobbyist Registration Act), (ii) relating to collective
bargaining, or (iii) that are otherwise in furtherance of the
person's official State duties or governmental and public
service functions.
(6) Any member of the Board may be removed by the Governor
for neglect of duty, misfeasance, malfeasance, or nonfeasance
in office or for engaging in any political activity.
(7) Before entering upon the discharge of the duties of his
office, each member of the Board shall take an oath that he
will faithfully execute the duties of his office according to
the laws of the State and the rules and regulations adopted
therewith and shall give bond to the State of Illinois,
approved by the Governor, in the sum of $25,000. Every such
bond, when duly executed and approved, shall be recorded in the
office of the Secretary of State. Whenever the Governor
determines that the bond of any member of the Board has become
or is likely to become invalid or insufficient, he shall
require such member forthwith to renew his bond, which is to be
approved by the Governor. Any member of the Board who fails to
take oath and give bond within 30 days from the date of his
appointment, or who fails to renew his bond within 30 days
after it is demanded by the Governor, shall be guilty of
neglect of duty and may be removed by the Governor. The cost of
any bond given by any member of the Board under this Section
shall be taken to be a part of the necessary expenses of the
Board.
(7.5) For the examination of all mechanical,
electromechanical, or electronic table games, slot machines,
slot accounting systems, sports wagering systems, and other
electronic gaming equipment, and the field inspection of such
systems, games, and machines, for compliance with this Act, the
Board shall may utilize the services of one or more independent
outside testing laboratories that have been accredited in
accordance with ISO/IEC 17025 by an accreditation body that is
a signatory to the International Laboratory Accreditation
Cooperation Mutual Recognition Agreement signifying they by a
Notwithstanding any law to the contrary, the Board shall
consider the licensing of independent outside testing
laboratory applicants in accordance with procedures
established by the Board by rule. The Board shall not withhold
its approval of an independent outside testing laboratory
license applicant that has been accredited as required under
this paragraph (7.5) and is licensed in gaming jurisdictions
comparable to Illinois. Upon the finalization of required
rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed
testing laboratory of the system's, game's, or machine
manufacturer's choice, notwithstanding the existence of
contracts between the Board and any independent testing
laboratory.
(8) The Board shall employ such personnel as may be
necessary to carry out its functions and shall determine the
salaries of all personnel, except those personnel whose
salaries are determined under the terms of a collective
bargaining agreement. No person shall be employed to serve the
Board who is, or whose spouse, parent or child is, an official
of, or has a financial interest in or financial relation with,
any operator engaged in gambling operations within this State
or any organization engaged in conducting horse racing within
this State. For the one year immediately preceding employment,
an employee shall not have been employed or received
compensation or fees for services from a person or entity, or
its parent or affiliate, that has engaged in business with the
Board, a licensee, or a licensee under the Illinois Horse
Racing Act of 1975. Any employee violating these prohibitions
shall be subject to termination of employment.
(9) An Administrator shall perform any and all duties that
the Board shall assign him. The salary of the Administrator
shall be determined by the Board and, in addition, he shall be
reimbursed for all actual and necessary expenses incurred by
him in discharge of his official duties. The Administrator
shall keep records of all proceedings of the Board and shall
preserve all records, books, documents and other papers
belonging to the Board or entrusted to its care. The
Administrator shall devote his full time to the duties of the
office and shall not hold any other office or employment.
(b) The Board shall have general responsibility for the
implementation of this Act. Its duties include, without
limitation, the following:
(1) To decide promptly and in reasonable order all
license applications. Any party aggrieved by an action of
the Board denying, suspending, revoking, restricting or
refusing to renew a license may request a hearing before
the Board. A request for a hearing must be made to the
Board in writing within 5 days after service of notice of
the action of the Board. Notice of the action of the Board
shall be served either by personal delivery or by certified
mail, postage prepaid, to the aggrieved party. Notice
served by certified mail shall be deemed complete on the
business day following the date of such mailing. The Board
shall conduct any such all requested hearings promptly and
in reasonable order;
(2) To conduct all hearings pertaining to civil
violations of this Act or rules and regulations promulgated
hereunder;
(3) To promulgate such rules and regulations as in its
judgment may be necessary to protect or enhance the
credibility and integrity of gambling operations
authorized by this Act and the regulatory process
hereunder;
(4) To provide for the establishment and collection of
all license and registration fees and taxes imposed by this
Act and the rules and regulations issued pursuant hereto.
All such fees and taxes shall be deposited into the State
Gaming Fund;
(5) To provide for the levy and collection of penalties
and fines for the violation of provisions of this Act and
the rules and regulations promulgated hereunder. All such
fines and penalties shall be deposited into the Education
Assistance Fund, created by Public Act 86-0018, of the
State of Illinois;
(6) To be present through its inspectors and agents any
time gambling operations are conducted on any riverboat, in
any casino, or at any organization gaming facility for the
purpose of certifying the revenue thereof, receiving
complaints from the public, and conducting such other
investigations into the conduct of the gambling games and
the maintenance of the equipment as from time to time the
Board may deem necessary and proper;
(7) To review and rule upon any complaint by a licensee
regarding any investigative procedures of the State which
are unnecessarily disruptive of gambling operations. The
need to inspect and investigate shall be presumed at all
times. The disruption of a licensee's operations shall be
proved by clear and convincing evidence, and establish
that: (A) the procedures had no reasonable law enforcement
purposes, and (B) the procedures were so disruptive as to
unreasonably inhibit gambling operations;
(8) To hold at least one meeting each quarter of the
fiscal year. In addition, special meetings may be called by
the Chairman or any 2 Board members upon 72 hours written
notice to each member. All Board meetings shall be subject
to the Open Meetings Act. Three members of the Board shall
constitute a quorum, and 3 votes shall be required for any
final determination by the Board. The Board shall keep a
complete and accurate record of all its meetings. A
majority of the members of the Board shall constitute a
quorum for the transaction of any business, for the
performance of any duty, or for the exercise of any power
which this Act requires the Board members to transact,
perform or exercise en banc, except that, upon order of the
Board, one of the Board members or an administrative law
judge designated by the Board may conduct any hearing
provided for under this Act or by Board rule and may
recommend findings and decisions to the Board. The Board
member or administrative law judge conducting such hearing
shall have all powers and rights granted to the Board in
this Act. The record made at the time of the hearing shall
be reviewed by the Board, or a majority thereof, and the
findings and decision of the majority of the Board shall
constitute the order of the Board in such case;
(9) To maintain records which are separate and distinct
from the records of any other State board or commission.
Such records shall be available for public inspection and
shall accurately reflect all Board proceedings;
(10) To file a written annual report with the Governor
on or before July 1 each year and such additional reports
as the Governor may request. The annual report shall
include a statement of receipts and disbursements by the
Board, actions taken by the Board, and any additional
information and recommendations which the Board may deem
valuable or which the Governor may request;
(11) (Blank);
(12) (Blank);
(13) To assume responsibility for administration and
enforcement of the Video Gaming Act; and
(13.1) To assume responsibility for the administration
and enforcement of operations at organization gaming
facilities pursuant to this Act and the Illinois Horse
Racing Act of 1975;
(13.2) To assume responsibility for the administration
and enforcement of the Sports Wagering Act; and
(14) To adopt, by rule, a code of conduct governing
Board members and employees that ensure, to the maximum
extent possible, that persons subject to this Code avoid
situations, relationships, or associations that may
represent or lead to a conflict of interest.
Internal controls and changes submitted by licensees must
be reviewed and either approved or denied with cause within 90
days after receipt of submission is deemed final by the
Illinois Gaming Board. In the event an internal control
submission or change does not meet the standards set by the
Board, staff of the Board must provide technical assistance to
the licensee to rectify such deficiencies within 90 days after
the initial submission and the revised submission must be
reviewed and approved or denied with cause within 90 days after
the date the revised submission is deemed final by the Board.
For the purposes of this paragraph, "with cause" means that the
approval of the submission would jeopardize the integrity of
gaming. In the event the Board staff has not acted within the
timeframe, the submission shall be deemed approved.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations governed by this Act. The
Board shall have all powers necessary and proper to fully and
effectively execute the provisions of this Act, including, but
not limited to, the following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
riverboat gambling operations authorized under this Act in
gambling operations are conducted.
(3) To promulgate rules and regulations for the purpose
of administering the provisions of this Act and to
prescribe rules, regulations and conditions under which
all riverboat gambling operations subject to this Act in
are to provide for the prevention of practices detrimental
to the public interest and for the best interests of
riverboat gambling, including rules and regulations
regarding the inspection of organization gaming
facilities, casinos, and such riverboats, and the review of
any permits or licenses necessary to operate a riverboat,
casino, or organization gaming facility under any laws or
regulations applicable to riverboats, casinos, or
organization gaming facilities and to impose penalties for
violations thereof.
(4) To enter the office, riverboats, casinos,
organization gaming facilities, and other facilities, or
other places of business of a licensee, where evidence of
the compliance or noncompliance with the provisions of this
Act is likely to be found.
(5) To investigate alleged violations of this Act or
the rules of the Board and to take appropriate disciplinary
action against a licensee or a holder of an occupational
license for a violation, or institute appropriate legal
action for enforcement, or both.
(6) To adopt standards for the licensing of all persons
and entities under this Act, as well as for electronic or
mechanical gambling games, and to establish fees for such
licenses.
(7) To adopt appropriate standards for all
organization gaming facilities, riverboats, casinos, and
other facilities authorized under this Act.
(8) To require that the records, including financial or
other statements of any licensee under this Act, shall be
kept in such manner as prescribed by the Board and that any
such licensee involved in the ownership or management of
gambling operations submit to the Board an annual balance
sheet and profit and loss statement, list of the
stockholders or other persons having a 1% or greater
beneficial interest in the gambling activities of each
licensee, and any other information the Board deems
necessary in order to effectively administer this Act and
all rules, regulations, orders and final decisions
promulgated under this Act.
(9) To conduct hearings, issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the
production of books, records and other pertinent documents
in accordance with the Illinois Administrative Procedure
Act, and to administer oaths and affirmations to the
witnesses, when, in the judgment of the Board, it is
necessary to administer or enforce this Act or the Board
rules.
(10) To prescribe a form to be used by any licensee
involved in the ownership or management of gambling
operations as an application for employment for their
employees.
(11) To revoke or suspend licenses, as the Board may
see fit and in compliance with applicable laws of the State
regarding administrative procedures, and to review
applications for the renewal of licenses. The Board may
suspend an owners license or an organization gaming
license , without notice or hearing upon a determination
that the safety or health of patrons or employees is
jeopardized by continuing a gambling operation conducted
under that license riverboat's operation. The suspension
may remain in effect until the Board determines that the
cause for suspension has been abated. The Board may revoke
an the owners license or organization gaming license upon a
determination that the licensee owner has not made
satisfactory progress toward abating the hazard.
(12) To eject or exclude or authorize the ejection or
exclusion of, any person from riverboat gambling
facilities where that such person is in violation of this
Act, rules and regulations thereunder, or final orders of
the Board, or where such person's conduct or reputation is
such that his or her presence within the riverboat gambling
facilities may, in the opinion of the Board, call into
question the honesty and integrity of the gambling
operations or interfere with the orderly conduct thereof;
provided that the propriety of such ejection or exclusion
is subject to subsequent hearing by the Board.
(13) To require all licensees of gambling operations to
utilize a cashless wagering system whereby all players'
money is converted to tokens, electronic cards, or chips
which shall be used only for wagering in the gambling
establishment.
(14) (Blank).
(15) To suspend, revoke or restrict licenses, to
require the removal of a licensee or an employee of a
licensee for a violation of this Act or a Board rule or for
engaging in a fraudulent practice, and to impose civil
penalties of up to $5,000 against individuals and up to
$10,000 or an amount equal to the daily gross receipts,
whichever is larger, against licensees for each violation
of any provision of the Act, any rules adopted by the
Board, any order of the Board or any other action which, in
the Board's discretion, is a detriment or impediment to
(16) To hire employees to gather information, conduct
investigations and carry out any other tasks contemplated
under this Act.
(17) To establish minimum levels of insurance to be
maintained by licensees.
(18) To authorize a licensee to sell or serve alcoholic
liquors, wine or beer as defined in the Liquor Control Act
of 1934 on board a riverboat or in a casino and to have
exclusive authority to establish the hours for sale and
consumption of alcoholic liquor on board a riverboat or in
a casino, notwithstanding any provision of the Liquor
Control Act of 1934 or any local ordinance, and regardless
of whether the riverboat makes excursions. The
establishment of the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino is an
exclusive power and function of the State. A home rule unit
may not establish the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino. This
subdivision (18) amendatory Act of 1991 is a denial and
limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(19) After consultation with the U.S. Army Corps of
Engineers, to establish binding emergency orders upon the
concurrence of a majority of the members of the Board
regarding the navigability of water, relative to
excursions, in the event of extreme weather conditions,
acts of God or other extreme circumstances.
(20) To delegate the execution of any of its powers
under this Act for the purpose of administering and
enforcing this Act and the its rules adopted by the Board
(20.5) To approve any contract entered into on its
behalf.
(20.6) To appoint investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these
powers shall be limited to offenses or violations occurring
or committed in a casino, in an organization gaming
facility, or on a riverboat or dock, as defined in
subsections (d) and (f) of Section 4, or as otherwise
provided by this Act or any other law.
(20.7) To contract with the Department of State Police
for the use of trained and qualified State police officers
and with the Department of Revenue for the use of trained
and qualified Department of Revenue investigators to
conduct investigations, searches, seizures, arrests, and
other duties imposed under this Act and to exercise all of
the rights and powers of peace officers, provided that the
powers of Department of Revenue investigators under this
subdivision (20.7) shall be limited to offenses or
violations occurring or committed in a casino, in an
organization gaming facility, or on a riverboat or dock, as
defined in subsections (d) and (f) of Section 4, or as
otherwise provided by this Act or any other law. In the
event the Department of State Police or the Department of
Revenue is unable to fill contracted police or
investigative positions, the Board may appoint
investigators to fill those positions pursuant to
subdivision (20.6).
(21) To adopt rules concerning the conduct of gaming
pursuant to an organization gaming license issued under
this Act.
(22) To have the same jurisdiction and supervision over
casinos and organization gaming facilities as the Board has
over riverboats, including, but not limited to, the power
to (i) investigate, review, and approve contracts as that
power is applied to riverboats, (ii) adopt rules for
administering the provisions of this Act, (iii) adopt
standards for the licensing of all persons involved with a
casino or organization gaming facility, (iv) investigate
alleged violations of this Act by any person involved with
a casino or organization gaming facility, and (v) require
that records, including financial or other statements of
any casino or organization gaming facility, shall be kept
in such manner as prescribed by the Board.
(23) (21) To take any other action as may be reasonable
or appropriate to enforce this Act and the rules adopted by
the Board and regulations hereunder.
(d) The Board may seek and shall receive the cooperation of
the Department of State Police in conducting background
investigations of applicants and in fulfilling its
responsibilities under this Section. Costs incurred by the
Department of State Police as a result of such cooperation
shall be paid by the Board in conformance with the requirements
of Section 2605-400 of the Department of State Police Law (20
(e) The Board must authorize to each investigator and to
any other employee of the Board exercising the powers of a
peace officer a distinct badge that, on its face, (i) clearly
states that the badge is authorized by the Board and (ii)
contains a unique identifying number. No other badge shall be
authorized by the Board.
(Source: P.A. 100-1152, eff. 12-14-18.)
(230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
Sec. 5.1. Disclosure of records.
(a) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, provide information furnished by an applicant or
licensee concerning the applicant or licensee, his products,
services or gambling enterprises and his business holdings, as
follows:
(1) The name, business address and business telephone
number of any applicant or licensee.
(2) An identification of any applicant or licensee
including, if an applicant or licensee is not an
individual, the names and addresses of all stockholders and
directors, if the entity is a corporation; the names and
addresses of all members, if the entity is a limited
liability company; the names and addresses of all partners,
both general and limited, if the entity is a partnership;
and the names and addresses of all beneficiaries, if the
entity is a trust the state of incorporation or
licensee has a pending registration statement filed with
the Securities and Exchange Commission, only the names of
those persons or entities holding interest of 5% or more
must be provided.
(3) An identification of any business, including, if
applicable, the state of incorporation or registration, in
which an applicant or licensee or an applicant's or
licensee's spouse or children has an equity interest of
more than 1%. If an applicant or licensee is a corporation,
partnership or other business entity, the applicant or
licensee shall identify any other corporation, partnership
or business entity in which it has an equity interest of 1%
or more, including, if applicable, the state of
incorporation or registration. This information need not
be provided by a corporation, partnership or other business
entity that has a pending registration statement filed with
the Securities and Exchange Commission.
(4) Whether an applicant or licensee has been indicted,
convicted, pleaded guilty or nolo contendere, or forfeited
bail concerning any criminal offense under the laws of any
jurisdiction, either felony or misdemeanor (except for
traffic violations), including the date, the name and
location of the court, arresting agency and prosecuting
agency, the case number, the offense, the disposition and
the location and length of incarceration.
(5) Whether an applicant or licensee has had any
license or certificate issued by a licensing authority in
Illinois or any other jurisdiction denied, restricted,
suspended, revoked or not renewed and a statement
describing the facts and circumstances concerning the
denial, restriction, suspension, revocation or
non-renewal, including the licensing authority, the date
each such action was taken, and the reason for each such
action.
(6) Whether an applicant or licensee has ever filed or
had filed against it a proceeding in bankruptcy or has ever
been involved in any formal process to adjust, defer,
suspend or otherwise work out the payment of any debt
including the date of filing, the name and location of the
court, the case and number of the disposition.
(7) Whether an applicant or licensee has filed, or been
served with a complaint or other notice filed with any
public body, regarding the delinquency in the payment of,
or a dispute over the filings concerning the payment of,
any tax required under federal, State or local law,
including the amount, type of tax, the taxing agency and
time periods involved.
(8) A statement listing the names and titles of all
public officials or officers of any unit of government, and
relatives of said public officials or officers who,
directly or indirectly, own any financial interest in, have
any beneficial interest in, are the creditors of or hold
any debt instrument issued by, or hold or have any interest
in any contractual or service relationship with, an
applicant or licensee.
(9) Whether an applicant or licensee has made, directly
or indirectly, any political contribution, or any loans,
donations or other payments, to any candidate or office
holder, within 5 years from the date of filing the
application, including the amount and the method of
payment.
(10) The name and business telephone number of the
counsel representing an applicant or licensee in matters
before the Board.
(11) A description of any proposed or approved gambling
home dock, or casino or gaming location, expected economic
benefit to the community, anticipated or actual number of
employees, any statement from an applicant or licensee
regarding compliance with federal and State affirmative
action guidelines, projected or actual admissions and
projected or actual adjusted gross gaming receipts.
(12) A description of the product or service to be
supplied by an applicant for a supplier's license.
(b) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, also provide the following information:
(1) The amount of the wagering tax and admission tax
paid daily to the State of Illinois by the holder of an
owner's license.
(2) Whenever the Board finds an applicant for an
owner's license unsuitable for licensing, a copy of the
written letter outlining the reasons for the denial.
(3) Whenever the Board has refused to grant leave for
an applicant to withdraw his application, a copy of the
letter outlining the reasons for the refusal.
(c) Subject to the above provisions, the Board shall not
disclose any information which would be barred by:
(1) Section 7 of the Freedom of Information Act; or
(2) The statutes, rules, regulations or
intergovernmental agreements of any jurisdiction.
(d) The Board may assess fees for the copying of
information in accordance with Section 6 of the Freedom of
Information Act.
(Source: P.A. 96-1392, eff. 1-1-11.)
(230 ILCS 10/5.3 new)
Sec. 5.3. Ethical conduct.
(a) Officials and employees of the corporate authority of a
host community must carry out their duties and responsibilities
in such a manner as to promote and preserve public trust and
confidence in the integrity and conduct of gaming.
(b) Officials and employees of the corporate authority of a
host community shall not use or attempt to use his or her
official position to secure or attempt to secure any privilege,
advantage, favor, or influence for himself or herself or
others.
(c) Officials and employees of the corporate authority of a
host community may not have a financial interest, directly or
indirectly, in his or her own name or in the name of any other
person, partnership, association, trust, corporation, or other
entity in any contract or subcontract for the performance of
any work for a riverboat or casino that is located in the host
community. This prohibition shall extend to the holding or
acquisition of an interest in any entity identified by Board
action that, in the Board's judgment, could represent the
potential for or the appearance of a financial interest. The
holding or acquisition of an interest in such entities through
an indirect means, such as through a mutual fund, shall not be
prohibited, except that the Board may identify specific
investments or funds that, in its judgment, are so influenced
by gaming holdings as to represent the potential for or the
appearance of a conflict of interest.
(d) Officials and employees of the corporate authority of a
host community may not accept any gift, gratuity, service,
compensation, travel, lodging, or thing of value, with the
exception of unsolicited items of an incidental nature, from
any person, corporation, or entity doing business with the
riverboat or casino that is located in the host community.
(e) Officials and employees of the corporate authority of a
host community shall not, during the period that the person is
an official or employee of the corporate authority or for a
period of 2 years immediately after leaving such office,
knowingly accept employment or receive compensation or fees for
services from a person or entity, or its parent or affiliate,
that has engaged in business with the riverboat or casino that
is located in the host community that resulted in contracts
with an aggregate value of at least $25,000 or if that official
or employee has made a decision that directly applied to the
person or entity, or its parent or affiliate.
(f) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not have a
financial interest, directly or indirectly, in his or her own
name or in the name of any other person, partnership,
association, trust, corporation, or other entity in any
contract or subcontract for the performance of any work for a
riverboat or casino in the host community. This prohibition
shall extend to the holding or acquisition of an interest in
any entity identified by Board action that, in the judgment of
the Board, could represent the potential for or the appearance
of a conflict of interest. The holding or acquisition of an
interest in such entities through an indirect means, such as
through a mutual fund, shall not be prohibited, expect that the
Board may identify specific investments or funds that, in its
judgment, are so influenced by gaming holdings as to represent
the potential for or the appearance of a conflict of interest.
(g) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not accept
any gift, gratuity, service, compensation, travel, lodging, or
thing of value, with the exception of unsolicited items of an
incidental nature, from any person, corporation, or entity
doing business with the riverboat or casino that is located in
the host community.
(h) A spouse, child, or parent of an official or employee
of the corporate authority of a host community may not, during
the period that the person is an official of the corporate
authority or for a period of 2 years immediately after leaving
such office or employment, knowingly accept employment or
receive compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the riverboat or casino that is located in the
host community that resulted in contracts with an aggregate
value of at least $25,000 or if that official or employee has
made a decision that directly applied to the person or entity,
or its parent or affiliate.
(i) Officials and employees of the corporate authority of a
host community shall not attempt, in any way, to influence any
person or entity doing business with the riverboat or casino
that is located in the host community or any officer, agent, or
employee thereof to hire or contract with any person or entity
for any compensated work.
(j) Any communication between an official of the corporate
authority of a host community and any applicant for an owners
license in the host community, or an officer, director, or
employee of a riverboat or casino in the host community,
concerning any matter relating in any way to gaming shall be
disclosed to the Board. Such disclosure shall be in writing by
the official within 30 days after the communication and shall
be filed with the Board. Disclosure must consist of the date of
the communication, the identity and job title of the person
with whom the communication was made, a brief summary of the
communication, the action requested or recommended, all
responses made, the identity and job title of the person making
the response, and any other pertinent information. Public
disclosure of the written summary provided to the Board and the
Gaming Board shall be subject to the exemptions provided under
the Freedom of Information Act.
This subsection (j) shall not apply to communications
regarding traffic, law enforcement, security, environmental
issues, city services, transportation, or other routine
matters concerning the ordinary operations of the riverboat or
casino. For purposes of this subsection (j), "ordinary
operations" means operations relating to the casino or
riverboat facility other than the conduct of gambling
activities, and "routine matters" includes the application
for, issuance of, renewal of, and other processes associated
with municipal permits and licenses.
(k) Any official or employee who violates any provision of
this Section is guilty of a Class 4 felony.
(l) For purposes of this Section, "host community" or "host
municipality" means a unit of local government that contains a
riverboat or casino within its borders.
(230 ILCS 10/6) (from Ch. 120, par. 2406)
Sec. 6. Application for Owners License.
(a) A qualified person may apply to the Board for an owners
license to conduct a riverboat gambling operation as provided
in this Act. The application shall be made on forms provided by
the Board and shall contain such information as the Board
prescribes, including but not limited to the identity of the
riverboat on which such gambling operation is to be conducted,
if applicable, and the exact location where such riverboat or
casino will be located docked, a certification that the
riverboat will be registered under this Act at all times during
which gambling operations are conducted on board, detailed
information regarding the ownership and management of the
applicant, and detailed personal information regarding the
applicant. Any application for an owners license to be
re-issued on or after June 1, 2003 shall also include the
applicant's license bid in a form prescribed by the Board.
Information provided on the application shall be used as a
basis for a thorough background investigation which the Board
shall conduct with respect to each applicant. An incomplete
application shall be cause for denial of a license by the
Board.
(a-5) In addition to any other information required under
this Section, each application for an owners license must
include the following information:
(1) The history and success of the applicant and each
person and entity disclosed under subsection (c) of this
Section in developing tourism facilities ancillary to
gaming, if applicable.
(2) The likelihood that granting a license to the
applicant will lead to the creation of quality, living wage
jobs and permanent, full-time jobs for residents of the
State and residents of the unit of local government that is
designated as the home dock of the proposed facility where
gambling is to be conducted by the applicant.
(3) The projected number of jobs that would be created
if the license is granted and the projected number of new
employees at the proposed facility where gambling is to be
conducted by the applicant.
(4) The record, if any, of the applicant and its
developer in meeting commitments to local agencies,
community-based organizations, and employees at other
locations where the applicant or its developer has
performed similar functions as they would perform if the
applicant were granted a license.
(5) Identification of adverse effects that might be
caused by the proposed facility where gambling is to be
conducted by the applicant, including the costs of meeting
increased demand for public health care, child care, public
transportation, affordable housing, and social services,
and a plan to mitigate those adverse effects.
(6) The record, if any, of the applicant and its
developer regarding compliance with:
(A) federal, state, and local discrimination, wage
and hour, disability, and occupational and
environmental health and safety laws; and
(B) state and local labor relations and employment
laws.
(7) The applicant's record, if any, in dealing with its
employees and their representatives at other locations.
(8) A plan concerning the utilization of
minority-owned and women-owned businesses and concerning
the hiring of minorities and women.
(9) Evidence the applicant used its best efforts to
reach a goal of 25% ownership representation by minority
persons and 5% ownership representation by women.
(b) Applicants shall submit with their application all
documents, resolutions, and letters of support from the
governing body that represents the municipality or county
wherein the licensee will be located dock.
(c) Each applicant shall disclose the identity of every
person or entity , association, trust or corporation having a
greater than 1% direct or indirect pecuniary interest in the
is sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of all the
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a partnership, the names and
addresses of all partners, both general and limited.
(d) An application shall be filed and considered in
accordance with the rules of the Board. Each application shall
be accompanied by a nonrefundable An application fee of
$250,000. In addition, a nonrefundable fee of $50,000 shall be
paid at the time of filing to defray the costs associated with
the background investigation conducted by the Board. If the
costs of the investigation exceed $50,000, the applicant shall
pay the additional amount to the Board within 7 days after
requested by the Board. If the costs of the investigation are
less than $50,000, the applicant shall receive a refund of the
remaining amount. All information, records, interviews,
reports, statements, memoranda or other data supplied to or
used by the Board in the course of its review or investigation
of an application for a license or a renewal under this Act
shall be privileged, strictly confidential and shall be used
only for the purpose of evaluating an applicant for a license
or a renewal. Such information, records, interviews, reports,
statements, memoranda or other data shall not be admissible as
evidence, nor discoverable in any action of any kind in any
court or before any tribunal, board, agency or person, except
for any action deemed necessary by the Board. The application
fee shall be deposited into the State Gaming Fund.
(e) The Board shall charge each applicant a fee set by the
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. These fees
shall be paid into the State Police Services Fund. In order to
expedite the application process, the Board may establish rules
allowing applicants to acquire criminal background checks and
financial integrity reviews as part of the initial application
process from a list of vendors approved by the Board.
(f) The licensed owner shall be the person primarily
responsible for the boat or casino itself. Only one riverboat
gambling operation may be authorized by the Board on any
riverboat or in any casino. The applicant must identify the
the riverboat or premises: (1) has the authorized capacity
required in this Act; (2) is accessible to persons with
disabilities; and (3) is fully registered and licensed in
accordance with any applicable laws.
(g) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(Source: P.A. 99-143, eff. 7-27-15.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners licenses.
(a) The Board shall issue owners licenses to persons or
entities that , firms or corporations which apply for such
licenses upon payment to the Board of the non-refundable
license fee as provided in subsection (e) or (e-5) set by the
and upon a determination by the Board that the applicant is
eligible for an owners license pursuant to this Act and the
rules of the Board. From the effective date of this amendatory
Act of the 95th General Assembly until (i) 3 years after the
effective date of this amendatory Act of the 95th General
Assembly, (ii) the date any organization licensee begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, (iii) the date
that payments begin under subsection (c-5) of Section 13 of the
Act, or (iv) the wagering tax imposed under Section 13 of this
Act is increased by law to reflect a tax rate that is at least
as stringent or more stringent than the tax rate contained in
subsection (a-3) of Section 13, or (v) when an owners licensee
holding a license issued pursuant to Section 7.1 of this Act
begins conducting gaming, whichever occurs first, as a
condition of licensure and as an alternative source of payment
for those funds payable under subsection (c-5) of Section 13 of
this the Riverboat Gambling Act, any owners licensee that holds
or receives its owners license on or after the effective date
of this amendatory Act of the 94th General Assembly, other than
an owners licensee operating a riverboat with adjusted gross
receipts in calendar year 2004 of less than $200,000,000, must
pay into the Horse Racing Equity Trust Fund, in addition to any
other payments required under this Act, an amount equal to 3%
of the adjusted gross receipts received by the owners licensee.
The payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person, firm
or entity corporation is ineligible to receive an owners
license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3) or (4) is an
officer, director or managerial employee of the entity firm
(6) the entity firm or corporation employs a person
defined in (1), (2), (3) or (4) who participates in the
management or operation of gambling operations authorized
under this Act;
(7) (blank); or
(8) a license of the person or entity , firm or
operate gambling facilities in any other jurisdiction, has
been revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret this amendatory Act of the 95th General
Assembly. For the purposes of this paragraph, "rules" is given
the meaning given to that term in Section 1-70 of the Illinois
Administrative Procedure Act.
(b) In determining whether to grant an owners license to an
applicant, the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of riverboat gambling;
(3) the highest prospective total revenue to be derived
by the State from the conduct of riverboat gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, women, and persons with a disability and the good
faith affirmative action plan of each applicant to recruit,
train and upgrade minority persons, women, and persons with
a disability in all employment classifications; the Board
shall further consider granting an owners license and
giving preference to an applicant under this Section to
applicants in which minority persons and women hold
ownership interest of at least 16% and 4%, respectively.
(4.5) the extent to which the ownership of the
applicant includes veterans of service in the armed forces
of the United States, and the good faith affirmative action
plan of each applicant to recruit, train, and upgrade
veterans of service in the armed forces of the United
States in all employment classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat or casino;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license which
the Board may adopt by rule; and
(8) the The amount of the applicant's license bid; .
(9) the extent to which the applicant or the proposed
host municipality plans to enter into revenue sharing
agreements with communities other than the host
municipality; and
(10) the extent to which the ownership of an applicant
includes the most qualified number of minority persons,
women, and persons with a disability.
(c) Each owners license shall specify the place where the
casino riverboats shall operate or the riverboat shall operate
and dock.
(d) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints.
(e) In addition to any licenses authorized under subsection
(e-5) of this Section, the The Board may issue up to 10
licenses authorizing the holders of such licenses to own
riverboats. In the application for an owners license, the
applicant shall state the dock at which the riverboat is based
and the water on which the riverboat will be located. The Board
shall issue 5 licenses to become effective not earlier than
January 1, 1991. Three of such licenses shall authorize
riverboat gambling on the Mississippi River, or, with approval
by the municipality in which the riverboat was docked on August
7, 2003 and with Board approval, be authorized to relocate to a
new location, in a municipality that (1) borders on the
Mississippi River or is within 5 miles of the city limits of a
municipality that borders on the Mississippi River and (2), on
August 7, 2003, had a riverboat conducting riverboat gambling
operations pursuant to a license issued under this Act; one of
which shall authorize riverboat gambling from a home dock in
the city of East St. Louis; and one of which shall authorize
riverboat gambling from a home dock in the City of Alton. One
other license shall authorize riverboat gambling on the
Illinois River in the City of East Peoria or, with Board
approval, shall authorize land-based gambling operations
anywhere within the corporate limits of the City of Peoria
license to become effective not earlier than March 1, 1992,
which shall authorize riverboat gambling on the Des Plaines
River in Will County. The Board may issue 4 additional licenses
to become effective not earlier than March 1, 1992. In
determining the water upon which riverboats will operate, the
Board shall consider the economic benefit which riverboat
gambling confers on the State, and shall seek to assure that
all regions of the State share in the economic benefits of
riverboat gambling.
In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an applicant
that has not submitted the highest license bid, but if it does
not select the highest bidder, the Board shall issue a written
decision explaining why another applicant was selected and
identifying the factors set forth in this Section that favored
the winning bidder. The fee for issuance or renewal of a
license pursuant to this subsection (e) shall be $250,000.
(e-5) In addition to licenses authorized under subsection
(e) of this Section:
(1) the Board may issue one owners license authorizing
the conduct of casino gambling in the City of Chicago;
(2) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Danville;
(3) the Board may issue one owners license authorizing
the conduct of riverboat gambling located in the City of
Waukegan;
(4) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Rockford;
(5) the Board may issue one owners license authorizing
the conduct of riverboat gambling in a municipality that is
wholly or partially located in one of the following
townships of Cook County: Bloom, Bremen, Calumet, Rich,
Thornton, or Worth Township; and
(6) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the unincorporated
area of Williamson County adjacent to the Big Muddy River.
Except for the license authorized under paragraph (1), each
application for a license pursuant to this subsection (e-5)
shall be submitted to the Board no later than 120 days after
the effective date of this amendatory Act of the 101st General
Assembly. All applications for a license under this subsection
(e-5) shall include the nonrefundable application fee and the
nonrefundable background investigation fee as provided in
subsection (d) of Section 6 of this Act. In the event that an
applicant submits an application for a license pursuant to this
subsection (e-5) prior to the effective date of this amendatory
Act of the 101st General Assembly, such applicant shall submit
the nonrefundable application fee and background investigation
fee as provided in subsection (d) of Section 6 of this Act no
later than 6 months after the effective date of this amendatory
Act of the 101st General Assembly.
The Board shall consider issuing a license pursuant to
paragraphs (1) through (6) of this subsection only after the
corporate authority of the municipality or the county board of
the county in which the riverboat or casino shall be located
has certified to the Board the following:
(i) that the applicant has negotiated with the
corporate authority or county board in good faith;
(ii) that the applicant and the corporate authority or
county board have mutually agreed on the permanent location
of the riverboat or casino;
(iii) that the applicant and the corporate authority or
county board have mutually agreed on the temporary location
of the riverboat or casino;
(iv) that the applicant and the corporate authority or
the county board have mutually agreed on the percentage of
revenues that will be shared with the municipality or
county, if any;
(v) that the applicant and the corporate authority or
county board have mutually agreed on any zoning, licensing,
public health, or other issues that are within the
jurisdiction of the municipality or county; and
(vi) that the corporate authority or county board has
passed a resolution or ordinance in support of the
riverboat or casino in the municipality or county.
At least 7 days before the corporate authority of a
municipality or county board of the county submits a
certification to the Board concerning items (i) through (vi) of
this subsection, it shall hold a public hearing to discuss
items (i) through (vi), as well as any other details concerning
the proposed riverboat or casino in the municipality or county.
The corporate authority or county board must subsequently
memorialize the details concerning the proposed riverboat or
casino in a resolution that must be adopted by a majority of
the corporate authority or county board before any
certification is sent to the Board. The Board shall not alter,
amend, change, or otherwise interfere with any agreement
between the applicant and the corporate authority of the
municipality or county board of the county regarding the
location of any temporary or permanent facility.
In addition, within 10 days after the effective date of
this amendatory Act of the 101st General Assembly, the Board,
with consent and at the expense of the City of Chicago, shall
select and retain the services of a nationally recognized
casino gaming feasibility consultant. Within 45 days after the
effective date of this amendatory Act of the 101st General
Assembly, the consultant shall prepare and deliver to the Board
a study concerning the feasibility of, and the ability to
finance, a casino in the City of Chicago. The feasibility study
shall be delivered to the Mayor of the City of Chicago, the
Governor, the President of the Senate, and the Speaker of the
House of Representatives. Ninety days after receipt of the
feasibility study, the Board shall make a determination, based
on the results of the feasibility study, whether to recommend
to the General Assembly that the terms of the license under
paragraph (1) of this subsection (e-5) should be modified. The
Board may begin accepting applications for the owners license
under paragraph (1) of this subsection (e-5) upon the
determination to issue such an owners license.
In addition, prior to the Board issuing the owners license
authorized under paragraph (4) of subsection (e-5), an impact
study shall be completed to determine what location in the city
will provide the greater impact to the region, including the
creation of jobs and the generation of tax revenue.
(e-10) The licenses authorized under subsection (e-5) of
this Section shall be issued within 12 months after the date
the license application is submitted. If the Board does not
issue the licenses within that time period, then the Board
shall give a written explanation to the applicant as to why it
has not reached a determination and when it reasonably expects
to make a determination. The fee for the issuance or renewal of
a license issued pursuant to this subsection (e-10) shall be
$250,000. Additionally, a licensee located outside of Cook
County shall pay a minimum initial fee of $17,500 per gaming
position, and a licensee located in Cook County shall pay a
minimum initial fee of $30,000 per gaming position. The initial
fees payable under this subsection (e-10) shall be deposited
into the Rebuild Illinois Projects Fund.
(e-15) Each licensee of a license authorized under
subsection (e-5) of this Section shall make a reconciliation
payment 3 years after the date the licensee begins operating in
an amount equal to 75% of the adjusted gross receipts for the
most lucrative 12-month period of operations, minus an amount
equal to the initial payment per gaming position paid by the
specific licensee. Each licensee shall pay a $15,000,000
reconciliation fee upon issuance of an owners license. If this
calculation results in a negative amount, then the licensee is
not entitled to any reimbursement of fees previously paid. This
reconciliation payment may be made in installments over a
period of no more than 2 years, subject to Board approval. Any
installment payments shall include an annual market interest
rate as determined by the Board. All payments by licensees
under this subsection (e-15) shall be deposited into the
Rebuild Illinois Projects Fund.
(e-20) In addition to any other revocation powers granted
to the Board under this Act, the Board may revoke the owners
license of a licensee which fails to begin conducting gambling
within 15 months of receipt of the Board's approval of the
application if the Board determines that license revocation is
in the best interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of each
of the first 10 licenses, which shall be issued for a 3 year
period, all licenses are renewable annually upon payment of the
fee and a determination by the Board that the licensee
continues to meet all of the requirements of this Act and the
Board's rules. However, for licenses renewed on or after May 1,
1998, renewal shall be for a period of 4 years, unless the
Board sets a shorter period.
(h) An owners license, except for an owners license issued
under subsection (e-5) of this Section, shall entitle the
licensee to own up to 2 riverboats.
An owners licensee of a casino or riverboat that is located
in the City of Chicago pursuant to paragraph (1) of subsection
(e-5) of this Section shall limit the number of gaming
positions to 4,000 for such owner. An owners licensee
authorized under subsection (e) or paragraph (2), (3), (4), or
(5) of subsection (e-5) of this Section shall limit the number
of gaming positions to 2,000 for any such owners license. An
owners licensee authorized under paragraph (6) of subsection
(e-5) of this Section A licensee shall limit the number of
gaming positions gambling participants to 1,200 for any such
owner. The initial fee for each gaming position obtained on or
after the effective date of this amendatory Act of the 101st
General Assembly shall be a minimum of $17,500 for licensees
not located in Cook County and a minimum of $30,000 for
licensees located in Cook County, in addition to the
reconciliation payment, as set forth in subsection (e-15) of
this Section owners license. The fees under this subsection (h)
shall be deposited into the Rebuild Illinois Projects Fund. The
fees under this subsection (h) that are paid by an owners
licensee authorized under subsection (e) shall be paid by July
1, 2020.
Each owners licensee under subsection (e) of this Section
shall reserve its gaming positions within 30 days after the
effective date of this amendatory Act of the 101st General
Assembly. The Board may grant an extension to this 30-day
period, provided that the owners licensee submits a written
request and explanation as to why it is unable to reserve its
positions within the 30-day period.
Each owners licensee under subsection (e-5) of this
Section shall reserve its gaming positions within 30 days after
issuance of its owners license. The Board may grant an
extension to this 30-day period, provided that the owners
licensee submits a written request and explanation as to why it
is unable to reserve its positions within the 30-day period.
A licensee may operate both of its riverboats concurrently,
provided that the total number of gaming positions gambling
established pursuant to this subsection 1,200. Riverboats
licensed to operate on the Mississippi River and the Illinois
River south of Marshall County shall have an authorized
capacity of at least 500 persons. Any other riverboat licensed
under this Act shall have an authorized capacity of at least
400 persons.
(h-5) An owners licensee who conducted gambling operations
prior to January 1, 2012 and obtains positions pursuant to this
amendatory Act of the 101st General Assembly shall make a
reconciliation payment 3 years after any additional gaming
positions begin operating in an amount equal to 75% of the
owners licensee's average gross receipts for the most lucrative
12-month period of operations minus an amount equal to the
initial fee that the owners licensee paid per additional gaming
position. For purposes of this subsection (h-5), "average gross
receipts" means (i) the increase in adjusted gross receipts for
the most lucrative 12-month period of operations over the
adjusted gross receipts for 2019, multiplied by (ii) the
percentage derived by dividing the number of additional gaming
positions that an owners licensee had obtained by the total
number of gaming positions operated by the owners licensee. If
this calculation results in a negative amount, then the owners
licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 2 years, subject to
Board approval. Any installment payments shall include an
annual market interest rate as determined by the Board. These
reconciliation payments shall be deposited into the Rebuild
Illinois Projects Fund.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from the
Board necessary for the operation of a riverboat or casino,
including a liquor license, a license to prepare and serve food
for human consumption, and other necessary licenses. All use,
occupation and excise taxes which apply to the sale of food and
beverages in this State and all taxes imposed on the sale or
use of tangible personal property apply to such sales aboard
the riverboat or in the casino.
(j) The Board may issue or re-issue a license authorizing a
riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(k) An owners licensee may conduct land-based gambling
operations upon approval by the Board and payment of a fee of
$250,000, which shall be deposited into the State Gaming Fund.
(l) An owners licensee may conduct gaming at a temporary
facility pending the construction of a permanent facility or
the remodeling or relocation of an existing facility to
accommodate gaming participants for up to 24 months after the
temporary facility begins to conduct gaming. Upon request by an
owners licensee and upon a showing of good cause by the owners
licensee, the Board shall extend the period during which the
licensee may conduct gaming at a temporary facility by up to 12
months. The Board shall make rules concerning the conduct of
gaming from temporary facilities.
(Source: P.A. 100-391, eff. 8-25-17; 100-1152, eff. 12-14-18.)
(230 ILCS 10/7.3)
Sec. 7.3. State conduct of gambling operations.
(a) If, after reviewing each application for a re-issued
license, the Board determines that the highest prospective
total revenue to the State would be derived from State conduct
of the gambling operation in lieu of re-issuing the license,
the Board shall inform each applicant of its decision. The
Board shall thereafter have the authority, without obtaining an
owners license, to conduct casino or riverboat gambling
operations as previously authorized by the terminated,
expired, revoked, or nonrenewed license through a licensed
manager selected pursuant to an open and competitive bidding
process as set forth in Section 7.5 and as provided in Section
7.4.
(b) The Board may locate any casino or riverboat on which a
gambling operation is conducted by the State in any home dock
or other location authorized by Section 3(c) upon receipt of
approval from a majority vote of the governing body of the
municipality or county, as the case may be, in which the
riverboat will dock.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations conducted by the State
provided for in this Act and shall have all powers necessary
and proper to fully and effectively execute the provisions of
this Act relating to gambling operations conducted by the
State.
(d) The maximum number of owners licenses authorized under
Section 7 7(e) shall be reduced by one for each instance in
which the Board authorizes the State to conduct a casino or
riverboat gambling operation under subsection (a) in lieu of
re-issuing a license to an applicant under Section 7.1.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7.5)
Sec. 7.5. Competitive Bidding. When the Board determines
that (i) it will re-issue an owners license pursuant to an open
and competitive bidding process, as set forth in Section 7.1,
(ii) or that it will issue a managers license pursuant to an
open and competitive bidding process, as set forth in Section
7.4, or (iii) it will issue an owners license pursuant to an
open and competitive bidding process, as set forth in Section
7.12, the open and competitive bidding process shall adhere to
the following procedures:
(1) The Board shall make applications for owners and
managers licenses available to the public and allow a
reasonable time for applicants to submit applications to the
Board.
(2) During the filing period for owners or managers license
applications, the Board may retain the services of an
investment banking firm to assist the Board in conducting the
open and competitive bidding process.
(3) After receiving all of the bid proposals, the Board
shall open all of the proposals in a public forum and disclose
the prospective owners or managers names, venture partners, if
any, and, in the case of applicants for owners licenses, the
locations of the proposed development sites.
(4) The Board shall summarize the terms of the proposals
and may make this summary available to the public.
(5) The Board shall evaluate the proposals within a
reasonable time and select no more than 3 final applicants to
make presentations of their proposals to the Board.
(6) The final applicants shall make their presentations to
the Board on the same day during an open session of the Board.
(7) As soon as practicable after the public presentations
by the final applicants, the Board, in its discretion, may
conduct further negotiations among the 3 final applicants.
During such negotiations, each final applicant may increase its
license bid or otherwise enhance its bid proposal. At the
conclusion of such negotiations, the Board shall select the
winning proposal. In the case of negotiations for an owners
license, the Board may, at the conclusion of such negotiations,
make the determination allowed under Section 7.3(a).
(8) Upon selection of a winning bid, the Board shall
evaluate the winning bid within a reasonable period of time for
licensee suitability in accordance with all applicable
statutory and regulatory criteria.
(9) If the winning bidder is unable or otherwise fails to
consummate the transaction, (including if the Board determines
that the winning bidder does not satisfy the suitability
requirements), the Board may, on the same criteria, select from
the remaining bidders or make the determination allowed under
Section 7.3(a).
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/7.7 new)
Sec. 7.7. Organization gaming licenses.
(a) The Illinois Gaming Board shall award one organization
gaming license to each person or entity having operating
control of a racetrack that applies under Section 56 of the
Illinois Horse Racing Act of 1975, subject to the application
and eligibility requirements of this Section. Within 60 days
after the effective date of this amendatory Act of the 101st
General Assembly, a person or entity having operating control
of a racetrack may submit an application for an organization
gaming license. The application shall be made on such forms as
provided by the Board and shall contain such information as the
Board prescribes, including, but not limited to, the identity
of any racetrack at which gaming will be conducted pursuant to
an organization gaming license, detailed information regarding
the ownership and management of the applicant, and detailed
personal information regarding the applicant. The application
shall specify the number of gaming positions the applicant
intends to use and the place where the organization gaming
facility will operate. A person who knowingly makes a false
statement on an application is guilty of a Class A misdemeanor.
Each applicant shall disclose the identity of every person
or entity having a direct or indirect pecuniary interest
greater than 1% in any racetrack with respect to which the
license is sought. If the disclosed entity is a corporation,
the applicant shall disclose the names and addresses of all
stockholders and directors. If the disclosed entity is a
limited liability company, the applicant shall disclose the
names and addresses of all members and managers. If the
disclosed entity is a partnership, the applicant shall disclose
the names and addresses of all partners, both general and
limited. If the disclosed entity is a trust, the applicant
shall disclose the names and addresses of all beneficiaries.
An application shall be filed and considered in accordance
with the rules of the Board. Each application for an
organization gaming license shall include a nonrefundable
application fee of $250,000. In addition, a nonrefundable fee
of $50,000 shall be paid at the time of filing to defray the
costs associated with background investigations conducted by
the Board. If the costs of the background investigation exceed
$50,000, the applicant shall pay the additional amount to the
Board within 7 days after a request by the Board. If the costs
of the investigation are less than $50,000, the applicant shall
receive a refund of the remaining amount. All information,
records, interviews, reports, statements, memoranda, or other
data supplied to or used by the Board in the course of this
review or investigation of an applicant for an organization
gaming license under this Act shall be privileged and strictly
confidential and shall be used only for the purpose of
evaluating an applicant for an organization gaming license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence nor discoverable in any action of any kind in any
court or before any tribunal, board, agency or person, except
for any action deemed necessary by the Board. The application
fee shall be deposited into the State Gaming Fund.
Each applicant shall submit with his or her application, on
forms provided by the Board, a set of his or her fingerprints.
The Board shall charge each applicant a fee set by the
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. This fee
shall be paid into the State Police Services Fund.
(b) The Board shall determine within 120 days after
receiving an application for an organization gaming license
whether to grant an organization gaming license to the
applicant. If the Board does not make a determination within
that time period, then the Board shall give a written
explanation to the applicant as to why it has not reached a
determination and when it reasonably expects to make a
determination.
The organization gaming licensee shall purchase up to the
amount of gaming positions authorized under this Act within 120
days after receiving its organization gaming license. If an
organization gaming licensee is prepared to purchase the gaming
positions, but is temporarily prohibited from doing so by order
of a court of competent jurisdiction or the Board, then the
120-day period is tolled until a resolution is reached.
An organization gaming license shall authorize its holder
to conduct gaming under this Act at its racetracks on the same
days of the year and hours of the day that owners licenses are
allowed to operate under approval of the Board.
An organization gaming license and any renewal of an
organization gaming license shall authorize gaming pursuant to
this Section for a period of 4 years. The fee for the issuance
or renewal of an organization gaming license shall be $250,000.
All payments by licensees under this subsection (b) shall
be deposited into the Rebuild Illinois Projects Fund.
(c) To be eligible to conduct gaming under this Section, a
person or entity having operating control of a racetrack must
(i) obtain an organization gaming license, (ii) hold an
organization license under the Illinois Horse Racing Act of
1975, (iii) hold an inter-track wagering license, (iv) pay an
initial fee of $30,000 per gaming position from organization
gaming licensees where gaming is conducted in Cook County and,
except as provided in subsection (c-5), $17,500 for
organization gaming licensees where gaming is conducted
outside of Cook County before beginning to conduct gaming plus
make the reconciliation payment required under subsection (k),
(v) conduct live racing in accordance with subsections (e-1),
(e-2), and (e-3) of Section 20 of the Illinois Horse Racing Act
of 1975, (vi) meet the requirements of subsection (a) of
Section 56 of the Illinois Horse Racing Act of 1975, (vii) for
organization licensees conducting standardbred race meetings,
keep backstretch barns and dormitories open and operational
year-round unless a lesser schedule is mutually agreed to by
the organization licensee and the horsemen association racing
at that organization licensee's race meeting, (viii) for
organization licensees conducting thoroughbred race meetings,
the organization licensee must maintain accident medical
expense liability insurance coverage of $1,000,000 for
jockeys, and (ix) meet all other requirements of this Act that
apply to owners licensees.
An organization gaming licensee may enter into a joint
venture with a licensed owner to own, manage, conduct, or
otherwise operate the organization gaming licensee's
organization gaming facilities, unless the organization gaming
licensee has a parent company or other affiliated company that
is, directly or indirectly, wholly owned by a parent company
that is also licensed to conduct organization gaming, casino
gaming, or their equivalent in another state.
All payments by licensees under this subsection (c) shall
be deposited into the Rebuild Illinois Projects Fund.
(c-5) A person or entity having operating control of a
racetrack located in Madison County shall only pay the initial
fees specified in subsection (c) for 540 of the gaming
positions authorized under the license.
(d) A person or entity is ineligible to receive an
organization gaming license if:
(1) the person or entity has been convicted of a felony
under the laws of this State, any other state, or the
United States, including a conviction under the Racketeer
Influenced and Corrupt Organizations Act;
(2) the person or entity has been convicted of any
violation of Article 28 of the Criminal Code of 2012, or
substantially similar laws of any other jurisdiction;
(3) the person or entity has submitted an application
for a license under this Act that contains false
information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3), or (4) of this
subsection (d) is an officer, director, or managerial
employee of the entity;
(6) the person or entity employs a person defined in
(1), (2), (3), or (4) of this subsection (d) who
participates in the management or operation of gambling
operations authorized under this Act; or
(7) a license of the person or entity issued under this
Act or a license to own or operate gambling facilities in
any other jurisdiction has been revoked.
(e) The Board may approve gaming positions pursuant to an
organization gaming license statewide as provided in this
Section. The authority to operate gaming positions under this
Section shall be allocated as follows: up to 1,200 gaming
positions for any organization gaming licensee in Cook County
and up to 900 gaming positions for any organization gaming
licensee outside of Cook County.
(f) Each applicant for an organization gaming license shall
specify in its application for licensure the number of gaming
positions it will operate, up to the applicable limitation set
forth in subsection (e) of this Section. Any unreserved gaming
positions that are not specified shall be forfeited and
retained by the Board. For the purposes of this subsection (f),
an organization gaming licensee that did not conduct live
racing in 2010 and is located within 3 miles of the Mississippi
River may reserve up to 900 positions and shall not be
penalized under this Section for not operating those positions
until it meets the requirements of subsection (e) of this
Section, but such licensee shall not request unreserved gaming
positions under this subsection (f) until its 900 positions are
all operational.
Thereafter, the Board shall publish the number of
unreserved gaming positions and shall accept requests for
additional positions from any organization gaming licensee
that initially reserved all of the positions that were offered.
The Board shall allocate expeditiously the unreserved gaming
positions to requesting organization gaming licensees in a
manner that maximizes revenue to the State. The Board may
allocate any such unused gaming positions pursuant to an open
and competitive bidding process, as provided under Section 7.5
of this Act. This process shall continue until all unreserved
gaming positions have been purchased. All positions obtained
pursuant to this process and all positions the organization
gaming licensee specified it would operate in its application
must be in operation within 18 months after they were obtained
or the organization gaming licensee forfeits the right to
operate those positions, but is not entitled to a refund of any
fees paid. The Board may, after holding a public hearing, grant
extensions so long as the organization gaming licensee is
working in good faith to make the positions operational. The
extension may be for a period of 6 months. If, after the period
of the extension, the organization gaming licensee has not made
the positions operational, then another public hearing must be
held by the Board before it may grant another extension.
Unreserved gaming positions retained from and allocated to
organization gaming licensees by the Board pursuant to this
subsection (f) shall not be allocated to owners licensees under
this Act.
For the purpose of this subsection (f), the unreserved
gaming positions for each organization gaming licensee shall be
the applicable limitation set forth in subsection (e) of this
Section, less the number of reserved gaming positions by such
organization gaming licensee, and the total unreserved gaming
positions shall be the aggregate of the unreserved gaming
positions for all organization gaming licensees.
(g) An organization gaming licensee is authorized to
conduct the following at a racetrack:
(1) slot machine gambling;
(2) video game of chance gambling;
(3) gambling with electronic gambling games as defined
in this Act or defined by the Illinois Gaming Board; and
(4) table games.
(h) Subject to the approval of the Illinois Gaming Board,
an organization gaming licensee may make modification or
additions to any existing buildings and structures to comply
with the requirements of this Act. The Illinois Gaming Board
shall make its decision after consulting with the Illinois
Racing Board. In no case, however, shall the Illinois Gaming
Board approve any modification or addition that alters the
grounds of the organization licensee such that the act of live
racing is an ancillary activity to gaming authorized under this
Section. Gaming authorized under this Section may take place in
existing structures where inter-track wagering is conducted at
the racetrack or a facility within 300 yards of the racetrack
in accordance with the provisions of this Act and the Illinois
Horse Racing Act of 1975.
(i) An organization gaming licensee may conduct gaming at a
temporary facility pending the construction of a permanent
facility or the remodeling or relocation of an existing
facility to accommodate gaming participants for up to 24 months
after the temporary facility begins to conduct gaming
authorized under this Section. Upon request by an organization
gaming licensee and upon a showing of good cause by the
organization gaming licensee, the Board shall extend the period
during which the licensee may conduct gaming authorized under
this Section at a temporary facility by up to 12 months. The
Board shall make rules concerning the conduct of gaming
authorized under this Section from temporary facilities.
The gaming authorized under this Section may take place in
existing structures where inter-track wagering is conducted at
the racetrack or a facility within 300 yards of the racetrack
in accordance with the provisions of this Act and the Illinois
Horse Racing Act of 1975.
(i-5) Under no circumstances shall an organization gaming
licensee conduct gaming at any State or county fair.
(j) The Illinois Gaming Board must adopt emergency rules in
accordance with Section 5-45 of the Illinois Administrative
Procedure Act as necessary to ensure compliance with the
provisions of this amendatory Act of the 101st General Assembly
concerning the conduct of gaming by an organization gaming
licensee. The adoption of emergency rules authorized by this
subsection (j) shall be deemed to be necessary for the public
interest, safety, and welfare.
(k) Each organization gaming licensee who obtains gaming
positions must make a reconciliation payment 3 years after the
date the organization gaming licensee begins operating the
positions in an amount equal to 75% of the difference between
its adjusted gross receipts from gaming authorized under this
Section and amounts paid to its purse accounts pursuant to item
(1) of subsection (b) of Section 56 of the Illinois Horse
Racing Act of 1975 for the 12-month period for which such
difference was the largest, minus an amount equal to the
initial per position fee paid by the organization gaming
licensee. If this calculation results in a negative amount,
then the organization gaming licensee is not entitled to any
reimbursement of fees previously paid. This reconciliation
payment may be made in installments over a period of no more
than 2 years, subject to Board approval. Any installment
payments shall include an annual market interest rate as
determined by the Board.
All payments by licensees under this subsection (k) shall
be deposited into the Rebuild Illinois Projects Fund.
(l) As soon as practical after a request is made by the
Illinois Gaming Board, to minimize duplicate submissions by the
applicant, the Illinois Racing Board must provide information
on an applicant for an organization gaming license to the
Illinois Gaming Board.
(230 ILCS 10/7.8 new)
Sec. 7.8. Home rule. The regulation and licensing of
organization gaming licensees and gaming conducted pursuant to
an organization gaming license are exclusive powers and
functions of the State. A home rule unit may not regulate or
license such gaming or organization gaming licensees. This
Section is a denial and limitation of home rule powers and
functions under subsection (h) of Section 6 of Article VII of
the Illinois Constitution.
(230 ILCS 10/7.10 new)
Sec. 7.10. Diversity program.
(a) Each owners licensee, organization gaming licensee,
and suppliers licensee shall establish and maintain a diversity
program to ensure non-discrimination in the award and
administration of contracts. The programs shall establish
goals of awarding not less than 25% of the annual dollar value
of all contracts, purchase orders, or other agreements to
minority-owned businesses and 5% of the annual dollar value of
all contracts to women-owned businesses.
(b) Each owners licensee, organization gaming licensee,
and suppliers licensee shall establish and maintain a diversity
program designed to promote equal opportunity for employment.
The program shall establish hiring goals as the Board and each
licensee determines appropriate. The Board shall monitor the
progress of the gaming licensee's progress with respect to the
program's goals.
(c) No later than May 31 of each year, each licensee shall
report to the Board (1) the number of respective employees and
the number of its respective employees who have designated
themselves as members of a minority group and gender and (2)
the total goals achieved under subsection (a) of this Section
as a percentage of the total contracts awarded by the license.
In addition, all licensees shall submit a report with respect
to the minority-owned and women-owned businesses program
created in this Section to the Board.
(d) When considering whether to re-issue or renew a license
to an owners licensee, organization gaming licensee, or
suppliers licensee, the Board shall take into account the
licensee's success in complying with the provisions of this
Section. If an owners licensee, organization gaming licensee,
or suppliers licensee has not satisfied the goals contained in
this Section, the Board shall require a written explanation as
to why the licensee is not in compliance and shall require the
licensee to file multi-year metrics designed to achieve
compliance with the provisions by the next renewal period,
consistent with State and federal law.
(230 ILCS 10/7.11 new)
Sec. 7.11. Annual report on diversity.
(a) Each licensee that receives a license under Sections 7,
7.1, and 7.7 shall execute and file a report with the Board no
later than December 31 of each year that shall contain, but not
be limited to, the following information:
(i) a good faith affirmative action plan to recruit,
train, and upgrade minority persons, women, and persons
with a disability in all employment classifications;
(ii) the total dollar amount of contracts that were
awarded to businesses owned by minority persons, women, and
persons with a disability;
(iii) the total number of businesses owned by minority
persons, women, and persons with a disability that were
utilized by the licensee;
(iv) the utilization of businesses owned by minority
persons, women, and persons with disabilities during the
preceding year; and
(v) the outreach efforts used by the licensee to
attract investors and businesses consisting of minority
persons, women, and persons with a disability.
(b) The Board shall forward a copy of each licensee's
annual reports to the General Assembly no later than February 1
of each year. The reports to the General Assembly shall be
filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(230 ILCS 10/7.12 new)
Sec. 7.12. Issuance of new owners licenses.
(a) Owners licenses newly authorized pursuant to this
amendatory Act of the 101st General Assembly may be issued by
the Board to a qualified applicant pursuant to an open and
competitive bidding process, as set forth in Section 7.5, and
subject to the maximum number of authorized licenses set forth
in subsection (e-5) of Section 7 of this Act.
(b) To be a qualified applicant, a person or entity may not
be ineligible to receive an owners license under subsection (a)
of Section 7 of this Act and must submit an application for an
owners license that complies with Section 6 of this Act.
(c) In determining whether to grant an owners license to an
applicant, the Board shall consider all of the factors set
forth in subsections (b) and (e-10) of Section 7 of this Act,
as well as the amount of the applicant's license bid. The Board
may grant the owners license to an applicant that has not
submitted the highest license bid, but if it does not select
the highest bidder, the Board shall issue a written decision
explaining why another applicant was selected and identifying
the factors set forth in subsections (b) and (e-10) of Section
7 of this Act that favored the winning bidder.
(230 ILCS 10/7.13 new)
Sec. 7.13. Environmental standards. All permanent
casinos, riverboats, and organization gaming facilities shall
consist of buildings that are certified as meeting the U.S.
Green Building Council's Leadership in Energy and
Environmental Design standards. The provisions of this Section
apply to a holder of an owners license or organization gaming
license that (i) begins operations on or after January 1, 2019
or (ii) relocates its facilities on or after the effective date
of this amendatory Act of the 101st General Assembly.
(230 ILCS 10/7.14 new)
Sec. 7.14. Chicago Casino Advisory Committee. An Advisory
Committee is established to monitor, review, and report on (1)
the utilization of minority-owned business enterprises and
women-owned business enterprises by the owners licensee, (2)
employment of women, and (3) employment of minorities with
regard to the development and construction of the casino as
authorized under paragraph (1) of subsection (e-5) of Section 7
of the Illinois Gambling Act. The owners licensee under
paragraph (1) of subsection (e-5) of Section 7 of the Illinois
Gambling Act shall work with the Advisory Committee in
accumulating necessary information for the Advisory Committee
to submit reports, as necessary, to the General Assembly and to
the City of Chicago.
The Advisory Committee shall consist of 9 members as
provided in this Section. Five members shall be selected by the
Governor and 4 members shall be selected by the Mayor of the
City of Chicago. The Governor and the Mayor of the City of
Chicago shall each appoint at least one current member of the
General Assembly. The Advisory Committee shall meet
periodically and shall report the information to the Mayor of
the City of Chicago and to the General Assembly by December
31st of every year.
The Advisory Committee shall be dissolved on the date that
casino gambling operations are first conducted at a permanent
facility under the license authorized under paragraph (1) of
subsection (e-5) Section 7 of the Illinois Gambling Act. For
the purposes of this Section, the terms "woman" and "minority
person" have the meanings provided in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(230 ILCS 10/7.15 new)
Sec. 7.15. Limitations on gaming at Chicago airports. The
Chicago casino may conduct gaming operations in an airport
under the administration or control of the Chicago Department
of Aviation. Gaming operations may be conducted pursuant to
this Section so long as: (i) gaming operations are conducted in
a secured area that is beyond the Transportation Security
Administration security checkpoints and only available to
airline passengers at least 21 years of age who are members of
a private club, and not to the general public, (ii) gaming
operations are limited to slot machines, as defined in Section
4 of the Illinois Gambling Act, and (iii) the combined number
of gaming positions operating in the City of Chicago at the
airports and at the temporary and permanent casino facility
does not exceed the maximum number of gaming positions
authorized pursuant to subsection (h) of Section 7 of the
Illinois Gambling Act. Gaming operations at an airport are
subject to all applicable laws and rules that apply to any
other gaming facility under the Illinois Gambling Act.
(230 ILCS 10/8) (from Ch. 120, par. 2408)
Sec. 8. Suppliers licenses.
(a) The Board may issue a suppliers license to such
persons, firms or corporations which apply therefor upon the
payment of a non-refundable application fee set by the Board,
upon a determination by the Board that the applicant is
eligible for a suppliers license and upon payment of a $5,000
annual license fee.
(b) The holder of a suppliers license is authorized to sell
or lease, and to contract to sell or lease, gambling equipment
and supplies to any licensee involved in the ownership or
management of gambling operations.
(c) Gambling supplies and equipment may not be distributed
unless supplies and equipment conform to standards adopted by
rules of the Board.
(d) A person, firm or corporation is ineligible to receive
a suppliers license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) the entity firm or corporation is one in which a
person defined in (1), (2), (3) or (4), is an officer,
director or managerial employee;
(6) the firm or corporation employs a person who
participates in the management or operation of riverboat
gambling authorized under this Act;
(7) the license of the person, firm or corporation
issued under this Act, or a license to own or operate
gambling facilities in any other jurisdiction, has been
revoked.
(e) Any person that supplies any equipment, devices, or
supplies to a licensed riverboat gambling operation must first
obtain a suppliers license. A supplier shall furnish to the
Board a list of all equipment, devices and supplies offered for
sale or lease in connection with gambling games authorized
under this Act. A supplier shall keep books and records for the
furnishing of equipment, devices and supplies to gambling
operations separate and distinct from any other business that
the supplier might operate. A supplier shall file a quarterly
return with the Board listing all sales and leases. A supplier
shall permanently affix its name or a distinctive logo or other
mark or design element identifying the manufacturer or supplier
to all its equipment, devices, and supplies, except gaming
chips without a value impressed, engraved, or imprinted on it,
for gambling operations. The Board may waive this requirement
for any specific product or products if it determines that the
requirement is not necessary to protect the integrity of the
game. Items purchased from a licensed supplier may continue to
be used even though the supplier subsequently changes its name,
distinctive logo, or other mark or design element; undergoes a
change in ownership; or ceases to be licensed as a supplier for
any reason. Any supplier's equipment, devices or supplies which
are used by any person in an unauthorized gambling operation
shall be forfeited to the State. A holder of an owners license
or an organization gaming license A licensed owner may own its
own equipment, devices and supplies. Each holder of an owners
license or an organization gaming license under the Act shall
file an annual report listing its inventories of gambling
equipment, devices and supplies.
(f) Any person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any gambling equipment, devices and supplies provided
by any licensed supplier may either be repaired on the
riverboat, in the casino, or at the organization gaming
facility or removed from the riverboat, casino, or organization
gaming facility to a an on-shore facility owned by the holder
of an owners license, organization gaming license, or suppliers
license for repair.
(Source: P.A. 97-1150, eff. 1-25-13; 98-12, eff. 5-10-13;
98-756, eff. 7-16-14.)
(230 ILCS 10/9) (from Ch. 120, par. 2409)
Sec. 9. Occupational licenses.
(a) The Board may issue an occupational license to an
applicant upon the payment of a non-refundable fee set by the
Board, upon a determination by the Board that the applicant is
eligible for an occupational license and upon payment of an
annual license fee in an amount to be established. To be
eligible for an occupational license, an applicant must:
(1) be at least 21 years of age if the applicant will
perform any function involved in gaming by patrons. Any
applicant seeking an occupational license for a non-gaming
function shall be at least 18 years of age;
(2) not have been convicted of a felony offense, a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar statute of any other
jurisdiction;
(2.5) not have been convicted of a crime, other than a
crime described in item (2) of this subsection (a),
involving dishonesty or moral turpitude, except that the
Board may, in its discretion, issue an occupational license
to a person who has been convicted of a crime described in
this item (2.5) more than 10 years prior to his or her
application and has not subsequently been convicted of any
other crime;
(3) have demonstrated a level of skill or knowledge
which the Board determines to be necessary in order to
operate gambling aboard a riverboat, in a casino, or at an
organization gaming facility; and
(4) have met standards for the holding of an
occupational license as adopted by rules of the Board. Such
rules shall provide that any person or entity seeking an
occupational license to manage gambling operations under
this Act hereunder shall be subject to background inquiries
and further requirements similar to those required of
applicants for an owners license. Furthermore, such rules
shall provide that each such entity shall be permitted to
manage gambling operations for only one licensed owner.
(b) Each application for an occupational license shall be
on forms prescribed by the Board and shall contain all
information required by the Board. The applicant shall set
forth in the application: whether he has been issued prior
gambling related licenses; whether he has been licensed in any
other state under any other name, and, if so, such name and his
age; and whether or not a permit or license issued to him in
any other state has been suspended, restricted or revoked, and,
if so, for what period of time.
(c) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints. The
Board shall charge each applicant a fee set by the Department
of State Police to defray the costs associated with the search
and classification of fingerprints obtained by the Board with
respect to the applicant's application. These fees shall be
paid into the State Police Services Fund.
(d) The Board may in its discretion refuse an occupational
license to any person: (1) who is unqualified to perform the
duties required of such applicant; (2) who fails to disclose or
states falsely any information called for in the application;
(3) who has been found guilty of a violation of this Act or
whose prior gambling related license or application therefor
has been suspended, restricted, revoked or denied for just
cause in any other state; or (4) for any other just cause.
(e) The Board may suspend, revoke or restrict any
occupational licensee: (1) for violation of any provision of
this Act; (2) for violation of any of the rules and regulations
of the Board; (3) for any cause which, if known to the Board,
would have disqualified the applicant from receiving such
license; or (4) for default in the payment of any obligation or
debt due to the State of Illinois; or (5) for any other just
cause.
(f) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any license issued pursuant to this Section shall be
valid for a period of one year from the date of issuance.
(h) Nothing in this Act shall be interpreted to prohibit a
licensed owner or organization gaming licensee from entering
into an agreement with a public community college or a school
approved under the Private Business and Vocational Schools Act
of 2012 for the training of any occupational licensee. Any
training offered by such a school shall be in accordance with a
written agreement between the licensed owner or organization
gaming licensee and the school.
(i) Any training provided for occupational licensees may be
conducted either at the site of the gambling facility on the
organization gaming licensee has entered into an agreement
pursuant to subsection (h).
(Source: P.A. 96-1392, eff. 1-1-11; 97-650, eff. 2-1-12;
97-1150, eff. 1-25-13.)
(230 ILCS 10/11) (from Ch. 120, par. 2411)
Sec. 11. Conduct of gambling. Gambling may be conducted by
licensed owners or licensed managers on behalf of the State
aboard riverboats. Gambling may be conducted by organization
gaming licensees at organization gaming facilities. Gambling
authorized under this Section is , subject to the following
standards:
(1) A licensee may conduct riverboat gambling
authorized under this Act regardless of whether it conducts
excursion cruises. A licensee may permit the continuous
ingress and egress of patrons passengers on a riverboat not
used for excursion cruises for the purpose of gambling.
Excursion cruises shall not exceed 4 hours for a round
trip. However, the Board may grant express approval for an
extended cruise on a case-by-case basis.
(1.5) An owners licensee may conduct gambling
operations authorized under this Act 24 hours a day.
(2) (Blank).
(3) Minimum and maximum wagers on games shall be set by
the licensee.
(4) Agents of the Board and the Department of State
Police may board and inspect any riverboat, enter and
inspect any portion of a casino, or enter and inspect any
portion of an organization gaming facility at any time for
the purpose of determining whether this Act is being
complied with. Every riverboat, if under way and being
hailed by a law enforcement officer or agent of the Board,
must stop immediately and lay to.
(5) Employees of the Board shall have the right to be
present on the riverboat or in the casino or on adjacent
facilities under the control of the licensee and at the
organization gaming facility under the control of the
organization gaming licensee.
(6) Gambling equipment and supplies customarily used
in conducting riverboat gambling must be purchased or
leased only from suppliers licensed for such purpose under
this Act. The Board may approve the transfer, sale, or
lease of gambling equipment and supplies by a licensed
owner from or to an affiliate of the licensed owner as long
as the gambling equipment and supplies were initially
acquired from a supplier licensed in Illinois.
(7) Persons licensed under this Act shall permit no
form of wagering on gambling games except as permitted by
this Act.
(8) Wagers may be received only from a person present
on a licensed riverboat, in a casino, or at an organization
gaming facility. No person present on a licensed riverboat,
in a casino, or at an organization gaming facility shall
place or attempt to place a wager on behalf of another
person who is not present on the riverboat, in a casino, or
at the organization gaming facility.
(9) Wagering, including gaming authorized under
Section 7.7, shall not be conducted with money or other
negotiable currency.
(10) A person under age 21 shall not be permitted on an
area of a riverboat or casino where gambling is being
conducted or at an organization gaming facility where
gambling is being conducted, except for a person at least
18 years of age who is an employee of the riverboat or
casino gambling operation or gaming operation. No employee
under age 21 shall perform any function involved in
gambling by the patrons. No person under age 21 shall be
permitted to make a wager under this Act, and any winnings
that are a result of a wager by a person under age 21,
whether or not paid by a licensee, shall be treated as
winnings for the privilege tax purposes, confiscated, and
forfeited to the State and deposited into the Education
Assistance Fund.
(11) Gambling excursion cruises are permitted only
when the waterway for which the riverboat is licensed is
navigable, as determined by the Board in consultation with
the U.S. Army Corps of Engineers. This paragraph (11) does
not limit the ability of a licensee to conduct gambling
authorized under this Act when gambling excursion cruises
are not permitted.
(12) All tickets tokens, chips, or electronic cards
used to make wagers must be purchased (i) from a licensed
owner or manager, in the case of a riverboat, either aboard
a riverboat or at an onshore facility which has been
approved by the Board and which is located where the
riverboat docks, (ii) in the case of a casino, from a
licensed owner at the casino, or (iii) from an organization
gaming licensee at the organization gaming facility. The
tickets tokens, chips, or electronic cards may be purchased
by means of an agreement under which the owner or manager
extends credit to the patron. Such tickets tokens, chips,
or electronic cards may be used while aboard the riverboat,
in the casino, or at the organization gaming facility only
for the purpose of making wagers on gambling games.
(13) Notwithstanding any other Section of this Act, in
addition to the other licenses authorized under this Act,
the Board may issue special event licenses allowing persons
who are not otherwise licensed to conduct riverboat
gambling to conduct such gambling on a specified date or
series of dates. Riverboat gambling under such a license
may take place on a riverboat not normally used for
riverboat gambling. The Board shall establish standards,
fees and fines for, and limitations upon, such licenses,
which may differ from the standards, fees, fines and
limitations otherwise applicable under this Act. All such
fees shall be deposited into the State Gaming Fund. All
such fines shall be deposited into the Education Assistance
Fund, created by Public Act 86-0018, of the State of
Illinois.
(14) In addition to the above, gambling must be
conducted in accordance with all rules adopted by the
Board.
(Source: P.A. 96-1392, eff. 1-1-11.)
(230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
Sec. 11.1. Collection of amounts owing under credit
agreements. Notwithstanding any applicable statutory provision
to the contrary, a licensed owner, licensed or manager, or
organization gaming licensee who extends credit to a riverboat
gambling patron pursuant to paragraph (12) of Section 11
institute a cause of action to collect any amounts due and
owing under the extension of credit, as well as the licensed
owner's, licensed or manager's, or organization gaming
licensee's costs, expenses and reasonable attorney's fees
incurred in collection.
(Source: P.A. 93-28, eff. 6-20-03.)
(230 ILCS 10/12) (from Ch. 120, par. 2412)
Sec. 12. Admission tax; fees.
(a) A tax is hereby imposed upon admissions to riverboat
and casino gambling facilities riverboats operated by licensed
owners authorized pursuant to this Act. Until July 1, 2002, the
rate is $2 per person admitted. From July 1, 2002 until July 1,
2003, the rate is $3 per person admitted. From July 1, 2003
until August 23, 2005 (the effective date of Public Act
94-673), for a licensee that admitted 1,000,000 persons or
fewer in the previous calendar year, the rate is $3 per person
admitted; for a licensee that admitted more than 1,000,000 but
no more than 2,300,000 persons in the previous calendar year,
the rate is $4 per person admitted; and for a licensee that
admitted more than 2,300,000 persons in the previous calendar
year, the rate is $5 per person admitted. Beginning on August
23, 2005 (the effective date of Public Act 94-673), for a
licensee that admitted 1,000,000 persons or fewer in calendar
year 2004, the rate is $2 per person admitted, and for all
other licensees, including licensees that were not conducting
gambling operations in 2004, the rate is $3 per person
admitted. This admission tax is imposed upon the licensed owner
conducting gambling.
(1) The admission tax shall be paid for each admission,
except that a person who exits a riverboat gambling
facility and reenters that riverboat gambling facility
within the same gaming day shall be subject only to the
initial admission tax.
(2) (Blank).
(3) The riverboat licensee may issue tax-free passes to
actual and necessary officials and employees of the
licensee or other persons actually working on the
riverboat.
(4) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(a-5) A fee is hereby imposed upon admissions operated by
licensed managers on behalf of the State pursuant to Section
7.3 at the rates provided in this subsection (a-5). For a
licensee that admitted 1,000,000 persons or fewer in the
previous calendar year, the rate is $3 per person admitted; for
a licensee that admitted more than 1,000,000 but no more than
2,300,000 persons in the previous calendar year, the rate is $4
per person admitted; and for a licensee that admitted more than
2,300,000 persons in the previous calendar year, the rate is $5
per person admitted.
(1) The admission fee shall be paid for each admission.
(2) (Blank).
(3) The licensed manager may issue fee-free passes to
actual and necessary officials and employees of the manager
or other persons actually working on the riverboat.
(4) The number and issuance of fee-free passes is
subject to the rules of the Board, and a list of all
persons to whom the fee-free passes are issued shall be
filed with the Board.
(b) Except as provided in subsection (b-5), from From the
tax imposed under subsection (a) and the fee imposed under
subsection (a-5), a municipality shall receive from the State
$1 for each person embarking on a riverboat docked within the
municipality or entering a casino located within the
municipality, and a county shall receive $1 for each person
entering a casino or embarking on a riverboat docked within the
county but outside the boundaries of any municipality. The
municipality's or county's share shall be collected by the
Board on behalf of the State and remitted quarterly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-5) From the tax imposed under subsection (a) and the fee
imposed under subsection (a-5), $1 for each person embarking on
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be divided as follows: $0.70 to the City of
Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
of Machesney Park, and $0.20 to Winnebago County.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-10) From the tax imposed under subsection (a) and the
fee imposed under subsection (a-5), $1 for each person
embarking on a riverboat or entering a casino designated in
paragraph (1) of subsection (e-5) of Section 7 shall be divided
as follows: $0.70 to the City of Chicago, $0.15 to the Village
of Maywood, and $0.15 to the Village of Summit.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-15) From the tax imposed under subsection (a) and the
fee imposed under subsection (a-5), $1 for each person
embarking on a riverboat or entering a casino designated in
paragraph (2) of subsection (e-5) of Section 7 shall be divided
as follows: $0.70 to the City of Danville and $0.30 to
Vermilion County.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(c) The licensed owner shall pay the entire admission tax
to the Board and the licensed manager shall pay the entire
admission fee to the Board. Such payments shall be made daily.
Accompanying each payment shall be a return on forms provided
by the Board which shall include other information regarding
admissions as the Board may require. Failure to submit either
the payment or the return within the specified time may result
in suspension or revocation of the owners or managers license.
(c-5) A tax is imposed on admissions to organization gaming
facilities at the rate of $3 per person admitted by an
organization gaming licensee. The tax is imposed upon the
organization gaming licensee.
(1) The admission tax shall be paid for each admission,
except that a person who exits an organization gaming
facility and reenters that organization gaming facility
within the same gaming day, as the term "gaming day" is
defined by the Board by rule, shall be subject only to the
initial admission tax. The Board shall establish, by rule,
a procedure to determine whether a person admitted to an
organization gaming facility has paid the admission tax.
(2) An organization gaming licensee may issue tax-free
passes to actual and necessary officials and employees of
the licensee and other persons associated with its gaming
operations.
(3) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(4) The organization gaming licensee shall pay the
entire admission tax to the Board.
Such payments shall be made daily. Accompanying each
payment shall be a return on forms provided by the Board, which
shall include other information regarding admission as the
Board may require. Failure to submit either the payment or the
return within the specified time may result in suspension or
revocation of the organization gaming license.
From the tax imposed under this subsection (c-5), a
municipality other than the Village of Stickney or the City of
Collinsville in which an organization gaming facility is
located, or if the organization gaming facility is not located
within a municipality, then the county in which the
organization gaming facility is located, except as otherwise
provided in this Section, shall receive, subject to
appropriation, $1 for each person who enters the organization
gaming facility. For each admission to the organization gaming
facility in excess of 1,500,000 in a year, from the tax imposed
under this subsection (c-5), the county in which the
organization gaming facility is located shall receive, subject
to appropriation, $0.30, which shall be in addition to any
other moneys paid to the county under this Section.
From the tax imposed under this subsection (c-5) on an
organization gaming facility located in the Village of
Stickney, $1 for each person who enters the organization gaming
facility shall be distributed as follows, subject to
appropriation: $0.24 to the Village of Stickney, $0.49 to the
Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
Stickney Public Health District, and $0.05 to the City of
Bridgeview.
From the tax imposed under this subsection (c-5) on an
organization gaming facility located in the City of
Collinsville, the following shall each receive 10 cents for
each person who enters the organization gaming facility,
subject to appropriation: the Village of Alorton; the Village
of Washington Park; State Park Place; the Village of Fairmont
City; the City of Centreville; the Village of Brooklyn; the
City of Venice; the City of Madison; the Village of Caseyville;
and the Village of Pontoon Beach.
On the 25th day of each month, all amounts remaining after
payments required under this subsection (c-5) have been made
shall be transferred into the Capital Projects Fund.
(d) The Board shall administer and collect the admission
tax imposed by this Section, to the extent practicable, in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at
the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed and ending upon the
imposition of the privilege tax under subsection (a-5) of this
Section, a privilege tax is imposed on persons engaged in the
business of conducting riverboat gambling operations, other
than licensed managers conducting riverboat gambling
operations on behalf of the State, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
For the imposition of the privilege tax in this subsection
(a-4), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-5) Beginning on the first day that an owners licensee
under paragraph (1), (2), (3), (4), (5), or (6) of subsection
(e-5) of Section 7 conducts gambling operations, either in a
temporary facility or a permanent facility, a privilege tax is
imposed on persons engaged in the business of conducting
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by such licensee from the
gambling games authorized under this Act. The privilege tax for
all gambling games other than table games, including, but not
limited to, slot machines, video game of chance gambling, and
electronic gambling games shall be at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
The privilege tax for table games shall be at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
Notwithstanding the provisions of this subsection (a-5),
for the first 10 years that the privilege tax is imposed under
this subsection (a-5), the privilege tax shall be imposed on
the modified annual adjusted gross receipts of a riverboat or
casino conducting gambling operations in the City of East St.
Louis, unless:
(1) the riverboat or casino fails to employ at least
450 people;
(2) the riverboat or casino fails to maintain
operations in a manner consistent with this Act or is not a
viable riverboat or casino subject to the approval of the
Board; or
(3) the owners licensee is not an entity in which
employees participate in an employee stock ownership plan.
As used in this subsection (a-5), "modified annual adjusted
gross receipts" means:
(A) for calendar year 2020, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross receipts
for 2018;
(B) for calendar year 2021, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross receipts
for 2019; and
(C) for calendar years 2022 through 2029, the annual
adjusted gross receipts for the current year minus the
difference between an amount equal to the average annual
adjusted gross receipts from a riverboat or casino
conducting gambling operations in the City of East St.
Louis for 3 years preceding the current year and the annual
adjusted gross receipts for the immediately preceding
year.
(a-5.5) In addition to the privilege tax imposed under
subsection (a-5), a privilege tax is imposed on the owners
licensee under paragraph (1) of subsection (e-5) of Section 7
at the rate of one-third of the owners licensee's adjusted
gross receipts.
For the imposition of the privilege tax in this subsection
(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-6) From the effective date of this amendatory Act of the
101st General Assembly until June 30, 2023, an owners licensee
that conducted gambling operations prior to January 1, 2011
shall receive a dollar-for-dollar credit against the tax
imposed under this Section for any renovation or construction
costs paid by the owners licensee, but in no event shall the
credit exceed $2,000,000.
Additionally, from the effective date of this amendatory
Act of the 101st General Assembly until December 31, 2022, an
owners licensee that (i) is located within 15 miles of the
Missouri border, and (ii) has at least 3 riverboats, casinos,
or their equivalent within a 45-mile radius, may be authorized
to relocate to a new location with the approval of both the
unit of local government designated as the home dock and the
Board, so long as the new location is within the same unit of
local government and no more than 3 miles away from its
original location. Such owners licensee shall receive a credit
against the tax imposed under this Section equal to 8% of the
total project costs, as approved by the Board, for any
renovation or construction costs paid by the owners licensee
for the construction of the new facility, provided that the new
facility is operational by July 1, 2022. In determining whether
or not to approve a relocation, the Board must consider the
extent to which the relocation will diminish the gaming
revenues received by other Illinois gaming facilities.
(a-7) Beginning in the initial adjustment year and through
the final adjustment year, if the total obligation imposed
pursuant to either subsection (a-5) or (a-6) will result in an
owners licensee receiving less after-tax adjusted gross
receipts than it received in calendar year 2018, then the total
amount of privilege taxes that the owners licensee is required
to pay for that calendar year shall be reduced to the extent
necessary so that the after-tax adjusted gross receipts in that
calendar year equals the after-tax adjusted gross receipts in
calendar year 2018, but the privilege tax reduction shall not
exceed the annual adjustment cap. If pursuant to this
subsection (a-7), the total obligation imposed pursuant to
either subsection (a-5) or (a-6) shall be reduced, then the
owners licensee shall not receive a refund from the State at
the end of the subject calendar year but instead shall be able
to apply that amount as a credit against any payments it owes
to the State in the following calendar year to satisfy its
total obligation under either subsection (a-5) or (a-6). The
credit for the final adjustment year shall occur in the
calendar year following the final adjustment year.
If an owners licensee that conducted gambling operations
prior to January 1, 2019 expands its riverboat or casino,
including, but not limited to, with respect to its gaming
floor, additional non-gaming amenities such as restaurants,
bars, and hotels and other additional facilities, and incurs
construction and other costs related to such expansion from the
effective date of this amendatory Act of the 101st General
Assembly until the 5th anniversary of the effective date of
this amendatory Act of the 101st General Assembly, then for
each $15,000,000 spent for any such construction or other costs
related to expansion paid by the owners licensee, the final
adjustment year shall be extended by one year and the annual
adjustment cap shall increase by 0.2% of adjusted gross
receipts during each calendar year until and including the
final adjustment year. No further modifications to the final
adjustment year or annual adjustment cap shall be made after
$75,000,000 is incurred in construction or other costs related
to expansion so that the final adjustment year shall not extend
beyond the 9th calendar year after the initial adjustment year,
not including the initial adjustment year, and the annual
adjustment cap shall not exceed 4% of adjusted gross receipts
in a particular calendar year. Construction and other costs
related to expansion shall include all project related costs,
including, but not limited to, all hard and soft costs,
financing costs, on or off-site ground, road or utility work,
cost of gaming equipment and all other personal property,
initial fees assessed for each incremental gaming position, and
the cost of incremental land acquired for such expansion. Soft
costs shall include, but not be limited to, legal fees,
architect, engineering and design costs, other consultant
costs, insurance cost, permitting costs, and pre-opening costs
related to the expansion, including, but not limited to, any of
the following: marketing, real estate taxes, personnel,
training, travel and out-of-pocket expenses, supply,
inventory, and other costs, and any other project related soft
costs.
To be eligible for the tax credits in subsection (a-6), all
construction contracts shall include a requirement that the
contractor enter into a project labor agreement with the
building and construction trades council with geographic
jurisdiction of the location of the proposed gaming facility.
Notwithstanding any other provision of this subsection
(a-7), this subsection (a-7) does not apply to an owners
licensee unless such owners licensee spends at least
$15,000,000 on construction and other costs related to its
expansion, excluding the initial fees assessed for each
incremental gaming position.
This subsection (a-7) does not apply to owners licensees
authorized pursuant to subsection (e-5) of Section 7 of this
Act.
For purposes of this subsection (a-7):
"Building and construction trades council" means any
organization representing multiple construction entities that
are monitoring or attentive to compliance with public or
workers' safety laws, wage and hour requirements, or other
statutory requirements or that are making or maintaining
collective bargaining agreements.
"Initial adjustment year" means the year commencing on
January 1 of the calendar year immediately following the
earlier of the following:
(1) the commencement of gambling operations, either in
a temporary or permanent facility, with respect to the
owners license authorized under paragraph (1) of
subsection (e-5) of Section 7 of this Act; or
(2) 24 months after the effective date of this
amendatory Act of the 101st General Assembly, provided the
initial adjustment year shall not commence earlier than 12
months after the effective date of this amendatory Act of
the 101st General Assembly.
"Final adjustment year" means the 2nd calendar year after
the initial adjustment year, not including the initial
adjustment year, and as may be extended further as described in
this subsection (a-7).
"Annual adjustment cap" means 3% of adjusted gross receipts
in a particular calendar year, and as may be increased further
as otherwise described in this subsection (a-7).
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-9) Beginning on January 1, 2020, the calculation of
gross receipts or adjusted gross receipts, for the purposes of
this Section, for a riverboat, a casino, or an organization
gaming facility shall not include the dollar amount of
non-cashable vouchers, coupons, and electronic promotions
redeemed by wagerers upon the riverboat, in the casino, or in
the organization gaming facility up to and including an amount
not to exceed 20% of a riverboat's, a casino's, or an
organization gaming facility's adjusted gross receipts.
The Illinois Gaming Board shall submit to the General
Assembly a comprehensive report no later than March 31, 2023
detailing, at a minimum, the effect of removing non-cashable
vouchers, coupons, and electronic promotions from this
calculation on net gaming revenues to the State in calendar
years 2020 through 2022, the increase or reduction in wagerers
as a result of removing non-cashable vouchers, coupons, and
electronic promotions from this calculation, the effect of the
tax rates in subsection (a-5) on net gaming revenues to this
State, and proposed modifications to the calculation.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner or the organization gaming licensee to the
Board not later than 5:00 o'clock p.m. of the day after the day
when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,
(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the
Board.
(b) From Until January 1, 1998, 25% of the tax revenue
revenue from riverboat or casino gambling deposited in the
State Gaming Fund under this Section, an amount equal to 5% of
adjusted gross receipts generated by a riverboat or a casino,
other than a riverboat or casino designated in paragraph (1),
(3), or (4) of subsection (e-5) of Section 7, shall be paid
monthly, subject to appropriation by the General Assembly, to
the unit of local government in which the casino is located or
that is designated as the home dock of the riverboat.
Notwithstanding anything to the contrary, beginning on the
first day that an owners licensee under paragraph (1), (2),
(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, and for 2 years thereafter, a unit of local
government designated as the home dock of a riverboat whose
license was issued before January 1, 2019, other than a
riverboat conducting gambling operations in the City of East
St. Louis, shall not receive less under this subsection (b)
than the amount the unit of local government received under
this subsection (b) in calendar year 2018. Notwithstanding
anything to the contrary and because the City of East St. Louis
is a financially distressed city, beginning on the first day
that an owners licensee under paragraph (1), (2), (3), (4),
(5), or (6) of subsection (e-5) of Section 7 conducts gambling
operations, either in a temporary facility or a permanent
facility, and for 10 years thereafter, a unit of local
government designated as the home dock of a riverboat
conducting gambling operations in the City of East St. Louis
shall not receive less under this subsection (b) than the
amount the unit of local government received under this
subsection (b) in calendar year 2018.
From the tax revenue deposited in the State Gaming Fund
pursuant to riverboat or casino gambling operations conducted
by a licensed manager on behalf of the State, an amount equal
to 5% of adjusted gross receipts generated pursuant to those
riverboat or casino gambling operations shall be paid monthly,
subject to appropriation by the General Assembly, to the unit
of local government that is designated as the home dock of the
riverboat upon which those riverboat gambling operations are
conducted or in which the casino is located.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (3) of subsection (e-5) of
Section 7 shall be divided and remitted monthly, subject to
appropriation, as follows: 70% to Waukegan, 10% to Park City,
15% to North Chicago, and 5% to Lake County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 70% to the City of Rockford, 5% to the City of
Loves Park, 5% to the Village of Machesney, and 20% to
Winnebago County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (5) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 2% to the unit of local government in which the
riverboat or casino is located, and 3% shall be distributed:
(A) in accordance with a regional capital development plan
entered into by the following communities: Village of Beecher,
City of Blue Island, Village of Burnham, City of Calumet City,
Village of Calumet Park, City of Chicago Heights, City of
Country Club Hills, Village of Crestwood, Village of Crete,
Village of Dixmoor, Village of Dolton, Village of East Hazel
Crest, Village of Flossmoor, Village of Ford Heights, Village
of Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village of
Monee, City of Oak Forest, Village of Olympia Fields, Village
of Orland Hills, Village of Orland Park, City of Palos Heights,
Village of Park Forest, Village of Phoenix, Village of Posen,
Village of Richton Park, Village of Riverdale, Village of
Robbins, Village of Sauk Village, Village of South Chicago
Heights, Village of South Holland, Village of Steger, Village
of Thornton, Village of Tinley Park, Village of University Park
and Village of Worth; or (B) if no regional capital development
plan exists, equally among the communities listed in item (A)
to be used for capital expenditures or public pension payments,
or both.
Units of local government may refund any portion of the
payment that they receive pursuant to this subsection (b) to
the riverboat or casino.
(b-4) Beginning on the first day the licensee under
paragraph (5) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, and ending on July 31, 2042, from the tax
revenue deposited in the State Gaming Fund under this Section,
$5,000,000 shall be paid annually, subject to appropriation, to
the host municipality of that owners licensee of a license
issued or re-issued pursuant to Section 7.1 of this Act before
January 1, 2012. Payments received by the host municipality
pursuant to this subsection (b-4) may not be shared with any
other unit of local government.
(b-5) Beginning on the effective date of this amendatory
Act of the 101st General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 3% of adjusted gross receipts generated by each
organization gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to a municipality other than the Village of Stickney
in which each organization gaming facility is located or, if
the organization gaming facility is not located within a
municipality, to the county in which the organization gaming
facility is located, except as otherwise provided in this
Section. From the tax revenue deposited in the State Gaming
Fund under this Section, an amount equal to 3% of adjusted
gross receipts generated by an organization gaming facility
located in the Village of Stickney shall be paid monthly,
subject to appropriation by the General Assembly, as follows:
25% to the Village of Stickney, 5% to the City of Berwyn, 50%
to the Town of Cicero, and 20% to the Stickney Public Health
District.
From the tax revenue deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross
receipts generated by an organization gaming facility located
in the City of Collinsville shall be paid monthly, subject to
appropriation by the General Assembly, as follows: 30% to the
City of Alton, 30% to the City of East St. Louis, and 40% to the
City of Collinsville.
Municipalities and counties may refund any portion of the
payment that they receive pursuant to this subsection (b-5) to
the organization gaming facility.
(b-6) Beginning on the effective date of this amendatory
Act of the 101st General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 2% of adjusted gross receipts generated by an
organization gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to the county in which the organization gaming
facility is located for the purposes of its criminal justice
system or health care system.
Counties may refund any portion of the payment that they
receive pursuant to this subsection (b-6) to the organization
gaming facility.
(b-7) From the tax revenue from the organization gaming
licensee located in one of the following townships of Cook
County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
Worth, an amount equal to 5% of the adjusted gross receipts
generated by that organization gaming licensee shall be
remitted monthly, subject to appropriation, as follows: 2% to
the unit of local government in which the organization gaming
licensee is located, and 3% shall be distributed: (A) in
accordance with a regional capital development plan entered
into by the following communities: Village of Beecher, City of
Blue Island, Village of Burnham, City of Calumet City, Village
of Calumet Park, City of Chicago Heights, City of Country Club
Hills, Village of Crestwood, Village of Crete, Village of
Dixmoor, Village of Dolton, Village of East Hazel Crest,
Village of Flossmoor, Village of Ford Heights, Village of
Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village of
Monee, City of Oak Forest, Village of Olympia Fields, Village
of Orland Hills, Village of Orland Park, City of Palos Heights,
Village of Park Forest, Village of Phoenix, Village of Posen,
Village of Richton Park, Village of Riverdale, Village of
Robbins, Village of Sauk Village, Village of South Chicago
Heights, Village of South Holland, Village of Steger, Village
of Thornton, Village of Tinley Park, Village of University
Park, and Village of Worth; or (B) if no regional capital
development plan exists, equally among the communities listed
in item (A) to be used for capital expenditures or public
pension payments, or both.
(b-8) In lieu of the payments under subsection (b) of this
Section, the tax revenue from the privilege tax imposed by
subsection (a-5.5) shall be paid monthly, subject to
appropriation by the General Assembly, to the City of Chicago
and shall be expended or obligated by the City of Chicago for
pension payments in accordance with Public Act 99-506.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video Gaming
Act, (ii) for distribution to the Department of State Police
and to the Department of Revenue for the enforcement of this
Act, and the Video Gaming Act, and (iii) to the Department of
Human Services for the administration of programs to treat
problem gambling. The Board's annual appropriations request
must separately state its funding needs for the regulation of
gaming authorized under Section 7.7, riverboat gaming, casino
gaming, video gaming, and sports wagering.
(c-2) An amount equal to 2% of the adjusted gross receipts
generated by an organization gaming facility located within a
home rule county with a population of over 3,000,000
inhabitants shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to the home rule
county in which the organization gaming licensee is located for
the purpose of enhancing the county's criminal justice system.
(c-3) Appropriations, as approved by the General Assembly,
may be made from the tax revenue deposited into the State
Gaming Fund from organization gaming licensees pursuant to this
Section for the administration and enforcement of this Act.
(c-4) After payments required under subsections (b),
(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
the tax revenue from organization gaming licensees deposited
into the State Gaming Fund under this Section, all remaining
amounts from organization gaming licensees shall be
transferred into the Capital Projects Fund.
(c-5) (Blank). Before May 26, 2006 (the effective date of
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-21) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
been made, an amount equal to 2% of the adjusted gross receipts
generated by the owners licensee under paragraph (1) of
subsection (e-5) of Section 7 shall be paid, subject to
appropriation from the General Assembly, from the State Gaming
Fund to the home rule county in which the owners licensee is
located for the purpose of enhancing the county's criminal
justice system.
(c-22) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
(c-21) have been made, an amount equal to 2% of the adjusted
gross receipts generated by the owners licensee under paragraph
(5) of subsection (e-5) of Section 7 shall be paid, subject to
appropriation from the General Assembly, from the State Gaming
Fund to the home rule county in which the owners licensee is
located for the purpose of enhancing the county's criminal
justice system.
(c-25) From On July 1, 2013 and each July 1
thereafterthrough July 1, 2019, $1,600,000 shall be
transferred from the State Gaming Fund to the Chicago State
University Education Improvement Fund.
On July 1, 2020 and each July 1 thereafter, $3,000,000
shall be transferred from the State Gaming Fund to the Chicago
State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any amount
transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education
Assistance Fund, created by Public Act 86-0018, of the State of
Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 98-18, eff. 6-7-13.)
(230 ILCS 10/14) (from Ch. 120, par. 2414)
Sec. 14. Licensees - Records - Reports - Supervision.
(a) Licensed owners and organization gaming licensees A
clearly show the following:
(1) The amount received daily from admission fees.
(2) The total amount of gross receipts.
(3) The total amount of the adjusted gross receipts.
(b) Licensed owners and organization gaming licensees The
information as the Board may require with respect to its
activities on forms designed and supplied for such purpose by
the Board.
(c) The books and records kept by a licensed owner as
provided by this Section are public records and the
examination, publication, and dissemination of the books and
records are governed by the provisions of The Freedom of
Information Act.
(Source: P.A. 86-1029.)
(230 ILCS 10/15) (from Ch. 120, par. 2415)
Sec. 15. Audit of Licensee Operations. Annually, the
licensed owner, or manager, or organization gaming licensee
shall transmit to the Board an audit of the financial
transactions and condition of the licensee's or manager's total
operations. Additionally, within 90 days after the end of each
quarter of each fiscal year, the licensed owner, or manager, or
organization gaming licensee shall transmit to the Board a
compliance report on engagement procedures determined by the
Board. All audits and compliance engagements shall be conducted
by certified public accountants selected by the Board. Each
certified public accountant must be registered in the State of
Illinois under the Illinois Public Accounting Act. The
compensation for each certified public accountant shall be paid
directly by the licensed owner, or manager, or organization
gaming licensee to the certified public accountant.
(Source: P.A. 96-1392, eff. 1-1-11.)
(230 ILCS 10/17) (from Ch. 120, par. 2417)
Sec. 17. Administrative Procedures. The Illinois
Administrative Procedure Act shall apply to all administrative
rules and procedures of the Board under this Act and or the
Video Gaming Act, except that: (1) subsection (b) of Section
5-10 of the Illinois Administrative Procedure Act does not
apply to final orders, decisions and opinions of the Board; (2)
subsection (a) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to forms established by the Board
for use under this Act and or the Video Gaming Act; (3) the
provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded
under this Act and or the Video Gaming Act; and (4) the
provisions of subsection (d) of Section 10-65 of the Illinois
Administrative Procedure Act do not apply so as to prevent
summary suspension of any license pending revocation or other
action, which suspension shall remain in effect unless modified
by the Board or unless the Board's decision is reversed on the
merits upon judicial review.
(Source: P.A. 96-34, eff. 7-13-09.)
(230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
Sec. 17.1. Judicial Review.
(a) Jurisdiction and venue for the judicial review of a
final order of the Board relating to licensed owners,
suppliers, organization gaming licensees, and or special event
licenses is vested in the Appellate Court of the judicial
district in which Sangamon County is located. A petition for
judicial review of a final order of the Board must be filed in
the Appellate Court, within 35 days from the date that a copy
of the decision sought to be reviewed was served upon the party
affected by the decision.
(b) Judicial review of all other final orders of the Board
shall be conducted in accordance with the Administrative Review
Law.
(Source: P.A. 88-1.)
(230 ILCS 10/18) (from Ch. 120, par. 2418)
Sec. 18. Prohibited Activities - Penalty.
(a) A person is guilty of a Class A misdemeanor for doing
any of the following:
(1) Conducting gambling where wagering is used or to be
used without a license issued by the Board.
(2) Conducting gambling where wagering is permitted
other than in the manner specified by Section 11.
(b) A person is guilty of a Class B misdemeanor for doing
any of the following:
(1) permitting a person under 21 years to make a wager;
or
(2) violating paragraph (12) of subsection (a) of
Section 11 of this Act.
(c) A person wagering or accepting a wager at any location
outside the riverboat, casino, or organization gaming facility
in violation of paragraph is subject to the penalties in
Criminal Code of 2012 is subject to the penalties provided in
that Section.
(d) A person commits a Class 4 felony and, in addition,
shall be barred for life from gambling operations riverboats
under the jurisdiction of the Board, if the person does any of
the following:
(1) Offers, promises, or gives anything of value or
benefit to a person who is connected with a riverboat or
casino owner or organization gaming licensee, including,
but not limited to, an officer or employee of a licensed
owner, organization gaming licensee, or holder of an
occupational license pursuant to an agreement or
arrangement or with the intent that the promise or thing of
value or benefit will influence the actions of the person
to whom the offer, promise, or gift was made in order to
affect or attempt to affect the outcome of a gambling game,
or to influence official action of a member of the Board.
(2) Solicits or knowingly accepts or receives a promise
of anything of value or benefit while the person is
connected with a riverboat, casino, or organization gaming
facility, including, but not limited to, an officer or
employee of a licensed owner or organization gaming
licensee, or the holder of an occupational license,
pursuant to an understanding or arrangement or with the
intent that the promise or thing of value or benefit will
influence the actions of the person to affect or attempt to
affect the outcome of a gambling game, or to influence
official action of a member of the Board.
(3) Uses or possesses with the intent to use a device
to assist:
(i) In projecting the outcome of the game.
(ii) In keeping track of the cards played.
(iii) In analyzing the probability of the
occurrence of an event relating to the gambling game.
(iv) In analyzing the strategy for playing or
betting to be used in the game except as permitted by
the Board.
(4) Cheats at a gambling game.
(5) Manufactures, sells, or distributes any cards,
chips, dice, game or device which is intended to be used to
violate any provision of this Act.
(6) Alters or misrepresents the outcome of a gambling
game on which wagers have been made after the outcome is
made sure but before it is revealed to the players.
(7) Places a bet after acquiring knowledge, not
available to all players, of the outcome of the gambling
game which is subject of the bet or to aid a person in
acquiring the knowledge for the purpose of placing a bet
contingent on that outcome.
(8) Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games, with intent to defraud, without having made
a wager contingent on winning a gambling game, or claims,
collects, or takes an amount of money or thing of value of
greater value than the amount won.
(9) Uses counterfeit chips or tokens in a gambling
game.
(10) Possesses any key or device designed for the
purpose of opening, entering, or affecting the operation of
a gambling game, drop box, or an electronic or mechanical
device connected with the gambling game or for removing
coins, tokens, chips or other contents of a gambling game.
This paragraph (10) does not apply to a gambling licensee
or employee of a gambling licensee acting in furtherance of
the employee's employment.
(e) The possession of more than one of the devices
described in subsection (d), paragraphs (3), (5), or (10)
permits a rebuttable presumption that the possessor intended to
use the devices for cheating.
(f) A person under the age of 21 who, except as authorized
under paragraph (10) of Section 11, enters upon a riverboat or
in a casino or organization gaming facility commits a petty
offense and is subject to a fine of not less than $100 or more
than $250 for a first offense and of not less than $200 or more
than $500 for a second or subsequent offense.
An action to prosecute any crime occurring on a riverboat
shall be tried in the county of the dock at which the riverboat
is based. An action to prosecute any crime occurring in a
casino or organization gaming facility shall be tried in the
county in which the casino or organization gaming facility is
located.
(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
(230 ILCS 10/18.1)
Sec. 18.1. Distribution of certain fines. If a fine is
imposed on an owners owner licensee or an organization gaming
licensee for knowingly sending marketing or promotional
materials to any person placed on the self-exclusion list, then
the Board shall distribute an amount equal to 15% of the fine
imposed to the unit of local government in which the casino,
riverboat, or organization gaming facility is located for the
purpose of awarding grants to non-profit entities that assist
gambling addicts.
(Source: P.A. 96-224, eff. 8-11-09.)
(230 ILCS 10/19) (from Ch. 120, par. 2419)
Sec. 19. Forfeiture of property.
(a) Except as provided in subsection (b), any riverboat,
casino, or organization gaming facility used for the conduct of
gambling games in violation of this Act shall be considered a
gambling place in violation of Section 28-3 of the Criminal
Code of 2012. Every gambling device found on a riverboat, in a
casino, or at an organization gaming facility operating
gambling games in violation of this Act and every slot machine
and video game of chance found at an organization gaming
facility operating gambling games in violation of this Act
shall be subject to seizure, confiscation and destruction as
provided in Section 28-5 of the Criminal Code of 2012.
(b) It is not a violation of this Act for a riverboat or
other watercraft which is licensed for gaming by a contiguous
state to dock on the shores of this State if the municipality
having jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State. No gambling device
shall be subject to seizure, confiscation or destruction if the
gambling device is located on a riverboat or other watercraft
which is licensed for gaming by a contiguous state and which is
docked on the shores of this State if the municipality having
jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State.
(Source: P.A. 97-1150, eff. 1-25-13.)
(230 ILCS 10/20) (from Ch. 120, par. 2420)
Sec. 20. Prohibited activities - civil penalties. Any
person who conducts a gambling operation without first
obtaining a license to do so, or who continues to conduct such
games after revocation of his license, or any licensee who
conducts or allows to be conducted any unauthorized gambling
games on a riverboat, in a casino, or at an organization gaming
facility where it is authorized to conduct its riverboat
gambling operation, in addition to other penalties provided,
shall be subject to a civil penalty equal to the amount of
gross receipts derived from wagering on the gambling games,
whether unauthorized or authorized, conducted on that day as
well as confiscation and forfeiture of all gambling game
equipment used in the conduct of unauthorized gambling games.
(Source: P.A. 86-1029.)
(230 ILCS 10/24)
Sec. 24. Applicability of this Illinois Riverboat Gambling
Act. The provisions of this the Illinois Riverboat Gambling
Act, and all rules promulgated thereunder, shall apply to the
Video Gaming Act, except where there is a conflict between the
Video Gaming Act, the terms of this Act shall prevail.
(Source: P.A. 96-37, eff. 7-13-09.)
Section 35-60. The Video Gaming Act is amended by changing
Sections 5, 15, 20, 25, 30, 35, 45, 55, 58, 60, 79, and 80 as
follows:
→ This section amends the laws governing video gambling. It increases the tax on video gambling machines while also upping the number of machines allowed at each location. It creates a new category called “large truck stops,” which will be allowed to have up to 10 machines.
The maximum amount per bet also goes up under this legislation, from $2 to $4, and it raises the maximum cash reward per hand from $500 to $1,199. And it allows all 7,000-some locations to each have jackpots of $10,000.
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, or licensed truck stop establishment,
or licensed large truck stop establishment for use in that
establishment as a substitute for cash in the conduct of gaming
on a video gaming terminal.
"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the
licensed establishment for which it was issued.
"In-location bonus jackpot" means one or more video gaming
terminals at a single licensed establishment that allows for
wagers placed on such video gaming terminals to contribute to a
cumulative maximum jackpot of up to $10,000.
→This creates what the gambling industry calls “progressives.” Las Vegas casinos have a lot of these. Basically, as people place bets and lose, a small portion of the money is set aside in a jackpot that can grow up to $10,000 at each location.
The idea is that people will keep playing in hopes of hitting the big money. The odds are unknown at this point, but one thing you can count on: They’ll be long.
We have obtained documents that show the video gambling industry hoped to create progressives with jackpots as high as $100,000. But legislators appear to have kept the limit at $10,000.
Setting up progressives isn’t as as easy as pushing a button or loading software. Video gambling machine manufacturers may require companies to buy new equipment. There’s also a publicly traded company called Scientific Games, also known as SciGames, that runs the central server connecting all of the state’s video gambling devices. SciGames would play a big role in setting up progressives, as well. And SciGames doesn’t work for free. This part of the bill is going to take time to materialize.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed large truck stop establishments,
licensed fraternal establishments, or licensed
veterans establishments.
"Licensed technician" means an individual who is licensed
under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but
not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess or
control a video gaming terminal or to have access to the inner
workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal
operator under this Act.
"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act to
supply major components or parts to video gaming terminals to
licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to
video poker, line up, and blackjack, as authorized by the Board
utilizing a video display and microprocessors in which the
player may receive free games or credits that can be redeemed
for cash. The term does not include a machine that directly
dispenses coins, cash, or tokens or is for amusement purposes
only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that
has a contractual relationship with an inter-track wagering
location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is also
the corporate parent or subsidiary of any licensee licensed
under the Illinois Horse Racing Act of 1975. "Licensed
establishment" does not include a facility operated by an
organization licensee, an inter-track wagering licensee, or an
inter-track wagering location licensee licensed under the
Illinois Horse Racing Act of 1975 or a riverboat licensed under
the Illinois Riverboat Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where
a qualified veterans organization that derives its charter from
a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101 of
the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
"Licensed large truck stop establishment" means a facility
located within 3 road miles from a freeway interchange, as
measured in accordance with the Department of Transportation's
rules regarding the criteria for the installation of business
signs: (i) that is at least a 3-acre facility with a
convenience store, (ii) with separate diesel islands for
fueling commercial motor vehicles, (iii) that sells at retail
more than 50,000 gallons of diesel or biodiesel fuel per month,
and (iv) with parking spaces for commercial motor vehicles.
"Commercial motor vehicles" has the same meaning as defined in
Section 18b-101 of the Illinois Vehicle Code. The requirement
of item (iii) of this paragraph may be met by showing that
estimated future sales or past sales average at least 50,000
gallons per month.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13;
98-582, eff. 8-27-13; 98-587, eff. 8-27-13; 98-756, eff.
7-16-14.)
→ This was inserted between the time the bill passed the House and went to the Senate, and it highlights what can happen when lawmakers have little time to examine what they’re voting on.
Originally, the proposal tightened the definition of trucks stops, which are unique because, unlike other locations, truck stops don’t have to pour alcohol to have video gambling machines. Some gas stations have apparently been operating video slots and poker machine under this definition, even though they don’t service trucks.
But the final version of the bill reinstated the previous definition of truck stop and created another category, large truck stop. Who pushed this last-minute change? Why was it included? Nobody seems to know.
This provision requires large truck stops to be within 3 road miles of a freeway. It also sets the amount of gas that needs to be sold to qualify at 50,000 gallons a month. For regular truck stops, the threshold is 10,000 gallons.
Most important, further down in the legislation, large truck stops are given the right to have up to 10 games, more than any other type of video gambling location.
(230 ILCS 40/15)
Sec. 15. Minimum requirements for licensing and registration.
→ For those who follow the video gambling industry, this is a big deal. It goes back to the Illinois Gaming Board’s decision years ago to allow only one testing lab to approve video gambling machines in the state. Testing labs examine the software of video slot and poker machines to make sure the odds are correct and the games aren’t rigged.
There are two major testing labs in the U.S., New Jersey-based GLI and Las Vegas-based BMM. But for years the gaming board issued contracts for this work only to GLI. Illinois was the only state with legalized gambling that used a single testing lab. So BMM sued. The suit has gotten ugly, with BMM alleging the gaming board unfairly favored GLI. The lawsuit forced the board to rebid the last contract, and the Cook County Circuit Court judge presiding over the case recently ruled the gaming board violated the Open Meetings Act. This new provision requires the board to license all qualified testing labs and leaves it up to the manufacturers, not the gaming board, to choose the lab.
Every video gaming terminal offered for play shall first be tested and approved pursuant to the rules of the
Board, and each video gaming terminal offered in this State for
play shall conform to an approved model. For the examination of
video gaming machines and associated equipment as required by
this Section, the Board shall may utilize the services of one
accredited in accordance with ISO/IEC 17025 by an accreditation
body that is a signatory to the International Laboratory
Accreditation Cooperation Mutual Recognition Agreement
signifying they are qualified to by a national accreditation
perform such examinations. Notwithstanding any law to the
contrary, the Board shall consider the licensing of independent
outside testing laboratory applicants in accordance with
procedures established by the Board by rule. The Board shall
not withhold its approval of an independent outside testing
laboratory license applicant that has been accredited as
required by this Section and is licensed in gaming
jurisdictions comparable to Illinois. Upon the finalization of
required rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed
testing laboratory of the video gaming machine's or associated
equipment manufacturer's choice, notwithstanding the existence
of contracts between the Board and any independent testing
laboratory. Every video gaming terminal offered in this State
for play must meet minimum standards set by an independent
model shall, at a minimum, meet the following criteria:
(1) It must conform to all requirements of federal law
and regulations, including FCC Class A Emissions
Standards.
(2) It must theoretically pay out a mathematically
demonstrable percentage during the expected lifetime of
the machine of all amounts played, which must not be less
than 80%. The Board shall establish a maximum payout
percentage for approved models by rule. Video gaming
terminals that may be affected by skill must meet this
standard when using a method of play that will provide the
greatest return to the player over a period of continuous
play.
(3) It must use a random selection process to determine
the outcome of each play of a game. The random selection
process must meet 99% confidence limits using a standard
chi-squared test for (randomness) goodness of fit.
(4) It must display an accurate representation of the
game outcome.
(5) It must not automatically alter pay tables or any
function of the video gaming terminal based on internal
computation of hold percentage or have any means of
manipulation that affects the random selection process or
probabilities of winning a game.
(6) It must not be adversely affected by static
discharge or other electromagnetic interference.
(7) It must be capable of detecting and displaying the
following conditions during idle states or on demand: power
reset; door open; and door just closed.
(8) It must have the capacity to display complete play
history (outcome, intermediate play steps, credits
available, bets placed, credits paid, and credits cashed
out) for the most recent game played and 10 games prior
thereto.
(9) The theoretical payback percentage of a video
gaming terminal must not be capable of being changed
without making a hardware or software change in the video
gaming terminal, either on site or via the central
communications system.
(10) Video gaming terminals must be designed so that
replacement of parts or modules required for normal
maintenance does not necessitate replacement of the
electromechanical meters.
(11) It must have nonresettable meters housed in a
locked area of the terminal that keep a permanent record of
all cash inserted into the machine, all winnings made by
the terminal printer, credits played in for video gaming
terminals, and credits won by video gaming players. The
video gaming terminal must provide the means for on-demand
display of stored information as determined by the Board.
(12) Electronically stored meter information required
by this Section must be preserved for a minimum of 180 days
after a power loss to the service.
(13) It must have one or more mechanisms that accept
cash in the form of bills. The mechanisms shall be designed
to prevent obtaining credits without paying by stringing,
slamming, drilling, or other means. If such attempts at
physical tampering are made, the video gaming terminal
shall suspend itself from operating until reset.
(14) It shall have accounting software that keeps an
electronic record which includes, but is not limited to,
the following: total cash inserted into the video gaming
terminal; the value of winning tickets claimed by players;
the total credits played; the total credits awarded by a
video gaming terminal; and pay back percentage credited to
players of each video game.
(15) It shall be linked by a central communications
system to provide auditing program information as approved
by the Board. The central communications system shall use a
standard industry protocol, as defined by the Gaming
Standards Association, and shall have the functionality to
enable the Board or its designee to activate or deactivate
individual gaming devices from the central communications
system. In no event may the communications system approved
by the Board limit participation to only one manufacturer
of video gaming terminals by either the cost in
implementing the necessary program modifications to
communicate or the inability to communicate with the
central communications system.
(16) The Board, in its discretion, may require video
gaming terminals to display Amber Alert messages if the
Board makes a finding that it would be economically and
technically feasible and pose no risk to the integrity and
security of the central communications system and video
gaming terminals.
Licensed terminal handlers shall have access to video gaming terminals
, including, but not limited to, logic door
access, without the physical presence or supervision of the
Board or its agent to perform, in coordination with and with
project approval from the central communication system
provider:
→ This provision allows video gambling operators to send technicians to fix machines without a gaming board agent present. Prior to this, the gaming board had to send agents out to locations before the games could be repaired or upgraded. With about 7,000 establishments and close to 32,000 devices, that has required a lot of resources, especially considering the board was already short-staffed. The question going forward is whether this creates holes in the regulatory structure.
(i) the clearing of the random access memory and
reprogramming of the video gaming terminal;
(ii) the installation of new video gaming terminal
software and software upgrades that have been approved by
the Board;
(iii) the placement, connection to the central
communication system, and go-live operation of video
gaming terminals at a licensed establishment, licensed
truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or
licensed veterans establishment;
(iv) the repair and maintenance of a video gaming
terminal located at a licensed establishment, licensed
truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or
licensed veterans establishment, including, but not
limited to, the replacement of the video gaming terminal
with a new video gaming terminal;
(v) the temporary movement, disconnection,
replacement, and reconnection of video gaming terminals to
allow for physical improvements and repairs at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, such as
replacement of flooring, interior repairs, and other
similar activities; and
(vi) such other functions as the Board may otherwise
authorize.
The Board shall, at a licensed terminal operator's expense,
cause all keys and other required devices to be provided to a
terminal operator necessary to allow the licensed terminal
handler access to the logic door to the terminal operator's
video gaming terminals.
The Board may adopt rules to establish additional criteria
to preserve the integrity and security of video gaming in this
State. The central communications system vendor may be licensed
as a video gaming terminal manufacturer or a video gaming
terminal distributor, or both, but in no event shall the
central communications system vendor be licensed as a video
gaming terminal operator.
The Board shall not permit the development of information
or the use by any licensee of gaming device or individual game
performance data. Nothing in this Act shall inhibit or prohibit
the Board from the use of gaming device or individual game
performance data in its regulatory duties. The Board shall
adopt rules to ensure that all licensees are treated and all
licensees act in a non-discriminatory manner and develop
processes and penalties to enforce those rules.
(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,
eff. 8-27-13; 98-756, eff. 7-16-14.)
(230 ILCS 40/20)
Sec. 20. Video gaming terminal payouts Direct dispensing of
(a) A video gaming terminal may not directly dispense
coins, cash, tokens, or any other article of exchange or value
except for receipt tickets. Tickets shall be dispensed by
pressing the ticket dispensing button on the video gaming
terminal at the end of one's turn or play. The ticket shall
indicate the total amount of credits and the cash award, the
time of day in a 24-hour format showing hours and minutes, the
date, the terminal serial number, the sequential number of the
ticket, and an encrypted validation number from which the
validity of the prize may be determined. The player shall turn
in this ticket to the appropriate person at the licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment to receive
the cash award.
(b) The cost of the credit shall be one cent, 5 cents, 10
cents, or 25 cents, or $1, and the maximum wager played per
hand shall not exceed $4 $2. No cash award for the maximum
wager on any individual hand shall exceed $1,199 $500. No cash
award for the maximum wager on a jackpot, progressive or
otherwise, shall exceed $10,000.
→ This is a big change. It doubles the maximum bet from $2 to $4 and more than doubles the maximum payout, which will go from $500 to $1,199. This means people can lose money twice as fast. Many gambling addiction counselors are fearful this will worsen problem gambling. Video gambling operators hope it will offset the tax increase the legislation places on the machines.
This section also fleshes out the use of progressive jackpots, which can go up to $10,000. And it requires the gaming board to write emergency rules within 90 days to allow the implementation of these jackpots. This is just one among a number of emergency rules the legislation calls for the gaming board to create. So don’t be surprised if the timeframe turns out to be unrealistic.
And don’t expect to walk away with cash if you hit a jackpot. Video gambling operators will have 3 days to pay out jackpot winnings.
(c) In-location bonus jackpot games are hereby authorized.
The Board shall adopt emergency rules pursuant to Section 5-45
of the Illinois Administrative Procedure Act to implement this
subsection (c) within 90 days after the effective date of this
amendatory Act of the 101st General Assembly. Jackpot winnings
from in-location progressive games shall be paid by the
terminal operator to the player not later than 3 days after
winning such a jackpot.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
(230 ILCS 40/25)
Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a
manufacturer of a video gaming terminal in Illinois unless the
person has a valid manufacturer's license issued under this
Act. A manufacturer may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's
license.
(b) Distributor. A person may not sell, distribute, or
lease or market a video gaming terminal in Illinois unless the
person has a valid distributor's license issued under this Act.
A distributor may only sell video gaming terminals for use in
Illinois to persons having a valid distributor's or terminal
operator's license.
(c) Terminal operator. A person may not own, maintain, or
place a video gaming terminal unless he has a valid terminal
operator's license issued under this Act. A terminal operator
may only place video gaming terminals for use in Illinois in
licensed establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments. No
terminal operator may give anything of value, including but not
limited to a loan or financing arrangement, to a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment as any
incentive or inducement to locate video terminals in that
establishment. Of the after-tax profits from a video gaming
terminal, 50% shall be paid to the terminal operator and 50%
shall be paid to the licensed establishment, licensed truck
stop establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, notwithstanding any agreement to the contrary.
A video terminal operator that violates one or more
requirements of this subsection is guilty of a Class 4 felony
and is subject to termination of his or her license by the
Board.
(d) Licensed technician. A person may not service,
maintain, or repair a video gaming terminal in this State
unless he or she (1) has a valid technician's license issued
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(d-5) Licensed terminal handler. No person, including, but
not limited to, an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator licensed pursuant to this Act, shall have
possession or control of a video gaming terminal, or access to
the inner workings of a video gaming terminal, unless that
person possesses a valid terminal handler's license issued
under this Act.
(e) Licensed establishment. No video gaming terminal may be
placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed
large truck stop establishment, or licensed fraternal
establishment unless the owner or agent of the owner of the
licensed establishment, licensed veterans establishment,
licensed truck stop establishment, licensed large truck stop
establishment, or licensed fraternal establishment has entered
into a written use agreement with the terminal operator for
placement of the terminals. A copy of the use agreement shall
be on file in the terminal operator's place of business and
available for inspection by individuals authorized by the
Board. A licensed establishment, licensed truck stop
establishment, licensed veterans establishment, or licensed
fraternal establishment may operate up to 6 5 video gaming
terminals on its premises at any time. A licensed large truck
stop establishment may operate up to 10 video gaming terminals
on its premises at any time.
→ This increases the number of video gambling machines per location from five to six. Video gambling operators were pushing for up to seven machines, according to documents obtained by ProPublica Illinois.
It also allows the new category of large truck stop to have 10 video slot and poker machines.
How many locations install six machines remains to be seen. According to our calculations, about 2,000 locations have the current maximum of five machines and brought in at least $25,000 last month, a metric industry insiders say is a good threshold for justifying adding another machine.
(f) (Blank).
(g) Financial interest restrictions. As used in this Act,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company means:
(A) When, with respect to a sole proprietorship, an
individual or his or her spouse owns, operates, manages, or
conducts, directly or indirectly, the organization,
association, or business, or any part thereof; or
(B) When, with respect to a partnership, the individual
or his or her spouse shares in any of the profits, or
potential profits, of the partnership activities; or
(C) When, with respect to a corporation, an individual
or his or her spouse is an officer or director, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of any class of stock of the
corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or
otherwise controls 10% or more of the assets of the
organization; or
(E) When an individual or his or her spouse furnishes
5% or more of the capital, whether in cash, goods, or
services, for the operation of any business, association,
or organization during any calendar year; or
(F) When, with respect to a limited liability company,
an individual or his or her spouse is a member, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of the membership interest of
the limited liability company.
For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g) and
whose activities with respect to an organization, association,
or business are so closely aligned or coordinated as to
constitute the activities of a single entity.
(h) Location restriction. A licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment that is (i) located within 1,000 feet of
a facility operated by an organization licensee licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Riverboat Gambling Act or
(ii) located within 100 feet of a school or a place of worship
under the Religious Corporation Act, is ineligible to operate a
video gaming terminal. The location restrictions in this
subsection (h) do not apply if (A) a facility operated by an
organization licensee, a school, or a place of worship moves to
or is established within the restricted area after a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment becomes
licensed under this Act or (B) a school or place of worship
moves to or is established within the restricted area after a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment obtains its
original liquor license. For the purpose of this subsection,
"school" means an elementary or secondary public school, or an
elementary or secondary private school registered with or
recognized by the State Board of Education.
Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment not be located within 1,000 feet from a
facility operated by an organization licensee licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Riverboat Gambling Act.
The Board shall not grant such waiver if there is any common
ownership or control, shared business activity, or contractual
arrangement of any type between the establishment and the
organization licensee or owners licensee of a riverboat. The
Board shall adopt rules to implement the provisions of this
paragraph.
(h-5) Restrictions on licenses in malls. The Board shall
not grant an application to become a licensed video gaming
location if the Board determines that granting the application
would more likely than not cause a terminal operator,
individually or in combination with other terminal operators,
licensed video gaming location, or other person or entity, to
operate the video gaming terminals in 2 or more licensed video
gaming locations as a single video gaming operation.
→ This provision basically codifies a court ruling preventing gambling operators from providing machines to multiple establishments in a mall.
(1) In making determinations under this subsection
(h-5), factors to be considered by the Board shall include,
but not be limited to, the following:
(A) the physical aspects of the location;
(B) the ownership, control, or management of the
location;
(C) any arrangements, understandings, or
agreements, written or otherwise, among or involving
any persons or entities that involve the conducting of
any video gaming business or the sharing of costs or
revenues; and
(D) the manner in which any terminal operator or
other related entity markets, advertises, or otherwise
describes any location or locations to any other person
or entity or to the public.
(2) The Board shall presume, subject to rebuttal, that
the granting of an application to become a licensed video
gaming location within a mall will cause a terminal
operator, individually or in combination with other
persons or entities, to operate the video gaming terminals
in 2 or more licensed video gaming locations as a single
video gaming operation if the Board determines that
granting the license would create a local concentration of
licensed video gaming locations.
For the purposes of this subsection (h-5):
"Mall" means a building, or adjoining or connected
buildings, containing 4 or more separate locations.
"Video gaming operation" means the conducting of video
gaming and all related activities.
"Location" means a space within a mall containing a
separate business, a place for a separate business, or a place
subject to a separate leasing arrangement by the mall owner.
"Licensed video gaming location" means a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop.
"Local concentration of licensed video gaming locations"
means that the combined number of licensed video gaming
locations within a mall exceed half of the separate locations
within the mall.
(i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by a
terminal operator in a location, the Board shall consider the
impact of any economic concentration of such operation of video
gaming terminals. The Board shall not allow a terminal operator
to operate video gaming terminals if the Board determines such
operation will result in undue economic concentration. For
purposes of this Section, "undue economic concentration" means
that a terminal operator would have such actual or potential
influence over video gaming terminals in Illinois as to:
(1) substantially impede or suppress competition among
terminal operators;
(2) adversely impact the economic stability of the
video gaming industry in Illinois; or
(3) negatively impact the purposes of the Video Gaming
Act.
The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming
terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation of
operation of any such video gaming terminals the Board
determines will cause undue economic concentration.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
(230 ILCS 40/30)
Sec. 30. Multiple types of licenses prohibited. A video
gaming terminal manufacturer may not be licensed as a video
gaming terminal operator or own, manage, or control a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
be licensed to sell only to persons having a valid
distributor's license or, if the manufacturer also holds a
valid distributor's license, to sell, distribute, lease, or
market to persons having a valid terminal operator's license. A
video gaming terminal distributor may not be licensed as a
video gaming terminal operator or own, manage, or control a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
only contract with a licensed terminal operator. A video gaming
terminal operator may not be licensed as a video gaming
terminal manufacturer or distributor or own, manage, or control
a licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
be licensed only to contract with licensed distributors and
licensed establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments. An owner
or manager of a licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment may not be licensed as a video gaming terminal
manufacturer, distributor, or operator, and shall only
contract with a licensed operator to place and service this
equipment.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
(230 ILCS 40/35)
Sec. 35. Display of license; confiscation; violation as
felony.
(a) Each video gaming terminal shall be licensed by the
Board before placement or operation on the premises of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment. The license
of each video gaming terminal shall be maintained at the
location where the video gaming terminal is operated. Failure
to do so is a petty offense with a fine not to exceed $100. Any
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment used for the
conduct of gambling games in violation of this Act shall be
considered a gambling place in violation of Section 28-3 of the
Criminal Code of 2012. Every gambling device found in a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment operating
gambling games in violation of this Act shall be subject to
seizure, confiscation, and destruction as provided in Section
28-5 of the Criminal Code of 2012. Any license issued under the
Liquor Control Act of 1934 to any owner or operator of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment that
operates or permits the operation of a video gaming terminal
within its establishment in violation of this Act shall be
immediately revoked. No person may own, operate, have in his or
her possession or custody or under his or her control, or
permit to be kept in any place under his or her possession or
control, any device that awards credits and contains a circuit,
meter, or switch capable of removing and recording the removal
of credits when the award of credits is dependent upon chance.
Nothing in this Section shall be deemed to prohibit the use
of a game device only if the game device is used in an activity
that is not gambling under subsection (b) of Section 28-1 of
the Criminal Code of 2012.
A violation of this Section is a Class 4 felony. All
devices that are owned, operated, or possessed in violation of
this Section are hereby declared to be public nuisances and
shall be subject to seizure, confiscation, and destruction as
provided in Section 28-5 of the Criminal Code of 2012.
The provisions of this Section do not apply to devices or
electronic video game terminals licensed pursuant to this Act.
A video gaming terminal operated for amusement only and bearing
a valid amusement tax sticker shall not be subject to this
Section until 30 days after the Board establishes that the
central communications system is functional.
(b) (1) The odds of winning each video game shall be posted
on or near each video gaming terminal. The manner in which the
odds are calculated and how they are posted shall be determined
by the Board by rule.
(2) No video gaming terminal licensed under this Act may be
played except during the legal hours of operation allowed for
the consumption of alcoholic beverages at the licensed
establishment, licensed fraternal establishment, or licensed
veterans establishment. A licensed establishment, licensed
fraternal establishment, or licensed veterans establishment
that violates this subsection is subject to termination of its
license by the Board.
(Source: P.A. 97-1150, eff. 1-25-13; 98-111, eff. 1-1-14.)
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, and licensed veterans establishment shall be
licensed by the Board. The Board may issue or deny a license
under this Act to any person pursuant to the same criteria set
forth in Section 9 of the Illinois Riverboat Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under the
significant influence or control of such a person. For the
purposes of this Act, "facilitated, enabled, or participated in
the use of coin-operated amusement devices for gambling
purposes" means that the person has been convicted of any
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012. If there is pending legal action against
a person for any such violation, then the Board shall delay the
licensure of that person until the legal action is resolved.
(b) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall submit to a background investigation
conducted by the Board with the assistance of the State Police
or other law enforcement. To the extent that the corporate
structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a publicly
or non-publicly held corporation, (v) each stockholder of a
non-publicly held corporation, (vi) each stockholder of 5% or
more of a publicly held corporation, or (vii) each stockholder
of 5% or more in a parent or subsidiary corporation.
(c) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall disclose the identity of every person,
association, trust, corporation, or limited liability company
having a greater than 1% direct or indirect pecuniary interest
in the video gaming terminal operation for which the license is
sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of the beneficiaries; if
a corporation, the names and addresses of all stockholders and
directors; if a limited liability company, the names and
addresses of all members; or if a partnership, the names and
addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment if that
person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public interests
of the State or to the security and integrity of video
gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or
(3) present questionable business practices and
financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the satisfaction
of the Board. The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of video gaming in this State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler........................$100
(7) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment...............................$100
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,000
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment..........................$100
(7) Video gaming terminal...................$100
(8) Terminal Handler............................$100
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall equally split the fees specified
in item (7) of subsection (g).
(Source: P.A. 100-1152, eff. 12-14-18.)
(230 ILCS 40/55)
Sec. 55. Precondition for licensed location. In all cases
of application for a licensed location, to operate a video
gaming terminal, each licensed establishment, licensed
fraternal establishment, or licensed veterans establishment
shall possess a valid liquor license issued by the Illinois
Liquor Control Commission in effect at the time of application
and at all times thereafter during which a video gaming
terminal is made available to the public for play at that
location. Video gaming terminals in a licensed location shall
be operated only during the same hours of operation generally
permitted to holders of a license under the Liquor Control Act
of 1934 within the unit of local government in which they are
located. A licensed truck stop establishment or licensed large
truck stop establishment that does not hold a liquor license
may operate video gaming terminals on a continuous basis. A
licensed fraternal establishment or licensed veterans
establishment that does not hold a liquor license may operate
video gaming terminals if (i) the establishment is located in a
county with a population between 6,500 and 7,000, based on the
2000 U.S. Census, (ii) the county prohibits by ordinance the
sale of alcohol, and (iii) the establishment is in a portion of
the county where the sale of alcohol is prohibited. A licensed
fraternal establishment or licensed veterans establishment
that does not hold a liquor license may operate video gaming
terminals if (i) the establishment is located in a municipality
within a county with a population between 8,500 and 9,000 based
on the 2000 U.S. Census and (ii) the municipality or county
prohibits or limits the sale of alcohol by ordinance in a way
that prohibits the establishment from selling alcohol.
(Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10;
97-594, eff. 8-26-11.)
(230 ILCS 40/58)
Sec. 58. Location of terminals. Video gaming terminals
must be located in an area restricted to persons over 21 years
of age the entrance to which is within the view of at least one
employee, who is over 21 years of age, of the establishment in
which they are located. The placement of video gaming terminals
in licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments shall be subject to the rules promulgated by the
Board pursuant to the Illinois Administrative Procedure Act.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
(230 ILCS 40/60)
Sec. 60. Imposition and distribution of tax.
→This provision drove a lot of controversy and lobbying by the video gambling industry. It increases the tax rate on revenue from video gambling machines from 30% to 33% starting July 1, 2019. The tax will go up to 34% a year later. That will place Illinois’ tax rate for video gambling machines above Louisiana, Montana and Nevada. That’s about the middle of the pack but significantly below Oregon, Pennsylvania, South Dakota and West Virginia, all of which have tax rates at or above 50%.
Right now, 25% of the tax goes to the state to fund borrowing for building projects and 5% goes to local governments. The new taxes will also go toward state borrowing costs. Local governments get no additional revenue from this legislation.
(a) A tax of 30% is imposed on net terminal income and
shall be collected by the Board.
five-sixths shall be deposited into the Capital Projects Fund
and one-sixth shall be deposited into the Local Government
Video Gaming Distributive Fund.
(b) Beginning on July 1, 2019, an additional tax of 3% is
imposed on net terminal income and shall be collected by the
Board.
Beginning on July 1, 2020, an additional tax of 1% is
imposed on net terminal income and shall be collected by the
Board.
The tax collected under this subsection (b) shall be
deposited into the Capital Projects Fund.
(c) Revenues generated from the play of video gaming
terminals shall be deposited by the terminal operator, who is
responsible for tax payments, in a specially created, separate
bank account maintained by the video gaming terminal operator
to allow for electronic fund transfers of moneys for tax
payment.
(d) Each licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall maintain an adequate video gaming fund,
with the amount to be determined by the Board.
(e) The State's percentage of net terminal income shall be
reported and remitted to the Board within 15 days after the
15th day of each month and within 15 days after the end of each
month by the video terminal operator. A video terminal operator
who falsely reports or fails to report the amount due required
by this Section is guilty of a Class 4 felony and is subject to
termination of his or her license by the Board. Each video
terminal operator shall keep a record of net terminal income in
such form as the Board may require. All payments not remitted
when due shall be paid together with a penalty assessment on
the unpaid balance at a rate of 1.5% per month.
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
(230 ILCS 40/79)
Sec. 79. Investigators. Investigators appointed by the
Board pursuant to the powers conferred upon the Board by
paragraph (20.6) of subsection (c) of Section 5 of the Illinois
authority to conduct investigations, searches, seizures,
arrests, and other duties imposed under this Act and the
Illinois Riverboat Gambling Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these powers
shall be (1) limited to offenses or violations occurring or
committed in connection with conduct subject to this Act,
including, but not limited to, the manufacture, distribution,
supply, operation, placement, service, maintenance, or play of
video gaming terminals and the distribution of profits and
collection of revenues resulting from such play, and (2)
exercised, to the fullest extent practicable, in cooperation
with the local police department of the applicable municipality
or, if these powers are exercised outside the boundaries of an
incorporated municipality or within a municipality that does
not have its own police department, in cooperation with the
police department whose jurisdiction encompasses the
applicable locality.
(Source: P.A. 97-809, eff. 7-13-12.)
(230 ILCS 40/80)
Sec. 80. Applicability of Illinois Riverboat Gambling Act.
→ This will bring a smile — or smirk — to the faces of people inside the industry. For years, applicants denied video gambling licenses by the gaming board were rarely granted a hearing before an administrative judge to challenge the decision.
But now people who have been denied a video gambling license will get the broader rights to a hearing given to applicants under the Illinois Gambling Act, formerly the Riverboat Gambling Act.
The provisions of the Illinois Riverboat Gambling Act, and all
rules promulgated thereunder, shall apply to the Video Gaming
Act, except where there is a conflict between the 2 Acts. In
the event of a conflict between the 2 Acts, the provisions of
the Illinois Gambling Act shall prevail. All current supplier
licensees under the Illinois Riverboat Gambling Act shall be
entitled to licensure under the Video Gaming Act as
manufacturers, distributors, or suppliers without additional
Board investigation or approval, except by vote of the Board;
however, they are required to pay application and annual fees
under this Act. All provisions of the Uniform Penalty and
Interest Act shall apply, as far as practicable, to the subject
matter of this Act to the same extent as if such provisions
were included herein.
(Source: P.A. 100-1152, eff. 12-14-18.)
Section 35-65. The Liquor Control Act of 1934 is amended by
changing Sections 5-1 and 6-30 as follows:
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Brewer, Class 11. Class 2 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit,
(t) Brewer warehouse permit.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act.
Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634), is a holder of a
second-class wine-maker's license and annually produces more
than 25,000 gallons of its own wine and who distributes its
wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with Public Act 95-634.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license shall allow the
manufacture of up to 100,000 gallons of spirits by distillation
per year and the storage of such spirits. If a craft distiller
licensee, including a craft distiller licensee who holds more
than one craft distiller license, is not affiliated with any
other manufacturer of spirits, then the craft distiller
licensee may sell such spirits to distributors in this State
and up to 2,500 gallons of such spirits to non-licensees to the
extent permitted by any exemption approved by the Commission
pursuant to Section 6-4 of this Act. A craft distiller license
holder may store such spirits at a non-contiguous licensed
location, but at no time shall a craft distiller license holder
directly or indirectly produce in the aggregate more than
100,000 gallons of spirits per year.
A craft distiller licensee may hold more than one craft
distiller's license. However, a craft distiller that holds more
than one craft distiller license shall not manufacture, in the
aggregate, more than 100,000 gallons of spirits by distillation
per year and shall not sell, in the aggregate, more than 2,500
gallons of such spirits to non-licensees in accordance with an
exemption approved by the State Commission pursuant to Section
6-4 of this Act.
Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) was licensed as
a distiller and manufactured no more spirits than permitted by
this Section shall not be required to pay the initial licensing
fee.
Class 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act. If the State
Commission provides prior approval, a class 1 brewer may
annually transfer up to 930,000 gallons of beer manufactured by
that class 1 brewer to the premises of a licensed class 1
brewer wholly owned and operated by the same licensee.
Class 11. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
A class 2 brewer may transfer beer to a brew pub wholly
owned and operated by the class 2 brewer subject to the
following limitations and restrictions: (i) the transfer shall
not annually exceed more than 31,000 gallons; (ii) the annual
amount transferred shall reduce the brew pub's annual permitted
production limit; (iii) all beer transferred shall be subject
to Article VIII of this Act; (iv) a written record shall be
maintained by the brewer and brew pub specifying the amount,
date of delivery, and receipt of the product by the brew pub;
and (v) the brew pub shall be located no farther than 80 miles
from the class 2 brewer's licensed location.
A class 2 brewer shall, prior to transferring beer to a
brew pub wholly owned by the class 2 brewer, furnish a written
notice to the State Commission of intent to transfer beer
setting forth the name and address of the brew pub and shall
annually submit to the State Commission a verified report
identifying the total gallons of beer transferred to the brew
pub wholly owned by the class 2 brewer.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law, and the sale of beer, cider,
or both beer and cider to brewers, class 1 brewers, and class 2
brewers that, pursuant to subsection (e) of Section 6-4 of this
Act, sell beer, cider, or both beer and cider to non-licensees
at their breweries. No person licensed as a distributor shall
be granted a non-resident dealer's license.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only. No person licensed as an
importing distributor shall be granted a non-resident dealer's
license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 shall
deny, limit, remove, or restrict the ability of a holder of a
retailer's license to transfer, deliver, or ship alcoholic
liquor to the purchaser for use or consumption subject to any
applicable local law or ordinance. Any retail license issued to
a manufacturer shall only permit the manufacturer to sell beer
at retail on the premises actually occupied by the
manufacturer. For the purpose of further describing the type of
business conducted at a retail licensed premises, a retailer's
licensee may be designated by the State Commission as (i) an on
premise consumption retailer, (ii) an off premise sale
retailer, or (iii) a combined on premise consumption and off
premise sale retailer.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
Nothing in this Act prohibits an Illinois licensed
distributor from offering credit or a refund for unused,
salable alcoholic liquors to a holder of a special event
retailer's license or from the special event retailer's
licensee from accepting the credit or refund of alcoholic
liquors at the conclusion of the event specified in the
license.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Illinois Riverboat Gambling Act,
which boat or riverboat maintains a public dining room or
restaurant thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale by duly filing such
registration statement, thereby authorizing the non-resident
dealer to proceed to sell such brands at wholesale, and (iii)
the non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than 3,720,000 gallons of beer per
year and held a brew pub license on or before July 1, 2015 may
(i) continue to qualify for and hold that brew pub license for
the licensed premises and (ii) manufacture more than 3,720,000
gallons of beer per year and continue to qualify for and hold
that brew pub license if that brewer, class 2 brewer, or
non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12-month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year and upon
request by the State Commission or the Department of Revenue,
file with the State Commission a statement detailing each
shipment made to an Illinois resident. The statement shall
include the name and address of the third-party provider filing
the statement, the time period covered by the statement, and
the following information:
(1) the name, address, and license number of the winery
shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests a
statement under this paragraph, the third-party provider must
provide that statement no later than 30 days after the request
is made. Any books, records, supporting papers, and documents
containing information and data relating to a statement under
this paragraph shall be kept and preserved for a period of 3
years, unless their destruction sooner is authorized, in
writing, by the Director of Revenue, and shall be open and
available to inspection by the Director of Revenue or the State
Commission or any duly authorized officer, agent, or employee
of the State Commission or the Department of Revenue, at all
times during business hours of the day. Any person who violates
any provision of this paragraph or any rule of the State
Commission for the administration and enforcement of the
provisions of this paragraph is guilty of a Class C
misdemeanor. In case of a continuing violation, each day's
continuance thereof shall be a separate and distinct offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow an
Illinois licensed craft distiller to transfer a portion of its
alcoholic liquor inventory from its craft distiller licensed
premises to the premises specified in the license hereby
created and to conduct a sampling, only in the premises
specified in the license hereby created, of the transferred
alcoholic liquor in accordance with subsection (c) of Section
6-31 of this Act. The transferred alcoholic liquor may not be
sold or resold in any form. An applicant for the craft
distiller tasting permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
A brewer warehouse permit may be issued to the holder of a
class 1 brewer license or a class 2 brewer license. If the
holder of the permit is a class 1 brewer licensee, the brewer
warehouse permit shall allow the holder to store or warehouse
up to 930,000 gallons of tax-determined beer manufactured by
the holder of the permit at the premises specified on the
permit. If the holder of the permit is a class 2 brewer
licensee, the brewer warehouse permit shall allow the holder to
store or warehouse up to 3,720,000 gallons of tax-determined
beer manufactured by the holder of the permit at the premises
specified on the permit. Sales to non-licensees are prohibited
at the premises specified in the brewer warehouse permit.
(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
revised 10-2-18.)
(235 ILCS 5/6-30) (from Ch. 43, par. 144f)
Sec. 6-30. Notwithstanding any other provision of this Act,
the Illinois Gaming Board shall have exclusive authority to
establish the hours for sale and consumption of alcoholic
liquor on board a riverboat during riverboat gambling
excursions and in a casino conducted in accordance with the
Illinois Riverboat Gambling Act.
(Source: P.A. 87-826.)
Section 35-70. The Illinois Public Aid Code is amended by
changing Section 10-17.15 as follows:
(305 ILCS 5/10-17.15)
Sec. 10-17.15. Certification of information to State
gaming licensees.
(a) For purposes of this Section, "State gaming licensee"
means, as applicable, an organization licensee or advance
deposit wagering licensee licensed under the Illinois Horse
Racing Act of 1975, an owners licensee licensed under the
Illinois Riverboat Gambling Act, or a licensee that operates,
under any law of this State, one or more facilities or gaming
locations at which lawful gambling is authorized and licensed
as provided in the Illinois Riverboat Gambling Act.
(b) The Department may provide, by rule, for certification
to any State gaming licensee of past due child support owed by
a responsible relative under a support order entered by a court
or administrative body of this or any other State on behalf of
a resident or non-resident receiving child support services
under this Article in accordance with the requirements of Title
IV-D, Part D, of the Social Security Act. The State gaming
licensee shall have the ability to withhold from winnings
required to be reported to the Internal Revenue Service on Form
W-2G, up to the full amount of winnings necessary to pay the
winner's past due child support. The rule shall provide for
notice to and an opportunity to be heard by each responsible
relative affected and any final administrative decision
rendered by the Department shall be reviewed only under and in
accordance with the Administrative Review Law.
(c) For withholding of winnings, the State gaming licensee
shall be entitled to an administrative fee not to exceed the
lesser of 4% of the total amount of cash winnings paid to the
gambling winner or $150.
(d) In no event may the total amount withheld from the cash
payout, including the administrative fee, exceed the total cash
winnings claimed by the obligor. If the cash payout claimed is
greater than the amount sufficient to satisfy the obligor's
delinquent child support payments, the State gaming licensee
shall pay the obligor the remaining balance of the payout, less
the administrative fee authorized by subsection (c) of this
Section, at the time it is claimed.
(e) A State gaming licensee who in good faith complies with
the requirements of this Section shall not be liable to the
gaming winner or any other individual or entity.
(Source: P.A. 98-318, eff. 8-12-13.)
Section 35-75. The Firearm Concealed Carry Act is amended
by changing Section 65 as follows:
(430 ILCS 66/65)
Sec. 65. Prohibited areas.
(a) A licensee under this Act shall not knowingly carry a
firearm on or into:
(1) Any building, real property, and parking area under
the control of a public or private elementary or secondary
school.
(2) Any building, real property, and parking area under
the control of a pre-school or child care facility,
including any room or portion of a building under the
control of a pre-school or child care facility. Nothing in
this paragraph shall prevent the operator of a child care
facility in a family home from owning or possessing a
firearm in the home or license under this Act, if no child
under child care at the home is present in the home or the
firearm in the home is stored in a locked container when a
child under child care at the home is present in the home.
(3) Any building, parking area, or portion of a
building under the control of an officer of the executive
or legislative branch of government, provided that nothing
in this paragraph shall prohibit a licensee from carrying a
concealed firearm onto the real property, bikeway, or trail
in a park regulated by the Department of Natural Resources
or any other designated public hunting area or building
where firearm possession is permitted as established by the
Department of Natural Resources under Section 1.8 of the
Wildlife Code.
(4) Any building designated for matters before a
circuit court, appellate court, or the Supreme Court, or
any building or portion of a building under the control of
the Supreme Court.
(5) Any building or portion of a building under the
control of a unit of local government.
(6) Any building, real property, and parking area under
the control of an adult or juvenile detention or
correctional institution, prison, or jail.
(7) Any building, real property, and parking area under
the control of a public or private hospital or hospital
affiliate, mental health facility, or nursing home.
(8) Any bus, train, or form of transportation paid for
in whole or in part with public funds, and any building,
real property, and parking area under the control of a
public transportation facility paid for in whole or in part
with public funds.
(9) Any building, real property, and parking area under
the control of an establishment that serves alcohol on its
premises, if more than 50% of the establishment's gross
receipts within the prior 3 months is from the sale of
alcohol. The owner of an establishment who knowingly fails
to prohibit concealed firearms on its premises as provided
in this paragraph or who knowingly makes a false statement
or record to avoid the prohibition on concealed firearms
under this paragraph is subject to the penalty under
subsection (c-5) of Section 10-1 of the Liquor Control Act
of 1934.
(10) Any public gathering or special event conducted on
property open to the public that requires the issuance of a
permit from the unit of local government, provided this
prohibition shall not apply to a licensee who must walk
through a public gathering in order to access his or her
residence, place of business, or vehicle.
(11) Any building or real property that has been issued
a Special Event Retailer's license as defined in Section
1-3.17.1 of the Liquor Control Act during the time
designated for the sale of alcohol by the Special Event
Retailer's license, or a Special use permit license as
defined in subsection (q) of Section 5-1 of the Liquor
Control Act during the time designated for the sale of
alcohol by the Special use permit license.
(12) Any public playground.
(13) Any public park, athletic area, or athletic
facility under the control of a municipality or park
district, provided nothing in this Section shall prohibit a
licensee from carrying a concealed firearm while on a trail
or bikeway if only a portion of the trail or bikeway
includes a public park.
(14) Any real property under the control of the Cook
County Forest Preserve District.
(15) Any building, classroom, laboratory, medical
clinic, hospital, artistic venue, athletic venue,
entertainment venue, officially recognized
university-related organization property, whether owned or
leased, and any real property, including parking areas,
sidewalks, and common areas under the control of a public
or private community college, college, or university.
(16) Any building, real property, or parking area under
the control of a gaming facility licensed under the
Illinois Riverboat Gambling Act or the Illinois Horse
Racing Act of 1975, including an inter-track wagering
location licensee.
(17) Any stadium, arena, or the real property or
parking area under the control of a stadium, arena, or any
collegiate or professional sporting event.
(18) Any building, real property, or parking area under
the control of a public library.
(19) Any building, real property, or parking area under
the control of an airport.
(20) Any building, real property, or parking area under
the control of an amusement park.
(21) Any building, real property, or parking area under
the control of a zoo or museum.
(22) Any street, driveway, parking area, property,
building, or facility, owned, leased, controlled, or used
by a nuclear energy, storage, weapons, or development site
or facility regulated by the federal Nuclear Regulatory
Commission. The licensee shall not under any circumstance
store a firearm or ammunition in his or her vehicle or in a
compartment or container within a vehicle located anywhere
in or on the street, driveway, parking area, property,
building, or facility described in this paragraph.
(23) Any area where firearms are prohibited under
federal law.
(a-5) Nothing in this Act shall prohibit a public or
private community college, college, or university from:
(1) prohibiting persons from carrying a firearm within
a vehicle owned, leased, or controlled by the college or
university;
(2) developing resolutions, regulations, or policies
regarding student, employee, or visitor misconduct and
discipline, including suspension and expulsion;
(3) developing resolutions, regulations, or policies
regarding the storage or maintenance of firearms, which
must include designated areas where persons can park
vehicles that carry firearms; and
(4) permitting the carrying or use of firearms for the
purpose of instruction and curriculum of officially
recognized programs, including but not limited to military
science and law enforcement training programs, or in any
designated area used for hunting purposes or target
shooting.
(a-10) The owner of private real property of any type may
prohibit the carrying of concealed firearms on the property
under his or her control. The owner must post a sign in
accordance with subsection (d) of this Section indicating that
firearms are prohibited on the property, unless the property is
a private residence.
(b) Notwithstanding subsections (a), (a-5), and (a-10) of
this Section except under paragraph (22) or (23) of subsection
(a), any licensee prohibited from carrying a concealed firearm
into the parking area of a prohibited location specified in
subsection (a), (a-5), or (a-10) of this Section shall be
permitted to carry a concealed firearm on or about his or her
person within a vehicle into the parking area and may store a
firearm or ammunition concealed in a case within a locked
vehicle or locked container out of plain view within the
vehicle in the parking area. A licensee may carry a concealed
firearm in the immediate area surrounding his or her vehicle
within a prohibited parking lot area only for the limited
purpose of storing or retrieving a firearm within the vehicle's
trunk. For purposes of this subsection, "case" includes a glove
compartment or console that completely encloses the concealed
firearm or ammunition, the trunk of the vehicle, or a firearm
carrying box, shipping box, or other container.
(c) A licensee shall not be in violation of this Section
while he or she is traveling along a public right of way that
touches or crosses any of the premises under subsection (a),
(a-5), or (a-10) of this Section if the concealed firearm is
carried on his or her person in accordance with the provisions
of this Act or is being transported in a vehicle by the
licensee in accordance with all other applicable provisions of
law.
(d) Signs stating that the carrying of firearms is
prohibited shall be clearly and conspicuously posted at the
entrance of a building, premises, or real property specified in
this Section as a prohibited area, unless the building or
premises is a private residence. Signs shall be of a uniform
design as established by the Department and shall be 4 inches
by 6 inches in size. The Department shall adopt rules for
standardized signs to be used under this subsection.
(Source: P.A. 98-63, eff. 7-9-13; 99-29, eff. 7-10-15.)
Section 35-80. The Criminal Code of 2012 is amended by
changing Sections 28-1, 28-1.1, 28-2, 28-3, 28-5, and 28-7 as
follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section
8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by
and conducted in accordance with the laws of Illinois or
any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6) and (6.1) of
subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games conducted on riverboats when
authorized by the Illinois Riverboat Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
1463).
(c) Sentence.
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
Sec. 28-1.1. Syndicated gambling.
(a) Declaration of Purpose. Recognizing the close
relationship between professional gambling and other organized
crime, it is declared to be the policy of the legislature to
restrain persons from engaging in the business of gambling for
profit in this State. This Section shall be liberally construed
and administered with a view to carrying out this policy.
(b) A person commits syndicated gambling when he or she
operates a "policy game" or engages in the business of
bookmaking.
(c) A person "operates a policy game" when he or she
knowingly uses any premises or property for the purpose of
receiving or knowingly does receive from what is commonly
called "policy":
(1) money from a person other than the bettor or player
whose bets or plays are represented by the money; or
(2) written "policy game" records, made or used over
any period of time, from a person other than the bettor or
player whose bets or plays are represented by the written
record.
(d) A person engages in bookmaking when he or she knowingly
receives or accepts more than five bets or wagers upon the
result of any trials or contests of skill, speed or power of
endurance or upon any lot, chance, casualty, unknown or
contingent event whatsoever, which bets or wagers shall be of
such size that the total of the amounts of money paid or
promised to be paid to the bookmaker on account thereof shall
exceed $2,000. Bookmaking is the receiving or accepting of bets
or wagers regardless of the form or manner in which the
bookmaker records them.
(e) Participants in any of the following activities shall
not be convicted of syndicated gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance;
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in the contest;
(3) Pari-mutuel betting as authorized by law of this
State;
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when the
transportation is not prohibited by any applicable Federal
law;
(5) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act;
(6) Gambling games conducted on riverboats, in
casinos, or at organization gaming facilities when
authorized by the Illinois Riverboat Gambling Act;
(7) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act; and
(8) Savings promotion raffles authorized under Section
5g of the Illinois Banking Act, Section 7008 of the Savings
Bank Act, Section 42.7 of the Illinois Credit Union Act,
Section 5136B of the National Bank Act (12 U.S.C. 25a), or
Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
(f) Sentence. Syndicated gambling is a Class 3 felony.
(Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-2) (from Ch. 38, par. 28-2)
Sec. 28-2. Definitions.
(a) A "gambling device" is any clock, tape machine, slot
machine or other machines or device for the reception of money
or other thing of value on chance or skill or upon the action
of which money or other thing of value is staked, hazarded,
bet, won or lost; or any mechanism, furniture, fixture,
equipment or other device designed primarily for use in a
gambling place. A "gambling device" does not include:
(1) A coin-in-the-slot operated mechanical device
played for amusement which rewards the player with the
right to replay such mechanical device, which device is so
constructed or devised as to make such result of the
operation thereof depend in part upon the skill of the
player and which returns to the player thereof no money,
property or right to receive money or property.
(2) Vending machines by which full and adequate return
is made for the money invested and in which there is no
element of chance or hazard.
(3) A crane game. For the purposes of this paragraph
(3), a "crane game" is an amusement device involving skill,
if it rewards the player exclusively with merchandise
contained within the amusement device proper and limited to
toys, novelties and prizes other than currency, each having
a wholesale value which is not more than $25.
(4) A redemption machine. For the purposes of this
paragraph (4), a "redemption machine" is a single-player or
multi-player amusement device involving a game, the object
of which is throwing, rolling, bowling, shooting, placing,
or propelling a ball or other object that is either
physical or computer generated on a display or with lights
into, upon, or against a hole or other target that is
either physical or computer generated on a display or with
lights, or stopping, by physical, mechanical, or
electronic means, a moving object that is either physical
or computer generated on a display or with lights into,
upon, or against a hole or other target that is either
physical or computer generated on a display or with lights,
provided that all of the following conditions are met:
(A) The outcome of the game is predominantly
determined by the skill of the player.
(B) The award of the prize is based solely upon the
player's achieving the object of the game or otherwise
upon the player's score.
(C) Only merchandise prizes are awarded.
(D) The wholesale value of prizes awarded in lieu
of tickets or tokens for single play of the device does
not exceed $25.
(E) The redemption value of tickets, tokens, and
other representations of value, which may be
accumulated by players to redeem prizes of greater
value, for a single play of the device does not exceed
$25.
(5) Video gaming terminals at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment licensed
in accordance with the Video Gaming Act.
(a-5) "Internet" means an interactive computer service or
system or an information service, system, or access software
provider that provides or enables computer access by multiple
users to a computer server, and includes, but is not limited
to, an information service, system, or access software provider
that provides access to a network system commonly known as the
Internet, or any comparable system or service and also
includes, but is not limited to, a World Wide Web page,
newsgroup, message board, mailing list, or chat area on any
interactive computer service or system or other online service.
(a-6) "Access" and "computer" have the meanings ascribed to
them in Section 16D-2 of this Code.
(b) A "lottery" is any scheme or procedure whereby one or
more prizes are distributed by chance among persons who have
paid or promised consideration for a chance to win such prizes,
whether such scheme or procedure is called a lottery, raffle,
gift, sale or some other name, excluding savings promotion
raffles authorized under Section 5g of the Illinois Banking
Act, Section 7008 of the Savings Bank Act, Section 42.7 of the
Illinois Credit Union Act, Section 5136B of the National Bank
Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act
(12 U.S.C. 1463).
(c) A "policy game" is any scheme or procedure whereby a
person promises or guarantees by any instrument, bill,
certificate, writing, token or other device that any particular
number, character, ticket or certificate shall in the event of
any contingency in the nature of a lottery entitle the
purchaser or holder to receive money, property or evidence of
debt.
(Source: P.A. 98-31, eff. 6-24-13; 99-149, eff. 1-1-16.)
(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
Sec. 28-3. Keeping a Gambling Place. A "gambling place" is
any real estate, vehicle, boat or any other property whatsoever
used for the purposes of gambling other than gambling conducted
in the manner authorized by the Illinois Riverboat Gambling Act
or the Video Gaming Act. Any person who knowingly permits any
premises or property owned or occupied by him or under his
control to be used as a gambling place commits a Class A
misdemeanor. Each subsequent offense is a Class 4 felony. When
any premises is determined by the circuit court to be a
gambling place:
(a) Such premises is a public nuisance and may be proceeded
against as such, and
(b) All licenses, permits or certificates issued by the
State of Illinois or any subdivision or public agency thereof
authorizing the serving of food or liquor on such premises
shall be void; and no license, permit or certificate so
cancelled shall be reissued for such premises for a period of
60 days thereafter; nor shall any person convicted of keeping a
gambling place be reissued such license for one year from his
conviction and, after a second conviction of keeping a gambling
place, any such person shall not be reissued such license, and
(c) Such premises of any person who knowingly permits
thereon a violation of any Section of this Article shall be
held liable for, and may be sold to pay any unsatisfied
judgment that may be recovered and any unsatisfied fine that
may be levied under any Section of this Article.
(Source: P.A. 96-34, eff. 7-13-09.)
(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,
and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request
for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b) (7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.
(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat
gambling operation, casino gambling operation, or organization
gaming facility or used to train occupational licensees of a
riverboat gambling operation, casino gambling operation, or
organization gaming facility as authorized under the Illinois
Section.
(f) Any gambling equipment, devices, and supplies provided
by a licensed supplier in accordance with the Illinois
casino, or organization gaming facility for repair are exempt
from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:
(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment for repair.
(h) Property seized or forfeited under this Section is
subject to reporting under the Seizure and Forfeiture Reporting
Act.
(Source: P.A. 100-512, eff. 7-1-18.)
(720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
Sec. 28-7. Gambling contracts void.
(a) All promises, notes, bills, bonds, covenants,
contracts, agreements, judgments, mortgages, or other
securities or conveyances made, given, granted, drawn, or
entered into, or executed by any person whatsoever, where the
whole or any part of the consideration thereof is for any money
or thing of value, won or obtained in violation of any Section
of this Article are null and void.
(b) Any obligation void under this Section may be set aside
and vacated by any court of competent jurisdiction, upon a
complaint filed for that purpose, by the person so granting,
giving, entering into, or executing the same, or by his
executors or administrators, or by any creditor, heir, legatee,
purchaser or other person interested therein; or if a judgment,
the same may be set aside on motion of any person stated above,
on due notice thereof given.
(c) No assignment of any obligation void under this Section
may in any manner affect the defense of the person giving,
granting, drawing, entering into or executing such obligation,
or the remedies of any person interested therein.
(d) This Section shall not prevent a licensed owner of a
riverboat gambling operation, a casino gambling operation, or
an organization gaming licensee under the Illinois Gambling Act
and the Illinois Horse Racing Act of 1975 from instituting a
cause of action to collect any amount due and owing under an
extension of credit to a riverboat gambling patron as
authorized under Section 11.1 of the Illinois Riverboat
Gambling Act.
(Source: P.A. 87-826.)
Section 35-85. The Payday Loan Reform Act is amended by
changing Section 3-5 as follows:
(815 ILCS 122/3-5)
Sec. 3-5. Licensure.
(a) A license to make a payday loan shall state the
address, including city and state, at which the business is to
be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of
business of the licensee and shall not be transferable or
assignable.
(b) An application for a license shall be in writing and in
a form prescribed by the Secretary. The Secretary may not issue
a payday loan license unless and until the following findings
are made:
(1) that the financial responsibility, experience,
character, and general fitness of the applicant are such as
to command the confidence of the public and to warrant the
belief that the business will be operated lawfully and
fairly and within the provisions and purposes of this Act;
and
(2) that the applicant has submitted such other
information as the Secretary may deem necessary.
(c) A license shall be issued for no longer than one year,
and no renewal of a license may be provided if a licensee has
substantially violated this Act and has not cured the violation
to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as
attorney-in-fact upon whom all lawful process against the
licensee may be served with the same legal force and validity
as if served on the licensee. A copy of the written
appointment, duly certified, shall be filed in the office of
the Secretary, and a copy thereof certified by the Secretary
shall be sufficient evidence to subject a licensee to
jurisdiction in a court of law. This appointment shall remain
in effect while any liability remains outstanding in this State
against the licensee. When summons is served upon the Secretary
as attorney-in-fact for a licensee, the Secretary shall
immediately notify the licensee by registered mail, enclosing
the summons and specifying the hour and day of service.
(e) A licensee must pay an annual fee of $1,000. In
addition to the license fee, the reasonable expense of any
examination or hearing by the Secretary under any provisions of
this Act shall be borne by the licensee. If a licensee fails to
renew its license by December 1, its license shall
automatically expire; however, the Secretary, in his or her
discretion, may reinstate an expired license upon:
(1) payment of the annual fee within 30 days of the
date of expiration; and
(2) proof of good cause for failure to renew.
(f) Not more than one place of business shall be maintained
under the same license, but the Secretary may issue more than
one license to the same licensee upon compliance with all the
provisions of this Act governing issuance of a single license.
The location, except those locations already in existence as of
June 1, 2005, may not be within one mile of a horse race track
subject to the Illinois Horse Racing Act of 1975, within one
mile of a facility at which gambling is conducted under the
Illinois Riverboat Gambling Act, within one mile of the
location at which a riverboat subject to the Illinois Riverboat
Gambling Act docks, or within one mile of any State of Illinois
or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans
under this Act within any office, suite, room, or place of
business in which (1) any loans are offered or made under the
Consumer Installment Loan Act other than title secured loans as
defined in subsection (a) of Section 15 of the Consumer
Installment Loan Act and governed by Title 38, Section 110.330
of the Illinois Administrative Code or (2) any other business
is solicited or engaged in unless the other business is
licensed by the Department or, in the opinion of the Secretary,
the other business would not be contrary to the best interests
of consumers and is authorized by the Secretary in writing.
(g-5) Notwithstanding subsection (g) of this Section, a
licensee may obtain a license under the Consumer Installment
Loan Act (CILA) for the exclusive purpose and use of making
title secured loans, as defined in subsection (a) of Section 15
of CILA and governed by Title 38, Section 110.300 of the
Illinois Administrative Code. A licensee may continue to
service Consumer Installment Loan Act loans that were
outstanding as of the effective date of this amendatory Act of
the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that
shall be available to interested consumers and lenders and the
public. The Secretary shall maintain a toll-free number whereby
consumers may obtain information about licensees. The
Secretary shall also establish a complaint process under which
an aggrieved consumer may file a complaint against a licensee
or non-licensee who violates any provision of this Act.
(Source: P.A. 100-958, eff. 8-19-18.)
Section 35-90. The Travel Promotion Consumer Protection
Act is amended by changing Section 2 as follows:
(815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
Sec. 2. Definitions.
(a) "Travel promoter" means a person, including a tour
operator, who sells, provides, furnishes, contracts for,
arranges or advertises that he or she will arrange wholesale or
retail transportation by air, land, sea or navigable stream,
either separately or in conjunction with other services.
"Travel promoter" does not include (1) an air carrier; (2) a
sea carrier; (3) an officially appointed agent of an air
carrier who is a member in good standing of the Airline
Reporting Corporation; (4) a travel promoter who has in force
$1,000,000 or more of liability insurance coverage for
professional errors and omissions and a surety bond or
equivalent surety in the amount of $100,000 or more for the
benefit of consumers in the event of a bankruptcy on the part
of the travel promoter; or (5) a riverboat subject to
regulation under the Illinois Riverboat Gambling Act.
(b) "Advertise" means to make any representation in the
solicitation of passengers and includes communication with
other members of the same partnership, corporation, joint
venture, association, organization, group or other entity.
(c) "Passenger" means a person on whose behalf money or
other consideration has been given or is to be given to
another, including another member of the same partnership,
corporation, joint venture, association, organization, group
or other entity, for travel.
(d) "Ticket or voucher" means a writing or combination of
writings which is itself good and sufficient to obtain
transportation and other services for which the passenger has
contracted.
(Source: P.A. 91-357, eff. 7-29-99.)
(30 ILCS 105/5.490 rep.)
Section 35-95. The State Finance Act is amended by
repealing Section 5.490.
(230 ILCS 5/2.1 rep.)
(230 ILCS 5/54 rep.)
Section 35-100. The Illinois Horse Racing Act of 1975 is
amended by repealing Sections 2.1 and 54.
Section 99-95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that text
does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.
Section 99-97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99-99. Effective date. This Act takes effect upon
becoming law, except that the changes made to Section 2 of the
Use Tax Act take effect on January 1, 2020.