SB 7 — GAMING-VARIOUS

The holding or acquisition of an interest in such entities through an indirect means, such as through a mutual fund, shall not be prohibited, except that the Gaming Board may identify specific investments or funds that, in its judgment, are so influenced by gaming SB0007 Engrossed - 18 - LRB100 06307 AMC 16345 b holdings as to represent the potential for or the appearance of SB0007 - 18 - LRB100 06307 AMC 16345 b a conflict of interest.

SB0007 Engrossed - 19 - LRB100 06307 AMC 16345 b (m) No Casino Board member, employee of the Authority, or SB0007 - 19 - LRB100 06307 AMC 16345 b elected official or employee of the City shall use or attempt to use his or her official position to secure, or attempt to secure, any privilege, advantage, favor, or influence for himself or herself or others.

In addition, if the communication is written or SB0007 Engrossed - 20 - LRB100 06307 AMC 16345 b digital, then the entire communication shall be disclosed.

SB0007 - 20 - LRB100 06307 AMC 16345 b Public disclosure of the written summary provided to the Casino Board and the Gaming Board shall be subject to the exemptions provided under Section 7 of the Freedom of Information Act.

(a) InThe accordance with all applicable procurement laws and rules, the Casino Board shall developenter andinto administer a competitivecasino sealedmanagement biddingcontract processwith fora thecasino selectionoperator ofsubject to a potentialbackground casinoinvestigation operatorand licenseeapproval toby developthe orGaming operateBoard aand payment by SB0007 Engrossed - 21 - LRB100 06307 AMC 16345 b the proposed casino withinoperator of a fee of $50,000,000, which shall be deposited into the City.Gaming Facilities Fee Revenue Fund.

The Casino Board shall issue one or more requests for proposals.

The Casino Board may establish minimum financial and investment requirements to determine the eligibility of persons to respond to the Casino Board's requests for proposals, and may establish and consider such other criteria as it deems appropriate.

The Casino Board may impose a reasonable fee upon persons who respond to requests for proposals, in order to reimburse the Casino Board for its costs in preparing and issuing the requests and reviewing the proposals.

At least 30 days prior to the commencement of the competitive bidding process, the Gaming Board shall be given an opportunity to review the competitive bidding process established by the Casino Board.

During the competitive bidding process, the Casino Board shall keep the Gaming Board apprised of the process and the responses received in connection with the Casino Board's requests for proposals.

(b) Within 5 business days after the time limit for submitting bids and proposals has passed, the Casino Board shall make all bids and proposals public, provided, however, the Casino Board shall not be required to disclose any information which would be exempt from disclosure under Section 7 of the Freedom of Information Act.

Thereafter, the Casino Board shall evaluate the responses to its requests for proposals and the ability of all persons or entities responding to its requests for proposals to meet the requirements of this Act and any relevant provisions of the Illinois Gambling Act SB0007 - 22 - LRB100 06307 AMC 16345 b and to undertake and perform the obligations set forth in its requests for proposals.

(c) After reviewing proposals and selecting a successful bidder, the Casino Board shall enter into a casino management contract with the successful bidder authorizing the operation of a casino.

The casino operator shall be subject to a background investigation and approval by the Gaming Board.

Validity of the casino management contract is contingent upon the issuance of a casino operator licenselicense. to the successful bidder.

(d)(b) After (1) the Authority has been issued an owners license, (2) the Gaming Board has issued a casino operator license, and (3) the Gaming Board has approved the members of the Casino Board, the Authority may conduct gaming operations at a temporary facility, subject to the adopted rules of the SB0007 - 23 - LRB100 06307 AMC 16345 b Gaming Board, for no longer than 24 months after gaming operations begin.

The Gaming Board may grant SB0007 Engrossed - 22 - LRB100 06307 AMC 16345 b additional extensions following further public hearings.

(e) Fifty percent of any initial consideration received by the Authority that was paid as an inducement pursuant to a bid for a casino management contract or an executed casino management contract must be transmitted to the State and deposited into the Gaming Facilities Fee Revenue Fund.

The initial consideration shall not include (1) any amounts paid to the Authority as reimbursement for its costs in preparing or issuing the requests for proposals and reviewing the proposals or (2) any amounts loaned to the Authority or paid by an entity on behalf of the Authority for the design, construction, outfitting, or equipping of the casino, pre-opening expenses, bank roll or similar expenses required to open and operate the casino, or any license or per position fees imposed pursuant to the Illinois Gambling Act or any other financial obligation of the Authority.

The Authority shall be a public body as defined in the Freedom of Information Act and shall be subject to the provisions of the Freedom of SB0007 - 24 - LRB100 06307 AMC 16345 b Information Act.

SB0007 Engrossed - 23 - LRB100 06307 AMC 16345 b (1) it is legally authorized to issue bonds;

and (4) after payment of costs of issuance and necessary SB0007 - 25 - LRB100 06307 AMC 16345 b deposits to funds and accounts established with respect to debt service on the bonds, the net bond proceeds (exclusive of any proceeds to be used to refund outstanding bonds) will be used only for the purposes set forth in this Act.

The Authority shall reimburse in a timely SB0007 Engrossed - 24 - LRB100 06307 AMC 16345 b manner.

(b) The Authority shall enter into an intergovernmental agreement with the Auditor General authorizing the Auditor General to, every 2 years, (i) review the financial audit of the Authority performed by the Authority's certified public accountants, (ii) perform a management audit of the Authority, SB0007 - 26 - LRB100 06307 AMC 16345 b and (iii) perform a management audit of the casino operator licensee.

The Authority shall work with the Advisory Committee in accumulating necessary SB0007 Engrossed - 25 - LRB100 06307 AMC 16345 b information for the Committee to submit reports, as necessary, to the General Assembly and to the City.

The Governor and Mayor shall each appoint at least one current member of the SB0007 - 27 - LRB100 06307 AMC 16345 b General Assembly.

SB0007 Engrossed - 26 - LRB100 06307 AMC 16345 b Section 1-67.

Limitations on gaming at Chicago airports.

The Authority may conduct gaming operations in an airport under the administration or control of the Chicago Department of Aviation.

Gaming operations may be conducted pursuant to this Section so long as (i) gaming operations are conducted in a secured area that is beyond the Transportation Security Administration security checkpoints and only available to airline passengers at least 21 years of age who are members of a private club, and not to the general public, (ii) gaming operations are limited to slot machines, as defined in Section 4 of the Illinois Gambling Act, and (iii) the combined number of gaming positions operating in the City at the airports and at the temporary and permanent casino facility does not exceed the maximum number of gaming positions authorized pursuant to subsection (h) of Section 7 of the Illinois Gambling Act.

Gaming operations at an airport are subject to all applicable laws and rules that apply to any other gaming facility under this Act or the Illinois Gambling Act.

The construction, development, and operation of the casino shall SB0007 - 28 - LRB100 06307 AMC 16345 b comply with all ordinances, regulations, rules, and controls of SB0007 Engrossed - 27 - LRB100 06307 AMC 16345 b the City, including, but not limited to, those relating to zoning and planned development, building, fire prevention, and land use.

In this Act, the term "bonds" also includes notes of any kind, interim certificates, refunding bonds, or any other evidence of SB0007 - 29 - LRB100 06307 AMC 16345 b obligation for borrowed money issued under this Section.

Bonds SB0007 Engrossed - 28 - LRB100 06307 AMC 16345 b may be issued in one or more series and may be payable and secured either on a parity with or separately from other bonds.

(1) Bonds may bear interest payable at any time or times and at any rate or rates, notwithstanding any other SB0007 - 30 - LRB100 06307 AMC 16345 b provision of law to the contrary, and may be subject to SB0007 Engrossed - 29 - LRB100 06307 AMC 16345 b such other terms and conditions as may be provided by the resolution or indenture authorizing the issuance of such bonds.

(7) Bonds shall be executed by the manual or facsimile signatures of the officers of the Authority designated by the Board, which signatures shall be valid at delivery even SB0007 - 31 - LRB100 06307 AMC 16345 b for one who has ceased to hold office.

SB0007 Engrossed - 30 - LRB100 06307 AMC 16345 b (8) Bonds shall be sold at public or private sale in the manner and upon the terms determined by the Authority.

(1) Pledging, assigning, or directing the use, SB0007 Engrossed - 3231 - LRB100 06307 AMC 16345 b (1) Pledging, assigning, or directing the use, investment, or disposition of revenues of the Authority or proceeds or benefits of any contract, including without limitation any rights in any casino management contract.

(7) Defining the acts or omissions that shall constitute a default in the duties of the Authority to holders of bonds and providing the rights or remedies of SB0007 - 33 - LRB100 06307 AMC 16345 b such holders in the event of a default, which may include SB0007 Engrossed - 32 - LRB100 06307 AMC 16345 b provisions restricting individual rights of action by bondholders.

No resolution, trust indenture, management agreement or financing statement, continuation statement, or other instrument adopted or entered into by the Authority need be filed or recorded in any public record other than the SB0007 - 34 - LRB100 06307 AMC 16345 b records of the Authority in order to perfect the lien against SB0007 Engrossed - 33 - LRB100 06307 AMC 16345 b third persons, regardless of any contrary provision of law.

The Authority is authorized to include this pledge and agreement in SB0007 - 35 - LRB100 06307 AMC 16345 b any contract with the owners of bonds issued under this SB0007 Engrossed - 34 - LRB100 06307 AMC 16345 b Section.

Such agreements or contracts may include, without limitation, agreements or contracts commonly known as "interest rate swap agreements", "forward payment conversion agreements", "futures", "options", "puts", or "calls" and agreements or contracts providing for payments based on levels SB0007 - 36 - LRB100 06307 AMC 16345 b of or changes in interest rates, agreements or contracts to SB0007 Engrossed - 35 - LRB100 06307 AMC 16345 b exchange cash flows or a series of payments, or to hedge payment, rate spread, or similar exposure.

The budget may be modified from time to time in SB0007 - 37 - LRB100 06307 AMC 16345 b the same manner and upon the same vote as it may be adopted.

SB0007 Engrossed - 36 - LRB100 06307 AMC 16345 b The budget shall include the Authority's available funds and estimated revenues and shall provide for payment of its obligations and estimated expenditures for the fiscal year, including, without limitation, expenditures for administration, operation, maintenance and repairs, debt service, and deposits into reserve and other funds and capital projects.

Copies of the annual report shall be made available to persons who request them and shall be submitted not later than 120 days after the end of the Authority's fiscal year or, if the audit of the Authority's financial statements is not completed within SB0007 - 38 - LRB100 06307 AMC 16345 b 120 days after the end of the Authority's fiscal year, as soon SB0007 Engrossed - 37 - LRB100 06307 AMC 16345 b as practical after completion of the audit, to the Governor, the Mayor, the General Assembly, and the Commission on Government Forecasting and Accountability.

(b) If any officer or employee whose signature appears upon any check or draft issued pursuant to this Act ceases (after attaching his signature) to hold his or her office before the delivery of such a check or draft to the payee, his or her signature shall nevertheless be valid and sufficient for all SB0007 - 39 - LRB100 06307 AMC 16345 b purposes with the same effect as if he or she had remained in SB0007 Engrossed - 38 - LRB100 06307 AMC 16345 b office until delivery thereof.

(b) A bidder, respondent, offeror, or contractor for SB0007 - 40 - LRB100 06307 AMC 16345 b contracts with an annual value of $25,000 or more or for a SB0007 Engrossed - 39 - LRB100 06307 AMC 16345 b period to exceed one year shall disclose all political contributions of the bidder, respondent, offeror, or contractor and any affiliated person or entity.

The Authority may direct a casino operator SB0007 - 41 - LRB100 06307 AMC 16345 b licensee to void a contract if a violation of this Section SB0007 Engrossed - 40 - LRB100 06307 AMC 16345 b occurs.

Contracts for amounts of $25,000 or less may be approved and executed by the Chief Procurement Officer for the Authority and SB0007 - 42 - LRB100 06307 AMC 16345 b executive director of the Authority, with approval by the chief SB0007 Engrossed - 41 - LRB100 06307 AMC 16345 b legal counsel for the Authority as to form and legality.

(6) contracts for professional services other than for SB0007management -of 43the -casino, LRB100except 06307such AMCcontracts 16345described bSB0007 managementEngrossed of- the42 casino,- exceptLRB100 such06307 contractsAMC described16345 b in subsection (d) of this Section;

No such contract shall be awarded to any proposer other than the lowest proposer (in case of purchase or expenditure) unless authorized or approved by a SB0007 - 44 - LRB100 06307 AMC 16345 b vote of at least 3 members of the Casino Board and such action SB0007 Engrossed - 43 - LRB100 06307 AMC 16345 b is accompanied by a written statement setting forth the reasons for not awarding the contract to the highest or lowest proposer, as the case may be.

SB0007 - 45 - LRB100 06307 AMC 16345 b (i) All proposals in response to advertisements shall be SB0007 Engrossed - 44 - LRB100 06307 AMC 16345 b sealed and shall be publicly opened by the Authority.

The online bulletin must include at least the date first offered, the date submission of offers is due, the location that offers are to be submitted to, a brief purchase description, the method of source selection, SB0007information -of 46how -to LRB100obtain 06307a AMCcomprehensive 16345purchase bSB0007 informationEngrossed of- how45 to- obtainLRB100 a06307 comprehensiveAMC purchase16345 b description and any disclosure and contract forms, and encouragement to prospective vendors to hire qualified veterans, as defined by Section 45-67 of the Illinois Procurement Code, and Illinois residents discharged from any Illinois adult correctional center subject to Gaming Board licensing and eligibility rules.

of the Chicago Municipal Code, as now or hereafter amended, renumbered, or succeeded, concerning a Minority-Owned and SB0007 Engrossed - 4746 - LRB100 06307 AMC 16345 b renumbered, or succeeded, concerning a Minority-Owned and Women-Owned Business Enterprise Procurement Program.

A home rule unit may not regulate or license casinos, casino gaming, casino gaming facilities, or casino operator licensees under this Act, except as provided SB0007 - 48 - LRB100 06307 AMC 16345 b under this Act.

This Section is a denial and limitation of home SB0007 Engrossed - 47 - LRB100 06307 AMC 16345 b rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(5) That the Illinois horse racing industry is on the verge of extinction due to fierce competition from fully developed horse racing and gaming operations in other SB0007 - 49 - LRB100 06307 AMC 16345 b states.

SB0007 Engrossed - 48 - LRB100 06307 AMC 16345 b (6) That allowing the State's horse racing venues, currently licensed gaming destinations, to maximize their capacities with gaming machines, would generate up to $120 million to $200 million for the State in the form of extra licensing fees, plus an additional $100 million to $300 million in recurring annual tax revenue for the State to help ensure that school, road, and other building projects promised under the capital plan occur on schedule.

SB0007 - 50 - LRB100 06307 AMC 16345 b Section 90-3.

The State Officials and Employees Ethics Act SB0007 Engrossed - 49 - LRB100 06307 AMC 16345 b is amended by changing SectionsSection 5-45 and 20-10 as follows:

(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 SB0007 - 51 - LRB100 06307 AMC 16345 b person or entity, or its parent or subsidiary.

SB0007 Engrossed - 50 - LRB100 06307 AMC 16345 b (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.

(e) The Joint Committee on Legislative Support Services, the Auditor General, and each of the executive branch constitutional officers and legislative leaders subject to SB0007 Engrossed - 5251 - LRB100 06307 AMC 16345 b 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):

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 SB0007 - 53 - LRB100 06307 AMC 16345 b totality of the participation by the former officer, member, or SB0007 Engrossed - 52 - LRB100 06307 AMC 16345 b State employee in those decisions.

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 SB0007information, -the 54effect -of LRB100the 06307prospective AMCemployment 16345or bSB0007 information,Engrossed the- effect53 of- theLRB100 prospective06307 employmentAMC or16345 b 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.

SB0007(4) -the 55head -of LRB100a 06307department, AMCcommission, 16345board, bSB0007 (4)Engrossed the- head54 of- aLRB100 department,06307 commission,AMC board,16345 b division, bureau, authority, or other administrative unit within the government of this State;

1-13-12.) (5Section ILCS90-5. 430/20-10) Sec.

20-10.

Offices of Executive Inspectors General.

(a) Six Five independent Offices of the Executive Inspector General are created, one each for the Governor, the Attorney General, the Secretary of State, the Comptroller, and the SB0007 - 56 - LRB100 06307 AMC 16345 b Treasurer and one for gaming activities.

Each Office shall be under the direction and supervision of an Executive Inspector General and shall be a fully independent office with separate appropriations.

(b) The Governor, Attorney General, Secretary of State, Comptroller, and Treasurer shall each appoint an Executive Inspector General, and the Governor shall appoint an Executive Inspector General for gaming activities.

Each appointment must be made without regard to political affiliation and solely on the basis of integrity and demonstrated ability.

Appointments shall be made by and with the advice and consent of the Senate by three-fifths of the elected members concurring by record vote.

Any nomination not acted upon by the Senate within 60 session days of the receipt thereof shall be deemed to have received the advice and consent of the Senate.

If, during a recess of the Senate, there is a vacancy in an office of Executive Inspector General, the appointing authority shall make a temporary appointment until the next meeting of the Senate when the appointing authority shall make a nomination to fill that office.

No person rejected for an office of Executive Inspector General shall, except by the Senate's request, be nominated again for that office at the same session of the Senate or be appointed to that office during a recess of that Senate.

Nothing in this Article precludes the appointment by the Governor, Attorney General, Secretary of State, Comptroller, SB0007 - 57 - LRB100 06307 AMC 16345 b or Treasurer of any other inspector general required or permitted by law.

The Governor, Attorney General, Secretary of State, Comptroller, and Treasurer each may appoint an existing inspector general as the Executive Inspector General required by this Article, provided that such an inspector general is not prohibited by law, rule, jurisdiction, qualification, or interest from serving as the Executive Inspector General required by this Article.

An appointing authority may not appoint a relative as an Executive Inspector General.

Each Executive Inspector General shall have the following qualifications:

(1) has not been convicted of any felony under the laws of this State, another State, or the United States;

(2) has earned a baccalaureate degree from an institution of higher education;

and (3) has 5 or more years of cumulative service (A) with a federal, State, or local law enforcement agency, at least 2 years of which have been in a progressive investigatory capacity;

(B) as a federal, State, or local prosecutor;

(C) as a senior manager or executive of a federal, State, or local agency;

(D) as a member, an officer, or a State or federal judge;

or (E) representing any combination of (A) through (D).

The term of each initial Executive Inspector General shall commence upon qualification and shall run through June 30, 2008.

The initial appointments shall be made within 60 days SB0007 - 58 - LRB100 06307 AMC 16345 b after the effective date of this Act.

After the initial term, each Executive Inspector General shall serve for 5-year terms commencing on July 1 of the year of appointment and running through June 30 of the fifth following year.

An Executive Inspector General may be reappointed to one or more subsequent terms.

A vacancy occurring other than at the end of a term shall be filled by the appointing authority only for the balance of the term of the Executive Inspector General whose office is vacant.

Terms shall run regardless of whether the position is filled.

(c) The Executive Inspector General appointed by the Attorney General shall have jurisdiction over the Attorney General and all officers and employees of, and vendors and others doing business with, State agencies within the jurisdiction of the Attorney General.

The Executive Inspector General appointed by the Secretary of State shall have jurisdiction over the Secretary of State and all officers and employees of, and vendors and others doing business with, State agencies within the jurisdiction of the Secretary of State.

The Executive Inspector General appointed by the Comptroller shall have jurisdiction over the Comptroller and all officers and employees of, and vendors and others doing business with, State agencies within the jurisdiction of the Comptroller.

The Executive Inspector General appointed by the Treasurer shall SB0007 - 59 - LRB100 06307 AMC 16345 b have jurisdiction over the Treasurer and all officers and employees of, and vendors and others doing business with, State agencies within the jurisdiction of the Treasurer.

The Executive Inspector General appointed by the Governor shall have jurisdiction over (i) the Governor, (ii) the Lieutenant Governor, (iii) all officers and employees of, and vendors and others doing business with, executive branch State agencies under the jurisdiction of the Executive Ethics Commission and not within the jurisdiction of the Attorney General, the Secretary of State, the Comptroller, or the Treasurer, or the Executive Inspector General for gaming activities, and (iv) all board members and employees of the Regional Transit Boards and all vendors and others doing business with the Regional Transit Boards.

The Executive Inspector General for gaming activities appointed by the Governor has jurisdiction over the Illinois Gaming Board, all officers and employees of the Illinois Gaming Board, and all activities of the Illinois Gaming Board.

The jurisdiction of each Executive Inspector General is to investigate allegations of fraud, waste, abuse, mismanagement, misconduct, nonfeasance, misfeasance, malfeasance, or violations of this Act or violations of other related laws and rules.

(d) The compensation for each Executive Inspector General shall be determined by the Executive Ethics Commission and shall be made from appropriations made to the Comptroller for this purpose.

Subject to Section 20-45 of this Act, each SB0007 - 60 - LRB100 06307 AMC 16345 b Executive Inspector General has full authority to organize his or her Office of the Executive Inspector General, including the employment and determination of the compensation of staff, such as deputies, assistants, and other employees, as appropriations permit.

A separate appropriation shall be made for each Office of Executive Inspector General.

(e) No Executive Inspector General or employee of the Office of the Executive Inspector General may, during his or her term of appointment or employment:

(1) become a candidate for any elective office;

(2) hold any other elected or appointed public office except for appointments on governmental advisory boards or study commissions or as otherwise expressly authorized by law;

(3) be actively involved in the affairs of any political party or political organization;

or (4) advocate for the appointment of another person to an appointed or elected office or position or actively participate in any campaign for any elective office.

In this subsection an appointed public office means a position authorized by law that is filled by an appointing authority as provided by law and does not include employment by hiring in the ordinary course of business.

(e-1) No Executive Inspector General or employee of the Office of the Executive Inspector General may, for one year after the termination of his or her appointment or employment:

SB0007 - 61 - LRB100 06307 AMC 16345 b (1) become a candidate for any elective office;

(2) hold any elected public office;

or (3) hold any appointed State, county, or local judicial office.

(e-2) The requirements of item (3) of subsection (e-1) may be waived by the Executive Ethics Commission.

(f) An Executive Inspector General may be removed only for cause and may be removed only by the appointing constitutional officer.

At the time of the removal, the appointing constitutional officer must report to the Executive Ethics Commission the justification for the removal.

(Source:

P.A.

96-555, eff.

8-18-09;

96-1528, eff.

7-1-11.) Section 90-5.

(a) Subject to appropriation, the Department shall SB0007 Engrossed - 55 - LRB100 06307 AMC 16345 b establish a program for public education, research, and training regarding problem and compulsive gambling and the treatment and prevention of problem and compulsive gambling.

(1) Establishment and maintenance of a toll-free "800" telephone number to provide crisis counseling and referral SB0007 - 62 - LRB100 06307 AMC 16345 b services to families experiencing difficulty as a result of problem or compulsive gambling.

SB0007 Engrossed - 56 - LRB100 06307 AMC 16345 b (c) Subject to appropriation, the Department shall produce and supply the signs specified in Section 10.7 of the Illinois Lottery Law, Section 34.1 of the Illinois Horse Racing Act of 1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1 of the Charitable Games Act, and Section 13.1 of the Illinois Riverboat Gambling Act.

8-9-96.) SB0007 - 63 - LRB100 06307 AMC 16345 b Section 90-6.

(2) 2 members appointed by the Speaker of the House of Representatives, one of whom shall be appointed to serve an initial term of one year and one of whom shall be appointed SB0007 Engrossed - 57 - LRB100 06307 AMC 16345 b to serve an initial term of 2 years;

(4) 2 members appointed by the Minority Leader of the House of Representatives, one of whom shall be appointed to SB0007 - 64 - LRB100 06307 AMC 16345 b serve an initial term of one year and one of whom shall be appointed to serve an initial term of 2 years;

SB0007 Engrossed - 58 - LRB100 06307 AMC 16345 b (b) Board members shall serve without compensation, but may be reimbursed for their reasonable travel expenses from funds available for that purpose.

(c) The Board must make recommendations, which must be approved by a majority of the Board, to the Department of SB0007 - 65 - LRB100 06307 AMC 16345 b Commerce and Economic Opportunity concerning the award of grants from amounts appropriated to the Department from the Depressed Communities Economic Development Fund, a special fund created in the State treasury.

The Commission on the Future of Economic SB0007 Engrossed - 59 - LRB100 06307 AMC 16345 b Development of the Latino Community.

SB0007 - 66 - LRB100 06307 AMC 16345 b The Commission shall concentrate its major efforts on strategic planning, policy research and analysis, advocacy, evaluation, and promoting coordination and collaboration.

(3) a common set of outcomes and benchmarks for the SB0007 Engrossed - 60 - LRB100 06307 AMC 16345 b economic development system as a whole for the Latino community;

SB0007 - 67 - LRB100 06307 AMC 16345 b (6) recommendations for expanding, discontinuing, or redirecting existing programs or adding new programs to better serve the Latino community;

The Commission shall review and make budget recommendations to the Governor's Office of Management and Budget and the General Assembly in areas relating to the SB0007 Engrossed - 61 - LRB100 06307 AMC 16345 b economic development in the State's Latino community.

The Commission may accept gifts, grants, donations, sponsorships, or contributions from any federal, State, or local governmental agency or program, or any private source, and expend the same for any purpose consistent with this SB0007 - 68 - LRB100 06307 AMC 16345 b Section.

and SB0007 Engrossed - 62 - LRB100 06307 AMC 16345 b (7) biotechnology.

The SB0007 - 69 - LRB100 06307 AMC 16345 b members of the Commission shall serve without compensation.

The Department shall make grants to public or private SB0007 Engrossed - 63 - LRB100 06307 AMC 16345 b entities submitting proposals to the Commission to assist in the economic development of the Latino community.

"Department" means the Department of Commerce and Economic SB0007 - 70 - LRB100 06307 AMC 16345 b Development.

SB0007 Engrossed - 64 - LRB100 06307 AMC 16345 b (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, SB0007 - 71 - LRB100 06307 AMC 16345 b 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.

As part of its obligation to terminate these contracts and select the private manager, the Department shall establish SB0007 Engrossed - 65 - LRB100 06307 AMC 16345 b a mutually agreeable timetable to transfer the functions of existing contractors to the private manager so that existing Lottery operations are not materially diminished or impaired during the transition.

(1) where such contracts contain a provision authorizing termination upon notice, the Department shall SB0007 - 72 - LRB100 06307 AMC 16345 b provide notice of termination to occur upon the mutually agreed timetable for transfer of functions;

(c-5) The Department shall include provisions in the SB0007 Engrossed - 66 - LRB100 06307 AMC 16345 b management agreement whereby the private manager shall, for a fee, and pursuant to a contract negotiated with the Department (the "Employee Use Contract"), utilize the services of current Department employees to assist in the administration and operation of the Lottery.

The Department shall be the employer of all such bargaining unit employees assigned to perform such work for the private manager, and such employees shall be State SB0007 - 73 - LRB100 06307 AMC 16345 b employees, as defined by the Personnel Code.

SB0007 Engrossed - 67 - LRB100 06307 AMC 16345 b (C) has the right to demand and receive information from the private manager concerning any aspect of the Lottery operations at any time;

(3) A provision imposing an affirmative duty on the SB0007 - 74 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 68 - LRB100 06307 AMC 16345 b (6) (Blank).

(8-5) A provision encouraging that at least 20% of the SB0007 - 75 - LRB100 06307 AMC 16345 b 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 female owned business, or a business owned by a person with disability, as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

SB0007 Engrossed - 69 - LRB100 06307 AMC 16345 b (D) The implementation of a comprehensive system of internal audits.

(F) A system for determining (i) the type of Lottery games, (ii) the method of selecting winning SB0007 - 76 - LRB100 06307 AMC 16345 b 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.

(13) A requirement that the Department monitor and oversee the private manager's practices and take action SB0007 Engrossed - 70 - LRB100 06307 AMC 16345 b 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 SB0007 - 77 - LRB100 06307 AMC 16345 b periodically file, at least on an annual basis, appropriate financial statements in a form and manner acceptable to the Department.

The process shall not be subject to the provisions of the Illinois Procurement Code, unless SB0007 Engrossed - 71 - LRB100 06307 AMC 16345 b specifically required by the management agreement.

SB0007 - 78 - LRB100 06307 AMC 16345 b (21) Right of use of copyrights, trademarks, and service marks held by the Department in the name of the State.

SB0007 Engrossed - 72 - LRB100 06307 AMC 16345 b (2) the offeror's ability to address the State's concern with the social effects of gambling on those who can least afford to do so;

and SB0007 - 79 - LRB100 06307 AMC 16345 b (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.

The Department shall not select any prospective advisor with a SB0007 Engrossed - 73 - LRB100 06307 AMC 16345 b 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 SB0007 - 80 - LRB100 06307 AMC 16345 b obligations under the management agreement.

Upon making preliminary selections, the Department shall schedule a public hearing on the finalists' SB0007 Engrossed - 74 - LRB100 06307 AMC 16345 b proposals and provide public notice of the hearing at least 7 calendar days before the hearing.

SB0007 - 81 - LRB100 06307 AMC 16345 b (4) The identity of the offerors that have been selected as finalists to serve as the private manager.

The Governor shall include in the notice a detailed explanation and the reasons why the final SB0007 Engrossed - 75 - LRB100 06307 AMC 16345 b offeror is superior to other offerors and will provide management services in a manner that best achieves the objectives of this Section.

(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 SB0007 - 82 - LRB100 06307 AMC 16345 b designation of the private manager as provided in subsection (h) of 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 SB0007 Engrossed - 76 - LRB100 06307 AMC 16345 b 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 SB0007 - 83 - LRB100 06307 AMC 16345 b Department in cooperation with the Auditor General to determine whether the private manager has complied with this Section and the management agreement.

This Section contains full and SB0007 Engrossed - 77 - LRB100 06307 AMC 16345 b 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 SB0007 - 84 - LRB100 06307 AMC 16345 b 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).

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 SB0007 Engrossed - 78 - LRB100 06307 AMC 16345 b a private management agreement has been terminated.

The Chief Procurement Officer shall also implement and administer the adopted selection process upon the termination of a private SB0007 - 85 - LRB100 06307 AMC 16345 b management agreement.

(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 SB0007 Engrossed - 79 - LRB100 06307 AMC 16345 b proceeds transferred in the corresponding month of fiscal year 2009, as adjusted for inflation, to the Common School Fund.

SB0007 - 86 - LRB100 06307 AMC 16345 b (p) The Department shall be subject to the following reporting and information request requirements:

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 SB0007 Engrossed - 80 - LRB100 06307 AMC 16345 b to the Governor and General Assembly.

SB0007 - 87 - LRB100 06307 AMC 16345 b (20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1) Sec.

(c) The Department may enter into agreements with the Illinois Gaming Board providing that investigators appointed SB0007 Engrossed - 81 - LRB100 06307 AMC 16345 b 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.

SB0007 - 88 - LRB100 06307 AMC 16345 b (30 ILCS 5/3-1) (from Ch.

(b) to make investigations authorized by or under this SB0007 Engrossed - 82 - LRB100 06307 AMC 16345 b Act or the Constitution;

In addition to the foregoing, the Auditor General may SB0007 - 89 - LRB100 06307 AMC 16345 b conduct an audit of the Metropolitan Pier and Exposition Authority, the Regional Transportation Authority, the Suburban Bus Division, the Commuter Rail Division and the Chicago Transit Authority and any other subsidized carrier when authorized by the Legislative Audit Commission.

SB0007 Engrossed - 83 - LRB100 06307 AMC 16345 b The Auditor General may also conduct an audit, when authorized by the Legislative Audit Commission, of any hospital which receives 10% or more of its gross revenues from payments from the State of Illinois, Department of Healthcare and Family Services (formerly Department of Public Aid), Medical Assistance Program.

The Auditor General is authorized to conduct financial and SB0007 - 90 - LRB100 06307 AMC 16345 b compliance audits of the Illinois Distance Learning Foundation and the Illinois Conservation Foundation.

SB0007 Engrossed - 84 - LRB100 06307 AMC 16345 b The Auditor General must conduct an audit of the Health Facilities and Services Review Board pursuant to Section 19.5 of the Illinois Health Facilities Planning Act.

The Auditor General of the State of Illinois shall annually SB0007 - 91 - LRB100 06307 AMC 16345 b conduct or cause to be conducted a financial and compliance audit of the books and records of any county water commission organized pursuant to the Water Commission Act of 1985 and shall file a copy of the report of that audit with the Governor and the Legislative Audit Commission.

The Auditor General must conduct financial audits of the Southeastern Illinois Economic Development Authority as provided in Section 70 of the Southeastern Illinois Economic SB0007 Engrossed - 85 - LRB100 06307 AMC 16345 b Development Authority Act.

6-24-10.) SB0007 - 92 - LRB100 06307 AMC 16345 b Section 90-15.

SB0007 Engrossed - 86 - LRB100 06307 AMC 16345 b 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 SB0007 - 93 - LRB100 06307 AMC 16345 b 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;

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 SB0007 Engrossed - 87 - LRB100 06307 AMC 16345 b 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 SB0007 - 94 - LRB100 06307 AMC 16345 b 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.

Interest for which moneys have already been deposited into the SB0007 Engrossed - 88 - LRB100 06307 AMC 16345 b 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 SB0007 - 95 - LRB100 06307 AMC 16345 b applied, without further direction, as provided in subsection (b-3) of Section 5-35 of the School Construction Law.

Fourth - to pay any amounts due for grants for school SB0007 Engrossed - 89 - LRB100 06307 AMC 16345 b maintenance projects under the School Construction Law.

SB0007 - 96 - LRB100 06307 AMC 16345 b (b) The revenues in the Fund shall be used, subject to appropriation, by the Comptroller for the purpose of (i) providing appropriations to the Illinois Gaming Board for the administration and enforcement of the Illinois Gambling Act and the applicable provisions of the Chicago Casino Development Authority ActAct, andwith (ii)any paymentremaining ofamounts vouchersbeing thattransferred areto outstandingthe forGeneral moreRevenue thanFund. 60 days.

Whenever(c) practical,The theFund Comptrollershall mustconsist prioritizeof voucherfee paymentsrevenues forreceived expensespursuant related to medicalsubsection assistance(a) underof Section 1-45 of the IllinoisChicago PublicCasino AidDevelopment Code,Authority theAct Children'sand Healthpursuant Insuranceto Programsubsections Act,(e-10), the(e-15), Covering(h), ALLand KIDS(h-5) Healthof InsuranceSection Act,7 and thesubsections Senior(b), Citizens(c), (d), and Disabled(k) Personsof PropertySection Tax7.7 Reliefof andthe PharmaceuticalIllinois AssistanceGambling Act.

(c) The Fund shall consist of fee revenues received pursuant to subsection (e) of Section 1-45 of the Chicago Casino Development Authority Act and pursuant to subsections (e-10), (e-15), (e-25), and (h-5) of Section 7 and subsections (b), (c), (d), and (k) of Section 7.7 of the Illinois Gambling Act.

The Illinois Income Tax Act is amended by SB0007 Engrossed - 90 - LRB100 06307 AMC 16345 b changing Sections 201, 303, 304 and 710 as follows:

SB0007 - 97 - LRB100 06307 AMC 16345 b (35 ILCS 5/201) (from Ch.

(3) In the case of an individual, trust or estate, for SB0007 Engrossed - 91 - LRB100 06307 AMC 16345 b taxable years beginning after June 30, 1989, and ending prior to January 1, 2011, an amount equal to 3% of the SB0007 - 98 - LRB100 06307 AMC 16345 b taxpayer's net income for the taxable year.

(5.3) In the case of an individual, trust, or estate, SB0007 Engrossed - 92 - LRB100 06307 AMC 16345 b for taxable years beginning prior to January 1, 2025, and ending after December 31, 2024, an amount equal to the sum SB0007 - 99 - LRB100 06307 AMC 16345 b of (i) 3.75% of the taxpayer's net income for the period prior to January 1, 2025, as calculated under Section 202.5, and (ii) 3.25% of the taxpayer's net income for the period after December 31, 2024, as calculated under Section 202.5.

(9) In the case of a corporation, for taxable years SB0007 Engrossed - 93 - LRB100 06307 AMC 16345 b beginning prior to January 1, 2011, and ending after December 31, 2010, an amount equal to the sum of (i) 4.8% SB0007 - 100 - LRB100 06307 AMC 16345 b 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.

(13) In the case of a corporation, for taxable years beginning prior to January 1, 2025, and ending after December 31, 2024, an amount equal to the sum of (i) 5.25% of the taxpayer's net income for the period prior to January 1, 2025, as calculated under Section 202.5, and SB0007 Engrossed - 94 - LRB100 06307 AMC 16345 b (ii) 4.8% of the taxpayer's net income for the period after December 31, 2024, as calculated under Section 202.5.

SB0007 - 101 - LRB100 06307 AMC 16345 b (14) In the case of a corporation, for taxable years beginning on or after January 1, 2025, an amount equal to 4.8% of the taxpayer's net income for the taxable year.

SB0007 Engrossed - 95 - LRB100 06307 AMC 16345 b (B) cancellation, revocation, or termination of any such license by the Illinois Gaming Board or the SB0007 - 102 - LRB100 06307 AMC 16345 b Illinois Racing Board;

The transfer of an electronic gaming license, organization SB0007 Engrossed - 96 - LRB100 06307 AMC 16345 b license, or race track property by a person other than the initial licensee to receive the electronic gaming license is SB0007 - 103 - LRB100 06307 AMC 16345 b not subject to a surcharge.

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 SB0007 Engrossed - 97 - LRB100 06307 AMC 16345 b partnership, trust or a Subchapter S corporation shall be an additional amount equal to 1.5% of such taxpayer's net income SB0007 - 104 - LRB100 06307 AMC 16345 b for the taxable year.

For the purposes of this subsection (d-1), an inter-affiliate includes SB0007 Engrossed - 98 - LRB100 06307 AMC 16345 b a mutual insurer under common management.

(1) For the purposes of subsection (d-1), in no event SB0007 - 105 - LRB100 06307 AMC 16345 b shall the sum of the rates of tax imposed by subsections (b) and (d) be reduced below the rate at which the sum of:

SB0007 Engrossed - 99 - LRB100 06307 AMC 16345 b This subsection (d-1) is exempt from the provisions of Section 250.

SB0007 - 106 - LRB100 06307 AMC 16345 b (e) Investment credit.

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 SB0007 Engrossed - 100 - LRB100 06307 AMC 16345 b numerator of which is .5% and the denominator of which is 1%, but shall not exceed .5%.

The investment credit shall SB0007 - 107 - LRB100 06307 AMC 16345 b 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 SB0007 Engrossed - 101 - LRB100 06307 AMC 16345 b after December 31, 1988, the credit shall be allowed for the tax year in which the property is placed in service, SB0007 - 108 - LRB100 06307 AMC 16345 b 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.

(C) is acquired by purchase as defined in Section SB0007 Engrossed - 102 - LRB100 06307 AMC 16345 b 179(d) of the Internal Revenue Code;

(D) is used in Illinois by a taxpayer who is SB0007 - 109 - LRB100 06307 AMC 16345 b 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;

For purposes of this subsection (e), "tangible personal property" has the same meaning as when that term SB0007 Engrossed - 103 - LRB100 06307 AMC 16345 b is used in the Retailers' Occupation Tax Act, and, for taxable years ending after December 31, 2008, does not SB0007 - 110 - LRB100 06307 AMC 16345 b include the generation, transmission, or distribution of electricity.

For the SB0007 Engrossed - 104 - LRB100 06307 AMC 16345 b purposes of this paragraph (7), a reduction of the basis of qualified property resulting from a redetermination of the SB0007 - 111 - LRB100 06307 AMC 16345 b purchase price shall be deemed a disposition of qualified property to the extent of such reduction.

For taxable years ending on or after December 31, 2000, SB0007 Engrossed - 105 - LRB100 06307 AMC 16345 b a partner that qualifies its partnership for a subtraction under subparagraph (I) of paragraph (2) of subsection (d) SB0007 - 112 - LRB100 06307 AMC 16345 b 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.

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 SB0007 Engrossed - 106 - LRB100 06307 AMC 16345 b be allowed a credit under this subsection (f) to be determined in accordance with the determination of income SB0007 - 113 - LRB100 06307 AMC 16345 b and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(B) is depreciable pursuant to Section 167 of the SB0007 Engrossed - 107 - LRB100 06307 AMC 16345 b Internal Revenue Code, except that "3-year property" as defined in Section 168(c)(2)(A) of that Code is not SB0007 - 114 - LRB100 06307 AMC 16345 b eligible for the credit provided by this subsection (f);

(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 SB0007 Engrossed - 108 - LRB100 06307 AMC 16345 b any qualified property is moved outside the Enterprise Zone or River Edge Redevelopment Zone within 48 months after SB0007 - 115 - LRB100 06307 AMC 16345 b being placed in service, the tax imposed under subsections (a) and (b) of this Section for such taxable year shall be increased.

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 SB0007 Engrossed - 109 - LRB100 06307 AMC 16345 b Security.

If, in any year, the increase in base employment within Illinois over the preceding year is less than 1%, SB0007 - 116 - LRB100 06307 AMC 16345 b 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%.

The credit applicable to such investments shall be taken in the SB0007 Engrossed - 110 - LRB100 06307 AMC 16345 b taxable year in which such investments have been completed.

The credit for additional investments beyond the minimum SB0007 - 117 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 111 - LRB100 06307 AMC 16345 b (B) is depreciable pursuant to Section 167 of the Internal Revenue Code, except that "3-year property" SB0007 - 118 - LRB100 06307 AMC 16345 b as defined in Section 168(c)(2)(A) of that Code is not eligible for the credit provided by this subsection (h);

(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 SB0007 Engrossed - 112 - LRB100 06307 AMC 16345 b months after being placed in service, the tax imposed under subsections (a) and (b) of this Section for such taxable SB0007 - 119 - LRB100 06307 AMC 16345 b year shall be increased.

For tax years ending prior to December 31, 2003, a credit shall be allowed against the tax imposed by subsections (a) and SB0007 Engrossed - 113 - LRB100 06307 AMC 16345 b (b) of this Section for the tax imposed by subsections (c) and (d) of this Section.

This credit shall be computed by SB0007 - 120 - LRB100 06307 AMC 16345 b 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.

Such reduction shall be determined by SB0007 Engrossed - 114 - LRB100 06307 AMC 16345 b recomputing the credit to take into account the reduced tax imposed by subsections (c) and (d).

If any portion of the SB0007 - 121 - LRB100 06307 AMC 16345 b 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.

Any credit allowed under this subsection which is unused in the year the credit is earned may be carried forward to each of SB0007 Engrossed - 115 - LRB100 06307 AMC 16345 b the 5 taxable years following the year for which the credit is first computed until it is used.

This credit shall be applied SB0007 - 122 - LRB100 06307 AMC 16345 b first to the earliest year for which there is a liability.

For purposes of this subsection, "qualifying expenditures" SB0007 Engrossed - 116 - LRB100 06307 AMC 16345 b means the qualifying expenditures as defined for the federal credit for increasing research activities which would be SB0007 - 123 - LRB100 06307 AMC 16345 b 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.

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 SB0007 Engrossed - 117 - LRB100 06307 AMC 16345 b liability for the given year remains.

Any remaining unused credit or credits then will be carried forward to the next SB0007 - 124 - LRB100 06307 AMC 16345 b 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.

The credit is not available to any taxpayer if the taxpayer or any related SB0007 Engrossed - 118 - LRB100 06307 AMC 16345 b party caused or contributed to, in any material respect, a release of regulated substances on, in, or under the site SB0007 - 125 - LRB100 06307 AMC 16345 b that was identified and addressed by the remedial action pursuant to the Site Remediation Program of the Environmental Protection Act.

For partners and SB0007 Engrossed - 119 - LRB100 06307 AMC 16345 b shareholders of subchapter S corporations, there shall be allowed a credit under this subsection to be determined in SB0007 - 126 - LRB100 06307 AMC 16345 b accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code.

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 SB0007 Engrossed - 120 - LRB100 06307 AMC 16345 b amount of the tax credit to be transferred as a portion of the sale.

In no event may a credit be transferred to any SB0007 - 127 - LRB100 06307 AMC 16345 b taxpayer if the taxpayer or a related party would not be eligible under the provisions of subsection (i).

"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 SB0007 Engrossed - 121 - LRB100 06307 AMC 16345 b this subsection.

"Qualified education expense" means the amount incurred on SB0007 - 128 - LRB100 06307 AMC 16345 b 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.

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 SB0007 Engrossed - 122 - LRB100 06307 AMC 16345 b environmental remediation at a site within a River Edge Redevelopment Zone for which a No Further Remediation SB0007 - 129 - LRB100 06307 AMC 16345 b Letter was issued by the Agency and recorded under Section 58.10 of the Environmental Protection Act.

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 SB0007 Engrossed - 123 - LRB100 06307 AMC 16345 b $100,000 per site.

(ii) A credit allowed under this subsection that is SB0007 - 130 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 124 - LRB100 06307 AMC 16345 b (o) For each of taxable years during the Compassionate Use of Medical Cannabis Pilot Program, a surcharge is imposed on SB0007 - 131 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 125 - LRB100 06307 AMC 16345 b (D) the death of an owner of the equity interest in a registrant;

SB0007 - 132 - LRB100 06307 AMC 16345 b (E) the acquisition of a controlling interest in the stock or substantially all of the assets of a publicly traded company;

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 SB0007 Engrossed - 126 - LRB100 06307 AMC 16345 b copyright royalties, and prizes awarded under the Illinois Lottery Law, and, for taxable years ending on or after December SB0007 - 133 - LRB100 06307 AMC 16345 b 31, 2017, 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.

Rents and royalties from real SB0007 Engrossed - 127 - LRB100 06307 AMC 16345 b property are allocable to this State if the property is located in this State.

SB0007 - 134 - LRB100 06307 AMC 16345 b (2) Tangible personal property.

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 SB0007 Engrossed - 128 - LRB100 06307 AMC 16345 b obtained possession.

SB0007 - 135 - LRB100 06307 AMC 16345 b (1) Allocation.

If the basis of receipts from copyright royalties does not permit allocation to states or if SB0007 Engrossed - 129 - LRB100 06307 AMC 16345 b the accounting procedures do not reflect states of utilization, the copyright is utilized in this State if SB0007 - 136 - LRB100 06307 AMC 16345 b the taxpayer has its commercial domicile in this State.

or (2) That state has jurisdiction to subject the taxpayer SB0007 Engrossed - 130 - LRB100 06307 AMC 16345 b to a net income tax regardless of whether, in fact, the state does or does not.

SB0007 - 137 - LRB100 06307 AMC 16345 b (g) Cross references.

For tax years ending on or after December 31, 1998, and except as otherwise provided by SB0007 Engrossed - 131 - LRB100 06307 AMC 16345 b this Section, persons other than residents who derive business income from this State and one or more other states shall SB0007 - 138 - LRB100 06307 AMC 16345 b compute their apportionment factor by weighting their property, payroll, and sales factors as provided in subsection (h) of this Section.

SB0007 Engrossed - 132 - LRB100 06307 AMC 16345 b (A) The payroll factor is a fraction, the numerator of which is the total amount paid in this State during the SB0007 - 139 - LRB100 06307 AMC 16345 b taxable year by the person for compensation, and the denominator of which is the total compensation paid everywhere during the taxable year.

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 SB0007 Engrossed - 133 - LRB100 06307 AMC 16345 b as a member of a professional athletic team during the taxable year which the number of duty days spent within SB0007 - 140 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 134 - LRB100 06307 AMC 16345 b (3) Except as provided in items (C) and (D) of this subpart (3), the term "duty days" means all SB0007 - 141 - LRB100 06307 AMC 16345 b 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.

(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 SB0007 Engrossed - 135 - LRB100 06307 AMC 16345 b through all post-season games in which the team competes or is scheduled to compete.

SB0007 - 142 - LRB100 06307 AMC 16345 b (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.

(E) Days for which a member of a professional athletic team is on the disabled list and does not conduct rehabilitation SB0007 Engrossed - 136 - LRB100 06307 AMC 16345 b activities at facilities of the team, and is not otherwise performing services for the team SB0007 - 143 - LRB100 06307 AMC 16345 b in Illinois, shall not be considered duty days spent in this State.

This compensation does not include strike benefits, severance pay, termination pay, SB0007 Engrossed - 137 - LRB100 06307 AMC 16345 b contract or option year buy-out payments, expansion or relocation payments, or any other SB0007 - 144 - LRB100 06307 AMC 16345 b payments not related to services performed for the team.

SB0007 Engrossed - 138 - LRB100 06307 AMC 16345 b (B) Sales of tangible personal property are in this State if:

SB0007 - 145 - LRB100 06307 AMC 16345 b (i) The property is delivered or shipped to a purchaser, other than the United States government, within this State regardless of the f.

(i) Gross receipts from the licensing, sale, or other disposition of a patent, copyright, trademark, SB0007 Engrossed - 139 - LRB100 06307 AMC 16345 b or similar item of intangible personal property, other than gross receipts governed by paragraph (B-7) of this SB0007 - 146 - LRB100 06307 AMC 16345 b 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.

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 SB0007 Engrossed - 140 - LRB100 06307 AMC 16345 b materials printed or published in that state divided by the total of such gross receipts for all SB0007 - 147 - LRB100 06307 AMC 16345 b states in which the copyright is utilized.

provided that, when a SB0007 Engrossed - 141 - LRB100 06307 AMC 16345 b taxpayer is a member of a unitary business group, such determination shall be made on the basis of the gross SB0007 - 148 - LRB100 06307 AMC 16345 b receipts of the entire unitary business group.

"Communications Channel" means a physical or virtual path of communications over which signals are SB0007 Engrossed - 142 - LRB100 06307 AMC 16345 b transmitted between or among customer channel termination points.

SB0007 - 149 - LRB100 06307 AMC 16345 b "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.

SB0007 Engrossed - 143 - LRB100 06307 AMC 16345 b "Place of primary use" means the street address representative of where the customer's use of the SB0007 - 150 - LRB100 06307 AMC 16345 b telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer.

"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 SB0007 Engrossed - 144 - LRB100 06307 AMC 16345 b predetermined units or dollars of which the number declines with use in a known amount.

SB0007 - 151 - LRB100 06307 AMC 16345 b "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.

(b) If the location in line (a) is not known, service address means the origination point of the SB0007 Engrossed - 145 - LRB100 06307 AMC 16345 b signal of the telecommunications services first identified by either the seller's SB0007 - 152 - LRB100 06307 AMC 16345 b 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;

(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 SB0007 Engrossed - 146 - LRB100 06307 AMC 16345 b purchaser's primary purpose for the underlying transaction is the processed data or information;

SB0007 - 153 - LRB100 06307 AMC 16345 b (b) Installation or maintenance of wiring or equipment on a customer's premises;

"Vertical service" means an "ancillary service" SB0007 Engrossed - 147 - LRB100 06307 AMC 16345 b that is offered in connection with one or more "telecommunications services", which offers advanced SB0007 - 154 - LRB100 06307 AMC 16345 b calling features that allow customers to identify callers and to manage multiple calls and call connections, including "conference bridging services".

(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 SB0007 Engrossed - 148 - LRB100 06307 AMC 16345 b telecommunication signals is not the seller's, is located in this State.

SB0007 - 155 - LRB100 06307 AMC 16345 b (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.

(d) The receipts from charges for service segments with a channel termination point located SB0007 Engrossed - 149 - LRB100 06307 AMC 16345 b in this State and in two or more other states, and which segments are not separately billed, are in SB0007 - 156 - LRB100 06307 AMC 16345 b 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.

(b) 50% of the receipts from access fees attributable to interstate telecommunications service if the interstate call either originates SB0007 Engrossed - 150 - LRB100 06307 AMC 16345 b or terminates in this State.

(c) 100% of the receipts from interstate end SB0007 - 157 - LRB100 06307 AMC 16345 b user access line charges, if the customer's service address is in this State.

"Advertising revenue" means consideration received by the taxpayer in exchange for broadcasting services SB0007 Engrossed - 151 - LRB100 06307 AMC 16345 b or allowing the broadcasting of commercials or announcements in connection with the broadcasting of SB0007 - 158 - LRB100 06307 AMC 16345 b film or radio programming, from sponsorships of the programming, or from product placements in the programming.

"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, SB0007 Engrossed - 152 - LRB100 06307 AMC 16345 b commercial, educational, or artistic works, either live or through the use of video tape, disc, or any SB0007 - 159 - LRB100 06307 AMC 16345 b other type of format or medium.

(ii) In the case where film or radio programming is broadcast by a station, a network, SB0007 Engrossed - 153 - LRB100 06307 AMC 16345 b or a cable system for a fee or other remuneration received from the recipient of the broadcast, the SB0007 - 160 - LRB100 06307 AMC 16345 b 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 amount of revenue related to such an arrangement that is included in the Illinois numerator of the sales factor is the total fee or SB0007 Engrossed - 154 - LRB100 06307 AMC 16345 b other total remuneration from the person providing the programming related to that broadcast SB0007 - 161 - LRB100 06307 AMC 16345 b multiplied by the Illinois audience factor for that broadcast.

Accordingly, in such a case the revenue derived by SB0007 Engrossed - 155 - LRB100 06307 AMC 16345 b the taxpayer that is included in the taxpayer's Illinois numerator of the sales factor is the SB0007 - 162 - LRB100 06307 AMC 16345 b revenue from such customers who receive the broadcasting service in Illinois.

SB0007 Engrossed - 156 - LRB100 06307 AMC 16345 b (C-5) For taxable years ending on or after December 31, 2008, sales, other than sales governed by paragraphs (B), SB0007 - 163 - LRB100 06307 AMC 16345 b (B-1), (B-2), (B-5), and (B-7), are in this State if any of the following criteria are met:

For purposes of this subparagraph, a customer is in this State if the SB0007 Engrossed - 157 - LRB100 06307 AMC 16345 b customer is an individual, trust or estate who is a resident of this State and, for all other SB0007 - 164 - LRB100 06307 AMC 16345 b customers, if the customer's commercial domicile is in this State.

If the state where the services are received is not readily determinable or is a state where the SB0007 Engrossed - 158 - LRB100 06307 AMC 16345 b corporation, partnership, or trust receiving the service does not have a fixed place of business, the SB0007 - 165 - LRB100 06307 AMC 16345 b 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.

(E) Paragraphs (B-1) and (B-2) shall apply to tax years ending on or after December 31, 1999, provided that a SB0007 Engrossed - 159 - LRB100 06307 AMC 16345 b taxpayer may elect to apply the provisions of these paragraphs to prior tax years.

Such election shall be made SB0007 - 166 - LRB100 06307 AMC 16345 b in the form and manner prescribed by the Department, shall be irrevocable, and shall apply to all tax years;

For purposes of this subsection, the term "direct premiums written" means the total amount of direct premiums written, assessments and SB0007 Engrossed - 160 - LRB100 06307 AMC 16345 b annuity considerations as reported for the taxable year on the annual statement filed by the company with the Illinois SB0007 - 167 - LRB100 06307 AMC 16345 b 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.

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 SB0007 Engrossed - 161 - LRB100 06307 AMC 16345 b insurance upon property or risk in this State by each ceding company from which reinsurance is accepted bears to SB0007 - 168 - LRB100 06307 AMC 16345 b the sum of the total direct premiums written by each such ceding company for the taxable year.

(B) Gross profits from trading in stocks, bonds or SB0007 Engrossed - 162 - LRB100 06307 AMC 16345 b other securities managed within this State;

(C) Dividends, and interest from Illinois SB0007 - 169 - LRB100 06307 AMC 16345 b customers, which are received within this State;

The floor amount shall be the amount, if any, determined by multiplying the income of SB0007 Engrossed - 163 - LRB100 06307 AMC 16345 b the international banking facility by a fraction, not greater than one, which is determined as follows:

SB0007 - 170 - LRB100 06307 AMC 16345 b (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 SB0007 Engrossed - 164 - LRB100 06307 AMC 16345 b preceding clause (the minuend);

and (ii) the denominator shall be the average SB0007 - 171 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 165 - LRB100 06307 AMC 16345 b (3) For taxable years ending on or after December 31, 2008, the business income of a financial organization shall SB0007 - 172 - LRB100 06307 AMC 16345 b 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.

(ii) Interest income, commissions, fees, gains on disposition, and other receipts from assets in the nature of loans that are secured primarily by real SB0007 Engrossed - 166 - LRB100 06307 AMC 16345 b estate or tangible personal property are from sources in this State if the security is located in this State.

SB0007 - 173 - LRB100 06307 AMC 16345 b (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.

(vi) Receipts from the performance of services, SB0007 Engrossed - 167 - LRB100 06307 AMC 16345 b including, but not limited to, fiduciary, advisory, and brokerage services, are in this State if the SB0007 - 174 - LRB100 06307 AMC 16345 b services are received in this State within the meaning of subparagraph (a)(3)(C-5)(iv) of this Section.

With respect to the investment and trading assets and activities described in subparagraphs (A) and (B) of this paragraph, the receipts factor shall SB0007 Engrossed - 168 - LRB100 06307 AMC 16345 b include the amounts described in such subparagraphs.

SB0007 - 175 - LRB100 06307 AMC 16345 b (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.

(A) The amount of interest, dividends, net gains (but not less than zero), and other income from investment assets and activities SB0007 Engrossed - 169 - LRB100 06307 AMC 16345 b in the investment account to be attributed to this State and included in the numerator is SB0007 - 176 - LRB100 06307 AMC 16345 b 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.

(C) The amount of interest, dividends, SB0007 Engrossed - 170 - LRB100 06307 AMC 16345 b gains, and other income from trading assets and activities, including but not limited to SB0007 - 177 - LRB100 06307 AMC 16345 b 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.

(i) the taxpayer has assigned, in the SB0007 Engrossed - 171 - LRB100 06307 AMC 16345 b regular course of its business, such asset or activity on its records to a fixed place SB0007 - 178 - LRB100 06307 AMC 16345 b of business consistent with federal or state regulatory requirements;

If the fixed place of business that has a preponderance of substantive contacts cannot SB0007 Engrossed - 172 - LRB100 06307 AMC 16345 b be determined for an investment or trading asset or activity to which the presumption in SB0007 - 179 - LRB100 06307 AMC 16345 b 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 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 SB0007 Engrossed - 173 - LRB100 06307 AMC 16345 b denominator of which is its business income from all sources.

For purposes of this subsection, the business income within SB0007 - 180 - LRB100 06307 AMC 16345 b this State of a federally regulated exchange is the sum of the following:

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, SB0007 Engrossed - 174 - LRB100 06307 AMC 16345 b determined without regard to the prohibition in Section 1501(a)(27) of this Act against including in a unitary business SB0007 - 181 - LRB100 06307 AMC 16345 b group taxpayers who are ordinarily required to apportion business income under different subsections of this Section;

(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 SB0007 Engrossed - 175 - LRB100 06307 AMC 16345 b miles of the person everywhere.

For purposes of this paragraph, a revenue mile is the transportation of 1 SB0007 - 182 - LRB100 06307 AMC 16345 b passenger or 1 net ton of freight the distance of 1 mile for a consideration.

SB0007 Engrossed - 176 - LRB100 06307 AMC 16345 b (3) For taxable years ending on or after December 31, 2008, business income derived from providing SB0007 - 183 - LRB100 06307 AMC 16345 b 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).

(A) relative railway operating income from total passenger and total freight service, as reported to the Surface Transportation Board, in the case of SB0007 Engrossed - 177 - LRB100 06307 AMC 16345 b transportation by railroad;

and (B) relative gross receipts from passenger and SB0007 - 184 - LRB100 06307 AMC 16345 b freight transportation, in case of transportation other than by railroad.

If the allocation and SB0007 Engrossed - 178 - LRB100 06307 AMC 16345 b apportionment provisions of subsections (a) through (e) and of subsection (h) do not, for taxable years ending before December SB0007 - 185 - LRB100 06307 AMC 16345 b 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:

SB0007 Engrossed - 179 - LRB100 06307 AMC 16345 b (2) for tax years ending on or after December 31, 1999 and before December 31, 2000, 8 1/3% of the property factor SB0007 - 186 - LRB100 06307 AMC 16345 b plus 8 1/3% of the payroll factor plus 83 1/3% of the sales factor;

(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 SB0007 Engrossed - 180 - LRB100 06307 AMC 16345 b individuals provided in subsection (b) of Section 201, provided that withholding is not required if such payment SB0007 - 187 - LRB100 06307 AMC 16345 b of winnings is less than $1,000.

1-1-14.) SB0007 Engrossed - 181 - LRB100 06307 AMC 16345 b Section 90-23.

The Property Tax Code is amended by adding SB0007 - 188 - LRB100 06307 AMC 16345 b Section 15-144 as follows:

Notwithstanding any other provision of this Act, the District may not regulate SB0007 Engrossed - 182 - LRB100 06307 AMC 16345 b the operation, conduct, or navigation of any riverboat gambling casino licensed under the Illinois Riverboat Gambling Act, and SB0007 - 189 - LRB100 06307 AMC 16345 b 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.

(b) The licensee must submit an application for a limited purpose branch to the Director on forms prescribed by the SB0007 Engrossed - 183 - LRB100 06307 AMC 16345 b Director with an application fee of $300.

The approval for the limited purpose branch must be renewed concurrently with the SB0007 - 190 - LRB100 06307 AMC 16345 b renewal of the licensee's license along with a renewal fee of $300 for the limited purpose branch.

The Illinois Horse Racing Act of 1975 is SB0007 Engrossed - 184 - LRB100 06307 AMC 16345 b amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19, 20, 21, 24, 25, 26, 26.8, 26.9, 27, 30, 30.5, 31, 32.1, 36, 40, SB0007 - 191 - LRB100 06307 AMC 16345 b and 54.75 and by adding Sections 3.31, 3.32, 3.33, 3.35, 3.36, 34.3, and 56 as follows:

and (f) ensure that public confidence and trust in the credibility and integrity of racing operations and the SB0007 Engrossed - 185 - LRB100 06307 AMC 16345 b regulatory process is maintained.

6-25-99.) SB0007 - 192 - LRB100 06307 AMC 16345 b (230 ILCS 5/3.11) (from Ch.

"Adjusted gross receipts" means the gross receipts less winnings paid to SB0007 Engrossed - 186 - LRB100 06307 AMC 16345 b wagerers.

SB0007 - 193 - LRB100 06307 AMC 16345 b (230 ILCS 5/3.32 new) Sec.

SB0007 Engrossed - 187 - LRB100 06307 AMC 16345 b (230 ILCS 5/6) (from Ch.

37-6) SB0007 - 194 - LRB100 06307 AMC 16345 b Sec.

No Board member shall hold any other public office for which he shall receive compensation other than necessary travel or other SB0007 Engrossed - 188 - LRB100 06307 AMC 16345 b incidental expenses.

(b) No person shall be a member of the Board who is not of SB0007 - 195 - LRB100 06307 AMC 16345 b 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.

(d) Board members and employees may not engage in communications or any activity that may cause or have the SB0007 Engrossed - 189 - LRB100 06307 AMC 16345 b appearance of causing a conflict of interest.

A conflict of interest exists if a situation influences or creates the SB0007 - 196 - LRB100 06307 AMC 16345 b appearance that it may influence judgment or performance of regulatory duties and responsibilities.

5-30-95.) SB0007 Engrossed - 190 - LRB100 06307 AMC 16345 b (230 ILCS 5/9) (from Ch.

The Board shall have all powers necessary and SB0007 - 197 - LRB100 06307 AMC 16345 b proper to fully and effectively execute the provisions of this Act, including, but not limited to, the following:

The Board shall not require and the Department of Agriculture shall be exempt from the requirements of Sections SB0007 Engrossed - 191 - LRB100 06307 AMC 16345 b 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 SB0007 - 198 - LRB100 06307 AMC 16345 b and 25.

(c) The Board, and any person or persons to whom it delegates this power, is vested with the power to enter the SB0007 Engrossed - 192 - LRB100 06307 AMC 16345 b facilities and other places of business of any licensee to determine whether there has been compliance with the provisions SB0007 - 199 - LRB100 06307 AMC 16345 b of this Act and its rules and regulations.

SB0007 Engrossed - 193 - LRB100 06307 AMC 16345 b (f) The Board is vested with the power to acquire, establish, maintain and operate (or provide by contract to SB0007 - 200 - LRB100 06307 AMC 16345 b 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.

A licensee shall also submit any other financial or related information the SB0007 Engrossed - 194 - LRB100 06307 AMC 16345 b Board deems necessary to effectively administer this Act and all rules, regulations, and final decisions promulgated under SB0007 - 201 - LRB100 06307 AMC 16345 b this Act.

The Board shall have no right or power to determine who shall be SB0007 Engrossed - 195 - LRB100 06307 AMC 16345 b officers, directors or employees of any licensee, or their salaries except the Board may, by rule, require that all or any SB0007 - 202 - LRB100 06307 AMC 16345 b officials or employees in charge of or whose duties relate to the actual running of races be approved by the Board.

(n) The Board shall have the power to issue a license to SB0007 Engrossed - 196 - LRB100 06307 AMC 16345 b any county fair, or its agent, authorizing the conduct of the pari-mutuel system of wagering.

The Board is vested with the SB0007 - 203 - LRB100 06307 AMC 16345 b 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.

(p) To insure the convenience, comfort, and wagering SB0007 Engrossed - 197 - LRB100 06307 AMC 16345 b accessibility of race track patrons, to provide for the maximization of State revenue, and to generate increases in SB0007 - 204 - LRB100 06307 AMC 16345 b purse allotments to the horsemen, the Board shall require any licensee to staff the pari-mutuel department with adequate personnel.

(b) Each application for an occupation license shall be on SB0007 Engrossed - 198 - LRB100 06307 AMC 16345 b forms prescribed by the Board.

Such license, when issued, shall be for the period ending December 31 of each year, except that SB0007 - 205 - LRB100 06307 AMC 16345 b the Board in its discretion may grant 3-year licenses.

SB0007 Engrossed - 199 - LRB100 06307 AMC 16345 b (3) who fails to disclose or states falsely any information called for in the application;

SB0007 - 206 - LRB100 06307 AMC 16345 b (4) who has been found guilty of a violation of this Act or of the rules and regulations of the Board;

The Department of State Police shall furnish, pursuant to positive SB0007 Engrossed - 200 - LRB100 06307 AMC 16345 b identification, records of conviction to the Board.

Each applicant for licensure shall submit with his occupation SB0007 - 207 - LRB100 06307 AMC 16345 b license application, on forms provided by the Board, 2 sets of his fingerprints.

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, SB0007 Engrossed - 201 - LRB100 06307 AMC 16345 b payment of which must be submitted to the Board within 7 days after such notification.

All information, records, interviews, SB0007 - 208 - LRB100 06307 AMC 16345 b 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.

Beginning on the date when any organization licensee begins conducting electronic gaming pursuant to an electronic gaming license issued under the Illinois Gambling Act, the application fee for racing dates imposed by this subsection (a) shall be $10,000 SB0007 Engrossed - 202 - LRB100 06307 AMC 16345 b and the application fee for racing dates in 2 or 3 successive calendar years as provided in subsection (b) of Section 21 SB0007 - 209 - LRB100 06307 AMC 16345 b shall be $20,000.

(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 SB0007 Engrossed - 203 - LRB100 06307 AMC 16345 b amended, shall not apply to any license under this Act.

8-24-12.) SB0007 - 210 - LRB100 06307 AMC 16345 b (230 ILCS 5/19) (from Ch.

to any person who is or has been connected with or engaged in the SB0007 Engrossed - 204 - LRB100 06307 AMC 16345 b operation of any illegal business;

to any person who does not enjoy a general reputation in his community of being an SB0007 - 211 - LRB100 06307 AMC 16345 b honest, upright, law-abiding person;

SB0007 Engrossed - 205 - LRB100 06307 AMC 16345 b (Source:

5-30-95.) SB0007 - 212 - LRB100 06307 AMC 16345 b (230 ILCS 5/20) (from Ch.

If made by an association, a SB0007 Engrossed - 206 - LRB100 06307 AMC 16345 b corporation, a corporate trustee, a limited liability company, or any other entity, it shall be signed by an authorized SB0007 - 213 - LRB100 06307 AMC 16345 b officer, a partner, a member, or a manager, as the case may be, of the entity the president and attested by the secretary or assistant secretary under the seal of such association, trust or corporation if it has a seal, and shall also be verified under oath by one of the signing officers.

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 SB0007 Engrossed - 207 - LRB100 06307 AMC 16345 b its incorporation shall be specified.

(d) The applicant shall execute and file with the Board a SB0007 - 214 - LRB100 06307 AMC 16345 b good faith affirmative action plan to recruit, train, and upgrade minorities in all classifications within the association.

(e-1) In awarding standardbred racing dates for calendar year 20182018, and thereafter, the Board shall award at least 310160 racing days,dates, and each organization licensee shall average at least 1210 races for SB0007 Engrossed - 208 - LRB100 06307 AMC 16345 b each racing daydate awarded.

TheIn Boardawarding shallstandardbred haveracing dates for calendar year 2019, the discretionBoard toshall allocateaward thoseat racingleast days200 amongracing SB0007dates, -and 215each -organization LRB100licensee 06307shall AMCaverage 16345at bleast organization11 licenseesraces requestingfor standardbredeach racing dates.date awarded.

OnceIn awardedawarding bystandardbred racing dates for calendar year 2020 and thereafter, the Board,Board organizationshall licenseesaward awardedat standardbredleast 260 racing datesdates, and each organization licensee shall runaverage at least 3,50011 races infor totaleach duringracing thatdate calendarawarded year.unless a lesser schedule of live racing is a result of an agreement with the organization representing the largest number of standardbred owners, breeders, trainers, drivers, caretakers in the State.

(i) 2,050 races in any year following the most recent preceding complete calendar year when the combined SB0007 Engrossed - 209 - LRB100 06307 AMC 16345 b adjusted gross receipts of the electronic gaming licensees operating at Cook County race tracks total in excess of $200,000,000, but do not exceed $250,000,000;

(ii) 2,125 races in any year following the most recent preceding complete calendar year when the combined adjusted gross receipts of the electronic gaming licensees operating at Cook County race tracks total in excess of SB0007 - 216 - LRB100 06307 AMC 16345 b $250,000,000, but do not exceed $300,000,000;

(vi) 2,450 races in any year following the most recent preceding complete calendar year when the combined adjusted gross receipts of the electronic gaming licensees SB0007 Engrossed - 210 - LRB100 06307 AMC 16345 b operating at Cook County race tracks total in excess of $450,000,000, but do not exceed $500,000,000;

In awarding racing dates under this subsection (e-2), the SB0007 - 217 - LRB100 06307 AMC 16345 b Board shall have the discretion to allocate those thoroughbred racing dates among these Cook County organization licensees.

(e-4) Notwithstanding the provisions of Section 7.7 of the Illinois Gambling Act or any provision of this Act other than subsections (e-3) and (e-4.5), for each calendar year for which an electronic gaming licensee requests thoroughbred racing datesSB0007 forEngrossed a- specific211 horse- breedLRB100 06307 AMC 16345 b dates which results in a number of live races for that specific breed under its organization license that is less than the total number of live races for that specific breed which it conducted in 2011 for standardbred racing and in 2016 for thoroughbred racing at its race track facility, the electronic gaming licensee may not conduct electronic gaming for the calendar year of such requested live races.

SB0007(e-4.1) -Notwithstanding 218the -provisions LRB100of 06307Section AMC7.7 16345of bthe (e-4.5)Illinois TheGambling BoardAct shallor ensureany thatprovision of this Act other than subsections (e-3) and (e-4.5), for each calendar year for which an organization licensee shallrequests individuallyracing rundates for standardbred racing which results in a sufficientnumber of live races that is less than the total number of live races perrequired yearin tosubsection qualify(e-1), forthe anelectronic gaming licensee may not conduct electronic gaming licensefor underthe thiscalendar Act.year of such requested live races.

(e-4.5) The Board shall ensure that each organization licensee shall individually run a sufficient number of races per year to qualify for an electronic gaming license under this Act.

(i) a decrease is necessary to maintain a sufficient SB0007 Engrossed - 212 - LRB100 06307 AMC 16345 b number of betting interests per race to ensure the integrity of racing;

or (iv) the horse population or purse levels are SB0007 - 219 - LRB100 06307 AMC 16345 b insufficient to provide the number of racing opportunities otherwise required in this Act.

The written explanation shall include a listing and content of all communication between any party and any Illinois SB0007 Engrossed - 213 - LRB100 06307 AMC 16345 b Racing Board member or staff that does not take place at a public meeting of the Board.

SB0007 - 220 - LRB100 06307 AMC 16345 b (2) the applicant's facilities or proposed facilities for conducting horse racing;

(6) the applicant's proposed and prior year's promotional and marketing activities and expenditures of SB0007 Engrossed - 214 - LRB100 06307 AMC 16345 b the applicant associated with those activities;

(e-10) The Illinois Administrative Procedure Act shall SB0007 - 221 - LRB100 06307 AMC 16345 b 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 SB0007 Engrossed - 215 - LRB100 06307 AMC 16345 b under this Act;

and (5) the provisions of subsection SB0007 - 222 - LRB100 06307 AMC 16345 b (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.

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 SB0007 Engrossed - 216 - LRB100 06307 AMC 16345 b future expectation to receive an organization license in any subsequent year as a result of the granting of an organization license.

(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 SB0007 - 223 - LRB100 06307 AMC 16345 b 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 SB0007 Engrossed - 217 - LRB100 06307 AMC 16345 b 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.

SB0007 - 224 - LRB100 06307 AMC 16345 b (2) pay to the Board an additional amount equal to $110 for each racing date awarded;

8-12-11.) SB0007 Engrossed - 218 - LRB100 06307 AMC 16345 b (230 ILCS 5/21) (from Ch.

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 SB0007 - 225 - LRB100 06307 AMC 16345 b Board, and require the submittal of an amended application within a reasonable time determined by the Board;

However, if all eligible applicants for organization licenses whose tracks are located SB0007 Engrossed - 219 - LRB100 06307 AMC 16345 b 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.

(c) Where 2 or more applicants propose to conduct horse race meetings within 35 miles of each other, as certified to SB0007 - 226 - LRB100 06307 AMC 16345 b 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.

(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 SB0007 Engrossed - 220 - LRB100 06307 AMC 16345 b 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.

SB0007 - 227 - LRB100 06307 AMC 16345 b (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.

(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 SB0007 Engrossed - 221 - LRB100 06307 AMC 16345 b within the organization license.

(b) An organization licensee must notify the Board within 10 days of any change in the holders of a direct or indirect SB0007 - 228 - LRB100 06307 AMC 16345 b interest in the ownership of the organization licensee.

(d) No person which has been granted an organization SB0007 Engrossed - 222 - LRB100 06307 AMC 16345 b 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.

(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 SB0007 - 229 - LRB100 06307 AMC 16345 b under Article 10 of the State Officials and Employees Ethics Act.

If tickets are issued for more than one day then the SB0007 Engrossed - 223 - LRB100 06307 AMC 16345 b sum of fifteen cents (15¢) shall be paid for each person using such ticket on each day that the same shall be used.

Beginning on the date when any organization licensee begins conducting electronic gaming pursuant to an electronic gaming license SB0007 - 230 - LRB100 06307 AMC 16345 b 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.

The Board or its duly authorized SB0007 Engrossed - 224 - LRB100 06307 AMC 16345 b 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 may also from time to time require sworn statements of the number SB0007 - 231 - LRB100 06307 AMC 16345 b or numbers of such admissions and may prescribe blanks upon which such reports shall be made.

Beginning on the date when any organization SB0007 Engrossed - 225 - LRB100 06307 AMC 16345 b licensee begins conducting electronic gaming pursuant to an electronic gaming license issued under the Illinois Gambling Act, any fine imposed pursuant to this subsection (b) shall not exceed $10,000.

Subject to the prior consent of the SB0007 - 232 - LRB100 06307 AMC 16345 b Board, licensees may supplement any pari-mutuel pool in order to guarantee a minimum distribution.

(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 SB0007 Engrossed - 226 - LRB100 06307 AMC 16345 b making, wagering or gambling shall be used or permitted by the licensee.

(c) Until January 1, 2000, the sum held by any licensee for payment of outstanding pari-mutuel tickets, if unclaimed prior SB0007 - 233 - LRB100 06307 AMC 16345 b to December 31 of the next year, shall be retained by the licensee for payment of such tickets until that date.

(c-5) Beginning January 1, 2000, the sum held by any licensee for payment of outstanding pari-mutuel tickets, if unclaimed prior to December 31 of the next year, shall be retained by the licensee for payment of such tickets until that SB0007 Engrossed - 227 - LRB100 06307 AMC 16345 b date.

(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 SB0007 - 234 - LRB100 06307 AMC 16345 b 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.

Beginning January 1, 2000, these wagers SB0007 Engrossed - 228 - LRB100 06307 AMC 16345 b shall not be subject to State taxation.

An organization licensee may permit one or more of its SB0007 - 235 - LRB100 06307 AMC 16345 b 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.

The Board may prohibit a simulcast program only if it finds SB0007 Engrossed - 229 - LRB100 06307 AMC 16345 b that the simulcast program is clearly adverse to the integrity of racing.

For one year after August 15, 2014 (the effective date of Public Act 98-968) this amendatory Act of the 98th General Assembly, 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 SB0007 - 236 - LRB100 06307 AMC 16345 b tracks located within North America upon which wagering is permitted.

All organization licensees SB0007 Engrossed - 230 - LRB100 06307 AMC 16345 b 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.

However, organization licensees providing live signals pursuant to the requirements of this subsection (g) may petition the Board to SB0007 - 237 - LRB100 06307 AMC 16345 b 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.

Advance deposit wagering licensees may place advance deposit wagering terminals at SB0007 Engrossed - 231 - LRB100 06307 AMC 16345 b wagering facilities as a convenience to customers.

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 SB0007 - 238 - LRB100 06307 AMC 16345 b host track and all non-host licensees.

Notwithstanding any other provision of this Act, through December 31, 2018, an organization licensee, with the consent of the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting, may maintain a system whereby advance deposit wagering may take place or an organization licensee, with the consent of the horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting, may contract with another person to carry out a system of advance SB0007 Engrossed - 232 - LRB100 06307 AMC 16345 b deposit wagering.

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) this amendatory Act of the 98th General Assembly taken in reliance on the changes made to this SB0007 - 239 - LRB100 06307 AMC 16345 b subsection (g) by Public Act 98-18 this amendatory Act of the 98th General Assembly are hereby validated, provided payment of all applicable pari-mutuel taxes are remitted to the Board.

The General Assembly finds that the adoption of rules to regulate advance SB0007 Engrossed - 233 - LRB100 06307 AMC 16345 b deposit wagering is deemed an emergency and necessary for the public interest, safety, and welfare.

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 SB0007 - 240 - LRB100 06307 AMC 16345 b 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 SB0007 Engrossed - 234 - LRB100 06307 AMC 16345 b 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.

an inter-track intertrack 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 SB0007 - 241 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 235 - LRB100 06307 AMC 16345 b (2) Between the hours of 6:30 p.m.

If any licensee conducts the SB0007 - 242 - LRB100 06307 AMC 16345 b 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.

SB0007 Engrossed - 236 - LRB100 06307 AMC 16345 b (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.

(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 SB0007 - 243 - LRB100 06307 AMC 16345 b and by each non-host licensee through the host-track) and all applicable State and local taxes, except as provided in subsection (g) of Section 27 of this Act, the remainder of moneys retained from simulcast wagering pursuant to this subsection (g), and Section 26.2 shall be divided as follows:

(B) For wagers placed on interstate simulcast races, supplemental simulcasts as defined in subparagraphs (1) and (2), and separately pooled races SB0007 Engrossed - 237 - LRB100 06307 AMC 16345 b 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.

(7) Notwithstanding any provision of this Act to the contrary, after payment of all applicable State and local SB0007 - 244 - LRB100 06307 AMC 16345 b 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 as follows:

SB0007 Engrossed - 238 - LRB100 06307 AMC 16345 b (B) Between January 1 and the third Friday in February, inclusive, if no live thoroughbred racing is occurring in Illinois during this period, and the interstate simulcast is a thoroughbred race, the purse share to its interstate simulcast purse pool to be distributed under paragraph (10) of this subsection (g);

the purse share from wagers made during this time period to its standardbred purse SB0007 - 245 - LRB100 06307 AMC 16345 b accounts;

(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 SB0007 Engrossed - 239 - LRB100 06307 AMC 16345 b 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 (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 SB0007 - 246 - LRB100 06307 AMC 16345 b fairgrounds.

(7.2) Notwithstanding any other provision of this Act SB0007 Engrossed - 240 - LRB100 06307 AMC 16345 b 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 (B) Twenty percent shall be deposited into the SB0007 - 247 - LRB100 06307 AMC 16345 b Illinois Colt Stakes Purse Distribution Fund.

The moneys deposited into the Illinois Colt Stakes Purse Distribution Fund pursuant to this subparagraph (B) shall be deposited SB0007 Engrossed - 241 - LRB100 06307 AMC 16345 b 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.

(A) Eighty percent to that licensee's thoroughbred SB0007 - 248 - LRB100 06307 AMC 16345 b purse account to be used for thoroughbred purses;

Moneys paid into the Illinois Colt Stakes Purse Distribution Fund pursuant to this paragraph (7.3) shall be paid to purses for standardbred races for Illinois conceived and foaled horses conducted at any county SB0007 Engrossed - 242 - LRB100 06307 AMC 16345 b fairgrounds.

(7.4) If live standardbred racing is conducted at a racetrack located in Madison County at any time in calendar year 2001 before the payment required under paragraph (7.3) has been made, the organization licensee who is licensed to conduct racing at that racetrack shall pay all moneys derived by that racetrack from simulcast wagering and SB0007 - 249 - LRB100 06307 AMC 16345 b inter-track wagering during calendar years 2000 and 2001 that (1) are to be used for purses and (2) are generated between the hours of 6:30 p.m.

SB0007 Engrossed - 243 - LRB100 06307 AMC 16345 b (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 SB0007 - 250 - LRB100 06307 AMC 16345 b and that borders the Mississippi River.

(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 SB0007 Engrossed - 244 - LRB100 06307 AMC 16345 b 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 SB0007 - 251 - LRB100 06307 AMC 16345 b 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:

The Board's certification shall be provided no later than SB0007 Engrossed - 245 - LRB100 06307 AMC 16345 b January 31 of the succeeding year.

The amount paid to each purse account shall be the amount certified by the SB0007 - 252 - LRB100 06307 AMC 16345 b Illinois Racing Board in January to be transferred from each account to each eligible racing facility in accordance with the provisions of this Section.

An organization licensee and its related wagering facilities shall no longer be able to receive payments under this paragraph (13) beginning in the year SB0007 Engrossed - 246 - LRB100 06307 AMC 16345 b subsequent to the first year in which the organization licensee begins to receive funds from electronic gaming.

(ii) at a track located in a county that is bounded by the Mississippi River, which has a population of less than 150,000 SB0007 - 253 - LRB100 06307 AMC 16345 b 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 locatedawarded instandardbred Madison County that conducted at least 100 days of live racing duringdates thein immediately2018 precedingand calendarthereafter; 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)or an(iv) agreementat betweena thetrack organizationlocated licenseein andMadison theCounty associationsthat representingconducted theat largestleast number100 days of owners,live trainers,racing jockeys,during orthe standardbredimmediately driverspreceding whocalendar raceyear horsesmay atbe thatissued organizationan licensee'sinter-track wagering license, unless a lesser schedule of live racing meeting;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, SB0007 Engrossed - 247 - LRB100 06307 AMC 16345 b jockeys, or standardbred drivers who race horses at that organization licensee's racing meeting;

An applicationeligible forrace saidtrack licenseconducting shallstandardbred beracing filedmay SB0007have -up 254 - LRB100 06307 AMC 16345 b with the Board prior to such9 datesinter-track aswagering maylocations. be fixed by the Board.

An application for said license shall be filed with the Board prior to such dates as may be fixed by the Board.

SB0007 Engrossed - 248 - LRB100 06307 AMC 16345 b (2) The Board shall examine the applications with respect to their conformity with this Act and the rules and regulations imposed by the Board.

(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 SB0007 - 255 - LRB100 06307 AMC 16345 b and a surety company or companies authorized to do business in this State, and conditioned upon (i) the payment by the licensee of all taxes due under Section 27 or 27.1 and any other monies due and payable under this Act, and (ii) distribution by the licensee, upon presentation of the winning ticket or tickets, of all sums payable to the patrons of pari-mutuel pools.

(5) Each license to conduct inter-track wagering and simulcast wagering shall specify the person to whom it is SB0007 Engrossed - 249 - LRB100 06307 AMC 16345 b issued, the dates on which such wagering is permitted, and the track or location where the wagering is to be conducted.

(8.1) Inter-track wagering location licensees who derive their licenses from a particular organization licensee shall conduct inter-track wagering and simulcast SB0007 - 256 - LRB100 06307 AMC 16345 b wagering only at locations that are within 160 miles of that race track where the particular organization licensee is licensed to conduct racing.

However, inter-track wagering and simulcast wagering shall not be conducted by those licensees at any location within 5 miles of any race track at which a horse race meeting has been licensed in the current year, unless the person having operating control of such race track has given its written consent to such inter-track wagering location licensees, which SB0007 Engrossed - 250 - LRB100 06307 AMC 16345 b 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 SB0007 - 257 - LRB100 06307 AMC 16345 b school, or an existing elementary or secondary private school registered with or recognized by the State Board of Education school, nor within 500 feet of the residences of more than 50 registered voters without receiving written permission from a majority of the registered voters at such residences.

The distance of 500 feet shall be measured to the nearest part of any building used for worship services, education programs, residential SB0007 Engrossed - 251 - LRB100 06307 AMC 16345 b purposes, or conducting inter-track wagering by an inter-track wagering location licensee, and not to property boundaries.

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 SB0007 - 258 - LRB100 06307 AMC 16345 b any local zoning authority which has, by ordinance or by resolution, prohibited the establishment of an inter-track wagering location within its jurisdiction.

(10) An inter-track wagering licensee or an SB0007 Engrossed - 252 - LRB100 06307 AMC 16345 b 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.

In the event that an inter-track wagering location licensee is situated in an unincorporated area of a county, such licensee shall pay 2% SB0007 - 259 - LRB100 06307 AMC 16345 b of the pari-mutuel handle from such location to such county.

(10.2) Notwithstanding any other provision of this Act, with respect to inter-track intertrack 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 SB0007 Engrossed - 253 - LRB100 06307 AMC 16345 b 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:

SB0007 - 260 - LRB100 06307 AMC 16345 b (11) (A) After payment of the privilege or pari-mutuel tax, any other applicable taxes, and the costs and expenses in connection with the gathering, transmission, and dissemination of all data necessary to the conduct of inter-track wagering, the remainder of the monies retained under either Section 26 or Section 26.2 of this Act by the inter-track wagering licensee on inter-track wagering shall be allocated with 50% to be split between the 2 participating licensees and 50% to purses, except that an SB0007 Engrossed - 254 - LRB100 06307 AMC 16345 b inter-track intertrack 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 intertrack 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.