Bill Text: IL HB5561 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends various Acts to eliminate the changes made by Public Acts 101-30, 101-31, and 101-32. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-02-18 - Referred to Rules Committee [HB5561 Detail]

Download: Illinois-2019-HB5561-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5561 Introduced , by Rep. Allen Skillicorn SYNOPSIS AS INTRODUCED:
See Index
Amends various Acts to eliminate the changes made by Public Acts 101-30, 101-31, and 101-32. Makes other changes. Effective immediately.
LRB101 17547 JWD 66965 b
A BILL FOR
HB5561 LRB101 17547 JWD 66965 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 5.
Section 5-1. "An Act concerning finance", approved June 28,
2019, Public Act 101-30, is amended by repealing Section 1.
(30 ILCS 105/5.891 rep.)
(30 ILCS 105/5.893 rep.)
(30 ILCS 105/5.894 rep.)
(30 ILCS 105/5.895 rep.)
(30 ILCS 105/5.896 rep.)
(30 ILCS 105/6z-108 rep.)
(30 ILCS 105/6z-109 rep.)
(30 ILCS 105/6z-110 rep.)
(30 ILCS 105/6z-111 rep.)
Section 5-2. The State Finance Act is amended by repealing
Sections 5.891, 5.893, 5.894, 5.895, 5.896, 6z-108, 6z-109,
6z-110, and 6z-111, all as added by Public Act 101-30.
Section 5-5. The State Finance Act is amended by changing
Section 6z-78 as follows:

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(30 ILCS 105/6z-78)
Sec. 6z-78. Capital Projects Fund; bonded indebtedness;
transfers. Money in the Capital Projects Fund shall, if and
when the State of Illinois incurs any bonded indebtedness using
the bond authorizations for capital projects enacted in Public
Act 96-36, Public Act 96-1554, Public Act 97-771, Public Act
98-94, and using the general obligation bond authorizations for
capital projects enacted in Public Act 101-30, be set aside and
used for the purpose of paying and discharging annually the
principal and interest on that bonded indebtedness then due and
payable.
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
general obligation bonds for capital projects using bond
authorizations enacted in Public Act 96-36, Public Act 96-1554,
Public Act 97-771, Public Act 98-94, and Public Act 101-30
(except for amounts in Public Act 101-30 that increase bond
authorization under paragraph (1) of subsection (a) of Section
4 and subsection (e) of Section 4 of the General Obligation
Bond Act), the State Comptroller shall compute and certify to
the State Treasurer the total amount of principal of, interest
on, and premium, if any, on such bonds during the then current
and each succeeding fiscal year. With respect to the interest
payable on variable rate bonds, such certifications shall be
calculated at the maximum rate of interest that may be payable

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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 the
period.
(a) Except as provided for in subsection (b), on or before
the last day of each month, the State Treasurer and State
Comptroller shall transfer from the Capital Projects Fund to
the General Obligation Bond Retirement and Interest Fund an
amount sufficient to pay the aggregate of the principal of,
interest on, and premium, if any, on the bonds payable on their
next payment date, divided by the number of monthly transfers
occurring between the last previous payment date (or the
delivery date if no payment date has yet occurred) and the next
succeeding payment date. Interest payable on variable rate
bonds shall be calculated at the maximum rate of interest that
may be payable for the relevant period, after taking into
account any credits permitted in the related indenture or other
instrument against the amount of such interest required to be
appropriated for that period. Interest for which moneys have
already been deposited into the capitalized interest account
within the General Obligation Bond Retirement and Interest Fund
shall not be included in the calculation of the amounts to be
transferred under this subsection.
(b) On or before the last day of each month, the State
Treasurer and State Comptroller shall transfer from the Capital
Projects Fund to the General Obligation Bond Retirement and

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Interest Fund an amount sufficient to pay the aggregate of the
principal of, interest on, and premium, if any, on the bonds
issued prior to January 1, 2012 pursuant to Section 4(d) of the
General Obligation Bond Act payable on their next payment date,
divided by the number of monthly transfers occurring between
the last previous payment date (or the delivery date if no
payment date has yet occurred) and the next succeeding payment
date. If the available balance in the Capital Projects Fund is
not sufficient for the transfer required in this subsection,
the State Treasurer and State Comptroller shall transfer the
difference from the Road Fund to the General Obligation Bond
Retirement and Interest Fund; except that such Road Fund
transfers shall constitute a debt of the Capital Projects Fund
which shall be repaid according to subsection (c). Interest
payable on variable rate bonds shall be calculated at the
maximum rate of interest that may be payable for the relevant
period, after taking into account any credits permitted in the
related indenture or other instrument against the amount of
such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
(c) On the first day of any month when the Capital Projects
Fund is carrying a debt to the Road Fund due to the provisions

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of subsection (b), the State Treasurer and State Comptroller
shall transfer from the Capital Projects Fund to the Road Fund
an amount sufficient to discharge that debt. These transfers to
the Road Fund shall continue until the Capital Projects Fund
has repaid to the Road Fund all transfers made from the Road
Fund pursuant to subsection (b). Notwithstanding any other law
to the contrary, transfers to the Road Fund from the Capital
Projects Fund shall be made prior to any other expenditures or
transfers out of the Capital Projects Fund.
(Source: P.A. 101-30, eff. 6-28-19; 101-604, eff. 12-13-19.)
Section 5-10. The General Obligation Bond Act is amended by
changing Sections 2, 2.5, 3, 4, 5, 6, 7.6, 9, 11, 12, 15, and 19
as follows:
(30 ILCS 330/2) (from Ch. 127, par. 652)
Sec. 2. Authorization for Bonds. The State of Illinois is
authorized to issue, sell and provide for the retirement of
General Obligation Bonds of the State of Illinois for the
categories and specific purposes expressed in Sections 2
through 8 of this Act, in the total amount of $78,256,839,969
$57,717,925,743.
The bonds authorized in this Section 2 and in Section 16 of
this Act are herein called "Bonds".
Of the total amount of Bonds authorized in this Act, up to
$2,200,000,000 in aggregate original principal amount may be

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issued and sold in accordance with the Baccalaureate Savings
Act in the form of General Obligation College Savings Bonds.
Of the total amount of Bonds authorized in this Act, up to
$300,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Retirement Savings Act
in the form of General Obligation Retirement Savings Bonds.
Of the total amount of Bonds authorized in this Act, the
additional $10,000,000,000 authorized by Public Act 93-2, the
$3,466,000,000 authorized by Public Act 96-43, and the
$4,096,348,300 authorized by Public Act 96-1497 shall be used
solely as provided in Section 7.2.
Of the total amount of Bonds authorized in this Act, the
additional $6,000,000,000 authorized by Public Act 100-23 this
amendatory Act of the 100th General Assembly shall be used
solely as provided in Section 7.6 and shall be issued by
December 31, 2017.
Of the total amount of Bonds authorized in this Act,
$1,000,000,000 of the additional amount authorized by Public
Act 100-587 this amendatory Act of the 100th General Assembly
shall be used solely as provided in Section 7.7.
The issuance and sale of Bonds pursuant to the General
Obligation Bond Act is an economical and efficient method of
financing the long-term capital needs of the State. This Act
will permit the issuance of a multi-purpose General Obligation
Bond with uniform terms and features. This will not only lower
the cost of registration but also reduce the overall cost of

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issuing debt by improving the marketability of Illinois General
Obligation Bonds.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
101-30, eff. 6-28-19.)
(30 ILCS 330/2.5)
Sec. 2.5. Limitation on issuance of Bonds.
(a) Except as provided in subsection (b), no Bonds may be
issued if, after the issuance, in the next State fiscal year
after the issuance of the Bonds, the amount of debt service
(including principal, whether payable at maturity or pursuant
to mandatory sinking fund installments, and interest) on all
then-outstanding Bonds, other than (i) Bonds authorized by
Public Act 100-23, (ii) Bonds issued by Public Act 96-43, (iii)
Bonds authorized by Public Act 96-1497, and (iv) Bonds
authorized by Public Act 100-587 this amendatory Act of the
100th General Assembly, would exceed 7% of the aggregate
appropriations from the general funds, the State Construction
Account Fund, (which consist of the General Revenue Fund, the
Common School Fund, the General Revenue Common School Special
Account Fund, and the Education Assistance Fund) and the Road
Fund for the fiscal year immediately prior to the fiscal year
of the issuance. For the purposes of this subsection (a),
"general funds" has the same meaning as ascribed to that term
under Section 50-40 of the State Budget Law of the Civil
Administrative Code of Illinois.

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(b) If the Comptroller and Treasurer each consent in
writing, Bonds may be issued even if the issuance does not
comply with subsection (a). In addition, $2,000,000,000 in
Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
and $2,000,000,000 in Refunding Bonds under Section 16, may be
issued during State fiscal year 2017 without complying with
subsection (a). In addition, $2,000,000,000 in Bonds for the
purposes set forth in Sections 3, 4, 5, 6, and 7, and
$2,000,000,000 in Refunding Bonds under Section 16, may be
issued during State fiscal year 2018 without complying with
subsection (a).
(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
7-6-17; 100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-30,
eff. 6-28-19.)
(30 ILCS 330/3) (from Ch. 127, par. 653)
Sec. 3. Capital facilities. The amount of $18,580,011,269
$10,538,963,443 is authorized to be used for the acquisition,
development, construction, reconstruction, improvement,
financing, architectural planning and installation of capital
facilities within the State, consisting of buildings,
structures, durable equipment, land, interests in land, and the
costs associated with the purchase and implementation of
information technology, including but not limited to the
purchase of hardware and software, for the following specific

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purposes:
(a) $6,268,676,500 $3,433,228,000 for educational
purposes by State universities and public community
colleges, the Illinois Community College Board created by
the Public Community College Act and for grants to public
community colleges as authorized by Sections 5-11 and 5-12
of the Public Community College Act;
(b) $1,690,506,300 $1,648,420,000 for correctional
purposes at State prison and correctional centers;
(c) $688,492,300 $599,183,000 for open spaces,
recreational and conservation purposes and the protection
of land, including expenditures and grants for the Illinois
Conservation Reserve Enhancement Program and for ecosystem
restoration and for plugging of abandoned wells;
(d) $1,078,503,900 $764,317,000 for State child care
facilities, mental and public health facilities, and
facilities for the care of veterans with disabilities and
their spouses, and for grants to public and private
community health centers, hospitals, and other health care
providers for capital facilities;
(e) $7,518,753,300 $2,884,790,000 for use by the
State, its departments, authorities, public corporations,
commissions and agencies, including renewable energy
upgrades at State facilities;
(f) $818,100 for cargo handling facilities at port
districts and for breakwaters, including harbor entrances,

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at port districts in conjunction with facilities for small
boats and pleasure crafts;
(g) $375,457,000 $297,177,074 for water resource
management projects, including flood mitigation and State
dam and waterway projects;
(h) $16,940,269 for the provision of facilities for
food production research and related instructional and
public service activities at the State universities and
public community colleges;
(i) $75,134,700 $36,000,000 for grants by the
Secretary of State, as State Librarian, for central library
facilities authorized by Section 8 of the Illinois Library
System Act and for grants by the Capital Development Board
to units of local government for public library facilities;
(j) $25,000,000 for the acquisition, development,
construction, reconstruction, improvement, financing,
architectural planning and installation of capital
facilities consisting of buildings, structures, durable
equipment and land for grants to counties, municipalities
or public building commissions with correctional
facilities that do not comply with the minimum standards of
the Department of Corrections under Section 3-15-2 of the
Unified Code of Corrections;
(k) $5,011,600 $5,000,000 for grants in fiscal year
1988 by the Department of Conservation for improvement or
expansion of aquarium facilities located on property owned

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by a park district;
(l) $599,590,000 to State agencies for grants to local
governments for the acquisition, financing, architectural
planning, development, alteration, installation, and
construction of capital facilities consisting of
buildings, structures, durable equipment, and land; and
(m) $237,127,300 $228,500,000 for the Illinois Open
Land Trust Program as defined by the Illinois Open Land
Trust Act.
The amounts authorized above for capital facilities may be
used for the acquisition, installation, alteration,
construction, or reconstruction of capital facilities and for
the purchase of equipment for the purpose of major capital
improvements which will reduce energy consumption in State
buildings or facilities.
(Source: P.A. 99-143, eff. 7-27-15; 100-587, eff. 6-4-18;
101-30, eff. 6-28-19.)
(30 ILCS 330/4) (from Ch. 127, par. 654)
Sec. 4. Transportation. The amount of $27,048,062,400
$15,948,199,000 is authorized for use by the Department of
Transportation for the specific purpose of promoting and
assuring rapid, efficient, and safe highway, air and mass
transportation for the inhabitants of the State by providing
monies, including the making of grants and loans, for the
acquisition, construction, reconstruction, extension and

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improvement of the following transportation facilities and
equipment, and for the acquisition of real property and
interests in real property required or expected to be required
in connection therewith as follows:
(a) $11,921,354,200 $5,432,129,000 for State highways,
arterial highways, freeways, roads, bridges, structures
separating highways and railroads and roads, and bridges on
roads maintained by counties, municipalities, townships, or
road districts, and grants to counties, municipalities,
townships, or road districts for planning, engineering,
acquisition, construction, reconstruction, development,
improvement, extension, and all construction-related expenses
of the public infrastructure and other transportation
improvement projects for the following specific purposes:
(1) $9,819,221,200 $3,330,000,000 for use statewide,
(2) $3,677,000 for use outside the Chicago urbanized
area,
(3) $7,543,000 for use within the Chicago urbanized
area,
(4) $13,060,600 for use within the City of Chicago,
(5) $58,991,500 $58,987,500 for use within the
counties of Cook, DuPage, Kane, Lake, McHenry and Will,
(6) $18,860,900 for use outside the counties of Cook,
DuPage, Kane, Lake, McHenry and Will, and
(7) $2,000,000,000 for use on projects included in
either (i) the FY09-14 Proposed Highway Improvement

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Program as published by the Illinois Department of
Transportation in May 2008 or (ii) the FY10-15 Proposed
Highway Improvement Program to be published by the Illinois
Department of Transportation in the spring of 2009; except
that all projects must be maintenance projects for the
existing State system with the goal of reaching 90%
acceptable condition in the system statewide and further
except that all projects must reflect the generally
accepted historical distribution of projects throughout
the State.
(b) $5,966,379,900 $5,379,670,000 for rail facilities and
for mass transit facilities, as defined in Section 2705-305 of
the Department of Transportation Law (20 ILCS 2705/2705-305),
including rapid transit, rail, bus and other equipment used in
connection therewith by the State or any unit of local
government, special transportation district, municipal
corporation or other corporation or public authority
authorized to provide and promote public transportation within
the State or two or more of the foregoing jointly, for the
following specific purposes:
(1) $4,387,063,600 $4,283,870,000 statewide,
(2) $83,350,000 for use within the counties of Cook,
DuPage, Kane, Lake, McHenry and Will,
(3) $12,450,000 for use outside the counties of Cook,
DuPage, Kane, Lake, McHenry and Will, and
(4) $1,000,916,300 $1,000,000,000 for use on projects

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that shall reflect the generally accepted historical
distribution of projects throughout the State.
(c) $482,600,000 for airport or aviation facilities and any
equipment used in connection therewith, including engineering
and land acquisition costs, by the State or any unit of local
government, special transportation district, municipal
corporation or other corporation or public authority
authorized to provide public transportation within the State,
or two or more of the foregoing acting jointly, and for the
making of deposits into the Airport Land Loan Revolving Fund
for loans to public airport owners pursuant to the Illinois
Aeronautics Act.
(d) $4,660,328,300 $4,653,800,000 for use statewide for
State or local highways, arterial highways, freeways, roads,
bridges, and structures separating highways and railroads and
roads, and for grants to counties, municipalities, townships,
or road districts for planning, engineering, acquisition,
construction, reconstruction, development, improvement,
extension, and all construction-related expenses of the public
infrastructure and other transportation improvement projects
which are related to economic development in the State of
Illinois.
(e) $4,500,000,000 for use statewide for grade crossings,
port facilities, airport facilities, rail facilities, and mass
transit facilities, as defined in Section 2705-305 of the
Department of Transportation Law of the Civil Administrative

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Code of Illinois, including rapid transit, rail, bus and other
equipment used in connection therewith by the State or any unit
of local government, special transportation district,
municipal corporation or other corporation or public authority
authorized to provide and promote public transportation within
the State or two or more of the foregoing jointly.
(Source: P.A. 97-771, eff. 7-10-12; 98-94, eff. 7-17-13;
98-781, eff. 7-22-14; 101-30, eff. 6-28-19.)
(30 ILCS 330/5) (from Ch. 127, par. 655)
Sec. 5. School construction.
(a) The amount of $58,450,000 is authorized to make grants
to local school districts for the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning and installation of capital
facilities, including but not limited to those required for
special education building projects provided for in Article 14
of The School Code, consisting of buildings, structures, and
durable equipment, and for the acquisition and improvement of
real property and interests in real property required, or
expected to be required, in connection therewith.
(b) $22,550,000, or so much thereof as may be necessary,
for grants to school districts for the making of principal and
interest payments, required to be made, on bonds issued by such
school districts after January 1, 1969, pursuant to any
indenture, ordinance, resolution, agreement or contract to

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provide funds for the acquisition, development, construction,
reconstruction, rehabilitation, improvement, architectural
planning and installation of capital facilities consisting of
buildings, structures, durable equipment and land for
educational purposes or for lease payments required to be made
by a school district for principal and interest payments on
bonds issued by a Public Building Commission after January 1,
1969.
(c) $10,000,000 for grants to school districts for the
acquisition, development, construction, reconstruction,
rehabilitation, improvement, architectural planning and
installation of capital facilities consisting of buildings
structures, durable equipment and land for special education
building projects.
(d) $9,000,000 for grants to school districts for the
reconstruction, rehabilitation, improvement, financing and
architectural planning of capital facilities, including
construction at another location to replace such capital
facilities, consisting of those public school buildings and
temporary school facilities which, prior to January 1, 1984,
were condemned by the regional superintendent under Section
3-14.22 of The School Code or by any State official having
jurisdiction over building safety.
(e) $3,109,403,700 $3,050,000,000 for grants to school
districts for school improvement projects authorized by the
School Construction Law. The bonds shall be sold in amounts not

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to exceed the following schedule, except any bonds not sold
during one year shall be added to the bonds to be sold during
the remainder of the schedule:
First year...................................$200,000,000
Second year..................................$450,000,000
Third year...................................$500,000,000
Fourth year..................................$500,000,000
Fifth year...................................$800,000,000
Sixth year and thereafter........$659,403,700 $600,000,000
(f) $1,615,000,000 grants to school districts for school
implemented projects authorized by the School Construction
Law.
(Source: P.A. 100-587, eff. 6-4-18; 101-30, eff. 6-28-19.)
(30 ILCS 330/6) (from Ch. 127, par. 656)
Sec. 6. Anti-Pollution.
(a) The amount of $581,814,300 $443,215,000 is authorized
for allocation by the Environmental Protection Agency for
grants or loans to units of local government, including grants
to disadvantaged communities without modern sewage systems, in
such amounts, at such times and for such purpose as the Agency
deems necessary or desirable for the planning, financing, and
construction of municipal sewage treatment works and solid
waste disposal facilities and for making of deposits into the
Water Revolving Fund and the U.S. Environmental Protection Fund
to provide assistance in accordance with the provisions of

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Title IV-A of the Environmental Protection Act.
(b) The amount of $236,500,000 is authorized for allocation
by the Environmental Protection Agency for payment of claims
submitted to the State and approved for payment under the
Leaking Underground Storage Tank Program established in Title
XVI of the Environmental Protection Act.
(Source: P.A. 98-94, eff. 7-17-13; 101-30, eff. 6-28-19.)
(30 ILCS 330/7.6)
Sec. 7.6. Income Tax Proceed Bonds.
(a) As used in this Act, "Income Tax Proceed Bonds" means
Bonds (i) authorized by this amendatory Act of the 100th
General Assembly or any other Public Act of the 100th General
Assembly authorizing the issuance of Income Tax Proceed Bonds
and (ii) used for the payment of unpaid obligations of the
State as incurred from time to time and as authorized by the
General Assembly.
(b) Income Tax Proceed Bonds in the amount of
$6,000,000,000 are hereby authorized to be used for the purpose
of paying vouchers incurred by the State prior to July 1, 2017.
Additional Income Tax Proceed Bonds in the amount of
$1,200,000,000 are hereby authorized to be used for the purpose
of paying vouchers incurred by the State and accruing interest
payable by the State prior to the date on which the Income Tax
Proceed Bonds are issued.
(c) The Income Tax Bond Fund is hereby created as a special

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fund in the State treasury. All moneys from the proceeds of the
sale of the Income Tax Proceed Bonds, less the amounts
authorized in the Bond Sale Order to be directly paid out for
bond sale expenses under Section 8, shall be deposited into the
Income Tax Bond Fund. All moneys in the Income Tax Bond Fund
shall be used for the purpose of paying vouchers incurred by
the State prior to July 1, 2017 or for paying vouchers incurred
by the State more than 90 days prior to the date on which the
Income Tax Proceed Bonds are issued. For the purpose of paying
such vouchers, the Comptroller has the authority to transfer
moneys from the Income Tax Bond Fund to general funds and the
Health Insurance Reserve Fund. "General funds" has the meaning
provided in Section 50-40 of the State Budget Law.
(Source: P.A. 100-23, eff. 7-6-17; 101-30, eff. 6-28-19;
101-604, eff. 12-13-19.)
(30 ILCS 330/9) (from Ch. 127, par. 659)
Sec. 9. Conditions for issuance and sale of Bonds;
requirements for Bonds.
(a) Except as otherwise provided in this subsection,
subsection (h), and subsection (i), Bonds shall be issued and
sold from time to time, in one or more series, in such amounts
and at such prices as may be directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. Bonds shall be in such form (either
coupon, registered or book entry), in such denominations,

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payable within 25 years from their date, subject to such terms
of redemption with or without premium, bear interest payable at
such times and at such fixed or variable rate or rates, and be
dated as shall be fixed and determined by the Director of the
Governor's Office of Management and Budget in the order
authorizing the issuance and sale of any series of Bonds, which
order shall be approved by the Governor and is herein called a
"Bond Sale Order"; provided however, that interest payable at
fixed or variable rates shall not exceed that permitted in the
Bond Authorization Act, as now or hereafter amended. Bonds
shall be payable at such place or places, within or without the
State of Illinois, and may be made registrable as to either
principal or as to both principal and interest, as shall be
specified in the Bond Sale Order. Bonds may be callable or
subject to purchase and retirement or tender and remarketing as
fixed and determined in the Bond Sale Order. Bonds, other than
Bonds issued under Section 3 of this Act for the costs
associated with the purchase and implementation of information
technology, (i) except for refunding Bonds satisfying the
requirements of Section 16 of this Act and sold during fiscal
year 2009, 2010, 2011, 2017, 2018, or 2019 must be issued with
principal or mandatory redemption amounts in equal amounts,
with the first maturity issued occurring within the fiscal year
in which the Bonds are issued or within the next succeeding
fiscal year and (ii) must mature or be subject to mandatory
redemption each fiscal year thereafter up to 25 years, except

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for refunding Bonds satisfying the requirements of Section 16
of this Act and sold during fiscal year 2009, 2010, or 2011
which must mature or be subject to mandatory redemption each
fiscal year thereafter up to 16 years. Bonds issued under
Section 3 of this Act for the costs associated with the
purchase and implementation of information technology must be
issued with principal or mandatory redemption amounts in equal
amounts, with the first maturity issued occurring with the
fiscal year in which the respective bonds are issued or with
the next succeeding fiscal year, with the respective bonds
issued maturing or subject to mandatory redemption each fiscal
year thereafter up to 10 years. Notwithstanding any provision
of this Act to the contrary, the Bonds authorized by Public Act
96-43 shall be payable within 5 years from their date and must
be issued with principal or mandatory redemption amounts in
equal amounts, with payment of principal or mandatory
redemption beginning in the first fiscal year following the
fiscal year in which the Bonds are issued.
Notwithstanding any provision of this Act to the contrary,
the Bonds authorized by Public Act 96-1497 shall be payable
within 8 years from their date and shall be issued with payment
of maturing principal or scheduled mandatory redemptions in
accordance with the following schedule, except the following
amounts shall be prorated if less than the total additional
amount of Bonds authorized by Public Act 96-1497 are issued:
Fiscal Year After Issuance Amount

HB5561 - 22 - LRB101 17547 JWD 66965 b
1-2 $0
3 $110,712,120
4 $332,136,360
5 $664,272,720
6-8 $996,409,080
Notwithstanding any provision of this Act to the contrary,
Income Tax Proceed Bonds issued under Section 7.6 shall be
payable 12 years from the date of sale and shall be issued with
payment of principal or mandatory redemption.
In the case of any series of Bonds bearing interest at a
variable interest rate ("Variable Rate Bonds"), in lieu of
determining the rate or rates at which such series of Variable
Rate Bonds shall bear interest and the price or prices at which
such Variable Rate Bonds shall be initially sold or remarketed
(in the event of purchase and subsequent resale), the Bond Sale
Order may provide that such interest rates and prices may vary
from time to time depending on criteria established in such
Bond Sale Order, which criteria may include, without
limitation, references to indices or variations in interest
rates as may, in the judgment of a remarketing agent, be
necessary to cause Variable Rate Bonds of such series to be
remarketable from time to time at a price equal to their
principal amount, and may provide for appointment of a bank,
trust company, investment bank, or other financial institution
to serve as remarketing agent in that connection. The Bond Sale
Order may provide that alternative interest rates or provisions

HB5561 - 23 - LRB101 17547 JWD 66965 b
for establishing alternative interest rates, different
security or claim priorities, or different call or amortization
provisions will apply during such times as Variable Rate Bonds
of any series are held by a person providing credit or
liquidity enhancement arrangements for such Bonds as
authorized in subsection (b) of this Section. The Bond Sale
Order may also provide for such variable interest rates to be
established pursuant to a process generally known as an auction
rate process and may provide for appointment of one or more
financial institutions to serve as auction agents and
broker-dealers in connection with the establishment of such
interest rates and the sale and remarketing of such Bonds.
(b) In connection with the issuance of any series of Bonds,
the State may enter into arrangements to provide additional
security and liquidity for such Bonds, including, without
limitation, bond or interest rate insurance or letters of
credit, lines of credit, bond purchase contracts, or other
arrangements whereby funds are made available to retire or
purchase Bonds, thereby assuring the ability of owners of the
Bonds to sell or redeem their Bonds. The State may enter into
contracts and may agree to pay fees to persons providing such
arrangements, but only under circumstances where the Director
of the Governor's Office of Management and Budget certifies
that he or she reasonably expects the total interest paid or to
be paid on the Bonds, together with the fees for the
arrangements (being treated as if interest), would not, taken

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together, cause the Bonds to bear interest, calculated to their
stated maturity, at a rate in excess of the rate that the Bonds
would bear in the absence of such arrangements.
The State may, with respect to Bonds issued or anticipated
to be issued, participate in and enter into arrangements with
respect to interest rate protection or exchange agreements,
guarantees, or financial futures contracts for the purpose of
limiting, reducing, or managing interest rate exposure. The
authority granted under this paragraph, however, shall not
increase the principal amount of Bonds authorized to be issued
by law. The arrangements may be executed and delivered by the
Director of the Governor's Office of Management and Budget on
behalf of the State. Net payments for such arrangements shall
constitute interest on the Bonds and shall be paid from the
General Obligation Bond Retirement and Interest Fund. The
Director of the Governor's Office of Management and Budget
shall at least annually certify to the Governor and the State
Comptroller his or her estimate of the amounts of such net
payments to be included in the calculation of interest required
to be paid by the State.
(c) Prior to the issuance of any Variable Rate Bonds
pursuant to subsection (a), the Director of the Governor's
Office of Management and Budget shall adopt an interest rate
risk management policy providing that the amount of the State's
variable rate exposure with respect to Bonds shall not exceed
20%. This policy shall remain in effect while any Bonds are

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outstanding and the issuance of Bonds shall be subject to the
terms of such policy. The terms of this policy may be amended
from time to time by the Director of the Governor's Office of
Management and Budget but in no event shall any amendment cause
the permitted level of the State's variable rate exposure with
respect to Bonds to exceed 20%.
(d) "Build America Bonds" in this Section means Bonds
authorized by Section 54AA of the Internal Revenue Code of
1986, as amended ("Internal Revenue Code"), and bonds issued
from time to time to refund or continue to refund "Build
America Bonds".
(e) Notwithstanding any other provision of this Section,
Qualified School Construction Bonds shall be issued and sold
from time to time, in one or more series, in such amounts and
at such prices as may be directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. Qualified School Construction Bonds
shall be in such form (either coupon, registered or book
entry), in such denominations, payable within 25 years from
their date, subject to such terms of redemption with or without
premium, and if the Qualified School Construction Bonds are
issued with a supplemental coupon, bear interest payable at
such times and at such fixed or variable rate or rates, and be
dated as shall be fixed and determined by the Director of the
Governor's Office of Management and Budget in the order
authorizing the issuance and sale of any series of Qualified

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School Construction Bonds, which order shall be approved by the
Governor and is herein called a "Bond Sale Order"; except that
interest payable at fixed or variable rates, if any, shall not
exceed that permitted in the Bond Authorization Act, as now or
hereafter amended. Qualified School Construction Bonds shall
be payable at such place or places, within or without the State
of Illinois, and may be made registrable as to either principal
or as to both principal and interest, as shall be specified in
the Bond Sale Order. Qualified School Construction Bonds may be
callable or subject to purchase and retirement or tender and
remarketing as fixed and determined in the Bond Sale Order.
Qualified School Construction Bonds must be issued with
principal or mandatory redemption amounts or sinking fund
payments into the General Obligation Bond Retirement and
Interest Fund (or subaccount therefor) in equal amounts, with
the first maturity issued, mandatory redemption payment or
sinking fund payment occurring within the fiscal year in which
the Qualified School Construction Bonds are issued or within
the next succeeding fiscal year, with Qualified School
Construction Bonds issued maturing or subject to mandatory
redemption or with sinking fund payments thereof deposited each
fiscal year thereafter up to 25 years. Sinking fund payments
set forth in this subsection shall be permitted only to the
extent authorized in Section 54F of the Internal Revenue Code
or as otherwise determined by the Director of the Governor's
Office of Management and Budget. "Qualified School

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Construction Bonds" in this subsection means Bonds authorized
by Section 54F of the Internal Revenue Code and for bonds
issued from time to time to refund or continue to refund such
"Qualified School Construction Bonds".
(f) Beginning with the next issuance by the Governor's
Office of Management and Budget to the Procurement Policy Board
of a request for quotation for the purpose of formulating a new
pool of qualified underwriting banks list, all entities
responding to such a request for quotation for inclusion on
that list shall provide a written report to the Governor's
Office of Management and Budget and the Illinois Comptroller.
The written report submitted to the Comptroller shall (i) be
published on the Comptroller's Internet website and (ii) be
used by the Governor's Office of Management and Budget for the
purposes of scoring such a request for quotation. The written
report, at a minimum, shall:
(1) disclose whether, within the past 3 months,
pursuant to its credit default swap market-making
activities, the firm has entered into any State of Illinois
credit default swaps ("CDS");
(2) include, in the event of State of Illinois CDS
activity, disclosure of the firm's cumulative notional
volume of State of Illinois CDS trades and the firm's
outstanding gross and net notional amount of State of
Illinois CDS, as of the end of the current 3-month period;
(3) indicate, pursuant to the firm's proprietary

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trading activities, disclosure of whether the firm, within
the past 3 months, has entered into any proprietary trades
for its own account in State of Illinois CDS;
(4) include, in the event of State of Illinois
proprietary trades, disclosure of the firm's outstanding
gross and net notional amount of proprietary State of
Illinois CDS and whether the net position is short or long
credit protection, as of the end of the current 3-month
period;
(5) list all time periods during the past 3 months
during which the firm held net long or net short State of
Illinois CDS proprietary credit protection positions, the
amount of such positions, and whether those positions were
net long or net short credit protection positions; and
(6) indicate whether, within the previous 3 months, the
firm released any publicly available research or marketing
reports that reference State of Illinois CDS and include
those research or marketing reports as attachments.
(g) All entities included on a Governor's Office of
Management and Budget's pool of qualified underwriting banks
list shall, as soon as possible after March 18, 2011 (the
effective date of Public Act 96-1554), but not later than
January 21, 2011, and on a quarterly fiscal basis thereafter,
provide a written report to the Governor's Office of Management
and Budget and the Illinois Comptroller. The written reports
submitted to the Comptroller shall be published on the

HB5561 - 29 - LRB101 17547 JWD 66965 b
Comptroller's Internet website. The written reports, at a
minimum, shall:
(1) disclose whether, within the past 3 months,
pursuant to its credit default swap market-making
activities, the firm has entered into any State of Illinois
credit default swaps ("CDS");
(2) include, in the event of State of Illinois CDS
activity, disclosure of the firm's cumulative notional
volume of State of Illinois CDS trades and the firm's
outstanding gross and net notional amount of State of
Illinois CDS, as of the end of the current 3-month period;
(3) indicate, pursuant to the firm's proprietary
trading activities, disclosure of whether the firm, within
the past 3 months, has entered into any proprietary trades
for its own account in State of Illinois CDS;
(4) include, in the event of State of Illinois
proprietary trades, disclosure of the firm's outstanding
gross and net notional amount of proprietary State of
Illinois CDS and whether the net position is short or long
credit protection, as of the end of the current 3-month
period;
(5) list all time periods during the past 3 months
during which the firm held net long or net short State of
Illinois CDS proprietary credit protection positions, the
amount of such positions, and whether those positions were
net long or net short credit protection positions; and

HB5561 - 30 - LRB101 17547 JWD 66965 b
(6) indicate whether, within the previous 3 months, the
firm released any publicly available research or marketing
reports that reference State of Illinois CDS and include
those research or marketing reports as attachments.
(h) Notwithstanding any other provision of this Section,
for purposes of maximizing market efficiencies and cost
savings, Income Tax Proceed Bonds may be issued and sold from
time to time, in one or more series, in such amounts and at
such prices as may be directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. Income Tax Proceed Bonds shall be in
such form, either coupon, registered, or book entry, in such
denominations, shall bear interest payable at such times and at
such fixed or variable rate or rates, and be dated as shall be
fixed and determined by the Director of the Governor's Office
of Management and Budget in the order authorizing the issuance
and sale of any series of Income Tax Proceed Bonds, which order
shall be approved by the Governor and is herein called a "Bond
Sale Order"; provided, however, that interest payable at fixed
or variable rates shall not exceed that permitted in the Bond
Authorization Act. Income Tax Proceed Bonds shall be payable at
such place or places, within or without the State of Illinois,
and may be made registrable as to either principal or as to
both principal and interest, as shall be specified in the Bond
Sale Order. Income Tax Proceed Bonds may be callable or subject
to purchase and retirement or tender and remarketing as fixed

HB5561 - 31 - LRB101 17547 JWD 66965 b
and determined in the Bond Sale Order.
(i) Notwithstanding any other provision of this Section,
for purposes of maximizing market efficiencies and cost
savings, State Pension Obligation Acceleration Bonds may be
issued and sold from time to time, in one or more series, in
such amounts and at such prices as may be directed by the
Governor, upon recommendation by the Director of the Governor's
Office of Management and Budget. State Pension Obligation
Acceleration Bonds shall be in such form, either coupon,
registered, or book entry, in such denominations, shall bear
interest payable at such times and at such fixed or variable
rate or rates, and be dated as shall be fixed and determined by
the Director of the Governor's Office of Management and Budget
in the order authorizing the issuance and sale of any series of
State Pension Obligation Acceleration Bonds, which order shall
be approved by the Governor and is herein called a "Bond Sale
Order"; provided, however, that interest payable at fixed or
variable rates shall not exceed that permitted in the Bond
Authorization Act. State Pension Obligation Acceleration Bonds
shall be payable at such place or places, within or without the
State of Illinois, and may be made registrable as to either
principal or as to both principal and interest, as shall be
specified in the Bond Sale Order. State Pension Obligation
Acceleration Bonds may be callable or subject to purchase and
retirement or tender and remarketing as fixed and determined in
the Bond Sale Order.

HB5561 - 32 - LRB101 17547 JWD 66965 b
(Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17;
100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587,
Article 60, Section 60-5, eff. 6-4-18; 100-587, Article 110,
Section 110-15, eff. 6-4-18; 100-863, eff. 8-14-18; 101-30,
eff. 6-28-19; 101-81, eff. 7-12-19.)
(30 ILCS 330/11) (from Ch. 127, par. 661)
Sec. 11. Sale of Bonds. Except as otherwise provided in
this Section, Bonds shall be sold from time to time pursuant to
notice of sale and public bid or by negotiated sale in such
amounts and at such times as is directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. At least 25%, based on total principal
amount, of all Bonds issued each fiscal year shall be sold
pursuant to notice of sale and public bid. At all times during
each fiscal year, no more than 75%, based on total principal
amount, of the Bonds issued each fiscal year, shall have been
sold by negotiated sale. Failure to satisfy the requirements in
the preceding 2 sentences shall not affect the validity of any
previously issued Bonds; provided that all Bonds authorized by
Public Act 96-43 and Public Act 96-1497 shall not be included
in determining compliance for any fiscal year with the
requirements of the preceding 2 sentences; and further provided
that refunding Bonds satisfying the requirements of Section 16
of this Act and sold during fiscal year 2009, 2010, 2011, 2017,
2018, or 2019 shall not be subject to the requirements in the

HB5561 - 33 - LRB101 17547 JWD 66965 b
preceding 2 sentences.
If any Bonds, including refunding Bonds, are to be sold by
negotiated sale, the Director of the Governor's Office of
Management and Budget shall comply with the competitive request
for proposal process set forth in the Illinois Procurement Code
and all other applicable requirements of that Code.
If Bonds are to be sold pursuant to notice of sale and
public bid, the Director of the Governor's Office of Management
and Budget may, from time to time, as Bonds are to be sold,
advertise the sale of the Bonds in at least 2 daily newspapers,
one of which is published in the City of Springfield and one in
the City of Chicago. The sale of the Bonds shall also be
advertised in the volume of the Illinois Procurement Bulletin
that is published by the Department of Central Management
Services, and shall be published once at least 10 days prior to
the date fixed for the opening of the bids. The Director of the
Governor's Office of Management and Budget may reschedule the
date of sale upon the giving of such additional notice as the
Director deems adequate to inform prospective bidders of such
change; provided, however, that all other conditions of the
sale shall continue as originally advertised.
Executed Bonds shall, upon payment therefor, be delivered
to the purchaser, and the proceeds of Bonds shall be paid into
the State Treasury as directed by Section 12 of this Act.
All Income Tax Proceed Bonds shall comply with this
Section. Notwithstanding anything to the contrary, however,

HB5561 - 34 - LRB101 17547 JWD 66965 b
for purposes of complying with this Section, Income Tax Proceed
Bonds, regardless of the number of series or issuances sold
thereunder, shall be considered a single issue or series.
Furthermore, for purposes of complying with the competitive
bidding requirements of this Section, the words "at all times"
shall not apply to any such sale of the Income Tax Proceed
Bonds. The Director of the Governor's Office of Management and
Budget shall determine the time and manner of any competitive
sale of the Income Tax Proceed Bonds; however, that sale shall
under no circumstances take place later than 60 days after the
State closes the sale of 75% of the Income Tax Proceed Bonds by
negotiated sale.
All State Pension Obligation Acceleration Bonds shall
comply with this Section. Notwithstanding anything to the
contrary, however, for purposes of complying with this Section,
State Pension Obligation Acceleration Bonds, regardless of the
number of series or issuances sold thereunder, shall be
considered a single issue or series. Furthermore, for purposes
of complying with the competitive bidding requirements of this
Section, the words "at all times" shall not apply to any such
sale of the State Pension Obligation Acceleration Bonds. The
Director of the Governor's Office of Management and Budget
shall determine the time and manner of any competitive sale of
the State Pension Obligation Acceleration Bonds; however, that
sale shall under no circumstances take place later than 60 days
after the State closes the sale of 75% of the State Pension

HB5561 - 35 - LRB101 17547 JWD 66965 b
Obligation Acceleration Bonds by negotiated sale.
(Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17;
100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587,
Article 60, Section 60-5, eff. 6-4-18; 100-587, Article 110,
Section 110-15, eff. 6-4-18; 100-863, eff. 8-4-18; 101-30, eff.
6-28-19; 101-81, eff. 7-12-19.)
(30 ILCS 330/12) (from Ch. 127, par. 662)
Sec. 12. Allocation of proceeds from sale of Bonds.
(a) Proceeds from the sale of Bonds, authorized by Section
3 of this Act, shall be deposited in the separate fund known as
the Capital Development Fund.
(b) Proceeds from the sale of Bonds, authorized by
paragraph (a) of Section 4 of this Act, shall be deposited in
the separate fund known as the Transportation Bond, Series A
Fund.
(c) Proceeds from the sale of Bonds, authorized by
paragraphs (b) and (c) of Section 4 of this Act, shall be
deposited in the separate fund known as the Transportation
Bond, Series B Fund.
(c-1) Proceeds from the sale of Bonds, authorized by
paragraph (d) of Section 4 of this Act, shall be deposited into
the Transportation Bond Series D Fund, which is hereby created.
(c-2) Proceeds from the sale of Bonds, authorized by
paragraph (e) of Section 4 of this Act, shall be deposited into
the Multi-modal Transportation Bond Fund, which is hereby

HB5561 - 36 - LRB101 17547 JWD 66965 b
created.
(d) Proceeds from the sale of Bonds, authorized by Section
5 of this Act, shall be deposited in the separate fund known as
the School Construction Fund.
(e) Proceeds from the sale of Bonds, authorized by Section
6 of this Act, shall be deposited in the separate fund known as
the Anti-Pollution Fund.
(f) Proceeds from the sale of Bonds, authorized by Section
7 of this Act, shall be deposited in the separate fund known as
the Coal Development Fund.
(f-2) Proceeds from the sale of Bonds, authorized by
Section 7.2 of this Act, shall be deposited as set forth in
Section 7.2.
(f-5) Proceeds from the sale of Bonds, authorized by
Section 7.5 of this Act, shall be deposited as set forth in
Section 7.5.
(f-7) Proceeds from the sale of Bonds, authorized by
Section 7.6 of this Act, shall be deposited as set forth in
Section 7.6.
(f-8) Proceeds from the sale of Bonds, authorized by
Section 7.7 of this Act, shall be deposited as set forth in
Section 7.7.
(g) Proceeds from the sale of Bonds, authorized by Section
8 of this Act, shall be deposited in the Capital Development
Fund.
(h) Subsequent to the issuance of any Bonds for the

HB5561 - 37 - LRB101 17547 JWD 66965 b
purposes described in Sections 2 through 8 of this Act, the
Governor and the Director of the Governor's Office of
Management and Budget may provide for the reallocation of
unspent proceeds of such Bonds to any other purposes authorized
under said Sections of this Act, subject to the limitations on
aggregate principal amounts contained therein. Upon any such
reallocation, such unspent proceeds shall be transferred to the
appropriate funds as determined by reference to paragraphs (a)
through (g) of this Section.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
101-30, eff. 6-28-19.)
(30 ILCS 330/15) (from Ch. 127, par. 665)
Sec. 15. Computation of principal and interest; transfers.
(a) Upon each delivery of Bonds authorized to be issued
under this Act, the Comptroller shall compute and certify to
the Treasurer the total amount of principal of, interest on,
and premium, if any, on Bonds issued that will be payable in
order to retire such Bonds, the amount of principal of,
interest on and premium, if any, on such Bonds that will be
payable on each payment date according to the tenor of such
Bonds during the then current and each succeeding fiscal year,
and the amount of sinking fund payments needed to be deposited
in connection with Qualified School Construction Bonds
authorized by subsection (e) of Section 9. With respect to the
interest payable on variable rate bonds, such certifications

HB5561 - 38 - LRB101 17547 JWD 66965 b
shall be calculated at the maximum rate of interest that may be
payable during the fiscal year, after taking into account any
credits permitted in the related indenture or other instrument
against the amount of such interest required to be appropriated
for such period pursuant to subsection (c) of Section 14 of
this Act. With respect to the interest payable, such
certifications shall include the amounts certified by the
Director of the Governor's Office of Management and Budget
under subsection (b) of Section 9 of this Act.
On or before the last day of each month the State Treasurer
and Comptroller shall transfer from (1) the Road Fund with
respect to Bonds issued under paragraphs paragraph (a) and (e)
of Section 4 of this Act, or Bonds issued under authorization
in Public Act 98-781, or Bonds issued for the purpose of
refunding such bonds, and from (2) the General Revenue Fund,
with respect to all other Bonds issued under this Act, to the
General Obligation Bond Retirement and Interest Fund an amount
sufficient to pay the aggregate of the principal of, interest
on, and premium, if any, on Bonds payable, by their terms on
the next payment date divided by the number of full calendar
months between the date of such Bonds and the first such
payment date, and thereafter, divided by the number of months
between each succeeding payment date after the first. Such
computations and transfers shall be made for each series of
Bonds issued and delivered. Interest payable on variable rate
bonds shall be calculated at the maximum rate of interest that

HB5561 - 39 - LRB101 17547 JWD 66965 b
may be payable for the relevant period, after taking into
account any credits permitted in the related indenture or other
instrument against the amount of such interest required to be
appropriated for such period pursuant to subsection (c) of
Section 14 of this Act. Computations of interest shall include
the amounts certified by the Director of the Governor's Office
of Management and Budget under subsection (b) of Section 9 of
this Act. Interest for which moneys have already been deposited
into the capitalized interest account within the General
Obligation Bond Retirement and Interest Fund shall not be
included in the calculation of the amounts to be transferred
under this subsection. Notwithstanding any other provision in
this Section, the transfer provisions provided in this
paragraph shall not apply to transfers made in fiscal year 2010
or fiscal year 2011 with respect to Bonds issued in fiscal year
2010 or fiscal year 2011 pursuant to Section 7.2 of this Act.
In the case of transfers made in fiscal year 2010 or fiscal
year 2011 with respect to the Bonds issued in fiscal year 2010
or fiscal year 2011 pursuant to Section 7.2 of this Act, on or
before the 15th day of the month prior to the required debt
service payment, the State Treasurer and Comptroller shall
transfer from the General Revenue Fund to the General
Obligation Bond Retirement and Interest Fund an amount
sufficient to pay the aggregate of the principal of, interest
on, and premium, if any, on the Bonds payable in that next
month.

HB5561 - 40 - LRB101 17547 JWD 66965 b
The transfer of monies herein and above directed is not
required if monies in the General Obligation Bond Retirement
and Interest Fund are more than the amount otherwise to be
transferred as herein above provided, and if the Governor or
his authorized representative notifies the State Treasurer and
Comptroller of such fact in writing.
(b) After the effective date of this Act, the balance of,
and monies directed to be included in the Capital Development
Bond Retirement and Interest Fund, Anti-Pollution Bond
Retirement and Interest Fund, Transportation Bond, Series A
Retirement and Interest Fund, Transportation Bond, Series B
Retirement and Interest Fund, and Coal Development Bond
Retirement and Interest Fund shall be transferred to and
deposited in the General Obligation Bond Retirement and
Interest Fund. This Fund shall be used to make debt service
payments on the State's general obligation Bonds heretofore
issued which are now outstanding and payable from the Funds
herein listed as well as on Bonds issued under this Act.
(c) The unused portion of federal funds received for or as
reimbursement for a capital facilities project, as authorized
by Section 3 of this Act, for which monies from the Capital
Development Fund have been expended shall remain in the Capital
Development Board Contributory Trust Fund and shall be used for
capital projects and for no other purpose, subject to
appropriation and as directed by the Capital Development Board.
Any federal funds received as reimbursement for the completed

HB5561 - 41 - LRB101 17547 JWD 66965 b
construction of a capital facilities project, as authorized by
Section 3 of this Act, for which monies from the Capital
Development Fund have been expended may be used for any expense
or project necessary for implementation of the Quincy Veterans'
Home Rehabilitation and Rebuilding Act for a period of 5 years
from the effective date of this amendatory Act of the 100th
General Assembly, and any remaining funds shall be deposited in
the General Obligation Bond Retirement and Interest Fund.
(Source: P.A. 100-23, eff. 7-6-17; 100-610, eff. 7-17-18;
101-30, eff. 6-28-19.)
(30 ILCS 330/19) (from Ch. 127, par. 669)
Sec. 19. Investment of Money Not Needed for Current
Expenditures - Application of Earnings. (a) The State Treasurer
may, with the Governor's approval, invest and reinvest any
money from the Capital Development Fund, the Transportation
Bond, Series A Fund, the Transportation Bond, Series B Fund,
the Multi-modal Transportation Bond Fund, the School
Construction Fund, the Anti-Pollution Fund, the Coal
Development Fund and the General Obligation Bond Retirement and
Interest Fund, in the State Treasury, which is not needed for
current expenditures due or about to become due from these
funds.
(b) Monies received from the sale or redemption of
investments from the Transportation Bond, Series A Fund and the
Multi-modal Transportation Bond Fund shall be deposited by the

HB5561 - 42 - LRB101 17547 JWD 66965 b
State Treasurer in the Road Fund.
Monies received from the sale or redemption of investments
from the Capital Development Fund, the Transportation Bond,
Series B Fund, the School Construction Fund, the Anti-Pollution
Fund, and the Coal Development Fund shall be deposited by the
State Treasurer in the General Revenue Fund.
Monies from the sale or redemption of investments from the
General Obligation Bond Retirement and Interest Fund shall be
deposited in the General Obligation Bond Retirement and
Interest Fund.
(c) Monies from the Capital Development Fund, the
Transportation Bond, Series A Fund, the Transportation Bond,
Series B Fund, the Multi-modal Transportation Bond Fund, the
School Construction Fund, the Anti-Pollution Fund, and the Coal
Development Fund may be invested as permitted in "AN ACT in
relation to State moneys", approved June 28, 1919, as amended
and in "AN ACT relating to certain investments of public funds
by public agencies", approved July 23, 1943, as amended. Monies
from the General Obligation Bond Retirement and Interest Fund
may be invested in securities constituting direct obligations
of the United States Government, or obligations, the principal
of and interest on which are guaranteed by the United States
Government, or certificates of deposit of any state or national
bank or savings and loan association. For amounts not insured
by the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation, as security the State

HB5561 - 43 - LRB101 17547 JWD 66965 b
Treasurer shall accept securities constituting direct
obligations of the United States Government, or obligations,
the principal of and interest on which are guaranteed by the
United States Government.
(d) Accrued interest paid to the State at the time of the
delivery of the Bonds shall be deposited into the General
Obligation Bond Retirement and Interest Fund in the State
Treasury.
(Source: P.A. 84-1248; 84-1474; 101-30, eff. 6-28-19.)
Section 5-15. The Build Illinois Bond Act is amended by
changing Sections 2, 4, 6, and 8 as follows:
(30 ILCS 425/2) (from Ch. 127, par. 2802)
Sec. 2. Authorization for Bonds. The State of Illinois is
authorized to issue, sell and provide for the retirement of
limited obligation bonds, notes and other evidences of
indebtedness of the State of Illinois in the total principal
amount of $9,484,681,100 $6,246,009,000 herein called "Bonds".
Such authorized amount of Bonds shall be reduced from time to
time by amounts, if any, which are equal to the moneys received
by the Department of Revenue in any fiscal year pursuant to
Section 3-1001 of the "Illinois Vehicle Code", as amended, in
excess of the Annual Specified Amount (as defined in Section 3
of the "Retailers' Occupation Tax Act", as amended) and
transferred at the end of such fiscal year from the General

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Revenue Fund to the Build Illinois Purposes Fund (now
abolished) as provided in Section 3-1001 of said Code;
provided, however, that no such reduction shall affect the
validity or enforceability of any Bonds issued prior to such
reduction. Such amount of authorized Bonds shall be exclusive
of any refunding Bonds issued pursuant to Section 15 of this
Act and exclusive of any Bonds issued pursuant to this Section
which are redeemed, purchased, advance refunded, or defeased in
accordance with paragraph (f) of Section 4 of this Act. Bonds
shall be issued for the categories and specific purposes
expressed in Section 4 of this Act.
(Source: P.A. 98-94, eff. 7-17-13; 101-30, eff. 6-28-19.)
(30 ILCS 425/4) (from Ch. 127, par. 2804)
Sec. 4. Purposes of Bonds. Bonds shall be issued for the
following purposes and in the approximate amounts as set forth
below:
(a) $4,372,761,200 $3,222,800,000 for the expenses of
issuance and sale of Bonds, including bond discounts, and for
planning, engineering, acquisition, construction,
reconstruction, development, improvement and extension of the
public infrastructure in the State of Illinois, including: the
making of loans or grants to local governments for waste
disposal systems, water and sewer line extensions and water
distribution and purification facilities, rail or air or water
port improvements, gas and electric utility extensions,

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publicly owned industrial and commercial sites, buildings used
for public administration purposes and other public
infrastructure capital improvements; the making of loans or
grants to units of local government for financing and
construction of wastewater facilities, including grants to
serve unincorporated areas; refinancing or retiring bonds
issued between January 1, 1987 and January 1, 1990 by home rule
municipalities, debt service on which is provided from a tax
imposed by home rule municipalities prior to January 1, 1990 on
the sale of food and drugs pursuant to Section 8-11-1 of the
Home Rule Municipal Retailers' Occupation Tax Act or Section
8-11-5 of the Home Rule Municipal Service Occupation Tax Act;
the making of deposits not to exceed $70,000,000 in the
aggregate into the Water Pollution Control Revolving Fund to
provide assistance in accordance with the provisions of Title
IV-A of the Environmental Protection Act; the planning,
engineering, acquisition, construction, reconstruction,
alteration, expansion, extension and improvement of highways,
bridges, structures separating highways and railroads, rest
areas, interchanges, access roads to and from any State or
local highway and other transportation improvement projects
which are related to economic development activities; the
making of loans or grants for planning, engineering,
rehabilitation, improvement or construction of rail and
transit facilities; the planning, engineering, acquisition,
construction, reconstruction and improvement of watershed,

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drainage, flood control, recreation and related improvements
and facilities, including expenses related to land and easement
acquisition, relocation, control structures, channel work and
clearing and appurtenant work; the planning, engineering,
acquisition, construction, reconstruction and improvement of
State facilities and related infrastructure; the making of Park
and Recreational Facilities Construction (PARC) grants; the
making of grants to units of local government for community
development capital projects; the making of grants for
improvement and development of zoos and park district field
houses and related structures; and the making of grants for
improvement and development of Navy Pier and related
structures.
(b) $2,122,970,300 $849,000,000 for fostering economic
development and increased employment and fostering the well
being of the citizens of Illinois through community
development, including: the making of grants for improvement
and development of McCormick Place and related structures; the
planning and construction of a microelectronics research
center, including the planning, engineering, construction,
improvement, renovation and acquisition of buildings,
equipment and related utility support systems; the making of
loans to businesses and investments in small businesses;
acquiring real properties for industrial or commercial site
development; acquiring, rehabilitating and reconveying
industrial and commercial properties for the purpose of

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expanding employment and encouraging private and other public
sector investment in the economy of Illinois; the payment of
expenses associated with siting the Superconducting Super
Collider Particle Accelerator in Illinois and with its
acquisition, construction, maintenance, operation, promotion
and support; the making of loans for the planning, engineering,
acquisition, construction, improvement and conversion of
facilities and equipment which will foster the use of Illinois
coal; the payment of expenses associated with the promotion,
establishment, acquisition and operation of small business
incubator facilities and agribusiness research facilities,
including the lease, purchase, renovation, planning,
engineering, construction and maintenance of buildings,
utility support systems and equipment designated for such
purposes and the establishment and maintenance of centralized
support services within such facilities; the making of grants
for transportation electrification infrastructure projects
that promote use of clean and renewable energy; the making of
capital expenditures and grants for broadband development and
for a statewide broadband deployment grant program; the making
of grants to public entities and private persons and entities
for community development capital projects; the making of
grants to public entities and private persons and entities for
capital projects in the context of grant programs focused on
assisting economically depressed areas, expanding affordable
housing, supporting the provision of human services,

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supporting emerging technology enterprises, and supporting
minority owned businesses; and the making of grants or loans to
units of local government for Urban Development Action Grant
and Housing Partnership programs.
(c) $2,711,076,600 $1,944,058,100 for the development and
improvement of educational, scientific, technical and
vocational programs and facilities and the expansion of health
and human services for all citizens of Illinois, including: the
making of grants to school districts and not-for-profit
organizations for early childhood construction projects
pursuant to Section 5-300 of the School Construction Law; the
making of grants to educational institutions for educational,
scientific, technical and vocational program equipment and
facilities; the making of grants to museums for equipment and
facilities; the making of construction and improvement grants
and loans to public libraries and library systems; the making
of grants and loans for planning, engineering, acquisition and
construction of a new State central library in Springfield; the
planning, engineering, acquisition and construction of an
animal and dairy sciences facility; the planning, engineering,
acquisition and construction of a campus and all related
buildings, facilities, equipment and materials for Richland
Community College; the acquisition, rehabilitation and
installation of equipment and materials for scientific and
historical surveys; the making of grants or loans for
distribution to eligible vocational education instructional

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programs for the upgrading of vocational education programs,
school shops and laboratories, including the acquisition,
rehabilitation and installation of technical equipment and
materials; the making of grants or loans for distribution to
eligible local educational agencies for the upgrading of math
and science instructional programs, including the acquisition
of instructional equipment and materials; miscellaneous
capital improvements for universities and community colleges
including the planning, engineering, construction,
reconstruction, remodeling, improvement, repair and
installation of capital facilities and costs of planning,
supplies, equipment, materials, services, and all other
required expenses; the making of grants or loans for repair,
renovation and miscellaneous capital improvements for
privately operated colleges and universities and community
colleges, including the planning, engineering, acquisition,
construction, reconstruction, remodeling, improvement, repair
and installation of capital facilities and costs of planning,
supplies, equipment, materials, services, and all other
required expenses; and the making of grants or loans for
distribution to local governments for hospital and other health
care facilities including the planning, engineering,
acquisition, construction, reconstruction, remodeling,
improvement, repair and installation of capital facilities and
costs of planning, supplies, equipment, materials, services
and all other required expenses.

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(d) $277,873,000 $230,150,900 for protection,
preservation, restoration and conservation of environmental
and natural resources, including: the making of grants to soil
and water conservation districts for the planning and
implementation of conservation practices and for funding
contracts with the Soil Conservation Service for watershed
planning; the making of grants to units of local government for
the capital development and improvement of recreation areas,
including planning and engineering costs, sewer projects,
including planning and engineering costs and water projects,
including planning and engineering costs, and for the
acquisition of open space lands, including the acquisition of
easements and other property interests of less than fee simple
ownership; the making of grants to units of local government
through the Illinois Green Infrastructure Grant Program to
protect water quality and mitigate flooding; the acquisition
and related costs and development and management of natural
heritage lands, including natural areas and areas providing
habitat for endangered species and nongame wildlife, and buffer
area lands; the acquisition and related costs and development
and management of habitat lands, including forest, wildlife
habitat and wetlands; and the removal and disposition of
hazardous substances, including the cost of project
management, equipment, laboratory analysis, and contractual
services necessary for preventative and corrective actions
related to the preservation, restoration and conservation of

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the environment, including deposits not to exceed $60,000,000
in the aggregate into the Hazardous Waste Fund and the
Brownfields Redevelopment Fund for improvements in accordance
with the provisions of Titles V and XVII of the Environmental
Protection Act.
(e) The amount specified in paragraph (a) above shall
include an amount necessary to pay reasonable expenses of each
issuance and sale of the Bonds, as specified in the related
Bond Sale Order (hereinafter defined).
(f) Any unexpended proceeds from any sale of Bonds which
are held in the Build Illinois Bond Fund may be used to redeem,
purchase, advance refund, or defease any Bonds outstanding.
(Source: P.A. 98-94, eff. 7-17-13; 101-30, eff. 6-28-19.)
(30 ILCS 425/6) (from Ch. 127, par. 2806)
Sec. 6. Conditions for issuance and sale of Bonds -
requirements for Bonds - master and supplemental indentures -
credit and liquidity enhancement.
(a) Bonds shall be issued and sold from time to time, in
one or more series, in such amounts and at such prices as
directed by the Governor, upon recommendation by the Director
of the Governor's Office of Management and Budget. Bonds shall
be payable only from the specific sources and secured in the
manner provided in this Act. Bonds shall be in such form, in
such denominations, mature on such dates within 25 years from
their date of issuance, be subject to optional or mandatory

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redemption, bear interest payable at such times and at such
rate or rates, fixed or variable, and be dated as shall be
fixed and determined by the Director of the Governor's Office
of Management and Budget in an order authorizing the issuance
and sale of any series of Bonds, which order shall be approved
by the Governor and is herein called a "Bond Sale Order";
provided, however, that interest payable at fixed rates shall
not exceed that permitted in "An Act to authorize public
corporations to issue bonds, other evidences of indebtedness
and tax anticipation warrants subject to interest rate
limitations set forth therein", approved May 26, 1970, as now
or hereafter amended, and interest payable at variable rates
shall not exceed the maximum rate permitted in the Bond Sale
Order. Said Bonds shall be payable at such place or places,
within or without the State of Illinois, and may be made
registrable as to either principal only or as to both principal
and interest, as shall be specified in the Bond Sale Order.
Bonds may be callable or subject to purchase and retirement or
remarketing as fixed and determined in the Bond Sale Order.
Bonds (i) except for refunding Bonds satisfying the
requirements of Section 15 of this Act and sold during fiscal
year 2009, 2010, 2011, 2017, 2018, or 2019, must be issued with
principal or mandatory redemption amounts in equal amounts,
with the first maturity issued occurring within the fiscal year
in which the Bonds are issued or within the next succeeding
fiscal year and (ii) must mature or be subject to mandatory

HB5561 - 53 - LRB101 17547 JWD 66965 b
redemption each fiscal year thereafter up to 25 years, except
for refunding Bonds satisfying the requirements of Section 15
of this Act and sold during fiscal year 2009, 2010, or 2011
which must mature or be subject to mandatory redemption each
fiscal year thereafter up to 16 years.
All Bonds authorized under this Act shall be issued
pursuant to a master trust indenture ("Master Indenture")
executed and delivered on behalf of the State by the Director
of the Governor's Office of Management and Budget, such Master
Indenture to be in substantially the form approved in the Bond
Sale Order authorizing the issuance and sale of the initial
series of Bonds issued under this Act. Such initial series of
Bonds may, and each subsequent series of Bonds shall, also be
issued pursuant to a supplemental trust indenture
("Supplemental Indenture") executed and delivered on behalf of
the State by the Director of the Governor's Office of
Management and Budget, each such Supplemental Indenture to be
in substantially the form approved in the Bond Sale Order
relating to such series. The Master Indenture and any
Supplemental Indenture shall be entered into with a bank or
trust company in the State of Illinois having trust powers and
possessing capital and surplus of not less than $100,000,000.
Such indentures shall set forth the terms and conditions of the
Bonds and provide for payment of and security for the Bonds,
including the establishment and maintenance of debt service and
reserve funds, and for other protections for holders of the

HB5561 - 54 - LRB101 17547 JWD 66965 b
Bonds. The term "reserve funds" as used in this Act shall
include funds and accounts established under indentures to
provide for the payment of principal of and premium and
interest on Bonds, to provide for the purchase, retirement or
defeasance of Bonds, to provide for fees of trustees,
registrars, paying agents and other fiduciaries and to provide
for payment of costs of and debt service payable in respect of
credit or liquidity enhancement arrangements, interest rate
swaps or guarantees or financial futures contracts and indexing
and remarketing agents' services.
In the case of any series of Bonds bearing interest at a
variable interest rate ("Variable Rate Bonds"), in lieu of
determining the rate or rates at which such series of Variable
Rate Bonds shall bear interest and the price or prices at which
such Variable Rate Bonds shall be initially sold or remarketed
(in the event of purchase and subsequent resale), the Bond Sale
Order may provide that such interest rates and prices may vary
from time to time depending on criteria established in such
Bond Sale Order, which criteria may include, without
limitation, references to indices or variations in interest
rates as may, in the judgment of a remarketing agent, be
necessary to cause Bonds of such series to be remarketable from
time to time at a price equal to their principal amount (or
compound accreted value in the case of original issue discount
Bonds), and may provide for appointment of indexing agents and
a bank, trust company, investment bank or other financial

HB5561 - 55 - LRB101 17547 JWD 66965 b
institution to serve as remarketing agent in that connection.
The Bond Sale Order may provide that alternative interest rates
or provisions for establishing alternative interest rates,
different security or claim priorities or different call or
amortization provisions will apply during such times as Bonds
of any series are held by a person providing credit or
liquidity enhancement arrangements for such Bonds as
authorized in subsection (b) of Section 6 of this Act.
(b) In connection with the issuance of any series of Bonds,
the State may enter into arrangements to provide additional
security and liquidity for such Bonds, including, without
limitation, bond or interest rate insurance or letters of
credit, lines of credit, bond purchase contracts or other
arrangements whereby funds are made available to retire or
purchase Bonds, thereby assuring the ability of owners of the
Bonds to sell or redeem their Bonds. The State may enter into
contracts and may agree to pay fees to persons providing such
arrangements, but only under circumstances where the Director
of the Bureau of the Budget (now Governor's Office of
Management and Budget) certifies that he reasonably expects the
total interest paid or to be paid on the Bonds, together with
the fees for the arrangements (being treated as if interest),
would not, taken together, cause the Bonds to bear interest,
calculated to their stated maturity, at a rate in excess of the
rate which the Bonds would bear in the absence of such
arrangements. Any bonds, notes or other evidences of

HB5561 - 56 - LRB101 17547 JWD 66965 b
indebtedness issued pursuant to any such arrangements for the
purpose of retiring and discharging outstanding Bonds shall
constitute refunding Bonds under Section 15 of this Act. The
State may participate in and enter into arrangements with
respect to interest rate swaps or guarantees or financial
futures contracts for the purpose of limiting or restricting
interest rate risk; provided that such arrangements shall be
made with or executed through banks having capital and surplus
of not less than $100,000,000 or insurance companies holding
the highest policyholder rating accorded insurers by A.M. Best &
Co. or any comparable rating service or government bond
dealers reporting to, trading with, and recognized as primary
dealers by a Federal Reserve Bank and having capital and
surplus of not less than $100,000,000, or other persons whose
debt securities are rated in the highest long-term categories
by both Moody's Investors' Services, Inc. and Standard & Poor's
Corporation. Agreements incorporating any of the foregoing
arrangements may be executed and delivered by the Director of
the Governor's Office of Management and Budget on behalf of the
State in substantially the form approved in the Bond Sale Order
relating to such Bonds.
(c) "Build America Bonds" in this Section means Bonds
authorized by Section 54AA of the Internal Revenue Code of
1986, as amended ("Internal Revenue Code"), and bonds issued
from time to time to refund or continue to refund "Build
America Bonds".

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(Source: P.A. 99-523, eff. 6-30-16; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18; 101-30, eff. 6-28-19.)
(30 ILCS 425/8) (from Ch. 127, par. 2808)
Sec. 8. Sale of Bonds. Bonds, except as otherwise provided
in this Section, shall be sold from time to time pursuant to
notice of sale and public bid or by negotiated sale in such
amounts and at such times as are directed by the Governor, upon
recommendation by the Director of the Governor's Office of
Management and Budget. At least 25%, based on total principal
amount, of all Bonds issued each fiscal year shall be sold
pursuant to notice of sale and public bid. At all times during
each fiscal year, no more than 75%, based on total principal
amount, of the Bonds issued each fiscal year shall have been
sold by negotiated sale. Failure to satisfy the requirements in
the preceding 2 sentences shall not affect the validity of any
previously issued Bonds; and further provided that refunding
Bonds satisfying the requirements of Section 15 of this Act and
sold during fiscal year 2009, 2010, 2011, 2017, 2018, or 2019
shall not be subject to the requirements in the preceding 2
sentences.
If any Bonds are to be sold pursuant to notice of sale and
public bid, the Director of the Governor's Office of Management
and Budget shall comply with the competitive request for
proposal process set forth in the Illinois Procurement Code and
all other applicable requirements of that Code.

HB5561 - 58 - LRB101 17547 JWD 66965 b
If Bonds are to be sold pursuant to notice of sale and
public bid, the Director of the Governor's Office of Management
and Budget may, from time to time, as Bonds are to be sold,
advertise the sale of the Bonds in at least 2 daily newspapers,
one of which is published in the City of Springfield and one in
the City of Chicago. The sale of the Bonds shall also be
advertised in the volume of the Illinois Procurement Bulletin
that is published by the Department of Central Management
Services, and shall be published once at least 10 days prior to
the date fixed for the opening of the bids. The Director of the
Governor's Office of Management and Budget may reschedule the
date of sale upon the giving of such additional notice as the
Director deems adequate to inform prospective bidders of the
change; provided, however, that all other conditions of the
sale shall continue as originally advertised. Executed Bonds
shall, upon payment therefor, be delivered to the purchaser,
and the proceeds of Bonds shall be paid into the State Treasury
as directed by Section 9 of this Act. The Governor or the
Director of the Governor's Office of Management and Budget is
hereby authorized and directed to execute and deliver contracts
of sale with underwriters and to execute and deliver such
certificates, indentures, agreements and documents, including
any supplements or amendments thereto, and to take such actions
and do such things as shall be necessary or desirable to carry
out the purposes of this Act. Any action authorized or
permitted to be taken by the Director of the Governor's Office

HB5561 - 59 - LRB101 17547 JWD 66965 b
of Management and Budget pursuant to this Act is hereby
authorized to be taken by any person specifically designated by
the Governor to take such action in a certificate signed by the
Governor and filed with the Secretary of State.
(Source: P.A. 99-523, eff. 6-30-16; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18; 101-30, eff. 6-28-19.)
Section 5-20. The Regional Transportation Authority Act is
amended by changing Section 2.32 as follows:
(70 ILCS 3615/2.32)
Sec. 2.32. Clean/green vehicles. Any vehicles purchased
from funds made available to the Authority from the
Transportation Bond, Series B Fund or the Multi-modal
Transportation Bond Fund must incorporate clean/green
technologies and alternative fuel technologies, to the extent
practical.
(Source: P.A. 96-8, eff. 4-28-09; 101-30, eff. 6-28-19.)
Article 10.
(35 ILCS 185/Act rep.)
Section 10-1. The Leveling the Playing Field for Illinois
Retail Act is repealed.
(35 ILCS 525/Act rep.)

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Section 10-2. The Parking Excise Tax Act is repealed.
Section 10-5. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
Sec. 5-45. Emergency rulemaking.
(a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
(b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the

HB5561 - 61 - LRB101 17547 JWD 66965 b
persons who may be affected by them.
(c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24-month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24-month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
(c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of

HB5561 - 62 - LRB101 17547 JWD 66965 b
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
(d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
(e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of Public Act 91-24
or any other budget initiative for fiscal year 2000 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to

HB5561 - 63 - LRB101 17547 JWD 66965 b
rules adopted under this subsection (e). The adoption of
emergency rules authorized by this subsection (e) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of Public Act 91-712
or any other budget initiative for fiscal year 2001 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (f). The adoption of
emergency rules authorized by this subsection (f) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of Public Act 92-10
or any other budget initiative for fiscal year 2002 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (g). The adoption of
emergency rules authorized by this subsection (g) shall be

HB5561 - 64 - LRB101 17547 JWD 66965 b
deemed to be necessary for the public interest, safety, and
welfare.
(h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of Public Act 92-597
or any other budget initiative for fiscal year 2003 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (h). The adoption of
emergency rules authorized by this subsection (h) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of Public Act 93-20
or any other budget initiative for fiscal year 2004 may be
adopted in accordance with this Section by the agency charged
with administering that provision or initiative, except that
the 24-month limitation on the adoption of emergency rules and
the provisions of Sections 5-115 and 5-125 do not apply to
rules adopted under this subsection (i). The adoption of
emergency rules authorized by this subsection (i) shall be
deemed to be necessary for the public interest, safety, and
welfare.

HB5561 - 65 - LRB101 17547 JWD 66965 b
(j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
(k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of
Public Act 94-48 or any other budget initiative for fiscal year
2006 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative, except that the 24-month limitation on the adoption
of emergency rules and the provisions of Sections 5-115 and
5-125 do not apply to rules adopted under this subsection (k).
The Department of Healthcare and Family Services may also adopt

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rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Persons with
Disabilities Property Tax Relief Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
(l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
(m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including

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rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
(n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of
Public Act 96-45 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2010 may be adopted
in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (n) shall be
deemed to be necessary for the public interest, safety, and
welfare. The rulemaking authority granted in this subsection
(n) shall apply only to rules promulgated during Fiscal Year
2010.
(o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of
Public Act 96-958 or any other budget initiative authorized by
the 96th General Assembly for fiscal year 2011 may be adopted

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in accordance with this Section by the agency charged with
administering that provision or initiative. The adoption of
emergency rules authorized by this subsection (o) is deemed to
be necessary for the public interest, safety, and welfare. The
rulemaking authority granted in this subsection (o) applies
only to rules promulgated on or after July 1, 2010 (the
effective date of Public Act 96-958) through June 30, 2011.
(p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
(q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of Public Act 98-104, emergency rules to implement any
provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or

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initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
(r) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 98-651,
emergency rules to implement Public Act 98-651 may be adopted
in accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
(s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed

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to be necessary for the public interest, safety, and welfare.
(t) In order to provide for the expeditious and timely
implementation of the provisions of Article II of Public Act
99-6, emergency rules to implement the changes made by Article
II of Public Act 99-6 to the Emergency Telephone System Act may
be adopted in accordance with this subsection (t) by the
Department of State Police. The rulemaking authority granted in
this subsection (t) shall apply only to those rules adopted
prior to July 1, 2016. The 24-month limitation on the adoption
of emergency rules does not apply to rules adopted under this
subsection (t). The adoption of emergency rules authorized by
this subsection (t) is deemed to be necessary for the public
interest, safety, and welfare.
(u) In order to provide for the expeditious and timely
implementation of the provisions of the Burn Victims Relief
Act, emergency rules to implement any provision of the Act may
be adopted in accordance with this subsection (u) by the
Department of Insurance. The rulemaking authority granted in
this subsection (u) shall apply only to those rules adopted
prior to December 31, 2015. The adoption of emergency rules
authorized by this subsection (u) is deemed to be necessary for
the public interest, safety, and welfare.
(v) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-516,
emergency rules to implement Public Act 99-516 may be adopted
in accordance with this subsection (v) by the Department of

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Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (v). The adoption of emergency rules
authorized by this subsection (v) is deemed to be necessary for
the public interest, safety, and welfare.
(w) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-796,
emergency rules to implement the changes made by Public Act
99-796 may be adopted in accordance with this subsection (w) by
the Adjutant General. The adoption of emergency rules
authorized by this subsection (w) is deemed to be necessary for
the public interest, safety, and welfare.
(x) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 99-906,
emergency rules to implement subsection (i) of Section 16-115D,
subsection (g) of Section 16-128A, and subsection (a) of
Section 16-128B of the Public Utilities Act may be adopted in
accordance with this subsection (x) by the Illinois Commerce
Commission. The rulemaking authority granted in this
subsection (x) shall apply only to those rules adopted within
180 days after June 1, 2017 (the effective date of Public Act
99-906). The adoption of emergency rules authorized by this
subsection (x) is deemed to be necessary for the public
interest, safety, and welfare.
(y) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-23,

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emergency rules to implement the changes made by Public Act
100-23 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
Section 55-30 of the Alcoholism and Other Drug Abuse and
Dependency Act, and Sections 74 and 75 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (y) by the respective
Department. The adoption of emergency rules authorized by this
subsection (y) is deemed to be necessary for the public
interest, safety, and welfare.
(z) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-554,
emergency rules to implement the changes made by Public Act
100-554 to Section 4.7 of the Lobbyist Registration Act may be
adopted in accordance with this subsection (z) by the Secretary
of State. The adoption of emergency rules authorized by this
subsection (z) is deemed to be necessary for the public
interest, safety, and welfare.
(aa) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5, 5A,
12, and 14 of the Illinois Public Aid Code under the provisions
of Public Act 100-581, the Department of Healthcare and Family
Services may adopt emergency rules in accordance with this
subsection (aa). The 24-month limitation on the adoption of
emergency rules does not apply to rules to initially implement
the changes made to Articles 5, 5A, 12, and 14 of the Illinois

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Public Aid Code adopted under this subsection (aa). The
adoption of emergency rules authorized by this subsection (aa)
is deemed to be necessary for the public interest, safety, and
welfare.
(bb) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules to implement the changes made by Public Act
100-587 to Section 4.02 of the Illinois Act on the Aging,
Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
subsection (b) of Section 55-30 of the Alcoholism and Other
Drug Abuse and Dependency Act, Section 5-104 of the Specialized
Mental Health Rehabilitation Act of 2013, and Section 75 and
subsection (b) of Section 74 of the Mental Health and
Developmental Disabilities Administrative Act may be adopted
in accordance with this subsection (bb) by the respective
Department. The adoption of emergency rules authorized by this
subsection (bb) is deemed to be necessary for the public
interest, safety, and welfare.
(cc) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-587,
emergency rules may be adopted in accordance with this
subsection (cc) to implement the changes made by Public Act
100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
Pension Code by the Board created under Article 14 of the Code;
Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
the Board created under Article 15 of the Code; and Sections

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16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
created under Article 16 of the Code. The adoption of emergency
rules authorized by this subsection (cc) is deemed to be
necessary for the public interest, safety, and welfare.
(dd) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-864,
emergency rules to implement the changes made by Public Act
100-864 to Section 3.35 of the Newborn Metabolic Screening Act
may be adopted in accordance with this subsection (dd) by the
Secretary of State. The adoption of emergency rules authorized
by this subsection (dd) is deemed to be necessary for the
public interest, safety, and welfare.
(ee) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 100-1172,
emergency rules implementing the Illinois Underground Natural
Gas Storage Safety Act may be adopted in accordance with this
subsection by the Department of Natural Resources. The adoption
of emergency rules authorized by this subsection is deemed to
be necessary for the public interest, safety, and welfare.
(ff) In order to provide for the expeditious and timely
initial implementation of the changes made to Articles 5A and
14 of the Illinois Public Aid Code under the provisions of
Public Act 100-1181, the Department of Healthcare and Family
Services may on a one-time-only basis adopt emergency rules in
accordance with this subsection (ff). The 24-month limitation
on the adoption of emergency rules does not apply to rules to

HB5561 - 75 - LRB101 17547 JWD 66965 b
initially implement the changes made to Articles 5A and 14 of
the Illinois Public Aid Code adopted under this subsection
(ff). The adoption of emergency rules authorized by this
subsection (ff) is deemed to be necessary for the public
interest, safety, and welfare.
(gg) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 101-1, emergency
rules may be adopted by the Department of Labor in accordance
with this subsection (gg) to implement the changes made by
Public Act 101-1 to the Minimum Wage Law. The adoption of
emergency rules authorized by this subsection (gg) is deemed to
be necessary for the public interest, safety, and welfare.
(hh) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 101-10,
emergency rules may be adopted in accordance with this
subsection (hh) to implement the changes made by Public Act
101-10 to subsection (j) of Section 5-5.2 of the Illinois
Public Aid Code. The adoption of emergency rules authorized by
this subsection (hh) is deemed to be necessary for the public
interest, safety, and welfare.
(ii) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 101-10,
emergency rules to implement the changes made by Public Act
101-10 to Sections 5-5.4 and 5-5.4i of the Illinois Public Aid
Code may be adopted in accordance with this subsection (ii) by
the Department of Public Health. The adoption of emergency

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rules authorized by this subsection (ii) is deemed to be
necessary for the public interest, safety, and welfare.
(jj) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 101-10,
emergency rules to implement the changes made by Public Act
101-10 to Section 74 of the Mental Health and Developmental
Disabilities Administrative Act may be adopted in accordance
with this subsection (jj) by the Department of Human Services.
The adoption of emergency rules authorized by this subsection
(jj) is deemed to be necessary for the public interest, safety,
and welfare.
(kk) In order to provide for the expeditious and timely
implementation of the Cannabis Regulation and Tax Act and
Public Act 101-27, the Department of Revenue, the Department of
Public Health, the Department of Agriculture, the Department of
State Police, and the Department of Financial and Professional
Regulation may adopt emergency rules in accordance with this
subsection (kk). The rulemaking authority granted in this
subsection (kk) shall apply only to rules adopted before
December 31, 2021. Notwithstanding the provisions of
subsection (c), emergency rules adopted under this subsection
(kk) shall be effective for 180 days. The adoption of emergency
rules authorized by this subsection (kk) is deemed to be
necessary for the public interest, safety, and welfare.
(ll) (Blank). In order to provide for the expeditious and
timely implementation of the provisions of the Leveling the

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Playing Field for Illinois Retail Act, emergency rules may be
adopted in accordance with this subsection (ll) to implement
the changes made by the Leveling the Playing Field for Illinois
Retail Act. The adoption of emergency rules authorized by this
subsection (ll) is deemed to be necessary for the public
interest, safety, and welfare.
(mm) (Blank). In order to provide for the expeditious and
timely implementation of the provisions of Section 25-70 of the
Sports Wagering Act, emergency rules to implement Section 25-70
of the Sports Wagering Act may be adopted in accordance with
this subsection (mm) by the Department of the Lottery as
provided in the Sports Wagering Act. The adoption of emergency
rules authorized by this subsection (mm) is deemed to be
necessary for the public interest, safety, and welfare.
(nn) (Blank). In order to provide for the expeditious and
timely implementation of the Sports Wagering Act, emergency
rules to implement the Sports Wagering Act may be adopted in
accordance with this subsection (nn) by the Illinois Gaming
Board. The adoption of emergency rules authorized by this
subsection (nn) is deemed to be necessary for the public
interest, safety, and welfare.
(oo) (Blank). In order to provide for the expeditious and
timely implementation of the provisions of subsection (c) of
Section 20 of the Video Gaming Act, emergency rules to
implement the provisions of subsection (c) of Section 20 of the
Video Gaming Act may be adopted in accordance with this

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subsection (oo) by the Illinois Gaming Board. The adoption of
emergency rules authorized by this subsection (oo) is deemed to
be necessary for the public interest, safety, and welfare.
(pp) In order to provide for the expeditious and timely
implementation of the provisions of Section 50 of the Sexual
Assault Evidence Submission Act, emergency rules to implement
Section 50 of the Sexual Assault Evidence Submission Act may be
adopted in accordance with this subsection (pp) by the
Department of State Police. The adoption of emergency rules
authorized by this subsection (pp) is deemed to be necessary
for the public interest, safety, and welfare.
(qq) In order to provide for the expeditious and timely
implementation of the provisions of the Illinois Works Jobs
Program Act, emergency rules may be adopted in accordance with
this subsection (qq) to implement the Illinois Works Jobs
Program Act. The adoption of emergency rules authorized by this
subsection (qq) is deemed to be necessary for the public
interest, safety, and welfare.
(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
3-8-19; 101-1, eff. 2-19-19; 101-10, Article 20, Section 20-5,
eff. 6-5-19; 101-10, Article 35, Section 35-5, eff. 6-5-19;
101-27, eff. 6-25-19; 101-31, Article 15, Section 15-5, eff.
6-28-19; 101-31, Article 25, Section 25-900, eff. 6-28-19;

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101-31, Article 35, Section 35-3, eff. 6-28-19; 101-377, eff.
8-16-19; 101-601, eff. 12-10-19.)
(20 ILCS 605/605-1025 rep.)
Section 10-10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by repealing Section 605-1025, as added by Public Act
101-31.
(30 ILCS 105/5.891 rep.)
(30 ILCS 105/5.893 rep.)
(30 ILCS 105/5.894 rep.)
Section 10-20. The State Finance Act is amended by
repealing Sections 5.891, 5.893, and 5.894, all as added by
Public Act 101-31.
(35 ILCS 5/229 rep.)
Section 10-25. The Illinois Income Tax Act is amended by
repealing Section 229, as added by Public Act 101-31.
Section 10-30. The Use Tax Act is amended by changing
Sections 2 and 3-5 as follows:
(35 ILCS 105/2) (from Ch. 120, par. 439.2)
Sec. 2. Definitions.
"Use" means the exercise by any person of any right or

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power over tangible personal property incident to the ownership
of that property, except that it does not include the sale of
such property in any form as tangible personal property in the
regular course of business to the extent that such property is
not first subjected to a use for which it was purchased, and
does not include the use of such property by its owner for
demonstration purposes: Provided that the property purchased
is deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or by-product
of manufacturing. "Use" does not mean the demonstration use or
interim use of tangible personal property by a retailer before
he sells that tangible personal property. For watercraft or
aircraft, if the period of demonstration use or interim use by
the retailer exceeds 18 months, the retailer shall pay on the
retailers' original cost price the tax imposed by this Act, and
no credit for that tax is permitted if the watercraft or
aircraft is subsequently sold by the retailer. "Use" does not
mean the physical incorporation of tangible personal property,
to the extent not first subjected to a use for which it was
purchased, as an ingredient or constituent, into other tangible
personal property (a) which is sold in the regular course of
business or (b) which the person incorporating such ingredient
or constituent therein has undertaken at the time of such
purchase to cause to be transported in interstate commerce to
destinations outside the State of Illinois: Provided that the

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property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
by-product of manufacturing.
"Watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
"Purchase at retail" means the acquisition of the ownership
of or title to tangible personal property through a sale at
retail.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of tangible personal property for a
valuable consideration.
"Sale at retail" means any transfer of the ownership of or
title to tangible personal property to a purchaser, for the
purpose of use, and not for the purpose of resale in any form
as tangible personal property to the extent not first subjected
to a use for which it was purchased, for a valuable
consideration: Provided that the property purchased is deemed
to be purchased for the purpose of resale, despite first being
used, to the extent to which it is resold as an ingredient of
an intentionally produced product or by-product of
manufacturing. For this purpose, slag produced as an incident
to manufacturing pig iron or steel and sold is considered to be
an intentionally produced by-product of manufacturing. "Sale

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at retail" includes any such transfer made for resale unless
made in compliance with Section 2c of the Retailers' Occupation
Tax Act, as incorporated by reference into Section 12 of this
Act. Transactions whereby the possession of the property is
transferred but the seller retains the title as security for
payment of the selling price are sales.
"Sale at retail" shall also be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible

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personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property other than as hereinafter provided, and
services, but, prior to January 1, 2020, not including the
value of or credit given for traded-in tangible personal
property where the item that is traded-in is of like kind and
character as that which is being sold; beginning January 1,
2020, "selling price" includes the portion of the value of or
credit given for traded-in motor vehicles of the First Division
as defined in Section 1-146 of the Illinois Vehicle Code of
like kind and character as that which is being sold that
exceeds $10,000. "Selling price" , and shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include interest or
finance charges which appear as separate items on the bill of
sale or sales contract nor charges that are added to prices by
sellers on account of the seller's tax liability under the
"Retailers' Occupation Tax Act", or on account of the seller's
duty to collect, from the purchaser, the tax that is imposed by
this Act, or, except as otherwise provided with respect to any
cigarette tax imposed by a home rule unit, on account of the
seller's tax liability under any local occupation tax

HB5561 - 84 - LRB101 17547 JWD 66965 b
administered by the Department, or, except as otherwise
provided with respect to any cigarette tax imposed by a home
rule unit on account of the seller's duty to collect, from the
purchasers, the tax that is imposed under any local use tax
administered by the Department. Effective December 1, 1985,
"selling price" shall include charges that are added to prices
by sellers on account of the seller's tax liability under the
Cigarette Tax Act, on account of the seller's duty to collect,
from the purchaser, the tax imposed under the Cigarette Use Tax
Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all

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monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by this Act or to pay the tax imposed by the
Retailers' Occupation Tax Act on those amounts. However, the
lessor who purchased the motor vehicle assumes the liability
for reporting and paying the tax on those amounts directly to
the Department in the same form (Illinois Retailers' Occupation
Tax, and local retailers' occupation taxes, if applicable) in
which the retailer would have reported and paid such tax if the
retailer had accounted for the tax to the Department. For
amounts received by the lessor from the lessee that are not
calculated at the time the lease is executed, the lessor must
file the return and pay the tax to the Department by the due
date otherwise required by this Act for returns other than
transaction returns. If the retailer is entitled under this Act
to a discount for collecting and remitting the tax imposed

HB5561 - 86 - LRB101 17547 JWD 66965 b
under this Act to the Department with respect to the sale of
the motor vehicle to the lessor, then the right to the discount
provided in this Act shall be transferred to the lessor with
respect to the tax paid by the lessor for any amount received
by the lessor from the lessee for the leased vehicle that is
not calculated at the time the lease is executed; provided that
the discount is only allowed if the return is timely filed and
for amounts timely paid. The "selling price" of a motor vehicle
that is sold on or after January 1, 2015 for the purpose of
leasing for a defined period of longer than one year shall not
be reduced by the value of or credit given for traded-in
tangible personal property owned by the lessor, nor shall it be
reduced by the value of or credit given for traded-in tangible
personal property owned by the lessee, regardless of whether
the trade-in value thereof is assigned by the lessee to the
lessor. In the case of a motor vehicle that is sold for the
purpose of leasing for a defined period of longer than one
year, the sale occurs at the time of the delivery of the
vehicle, regardless of the due date of any lease payments. A
lessor who incurs a Retailers' Occupation Tax liability on the
sale of a motor vehicle coming off lease may not take a credit
against that liability for the Use Tax the lessor paid upon the
purchase of the motor vehicle (or for any tax the lessor paid
with respect to any amount received by the lessor from the
lessee for the leased vehicle that was not calculated at the
time the lease was executed) if the selling price of the motor

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vehicle at the time of purchase was calculated using the
definition of "selling price" as defined in this paragraph.
Notwithstanding any other provision of this Act to the
contrary, lessors shall file all returns and make all payments
required under this paragraph to the Department by electronic
means in the manner and form as required by the Department.
This paragraph does not apply to leases of motor vehicles for
which, at the time the lease is entered into, the term of the
lease is not a defined period, including leases with a defined
initial period with the option to continue the lease on a
month-to-month or other basis beyond the initial defined
period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.

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"Retailer" means and includes every person engaged in the
business of making sales at retail as defined in this Section.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a retailer hereunder with respect to such
sales (and not primarily in a service occupation)
notwithstanding the fact that such person designs and produces
such tangible personal property on special order for the
purchaser and in such a way as to render the property of value
only to such purchaser, if such tangible personal property so
produced on special order serves substantially the same
function as stock or standard items of tangible personal
property that are sold at retail.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is a retailer with respect to such transactions, excepting only
a person organized and operated exclusively for charitable,
religious or educational purposes either (1), to the extent of
sales by such person to its members, students, patients or
inmates of tangible personal property to be used primarily for
the purposes of such person, or (2), to the extent of sales by
such person of tangible personal property which is not sold or
offered for sale by persons organized for profit. The selling
of school books and school supplies by schools at retail to

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students is not "primarily for the purposes of" the school
which does such selling. This paragraph does not apply to nor
subject to taxation occasional dinners, social or similar
activities of a person organized and operated exclusively for
charitable, religious or educational purposes, whether or not
such activities are open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not a
retailer under this Act with respect to such transactions.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
retailers hereunder when engaged in such business.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail or a sale through a
bulk vending machine does not make such person a retailer
hereunder. However, any person who is engaged in a business
which is not subject to the tax imposed by the Retailers'
Occupation Tax Act because of involving the sale of or a
contract to sell real estate or a construction contract to
improve real estate, but who, in the course of conducting such

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business, transfers tangible personal property to users or
consumers in the finished form in which it was purchased, and
which does not become real estate, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is a retailer to the
extent of the value of the tangible personal property so
transferred. If, in such transaction, a separate charge is made
for the tangible personal property so transferred, the value of
such property, for the purposes of this Act, is the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property.
"Retailer maintaining a place of business in this State",
or any like term, means and includes any of the following
retailers:
(1) A retailer having or maintaining within this State,
directly or by a subsidiary, an office, distribution house,
sales house, warehouse or other place of business, or any
agent or other representative operating within this State
under the authority of the retailer or its subsidiary,
irrespective of whether such place of business or agent or
other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State. However, the

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ownership of property that is located at the premises of a
printer with which the retailer has contracted for printing
and that consists of the final printed product, property
that becomes a part of the final printed product, or copy
from which the printed product is produced shall not result
in the retailer being deemed to have or maintain an office,
distribution house, sales house, warehouse, or other place
of business within this State.
(1.1) A retailer having a contract with a person
located in this State under which the person, for a
commission or other consideration based upon the sale of
tangible personal property by the retailer, directly or
indirectly refers potential customers to the retailer by
providing to the potential customers a promotional code or
other mechanism that allows the retailer to track purchases
referred by such persons. Examples of mechanisms that allow
the retailer to track purchases referred by such persons
include but are not limited to the use of a link on the
person's Internet website, promotional codes distributed
through the person's hand-delivered or mailed material,
and promotional codes distributed by the person through
radio or other broadcast media. The provisions of this
paragraph (1.1) shall apply only if the cumulative gross
receipts from sales of tangible personal property by the
retailer to customers who are referred to the retailer by
all persons in this State under such contracts exceed

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$10,000 during the preceding 4 quarterly periods ending on
the last day of March, June, September, and December. A
retailer meeting the requirements of this paragraph (1.1)
shall be presumed to be maintaining a place of business in
this State but may rebut this presumption by submitting
proof that the referrals or other activities pursued within
this State by such persons were not sufficient to meet the
nexus standards of the United States Constitution during
the preceding 4 quarterly periods.
(1.2) Beginning July 1, 2011, a retailer having a
contract with a person located in this State under which:
(A) the retailer sells the same or substantially
similar line of products as the person located in this
State and does so using an identical or substantially
similar name, trade name, or trademark as the person
located in this State; and
(B) the retailer provides a commission or other
consideration to the person located in this State based
upon the sale of tangible personal property by the
retailer.
The provisions of this paragraph (1.2) shall apply only
if the cumulative gross receipts from sales of tangible
personal property by the retailer to customers in this
State under all such contracts exceed $10,000 during the
preceding 4 quarterly periods ending on the last day of
March, June, September, and December.

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(2) (Blank). A retailer soliciting orders for tangible
personal property by means of a telecommunication or
television shopping system (which utilizes toll free
numbers) which is intended by the retailer to be broadcast
by cable television or other means of broadcasting, to
consumers located in this State.
(3) (Blank). A retailer, pursuant to a contract with a
broadcaster or publisher located in this State, soliciting
orders for tangible personal property by means of
advertising which is disseminated primarily to consumers
located in this State and only secondarily to bordering
jurisdictions.
(4) (Blank). A retailer soliciting orders for tangible
personal property by mail if the solicitations are
substantial and recurring and if the retailer benefits from
any banking, financing, debt collection,
telecommunication, or marketing activities occurring in
this State or benefits from the location in this State of
authorized installation, servicing, or repair facilities.
(5) (Blank). A retailer that is owned or controlled by
the same interests that own or control any retailer
engaging in business in the same or similar line of
business in this State.
(6) (Blank). A retailer having a franchisee or licensee
operating under its trade name if the franchisee or
licensee is required to collect the tax under this Section.

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(7) (Blank). A retailer, pursuant to a contract with a
cable television operator located in this State,
soliciting orders for tangible personal property by means
of advertising which is transmitted or distributed over a
cable television system in this State.
(8) (Blank). A retailer engaging in activities in
Illinois, which activities in the state in which the retail
business engaging in such activities is located would
constitute maintaining a place of business in that state.
(9) Beginning October 1, 2018, a retailer making sales
of tangible personal property to purchasers in Illinois
from outside of Illinois if:
(A) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois
are $100,000 or more; or
(B) the retailer enters into 200 or more separate
transactions for the sale of tangible personal
property to purchasers in Illinois.
The retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
subparagraph (A) or (B) of this paragraph (9) for the
preceding 12-month period. If the retailer meets the
threshold of either subparagraph (A) or (B) for a 12-month
period, he or she is considered a retailer maintaining a
place of business in this State and is required to collect

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and remit the tax imposed under this Act and file returns
for one year. At the end of that one-year period, the
retailer shall determine whether he or she met the
threshold of either subparagraph (A) or (B) during the
preceding 12-month period. If the retailer met the criteria
in either subparagraph (A) or (B) for the preceding
12-month period, he or she is considered a retailer
maintaining a place of business in this State and is
required to collect and remit the tax imposed under this
Act and file returns for the subsequent year. If at the end
of a one-year period a retailer that was required to
collect and remit the tax imposed under this Act determines
that he or she did not meet the threshold in either
subparagraph (A) or (B) during the preceding 12-month
period, the retailer shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the
threshold of either subparagraph (A) or (B) for the
preceding 12-month period.
Beginning January 1, 2020, neither the gross receipts
from nor the number of separate transactions for sales of
tangible personal property to purchasers in Illinois that a
retailer makes through a marketplace facilitator and for
which the retailer has received a certification from the
marketplace facilitator pursuant to Section 2d of this Act
shall be included for purposes of determining whether he or

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she has met the thresholds of this paragraph (9).
(10) Beginning January 1, 2020, a marketplace
facilitator that meets a threshold set forth in subsection
(b) of Section 2d of this Act.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
(Source: P.A. 100-587, eff. 6-4-18; 101-9, eff. 6-5-19; 101-31,
eff. 1-1-20; 101-604, eff. 1-1-20.)
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.

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(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,

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1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts
machinery and equipment is included in the manufacturing and
assembling machinery and equipment exemption under paragraph
(18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or

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secondary school located in Illinois.
(10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (11). Agricultural chemical tender tanks and dry
boxes shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not

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limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at

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least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.

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(16) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or

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other similar items of no commercial value on special order for
a particular purchaser. The exemption provided by this
paragraph (18) includes production related tangible personal
property, as defined in Section 3-50, purchased on or after
July 1, 2019. The exemption provided by this paragraph (18)
does not include machinery and equipment used in (i) the
generation of electricity for wholesale or retail sale; (ii)
the generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers through
pipes, pipelines, or mains; or (iii) the treatment of water for
wholesale or retail sale that is delivered to customers through
pipes, pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope of
this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (18) includes, but is not limited
to, graphic arts machinery and equipment, as defined in
paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club

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Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 for such taxes paid during the period beginning May 30,
2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax

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has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.

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(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.

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(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of

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private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in

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the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the

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Department. This paragraph is exempt from the provisions of
Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the property is leased in a
manner that does not qualify for this exemption or used in any
other nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department. This
paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division

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with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,

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and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption includes
consumable supplies used in the modification, refurbishment,
completion, replacement, repair, and maintenance of aircraft,
but excludes any materials, parts, equipment, components, and
consumable supplies used in the modification, replacement,
repair, and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape, sandpaper,
general purpose lubricants, cleaning solution, latex gloves,
and protective films. This exemption applies only to the use of
qualifying tangible personal property by persons who modify,
refurbish, complete, repair, replace, or maintain aircraft and
who (i) hold an Air Agency Certificate and are empowered to
operate an approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (35) by Public Act 98-534 are declarative of existing
law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from

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January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to the effective date of this amendatory Act of the
101st General Assembly.
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase Agreement
Act, and provide proof of registration under the Rental

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Purchase Agreement Occupation and Use Tax Act. This paragraph
is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):

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"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically

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incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (40) is exempt from the provisions of Section
3-90.
(Source: P.A. 100-22, eff. 7-6-17; 100-437, eff. 1-1-18;
100-594, eff. 6-29-18; 100-863, eff. 8-14-18; 100-1171, eff.
1-4-19; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; 101-81, eff.
7-12-19; 101-629, eff. 2-5-20.)
Section 10-35. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois

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county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used

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primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle

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required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.

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Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and

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equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or

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racing for prizes. This item (14) is exempt from the provisions
of Section 3-75, and the exemption provided for under this item
(14) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a

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refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax
Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for

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disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
(20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,

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foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the

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purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.

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(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor who

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leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or is used in any other
nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Use Tax Act, as the case may be,
based on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt to
collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is

HB5561 - 129 - LRB101 17547 JWD 66965 b
exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption includes
consumable supplies used in the modification, refurbishment,
completion, replacement, repair, and maintenance of aircraft,
but excludes any materials, parts, equipment, components, and
consumable supplies used in the modification, replacement,
repair, and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape, sandpaper,
general purpose lubricants, cleaning solution, latex gloves,
and protective films. This exemption applies only to the use of
qualifying tangible personal property transferred incident to
the modification, refurbishment, completion, replacement,
repair, or maintenance of aircraft by persons who (i) hold an
Air Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129

HB5561 - 130 - LRB101 17547 JWD 66965 b
of the Federal Aviation Regulations. The changes made to this
paragraph (27) by Public Act 98-534 are declarative of existing
law. It is the intent of the General Assembly that the
exemption under this paragraph (27) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to the effective date of this amendatory Act of the
101st General Assembly.
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(30) Tangible personal property transferred to a purchaser

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who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased
or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of

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Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of

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eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
7-12-19; 101-629, eff. 2-5-20.)
Section 10-40. The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the benefit
of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale
by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required by

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the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July

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1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision

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farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is

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engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be

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used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2023, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.

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(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the provisions
of Section 3-55, and the exemption provided for under this item
(15) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number

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by the Department under Section 1g of the Retailers' Occupation
Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used

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in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes

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parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-55.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients sold to
a lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the

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Retailers' Occupation Tax Act. This paragraph is exempt from
the provisions of Section 3-55.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property sold to a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from
the provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i) for
the purpose of subsequently transporting it outside this State
for use or consumption thereafter solely outside this State or
(ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this State
and thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (26). The permit issued under this paragraph (26)

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shall authorize the holder, to the extent and in the manner
specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the
taxes imposed by this Act. Taxpayers shall maintain all
necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as

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provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption includes
consumable supplies used in the modification, refurbishment,
completion, replacement, repair, and maintenance of aircraft,
but excludes any materials, parts, equipment, components, and
consumable supplies used in the modification, replacement,
repair, and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape, sandpaper,
general purpose lubricants, cleaning solution, latex gloves,
and protective films. This exemption applies only to the
transfer of qualifying tangible personal property incident to
the modification, refurbishment, completion, replacement,
repair, or maintenance of an aircraft by persons who (i) hold
an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air

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service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (29) by Public Act 98-534 are declarative of existing
law. It is the intent of the General Assembly that the
exemption under this paragraph (29) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to the effective date of this amendatory Act of the
101st General Assembly.
(30) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would have
qualified for a certificate of exemption prior to January 1,
2020 had this amendatory Act of the 101st General Assembly been
in effect, may apply for and obtain an exemption for subsequent
purchases of computer equipment or enabling software purchased

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or leased to upgrade, supplement, or replace computer equipment
or enabling software purchased or leased in the original
investment that would have qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of buildings
rehabilitated or constructed to house working servers in
one physical location or multiple sites within the State of
Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;

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and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To document
the exemption allowed under this Section, the retailer must
obtain from the purchaser a copy of the certificate of
eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(Source: P.A. 100-22, eff. 7-6-17; 100-594, eff. 6-29-18;
100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, eff.
7-12-19; 101-629, eff. 2-5-20.)
Section 10-45. The Retailers' Occupation Tax Act is amended
by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:
(35 ILCS 120/1) (from Ch. 120, par. 440)
Sec. 1. Definitions. "Sale at retail" means any transfer of
the ownership of or title to tangible personal property to a

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purchaser, for the purpose of use or consumption, and not for
the purpose of resale in any form as tangible personal property
to the extent not first subjected to a use for which it was
purchased, for a valuable consideration: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
byproduct of manufacturing. For this purpose, slag produced as
an incident to manufacturing pig iron or steel and sold is
considered to be an intentionally produced byproduct of
manufacturing. Transactions whereby the possession of the
property is transferred but the seller retains the title as
security for payment of the selling price shall be deemed to be
sales.
"Sale at retail" shall be construed to include any transfer
of the ownership of or title to tangible personal property to a
purchaser, for use or consumption by any other person to whom
such purchaser may transfer the tangible personal property
without a valuable consideration, and to include any transfer,
whether made for or without a valuable consideration, for
resale in any form as tangible personal property unless made in
compliance with Section 2c of this Act.
Sales of tangible personal property, which property, to the
extent not first subjected to a use for which it was purchased,
as an ingredient or constituent, goes into and forms a part of
tangible personal property subsequently the subject of a "Sale

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at retail", are not sales at retail as defined in this Act:
Provided that the property purchased is deemed to be purchased
for the purpose of resale, despite first being used, to the
extent to which it is resold as an ingredient of an
intentionally produced product or byproduct of manufacturing.
"Sale at retail" shall be construed to include any Illinois
florist's sales transaction in which the purchase order is
received in Illinois by a florist and the sale is for use or
consumption, but the Illinois florist has a florist in another
state deliver the property to the purchaser or the purchaser's
donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose

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of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is engaged in the business of selling tangible personal
property at retail with respect to such transactions, excepting
only a person organized and operated exclusively for
charitable, religious or educational purposes either (1), to
the extent of sales by such person to its members, students,
patients or inmates of tangible personal property to be used
primarily for the purposes of such person, or (2), to the
extent of sales by such person of tangible personal property
which is not sold or offered for sale by persons organized for
profit. The selling of school books and school supplies by
schools at retail to students is not "primarily for the
purposes of" the school which does such selling. The provisions
of this paragraph shall not apply to nor subject to taxation
occasional dinners, socials or similar activities of a person
organized and operated exclusively for charitable, religious
or educational purposes, whether or not such activities are
open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program

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for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property
at retail with respect to such transactions.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of or title to tangible personal
property for a valuable consideration.
"Reseller of motor fuel" means any person engaged in the
business of selling or delivering or transferring title of
motor fuel to another person other than for use or consumption.
No person shall act as a reseller of motor fuel within this
State without first being registered as a reseller pursuant to
Section 2c or a retailer pursuant to Section 2a.
"Selling price" or the "amount of sale" means the
consideration for a sale valued in money whether received in
money or otherwise, including cash, credits, property, other
than as hereinafter provided, and services, but, prior to
January 1, 2020, not including the value of or credit given for
traded-in tangible personal property where the item that is
traded-in is of like kind and character as that which is being
sold, and ; beginning January 1, 2020, "selling price" includes
the portion of the value of or credit given for traded-in motor
vehicles of the First Division as defined in Section 1-146 of
the Illinois Vehicle Code of like kind and character as that
which is being sold that exceeds $10,000. "Selling price" shall

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be determined without any deduction on account of the cost of
the property sold, the cost of materials used, labor or service
cost or any other expense whatsoever, but does not include
charges that are added to prices by sellers on account of the
seller's tax liability under this Act, or on account of the
seller's duty to collect, from the purchaser, the tax that is
imposed by the Use Tax Act, or, except as otherwise provided
with respect to any cigarette tax imposed by a home rule unit,
on account of the seller's tax liability under any local
occupation tax administered by the Department, or, except as
otherwise provided with respect to any cigarette tax imposed by
a home rule unit on account of the seller's duty to collect,
from the purchasers, the tax that is imposed under any local
use tax administered by the Department. Effective December 1,
1985, "selling price" shall include charges that are added to
prices by sellers on account of the seller's tax liability
under the Cigarette Tax Act, on account of the sellers' duty to
collect, from the purchaser, the tax imposed under the
Cigarette Use Tax Act, and on account of the seller's duty to
collect, from the purchaser, any cigarette tax imposed by a
home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is

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a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, "selling price" or "amount of sale"
means the consideration received by the lessor pursuant to the
lease contract, including amounts due at lease signing and all
monthly or other regular payments charged over the term of the
lease. Also included in the selling price is any amount
received by the lessor from the lessee for the leased vehicle
that is not calculated at the time the lease is executed,
including, but not limited to, excess mileage charges and
charges for excess wear and tear. For sales that occur in
Illinois, with respect to any amount received by the lessor
from the lessee for the leased vehicle that is not calculated
at the time the lease is executed, the lessor who purchased the
motor vehicle does not incur the tax imposed by the Use Tax Act
on those amounts, and the retailer who makes the retail sale of
the motor vehicle to the lessor is not required to collect the
tax imposed by the Use Tax Act or to pay the tax imposed by this
Act on those amounts. However, the lessor who purchased the
motor vehicle assumes the liability for reporting and paying
the tax on those amounts directly to the Department in the same

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form (Illinois Retailers' Occupation Tax, and local retailers'
occupation taxes, if applicable) in which the retailer would
have reported and paid such tax if the retailer had accounted
for the tax to the Department. For amounts received by the
lessor from the lessee that are not calculated at the time the
lease is executed, the lessor must file the return and pay the
tax to the Department by the due date otherwise required by
this Act for returns other than transaction returns. If the
retailer is entitled under this Act to a discount for
collecting and remitting the tax imposed under this Act to the
Department with respect to the sale of the motor vehicle to the
lessor, then the right to the discount provided in this Act
shall be transferred to the lessor with respect to the tax paid
by the lessor for any amount received by the lessor from the
lessee for the leased vehicle that is not calculated at the
time the lease is executed; provided that the discount is only
allowed if the return is timely filed and for amounts timely
paid. The "selling price" of a motor vehicle that is sold on or
after January 1, 2015 for the purpose of leasing for a defined
period of longer than one year shall not be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessor, nor shall it be reduced by the
value of or credit given for traded-in tangible personal
property owned by the lessee, regardless of whether the
trade-in value thereof is assigned by the lessee to the lessor.
In the case of a motor vehicle that is sold for the purpose of

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leasing for a defined period of longer than one year, the sale
occurs at the time of the delivery of the vehicle, regardless
of the due date of any lease payments. A lessor who incurs a
Retailers' Occupation Tax liability on the sale of a motor
vehicle coming off lease may not take a credit against that
liability for the Use Tax the lessor paid upon the purchase of
the motor vehicle (or for any tax the lessor paid with respect
to any amount received by the lessor from the lessee for the
leased vehicle that was not calculated at the time the lease
was executed) if the selling price of the motor vehicle at the
time of purchase was calculated using the definition of
"selling price" as defined in this paragraph. Notwithstanding
any other provision of this Act to the contrary, lessors shall
file all returns and make all payments required under this
paragraph to the Department by electronic means in the manner
and form as required by the Department. This paragraph does not
apply to leases of motor vehicles for which, at the time the
lease is entered into, the term of the lease is not a defined
period, including leases with a defined initial period with the
option to continue the lease on a month-to-month or other basis
beyond the initial defined period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item

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which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Gross receipts" from the sales of tangible personal
property at retail means the total selling price or the amount
of such sales, as hereinbefore defined. In the case of charge
and time sales, the amount thereof shall be included only as
and when payments are received by the seller. Receipts or other
consideration derived by a seller from the sale, transfer or
assignment of accounts receivable to a wholly owned subsidiary
will not be deemed payments prior to the time the purchaser
makes payment on such accounts.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail, or a sale through a
bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail
within the meaning of this Act; provided that any person who is
engaged in a business which is not subject to the tax imposed

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by this Act because of involving the sale of or a contract to
sell real estate or a construction contract to improve real
estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the
course of conducting such business, transfers tangible
personal property to users or consumers in the finished form in
which it was purchased, and which does not become real estate
or was not engineered and installed, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is engaged in the business
of selling tangible personal property at retail to the extent
of the value of the tangible personal property so transferred.
If, in such a transaction, a separate charge is made for the
tangible personal property so transferred, the value of such
property, for the purpose of this Act, shall be the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property. Construction
contracts for the improvement of real estate consisting of
engineering, installation, and maintenance of voice, data,
video, security, and all telecommunication systems do not
constitute engaging in a business of selling tangible personal
property at retail within the meaning of this Act if they are
sold at one specified contract price.

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A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property
of value only to such purchaser, if such tangible personal
property so produced on special order serves substantially the
same function as stock or standard items of tangible personal
property that are sold at retail.
Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
engaged in the business of selling such property at retail and
shall be liable for and shall pay the tax imposed by this Act
on the basis of the retail value of the property transferred
upon redemption of such stamps.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
"Remote retailer" means a retailer that does not maintain
within this State, directly or by a subsidiary, an office,

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distribution house, sales house, warehouse or other place of
business, or any agent or other representative operating within
this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent is located here permanently or temporarily or whether
such retailer or subsidiary is licensed to do business in this
State.
"Marketplace" means a physical or electronic place, forum,
platform, application, or other method by which a marketplace
seller sells or offers to sell items.
"Marketplace facilitator" means a person who, pursuant to
an agreement with an unrelated third-party marketplace seller,
directly or indirectly through one or more affiliates
facilitates a retail sale by an unrelated third party
marketplace seller by:
(1) listing or advertising for sale by the marketplace
seller in a marketplace, tangible personal property that is
subject to tax under this Act; and
(2) either directly or indirectly, through agreements
or arrangements with third parties, collecting payment
from the customer and transmitting that payment to the
marketplace seller regardless of whether the marketplace
facilitator receives compensation or other consideration
in exchange for its services.
A person who provides advertising services, including
listing products for sale, is not considered a marketplace

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facilitator, so long as the advertising service platform or
forum does not engage, directly or indirectly through one or
more affiliated persons, in the activities described in
paragraph (2) of this definition of "marketplace facilitator".
"Marketplace seller" means a person that makes sales
through a marketplace operated by an unrelated third party
marketplace facilitator.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed.
(a) A tax is imposed upon persons engaged in the business
of selling at retail tangible personal property, including
computer software, and including photographs, negatives, and
positives that are the product of photoprocessing, but not
including products of photoprocessing produced for use in
motion pictures for public commercial exhibition. Beginning
January 1, 2001, prepaid telephone calling arrangements shall
be considered tangible personal property subject to the tax
imposed under this Act regardless of the form in which those
arrangements may be embodied, transmitted, or fixed by any
method now known or hereafter developed. Sales of (1)
electricity delivered to customers by wire; (2) natural or
artificial gas that is delivered to customers through pipes,
pipelines, or mains; and (3) water that is delivered to
customers through pipes, pipelines, or mains are not subject to

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tax under this Act. The provisions of this amendatory Act of
the 98th General Assembly are declaratory of existing law as to
the meaning and scope of this Act.
(b) Beginning on January 1, 2021, a remote retailer is
engaged in the occupation of selling at retail in Illinois for
purposes of this Act, if:
(1) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois are
$100,000 or more; or
(2) the retailer enters into 200 or more separate
transactions for the sale of tangible personal property to
purchasers in Illinois.
Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State retailers' and locally imposed retailers'
occupation taxes administered by the Department on all retail
sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and December,
whether he or she meets the criteria of either paragraph (1) or
(2) of this subsection for the preceding 12-month period. If
the retailer meets the criteria of either paragraph (1) or (2)
for a 12-month period, he or she is considered a retailer
maintaining a place of business in this State and is required
to collect and remit the tax imposed under this Act and all
retailers' occupation tax imposed by local taxing

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jurisdictions in Illinois, provided such local taxes are
administered by the Department, and to file all applicable
returns for one year. At the end of that one-year period, the
retailer shall determine whether the retailer met the criteria
of either paragraph (1) or (2) for the preceding 12-month
period. If the retailer met the criteria in either paragraph
(1) or (2) for the preceding 12-month period, he or she is
considered a retailer maintaining a place of business in this
State and is required to collect and remit all applicable State
and local retailers' occupation taxes and file returns for the
subsequent year. If, at the end of a one-year period, a
retailer that was required to collect and remit the tax imposed
under this Act determines that he or she did not meet the
criteria in either paragraph (1) or (2) during the preceding
12-month period, then the retailer shall subsequently
determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether he or she meets
the criteria of either paragraph (1) or (2) for the preceding
12-month period.
(b-5) For the purposes of this Section, neither the gross
receipts from nor the number of separate transactions for sales
of tangible personal property to purchasers in Illinois that a
remote retailer makes through a marketplace facilitator shall
be included for the purposes of determining whether he or she
has met the thresholds of subsection (b) of this Section so
long as the remote retailer has received certification from the

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marketplace facilitator that the marketplace facilitator is
legally responsible for payment of tax on such sales.
(b-10) A remote retailer required to collect taxes imposed
under the Use Tax Act on retail sales made to Illinois
purchasers shall be liable to the Department for such taxes,
except when the remote retailer is relieved of the duty to
remit such taxes by virtue of having paid to the Department
taxes imposed by this Act in accordance with this Section upon
his or her gross receipts from such sales.
(c) Marketplace facilitators engaged in the business of
selling at retail tangible personal property in Illinois.
Beginning January 1, 2021, a marketplace facilitator is engaged
in the occupation of selling at retail tangible personal
property in Illinois for purposes of this Act if, during the
previous 12-month period:
(1) the cumulative gross receipts from sales of
tangible personal property on its own behalf or on behalf
of marketplace sellers to purchasers in Illinois equals
$100,000 or more; or
(2) the marketplace facilitator enters into 200 or more
separate transactions on its own behalf or on behalf of
marketplace sellers for the sale of tangible personal
property to purchasers in Illinois, regardless of whether
the marketplace facilitator or marketplace sellers for
whom such sales are facilitated are registered as retailers
in this State.

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A marketplace facilitator who meets either paragraph (1) or
(2) of this subsection is required to remit the applicable
State retailers' occupation taxes under this Act and local
retailers' occupation taxes administered by the Department on
all taxable sales of tangible personal property made by the
marketplace facilitator or facilitated for marketplace sellers
to customers in this State. A marketplace facilitator selling
or facilitating the sale of tangible personal property to
customers in this State is subject to all applicable procedures
and requirements of this Act.
The marketplace facilitator shall determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the marketplace facilitator meets the
criteria of either paragraph (1) or (2) for a 12-month period,
he or she is considered a retailer maintaining a place of
business in this State and is required to remit the tax imposed
under this Act and all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the marketplace facilitator shall determine whether it
met the criteria of either paragraph (1) or (2) for the
preceding 12-month period. If the marketplace facilitator met
the criteria in either paragraph (1) or (2) for the preceding

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12-month period, it is considered a retailer maintaining a
place of business in this State and is required to collect and
remit all applicable State and local retailers' occupation
taxes and file returns for the subsequent year. If at the end
of a one-year period a marketplace facilitator that was
required to collect and remit the tax imposed under this Act
determines that he or she did not meet the criteria in either
paragraph (1) or (2) during the preceding 12-month period, the
marketplace facilitator shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the criteria
of either paragraph (1) or (2) for the preceding 12-month
period.
A marketplace facilitator shall be entitled to any credits,
deductions, or adjustments to the sales price otherwise
provided to the marketplace seller, in addition to any such
adjustments provided directly to the marketplace facilitator.
This Section pertains to, but is not limited to, adjustments
such as discounts, coupons, and rebates. In addition, a
marketplace facilitator shall be entitled to the retailers'
discount provided in Section 3 of the Retailers' Occupation Tax
Act on all marketplace sales, and the marketplace seller shall
not include sales made through a marketplace facilitator when
computing any retailers' discount on remaining sales.
Marketplace facilitators shall report and remit the applicable
State and local retailers' occupation taxes on sales

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facilitated for marketplace sellers separately from any sales
or use tax collected on taxable retail sales made directly by
the marketplace facilitator or its affiliates.
The marketplace facilitator is liable for the remittance of
all applicable State retailers' occupation taxes under this Act
and local retailers' occupation taxes administered by the
Department on sales through the marketplace and is subject to
audit on all such sales. The Department shall not audit
marketplace sellers for their marketplace sales where a
marketplace facilitator remitted the applicable State and
local retailers' occupation taxes unless the marketplace
facilitator seeks relief as a result of incorrect information
provided to the marketplace facilitator by a marketplace seller
as set forth in this Section. The marketplace facilitator shall
not be held liable for tax on any sales made by a marketplace
seller that take place outside of the marketplace and which are
not a part of any agreement between a marketplace facilitator
and a marketplace seller. In addition, marketplace
facilitators shall not be held liable to State and local
governments of Illinois for having charged and remitted an
incorrect amount of State and local retailers' occupation tax
if, at the time of the sale, the tax is computed based on
erroneous data provided by the State in database files on tax
rates, boundaries, or taxing jurisdictions or incorrect
information provided to the marketplace facilitator by the
marketplace seller.

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(d) A marketplace facilitator shall:
(1) certify to each marketplace seller that the
marketplace facilitator assumes the rights and duties of a
retailer under this Act with respect to sales made by the
marketplace seller through the marketplace; and
(2) remit taxes imposed by this Act as required by this
Act for sales made through the marketplace.
(e) A marketplace seller shall retain books and records for
all sales made through a marketplace in accordance with the
requirements of this Act.
(f) A marketplace facilitator is subject to audit on all
marketplace sales for which it is considered to be the
retailer, but shall not be liable for tax or subject to audit
on sales made by marketplace sellers outside of the
marketplace.
(g) A marketplace facilitator required to collect taxes
imposed under the Use Tax Act on marketplace sales made to
Illinois purchasers shall be liable to the Department for such
taxes, except when the marketplace facilitator is relieved of
the duty to remit such taxes by virtue of having paid to the
Department taxes imposed by this Act in accordance with this
Section upon his or her gross receipts from such sales.
(h) Nothing in this Section shall allow the Department to
collect retailers' occupation taxes from both the marketplace
facilitator and marketplace seller on the same transaction.
(i) If, for any reason, the Department is prohibited from

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enforcing the marketplace facilitator's duty under this Act to
remit taxes pursuant to this Section, the duty to remit such
taxes remains with the marketplace seller.
(j) Nothing in this Section affects the obligation of any
consumer to remit use tax for any taxable transaction for which
a certified service provider acting on behalf of a remote
retailer or a marketplace facilitator does not collect and
remit the appropriate tax.
(k) Nothing in this Section shall allow the Department to
collect the retailers' occupation tax from both the marketplace
facilitator and the marketplace seller.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the
sale of the following tangible personal property are exempt
from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined in
Section 1-130 of the Illinois Vehicle Code, farm machinery

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and agricultural chemical and fertilizer spreaders, and
nurse wagons required to be registered under Section 3-809
of the Illinois Vehicle Code, but excluding other motor
vehicles required to be registered under the Illinois
Vehicle Code. Horticultural polyhouses or hoop houses used
for propagating, growing, or overwintering plants shall be
considered farm machinery and equipment under this item
(2). Agricultural chemical tender tanks and dry boxes shall
include units sold separately from a motor vehicle required
to be licensed and units sold mounted on a motor vehicle
required to be licensed, if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but
not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors,
computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal

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diets and agricultural chemicals. This item (2) is exempt
from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by
the retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both
new and used, and including that manufactured on special
order or purchased for lease, certified by the purchaser to
be used primarily for graphic arts production. Equipment
includes chemicals or chemicals acting as catalysts but
only if the chemicals or chemicals acting as catalysts
effect a direct and immediate change upon a graphic arts
product. Beginning on July 1, 2017, graphic arts machinery
and equipment is included in the manufacturing and
assembling machinery and equipment exemption under
paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.

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(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of the
selling price of a passenger car the sale of which is
subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35), however, an entity otherwise eligible for this
exemption shall not make tax-free purchases unless it has
an active identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,

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other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(11) Personal property sold to a governmental body, to
a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no
compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years
of age or older. A limited liability company may qualify
for the exemption under this paragraph only if the limited
liability company is organized and operated exclusively
for educational purposes. On and after July 1, 1987,
however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,

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2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such
a motor vehicle if that motor vehicle is used in a manner
that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of any
commercial or industrial enterprise whether for-hire or
not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock
moving in interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier
by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in
interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal

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property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by
some other person, whether the materials used in the
process are owned by the manufacturer or some other person,
or whether the sale or lease is made apart from or as an
incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns,
gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption
provided by this paragraph (14) does not include machinery
and equipment used in (i) the generation of electricity for
wholesale or retail sale; (ii) the generation or treatment
of natural or artificial gas for wholesale or retail sale
that is delivered to customers through pipes, pipelines, or
mains; or (iii) the treatment of water for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope
of this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a

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substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service
charge is imposed.
(16) Tangible personal property sold to a purchaser if
the purchaser is exempt from use tax by operation of
federal law. This paragraph is exempt from the provisions
of Section 2-70.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and
parts of rigs, rotary rigs, cable tool rigs, and workover
rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual

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replacement part for oil field exploration, drilling, and
production equipment, and (vi) machinery and equipment
purchased for lease; but excluding motor vehicles required
to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment
purchased for lease.
(21) Until July 1, 2023, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required
to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on
and after July 1, 2003, but no claim for credit or refund
is allowed on or after August 16, 2013 (the effective date
of Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a

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flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this Section,
a motor vehicle sold in this State to a nonresident even
though the motor vehicle is delivered to the nonresident in

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this State, if the motor vehicle is not to be titled in
this State, and if a drive-away permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
drive-away permit or having the out-of-state registration
plates to be transferred is prima facie evidence that the
motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on the
sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the time
of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property

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in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his
or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to require
the removal of the vehicle from this state following the
filing of an intent to title the vehicle in the purchaser's
state of residence if the purchaser titles the vehicle in
his or her state of residence within 30 days after the date
of sale. The tax collected under this Act in accordance
with this item (25-5) shall be proportionately distributed
as if the tax were collected at the 6.25% general rate
imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the authorized
approval for return to service, completion of the
maintenance record entry, and completion of the test
flight and ground test for inspection, as required by
14 C.F.R. 91.407;
(2) the aircraft is not based or registered in this
State after the sale of the aircraft; and

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(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.
This paragraph (25-7) is exempt from the provisions of
Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.

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(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse
Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting
Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (27)
is exempt from the provisions of Section 2-70, and the
exemption provided for under this item (27) applies for all
periods beginning May 30, 1995, but no claim for credit or
refund is allowed on or after January 1, 2008 (the
effective date of Public Act 95-88) for such taxes paid
during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption
identification number by the Department under Section 1g of

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this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax
exemption identification number by the Department that
assists victims of the disaster who reside within the
declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is used
in the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities,
resulting from a State or federally declared disaster in
Illinois or bordering Illinois when such repairs are
initiated on facilities located in the declared disaster
area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold at

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a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from
the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is donated
to a corporation, limited liability company, society,
association, foundation, or institution that is determined
by the Department to be organized and operated exclusively
for educational purposes. For purposes of this exemption,
"a corporation, limited liability company, society,
association, foundation, or institution organized and
operated exclusively for educational purposes" means all
tax-supported public schools, private schools that offer
systematic instruction in useful branches of learning by
methods common to public schools and that compare favorably
in their scope and intensity with the course of study
presented in tax-supported schools, and vocational or
technical schools or institutes organized and operated
exclusively to provide a course of study of not less than 6
weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical,
mechanical, industrial, business, or commercial
occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for
the benefit of a public or private elementary or secondary

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school, a group of those schools, or one or more school
districts if the events are sponsored by an entity
recognized by the school district that consists primarily
of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to
fundraising events (i) for the benefit of private home
instruction or (ii) for which the fundraising entity
purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the fundraising entity. This
paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare
and serve hot food and beverages, including coffee, soup,
and other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003,
machines and parts for machines used in commercial,
coin-operated amusement and vending business if a use or
occupation tax is paid on the gross receipts derived from
the use of the commercial, coin-operated amusement and
vending machines. This paragraph is exempt from the
provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic

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beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use by
a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or treatment
of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or
in effect at the time of the purchase, to a hospital that
has been issued an active tax exemption identification
number by the Department under Section 1g of this Act. This
paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a governmental body that has been issued an
active tax exemption identification number by the
Department under Section 1g of this Act. This paragraph is

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exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an
Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois who will, upon receipt of
the property in Illinois, temporarily store the property in
Illinois (i) for the purpose of subsequently transporting
it outside this State for use or consumption thereafter
solely outside this State or (ii) for the purpose of being
processed, fabricated, or manufactured into, attached to,
or incorporated into other tangible personal property to be
transported outside this State and thereafter used or
consumed solely outside this State. The Director of Revenue
shall, pursuant to rules adopted in accordance with the
Illinois Administrative Procedure Act, issue a permit to
any taxpayer in good standing with the Department who is
eligible for the exemption under this paragraph (38). The
permit issued under this paragraph (38) shall authorize the
holder, to the extent and in the manner specified in the
rules adopted under this Act, to purchase tangible personal
property from a retailer exempt from the taxes imposed by
this Act. Taxpayers shall maintain all necessary books and
records to substantiate the use and consumption of all such
tangible personal property outside of the State of
Illinois.
(39) Beginning January 1, 2008, tangible personal

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property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through
December 31, 2024, materials, parts, equipment,
components, and furnishings incorporated into or upon an
aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used
in the modification, refurbishment, completion,
replacement, repair, and maintenance of aircraft, but
excludes any materials, parts, equipment, components, and
consumable supplies used in the modification, replacement,
repair, and maintenance of aircraft engines or power
plants, whether such engines or power plants are installed
or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films. This exemption applies
only to the sale of qualifying tangible personal property
to persons who modify, refurbish, complete, replace, or
maintain an aircraft and who (i) hold an Air Agency

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Certificate and are empowered to operate an approved repair
station by the Federal Aviation Administration, (ii) have a
Class IV Rating, and (iii) conduct operations in accordance
with Part 145 of the Federal Aviation Regulations. The
exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made
to this paragraph (40) by Public Act 98-534 are declarative
of existing law. It is the intent of the General Assembly
that the exemption under this paragraph (40) applies
continuously from January 1, 2010 through December 31,
2024; however, no claim for credit or refund is allowed for
taxes paid as a result of the disallowance of this
exemption on or after January 1, 2015 and prior to the
effective date of this amendatory Act of the 101st General
Assembly.
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any further
consideration by or on behalf of the municipality at the
time of the completion of the municipal convention hall or
upon the retirement or redemption of any bonds or other

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debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017, menstrual pads,
tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must
certify that the item is purchased to be rented subject to
a rental purchase agreement, as defined in the Rental
Purchase Agreement Act, and provide proof of registration
under the Rental Purchase Agreement Occupation and Use Tax
Act. This paragraph is exempt from the provisions of
Section 2-70.
(44) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or
subcontractor of the owner, operator, or tenant. Data
centers that would have qualified for a certificate of
exemption prior to January 1, 2020 had this amendatory Act
of the 101st General Assembly been in effect, may apply for

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and obtain an exemption for subsequent purchases of
computer equipment or enabling software purchased or
leased to upgrade, supplement, or replace computer
equipment or enabling software purchased or leased in the
original investment that would have qualified.
The Department of Commerce and Economic Opportunity
shall grant a certificate of exemption under this item (44)
to qualified data centers as defined by Section 605-1025 of
the Department of Commerce and Economic Opportunity Law of
the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house
working servers in one physical location or multiple
sites within the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks;
cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or
systems; software; mechanical, electrical, or plumbing
systems; battery systems; cooling systems and towers;
temperature control systems; other cabling; and other

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data center infrastructure equipment and systems
necessary to operate qualified tangible personal
property, including fixtures; and component parts of
any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible personal property to generate,
transform, transmit, distribute, or manage electricity
necessary to operate qualified tangible personal
property; and all other tangible personal property
that is essential to the operations of a computer data
center. The term "qualified tangible personal
property" also includes building materials physically
incorporated in to the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of Section
2-70.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
8-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
eff. 7-12-19; 101-629, eff. 2-5-20.)
(35 ILCS 120/2-12)
Sec. 2-12. Location where retailer is deemed to be engaged

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in the business of selling. The purpose of this Section is to
specify where a retailer is deemed to be engaged in the
business of selling tangible personal property for the purposes
of this Act, the Use Tax Act, the Service Use Tax Act, and the
Service Occupation Tax Act, and for the purpose of collecting
any other local retailers' occupation tax administered by the
Department. This Section applies only with respect to the
particular selling activities described in the following
paragraphs. The provisions of this Section are not intended to,
and shall not be interpreted to, affect where a retailer is
deemed to be engaged in the business of selling with respect to
any activity that is not specifically described in the
following paragraphs.
(1) If a purchaser who is present at the retailer's
place of business, having no prior commitment to the
retailer, agrees to purchase and makes payment for tangible
personal property at the retailer's place of business, then
the transaction shall be deemed an over-the-counter sale
occurring at the retailer's same place of business where
the purchaser was present and made payment for that
tangible personal property if the retailer regularly
stocks the purchased tangible personal property or similar
tangible personal property in the quantity, or similar
quantity, for sale at the retailer's same place of business
and then either (i) the purchaser takes possession of the
tangible personal property at the same place of business or

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(ii) the retailer delivers or arranges for the tangible
personal property to be delivered to the purchaser.
(2) If a purchaser, having no prior commitment to the
retailer, agrees to purchase tangible personal property
and makes payment over the phone, in writing, or via the
Internet and takes possession of the tangible personal
property at the retailer's place of business, then the sale
shall be deemed to have occurred at the retailer's place of
business where the purchaser takes possession of the
property if the retailer regularly stocks the item or
similar items in the quantity, or similar quantities,
purchased by the purchaser.
(3) A retailer is deemed to be engaged in the business
of selling food, beverages, or other tangible personal
property through a vending machine at the location where
the vending machine is located at the time the sale is made
if (i) the vending machine is a device operated by coin,
currency, credit card, token, coupon or similar device; (2)
the food, beverage or other tangible personal property is
contained within the vending machine and dispensed from the
vending machine; and (3) the purchaser takes possession of
the purchased food, beverage or other tangible personal
property immediately.
(4) Minerals. A producer of coal or other mineral mined
in Illinois is deemed to be engaged in the business of
selling at the place where the coal or other mineral mined

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in Illinois is extracted from the earth. With respect to
minerals (i) the term "extracted from the earth" means the
location at which the coal or other mineral is extracted
from the mouth of the mine, and (ii) a "mineral" includes
not only coal, but also oil, sand, stone taken from a
quarry, gravel and any other thing commonly regarded as a
mineral and extracted from the earth. This paragraph does
not apply to coal or another mineral when it is delivered
or shipped by the seller to the purchaser at a point
outside Illinois so that the sale is exempt under the
United States Constitution as a sale in interstate or
foreign commerce.
(5) A retailer selling tangible personal property to a
nominal lessee or bailee pursuant to a lease with a dollar
or other nominal option to purchase is engaged in the
business of selling at the location where the property is
first delivered to the lessee or bailee for its intended
use.
(6) (Blank). Beginning on January 1, 2021, a remote
retailer making retail sales of tangible personal property
that meet or exceed the thresholds established in paragraph
(1) or (2) of subsection (b) of Section 2 of this Act is
engaged in the business of selling at the Illinois location
to which the tangible personal property is shipped or
delivered or at which possession is taken by the purchaser.
(7) Beginning January 1, 2021, a marketplace

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facilitator facilitating sales of tangible personal
property that meet or exceed one of the thresholds
established in paragraph (1) or (2) of subsection (c) of
Section 2 of this Act is deemed to be engaged in the
business of selling at the Illinois location to which the
tangible personal property is shipped or delivered or at
which possession is taken by the purchaser when the sale is
made by a marketplace seller on the marketplace
facilitator's marketplace.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. It is unlawful for any person to engage in the
business of selling tangible personal property at retail in
this State without a certificate of registration from the
Department. Application for a certificate of registration
shall be made to the Department upon forms furnished by it.
Each such application shall be signed and verified and shall
state: (1) the name and social security number of the
applicant; (2) the address of his principal place of business;
(3) the address of the principal place of business from which
he engages in the business of selling tangible personal
property at retail in this State and the addresses of all other
places of business, if any (enumerating such addresses, if any,
in a separate list attached to and made a part of the
application), from which he engages in the business of selling

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tangible personal property at retail in this State; (4) the
name and address of the person or persons who will be
responsible for filing returns and payment of taxes due under
this Act; (5) in the case of a publicly traded corporation, the
name and title of the Chief Financial Officer, Chief Operating
Officer, and any other officer or employee with responsibility
for preparing tax returns under this Act, and, in the case of
all other corporations, the name, title, and social security
number of each corporate officer; (6) in the case of a limited
liability company, the name, social security number, and FEIN
number of each manager and member; and (7) such other
information as the Department may reasonably require. The
application shall contain an acceptance of responsibility
signed by the person or persons who will be responsible for
filing returns and payment of the taxes due under this Act. If
the applicant will sell tangible personal property at retail
through vending machines, his application to register shall
indicate the number of vending machines to be so operated. If
requested by the Department at any time, that person shall
verify the total number of vending machines he or she uses in
his or her business of selling tangible personal property at
retail.
The Department shall provide by rule for an expedited
business registration process for remote retailers required to
register and file under subsection (b) of Section 2 who use a
certified service provider to file their returns under this

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Act. Such expedited registration process shall allow the
Department to register a taxpayer based upon the same
registration information required by the Streamlined Sales Tax
Governing Board for states participating in the Streamlined
Sales Tax Project.
The Department may deny a certificate of registration to
any applicant if a person who is named as the owner, a partner,
a manager or member of a limited liability company, or a
corporate officer of the applicant on the application for the
certificate of registration is or has been named as the owner,
a partner, a manager or member of a limited liability company,
or a corporate officer on the application for the certificate
of registration of another retailer that is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department. For purposes of this paragraph
only, in determining whether a person is in default for moneys
due, the Department shall include only amounts established as a
final liability within the 20 years prior to the date of the
Department's notice of denial of a certificate of registration.
The Department may require an applicant for a certificate
of registration hereunder to, at the time of filing such
application, furnish a bond from a surety company authorized to
do business in the State of Illinois, or an irrevocable bank
letter of credit or a bond signed by 2 personal sureties who
have filed, with the Department, sworn statements disclosing
net assets equal to at least 3 times the amount of the bond to

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be required of such applicant, or a bond secured by an
assignment of a bank account or certificate of deposit, stocks
or bonds, conditioned upon the applicant paying to the State of
Illinois all moneys becoming due under this Act and under any
other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the
applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and
whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the amount
of the bond or other security, taking into consideration the

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amount of money expected to become due from the applicant under
this Act and under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the applicant under this Act
will permit the applicant to engage in business without
registering separately under such other law, ordinance, or
resolution. The amount of security required by the Department
shall be such as, in its opinion, will protect the State of
Illinois against failure to pay the amount which may become due
from the applicant under this Act and under any other State tax
law or municipal or county tax ordinance or resolution under
which the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage in
business without registering separately under such other law,
ordinance or resolution, but the amount of the security
required by the Department shall not exceed three times the
amount of the applicant's average monthly tax liability, or
$50,000.00, whichever amount is lower.
No certificate of registration under this Act shall be
issued by the Department until the applicant provides the
Department with satisfactory security, if required, as herein
provided for.
Upon receipt of the application for certificate of
registration in proper form, and upon approval by the
Department of the security furnished by the applicant, if
required, the Department shall issue to such applicant a

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certificate of registration which shall permit the person to
whom it is issued to engage in the business of selling tangible
personal property at retail in this State. The certificate of
registration shall be conspicuously displayed at the place of
business which the person so registered states in his
application to be the principal place of business from which he
engages in the business of selling tangible personal property
at retail in this State.
No certificate of registration issued prior to July 1, 2017
to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration issued
on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after
July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after July

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1, 2017, a certificate of registration shall automatically be
renewed, subject to revocation as provided by this Act, for an
additional one year from the date of its expiration unless
otherwise notified by the Department as provided by this
paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois
for delinquent returns or for moneys due under this Act or any
other State tax law or municipal or county ordinance
administered or enforced by the Department, the Department
shall, not less than 60 days before the expiration date of such
certificate of registration, give notice to the taxpayer to
whom the certificate was issued of the account period of the
delinquent returns, the amount of tax, penalty and interest due
and owing from the taxpayer, and that the certificate of
registration shall not be automatically renewed upon its
expiration date unless the taxpayer, on or before the date of
expiration, has filed and paid the delinquent returns or paid
the defaulted amount in full. A taxpayer to whom such a notice
is issued shall be deemed an applicant for renewal. The
Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis
but desire and qualify to change to a quarterly or yearly
filing basis and will no longer be subject to renewal under
this Section, and for taxpayers who file returns on a yearly or
quarterly basis but who desire or are required to change to a

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monthly filing basis and will be subject to renewal under this
Section.
The Department may in its discretion approve renewal by an
applicant who is in default if, at the time of application for
renewal, the applicant files all of the delinquent returns or
pays to the Department such percentage of the defaulted amount
as may be determined by the Department and agrees in writing to
waive all limitations upon the Department for collection of the
remaining defaulted amount to the Department over a period not
to exceed 5 years from the date of renewal of the certificate;
however, no renewal application submitted by an applicant who
is in default shall be approved if the immediately preceding
renewal by the applicant was conditioned upon the installment
payment agreement described in this Section. The payment
agreement herein provided for shall be in addition to and not
in lieu of the security that may be required by this Section of
a taxpayer who is no longer considered a prior continuous
compliance taxpayer. The execution of the payment agreement as
provided in this Act shall not toll the accrual of interest at
the statutory rate.
The Department may suspend a certificate of registration if
the Department finds that the person to whom the certificate of
registration has been issued knowingly sold contraband
cigarettes.
A certificate of registration issued under this Act more
than 5 years before January 1, 1990 (the effective date of

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Public Act 86-383) shall expire and be subject to the renewal
provisions of this Section on the next anniversary of the date
of issuance of such certificate which occurs more than 6 months
after January 1, 1990 (the effective date of Public Act
86-383). A certificate of registration issued less than 5 years
before January 1, 1990 (the effective date of Public Act
86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State, the
Department shall furnish him with a sub-certificate of
registration for each such place of business, and the applicant
shall display the appropriate sub-certificate of registration
at each such place of business. All sub-certificates of
registration shall bear the same registration number as that
appearing upon the certificate of registration to which such
sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of
registration to a conspicuous part of such vending machine. If

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a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of vending
machines he or she uses in his or her business of selling
tangible personal property at retail, he or she shall notify
the Department, on a form prescribed by the Department, to
request an additional sub-certificate or additional
sub-certificates of registration, as applicable. With each
such request, the applicant shall report the number of
sub-certificates of registration he or she is requesting as
well as the total number of vending machines from which he or
she makes retail sales.
Where the same person engages in 2 or more businesses of
selling tangible personal property at retail in this State,
which businesses are substantially different in character or
engaged in under different trade names or engaged in under
other substantially dissimilar circumstances (so that it is
more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered),
the Department may require or permit such person (subject to
the same requirements concerning the furnishing of security as
those that are provided for hereinbefore in this Section as to
each application for a certificate of registration) to apply
for and obtain a separate certificate of registration for each
such business or for any of such businesses, under a single
certificate of registration supplemented by related

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sub-certificates of registration.
Any person who is registered under the Retailers'
Occupation Tax Act as of March 8, 1963, and who, during the
3-year period immediately prior to March 8, 1963, or during a
continuous 3-year period part of which passed immediately
before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is
determined by the Department not to have been either delinquent
or deficient in the payment of tax liability during that period
under this Act or under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate
of registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, shall be considered to be a Prior Continuous
Compliance taxpayer. Also any taxpayer who has, as verified by
the Department, faithfully and continuously complied with the
condition of his bond or other security under the provisions of
this Act for a period of 3 consecutive years shall be
considered to be a Prior Continuous Compliance taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt
from all requirements under this Act concerning the furnishing
of a bond or other security as a condition precedent to his
being authorized to engage in the business of selling tangible
personal property at retail in this State. This exemption shall
continue for each such taxpayer until such time as he may be

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determined by the Department to be delinquent in the filing of
any returns, or is determined by the Department (either through
the Department's issuance of a final assessment which has
become final under the Act, or by the taxpayer's filing of a
return which admits tax that is not paid to be due) to be
delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject to
all the financial responsibility requirements of this Act and,
as a condition of being allowed to continue to engage in the
business of selling tangible personal property at retail, may
be required to post bond or other acceptable security with the
Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which the

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certificate of registration that is issued to the applicant
under this Act will permit the applicant to engage in business
without registering separately under such other law, ordinance
or resolution.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
With respect to security other than bonds (upon which the
Department may sue in the event of a forfeiture), if the
taxpayer fails to pay, when due, any amount whose payment such
security guarantees, the Department shall, after such
liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has
become final under the law, convert the security which that
taxpayer has furnished into money for the State, after first
giving the taxpayer at least 10 days' written notice, by
registered or certified mail, to pay the liability or forfeit
such security to the Department. If the security consists of
stocks or bonds or other securities which are listed on a

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public exchange, the Department shall sell such securities
through such public exchange. If the security consists of an
irrevocable bank letter of credit, the Department shall convert
the security in the manner provided for in the Uniform
Commercial Code. If the security consists of a bank certificate
of deposit, the Department shall convert the security into
money by demanding and collecting the amount of such bank
certificate of deposit from the bank which issued such
certificate. If the security consists of a type of stocks or
other securities which are not listed on a public exchange, the
Department shall sell such security to the highest and best
bidder after giving at least 10 days' notice of the date, time
and place of the intended sale by publication in the "State
Official Newspaper". If the Department realizes more than the
amount of such liability from the security, plus the expenses
incurred by the Department in converting the security into
money, the Department shall pay such excess to the taxpayer who
furnished such security, and the balance shall be paid into the
State Treasury.
The Department shall discharge any surety and shall release
and return any security deposited, assigned, pledged or
otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such taxpayer becomes a Prior Continuous
Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on

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which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax
liability, as determined by the Department, under this Act
and under every other State tax law or municipal or county
tax ordinance or resolution under which the certificate of
registration issued under this Act permits the registrant
to engage in business without registering separately under
such other law, ordinance or resolution. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible
after his final tax return has been filed; if the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its reasons
therefor.
(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
100-863, eff. 8-14-18; 101-31, eff. 6-28-19.)
Section 10-50. The Cigarette Tax Act is amended by changing
Section 2 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) A tax is imposed upon any person engaged in business as

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a retailer of cigarettes in this State at the rate of 5 1/2
mills per cigarette sold, or otherwise disposed of in the
course of such business in this State. In addition to any other
tax imposed by this Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 1/2 mill per cigarette sold or otherwise disposed
of in the course of such business in this State on and after
January 1, 1947, and shall be paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund or as otherwise
provided in Section 29. On and after December 1, 1985, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
in this State at a rate of 4 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Of the additional tax imposed by this amendatory Act of
1985, $9,000,000 of the moneys received by the Department of
Revenue pursuant to this Act shall be paid each month into the
Common School Fund. On and after the effective date of this
amendatory Act of 1989, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 5 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 7 mills per

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cigarette sold or otherwise disposed of in the course of such
business in this State. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 7 mills per cigarette sold or otherwise disposed
of in the course of such business of this State. All of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act from the additional taxes
imposed by this amendatory Act of 1997, shall be paid each
month into the Common School Fund. On and after July 1, 2002,
in addition to any other tax imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 20.0 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Beginning on June 24, 2012, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes at the rate of 50 mills
per cigarette sold or otherwise disposed of in the course of
such business in this State. All moneys received by the
Department of Revenue under this Act and the Cigarette Use Tax
Act from the additional taxes imposed by this amendatory Act of
the 97th General Assembly shall be paid each month into the
Healthcare Provider Relief Fund. Beginning on July 1, 2019, in
place of the aggregate tax rate of 99 mills previously imposed
by this Act, a tax is imposed upon any person engaged in
business as a retailer of cigarettes at the rate of 149 mills

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per cigarette sold or otherwise disposed of in the course of
such business in this State.
(b) The payment of such taxes shall be evidenced by a stamp
affixed to each original package of cigarettes, or an
authorized substitute for such stamp imprinted on each original
package of such cigarettes underneath the sealed transparent
outside wrapper of such original package, as hereinafter
provided. However, such taxes are not imposed upon any activity
in such business in interstate commerce or otherwise, which
activity may not under the Constitution and statutes of the
United States be made the subject of taxation by this State.
Beginning on the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2006, all of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act, other than the moneys that
are dedicated to the Common School Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount which, when added to the amount
paid into the Common School Fund for that month, equals
$33,300,000, except that in the month of August of 2004, this
amount shall equal $83,300,000; then, from the moneys
remaining, if any amounts required to be paid into the General
Revenue Fund in previous months remain unpaid, those amounts
shall be paid into the General Revenue Fund; then, beginning on
April 1, 2003, from the moneys remaining, $5,000,000 per month
shall be paid into the School Infrastructure Fund; then, if any

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amounts required to be paid into the School Infrastructure Fund
in previous months remain unpaid, those amounts shall be paid
into the School Infrastructure Fund; then the moneys remaining,
if any, shall be paid into the Long-Term Care Provider Fund. To
the extent that more than $25,000,000 has been paid into the
General Revenue Fund and Common School Fund per month for the
period of July 1, 1993 through the effective date of this
amendatory Act of 1994 from combined receipts of the Cigarette
Tax Act and the Cigarette Use Tax Act, notwithstanding the
distribution provided in this Section, the Department of
Revenue is hereby directed to adjust the distribution provided
in this Section to increase the next monthly payments to the
Long Term Care Provider Fund by the amount paid to the General
Revenue Fund and Common School Fund in excess of $25,000,000
per month and to decrease the next monthly payments to the
General Revenue Fund and Common School Fund by that same excess
amount.
Out of the 149 mills per cigarette tax imposed by
subsection (a), the revenues received from 4 mills shall be
paid into the Common School Fund each month, not to exceed
$9,000,000 per month. Out of the 149 mills per cigarette tax
imposed by subsection (a), all of the revenues received from 7
mills shall be paid into the Common School Fund each month. Out
of the 149 mills per cigarette tax imposed by subsection (a),
50 mills per cigarette each month shall be paid into the
Healthcare Provider Relief Fund.

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Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, and other than the
moneys from the additional taxes imposed by this amendatory Act
of the 101st General Assembly that must be paid each month
under subsection (c), shall be distributed each month as
follows: first, there shall be paid into the General Revenue
Fund an amount that, when added to the amount paid into the
Common School Fund for that month, equals $29,200,000; then,
from the moneys remaining, if any amounts required to be paid
into the General Revenue Fund in previous months remain unpaid,
those amounts shall be paid into the General Revenue Fund; then
from the moneys remaining, $5,000,000 per month shall be paid
into the School Infrastructure Fund; then, if any amounts
required to be paid into the School Infrastructure Fund in
previous months remain unpaid, those amounts shall be paid into
the School Infrastructure Fund; then the moneys remaining, if
any, shall be paid into the Long-Term Care Provider Fund.
(c) Beginning on July 1, 2019, all of the moneys from the
additional taxes imposed by Public Act 101-31, except for
moneys received from the tax on electronic cigarettes, received

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by the Department of Revenue pursuant to this Act, the
Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995
shall be distributed each month into the Capital Projects Fund.
Moneys (d) Except for moneys received from the additional
taxes imposed by Public Act 101-31, moneys collected from the
tax imposed on little cigars under Section 10-10 of the Tobacco
Products Tax Act of 1995 shall be included with the moneys
collected under the Cigarette Tax Act and the Cigarette Use Tax
Act when making distributions to the Common School Fund, the
Healthcare Provider Relief Fund, the General Revenue Fund, the
School Infrastructure Fund, and the Long-Term Care Provider
Fund under this Section.
When any (e) If the tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases
from the Department by such distributor.
(f) The impact of the tax levied by this Act is imposed
upon the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax

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shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
(g) Each distributor shall collect the tax from the
retailer at or before the time of the sale, shall affix the
stamps as hereinafter required, and shall remit the tax
collected from retailers to the Department, as hereinafter
provided. Any distributor who fails to properly collect and pay
the tax imposed by this Act shall be liable for the tax. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on the effective date of this
amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This
payment, less the discount provided in subsection (b), shall be
due when the distributor first makes a purchase of cigarette
tax stamps after the effective date of this amendatory Act of
1993, or on the first due date of a return under this Act after
the effective date of this amendatory Act of 1993, whichever

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occurs first. Any distributor having cigarettes to which stamps
have been affixed in his possession for sale on December 15,
1997 shall not be required to pay the additional tax imposed by
this amendatory Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
(h) Any distributor having cigarettes in his or her
possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in
subsection (l), is due when the distributor first makes a
purchase of cigarette stamps on or after July 1, 2019 or on the
first due date of a return under this Act occurring on or after
July 1, 2019, whichever occurs first. Those distributors may
elect to pay the additional tax on packages of cigarettes to
which stamps have been affixed and on any stamps in the

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distributor's possession that have not been affixed to packages
of cigarettes in their possession on July 1, 2019 over a period
not to exceed 12 months from the due date of the additional tax
by notifying the Department in writing. The first payment for
distributors making such election is due when the distributor
first makes a purchase of cigarette tax stamps on or after July
1, 2019 or on the first due date of a return under this Act
occurring on or after July 1, 2019, whichever occurs first.
Distributors making such an election are not entitled to take
the discount provided in subsection (l) on such payments.
(i) Any retailer having cigarettes in its his or her
possession on July 1, 2019 June 24, 2012 to which tax stamps
have been affixed is not required to pay the additional tax
that begins on July 1, 2019 June 24, 2012 imposed by this
amendatory Act of the 101st General Assembly this amendatory
Act of the 97th General Assembly on those stamped cigarettes.
Any distributor having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed, and any
distributor having stamps in his or her possession on June 24,
2012 that have not been affixed to packages of cigarettes
before June 24, 2012, is required to pay the additional tax
that begins on June 24, 2012 imposed by this amendatory Act of
the 97th General Assembly to the extent the calendar year 2012
average monthly volume of cigarette stamps in the distributor's
possession exceeds the average monthly volume of cigarette
stamps purchased by the distributor in calendar year 2011. This

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payment, less the discount provided in subsection (b), is due
when the distributor first makes a purchase of cigarette stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Those distributors may elect to pay the
additional tax on packages of cigarettes to which stamps have
been affixed and on any stamps in the distributor's possession
that have not been affixed to packages of cigarettes over a
period not to exceed 12 months from the due date of the
additional tax by notifying the Department in writing. The
first payment for distributors making such election is due when
the distributor first makes a purchase of cigarette tax stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Distributors making such an election are not
entitled to take the discount provided in subsection (b) on
such payments.
(j) Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown

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on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
(k) The amount of the Cigarette Tax imposed by this Act
shall be separately stated, apart from the price of the goods,
by distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
(l) (b) The distributor shall be required to collect the
tax taxes provided under paragraph (a) hereof, and, to cover
the costs of such collection, shall be allowed a discount
during any year commencing July 1st and ending the following
June 30th in accordance with the schedule set out hereinbelow,
which discount shall be allowed at the time of purchase of the
stamps when purchase is required by this Act, or at the time
when the tax is remitted to the Department without the purchase
of stamps from the Department when that method of paying the
tax is required or authorized by this Act. Prior to December 1,
1985, a discount equal to 1 2/3% of the amount of the tax up to
and including the first $700,000 paid hereunder by such
distributor to the Department during any such year; 1 1/3% of
the next $700,000 of tax or any part thereof, paid hereunder by
such distributor to the Department during any such year; 1% of
the next $700,000 of tax, or any part thereof, paid hereunder

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by such distributor to the Department during any such year, and
2/3 of 1% of the amount of any additional tax paid hereunder by
such distributor to the Department during any such year shall
apply.
On and after December 1, 1985, a discount equal to 1.75% of
the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
(m) (c) The taxes herein imposed are in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, or by any political subdivision thereof, or by any
municipal corporation.
(Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19;
101-604, eff. 12-13-19.)
Section 10-59. The Cigarette Tax Act is amended by adding
Section 29.1 as follows:
(35 ILCS 130/29.1 new)
Sec. 29.1. All moneys received by the Department from the

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one-half mill tax imposed by the Sixty-fourth General Assembly
and all interest and penalties, received in connection
therewith under the provisions of this Act shall be paid into
the Metropolitan Fair and Exposition Authority Reconstruction
Fund. All other moneys received by the Department under this
Act shall be paid into the General Revenue Fund in the State
treasury. After there has been paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund sufficient money
to pay in full both principal and interest, all of the
outstanding bonds issued pursuant to the "Fair and Exposition
Authority Reconstruction Act", the State Treasurer and
Comptroller shall transfer to the General Revenue Fund the
balance of moneys remaining in the Metropolitan Fair and
Exposition Authority Reconstruction Fund except for $2,500,000
which shall remain in the Metropolitan Fair and Exposition
Authority Reconstruction Fund and which may be appropriated by
the General Assembly for the corporate purposes of the
Metropolitan Pier and Exposition Authority. All monies
received by the Department in fiscal year 1978 and thereafter
from the one-half mill tax imposed by the Sixty-fourth General
Assembly, and all interest and penalties received in connection
therewith under the provisions of this Act, shall be paid into
the General Revenue Fund, except that the Department shall pay
the first $4,800,000 received in fiscal years 1979 through 2001
from that one-half mill tax into the Metropolitan Fair and
Exposition Authority Reconstruction Fund which monies may be

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appropriated by the General Assembly for the corporate purposes
of the Metropolitan Pier and Exposition Authority.
In fiscal year 2002 and fiscal year 2003, the first
$4,800,000 from the one-half mill tax shall be paid into the
Statewide Economic Development Fund.
All moneys received by the Department in fiscal year 2006
and thereafter from the one-half mill tax imposed by the 64th
General Assembly and all interest and penalties received in
connection with that tax under the provisions of this Act shall
be paid into the General Revenue Fund.
Section 10-60. The Cigarette Use Tax Act is amended by
changing Sections 2 and 35 as follows:
(35 ILCS 135/2) (from Ch. 120, par. 453.32)
Sec. 2. Beginning on July 1, 2019, in place of the
aggregate tax rate of 99 mills previously imposed by this Act,
a tax is imposed upon the privilege of using cigarettes in this
State at the rate of 149 mills per cigarette so used. A tax is
imposed upon the privilege of using cigarettes in this State,
at the rate of 6 mills per cigarette so used. On and after
December 1, 1985, in addition to any other tax imposed by this
Act, a tax is imposed upon the privilege of using cigarettes in
this State at a rate of 4 mills per cigarette so used. On and
after the effective date of this amendatory Act of 1989, in
addition to any other tax imposed by this Act, a tax is imposed

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upon the privilege of using cigarettes in this State at the
rate of 5 mills per cigarette so used. On and after the
effective date of this amendatory Act of 1993, in addition to
any other tax imposed by this Act, a tax is imposed upon the
privilege of using cigarettes in this State at a rate of 7
mills per cigarette so used. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at a rate
of 7 mills per cigarette so used. On and after July 1, 2002, in
addition to any other tax imposed by this Act, a tax is imposed
upon the privilege of using cigarettes in this State at a rate
of 20.0 mills per cigarette so used. Beginning on June 24,
2012, in addition to any other tax imposed by this Act, a tax
is imposed upon the privilege of using cigarettes in this State
at a rate of 50 mills per cigarette so used. The tax taxes
herein imposed shall be in addition to all other occupation or
privilege taxes imposed by the State of Illinois or by any
political subdivision thereof or by any municipal corporation.
If the When any tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp purchases

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from the Department by such distributors.
When the word "tax" is used in this Act, it shall include
any tax or tax rate imposed by this Act and shall mean the
singular of "tax" or the plural "taxes" as the context may
require.
Any retailer having cigarettes in its possession on July 1,
2019 to which tax stamps have been affixed is not required to
pay the additional tax that begins on July 1, 2019 imposed by
this amendatory Act of the 101st General Assembly on those
stamped cigarettes. Any distributor having cigarettes in his or
her possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent that
the volume of affixed and unaffixed stamps in the distributor's
possession on July 1, 2019 exceeds the average monthly volume
of cigarette stamps purchased by the distributor in calendar
year 2018. This payment, less the discount provided in Section
3, is due when the distributor first makes a purchase of
cigarette stamps on or after July 1, 2019 or on the first due
date of a return under this Act occurring on or after July 1,
2019, whichever occurs first. Those distributors may elect to
pay the additional tax on packages of cigarettes to which
stamps have been affixed and on any stamps in the distributor's

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possession that have not been affixed to packages of cigarettes
in their possession on July 1, 2019 over a period not to exceed
12 months from the due date of the additional tax by notifying
the Department in writing. The first payment for distributors
making such election is due when the distributor first makes a
purchase of cigarette tax stamps on or after July 1, 2019 or on
the first due date of a return under this Act occurring on or
after July 1, 2019, whichever occurs first. Distributors making
such an election are not entitled to take the discount provided
in Section 3 on such payments.
Any distributor having cigarettes to which stamps have been
affixed in his possession for sale on the effective date of
this amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This payment
shall be due when the distributor first makes a purchase of
cigarette tax stamps after the effective date of this
amendatory Act of 1993, or on the first due date of a return
under this Act after the effective date of this amendatory Act
of 1993, whichever occurs first. Once a distributor tenders
payment of the additional tax to the Department, the
distributor may purchase stamps from the Department. Any

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distributor having cigarettes to which stamps have been affixed
in his possession for sale on December 15, 1997 shall not be
required to pay the additional tax imposed by this amendatory
Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
Any retailer having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed is not
required to pay the additional tax that begins on June 24, 2012
imposed by this amendatory Act of the 97th General Assembly on
those stamped cigarettes. Any distributor having cigarettes in
his or her possession on June 24, 2012 to which tax stamps have
been affixed, and any distributor having stamps in his or her
possession on June 24, 2012 that have not been affixed to
packages of cigarettes before June 24, 2012, is required to pay
the additional tax that begins on June 24, 2012 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2012 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2011. This payment, less the discount provided in
Section 3, is due when the distributor first makes a purchase
of cigarette stamps on or after June 24, 2012 or on the first

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due date of a return under this Act occurring on or after June
24, 2012, whichever occurs first. Those distributors may elect
to pay the additional tax on packages of cigarettes to which
stamps have been affixed and on any stamps in the distributor's
possession that have not been affixed to packages of cigarettes
over a period not to exceed 12 months from the due date of the
additional tax by notifying the Department in writing. The
first payment for distributors making such election is due when
the distributor first makes a purchase of cigarette tax stamps
on or after June 24, 2012 or on the first due date of a return
under this Act occurring on or after June 24, 2012, whichever
occurs first. Distributors making such an election are not
entitled to take the discount provided in Section 3 on such
payments.
(Source: P.A. 101-31, eff. 6-28-19.)
(35 ILCS 135/35) (from Ch. 120, par. 453.65)
Sec. 35. Distribution of receipts. All moneys received by
the Department under this Act shall be distributed as provided
in subsection (a) of Section 2 of the Cigarette Tax Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-65. The Tobacco Products Tax Act of 1995 is
amended by changing Sections 10-5 and 10-10 as follows:
(35 ILCS 143/10-5)

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Sec. 10-5. Definitions. For purposes of this Act:
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the
purpose of selling tobacco products.
"Cigarette" has the meaning ascribed to the term in Section
1 of the Cigarette Tax Act.
"Contraband little cigar" means:
(1) packages of little cigars containing 20 or 25
little cigars that do not bear a required tax stamp under
this Act;
(2) packages of little cigars containing 20 or 25
little cigars that bear a fraudulent, imitation, or
counterfeit tax stamp;
(3) packages of little cigars containing 20 or 25
little cigars that are improperly tax stamped, including
packages of little cigars that bear only a tax stamp of
another state or taxing jurisdiction; or
(4) packages of little cigars containing other than 20
or 25 little cigars in the possession of a distributor,
retailer or wholesaler, unless the distributor, retailer,
or wholesaler possesses, or produces within the time frame
provided in Section 10-27 or 10-28 of this Act, an invoice
from a stamping distributor, distributor, or wholesaler
showing that the tax on the packages has been or will be
paid.
"Correctional Industries program" means a program run by a

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State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.
(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily.
(3) Any retailer who receives tobacco products on which
the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever

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resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State operated mental health facility.
"Electronic cigarette" means:
(1) any device that employs a battery or other
mechanism to heat a solution or substance to produce a
vapor or aerosol intended for inhalation;
(2) any cartridge or container of a solution or
substance intended to be used with or in the device or to
refill the device; or
(3) any solution or substance, whether or not it
contains nicotine, intended for use in the device.
"Electronic cigarette" includes, but is not limited to, any
electronic nicotine delivery system, electronic cigar,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, or similar product or device, and any component or part
that can be used to build the product or device. "Electronic
cigarette" does not include: cigarettes, as defined in Section
1 of the Cigarette Tax Act; any product approved by the United
States Food and Drug Administration for sale as a tobacco
cessation product, a tobacco dependence product, or for other
medical purposes that is marketed and sold solely for that
approved purpose; any asthma inhaler prescribed by a physician
for that condition that is marketed and sold solely for that
approved purpose; or any therapeutic product approved for use

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under the Compassionate Use of Medical Cannabis Program Act.
"Little cigar" means and includes any roll, made wholly or
in part of tobacco, where such roll has an integrated cellulose
acetate filter and weighs less than 4 pounds per thousand and
the wrapper or cover of which is made in whole or in part of
tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a
person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State operated mental health facility.
Beginning on January 1, 2013, "moist snuff" means any
finely cut, ground, or powdered tobacco that is not intended to
be smoked, but shall not include any finely cut, ground, or
powdered tobacco that is intended to be placed in the nasal
cavity.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or

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consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Stamp" or "stamps" mean the indicia required to be affixed
on a package of little cigars that evidence payment of the tax
on packages of little cigars containing 20 or 25 little cigars
under Section 10-10 of this Act. These stamps shall be the same
stamps used for cigarettes under the Cigarette Tax Act.
"Stamping distributor" means a distributor licensed under
this Act and also licensed as a distributor under the Cigarette
Tax Act or Cigarette Use Tax Act.
"Tobacco products" means any cigars, including little
cigars; cheroots; stogies; periques; granulated, plug cut,
crimp cut, ready rubbed, and other smoking tobacco; snuff
(including moist snuff) or snuff flour; cavendish; plug and
twist tobacco; fine-cut and other chewing tobaccos; shorts;
refuse scraps, clippings, cuttings, and sweeping of tobacco;
and other kinds and forms of tobacco, prepared in such manner
as to be suitable for chewing or smoking in a pipe or
otherwise, or both for chewing and smoking; but does not
include cigarettes as defined in Section 1 of the Cigarette Tax

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Act or tobacco purchased for the manufacture of cigarettes by
cigarette distributors and manufacturers defined in the
Cigarette Tax Act and persons who make, manufacture, or
fabricate cigarettes as a part of a Correctional Industries
program for sale to residents incarcerated in penal
institutions or resident patients of a State operated mental
health facility.
Beginning on July 1, 2019, "tobacco products" also includes
electronic cigarettes.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the
manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or
located, engaged in the business of selling tobacco products to
others for the purpose of resale. "Wholesaler", when used in
this Act, does not include a person licensed as a distributor
under Section 10-20 of this Act unless expressly stated in this
Act.
(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)

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(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed.
(a) Except as otherwise provided in this Section with
respect to little cigars, on the first day of the third month
after the month in which this Act becomes law, a tax is imposed
on any person engaged in business as a distributor of tobacco
products, as defined in Section 10-5, at the rate of (i) 18% of
the wholesale price of tobacco products sold or otherwise
disposed of to retailers or consumers located in this State
prior to July 1, 2012 and (ii) 36% of the wholesale price of
tobacco products sold or otherwise disposed of to retailers or
consumers located in this State beginning on July 1, 2012;
except that, beginning on January 1, 2013, the tax on moist
snuff shall be imposed at a rate of $0.30 per ounce, and a
proportionate tax at the like rate on all fractional parts of
an ounce, sold or otherwise disposed of to retailers or
consumers located in this State; and except that, beginning
July 1, 2019, the tax on electronic cigarettes shall be imposed
at the rate of 15% of the wholesale price of electronic
cigarettes sold or otherwise disposed of to retailers or
consumers located in this State. The tax is in addition to all
other occupation or privilege taxes imposed by the State of
Illinois, by any political subdivision thereof, or by any
municipal corporation. However, the tax is not imposed upon any
activity in that business in interstate commerce or otherwise,
to the extent to which that activity may not, under the

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Constitution and Statutes of the United States, be made the
subject of taxation by this State, and except that, beginning
July 1, 2013, the tax on little cigars shall be imposed at the
same rate, and the proceeds shall be distributed in the same
manner, as the tax imposed on cigarettes under the Cigarette
Tax Act. The tax is also not imposed on sales made to the
United States or any entity thereof.
(b) Notwithstanding subsection (a) of this Section,
stamping distributors of packages of little cigars containing
20 or 25 little cigars sold or otherwise disposed of in this
State shall remit the tax by purchasing tax stamps from the
Department and affixing them to packages of little cigars in
the same manner as stamps are purchased and affixed to
cigarettes under the Cigarette Tax Act, unless the stamping
distributor sells or otherwise disposes of those packages of
little cigars to another stamping distributor. Only persons
meeting the definition of "stamping distributor" contained in
Section 10-5 of this Act may affix stamps to packages of little
cigars containing 20 or 25 little cigars. Stamping distributors
may not sell or dispose of little cigars at retail to consumers
or users at locations where stamping distributors affix stamps
to packages of little cigars containing 20 or 25 little cigars.
(c) The impact of the tax levied by this Act is imposed
upon distributors engaged in the business of selling tobacco
products to retailers or consumers in this State. Whenever a
stamping distributor brings or causes to be brought into this

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State from without this State, or purchases from without or
within this State, any packages of little cigars containing 20
or 25 little cigars upon which there are no tax stamps affixed
as required by this Act, for purposes of resale or disposal in
this State to a person not a stamping distributor, then such
stamping distributor shall pay the tax to the Department and
add the amount of the tax to the price of such packages sold by
such stamping distributor. Payment of the tax shall be
evidenced by a stamp or stamps affixed to each package of
little cigars containing 20 or 25 little cigars.
Stamping distributors paying the tax to the Department on
packages of little cigars containing 20 or 25 little cigars
sold to other distributors, wholesalers or retailers shall add
the amount of the tax to the price of the packages of little
cigars containing 20 or 25 little cigars sold by such stamping
distributors.
(d) Beginning on January 1, 2013, the tax rate imposed per
ounce of moist snuff may not exceed 15% of the tax imposed upon
a package of 20 cigarettes pursuant to the Cigarette Tax Act.
(e) All moneys received by the Department under this Act
from sales occurring prior to July 1, 2012 shall be paid into
the Long-Term Care Provider Fund of the State Treasury. Of the
moneys received by the Department from sales occurring on or
after July 1, 2012, except for moneys received from the tax
imposed on the sale of little cigars, 50% shall be paid into
the Long-Term Care Provider Fund and 50% shall be paid into the

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Healthcare Provider Relief Fund. Beginning July 1, 2013, all
moneys received by the Department under this Act from the tax
imposed on little cigars shall be distributed as provided in
subsection (a) of Section 2 of the Cigarette Tax Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-75. The Motor Vehicle Retail Installment Sales
Act is amended by changing Section 11.1 as follows:
(815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
Sec. 11.1.
(a) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2008 until January 1,
2020, of $150, which shall be subject to an annual rate
adjustment equal to the percentage of change in the Bureau of
Labor Statistics Consumer Price Index. Every retail
installment contract under this Act shall contain or be
accompanied by a notice containing the following information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE

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CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(b) A seller in a retail installment contract may add a
"documentary fee" for processing documents and performing
services related to closing of a sale. The maximum amount that
may be charged by a seller for a documentary fee is the base
documentary fee beginning January 1, 2020, of $300, which shall
be subject to an annual rate adjustment equal to the percentage
of change in the Bureau of Labor Statistics Consumer Price
Index. Every retail installment contract under this Act shall
contain or be accompanied by a notice containing the following
information:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
(Source: P.A. 101-31, eff. 6-28-19.)
(30 ILCS 559/Act rep.)

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Section 10-100. The Illinois Works Jobs Program Act is
repealed.
(30 ILCS 105/5.895 rep.)
Section 10-120. The State Finance Act is amended by
repealing Section 5.895, as added by Public Act 101-31.
Section 10-125. The Illinois Procurement Code is amended by
changing Section 20-10 as follows:
(30 ILCS 500/20-10)
(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
98-1076, 99-906 and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through

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an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the
winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the

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correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria
set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 calendar days
after the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered

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impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
Section 1-56, subsections (a) and (c) of Section 1-75 and
subsection (d) of Section 1-78 of the Illinois Power Agency Act
and Section 16-111.5(c) of the Public Utilities Act and to
procure renewable energy resources under Section 1-56 of the
Illinois Power Agency Act. These alternative procedures shall
be set forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the

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Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,

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and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17; 101-31,
eff. 6-28-19.)
(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
98-1076, 99-906, and 100-43)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for bids
shall be published in the Illinois Procurement Bulletin at
least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or more
witnesses at the time and place designated in the invitation
for bids. The name of each bidder, including earned and applied
bid credit from the Illinois Works Jobs Program Act, the amount
of each bid, and other relevant information as may be specified
by rule shall be recorded. After the award of the contract, the

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winning bid and the record of each unsuccessful bid shall be
open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for bids,
which may include criteria to determine acceptability such as
inspection, testing, quality, workmanship, delivery, and
suitability for a particular purpose. Those criteria that will
affect the bid price and be considered in evaluation for award,
such as discounts, transportation costs, and total or life
cycle costs, shall be objectively measurable. The invitation
for bids shall set forth the evaluation criteria to be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall be
supported by written determination made by a State purchasing
officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and criteria

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set forth in the invitation for bids, except when a State
purchasing officer determines it is not in the best interest of
the State and by written explanation determines another bidder
shall receive the award. The explanation shall appear in the
appropriate volume of the Illinois Procurement Bulletin. The
written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total contract
price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the Legislative
Audit Commission and the Procurement Policy Board, and be made
available for inspection by the public, within 30 days after
the agency's decision to award the contract.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.

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(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
subsections (a) and (c) of Section 1-75 and subsection (d) of
Section 1-78 of the Illinois Power Agency Act and Section
16-111.5(c) of the Public Utilities Act and to procure
renewable energy resources under Section 1-56 of the Illinois
Power Agency Act. These alternative procedures shall be set
forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate volume
of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.

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Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of bids
shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days after
the auction by written notice to the lowest responsible bidder,
or all bids shall be rejected except as otherwise provided in
this Code. Extensions of the date for the award may be made by
mutual written consent of the State purchasing officer and the
lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17; 101-31,
eff. 6-28-19.)
Section 10-130. The Prevailing Wage Act is amended by

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changing Section 5 as follows:
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before January
1, 2014 (the effective date of Public Act 98-328) and for a
period of 5 years from the date of the last payment made on
or after January 1, 2014 (the effective date of Public Act
98-328) on a contract or subcontract for public works,
records of all laborers, mechanics, and other workers
employed by them on the project; the records shall include
(i) the worker's name, (ii) the worker's address, (iii) the
worker's telephone number when available, (iv) the last 4
digits of the worker's social security number, (v) the
worker's gender, (vi) the worker's race, (vii) the worker's
ethnicity, (viii) veteran status, (ix) the worker's
classification or classifications, (x) the worker's skill
level, such as apprentice or journeyman, (xi) (x) the
worker's gross and net wages paid in each pay period, (xii)
(xi) the worker's number of hours worked each day, (xiii)
(xii) the worker's starting and ending times of work each
day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
the worker's hourly overtime wage rate, (xvi) (xv) the

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worker's hourly fringe benefit rates, (xvii) (xvi) the name
and address of each fringe benefit fund, (xviii) (xvii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) (xviii) the plan administrator of each fringe
benefit, if applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until
the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified
electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the
State agency. A certified payroll must be filed for only
those calendar months during which construction on a public
works project has occurred. The certified payroll shall
consist of a complete copy of the records identified in
paragraph (1) of this subsection (a), but may exclude the
starting and ending times of work each day. The certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:

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(i) he or she has examined the certified payroll records
required to be submitted by the Act and such records are
true and accurate; (ii) the hourly rate paid to each worker
is not less than the general prevailing rate of hourly
wages required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll that
he or she knows to be false is a Class A misdemeanor. A
general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or
subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be filed
and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1, 2014

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(the effective date of Public Act 98-328) for a period of 5
years, from the date of the last payment for work on a
contract or subcontract for public works or until the
Department of Labor activates the database created under
Section 5.1, whichever is less. After the activation of the
database created under Section 5.1, the Department of Labor
rather than the public body in charge of the project shall
keep the records and maintain the database. The records
submitted in accordance with this paragraph (2) of
subsection (a) shall be considered public records, except
an employee's address, telephone number, social security
number, race, ethnicity, and gender, and made available in
accordance with the Freedom of Information Act. The public
body shall accept any reasonable submissions by the
contractor that meet the requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.

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(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) (xiv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/Act rep.)
Section 10-200. The Sports Wagering Act is repealed.
(30 ILCS 105/5.896 rep.)
Section 10-210. The State Finance Act is amended by
repealing Section 5.896, as added by Public Act 101-31.
Section 10-215. The Illinois Gambling Act is amended by
changing Section 13 as follows:

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(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of conducting
riverboat gambling operations, based on the adjusted gross
receipts received by a licensed owner from gambling games
authorized under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act at

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the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
(a-3) Beginning July 1, 2003, a privilege tax is imposed on
persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;

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32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.
The privilege tax imposed under this subsection (a-3) shall
no longer be imposed beginning on the earlier of (i) July 1,
2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act. For the purposes of this subsection
(a-3), the term "dormant license" means an owners license that
is authorized by this Act under which no riverboat gambling
operations are being conducted on June 20, 2003.

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(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed and ending upon the
imposition of the privilege tax under subsection (a-5) of this
Section, a privilege tax is imposed on persons engaged in the
business of conducting gambling operations, other than
licensed managers conducting riverboat gambling operations on
behalf of the State, based on the adjusted gross receipts
received by a licensed owner from gambling games authorized
under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
For the imposition of the privilege tax in this subsection
(a-4), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not

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be included in the determination of adjusted gross receipts.
(a-5) Beginning on the first day that an owners licensee
under paragraph (1), (2), (3), (4), (5), or (6) of subsection
(e-5) of Section 7 conducts gambling operations, either in a
temporary facility or a permanent facility, a privilege tax is
imposed on persons engaged in the business of conducting
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by such licensee from the
gambling games authorized under this Act. The privilege tax for
all gambling games other than table games, including, but not
limited to, slot machines, video game of chance gambling, and
electronic gambling games shall be at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of

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$200,000,000.
The privilege tax for table games shall be at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
Notwithstanding the provisions of this subsection (a-5),
for the first 10 years that the privilege tax is imposed under
this subsection (a-5), the privilege tax shall be imposed on
the modified annual adjusted gross receipts of a riverboat or
casino conducting gambling operations in the City of East St.
Louis, unless:
(1) the riverboat or casino fails to employ at least
450 people;
(2) the riverboat or casino fails to maintain
operations in a manner consistent with this Act or is not a
viable riverboat or casino subject to the approval of the
Board; or
(3) the owners licensee is not an entity in which
employees participate in an employee stock ownership plan.
As used in this subsection (a-5), "modified annual adjusted

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gross receipts" means:
(A) for calendar year 2020, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross receipts
for 2018;
(B) for calendar year 2021, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross receipts
for 2019; and
(C) for calendar years 2022 through 2029, the annual
adjusted gross receipts for the current year minus the
difference between an amount equal to the average annual
adjusted gross receipts from a riverboat or casino
conducting gambling operations in the City of East St.
Louis for 3 years preceding the current year and the annual
adjusted gross receipts for the immediately preceding
year.
(a-5.5) In addition to the privilege tax imposed under
subsection (a-5), a privilege tax is imposed on the owners
licensee under paragraph (1) of subsection (e-5) of Section 7

HB5561 - 263 - LRB101 17547 JWD 66965 b
at the rate of one-third of the owners licensee's adjusted
gross receipts.
For the imposition of the privilege tax in this subsection
(a-5.5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-6) From the effective date of this amendatory Act of the
101st General Assembly until June 30, 2023, an owners licensee
that conducted gambling operations prior to January 1, 2011
shall receive a dollar-for-dollar credit against the tax
imposed under this Section for any renovation or construction
costs paid by the owners licensee, but in no event shall the
credit exceed $2,000,000.
Additionally, from the effective date of this amendatory
Act of the 101st General Assembly until December 31, 2022, an
owners licensee that (i) is located within 15 miles of the
Missouri border, and (ii) has at least 3 riverboats, casinos,
or their equivalent within a 45-mile radius, may be authorized
to relocate to a new location with the approval of both the
unit of local government designated as the home dock and the
Board, so long as the new location is within the same unit of
local government and no more than 3 miles away from its
original location. Such owners licensee shall receive a credit
against the tax imposed under this Section equal to 8% of the
total project costs, as approved by the Board, for any
renovation or construction costs paid by the owners licensee

HB5561 - 264 - LRB101 17547 JWD 66965 b
for the construction of the new facility, provided that the new
facility is operational by July 1, 2022. In determining whether
or not to approve a relocation, the Board must consider the
extent to which the relocation will diminish the gaming
revenues received by other Illinois gaming facilities.
(a-7) Beginning in the initial adjustment year and through
the final adjustment year, if the total obligation imposed
pursuant to either subsection (a-5) or (a-6) will result in an
owners licensee receiving less after-tax adjusted gross
receipts than it received in calendar year 2018, then the total
amount of privilege taxes that the owners licensee is required
to pay for that calendar year shall be reduced to the extent
necessary so that the after-tax adjusted gross receipts in that
calendar year equals the after-tax adjusted gross receipts in
calendar year 2018, but the privilege tax reduction shall not
exceed the annual adjustment cap. If pursuant to this
subsection (a-7), the total obligation imposed pursuant to
either subsection (a-5) or (a-6) shall be reduced, then the
owners licensee shall not receive a refund from the State at
the end of the subject calendar year but instead shall be able
to apply that amount as a credit against any payments it owes
to the State in the following calendar year to satisfy its
total obligation under either subsection (a-5) or (a-6). The
credit for the final adjustment year shall occur in the
calendar year following the final adjustment year.
If an owners licensee that conducted gambling operations

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prior to January 1, 2019 expands its riverboat or casino,
including, but not limited to, with respect to its gaming
floor, additional non-gaming amenities such as restaurants,
bars, and hotels and other additional facilities, and incurs
construction and other costs related to such expansion from the
effective date of this amendatory Act of the 101st General
Assembly until the 5th anniversary of the effective date of
this amendatory Act of the 101st General Assembly, then for
each $15,000,000 spent for any such construction or other costs
related to expansion paid by the owners licensee, the final
adjustment year shall be extended by one year and the annual
adjustment cap shall increase by 0.2% of adjusted gross
receipts during each calendar year until and including the
final adjustment year. No further modifications to the final
adjustment year or annual adjustment cap shall be made after
$75,000,000 is incurred in construction or other costs related
to expansion so that the final adjustment year shall not extend
beyond the 9th calendar year after the initial adjustment year,
not including the initial adjustment year, and the annual
adjustment cap shall not exceed 4% of adjusted gross receipts
in a particular calendar year. Construction and other costs
related to expansion shall include all project related costs,
including, but not limited to, all hard and soft costs,
financing costs, on or off-site ground, road or utility work,
cost of gaming equipment and all other personal property,
initial fees assessed for each incremental gaming position, and

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the cost of incremental land acquired for such expansion. Soft
costs shall include, but not be limited to, legal fees,
architect, engineering and design costs, other consultant
costs, insurance cost, permitting costs, and pre-opening costs
related to the expansion, including, but not limited to, any of
the following: marketing, real estate taxes, personnel,
training, travel and out-of-pocket expenses, supply,
inventory, and other costs, and any other project related soft
costs.
To be eligible for the tax credits in subsection (a-6), all
construction contracts shall include a requirement that the
contractor enter into a project labor agreement with the
building and construction trades council with geographic
jurisdiction of the location of the proposed gaming facility.
Notwithstanding any other provision of this subsection
(a-7), this subsection (a-7) does not apply to an owners
licensee unless such owners licensee spends at least
$15,000,000 on construction and other costs related to its
expansion, excluding the initial fees assessed for each
incremental gaming position.
This subsection (a-7) does not apply to owners licensees
authorized pursuant to subsection (e-5) of Section 7 of this
Act.
For purposes of this subsection (a-7):
"Building and construction trades council" means any
organization representing multiple construction entities that

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are monitoring or attentive to compliance with public or
workers' safety laws, wage and hour requirements, or other
statutory requirements or that are making or maintaining
collective bargaining agreements.
"Initial adjustment year" means the year commencing on
January 1 of the calendar year immediately following the
earlier of the following:
(1) the commencement of gambling operations, either in
a temporary or permanent facility, with respect to the
owners license authorized under paragraph (1) of
subsection (e-5) of Section 7 of this Act; or
(2) 24 months after the effective date of this
amendatory Act of the 101st General Assembly, provided the
initial adjustment year shall not commence earlier than 12
months after the effective date of this amendatory Act of
the 101st General Assembly.
"Final adjustment year" means the 2nd calendar year after
the initial adjustment year, not including the initial
adjustment year, and as may be extended further as described in
this subsection (a-7).
"Annual adjustment cap" means 3% of adjusted gross receipts
in a particular calendar year, and as may be increased further
as otherwise described in this subsection (a-7).
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.

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(a-9) Beginning on January 1, 2020, the calculation of
gross receipts or adjusted gross receipts, for the purposes of
this Section, for a riverboat, a casino, or an organization
gaming facility shall not include the dollar amount of
non-cashable vouchers, coupons, and electronic promotions
redeemed by wagerers upon the riverboat, in the casino, or in
the organization gaming facility up to and including an amount
not to exceed 20% of a riverboat's, a casino's, or an
organization gaming facility's adjusted gross receipts.
The Illinois Gaming Board shall submit to the General
Assembly a comprehensive report no later than March 31, 2023
detailing, at a minimum, the effect of removing non-cashable
vouchers, coupons, and electronic promotions from this
calculation on net gaming revenues to the State in calendar
years 2020 through 2022, the increase or reduction in wagerers
as a result of removing non-cashable vouchers, coupons, and
electronic promotions from this calculation, the effect of the
tax rates in subsection (a-5) on net gaming revenues to this
State, and proposed modifications to the calculation.
(a-10) The taxes imposed by this Section shall be paid by
the licensed owner or the organization gaming licensee to the
Board not later than 5:00 o'clock p.m. of the day after the day
when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners

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licensee, other than an owners licensee that admitted 1,000,000
persons or fewer in calendar year 2004, must, in addition to
the payment of all amounts otherwise due under this Section,
pay to the Board a reconciliation payment in the amount, if
any, by which the licensed owner's base amount exceeds the
amount of net privilege tax paid by the licensed owner to the
Board in the then current State fiscal year. A licensed owner's
net privilege tax obligation due for the balance of the State
fiscal year shall be reduced up to the total of the amount paid
by the licensed owner in its June 15 reconciliation payment.
The obligation imposed by this subsection (a-15) is binding on
any person, firm, corporation, or other entity that acquires an
ownership interest in any such owners license. The obligation
imposed under this subsection (a-15) terminates on the earliest
of: (i) July 1, 2007, (ii) the first day after the effective
date of this amendatory Act of the 94th General Assembly that
riverboat gambling operations are conducted pursuant to a
dormant license, (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses initially
authorized under this Act, or (iv) the first day that a
licensee under the Illinois Horse Racing Act of 1975 conducts
gaming operations with slot machines or other electronic gaming
devices. The Board must reduce the obligation imposed under
this subsection (a-15) by an amount the Board deems reasonable
for any of the following reasons: (A) an act or acts of God,

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(B) an act of bioterrorism or terrorism or a bioterrorism or
terrorism threat that was investigated by a law enforcement
agency, or (C) a condition beyond the control of the owners
licensee that does not result from any act or omission by the
owners licensee or any of its agents and that poses a hazardous
threat to the health and safety of patrons. If an owners
licensee pays an amount in excess of its liability under this
Section, the Board shall apply the overpayment to future
payments required under this Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.
For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a

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licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to subsection
(b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of Public
Act 94-673 with respect to the amount of the payments required
to be made under this subsection by an owners licensee to the
Board.
(b) From Until January 1, 1998, 25% of the tax revenue
deposited in the State Gaming Fund under this Section shall be
paid, subject to appropriation by the General Assembly, to the
unit of local government which is designated as the home dock
of the riverboat. Beginning January 1, 1998, from the tax
revenue from riverboat or casino gambling deposited in the
State Gaming Fund under this Section, an amount equal to 5% of
adjusted gross receipts generated by a riverboat or a casino,
other than a riverboat or casino designated in paragraph (1),
(3), or (4) of subsection (e-5) of Section 7, shall be paid
monthly, subject to appropriation by the General Assembly, to
the unit of local government in which the casino is located or
that is designated as the home dock of the riverboat.
Notwithstanding anything to the contrary, beginning on the
first day that an owners licensee under paragraph (1), (2),
(3), (4), (5), or (6) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, and for 2 years thereafter, a unit of local

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government designated as the home dock of a riverboat whose
license was issued before January 1, 2019, other than a
riverboat conducting gambling operations in the City of East
St. Louis, shall not receive less under this subsection (b)
than the amount the unit of local government received under
this subsection (b) in calendar year 2018. Notwithstanding
anything to the contrary and because the City of East St. Louis
is a financially distressed city, beginning on the first day
that an owners licensee under paragraph (1), (2), (3), (4),
(5), or (6) of subsection (e-5) of Section 7 conducts gambling
operations, either in a temporary facility or a permanent
facility, and for 10 years thereafter, a unit of local
government designated as the home dock of a riverboat
conducting gambling operations in the City of East St. Louis
shall not receive less under this subsection (b) than the
amount the unit of local government received under this
subsection (b) in calendar year 2018.
From the tax revenue deposited in the State Gaming Fund
pursuant to riverboat or casino gambling operations conducted
by a licensed manager on behalf of the State, an amount equal
to 5% of adjusted gross receipts generated pursuant to those
riverboat or casino gambling operations shall be paid monthly,
subject to appropriation by the General Assembly, to the unit
of local government that is designated as the home dock of the
riverboat upon which those riverboat gambling operations are
conducted or in which the casino is located.

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From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (3) of subsection (e-5) of
Section 7 shall be divided and remitted monthly, subject to
appropriation, as follows: 70% to Waukegan, 10% to Park City,
15% to North Chicago, and 5% to Lake County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 70% to the City of Rockford, 5% to the City of
Loves Park, 5% to the Village of Machesney, and 20% to
Winnebago County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (5) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 2% to the unit of local government in which the
riverboat or casino is located, and 3% shall be distributed:
(A) in accordance with a regional capital development plan
entered into by the following communities: Village of Beecher,
City of Blue Island, Village of Burnham, City of Calumet City,
Village of Calumet Park, City of Chicago Heights, City of

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Country Club Hills, Village of Crestwood, Village of Crete,
Village of Dixmoor, Village of Dolton, Village of East Hazel
Crest, Village of Flossmoor, Village of Ford Heights, Village
of Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village of
Monee, City of Oak Forest, Village of Olympia Fields, Village
of Orland Hills, Village of Orland Park, City of Palos Heights,
Village of Park Forest, Village of Phoenix, Village of Posen,
Village of Richton Park, Village of Riverdale, Village of
Robbins, Village of Sauk Village, Village of South Chicago
Heights, Village of South Holland, Village of Steger, Village
of Thornton, Village of Tinley Park, Village of University Park
and Village of Worth; or (B) if no regional capital development
plan exists, equally among the communities listed in item (A)
to be used for capital expenditures or public pension payments,
or both.
Units of local government may refund any portion of the
payment that they receive pursuant to this subsection (b) to
the riverboat or casino.
(b-4) Beginning on the first day the licensee under
paragraph (5) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, and ending on July 31, 2042, from the tax
revenue deposited in the State Gaming Fund under this Section,
$5,000,000 shall be paid annually, subject to appropriation, to

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the host municipality of that owners licensee of a license
issued or re-issued pursuant to Section 7.1 of this Act before
January 1, 2012. Payments received by the host municipality
pursuant to this subsection (b-4) may not be shared with any
other unit of local government.
(b-5) Beginning on the effective date of this amendatory
Act of the 101st General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 3% of adjusted gross receipts generated by each
organization gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to a municipality other than the Village of Stickney
in which each organization gaming facility is located or, if
the organization gaming facility is not located within a
municipality, to the county in which the organization gaming
facility is located, except as otherwise provided in this
Section. From the tax revenue deposited in the State Gaming
Fund under this Section, an amount equal to 3% of adjusted
gross receipts generated by an organization gaming facility
located in the Village of Stickney shall be paid monthly,
subject to appropriation by the General Assembly, as follows:
25% to the Village of Stickney, 5% to the City of Berwyn, 50%
to the Town of Cicero, and 20% to the Stickney Public Health
District.
From the tax revenue deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross

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receipts generated by an organization gaming facility located
in the City of Collinsville shall be paid monthly, subject to
appropriation by the General Assembly, as follows: 30% to the
City of Alton, 30% to the City of East St. Louis, and 40% to the
City of Collinsville.
Municipalities and counties may refund any portion of the
payment that they receive pursuant to this subsection (b-5) to
the organization gaming facility.
(b-6) Beginning on the effective date of this amendatory
Act of the 101st General Assembly, from the tax revenue
deposited in the State Gaming Fund under this Section, an
amount equal to 2% of adjusted gross receipts generated by an
organization gaming facility located outside Madison County
shall be paid monthly, subject to appropriation by the General
Assembly, to the county in which the organization gaming
facility is located for the purposes of its criminal justice
system or health care system.
Counties may refund any portion of the payment that they
receive pursuant to this subsection (b-6) to the organization
gaming facility.
(b-7) From the tax revenue from the organization gaming
licensee located in one of the following townships of Cook
County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
Worth, an amount equal to 5% of the adjusted gross receipts
generated by that organization gaming licensee shall be
remitted monthly, subject to appropriation, as follows: 2% to

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the unit of local government in which the organization gaming
licensee is located, and 3% shall be distributed: (A) in
accordance with a regional capital development plan entered
into by the following communities: Village of Beecher, City of
Blue Island, Village of Burnham, City of Calumet City, Village
of Calumet Park, City of Chicago Heights, City of Country Club
Hills, Village of Crestwood, Village of Crete, Village of
Dixmoor, Village of Dolton, Village of East Hazel Crest,
Village of Flossmoor, Village of Ford Heights, Village of
Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village of
Monee, City of Oak Forest, Village of Olympia Fields, Village
of Orland Hills, Village of Orland Park, City of Palos Heights,
Village of Park Forest, Village of Phoenix, Village of Posen,
Village of Richton Park, Village of Riverdale, Village of
Robbins, Village of Sauk Village, Village of South Chicago
Heights, Village of South Holland, Village of Steger, Village
of Thornton, Village of Tinley Park, Village of University
Park, and Village of Worth; or (B) if no regional capital
development plan exists, equally among the communities listed
in item (A) to be used for capital expenditures or public
pension payments, or both.
(b-8) In lieu of the payments under subsection (b) of this
Section, the tax revenue from the privilege tax imposed by
subsection (a-5.5) shall be paid monthly, subject to

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appropriation by the General Assembly, to the City of Chicago
and shall be expended or obligated by the City of Chicago for
pension payments in accordance with Public Act 99-506.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video Gaming
Act, (ii) for distribution to the Department of State Police
and to the Department of Revenue for the enforcement of this
Act, and the Video Gaming Act, and (iii) to the Department of
Human Services for the administration of programs to treat
problem gambling. The Board's annual appropriations request
must separately state its funding needs for the regulation of
gaming authorized under Section 7.7, riverboat gaming, casino
gaming, video gaming, and sports wagering.
(c-2) An amount equal to 2% of the adjusted gross receipts
generated by an organization gaming facility located within a
home rule county with a population of over 3,000,000
inhabitants shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to the home rule
county in which the organization gaming licensee is located for
the purpose of enhancing the county's criminal justice system.
(c-3) Appropriations, as approved by the General Assembly,
may be made from the tax revenue deposited into the State
Gaming Fund from organization gaming licensees pursuant to this
Section for the administration and enforcement of this Act.
(c-4) After payments required under subsections (b),

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(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
the tax revenue from organization gaming licensees deposited
into the State Gaming Fund under this Section, all remaining
amounts from organization gaming licensees shall be
transferred into the Capital Projects Fund.
(c-5) (Blank). Before May 26, 2006 (the effective date of
Public Act 94-804) and beginning on the effective date of this
amendatory Act of the 95th General Assembly, unless any
organization licensee under the Illinois Horse Racing Act of
1975 begins to operate a slot machine or video game of chance
under the Illinois Horse Racing Act of 1975 or this Act, after
the payments required under subsections (b) and (c) have been
made, an amount equal to 15% of the adjusted gross receipts of
(1) an owners licensee that relocates pursuant to Section 11.2,
(2) an owners licensee conducting riverboat gambling
operations pursuant to an owners license that is initially
issued after June 25, 1999, or (3) the first riverboat gambling
operations conducted by a licensed manager on behalf of the
State under Section 7.3, whichever comes first, shall be paid
from the State Gaming Fund into the Horse Racing Equity Fund.
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity
Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the

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adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a licensed
manager on behalf of the State under Section 7.3, whichever
comes first, shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to each home rule
county with a population of over 3,000,000 inhabitants for the
purpose of enhancing the county's criminal justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-21) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
been made, an amount equal to 2% of the adjusted gross receipts
generated by the owners licensee under paragraph (1) of
subsection (e-5) of Section 7 shall be paid, subject to
appropriation from the General Assembly, from the State Gaming
Fund to the home rule county in which the owners licensee is
located for the purpose of enhancing the county's criminal
justice system.
(c-22) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and

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(c-21) have been made, an amount equal to 2% of the adjusted
gross receipts generated by the owners licensee under paragraph
(5) of subsection (e-5) of Section 7 shall be paid, subject to
appropriation from the General Assembly, from the State Gaming
Fund to the home rule county in which the owners licensee is
located for the purpose of enhancing the county's criminal
justice system.
(c-25) From On July 1, 2013 and each July 1
thereafterthrough July 1, 2019, $1,600,000 shall be
transferred from the State Gaming Fund to the Chicago State
University Education Improvement Fund.
On July 1, 2020 and each July 1 thereafter, $3,000,000
shall be transferred from the State Gaming Fund to the Chicago
State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any amount
transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming
Fund to the School Infrastructure Fund.
(d) From time to time, the Board shall transfer the
remainder of the funds generated by this Act into the Education
Assistance Fund, created by Public Act 86-0018, of the State of

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Illinois.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 101-31, Article 25, Section 25-910, eff. 6-28-19;
101-31, Article 35, Section 35-55, eff. 6-28-19; revised
8-23-19.)
Section 10-220. The Criminal Code of 2012 is amended by
changing Sections 28-1, 28-3, and 28-5 as follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for money
or other thing of value, unless excepted in subsection (b)
of this Section;
(2) knowingly makes a wager upon the result of any

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game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or delivery
of such property, but by the payment only of differences in
prices thereof; however, the issuance, purchase, sale,
exercise, endorsement or guarantee, by or through a person
registered with the Secretary of State pursuant to Section
8 of the Illinois Securities Law of 1953, or by or through
a person exempt from such registration under said Section
8, of a put, call, or other option to buy or sell
securities which have been registered with the Secretary of
State or which are exempt from such registration under
Section 3 of the Illinois Securities Law of 1953 is not
gambling within the meaning of this paragraph (4);
(5) knowingly owns or possesses any book, instrument or
apparatus by means of which bets or wagers have been, or

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are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or sells,
offers to sell or transfers any ticket or share for any
lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized by
and conducted in accordance with the laws of Illinois or
any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly

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installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such
information for use in news reporting of sporting events or
contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6), (6.1), (8),
and (8.1), and (15) of subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the

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acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming Act,
by manufacturers, distributors, and terminal operators
licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This exemption
includes any activity conducted by the Department of
Revenue to sell lottery tickets pursuant to the provisions
of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act.

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(8.1) The purchase of raffle chances for a raffle
conducted in accordance with the Raffles and Poker Runs
Act.
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games conducted on riverboats when
authorized by the Illinois Riverboat Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of the
Savings Bank Act, Section 42.7 of the Illinois Credit Union
Act, Section 5136B of the National Bank Act (12 U.S.C.
25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C.
1463).
(15) Sports wagering when conducted in accordance with
the Sports Wagering Act.
(c) Sentence.

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Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a Class
4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 101-31, Article 25, Section 25-915, eff. 6-28-19;
101-31, Article 35, Section 35-80, eff. 6-28-19; 101-109, eff.
7-19-19; revised 8-6-19.)
(720 ILCS 5/28-3) (from Ch. 38, par. 28-3)
Sec. 28-3. Keeping a gambling place. A "gambling place" is
any real estate, vehicle, boat, or any other property
whatsoever used for the purposes of gambling other than
gambling conducted in the manner authorized by the Riverboat
Illinois Gambling Act, the Sports Wagering Act, or the Video
Gaming Act. Any person who knowingly permits any premises or
property owned or occupied by him or under his control to be
used as a gambling place commits a Class A misdemeanor. Each
subsequent offense is a Class 4 felony. When any premises is
determined by the circuit court to be a gambling place:
(a) Such premises is a public nuisance and may be
proceeded against as such, and
(b) All licenses, permits or certificates issued by the
State of Illinois or any subdivision or public agency

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thereof authorizing the serving of food or liquor on such
premises shall be void; and no license, permit or
certificate so cancelled shall be reissued for such
premises for a period of 60 days thereafter; nor shall any
person convicted of keeping a gambling place be reissued
such license for one year from his conviction and, after a
second conviction of keeping a gambling place, any such
person shall not be reissued such license, and
(c) Such premises of any person who knowingly permits
thereon a violation of any Section of this Article shall be
held liable for, and may be sold to pay any unsatisfied
judgment that may be recovered and any unsatisfied fine
that may be levied under any Section of this Article.
(Source: P.A. 101-31, Article 25, Section 25-915, eff. 6-28-19;
101-31, Article 35, Section 35-80, eff. 6-28-19; revised
7-12-19.)
(720 ILCS 5/28-5) (from Ch. 38, par. 28-5)
Sec. 28-5. Seizure of gambling devices and gambling funds.
(a) Every device designed for gambling which is incapable
of lawful use or every device used unlawfully for gambling
shall be considered a "gambling device", and shall be subject
to seizure, confiscation and destruction by the Department of
State Police or by any municipal, or other local authority,
within whose jurisdiction the same may be found. As used in
this Section, a "gambling device" includes any slot machine,

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and includes any machine or device constructed for the
reception of money or other thing of value and so constructed
as to return, or to cause someone to return, on chance to the
player thereof money, property or a right to receive money or
property. With the exception of any device designed for
gambling which is incapable of lawful use, no gambling device
shall be forfeited or destroyed unless an individual with a
property interest in said device knows of the unlawful use of
the device.
(b) Every gambling device shall be seized and forfeited to
the county wherein such seizure occurs. Any money or other
thing of value integrally related to acts of gambling shall be
seized and forfeited to the county wherein such seizure occurs.
(c) If, within 60 days after any seizure pursuant to
subparagraph (b) of this Section, a person having any property
interest in the seized property is charged with an offense, the
court which renders judgment upon such charge shall, within 30
days after such judgment, conduct a forfeiture hearing to
determine whether such property was a gambling device at the
time of seizure. Such hearing shall be commenced by a written
petition by the State, including material allegations of fact,
the name and address of every person determined by the State to
have any property interest in the seized property, a
representation that written notice of the date, time and place
of such hearing has been mailed to every such person by
certified mail at least 10 days before such date, and a request

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for forfeiture. Every such person may appear as a party and
present evidence at such hearing. The quantum of proof required
shall be a preponderance of the evidence, and the burden of
proof shall be on the State. If the court determines that the
seized property was a gambling device at the time of seizure,
an order of forfeiture and disposition of the seized property
shall be entered: a gambling device shall be received by the
State's Attorney, who shall effect its destruction, except that
valuable parts thereof may be liquidated and the resultant
money shall be deposited in the general fund of the county
wherein such seizure occurred; money and other things of value
shall be received by the State's Attorney and, upon
liquidation, shall be deposited in the general fund of the
county wherein such seizure occurred. However, in the event
that a defendant raises the defense that the seized slot
machine is an antique slot machine described in subparagraph
(b) (7) of Section 28-1 of this Code and therefore he is exempt
from the charge of a gambling activity participant, the seized
antique slot machine shall not be destroyed or otherwise
altered until a final determination is made by the Court as to
whether it is such an antique slot machine. Upon a final
determination by the Court of this question in favor of the
defendant, such slot machine shall be immediately returned to
the defendant. Such order of forfeiture and disposition shall,
for the purposes of appeal, be a final order and judgment in a
civil proceeding.

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(d) If a seizure pursuant to subparagraph (b) of this
Section is not followed by a charge pursuant to subparagraph
(c) of this Section, or if the prosecution of such charge is
permanently terminated or indefinitely discontinued without
any judgment of conviction or acquittal (1) the State's
Attorney shall commence an in rem proceeding for the forfeiture
and destruction of a gambling device, or for the forfeiture and
deposit in the general fund of the county of any seized money
or other things of value, or both, in the circuit court and (2)
any person having any property interest in such seized gambling
device, money or other thing of value may commence separate
civil proceedings in the manner provided by law.
(e) Any gambling device displayed for sale to a riverboat
gambling operation, casino gambling operation, or organization
gaming facility or used to train occupational licensees of a
riverboat gambling operation, casino gambling operation, or
organization gaming facility as authorized under the Illinois
Riverboat Gambling Act is exempt from seizure under this
Section.
(f) Any gambling equipment, devices, and supplies provided
by a licensed supplier in accordance with the Illinois
Riverboat Gambling Act which are removed from a the riverboat,
casino, or organization gaming facility for repair are exempt
from seizure under this Section.
(g) The following video gaming terminals are exempt from
seizure under this Section:

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(1) Video gaming terminals for sale to a licensed
distributor or operator under the Video Gaming Act.
(2) Video gaming terminals used to train licensed
technicians or licensed terminal handlers.
(3) Video gaming terminals that are removed from a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed
fraternal establishment, or licensed veterans
establishment for repair.
(h) Property seized or forfeited under this Section is
subject to reporting under the Seizure and Forfeiture Reporting
Act.
(i) Any sports lottery terminals provided by a central
system provider that are removed from a lottery retailer for
repair under the Sports Wagering Act are exempt from seizure
under this Section.
(Source: P.A. 100-512, eff. 7-1-18; 101-31, Article 25, Section
25-915, eff. 6-28-19; 101-31, Article 35, Section 35-80, eff.
6-28-19; revised 7-12-19.)
(230 ILCS 50/Act rep.)
Section 10-300. The State Fair Gaming Act is repealed.
(30 ILCS 105/5.897 rep.)
Section 10-310. The State Finance Act is amended by
repealing Section 5.897, as added by Public Act 101-31.

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Section 10-320. The Open Meetings Act is amended by
changing Section 2 as follows:
(5 ILCS 120/2) (from Ch. 102, par. 42)
Sec. 2. Open meetings.
(a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
(b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
(c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
(1) The appointment, employment, compensation,
discipline, performance, or dismissal of specific
employees, specific individuals who serve as independent
contractors in a park, recreational, or educational
setting, or specific volunteers of the public body or legal
counsel for the public body, including hearing testimony on
a complaint lodged against an employee, a specific
individual who serves as an independent contractor in a

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park, recreational, or educational setting, or a volunteer
of the public body or against legal counsel for the public
body to determine its validity. However, a meeting to
consider an increase in compensation to a specific employee
of a public body that is subject to the Local Government
Wage Increase Transparency Act may not be closed and shall
be open to the public and posted and held in accordance
with this Act.
(2) Collective negotiating matters between the public
body and its employees or their representatives, or
deliberations concerning salary schedules for one or more
classes of employees.
(3) The selection of a person to fill a public office,
as defined in this Act, including a vacancy in a public
office, when the public body is given power to appoint
under law or ordinance, or the discipline, performance or
removal of the occupant of a public office, when the public
body is given power to remove the occupant under law or
ordinance.
(4) Evidence or testimony presented in open hearing, or
in closed hearing where specifically authorized by law, to
a quasi-adjudicative body, as defined in this Act, provided
that the body prepares and makes available for public
inspection a written decision setting forth its
determinative reasoning.
(5) The purchase or lease of real property for the use

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of the public body, including meetings held for the purpose
of discussing whether a particular parcel should be
acquired.
(6) The setting of a price for sale or lease of
property owned by the public body.
(7) The sale or purchase of securities, investments, or
investment contracts. This exception shall not apply to the
investment of assets or income of funds deposited into the
Illinois Prepaid Tuition Trust Fund.
(8) Security procedures, school building safety and
security, and the use of personnel and equipment to respond
to an actual, a threatened, or a reasonably potential
danger to the safety of employees, students, staff, the
public, or public property.
(9) Student disciplinary cases.
(10) The placement of individual students in special
education programs and other matters relating to
individual students.
(11) Litigation, when an action against, affecting or
on behalf of the particular public body has been filed and
is pending before a court or administrative tribunal, or
when the public body finds that an action is probable or
imminent, in which case the basis for the finding shall be
recorded and entered into the minutes of the closed
meeting.
(12) The establishment of reserves or settlement of

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claims as provided in the Local Governmental and
Governmental Employees Tort Immunity Act, if otherwise the
disposition of a claim or potential claim might be
prejudiced, or the review or discussion of claims, loss or
risk management information, records, data, advice or
communications from or with respect to any insurer of the
public body or any intergovernmental risk management
association or self insurance pool of which the public body
is a member.
(13) Conciliation of complaints of discrimination in
the sale or rental of housing, when closed meetings are
authorized by the law or ordinance prescribing fair housing
practices and creating a commission or administrative
agency for their enforcement.
(14) Informant sources, the hiring or assignment of
undercover personnel or equipment, or ongoing, prior or
future criminal investigations, when discussed by a public
body with criminal investigatory responsibilities.
(15) Professional ethics or performance when
considered by an advisory body appointed to advise a
licensing or regulatory agency on matters germane to the
advisory body's field of competence.
(16) Self evaluation, practices and procedures or
professional ethics, when meeting with a representative of
a statewide association of which the public body is a
member.

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(17) The recruitment, credentialing, discipline or
formal peer review of physicians or other health care
professionals, or for the discussion of matters protected
under the federal Patient Safety and Quality Improvement
Act of 2005, and the regulations promulgated thereunder,
including 42 C.F.R. Part 3 (73 FR 70732), or the federal
Health Insurance Portability and Accountability Act of
1996, and the regulations promulgated thereunder,
including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
or other institution providing medical care, that is
operated by the public body.
(18) Deliberations for decisions of the Prisoner
Review Board.
(19) Review or discussion of applications received
under the Experimental Organ Transplantation Procedures
Act.
(20) The classification and discussion of matters
classified as confidential or continued confidential by
the State Government Suggestion Award Board.
(21) Discussion of minutes of meetings lawfully closed
under this Act, whether for purposes of approval by the
body of the minutes or semi-annual review of the minutes as
mandated by Section 2.06.
(22) Deliberations for decisions of the State
Emergency Medical Services Disciplinary Review Board.
(23) The operation by a municipality of a municipal

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utility or the operation of a municipal power agency or
municipal natural gas agency when the discussion involves
(i) contracts relating to the purchase, sale, or delivery
of electricity or natural gas or (ii) the results or
conclusions of load forecast studies.
(24) Meetings of a residential health care facility
resident sexual assault and death review team or the
Executive Council under the Abuse Prevention Review Team
Act.
(25) Meetings of an independent team of experts under
Brian's Law.
(26) Meetings of a mortality review team appointed
under the Department of Juvenile Justice Mortality Review
Team Act.
(27) (Blank).
(28) Correspondence and records (i) that may not be
disclosed under Section 11-9 of the Illinois Public Aid
Code or (ii) that pertain to appeals under Section 11-8 of
the Illinois Public Aid Code.
(29) Meetings between internal or external auditors
and governmental audit committees, finance committees, and
their equivalents, when the discussion involves internal
control weaknesses, identification of potential fraud risk
areas, known or suspected frauds, and fraud interviews
conducted in accordance with generally accepted auditing
standards of the United States of America.

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(30) Those meetings or portions of meetings of a
fatality review team or the Illinois Fatality Review Team
Advisory Council during which a review of the death of an
eligible adult in which abuse or neglect is suspected,
alleged, or substantiated is conducted pursuant to Section
15 of the Adult Protective Services Act.
(31) Meetings and deliberations for decisions of the
Concealed Carry Licensing Review Board under the Firearm
Concealed Carry Act.
(32) Meetings between the Regional Transportation
Authority Board and its Service Boards when the discussion
involves review by the Regional Transportation Authority
Board of employment contracts under Section 28d of the
Metropolitan Transit Authority Act and Sections 3A.18 and
3B.26 of the Regional Transportation Authority Act.
(33) Those meetings or portions of meetings of the
advisory committee and peer review subcommittee created
under Section 320 of the Illinois Controlled Substances Act
during which specific controlled substance prescriber,
dispenser, or patient information is discussed.
(34) Meetings of the Tax Increment Financing Reform
Task Force under Section 2505-800 of the Department of
Revenue Law of the Civil Administrative Code of Illinois.
(35) Meetings of the group established to discuss
Medicaid capitation rates under Section 5-30.8 of the
Illinois Public Aid Code.

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(36) Those deliberations or portions of deliberations
for decisions of the Illinois Gaming Board in which there
is discussed any of the following: (i) personal,
commercial, financial, or other information obtained from
any source that is privileged, proprietary, confidential,
or a trade secret; or (ii) information specifically
exempted from the disclosure by federal or State law.
(d) Definitions. For purposes of this Section:
"Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
rules, and who is not an independent contractor.
"Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
"Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.

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(e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 100-201, eff. 8-18-17; 100-465, eff. 8-31-17;
100-646, eff. 7-27-18; 101-31, eff. 6-28-19; 101-459, eff.
8-23-19; revised 9-27-19.)
Section 10-330. The State Officials and Employees Ethics
Act is amended by changing Section 5-45 as follows:
(5 ILCS 430/5-45)
Sec. 5-45. Procurement; revolving door prohibition.
(a) No former officer, member, or State employee, or spouse
or immediate family member living with such person, shall,
within a period of one year immediately after termination of
State employment, knowingly accept employment or receive
compensation or fees for services from a person or entity if
the officer, member, or State employee, during the year
immediately preceding termination of State employment,
participated personally and substantially in the award of State
contracts, or the issuance of State contract change orders,
with a cumulative value of $25,000 or more to the person or
entity, or its parent or subsidiary.
(a-5) No officer, member, or spouse or immediate family
member living with such person shall, during the officer or

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member's term in office or within a period of 2 years
immediately leaving office, hold an ownership interest, other
than a passive interest in a publicly traded company, in any
gaming license under the Illinois Gambling Act, the Video
Gaming Act, the Illinois Horse Racing Act of 1975, or the
Sports Wagering Act. Any member of the General Assembly or
spouse or immediate family member living with such person who
has an ownership interest, other than a passive interest in a
publicly traded company, in any gaming license under the
Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
the Video Gaming Act, or the Sports Wagering Act at the time of
the effective date of this amendatory Act of the 101st General
Assembly shall divest himself or herself of such ownership
within one year after the effective date of this amendatory Act
of the 101st General Assembly. No State employee who works for
the Illinois Gaming Board or Illinois Racing Board or spouse or
immediate family member living with such person shall, during
State employment or within a period of 2 years immediately
after termination of State employment, hold an ownership
interest, other than a passive interest in a publicly traded
company, in any gaming license under the Illinois Gambling Act,
the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
the Sports Wagering Act.
(a-10) This subsection (a-10) applies on and after June 25,
2021. No officer, member, or spouse or immediate family member
living with such person, shall, during the officer or member's

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term in office or within a period of 2 years immediately after
leaving office, hold an ownership interest, other than a
passive interest in a publicly traded company, in any cannabis
business establishment which is licensed under the Cannabis
Regulation and Tax Act. Any member of the General Assembly or
spouse or immediate family member living with such person who
has an ownership interest, other than a passive interest in a
publicly traded company, in any cannabis business
establishment which is licensed under the Cannabis Regulation
and Tax Act at the time of the effective date of this
amendatory Act of the 101st General Assembly shall divest
himself or herself of such ownership within one year after the
effective date of this amendatory Act of the 101st General
Assembly.
No State employee who works for any State agency that
regulates cannabis business establishment license holders who
participated personally and substantially in the award of
licenses under the Cannabis Regulation and Tax Act or a spouse
or immediate family member living with such person shall,
during State employment or within a period of 2 years
immediately after termination of State employment, hold an
ownership interest, other than a passive interest in a publicly
traded company, in any cannabis license under the Cannabis
Regulation and Tax Act.
(b) No former officer of the executive branch or State
employee of the executive branch with regulatory or licensing

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authority, or spouse or immediate family member living with
such person, shall, within a period of one year immediately
after termination of State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the officer or State employee, during the
year immediately preceding termination of State employment,
participated personally and substantially in making a
regulatory or licensing decision that directly applied to the
person or entity, or its parent or subsidiary.
(c) Within 6 months after the effective date of this
amendatory Act of the 96th General Assembly, each executive
branch constitutional officer and legislative leader, the
Auditor General, and the Joint Committee on Legislative Support
Services shall adopt a policy delineating which State positions
under his or her jurisdiction and control, by the nature of
their duties, may have the authority to participate personally
and substantially in the award of State contracts or in
regulatory or licensing decisions. The Governor shall adopt
such a policy for all State employees of the executive branch
not under the jurisdiction and control of any other executive
branch constitutional officer.
The policies required under subsection (c) of this Section
shall be filed with the appropriate ethics commission
established under this Act or, for the Auditor General, with
the Office of the Auditor General.
(d) Each Inspector General shall have the authority to

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determine that additional State positions under his or her
jurisdiction, not otherwise subject to the policies required by
subsection (c) of this Section, are nonetheless subject to the
notification requirement of subsection (f) below due to their
involvement in the award of State contracts or in regulatory or
licensing decisions.
(e) The Joint Committee on Legislative Support Services,
the Auditor General, and each of the executive branch
constitutional officers and legislative leaders subject to
subsection (c) of this Section shall provide written
notification to all employees in positions subject to the
policies required by subsection (c) or a determination made
under subsection (d): (1) upon hiring, promotion, or transfer
into the relevant position; and (2) at the time the employee's
duties are changed in such a way as to qualify that employee.
An employee receiving notification must certify in writing that
the person was advised of the prohibition and the requirement
to notify the appropriate Inspector General in subsection (f).
(f) Any State employee in a position subject to the
policies required by subsection (c) or to a determination under
subsection (d), but who does not fall within the prohibition of
subsection (h) below, who is offered non-State employment
during State employment or within a period of one year
immediately after termination of State employment shall, prior
to accepting such non-State employment, notify the appropriate
Inspector General. Within 10 calendar days after receiving

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notification from an employee in a position subject to the
policies required by subsection (c), such Inspector General
shall make a determination as to whether the State employee is
restricted from accepting such employment by subsection (a) or
(b). In making a determination, in addition to any other
relevant information, an Inspector General shall assess the
effect of the prospective employment or relationship upon
decisions referred to in subsections (a) and (b), based on the
totality of the participation by the former officer, member, or
State employee in those decisions. A determination by an
Inspector General must be in writing, signed and dated by the
Inspector General, and delivered to the subject of the
determination within 10 calendar days or the person is deemed
eligible for the employment opportunity. For purposes of this
subsection, "appropriate Inspector General" means (i) for
members and employees of the legislative branch, the
Legislative Inspector General; (ii) for the Auditor General and
employees of the Office of the Auditor General, the Inspector
General provided for in Section 30-5 of this Act; and (iii) for
executive branch officers and employees, the Inspector General
having jurisdiction over the officer or employee. Notice of any
determination of an Inspector General and of any such appeal
shall be given to the ultimate jurisdictional authority, the
Attorney General, and the Executive Ethics Commission.
(g) An Inspector General's determination regarding
restrictions under subsection (a) or (b) may be appealed to the

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appropriate Ethics Commission by the person subject to the
decision or the Attorney General no later than the 10th
calendar day after the date of the determination.
On appeal, the Ethics Commission or Auditor General shall
seek, accept, and consider written public comments regarding a
determination. In deciding whether to uphold an Inspector
General's determination, the appropriate Ethics Commission or
Auditor General shall assess, in addition to any other relevant
information, the effect of the prospective employment or
relationship upon the decisions referred to in subsections (a)
and (b), based on the totality of the participation by the
former officer, member, or State employee in those decisions.
The Ethics Commission shall decide whether to uphold an
Inspector General's determination within 10 calendar days or
the person is deemed eligible for the employment opportunity.
(h) The following officers, members, or State employees
shall not, within a period of one year immediately after
termination of office or State employment, knowingly accept
employment or receive compensation or fees for services from a
person or entity if the person or entity or its parent or
subsidiary, during the year immediately preceding termination
of State employment, was a party to a State contract or
contracts with a cumulative value of $25,000 or more involving
the officer, member, or State employee's State agency, or was
the subject of a regulatory or licensing decision involving the
officer, member, or State employee's State agency, regardless

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of whether he or she participated personally and substantially
in the award of the State contract or contracts or the making
of the regulatory or licensing decision in question:
(1) members or officers;
(2) members of a commission or board created by the
Illinois Constitution;
(3) persons whose appointment to office is subject to
the advice and consent of the Senate;
(4) the head of a department, commission, board,
division, bureau, authority, or other administrative unit
within the government of this State;
(5) chief procurement officers, State purchasing
officers, and their designees whose duties are directly
related to State procurement; and
(6) chiefs of staff, deputy chiefs of staff, associate
chiefs of staff, assistant chiefs of staff, and deputy
governors;
(7) employees of the Illinois Racing Board; and
(8) employees of the Illinois Gaming Board.
(i) For the purposes of this Section, with respect to
officers or employees of a regional transit board, as defined
in this Act, the phrase "person or entity" does not include:
(i) the United States government, (ii) the State, (iii)
municipalities, as defined under Article VII, Section 1 of the
Illinois Constitution, (iv) units of local government, as
defined under Article VII, Section 1 of the Illinois

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Constitution, or (v) school districts.
(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
Section 10-340. The Alcoholism and Other Drug Abuse and
Dependency Act is amended by changing Section 5-20 as follows:
(20 ILCS 301/5-20)
Sec. 5-20. Gambling disorders.
(a) Subject to appropriation, the Department shall
establish a program for public education, research, and
training regarding gambling disorders and the treatment and
prevention of gambling disorders. Subject to specific
appropriation for these stated purposes, the program must
include all of the following:
(1) Establishment and maintenance of a toll-free "800"
telephone number to provide crisis counseling and referral
services to families experiencing difficulty as a result of
gambling disorders.
(2) Promotion of public awareness regarding the
recognition and prevention of gambling disorders.
(3) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for gambling disorders.
(4) Conducting studies to identify adults and
juveniles in this State who have, or who are at risk of
developing, gambling disorders.

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(b) Subject to appropriation, the Department shall either
establish and maintain the program or contract with a private
or public entity for the establishment and maintenance of the
program. Subject to appropriation, either the Department or the
private or public entity shall implement the toll-free
telephone number, promote public awareness, and conduct
in-service training concerning gambling disorders.
(c) Subject to appropriation, the Department shall produce
and supply the signs specified in Section 10.7 of the Illinois
Lottery Law, Section 34.1 of the Illinois Horse Racing Act of
1975, Section 4.3 of the Bingo License and Tax Act, Section 8.1
of the Charitable Games Act, and Section 13.1 of the Illinois
Riverboat Gambling Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-350. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:

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(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on July
13, 2009 (the effective date of Public Act 96-37) this
amendatory Act of the 96th General Assembly in connection with
the selection of the private manager. As part of its obligation

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to terminate these contracts and select the private manager,
the Department shall establish a mutually agreeable timetable
to transfer the functions of existing contractors to the
private manager so that existing Lottery operations are not
materially diminished or impaired during the transition. To
that end, the Department shall do the following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department shall
not renew such contract for a term extending beyond the
mutually agreed timetable for transfer of functions; or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on July 13, 2009 (the effective date of
Public Act 96-34) this amendatory Act of the 96th General
Assembly are not subject to termination as provided for in this
subsection (c), then the Department may include a provision in
the contract with the private manager specifying a mutually

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

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

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

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

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

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best overall value. The process shall not be subject to the
provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling its
obligations under the management agreement during the term
of the agreement.
(22) The disclosure of any information requested by the
Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a competitive
request for qualifications process consistent with Section
20-35 of the Illinois Procurement Code, which shall take into
account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players

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

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

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than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the Department.
(h) At the public hearing, the Department shall (i) provide
sufficient time for each finalist to present and explain its
proposal to the Department and the Governor or the Governor's
designee, including an opportunity to respond to questions
posed by the Department, Governor, or designee and (ii) allow
the public and non-selected offerors to comment on the
presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin on

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or before September 15, 2010. The Governor shall include in the
notice a detailed explanation and the reasons why the final
offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department and
leased to the private manager shall be owned by the Department
in the name of the State and shall be considered to be public
property devoted to an essential public and governmental
function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement

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entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by this amendatory Act of the 101st General Assembly constitute
authorized forms of gambling that are not in direct competition
with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to determine
whether the private manager has complied with this Section and
the management agreement. The private manager shall bear the
cost of an investigation or reinvestigation of the private
manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department, agency,
or instrumentality of the State or any political subdivision is

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

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administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
21.9, 21.10, 21.11, 21.12, and 21.13, the Department shall
distribute all proceeds of lottery tickets and shares sold in
the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the

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State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain

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confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that report
to the Governor and General Assembly.
(Source: P.A. 100-391, eff. 8-25-17; 100-587, eff. 6-4-18;
100-647, eff. 7-30-18; 100-1068, eff. 8-24-18; 101-31, eff.
6-28-19; 101-81, eff. 7-12-19; 101-561, eff. 8-23-19; revised
10-21-19.)
Section 10-360. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-305 as follows:
(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)
Sec. 2505-305. Investigators.
(a) The Department has the power to appoint investigators
to conduct all investigations, searches, seizures, arrests,
and other duties imposed under the provisions of any law
administered by the Department. Except as provided in
subsection (c), these investigators have and may exercise all
the powers of peace officers solely for the purpose of

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enforcing taxing measures administered by the Department.
(b) The Director must authorize to each investigator
employed under this Section and to any other employee of the
Department exercising the powers of a peace officer a distinct
badge that, on its face, (i) clearly states that the badge is
authorized by the Department and (ii) contains a unique
identifying number. No other badge shall be authorized by the
Department.
(c) The Department may enter into agreements with the
Illinois Gaming Board providing that investigators appointed
under this Section shall exercise the peace officer powers set
forth in paragraph (20.6) of subsection (c) of Section 5 of the
Illinois Riverboat Gambling Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-370. The State Finance Act is amended by
changing Section 6z-45 as follows:
(30 ILCS 105/6z-45)
Sec. 6z-45. The School Infrastructure Fund.
(a) The School Infrastructure Fund is created as a special
fund in the State Treasury.
In addition to any other deposits authorized by law,
beginning January 1, 2000, on the first day of each month, or
as soon thereafter as may be practical, the State Treasurer and
State Comptroller shall transfer the sum of $5,000,000 from the

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

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

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such interest required to be appropriated for that period.
Interest for which moneys have already been deposited into the
capitalized interest account within the General Obligation
Bond Retirement and Interest Fund shall not be included in the
calculation of the amounts to be transferred under this
subsection.
(b-5) The money deposited into the School Infrastructure
Fund from transfers pursuant to subsections (c-30) and (c-35)
of Section 13 of the Illinois Riverboat Gambling Act shall be
applied, without further direction, as provided in subsection
(b-3) of Section 5-35 of the School Construction Law.
(c) The surplus, if any, in the School Infrastructure Fund
after payments made pursuant to subsections (a-5), (b), and
(b-5) of this Section shall, subject to appropriation, be used
as follows:
First - to make 3 payments to the School Technology
Revolving Loan Fund as follows:
Transfer of $30,000,000 in fiscal year 1999;
Transfer of $20,000,000 in fiscal year 2000; and
Transfer of $10,000,000 in fiscal year 2001.
Second - to pay any amounts due for grants for school
construction projects and debt service under the School
Construction Law.
Third - to pay any amounts due for grants for school
maintenance projects under the School Construction Law.
(Source: P.A. 101-31, eff. 6-28-19.)

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Section 10-380. The Illinois Income Tax Act is amended by
changing Sections 201, 303, 304, and 710 as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount equal
to 2 1/2% of the taxpayer's net income for the taxable
year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June

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30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%

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

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

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as calculated under Section 202.5, and (ii) 7% of the
taxpayer's net income for the period after June 30, 2017,
as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing Act
of 1975 and (ii) of an organization gaming licensee under the
Illinois Gambling Act. The amount of the surcharge is equal to
the amount of federal income tax liability for the taxable year
attributable to those sales and exchanges. The surcharge
imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial

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licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River

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under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall

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be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign

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

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subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service during
the taxable year, provided such property is placed in
service on or after July 1, 1984. There shall be allowed an
additional credit equal to .5% of the basis of qualified
property placed in service during the taxable year,
provided such property is placed in service on or after
July 1, 1986, and the taxpayer's base employment within
Illinois has increased by 1% or more over the preceding
year as determined by the taxpayer's employment records
filed with the Illinois Department of Employment Security.
Taxpayers who are new to Illinois shall be deemed to have
met the 1% growth in base employment for the first year in
which they file employment records with the Illinois
Department of Employment Security. The provisions added to
this Section by Public Act 85-1200 (and restored by Public
Act 87-895) shall be construed as declaratory of existing

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

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(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability or
the liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land or
improvements to real property that are not a structural
component of a building such as landscaping, sewer
lines, local access roads, fencing, parking lots, and
other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"

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as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes of
this subsection (e) the term "mining" shall have the same
meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection (e),
the term "retailing" means the sale of tangible personal
property for use or consumption and not for resale, or

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services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for
taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in Illinois by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal Property
Tax Replacement Income Tax for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been

HB5561 - 347 - LRB101 17547 JWD 66965 b
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation and, (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (7), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on

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its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction
under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code. This paragraph is exempt from the provisions
of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in service
in an Enterprise Zone created pursuant to the Illinois
Enterprise Zone Act or, for property placed in service on
or after July 1, 2006, a River Edge Redevelopment Zone
established pursuant to the River Edge Redevelopment Zone

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Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. The credit
shall be .5% of the basis for such property. The credit
shall be available only in the taxable year in which the
property is placed in service in the Enterprise Zone or
River Edge Redevelopment Zone and shall not be allowed to
the extent that it would reduce a taxpayer's liability for
the tax imposed by subsections (a) and (b) of this Section
to below zero. For tax years ending on or after December
31, 1985, the credit shall be allowed for the tax year in
which the property is placed in service, or, if the amount
of the credit exceeds the tax liability for that year,
whether it exceeds the original liability or the liability
as later amended, such excess may be carried forward and
applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be
applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.

HB5561 - 350 - LRB101 17547 JWD 66965 b
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same

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meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise Zone
or River Edge Redevelopment Zone within 48 months after
being placed in service, the tax imposed under subsections
(a) and (b) of this Section for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (6), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more over
the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of

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Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file employment
records with the Illinois Department of Employment
Security. If, in any year, the increase in base employment
within Illinois over the preceding year is less than 1%,
the additional credit shall be limited to that percentage
times a fraction, the numerator of which is 0.5% and the
denominator of which is 1%, but shall not exceed 0.5%.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

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Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in the
taxable year in which such investments have been completed.
The credit for additional investments beyond the minimum
investment by a designated high impact business authorized
under subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act shall be available only in the taxable
year in which the property is placed in service and shall
not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections (a)
and (b) of this Section to below zero. For tax years ending
on or after December 31, 1987, the credit shall be allowed
for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and

HB5561 - 354 - LRB101 17547 JWD 66965 b
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois by the taxpayer, the amount of
such increase shall be deemed property placed in service on
the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before

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December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such property
was originally allowed by eliminating such property from
such computation, and (ii) subtracting such recomputed
credit from the amount of credit previously allowed. For
the purposes of this paragraph (6), a reduction of the
basis of qualified property resulting from a
redetermination of the purchase price shall be deemed a
disposition of qualified property to the extent of such
reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under Section
18-183 of the Property Tax Code, the tax imposed under
subsections (a) and (b) of this Section shall be increased
for the taxable year in which the taxpayer relocated its
facility by an amount equal to the amount of credit

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received by the taxpayer under this subsection (h).
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
If, during any taxable year ending on or after December 31,

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

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income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2022, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a) and
(b) of this Section for increasing research activities in this
State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance

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with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest

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year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2022, including, but not
limited to, the period beginning on January 1, 2016 and ending
on the effective date of this amendatory Act of the 100th
General Assembly. All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and on
or before December 31, 2001, a taxpayer shall be allowed a
credit against the tax imposed by subsections (a) and (b)

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

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and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of being
a related taxpayer, as well as any of its partners. The
credit allowed against the tax imposed by subsections (a)
and (b) shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site, except
that the $100,000 threshold shall not apply to any site
contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year with
a maximum total of $150,000 per site. For partners and
shareholders of subchapter S corporations, there shall be
allowed a credit under this subsection to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year for

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which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of

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qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed (i) $500 for tax years
ending prior to December 31, 2017, and (ii) $750 for tax years
ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.

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"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31, 2006,
a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval of

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the eligible remediation costs is granted. The credit is
not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or under
the site that was identified and addressed by the remedial
action pursuant to the Site Remediation Program of the
Environmental Protection Act. Determinations as to credit
availability for purposes of this Section shall be made
consistent with rules adopted by the Pollution Control
Board pursuant to the Illinois Administrative Procedure
Act for the administration and enforcement of Section 58.9
of the Environmental Protection Act. For purposes of this
Section, "taxpayer" includes a person whose tax attributes
the taxpayer has succeeded to under Section 381 of the
Internal Revenue Code and "related party" includes the
persons disallowed a deduction for losses by paragraphs
(b), (c), and (f)(1) of Section 267 of the Internal Revenue
Code by virtue of being a related taxpayer, as well as any
of its partners. The credit allowed against the tax imposed
by subsections (a) and (b) shall be equal to 25% of the
unreimbursed eligible remediation costs in excess of
$100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This

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

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an organization registrant under the Compassionate Use of
Medical Cannabis Pilot Program Act. The amount of the surcharge
is equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Pilot Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;

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(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 101-31, eff. 6-28-19.)
(35 ILCS 5/303) (from Ch. 120, par. 3-303)
Sec. 303. (a) In general. Any item of capital gain or loss,
and any item of income from rents or royalties from real or
tangible personal property, interest, dividends, and patent or
copyright royalties, and prizes awarded under the Illinois
Lottery Law, and, for taxable years ending on or after December
31, 2019, wagering and gambling winnings from Illinois sources
as set forth in subsection (e-1) of this Section, to the extent
such item constitutes nonbusiness income, together with any
item of deduction directly allocable thereto, shall be
allocated by any person other than a resident as provided in

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this Section.
(b) Capital gains and losses.
(1) Real property. Capital gains and losses from sales
or exchanges of real property are allocable to this State
if the property is located in this State.
(2) Tangible personal property. Capital gains and
losses from sales or exchanges of tangible personal
property are allocable to this State if, at the time of
such sale or exchange:
(A) The property had its situs in this State; or
(B) The taxpayer had its commercial domicile in
this State and was not taxable in the state in which
the property had its situs.
(3) Intangibles. Capital gains and losses from sales or
exchanges of intangible personal property are allocable to
this State if the taxpayer had its commercial domicile in
this State at the time of such sale or exchange.
(c) Rents and royalties.
(1) Real property. Rents and royalties from real
property are allocable to this State if the property is
located in this State.
(2) Tangible personal property. Rents and royalties
from tangible personal property are allocable to this
State:
(A) If and to the extent that the property is
utilized in this State; or

HB5561 - 371 - LRB101 17547 JWD 66965 b
(B) In their entirety if, at the time such rents or
royalties were paid or accrued, the taxpayer had its
commercial domicile in this State and was not organized
under the laws of or taxable with respect to such rents
or royalties in the state in which the property was
utilized. The extent of utilization of tangible
personal property in a state is determined by
multiplying the rents or royalties derived from such
property by a fraction, the numerator of which is the
number of days of physical location of the property in
the state during the rental or royalty period in the
taxable year and the denominator of which is the number
of days of physical location of the property everywhere
during all rental or royalty periods in the taxable
year. If the physical location of the property during
the rental or royalty period is unknown or
unascertainable by the taxpayer, tangible personal
property is utilized in the state in which the property
was located at the time the rental or royalty payer
obtained possession.
(d) Patent and copyright royalties.
(1) Allocation. Patent and copyright royalties are
allocable to this State:
(A) If and to the extent that the patent or
copyright is utilized by the payer in this State; or
(B) If and to the extent that the patent or

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copyright is utilized by the payer in a state in which
the taxpayer is not taxable with respect to such
royalties and, at the time such royalties were paid or
accrued, the taxpayer had its commercial domicile in
this State.
(2) Utilization.
(A) A patent is utilized in a state to the extent
that it is employed in production, fabrication,
manufacturing or other processing in the state or to
the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties
does not permit allocation to states or if the
accounting procedures do not reflect states of
utilization, the patent is utilized in this State if
the taxpayer has its commercial domicile in this State.
(B) A copyright is utilized in a state to the
extent that printing or other publication originates
in the state. If the basis of receipts from copyright
royalties does not permit allocation to states or if
the accounting procedures do not reflect states of
utilization, the copyright is utilized in this State if
the taxpayer has its commercial domicile in this State.
(e) Illinois lottery prizes. Prizes awarded under the
Illinois Lottery Law are allocable to this State. Payments
received in taxable years ending on or after December 31, 2013,
from the assignment of a prize under Section 13.1 of the

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Illinois Lottery Law are allocable to this State.
(e-1) Wagering and gambling winnings. Payments received in
taxable years ending on or after December 31, 2019 of winnings
from pari-mutuel wagering conducted at a wagering facility
licensed under the Illinois Horse Racing Act of 1975 and from
gambling games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act are allocable to this State.
(e-5) Unemployment benefits. Unemployment benefits paid by
the Illinois Department of Employment Security are allocable to
this State.
(f) Taxability in other state. For purposes of allocation
of income pursuant to this Section, a taxpayer is taxable in
another state if:
(1) In that state he is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for
the privilege of doing business, or a corporate stock tax;
or
(2) That state has jurisdiction to subject the taxpayer
to a net income tax regardless of whether, in fact, the
state does or does not.
(g) Cross references.
(1) For allocation of interest and dividends by persons
other than residents, see Section 301(c)(2).
(2) For allocation of nonbusiness income by residents,
see Section 301(a).

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(Source: P.A. 101-31, eff. 6-28-19.)
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than residents.
(a) In general. The business income of a person other than
a resident shall be allocated to this State if such person's
business income is derived solely from this State. If a person
other than a resident derives business income from this State
and one or more other states, then, for tax years ending on or
before December 30, 1998, and except as otherwise provided by
this Section, such person's business income shall be
apportioned to this State by multiplying the income by a
fraction, the numerator of which is the sum of the property
factor (if any), the payroll factor (if any) and 200% of the
sales factor (if any), and the denominator of which is 4
reduced by the number of factors other than the sales factor
which have a denominator of zero and by an additional 2 if the
sales factor has a denominator of zero. For tax years ending on
or after December 31, 1998, and except as otherwise provided by
this Section, persons other than residents who derive business
income from this State and one or more other states shall
compute their apportionment factor by weighting their
property, payroll, and sales factors as provided in subsection
(h) of this Section.
(1) Property factor.
(A) The property factor is a fraction, the numerator of

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which is the average value of the person's real and
tangible personal property owned or rented and used in the
trade or business in this State during the taxable year and
the denominator of which is the average value of all the
person's real and tangible personal property owned or
rented and used in the trade or business during the taxable
year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at 8
times the net annual rental rate. Net annual rental rate is
the annual rental rate paid by the person less any annual
rental rate received by the person from sub-rentals.
(C) The average value of property shall be determined
by averaging the values at the beginning and ending of the
taxable year but the Director may require the averaging of
monthly values during the taxable year if reasonably
required to reflect properly the average value of the
person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator of
which is the total amount paid in this State during the
taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed entirely

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within this State;
(ii) The individual's service is performed both
within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or
(iii) For tax years ending prior to December 31,
2020, some of the service is performed within this
State and either the base of operations, or if there is
no base of operations, the place from which the service
is directed or controlled is within this State, or the
base of operations or the place from which the service
is directed or controlled is not in any state in which
some part of the service is performed, but the
individual's residence is in this State. For tax years
ending on or after December 31, 2020, compensation is
paid in this State if some of the individual's service
is performed within this State, the individual's
service performed within this State is nonincidental
to the individual's service performed without this
State, and the individual's service is performed
within this State for more than 30 working days during
the tax year. The amount of compensation paid in this
State shall include the portion of the individual's
total compensation for services performed on behalf of
his or her employer during the tax year which the
number of working days spent within this State during

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the tax year bears to the total number of working days
spent both within and without this State during the tax
year. For purposes of this paragraph:
(a) The term "working day" means all days
during the tax year in which the individual
performs duties on behalf of his or her employer.
All days in which the individual performs no duties
on behalf of his or her employer (e.g., weekends,
vacation days, sick days, and holidays) are not
working days.
(b) A working day is spent within this State
if:
(1) the individual performs service on
behalf of the employer and a greater amount of
time on that day is spent by the individual
performing duties on behalf of the employer
within this State, without regard to time spent
traveling, than is spent performing duties on
behalf of the employer without this State; or
(2) the only service the individual
performs on behalf of the employer on that day
is traveling to a destination within this
State, and the individual arrives on that day.
(c) Working days spent within this State do not
include any day in which the employee is performing
services in this State during a disaster period

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solely in response to a request made to his or her
employer by the government of this State, by any
political subdivision of this State, or by a person
conducting business in this State to perform
disaster or emergency-related services in this
State. For purposes of this item (c):
"Declared State disaster or emergency"
means a disaster or emergency event (i) for
which a Governor's proclamation of a state of
emergency has been issued or (ii) for which a
Presidential declaration of a federal major
disaster or emergency has been issued.
"Disaster period" means a period that
begins 10 days prior to the date of the
Governor's proclamation or the President's
declaration (whichever is earlier) and extends
for a period of 60 calendar days after the end
of the declared disaster or emergency period.
"Disaster or emergency-related services"
means repairing, renovating, installing,
building, or rendering services or conducting
other business activities that relate to
infrastructure that has been damaged,
impaired, or destroyed by the declared State
disaster or emergency.
"Infrastructure" means property and

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equipment owned or used by a public utility,
communications network, broadband and internet
service provider, cable and video service
provider, electric or gas distribution system,
or water pipeline that provides service to more
than one customer or person, including related
support facilities. "Infrastructure" includes,
but is not limited to, real and personal
property such as buildings, offices, power
lines, cable lines, poles, communications
lines, pipes, structures, and equipment.
(iv) Compensation paid to nonresident professional
athletes.
(a) General. The Illinois source income of a
nonresident individual who is a member of a
professional athletic team includes the portion of the
individual's total compensation for services performed
as a member of a professional athletic team during the
taxable year which the number of duty days spent within
this State performing services for the team in any
manner during the taxable year bears to the total
number of duty days spent both within and without this
State during the taxable year.
(b) Travel days. Travel days that do not involve
either a game, practice, team meeting, or other similar
team event are not considered duty days spent in this

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State. However, such travel days are considered in the
total duty days spent both within and without this
State.
(c) Definitions. For purposes of this subpart
(iv):
(1) The term "professional athletic team"
includes, but is not limited to, any professional
baseball, basketball, football, soccer, or hockey
team.
(2) The term "member of a professional
athletic team" includes those employees who are
active players, players on the disabled list, and
any other persons required to travel and who travel
with and perform services on behalf of a
professional athletic team on a regular basis.
This includes, but is not limited to, coaches,
managers, and trainers.
(3) Except as provided in items (C) and (D) of
this subpart (3), the term "duty days" means all
days during the taxable year from the beginning of
the professional athletic team's official
pre-season training period through the last game
in which the team competes or is scheduled to
compete. Duty days shall be counted for the year in
which they occur, including where a team's
official pre-season training period through the

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

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

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

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of play (i.e., performance bonuses) during the
season, including bonuses paid for championship,
playoff or "bowl" games played by a team, or for
selection to all-star league or other honorary
positions; and bonuses paid for signing a
contract, unless the payment of the signing bonus
is not conditional upon the signee playing any
games for the team or performing any subsequent
services for the team or even making the team, the
signing bonus is payable separately from the
salary and any other compensation, and the signing
bonus is nonrefundable.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator of
which is the total sales of the person in this State during
the taxable year, and the denominator of which is the total
sales of the person everywhere during the taxable year.
(B) Sales of tangible personal property are in this
State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point or
other conditions of the sale; or
(ii) The property is shipped from an office, store,
warehouse, factory or other place of storage in this
State and either the purchaser is the United States

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

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

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

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

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

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

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

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

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

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include any "vertical services" that the customer may
be required to have in order to utilize the "voice mail
service".
(ii) Receipts from the sale of telecommunications
service sold on an individual call-by-call basis are in
this State if either of the following applies:
(a) The call both originates and terminates in
this State.
(b) The call either originates or terminates
in this State and the service address is located in
this State.
(iii) Receipts from the sale of postpaid
telecommunications service at retail are in this State
if the origination point of the telecommunication
signal, as first identified by the service provider's
telecommunication system or as identified by
information received by the seller from its service
provider if the system used to transport
telecommunication signals is not the seller's, is
located in this State.
(iv) Receipts from the sale of prepaid
telecommunications service or prepaid mobile
telecommunications service at retail are in this State
if the purchaser obtains the prepaid card or similar
means of conveyance at a location in this State.
Receipts from recharging a prepaid telecommunications

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

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retail are in this State if the customer's primary
place of use of telecommunications services associated
with those ancillary services is in this State. If the
seller of those ancillary services cannot determine
where the associated telecommunications are located,
then the ancillary services shall be based on the
location of the purchaser.
(vii) Receipts to access a carrier's network or
from the sale of telecommunication services or
ancillary services for resale are in this State as
follows:
(a) 100% of the receipts from access fees
attributable to intrastate telecommunications
service that both originates and terminates in
this State.
(b) 50% of the receipts from access fees
attributable to interstate telecommunications
service if the interstate call either originates
or terminates in this State.
(c) 100% of the receipts from interstate end
user access line charges, if the customer's
service address is in this State. As used in this
subdivision, "interstate end user access line
charges" includes, but is not limited to, the
surcharge approved by the federal communications
commission and levied pursuant to 47 CFR 69.

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

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

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on radio of any and all performances, events, or
productions, including, but not limited to, news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of an audio tape, disc, or any
other format or medium. Each episode in a series of
radio programming produced for radio broadcast shall
constitute a separate "radio programming"
notwithstanding that the series relates to the same
principal subject and is produced during one or more
tax periods.
(i) In the case of advertising revenue from
broadcasting, the customer is the advertiser and
the service is received in this State if the
commercial domicile of the advertiser is in this
State.
(ii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
received from the recipient of the broadcast, the
portion of the service that is received in this
State is measured by the portion of the recipients
of the broadcast located in this State.
Accordingly, the fee or other remuneration for
such service that is included in the Illinois
numerator of the sales factor is the total of those

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fees or other remuneration received from
recipients in Illinois. For purposes of this
paragraph, a taxpayer may determine the location
of the recipients of its broadcast using the
address of the recipient shown in its contracts
with the recipient or using the billing address of
the recipient in the taxpayer's records.
(iii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
from the person providing the programming, the
portion of the broadcast service that is received
by such station, network, or cable system in this
State is measured by the portion of recipients of
the broadcast located in this State. Accordingly,
the amount of revenue related to such an
arrangement that is included in the Illinois
numerator of the sales factor is the total fee or
other total remuneration from the person providing
the programming related to that broadcast
multiplied by the Illinois audience factor for
that broadcast.
(iv) In the case where film or radio
programming is provided by a taxpayer that is a
network or station to a customer for broadcast in
exchange for a fee or other remuneration from that

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customer the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(v) In the case where film or radio programming
is provided by a taxpayer that is not a network or
station to another person for broadcasting in
exchange for a fee or other remuneration from that
person, the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by
the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(B-8) Gross receipts from winnings under the Illinois
Lottery Law from the assignment of a prize under Section
13.1 of the Illinois Lottery Law are received in this
State. This paragraph (B-8) applies only to taxable years

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ending on or after December 31, 2013.
(B-9) For taxable years ending on or after December 31,
2019, gross receipts from winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from winnings from
gambling games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act are in this State.
(C) For taxable years ending before December 31, 2008,
sales, other than sales governed by paragraphs (B), (B-1),
(B-2), and (B-8) are in this State if:
(i) The income-producing activity is performed in
this State; or
(ii) The income-producing activity is performed
both within and without this State and a greater
proportion of the income-producing activity is
performed within this State than without this State,
based on performance costs.
(C-5) For taxable years ending on or after December 31,
2008, sales, other than sales governed by paragraphs (B),
(B-1), (B-2), (B-5), and (B-7), are in this State if any of
the following criteria are met:
(i) Sales from the sale or lease of real property
are in this State if the property is located in this
State.
(ii) Sales from the lease or rental of tangible

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

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the records of the dealer, is in this State; or
(b) in all other cases, if the
income-producing activity of the taxpayer is
performed in this State or, if the
income-producing activity of the taxpayer is
performed both within and without this State, if a
greater proportion of the income-producing
activity of the taxpayer is performed within this
State than in any other state, based on performance
costs.
(iv) Sales of services are in this State if the
services are received in this State. For the purposes
of this section, gross receipts from the performance of
services provided to a corporation, partnership, or
trust may only be attributed to a state where that
corporation, partnership, or trust has a fixed place of
business. If the state where the services are received
is not readily determinable or is a state where the
corporation, partnership, or trust receiving the
service does not have a fixed place of business, the
services shall be deemed to be received at the location
of the office of the customer from which the services
were ordered in the regular course of the customer's
trade or business. If the ordering office cannot be
determined, the services shall be deemed to be received
at the office of the customer to which the services are

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billed. If the taxpayer is not taxable in the state in
which the services are received, the sale must be
excluded from both the numerator and the denominator of
the sales factor. The Department shall adopt rules
prescribing where specific types of service are
received, including, but not limited to, publishing,
and utility service.
(D) For taxable years ending on or after December 31,
1995, the following items of income shall not be included
in the numerator or denominator of the sales factor:
dividends; amounts included under Section 78 of the
Internal Revenue Code; and Subpart F income as defined in
Section 952 of the Internal Revenue Code. No inference
shall be drawn from the enactment of this paragraph (D) in
construing this Section for taxable years ending before
December 31, 1995.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years
ending on or after December 31, 1999, provided that a
taxpayer may elect to apply the provisions of these
paragraphs to prior tax years. Such election shall be made
in the form and manner prescribed by the Department, shall
be irrevocable, and shall apply to all tax years; provided
that, if a taxpayer's Illinois income tax liability for any
tax year, as assessed under Section 903 prior to January 1,
1999, was computed in a manner contrary to the provisions
of paragraphs (B-1) or (B-2), no refund shall be payable to

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

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company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the
sum of (i) direct premiums written for insurance upon
property or risk in this State, plus (ii) premiums written
for reinsurance accepted in respect of property or risk in
this State, and the denominator of which is the sum of
(iii) direct premiums written for insurance upon property
or risk everywhere, plus (iv) premiums written for
reinsurance accepted in respect of property or risk
everywhere. For purposes of this paragraph, premiums
written for reinsurance accepted in respect of property or
risk in this State, whether or not otherwise determinable,
may, at the election of the company, be determined on the
basis of the proportion which premiums written for
reinsurance accepted from companies commercially domiciled
in Illinois bears to premiums written for reinsurance
accepted from all sources, or, alternatively, in the
proportion which the sum of the direct premiums written for
insurance upon property or risk in this State by each
ceding company from which reinsurance is accepted bears to
the sum of the total direct premiums written by each such
ceding company for the taxable year. The election made by a
company under this paragraph for its first taxable year
ending on or after December 31, 2011, shall be binding for
that company for that taxable year and for all subsequent
taxable years, and may be altered only with the written

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permission of the Department, which shall not be
unreasonably withheld.
(c) Financial organizations.
(1) In general. For taxable years ending before
December 31, 2008, business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is its business income from sources within this
State, and the denominator of which is its business income
from all sources. For the purposes of this subsection, the
business income of a financial organization from sources
within this State is the sum of the amounts referred to in
subparagraphs (A) through (E) following, but excluding the
adjusted income of an international banking facility as
determined in paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the

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operation as a financial organization within this
State.
In computing the amounts referred to in paragraphs (A)
through (E) of this subsection, any amount received by a
member of an affiliated group (determined under Section
1504(a) of the Internal Revenue Code but without reference
to whether any such corporation is an "includible
corporation" under Section 1504(b) of the Internal Revenue
Code) from another member of such group shall be included
only to the extent such amount exceeds expenses of the
recipient directly related thereto.
(2) International Banking Facility. For taxable years
ending before December 31, 2008:
(A) Adjusted Income. The adjusted income of an
international banking facility is its income reduced
by the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income of
the international banking facility by a fraction, not
greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured
primarily by real estate) and to foreign

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

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financial accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit
Insurance Corporation and other regulatory authorities
is altered so that the information required for
determining the floor amount is not found on Schedule
A, lines 2.c., 5.b. and 7.a., the financial institution
shall notify the Department and the Department may, by
regulations or otherwise, prescribe or authorize the
use of an alternative source for such information. The
financial institution shall also notify the Department
should its international banking facility fail to
qualify as such, in whole or in part, or should there
be any amendment or change to the Consolidated Report
of Condition, as originally filed, to the extent such
amendment or change alters the information used in
determining the floor amount.
(3) For taxable years ending on or after December 31,
2008, the business income of a financial organization shall
be apportioned to this State by multiplying such income by
a fraction, the numerator of which is its gross receipts
from sources in this State or otherwise attributable to
this State's marketplace and the denominator of which is
its gross receipts everywhere during the taxable year.
"Gross receipts" for purposes of this subparagraph (3)

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means gross income, including net taxable gain on
disposition of assets, including securities and money
market instruments, when derived from transactions and
activities in the regular course of the financial
organization's trade or business. The following examples
are illustrative:
(i) Receipts from the lease or rental of real or
tangible personal property are in this State if the
property is located in this State during the rental
period. Receipts from the lease or rental of tangible
personal property that is characteristically moving
property, including, but not limited to, motor
vehicles, rolling stock, aircraft, vessels, or mobile
equipment are from sources in this State to the extent
that the property is used in this State.
(ii) Interest income, commissions, fees, gains on
disposition, and other receipts from assets in the
nature of loans that are secured primarily by real
estate or tangible personal property are from sources
in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on
disposition, and other receipts from consumer loans
that are not secured by real or tangible personal
property are from sources in this State if the debtor
is a resident of this State.
(iv) Interest income, commissions, fees, gains on

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disposition, and other receipts from commercial loans
and installment obligations that are not secured by
real or tangible personal property are from sources in
this State if the proceeds of the loan are to be
applied in this State. If it cannot be determined where
the funds are to be applied, the income and receipts
are from sources in this State if the office of the
borrower from which the loan was negotiated in the
regular course of business is located in this State. If
the location of this office cannot be determined, the
income and receipts shall be excluded from the
numerator and denominator of the sales factor.
(v) Interest income, fees, gains on disposition,
service charges, merchant discount income, and other
receipts from credit card receivables are from sources
in this State if the card charges are regularly billed
to a customer in this State.
(vi) Receipts from the performance of services,
including, but not limited to, fiduciary, advisory,
and brokerage services, are in this State if the
services are received in this State within the meaning
of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers
checks and money orders are from sources in this State
if the checks and money orders are issued from a
location within this State.

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

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

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

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amount described in subparagraph (B) of
paragraph (1) of this subsection by a fraction,
the numerator of which is the gross income from
such trading assets and activities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such assets and activities.
(D) Properly assigned, for purposes of
this paragraph (2) of this subsection, means
the investment or trading asset or activity is
assigned to the fixed place of business with
which it has a preponderance of substantive
contacts. An investment or trading asset or
activity assigned by the taxpayer to a fixed
place of business without the State shall be
presumed to have been properly assigned if:
(i) the taxpayer has assigned, in the
regular course of its business, such asset
or activity on its records to a fixed place
of business consistent with federal or
state regulatory requirements;
(ii) such assignment on its records is
based upon substantive contacts of the
asset or activity to such fixed place of
business; and

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

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subparagraph (E), it shall be presumed,
subject to rebuttal, that taxpayer's
commercial domicile is in the state of the
United States or the District of Columbia to
which the greatest number of employees are
regularly connected with the management of the
investment or trading income or out of which
they are working, irrespective of where the
services of such employees are performed, as of
the last day of the taxable year.
(4) (Blank).
(5) (Blank).
(c-1) Federally regulated exchanges. For taxable years
ending on or after December 31, 2012, business income of a
federally regulated exchange shall, at the option of the
federally regulated exchange, be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is its business income from sources within this State, and the
denominator of which is its business income from all sources.
For purposes of this subsection, the business income within
this State of a federally regulated exchange is the sum of the
following:
(1) Receipts attributable to transactions executed on
a physical trading floor if that physical trading floor is
located in this State.
(2) Receipts attributable to all other matching,

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execution, or clearing transactions, including without
limitation receipts from the provision of matching,
execution, or clearing services to another entity,
multiplied by (i) for taxable years ending on or after
December 31, 2012 but before December 31, 2013, 63.77%; and
(ii) for taxable years ending on or after December 31,
2013, 27.54%.
(3) All other receipts not governed by subparagraphs
(1) or (2) of this subsection (c-1), to the extent the
receipts would be characterized as "sales in this State"
under item (3) of subsection (a) of this Section.
"Federally regulated exchange" means (i) a "registered
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
or (C), (ii) an "exchange" or "clearing agency" within the
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
entities regulated under any successor regulatory structure to
the foregoing, and (iv) all taxpayers who are members of the
same unitary business group as a federally regulated exchange,
determined without regard to the prohibition in Section
1501(a)(27) of this Act against including in a unitary business
group taxpayers who are ordinarily required to apportion
business income under different subsections of this Section;
provided that this subparagraph (iv) shall apply only if 50% or
more of the business receipts of the unitary business group
determined by application of this subparagraph (iv) for the
taxable year are attributable to the matching, execution, or

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clearing of transactions conducted by an entity described in
subparagraph (i), (ii), or (iii) of this paragraph.
In no event shall the Illinois apportionment percentage
computed in accordance with this subsection (c-1) for any
taxpayer for any tax year be less than the Illinois
apportionment percentage computed under this subsection (c-1)
for that taxpayer for the first full tax year ending on or
after December 31, 2013 for which this subsection (c-1) applied
to the taxpayer.
(d) Transportation services. For taxable years ending
before December 31, 2008, business income derived from
furnishing transportation services shall be apportioned to
this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived from
transportation by pipeline) shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the

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person's
(A) relative railway operating income from total
passenger and total freight service, as reported to the
Interstate Commerce Commission, in the case of
transportation by railroad, and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from transportation
by pipeline shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For the purposes of this paragraph, a revenue
mile is the transportation by pipeline of 1 barrel of oil,
1,000 cubic feet of gas, or of any specified quantity of
any other substance, the distance of 1 mile for a
consideration.
(3) For taxable years ending on or after December 31,
2008, business income derived from providing
transportation services other than airline services shall
be apportioned to this State by using a fraction, (a) the
numerator of which shall be (i) all receipts from any
movement or shipment of people, goods, mail, oil, gas, or
any other substance (other than by airline) that both
originates and terminates in this State, plus (ii) that

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

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which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the person
everywhere. For purposes of this paragraph, a revenue mile
is the transportation of one passenger or one net ton of
freight the distance of one mile for a consideration. If a
person is engaged in the transportation of both passengers
and freight, the fraction above referred to shall be
determined by means of an average of the passenger revenue
mile fraction and the freight revenue mile fraction,
weighted to reflect the person's relative gross receipts
from passenger and freight airline transportation.
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business income
attributable to this State by any such member or members shall
be apportioned by means of the combined apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) and of
subsection (h) do not, for taxable years ending before December
31, 2008, fairly represent the extent of a person's business
activity in this State, or, for taxable years ending on or
after December 31, 2008, fairly represent the market for the
person's goods, services, or other sources of business income,
the person may petition for, or the Director may, without a
petition, permit or require, in respect of all or any part of

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the person's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;
(3) The inclusion of one or more additional factors
which will fairly represent the person's business
activities or market in this State; or
(4) The employment of any other method to effectuate an
equitable allocation and apportionment of the person's
business income.
(g) Cross reference. For allocation of business income by
residents, see Section 301(a).
(h) For tax years ending on or after December 31, 1998, the
apportionment factor of persons who apportion their business
income to this State under subsection (a) shall be equal to:
(1) for tax years ending on or after December 31, 1998
and before December 31, 1999, 16 2/3% of the property
factor plus 16 2/3% of the payroll factor plus 66 2/3% of
the sales factor;
(2) for tax years ending on or after December 31, 1999
and before December 31, 2000, 8 1/3% of the property factor
plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
factor;
(3) for tax years ending on or after December 31, 2000,
the sales factor.
If, in any tax year ending on or after December 31, 1998 and
before December 31, 2000, the denominator of the payroll,

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property, or sales factor is zero, the apportionment factor
computed in paragraph (1) or (2) of this subsection for that
year shall be divided by an amount equal to 100% minus the
percentage weight given to each factor whose denominator is
equal to zero.
(Source: P.A. 100-201, eff. 8-18-17; 101-31, eff. 6-28-19;
101-585, eff. 8-26-19; revised 9-12-19.)
(35 ILCS 5/710) (from Ch. 120, par. 7-710)
Sec. 710. Withholding from lottery winnings.
(a) In general.
(1) Any person making a payment to a resident or
nonresident of winnings under the Illinois Lottery Law and
not required to withhold Illinois income tax from such
payment under Subsection (b) of Section 701 of this Act
because those winnings are not subject to Federal income
tax withholding, must withhold Illinois income tax from
such payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that withholding is not required if such payment
of winnings is less than $1,000.
(2) In the case of an assignment of a lottery prize
under Section 13.1 of the Illinois Lottery Law, any person
making a payment of the purchase price after December 31,
2013, shall withhold from the amount of each payment at a
rate equal to the percentage tax rate for individuals

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provided in subsection (b) of Section 201.
(3) Any person making a payment after December 31, 2019
to a resident or nonresident of winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from gambling
games conducted on a riverboat or in a casino or
organization gaming facility licensed under the Illinois
Gambling Act must withhold Illinois income tax from such
payment at a rate equal to the percentage tax rate for
individuals provided in subsection (b) of Section 201,
provided that the person making the payment is required to
withhold under Section 3402(q) of the Internal Revenue
Code.
(b) Credit for taxes withheld. Any amount withheld under
Subsection (a) shall be a credit against the Illinois income
tax liability of the person to whom the payment of winnings was
made for the taxable year in which that person incurred an
Illinois income tax liability with respect to those winnings.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-390. The Joliet Regional Port District Act is
amended by changing Section 5.1 as follows:
(70 ILCS 1825/5.1) (from Ch. 19, par. 255.1)
Sec. 5.1. Riverboat and casino gambling. Notwithstanding
any other provision of this Act, the District may not regulate

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the operation, conduct, or navigation of any riverboat gambling
casino licensed under the Illinois Riverboat Gambling Act, and
the District may not license, tax, or otherwise levy any
assessment of any kind on any riverboat gambling casino
licensed under the Illinois Riverboat Gambling Act. The General
Assembly declares that the powers to regulate the operation,
conduct, and navigation of riverboat gambling casinos and to
license, tax, and levy assessments upon riverboat gambling
casinos are exclusive powers of the State of Illinois and the
Illinois Gaming Board as provided in the Illinois Riverboat
Gambling Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-395. The Consumer Installment Loan Act is
amended by changing Section 12.5 as follows:
(205 ILCS 670/12.5)
Sec. 12.5. Limited purpose branch.
(a) Upon the written approval of the Director, a licensee
may maintain a limited purpose branch for the sole purpose of
making loans as permitted by this Act. A limited purpose branch
may include an automatic loan machine. No other activity shall
be conducted at the site, including but not limited to,
accepting payments, servicing the accounts, or collections.
(b) The licensee must submit an application for a limited
purpose branch to the Director on forms prescribed by the

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Director with an application fee of $300. The approval for the
limited purpose branch must be renewed concurrently with the
renewal of the licensee's license along with a renewal fee of
$300 for the limited purpose branch.
(c) The books, accounts, records, and files of the limited
purpose branch's transactions shall be maintained at the
licensee's licensed location. The licensee shall notify the
Director of the licensed location at which the books, accounts,
records, and files shall be maintained.
(d) The licensee shall prominently display at the limited
purpose branch the address and telephone number of the
licensee's licensed location.
(e) No other business shall be conducted at the site of the
limited purpose branch unless authorized by the Director.
(f) The Director shall make and enforce reasonable rules
for the conduct of a limited purpose branch.
(g) A limited purpose branch may not be located within
1,000 feet of a facility operated by an inter-track wagering
licensee or an organization licensee subject to the Illinois
Horse Racing Act of 1975, on a riverboat or in a casino subject
to the Illinois Riverboat Gambling Act, or within 1,000 feet of
the location at which the riverboat docks or within 1,000 feet
of a casino.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/3.32 rep.)

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(230 ILCS 5/3.33 rep.)
(230 ILCS 5/3.34 rep.)
(230 ILCS 5/3.35 rep.)
(230 ILCS 5/19.5 rep.)
(230 ILCS 5/34.3 rep.)
(230 ILCS 5/56 rep.)
Section 10-400. The Illinois Horse Racing Act of 1975 is
amended by repealing Sections 3.32, 3.33, 3.34, 3.35, 19.5,
34.3, and 56, all as added by Public Act 101-31.
Section 10-405. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 1.2, 3.11, 3.12, 6, 9, 15, 18, 19,
20, 21, 24, 25, 26, 26.8, 26.9, 27, 29, 30, 30.5, 31, 31.1,
32.1, 36, 40, and 54.75 as follows:
(230 ILCS 5/1.2)
Sec. 1.2. Legislative intent. This Act is intended to
benefit the people of the State of Illinois by encouraging the
breeding and production of race horses, assisting economic
development and promoting Illinois tourism. The General
Assembly finds and declares it to be the public policy of the
State of Illinois to:
(a) support and enhance Illinois' horse racing industry,
which is a significant component within the agribusiness
industry;
(b) ensure that Illinois' horse racing industry remains

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competitive with neighboring states;
(c) stimulate growth within Illinois' horse racing
industry, thereby encouraging new investment and development
to produce additional tax revenues and to create additional
jobs;
(d) promote the further growth of tourism;
(e) encourage the breeding of thoroughbred and
standardbred horses in this State; and
(f) ensure that public confidence and trust in the
credibility and integrity of racing operations and the
regulatory process is maintained.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/3.11) (from Ch. 8, par. 37-3.11)
Sec. 3.11. "Organization Licensee" means any person
receiving an organization license from the Board to conduct a
race meeting or meetings. With respect only to organization
gaming, "organization licensee" includes the authorization for
an organization gaming license under subsection (a) of Section
56 of this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/3.12) (from Ch. 8, par. 37-3.12)
Sec. 3.12. Pari-mutuel system of wagering. "Pari-mutuel
system of wagering" means a form of wagering on the outcome of
horse races in which wagers are made in various denominations

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on a horse or horses and all wagers for each race are pooled
and held by a licensee for distribution in a manner approved by
the Board. "Pari-mutuel system of wagering" shall not include
wagering on historic races. Wagers may be placed via any method
or at any location authorized under this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/6) (from Ch. 8, par. 37-6)
Sec. 6. Restrictions on Board members.
(a) No person shall be appointed a member of the Board or
continue to be a member of the Board if the person or any
member of their immediate family is a member of the Board of
Directors, employee, or financially interested in any of the
following: (i) any licensee or other person who has applied for
racing dates to the Board, or the operations thereof including,
but not limited to, concessions, data processing, track
maintenance, track security, and pari-mutuel operations,
located, scheduled or doing business within the State of
Illinois, (ii) any race horse competing at a meeting under the
Board's jurisdiction, or (iii) any licensee under the Illinois
Gambling Act. No person shall be appointed a member of the
Board or continue to be a member of the Board who is (or any
member of whose family is) a member of the Board of Directors
of, or who is a person financially interested in, any licensee
or other person who has applied for racing dates to the Board,
or the operations thereof including, but not limited to,

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concessions, data processing, track maintenance, track
security and pari-mutuel operations, located, scheduled or
doing business within the State of Illinois, or in any race
horse competing at a meeting under the Board's jurisdiction. No
Board member shall hold any other public office for which he
shall receive compensation other than necessary travel or other
incidental expenses.
(b) No person shall be a member of the Board who is not of
good moral character or who has been convicted of, or is under
indictment for, a felony under the laws of Illinois or any
other state, or the United States.
(c) No member of the Board or employee shall engage in any
political activity.
For the purposes of this subsection (c):
"Political" means any activity in support of or in
connection with any campaign for State or local elective office
or any political organization, but does not include activities
(i) relating to the support or opposition of any executive,
legislative, or administrative action (as those terms are
defined in Section 2 of the Lobbyist Registration Act), (ii)
relating to collective bargaining, or (iii) that are otherwise
in furtherance of the person's official State duties or
governmental and public service functions.
"Political organization" means a party, committee,
association, fund, or other organization (whether or not
incorporated) that is required to file a statement of

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organization with the State Board of Elections or county clerk
under Section 9-3 of the Election Code, but only with regard to
those activities that require filing with the State Board of
Elections or county clerk.
(d) Board members and employees may not engage in
communications or any activity that may cause or have the
appearance of causing a conflict of interest. A conflict of
interest exists if a situation influences or creates the
appearance that it may influence judgment or performance of
regulatory duties and responsibilities. This prohibition shall
extend to any act identified by Board action that, in the
judgment of the Board, could represent the potential for or the
appearance of a conflict of interest.
(e) Board members and employees may not accept any gift,
gratuity, service, compensation, travel, lodging, or thing of
value, with the exception of unsolicited items of an incidental
nature, from any person, corporation, limited liability
company, or entity doing business with the Board.
(f) A Board member or employee shall not use or attempt to
use his or her official position to secure, or attempt to
secure, any privilege, advantage, favor, or influence for
himself or herself or others. No Board member or employee,
within a period of one year immediately preceding nomination by
the Governor or employment, shall have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in

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business with the Board, a licensee or a licensee under the
Illinois Gambling Act. In addition, all Board members and
employees are subject to the restrictions set forth in Section
5-45 of the State Officials and Employees Ethics Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/9) (from Ch. 8, par. 37-9)
Sec. 9. The Board shall have all powers necessary and
proper to fully and effectively execute the provisions of this
Act, including, but not limited to, the following:
(a) The Board is vested with jurisdiction and supervision
over all race meetings in this State, over all licensees doing
business in this State, over all occupation licensees, and over
all persons on the facilities of any licensee. Such
jurisdiction shall include the power to issue licenses to the
Illinois Department of Agriculture authorizing the pari-mutuel
system of wagering on harness and Quarter Horse races held (1)
at the Illinois State Fair in Sangamon County, and (2) at the
DuQuoin State Fair in Perry County. The jurisdiction of the
Board shall also include the power to issue licenses to county
fairs which are eligible to receive funds pursuant to the
Agricultural Fair Act, as now or hereafter amended, or their
agents, authorizing the pari-mutuel system of wagering on horse
races conducted at the county fairs receiving such licenses.
Such licenses shall be governed by subsection (n) of this
Section.

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

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conducted. Such reasonable rules and regulations are to provide
for the prevention of practices detrimental to the public
interest and to promote the best interests of horse racing and
to impose penalties for violations thereof.
(c) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter the
facilities and other places of business of any licensee to
determine whether there has been compliance with the provisions
of this Act and its rules and regulations.
(d) The Board, and any person or persons to whom it
delegates this power, is vested with the authority to
investigate alleged violations of the provisions of this Act,
its reasonable rules and regulations, orders and final
decisions; the Board shall take appropriate disciplinary
action against any licensee or occupation licensee for
violation thereof or institute appropriate legal action for the
enforcement thereof.
(e) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any race
meeting or the facilities of any licensee, or any part thereof,
any occupation licensee or any other individual whose conduct
or reputation is such that his presence on those facilities
may, in the opinion of the Board, call into question the
honesty and integrity of horse racing or wagering or interfere
with the orderly conduct of horse racing or wagering; provided,
however, that no person shall be excluded or ejected from the

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facilities of any licensee solely on the grounds of race,
color, creed, national origin, ancestry, or sex. The power to
eject or exclude an occupation licensee or other individual may
be exercised for just cause by the licensee or the Board,
subject to subsequent hearing by the Board as to the propriety
of said exclusion.
(f) The Board is vested with the power to acquire,
establish, maintain and operate (or provide by contract to
maintain and operate) testing laboratories and related
facilities, for the purpose of conducting saliva, blood, urine
and other tests on the horses run or to be run in any horse race
meeting, including races run at county fairs, and to purchase
all equipment and supplies deemed necessary or desirable in
connection with any such testing laboratories and related
facilities and all such tests.
(g) The Board may require that the records, including
financial or other statements of any licensee or any person
affiliated with the licensee who is involved directly or
indirectly in the activities of any licensee as regulated under
this Act to the extent that those financial or other statements
relate to such activities be kept in such manner as prescribed
by the Board, and that Board employees shall have access to
those records during reasonable business hours. Within 120 days
of the end of its fiscal year, each licensee shall transmit to
the Board an audit of the financial transactions and condition
of the licensee's total operations. All audits shall be

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conducted by certified public accountants. Each certified
public accountant must be registered in the State of Illinois
under the Illinois Public Accounting Act. The compensation for
each certified public accountant shall be paid directly by the
licensee to the certified public accountant. A licensee shall
also submit any other financial or related information the
Board deems necessary to effectively administer this Act and
all rules, regulations, and final decisions promulgated under
this Act.
(h) The Board shall name and appoint in the manner provided
by the rules and regulations of the Board: an Executive
Director; a State director of mutuels; State veterinarians and
representatives to take saliva, blood, urine and other tests on
horses; licensing personnel; revenue inspectors; and State
seasonal employees (excluding admission ticket sellers and
mutuel clerks). All of those named and appointed as provided in
this subsection shall serve during the pleasure of the Board;
their compensation shall be determined by the Board and be paid
in the same manner as other employees of the Board under this
Act.
(i) The Board shall require that there shall be 3 stewards
at each horse race meeting, at least 2 of whom shall be named
and appointed by the Board. Stewards appointed or approved by
the Board, while performing duties required by this Act or by
the Board, shall be entitled to the same rights and immunities
as granted to Board members and Board employees in Section 10

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of this Act.
(j) The Board may discharge any Board employee who fails or
refuses for any reason to comply with the rules and regulations
of the Board, or who, in the opinion of the Board, is guilty of
fraud, dishonesty or who is proven to be incompetent. The Board
shall have no right or power to determine who shall be
officers, directors or employees of any licensee, or their
salaries except the Board may, by rule, require that all or any
officials or employees in charge of or whose duties relate to
the actual running of races be approved by the Board.
(k) The Board is vested with the power to appoint delegates
to execute any of the powers granted to it under this Section
for the purpose of administering this Act and any rules or
regulations promulgated in accordance with this Act.
(l) The Board is vested with the power to impose civil
penalties of up to $5,000 against an individual and up to
$10,000 against a licensee for each violation of any provision
of this Act, any rules adopted by the Board, any order of the
Board or any other action which, in the Board's discretion, is
a detriment or impediment to horse racing or wagering.
Beginning on the date when any organization licensee begins
conducting gaming pursuant to an organization gaming license
issued under the Illinois Gambling Act, the power granted to
the Board pursuant to this subsection (l) shall authorize the
Board to impose penalties of up to $10,000 against an
individual and up to $25,000 against a licensee. All such civil

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penalties shall be deposited into the Horse Racing Fund.
(m) The Board is vested with the power to prescribe a form
to be used by licensees as an application for employment for
employees of each licensee.
(n) The Board shall have the power to issue a license to
any county fair, or its agent, authorizing the conduct of the
pari-mutuel system of wagering. The Board is vested with the
full power to promulgate reasonable rules, regulations and
conditions under which all horse race meetings licensed
pursuant to this subsection shall be held and conducted,
including rules, regulations and conditions for the conduct of
the pari-mutuel system of wagering. The rules, regulations and
conditions shall provide for the prevention of practices
detrimental to the public interest and for the best interests
of horse racing, and shall prescribe penalties for violations
thereof. Any authority granted the Board under this Act shall
extend to its jurisdiction and supervision over county fairs,
or their agents, licensed pursuant to this subsection. However,
the Board may waive any provision of this Act or its rules or
regulations which would otherwise apply to such county fairs or
their agents.
(o) Whenever the Board is authorized or required by law to
consider some aspect of criminal history record information for
the purpose of carrying out its statutory powers and
responsibilities, then, upon request and payment of fees in
conformance with the requirements of Section 2605-400 of the

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Department of State Police Law (20 ILCS 2605/2605-400), the
Department of State Police is authorized to furnish, pursuant
to positive identification, such information contained in
State files as is necessary to fulfill the request.
(p) To insure the convenience, comfort, and wagering
accessibility of race track patrons, to provide for the
maximization of State revenue, and to generate increases in
purse allotments to the horsemen, the Board shall require any
licensee to staff the pari-mutuel department with adequate
personnel.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/15) (from Ch. 8, par. 37-15)
Sec. 15. (a) The Board shall, in its discretion, issue
occupation licenses to horse owners, trainers, harness
drivers, jockeys, agents, apprentices, grooms, stable foremen,
exercise persons, veterinarians, valets, blacksmiths,
concessionaires and others designated by the Board whose work,
in whole or in part, is conducted upon facilities within the
State. Such occupation licenses will be obtained prior to the
persons engaging in their vocation upon such facilities. The
Board shall not license pari-mutuel clerks, parking
attendants, security guards and employees of concessionaires.
No occupation license shall be required of any person who works
at facilities within this State as a pari-mutuel clerk, parking
attendant, security guard or as an employee of a

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concessionaire. Concessionaires of the Illinois State Fair and
DuQuoin State Fair and employees of the Illinois Department of
Agriculture shall not be required to obtain an occupation
license by the Board.
(b) Each application for an occupation license shall be on
forms prescribed by the Board. Such license, when issued, shall
be for the period ending December 31 of each year, except that
the Board in its discretion may grant 3-year licenses. The
application shall be accompanied by a fee of not more than $25
per year or, in the case of 3-year occupation license
applications, a fee of not more than $60. Each applicant shall
set forth in the application his full name and address, and if
he had been issued prior occupation licenses or has been
licensed in any other state under any other name, such name,
his age, whether or not a permit or license issued to him in
any other state has been suspended or revoked and if so whether
such suspension or revocation is in effect at the time of the
application, and such other information as the Board may
require. Fees for registration of stable names shall not exceed
$50.00. Beginning on the date when any organization licensee
begins conducting gaming pursuant to an organization gaming
license issued under the Illinois Gambling Act, the fee for
registration of stable names shall not exceed $150, and the
application fee for an occupation license shall not exceed $75,
per year or, in the case of a 3-year occupation license
application, the fee shall not exceed $180.

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(c) The Board may in its discretion refuse an occupation
license to any person:
(1) who has been convicted of a crime;
(2) who is unqualified to perform the duties required
of such applicant;
(3) who fails to disclose or states falsely any
information called for in the application;
(4) who has been found guilty of a violation of this
Act or of the rules and regulations of the Board; or
(5) whose license or permit has been suspended, revoked
or denied for just cause in any other state.
(d) The Board may suspend or revoke any occupation license:
(1) for violation of any of the provisions of this Act;
or
(2) for violation of any of the rules or regulations of
the Board; or
(3) for any cause which, if known to the Board, would
have justified the Board in refusing to issue such
occupation license; or
(4) for any other just cause.
(e) Each applicant shall submit his or her fingerprints
to the Department of State Police in the form and manner
prescribed by the Department of State Police. These
fingerprints shall be checked against the fingerprint records
now and hereafter filed in the Department of State Police and
Federal Bureau of Investigation criminal history records

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databases. The Department of State Police shall charge a fee
for conducting the criminal history records check, which shall
be deposited in the State Police Services Fund and shall not
exceed the actual cost of the records check. The Department of
State Police shall furnish, pursuant to positive
identification, records of conviction to the Board. Each
applicant for licensure shall submit with his occupation
license application, on forms provided by the Board, 2 sets of
his fingerprints. All such applicants shall appear in person at
the location designated by the Board for the purpose of
submitting such sets of fingerprints; however, with the prior
approval of a State steward, an applicant may have such sets of
fingerprints taken by an official law enforcement agency and
submitted to the Board.
(f) The Board may, in its discretion, issue an occupation
license without submission of fingerprints if an applicant has
been duly licensed in another recognized racing jurisdiction
after submitting fingerprints that were subjected to a Federal
Bureau of Investigation criminal history background check in
that jurisdiction.
(g) Beginning on the date when any organization licensee
begins conducting gaming pursuant to an organization gaming
license issued under the Illinois Gambling Act, the Board may
charge each applicant a reasonable nonrefundable fee to defray
the costs associated with the background investigation
conducted by the Board. This fee shall be exclusive of any

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other fee or fees charged in connection with an application for
and, if applicable, the issuance of, an organization gaming
license. If the costs of the investigation exceed the amount of
the fee charged, the Board shall immediately notify the
applicant of the additional amount owed, payment of which must
be submitted to the Board within 7 days after such
notification. All information, records, interviews, reports,
statements, memoranda, or other data supplied to or used by the
Board in the course of its review or investigation of an
applicant for a license or renewal under this Act shall be
privileged, strictly confidential, and shall be used only for
the purpose of evaluating an applicant for a license or a
renewal. Such information, records, interviews, reports,
statements, memoranda, or other data shall not be admissible as
evidence, nor discoverable, in any action of any kind in any
court or before any tribunal, board, agency, or person, except
for any action deemed necessary by the Board.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/18) (from Ch. 8, par. 37-18)
Sec. 18. (a) Together with its application, each applicant
for racing dates shall deliver to the Board a certified check
or bank draft payable to the order of the Board for $1,000. In
the event the applicant applies for racing dates in 2 or 3
successive calendar years as provided in subsection (b) of
Section 21, the fee shall be $2,000. Filing fees shall not be

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refunded in the event the application is denied. Beginning on
the date when any organization licensee begins conducting
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act, the application fee for racing dates
imposed by this subsection (a) shall be $10,000 and the
application fee for racing dates in 2 or 3 successive calendar
years as provided in subsection (b) of Section 21 shall be
$20,000. All filing fees shall be deposited into the Horse
Racing Fund.
(b) In addition to the filing fee imposed by subsection (a)
of $1000 and the fees provided in subsection (j) of Section 20,
each organization licensee shall pay a license fee of $100 for
each racing program on which its daily pari-mutuel handle is
$400,000 or more but less than $700,000, and a license fee of
$200 for each racing program on which its daily pari-mutuel
handle is $700,000 or more. The additional fees required to be
paid under this Section by this amendatory Act of 1982 shall be
remitted by the organization licensee to the Illinois Racing
Board with each day's graduated privilege tax or pari-mutuel
tax and breakage as provided under Section 27. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the license fee imposed by this
subsection (b) shall be $200 for each racing program on which
the organization licensee's daily pari-mutuel handle is
$100,000 or more, but less than $400,000, and the license fee

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imposed by this subsection (b) shall be $400 for each racing
program on which the organization licensee's daily pari-mutuel
handle is $400,000 or more.
(c) Sections 11-42-1, 11-42-5, and 11-54-1 of the "Illinois
Municipal Code," approved May 29, 1961, as now or hereafter
amended, shall not apply to any license under this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/19) (from Ch. 8, par. 37-19)
Sec. 19. (a) No organization license may be granted to
conduct a horse race meeting:
(1) except as provided in subsection (c) of Section 21
of this Act, to any person at any place within 35 miles of
any other place licensed by the Board to hold a race
meeting on the same date during the same hours, the mileage
measurement used in this subsection (a) shall be certified
to the Board by the Bureau of Systems and Services in the
Illinois Department of Transportation as the most commonly
used public way of vehicular travel;
(2) to any person in default in the payment of any
obligation or debt due the State under this Act, provided
no applicant shall be deemed in default in the payment of
any obligation or debt due to the State under this Act as
long as there is pending a hearing of any kind relevant to
such matter;
(3) to any person who has been convicted of the

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violation of any law of the United States or any State law
which provided as all or part of its penalty imprisonment
in any penal institution; to any person against whom there
is pending a Federal or State criminal charge; to any
person who is or has been connected with or engaged in the
operation of any illegal business; to any person who does
not enjoy a general reputation in his community of being an
honest, upright, law-abiding person; provided that none of
the matters set forth in this subparagraph (3) shall make
any person ineligible to be granted an organization license
if the Board determines, based on circumstances of any such
case, that the granting of a license would not be
detrimental to the interests of horse racing and of the
public;
(4) to any person who does not at the time of
application for the organization license own or have a
contract or lease for the possession of a finished race
track suitable for the type of racing intended to be held
by the applicant and for the accommodation of the public.
(b) (Blank) Horse racing on Sunday shall be prohibited
unless authorized by ordinance or referendum of the
municipality in which a race track or any of its appurtenances
or facilities are located, or utilized.
(c) If any person is ineligible to receive an organization
license because of any of the matters set forth in subsection
(a) (2) or subsection (a) (3) of this Section, any other or

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separate person that either (i) controls, directly or
indirectly, such ineligible person or (ii) is controlled,
directly or indirectly, by such ineligible person or by a
person which controls, directly or indirectly, such ineligible
person shall also be ineligible.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/20) (from Ch. 8, par. 37-20)
Sec. 20. (a) Any person desiring to conduct a horse race
meeting may apply to the Board for an organization license. The
application shall be made on a form prescribed and furnished by
the Board. The application shall specify:
(1) the dates on which it intends to conduct the horse
race meeting, which dates shall be provided under Section
21;
(2) the hours of each racing day between which it
intends to hold or conduct horse racing at such meeting;
(3) the location where it proposes to conduct the
meeting; and
(4) any other information the Board may reasonably
require.
(b) A separate application for an organization license
shall be filed for each horse race meeting which such person
proposes to hold. Any such application, if made by an
individual, or by any individual as trustee, shall be signed
and verified under oath by such individual. If the application

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is made by individuals, then it shall be signed and verified
under oath by at least 2 of the individuals; if the application
is made by or a partnership, it shall be signed and verified
under oath by at least 2 of such individuals or members of such
partnership as the case may be. If made by an association, a
corporation, a corporate trustee, a limited liability company,
or any other entity, it shall be signed by an authorized
officer, a partner, a member, or a manager, as the case may be,
of the entity the president and attested by the secretary or
assistant secretary under the seal of such association, trust
or corporation if it has a seal, and shall also be verified
under oath by one of the signing officers.
(c) The application shall specify:
(1) the name of the persons, association, trust, or
corporation making such application; and
(2) the principal post office address of the applicant;
(3) if the applicant is a trustee, the names and
addresses of the beneficiaries; if the applicant is a
corporation, the names and post office addresses of all
officers, stockholders and directors; or if such
stockholders hold stock as a nominee or fiduciary, the
names and post office addresses of the parties these
persons, partnerships, corporations, or trusts who are the
beneficial owners thereof or who are beneficially
interested therein; and if the applicant is a partnership,
the names and post office addresses of all partners,

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general or limited; if the applicant is a limited liability
company, the names and addresses of the manager and
members; and if the applicant is any other entity, the
names and addresses of all officers or other authorized
persons of the entity corporation, the name of the state of
its incorporation shall be specified.
(d) The applicant shall execute and file with the Board a
good faith affirmative action plan to recruit, train, and
upgrade minorities in all classifications within the
association.
(e) With such application there shall be delivered to the
Board a certified check or bank draft payable to the order of
the Board for an amount equal to $1,000. All applications for
the issuance of an organization license shall be filed with the
Board before August 1 of the year prior to the year for which
application is made and shall be acted upon by the Board at a
meeting to be held on such date as shall be fixed by the Board
during the last 15 days of September of such prior year. At
such meeting, the Board shall announce the award of the racing
meets, live racing schedule, and designation of host track to
the applicants and its approval or disapproval of each
application. No announcement shall be considered binding until
a formal order is executed by the Board, which shall be
executed no later than October 15 of that prior year. Absent
the agreement of the affected organization licensees, the Board
shall not grant overlapping race meetings to 2 or more tracks

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that are within 100 miles of each other to conduct the
thoroughbred racing.
(e-1) The Board shall award standardbred racing dates to
organization licensees with an organization gaming license
pursuant to the following schedule:
(1) For the first calendar year of operation of
gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, when a
single entity requests standardbred racing dates, the
Board shall award no fewer than 100 days of racing. The
100-day requirement may be reduced to no fewer than 80 days
if no dates are requested for the first 3 months of a
calendar year. If more than one entity requests
standardbred racing dates, the Board shall award no fewer
than 140 days of racing between the applicants.
(2) For the second calendar year of operation of
gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, when a
single entity requests standardbred racing dates, the
Board shall award no fewer than 100 days of racing. The
100-day requirement may be reduced to no fewer than 80 days
if no dates are requested for the first 3 months of a
calendar year. If more than one entity requests
standardbred racing dates, the Board shall award no fewer
than 160 days of racing between the applicants.
(3) For the third calendar year of operation of

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gambling games by an organization gaming licensee under
this amendatory Act of the 101st General Assembly, and each
calendar year thereafter, when a single entity requests
standardbred racing dates, the Board shall award no fewer
than 120 days of racing. The 120-day requirement may be
reduced to no fewer than 100 days if no dates are requested
for the first 3 months of a calendar year. If more than one
entity requests standardbred racing dates, the Board shall
award no fewer than 200 days of racing between the
applicants.
An organization licensee shall apply for racing dates
pursuant to this subsection (e-1). In awarding racing dates
under this subsection (e-1), the Board shall have the
discretion to allocate those standardbred racing dates among
these organization licensees.
(e-2) The Board shall award thoroughbred racing days to
Cook County organization licensees pursuant to the following
schedule:
(1) During the first year in which only one
organization licensee is awarded an organization gaming
license, the Board shall award no fewer than 110 days of
racing.
During the second year in which only one organization
licensee is awarded an organization gaming license, the
Board shall award no fewer than 115 racing days.
During the third year and every year thereafter, in

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which only one organization licensee is awarded an
organization gaming license, the Board shall award no fewer
than 120 racing days.
(2) During the first year in which 2 organization
licensees are awarded an organization gaming license, the
Board shall award no fewer than 139 total racing days.
During the second year in which 2 organization
licensees are awarded an organization gaming license, the
Board shall award no fewer than 160 total racing days.
During the third year and every year thereafter in
which 2 organization licensees are awarded an organization
gaming license, the Board shall award no fewer than 174
total racing days.
A Cook County organization licensee shall apply for racing
dates pursuant to this subsection (e-2). In awarding racing
dates under this subsection (e-2), the Board shall have the
discretion to allocate those thoroughbred racing dates among
these Cook County organization licensees.
(e-3) In awarding racing dates for calendar year 2020 and
thereafter in connection with a racetrack in Madison County,
the Board shall award racing dates and such organization
licensee shall run at least 700 thoroughbred races at the
racetrack in Madison County each year.
Notwithstanding Section 7.7 of the Illinois Gambling Act or
any provision of this Act other than subsection (e-4.5), for
each calendar year for which an organization gaming licensee

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

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guarantees contained in subsections (e-1), (e-2), and (e-3) to
ensure that each organization licensee shall individually run a
sufficient number of races per year to qualify for an
organization gaming license under this Act. The General
Assembly finds that the minimum live racing guarantees
contained in subsections (e-1), (e-2), and (e-3) are in the
best interest of the sport of horse racing, and that such
guarantees may only be reduced in the calendar year in which
they will be conducted in the limited circumstances described
in this subsection. The Board may decrease the number of racing
days without affecting an organization licensee's ability to
conduct gaming pursuant to an organization gaming license
issued under the Illinois Gambling Act only if the Board
determines, after notice and hearing, that:
(i) a decrease is necessary to maintain a sufficient
number of betting interests per race to ensure the
integrity of racing;
(ii) there are unsafe track conditions due to weather
or acts of God;
(iii) there is an agreement between an organization
licensee and the breed association that is applicable to
the involved live racing guarantee, such association
representing either the largest number of thoroughbred
owners and trainers or the largest number of standardbred
owners, trainers and drivers who race horses at the
involved organization licensee's racing meeting, so long

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

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

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

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

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

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of the final executed order of the Board awarding racing dates:
(1) file with the Board an acceptance of such award in
the form prescribed by the Board;
(2) pay to the Board an additional amount equal to $110
for each racing date awarded; and
(3) file with the Board the bonds required in Sections
21 and 25 at least 20 days prior to the first day of each
race meeting.
Upon compliance with the provisions of paragraphs (1), (2), and
(3) of this subsection (h), the applicant shall be issued an
organization license.
If any applicant fails to comply with this Section or fails
to pay the organization license fees herein provided, no
organization license shall be issued to such applicant.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/21) (from Ch. 8, par. 37-21)
Sec. 21. (a) Applications for organization licenses must be
filed with the Board at a time and place prescribed by the
rules and regulations of the Board. The Board shall examine the
applications within 21 days after the date allowed for filing
with respect to their conformity with this Act and such rules
and regulations as may be prescribed by the Board. If any
application does not comply with this Act or the rules and
regulations prescribed by the Board, such application may be
rejected and an organization license refused to the applicant,

HB5561 - 464 - LRB101 17547 JWD 66965 b
or the Board may, within 21 days of the receipt of such
application, advise the applicant of the deficiencies of the
application under the Act or the rules and regulations of the
Board, and require the submittal of an amended application
within a reasonable time determined by the Board; and upon
submittal of the amended application by the applicant, the
Board may consider the application consistent with the process
described in subsection (e-5) of Section 20 of this Act. If it
is found to be in compliance with this Act and the rules and
regulations of the Board, the Board may then issue an
organization license to such applicant.
(b) The Board may exercise discretion in granting racing
dates to qualified applicants different from those requested by
the applicants in their applications. However, if all eligible
applicants for organization licenses whose tracks are located
within 100 miles of each other execute and submit to the Board
a written agreement among such applicants as to the award of
racing dates, including where applicable racing programs, for
up to 3 consecutive years, then subject to annual review of
each applicant's compliance with Board rules and regulations,
provisions of this Act and conditions contained in annual dates
orders issued by the Board, the Board may grant such dates and
programs to such applicants as so agreed by them if the Board
determines that the grant of these racing dates is in the best
interests of racing. The Board shall treat any such agreement
as the agreement signatories' joint and several application for

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racing dates during the term of the agreement.
(c) Where 2 or more applicants propose to conduct horse
race meetings within 35 miles of each other, as certified to
the Board under Section 19 (a) (1) of this Act, on conflicting
dates, the Board may determine and grant the number of racing
days to be awarded to the several applicants in accordance with
the provisions of subsection (e-5) of Section 20 of this Act.
(d) (Blank).
(e) Prior to the issuance of an organization license, the
applicant shall file with the Board a bond payable to the State
of Illinois in the sum of $200,000, executed by the applicant
and a surety company or companies authorized to do business in
this State, and conditioned upon the payment by the
organization licensee of all taxes due under Section 27, other
monies due and payable under this Act, all purses due and
payable, and that the organization licensee will upon
presentation of the winning ticket or tickets distribute all
sums due to the patrons of pari-mutuel pools. Beginning on the
date when any organization licensee begins conducting gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, the amount of the bond required under
this subsection (e) shall be $500,000.
(f) Each organization license shall specify the person to
whom it is issued, the dates upon which horse racing is
permitted, and the location, place, track, or enclosure where
the horse race meeting is to be held.

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(g) Any person who owns one or more race tracks within the
State may seek, in its own name, a separate organization
license for each race track.
(h) All racing conducted under such organization license is
subject to this Act and to the rules and regulations from time
to time prescribed by the Board, and every such organization
license issued by the Board shall contain a recital to that
effect.
(i) Each such organization licensee may provide that at
least one race per day may be devoted to the racing of quarter
horses, appaloosas, arabians, or paints.
(j) In acting on applications for organization licenses,
the Board shall give weight to an organization license which
has implemented a good faith affirmative action effort to
recruit, train and upgrade minorities in all classifications
within the organization license.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/24) (from Ch. 8, par. 37-24)
Sec. 24. (a) No license shall be issued to or held by an
organization licensee unless all of its officers, directors,
and holders of ownership interests of at least 5% are first
approved by the Board. The Board shall not give approval of an
organization license application to any person who has been
convicted of or is under an indictment for a crime of moral
turpitude or has violated any provision of the racing law of

HB5561 - 467 - LRB101 17547 JWD 66965 b
this State or any rules of the Board.
(b) An organization licensee must notify the Board within
10 days of any change in the holders of a direct or indirect
interest in the ownership of the organization licensee. The
Board may, after hearing, revoke the organization license of
any person who registers on its books or knowingly permits a
direct or indirect interest in the ownership of that person
without notifying the Board of the name of the holder in
interest within this period.
(c) In addition to the provisions of subsection (a) of this
Section, no person shall be granted an organization license if
any public official of the State or member of his or her family
holds any ownership or financial interest, directly or
indirectly, in the person.
(d) No person which has been granted an organization
license to hold a race meeting shall give to any public
official or member of his family, directly or indirectly, for
or without consideration, any interest in the person. The Board
shall, after hearing, revoke the organization license granted
to a person which has violated this subsection.
(e) (Blank).
(f) No organization licensee or concessionaire or officer,
director or holder or controller of 5% or more legal or
beneficial interest in any organization licensee or concession
shall make any sort of gift or contribution that is prohibited
under Article 10 of the State Officials and Employees Ethics

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Act of any kind or pay or give any money or other thing of value
to any person who is a public official, or a candidate or
nominee for public office if that payment or gift is prohibited
under Article 10 of the State Officials and Employees Ethics
Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/25) (from Ch. 8, par. 37-25)
Sec. 25. Admission charge; bond; fine.
(a) There shall be paid to the Board at such time or times
as it shall prescribe, the sum of fifteen cents (15¢) for each
person entering the grounds or enclosure of each organization
licensee and inter-track wagering licensee upon a ticket of
admission except as provided in subsection (g) of Section 27 of
this Act. If tickets are issued for more than one day then the
sum of fifteen cents (15¢) shall be paid for each person using
such ticket on each day that the same shall be used. Provided,
however, that no charge shall be made on tickets of admission
issued to and in the name of directors, officers, agents or
employees of the organization licensee, or inter-track
wagering licensee, or to owners, trainers, jockeys, drivers and
their employees or to any person or persons entering the
grounds or enclosure for the transaction of business in
connection with such race meeting. The organization licensee or
inter-track wagering licensee may, if it desires, collect such
amount from each ticket holder in addition to the amount or

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

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payable or collected by it under this Section upon admission
fees received for any particular racing meetings. The Board may
also from time to time require sworn statements of the number
or numbers of such admissions and may prescribe blanks upon
which such reports shall be made. Any organization licensee or
inter-track wagering licensee failing or refusing to pay the
amount found to be due as herein provided, shall be deemed
guilty of a business offense and upon conviction shall be
punished by a fine of not more than five thousand dollars
($5,000) in addition to the amount due from such organization
licensee or inter-track wagering licensee as herein provided.
All fines paid into court by an organization licensee or
inter-track wagering licensee found guilty of violating this
Section shall be transmitted and paid over by the clerk of the
court to the Board. Beginning on the date when any organization
licensee begins conducting gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act, any fine
imposed pursuant to this subsection (b) shall not exceed
$10,000.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/26) (from Ch. 8, par. 37-26)
Sec. 26. Wagering.
(a) Any licensee may conduct and supervise the pari-mutuel
system of wagering, as defined in Section 3.12 of this Act, on
horse races conducted by an Illinois organization licensee or

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conducted at a racetrack located in another state or country
and televised in Illinois in accordance with subsection (g) of
Section 26 of this Act. Subject to the prior consent of the
Board, licensees may supplement any pari-mutuel pool in order
to guarantee a minimum distribution. Such pari-mutuel method of
wagering shall not, under any circumstances if conducted under
the provisions of this Act, be held or construed to be
unlawful, other statutes of this State to the contrary
notwithstanding. Subject to rules for advance wagering
promulgated by the Board, any licensee may accept wagers in
advance of the day of the race wagered upon occurs.
(b) No 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 other method of betting, pool
making, wagering or gambling shall be used or permitted by the
licensee. Each licensee may retain, subject to the payment of
all applicable taxes and purses, an amount not to exceed 17% of
all money wagered under subsection (a) of this Section, except
as may otherwise be permitted under this Act.
(b-5) An individual may place a wager under the pari-mutuel
system from any licensed location authorized under this Act
provided that wager is electronically recorded in the manner
described in Section 3.12 of this Act. Any wager made
electronically by an individual while physically on the
premises of a licensee shall be deemed to have been made at the

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premises of that licensee.
(c) Until January 1, 2000, the sum held by any licensee for
payment of outstanding pari-mutuel tickets, if unclaimed prior
to December 31 of the next year, shall be retained by the
licensee for payment of such tickets until that date. Within 10
days thereafter, the balance of such sum remaining unclaimed,
less any uncashed supplements contributed by such licensee for
the purpose of guaranteeing minimum distributions of any
pari-mutuel pool, shall be paid to the Illinois Veterans'
Rehabilitation Fund of the State treasury, except as provided
in subsection (g) of Section 27 of this Act. (Blank).
(c-5) The Beginning January 1, 2000, the sum held by any
licensee for payment of outstanding pari-mutuel tickets, if
unclaimed prior to December 31 of the next year, shall be
retained by the licensee for payment of such tickets until that
date. Within 10 days thereafter, the balance of such sum
remaining unclaimed, less any uncashed supplements contributed
by such licensee for the purpose of guaranteeing minimum
distributions of any pari-mutuel pool, shall be evenly
distributed to the purse account of the organization licensee
and the organization licensee, except that the balance of the
sum of all outstanding pari-mutuel tickets generated from
simulcast wagering and inter-track wagering by an organization
licensee located in a county with a population in excess of
230,000 and borders the Mississippi River or any licensee that
derives its license from that organization licensee shall be

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evenly distributed to the purse account of the organization
licensee and the organization licensee.
(d) A pari-mutuel ticket shall be honored until December 31
of the next calendar year, and the licensee shall pay the same
and may charge the amount thereof against unpaid money
similarly accumulated on account of pari-mutuel tickets not
presented for payment.
(e) No licensee shall knowingly permit any minor, other
than an employee of such licensee or an owner, trainer, jockey,
driver, or employee thereof, to be admitted during a racing
program unless accompanied by a parent or guardian, or any
minor to be a patron of the pari-mutuel system of wagering
conducted or supervised by it. The admission of any
unaccompanied minor, other than an employee of the licensee or
an owner, trainer, jockey, driver, or employee thereof at a
race track is a Class C misdemeanor.
(f) Notwithstanding the other provisions of this Act, an
organization licensee may contract with an entity in another
state or country to permit any legal wagering entity in another
state or country to accept wagers solely within such other
state or country on races conducted by the organization
licensee in this State. Beginning January 1, 2000, these wagers
shall not be subject to State taxation. Until January 1, 2000,
when the out-of-State entity conducts a pari-mutuel pool
separate from the organization licensee, a privilege tax equal
to 7 1/2% of all monies received by the organization licensee

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from entities in other states or countries pursuant to such
contracts is imposed on the organization licensee, and such
privilege tax shall be remitted to the Department of Revenue
within 48 hours of receipt of the moneys from the simulcast.
When the out-of-State entity conducts a combined pari-mutuel
pool with the organization licensee, the tax shall be 10% of
all monies received by the organization licensee with 25% of
the receipts from this 10% tax to be distributed to the county
in which the race was conducted.
An organization licensee may permit one or more of its
races to be utilized for pari-mutuel wagering at one or more
locations in other states and may transmit audio and visual
signals of races the organization licensee conducts to one or
more locations outside the State or country and may also permit
pari-mutuel pools in other states or countries to be combined
with its gross or net wagering pools or with wagering pools
established by other states.
(g) A host track may accept interstate simulcast wagers on
horse races conducted in other states or countries and shall
control the number of signals and types of breeds of racing in
its simulcast program, subject to the disapproval of the Board.
The Board may prohibit a simulcast program only if it finds
that the simulcast program is clearly adverse to the integrity
of racing. The host track simulcast program shall include the
signal of live racing of all organization licensees. All
non-host licensees and advance deposit wagering licensees

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shall carry the signal of and accept wagers on live racing of
all organization licensees. Advance deposit wagering licensees
shall not be permitted to accept out-of-state wagers on any
Illinois signal provided pursuant to this Section without the
approval and consent of the organization licensee providing the
signal. For one year after August 15, 2014 (the effective date
of Public Act 98-968), non-host licensees may carry the host
track simulcast program and shall accept wagers on all races
included as part of the simulcast program of horse races
conducted at race tracks located within North America upon
which wagering is permitted. For a period of one year after
August 15, 2014 (the effective date of Public Act 98-968), on
horse races conducted at race tracks located outside of North
America, non-host licensees may accept wagers on all races
included as part of the simulcast program upon which wagering
is permitted. Beginning August 15, 2015 (one year after the
effective date of Public Act 98-968), non-host licensees may
carry the host track simulcast program and shall accept wagers
on all races included as part of the simulcast program upon
which wagering is permitted. All organization licensees shall
provide their live signal to all advance deposit wagering
licensees for a simulcast commission fee not to exceed 6% of
the advance deposit wagering licensee's Illinois handle on the
organization licensee's signal without prior approval by the
Board. The Board may adopt rules under which it may permit
simulcast commission fees in excess of 6%. The Board shall

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adopt rules limiting the interstate commission fees charged to
an advance deposit wagering licensee. The Board shall adopt
rules regarding advance deposit wagering on interstate
simulcast races that shall reflect, among other things, the
General Assembly's desire to maximize revenues to the State,
horsemen purses, and organization licensees. However,
organization licensees providing live signals pursuant to the
requirements of this subsection (g) may petition the Board to
withhold their live signals from an advance deposit wagering
licensee if the organization licensee discovers and the Board
finds reputable or credible information that the advance
deposit wagering licensee is under investigation by another
state or federal governmental agency, the advance deposit
wagering licensee's license has been suspended in another
state, or the advance deposit wagering licensee's license is in
revocation proceedings in another state. The organization
licensee's provision of their live signal to an advance deposit
wagering licensee under this subsection (g) pertains to wagers
placed from within Illinois. Advance deposit wagering
licensees may place advance deposit wagering terminals at
wagering facilities as a convenience to customers. The advance
deposit wagering licensee shall not charge or collect any fee
from purses for the placement of the advance deposit wagering
terminals. The costs and expenses of the host track and
non-host licensees associated with interstate simulcast
wagering, other than the interstate commission fee, shall be

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borne by the host track and all non-host licensees incurring
these costs. The interstate commission fee shall not exceed 5%
of Illinois handle on the interstate simulcast race or races
without prior approval of the Board. The Board shall promulgate
rules under which it may permit interstate commission fees in
excess of 5%. The interstate commission fee and other fees
charged by the sending racetrack, including, but not limited
to, satellite decoder fees, shall be uniformly applied to the
host track and all non-host licensees.
Notwithstanding any other provision of this Act, through
December 31, 2020, an organization licensee, with the consent
of the horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
maintain a system whereby advance deposit wagering may take
place or an organization licensee, with the consent of the
horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting, may
contract with another person to carry out a system of advance
deposit wagering. Such consent may not be unreasonably
withheld. Only with respect to an appeal to the Board that
consent for an organization licensee that maintains its own
advance deposit wagering system is being unreasonably
withheld, the Board shall issue a final order within 30 days
after initiation of the appeal, and the organization licensee's

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advance deposit wagering system may remain operational during
that 30-day period. The actions of any organization licensee
who conducts advance deposit wagering or any person who has a
contract with an organization licensee to conduct advance
deposit wagering who conducts advance deposit wagering on or
after January 1, 2013 and prior to June 7, 2013 (the effective
date of Public Act 98-18) taken in reliance on the changes made
to this subsection (g) by Public Act 98-18 are hereby
validated, provided payment of all applicable pari-mutuel
taxes are remitted to the Board. All advance deposit wagers
placed from within Illinois must be placed through a
Board-approved advance deposit wagering licensee; no other
entity may accept an advance deposit wager from a person within
Illinois. All advance deposit wagering is subject to any rules
adopted by the Board. The Board may adopt rules necessary to
regulate advance deposit wagering through the use of emergency
rulemaking in accordance with Section 5-45 of the Illinois
Administrative Procedure Act. The General Assembly finds that
the adoption of rules to regulate advance deposit wagering is
deemed an emergency and necessary for the public interest,
safety, and welfare. An advance deposit wagering licensee may
retain all moneys as agreed to by contract with an organization
licensee. Any moneys retained by the organization licensee from
advance deposit wagering, not including moneys retained by the
advance deposit wagering licensee, shall be paid 50% to the
organization licensee's purse account and 50% to the

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organization licensee. With the exception of any organization
licensee that is owned by a publicly traded company that is
incorporated in a state other than Illinois and advance deposit
wagering licensees under contract with such organization
licensees, organization licensees that maintain advance
deposit wagering systems and advance deposit wagering
licensees that contract with organization licensees shall
provide sufficiently detailed monthly accountings to the
horsemen association representing the largest number of
owners, trainers, jockeys, or standardbred drivers who race
horses at that organization licensee's racing meeting so that
the horsemen association, as an interested party, can confirm
the accuracy of the amounts paid to the purse account at the
horsemen association's affiliated organization licensee from
advance deposit wagering. If more than one breed races at the
same race track facility, then the 50% of the moneys to be paid
to an organization licensee's purse account shall be allocated
among all organization licensees' purse accounts operating at
that race track facility proportionately based on the actual
number of host days that the Board grants to that breed at that
race track facility in the current calendar year. To the extent
any fees from advance deposit wagering conducted in Illinois
for wagers in Illinois or other states have been placed in
escrow or otherwise withheld from wagers pending a
determination of the legality of advance deposit wagering, no
action shall be brought to declare such wagers or the

HB5561 - 480 - LRB101 17547 JWD 66965 b
disbursement of any fees previously escrowed illegal.
(1) Between the hours of 6:30 a.m. and 6:30 p.m. an
inter-track wagering licensee other than the host track may
supplement the host track simulcast program with
additional simulcast races or race programs, provided that
between January 1 and the third Friday in February of any
year, inclusive, if no live thoroughbred racing is
occurring in Illinois during this period, only
thoroughbred races may be used for supplemental interstate
simulcast purposes. The Board shall withhold approval for a
supplemental interstate simulcast only if it finds that the
simulcast is clearly adverse to the integrity of racing. A
supplemental interstate simulcast may be transmitted from
an inter-track wagering licensee to its affiliated
non-host licensees. The interstate commission fee for a
supplemental interstate simulcast shall be paid by the
non-host licensee and its affiliated non-host licensees
receiving the simulcast.
(2) Between the hours of 6:30 p.m. and 6:30 a.m. an
inter-track wagering licensee other than the host track may
receive supplemental interstate simulcasts only with the
consent of the host track, except when the Board finds that
the simulcast is clearly adverse to the integrity of
racing. Consent granted under this paragraph (2) to any
inter-track wagering licensee shall be deemed consent to
all non-host licensees. The interstate commission fee for

HB5561 - 481 - LRB101 17547 JWD 66965 b
the supplemental interstate simulcast shall be paid by all
participating non-host licensees.
(3) Each licensee conducting interstate simulcast
wagering may retain, subject to the payment of all
applicable taxes and the purses, an amount not to exceed
17% of all money wagered. If any licensee conducts the
pari-mutuel system wagering on races conducted at
racetracks in another state or country, each such race or
race program shall be considered a separate racing day for
the purpose of determining the daily handle and computing
the privilege tax of that daily handle as provided in
subsection (a) of Section 27. Until January 1, 2000, from
the sums permitted to be retained pursuant to this
subsection, each inter-track wagering location licensee
shall pay 1% of the pari-mutuel handle wagered on simulcast
wagering to the Horse Racing Tax Allocation Fund, subject
to the provisions of subparagraph (B) of paragraph (11) of
subsection (h) of Section 26 of this Act.
(4) A licensee who receives an interstate simulcast may
combine its gross or net pools with pools at the sending
racetracks pursuant to rules established by the Board. All
licensees combining their gross pools at a sending
racetrack shall adopt the takeout percentages of the
sending racetrack. A licensee may also establish a separate
pool and takeout structure for wagering purposes on races
conducted at race tracks outside of the State of Illinois.

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The licensee may permit pari-mutuel wagers placed in other
states or countries to be combined with its gross or net
wagering pools or other wagering pools.
(5) After the payment of the interstate commission fee
(except for the interstate commission fee on a supplemental
interstate simulcast, which shall be paid by the host track
and by each non-host licensee through the host track) and
all applicable State and local taxes, except as provided in
subsection (g) of Section 27 of this Act, the remainder of
moneys retained from simulcast wagering pursuant to this
subsection (g), and Section 26.2 shall be divided as
follows:
(A) For interstate simulcast wagers made at a host
track, 50% to the host track and 50% to purses at the
host track.
(B) For wagers placed on interstate simulcast
races, supplemental simulcasts as defined in
subparagraphs (1) and (2), and separately pooled races
conducted outside of the State of Illinois made at a
non-host licensee, 25% to the host track, 25% to the
non-host licensee, and 50% to the purses at the host
track.
(6) Notwithstanding any provision in this Act to the
contrary, non-host licensees who derive their licenses
from a track located in a county with a population in
excess of 230,000 and that borders the Mississippi River

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may receive supplemental interstate simulcast races at all
times subject to Board approval, which shall be withheld
only upon a finding that a supplemental interstate
simulcast is clearly adverse to the integrity of racing.
(7) Effective January 1, 2017, notwithstanding any
provision of this Act to the contrary, after payment of all
applicable State and local taxes and interstate commission
fees, non-host licensees who derive their licenses from a
track located in a county with a population in excess of
230,000 and that borders the Mississippi River shall retain
50% of the retention from interstate simulcast wagers and
shall pay 50% to purses at the track from which the
non-host licensee derives its license.
(7.1) Notwithstanding any other provision of this Act
to the contrary, if no standardbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 p.m. and 6:30
a.m. during that calendar year shall be paid as follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many
racing dates as were conducted in calendar year 2000,
80% shall be paid to its thoroughbred purse account;
and

HB5561 - 484 - LRB101 17547 JWD 66965 b
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund and shall
be paid to purses for standardbred races for Illinois
conceived and foaled horses conducted at any county
fairgrounds. The moneys deposited into the Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall
be in addition to and not in lieu of any other moneys
paid to standardbred purses under this Act, and shall
not be commingled with other moneys paid into that
Fund. The moneys deposited pursuant to this
subparagraph (B) shall be allocated as provided by the
Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund
Advisory Board.
(7.2) Notwithstanding any other provision of this Act
to the contrary, if no thoroughbred racing is conducted at
a racetrack located in Madison County during any calendar
year beginning on or after January 1, 2002, all moneys
derived by that racetrack from simulcast wagering and
inter-track wagering that (1) are to be used for purses and
(2) are generated between the hours of 6:30 a.m. and 6:30
p.m. during that calendar year shall be deposited as
follows:
(A) If the licensee that conducts horse racing at
that racetrack requests from the Board at least as many

HB5561 - 485 - LRB101 17547 JWD 66965 b
racing dates as were conducted in calendar year 2000,
80% shall be deposited into its standardbred purse
account; and
(B) Twenty percent shall be deposited into the
Illinois Colt Stakes Purse Distribution Fund. Moneys
deposited into the Illinois Colt Stakes Purse
Distribution Fund pursuant to this subparagraph (B)
shall be paid to Illinois conceived and foaled
thoroughbred breeders' programs and to thoroughbred
purses for races conducted at any county fairgrounds
for Illinois conceived and foaled horses at the
discretion of the Department of Agriculture, with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. The moneys deposited
into the Illinois Colt Stakes Purse Distribution Fund
pursuant to this subparagraph (B) shall be deposited
within 2 weeks after the day they were generated, shall
be in addition to and not in lieu of any other moneys
paid to thoroughbred purses under this Act, and shall
not be commingled with other moneys deposited into that
Fund.
(7.3) (Blank).
(7.4) (Blank).
(8) Notwithstanding any provision in this Act to the
contrary, an organization licensee from a track located in
a county with a population in excess of 230,000 and that

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borders the Mississippi River and its affiliated non-host
licensees shall not be entitled to share in any retention
generated on racing, inter-track wagering, or simulcast
wagering at any other Illinois wagering facility.
(8.1) Notwithstanding any provisions in this Act to the
contrary, if 2 organization licensees are conducting
standardbred race meetings concurrently between the hours
of 6:30 p.m. and 6:30 a.m., after payment of all applicable
State and local taxes and interstate commission fees, the
remainder of the amount retained from simulcast wagering
otherwise attributable to the host track and to host track
purses shall be split daily between the 2 organization
licensees and the purses at the tracks of the 2
organization licensees, respectively, based on each
organization licensee's share of the total live handle for
that day, provided that this provision shall not apply to
any non-host licensee that derives its license from a track
located in a county with a population in excess of 230,000
and that borders the Mississippi River.
(9) (Blank).
(10) (Blank).
(11) (Blank).
(12) The Board shall have authority to compel all host
tracks to receive the simulcast of any or all races
conducted at the Springfield or DuQuoin State fairgrounds
and include all such races as part of their simulcast

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programs.
(13) Notwithstanding any other provision of this Act,
in the event that the total Illinois pari-mutuel handle on
Illinois horse races at all wagering facilities in any
calendar year is less than 75% of the total Illinois
pari-mutuel handle on Illinois horse races at all such
wagering facilities for calendar year 1994, then each
wagering facility that has an annual total Illinois
pari-mutuel handle on Illinois horse races that is less
than 75% of the total Illinois pari-mutuel handle on
Illinois horse races at such wagering facility for calendar
year 1994, shall be permitted to receive, from any amount
otherwise payable to the purse account at the race track
with which the wagering facility is affiliated in the
succeeding calendar year, an amount equal to 2% of the
differential in total Illinois pari-mutuel handle on
Illinois horse races at the wagering facility between that
calendar year in question and 1994 provided, however, that
a wagering facility shall not be entitled to any such
payment until the Board certifies in writing to the
wagering facility the amount to which the wagering facility
is entitled and a schedule for payment of the amount to the
wagering facility, based on: (i) the racing dates awarded
to the race track affiliated with the wagering facility
during the succeeding year; (ii) the sums available or
anticipated to be available in the purse account of the

HB5561 - 488 - LRB101 17547 JWD 66965 b
race track affiliated with the wagering facility for purses
during the succeeding year; and (iii) the need to ensure
reasonable purse levels during the payment period. The
Board's certification shall be provided no later than
January 31 of the succeeding year. In the event a wagering
facility entitled to a payment under this paragraph (13) is
affiliated with a race track that maintains purse accounts
for both standardbred and thoroughbred racing, the amount
to be paid to the wagering facility shall be divided
between each purse account pro rata, based on the amount of
Illinois handle on Illinois standardbred and thoroughbred
racing respectively at the wagering facility during the
previous calendar year. Annually, the General Assembly
shall appropriate sufficient funds from the General
Revenue Fund to the Department of Agriculture for payment
into the thoroughbred and standardbred horse racing purse
accounts at Illinois pari-mutuel tracks. The amount paid to
each purse account shall be the amount certified by the
Illinois Racing Board in January to be transferred from
each account to each eligible racing facility in accordance
with the provisions of this Section. Beginning in the
calendar year in which an organization licensee that is
eligible to receive payment under this paragraph (13)
begins to receive funds from gaming pursuant to an
organization gaming license issued under the Illinois
Gambling Act, the amount of the payment due to all wagering

HB5561 - 489 - LRB101 17547 JWD 66965 b
facilities licensed under that organization licensee under
this paragraph (13) shall be the amount certified by the
Board in January of that year. An organization licensee and
its related wagering facilities shall no longer be able to
receive payments under this paragraph (13) beginning in the
year subsequent to the first year in which the organization
licensee begins to receive funds from gaming pursuant to an
organization gaming license issued under the Illinois
Gambling Act.
(h) The Board may approve and license the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location licensees
subject to the following terms and conditions:
(1) Any person licensed to conduct a race meeting (i)
at a track where 60 or more days of racing were conducted
during the immediately preceding calendar year or where
over the 5 immediately preceding calendar years an average
of 30 or more days of racing were conducted annually may be
issued an inter-track wagering license; (ii) at a track
located in a county that is bounded by the Mississippi
River, which has a population of less than 150,000
according to the 1990 decennial census, and an average of
at least 60 days of racing per year between 1985 and 1993
may be issued an inter-track wagering license; or (iii) at
a track awarded standardbred racing dates; or (iv) at a
track located in Madison County that conducted at least 100

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

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delivered to the Board a certified check or bank draft
payable to the order of the Board for an amount equal to
$500. The application shall be on forms prescribed and
furnished by the Board. The application shall comply with
all other rules, regulations and conditions imposed by the
Board in connection therewith.
(2) The Board shall examine the applications with
respect to their conformity with this Act and the rules and
regulations imposed by the Board. If found to be in
compliance with the Act and rules and regulations of the
Board, the Board may then issue a license to conduct
inter-track wagering and simulcast wagering to such
applicant. All such applications shall be acted upon by the
Board at a meeting to be held on such date as may be fixed
by the Board.
(3) In granting licenses to conduct inter-track
wagering and simulcast wagering, the Board shall give due
consideration to the best interests of the public, of horse
racing, and of maximizing revenue to the State.
(4) Prior to the issuance of a license to conduct
inter-track wagering and simulcast wagering, the applicant
shall file with the Board a bond payable to the State of
Illinois in the sum of $50,000, executed by the applicant
and a surety company or companies authorized to do business
in this State, and conditioned upon (i) the payment by the
licensee of all taxes due under Section 27 or 27.1 and any

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other monies due and payable under this Act, and (ii)
distribution by the licensee, upon presentation of the
winning ticket or tickets, of all sums payable to the
patrons of pari-mutuel pools.
(5) Each license to conduct inter-track wagering and
simulcast wagering shall specify the person to whom it is
issued, the dates on which such wagering is permitted, and
the track or location where the wagering is to be
conducted.
(6) All wagering under such license is subject to this
Act and to the rules and regulations from time to time
prescribed by the Board, and every such license issued by
the Board shall contain a recital to that effect.
(7) An inter-track wagering licensee or inter-track
wagering location licensee may accept wagers at the track
or location where it is licensed, or as otherwise provided
under this Act.
(8) Inter-track wagering or simulcast wagering shall
not be conducted at any track less than 5 4 miles from a
track at which a racing meeting is in progress.
(8.1) Inter-track wagering location licensees who
derive their licenses from a particular organization
licensee shall conduct inter-track wagering and simulcast
wagering only at locations that are within 160 miles of
that race track where the particular organization licensee
is licensed to conduct racing. However, inter-track

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wagering and simulcast wagering shall not be conducted by
those licensees at any location within 5 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made. In the case of any inter-track
wagering location licensee initially licensed after
December 31, 2013, inter-track wagering and simulcast
wagering shall not be conducted by those inter-track
wagering location licensees that are located outside the
City of Chicago at any location within 8 miles of any race
track at which a horse race meeting has been licensed in
the current year, unless the person having operating
control of such race track has given its written consent to
such inter-track wagering location licensees, which
consent must be filed with the Board at or prior to the
time application is made.
(8.2) Inter-track wagering or simulcast wagering shall
not be conducted by an inter-track wagering location
licensee at any location within 500 feet of an existing
church, an or existing elementary or secondary public
school, or an existing elementary or secondary private
school registered with or recognized by the State Board of
Education school, nor within 500 feet of the residences of

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more than 50 registered voters without receiving written
permission from a majority of the registered voters at such
residences. Such written permission statements shall be
filed with the Board. The distance of 500 feet shall be
measured to the nearest part of any building used for
worship services, education programs, residential
purposes, or conducting inter-track wagering by an
inter-track wagering location licensee, and not to
property boundaries. However, inter-track wagering or
simulcast wagering may be conducted at a site within 500
feet of a church, school or residences of 50 or more
registered voters if such church, school or residences have
been erected or established, or such voters have been
registered, after the Board issues the original
inter-track wagering location license at the site in
question. Inter-track wagering location licensees may
conduct inter-track wagering and simulcast wagering only
in areas that are zoned for commercial or manufacturing
purposes or in areas for which a special use has been
approved by the local zoning authority. However, no license
to conduct inter-track wagering and simulcast wagering
shall be granted by the Board with respect to any
inter-track wagering location within the jurisdiction of
any local zoning authority which has, by ordinance or by
resolution, prohibited the establishment of an inter-track
wagering location within its jurisdiction. However,

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inter-track wagering and simulcast wagering may be
conducted at a site if such ordinance or resolution is
enacted after the Board licenses the original inter-track
wagering location licensee for the site in question.
(9) (Blank).
(10) An inter-track wagering licensee or an
inter-track wagering location licensee may retain, subject
to the payment of the privilege taxes and the purses, an
amount not to exceed 17% of all money wagered. Each program
of racing conducted by each inter-track wagering licensee
or inter-track wagering location licensee shall be
considered a separate racing day for the purpose of
determining the daily handle and computing the privilege
tax or pari-mutuel tax on such daily handle as provided in
Section 27.
(10.1) Except as provided in subsection (g) of Section
27 of this Act, inter-track wagering location licensees
shall pay 1% of the pari-mutuel handle at each location to
the municipality in which such location is situated and 1%
of the pari-mutuel handle at each location to the county in
which such location is situated. In the event that an
inter-track wagering location licensee is situated in an
unincorporated area of a county, such licensee shall pay 2%
of the pari-mutuel handle from such location to such
county. Inter-track wagering location licensees must pay
the handle percentage required under this paragraph to the

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municipality and county no later than the 20th of the month
following the month such handle was generated.
(10.2) Notwithstanding any other provision of this
Act, with respect to inter-track wagering at a race track
located in a county that has a population of more than
230,000 and that is bounded by the Mississippi River ("the
first race track"), or at a facility operated by an
inter-track wagering licensee or inter-track wagering
location licensee that derives its license from the
organization licensee that operates the first race track,
on races conducted at the first race track or on races
conducted at another Illinois race track and
simultaneously televised to the first race track or to a
facility operated by an inter-track wagering licensee or
inter-track wagering location licensee that derives its
license from the organization licensee that operates the
first race track, those moneys shall be allocated as
follows:
(A) That portion of all moneys wagered on
standardbred racing that is required under this Act to
be paid to purses shall be paid to purses for
standardbred races.
(B) That portion of all moneys wagered on
thoroughbred racing that is required under this Act to
be paid to purses shall be paid to purses for
thoroughbred races.

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

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

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licensee as described in subpart (I) shall be further
redistributed as provided in subparagraph (B) of paragraph
(5) of subsection (g) of this Section 26 provided first,
that the shares of those amounts, which are to be
redistributed to the host track or to purses at the host
track under subparagraph (B) of paragraph (5) of subsection
(g) of this Section 26 shall be redistributed based on each
host track's pro rata share of the total inter-track
wagering and simulcast wagering handle at all host tracks
during the calendar year in question, and second, that any
amounts redistributed as described in part (I) to an
inter-track wagering location licensee that accepts wagers
on races conducted by an organization licensee that
conducts a race meet in a county with a population in
excess of 230,000 and that borders the Mississippi River
shall be further redistributed, effective January 1, 2017,
as provided in paragraph (7) of subsection (g) of this
Section 26, with the portion of that further redistribution
allocated to purses at that organization licensee to be
divided between standardbred purses and thoroughbred
purses based on the amounts otherwise allocated to purses
at that organization licensee during the calendar year in
question; and (iv) 8% of the pari-mutuel handle on
inter-track wagering wagered at such location to satisfy
all costs and expenses of conducting its wagering. The
remainder of the monies retained by the inter-track

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

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

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

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

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

HB5561 - 505 - LRB101 17547 JWD 66965 b
of Public Act 87-110), be allocated and paid to that
conservation district as provided in this paragraph.
Any park district or municipality not maintaining a
museum may deposit the monies in the corporate fund of
the park district or municipality where the
inter-track wagering location is located, to be used
for general purposes; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967.
Until January 1, 2000, all other monies paid into the
Horse Racing Tax Allocation Fund pursuant to this paragraph
(11) shall be allocated by appropriation as follows:
Two-sevenths to the Department of Agriculture.
Fifty percent of this two-sevenths shall be used to
promote the Illinois horse racing and breeding
industry, and shall be distributed by the Department of
Agriculture upon the advice of a 9-member committee
appointed by the Governor consisting of the following
members: the Director of Agriculture, who shall serve
as chairman; 2 representatives of organization
licensees conducting thoroughbred race meetings in

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

HB5561 - 507 - LRB101 17547 JWD 66965 b
premiums and rehabilitation as set forth in the
Agricultural Fair Act;
Four-sevenths to museums and aquariums located in
park districts of over 500,000 population; provided
that the monies are distributed in accordance with the
previous year's distribution of the maintenance tax
for such museums and aquariums as provided in Section 2
of the Park District Aquarium and Museum Act; and
One-seventh to the Agricultural Premium Fund to be
used for distribution to agricultural home economics
extension councils in accordance with "An Act in
relation to additional support and finances for the
Agricultural and Home Economic Extension Councils in
the several counties of this State and making an
appropriation therefor", approved July 24, 1967. This
subparagraph (C) shall be inoperative and of no force
and effect on and after January 1, 2000.
(D) Except as provided in paragraph (11) of this
subsection (h), with respect to purse allocation from
inter-track wagering, the monies so retained shall be
divided as follows:
(i) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is

HB5561 - 508 - LRB101 17547 JWD 66965 b
not conducting its own race meeting during the same
dates, then the entire purse allocation shall be to
purses at the track where the races wagered on are
being conducted.
(ii) If the inter-track wagering licensee,
except an inter-track wagering licensee that
derives its license from an organization licensee
located in a county with a population in excess of
230,000 and bounded by the Mississippi River, is
also conducting its own race meeting during the
same dates, then the purse allocation shall be as
follows: 50% to purses at the track where the races
wagered on are being conducted; 50% to purses at
the track where the inter-track wagering licensee
is accepting such wagers.
(iii) If the inter-track wagering is being
conducted by an inter-track wagering location
licensee, except an inter-track wagering location
licensee that derives its license from an
organization licensee located in a county with a
population in excess of 230,000 and bounded by the
Mississippi River, the entire purse allocation for
Illinois races shall be to purses at the track
where the race meeting being wagered on is being
held.
(12) The Board shall have all powers necessary and

HB5561 - 509 - LRB101 17547 JWD 66965 b
proper to fully supervise and control the conduct of
inter-track wagering and simulcast wagering by inter-track
wagering licensees and inter-track wagering location
licensees, including, but not limited to, the following:
(A) The Board is vested with power to promulgate
reasonable rules and regulations for the purpose of
administering the conduct of this wagering and to
prescribe reasonable rules, regulations and conditions
under which such wagering shall be held and conducted.
Such rules and regulations are to provide for the
prevention of practices detrimental to the public
interest and for the best interests of said wagering
and to impose penalties for violations thereof.
(B) The Board, and any person or persons to whom it
delegates this power, is vested with the power to enter
the facilities of any licensee to determine whether
there has been compliance with the provisions of this
Act and the rules and regulations relating to the
conduct of such wagering.
(C) The Board, and any person or persons to whom it
delegates this power, may eject or exclude from any
licensee's facilities, any person whose conduct or
reputation is such that his presence on such premises
may, in the opinion of the Board, call into the
question the honesty and integrity of, or interfere
with the orderly conduct of such wagering; provided,

HB5561 - 510 - LRB101 17547 JWD 66965 b
however, that no person shall be excluded or ejected
from such premises solely on the grounds of race,
color, creed, national origin, ancestry, or sex.
(D) (Blank).
(E) The Board is vested with the power to appoint
delegates to execute any of the powers granted to it
under this Section for the purpose of administering
this wagering and any rules and regulations
promulgated in accordance with this Act.
(F) The Board shall name and appoint a State
director of this wagering who shall be a representative
of the Board and whose duty it shall be to supervise
the conduct of inter-track wagering as may be provided
for by the rules and regulations of the Board; such
rules and regulation shall specify the method of
appointment and the Director's powers, authority and
duties.
(G) The Board is vested with the power to impose
civil penalties of up to $5,000 against individuals and
up to $10,000 against licensees for each violation of
any provision of this Act relating to the conduct of
this wagering, any rules adopted by the Board, any
order of the Board or any other action which in the
Board's discretion, is a detriment or impediment to
such wagering.
(13) The Department of Agriculture may enter into

HB5561 - 511 - LRB101 17547 JWD 66965 b
agreements with licensees authorizing such licensees to
conduct inter-track wagering on races to be held at the
licensed race meetings conducted by the Department of
Agriculture. Such agreement shall specify the races of the
Department of Agriculture's licensed race meeting upon
which the licensees will conduct wagering. In the event
that a licensee conducts inter-track pari-mutuel wagering
on races from the Illinois State Fair or DuQuoin State Fair
which are in addition to the licensee's previously approved
racing program, those races shall be considered a separate
racing day for the purpose of determining the daily handle
and computing the privilege or pari-mutuel tax on that
daily handle as provided in Sections 27 and 27.1. Such
agreements shall be approved by the Board before such
wagering may be conducted. In determining whether to grant
approval, the Board shall give due consideration to the
best interests of the public and of horse racing. The
provisions of paragraphs (1), (8), (8.1), and (8.2) of
subsection (h) of this Section which are not specified in
this paragraph (13) shall not apply to licensed race
meetings conducted by the Department of Agriculture at the
Illinois State Fair in Sangamon County or the DuQuoin State
Fair in Perry County, or to any wagering conducted on those
race meetings.
(14) An inter-track wagering location license
authorized by the Board in 2016 that is owned and operated

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by a race track in Rock Island County shall be transferred
to a commonly owned race track in Cook County on August 12,
2016 (the effective date of Public Act 99-757). The
licensee shall retain its status in relation to purse
distribution under paragraph (11) of this subsection (h)
following the transfer to the new entity. The pari-mutuel
tax credit under Section 32.1 shall not be applied toward
any pari-mutuel tax obligation of the inter-track wagering
location licensee of the license that is transferred under
this paragraph (14).
(i) Notwithstanding the other provisions of this Act, the
conduct of wagering at wagering facilities is authorized on all
days, except as limited by subsection (b) of Section 19 of this
Act.
(Source: P.A. 100-201, eff. 8-18-17; 100-627, eff. 7-20-18;
100-1152, eff. 12-14-18; 101-31, eff. 6-28-19; 101-52, eff.
7-12-19; 101-81, eff. 7-12-19; 101-109, eff. 7-19-19; revised
9-27-19.)
(230 ILCS 5/26.8)
Sec. 26.8. Beginning on February 1, 2014 and through
December 31, 2020, each wagering licensee may impose a
surcharge of up to 0.5% on winning wagers and winnings from
wagers. The surcharge shall be deducted from winnings prior to
payout. All amounts collected from the imposition of this
surcharge shall be evenly distributed to the organization

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licensee and the purse account of the organization licensee
with which the licensee is affiliated. The amounts distributed
under this Section shall be in addition to the amounts paid
pursuant to paragraph (10) of subsection (h) of Section 26,
Section 26.3, Section 26.4, Section 26.5, and Section 26.7.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/26.9)
Sec. 26.9. Beginning on February 1, 2014 and through
December 31, 2020, in addition to the surcharge imposed in
Sections 26.3, 26.4, 26.5, 26.7, and 26.8 of this Act, each
licensee shall impose a surcharge of 0.2% on winning wagers and
winnings from wagers. The surcharge shall be deducted from
winnings prior to payout. All amounts collected from the
surcharges imposed under this Section shall be remitted to the
Board. From amounts collected under this Section, the Board
shall deposit an amount not to exceed $100,000 annually into
the Quarter Horse Purse Fund and all remaining amounts into the
Horse Racing Fund.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/27) (from Ch. 8, par. 37-27)
Sec. 27. (a) In addition to the organization license fee
provided by this Act, until January 1, 2000, a graduated
privilege tax is hereby imposed for conducting the pari-mutuel
system of wagering permitted under this Act. Until January 1,

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2000, except as provided in subsection (g) of Section 27 of
this Act, all of the breakage of each racing day held by any
licensee in the State shall be paid to the State. Until January
1, 2000, such daily graduated privilege tax shall be paid by
the licensee from the amount permitted to be retained under
this Act. Until January 1, 2000, each day's graduated privilege
tax, breakage, and Horse Racing Tax Allocation funds shall be
remitted to the Department of Revenue within 48 hours after the
close of the racing day upon which it is assessed or within
such other time as the Board prescribes. The privilege tax
hereby imposed, until January 1, 2000, shall be a flat tax at
the rate of 2% of the daily pari-mutuel handle except as
provided in Section 27.1.
In addition, every organization licensee, except as
provided in Section 27.1 of this Act, which conducts multiple
wagering shall pay, until January 1, 2000, as a privilege tax
on multiple wagers an amount equal to 1.25% of all moneys
wagered each day on such multiple wagers, plus an additional
amount equal to 3.5% of the amount wagered each day on any
other multiple wager which involves a single betting interest
on 3 or more horses. The licensee shall remit the amount of
such taxes to the Department of Revenue within 48 hours after
the close of the racing day on which it is assessed or within
such other time as the Board prescribes.
This subsection (a) shall be inoperative and of no force
and effect on and after January 1, 2000.

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(a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
at the rate of 1.5% of the daily pari-mutuel handle is imposed
at all pari-mutuel wagering facilities and on advance deposit
wagering from a location other than a wagering facility, except
as otherwise provided for in this subsection (a-5). In addition
to the pari-mutuel tax imposed on advance deposit wagering
pursuant to this subsection (a-5), beginning on August 24, 2012
(the effective date of Public Act 97-1060) and through December
31, 2020, an additional pari-mutuel tax at the rate of 0.25%
shall be imposed on advance deposit wagering. Until August 25,
2012, the additional 0.25% pari-mutuel tax imposed on advance
deposit wagering by Public Act 96-972 shall be deposited into
the Quarter Horse Purse Fund, which shall be created as a
non-appropriated trust fund administered by the Board for
grants to thoroughbred organization licensees for payment of
purses for quarter horse races conducted by the organization
licensee. Beginning on August 26, 2012, the additional 0.25%
pari-mutuel tax imposed on advance deposit wagering shall be
deposited into the Standardbred Purse Fund, which shall be
created as a non-appropriated trust fund administered by the
Board, for grants to the standardbred organization licensees
for payment of purses for standardbred horse races conducted by
the organization licensee. Thoroughbred organization licensees
may petition the Board to conduct quarter horse racing and
receive purse grants from the Quarter Horse Purse Fund. The
Board shall have complete discretion in distributing the

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Quarter Horse Purse Fund to the petitioning organization
licensees. Beginning on July 26, 2010 (the effective date of
Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
the daily pari-mutuel handle is imposed at a pari-mutuel
facility whose license is derived from a track located in a
county that borders the Mississippi River and conducted live
racing in the previous year. The pari-mutuel tax imposed by
this subsection (a-5) shall be remitted to the Department of
Revenue within 48 hours after the close of the racing day upon
which it is assessed or within such other time as the Board
prescribes.
(a-10) Beginning on the date when an organization licensee
begins conducting gaming pursuant to an organization gaming
license, the following pari-mutuel tax is imposed upon an
organization licensee on Illinois races at the licensee's
racetrack:
1.5% of the pari-mutuel handle at or below the average
daily pari-mutuel handle for 2011.
2% of the pari-mutuel handle above the average daily
pari-mutuel handle for 2011 up to 125% of the average daily
pari-mutuel handle for 2011.
2.5% of the pari-mutuel handle 125% or more above the
average daily pari-mutuel handle for 2011 up to 150% of the
average daily pari-mutuel handle for 2011.
3% of the pari-mutuel handle 150% or more above the
average daily pari-mutuel handle for 2011 up to 175% of the

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average daily pari-mutuel handle for 2011.
3.5% of the pari-mutuel handle 175% or more above the
average daily pari-mutuel handle for 2011.
The pari-mutuel tax imposed by this subsection (a-10) shall
be remitted to the Board within 48 hours after the close of the
racing day upon which it is assessed or within such other time
as the Board prescribes.
(b) On or before December 31, 1999, in the event that any
organization licensee conducts 2 separate programs of races on
any day, each such program shall be considered a separate
racing day for purposes of determining the daily handle and
computing the privilege tax on such daily handle as provided in
subsection (a) of this Section.
(c) Licensees shall at all times keep accurate books and
records of all monies wagered on each day of a race meeting and
of the taxes paid to the Department of Revenue under the
provisions of this Section. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to such records for the purpose of examining
and checking the same and ascertaining whether the proper
amount of taxes is being paid as provided. The Board shall
require verified reports and a statement of the total of all
monies wagered daily at each wagering facility upon which the
taxes are assessed and may prescribe forms upon which such
reports and statement shall be made.
(d) Any licensee failing or refusing to pay the amount of

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any tax due under this Section shall be guilty of a business
offense and upon conviction shall be fined not more than $5,000
in addition to the amount found due as tax under this Section.
Each day's violation shall constitute a separate offense. All
fines paid into Court by a licensee hereunder shall be
transmitted and paid over by the Clerk of the Court to the
Board. Before a license is issued or re-issued, the licensee
shall post a bond in the sum of $500,000 to the State of
Illinois. The bond shall be used to guarantee that the licensee
faithfully makes the payments, keeps the books and records and
makes reports, and conducts games of chance in conformity with
this Act and the rules adopted by the Board. The bond shall not
be canceled by a surety on less than 30 days' notice in writing
to the Board. If a bond is canceled and the licensee fails to
file a new bond with the Board in the required amount on or
before the effective date of cancellation, the licensee's
license shall be revoked. The total and aggregate liability of
the surety on the bond is limited to the amount specified in
the bond.
(e) No other license fee, privilege tax, excise tax, or
racing fee, except as provided in this Act, shall be assessed
or collected from any such licensee by the State.
(f) No other license fee, privilege tax, excise tax or
racing fee shall be assessed or collected from any such
licensee by units of local government except as provided in
paragraph 10.1 of subsection (h) and subsection (f) of Section

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26 of this Act. However, any municipality that has a Board
licensed horse race meeting at a race track wholly within its
corporate boundaries or a township that has a Board licensed
horse race meeting at a race track wholly within the
unincorporated area of the township may charge a local
amusement tax not to exceed 10¢ per admission to such horse
race meeting by the enactment of an ordinance. However, any
municipality or county that has a Board licensed inter-track
wagering location facility wholly within its corporate
boundaries may each impose an admission fee not to exceed $1.00
per admission to such inter-track wagering location facility,
so that a total of not more than $2.00 per admission may be
imposed. Except as provided in subparagraph (g) of Section 27
of this Act, the inter-track wagering location licensee shall
collect any and all such fees. Inter-track wagering location
licensees must pay the admission fees required under this
subsection (f) to the municipality and county no later than the
20th of the month following the month such admission fees were
imposed. as the Board prescribes
(g) Notwithstanding any provision in this Act to the
contrary, if in any calendar year the total taxes and fees from
wagering on live racing and from inter-track wagering required
to be collected from licensees and distributed under this Act
to all State and local governmental authorities exceeds the
amount of such taxes and fees distributed to each State and
local governmental authority to which each State and local

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governmental authority was entitled under this Act for calendar
year 1994, then the first $11 million of that excess amount
shall be allocated at the earliest possible date for
distribution as purse money for the succeeding calendar year.
Upon reaching the 1994 level, and until the excess amount of
taxes and fees exceeds $11 million, the Board shall direct all
licensees to cease paying the subject taxes and fees and the
Board shall direct all licensees to allocate any such excess
amount for purses as follows:
(i) the excess amount shall be initially divided
between thoroughbred and standardbred purses based on the
thoroughbred's and standardbred's respective percentages
of total Illinois live wagering in calendar year 1994;
(ii) each thoroughbred and standardbred organization
licensee issued an organization licensee in that
succeeding allocation year shall be allocated an amount
equal to the product of its percentage of total Illinois
live thoroughbred or standardbred wagering in calendar
year 1994 (the total to be determined based on the sum of
1994 on-track wagering for all organization licensees
issued organization licenses in both the allocation year
and the preceding year) multiplied by the total amount
allocated for standardbred or thoroughbred purses,
provided that the first $1,500,000 of the amount allocated
to standardbred purses under item (i) shall be allocated to
the Department of Agriculture to be expended with the

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assistance and advice of the Illinois Standardbred
Breeders Funds Advisory Board for the purposes listed in
subsection (g) of Section 31 of this Act, before the amount
allocated to standardbred purses under item (i) is
allocated to standardbred organization licensees in the
succeeding allocation year.
To the extent the excess amount of taxes and fees to be
collected and distributed to State and local governmental
authorities exceeds $11 million, that excess amount shall be
collected and distributed to State and local authorities as
provided for under this Act.
(Source: P.A. 100-627, eff. 7-20-18; 101-31, eff. 6-28-19;
101-52, eff. 7-12-19; revised 8-28-19.)
(230 ILCS 5/29) (from Ch. 8, par. 37-29)
Sec. 29. (a) After the privilege or pari-mutuel tax
established in Sections 26(f), 27, and 27.1 is paid to the
State from the monies retained by the organization licensee
pursuant to Sections 26, 26.2, and 26.3, the remainder of those
monies retained pursuant to Sections 26 and 26.2, except as
provided in subsection (g) of Section 27 of this Act, shall be
allocated evenly to the organization licensee and as purses.
(b) (Blank).
(c) (Blank).
(d) From the amounts generated for purses from all sources,
including, but not limited to, amounts generated from wagering

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conducted by organization licensees, organization gaming
licensees, inter-track wagering licensees, inter-track
wagering location licensees, and advance deposit wagering
licensees, an organization licensee shall pay to an
organization representing the largest number of horse owners
and trainers in Illinois, for thoroughbred and standardbred
horses that race at the track of the organization licensee, an
amount equal to at least 5% of any and all revenue earned by
the organization licensee for purses for that calendar year. A
contract with the appropriate thoroughbred or standardbred
horsemen organization shall be negotiated and signed by the
organization licensee before the beginning of each calendar
year. Amounts may be used for any legal purpose, including, but
not limited to, operational expenses, programs for backstretch
workers, retirement plans, diversity scholarships, horse
aftercare programs, workers compensation insurance fees, and
horse ownership programs. Financial statements highlighting
how the funding is spent shall be provided upon request to the
organization licensee. The appropriate thoroughbred or
standardbred horsemen organization shall make that information
available on its website.
Each organization licensee and inter-track wagering
licensee from the money retained for purses as set forth in
subsection (a) of this Section, shall pay to an organization
representing the largest number of horse owners and trainers
which has negotiated a contract with the organization licensee

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for such purpose an amount equal to at least 1% of the
organization licensee's and inter-track wagering licensee's
retention of the pari-mutuel handle for the racing season. Each
inter-track wagering location licensee, from the 4% of its
handle required to be paid as purses under paragraph (11) of
subsection (h) of Section 26 of this Act, shall pay to the
contractually established representative organization 2% of
that 4%, provided that the payments so made to the organization
shall not exceed a total of $125,000 in any calendar year. Such
contract shall be negotiated and signed prior to the beginning
of the racing season.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/30) (from Ch. 8, par. 37-30)
Sec. 30. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of thoroughbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality thoroughbred horses to participate in
thoroughbred racing meetings in this State, and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.
(b) Each organization licensee conducting a thoroughbred
racing meeting pursuant to this Act shall provide at least two

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races each day limited to Illinois conceived and foaled horses
or Illinois foaled horses or both. A minimum of 6 races shall
be conducted each week limited to Illinois conceived and foaled
or Illinois foaled horses or both. No horses shall be permitted
to start in such races unless duly registered under the rules
of the Department of Agriculture.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality, and class of
Illinois conceived and foaled and Illinois foaled horses
available. If, however, sufficient competition cannot be had
among horses of that class on any day, the races may, with
consent of the Board, be eliminated for that day and substitute
races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Thoroughbred Breeders
Fund.
Beginning on the effective date of this amendatory Act of
the 101st General Assembly, the Illinois Thoroughbred Breeders
Fund shall become a non-appropriated trust fund held separate
from State moneys. Expenditures from this Fund shall no longer
be subject to appropriation.
Except as provided in subsection (g) of Section 27 of this
Act, 8.5% of all the monies received by the State as privilege
taxes on Thoroughbred racing meetings shall be paid into the
Illinois Thoroughbred Breeders Fund.
Notwithstanding any provision of law to the contrary,

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amounts deposited into the Illinois Thoroughbred Breeders Fund
from revenues generated by gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act after the
effective date of this amendatory Act of the 101st General
Assembly shall be in addition to tax and fee amounts paid under
this Section for calendar year 2019 and thereafter.
(e) The Illinois Thoroughbred Breeders Fund shall be
administered by the Department of Agriculture with the advice
and assistance of the Advisory Board created in subsection (f)
of this Section.
(f) The Illinois Thoroughbred Breeders Fund Advisory Board
shall consist of the Director of the Department of Agriculture,
who shall serve as Chairman; a member of the Illinois Racing
Board, designated by it; 2 representatives of the organization
licensees conducting thoroughbred racing meetings, recommended
by them; 2 representatives of the Illinois Thoroughbred
Breeders and Owners Foundation, recommended by it; one
representative and 2 representatives of the Horsemen's
Benevolent Protective Association; and one representative from
the Illinois Thoroughbred Horsemen's Association or any
successor organization established in Illinois comprised of
the largest number of owners and trainers, recommended by it,
with one representative of the Horsemen's Benevolent and
Protective Association to come from its Illinois Division, and
one from its Chicago Division. Advisory Board members shall
serve for 2 years commencing January 1 of each odd numbered

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

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representing the horsemen. No monies from the Illinois
Thoroughbred Breeders Fund shall be used to provide purse
supplements for claiming races in which the minimum
claiming price is less than $7,500.
(2) To provide stakes and awards to be paid to the
owners of the winning horses in certain races limited to
Illinois conceived and foaled and Illinois foaled horses
designated as stakes races.
(2.5) To provide an award to the owner or owners of an
Illinois conceived and foaled or Illinois foaled horse that
wins a maiden special weight, an allowance, overnight
handicap race, or claiming race with claiming price of
$10,000 or more providing the race is not restricted to
Illinois conceived and foaled or Illinois foaled horses.
Awards shall also be provided to the owner or owners of
Illinois conceived and foaled and Illinois foaled horses
that place second or third in those races. To the extent
that additional moneys are required to pay the minimum
additional awards of 40% of the purse the horse earns for
placing first, second or third in those races for Illinois
foaled horses and of 60% of the purse the horse earns for
placing first, second or third in those races for Illinois
conceived and foaled horses, those moneys shall be provided
from the purse account at the track where earned.
(3) To provide stallion awards to the owner or owners
of any stallion that is duly registered with the Illinois

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Thoroughbred Breeders Fund Program prior to the effective
date of this amendatory Act of 1995 whose duly registered
Illinois conceived and foaled offspring wins a race
conducted at an Illinois thoroughbred racing meeting other
than a claiming race, provided that the stallion stood
service within Illinois at the time the offspring was
conceived and that the stallion did not stand for service
outside of Illinois at any time during the year in which
the offspring was conceived. Such award shall not be paid
to the owner or owners of an Illinois stallion that served
outside this State at any time during the calendar year in
which such race was conducted.
(4) To provide $75,000 annually for purses to be
distributed to county fairs that provide for the running of
races during each county fair exclusively for the
thoroughbreds conceived and foaled in Illinois. The
conditions of the races shall be developed by the county
fair association and reviewed by the Department with the
advice and assistance of the Illinois Thoroughbred
Breeders Fund Advisory Board. There shall be no wagering of
any kind on the running of Illinois conceived and foaled
races at county fairs.
(4.1) To provide purse money for an Illinois stallion
stakes program.
(5) No less than 90% 80% of all monies expended
appropriated from the Illinois Thoroughbred Breeders Fund

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shall be expended for the purposes in (1), (2), (2.5), (3),
(4), (4.1), and (5) as shown above.
(6) To provide for educational programs regarding the
thoroughbred breeding industry.
(7) To provide for research programs concerning the
health, development and care of the thoroughbred horse.
(8) To provide for a scholarship and training program
for students of equine veterinary medicine.
(9) To provide for dissemination of public information
designed to promote the breeding of thoroughbred horses in
Illinois.
(10) To provide for all expenses incurred in the
administration of the Illinois Thoroughbred Breeders Fund.
(h) The Illinois Thoroughbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act. Whenever the Governor finds that the amount in the
Illinois Thoroughbred Breeders Fund is more than the total of
the outstanding appropriations from such fund, the Governor
shall notify the State Comptroller and the State Treasurer of
such fact. The Comptroller and the State Treasurer, upon
receipt of such notification, shall transfer such excess amount
from the Illinois Thoroughbred Breeders Fund to the General
Revenue Fund.
(i) A sum equal to 13% of the first prize money of every
purse won by an Illinois foaled or Illinois conceived and

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

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distribution in accordance with this Act, and servicing and
promoting the Illinois Thoroughbred racing industry. A sum
equal to 12 1/2% of the first prize money of every purse won by
an Illinois foaled or an Illinois conceived and foaled horse in
races not limited to Illinois foaled horses or Illinois
conceived and foaled horses, or both, shall be paid by the
organization licensee conducting the horse race meeting. Such
sum shall be paid from the organization licensee's share of the
money wagered as follows: 11 1/2% to the breeder of the winning
horse and 1% to the organization representing thoroughbred
breeders and owners whose representative serves on the Illinois
Thoroughbred Breeders Fund Advisory Board for verifying the
amounts of breeders' awards earned, assuring their
distribution in accordance with this Act, and servicing and
promoting the Illinois thoroughbred horse racing industry. The
organization representing thoroughbred breeders and owners
shall cause all expenditures of monies received under this
subsection (i) to be audited at least annually by a registered
public accountant. The organization shall file copies of each
annual audit with the Racing Board, the Clerk of the House of
Representatives and the Secretary of the Senate, and shall make
copies of each annual audit available to the public upon
request and upon payment of the reasonable cost of photocopying
the requested number of copies. Such payments shall not reduce
any award to the owner of the horse or reduce the taxes payable
under this Act. Upon completion of its racing meet, each

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

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eligible to receive payments under paragraph (13) of subsection
(g) of Section 26 of this Act begins to receive funds from
gaming pursuant to an organization gaming license issued under
the Illinois Gambling Act, a sum of 21 1/2% of every purse in a
race limited to Illinois foaled horses or Illinois conceived
and foaled horses, or both, shall be paid by the organization
licensee conducting the horse race meeting. Such sum shall be
paid 30% from the organization licensee's account and 70% from
the purse account as follows: 20% to the breeders of the horses
in each such race who are official first, second, third and
fourth finishers and 1 1/2% to the organization representing
thoroughbred breeders and owners whose representatives serve
on the Illinois Thoroughbred Breeders Fund Advisory Board for
verifying the amounts of breeders' awards earned, ensuring
their proper distribution in accordance with this Act, and
servicing and promoting the Illinois thoroughbred horse racing
industry. The organization representing thoroughbred breeders
and owners shall cause all expenditures of moneys received
under this subsection (j) to be audited at least annually by a
registered public accountant. The organization shall file
copies of each annual audit with the Racing Board, the Clerk of
the House of Representatives and the Secretary of the Senate,
and shall make copies of each annual audit available to the
public upon request and upon payment of the reasonable cost of
photocopying the requested number of copies. The copies of the
audit to the General Assembly shall be filed with the Clerk of

HB5561 - 534 - LRB101 17547 JWD 66965 b
the House of Representatives and the Secretary of the Senate in
electronic form only, in the manner that the Clerk and the
Secretary shall direct. A sum equal to 12 1/2% of the first
prize money won in each race limited to Illinois foaled horses
or Illinois conceived and foaled horses, or both, shall be paid
in the following manner by the organization licensee conducting
the horse race meeting, from the organization licensee's share
of the money wagered: 11 1/2% to the breeders of the horses in
each such race which are the official first, second, third and
fourth finishers and 1% to the organization representing
thoroughbred breeders and owners whose representative serves
on the Illinois Thoroughbred Breeders Fund Advisory Board for
verifying the amounts of breeders' awards earned, assuring
their proper distribution in accordance with this Act, and
servicing and promoting the Illinois thoroughbred horse racing
industry. The organization representing thoroughbred breeders
and owners shall cause all expenditures of monies received
under this subsection (j) to be audited at least annually by a
registered public accountant. The organization shall file
copies of each annual audit with the Racing Board, the Clerk of
the House of Representatives and the Secretary of the Senate,
and shall make copies of each annual audit available to the
public upon request and upon payment of the reasonable cost of
photocopying the requested number of copies.
The amounts 11 1/2% paid to the breeders in accordance with
this subsection shall be distributed as follows:

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(1) 60% of such sum shall be paid to the breeder of the
horse which finishes in the official first position;
(2) 20% of such sum shall be paid to the breeder of the
horse which finishes in the official second position;
(3) 15% of such sum shall be paid to the breeder of the
horse which finishes in the official third position; and
(4) 5% of such sum shall be paid to the breeder of the
horse which finishes in the official fourth position.
Such payments shall not reduce any award to the owners of a
horse or reduce the taxes payable under this Act. Upon
completion of its racing meet, each organization licensee shall
deliver to the organization representing thoroughbred breeders
and owners whose representative serves on the Illinois
Thoroughbred Breeders Fund Advisory Board a listing of all the
Illinois foaled and the Illinois conceived and foaled horses
which won breeders' awards and the amount of such breeders'
awards in accordance with the provisions of this Act. Such
payments shall be delivered by the organization licensee within
30 days of the end of each race meeting.
(k) The term "breeder", as used herein, means the owner of
the mare at the time the foal is dropped. An "Illinois foaled
horse" is a foal dropped by a mare which enters this State on
or before December 1, in the year in which the horse is bred,
provided the mare remains continuously in this State until its
foal is born. An "Illinois foaled horse" also means a foal born
of a mare in the same year as the mare enters this State on or

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before March 1, and remains in this State at least 30 days
after foaling, is bred back during the season of the foaling to
an Illinois Registered Stallion (unless a veterinarian
certifies that the mare should not be bred for health reasons),
and is not bred to a stallion standing in any other state
during the season of foaling. An "Illinois foaled horse" also
means a foal born in Illinois of a mare purchased at public
auction subsequent to the mare entering this State on or before
March 1 prior to February 1 of the foaling year providing the
mare is owned solely by one or more Illinois residents or an
Illinois entity that is entirely owned by one or more Illinois
residents.
(l) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Thoroughbred Breeders
Fund Advisory Board:
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of Illinois
at the time of a foal's conception. Such stallion must not
stand for service at any place outside the State of
Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect an application fee of up to $500 fees for the
registration of Illinois-eligible stallions. All fees
collected are to be held in trust accounts for the purposes
set forth in this Act and in accordance with Section 205-15
of the Department of Agriculture Law paid into the Illinois

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Thoroughbred Breeders Fund.
(2) Provide for the registration of Illinois conceived
and foaled horses and Illinois foaled horses. No such horse
shall compete in the races limited to Illinois conceived
and foaled horses or Illinois foaled horses or both unless
registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The
Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be held in trust accounts
for the purposes set forth in this Act and in accordance
with Section 205-15 of the Department of Agriculture Law
paid into the Illinois Thoroughbred Breeders Fund. No
person shall knowingly prepare or cause preparation of an
application for registration of such foals containing
false information.
(m) The Department of Agriculture, with the advice and
assistance of the Illinois Thoroughbred Breeders Fund Advisory
Board, shall provide that certain races limited to Illinois
conceived and foaled and Illinois foaled horses be stakes races
and determine the total amount of stakes and awards to be paid
to the owners of the winning horses in such races.
In determining the stakes races and the amount of awards
for such races, the Department of Agriculture shall consider
factors, including but not limited to, the amount of money

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appropriated for the Illinois Thoroughbred Breeders Fund
program, organization licensees' contributions, availability
of stakes caliber horses as demonstrated by past performances,
whether the race can be coordinated into the proposed racing
dates within organization licensees' racing dates, opportunity
for colts and fillies and various age groups to race, public
wagering on such races, and the previous racing schedule.
(n) The Board and the organization organizational licensee
shall notify the Department of the conditions and minimum
purses for races limited to Illinois conceived and foaled and
Illinois foaled horses conducted for each organization
organizational licensee conducting a thoroughbred racing
meeting. The Department of Agriculture with the advice and
assistance of the Illinois Thoroughbred Breeders Fund Advisory
Board may allocate monies for purse supplements for such races.
In determining whether to allocate money and the amount, the
Department of Agriculture shall consider factors, including
but not limited to, the amount of money appropriated for the
Illinois Thoroughbred Breeders Fund program, the number of
races that may occur, and the organization organizational
licensee's purse structure.
(o) (Blank).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/30.5)
Sec. 30.5. Illinois Racing Quarter Horse Breeders Fund.

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(a) The General Assembly declares that it is the policy of
this State to encourage the breeding of racing quarter horses
in this State and the ownership of such horses by residents of
this State in order to provide for sufficient numbers of high
quality racing quarter horses in this State and to establish
and preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Act.
(b) There is hereby created a special fund in the State
Treasury to be known as the Illinois Racing Quarter Horse
Breeders Fund. Except as provided in subsection (g) of Section
27 of this Act, 8.5% of all the moneys received by the State as
pari-mutuel taxes on quarter horse racing shall be paid into
the Illinois Racing Quarter Horse Breeders Fund. The Illinois
Racing Quarter Horse Breeders Fund shall not be subject to
administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act.
(c) The Illinois Racing Quarter Horse Breeders Fund shall
be administered by the Department of Agriculture with the
advice and assistance of the Advisory Board created in
subsection (d) of this Section.
(d) The Illinois Racing Quarter Horse Breeders Fund
Advisory Board shall consist of the Director of the Department
of Agriculture, who shall serve as Chairman; a member of the

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Illinois Racing Board, designated by it; one representative of
the organization licensees conducting pari-mutuel quarter
horse racing meetings, recommended by them; 2 representatives
of the Illinois Running Quarter Horse Association, recommended
by it; and the Superintendent of Fairs and Promotions from the
Department of Agriculture. Advisory Board members shall serve
for 2 years commencing January 1 of each odd numbered year. If
representatives have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture may make an appointment for the organization
failing to so recommend a member of the Advisory Board.
Advisory Board members shall receive no compensation for their
services as members but may be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(e) Moneys in No moneys shall be expended from the Illinois
Racing Quarter Horse Breeders Fund except as appropriated by
the General Assembly. Moneys appropriated from the Illinois
Racing Quarter Horse Breeders Fund shall be expended by the
Department of Agriculture, with the advice and assistance of
the Illinois Racing Quarter Horse Breeders Fund Advisory Board,
for the following purposes only:
(1) To provide stakes and awards to be paid to the
owners of the winning horses in certain races. This
provision is limited to Illinois conceived and foaled
horses.

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(2) To provide an award to the owner or owners of an
Illinois conceived and foaled horse that wins a race when
pari-mutuel wagering is conducted; providing the race is
not restricted to Illinois conceived and foaled horses.
(3) To provide purse money for an Illinois stallion
stakes program.
(4) To provide for purses to be distributed for the
running of races during the Illinois State Fair and the
DuQuoin State Fair exclusively for quarter horses
conceived and foaled in Illinois.
(5) To provide for purses to be distributed for the
running of races at Illinois county fairs exclusively for
quarter horses conceived and foaled in Illinois.
(6) To provide for purses to be distributed for running
races exclusively for quarter horses conceived and foaled
in Illinois at locations in Illinois determined by the
Department of Agriculture with advice and consent of the
Illinois Racing Quarter Horse Breeders Fund Advisory
Board.
(7) No less than 90% of all moneys appropriated from
the Illinois Racing Quarter Horse Breeders Fund shall be
expended for the purposes in items (1), (2), (3), (4), and
(5) of this subsection (e).
(8) To provide for research programs concerning the
health, development, and care of racing quarter horses.
(9) To provide for dissemination of public information

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designed to promote the breeding of racing quarter horses
in Illinois.
(10) To provide for expenses incurred in the
administration of the Illinois Racing Quarter Horse
Breeders Fund.
(f) The Department of Agriculture shall, by rule, with the
advice and assistance of the Illinois Racing Quarter Horse
Breeders Fund Advisory Board:
(1) Qualify stallions for Illinois breeding; such
stallions to stand for service within the State of
Illinois, at the time of a foal's conception. Such stallion
must not stand for service at any place outside the State
of Illinois during the calendar year in which the foal is
conceived. The Department of Agriculture may assess and
collect application fees for the registration of
Illinois-eligible stallions. All fees collected are to be
paid into the Illinois Racing Quarter Horse Breeders Fund.
(2) Provide for the registration of Illinois conceived
and foaled horses. No such horse shall compete in the races
limited to Illinois conceived and foaled horses unless it
is registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as are
necessary to determine the eligibility of such horses. The
Department of Agriculture may assess and collect
application fees for the registration of Illinois-eligible
foals. All fees collected are to be paid into the Illinois

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Racing Quarter Horse Breeders Fund. No person shall
knowingly prepare or cause preparation of an application
for registration of such foals that contains false
information.
(g) The Department of Agriculture, with the advice and
assistance of the Illinois Racing Quarter Horse Breeders Fund
Advisory Board, shall provide that certain races limited to
Illinois conceived and foaled be stakes races and determine the
total amount of stakes and awards to be paid to the owners of
the winning horses in such races.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/31) (from Ch. 8, par. 37-31)
Sec. 31. (a) The General Assembly declares that it is the
policy of this State to encourage the breeding of standardbred
horses in this State and the ownership of such horses by
residents of this State in order to provide for: sufficient
numbers of high quality standardbred horses to participate in
harness racing meetings in this State, and to establish and
preserve the agricultural and commercial benefits of such
breeding and racing industries to the State of Illinois. It is
the intent of the General Assembly to further this policy by
the provisions of this Section of this Act.
(b) Each organization licensee conducting a harness racing
meeting pursuant to this Act shall provide for at least two
races each race program limited to Illinois conceived and

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foaled horses. A minimum of 6 races shall be conducted each
week limited to Illinois conceived and foaled horses. No horses
shall be permitted to start in such races unless duly
registered under the rules of the Department of Agriculture.
(b-5) Organization licensees, not including the Illinois
State Fair or the DuQuoin State Fair, shall provide stake races
and early closer races for Illinois conceived and foaled horses
so that purses distributed for such races shall be no less than
17% of total purses distributed for harness racing in that
calendar year in addition to any stakes payments and starting
fees contributed by horse owners.
(b-10) Each organization licensee conducting a harness
racing meeting pursuant to this Act shall provide an owner
award to be paid from the purse account equal to 12% of the
amount earned by Illinois conceived and foaled horses finishing
in the first 3 positions in races that are not restricted to
Illinois conceived and foaled horses. The owner awards shall
not be paid on races below the $10,000 claiming class.
(c) Conditions of races under subsection (b) shall be
commensurate with past performance, quality and class of
Illinois conceived and foaled horses available. If, however,
sufficient competition cannot be had among horses of that class
on any day, the races may, with consent of the Board, be
eliminated for that day and substitute races provided.
(d) There is hereby created a special fund of the State
Treasury to be known as the Illinois Standardbred Breeders

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Fund. Beginning on the effective date of this amendatory Act of
the 101st General Assembly, the Illinois Standardbred Breeders
Fund shall become a non-appropriated trust fund held separate
and apart from State moneys. Expenditures from this Fund shall
no longer be subject to appropriation.
During the calendar year 1981, and each year thereafter,
except as provided in subsection (g) of Section 27 of this Act,
eight and one-half per cent of all the monies received by the
State as privilege taxes on harness racing meetings shall be
paid into the Illinois Standardbred Breeders Fund.
(e) Notwithstanding any provision of law to the contrary,
amounts deposited into the Illinois Standardbred Breeders Fund
from revenues generated by gaming pursuant to an organization
gaming license issued under the Illinois Gambling Act after the
effective date of this amendatory Act of the 101st General
Assembly shall be in addition to tax and fee amounts paid under
this Section for calendar year 2019 and thereafter. The
Illinois Standardbred Breeders Fund shall be administered by
the Department of Agriculture with the assistance and advice of
the Advisory Board created in subsection (f) of this Section.
(f) The Illinois Standardbred Breeders Fund Advisory Board
is hereby created. The Advisory Board shall consist of the
Director of the Department of Agriculture, who shall serve as
Chairman; the Superintendent of the Illinois State Fair; a
member of the Illinois Racing Board, designated by it; a
representative of the largest association of Illinois

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standardbred owners and breeders, recommended by it; a
representative of a statewide association representing
agricultural fairs in Illinois, recommended by it, such
representative to be from a fair at which Illinois conceived
and foaled racing is conducted; a representative of the
organization licensees conducting harness racing meetings,
recommended by them; a representative of the Breeder's
Committee of the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, recommended by it; and a representative of the
association representing the largest number of standardbred
owners, breeders, trainers, caretakers, and drivers,
recommended by it. Advisory Board members shall serve for 2
years commencing January 1 of each odd numbered year. If
representatives of the largest association of Illinois
standardbred owners and breeders, a statewide association of
agricultural fairs in Illinois, the association representing
the largest number of standardbred owners, breeders, trainers,
caretakers, and drivers, a member of the Breeder's Committee of
the association representing the largest number of
standardbred owners, breeders, trainers, caretakers, and
drivers, and the organization licensees conducting harness
racing meetings have not been recommended by January 1 of each
odd numbered year, the Director of the Department of
Agriculture shall make an appointment for the organization
failing to so recommend a member of the Advisory Board.

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Advisory Board members shall receive no compensation for their
services as members but shall be reimbursed for all actual and
necessary expenses and disbursements incurred in the execution
of their official duties.
(g) No monies shall be expended from the Illinois
Standardbred Breeders Fund except as appropriated by the
General Assembly. Monies expended appropriated from the
Illinois Standardbred Breeders Fund shall be expended by the
Department of Agriculture, with the assistance and advice of
the Illinois Standardbred Breeders Fund Advisory Board for the
following purposes only:
1. To provide purses for races limited to Illinois
conceived and foaled horses at the State Fair and the
DuQuoin State Fair.
2. To provide purses for races limited to Illinois
conceived and foaled horses at county fairs.
3. To provide purse supplements for races limited to
Illinois conceived and foaled horses conducted by
associations conducting harness racing meetings.
4. No less than 75% of all monies in the Illinois
Standardbred Breeders Fund shall be expended for purses in
1, 2, and 3 as shown above.
5. In the discretion of the Department of Agriculture
to provide awards to harness breeders of Illinois conceived
and foaled horses which win races conducted by organization
licensees conducting harness racing meetings. A breeder is

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the owner of a mare at the time of conception. No more than
10% of all monies appropriated from the Illinois
Standardbred Breeders Fund shall be expended for such
harness breeders awards. No more than 25% of the amount
expended for harness breeders awards shall be expended for
expenses incurred in the administration of such harness
breeders awards.
6. To pay for the improvement of racing facilities
located at the State Fair and County fairs.
7. To pay the expenses incurred in the administration
of the Illinois Standardbred Breeders Fund.
8. To promote the sport of harness racing, including
grants up to a maximum of $7,500 per fair per year for
conducting pari-mutuel wagering during the advertised
dates of a county fair.
9. To pay up to $50,000 annually for the Department of
Agriculture to conduct drug testing at county fairs racing
standardbred horses.
(h) The Illinois Standardbred Breeders Fund is not subject
to administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act. Whenever the Governor finds that the amount in the
Illinois Standardbred Breeders Fund is more than the total of
the outstanding appropriations from such fund, the Governor
shall notify the State Comptroller and the State Treasurer of
such fact. The Comptroller and the State Treasurer, upon

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receipt of such notification, shall transfer such excess amount
from the Illinois Standardbred Breeders Fund to the General
Revenue Fund.
(i) A sum equal to 13% 12 1/2% of the first prize money of
the gross every purse won by an Illinois conceived and foaled
horse shall be paid 50% by the organization licensee conducting
the horse race meeting to the breeder of such winning horse
from the organization licensee's account and 50% from the purse
account of the licensee share of the money wagered. Such
payment shall not reduce any award to the owner of the horse or
reduce the taxes payable under this Act. Such payment shall be
delivered by the organization licensee at the end of each
quarter race meeting.
(j) The Department of Agriculture shall, by rule, with the
assistance and advice of the Illinois Standardbred Breeders
Fund Advisory Board:
1. Qualify stallions for Illinois Standardbred
Breeders Fund breeding; such stallion shall be owned by a
resident of the State of Illinois or by an Illinois
corporation all of whose shareholders, directors, officers
and incorporators are residents of the State of Illinois.
Such stallion shall stand for service at and within the
State of Illinois at the time of a foal's conception, and
such stallion must not stand for service at any place, nor
may semen from such stallion be transported, outside the
State of Illinois during that calendar year in which the

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foal is conceived and that the owner of the stallion was
for the 12 months prior, a resident of Illinois. However,
from January 1, 2018 until January 1, 2022, semen from an
Illinois stallion may be transported outside the State of
Illinois. The articles of agreement of any partnership,
joint venture, limited partnership, syndicate, association
or corporation and any bylaws and stock certificates must
contain a restriction that provides that the ownership or
transfer of interest by any one of the persons a party to
the agreement can only be made to a person who qualifies as
an Illinois resident.
2. Provide for the registration of Illinois conceived
and foaled horses and no such horse shall compete in the
races limited to Illinois conceived and foaled horses
unless registered with the Department of Agriculture. The
Department of Agriculture may prescribe such forms as may
be necessary to determine the eligibility of such horses.
No person shall knowingly prepare or cause preparation of
an application for registration of such foals containing
false information. A mare (dam) must be in the State at
least 30 days prior to foaling or remain in the State at
least 30 days at the time of foaling. However, the
requirement that a mare (dam) must be in the State at least
30 days before foaling or remain in the State at least 30
days at the time of foaling shall not be in effect from
January 1, 2018 until January 1, 2022. Beginning with the

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1996 breeding season and for foals of 1997 and thereafter,
a foal conceived by transported semen may be eligible for
Illinois conceived and foaled registration provided all
breeding and foaling requirements are met. The stallion
must be qualified for Illinois Standardbred Breeders Fund
breeding at the time of conception and the mare must be
inseminated within the State of Illinois. The foal must be
dropped in Illinois and properly registered with the
Department of Agriculture in accordance with this Act.
However, from January 1, 2018 until January 1, 2022, the
requirement for a mare to be inseminated within the State
of Illinois and the requirement for a foal to be dropped in
Illinois are inapplicable.
3. Provide that at least a 5-day racing program shall
be conducted at the State Fair each year, unless an
alternate racing program is requested by the Illinois
Standardbred Breeders Fund Advisory Board, which program
shall include at least the following races limited to
Illinois conceived and foaled horses: (a) a 2-year-old two
year old Trot and Pace, and Filly Division of each; (b) a
3-year-old three year old Trot and Pace, and Filly Division
of each; (c) an aged Trot and Pace, and Mare Division of
each.
4. Provide for the payment of nominating, sustaining
and starting fees for races promoting the sport of harness
racing and for the races to be conducted at the State Fair

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as provided in subsection (j) 3 of this Section provided
that the nominating, sustaining and starting payment
required from an entrant shall not exceed 2% of the purse
of such race. All nominating, sustaining and starting
payments shall be held for the benefit of entrants and
shall be paid out as part of the respective purses for such
races. Nominating, sustaining and starting fees shall be
held in trust accounts for the purposes as set forth in
this Act and in accordance with Section 205-15 of the
Department of Agriculture Law.
5. Provide for the registration with the Department of
Agriculture of Colt Associations or county fairs desiring
to sponsor races at county fairs.
6. Provide for the promotion of producing standardbred
racehorses by providing a bonus award program for owners of
2-year-old horses that win multiple major stakes races that
are limited to Illinois conceived and foaled horses.
(k) The Department of Agriculture, with the advice and
assistance of the Illinois Standardbred Breeders Fund Advisory
Board, may allocate monies for purse supplements for such
races. In determining whether to allocate money and the amount,
the Department of Agriculture shall consider factors,
including, but not limited to, the amount of money appropriated
for the Illinois Standardbred Breeders Fund program, the number
of races that may occur, and an organization licensee's purse
structure. The organization licensee shall notify the

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Department of Agriculture of the conditions and minimum purses
for races limited to Illinois conceived and foaled horses to be
conducted by each organization licensee conducting a harness
racing meeting for which purse supplements have been
negotiated.
(l) All races held at county fairs and the State Fair which
receive funds from the Illinois Standardbred Breeders Fund
shall be conducted in accordance with the rules of the United
States Trotting Association unless otherwise modified by the
Department of Agriculture.
(m) At all standardbred race meetings held or conducted
under authority of a license granted by the Board, and at all
standardbred races held at county fairs which are approved by
the Department of Agriculture or at the Illinois or DuQuoin
State Fairs, no one shall jog, train, warm up or drive a
standardbred horse unless he or she is wearing a protective
safety helmet, with the chin strap fastened and in place, which
meets the standards and requirements as set forth in the 1984
Standard for Protective Headgear for Use in Harness Racing and
Other Equestrian Sports published by the Snell Memorial
Foundation, or any standards and requirements for headgear the
Illinois Racing Board may approve. Any other standards and
requirements so approved by the Board shall equal or exceed
those published by the Snell Memorial Foundation. Any
equestrian helmet bearing the Snell label shall be deemed to
have met those standards and requirements.

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(Source: P.A. 100-777, eff. 8-10-18; 101-31, eff. 6-28-19;
101-157, eff. 7-26-19; revised 9-27-19.)
(230 ILCS 5/31.1) (from Ch. 8, par. 37-31.1)
Sec. 31.1. (a) Unless subsection (a-5) applies,
organization Organization licensees collectively shall
contribute annually to charity the sum of $750,000 to
non-profit organizations that provide medical and family,
counseling, and similar services to persons who reside or work
on the backstretch of Illinois racetracks. Unless subsection
(a-5) applies, these These contributions shall be collected as
follows: (i) no later than July 1st of each year the Board
shall assess each organization licensee, except those tracks
located in Madison County, which are not within 100 miles of
each other which tracks shall pay $30,000 annually apiece into
the Board charity fund, that amount which equals $690,000
multiplied by the amount of pari-mutuel wagering handled by the
organization licensee in the year preceding assessment and
divided by the total pari-mutuel wagering handled by all
Illinois organization licensees, except those tracks located
in Madison and Rock Island counties which are not within 100
miles of each other, in the year preceding assessment; (ii)
notice of the assessed contribution shall be mailed to each
organization licensee; (iii) within thirty days of its receipt
of such notice, each organization licensee shall remit the
assessed contribution to the Board. Unless subsection (a-5)

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applies, if an organization licensee commences operation of
gaming at its facility pursuant to an organization gaming
license under the Illinois Gambling Act, then the organization
licensee shall contribute an additional $83,000 per year
beginning in the year subsequent to the first year in which the
organization licensee begins receiving funds from gaming
pursuant to an organization gaming license. If an organization
licensee wilfully fails to so remit the contribution, the Board
may revoke its license to conduct horse racing.
(a-5) If (1) an organization licensee that did not operate
live racing in 2017 is awarded racing dates in 2018 or in any
subsequent year and (2) all organization licensees are
operating gaming pursuant to an organization gaming license
under the Illinois Gambling Act, then subsection (a) does not
apply and organization licensees collectively shall contribute
annually to charity the sum of $1,000,000 to non-profit
organizations that provide medical and family, counseling, and
similar services to persons who reside or work on the
backstretch of Illinois racetracks. These contributions shall
be collected as follows: (i) no later than July 1st of each
year the Board shall assess each organization licensee an
amount based on the proportionate amount of live racing days in
the calendar year for which the Board has awarded to the
organization licensee out of the total aggregate number of live
racing days awarded; (ii) notice of the assessed contribution
shall be mailed to each organization licensee; (iii) within 30

HB5561 - 556 - LRB101 17547 JWD 66965 b
days after its receipt of such notice, each organization
licensee shall remit the assessed contribution to the Board. If
an organization licensee willfully fails to so remit the
contribution, the Board may revoke its license to conduct horse
racing.
(b) No later than October 1st of each year, any qualified
charitable organization seeking an allotment of contributed
funds shall submit to the Board an application for those funds,
using the Board's approved form. No later than December 31st of
each year, the Board shall distribute all such amounts
collected that year to such charitable organization
applicants.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/32.1)
Sec. 32.1. Pari-mutuel tax credit; statewide racetrack
real estate equalization.
(a) In order to encourage new investment in Illinois
racetrack facilities and mitigate differing real estate tax
burdens among all racetracks, the licensees affiliated or
associated with each racetrack that has been awarded live
racing dates in the current year shall receive an immediate
pari-mutuel tax credit in an amount equal to the greater of (i)
50% of the amount of the real estate taxes paid in the prior
year attributable to that racetrack, or (ii) the amount by
which the real estate taxes paid in the prior year attributable

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to that racetrack exceeds 60% of the average real estate taxes
paid in the prior year for all racetracks awarded live horse
racing meets in the current year.
Each year, regardless of whether the organization licensee
conducted live racing in the year of certification, the Board
shall certify in writing, prior to December 31, the real estate
taxes paid in that year for each racetrack and the amount of
the pari-mutuel tax credit that each organization licensee,
inter-track wagering licensee, and inter-track wagering
location licensee that derives its license from such racetrack
is entitled in the succeeding calendar year. The real estate
taxes considered under this Section for any racetrack shall be
those taxes on the real estate parcels and related facilities
used to conduct a horse race meeting and inter-track wagering
at such racetrack under this Act. In no event shall the amount
of the tax credit under this Section exceed the amount of
pari-mutuel taxes otherwise calculated under this Act. The
amount of the tax credit under this Section shall be retained
by each licensee and shall not be subject to any reallocation
or further distribution under this Act. The Board may
promulgate emergency rules to implement this Section.
(b) If the organization licensee is operating gaming
pursuant to an organization gaming license issued under the
Illinois Gambling Act, except the organization licensee
described in Section 19.5, then, for the 5-year period
beginning on the January 1 of the calendar year immediately

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following the calendar year during which an organization
licensee begins conducting gaming operations pursuant to an
organization gaming license issued under the Illinois Gambling
Act, the organization licensee shall make capital
expenditures, in an amount equal to no less than 50% of the tax
credit under this Section, to the improvement and maintenance
of the backstretch, including, but not limited to, backstretch
barns, dormitories, and services for backstretch workers.
Those capital expenditures must be in addition to, and not in
lieu of, the capital expenditures made for backstretch
improvements in calendar year 2015, as reported to the Board in
the organization licensee's application for racing dates and as
certified by the Board. The organization licensee is required
to annually submit the list and amounts of these capital
expenditures to the Board by January 30th of the year following
the expenditure.
(c) If the organization licensee is conducting gaming in
accordance with paragraph (b), then, after the 5-year period
beginning on January 1 of the calendar year immediately
following the calendar year during which an organization
licensee begins conducting gaming operations pursuant to an
organization gaming license issued under the Illinois Gambling
Act, the organization license is ineligible to receive a tax
credit under this Section.
(Source: P.A. 101-31, eff. 6-28-19.)

HB5561 - 559 - LRB101 17547 JWD 66965 b
(230 ILCS 5/36) (from Ch. 8, par. 37-36)
Sec. 36. (a) Whoever administers or conspires to administer
to any horse a hypnotic, narcotic, stimulant, depressant or any
chemical substance which may affect the speed of a horse at any
time in any race where the purse or any part of the purse is
made of money authorized by any Section of this Act, except
those chemical substances permitted by ruling of the Board,
internally, externally or by hypodermic method in a race or
prior thereto, or whoever knowingly enters a horse in any race
within a period of 24 hours after any hypnotic, narcotic,
stimulant, depressant or any other chemical substance which may
affect the speed of a horse at any time, except those chemical
substances permitted by ruling of the Board, has been
administered to such horse either internally or externally or
by hypodermic method for the purpose of increasing or retarding
the speed of such horse shall be guilty of a Class 4 felony.
The Board shall suspend or revoke such violator's license.
(b) The term "hypnotic" as used in this Section includes
all barbituric acid preparations and derivatives.
(c) The term "narcotic" as used in this Section includes
opium and all its alkaloids, salts, preparations and
derivatives, cocaine and all its salts, preparations and
derivatives and substitutes.
(d) The provisions of this Section and the treatment
authorized in this Section apply to horses entered in and
competing in race meetings as defined in Section 3.07 of this

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Act and to horses entered in and competing at any county fair.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/40) (from Ch. 8, par. 37-40)
Sec. 40. (a) The imposition of any fine or penalty provided
in this Act shall not preclude the Board in its rules and
regulations from imposing a fine or penalty for any other
action which, in the Board's discretion, is a detriment or
impediment to horse racing.
(b) The Director of Agriculture or his or her authorized
representative shall impose the following monetary penalties
and hold administrative hearings as required for failure to
submit the following applications, lists, or reports within the
time period, date or manner required by statute or rule or for
removing a foal from Illinois prior to inspection:
(1) late filing of a renewal application for offering
or standing stallion for service:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 45
days late, $150; or
(C) if an application is submitted more than 45
days late, if filing of the application is allowed
under an administrative hearing, $250;
(2) late filing of list or report of mares bred:
(A) if a list or report is submitted no more than

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30 days late, $50;
(B) if a list or report is submitted no more than
60 days late, $150; or
(C) if a list or report is submitted more than 60
days late, if filing of the list or report is allowed
under an administrative hearing, $250;
(3) filing an Illinois foaled thoroughbred mare status
report after the statutory deadline as provided in
subsection (k) of Section 30 of this Act December 31:
(A) if a report is submitted no more than 30 days
late, $50;
(B) if a report is submitted no more than 90 days
late, $150;
(C) if a report is submitted no more than 150 days
late, $250; or
(D) if a report is submitted more than 150 days
late, if filing of the report is allowed under an
administrative hearing, $500;
(4) late filing of application for foal eligibility
certificate:
(A) if an application is submitted no more than 30
days late, $50;
(B) if an application is submitted no more than 90
days late, $150;
(C) if an application is submitted no more than 150
days late, $250; or

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(D) if an application is submitted more than 150
days late, if filing of the application is allowed
under an administrative hearing, $500;
(5) failure to report the intent to remove a foal from
Illinois prior to inspection, identification and
certification by a Department of Agriculture investigator,
$50; and
(6) if a list or report of mares bred is incomplete,
$50 per mare not included on the list or report.
Any person upon whom monetary penalties are imposed under
this Section 3 times within a 5-year period shall have any
further monetary penalties imposed at double the amounts set
forth above. All monies assessed and collected for violations
relating to thoroughbreds shall be paid into the Illinois
Thoroughbred Breeders Fund. All monies assessed and collected
for violations relating to standardbreds shall be paid into the
Illinois Standardbred Breeders Fund.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 5/54.75)
Sec. 54.75. Horse Racing Equity Trust Fund.
(a) There is created a Fund to be known as the Horse Racing
Equity Trust Fund, which is a non-appropriated trust fund held
separate and apart from State moneys. The Fund shall consist of
moneys paid into it by owners licensees under the Illinois
Riverboat Gambling Act for the purposes described in this

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Section. The Fund shall be administered by the Board. Moneys in
the Fund shall be distributed as directed and certified by the
Board in accordance with the provisions of subsection (b).
(b) The moneys deposited into the Fund, plus any accrued
interest on those moneys, shall be distributed within 10 days
after those moneys are deposited into the Fund as follows:
(1) Sixty percent of all moneys distributed under this
subsection shall be distributed to organization licensees
to be distributed at their race meetings as purses.
Fifty-seven percent of the amount distributed under this
paragraph (1) shall be distributed for thoroughbred race
meetings and 43% shall be distributed for standardbred race
meetings. Within each breed, moneys shall be allocated to
each organization licensee's purse fund in accordance with
the ratio between the purses generated for that breed by
that licensee during the prior calendar year and the total
purses generated throughout the State for that breed during
the prior calendar year by licensees in the current
calendar year.
(2) The remaining 40% of the moneys distributed under
this subsection (b) shall be distributed as follows:
(A) 11% shall be distributed to any person (or its
successors or assigns) who had operating control of a
racetrack that conducted live racing in 2002 at a
racetrack in a county with at least 230,000 inhabitants
that borders the Mississippi River and is a licensee in

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the current year; and
(B) the remaining 89% shall be distributed pro rata
according to the aggregate proportion of total handle
from wagering on live races conducted in Illinois
(irrespective of where the wagers are placed) for
calendar years 2004 and 2005 to any person (or its
successors or assigns) who (i) had majority operating
control of a racing facility at which live racing was
conducted in calendar year 2002, (ii) is a licensee in
the current year, and (iii) is not eligible to receive
moneys under subparagraph (A) of this paragraph (2).
The moneys received by an organization licensee
under this paragraph (2) shall be used by each
organization licensee to improve, maintain, market,
and otherwise operate its racing facilities to conduct
live racing, which shall include backstretch services
and capital improvements related to live racing and the
backstretch. Any organization licensees sharing common
ownership may pool the moneys received and spent at all
racing facilities commonly owned in order to meet these
requirements.
If any person identified in this paragraph (2) becomes
ineligible to receive moneys from the Fund, such amount
shall be redistributed among the remaining persons in
proportion to their percentages otherwise calculated.
(c) The Board shall monitor organization licensees to

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ensure that moneys paid to organization licensees under this
Section are distributed by the organization licensees as
provided in subsection (b).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/5.3 rep.)
(230 ILCS 10/7.7 rep.)
(230 ILCS 10/7.8 rep.)
(230 ILCS 10/7.10 rep.)
(230 ILCS 10/7.11 rep.)
(230 ILCS 10/7.12 rep.)
(230 ILCS 10/7.13 rep.)
(230 ILCS 10/7.14 rep.)
(230 ILCS 10/7.15 rep.)
Section 10-410. The Illinois Gambling Act is amended by
repealing Sections 5.3, 7.7, 7.8, 7.10, 7.11, 7.12, 7.13, 7.14,
and 7.15, all as added by Public Act 101-31.
Section 10-415. The Illinois Gambling Act is amended by
changing Sections 1, 2, 3, 4, 5, 5.1, 6, 7, 7.3, 7.5, 8, 9, 11,
11.1, 12, 14, 15, 17, 17.1, 18, 18.1, 19, 20, and 24 as
follows:
(230 ILCS 10/1) (from Ch. 120, par. 2401)
Sec. 1. Short title. This Act shall be known and may be
cited as the Illinois Riverboat Gambling Act.

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(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/2) (from Ch. 120, par. 2402)
Sec. 2. Legislative Intent.
(a) This Act is intended to benefit the people of the State
of Illinois by assisting economic development, and promoting
Illinois tourism, and by increasing the amount of revenues
available to the State to assist and support education, and to
defray State expenses.
(b) While authorization of riverboat and casino gambling
will enhance investment, beautification, development and
tourism in Illinois, it is recognized that it will do so
successfully only if public confidence and trust in the
credibility and integrity of the gambling operations and the
regulatory process is maintained. Therefore, regulatory
provisions of this Act are designed to strictly regulate the
facilities, persons, associations and practices related to
gambling operations pursuant to the police powers of the State,
including comprehensive law enforcement supervision.
(c) The Illinois Gaming Board established under this Act
should, as soon as possible, inform each applicant for an
owners license of the Board's intent to grant or deny a
license.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/3) (from Ch. 120, par. 2403)

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Sec. 3. Riverboat Gambling Authorized.
(a) Riverboat and casino gambling operations and gaming
operations pursuant to an organization gaming license and the
system of wagering incorporated therein, as defined in this
Act, are hereby authorized to the extent that they are carried
out in accordance with the provisions of this Act.
(b) This Act does not apply to the pari-mutuel system of
wagering used or intended to be used in connection with the
horse-race meetings as authorized under the Illinois Horse
Racing Act of 1975, lottery games authorized under the Illinois
Lottery Law, bingo authorized under the Bingo License and Tax
Act, charitable games authorized under the Charitable Games Act
or pull tabs and jar games conducted under the Illinois Pull
Tabs and Jar Games Act. This Act applies to gaming by an
organization gaming licensee authorized under the Illinois
Horse Racing Act of 1975 to the extent provided in that Act and
in this Act.
(c) Riverboat gambling conducted pursuant to this Act may
be authorized upon any water within the State of Illinois or
any water other than Lake Michigan which constitutes a boundary
of the State of Illinois. Notwithstanding any provision in this
subsection (c) to the contrary, a licensee that receives its
license pursuant to subsection (e-5) of Section 7 may conduct
riverboat gambling on Lake Michigan from a home dock located on
Lake Michigan subject to any limitations contained in Section
7. Notwithstanding any provision in this subsection (c) to the

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contrary, a licensee may conduct gambling at its home dock
facility as provided in Sections 7 and 11. A licensee may
conduct riverboat gambling authorized under this Act
regardless of whether it conducts excursion cruises. A licensee
may permit the continuous ingress and egress of passengers for
the purpose of gambling.
(d) Gambling that is conducted in accordance with this Act
using slot machines and video games of chance and other
electronic gambling games as defined in both this Act and the
Illinois Horse Racing Act of 1975 is authorized.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
(a) "Board" means the Illinois Gaming Board.
(b) "Occupational license" means a license issued by the
Board to a person or entity to perform an occupation which the
Board has identified as requiring a license to engage in
riverboat gambling, casino gambling, or gaming pursuant to an
organization gaming license issued under this Act in Illinois.
(c) "Gambling game" includes, but is not limited to,
baccarat, twenty-one, poker, craps, slot machine, video game of
chance, roulette wheel, klondike table, punchboard, faro
layout, keno layout, numbers ticket, push card, jar ticket, or
pull tab which is authorized by the Board as a wagering device
under this Act.

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(d) "Riverboat" means a self-propelled excursion boat, a
permanently moored barge, or permanently moored barges that are
permanently fixed together to operate as one vessel, on which
lawful gambling is authorized and licensed as provided in this
Act.
"Slot machine" means any mechanical, electrical, or other
device, contrivance, or machine that is authorized by the Board
as a wagering device under this Act which, upon insertion of a
coin, currency, token, or similar object therein, or upon
payment of any consideration whatsoever, is available to play
or operate, the play or operation of which may deliver or
entitle the person playing or operating the machine to receive
cash, premiums, merchandise, tokens, or anything of value
whatsoever, whether the payoff is made automatically from the
machine or in any other manner whatsoever. A slot machine:
(1) may utilize spinning reels or video displays or
both;
(2) may or may not dispense coins, tickets, or tokens
to winning patrons;
(3) may use an electronic credit system for receiving
wagers and making payouts; and
(4) may simulate a table game.
"Slot machine" does not include table games authorized by
the Board as a wagering device under this Act.
(e) "Managers license" means a license issued by the Board
to a person or entity to manage gambling operations conducted

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by the State pursuant to Section 7.3.
(f) "Dock" means the location where a riverboat moors for
the purpose of embarking passengers for and disembarking
passengers from the riverboat.
(g) "Gross receipts" means the total amount of money
exchanged for the purchase of chips, tokens, or electronic
cards by riverboat patrons.
(h) "Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
(i) "Cheat" means to alter the selection of criteria which
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
(j) (Blank).
(k) "Gambling operation" means the conduct of authorized
gambling games authorized under this Act upon a riverboat or in
a casino or authorized under this Act and the Illinois Horse
Racing Act of 1975 at an organization gaming facility.
(l) "License bid" means the lump sum amount of money that
an applicant bids and agrees to pay the State in return for an
owners license that is issued or re-issued on or after July 1,
2003.
"Table game" means a live gaming apparatus upon which
gaming is conducted or that determines an outcome that is the
object of a wager, including, but not limited to, baccarat,
twenty-one, blackjack, poker, craps, roulette wheel, klondike
table, punchboard, faro layout, keno layout, numbers ticket,

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push card, jar ticket, pull tab, or other similar games that
are authorized by the Board as a wagering device under this
Act. "Table game" does not include slot machines or video games
of chance.
(m) The terms "minority person", "woman", and "person with
a disability" shall have the same meaning as defined in Section
2 of the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
"Casino" means a facility at which lawful gambling is
authorized as provided in this Act.
"Owners license" means a license to conduct riverboat or
casino gambling operations, but does not include an
organization gaming license.
"Licensed owner" means a person who holds an owners
license.
"Organization gaming facility" means that portion of an
organization licensee's racetrack facilities at which gaming
authorized under Section 7.7 is conducted.
"Organization gaming license" means a license issued by the
Illinois Gaming Board under Section 7.7 of this Act authorizing
gaming pursuant to that Section at an organization gaming
facility.
"Organization gaming licensee" means an entity that holds
an organization gaming license.
"Organization licensee" means an entity authorized by the
Illinois Racing Board to conduct pari-mutuel wagering in

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accordance with the Illinois Horse Racing Act of 1975. With
respect only to gaming pursuant to an organization gaming
license, "organization licensee" includes the authorization
for gaming created under subsection (a) of Section 56 of the
Illinois Horse Racing Act of 1975.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/5) (from Ch. 120, par. 2405)
Sec. 5. Gaming Board.
(a) (1) There is hereby established the Illinois Gaming
Board, which shall have the powers and duties specified in this
Act, and all other powers necessary and proper to fully and
effectively execute this Act for the purpose of administering,
regulating, and enforcing the system of riverboat and casino
gambling established by this Act and gaming pursuant to an
organization gaming license issued under this Act. Its
jurisdiction shall extend under this Act to every person,
association, corporation, partnership and trust involved in
riverboat and casino gambling operations and gaming pursuant to
an organization gaming license issued under this Act in the
State of Illinois.
(2) The Board shall consist of 5 members to be appointed by
the Governor with the advice and consent of the Senate, one of
whom shall be designated by the Governor to be chairperson
chairman. Each member shall have a reasonable knowledge of the
practice, procedure and principles of gambling operations.

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Each member shall either be a resident of Illinois or shall
certify that he or she will become a resident of Illinois
before taking office.
On and after the effective date of this amendatory Act of
the 101st General Assembly, new appointees to the Board must
include the following:
(A) One member who has received, at a minimum, a
bachelor's degree from an accredited school and at least 10
years of verifiable experience in the fields of
investigation and law enforcement.
(B) One member who is a certified public accountant
with experience in auditing and with knowledge of complex
corporate structures and transactions.
(C) One member who has 5 years' experience as a
principal, senior officer, or director of a company or
business with either material responsibility for the daily
operations and management of the overall company or
business or material responsibility for the policy making
of the company or business.
(D) One member who is an attorney licensed to practice
law in Illinois for at least 5 years.
Notwithstanding any provision of this subsection (a), the
requirements of subparagraphs (A) through (D) of this paragraph
(2) shall not apply to any person reappointed pursuant to
paragraph (3).
No more than 3 members of the Board may be from the same

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political party. No Board member shall, within a period of one
year immediately preceding nomination, have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee, or a licensee under the
Illinois Horse Racing Act of 1975. Board members must publicly
disclose all prior affiliations with gaming interests,
including any compensation, fees, bonuses, salaries, and other
reimbursement received from a person or entity, or its parent
or affiliate, that has engaged in business with the Board, a
licensee, or a licensee under the Illinois Horse Racing Act of
1975. This disclosure must be made within 30 days after
nomination but prior to confirmation by the Senate and must be
made available to the members of the Senate. At least one
member shall be experienced in law enforcement and criminal
investigation, at least one member shall be a certified public
accountant experienced in accounting and auditing, and at least
one member shall be a lawyer licensed to practice law in
Illinois.
(3) The terms of office of the Board members shall be 3
years, except that the terms of office of the initial Board
members appointed pursuant to this Act will commence from the
effective date of this Act and run as follows: one for a term
ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
a term ending July 1, 1993. Upon the expiration of the
foregoing terms, the successors of such members shall serve a

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

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

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neglect of duty and may be removed by the Governor. The cost of
any bond given by any member of the Board under this Section
shall be taken to be a part of the necessary expenses of the
Board.
(7.5) For the examination of all mechanical,
electromechanical, or electronic table games, slot machines,
slot accounting systems, sports wagering systems, and other
electronic gaming equipment, and the field inspection of such
systems, games, and machines, for compliance with this Act, the
Board shall may utilize the services of one or more independent
outside testing laboratories that have been accredited in
accordance with ISO/IEC 17025 by an accreditation body that is
a signatory to the International Laboratory Accreditation
Cooperation Mutual Recognition Agreement signifying they by a
national accreditation body and that, in the judgment of the
Board, are qualified to perform such examinations.
Notwithstanding any law to the contrary, the Board shall
consider the licensing of independent outside testing
laboratory applicants in accordance with procedures
established by the Board by rule. The Board shall not withhold
its approval of an independent outside testing laboratory
license applicant that has been accredited as required under
this paragraph (7.5) and is licensed in gaming jurisdictions
comparable to Illinois. Upon the finalization of required
rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed

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testing laboratory of the system's, game's, or machine
manufacturer's choice, notwithstanding the existence of
contracts between the Board and any independent testing
laboratory.
(8) The Board shall employ such personnel as may be
necessary to carry out its functions and shall determine the
salaries of all personnel, except those personnel whose
salaries are determined under the terms of a collective
bargaining agreement. No person shall be employed to serve the
Board who is, or whose spouse, parent or child is, an official
of, or has a financial interest in or financial relation with,
any operator engaged in gambling operations within this State
or any organization engaged in conducting horse racing within
this State. For the one year immediately preceding employment,
an employee shall not have been employed or received
compensation or fees for services from a person or entity, or
its parent or affiliate, that has engaged in business with the
Board, a licensee, or a licensee under the Illinois Horse
Racing Act of 1975. Any employee violating these prohibitions
shall be subject to termination of employment.
(9) An Administrator shall perform any and all duties that
the Board shall assign him. The salary of the Administrator
shall be determined by the Board and, in addition, he shall be
reimbursed for all actual and necessary expenses incurred by
him in discharge of his official duties. The Administrator
shall keep records of all proceedings of the Board and shall

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preserve all records, books, documents and other papers
belonging to the Board or entrusted to its care. The
Administrator shall devote his full time to the duties of the
office and shall not hold any other office or employment.
(b) The Board shall have general responsibility for the
implementation of this Act. Its duties include, without
limitation, the following:
(1) To decide promptly and in reasonable order all
license applications. Any party aggrieved by an action of
the Board denying, suspending, revoking, restricting or
refusing to renew a license may request a hearing before
the Board. A request for a hearing must be made to the
Board in writing within 5 days after service of notice of
the action of the Board. Notice of the action of the Board
shall be served either by personal delivery or by certified
mail, postage prepaid, to the aggrieved party. Notice
served by certified mail shall be deemed complete on the
business day following the date of such mailing. The Board
shall conduct any such all requested hearings promptly and
in reasonable order;
(2) To conduct all hearings pertaining to civil
violations of this Act or rules and regulations promulgated
hereunder;
(3) To promulgate such rules and regulations as in its
judgment may be necessary to protect or enhance the
credibility and integrity of gambling operations

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authorized by this Act and the regulatory process
hereunder;
(4) To provide for the establishment and collection of
all license and registration fees and taxes imposed by this
Act and the rules and regulations issued pursuant hereto.
All such fees and taxes shall be deposited into the State
Gaming Fund;
(5) To provide for the levy and collection of penalties
and fines for the violation of provisions of this Act and
the rules and regulations promulgated hereunder. All such
fines and penalties shall be deposited into the Education
Assistance Fund, created by Public Act 86-0018, of the
State of Illinois;
(6) To be present through its inspectors and agents any
time gambling operations are conducted on any riverboat, in
any casino, or at any organization gaming facility for the
purpose of certifying the revenue thereof, receiving
complaints from the public, and conducting such other
investigations into the conduct of the gambling games and
the maintenance of the equipment as from time to time the
Board may deem necessary and proper;
(7) To review and rule upon any complaint by a licensee
regarding any investigative procedures of the State which
are unnecessarily disruptive of gambling operations. The
need to inspect and investigate shall be presumed at all
times. The disruption of a licensee's operations shall be

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proved by clear and convincing evidence, and establish
that: (A) the procedures had no reasonable law enforcement
purposes, and (B) the procedures were so disruptive as to
unreasonably inhibit gambling operations;
(8) To hold at least one meeting each quarter of the
fiscal year. In addition, special meetings may be called by
the Chairman or any 2 Board members upon 72 hours written
notice to each member. All Board meetings shall be subject
to the Open Meetings Act. Three members of the Board shall
constitute a quorum, and 3 votes shall be required for any
final determination by the Board. The Board shall keep a
complete and accurate record of all its meetings. A
majority of the members of the Board shall constitute a
quorum for the transaction of any business, for the
performance of any duty, or for the exercise of any power
which this Act requires the Board members to transact,
perform or exercise en banc, except that, upon order of the
Board, one of the Board members or an administrative law
judge designated by the Board may conduct any hearing
provided for under this Act or by Board rule and may
recommend findings and decisions to the Board. The Board
member or administrative law judge conducting such hearing
shall have all powers and rights granted to the Board in
this Act. The record made at the time of the hearing shall
be reviewed by the Board, or a majority thereof, and the
findings and decision of the majority of the Board shall

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constitute the order of the Board in such case;
(9) To maintain records which are separate and distinct
from the records of any other State board or commission.
Such records shall be available for public inspection and
shall accurately reflect all Board proceedings;
(10) To file a written annual report with the Governor
on or before July 1 each year and such additional reports
as the Governor may request. The annual report shall
include a statement of receipts and disbursements by the
Board, actions taken by the Board, and any additional
information and recommendations which the Board may deem
valuable or which the Governor may request;
(11) (Blank);
(12) (Blank);
(13) To assume responsibility for administration and
enforcement of the Video Gaming Act; and
(13.1) To assume responsibility for the administration
and enforcement of operations at organization gaming
facilities pursuant to this Act and the Illinois Horse
Racing Act of 1975;
(13.2) To assume responsibility for the administration
and enforcement of the Sports Wagering Act; and
(14) To adopt, by rule, a code of conduct governing
Board members and employees that ensure, to the maximum
extent possible, that persons subject to this Code avoid
situations, relationships, or associations that may

HB5561 - 583 - LRB101 17547 JWD 66965 b
represent or lead to a conflict of interest.
Internal controls and changes submitted by licensees must
be reviewed and either approved or denied with cause within 90
days after receipt of submission is deemed final by the
Illinois Gaming Board. In the event an internal control
submission or change does not meet the standards set by the
Board, staff of the Board must provide technical assistance to
the licensee to rectify such deficiencies within 90 days after
the initial submission and the revised submission must be
reviewed and approved or denied with cause within 90 days after
the date the revised submission is deemed final by the Board.
For the purposes of this paragraph, "with cause" means that the
approval of the submission would jeopardize the integrity of
gaming. In the event the Board staff has not acted within the
timeframe, the submission shall be deemed approved.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations governed by this Act. The
Board shall have all powers necessary and proper to fully and
effectively execute the provisions of this Act, including, but
not limited to, the following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
riverboat gambling operations authorized under this Act in

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this State and all persons in places on riverboats where
gambling operations are conducted.
(3) To promulgate rules and regulations for the purpose
of administering the provisions of this Act and to
prescribe rules, regulations and conditions under which
all riverboat gambling operations subject to this Act in
the State shall be conducted. Such rules and regulations
are to provide for the prevention of practices detrimental
to the public interest and for the best interests of
riverboat gambling, including rules and regulations
regarding the inspection of organization gaming
facilities, casinos, and such riverboats, and the review of
any permits or licenses necessary to operate a riverboat,
casino, or organization gaming facility under any laws or
regulations applicable to riverboats, casinos, or
organization gaming facilities and to impose penalties for
violations thereof.
(4) To enter the office, riverboats, casinos,
organization gaming facilities, and other facilities, or
other places of business of a licensee, where evidence of
the compliance or noncompliance with the provisions of this
Act is likely to be found.
(5) To investigate alleged violations of this Act or
the rules of the Board and to take appropriate disciplinary
action against a licensee or a holder of an occupational
license for a violation, or institute appropriate legal

HB5561 - 585 - LRB101 17547 JWD 66965 b
action for enforcement, or both.
(6) To adopt standards for the licensing of all persons
and entities under this Act, as well as for electronic or
mechanical gambling games, and to establish fees for such
licenses.
(7) To adopt appropriate standards for all
organization gaming facilities, riverboats, casinos, and
other facilities authorized under this Act.
(8) To require that the records, including financial or
other statements of any licensee under this Act, shall be
kept in such manner as prescribed by the Board and that any
such licensee involved in the ownership or management of
gambling operations submit to the Board an annual balance
sheet and profit and loss statement, list of the
stockholders or other persons having a 1% or greater
beneficial interest in the gambling activities of each
licensee, and any other information the Board deems
necessary in order to effectively administer this Act and
all rules, regulations, orders and final decisions
promulgated under this Act.
(9) To conduct hearings, issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the
production of books, records and other pertinent documents
in accordance with the Illinois Administrative Procedure
Act, and to administer oaths and affirmations to the
witnesses, when, in the judgment of the Board, it is

HB5561 - 586 - LRB101 17547 JWD 66965 b
necessary to administer or enforce this Act or the Board
rules.
(10) To prescribe a form to be used by any licensee
involved in the ownership or management of gambling
operations as an application for employment for their
employees.
(11) To revoke or suspend licenses, as the Board may
see fit and in compliance with applicable laws of the State
regarding administrative procedures, and to review
applications for the renewal of licenses. The Board may
suspend an owners license or an organization gaming
license , without notice or hearing upon a determination
that the safety or health of patrons or employees is
jeopardized by continuing a gambling operation conducted
under that license riverboat's operation. The suspension
may remain in effect until the Board determines that the
cause for suspension has been abated. The Board may revoke
an the owners license or organization gaming license upon a
determination that the licensee owner has not made
satisfactory progress toward abating the hazard.
(12) To eject or exclude or authorize the ejection or
exclusion of, any person from riverboat gambling
facilities where that such person is in violation of this
Act, rules and regulations thereunder, or final orders of
the Board, or where such person's conduct or reputation is
such that his or her presence within the riverboat gambling

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facilities may, in the opinion of the Board, call into
question the honesty and integrity of the gambling
operations or interfere with the orderly conduct thereof;
provided that the propriety of such ejection or exclusion
is subject to subsequent hearing by the Board.
(13) To require all licensees of gambling operations to
utilize a cashless wagering system whereby all players'
money is converted to tokens, electronic cards, or chips
which shall be used only for wagering in the gambling
establishment.
(14) (Blank).
(15) To suspend, revoke or restrict licenses, to
require the removal of a licensee or an employee of a
licensee for a violation of this Act or a Board rule or for
engaging in a fraudulent practice, and to impose civil
penalties of up to $5,000 against individuals and up to
$10,000 or an amount equal to the daily gross receipts,
whichever is larger, against licensees for each violation
of any provision of the Act, any rules adopted by the
Board, any order of the Board or any other action which, in
the Board's discretion, is a detriment or impediment to
riverboat gambling operations.
(16) To hire employees to gather information, conduct
investigations and carry out any other tasks contemplated
under this Act.
(17) To establish minimum levels of insurance to be

HB5561 - 588 - LRB101 17547 JWD 66965 b
maintained by licensees.
(18) To authorize a licensee to sell or serve alcoholic
liquors, wine or beer as defined in the Liquor Control Act
of 1934 on board a riverboat or in a casino and to have
exclusive authority to establish the hours for sale and
consumption of alcoholic liquor on board a riverboat or in
a casino, notwithstanding any provision of the Liquor
Control Act of 1934 or any local ordinance, and regardless
of whether the riverboat makes excursions. The
establishment of the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino is an
exclusive power and function of the State. A home rule unit
may not establish the hours for sale and consumption of
alcoholic liquor on board a riverboat or in a casino. This
subdivision (18) amendatory Act of 1991 is a denial and
limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(19) After consultation with the U.S. Army Corps of
Engineers, to establish binding emergency orders upon the
concurrence of a majority of the members of the Board
regarding the navigability of water, relative to
excursions, in the event of extreme weather conditions,
acts of God or other extreme circumstances.
(20) To delegate the execution of any of its powers
under this Act for the purpose of administering and

HB5561 - 589 - LRB101 17547 JWD 66965 b
enforcing this Act and the its rules adopted by the Board
and regulations hereunder.
(20.5) To approve any contract entered into on its
behalf.
(20.6) To appoint investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these
powers shall be limited to offenses or violations occurring
or committed in a casino, in an organization gaming
facility, or on a riverboat or dock, as defined in
subsections (d) and (f) of Section 4, or as otherwise
provided by this Act or any other law.
(20.7) To contract with the Department of State Police
for the use of trained and qualified State police officers
and with the Department of Revenue for the use of trained
and qualified Department of Revenue investigators to
conduct investigations, searches, seizures, arrests, and
other duties imposed under this Act and to exercise all of
the rights and powers of peace officers, provided that the
powers of Department of Revenue investigators under this
subdivision (20.7) shall be limited to offenses or
violations occurring or committed in a casino, in an
organization gaming facility, or on a riverboat or dock, as
defined in subsections (d) and (f) of Section 4, or as

HB5561 - 590 - LRB101 17547 JWD 66965 b
otherwise provided by this Act or any other law. In the
event the Department of State Police or the Department of
Revenue is unable to fill contracted police or
investigative positions, the Board may appoint
investigators to fill those positions pursuant to
subdivision (20.6).
(21) To adopt rules concerning the conduct of gaming
pursuant to an organization gaming license issued under
this Act.
(22) To have the same jurisdiction and supervision over
casinos and organization gaming facilities as the Board has
over riverboats, including, but not limited to, the power
to (i) investigate, review, and approve contracts as that
power is applied to riverboats, (ii) adopt rules for
administering the provisions of this Act, (iii) adopt
standards for the licensing of all persons involved with a
casino or organization gaming facility, (iv) investigate
alleged violations of this Act by any person involved with
a casino or organization gaming facility, and (v) require
that records, including financial or other statements of
any casino or organization gaming facility, shall be kept
in such manner as prescribed by the Board.
(23) (21) To take any other action as may be reasonable
or appropriate to enforce this Act and the rules adopted by
the Board and regulations hereunder.
(d) The Board may seek and shall receive the cooperation of

HB5561 - 591 - LRB101 17547 JWD 66965 b
the Department of State Police in conducting background
investigations of applicants and in fulfilling its
responsibilities under this Section. Costs incurred by the
Department of State Police as a result of such cooperation
shall be paid by the Board in conformance with the requirements
of Section 2605-400 of the Department of State Police Law (20
ILCS 2605/2605-400).
(e) The Board must authorize to each investigator and to
any other employee of the Board exercising the powers of a
peace officer a distinct badge that, on its face, (i) clearly
states that the badge is authorized by the Board and (ii)
contains a unique identifying number. No other badge shall be
authorized by the Board.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/5.1) (from Ch. 120, par. 2405.1)
Sec. 5.1. Disclosure of records.
(a) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, provide information furnished by an applicant or
licensee concerning the applicant or licensee, his products,
services or gambling enterprises and his business holdings, as
follows:
(1) The name, business address and business telephone
number of any applicant or licensee.
(2) An identification of any applicant or licensee

HB5561 - 592 - LRB101 17547 JWD 66965 b
including, if an applicant or licensee is not an
individual, the names and addresses of all stockholders and
directors, if the entity is a corporation; the names and
addresses of all members, if the entity is a limited
liability company; the names and addresses of all partners,
both general and limited, if the entity is a partnership;
and the names and addresses of all beneficiaries, if the
entity is a trust the state of incorporation or
registration, the corporate officers, and the identity of
all shareholders or participants. If an applicant or
licensee has a pending registration statement filed with
the Securities and Exchange Commission, only the names of
those persons or entities holding interest of 5% or more
must be provided.
(3) An identification of any business, including, if
applicable, the state of incorporation or registration, in
which an applicant or licensee or an applicant's or
licensee's spouse or children has an equity interest of
more than 1%. If an applicant or licensee is a corporation,
partnership or other business entity, the applicant or
licensee shall identify any other corporation, partnership
or business entity in which it has an equity interest of 1%
or more, including, if applicable, the state of
incorporation or registration. This information need not
be provided by a corporation, partnership or other business
entity that has a pending registration statement filed with

HB5561 - 593 - LRB101 17547 JWD 66965 b
the Securities and Exchange Commission.
(4) Whether an applicant or licensee has been indicted,
convicted, pleaded guilty or nolo contendere, or forfeited
bail concerning any criminal offense under the laws of any
jurisdiction, either felony or misdemeanor (except for
traffic violations), including the date, the name and
location of the court, arresting agency and prosecuting
agency, the case number, the offense, the disposition and
the location and length of incarceration.
(5) Whether an applicant or licensee has had any
license or certificate issued by a licensing authority in
Illinois or any other jurisdiction denied, restricted,
suspended, revoked or not renewed and a statement
describing the facts and circumstances concerning the
denial, restriction, suspension, revocation or
non-renewal, including the licensing authority, the date
each such action was taken, and the reason for each such
action.
(6) Whether an applicant or licensee has ever filed or
had filed against it a proceeding in bankruptcy or has ever
been involved in any formal process to adjust, defer,
suspend or otherwise work out the payment of any debt
including the date of filing, the name and location of the
court, the case and number of the disposition.
(7) Whether an applicant or licensee has filed, or been
served with a complaint or other notice filed with any

HB5561 - 594 - LRB101 17547 JWD 66965 b
public body, regarding the delinquency in the payment of,
or a dispute over the filings concerning the payment of,
any tax required under federal, State or local law,
including the amount, type of tax, the taxing agency and
time periods involved.
(8) A statement listing the names and titles of all
public officials or officers of any unit of government, and
relatives of said public officials or officers who,
directly or indirectly, own any financial interest in, have
any beneficial interest in, are the creditors of or hold
any debt instrument issued by, or hold or have any interest
in any contractual or service relationship with, an
applicant or licensee.
(9) Whether an applicant or licensee has made, directly
or indirectly, any political contribution, or any loans,
donations or other payments, to any candidate or office
holder, within 5 years from the date of filing the
application, including the amount and the method of
payment.
(10) The name and business telephone number of the
counsel representing an applicant or licensee in matters
before the Board.
(11) A description of any proposed or approved gambling
riverboat gaming operation, including the type of boat,
home dock, or casino or gaming location, expected economic
benefit to the community, anticipated or actual number of

HB5561 - 595 - LRB101 17547 JWD 66965 b
employees, any statement from an applicant or licensee
regarding compliance with federal and State affirmative
action guidelines, projected or actual admissions and
projected or actual adjusted gross gaming receipts.
(12) A description of the product or service to be
supplied by an applicant for a supplier's license.
(b) Notwithstanding any applicable statutory provision to
the contrary, the Board shall, on written request from any
person, also provide the following information:
(1) The amount of the wagering tax and admission tax
paid daily to the State of Illinois by the holder of an
owner's license.
(2) Whenever the Board finds an applicant for an
owner's license unsuitable for licensing, a copy of the
written letter outlining the reasons for the denial.
(3) Whenever the Board has refused to grant leave for
an applicant to withdraw his application, a copy of the
letter outlining the reasons for the refusal.
(c) Subject to the above provisions, the Board shall not
disclose any information which would be barred by:
(1) Section 7 of the Freedom of Information Act; or
(2) The statutes, rules, regulations or
intergovernmental agreements of any jurisdiction.
(d) The Board may assess fees for the copying of
information in accordance with Section 6 of the Freedom of
Information Act.

HB5561 - 596 - LRB101 17547 JWD 66965 b
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/6) (from Ch. 120, par. 2406)
Sec. 6. Application for Owners License.
(a) A qualified person may apply to the Board for an owners
license to conduct a riverboat gambling operation as provided
in this Act. The application shall be made on forms provided by
the Board and shall contain such information as the Board
prescribes, including but not limited to the identity of the
riverboat on which such gambling operation is to be conducted,
if applicable, and the exact location where such riverboat or
casino will be located docked, a certification that the
riverboat will be registered under this Act at all times during
which gambling operations are conducted on board, detailed
information regarding the ownership and management of the
applicant, and detailed personal information regarding the
applicant. Any application for an owners license to be
re-issued on or after June 1, 2003 shall also include the
applicant's license bid in a form prescribed by the Board.
Information provided on the application shall be used as a
basis for a thorough background investigation which the Board
shall conduct with respect to each applicant. An incomplete
application shall be cause for denial of a license by the
Board.
(a-5) In addition to any other information required under
this Section, each application for an owners license must

HB5561 - 597 - LRB101 17547 JWD 66965 b
include the following information:
(1) The history and success of the applicant and each
person and entity disclosed under subsection (c) of this
Section in developing tourism facilities ancillary to
gaming, if applicable.
(2) The likelihood that granting a license to the
applicant will lead to the creation of quality, living wage
jobs and permanent, full-time jobs for residents of the
State and residents of the unit of local government that is
designated as the home dock of the proposed facility where
gambling is to be conducted by the applicant.
(3) The projected number of jobs that would be created
if the license is granted and the projected number of new
employees at the proposed facility where gambling is to be
conducted by the applicant.
(4) The record, if any, of the applicant and its
developer in meeting commitments to local agencies,
community-based organizations, and employees at other
locations where the applicant or its developer has
performed similar functions as they would perform if the
applicant were granted a license.
(5) Identification of adverse effects that might be
caused by the proposed facility where gambling is to be
conducted by the applicant, including the costs of meeting
increased demand for public health care, child care, public
transportation, affordable housing, and social services,

HB5561 - 598 - LRB101 17547 JWD 66965 b
and a plan to mitigate those adverse effects.
(6) The record, if any, of the applicant and its
developer regarding compliance with:
(A) federal, state, and local discrimination, wage
and hour, disability, and occupational and
environmental health and safety laws; and
(B) state and local labor relations and employment
laws.
(7) The applicant's record, if any, in dealing with its
employees and their representatives at other locations.
(8) A plan concerning the utilization of
minority-owned and women-owned businesses and concerning
the hiring of minorities and women.
(9) Evidence the applicant used its best efforts to
reach a goal of 25% ownership representation by minority
persons and 5% ownership representation by women.
(b) Applicants shall submit with their application all
documents, resolutions, and letters of support from the
governing body that represents the municipality or county
wherein the licensee will be located dock.
(c) Each applicant shall disclose the identity of every
person or entity , association, trust or corporation having a
greater than 1% direct or indirect pecuniary interest in the
riverboat gambling operation with respect to which the license
is sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of all the

HB5561 - 599 - LRB101 17547 JWD 66965 b
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a partnership, the names and
addresses of all partners, both general and limited.
(d) An application shall be filed and considered in
accordance with the rules of the Board. Each application shall
be accompanied by a nonrefundable An application fee of
$250,000. In addition, a nonrefundable fee of $50,000 shall be
paid at the time of filing to defray the costs associated with
the background investigation conducted by the Board. If the
costs of the investigation exceed $50,000, the applicant shall
pay the additional amount to the Board within 7 days after
requested by the Board. If the costs of the investigation are
less than $50,000, the applicant shall receive a refund of the
remaining amount. All information, records, interviews,
reports, statements, memoranda or other data supplied to or
used by the Board in the course of its review or investigation
of an application for a license or a renewal under this Act
shall be privileged, strictly confidential and shall be used
only for the purpose of evaluating an applicant for a license
or a renewal. Such information, records, interviews, reports,
statements, memoranda or other data shall not be admissible as
evidence, nor discoverable in any action of any kind in any
court or before any tribunal, board, agency or person, except
for any action deemed necessary by the Board. The application
fee shall be deposited into the State Gaming Fund.
(e) The Board shall charge each applicant a fee set by the

HB5561 - 600 - LRB101 17547 JWD 66965 b
Department of State Police to defray the costs associated with
the search and classification of fingerprints obtained by the
Board with respect to the applicant's application. These fees
shall be paid into the State Police Services Fund. In order to
expedite the application process, the Board may establish rules
allowing applicants to acquire criminal background checks and
financial integrity reviews as part of the initial application
process from a list of vendors approved by the Board.
(f) The licensed owner shall be the person primarily
responsible for the boat or casino itself. Only one riverboat
gambling operation may be authorized by the Board on any
riverboat or in any casino. The applicant must identify the
each riverboat or premises it intends to use and certify that
the riverboat or premises: (1) has the authorized capacity
required in this Act; (2) is accessible to persons with
disabilities; and (3) is fully registered and licensed in
accordance with any applicable laws.
(g) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners licenses.
(a) The Board shall issue owners licenses to persons or
entities that , firms or corporations which apply for such
licenses upon payment to the Board of the non-refundable

HB5561 - 601 - LRB101 17547 JWD 66965 b
license fee as provided in subsection (e) or (e-5) set by the
Board, upon payment of a $25,000 license fee for the first year
of operation and a $5,000 license fee for each succeeding year
and upon a determination by the Board that the applicant is
eligible for an owners license pursuant to this Act and the
rules of the Board. From the effective date of this amendatory
Act of the 95th General Assembly until (i) 3 years after the
effective date of this amendatory Act of the 95th General
Assembly, (ii) the date any organization licensee begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, (iii) the date
that payments begin under subsection (c-5) of Section 13 of the
Act, or (iv) the wagering tax imposed under Section 13 of this
Act is increased by law to reflect a tax rate that is at least
as stringent or more stringent than the tax rate contained in
subsection (a-3) of Section 13, or (v) when an owners licensee
holding a license issued pursuant to Section 7.1 of this Act
begins conducting gaming, whichever occurs first, as a
condition of licensure and as an alternative source of payment
for those funds payable under subsection (c-5) of Section 13 of
this the Riverboat Gambling Act, any owners licensee that holds
or receives its owners license on or after the effective date
of this amendatory Act of the 94th General Assembly, other than
an owners licensee operating a riverboat with adjusted gross
receipts in calendar year 2004 of less than $200,000,000, must
pay into the Horse Racing Equity Trust Fund, in addition to any

HB5561 - 602 - LRB101 17547 JWD 66965 b
other payments required under this Act, an amount equal to 3%
of the adjusted gross receipts received by the owners licensee.
The payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person, firm
or entity corporation is ineligible to receive an owners
license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3) or (4) is an
officer, director or managerial employee of the entity firm
or corporation;
(6) the entity firm or corporation employs a person
defined in (1), (2), (3) or (4) who participates in the
management or operation of gambling operations authorized
under this Act;
(7) (blank); or
(8) a license of the person or entity , firm or

HB5561 - 603 - LRB101 17547 JWD 66965 b
corporation issued under this Act, or a license to own or
operate gambling facilities in any other jurisdiction, has
been revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret this amendatory Act of the 95th General
Assembly. For the purposes of this paragraph, "rules" is given
the meaning given to that term in Section 1-70 of the Illinois
Administrative Procedure Act.
(b) In determining whether to grant an owners license to an
applicant, the Board shall consider:
(1) the character, reputation, experience and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant, or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of riverboat gambling;
(3) the highest prospective total revenue to be derived
by the State from the conduct of riverboat gambling;
(4) the extent to which the ownership of the applicant

HB5561 - 604 - LRB101 17547 JWD 66965 b
reflects the diversity of the State by including minority
persons, women, and persons with a disability and the good
faith affirmative action plan of each applicant to recruit,
train and upgrade minority persons, women, and persons with
a disability in all employment classifications; the Board
shall further consider granting an owners license and
giving preference to an applicant under this Section to
applicants in which minority persons and women hold
ownership interest of at least 16% and 4%, respectively.
(4.5) the extent to which the ownership of the
applicant includes veterans of service in the armed forces
of the United States, and the good faith affirmative action
plan of each applicant to recruit, train, and upgrade
veterans of service in the armed forces of the United
States in all employment classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat or casino;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license which
the Board may adopt by rule; and
(8) the The amount of the applicant's license bid; .
(9) the extent to which the applicant or the proposed
host municipality plans to enter into revenue sharing

HB5561 - 605 - LRB101 17547 JWD 66965 b
agreements with communities other than the host
municipality; and
(10) the extent to which the ownership of an applicant
includes the most qualified number of minority persons,
women, and persons with a disability.
(c) Each owners license shall specify the place where the
casino riverboats shall operate or the riverboat shall operate
and dock.
(d) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints.
(e) In addition to any licenses authorized under subsection
(e-5) of this Section, the The Board may issue up to 10
licenses authorizing the holders of such licenses to own
riverboats. In the application for an owners license, the
applicant shall state the dock at which the riverboat is based
and the water on which the riverboat will be located. The Board
shall issue 5 licenses to become effective not earlier than
January 1, 1991. Three of such licenses shall authorize
riverboat gambling on the Mississippi River, or, with approval
by the municipality in which the riverboat was docked on August
7, 2003 and with Board approval, be authorized to relocate to a
new location, in a municipality that (1) borders on the
Mississippi River or is within 5 miles of the city limits of a
municipality that borders on the Mississippi River and (2), on
August 7, 2003, had a riverboat conducting riverboat gambling
operations pursuant to a license issued under this Act; one of

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which shall authorize riverboat gambling from a home dock in
the city of East St. Louis; and one of which shall authorize
riverboat gambling from a home dock in the City of Alton. One
other license shall authorize riverboat gambling on the
Illinois River in the City of East Peoria or, with Board
approval, shall authorize land-based gambling operations
anywhere within the corporate limits of the City of Peoria
south of Marshall County. The Board shall issue one additional
license to become effective not earlier than March 1, 1992,
which shall authorize riverboat gambling on the Des Plaines
River in Will County. The Board may issue 4 additional licenses
to become effective not earlier than March 1, 1992. In
determining the water upon which riverboats will operate, the
Board shall consider the economic benefit which riverboat
gambling confers on the State, and shall seek to assure that
all regions of the State share in the economic benefits of
riverboat gambling.
In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an applicant
that has not submitted the highest license bid, but if it does

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not select the highest bidder, the Board shall issue a written
decision explaining why another applicant was selected and
identifying the factors set forth in this Section that favored
the winning bidder. The fee for issuance or renewal of a
license pursuant to this subsection (e) shall be $250,000.
(e-5) In addition to licenses authorized under subsection
(e) of this Section:
(1) the Board may issue one owners license authorizing
the conduct of casino gambling in the City of Chicago;
(2) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Danville;
(3) the Board may issue one owners license authorizing
the conduct of riverboat gambling located in the City of
Waukegan;
(4) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Rockford;
(5) the Board may issue one owners license authorizing
the conduct of riverboat gambling in a municipality that is
wholly or partially located in one of the following
townships of Cook County: Bloom, Bremen, Calumet, Rich,
Thornton, or Worth Township; and
(6) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the unincorporated
area of Williamson County adjacent to the Big Muddy River.
Except for the license authorized under paragraph (1), each
application for a license pursuant to this subsection (e-5)

HB5561 - 608 - LRB101 17547 JWD 66965 b
shall be submitted to the Board no later than 120 days after
the effective date of this amendatory Act of the 101st General
Assembly. All applications for a license under this subsection
(e-5) shall include the nonrefundable application fee and the
nonrefundable background investigation fee as provided in
subsection (d) of Section 6 of this Act. In the event that an
applicant submits an application for a license pursuant to this
subsection (e-5) prior to the effective date of this amendatory
Act of the 101st General Assembly, such applicant shall submit
the nonrefundable application fee and background investigation
fee as provided in subsection (d) of Section 6 of this Act no
later than 6 months after the effective date of this amendatory
Act of the 101st General Assembly.
The Board shall consider issuing a license pursuant to
paragraphs (1) through (6) of this subsection only after the
corporate authority of the municipality or the county board of
the county in which the riverboat or casino shall be located
has certified to the Board the following:
(i) that the applicant has negotiated with the
corporate authority or county board in good faith;
(ii) that the applicant and the corporate authority or
county board have mutually agreed on the permanent location
of the riverboat or casino;
(iii) that the applicant and the corporate authority or
county board have mutually agreed on the temporary location
of the riverboat or casino;

HB5561 - 609 - LRB101 17547 JWD 66965 b
(iv) that the applicant and the corporate authority or
the county board have mutually agreed on the percentage of
revenues that will be shared with the municipality or
county, if any;
(v) that the applicant and the corporate authority or
county board have mutually agreed on any zoning, licensing,
public health, or other issues that are within the
jurisdiction of the municipality or county; and
(vi) that the corporate authority or county board has
passed a resolution or ordinance in support of the
riverboat or casino in the municipality or county.
At least 7 days before the corporate authority of a
municipality or county board of the county submits a
certification to the Board concerning items (i) through (vi) of
this subsection, it shall hold a public hearing to discuss
items (i) through (vi), as well as any other details concerning
the proposed riverboat or casino in the municipality or county.
The corporate authority or county board must subsequently
memorialize the details concerning the proposed riverboat or
casino in a resolution that must be adopted by a majority of
the corporate authority or county board before any
certification is sent to the Board. The Board shall not alter,
amend, change, or otherwise interfere with any agreement
between the applicant and the corporate authority of the
municipality or county board of the county regarding the
location of any temporary or permanent facility.

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In addition, within 10 days after the effective date of
this amendatory Act of the 101st General Assembly, the Board,
with consent and at the expense of the City of Chicago, shall
select and retain the services of a nationally recognized
casino gaming feasibility consultant. Within 45 days after the
effective date of this amendatory Act of the 101st General
Assembly, the consultant shall prepare and deliver to the Board
a study concerning the feasibility of, and the ability to
finance, a casino in the City of Chicago. The feasibility study
shall be delivered to the Mayor of the City of Chicago, the
Governor, the President of the Senate, and the Speaker of the
House of Representatives. Ninety days after receipt of the
feasibility study, the Board shall make a determination, based
on the results of the feasibility study, whether to recommend
to the General Assembly that the terms of the license under
paragraph (1) of this subsection (e-5) should be modified. The
Board may begin accepting applications for the owners license
under paragraph (1) of this subsection (e-5) upon the
determination to issue such an owners license.
In addition, prior to the Board issuing the owners license
authorized under paragraph (4) of subsection (e-5), an impact
study shall be completed to determine what location in the city
will provide the greater impact to the region, including the
creation of jobs and the generation of tax revenue.
(e-10) The licenses authorized under subsection (e-5) of
this Section shall be issued within 12 months after the date

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the license application is submitted. If the Board does not
issue the licenses within that time period, then the Board
shall give a written explanation to the applicant as to why it
has not reached a determination and when it reasonably expects
to make a determination. The fee for the issuance or renewal of
a license issued pursuant to this subsection (e-10) shall be
$250,000. Additionally, a licensee located outside of Cook
County shall pay a minimum initial fee of $17,500 per gaming
position, and a licensee located in Cook County shall pay a
minimum initial fee of $30,000 per gaming position. The initial
fees payable under this subsection (e-10) shall be deposited
into the Rebuild Illinois Projects Fund.
(e-15) Each licensee of a license authorized under
subsection (e-5) of this Section shall make a reconciliation
payment 3 years after the date the licensee begins operating in
an amount equal to 75% of the adjusted gross receipts for the
most lucrative 12-month period of operations, minus an amount
equal to the initial payment per gaming position paid by the
specific licensee. Each licensee shall pay a $15,000,000
reconciliation fee upon issuance of an owners license. If this
calculation results in a negative amount, then the licensee is
not entitled to any reimbursement of fees previously paid. This
reconciliation payment may be made in installments over a
period of no more than 2 years, subject to Board approval. Any
installment payments shall include an annual market interest
rate as determined by the Board. All payments by licensees

HB5561 - 612 - LRB101 17547 JWD 66965 b
under this subsection (e-15) shall be deposited into the
Rebuild Illinois Projects Fund.
(e-20) In addition to any other revocation powers granted
to the Board under this Act, the Board may revoke the owners
license of a licensee which fails to begin conducting gambling
within 15 months of receipt of the Board's approval of the
application if the Board determines that license revocation is
in the best interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of each
of the first 10 licenses, which shall be issued for a 3 year
period, all licenses are renewable annually upon payment of the
fee and a determination by the Board that the licensee
continues to meet all of the requirements of this Act and the
Board's rules. However, for licenses renewed on or after May 1,
1998, renewal shall be for a period of 4 years, unless the
Board sets a shorter period.
(h) An owners license, except for an owners license issued
under subsection (e-5) of this Section, shall entitle the
licensee to own up to 2 riverboats.
An owners licensee of a casino or riverboat that is located

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in the City of Chicago pursuant to paragraph (1) of subsection
(e-5) of this Section shall limit the number of gaming
positions to 4,000 for such owner. An owners licensee
authorized under subsection (e) or paragraph (2), (3), (4), or
(5) of subsection (e-5) of this Section shall limit the number
of gaming positions to 2,000 for any such owners license. An
owners licensee authorized under paragraph (6) of subsection
(e-5) of this Section A licensee shall limit the number of
gaming positions gambling participants to 1,200 for any such
owner. The initial fee for each gaming position obtained on or
after the effective date of this amendatory Act of the 101st
General Assembly shall be a minimum of $17,500 for licensees
not located in Cook County and a minimum of $30,000 for
licensees located in Cook County, in addition to the
reconciliation payment, as set forth in subsection (e-15) of
this Section owners license. The fees under this subsection (h)
shall be deposited into the Rebuild Illinois Projects Fund. The
fees under this subsection (h) that are paid by an owners
licensee authorized under subsection (e) shall be paid by July
1, 2020.
Each owners licensee under subsection (e) of this Section
shall reserve its gaming positions within 30 days after the
effective date of this amendatory Act of the 101st General
Assembly. The Board may grant an extension to this 30-day
period, provided that the owners licensee submits a written
request and explanation as to why it is unable to reserve its

HB5561 - 614 - LRB101 17547 JWD 66965 b
positions within the 30-day period.
Each owners licensee under subsection (e-5) of this
Section shall reserve its gaming positions within 30 days after
issuance of its owners license. The Board may grant an
extension to this 30-day period, provided that the owners
licensee submits a written request and explanation as to why it
is unable to reserve its positions within the 30-day period.
A licensee may operate both of its riverboats concurrently,
provided that the total number of gaming positions gambling
participants on both riverboats does not exceed the limit
established pursuant to this subsection 1,200. Riverboats
licensed to operate on the Mississippi River and the Illinois
River south of Marshall County shall have an authorized
capacity of at least 500 persons. Any other riverboat licensed
under this Act shall have an authorized capacity of at least
400 persons.
(h-5) An owners licensee who conducted gambling operations
prior to January 1, 2012 and obtains positions pursuant to this
amendatory Act of the 101st General Assembly shall make a
reconciliation payment 3 years after any additional gaming
positions begin operating in an amount equal to 75% of the
owners licensee's average gross receipts for the most lucrative
12-month period of operations minus an amount equal to the
initial fee that the owners licensee paid per additional gaming
position. For purposes of this subsection (h-5), "average gross
receipts" means (i) the increase in adjusted gross receipts for

HB5561 - 615 - LRB101 17547 JWD 66965 b
the most lucrative 12-month period of operations over the
adjusted gross receipts for 2019, multiplied by (ii) the
percentage derived by dividing the number of additional gaming
positions that an owners licensee had obtained by the total
number of gaming positions operated by the owners licensee. If
this calculation results in a negative amount, then the owners
licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 2 years, subject to
Board approval. Any installment payments shall include an
annual market interest rate as determined by the Board. These
reconciliation payments shall be deposited into the Rebuild
Illinois Projects Fund.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from the
Board necessary for the operation of a riverboat or casino,
including a liquor license, a license to prepare and serve food
for human consumption, and other necessary licenses. All use,
occupation and excise taxes which apply to the sale of food and
beverages in this State and all taxes imposed on the sale or
use of tangible personal property apply to such sales aboard
the riverboat or in the casino.
(j) The Board may issue or re-issue a license authorizing a
riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of

HB5561 - 616 - LRB101 17547 JWD 66965 b
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(k) An owners licensee may conduct land-based gambling
operations upon approval by the Board and payment of a fee of
$250,000, which shall be deposited into the State Gaming Fund.
(l) An owners licensee may conduct gaming at a temporary
facility pending the construction of a permanent facility or
the remodeling or relocation of an existing facility to
accommodate gaming participants for up to 24 months after the
temporary facility begins to conduct gaming. Upon request by an
owners licensee and upon a showing of good cause by the owners
licensee, the Board shall extend the period during which the
licensee may conduct gaming at a temporary facility by up to 12
months. The Board shall make rules concerning the conduct of
gaming from temporary facilities.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/7.3)
Sec. 7.3. State conduct of gambling operations.
(a) If, after reviewing each application for a re-issued

HB5561 - 617 - LRB101 17547 JWD 66965 b
license, the Board determines that the highest prospective
total revenue to the State would be derived from State conduct
of the gambling operation in lieu of re-issuing the license,
the Board shall inform each applicant of its decision. The
Board shall thereafter have the authority, without obtaining an
owners license, to conduct casino or riverboat gambling
operations as previously authorized by the terminated,
expired, revoked, or nonrenewed license through a licensed
manager selected pursuant to an open and competitive bidding
process as set forth in Section 7.5 and as provided in Section
7.4.
(b) The Board may locate any casino or riverboat on which a
gambling operation is conducted by the State in any home dock
or other location authorized by Section 3(c) upon receipt of
approval from a majority vote of the governing body of the
municipality or county, as the case may be, in which the
riverboat will dock.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations conducted by the State
provided for in this Act and shall have all powers necessary
and proper to fully and effectively execute the provisions of
this Act relating to gambling operations conducted by the
State.
(d) The maximum number of owners licenses authorized under
Section 7 7(e) shall be reduced by one for each instance in
which the Board authorizes the State to conduct a casino or

HB5561 - 618 - LRB101 17547 JWD 66965 b
riverboat gambling operation under subsection (a) in lieu of
re-issuing a license to an applicant under Section 7.1.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/7.5)
Sec. 7.5. Competitive Bidding. When the Board determines
that (i) it will re-issue an owners license pursuant to an open
and competitive bidding process, as set forth in Section 7.1,
(ii) or that it will issue a managers license pursuant to an
open and competitive bidding process, as set forth in Section
7.4, or (iii) it will issue an owners license pursuant to an
open and competitive bidding process, as set forth in Section
7.12, the open and competitive bidding process shall adhere to
the following procedures:
(1) The Board shall make applications for owners and
managers licenses available to the public and allow a
reasonable time for applicants to submit applications to the
Board.
(2) During the filing period for owners or managers license
applications, the Board may retain the services of an
investment banking firm to assist the Board in conducting the
open and competitive bidding process.
(3) After receiving all of the bid proposals, the Board
shall open all of the proposals in a public forum and disclose
the prospective owners or managers names, venture partners, if
any, and, in the case of applicants for owners licenses, the

HB5561 - 619 - LRB101 17547 JWD 66965 b
locations of the proposed development sites.
(4) The Board shall summarize the terms of the proposals
and may make this summary available to the public.
(5) The Board shall evaluate the proposals within a
reasonable time and select no more than 3 final applicants to
make presentations of their proposals to the Board.
(6) The final applicants shall make their presentations to
the Board on the same day during an open session of the Board.
(7) As soon as practicable after the public presentations
by the final applicants, the Board, in its discretion, may
conduct further negotiations among the 3 final applicants.
During such negotiations, each final applicant may increase its
license bid or otherwise enhance its bid proposal. At the
conclusion of such negotiations, the Board shall select the
winning proposal. In the case of negotiations for an owners
license, the Board may, at the conclusion of such negotiations,
make the determination allowed under Section 7.3(a).
(8) Upon selection of a winning bid, the Board shall
evaluate the winning bid within a reasonable period of time for
licensee suitability in accordance with all applicable
statutory and regulatory criteria.
(9) If the winning bidder is unable or otherwise fails to
consummate the transaction, (including if the Board determines
that the winning bidder does not satisfy the suitability
requirements), the Board may, on the same criteria, select from
the remaining bidders or make the determination allowed under

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Section 7.3(a).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/8) (from Ch. 120, par. 2408)
Sec. 8. Suppliers licenses.
(a) The Board may issue a suppliers license to such
persons, firms or corporations which apply therefor upon the
payment of a non-refundable application fee set by the Board,
upon a determination by the Board that the applicant is
eligible for a suppliers license and upon payment of a $5,000
annual license fee.
(b) The holder of a suppliers license is authorized to sell
or lease, and to contract to sell or lease, gambling equipment
and supplies to any licensee involved in the ownership or
management of gambling operations.
(c) Gambling supplies and equipment may not be distributed
unless supplies and equipment conform to standards adopted by
rules of the Board.
(d) A person, firm or corporation is ineligible to receive
a suppliers license if:
(1) the person has been convicted of a felony under the
laws of this State, any other state, or the United States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;

HB5561 - 621 - LRB101 17547 JWD 66965 b
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) the entity firm or corporation is one in which a
person defined in (1), (2), (3) or (4), is an officer,
director or managerial employee;
(6) the firm or corporation employs a person who
participates in the management or operation of riverboat
gambling authorized under this Act;
(7) the license of the person, firm or corporation
issued under this Act, or a license to own or operate
gambling facilities in any other jurisdiction, has been
revoked.
(e) Any person that supplies any equipment, devices, or
supplies to a licensed riverboat gambling operation must first
obtain a suppliers license. A supplier shall furnish to the
Board a list of all equipment, devices and supplies offered for
sale or lease in connection with gambling games authorized
under this Act. A supplier shall keep books and records for the
furnishing of equipment, devices and supplies to gambling
operations separate and distinct from any other business that
the supplier might operate. A supplier shall file a quarterly
return with the Board listing all sales and leases. A supplier
shall permanently affix its name or a distinctive logo or other
mark or design element identifying the manufacturer or supplier
to all its equipment, devices, and supplies, except gaming

HB5561 - 622 - LRB101 17547 JWD 66965 b
chips without a value impressed, engraved, or imprinted on it,
for gambling operations. The Board may waive this requirement
for any specific product or products if it determines that the
requirement is not necessary to protect the integrity of the
game. Items purchased from a licensed supplier may continue to
be used even though the supplier subsequently changes its name,
distinctive logo, or other mark or design element; undergoes a
change in ownership; or ceases to be licensed as a supplier for
any reason. Any supplier's equipment, devices or supplies which
are used by any person in an unauthorized gambling operation
shall be forfeited to the State. A holder of an owners license
or an organization gaming license A licensed owner may own its
own equipment, devices and supplies. Each holder of an owners
license or an organization gaming license under the Act shall
file an annual report listing its inventories of gambling
equipment, devices and supplies.
(f) Any person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any gambling equipment, devices and supplies provided
by any licensed supplier may either be repaired on the
riverboat, in the casino, or at the organization gaming
facility or removed from the riverboat, casino, or organization
gaming facility to a an on-shore facility owned by the holder
of an owners license, organization gaming license, or suppliers
license for repair.
(Source: P.A. 101-31, eff. 6-28-19.)

HB5561 - 623 - LRB101 17547 JWD 66965 b
(230 ILCS 10/9) (from Ch. 120, par. 2409)
Sec. 9. Occupational licenses.
(a) The Board may issue an occupational license to an
applicant upon the payment of a non-refundable fee set by the
Board, upon a determination by the Board that the applicant is
eligible for an occupational license and upon payment of an
annual license fee in an amount to be established. To be
eligible for an occupational license, an applicant must:
(1) be at least 21 years of age if the applicant will
perform any function involved in gaming by patrons. Any
applicant seeking an occupational license for a non-gaming
function shall be at least 18 years of age;
(2) not have been convicted of a felony offense, a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012, or a similar statute of any other
jurisdiction;
(2.5) not have been convicted of a crime, other than a
crime described in item (2) of this subsection (a),
involving dishonesty or moral turpitude, except that the
Board may, in its discretion, issue an occupational license
to a person who has been convicted of a crime described in
this item (2.5) more than 10 years prior to his or her
application and has not subsequently been convicted of any
other crime;
(3) have demonstrated a level of skill or knowledge

HB5561 - 624 - LRB101 17547 JWD 66965 b
which the Board determines to be necessary in order to
operate gambling aboard a riverboat, in a casino, or at an
organization gaming facility; and
(4) have met standards for the holding of an
occupational license as adopted by rules of the Board. Such
rules shall provide that any person or entity seeking an
occupational license to manage gambling operations under
this Act hereunder shall be subject to background inquiries
and further requirements similar to those required of
applicants for an owners license. Furthermore, such rules
shall provide that each such entity shall be permitted to
manage gambling operations for only one licensed owner.
(b) Each application for an occupational license shall be
on forms prescribed by the Board and shall contain all
information required by the Board. The applicant shall set
forth in the application: whether he has been issued prior
gambling related licenses; whether he has been licensed in any
other state under any other name, and, if so, such name and his
age; and whether or not a permit or license issued to him in
any other state has been suspended, restricted or revoked, and,
if so, for what period of time.
(c) Each applicant shall submit with his application, on
forms provided by the Board, 2 sets of his fingerprints. The
Board shall charge each applicant a fee set by the Department
of State Police to defray the costs associated with the search
and classification of fingerprints obtained by the Board with

HB5561 - 625 - LRB101 17547 JWD 66965 b
respect to the applicant's application. These fees shall be
paid into the State Police Services Fund.
(d) The Board may in its discretion refuse an occupational
license to any person: (1) who is unqualified to perform the
duties required of such applicant; (2) who fails to disclose or
states falsely any information called for in the application;
(3) who has been found guilty of a violation of this Act or
whose prior gambling related license or application therefor
has been suspended, restricted, revoked or denied for just
cause in any other state; or (4) for any other just cause.
(e) The Board may suspend, revoke or restrict any
occupational licensee: (1) for violation of any provision of
this Act; (2) for violation of any of the rules and regulations
of the Board; (3) for any cause which, if known to the Board,
would have disqualified the applicant from receiving such
license; or (4) for default in the payment of any obligation or
debt due to the State of Illinois; or (5) for any other just
cause.
(f) A person who knowingly makes a false statement on an
application is guilty of a Class A misdemeanor.
(g) Any license issued pursuant to this Section shall be
valid for a period of one year from the date of issuance.
(h) Nothing in this Act shall be interpreted to prohibit a
licensed owner or organization gaming licensee from entering
into an agreement with a public community college or a school
approved under the Private Business and Vocational Schools Act

HB5561 - 626 - LRB101 17547 JWD 66965 b
of 2012 for the training of any occupational licensee. Any
training offered by such a school shall be in accordance with a
written agreement between the licensed owner or organization
gaming licensee and the school.
(i) Any training provided for occupational licensees may be
conducted either at the site of the gambling facility on the
riverboat or at a school with which a licensed owner or
organization gaming licensee has entered into an agreement
pursuant to subsection (h).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/11) (from Ch. 120, par. 2411)
Sec. 11. Conduct of gambling. Gambling may be conducted by
licensed owners or licensed managers on behalf of the State
aboard riverboats. Gambling may be conducted by organization
gaming licensees at organization gaming facilities. Gambling
authorized under this Section is , subject to the following
standards:
(1) A licensee may conduct riverboat gambling
authorized under this Act regardless of whether it conducts
excursion cruises. A licensee may permit the continuous
ingress and egress of patrons passengers on a riverboat not
used for excursion cruises for the purpose of gambling.
Excursion cruises shall not exceed 4 hours for a round
trip. However, the Board may grant express approval for an
extended cruise on a case-by-case basis.

HB5561 - 627 - LRB101 17547 JWD 66965 b
(1.5) An owners licensee may conduct gambling
operations authorized under this Act 24 hours a day.
(2) (Blank).
(3) Minimum and maximum wagers on games shall be set by
the licensee.
(4) Agents of the Board and the Department of State
Police may board and inspect any riverboat, enter and
inspect any portion of a casino, or enter and inspect any
portion of an organization gaming facility at any time for
the purpose of determining whether this Act is being
complied with. Every riverboat, if under way and being
hailed by a law enforcement officer or agent of the Board,
must stop immediately and lay to.
(5) Employees of the Board shall have the right to be
present on the riverboat or in the casino or on adjacent
facilities under the control of the licensee and at the
organization gaming facility under the control of the
organization gaming licensee.
(6) Gambling equipment and supplies customarily used
in conducting riverboat gambling must be purchased or
leased only from suppliers licensed for such purpose under
this Act. The Board may approve the transfer, sale, or
lease of gambling equipment and supplies by a licensed
owner from or to an affiliate of the licensed owner as long
as the gambling equipment and supplies were initially
acquired from a supplier licensed in Illinois.

HB5561 - 628 - LRB101 17547 JWD 66965 b
(7) Persons licensed under this Act shall permit no
form of wagering on gambling games except as permitted by
this Act.
(8) Wagers may be received only from a person present
on a licensed riverboat, in a casino, or at an organization
gaming facility. No person present on a licensed riverboat,
in a casino, or at an organization gaming facility shall
place or attempt to place a wager on behalf of another
person who is not present on the riverboat, in a casino, or
at the organization gaming facility.
(9) Wagering, including gaming authorized under
Section 7.7, shall not be conducted with money or other
negotiable currency.
(10) A person under age 21 shall not be permitted on an
area of a riverboat or casino where gambling is being
conducted or at an organization gaming facility where
gambling is being conducted, except for a person at least
18 years of age who is an employee of the riverboat or
casino gambling operation or gaming operation. No employee
under age 21 shall perform any function involved in
gambling by the patrons. No person under age 21 shall be
permitted to make a wager under this Act, and any winnings
that are a result of a wager by a person under age 21,
whether or not paid by a licensee, shall be treated as
winnings for the privilege tax purposes, confiscated, and
forfeited to the State and deposited into the Education

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Assistance Fund.
(11) Gambling excursion cruises are permitted only
when the waterway for which the riverboat is licensed is
navigable, as determined by the Board in consultation with
the U.S. Army Corps of Engineers. This paragraph (11) does
not limit the ability of a licensee to conduct gambling
authorized under this Act when gambling excursion cruises
are not permitted.
(12) All tickets tokens, chips, or electronic cards
used to make wagers must be purchased (i) from a licensed
owner or manager, in the case of a riverboat, either aboard
a riverboat or at an onshore facility which has been
approved by the Board and which is located where the
riverboat docks, (ii) in the case of a casino, from a
licensed owner at the casino, or (iii) from an organization
gaming licensee at the organization gaming facility. The
tickets tokens, chips, or electronic cards may be purchased
by means of an agreement under which the owner or manager
extends credit to the patron. Such tickets tokens, chips,
or electronic cards may be used while aboard the riverboat,
in the casino, or at the organization gaming facility only
for the purpose of making wagers on gambling games.
(13) Notwithstanding any other Section of this Act, in
addition to the other licenses authorized under this Act,
the Board may issue special event licenses allowing persons
who are not otherwise licensed to conduct riverboat

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gambling to conduct such gambling on a specified date or
series of dates. Riverboat gambling under such a license
may take place on a riverboat not normally used for
riverboat gambling. The Board shall establish standards,
fees and fines for, and limitations upon, such licenses,
which may differ from the standards, fees, fines and
limitations otherwise applicable under this Act. All such
fees shall be deposited into the State Gaming Fund. All
such fines shall be deposited into the Education Assistance
Fund, created by Public Act 86-0018, of the State of
Illinois.
(14) In addition to the above, gambling must be
conducted in accordance with all rules adopted by the
Board.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
Sec. 11.1. Collection of amounts owing under credit
agreements. Notwithstanding any applicable statutory provision
to the contrary, a licensed owner, licensed or manager, or
organization gaming licensee who extends credit to a riverboat
gambling patron pursuant to paragraph (12) of Section 11
Section 11 (a) (12) of this Act is expressly authorized to
institute a cause of action to collect any amounts due and
owing under the extension of credit, as well as the licensed
owner's, licensed or manager's, or organization gaming

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licensee's costs, expenses and reasonable attorney's fees
incurred in collection.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/12) (from Ch. 120, par. 2412)
Sec. 12. Admission tax; fees.
(a) A tax is hereby imposed upon admissions to riverboat
and casino gambling facilities riverboats operated by licensed
owners authorized pursuant to this Act. Until July 1, 2002, the
rate is $2 per person admitted. From July 1, 2002 until July 1,
2003, the rate is $3 per person admitted. From July 1, 2003
until August 23, 2005 (the effective date of Public Act
94-673), for a licensee that admitted 1,000,000 persons or
fewer in the previous calendar year, the rate is $3 per person
admitted; for a licensee that admitted more than 1,000,000 but
no more than 2,300,000 persons in the previous calendar year,
the rate is $4 per person admitted; and for a licensee that
admitted more than 2,300,000 persons in the previous calendar
year, the rate is $5 per person admitted. Beginning on August
23, 2005 (the effective date of Public Act 94-673), for a
licensee that admitted 1,000,000 persons or fewer in calendar
year 2004, the rate is $2 per person admitted, and for all
other licensees, including licensees that were not conducting
gambling operations in 2004, the rate is $3 per person
admitted. This admission tax is imposed upon the licensed owner
conducting gambling.

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(1) The admission tax shall be paid for each admission,
except that a person who exits a riverboat gambling
facility and reenters that riverboat gambling facility
within the same gaming day shall be subject only to the
initial admission tax.
(2) (Blank).
(3) The riverboat licensee may issue tax-free passes to
actual and necessary officials and employees of the
licensee or other persons actually working on the
riverboat.
(4) The number and issuance of tax-free passes is
subject to the rules of the Board, and a list of all
persons to whom the tax-free passes are issued shall be
filed with the Board.
(a-5) A fee is hereby imposed upon admissions operated by
licensed managers on behalf of the State pursuant to Section
7.3 at the rates provided in this subsection (a-5). For a
licensee that admitted 1,000,000 persons or fewer in the
previous calendar year, the rate is $3 per person admitted; for
a licensee that admitted more than 1,000,000 but no more than
2,300,000 persons in the previous calendar year, the rate is $4
per person admitted; and for a licensee that admitted more than
2,300,000 persons in the previous calendar year, the rate is $5
per person admitted.
(1) The admission fee shall be paid for each admission.
(2) (Blank).

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(3) The licensed manager may issue fee-free passes to
actual and necessary officials and employees of the manager
or other persons actually working on the riverboat.
(4) The number and issuance of fee-free passes is
subject to the rules of the Board, and a list of all
persons to whom the fee-free passes are issued shall be
filed with the Board.
(b) Except as provided in subsection (b-5), from From the
tax imposed under subsection (a) and the fee imposed under
subsection (a-5), a municipality shall receive from the State
$1 for each person embarking on a riverboat docked within the
municipality or entering a casino located within the
municipality, and a county shall receive $1 for each person
entering a casino or embarking on a riverboat docked within the
county but outside the boundaries of any municipality. The
municipality's or county's share shall be collected by the
Board on behalf of the State and remitted quarterly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-5) From the tax imposed under subsection (a) and the fee
imposed under subsection (a-5), $1 for each person embarking on
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be divided as follows: $0.70 to the City of
Rockford, $0.05 to the City of Loves Park, $0.05 to the Village
of Machesney Park, and $0.20 to Winnebago County.
The municipality's or county's share shall be collected by

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the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-10) From the tax imposed under subsection (a) and the
fee imposed under subsection (a-5), $1 for each person
embarking on a riverboat or entering a casino designated in
paragraph (1) of subsection (e-5) of Section 7 shall be divided
as follows: $0.70 to the City of Chicago, $0.15 to the Village
of Maywood, and $0.15 to the Village of Summit.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(b-15) From the tax imposed under subsection (a) and the
fee imposed under subsection (a-5), $1 for each person
embarking on a riverboat or entering a casino designated in
paragraph (2) of subsection (e-5) of Section 7 shall be divided
as follows: $0.70 to the City of Danville and $0.30 to
Vermilion County.
The municipality's or county's share shall be collected by
the Board on behalf of the State and remitted monthly by the
State, subject to appropriation, to the treasurer of the unit
of local government for deposit in the general fund.
(c) The licensed owner shall pay the entire admission tax
to the Board and the licensed manager shall pay the entire
admission fee to the Board. Such payments shall be made daily.

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

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entire admission tax to the Board.
Such payments shall be made daily. Accompanying each
payment shall be a return on forms provided by the Board, which
shall include other information regarding admission as the
Board may require. Failure to submit either the payment or the
return within the specified time may result in suspension or
revocation of the organization gaming license.
From the tax imposed under this subsection (c-5), a
municipality other than the Village of Stickney or the City of
Collinsville in which an organization gaming facility is
located, or if the organization gaming facility is not located
within a municipality, then the county in which the
organization gaming facility is located, except as otherwise
provided in this Section, shall receive, subject to
appropriation, $1 for each person who enters the organization
gaming facility. For each admission to the organization gaming
facility in excess of 1,500,000 in a year, from the tax imposed
under this subsection (c-5), the county in which the
organization gaming facility is located shall receive, subject
to appropriation, $0.30, which shall be in addition to any
other moneys paid to the county under this Section.
From the tax imposed under this subsection (c-5) on an
organization gaming facility located in the Village of
Stickney, $1 for each person who enters the organization gaming
facility shall be distributed as follows, subject to
appropriation: $0.24 to the Village of Stickney, $0.49 to the

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Town of Cicero, $0.05 to the City of Berwyn, and $0.17 to the
Stickney Public Health District, and $0.05 to the City of
Bridgeview.
From the tax imposed under this subsection (c-5) on an
organization gaming facility located in the City of
Collinsville, the following shall each receive 10 cents for
each person who enters the organization gaming facility,
subject to appropriation: the Village of Alorton; the Village
of Washington Park; State Park Place; the Village of Fairmont
City; the City of Centreville; the Village of Brooklyn; the
City of Venice; the City of Madison; the Village of Caseyville;
and the Village of Pontoon Beach.
On the 25th day of each month, all amounts remaining after
payments required under this subsection (c-5) have been made
shall be transferred into the Capital Projects Fund.
(d) The Board shall administer and collect the admission
tax imposed by this Section, to the extent practicable, in a
manner consistent with the provisions of Sections 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/14) (from Ch. 120, par. 2414)
Sec. 14. Licensees - Records - Reports - Supervision.
(a) Licensed owners and organization gaming licensees A

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licensed owner shall keep his books and records so as to
clearly show the following:
(1) The amount received daily from admission fees.
(2) The total amount of gross receipts.
(3) The total amount of the adjusted gross receipts.
(b) Licensed owners and organization gaming licensees The
licensed owner shall furnish to the Board reports and
information as the Board may require with respect to its
activities on forms designed and supplied for such purpose by
the Board.
(c) The books and records kept by a licensed owner as
provided by this Section are public records and the
examination, publication, and dissemination of the books and
records are governed by the provisions of The Freedom of
Information Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/15) (from Ch. 120, par. 2415)
Sec. 15. Audit of Licensee Operations. Annually, the
licensed owner, or manager, or organization gaming licensee
shall transmit to the Board an audit of the financial
transactions and condition of the licensee's or manager's total
operations. Additionally, within 90 days after the end of each
quarter of each fiscal year, the licensed owner, or manager, or
organization gaming licensee shall transmit to the Board a
compliance report on engagement procedures determined by the

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Board. All audits and compliance engagements shall be conducted
by certified public accountants selected by the Board. Each
certified public accountant must be registered in the State of
Illinois under the Illinois Public Accounting Act. The
compensation for each certified public accountant shall be paid
directly by the licensed owner, or manager, or organization
gaming licensee to the certified public accountant.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/17) (from Ch. 120, par. 2417)
Sec. 17. Administrative Procedures. The Illinois
Administrative Procedure Act shall apply to all administrative
rules and procedures of the Board under this Act and or the
Video Gaming Act, except that: (1) subsection (b) of Section
5-10 of the Illinois Administrative Procedure Act does not
apply to final orders, decisions and opinions of the Board; (2)
subsection (a) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to forms established by the Board
for use under this Act and or the Video Gaming Act; (3) the
provisions of Section 10-45 of the Illinois Administrative
Procedure Act regarding proposals for decision are excluded
under this Act and or the Video Gaming Act; and (4) the
provisions of subsection (d) of Section 10-65 of the Illinois
Administrative Procedure Act do not apply so as to prevent
summary suspension of any license pending revocation or other
action, which suspension shall remain in effect unless modified

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by the Board or unless the Board's decision is reversed on the
merits upon judicial review.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/17.1) (from Ch. 120, par. 2417.1)
Sec. 17.1. Judicial Review.
(a) Jurisdiction and venue for the judicial review of a
final order of the Board relating to licensed owners,
suppliers, organization gaming licensees, and or special event
licenses is vested in the Appellate Court of the judicial
district in which Sangamon County is located. A petition for
judicial review of a final order of the Board must be filed in
the Appellate Court, within 35 days from the date that a copy
of the decision sought to be reviewed was served upon the party
affected by the decision.
(b) Judicial review of all other final orders of the Board
shall be conducted in accordance with the Administrative Review
Law.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/18) (from Ch. 120, par. 2418)
Sec. 18. Prohibited Activities - Penalty.
(a) A person is guilty of a Class A misdemeanor for doing
any of the following:
(1) Conducting gambling where wagering is used or to be
used without a license issued by the Board.

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(2) Conducting gambling where wagering is permitted
other than in the manner specified by Section 11.
(b) A person is guilty of a Class B misdemeanor for doing
any of the following:
(1) permitting a person under 21 years to make a wager;
or
(2) violating paragraph (12) of subsection (a) of
Section 11 of this Act.
(c) A person wagering or accepting a wager at any location
outside the riverboat, casino, or organization gaming facility
in violation of paragraph is subject to the penalties in
paragraphs (1) or (2) of subsection (a) of Section 28-1 of the
Criminal Code of 2012 is subject to the penalties provided in
that Section.
(d) A person commits a Class 4 felony and, in addition,
shall be barred for life from gambling operations riverboats
under the jurisdiction of the Board, if the person does any of
the following:
(1) Offers, promises, or gives anything of value or
benefit to a person who is connected with a riverboat or
casino owner or organization gaming licensee, including,
but not limited to, an officer or employee of a licensed
owner, organization gaming licensee, or holder of an
occupational license pursuant to an agreement or
arrangement or with the intent that the promise or thing of
value or benefit will influence the actions of the person

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to whom the offer, promise, or gift was made in order to
affect or attempt to affect the outcome of a gambling game,
or to influence official action of a member of the Board.
(2) Solicits or knowingly accepts or receives a promise
of anything of value or benefit while the person is
connected with a riverboat, casino, or organization gaming
facility, including, but not limited to, an officer or
employee of a licensed owner or organization gaming
licensee, or the holder of an occupational license,
pursuant to an understanding or arrangement or with the
intent that the promise or thing of value or benefit will
influence the actions of the person to affect or attempt to
affect the outcome of a gambling game, or to influence
official action of a member of the Board.
(3) Uses or possesses with the intent to use a device
to assist:
(i) In projecting the outcome of the game.
(ii) In keeping track of the cards played.
(iii) In analyzing the probability of the
occurrence of an event relating to the gambling game.
(iv) In analyzing the strategy for playing or
betting to be used in the game except as permitted by
the Board.
(4) Cheats at a gambling game.
(5) Manufactures, sells, or distributes any cards,
chips, dice, game or device which is intended to be used to

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violate any provision of this Act.
(6) Alters or misrepresents the outcome of a gambling
game on which wagers have been made after the outcome is
made sure but before it is revealed to the players.
(7) Places a bet after acquiring knowledge, not
available to all players, of the outcome of the gambling
game which is subject of the bet or to aid a person in
acquiring the knowledge for the purpose of placing a bet
contingent on that outcome.
(8) Claims, collects, or takes, or attempts to claim,
collect, or take, money or anything of value in or from the
gambling games, with intent to defraud, without having made
a wager contingent on winning a gambling game, or claims,
collects, or takes an amount of money or thing of value of
greater value than the amount won.
(9) Uses counterfeit chips or tokens in a gambling
game.
(10) Possesses any key or device designed for the
purpose of opening, entering, or affecting the operation of
a gambling game, drop box, or an electronic or mechanical
device connected with the gambling game or for removing
coins, tokens, chips or other contents of a gambling game.
This paragraph (10) does not apply to a gambling licensee
or employee of a gambling licensee acting in furtherance of
the employee's employment.
(e) The possession of more than one of the devices

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described in subsection (d), paragraphs (3), (5), or (10)
permits a rebuttable presumption that the possessor intended to
use the devices for cheating.
(f) A person under the age of 21 who, except as authorized
under paragraph (10) of Section 11, enters upon a riverboat or
in a casino or organization gaming facility commits a petty
offense and is subject to a fine of not less than $100 or more
than $250 for a first offense and of not less than $200 or more
than $500 for a second or subsequent offense.
An action to prosecute any crime occurring on a riverboat
shall be tried in the county of the dock at which the riverboat
is based. An action to prosecute any crime occurring in a
casino or organization gaming facility shall be tried in the
county in which the casino or organization gaming facility is
located.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/18.1)
Sec. 18.1. Distribution of certain fines. If a fine is
imposed on an owners owner licensee or an organization gaming
licensee for knowingly sending marketing or promotional
materials to any person placed on the self-exclusion list, then
the Board shall distribute an amount equal to 15% of the fine
imposed to the unit of local government in which the casino,
riverboat, or organization gaming facility is located for the
purpose of awarding grants to non-profit entities that assist

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gambling addicts.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/19) (from Ch. 120, par. 2419)
Sec. 19. Forfeiture of property.
(a) Except as provided in subsection (b), any riverboat,
casino, or organization gaming facility used for the conduct of
gambling games in violation of this Act shall be considered a
gambling place in violation of Section 28-3 of the Criminal
Code of 2012. Every gambling device found on a riverboat, in a
casino, or at an organization gaming facility operating
gambling games in violation of this Act and every slot machine
and video game of chance found at an organization gaming
facility operating gambling games in violation of this Act
shall be subject to seizure, confiscation and destruction as
provided in Section 28-5 of the Criminal Code of 2012.
(b) It is not a violation of this Act for a riverboat or
other watercraft which is licensed for gaming by a contiguous
state to dock on the shores of this State if the municipality
having jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State. No gambling device
shall be subject to seizure, confiscation or destruction if the
gambling device is located on a riverboat or other watercraft
which is licensed for gaming by a contiguous state and which is

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docked on the shores of this State if the municipality having
jurisdiction of the shores, or the county in the case of
unincorporated areas, has granted permission for docking and no
gaming is conducted on the riverboat or other watercraft while
it is docked on the shores of this State.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/20) (from Ch. 120, par. 2420)
Sec. 20. Prohibited activities - civil penalties. Any
person who conducts a gambling operation without first
obtaining a license to do so, or who continues to conduct such
games after revocation of his license, or any licensee who
conducts or allows to be conducted any unauthorized gambling
games on a riverboat, in a casino, or at an organization gaming
facility where it is authorized to conduct its riverboat
gambling operation, in addition to other penalties provided,
shall be subject to a civil penalty equal to the amount of
gross receipts derived from wagering on the gambling games,
whether unauthorized or authorized, conducted on that day as
well as confiscation and forfeiture of all gambling game
equipment used in the conduct of unauthorized gambling games.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/24)
Sec. 24. Applicability of this Illinois Riverboat Gambling
Act. The provisions of this the Illinois Riverboat Gambling

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Act, and all rules promulgated thereunder, shall apply to the
Video Gaming Act, except where there is a conflict between the
2 Acts. In the event of a conflict between this Act and the
Video Gaming Act, the terms of this Act shall prevail.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-430. The Video Gaming Act is amended by changing
Sections 5, 15, 20, 25, 30, 35, 45, 55, 58, 60, 79, and 80 as
follows:
(230 ILCS 40/5)
Sec. 5. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Credit" means one, 5, 10, or 25 cents either won or
purchased by a player.
"Distributor" means an individual, partnership,
corporation, or limited liability company licensed under this
Act to buy, sell, lease, or distribute video gaming terminals
or major components or parts of video gaming terminals to or
from terminal operators.
"Electronic card" means a card purchased from a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, or licensed truck stop establishment,
or licensed large truck stop establishment for use in that
establishment as a substitute for cash in the conduct of gaming
on a video gaming terminal.

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"Electronic voucher" means a voucher printed by an
electronic video game machine that is redeemable in the
licensed establishment for which it was issued.
"In-location bonus jackpot" means one or more video gaming
terminals at a single licensed establishment that allows for
wagers placed on such video gaming terminals to contribute to a
cumulative maximum jackpot of up to $10,000.
"Terminal operator" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that owns, services, and maintains video
gaming terminals for placement in licensed establishments,
licensed truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, or licensed
veterans establishments.
"Licensed technician" means an individual who is licensed
under this Act to repair, service, and maintain video gaming
terminals.
"Licensed terminal handler" means a person, including but
not limited to an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator, who is licensed under this Act to possess or
control a video gaming terminal or to have access to the inner
workings of a video gaming terminal. A licensed terminal
handler does not include an individual, partnership,
corporation, or limited liability company defined as a
manufacturer, distributor, supplier, technician, or terminal

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operator under this Act.
"Manufacturer" means an individual, partnership,
corporation, or limited liability company that is licensed
under this Act and that manufactures or assembles video gaming
terminals.
"Supplier" means an individual, partnership, corporation,
or limited liability company that is licensed under this Act to
supply major components or parts to video gaming terminals to
licensed terminal operators.
"Net terminal income" means money put into a video gaming
terminal minus credits paid out to players.
"Video gaming terminal" means any electronic video game
machine that, upon insertion of cash, electronic cards or
vouchers, or any combination thereof, is available to play or
simulate the play of a video game, including but not limited to
video poker, line up, and blackjack, as authorized by the Board
utilizing a video display and microprocessors in which the
player may receive free games or credits that can be redeemed
for cash. The term does not include a machine that directly
dispenses coins, cash, or tokens or is for amusement purposes
only.
"Licensed establishment" means any licensed retail
establishment where alcoholic liquor is drawn, poured, mixed,
or otherwise served for consumption on the premises, whether
the establishment operates on a nonprofit or for-profit basis.
"Licensed establishment" includes any such establishment that

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has a contractual relationship with an inter-track wagering
location licensee licensed under the Illinois Horse Racing Act
of 1975, provided any contractual relationship shall not
include any transfer or offer of revenue from the operation of
video gaming under this Act to any licensee licensed under the
Illinois Horse Racing Act of 1975. Provided, however, that the
licensed establishment that has such a contractual
relationship with an inter-track wagering location licensee
may not, itself, be (i) an inter-track wagering location
licensee, (ii) the corporate parent or subsidiary of any
licensee licensed under the Illinois Horse Racing Act of 1975,
or (iii) the corporate subsidiary of a corporation that is also
the corporate parent or subsidiary of any licensee licensed
under the Illinois Horse Racing Act of 1975. "Licensed
establishment" does not include a facility operated by an
organization licensee, an inter-track wagering licensee, or an
inter-track wagering location licensee licensed under the
Illinois Horse Racing Act of 1975 or a riverboat licensed under
the Illinois Riverboat Gambling Act, except as provided in this
paragraph. The changes made to this definition by Public Act
98-587 are declarative of existing law.
"Licensed fraternal establishment" means the location
where a qualified fraternal organization that derives its
charter from a national fraternal organization regularly
meets.
"Licensed veterans establishment" means the location where

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a qualified veterans organization that derives its charter from
a national veterans organization regularly meets.
"Licensed truck stop establishment" means a facility (i)
that is at least a 3-acre facility with a convenience store,
(ii) with separate diesel islands for fueling commercial motor
vehicles, (iii) that sells at retail more than 10,000 gallons
of diesel or biodiesel fuel per month, and (iv) with parking
spaces for commercial motor vehicles. "Commercial motor
vehicles" has the same meaning as defined in Section 18b-101 of
the Illinois Vehicle Code. The requirement of item (iii) of
this paragraph may be met by showing that estimated future
sales or past sales average at least 10,000 gallons per month.
"Licensed large truck stop establishment" means a facility
located within 3 road miles from a freeway interchange, as
measured in accordance with the Department of Transportation's
rules regarding the criteria for the installation of business
signs: (i) that is at least a 3-acre facility with a
convenience store, (ii) with separate diesel islands for
fueling commercial motor vehicles, (iii) that sells at retail
more than 50,000 gallons of diesel or biodiesel fuel per month,
and (iv) with parking spaces for commercial motor vehicles.
"Commercial motor vehicles" has the same meaning as defined in
Section 18b-101 of the Illinois Vehicle Code. The requirement
of item (iii) of this paragraph may be met by showing that
estimated future sales or past sales average at least 50,000
gallons per month.

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(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/15)
Sec. 15. Minimum requirements for licensing and
registration. Every video gaming terminal offered for play
shall first be tested and approved pursuant to the rules of the
Board, and each video gaming terminal offered in this State for
play shall conform to an approved model. For the examination of
video gaming machines and associated equipment as required by
this Section, the Board shall may utilize the services of one
or more independent outside testing laboratories that have been
accredited in accordance with ISO/IEC 17025 by an accreditation
body that is a signatory to the International Laboratory
Accreditation Cooperation Mutual Recognition Agreement
signifying they are qualified to by a national accreditation
body and that, in the judgment of the Board, are qualified to
perform such examinations. Notwithstanding any law to the
contrary, the Board shall consider the licensing of independent
outside testing laboratory applicants in accordance with
procedures established by the Board by rule. The Board shall
not withhold its approval of an independent outside testing
laboratory license applicant that has been accredited as
required by this Section and is licensed in gaming
jurisdictions comparable to Illinois. Upon the finalization of
required rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed

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testing laboratory of the video gaming machine's or associated
equipment manufacturer's choice, notwithstanding the existence
of contracts between the Board and any independent testing
laboratory. Every video gaming terminal offered in this State
for play must meet minimum standards set by an independent
outside testing laboratory approved by the Board. Each approved
model shall, at a minimum, meet the following criteria:
(1) It must conform to all requirements of federal law
and regulations, including FCC Class A Emissions
Standards.
(2) It must theoretically pay out a mathematically
demonstrable percentage during the expected lifetime of
the machine of all amounts played, which must not be less
than 80%. The Board shall establish a maximum payout
percentage for approved models by rule. Video gaming
terminals that may be affected by skill must meet this
standard when using a method of play that will provide the
greatest return to the player over a period of continuous
play.
(3) It must use a random selection process to determine
the outcome of each play of a game. The random selection
process must meet 99% confidence limits using a standard
chi-squared test for (randomness) goodness of fit.
(4) It must display an accurate representation of the
game outcome.
(5) It must not automatically alter pay tables or any

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function of the video gaming terminal based on internal
computation of hold percentage or have any means of
manipulation that affects the random selection process or
probabilities of winning a game.
(6) It must not be adversely affected by static
discharge or other electromagnetic interference.
(7) It must be capable of detecting and displaying the
following conditions during idle states or on demand: power
reset; door open; and door just closed.
(8) It must have the capacity to display complete play
history (outcome, intermediate play steps, credits
available, bets placed, credits paid, and credits cashed
out) for the most recent game played and 10 games prior
thereto.
(9) The theoretical payback percentage of a video
gaming terminal must not be capable of being changed
without making a hardware or software change in the video
gaming terminal, either on site or via the central
communications system.
(10) Video gaming terminals must be designed so that
replacement of parts or modules required for normal
maintenance does not necessitate replacement of the
electromechanical meters.
(11) It must have nonresettable meters housed in a
locked area of the terminal that keep a permanent record of
all cash inserted into the machine, all winnings made by

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the terminal printer, credits played in for video gaming
terminals, and credits won by video gaming players. The
video gaming terminal must provide the means for on-demand
display of stored information as determined by the Board.
(12) Electronically stored meter information required
by this Section must be preserved for a minimum of 180 days
after a power loss to the service.
(13) It must have one or more mechanisms that accept
cash in the form of bills. The mechanisms shall be designed
to prevent obtaining credits without paying by stringing,
slamming, drilling, or other means. If such attempts at
physical tampering are made, the video gaming terminal
shall suspend itself from operating until reset.
(14) It shall have accounting software that keeps an
electronic record which includes, but is not limited to,
the following: total cash inserted into the video gaming
terminal; the value of winning tickets claimed by players;
the total credits played; the total credits awarded by a
video gaming terminal; and pay back percentage credited to
players of each video game.
(15) It shall be linked by a central communications
system to provide auditing program information as approved
by the Board. The central communications system shall use a
standard industry protocol, as defined by the Gaming
Standards Association, and shall have the functionality to
enable the Board or its designee to activate or deactivate

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individual gaming devices from the central communications
system. In no event may the communications system approved
by the Board limit participation to only one manufacturer
of video gaming terminals by either the cost in
implementing the necessary program modifications to
communicate or the inability to communicate with the
central communications system.
(16) The Board, in its discretion, may require video
gaming terminals to display Amber Alert messages if the
Board makes a finding that it would be economically and
technically feasible and pose no risk to the integrity and
security of the central communications system and video
gaming terminals.
Licensed terminal handlers shall have access to video
gaming terminals, including, but not limited to, logic door
access, without the physical presence or supervision of the
Board or its agent to perform, in coordination with and with
project approval from the central communication system
provider:
(i) the clearing of the random access memory and
reprogramming of the video gaming terminal;
(ii) the installation of new video gaming terminal
software and software upgrades that have been approved by
the Board;
(iii) the placement, connection to the central
communication system, and go-live operation of video

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gaming terminals at a licensed establishment, licensed
truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or
licensed veterans establishment;
(iv) the repair and maintenance of a video gaming
terminal located at a licensed establishment, licensed
truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or
licensed veterans establishment, including, but not
limited to, the replacement of the video gaming terminal
with a new video gaming terminal;
(v) the temporary movement, disconnection,
replacement, and reconnection of video gaming terminals to
allow for physical improvements and repairs at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, such as
replacement of flooring, interior repairs, and other
similar activities; and
(vi) such other functions as the Board may otherwise
authorize.
The Board shall, at a licensed terminal operator's expense,
cause all keys and other required devices to be provided to a
terminal operator necessary to allow the licensed terminal
handler access to the logic door to the terminal operator's
video gaming terminals.

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The Board may adopt rules to establish additional criteria
to preserve the integrity and security of video gaming in this
State. The central communications system vendor may be licensed
as a video gaming terminal manufacturer or a video gaming
terminal distributor, or both, but in no event shall the
central communications system vendor be licensed as a video
gaming terminal operator.
The Board shall not permit the development of information
or the use by any licensee of gaming device or individual game
performance data. Nothing in this Act shall inhibit or prohibit
the Board from the use of gaming device or individual game
performance data in its regulatory duties. The Board shall
adopt rules to ensure that all licensees are treated and all
licensees act in a non-discriminatory manner and develop
processes and penalties to enforce those rules.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/20)
Sec. 20. Video gaming terminal payouts Direct dispensing of
receipt tickets only.
(a) A video gaming terminal may not directly dispense
coins, cash, tokens, or any other article of exchange or value
except for receipt tickets. Tickets shall be dispensed by
pressing the ticket dispensing button on the video gaming
terminal at the end of one's turn or play. The ticket shall
indicate the total amount of credits and the cash award, the

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time of day in a 24-hour format showing hours and minutes, the
date, the terminal serial number, the sequential number of the
ticket, and an encrypted validation number from which the
validity of the prize may be determined. The player shall turn
in this ticket to the appropriate person at the licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment to receive
the cash award.
(b) The cost of the credit shall be one cent, 5 cents, 10
cents, or 25 cents, or $1, and the maximum wager played per
hand shall not exceed $4 $2. No cash award for the maximum
wager on any individual hand shall exceed $1,199 $500. No cash
award for the maximum wager on a jackpot, progressive or
otherwise, shall exceed $10,000.
(c) In-location bonus jackpot games are hereby authorized.
The Board shall adopt emergency rules pursuant to Section 5-45
of the Illinois Administrative Procedure Act to implement this
subsection (c) within 90 days after the effective date of this
amendatory Act of the 101st General Assembly. Jackpot winnings
from in-location progressive games shall be paid by the
terminal operator to the player not later than 3 days after
winning such a jackpot.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/25)

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Sec. 25. Restriction of licensees.
(a) Manufacturer. A person may not be licensed as a
manufacturer of a video gaming terminal in Illinois unless the
person has a valid manufacturer's license issued under this
Act. A manufacturer may only sell video gaming terminals for
use in Illinois to persons having a valid distributor's
license.
(b) Distributor. A person may not sell, distribute, or
lease or market a video gaming terminal in Illinois unless the
person has a valid distributor's license issued under this Act.
A distributor may only sell video gaming terminals for use in
Illinois to persons having a valid distributor's or terminal
operator's license.
(c) Terminal operator. A person may not own, maintain, or
place a video gaming terminal unless he has a valid terminal
operator's license issued under this Act. A terminal operator
may only place video gaming terminals for use in Illinois in
licensed establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments. No
terminal operator may give anything of value, including but not
limited to a loan or financing arrangement, to a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment as any
incentive or inducement to locate video terminals in that

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establishment. Of the after-tax profits from a video gaming
terminal, 50% shall be paid to the terminal operator and 50%
shall be paid to the licensed establishment, licensed truck
stop establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment, notwithstanding any agreement to the contrary.
A video terminal operator that violates one or more
requirements of this subsection is guilty of a Class 4 felony
and is subject to termination of his or her license by the
Board.
(d) Licensed technician. A person may not service,
maintain, or repair a video gaming terminal in this State
unless he or she (1) has a valid technician's license issued
under this Act, (2) is a terminal operator, or (3) is employed
by a terminal operator, distributor, or manufacturer.
(d-5) Licensed terminal handler. No person, including, but
not limited to, an employee or independent contractor working
for a manufacturer, distributor, supplier, technician, or
terminal operator licensed pursuant to this Act, shall have
possession or control of a video gaming terminal, or access to
the inner workings of a video gaming terminal, unless that
person possesses a valid terminal handler's license issued
under this Act.
(e) Licensed establishment. No video gaming terminal may be
placed in any licensed establishment, licensed veterans
establishment, licensed truck stop establishment, licensed

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large truck stop establishment, or licensed fraternal
establishment unless the owner or agent of the owner of the
licensed establishment, licensed veterans establishment,
licensed truck stop establishment, licensed large truck stop
establishment, or licensed fraternal establishment has entered
into a written use agreement with the terminal operator for
placement of the terminals. A copy of the use agreement shall
be on file in the terminal operator's place of business and
available for inspection by individuals authorized by the
Board. A licensed establishment, licensed truck stop
establishment, licensed veterans establishment, or licensed
fraternal establishment may operate up to 6 5 video gaming
terminals on its premises at any time. A licensed large truck
stop establishment may operate up to 10 video gaming terminals
on its premises at any time.
(f) (Blank).
(g) Financial interest restrictions. As used in this Act,
"substantial interest" in a partnership, a corporation, an
organization, an association, a business, or a limited
liability company means:
(A) When, with respect to a sole proprietorship, an
individual or his or her spouse owns, operates, manages, or
conducts, directly or indirectly, the organization,
association, or business, or any part thereof; or
(B) When, with respect to a partnership, the individual
or his or her spouse shares in any of the profits, or

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potential profits, of the partnership activities; or
(C) When, with respect to a corporation, an individual
or his or her spouse is an officer or director, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of any class of stock of the
corporation; or
(D) When, with respect to an organization not covered
in (A), (B) or (C) above, an individual or his or her
spouse is an officer or manages the business affairs, or
the individual or his or her spouse is the owner of or
otherwise controls 10% or more of the assets of the
organization; or
(E) When an individual or his or her spouse furnishes
5% or more of the capital, whether in cash, goods, or
services, for the operation of any business, association,
or organization during any calendar year; or
(F) When, with respect to a limited liability company,
an individual or his or her spouse is a member, or the
individual or his or her spouse is a holder, directly or
beneficially, of 5% or more of the membership interest of
the limited liability company.
For purposes of this subsection (g), "individual" includes
all individuals or their spouses whose combined interest would
qualify as a substantial interest under this subsection (g) and
whose activities with respect to an organization, association,
or business are so closely aligned or coordinated as to

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constitute the activities of a single entity.
(h) Location restriction. A licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment that is (i) located within 1,000 feet of
a facility operated by an organization licensee licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Riverboat Gambling Act or
(ii) located within 100 feet of a school or a place of worship
under the Religious Corporation Act, is ineligible to operate a
video gaming terminal. The location restrictions in this
subsection (h) do not apply if (A) a facility operated by an
organization licensee, a school, or a place of worship moves to
or is established within the restricted area after a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment becomes
licensed under this Act or (B) a school or place of worship
moves to or is established within the restricted area after a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment obtains its
original liquor license. For the purpose of this subsection,
"school" means an elementary or secondary public school, or an
elementary or secondary private school registered with or
recognized by the State Board of Education.

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Notwithstanding the provisions of this subsection (h), the
Board may waive the requirement that a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment not be located within 1,000 feet from a
facility operated by an organization licensee licensed under
the Illinois Horse Racing Act of 1975 or the home dock of a
riverboat licensed under the Illinois Riverboat Gambling Act.
The Board shall not grant such waiver if there is any common
ownership or control, shared business activity, or contractual
arrangement of any type between the establishment and the
organization licensee or owners licensee of a riverboat. The
Board shall adopt rules to implement the provisions of this
paragraph.
(h-5) Restrictions on licenses in malls. The Board shall
not grant an application to become a licensed video gaming
location if the Board determines that granting the application
would more likely than not cause a terminal operator,
individually or in combination with other terminal operators,
licensed video gaming location, or other person or entity, to
operate the video gaming terminals in 2 or more licensed video
gaming locations as a single video gaming operation.
(1) In making determinations under this subsection
(h-5), factors to be considered by the Board shall include,
but not be limited to, the following:
(A) the physical aspects of the location;

HB5561 - 666 - LRB101 17547 JWD 66965 b
(B) the ownership, control, or management of the
location;
(C) any arrangements, understandings, or
agreements, written or otherwise, among or involving
any persons or entities that involve the conducting of
any video gaming business or the sharing of costs or
revenues; and
(D) the manner in which any terminal operator or
other related entity markets, advertises, or otherwise
describes any location or locations to any other person
or entity or to the public.
(2) The Board shall presume, subject to rebuttal, that
the granting of an application to become a licensed video
gaming location within a mall will cause a terminal
operator, individually or in combination with other
persons or entities, to operate the video gaming terminals
in 2 or more licensed video gaming locations as a single
video gaming operation if the Board determines that
granting the license would create a local concentration of
licensed video gaming locations.
For the purposes of this subsection (h-5):
"Mall" means a building, or adjoining or connected
buildings, containing 4 or more separate locations.
"Video gaming operation" means the conducting of video
gaming and all related activities.
"Location" means a space within a mall containing a

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separate business, a place for a separate business, or a place
subject to a separate leasing arrangement by the mall owner.
"Licensed video gaming location" means a licensed
establishment, licensed fraternal establishment, licensed
veterans establishment, licensed truck stop establishment, or
licensed large truck stop.
"Local concentration of licensed video gaming locations"
means that the combined number of licensed video gaming
locations within a mall exceed half of the separate locations
within the mall.
(i) Undue economic concentration. In addition to
considering all other requirements under this Act, in deciding
whether to approve the operation of video gaming terminals by a
terminal operator in a location, the Board shall consider the
impact of any economic concentration of such operation of video
gaming terminals. The Board shall not allow a terminal operator
to operate video gaming terminals if the Board determines such
operation will result in undue economic concentration. For
purposes of this Section, "undue economic concentration" means
that a terminal operator would have such actual or potential
influence over video gaming terminals in Illinois as to:
(1) substantially impede or suppress competition among
terminal operators;
(2) adversely impact the economic stability of the
video gaming industry in Illinois; or
(3) negatively impact the purposes of the Video Gaming

HB5561 - 668 - LRB101 17547 JWD 66965 b
Act.
The Board shall adopt rules concerning undue economic
concentration with respect to the operation of video gaming
terminals in Illinois. The rules shall include, but not be
limited to, (i) limitations on the number of video gaming
terminals operated by any terminal operator within a defined
geographic radius and (ii) guidelines on the discontinuation of
operation of any such video gaming terminals the Board
determines will cause undue economic concentration.
(j) The provisions of the Illinois Antitrust Act are fully
and equally applicable to the activities of any licensee under
this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/30)
Sec. 30. Multiple types of licenses prohibited. A video
gaming terminal manufacturer may not be licensed as a video
gaming terminal operator or own, manage, or control a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
be licensed to sell only to persons having a valid
distributor's license or, if the manufacturer also holds a
valid distributor's license, to sell, distribute, lease, or
market to persons having a valid terminal operator's license. A
video gaming terminal distributor may not be licensed as a

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video gaming terminal operator or own, manage, or control a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
only contract with a licensed terminal operator. A video gaming
terminal operator may not be licensed as a video gaming
terminal manufacturer or distributor or own, manage, or control
a licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment, and shall
be licensed only to contract with licensed distributors and
licensed establishments, licensed truck stop establishments,
licensed large truck stop establishments, licensed fraternal
establishments, and licensed veterans establishments. An owner
or manager of a licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment may not be licensed as a video gaming terminal
manufacturer, distributor, or operator, and shall only
contract with a licensed operator to place and service this
equipment.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/35)
Sec. 35. Display of license; confiscation; violation as
felony.

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(a) Each video gaming terminal shall be licensed by the
Board before placement or operation on the premises of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment. The license
of each video gaming terminal shall be maintained at the
location where the video gaming terminal is operated. Failure
to do so is a petty offense with a fine not to exceed $100. Any
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment used for the
conduct of gambling games in violation of this Act shall be
considered a gambling place in violation of Section 28-3 of the
Criminal Code of 2012. Every gambling device found in a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment operating
gambling games in violation of this Act shall be subject to
seizure, confiscation, and destruction as provided in Section
28-5 of the Criminal Code of 2012. Any license issued under the
Liquor Control Act of 1934 to any owner or operator of a
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment that
operates or permits the operation of a video gaming terminal
within its establishment in violation of this Act shall be

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immediately revoked. No person may own, operate, have in his or
her possession or custody or under his or her control, or
permit to be kept in any place under his or her possession or
control, any device that awards credits and contains a circuit,
meter, or switch capable of removing and recording the removal
of credits when the award of credits is dependent upon chance.
Nothing in this Section shall be deemed to prohibit the use
of a game device only if the game device is used in an activity
that is not gambling under subsection (b) of Section 28-1 of
the Criminal Code of 2012.
A violation of this Section is a Class 4 felony. All
devices that are owned, operated, or possessed in violation of
this Section are hereby declared to be public nuisances and
shall be subject to seizure, confiscation, and destruction as
provided in Section 28-5 of the Criminal Code of 2012.
The provisions of this Section do not apply to devices or
electronic video game terminals licensed pursuant to this Act.
A video gaming terminal operated for amusement only and bearing
a valid amusement tax sticker shall not be subject to this
Section until 30 days after the Board establishes that the
central communications system is functional.
(b) (1) The odds of winning each video game shall be posted
on or near each video gaming terminal. The manner in which the
odds are calculated and how they are posted shall be determined
by the Board by rule.
(2) No video gaming terminal licensed under this Act may be

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played except during the legal hours of operation allowed for
the consumption of alcoholic beverages at the licensed
establishment, licensed fraternal establishment, or licensed
veterans establishment. A licensed establishment, licensed
fraternal establishment, or licensed veterans establishment
that violates this subsection is subject to termination of its
license by the Board.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, and licensed veterans establishment shall be
licensed by the Board. The Board may issue or deny a license
under this Act to any person pursuant to the same criteria set
forth in Section 9 of the Illinois Riverboat Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under the
significant influence or control of such a person. For the
purposes of this Act, "facilitated, enabled, or participated in
the use of coin-operated amusement devices for gambling

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purposes" means that the person has been convicted of any
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012. If there is pending legal action against
a person for any such violation, then the Board shall delay the
licensure of that person until the legal action is resolved.
(b) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall submit to a background investigation
conducted by the Board with the assistance of the State Police
or other law enforcement. To the extent that the corporate
structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a publicly
or non-publicly held corporation, (v) each stockholder of a
non-publicly held corporation, (vi) each stockholder of 5% or
more of a publicly held corporation, or (vii) each stockholder
of 5% or more in a parent or subsidiary corporation.
(c) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop

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establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall disclose the identity of every person,
association, trust, corporation, or limited liability company
having a greater than 1% direct or indirect pecuniary interest
in the video gaming terminal operation for which the license is
sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of the beneficiaries; if
a corporation, the names and addresses of all stockholders and
directors; if a limited liability company, the names and
addresses of all members; or if a partnership, the names and
addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment if that
person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public interests
of the State or to the security and integrity of video
gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or

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(3) present questionable business practices and
financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the satisfaction
of the Board. The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of video gaming in this State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler........................$100
(7) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment...............................$100
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000

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(4) Supplier..............................$2,000
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment..........................$100
(7) Video gaming terminal...................$100
(8) Terminal Handler............................$100
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall equally split the fees specified
in item (7) of subsection (g).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/55)
Sec. 55. Precondition for licensed location. In all cases
of application for a licensed location, to operate a video
gaming terminal, each licensed establishment, licensed
fraternal establishment, or licensed veterans establishment
shall possess a valid liquor license issued by the Illinois
Liquor Control Commission in effect at the time of application
and at all times thereafter during which a video gaming
terminal is made available to the public for play at that
location. Video gaming terminals in a licensed location shall
be operated only during the same hours of operation generally

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permitted to holders of a license under the Liquor Control Act
of 1934 within the unit of local government in which they are
located. A licensed truck stop establishment or licensed large
truck stop establishment that does not hold a liquor license
may operate video gaming terminals on a continuous basis. A
licensed fraternal establishment or licensed veterans
establishment that does not hold a liquor license may operate
video gaming terminals if (i) the establishment is located in a
county with a population between 6,500 and 7,000, based on the
2000 U.S. Census, (ii) the county prohibits by ordinance the
sale of alcohol, and (iii) the establishment is in a portion of
the county where the sale of alcohol is prohibited. A licensed
fraternal establishment or licensed veterans establishment
that does not hold a liquor license may operate video gaming
terminals if (i) the establishment is located in a municipality
within a county with a population between 8,500 and 9,000 based
on the 2000 U.S. Census and (ii) the municipality or county
prohibits or limits the sale of alcohol by ordinance in a way
that prohibits the establishment from selling alcohol.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/58)
Sec. 58. Location of terminals. Video gaming terminals
must be located in an area restricted to persons over 21 years
of age the entrance to which is within the view of at least one
employee, who is over 21 years of age, of the establishment in

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which they are located. The placement of video gaming terminals
in licensed establishments, licensed truck stop
establishments, licensed large truck stop establishments,
licensed fraternal establishments, and licensed veterans
establishments shall be subject to the rules promulgated by the
Board pursuant to the Illinois Administrative Procedure Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/60)
Sec. 60. Imposition and distribution of tax.
(a) A tax of 30% is imposed on net terminal income and
shall be collected by the Board.
(b) Of the tax collected under this subsection (a) Section,
five-sixths shall be deposited into the Capital Projects Fund
and one-sixth shall be deposited into the Local Government
Video Gaming Distributive Fund.
(b) Beginning on July 1, 2019, an additional tax of 3% is
imposed on net terminal income and shall be collected by the
Board.
Beginning on July 1, 2020, an additional tax of 1% is
imposed on net terminal income and shall be collected by the
Board.
The tax collected under this subsection (b) shall be
deposited into the Capital Projects Fund.
(c) Revenues generated from the play of video gaming
terminals shall be deposited by the terminal operator, who is

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responsible for tax payments, in a specially created, separate
bank account maintained by the video gaming terminal operator
to allow for electronic fund transfers of moneys for tax
payment.
(d) Each licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall maintain an adequate video gaming fund,
with the amount to be determined by the Board.
(e) The State's percentage of net terminal income shall be
reported and remitted to the Board within 15 days after the
15th day of each month and within 15 days after the end of each
month by the video terminal operator. A video terminal operator
who falsely reports or fails to report the amount due required
by this Section is guilty of a Class 4 felony and is subject to
termination of his or her license by the Board. Each video
terminal operator shall keep a record of net terminal income in
such form as the Board may require. All payments not remitted
when due shall be paid together with a penalty assessment on
the unpaid balance at a rate of 1.5% per month.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/79)
Sec. 79. Investigators. Investigators appointed by the
Board pursuant to the powers conferred upon the Board by
paragraph (20.6) of subsection (c) of Section 5 of the Illinois

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Riverboat Gambling Act and Section 80 of this Act shall have
authority to conduct investigations, searches, seizures,
arrests, and other duties imposed under this Act and the
Illinois Riverboat Gambling Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these powers
shall be (1) limited to offenses or violations occurring or
committed in connection with conduct subject to this Act,
including, but not limited to, the manufacture, distribution,
supply, operation, placement, service, maintenance, or play of
video gaming terminals and the distribution of profits and
collection of revenues resulting from such play, and (2)
exercised, to the fullest extent practicable, in cooperation
with the local police department of the applicable municipality
or, if these powers are exercised outside the boundaries of an
incorporated municipality or within a municipality that does
not have its own police department, in cooperation with the
police department whose jurisdiction encompasses the
applicable locality.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/80)
Sec. 80. Applicability of Illinois Riverboat Gambling Act.
The provisions of the Illinois Riverboat Gambling Act, and all
rules promulgated thereunder, shall apply to the Video Gaming
Act, except where there is a conflict between the 2 Acts. In

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the event of a conflict between the 2 Acts, the provisions of
the Illinois Gambling Act shall prevail. All current supplier
licensees under the Illinois Riverboat Gambling Act shall be
entitled to licensure under the Video Gaming Act as
manufacturers, distributors, or suppliers without additional
Board investigation or approval, except by vote of the Board;
however, they are required to pay application and annual fees
under this Act. All provisions of the Uniform Penalty and
Interest Act shall apply, as far as practicable, to the subject
matter of this Act to the same extent as if such provisions
were included herein.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-440. The Liquor Control Act of 1934 is amended
by changing Sections 5-1 and 6-30 as follows:
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Craft Distiller, Class 11. Class 2 Craft Distiller,
Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,

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(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit,
(t) Brewer warehouse permit,
(u) Distilling pub license,
(v) Craft distiller warehouse permit.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,

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

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person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634), is a holder of a
second-class wine-maker's license and annually produces more
than 25,000 gallons of its own wine and who distributes its
wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with Public Act 95-634.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license, which may only be held
by a class 1 craft distiller licensee or class 2 craft
distiller licensee but not held by both a class 1 craft
distiller licensee and a class 2 craft distiller licensee,
shall grant all rights conveyed by either: (i) a class 1 craft
distiller license if the craft distiller holds a class 1 craft

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distiller license; or (ii) a class 2 craft distiller licensee
if the craft distiller holds a class 2 craft distiller license.
Class 10. A class 1 craft distiller license, which may only
be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
50,000 gallons of spirits per year provided that the class 1
craft distiller licensee does not manufacture more than a
combined 50,000 gallons of spirits per year and is not a member
of or affiliated with, directly or indirectly, a manufacturer
that produces more than 50,000 gallons of spirits per year or
any other alcoholic liquor. A class 1 craft distiller licensee
may make sales and deliveries to importing distributors and
distributors and to retail licensees in accordance with the
conditions set forth in paragraph (19) of subsection (a) of
Section 3-12 of this Act. However, the aggregate amount of
spirits sold to non-licensees and sold or delivered to retail
licensees may not exceed 5,000 gallons per year.
A class 1 craft distiller licensee may sell up to 5,000
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the State Commission
pursuant to Section 6-4 of this Act. A class 1 craft distiller
license holder may store such spirits at a non-contiguous
licensed location, but at no time shall a class 1 craft
distiller license holder directly or indirectly produce in the
aggregate more than 50,000 gallons of spirits per year.
A class 1 craft distiller licensee may hold more than one

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class 1 craft distiller's license. However, a class 1 craft
distiller that holds more than one class 1 craft distiller
license shall not manufacture, in the aggregate, more than
50,000 gallons of spirits by distillation per year and shall
not sell, in the aggregate, more than 5,000 gallons of such
spirits to non-licensees in accordance with an exemption
approved by the State Commission pursuant to Section 6-4 of
this Act.
Class 11. A class 2 craft distiller license, which may only
be issued to a licensed craft distiller or licensed
non-resident dealer, shall allow the manufacture of up to
100,000 gallons of spirits per year provided that the class 2
craft distiller licensee does not manufacture more than a
combined 100,000 gallons of spirits per year and is not a
member of or affiliated with, directly or indirectly, a
manufacturer that produces more than 100,000 gallons of spirits
per year or any other alcoholic liquor. A class 2 craft
distiller licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 craft distiller licensee may
annually transfer up to 100,000 gallons of spirits manufactured
by that class 2 craft distiller licensee to the premises of a
licensed class 2 craft distiller wholly owned and operated by
the same licensee. A class 2 craft distiller may transfer
spirits to a distilling pub wholly owned and operated by the

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class 2 craft distiller subject to the following limitations
and restrictions: (i) the transfer shall not annually exceed
more than 5,000 gallons; (ii) the annual amount transferred
shall reduce the distilling pub's annual permitted production
limit; (iii) all spirits transferred shall be subject to
Article VIII of this Act; (iv) a written record shall be
maintained by the distiller and distilling pub specifying the
amount, date of delivery, and receipt of the product by the
distilling pub; and (v) the distilling pub shall be located no
farther than 80 miles from the class 2 craft distiller's
licensed location.
A class 2 craft distiller shall, prior to transferring
spirits to a distilling pub wholly owned by the class 2 craft
distiller, furnish a written notice to the State Commission of
intent to transfer spirits setting forth the name and address
of the distilling pub and shall annually submit to the State
Commission a verified report identifying the total gallons of
spirits transferred to the distilling pub wholly owned by the
class 2 craft distiller.
A class 2 craft distiller license holder may store such
spirits at a non-contiguous licensed location, but at no time
shall a class 2 craft distiller license holder directly or
indirectly produce in the aggregate more than 100,000 gallons
of spirits per year.
Class 12. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,

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shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act. If the State
Commission provides prior approval, a class 1 brewer may
annually transfer up to 930,000 gallons of beer manufactured by
that class 1 brewer to the premises of a licensed class 1
brewer wholly owned and operated by the same licensee.
Class 13. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually

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transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
A class 2 brewer may transfer beer to a brew pub wholly
owned and operated by the class 2 brewer subject to the
following limitations and restrictions: (i) the transfer shall
not annually exceed more than 31,000 gallons; (ii) the annual
amount transferred shall reduce the brew pub's annual permitted
production limit; (iii) all beer transferred shall be subject
to Article VIII of this Act; (iv) a written record shall be
maintained by the brewer and brew pub specifying the amount,
date of delivery, and receipt of the product by the brew pub;
and (v) the brew pub shall be located no farther than 80 miles
from the class 2 brewer's licensed location.
A class 2 brewer shall, prior to transferring beer to a
brew pub wholly owned by the class 2 brewer, furnish a written
notice to the State Commission of intent to transfer beer
setting forth the name and address of the brew pub and shall
annually submit to the State Commission a verified report
identifying the total gallons of beer transferred to the brew
pub wholly owned by the class 2 brewer.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis

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in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow (i) the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law; (ii) the sale of beer,
cider, or both beer and cider to brewers, class 1 brewers, and
class 2 brewers that, pursuant to subsection (e) of Section 6-4
of this Act, sell beer, cider, or both beer and cider to

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non-licensees at their breweries; and (iii) the sale of
vermouth to class 1 craft distillers and class 2 craft
distillers that, pursuant to subsection (e) of Section 6-4 of
this Act, sell spirits, vermouth, or both spirits and vermouth
to non-licensees at their distilleries. No person licensed as a
distributor shall be granted a non-resident dealer's license.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only. No person licensed as an
importing distributor shall be granted a non-resident dealer's
license.
(d) A retailer's license shall allow the licensee to sell

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and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 shall
deny, limit, remove, or restrict the ability of a holder of a
retailer's license to transfer, deliver, or ship alcoholic
liquor to the purchaser for use or consumption subject to any
applicable local law or ordinance. Any retail license issued to
a manufacturer shall only permit the manufacturer to sell beer
at retail on the premises actually occupied by the
manufacturer. For the purpose of further describing the type of
business conducted at a retail licensed premises, a retailer's
licensee may be designated by the State Commission as (i) an on
premise consumption retailer, (ii) an off premise sale
retailer, or (iii) a combined on premise consumption and off
premise sale retailer.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or

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consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
Nothing in this Act prohibits an Illinois licensed
distributor from offering credit or a refund for unused,
salable alcoholic liquors to a holder of a special event
retailer's license or the special event retailer's licensee

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from accepting the credit or refund of alcoholic liquors at the
conclusion of the event specified in the license.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any

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riverboat operated under the Riverboat Illinois Gambling Act,
which boat or riverboat maintains a public dining room or
restaurant thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's

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license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;

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and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and

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(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, craft distillers, rectifiers, brewers
or manufacturers or any other party within or without the State
of Illinois in order that alcoholic liquors be shipped to a
distributor, importing distributor or foreign importer,
whether such solicitation or offer is consummated within or
without the State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee

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or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with

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the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale by duly filing such
registration statement, thereby authorizing the non-resident
dealer to proceed to sell such brands at wholesale, and (iii)
the non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form

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of alcoholic liquor purchased from a licensed distributor or
importing distributor, (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee, and (vii)
notwithstanding item (i) of this subsection, brew pubs wholly
owned and operated by the same licensee may combine each
location's production limit of 155,000 gallons of beer per year
and allocate the aggregate total between the wholly owned,
operated, and licensed locations.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July

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1, 2015 manufactured less than 3,720,000 gallons of beer per
year and held a brew pub license on or before July 1, 2015 may
(i) continue to qualify for and hold that brew pub license for
the licensed premises and (ii) manufacture more than 3,720,000
gallons of beer per year and continue to qualify for and hold
that brew pub license if that brewer, class 2 brewer, or
non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed. A caterer retailer license shall allow the holder,
a distributor, or an importing distributor to transfer any
inventory to and from the holder's retail premises and shall
allow the holder to purchase alcoholic liquor from a
distributor or importing distributor to be delivered directly
to an off-site event.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a holder of a caterer retailer license or a
caterer retailer licensee from accepting a credit or refund for
unused, salable beer, in the event an act of God is the sole

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reason an off-site event is cancelled and if: (i) the holder of
a caterer retailer license has not transferred alcoholic liquor
from its caterer retailer premises to an off-site location;
(ii) the distributor or importing distributor offers the credit
or refund for the unused, salable beer that it delivered to the
off-site premises and not for any unused, salable beer that the
distributor or importing distributor delivered to the caterer
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the caterer retailer's premises.
A caterer retailer license shall allow the holder to transfer
any inventory from any off-site location to its caterer
retailer premises at the conclusion of an off-site event or
engage a distributor or importing distributor to transfer any
inventory from any off-site location to its caterer retailer
premises at the conclusion of an off-site event, provided that
the distributor or importing distributor issues bona fide
charges to the caterer retailer licensee for fuel, labor, and
delivery and the distributor or importing distributor collects
payment from the caterer retailer licensee prior to the
distributor or importing distributor transferring inventory to
the caterer retailer premises.
For purposes of this subsection (o), an "act of God" means
an unforeseeable event, such as a rain or snow storm, hail, a
flood, or a similar event, that is the sole cause of the
cancellation of an off-site, outdoor event.
(p) An auction liquor license shall allow the licensee to

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sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created; to purchase alcoholic
liquor from a distributor or importing distributor to be
delivered directly to the location specified in the license
hereby created; and to sell or offer for sale at retail, only
in the premises specified in the license hereby created, the
transferred or delivered alcoholic liquor for use or
consumption, but not for resale in any form. A special use
permit license may be granted for the following time periods:
one day or less; 2 or more days to a maximum of 15 days per
location in any 12-month period. An applicant for the special
use permit license must also submit with the application proof
satisfactory to the State Commission that the applicant will
provide dram shop liability insurance to the maximum limits and
have local authority approval.
A special use permit license shall allow the holder to
transfer any inventory from the holder's special use premises

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to its retail premises at the conclusion of the special use
event or engage a distributor or importing distributor to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of an off-site event,
provided that the distributor or importing distributor issues
bona fide charges to the special use permit licensee for fuel,
labor, and delivery and the distributor or importing
distributor collects payment from the retail licensee prior to
the distributor or importing distributor transferring
inventory to the retail premises.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a special use permit licensee or a special use
permit licensee from accepting a credit or refund for unused,
salable beer at the conclusion of the event specified in the
license if: (i) the holder of the special use permit license
has not transferred alcoholic liquor from its retail licensed
premises to the premises specified in the special use permit
license; (ii) the distributor or importing distributor offers
the credit or refund for the unused, salable beer that it
delivered to the premises specified in the special use permit
license and not for any unused, salable beer that the
distributor or importing distributor delivered to the
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the retailer premises.
(r) A winery shipper's license shall allow a person with a

HB5561 - 706 - LRB101 17547 JWD 66965 b
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf

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of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year and upon
request by the State Commission or the Department of Revenue,

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file with the State Commission a statement detailing each
shipment made to an Illinois resident. The statement shall
include the name and address of the third-party provider filing
the statement, the time period covered by the statement, and
the following information:
(1) the name, address, and license number of the winery
shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests a
statement under this paragraph, the third-party provider must
provide that statement no later than 30 days after the request
is made. Any books, records, supporting papers, and documents
containing information and data relating to a statement under
this paragraph shall be kept and preserved for a period of 3
years, unless their destruction sooner is authorized, in
writing, by the Director of Revenue, and shall be open and
available to inspection by the Director of Revenue or the State
Commission or any duly authorized officer, agent, or employee
of the State Commission or the Department of Revenue, at all
times during business hours of the day. Any person who violates
any provision of this paragraph or any rule of the State
Commission for the administration and enforcement of the
provisions of this paragraph is guilty of a Class C
misdemeanor. In case of a continuing violation, each day's
continuance thereof shall be a separate and distinct offense.

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The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.

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A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow an
Illinois licensed class 1 craft distiller or class 2 craft
distiller to transfer a portion of its alcoholic liquor
inventory from its class 1 craft distiller or class 2 craft
distiller licensed premises to the premises specified in the
license hereby created and to conduct a sampling, only in the
premises specified in the license hereby created, of the
transferred alcoholic liquor in accordance with subsection (c)
of Section 6-31 of this Act. The transferred alcoholic liquor
may not be sold or resold in any form. An applicant for the
craft distiller tasting permit license must also submit with
the application proof satisfactory to the State Commission that

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the applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(t) A brewer warehouse permit may be issued to the holder
of a class 1 brewer license or a class 2 brewer license. If the
holder of the permit is a class 1 brewer licensee, the brewer
warehouse permit shall allow the holder to store or warehouse
up to 930,000 gallons of tax-determined beer manufactured by
the holder of the permit at the premises specified on the
permit. If the holder of the permit is a class 2 brewer
licensee, the brewer warehouse permit shall allow the holder to
store or warehouse up to 3,720,000 gallons of tax-determined
beer manufactured by the holder of the permit at the premises
specified on the permit. Sales to non-licensees are prohibited
at the premises specified in the brewer warehouse permit.
(u) A distilling pub license shall allow the licensee to
only (i) manufacture up to 5,000 gallons of spirits per year
only on the premises specified in the license, (ii) make sales
of the spirits manufactured on the premises or, with the
approval of the State Commission, spirits manufactured on
another distilling pub licensed premises that is wholly owned
and operated by the same licensee to importing distributors and
distributors and to non-licensees for use and consumption,
(iii) store the spirits upon the premises, (iv) sell and offer
for sale at retail from the licensed premises for off-premises
consumption no more than 5,000 gallons per year so long as such
sales are only made in-person, (v) sell and offer for sale at

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retail for use and consumption on the premises specified in the
license any form of alcoholic liquor purchased from a licensed
distributor or importing distributor, and (vi) with the prior
approval of the State Commission, annually transfer no more
than 5,000 gallons of spirits manufactured on the premises to a
licensed distilling pub wholly owned and operated by the same
licensee.
A distilling pub licensee shall not under any circumstance
sell or offer for sale spirits manufactured by the distilling
pub licensee to retail licensees.
A person who holds a class 2 craft distiller license may
simultaneously hold a distilling pub license if the class 2
craft distiller (i) does not, under any circumstance, sell or
offer for sale spirits manufactured by the class 2 craft
distiller to retail licensees; (ii) does not hold more than 3
distilling pub licenses in this State; (iii) does not
manufacture more than a combined 100,000 gallons of spirits per
year, including the spirits manufactured at the distilling pub;
and (iv) is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year or any other alcoholic liquor.
(v) A craft distiller warehouse permit may be issued to the
holder of a class 1 craft distiller or class 2 craft distiller
license. The craft distiller warehouse permit shall allow the
holder to store or warehouse up to 500,000 gallons of spirits
manufactured by the holder of the permit at the premises

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specified on the permit. Sales to non-licensees are prohibited
at the premises specified in the craft distiller warehouse
permit.
(Source: P.A. 100-17, eff. 6-30-17; 100-201, eff. 8-18-17;
100-816, eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff.
8-23-18; 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 101-81,
eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 8-23-19;
101-615, eff. 12-20-19.)
(235 ILCS 5/6-30) (from Ch. 43, par. 144f)
Sec. 6-30. Notwithstanding any other provision of this Act,
the Illinois Gaming Board shall have exclusive authority to
establish the hours for sale and consumption of alcoholic
liquor on board a riverboat during riverboat gambling
excursions and in a casino conducted in accordance with the
Illinois Riverboat Gambling Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-450. The Illinois Public Aid Code is amended by
changing Section 10-17.15 as follows:
(305 ILCS 5/10-17.15)
Sec. 10-17.15. Certification of information to State
gaming licensees.
(a) For purposes of this Section, "State gaming licensee"
means, as applicable, an organization licensee or advance

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deposit wagering licensee licensed under the Illinois Horse
Racing Act of 1975, an owners licensee licensed under the
Illinois Riverboat Gambling Act, or a licensee that operates,
under any law of this State, one or more facilities or gaming
locations at which lawful gambling is authorized and licensed
as provided in the Illinois Riverboat Gambling Act.
(b) The Department may provide, by rule, for certification
to any State gaming licensee of past due child support owed by
a responsible relative under a support order entered by a court
or administrative body of this or any other State on behalf of
a resident or non-resident receiving child support services
under this Article in accordance with the requirements of Title
IV-D, Part D, of the Social Security Act. The State gaming
licensee shall have the ability to withhold from winnings
required to be reported to the Internal Revenue Service on Form
W-2G, up to the full amount of winnings necessary to pay the
winner's past due child support. The rule shall provide for
notice to and an opportunity to be heard by each responsible
relative affected and any final administrative decision
rendered by the Department shall be reviewed only under and in
accordance with the Administrative Review Law.
(c) For withholding of winnings, the State gaming licensee
shall be entitled to an administrative fee not to exceed the
lesser of 4% of the total amount of cash winnings paid to the
gambling winner or $150.
(d) In no event may the total amount withheld from the cash

HB5561 - 715 - LRB101 17547 JWD 66965 b
payout, including the administrative fee, exceed the total cash
winnings claimed by the obligor. If the cash payout claimed is
greater than the amount sufficient to satisfy the obligor's
delinquent child support payments, the State gaming licensee
shall pay the obligor the remaining balance of the payout, less
the administrative fee authorized by subsection (c) of this
Section, at the time it is claimed.
(e) A State gaming licensee who in good faith complies with
the requirements of this Section shall not be liable to the
gaming winner or any other individual or entity.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-460. The Firearm Concealed Carry Act is amended
by changing Section 65 as follows:
(430 ILCS 66/65)
Sec. 65. Prohibited areas.
(a) A licensee under this Act shall not knowingly carry a
firearm on or into:
(1) Any building, real property, and parking area under
the control of a public or private elementary or secondary
school.
(2) Any building, real property, and parking area under
the control of a pre-school or child care facility,
including any room or portion of a building under the
control of a pre-school or child care facility. Nothing in

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this paragraph shall prevent the operator of a child care
facility in a family home from owning or possessing a
firearm in the home or license under this Act, if no child
under child care at the home is present in the home or the
firearm in the home is stored in a locked container when a
child under child care at the home is present in the home.
(3) Any building, parking area, or portion of a
building under the control of an officer of the executive
or legislative branch of government, provided that nothing
in this paragraph shall prohibit a licensee from carrying a
concealed firearm onto the real property, bikeway, or trail
in a park regulated by the Department of Natural Resources
or any other designated public hunting area or building
where firearm possession is permitted as established by the
Department of Natural Resources under Section 1.8 of the
Wildlife Code.
(4) Any building designated for matters before a
circuit court, appellate court, or the Supreme Court, or
any building or portion of a building under the control of
the Supreme Court.
(5) Any building or portion of a building under the
control of a unit of local government.
(6) Any building, real property, and parking area under
the control of an adult or juvenile detention or
correctional institution, prison, or jail.
(7) Any building, real property, and parking area under

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the control of a public or private hospital or hospital
affiliate, mental health facility, or nursing home.
(8) Any bus, train, or form of transportation paid for
in whole or in part with public funds, and any building,
real property, and parking area under the control of a
public transportation facility paid for in whole or in part
with public funds.
(9) Any building, real property, and parking area under
the control of an establishment that serves alcohol on its
premises, if more than 50% of the establishment's gross
receipts within the prior 3 months is from the sale of
alcohol. The owner of an establishment who knowingly fails
to prohibit concealed firearms on its premises as provided
in this paragraph or who knowingly makes a false statement
or record to avoid the prohibition on concealed firearms
under this paragraph is subject to the penalty under
subsection (c-5) of Section 10-1 of the Liquor Control Act
of 1934.
(10) Any public gathering or special event conducted on
property open to the public that requires the issuance of a
permit from the unit of local government, provided this
prohibition shall not apply to a licensee who must walk
through a public gathering in order to access his or her
residence, place of business, or vehicle.
(11) Any building or real property that has been issued
a Special Event Retailer's license as defined in Section

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1-3.17.1 of the Liquor Control Act during the time
designated for the sale of alcohol by the Special Event
Retailer's license, or a Special use permit license as
defined in subsection (q) of Section 5-1 of the Liquor
Control Act during the time designated for the sale of
alcohol by the Special use permit license.
(12) Any public playground.
(13) Any public park, athletic area, or athletic
facility under the control of a municipality or park
district, provided nothing in this Section shall prohibit a
licensee from carrying a concealed firearm while on a trail
or bikeway if only a portion of the trail or bikeway
includes a public park.
(14) Any real property under the control of the Cook
County Forest Preserve District.
(15) Any building, classroom, laboratory, medical
clinic, hospital, artistic venue, athletic venue,
entertainment venue, officially recognized
university-related organization property, whether owned or
leased, and any real property, including parking areas,
sidewalks, and common areas under the control of a public
or private community college, college, or university.
(16) Any building, real property, or parking area under
the control of a gaming facility licensed under the
Illinois Riverboat Gambling Act or the Illinois Horse
Racing Act of 1975, including an inter-track wagering

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location licensee.
(17) Any stadium, arena, or the real property or
parking area under the control of a stadium, arena, or any
collegiate or professional sporting event.
(18) Any building, real property, or parking area under
the control of a public library.
(19) Any building, real property, or parking area under
the control of an airport.
(20) Any building, real property, or parking area under
the control of an amusement park.
(21) Any building, real property, or parking area under
the control of a zoo or museum.
(22) Any street, driveway, parking area, property,
building, or facility, owned, leased, controlled, or used
by a nuclear energy, storage, weapons, or development site
or facility regulated by the federal Nuclear Regulatory
Commission. The licensee shall not under any circumstance
store a firearm or ammunition in his or her vehicle or in a
compartment or container within a vehicle located anywhere
in or on the street, driveway, parking area, property,
building, or facility described in this paragraph.
(23) Any area where firearms are prohibited under
federal law.
(a-5) Nothing in this Act shall prohibit a public or
private community college, college, or university from:
(1) prohibiting persons from carrying a firearm within

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a vehicle owned, leased, or controlled by the college or
university;
(2) developing resolutions, regulations, or policies
regarding student, employee, or visitor misconduct and
discipline, including suspension and expulsion;
(3) developing resolutions, regulations, or policies
regarding the storage or maintenance of firearms, which
must include designated areas where persons can park
vehicles that carry firearms; and
(4) permitting the carrying or use of firearms for the
purpose of instruction and curriculum of officially
recognized programs, including but not limited to military
science and law enforcement training programs, or in any
designated area used for hunting purposes or target
shooting.
(a-10) The owner of private real property of any type may
prohibit the carrying of concealed firearms on the property
under his or her control. The owner must post a sign in
accordance with subsection (d) of this Section indicating that
firearms are prohibited on the property, unless the property is
a private residence.
(b) Notwithstanding subsections (a), (a-5), and (a-10) of
this Section except under paragraph (22) or (23) of subsection
(a), any licensee prohibited from carrying a concealed firearm
into the parking area of a prohibited location specified in
subsection (a), (a-5), or (a-10) of this Section shall be

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permitted to carry a concealed firearm on or about his or her
person within a vehicle into the parking area and may store a
firearm or ammunition concealed in a case within a locked
vehicle or locked container out of plain view within the
vehicle in the parking area. A licensee may carry a concealed
firearm in the immediate area surrounding his or her vehicle
within a prohibited parking lot area only for the limited
purpose of storing or retrieving a firearm within the vehicle's
trunk. For purposes of this subsection, "case" includes a glove
compartment or console that completely encloses the concealed
firearm or ammunition, the trunk of the vehicle, or a firearm
carrying box, shipping box, or other container.
(c) A licensee shall not be in violation of this Section
while he or she is traveling along a public right of way that
touches or crosses any of the premises under subsection (a),
(a-5), or (a-10) of this Section if the concealed firearm is
carried on his or her person in accordance with the provisions
of this Act or is being transported in a vehicle by the
licensee in accordance with all other applicable provisions of
law.
(d) Signs stating that the carrying of firearms is
prohibited shall be clearly and conspicuously posted at the
entrance of a building, premises, or real property specified in
this Section as a prohibited area, unless the building or
premises is a private residence. Signs shall be of a uniform
design as established by the Department and shall be 4 inches

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by 6 inches in size. The Department shall adopt rules for
standardized signs to be used under this subsection.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-470. The Criminal Code of 2012 is amended by
changing Sections 28-1.1, 28-2, and 28-7 as follows:
(720 ILCS 5/28-1.1) (from Ch. 38, par. 28-1.1)
Sec. 28-1.1. Syndicated gambling.
(a) Declaration of Purpose. Recognizing the close
relationship between professional gambling and other organized
crime, it is declared to be the policy of the legislature to
restrain persons from engaging in the business of gambling for
profit in this State. This Section shall be liberally construed
and administered with a view to carrying out this policy.
(b) A person commits syndicated gambling when he or she
operates a "policy game" or engages in the business of
bookmaking.
(c) A person "operates a policy game" when he or she
knowingly uses any premises or property for the purpose of
receiving or knowingly does receive from what is commonly
called "policy":
(1) money from a person other than the bettor or player
whose bets or plays are represented by the money; or
(2) written "policy game" records, made or used over
any period of time, from a person other than the bettor or

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player whose bets or plays are represented by the written
record.
(d) A person engages in bookmaking when he or she knowingly
receives or accepts more than five bets or wagers upon the
result of any trials or contests of skill, speed or power of
endurance or upon any lot, chance, casualty, unknown or
contingent event whatsoever, which bets or wagers shall be of
such size that the total of the amounts of money paid or
promised to be paid to the bookmaker on account thereof shall
exceed $2,000. Bookmaking is the receiving or accepting of bets
or wagers regardless of the form or manner in which the
bookmaker records them.
(e) Participants in any of the following activities shall
not be convicted of syndicated gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance;
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in the contest;
(3) Pari-mutuel betting as authorized by law of this
State;
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly

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thereof, for transportation in interstate or foreign
commerce to any place outside this State when the
transportation is not prohibited by any applicable Federal
law;
(5) Raffles and poker runs when conducted in accordance
with the Raffles and Poker Runs Act;
(6) Gambling games conducted on riverboats, in
casinos, or at organization gaming facilities when
authorized by the Illinois Riverboat Gambling Act;
(7) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act; and
(8) Savings promotion raffles authorized under Section
5g of the Illinois Banking Act, Section 7008 of the Savings
Bank Act, Section 42.7 of the Illinois Credit Union Act,
Section 5136B of the National Bank Act (12 U.S.C. 25a), or
Section 4 of the Home Owners' Loan Act (12 U.S.C. 1463).
(f) Sentence. Syndicated gambling is a Class 3 felony.
(Source: P.A. 101-31, eff. 6-28-19.)
(720 ILCS 5/28-2) (from Ch. 38, par. 28-2)
Sec. 28-2. Definitions.
(a) A "gambling device" is any clock, tape machine, slot
machine or other machines or device for the reception of money

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or other thing of value on chance or skill or upon the action
of which money or other thing of value is staked, hazarded,
bet, won, or lost; or any mechanism, furniture, fixture,
equipment, or other device designed primarily for use in a
gambling place. A "gambling device" does not include:
(1) A coin-in-the-slot operated mechanical device
played for amusement which rewards the player with the
right to replay such mechanical device, which device is so
constructed or devised as to make such result of the
operation thereof depend in part upon the skill of the
player and which returns to the player thereof no money,
property, or right to receive money or property.
(2) Vending machines by which full and adequate return
is made for the money invested and in which there is no
element of chance or hazard.
(3) A crane game. For the purposes of this paragraph
(3), a "crane game" is an amusement device involving skill,
if it rewards the player exclusively with merchandise
contained within the amusement device proper and limited to
toys, novelties, and prizes other than currency, each
having a wholesale value which is not more than $25.
(4) A redemption machine. For the purposes of this
paragraph (4), a "redemption machine" is a single-player or
multi-player amusement device involving a game, the object
of which is throwing, rolling, bowling, shooting, placing,
or propelling a ball or other object that is either

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physical or computer generated on a display or with lights
into, upon, or against a hole or other target that is
either physical or computer generated on a display or with
lights, or stopping, by physical, mechanical, or
electronic means, a moving object that is either physical
or computer generated on a display or with lights into,
upon, or against a hole or other target that is either
physical or computer generated on a display or with lights,
provided that all of the following conditions are met:
(A) The outcome of the game is predominantly
determined by the skill of the player.
(B) The award of the prize is based solely upon the
player's achieving the object of the game or otherwise
upon the player's score.
(C) Only merchandise prizes are awarded.
(D) The wholesale value of prizes awarded in lieu
of tickets or tokens for single play of the device does
not exceed $25.
(E) The redemption value of tickets, tokens, and
other representations of value, which may be
accumulated by players to redeem prizes of greater
value, for a single play of the device does not exceed
$25.
(5) Video gaming terminals at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal

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establishment, or licensed veterans establishment licensed
in accordance with the Video Gaming Act.
(a-5) "Internet" means an interactive computer service or
system or an information service, system, or access software
provider that provides or enables computer access by multiple
users to a computer server, and includes, but is not limited
to, an information service, system, or access software provider
that provides access to a network system commonly known as the
Internet, or any comparable system or service and also
includes, but is not limited to, a World Wide Web page,
newsgroup, message board, mailing list, or chat area on any
interactive computer service or system or other online service.
(a-6) "Access" has the meaning ascribed to the term in
Section 17-55.
(a-7) "Computer" has the meaning ascribed to the term in
Section 17-0.5.
(b) A "lottery" is any scheme or procedure whereby one or
more prizes are distributed by chance among persons who have
paid or promised consideration for a chance to win such prizes,
whether such scheme or procedure is called a lottery, raffle,
gift, sale, or some other name, excluding savings promotion
raffles authorized under Section 5g of the Illinois Banking
Act, Section 7008 of the Savings Bank Act, Section 42.7 of the
Illinois Credit Union Act, Section 5136B of the National Bank
Act (12 U.S.C. 25a), or Section 4 of the Home Owners' Loan Act
(12 U.S.C. 1463).

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(c) A "policy game" is any scheme or procedure whereby a
person promises or guarantees by any instrument, bill,
certificate, writing, token, or other device that any
particular number, character, ticket, or certificate shall in
the event of any contingency in the nature of a lottery entitle
the purchaser or holder to receive money, property, or evidence
of debt.
(Source: P.A. 101-31, eff. 6-28-19; 101-87, eff. 1-1-20;
revised 8-6-19.)
(720 ILCS 5/28-7) (from Ch. 38, par. 28-7)
Sec. 28-7. Gambling contracts void.
(a) All promises, notes, bills, bonds, covenants,
contracts, agreements, judgments, mortgages, or other
securities or conveyances made, given, granted, drawn, or
entered into, or executed by any person whatsoever, where the
whole or any part of the consideration thereof is for any money
or thing of value, won or obtained in violation of any Section
of this Article are null and void.
(b) Any obligation void under this Section may be set aside
and vacated by any court of competent jurisdiction, upon a
complaint filed for that purpose, by the person so granting,
giving, entering into, or executing the same, or by his
executors or administrators, or by any creditor, heir, legatee,
purchaser or other person interested therein; or if a judgment,
the same may be set aside on motion of any person stated above,

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on due notice thereof given.
(c) No assignment of any obligation void under this Section
may in any manner affect the defense of the person giving,
granting, drawing, entering into or executing such obligation,
or the remedies of any person interested therein.
(d) This Section shall not prevent a licensed owner of a
riverboat gambling operation, a casino gambling operation, or
an organization gaming licensee under the Illinois Gambling Act
and the Illinois Horse Racing Act of 1975 from instituting a
cause of action to collect any amount due and owing under an
extension of credit to a riverboat gambling patron as
authorized under Section 11.1 of the Illinois Riverboat
Gambling Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-480. The Payday Loan Reform Act is amended by
changing Section 3-5 as follows:
(815 ILCS 122/3-5)
Sec. 3-5. Licensure.
(a) A license to make a payday loan shall state the
address, including city and state, at which the business is to
be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of
business of the licensee and shall not be transferable or
assignable.

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(b) An application for a license shall be in writing and in
a form prescribed by the Secretary. The Secretary may not issue
a payday loan license unless and until the following findings
are made:
(1) that the financial responsibility, experience,
character, and general fitness of the applicant are such as
to command the confidence of the public and to warrant the
belief that the business will be operated lawfully and
fairly and within the provisions and purposes of this Act;
and
(2) that the applicant has submitted such other
information as the Secretary may deem necessary.
(c) A license shall be issued for no longer than one year,
and no renewal of a license may be provided if a licensee has
substantially violated this Act and has not cured the violation
to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as
attorney-in-fact upon whom all lawful process against the
licensee may be served with the same legal force and validity
as if served on the licensee. A copy of the written
appointment, duly certified, shall be filed in the office of
the Secretary, and a copy thereof certified by the Secretary
shall be sufficient evidence to subject a licensee to
jurisdiction in a court of law. This appointment shall remain
in effect while any liability remains outstanding in this State
against the licensee. When summons is served upon the Secretary

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as attorney-in-fact for a licensee, the Secretary shall
immediately notify the licensee by registered mail, enclosing
the summons and specifying the hour and day of service.
(e) A licensee must pay an annual fee of $1,000. In
addition to the license fee, the reasonable expense of any
examination or hearing by the Secretary under any provisions of
this Act shall be borne by the licensee. If a licensee fails to
renew its license by December 1, its license shall
automatically expire; however, the Secretary, in his or her
discretion, may reinstate an expired license upon:
(1) payment of the annual fee within 30 days of the
date of expiration; and
(2) proof of good cause for failure to renew.
(f) Not more than one place of business shall be maintained
under the same license, but the Secretary may issue more than
one license to the same licensee upon compliance with all the
provisions of this Act governing issuance of a single license.
The location, except those locations already in existence as of
June 1, 2005, may not be within one mile of a horse race track
subject to the Illinois Horse Racing Act of 1975, within one
mile of a facility at which gambling is conducted under the
Illinois Riverboat Gambling Act, within one mile of the
location at which a riverboat subject to the Illinois Riverboat
Gambling Act docks, or within one mile of any State of Illinois
or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans

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under this Act within any office, suite, room, or place of
business in which (1) any loans are offered or made under the
Consumer Installment Loan Act other than title secured loans as
defined in subsection (a) of Section 15 of the Consumer
Installment Loan Act and governed by Title 38, Section 110.330
of the Illinois Administrative Code or (2) any other business
is solicited or engaged in unless the other business is
licensed by the Department or, in the opinion of the Secretary,
the other business would not be contrary to the best interests
of consumers and is authorized by the Secretary in writing.
(g-5) Notwithstanding subsection (g) of this Section, a
licensee may obtain a license under the Consumer Installment
Loan Act (CILA) for the exclusive purpose and use of making
title secured loans, as defined in subsection (a) of Section 15
of CILA and governed by Title 38, Section 110.300 of the
Illinois Administrative Code. A licensee may continue to
service Consumer Installment Loan Act loans that were
outstanding as of the effective date of this amendatory Act of
the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that
shall be available to interested consumers and lenders and the
public. The Secretary shall maintain a toll-free number whereby
consumers may obtain information about licensees. The
Secretary shall also establish a complaint process under which
an aggrieved consumer may file a complaint against a licensee
or non-licensee who violates any provision of this Act.

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(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-500. The Travel Promotion Consumer Protection
Act is amended by changing Section 2 as follows:
(815 ILCS 420/2) (from Ch. 121 1/2, par. 1852)
Sec. 2. Definitions.
(a) "Travel promoter" means a person, including a tour
operator, who sells, provides, furnishes, contracts for,
arranges or advertises that he or she will arrange wholesale or
retail transportation by air, land, sea or navigable stream,
either separately or in conjunction with other services.
"Travel promoter" does not include (1) an air carrier; (2) a
sea carrier; (3) an officially appointed agent of an air
carrier who is a member in good standing of the Airline
Reporting Corporation; (4) a travel promoter who has in force
$1,000,000 or more of liability insurance coverage for
professional errors and omissions and a surety bond or
equivalent surety in the amount of $100,000 or more for the
benefit of consumers in the event of a bankruptcy on the part
of the travel promoter; or (5) a riverboat subject to
regulation under the Illinois Riverboat Gambling Act.
(b) "Advertise" means to make any representation in the
solicitation of passengers and includes communication with
other members of the same partnership, corporation, joint
venture, association, organization, group or other entity.

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(c) "Passenger" means a person on whose behalf money or
other consideration has been given or is to be given to
another, including another member of the same partnership,
corporation, joint venture, association, organization, group
or other entity, for travel.
(d) "Ticket or voucher" means a writing or combination of
writings which is itself good and sufficient to obtain
transportation and other services for which the passenger has
contracted.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10-505. The State Finance Act is amended by adding
Section 5.490a as follows:
(30 ILCS 105/5.490a new)
Sec. 5.490a. The Horse Racing Equity Fund.
Section 10-510. The Illinois Horse Racing Act of 1975 is
amended by adding Sections 2.1a and 54a as follows:
(230 ILCS 5/2.1a new)
Sec. 2.1a. Before the Governor or any executive agency of
State government makes any commitment, whether or not legally
binding, with respect to a proposed project for the development
or construction of any new horse racing facility, or for any
development or construction on the site of a former horse

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racing facility, which commitment will require legislative
action by the General Assembly for its implementation, the
Governor or agency shall first report to the General Assembly
on the nature of the proposed project and commitment, including
an indication of the type of legislative action likely to be
required.
In considering such report, the General Assembly may adopt
a joint resolution indicating the sense of the legislature with
respect to the proposal, and the likelihood of its undertaking
the legislative action that will be needed, but such resolution
shall not be deemed to bind the General Assembly, the Governor,
or the State of Illinois in any way.
(230 ILCS 5/54a new)
Sec. 54a. Horse Racing Equity Fund.
(a) There is created in the State Treasury a Fund to be
known as the Horse Racing Equity Fund. The Fund shall consist
of moneys paid into it pursuant to subsection (c-5) of Section
13 of the Riverboat Gambling Act. The Fund shall be
administered by the Racing Board.
(b) The moneys deposited into the Fund shall be distributed
by the Racing Board within 10 days after those moneys are
deposited into the Fund as follows:
(1) Fifty percent of all moneys distributed under this
subsection shall be distributed to organization licensees
to be distributed at their race meetings as purses.

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Fifty-seven percent of the amount distributed under this
paragraph (1) shall be distributed for thoroughbred race
meetings and 43% shall be distributed for standardbred race
meetings. Within each breed, moneys shall be allocated to
each organization licensee's purse fund in accordance with
the ratio between the purses generated for that breed by
that licensee during the prior calendar year and the total
purses generated throughout the State for that breed during
the prior calendar year.
(2) The remaining 50% of the moneys distributed under
this subsection (b) shall be distributed pro rata according
to the aggregate proportion of state-wide handle at the
racetrack, inter-track, and inter-track wagering locations
that derive their licenses from a racetrack identified in
this paragraph (2) for calendar years 1994, 1996, and 1997
to (i) any person (or its successors or assigns) who had
operating control of a racing facility at which live racing
was conducted in calendar year 1997 and who has operating
control of an organization licensee that conducted racing
in calendar year 1997 and is a licensee in the current
year, or (ii) any person (or its successors or assigns) who
has operating control of a racing facility located in a
county that is bounded by the Mississippi River that has a
population of less than 150,000 according to the 1990
decennial census and conducted an average of 60 days of
racing per year between 1985 and 1993 and has been awarded

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an inter-track wagering license in the current year.
If any person identified in this paragraph (2) becomes
ineligible to receive moneys from the Fund, such amount
shall be redistributed among the remaining persons in
proportion to their percentages otherwise calculated.
Article 15.
(30 ILCS 178/Act rep.)
Section 15-1. The Transportation Funding Protection Act is
repealed.
Section 15-10. The Use Tax Act is amended by changing
Section 9 as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the

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tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. In the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this Section,
such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The
discount allowed under this Section is allowed only for returns
that are filed in the manner required by this Act. The
Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for

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each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from

HB5561 - 740 - LRB101 17547 JWD 66965 b
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise required
by this Section, report and pay such tax on a separate aviation
fuel tax return. The requirements related to the return shall
be as otherwise provided in this Section. Notwithstanding any
other provisions of this Act to the contrary, retailers
collecting tax on aviation fuel shall file all aviation fuel
tax returns and shall make all aviation fuel tax payments by
electronic means in the manner and form required by the
Department. For purposes of this Section, "aviation fuel" means
jet fuel and aviation gasoline.

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If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the

HB5561 - 742 - LRB101 17547 JWD 66965 b
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service

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Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's

HB5561 - 744 - LRB101 17547 JWD 66965 b
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest

HB5561 - 745 - LRB101 17547 JWD 66965 b
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such

HB5561 - 746 - LRB101 17547 JWD 66965 b
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess

HB5561 - 747 - LRB101 17547 JWD 66965 b
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or

HB5561 - 748 - LRB101 17547 JWD 66965 b
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or

HB5561 - 749 - LRB101 17547 JWD 66965 b
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed

HB5561 - 750 - LRB101 17547 JWD 66965 b
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling

HB5561 - 751 - LRB101 17547 JWD 66965 b
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer

HB5561 - 752 - LRB101 17547 JWD 66965 b
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department

HB5561 - 753 - LRB101 17547 JWD 66965 b
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no

HB5561 - 754 - LRB101 17547 JWD 66965 b
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act.

HB5561 - 755 - LRB101 17547 JWD 66965 b
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government and (ii) aviation fuel sold on or
after December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be required
for refunds of the 20% portion of the tax on aviation fuel
under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only

HB5561 - 756 - LRB101 17547 JWD 66965 b
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.

HB5561 - 757 - LRB101 17547 JWD 66965 b
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax

HB5561 - 758 - LRB101 17547 JWD 66965 b
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount

HB5561 - 759 - LRB101 17547 JWD 66965 b
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond

HB5561 - 760 - LRB101 17547 JWD 66965 b
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the

HB5561 - 761 - LRB101 17547 JWD 66965 b
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000

HB5561 - 762 - LRB101 17547 JWD 66965 b
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal

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year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only deposit
moneys into the Aviation Fuel Sales Tax Refund Fund under this
paragraph for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the

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preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the

HB5561 - 765 - LRB101 17547 JWD 66965 b
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the Department
under the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and this Act, the Department shall deposit

HB5561 - 766 - LRB101 17547 JWD 66965 b
the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000

HB5561 - 767 - LRB101 17547 JWD 66965 b
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the Department
shall pay each month into the Road Fund the amount estimated to
represent 16% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2022 and
until July 1, 2023, subject to the payment of amounts into the
State and Local Sales Tax Reform Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 32% of the net revenue realized

HB5561 - 768 - LRB101 17547 JWD 66965 b
from the taxes imposed on motor fuel and gasohol. Beginning
July 1, 2023 and until July 1, 2024, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 48%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2024 and until July 1,
2025, subject to the payment of amounts into the State and
Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 64% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning on
July 1, 2025, subject to the payment of amounts into the State
and Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 80% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. As used in

HB5561 - 769 - LRB101 17547 JWD 66965 b
this paragraph "motor fuel" has the meaning given to that term
in Section 1.1 of the Motor Fuel Tax Act, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written

HB5561 - 770 - LRB101 17547 JWD 66965 b
objection to the Department to this arrangement.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
25-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; 101-604, eff. 12-13-19.)
Section 15-15. The Service Use Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount under
this Section is not allowed for the 1.25% portion of taxes paid
on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for returns
that are filed in the manner required by this Act. The

HB5561 - 771 - LRB101 17547 JWD 66965 b
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman need
not remit that part of any tax collected by him to the extent
that he is required to pay and does pay the tax imposed by the
Service Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The

HB5561 - 772 - LRB101 17547 JWD 66965 b
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an incident
of a sale of service in this State during the preceding
calendar month shall, instead of reporting and paying tax on
aviation fuel as otherwise required by this Section, report and
pay such tax on a separate aviation fuel tax return. The
requirements related to the return shall be as otherwise
provided in this Section. Notwithstanding any other provisions
of this Act to the contrary, servicemen collecting tax on
aviation fuel shall file all aviation fuel tax returns and

HB5561 - 773 - LRB101 17547 JWD 66965 b
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For purposes
of this Section, "aviation fuel" means jet fuel and aviation
gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the

HB5561 - 774 - LRB101 17547 JWD 66965 b
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the

HB5561 - 775 - LRB101 17547 JWD 66965 b
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this

HB5561 - 776 - LRB101 17547 JWD 66965 b
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint

HB5561 - 777 - LRB101 17547 JWD 66965 b
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This exception
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program

HB5561 - 778 - LRB101 17547 JWD 66965 b
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be required
for refunds of the 20% portion of the tax on aviation fuel
under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground

HB5561 - 779 - LRB101 17547 JWD 66965 b
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called

HB5561 - 780 - LRB101 17547 JWD 66965 b
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing

HB5561 - 781 - LRB101 17547 JWD 66965 b
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the

HB5561 - 782 - LRB101 17547 JWD 66965 b
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000

HB5561 - 783 - LRB101 17547 JWD 66965 b
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000

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2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Capital Projects

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Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only deposit
moneys into the Aviation Fuel Sales Tax Refund Fund under this
paragraph for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the

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6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois

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Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the Department
under the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and this Act, the Department shall deposit
the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the

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meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place

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Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the Department
shall pay each month into the Road Fund the amount estimated to
represent 16% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2022 and
until July 1, 2023, subject to the payment of amounts into the
State and Local Sales Tax Reform Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 32% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning
July 1, 2023 and until July 1, 2024, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 48%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2024 and until July 1,
2025, subject to the payment of amounts into the State and
Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax

HB5561 - 790 - LRB101 17547 JWD 66965 b
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 64% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning on
July 1, 2025, subject to the payment of amounts into the State
and Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 80% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. As used in
this paragraph "motor fuel" has the meaning given to that term
in Section 1.1 of the Motor Fuel Tax Act, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from

HB5561 - 791 - LRB101 17547 JWD 66965 b
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
25-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; 101-604, eff. 12-13-19.)
Section 15-20. The Service Occupation Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping

HB5561 - 792 - LRB101 17547 JWD 66965 b
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount under
this Section is not allowed for the 1.25% portion of taxes paid
on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for returns
that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman need
not remit that part of any tax collected by him to the extent
that he is required to pay and does pay the tax imposed by the
Service Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the

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Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an incident
of a sale of service in this State during the preceding

HB5561 - 794 - LRB101 17547 JWD 66965 b
calendar month shall, instead of reporting and paying tax on
aviation fuel as otherwise required by this Section, report and
pay such tax on a separate aviation fuel tax return. The
requirements related to the return shall be as otherwise
provided in this Section. Notwithstanding any other provisions
of this Act to the contrary, servicemen collecting tax on
aviation fuel shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For purposes
of this Section, "aviation fuel" means jet fuel and aviation
gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic

HB5561 - 795 - LRB101 17547 JWD 66965 b
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer

HB5561 - 796 - LRB101 17547 JWD 66965 b
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and

HB5561 - 797 - LRB101 17547 JWD 66965 b
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.

HB5561 - 798 - LRB101 17547 JWD 66965 b
Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or

HB5561 - 799 - LRB101 17547 JWD 66965 b
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This exception
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be required
for refunds of the 20% portion of the tax on aviation fuel
under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had

HB5561 - 800 - LRB101 17547 JWD 66965 b
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the

HB5561 - 801 - LRB101 17547 JWD 66965 b
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso

HB5561 - 802 - LRB101 17547 JWD 66965 b
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;

HB5561 - 803 - LRB101 17547 JWD 66965 b
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000

HB5561 - 804 - LRB101 17547 JWD 66965 b
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000

HB5561 - 805 - LRB101 17547 JWD 66965 b
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition

HB5561 - 806 - LRB101 17547 JWD 66965 b
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only deposit
moneys into the Aviation Fuel Sales Tax Refund Fund under this
paragraph for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.

HB5561 - 807 - LRB101 17547 JWD 66965 b
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the

HB5561 - 808 - LRB101 17547 JWD 66965 b
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the Department
under the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and this Act, the Department shall deposit
the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.

HB5561 - 809 - LRB101 17547 JWD 66965 b
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000

HB5561 - 810 - LRB101 17547 JWD 66965 b
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the Department
shall pay each month into the Road Fund the amount estimated to
represent 16% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2022 and
until July 1, 2023, subject to the payment of amounts into the
State and Local Sales Tax Reform Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 32% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning
July 1, 2023 and until July 1, 2024, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration

HB5561 - 811 - LRB101 17547 JWD 66965 b
Fund as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 48%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2024 and until July 1,
2025, subject to the payment of amounts into the State and
Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 64% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning on
July 1, 2025, subject to the payment of amounts into the State
and Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 80% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. As used in
this paragraph "motor fuel" has the meaning given to that term
in Section 1.1 of the Motor Fuel Tax Act, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be

HB5561 - 812 - LRB101 17547 JWD 66965 b
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
25-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; 101-604, eff. 12-13-19.)
Section 15-25. The Retailers' Occupation Tax Act is amended
by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before

HB5561 - 813 - LRB101 17547 JWD 66965 b
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from services
furnished, by him during such preceding calendar month or
quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during the
preceding calendar month or quarter and upon the basis of
which the tax is imposed;
7. The amount of credit provided in Section 2d of this
Act;

HB5561 - 814 - LRB101 17547 JWD 66965 b
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit

HB5561 - 815 - LRB101 17547 JWD 66965 b
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;

HB5561 - 816 - LRB101 17547 JWD 66965 b
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required by
the Department. For purposes of this Section, "aviation fuel"
means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file

HB5561 - 817 - LRB101 17547 JWD 66965 b
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic

HB5561 - 818 - LRB101 17547 JWD 66965 b
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic

HB5561 - 819 - LRB101 17547 JWD 66965 b
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer

HB5561 - 820 - LRB101 17547 JWD 66965 b
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.

HB5561 - 821 - LRB101 17547 JWD 66965 b
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be

HB5561 - 822 - LRB101 17547 JWD 66965 b
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or
trailer to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor vehicles
or trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the

HB5561 - 823 - LRB101 17547 JWD 66965 b
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value

HB5561 - 824 - LRB101 17547 JWD 66965 b
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other

HB5561 - 825 - LRB101 17547 JWD 66965 b
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.

HB5561 - 826 - LRB101 17547 JWD 66965 b
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.

HB5561 - 827 - LRB101 17547 JWD 66965 b
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The discount under this
Section is not allowed for the 1.25% portion of taxes paid on

HB5561 - 828 - LRB101 17547 JWD 66965 b
aviation fuel that is subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made
pursuant to Section 2d of this Act shall be included in the
amount on which such 2.1% or 1.75% discount is computed. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the

HB5561 - 829 - LRB101 17547 JWD 66965 b
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's

HB5561 - 830 - LRB101 17547 JWD 66965 b
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a

HB5561 - 831 - LRB101 17547 JWD 66965 b
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at

HB5561 - 832 - LRB101 17547 JWD 66965 b
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after

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January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in

HB5561 - 834 - LRB101 17547 JWD 66965 b
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds the

HB5561 - 835 - LRB101 17547 JWD 66965 b
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.

HB5561 - 836 - LRB101 17547 JWD 66965 b
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after December
1, 2019. This exception for aviation fuel only applies for so
long as the revenue use requirements of 49 U.S.C. 47107(b) and
49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This exception

HB5561 - 837 - LRB101 17547 JWD 66965 b
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be required
for refunds of the 20% portion of the tax on aviation fuel
under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the

HB5561 - 838 - LRB101 17547 JWD 66965 b
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this

HB5561 - 839 - LRB101 17547 JWD 66965 b
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:

HB5561 - 840 - LRB101 17547 JWD 66965 b
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for

HB5561 - 841 - LRB101 17547 JWD 66965 b
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall

HB5561 - 842 - LRB101 17547 JWD 66965 b
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000

HB5561 - 843 - LRB101 17547 JWD 66965 b
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000

HB5561 - 844 - LRB101 17547 JWD 66965 b
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project

HB5561 - 845 - LRB101 17547 JWD 66965 b
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only deposit
moneys into the Aviation Fuel Sales Tax Refund Fund under this
paragraph for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter

HB5561 - 846 - LRB101 17547 JWD 66965 b
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the

HB5561 - 847 - LRB101 17547 JWD 66965 b
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the Department
under the Use Tax Act, the Service Use Tax Act, the Service
Occupation Tax Act, and this Act, the Department shall deposit
the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and charge

HB5561 - 848 - LRB101 17547 JWD 66965 b
set forth in Section 25-55 of the Public-Private Partnership
for Civic and Transit Infrastructure Project Act. As used in
this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000

HB5561 - 849 - LRB101 17547 JWD 66965 b
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the County and Mass Transit District
Fund, the Local Government Tax Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 32% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning
July 1, 2023 and until July 1, 2024, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the

HB5561 - 850 - LRB101 17547 JWD 66965 b
amount estimated to represent 48% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning
July 1, 2024 and until July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
the Department shall pay each month into the Road Fund the
amount estimated to represent 64% of the net revenue realized
from the taxes imposed on motor fuel and gasohol. Beginning on
July 1, 2025, subject to the payment of amounts into the County
and Mass Transit District Fund, the Local Government Tax Fund,
the Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Act, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and

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used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.

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If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable
for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon

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certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois

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Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the

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Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
15, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section
25-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
6-28-19; 101-604, eff. 12-13-19.)
Section 15-30. The Motor Fuel Tax Law is amended by
changing Sections 2 and 8 as follows:
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,
2019, the rate of tax imposed in this paragraph shall be 38
cents per gallon and increased on July 1 of each subsequent

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year by an amount equal to the percentage increase, if any, in
the Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending in March of each year. The rate shall be rounded
to the nearest one-tenth of one cent.
(b) Until July 1, 2019, the tax on the privilege of
operating motor vehicles which use diesel fuel, liquefied
natural gas, or propane shall be the rate according to
paragraph (a) plus an additional 2 1/2 cents per gallon.
Beginning July 1, 2019, the tax on the privilege of operating
motor vehicles which use diesel fuel, liquefied natural gas, or
propane shall be the rate according to subsection (a) plus an
additional 7.5 cents per gallon. "Diesel fuel" is defined as
any product intended for use or offered for sale as a fuel for
engines in which the fuel is injected into the combustion
chamber and ignited by pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional

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tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
(d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage tank
that is located at a facility that has withdrawal facilities
that are readily accessible to and are capable of dispensing

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1-K kerosene into the fuel supply tanks of motor vehicles. For
purposes of this subsection (e), a facility is considered to
have withdrawal facilities that are not "readily accessible to
and capable of dispensing 1-K kerosene into the fuel supply
tanks of motor vehicles" only if the 1-K kerosene is delivered
from: (i) a dispenser hose that is short enough so that it will
not reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling.
Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
eff. 6-28-19; 101-604, eff. 12-13-19.)
(35 ILCS 505/8) (from Ch. 120, par. 424)
Sec. 8. Except as provided in subsection (a-1) of this
Section, Section 8a, subdivision (h)(1) of Section 12a, Section
13a.6, and items 13, 14, 15, and 16 of Section 15, all money
received by the Department under this Act, including payments
made to the Department by member jurisdictions participating in
the International Fuel Tax Agreement, shall be deposited in a
special fund in the State treasury, to be known as the "Motor
Fuel Tax Fund", and shall be used as follows:

HB5561 - 859 - LRB101 17547 JWD 66965 b
(a) 2 1/2 cents per gallon of the tax collected on special
fuel under paragraph (b) of Section 2 and Section 13a of this
Act shall be transferred to the State Construction Account Fund
in the State Treasury; the remainder of the tax collected on
special fuel under paragraph (b) of Section 2 and Section 13a
of this Act shall be deposited into the Road Fund;
(a-1) Beginning on July 1, 2019, an amount equal to the
amount of tax collected under subsection (a) of Section 2 as a
result of the increase in the tax rate under this amendatory
Act of the 101st General Assembly shall be transferred each
month into the Transportation Renewal Fund.
(b) $420,000 shall be transferred each month to the State
Boating Act Fund to be used by the Department of Natural
Resources for the purposes specified in Article X of the Boat
Registration and Safety Act;
(c) $3,500,000 shall be transferred each month to the Grade
Crossing Protection Fund to be used as follows: not less than
$12,000,000 each fiscal year shall be used for the construction
or reconstruction of rail highway grade separation structures;
$2,250,000 in fiscal years 2004 through 2009 and $3,000,000 in
fiscal year 2010 and each fiscal year thereafter shall be
transferred to the Transportation Regulatory Fund and shall be
accounted for as part of the rail carrier portion of such funds
and shall be used to pay the cost of administration of the
Illinois Commerce Commission's railroad safety program in
connection with its duties under subsection (3) of Section

HB5561 - 860 - LRB101 17547 JWD 66965 b
18c-7401 of the Illinois Vehicle Code, with the remainder to be
used by the Department of Transportation upon order of the
Illinois Commerce Commission, to pay that part of the cost
apportioned by such Commission to the State to cover the
interest of the public in the use of highways, roads, streets,
or pedestrian walkways in the county highway system, township
and district road system, or municipal street system as defined
in the Illinois Highway Code, as the same may from time to time
be amended, for separation of grades, for installation,
construction or reconstruction of crossing protection or
reconstruction, alteration, relocation including construction
or improvement of any existing highway necessary for access to
property or improvement of any grade crossing and grade
crossing surface including the necessary highway approaches
thereto of any railroad across the highway or public road, or
for the installation, construction, reconstruction, or
maintenance of a pedestrian walkway over or under a railroad
right-of-way, as provided for in and in accordance with Section
18c-7401 of the Illinois Vehicle Code. The Commission may order
up to $2,000,000 per year in Grade Crossing Protection Fund
moneys for the improvement of grade crossing surfaces and up to
$300,000 per year for the maintenance and renewal of 4-quadrant
gate vehicle detection systems located at non-high speed rail
grade crossings. The Commission shall not order more than
$2,000,000 per year in Grade Crossing Protection Fund moneys
for pedestrian walkways. In entering orders for projects for

HB5561 - 861 - LRB101 17547 JWD 66965 b
which payments from the Grade Crossing Protection Fund will be
made, the Commission shall account for expenditures authorized
by the orders on a cash rather than an accrual basis. For
purposes of this requirement an "accrual basis" assumes that
the total cost of the project is expended in the fiscal year in
which the order is entered, while a "cash basis" allocates the
cost of the project among fiscal years as expenditures are
actually made. To meet the requirements of this subsection, the
Illinois Commerce Commission shall develop annual and 5-year
project plans of rail crossing capital improvements that will
be paid for with moneys from the Grade Crossing Protection
Fund. The annual project plan shall identify projects for the
succeeding fiscal year and the 5-year project plan shall
identify projects for the 5 directly succeeding fiscal years.
The Commission shall submit the annual and 5-year project plans
for this Fund to the Governor, the President of the Senate, the
Senate Minority Leader, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives on the first Wednesday in April of each year;
(d) of the amount remaining after allocations provided for
in subsections (a), (a-1), (b), and (c), a sufficient amount
shall be reserved to pay all of the following:
(1) the costs of the Department of Revenue in
administering this Act;
(2) the costs of the Department of Transportation in
performing its duties imposed by the Illinois Highway Code

HB5561 - 862 - LRB101 17547 JWD 66965 b
for supervising the use of motor fuel tax funds apportioned
to municipalities, counties and road districts;
(3) refunds provided for in Section 13, refunds for
overpayment of decal fees paid under Section 13a.4 of this
Act, and refunds provided for under the terms of the
International Fuel Tax Agreement referenced in Section
14a;
(4) from October 1, 1985 until June 30, 1994, the
administration of the Vehicle Emissions Inspection Law,
which amount shall be certified monthly by the
Environmental Protection Agency to the State Comptroller
and shall promptly be transferred by the State Comptroller
and Treasurer from the Motor Fuel Tax Fund to the Vehicle
Inspection Fund, and for the period July 1, 1994 through
June 30, 2000, one-twelfth of $25,000,000 each month, for
the period July 1, 2000 through June 30, 2003, one-twelfth
of $30,000,000 each month, and $15,000,000 on July 1, 2003,
and $15,000,000 on January 1, 2004, and $15,000,000 on each
July 1 and October 1, or as soon thereafter as may be
practical, during the period July 1, 2004 through June 30,
2012, and $30,000,000 on June 1, 2013, or as soon
thereafter as may be practical, and $15,000,000 on July 1
and October 1, or as soon thereafter as may be practical,
during the period of July 1, 2013 through June 30, 2015,
for the administration of the Vehicle Emissions Inspection
Law of 2005, to be transferred by the State Comptroller and

HB5561 - 863 - LRB101 17547 JWD 66965 b
Treasurer from the Motor Fuel Tax Fund into the Vehicle
Inspection Fund;
(4.5) beginning on July 1, 2019, the costs of the
Environmental Protection Agency for the administration of
the Vehicle Emissions Inspection Law of 2005 shall be paid,
subject to appropriation, from the Motor Fuel Tax Fund into
the Vehicle Inspection Fund; beginning in 2019, no later
than December 31 of each year, or as soon thereafter as
practical, the State Comptroller shall direct and the State
Treasurer shall transfer from the Vehicle Inspection Fund
to the Motor Fuel Tax Fund any balance remaining in the
Vehicle Inspection Fund in excess of $2,000,000;
(5) amounts ordered paid by the Court of Claims; and
(6) payment of motor fuel use taxes due to member
jurisdictions under the terms of the International Fuel Tax
Agreement. The Department shall certify these amounts to
the Comptroller by the 15th day of each month; the
Comptroller shall cause orders to be drawn for such
amounts, and the Treasurer shall administer those amounts
on or before the last day of each month;
(e) after allocations for the purposes set forth in
subsections (a), (a-1), (b), (c), and (d), the remaining amount
shall be apportioned as follows:
(1) Until January 1, 2000, 58.4%, and beginning January
1, 2000, 45.6% shall be deposited as follows:
(A) 37% into the State Construction Account Fund,

HB5561 - 864 - LRB101 17547 JWD 66965 b
and
(B) 63% into the Road Fund, $1,250,000 of which
shall be reserved each month for the Department of
Transportation to be used in accordance with the
provisions of Sections 6-901 through 6-906 of the
Illinois Highway Code;
(2) Until January 1, 2000, 41.6%, and beginning January
1, 2000, 54.4% shall be transferred to the Department of
Transportation to be distributed as follows:
(A) 49.10% to the municipalities of the State,
(B) 16.74% to the counties of the State having
1,000,000 or more inhabitants,
(C) 18.27% to the counties of the State having less
than 1,000,000 inhabitants,
(D) 15.89% to the road districts of the State.
If a township is dissolved under Article 24 of the
Township Code, McHenry County shall receive any moneys that
would have been distributed to the township under this
subparagraph, except that a municipality that assumes the
powers and responsibilities of a road district under
paragraph (6) of Section 24-35 of the Township Code shall
receive any moneys that would have been distributed to the
township in a percent equal to the area of the dissolved
road district or portion of the dissolved road district
over which the municipality assumed the powers and
responsibilities compared to the total area of the

HB5561 - 865 - LRB101 17547 JWD 66965 b
dissolved township. The moneys received under this
subparagraph shall be used in the geographic area of the
dissolved township. If a township is reconstituted as
provided under Section 24-45 of the Township Code, McHenry
County or a municipality shall no longer be distributed
moneys under this subparagraph.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to each municipality
its share of the amount apportioned to the several
municipalities which shall be in proportion to the population
of such municipalities as determined by the last preceding
municipal census if conducted by the Federal Government or
Federal census. If territory is annexed to any municipality
subsequent to the time of the last preceding census the
corporate authorities of such municipality may cause a census
to be taken of such annexed territory and the population so
ascertained for such territory shall be added to the population
of the municipality as determined by the last preceding census
for the purpose of determining the allotment for that
municipality. If the population of any municipality was not
determined by the last Federal census preceding any
apportionment, the apportionment to such municipality shall be
in accordance with any census taken by such municipality. Any
municipal census used in accordance with this Section shall be
certified to the Department of Transportation by the clerk of
such municipality, and the accuracy thereof shall be subject to

HB5561 - 866 - LRB101 17547 JWD 66965 b
approval of the Department which may make such corrections as
it ascertains to be necessary.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to each county its
share of the amount apportioned to the several counties of the
State as herein provided. Each allotment to the several
counties having less than 1,000,000 inhabitants shall be in
proportion to the amount of motor vehicle license fees received
from the residents of such counties, respectively, during the
preceding calendar year. The Secretary of State shall, on or
before April 15 of each year, transmit to the Department of
Transportation a full and complete report showing the amount of
motor vehicle license fees received from the residents of each
county, respectively, during the preceding calendar year. The
Department of Transportation shall, each month, use for
allotment purposes the last such report received from the
Secretary of State.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to the several
counties their share of the amount apportioned for the use of
road districts. The allotment shall be apportioned among the
several counties in the State in the proportion which the total
mileage of township or district roads in the respective
counties bears to the total mileage of all township and
district roads in the State. Funds allotted to the respective
counties for the use of road districts therein shall be

HB5561 - 867 - LRB101 17547 JWD 66965 b
allocated to the several road districts in the county in the
proportion which the total mileage of such township or district
roads in the respective road districts bears to the total
mileage of all such township or district roads in the county.
After July 1 of any year prior to 2011, no allocation shall be
made for any road district unless it levied a tax for road and
bridge purposes in an amount which will require the extension
of such tax against the taxable property in any such road
district at a rate of not less than either .08% of the value
thereof, based upon the assessment for the year immediately
prior to the year in which such tax was levied and as equalized
by the Department of Revenue or, in DuPage County, an amount
equal to or greater than $12,000 per mile of road under the
jurisdiction of the road district, whichever is less. Beginning
July 1, 2011 and each July 1 thereafter, an allocation shall be
made for any road district if it levied a tax for road and
bridge purposes. In counties other than DuPage County, if the
amount of the tax levy requires the extension of the tax
against the taxable property in the road district at a rate
that is less than 0.08% of the value thereof, based upon the
assessment for the year immediately prior to the year in which
the tax was levied and as equalized by the Department of
Revenue, then the amount of the allocation for that road
district shall be a percentage of the maximum allocation equal
to the percentage obtained by dividing the rate extended by the
district by 0.08%. In DuPage County, if the amount of the tax

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levy requires the extension of the tax against the taxable
property in the road district at a rate that is less than the
lesser of (i) 0.08% of the value of the taxable property in the
road district, based upon the assessment for the year
immediately prior to the year in which such tax was levied and
as equalized by the Department of Revenue, or (ii) a rate that
will yield an amount equal to $12,000 per mile of road under
the jurisdiction of the road district, then the amount of the
allocation for the road district shall be a percentage of the
maximum allocation equal to the percentage obtained by dividing
the rate extended by the district by the lesser of (i) 0.08% or
(ii) the rate that will yield an amount equal to $12,000 per
mile of road under the jurisdiction of the road district.
Prior to 2011, if any road district has levied a special
tax for road purposes pursuant to Sections 6-601, 6-602, and
6-603 of the Illinois Highway Code, and such tax was levied in
an amount which would require extension at a rate of not less
than .08% of the value of the taxable property thereof, as
equalized or assessed by the Department of Revenue, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such levy shall, however, be deemed a proper
compliance with this Section and shall qualify such road
district for an allotment under this Section. Beginning in 2011
and thereafter, if any road district has levied a special tax
for road purposes under Sections 6-601, 6-602, and 6-603 of the

HB5561 - 869 - LRB101 17547 JWD 66965 b
Illinois Highway Code, and the tax was levied in an amount that
would require extension at a rate of not less than 0.08% of the
value of the taxable property of that road district, as
equalized or assessed by the Department of Revenue or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, that levy shall be deemed a proper
compliance with this Section and shall qualify such road
district for a full, rather than proportionate, allotment under
this Section. If the levy for the special tax is less than
0.08% of the value of the taxable property, or, in DuPage
County if the levy for the special tax is less than the lesser
of (i) 0.08% or (ii) $12,000 per mile of road under the
jurisdiction of the road district, and if the levy for the
special tax is more than any other levy for road and bridge
purposes, then the levy for the special tax qualifies the road
district for a proportionate, rather than full, allotment under
this Section. If the levy for the special tax is equal to or
less than any other levy for road and bridge purposes, then any
allotment under this Section shall be determined by the other
levy for road and bridge purposes.
Prior to 2011, if a township has transferred to the road
and bridge fund money which, when added to the amount of any
tax levy of the road district would be the equivalent of a tax
levy requiring extension at a rate of at least .08%, or, in
DuPage County, an amount equal to or greater than $12,000 per

HB5561 - 870 - LRB101 17547 JWD 66965 b
mile of road under the jurisdiction of the road district,
whichever is less, such transfer, together with any such tax
levy, shall be deemed a proper compliance with this Section and
shall qualify the road district for an allotment under this
Section.
In counties in which a property tax extension limitation is
imposed under the Property Tax Extension Limitation Law, road
districts may retain their entitlement to a motor fuel tax
allotment or, beginning in 2011, their entitlement to a full
allotment if, at the time the property tax extension limitation
was imposed, the road district was levying a road and bridge
tax at a rate sufficient to entitle it to a motor fuel tax
allotment and continues to levy the maximum allowable amount
after the imposition of the property tax extension limitation.
Any road district may in all circumstances retain its
entitlement to a motor fuel tax allotment or, beginning in
2011, its entitlement to a full allotment if it levied a road
and bridge tax in an amount that will require the extension of
the tax against the taxable property in the road district at a
rate of not less than 0.08% of the assessed value of the
property, based upon the assessment for the year immediately
preceding the year in which the tax was levied and as equalized
by the Department of Revenue or, in DuPage County, an amount
equal to or greater than $12,000 per mile of road under the
jurisdiction of the road district, whichever is less.
As used in this Section, the term "road district" means any

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road district, including a county unit road district, provided
for by the Illinois Highway Code; and the term "township or
district road" means any road in the township and district road
system as defined in the Illinois Highway Code. For the
purposes of this Section, "township or district road" also
includes such roads as are maintained by park districts, forest
preserve districts and conservation districts. The Department
of Transportation shall determine the mileage of all township
and district roads for the purposes of making allotments and
allocations of motor fuel tax funds for use in road districts.
Payment of motor fuel tax moneys to municipalities and
counties shall be made as soon as possible after the allotment
is made. The treasurer of the municipality or county may invest
these funds until their use is required and the interest earned
by these investments shall be limited to the same uses as the
principal funds.
(Source: P.A. 101-32, eff. 6-28-19; 101-230, eff. 8-9-19;
101-493, eff. 8-23-19; revised 9-24-19.)
(35 ILCS 505/8b rep.)
Section 15-38. The Motor Fuel Tax Law is amended by
repealing Section 8b, as added by Public Act 101-32.
(65 ILCS 5/8-11-2.3 rep.)
Section 15-40. The Illinois Municipal Code is amended by
repealing Section 8-11-2.3, as added by Public Act 101-32.

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Section 15-45. The Illinois Vehicle Code is amended by
changing Sections 3-805, 3-806, 3-815, 3-815.1, 3-818, 3-819,
and 3-821 as follows:
(625 ILCS 5/3-805) (from Ch. 95 1/2, par. 3-805)
Sec. 3-805. Electric vehicles. Until January 1, 2020, the
The owner of a motor vehicle of the first division or a motor
vehicle of the second division weighing 8,000 pounds or less
propelled by an electric engine and not utilizing motor fuel,
may register such vehicle for a fee not to exceed $35 for a
2-year registration period. The Secretary may, in his
discretion, prescribe that electric vehicle registration
plates be issued for an indefinite term, such term to
correspond to the term of registration plates issued generally,
as provided in Section 3-414.1. In no event may the
registration fee for electric vehicles exceed $18 per
registration year. Beginning on January 1, 2020, the
registration fee for these vehicles shall be equal to the fee
set forth in Section 3-806 for motor vehicles of the first
division, other than Autocycles, Motorcycles, Motor Driven
Cycles, and Pedalcycles. In addition to the registration fees,
the Secretary shall assess an additional $100 per year in lieu
of the payment of motor fuel taxes. $1 of the additional fees
shall be deposited into the Secretary of State Special Services
Fund and the remainder of the additional fees shall be

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deposited into the Road Fund.
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-806) (from Ch. 95 1/2, par. 3-806)
Sec. 3-806. Registration Fees; Motor Vehicles of the First
Division. Every owner of any other motor vehicle of the first
division, except as provided in Sections 3-804, 3-804.01,
3-804.3, 3-805, 3-806.3, 3-806.7, and 3-808, and every second
division vehicle weighing 8,000 pounds or less, shall pay the
Secretary of State an annual registration fee at the following
rates:
SCHEDULE OF REGISTRATION FEES
REQUIRED BY LAW
Beginning with the 2021 2010 registration year
Annual Fee
Motor vehicles of the first division other
than Autocycles, Motorcycles, Motor
Driven Cycles and Pedalcycles $148 $98
Autocycles 68
Motorcycles, Motor Driven
Cycles and Pedalcycles 38
A $1 surcharge shall be collected in addition to the above
fees for motor vehicles of the first division, autocycles,

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motorcycles, motor driven cycles, and pedalcycles to be
deposited into the State Police Vehicle Fund.
All of the proceeds of the additional fees imposed by
Public Act 96-34 shall be deposited into the Capital Projects
Fund.
A $2 surcharge shall be collected in addition to the above
fees for motor vehicles of the first division, autocycles,
motorcycles, motor driven cycles, and pedalcycles to be
deposited into the Park and Conservation Fund for the
Department of Natural Resources to use for conservation
efforts. The monies deposited into the Park and Conservation
Fund under this Section shall not be subject to administrative
charges or chargebacks unless otherwise authorized by this Act.
Of the fees collected for motor vehicles of the first
division other than Autocycles, Motorcycles, Motor Driven
Cycles, and Pedalcycles, $1 of the fees shall be deposited into
the Secretary of State Special Services Fund and $49 of the
fees shall be deposited into the Road Fund.
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-815) (from Ch. 95 1/2, par. 3-815)
Sec. 3-815. Flat weight tax; vehicles of the second
division.
(a) Except as provided in Section 3-806.3 and 3-804.3,
every owner of a vehicle of the second division registered
under Section 3-813, and not registered under the mileage

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weight tax under Section 3-818, shall pay to the Secretary of
State, for each registration year, for the use of the public
highways, a flat weight tax at the rates set forth in the
following table, the rates including the $10 registration fee:
SCHEDULE OF FLAT WEIGHT TAX
REQUIRED BY LAW
Gross Weight in Lbs. Total Fees
Including Vehicle each Fiscal
and Maximum Load Class year
8,000 lbs. and less B $148 $98
8,001 lbs. to 10,000 lbs. C 218 118
10,001 lbs. to 12,000 lbs. D 238 138
12,001 lbs. to 16,000 lbs. F 342 242
16,001 lbs. to 26,000 lbs. H 590 490
26,001 lbs. to 28,000 lbs. J 730 630
28,001 lbs. to 32,000 lbs. K 942 842
32,001 lbs. to 36,000 lbs. L 1,082 982
36,001 lbs. to 40,000 lbs. N 1,302 1,202
40,001 lbs. to 45,000 lbs. P 1,490 1,390
45,001 lbs. to 50,000 lbs. Q 1,638 1,538
50,001 lbs. to 54,999 lbs. R 1,798 1,698
55,000 lbs. to 59,500 lbs. S 1,930 1,830
59,501 lbs. to 64,000 lbs. T 2,070 1,970
64,001 lbs. to 73,280 lbs. V 2,394 2,294
73,281 lbs. to 77,000 lbs. X 2,722 2,622
77,001 lbs. to 80,000 lbs. Z 2,890 2,790

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Beginning with the 2010 registration year a $1 surcharge
shall be collected for vehicles registered in the 8,000 lbs.
and less flat weight plate category above to be deposited into
the State Police Vehicle Fund.
Beginning with the 2014 registration year, a $2 surcharge
shall be collected in addition to the above fees for vehicles
registered in the 8,000 lb. and less flat weight plate category
as described in this subsection (a) to be deposited into the
Park and Conservation Fund for the Department of Natural
Resources to use for conservation efforts. The monies deposited
into the Park and Conservation Fund under this Section shall
not be subject to administrative charges or chargebacks unless
otherwise authorized by this Act.
Of the fees collected under this subsection, $1 of the fees
shall be deposited into the Secretary of State Special Services
Fund and $99 of the fees shall be deposited into the Road Fund.
All of the proceeds of the additional fees imposed by
Public Act 96-34 this amendatory Act of the 96th General
Assembly shall be deposited into the Capital Projects Fund.
(a-1) A Special Hauling Vehicle is a vehicle or combination
of vehicles of the second division registered under Section
3-813 transporting asphalt or concrete in the plastic state or
a vehicle or combination of vehicles that are subject to the
gross weight limitations in subsection (a) of Section 15-111
for which the owner of the vehicle or combination of vehicles
has elected to pay, in addition to the registration fee in

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subsection (a), $125 to the Secretary of State for each
registration year. The Secretary shall designate this class of
vehicle as a Special Hauling Vehicle.
(a-5) Beginning January 1, 2015, upon the request of the
vehicle owner, a $10 surcharge shall be collected in addition
to the above fees for vehicles in the 12,000 lbs. and less flat
weight plate categories as described in subsection (a) to be
deposited into the Secretary of State Special License Plate
Fund. The $10 surcharge is to identify vehicles in the 12,000
lbs. and less flat weight plate categories as a covered farm
vehicle. The $10 surcharge is an annual, flat fee that shall be
based on an applicant's new or existing registration year for
each vehicle in the 12,000 lbs. and less flat weight plate
categories. A designation as a covered farm vehicle under this
subsection (a-5) shall not alter a vehicle's registration as a
registration in the 12,000 lbs. or less flat weight category.
The Secretary shall adopt any rules necessary to implement this
subsection (a-5).
(a-10) Beginning January 1, 2019, upon the request of the
vehicle owner, the Secretary of State shall collect a $10
surcharge in addition to the fees for second division vehicles
in the 8,000 lbs. and less flat weight plate category described
in subsection (a) that are issued a registration plate under
Article VI of this Chapter. The $10 surcharge shall be
deposited into the Secretary of State Special License Plate
Fund. The $10 surcharge is to identify a vehicle in the 8,000

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lbs. and less flat weight plate category as a covered farm
vehicle. The $10 surcharge is an annual, flat fee that shall be
based on an applicant's new or existing registration year for
each vehicle in the 8,000 lbs. and less flat weight plate
category. A designation as a covered farm vehicle under this
subsection (a-10) shall not alter a vehicle's registration in
the 8,000 lbs. or less flat weight category. The Secretary
shall adopt any rules necessary to implement this subsection
(a-10).
(b) Except as provided in Section 3-806.3, every camping
trailer, motor home, mini motor home, travel trailer, truck
camper or van camper used primarily for recreational purposes,
and not used commercially, nor for hire, nor owned by a
commercial business, may be registered for each registration
year upon the filing of a proper application and the payment of
a registration fee and highway use tax, according to the
following table of fees:
MOTOR HOME, MINI MOTOR HOME, TRUCK CAMPER OR VAN CAMPER
Gross Weight in Lbs. Total Fees
Including Vehicle and Each
Maximum Load Calendar Year
8,000 lbs and less $78
8,001 Lbs. to 10,000 Lbs 90
10,001 Lbs. and Over 102
CAMPING TRAILER OR TRAVEL TRAILER
Gross Weight in Lbs. Total Fees

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Including Vehicle and Each
Maximum Load Calendar Year
3,000 Lbs. and Less $18
3,001 Lbs. to 8,000 Lbs. 30
8,001 Lbs. to 10,000 Lbs. 38
10,001 Lbs. and Over 50
Every house trailer must be registered under Section 3-819.
(c) Farm Truck. Any truck used exclusively for the owner's
own agricultural, horticultural or livestock raising
operations and not-for-hire only, or any truck used only in the
transportation for-hire of seasonal, fresh, perishable fruit
or vegetables from farm to the point of first processing, may
be registered by the owner under this paragraph in lieu of
registration under paragraph (a), upon filing of a proper
application and the payment of the $10 registration fee and the
highway use tax herein specified as follows:
SCHEDULE OF FEES AND TAXES
Gross Weight in Lbs. Total Amount for
Including Truck and each
Maximum Load Class Fiscal Year
16,000 lbs. or less VF $250 $150
16,001 to 20,000 lbs. VG 326 226
20,001 to 24,000 lbs. VH 390 290
24,001 to 28,000 lbs. VJ 478 378
28,001 to 32,000 lbs. VK 606 506
32,001 to 36,000 lbs. VL 710 610

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36,001 to 45,000 lbs. VP 910 810
45,001 to 54,999 lbs. VR 1,126 1,026
55,000 to 64,000 lbs. VT 1,302 1,202
64,001 to 73,280 lbs. VV 1,390 1,290
73,281 to 77,000 lbs. VX 1,450 1,350
77,001 to 80,000 lbs. VZ 1,590 1,490
Of the fees collected under this subsection, $1 of the fees
shall be deposited into the Secretary of State Special Services
Fund and $99 of the fees shall be deposited into the Road Fund.
In the event the Secretary of State revokes a farm truck
registration as authorized by law, the owner shall pay the flat
weight tax due hereunder before operating such truck.
Any combination of vehicles having 5 axles, with a distance
of 42 feet or less between extreme axles, that are subject to
the weight limitations in subsection (a) of Section 15-111 for
which the owner of the combination of vehicles has elected to
pay, in addition to the registration fee in subsection (c),
$125 to the Secretary of State for each registration year shall
be designated by the Secretary as a Special Hauling Vehicle.
(d) The number of axles necessary to carry the maximum load
provided shall be determined from Chapter 15 of this Code.
(e) An owner may only apply for and receive 5 farm truck
registrations, and only 2 of those 5 vehicles shall exceed
59,500 gross weight in pounds per vehicle.
(f) Every person convicted of violating this Section by
failure to pay the appropriate flat weight tax to the Secretary

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of State as set forth in the above tables shall be punished as
provided for in Section 3-401.
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-815.1)
Sec. 3-815.1. Commercial distribution fee. Beginning July
1, 2003, in addition to any tax or fee imposed under this Code:
(a) Vehicles of the second division with a gross
vehicle weight that exceeds 8,000 pounds and that incur any
tax or fee under subsection (a) of Section 3-815 of this
Code or subsection (a) of Section 3-818 of this Code, as
applicable, shall pay to the Secretary of State a
commercial distribution fee, for each registration year,
for the use of the public highways, State infrastructure,
and State services, in an amount equal to: (i) for a
registration year beginning on or after July 1, 2003 and
before July 1, 2005, 36% of the taxes and fees incurred
under subsection (a) of Section 3-815 of this Code, or
subsection (a) of Section 3-818 of this Code, as
applicable, rounded up to the nearest whole dollar; (ii)
for a registration year beginning on or after July 1, 2005
and before July 1, 2006, 21.5% of the taxes and fees
incurred under subsection (a) of Section 3-815 of this
Code, or subsection (a) of Section 3-818 of this Code, as
applicable, rounded up to the nearest whole dollar; and
(iii) for a registration year beginning on or after July 1,

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2006, 14.35% of the taxes and fees incurred under
subsection (a) of Section 3-815 of this Code, or subsection
(a) of Section 3-818 of this Code, as applicable, rounded
up to the nearest whole dollar.
(b) Until June 30, 2004, vehicles of the second
division with a gross vehicle weight of 8,000 pounds or
less and that incur any tax or fee under subsection (a) of
Section 3-815 of this Code or subsection (a) of Section
3-818 of this Code, as applicable, and have claimed the
rolling stock exemption under the Retailers' Occupation
Tax Act, Use Tax Act, Service Occupation Tax Act, or
Service Use Tax Act shall pay to the Illinois Department of
Revenue (or the Secretary of State under an
intergovernmental agreement) a commercial distribution
fee, for each registration year, for the use of the public
highways, State infrastructure, and State services, in an
amount equal to 36% of the taxes and fees incurred under
subsection (a) of Section 3-815 of this Code or subsection
(a) of Section 3-818 of this Code, as applicable, rounded
up to the nearest whole dollar.
The fees paid under this Section shall be deposited by the
Secretary of State into the General Revenue Fund.
This Section is repealed on July 1, 2020.
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-818) (from Ch. 95 1/2, par. 3-818)

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Sec. 3-818. Mileage weight tax option.
(a) Any owner of a vehicle of the second division may elect
to pay a mileage weight tax for such vehicle in lieu of the
flat weight tax set out in Section 3-815. Such election shall
be binding to the end of the registration year. Renewal of this
election must be filed with the Secretary of State on or before
July 1 of each registration period. In such event the owner
shall, at the time of making such election, pay the $10
registration fee and the minimum guaranteed mileage weight tax,
as hereinafter provided, which payment shall permit the owner
to operate that vehicle the maximum mileage in this State
hereinafter set forth. Any vehicle being operated on mileage
plates cannot be operated outside of this State. In addition
thereto, the owner of that vehicle shall pay a mileage weight
tax at the following rates for each mile traveled in this State
in excess of the maximum mileage provided under the minimum
guaranteed basis:
BUS, TRUCK OR TRUCK TRACTOR
Maximum Mileage
Minimum Mileage Weight Tax
Guaranteed Permitted for Mileage
Gross Weight Mileage Under in excess of
Vehicle and Weight Guaranteed Guaranteed
Load Class Tax Tax Mileage
12,000 lbs. or less MD $173 $73 5,000 26 Mills
12,001 to 16,000 lbs. MF 220 120 6,000 34 Mills

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16,001 to 20,000 lbs. MG 280 180 6,000 46 Mills
20,001 to 24,000 lbs. MH 335 235 6,000 63 Mills
24,001 to 28,000 lbs. MJ 415 315 7,000 63 Mills
28,001 to 32,000 lbs. MK 485 385 7,000 83 Mills
32,001 to 36,000 lbs. ML 585 485 7,000 99 Mills
36,001 to 40,000 lbs. MN 715 615 7,000 128 Mills
40,001 to 45,000 lbs. MP 795 695 7,000 139 Mills
45,001 to 54,999 lbs. MR 953 853 7,000 156 Mills
55,000 to 59,500 lbs. MS 1,020 920 7,000 178 Mills
59,501 to 64,000 lbs. MT 1,085 985 7,000 195 Mills
64,001 to 73,280 lbs. MV 1,273 1,173 7,000 225 Mills
73,281 to 77,000 lbs. MX 1,428 1,328 7,000 258 Mills
77,001 to 80,000 lbs. MZ 1,515 1,415 7,000 275 Mills
TRAILER
Maximum Mileage
Minimum Mileage Weight Tax
Guaranteed Permitted for Mileage
Gross Weight Mileage Under in excess of
Vehicle and Weight Guaranteed Guaranteed
Load Class Tax Tax Mileage
14,000 lbs. or less ME $175 $75 5,000 31 Mills
14,001 to 20,000 lbs. MF 235 135 6,000 36 Mills
20,001 to 36,000 lbs. ML 640 540 7,000 103 Mills
36,001 to 40,000 lbs. MM 850 750 7,000 150 Mills
Of the fees collected under this subsection, $1 of the fees
shall be deposited into the Secretary of State Special Services

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Fund and $99 of the fees shall be deposited into the Road Fund.
(a-1) A Special Hauling Vehicle is a vehicle or combination
of vehicles of the second division registered under Section
3-813 transporting asphalt or concrete in the plastic state or
a vehicle or combination of vehicles that are subject to the
gross weight limitations in subsection (a) of Section 15-111
for which the owner of the vehicle or combination of vehicles
has elected to pay, in addition to the registration fee in
subsection (a), $125 to the Secretary of State for each
registration year. The Secretary shall designate this class of
vehicle as a Special Hauling Vehicle.
In preparing rate schedules on registration applications,
the Secretary of State shall add to the above rates, the $10
registration fee. The Secretary may decline to accept any
renewal filed after July 1st.
The number of axles necessary to carry the maximum load
provided shall be determined from Chapter 15 of this Code.
Every owner of a second division motor vehicle for which he
has elected to pay a mileage weight tax shall keep a daily
record upon forms prescribed by the Secretary of State, showing
the mileage covered by that vehicle in this State. Such record
shall contain the license number of the vehicle and the miles
traveled by the vehicle in this State for each day of the
calendar month. Such owner shall also maintain records of fuel
consumed by each such motor vehicle and fuel purchases
therefor. On or before the 10th day of July the owner shall

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certify to the Secretary of State upon forms prescribed
therefor, summaries of his daily records which shall show the
miles traveled by the vehicle in this State during the
preceding 12 months and such other information as the Secretary
of State may require. The daily record and fuel records shall
be filed, preserved and available for audit for a period of 3
years. Any owner filing a return hereunder shall certify that
such return is a true, correct and complete return. Any person
who willfully makes a false return hereunder is guilty of
perjury and shall be punished in the same manner and to the
same extent as is provided therefor.
At the time of filing his return, each owner shall pay to
the Secretary of State the proper amount of tax at the rate
herein imposed.
Every owner of a vehicle of the second division who elects
to pay on a mileage weight tax basis and who operates the
vehicle within this State, shall file with the Secretary of
State a bond in the amount of $500. The bond shall be in a form
approved by the Secretary of State and with a surety company
approved by the Illinois Department of Insurance to transact
business in this State as surety, and shall be conditioned upon
such applicant's paying to the State of Illinois all money
becoming due by reason of the operation of the second division
vehicle in this State, together with all penalties and interest
thereon.
Upon notice from the Secretary that the registrant has

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failed to pay the excess mileage fees, the surety shall
immediately pay the fees together with any penalties and
interest thereon in an amount not to exceed the limits of the
bond.
(b) Beginning January 1, 2016, upon the request of the
vehicle owner, a $10 surcharge shall be collected in addition
to the above fees for vehicles in the 12,000 lbs. and less
mileage weight plate category as described in subsection (a) to
be deposited into the Secretary of State Special License Plate
Fund. The $10 surcharge is to identify vehicles in the 12,000
lbs. and less mileage weight plate category as a covered farm
vehicle. The $10 surcharge is an annual flat fee that shall be
based on an applicant's new or existing registration year for
each vehicle in the 12,000 lbs. and less mileage weight plate
category. A designation as a covered farm vehicle under this
subsection (b) shall not alter a vehicle's registration as a
registration in the 12,000 lbs. or less mileage weight
category. The Secretary shall adopt any rules necessary to
implement this subsection (b).
(Source: P.A. 101-32, eff. 6-28-19.)
(625 ILCS 5/3-819) (from Ch. 95 1/2, par. 3-819)
Sec. 3-819. Trailer; Flat weight tax.
(a) Farm Trailer. Any farm trailer drawn by a motor vehicle
of the second division registered under paragraph (a) or (c) of
Section 3-815 and used exclusively by the owner for his own

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agricultural, horticultural or livestock raising operations
and not used for hire, or any farm trailer utilized only in the
transportation for-hire of seasonal, fresh, perishable fruit
or vegetables from farm to the point of first processing, and
any trailer used with a farm tractor that is not an implement
of husbandry may be registered under this paragraph in lieu of
registration under paragraph (b) of this Section upon the
filing of a proper application and the payment of the $10
registration fee and the highway use tax herein for use of the
public highways of this State, at the following rates which
include the $10 registration fee:
SCHEDULE OF FEES AND TAXES
Gross Weight in Lbs. Class Total Amount
Including Vehicle each
and Maximum Load Fiscal Year
10,000 lbs. or less VDD $160 $60
10,001 to 14,000 lbs. VDE 206 106
14,001 to 20,000 lbs. VDG 266 166
20,001 to 28,000 lbs. VDJ 478 378
28,001 to 36,000 lbs. VDL 750 650
An owner may only apply for and receive two farm trailer
registrations.
(b) All other owners of trailers, other than apportionable
trailers registered under Section 3-402.1 of this Code, used
with a motor vehicle on the public highways, shall pay to the
Secretary of State for each registration year a flat weight

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tax, for the use of the public highways of this State, at the
following rates (which includes the registration fee of $10
required by Section 3-813):
SCHEDULE OF TRAILER FLAT
WEIGHT TAX REQUIRED
BY LAW
Gross Weight in Lbs. Total Fees
Including Vehicle and each
Maximum Load Class Fiscal Year
3,000 lbs. and less TA $118 $18
5,000 lbs. and more than 3,000 TB 154 54
8,000 lbs. and more than 5,000 TC 158 58
10,000 lbs. and more than 8,000 TD 206 106
14,000 lbs. and more than 10,000 TE 270 170
20,000 lbs. and more than 14,000 TG 358 258
32,000 lbs. and more than 20,000 TK 822 722
36,000 lbs. and more than 32,000 TL 1,182 1,082
40,000 lbs. and more than 36,000 TN 1,602 1,502
Of the fees collected under this subsection, $1 of the fees
shall be deposited into the Secretary of State Special Services
Fund and $99 of the additional fees shall be deposited into the
Road Fund.
(c) The number of axles necessary to carry the maximum load
provided shall be determined from Chapter 15 of this Code.
(Source: P.A. 101-32, eff. 6-28-19.)

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(625 ILCS 5/3-821) (from Ch. 95 1/2, par. 3-821)
Sec. 3-821. Miscellaneous registration and title fees.
(a) Except as provided under subsection (h), the fee to be
paid to the Secretary of State for the following certificates,
registrations or evidences of proper registration, or for
corrected or duplicate documents shall be in accordance with
the following schedule:
Certificate of Title, except for an all-terrain
vehicle or off-highway motorcycle, prior to July 1,
2019 $95
Certificate of Title, except for an all-terrain
vehicle, off-highway motorcycle, or motor home, mini
motor home or van camper, on and after July 1, 2019 $150
Certificate of Title for a motor home, mini motor
home, or van camper, on and after July 1,2019 $250
Certificate of Title for an all-terrain vehicle
or off-highway motorcycle $30
Certificate of Title for an all-terrain vehicle
or off-highway motorcycle used for production
agriculture, or accepted by a dealer in trade $13
Certificate of Title for a low-speed vehicle $30
Transfer of Registration or any evidence of
proper registration $25
Duplicate Registration Card for plates or other
evidence of proper registration $3
Duplicate Registration Sticker or Stickers, each $20

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Duplicate Certificate of Title, prior to July 1,
2019 $95
Duplicate Certificate of Title, on and after July
1, 2019 $50
Corrected Registration Card or Card for other
evidence of proper registration $3
Corrected Certificate of Title $95
Salvage Certificate, prior to July 1, 2019 $4
Salvage Certificate, on and after July 1, 2019 $20
Fleet Reciprocity Permit $15
Prorate Decal $1
Prorate Backing Plate $3
Special Corrected Certificate of Title $15
Expedited Title Service (to be charged in addition
to other applicable fees) $30
Dealer Lien Release Certificate of Title $20
A special corrected certificate of title shall be issued
(i) to remove a co-owner's name due to the death of the
co-owner, to transfer title to a spouse if the decedent-spouse
was the sole owner on the title, or due to a divorce; (ii) to
change a co-owner's name due to a marriage; or (iii) due to a
name change under Article XXI of the Code of Civil Procedure.
There shall be no fee paid for a Junking Certificate.
There shall be no fee paid for a certificate of title
issued to a county when the vehicle is forfeited to the county

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under Article 36 of the Criminal Code of 2012.
(a-5) The Secretary of State may revoke a certificate of
title and registration card and issue a corrected certificate
of title and registration card, at no fee to the vehicle owner
or lienholder, if there is proof that the vehicle
identification number is erroneously shown on the original
certificate of title.
(a-10) The Secretary of State may issue, in connection with
the sale of a motor vehicle, a corrected title to a motor
vehicle dealer upon application and submittal of a lien release
letter from the lienholder listed in the files of the
Secretary. In the case of a title issued by another state, the
dealer must submit proof from the state that issued the last
title. The corrected title, which shall be known as a dealer
lien release certificate of title, shall be issued in the name
of the vehicle owner without the named lienholder. If the motor
vehicle is currently titled in a state other than Illinois, the
applicant must submit either (i) a letter from the current
lienholder releasing the lien and stating that the lienholder
has possession of the title; or (ii) a letter from the current
lienholder releasing the lien and a copy of the records of the
department of motor vehicles for the state in which the vehicle
is titled, showing that the vehicle is titled in the name of
the applicant and that no liens are recorded other than the
lien for which a release has been submitted. The fee for the
dealer lien release certificate of title is $20.

HB5561 - 893 - LRB101 17547 JWD 66965 b
(b) The Secretary may prescribe the maximum service charge
to be imposed upon an applicant for renewal of a registration
by any person authorized by law to receive and remit or
transmit to the Secretary such renewal application and fees
therewith.
(c) If payment is delivered to the Office of the Secretary
of State as payment of any fee or tax under this Code, and such
payment is not honored for any reason, the registrant or other
person tendering the payment remains liable for the payment of
such fee or tax. The Secretary of State may assess a service
charge of $25 in addition to the fee or tax due and owing for
all dishonored payments.
If the total amount then due and owing exceeds the sum of
$100 and has not been paid in full within 60 days from the date
the dishonored payment was first delivered to the Secretary of
State, the Secretary of State shall assess a penalty of 25% of
such amount remaining unpaid.
All amounts payable under this Section shall be computed to
the nearest dollar. Out of each fee collected for dishonored
payments, $5 shall be deposited in the Secretary of State
Special Services Fund.
(d) The minimum fee and tax to be paid by any applicant for
apportionment of a fleet of vehicles under this Code shall be
$15 if the application was filed on or before the date
specified by the Secretary together with fees and taxes due. If
an application and the fees or taxes due are filed after the

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date specified by the Secretary, the Secretary may prescribe
the payment of interest at the rate of 1/2 of 1% per month or
fraction thereof after such due date and a minimum of $8.
(e) Trucks, truck tractors, truck tractors with loads, and
motor buses, any one of which having a combined total weight in
excess of 12,000 lbs. shall file an application for a Fleet
Reciprocity Permit issued by the Secretary of State. This
permit shall be in the possession of any driver operating a
vehicle on Illinois highways. Any foreign licensed vehicle of
the second division operating at any time in Illinois without a
Fleet Reciprocity Permit or other proper Illinois
registration, shall subject the operator to the penalties
provided in Section 3-834 of this Code. For the purposes of
this Code, "Fleet Reciprocity Permit" means any second division
motor vehicle with a foreign license and used only in
interstate transportation of goods. The fee for such permit
shall be $15 per fleet which shall include all vehicles of the
fleet being registered.
(f) For purposes of this Section, "all-terrain vehicle or
off-highway motorcycle used for production agriculture" means
any all-terrain vehicle or off-highway motorcycle used in the
raising of or the propagation of livestock, crops for sale for
human consumption, crops for livestock consumption, and
production seed stock grown for the propagation of feed grains
and the husbandry of animals or for the purpose of providing a
food product, including the husbandry of blood stock as a main

HB5561 - 895 - LRB101 17547 JWD 66965 b
source of providing a food product. "All-terrain vehicle or
off-highway motorcycle used in production agriculture" also
means any all-terrain vehicle or off-highway motorcycle used in
animal husbandry, floriculture, aquaculture, horticulture, and
viticulture.
(g) All of the proceeds of the additional fees imposed by
Public Act 96-34 shall be deposited into the Capital Projects
Fund.
(h) The fee for a duplicate registration sticker or
stickers shall be the amount required under subsection (a) or
the vehicle's annual registration fee amount, whichever is
less.
(i) All of the proceeds of the additional fees imposed by
this amendatory Act of the 101st General Assembly shall be
deposited into the Road Fund.
(Source: P.A. 100-956, eff. 1-1-19; 101-32, eff. 6-28-19;
101-604, eff. 12-13-19.)
(30 ILCS 105/5.891 rep.)
(30 ILCS 105/5.893 rep.)
(30 ILCS 105/5.894 rep.)
Section 15-50. The State Finance Act is amended by
repealing Sections 5.891, 5.893, and 5.894, all as added by
Public Act 101-32.
Section 15-55. The Illinois Vehicle Code is amended by

HB5561 - 896 - LRB101 17547 JWD 66965 b
changing Section 11-208.3 as follows:
(625 ILCS 5/11-208.3) (from Ch. 95 1/2, par. 11-208.3)
(Text of Section before amendment by P.A. 101-623)
Sec. 11-208.3. Administrative adjudication of violations
of traffic regulations concerning the standing, parking, or
condition of vehicles, automated traffic law violations, and
automated speed enforcement system violations.
(a) Any municipality or county may provide by ordinance for
a system of administrative adjudication of vehicular standing
and parking violations and vehicle compliance violations as
described in this subsection, automated traffic law violations
as defined in Section 11-208.6, 11-208.9, or 11-1201.1, and
automated speed enforcement system violations as defined in
Section 11-208.8. The administrative system shall have as its
purpose the fair and efficient enforcement of municipal or
county regulations through the administrative adjudication of
automated speed enforcement system or automated traffic law
violations and violations of municipal or county ordinances
regulating the standing and parking of vehicles, the condition
and use of vehicle equipment, and the display of municipal or
county wheel tax licenses within the municipality's or county's
borders. The administrative system shall only have authority to
adjudicate civil offenses carrying fines not in excess of $500
or requiring the completion of a traffic education program, or
both, that occur after the effective date of the ordinance

HB5561 - 897 - LRB101 17547 JWD 66965 b
adopting such a system under this Section. For purposes of this
Section, "compliance violation" means a violation of a
municipal or county regulation governing the condition or use
of equipment on a vehicle or governing the display of a
municipal or county wheel tax license.
(b) Any ordinance establishing a system of administrative
adjudication under this Section shall provide for:
(1) A traffic compliance administrator authorized to
adopt, distribute, and process parking, compliance, and
automated speed enforcement system or automated traffic
law violation notices and other notices required by this
Section, collect money paid as fines and penalties for
violation of parking and compliance ordinances and
automated speed enforcement system or automated traffic
law violations, and operate an administrative adjudication
system. The traffic compliance administrator also may make
a certified report to the Secretary of State under Section
6-306.5.
(2) A parking, standing, compliance, automated speed
enforcement system, or automated traffic law violation
notice that shall specify or include the date, time, and
place of violation of a parking, standing, compliance,
automated speed enforcement system, or automated traffic
law regulation; the particular regulation violated; any
requirement to complete a traffic education program; the
fine and any penalty that may be assessed for late payment

HB5561 - 898 - LRB101 17547 JWD 66965 b
or failure to complete a required traffic education
program, or both, when so provided by ordinance; the
vehicle make or a photograph of the vehicle; the and state
registration number of the vehicle; and the identification
number of the person issuing the notice. With regard to
automated speed enforcement system or automated traffic
law violations, vehicle make shall be specified on the
automated speed enforcement system or automated traffic
law violation notice if the notice does not include a
photograph of the vehicle and the make is available and
readily discernible. With regard to municipalities or
counties with a population of 1 million or more, it shall
be grounds for dismissal of a parking violation if the
state registration number or vehicle make specified is
incorrect. The violation notice shall state that the
completion of any required traffic education program, the
payment of any indicated fine, and the payment of any
applicable penalty for late payment or failure to complete
a required traffic education program, or both, shall
operate as a final disposition of the violation. The notice
also shall contain information as to the availability of a
hearing in which the violation may be contested on its
merits. The violation notice shall specify the time and
manner in which a hearing may be had.
(3) Service of a the parking, standing, or compliance
violation notice by: (i) affixing the original or a

HB5561 - 899 - LRB101 17547 JWD 66965 b
facsimile of the notice to an unlawfully parked or standing
vehicle; or (ii) by handing the notice to the operator of a
vehicle if he or she is present; or (iii) mailing the
notice to the address of the registered owner or lessee of
the cited vehicle as recorded with the Secretary of State
or the lessor of the motor vehicle within 30 days after the
Secretary of State or the lessor of the motor vehicle
notifies the municipality or county of the identity of the
owner or lessee of the vehicle, but not later than 90 days
after date of the violation, except that in the case of a
lessee of a motor vehicle, service of a parking, standing,
or compliance violation notice may occur no later than 210
days after the violation; and service of an automated speed
enforcement system or automated traffic law violation
notice by mail to the address of the registered owner or
lessee of the cited vehicle as recorded with the Secretary
of State or the lessor of the motor vehicle within 30 days
after the Secretary of State or the lessor of the motor
vehicle notifies the municipality or county of the identity
of the owner or lessee of the vehicle, but not later than
90 days after the violation, except that in the case of a
lessee of a motor vehicle, service of an automated traffic
law violation notice may occur no later than 210 days after
the violation. A person authorized by ordinance to issue
and serve parking, standing, and compliance violation
notices shall certify as to the correctness of the facts

HB5561 - 900 - LRB101 17547 JWD 66965 b
entered on the violation notice by signing his or her name
to the notice at the time of service or in the case of a
notice produced by a computerized device, by signing a
single certificate to be kept by the traffic compliance
administrator attesting to the correctness of all notices
produced by the device while it was under his or her
control. In the case of an automated traffic law violation,
the ordinance shall require a determination by a technician
employed or contracted by the municipality or county that,
based on inspection of recorded images, the motor vehicle
was being operated in violation of Section 11-208.6,
11-208.9, or 11-1201.1 or a local ordinance. If the
technician determines that the vehicle entered the
intersection as part of a funeral procession or in order to
yield the right-of-way to an emergency vehicle, a citation
shall not be issued. In municipalities with a population of
less than 1,000,000 inhabitants and counties with a
population of less than 3,000,000 inhabitants, the
automated traffic law ordinance shall require that all
determinations by a technician that a motor vehicle was
being operated in violation of Section 11-208.6, 11-208.9,
or 11-1201.1 or a local ordinance must be reviewed and
approved by a law enforcement officer or retired law
enforcement officer of the municipality or county issuing
the violation. In municipalities with a population of
1,000,000 or more inhabitants and counties with a

HB5561 - 901 - LRB101 17547 JWD 66965 b
population of 3,000,000 or more inhabitants, the automated
traffic law ordinance shall require that all
determinations by a technician that a motor vehicle was
being operated in violation of Section 11-208.6, 11-208.9,
or 11-1201.1 or a local ordinance must be reviewed and
approved by a law enforcement officer or retired law
enforcement officer of the municipality or county issuing
the violation or by an additional fully-trained reviewing
technician who is not employed by the contractor who
employs the technician who made the initial determination.
In the case of an automated speed enforcement system
violation, the ordinance shall require a determination by a
technician employed by the municipality, based upon an
inspection of recorded images, video or other
documentation, including documentation of the speed limit
and automated speed enforcement signage, and documentation
of the inspection, calibration, and certification of the
speed equipment, that the vehicle was being operated in
violation of Article VI of Chapter 11 of this Code or a
similar local ordinance. If the technician determines that
the vehicle speed was not determined by a calibrated,
certified speed equipment device based upon the speed
equipment documentation, or if the vehicle was an emergency
vehicle, a citation may not be issued. The automated speed
enforcement ordinance shall require that all
determinations by a technician that a violation occurred be

HB5561 - 902 - LRB101 17547 JWD 66965 b
reviewed and approved by a law enforcement officer or
retired law enforcement officer of the municipality
issuing the violation or by an additional fully trained
reviewing technician who is not employed by the contractor
who employs the technician who made the initial
determination. Routine and independent calibration of the
speeds produced by automated speed enforcement systems and
equipment shall be conducted annually by a qualified
technician. Speeds produced by an automated speed
enforcement system shall be compared with speeds produced
by lidar or other independent equipment. Radar or lidar
equipment shall undergo an internal validation test no less
frequently than once each week. Qualified technicians
shall test loop based equipment no less frequently than
once a year. Radar equipment shall be checked for accuracy
by a qualified technician when the unit is serviced, when
unusual or suspect readings persist, or when deemed
necessary by a reviewing technician. Radar equipment shall
be checked with the internal frequency generator and the
internal circuit test whenever the radar is turned on.
Technicians must be alert for any unusual or suspect
readings, and if unusual or suspect readings of a radar
unit persist, that unit shall immediately be removed from
service and not returned to service until it has been
checked by a qualified technician and determined to be
functioning properly. Documentation of the annual

HB5561 - 903 - LRB101 17547 JWD 66965 b
calibration results, including the equipment tested, test
date, technician performing the test, and test results,
shall be maintained and available for use in the
determination of an automated speed enforcement system
violation and issuance of a citation. The technician
performing the calibration and testing of the automated
speed enforcement equipment shall be trained and certified
in the use of equipment for speed enforcement purposes.
Training on the speed enforcement equipment may be
conducted by law enforcement, civilian, or manufacturer's
personnel and if applicable may be equivalent to the
equipment use and operations training included in the Speed
Measuring Device Operator Program developed by the
National Highway Traffic Safety Administration (NHTSA).
The vendor or technician who performs the work shall keep
accurate records on each piece of equipment the technician
calibrates and tests. As used in this paragraph,
"fully-trained reviewing technician" means a person who
has received at least 40 hours of supervised training in
subjects which shall include image inspection and
interpretation, the elements necessary to prove a
violation, license plate identification, and traffic
safety and management. In all municipalities and counties,
the automated speed enforcement system or automated
traffic law ordinance shall require that no additional fee
shall be charged to the alleged violator for exercising his

HB5561 - 904 - LRB101 17547 JWD 66965 b
or her right to an administrative hearing, and persons
shall be given at least 25 days following an administrative
hearing to pay any civil penalty imposed by a finding that
Section 11-208.6, 11-208.8, 11-208.9, or 11-1201.1 or a
similar local ordinance has been violated. The original or
a facsimile of the violation notice or, in the case of a
notice produced by a computerized device, a printed record
generated by the device showing the facts entered on the
notice, shall be retained by the traffic compliance
administrator, and shall be a record kept in the ordinary
course of business. A parking, standing, compliance,
automated speed enforcement system, or automated traffic
law violation notice issued, signed and served in
accordance with this Section, a copy of the notice, or the
computer generated record shall be prima facie correct and
shall be prima facie evidence of the correctness of the
facts shown on the notice. The notice, copy, or computer
generated record shall be admissible in any subsequent
administrative or legal proceedings.
(4) An opportunity for a hearing for the registered
owner of the vehicle cited in the parking, standing,
compliance, automated speed enforcement system, or
automated traffic law violation notice in which the owner
may contest the merits of the alleged violation, and during
which formal or technical rules of evidence shall not
apply; provided, however, that under Section 11-1306 of

HB5561 - 905 - LRB101 17547 JWD 66965 b
this Code the lessee of a vehicle cited in the violation
notice likewise shall be provided an opportunity for a
hearing of the same kind afforded the registered owner. The
hearings shall be recorded, and the person conducting the
hearing on behalf of the traffic compliance administrator
shall be empowered to administer oaths and to secure by
subpoena both the attendance and testimony of witnesses and
the production of relevant books and papers. Persons
appearing at a hearing under this Section may be
represented by counsel at their expense. The ordinance may
also provide for internal administrative review following
the decision of the hearing officer.
(5) Service of additional notices, sent by first class
United States mail, postage prepaid, to the address of the
registered owner of the cited vehicle as recorded with the
Secretary of State or, if any notice to that address is
returned as undeliverable, to the last known address
recorded in a United States Post Office approved database,
or, under Section 11-1306 or subsection (p) of Section
11-208.6 or 11-208.9, or subsection (p) of Section 11-208.8
of this Code, to the lessee of the cited vehicle at the
last address known to the lessor of the cited vehicle at
the time of lease or, if any notice to that address is
returned as undeliverable, to the last known address
recorded in a United States Post Office approved database.
The service shall be deemed complete as of the date of

HB5561 - 906 - LRB101 17547 JWD 66965 b
deposit in the United States mail. The notices shall be in
the following sequence and shall include, but not be
limited to, the information specified herein:
(i) A second notice of parking, standing, or
compliance violation if the first notice of the
violation was issued by affixing the original or a
facsimile of the notice to the unlawfully parked
vehicle or by handing the notice to the operator. This
notice shall specify or include the date and location
of the violation cited in the parking, standing, or
compliance violation notice, the particular regulation
violated, the vehicle make or a photograph of the
vehicle, the and state registration number of the
vehicle, any requirement to complete a traffic
education program, the fine and any penalty that may be
assessed for late payment or failure to complete a
traffic education program, or both, when so provided by
ordinance, the availability of a hearing in which the
violation may be contested on its merits, and the time
and manner in which the hearing may be had. The notice
of violation shall also state that failure to complete
a required traffic education program, to pay the
indicated fine and any applicable penalty, or to appear
at a hearing on the merits in the time and manner
specified, will result in a final determination of
violation liability for the cited violation in the

HB5561 - 907 - LRB101 17547 JWD 66965 b
amount of the fine or penalty indicated, and that, upon
the occurrence of a final determination of violation
liability for the failure, and the exhaustion of, or
failure to exhaust, available administrative or
judicial procedures for review, any incomplete traffic
education program or any unpaid fine or penalty, or
both, will constitute a debt due and owing the
municipality or county.
(ii) A notice of final determination of parking,
standing, compliance, automated speed enforcement
system, or automated traffic law violation liability.
This notice shall be sent following a final
determination of parking, standing, compliance,
automated speed enforcement system, or automated
traffic law violation liability and the conclusion of
judicial review procedures taken under this Section.
The notice shall state that the incomplete traffic
education program or the unpaid fine or penalty, or
both, is a debt due and owing the municipality or
county. The notice shall contain warnings that failure
to complete any required traffic education program or
to pay any fine or penalty due and owing the
municipality or county, or both, within the time
specified may result in the municipality's or county's
filing of a petition in the Circuit Court to have the
incomplete traffic education program or unpaid fine or

HB5561 - 908 - LRB101 17547 JWD 66965 b
penalty, or both, rendered a judgment as provided by
this Section, or may result in suspension of the
person's driver's drivers license for failure to
complete a traffic education program or to pay fines or
penalties, or both, for 10 or more parking violations
under Section 6-306.5, or a combination of 5 or more
automated traffic law violations under Section
11-208.6 or 11-208.9 or automated speed enforcement
system violations under Section 11-208.8.
(6) A notice of impending driver's drivers license
suspension. This notice shall be sent to the person liable
for failure to complete a required traffic education
program or to pay any fine or penalty that remains due and
owing, or both, on 10 or more parking violations or
combination of 5 or more unpaid automated speed enforcement
system or automated traffic law violations. The notice
shall state that failure to complete a required traffic
education program or to pay the fine or penalty owing, or
both, within 45 days of the notice's date will result in
the municipality or county notifying the Secretary of State
that the person is eligible for initiation of suspension
proceedings under Section 6-306.5 of this Code. The notice
shall also state that the person may obtain a photostatic
copy of an original ticket imposing a fine or penalty by
sending a self-addressed self addressed, stamped envelope
to the municipality or county along with a request for the

HB5561 - 909 - LRB101 17547 JWD 66965 b
photostatic copy. The notice of impending driver's drivers
license suspension shall be sent by first class United
States mail, postage prepaid, to the address recorded with
the Secretary of State or, if any notice to that address is
returned as undeliverable, to the last known address
recorded in a United States Post Office approved database.
(7) Final determinations of violation liability. A
final determination of violation liability shall occur
following failure to complete the required traffic
education program or to pay the fine or penalty, or both,
after a hearing officer's determination of violation
liability and the exhaustion of or failure to exhaust any
administrative review procedures provided by ordinance.
Where a person fails to appear at a hearing to contest the
alleged violation in the time and manner specified in a
prior mailed notice, the hearing officer's determination
of violation liability shall become final: (A) upon denial
of a timely petition to set aside that determination, or
(B) upon expiration of the period for filing the petition
without a filing having been made.
(8) A petition to set aside a determination of parking,
standing, compliance, automated speed enforcement system,
or automated traffic law violation liability that may be
filed by a person owing an unpaid fine or penalty. A
petition to set aside a determination of liability may also
be filed by a person required to complete a traffic

HB5561 - 910 - LRB101 17547 JWD 66965 b
education program. The petition shall be filed with and
ruled upon by the traffic compliance administrator in the
manner and within the time specified by ordinance. The
grounds for the petition may be limited to: (A) the person
not having been the owner or lessee of the cited vehicle on
the date the violation notice was issued, (B) the person
having already completed the required traffic education
program or paid the fine or penalty, or both, for the
violation in question, and (C) excusable failure to appear
at or request a new date for a hearing. With regard to
municipalities or counties with a population of 1 million
or more, it shall be grounds for dismissal of a parking
violation if the state registration number or vehicle make,
only if specified in the violation notice, is incorrect.
After the determination of parking, standing, compliance,
automated speed enforcement system, or automated traffic
law violation liability has been set aside upon a showing
of just cause, the registered owner shall be provided with
a hearing on the merits for that violation.
(9) Procedures for non-residents. Procedures by which
persons who are not residents of the municipality or county
may contest the merits of the alleged violation without
attending a hearing.
(10) A schedule of civil fines for violations of
vehicular standing, parking, compliance, automated speed
enforcement system, or automated traffic law regulations

HB5561 - 911 - LRB101 17547 JWD 66965 b
enacted by ordinance pursuant to this Section, and a
schedule of penalties for late payment of the fines or
failure to complete required traffic education programs,
provided, however, that the total amount of the fine and
penalty for any one violation shall not exceed $250, except
as provided in subsection (c) of Section 11-1301.3 of this
Code.
(11) Other provisions as are necessary and proper to
carry into effect the powers granted and purposes stated in
this Section.
(c) Any municipality or county establishing vehicular
standing, parking, compliance, automated speed enforcement
system, or automated traffic law regulations under this Section
may also provide by ordinance for a program of vehicle
immobilization for the purpose of facilitating enforcement of
those regulations. The program of vehicle immobilization shall
provide for immobilizing any eligible vehicle upon the public
way by presence of a restraint in a manner to prevent operation
of the vehicle. Any ordinance establishing a program of vehicle
immobilization under this Section shall provide:
(1) Criteria for the designation of vehicles eligible
for immobilization. A vehicle shall be eligible for
immobilization when the registered owner of the vehicle has
accumulated the number of incomplete traffic education
programs or unpaid final determinations of parking,
standing, compliance, automated speed enforcement system,

HB5561 - 912 - LRB101 17547 JWD 66965 b
or automated traffic law violation liability, or both, as
determined by ordinance.
(2) A notice of impending vehicle immobilization and a
right to a hearing to challenge the validity of the notice
by disproving liability for the incomplete traffic
education programs or unpaid final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation liability, or
both, listed on the notice.
(3) The right to a prompt hearing after a vehicle has
been immobilized or subsequently towed without the
completion of the required traffic education program or
payment of the outstanding fines and penalties on parking,
standing, compliance, automated speed enforcement system,
or automated traffic law violations, or both, for which
final determinations have been issued. An order issued
after the hearing is a final administrative decision within
the meaning of Section 3-101 of the Code of Civil
Procedure.
(4) A post immobilization and post-towing notice
advising the registered owner of the vehicle of the right
to a hearing to challenge the validity of the impoundment.
(d) Judicial review of final determinations of parking,
standing, compliance, automated speed enforcement system, or
automated traffic law violations and final administrative
decisions issued after hearings regarding vehicle

HB5561 - 913 - LRB101 17547 JWD 66965 b
immobilization and impoundment made under this Section shall be
subject to the provisions of the Administrative Review Law.
(e) Any fine, penalty, incomplete traffic education
program, or part of any fine or any penalty remaining unpaid
after the exhaustion of, or the failure to exhaust,
administrative remedies created under this Section and the
conclusion of any judicial review procedures shall be a debt
due and owing the municipality or county and, as such, may be
collected in accordance with applicable law. Completion of any
required traffic education program and payment in full of any
fine or penalty resulting from a standing, parking, compliance,
automated speed enforcement system, or automated traffic law
violation shall constitute a final disposition of that
violation.
(f) After the expiration of the period within which
judicial review may be sought for a final determination of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation, the municipality or
county may commence a proceeding in the Circuit Court for
purposes of obtaining a judgment on the final determination of
violation. Nothing in this Section shall prevent a municipality
or county from consolidating multiple final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violations against a person in
a proceeding. Upon commencement of the action, the municipality
or county shall file a certified copy or record of the final

HB5561 - 914 - LRB101 17547 JWD 66965 b
determination of parking, standing, compliance, automated
speed enforcement system, or automated traffic law violation,
which shall be accompanied by a certification that recites
facts sufficient to show that the final determination of
violation was issued in accordance with this Section and the
applicable municipal or county ordinance. Service of the
summons and a copy of the petition may be by any method
provided by Section 2-203 of the Code of Civil Procedure or by
certified mail, return receipt requested, provided that the
total amount of fines and penalties for final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violations does not exceed
$2500. If the court is satisfied that the final determination
of parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation was entered in
accordance with the requirements of this Section and the
applicable municipal or county ordinance, and that the
registered owner or the lessee, as the case may be, had an
opportunity for an administrative hearing and for judicial
review as provided in this Section, the court shall render
judgment in favor of the municipality or county and against the
registered owner or the lessee for the amount indicated in the
final determination of parking, standing, compliance,
automated speed enforcement system, or automated traffic law
violation, plus costs. The judgment shall have the same effect
and may be enforced in the same manner as other judgments for

HB5561 - 915 - LRB101 17547 JWD 66965 b
the recovery of money.
(g) The fee for participating in a traffic education
program under this Section shall not exceed $25.
A low-income individual required to complete a traffic
education program under this Section who provides proof of
eligibility for the federal earned income tax credit under
Section 32 of the Internal Revenue Code or the Illinois earned
income tax credit under Section 212 of the Illinois Income Tax
Act shall not be required to pay any fee for participating in a
required traffic education program.
(Source: P.A. 101-32, eff. 6-28-19; revised 1-21-20.)
(Text of Section after amendment by P.A. 101-623)
Sec. 11-208.3. Administrative adjudication of violations
of traffic regulations concerning the standing, parking, or
condition of vehicles, automated traffic law violations, and
automated speed enforcement system violations.
(a) Any municipality or county may provide by ordinance for
a system of administrative adjudication of vehicular standing
and parking violations and vehicle compliance violations as
described in this subsection, automated traffic law violations
as defined in Section 11-208.6, 11-208.9, or 11-1201.1, and
automated speed enforcement system violations as defined in
Section 11-208.8. The administrative system shall have as its
purpose the fair and efficient enforcement of municipal or
county regulations through the administrative adjudication of

HB5561 - 916 - LRB101 17547 JWD 66965 b
automated speed enforcement system or automated traffic law
violations and violations of municipal or county ordinances
regulating the standing and parking of vehicles, the condition
and use of vehicle equipment, and the display of municipal or
county wheel tax licenses within the municipality's or county's
borders. The administrative system shall only have authority to
adjudicate civil offenses carrying fines not in excess of $500
or requiring the completion of a traffic education program, or
both, that occur after the effective date of the ordinance
adopting such a system under this Section. For purposes of this
Section, "compliance violation" means a violation of a
municipal or county regulation governing the condition or use
of equipment on a vehicle or governing the display of a
municipal or county wheel tax license.
(b) Any ordinance establishing a system of administrative
adjudication under this Section shall provide for:
(1) A traffic compliance administrator authorized to
adopt, distribute, and process parking, compliance, and
automated speed enforcement system or automated traffic
law violation notices and other notices required by this
Section, collect money paid as fines and penalties for
violation of parking and compliance ordinances and
automated speed enforcement system or automated traffic
law violations, and operate an administrative adjudication
system. The traffic compliance administrator also may make
a certified report to the Secretary of State under Section

HB5561 - 917 - LRB101 17547 JWD 66965 b
6-306.5.
(2) A parking, standing, compliance, automated speed
enforcement system, or automated traffic law violation
notice that shall specify or include the date, time, and
place of violation of a parking, standing, compliance,
automated speed enforcement system, or automated traffic
law regulation; the particular regulation violated; any
requirement to complete a traffic education program; the
fine and any penalty that may be assessed for late payment
or failure to complete a required traffic education
program, or both, when so provided by ordinance; the
vehicle make or a photograph of the vehicle; the and state
registration number of the vehicle; and the identification
number of the person issuing the notice. With regard to
automated speed enforcement system or automated traffic
law violations, vehicle make shall be specified on the
automated speed enforcement system or automated traffic
law violation notice if the notice does not include a
photograph of the vehicle and the make is available and
readily discernible. With regard to municipalities or
counties with a population of 1 million or more, it shall
be grounds for dismissal of a parking violation if the
state registration number or vehicle make specified is
incorrect. The violation notice shall state that the
completion of any required traffic education program, the
payment of any indicated fine, and the payment of any

HB5561 - 918 - LRB101 17547 JWD 66965 b
applicable penalty for late payment or failure to complete
a required traffic education program, or both, shall
operate as a final disposition of the violation. The notice
also shall contain information as to the availability of a
hearing in which the violation may be contested on its
merits. The violation notice shall specify the time and
manner in which a hearing may be had.
(3) Service of a the parking, standing, or compliance
violation notice by: (i) affixing the original or a
facsimile of the notice to an unlawfully parked or standing
vehicle; or (ii) by handing the notice to the operator of a
vehicle if he or she is present; or (iii) mailing the
notice to the address of the registered owner or lessee of
the cited vehicle as recorded with the Secretary of State
or the lessor of the motor vehicle within 30 days after the
Secretary of State or the lessor of the motor vehicle
notifies the municipality or county of the identity of the
owner or lessee of the vehicle, but not later than 90 days
after date of the violation, except that in the case of a
lessee of a motor vehicle, service of a parking, standing,
or compliance violation notice may occur no later than 210
days after the violation; and service of an automated speed
enforcement system or automated traffic law violation
notice by mail to the address of the registered owner or
lessee of the cited vehicle as recorded with the Secretary
of State or the lessor of the motor vehicle within 30 days

HB5561 - 919 - LRB101 17547 JWD 66965 b
after the Secretary of State or the lessor of the motor
vehicle notifies the municipality or county of the identity
of the owner or lessee of the vehicle, but not later than
90 days after the violation, except that in the case of a
lessee of a motor vehicle, service of an automated traffic
law violation notice may occur no later than 210 days after
the violation. A person authorized by ordinance to issue
and serve parking, standing, and compliance violation
notices shall certify as to the correctness of the facts
entered on the violation notice by signing his or her name
to the notice at the time of service or in the case of a
notice produced by a computerized device, by signing a
single certificate to be kept by the traffic compliance
administrator attesting to the correctness of all notices
produced by the device while it was under his or her
control. In the case of an automated traffic law violation,
the ordinance shall require a determination by a technician
employed or contracted by the municipality or county that,
based on inspection of recorded images, the motor vehicle
was being operated in violation of Section 11-208.6,
11-208.9, or 11-1201.1 or a local ordinance. If the
technician determines that the vehicle entered the
intersection as part of a funeral procession or in order to
yield the right-of-way to an emergency vehicle, a citation
shall not be issued. In municipalities with a population of
less than 1,000,000 inhabitants and counties with a

HB5561 - 920 - LRB101 17547 JWD 66965 b
population of less than 3,000,000 inhabitants, the
automated traffic law ordinance shall require that all
determinations by a technician that a motor vehicle was
being operated in violation of Section 11-208.6, 11-208.9,
or 11-1201.1 or a local ordinance must be reviewed and
approved by a law enforcement officer or retired law
enforcement officer of the municipality or county issuing
the violation. In municipalities with a population of
1,000,000 or more inhabitants and counties with a
population of 3,000,000 or more inhabitants, the automated
traffic law ordinance shall require that all
determinations by a technician that a motor vehicle was
being operated in violation of Section 11-208.6, 11-208.9,
or 11-1201.1 or a local ordinance must be reviewed and
approved by a law enforcement officer or retired law
enforcement officer of the municipality or county issuing
the violation or by an additional fully-trained reviewing
technician who is not employed by the contractor who
employs the technician who made the initial determination.
In the case of an automated speed enforcement system
violation, the ordinance shall require a determination by a
technician employed by the municipality, based upon an
inspection of recorded images, video or other
documentation, including documentation of the speed limit
and automated speed enforcement signage, and documentation
of the inspection, calibration, and certification of the

HB5561 - 921 - LRB101 17547 JWD 66965 b
speed equipment, that the vehicle was being operated in
violation of Article VI of Chapter 11 of this Code or a
similar local ordinance. If the technician determines that
the vehicle speed was not determined by a calibrated,
certified speed equipment device based upon the speed
equipment documentation, or if the vehicle was an emergency
vehicle, a citation may not be issued. The automated speed
enforcement ordinance shall require that all
determinations by a technician that a violation occurred be
reviewed and approved by a law enforcement officer or
retired law enforcement officer of the municipality
issuing the violation or by an additional fully trained
reviewing technician who is not employed by the contractor
who employs the technician who made the initial
determination. Routine and independent calibration of the
speeds produced by automated speed enforcement systems and
equipment shall be conducted annually by a qualified
technician. Speeds produced by an automated speed
enforcement system shall be compared with speeds produced
by lidar or other independent equipment. Radar or lidar
equipment shall undergo an internal validation test no less
frequently than once each week. Qualified technicians
shall test loop based equipment no less frequently than
once a year. Radar equipment shall be checked for accuracy
by a qualified technician when the unit is serviced, when
unusual or suspect readings persist, or when deemed

HB5561 - 922 - LRB101 17547 JWD 66965 b
necessary by a reviewing technician. Radar equipment shall
be checked with the internal frequency generator and the
internal circuit test whenever the radar is turned on.
Technicians must be alert for any unusual or suspect
readings, and if unusual or suspect readings of a radar
unit persist, that unit shall immediately be removed from
service and not returned to service until it has been
checked by a qualified technician and determined to be
functioning properly. Documentation of the annual
calibration results, including the equipment tested, test
date, technician performing the test, and test results,
shall be maintained and available for use in the
determination of an automated speed enforcement system
violation and issuance of a citation. The technician
performing the calibration and testing of the automated
speed enforcement equipment shall be trained and certified
in the use of equipment for speed enforcement purposes.
Training on the speed enforcement equipment may be
conducted by law enforcement, civilian, or manufacturer's
personnel and if applicable may be equivalent to the
equipment use and operations training included in the Speed
Measuring Device Operator Program developed by the
National Highway Traffic Safety Administration (NHTSA).
The vendor or technician who performs the work shall keep
accurate records on each piece of equipment the technician
calibrates and tests. As used in this paragraph,

HB5561 - 923 - LRB101 17547 JWD 66965 b
"fully-trained reviewing technician" means a person who
has received at least 40 hours of supervised training in
subjects which shall include image inspection and
interpretation, the elements necessary to prove a
violation, license plate identification, and traffic
safety and management. In all municipalities and counties,
the automated speed enforcement system or automated
traffic law ordinance shall require that no additional fee
shall be charged to the alleged violator for exercising his
or her right to an administrative hearing, and persons
shall be given at least 25 days following an administrative
hearing to pay any civil penalty imposed by a finding that
Section 11-208.6, 11-208.8, 11-208.9, or 11-1201.1 or a
similar local ordinance has been violated. The original or
a facsimile of the violation notice or, in the case of a
notice produced by a computerized device, a printed record
generated by the device showing the facts entered on the
notice, shall be retained by the traffic compliance
administrator, and shall be a record kept in the ordinary
course of business. A parking, standing, compliance,
automated speed enforcement system, or automated traffic
law violation notice issued, signed and served in
accordance with this Section, a copy of the notice, or the
computer generated record shall be prima facie correct and
shall be prima facie evidence of the correctness of the
facts shown on the notice. The notice, copy, or computer

HB5561 - 924 - LRB101 17547 JWD 66965 b
generated record shall be admissible in any subsequent
administrative or legal proceedings.
(4) An opportunity for a hearing for the registered
owner of the vehicle cited in the parking, standing,
compliance, automated speed enforcement system, or
automated traffic law violation notice in which the owner
may contest the merits of the alleged violation, and during
which formal or technical rules of evidence shall not
apply; provided, however, that under Section 11-1306 of
this Code the lessee of a vehicle cited in the violation
notice likewise shall be provided an opportunity for a
hearing of the same kind afforded the registered owner. The
hearings shall be recorded, and the person conducting the
hearing on behalf of the traffic compliance administrator
shall be empowered to administer oaths and to secure by
subpoena both the attendance and testimony of witnesses and
the production of relevant books and papers. Persons
appearing at a hearing under this Section may be
represented by counsel at their expense. The ordinance may
also provide for internal administrative review following
the decision of the hearing officer.
(5) Service of additional notices, sent by first class
United States mail, postage prepaid, to the address of the
registered owner of the cited vehicle as recorded with the
Secretary of State or, if any notice to that address is
returned as undeliverable, to the last known address

HB5561 - 925 - LRB101 17547 JWD 66965 b
recorded in a United States Post Office approved database,
or, under Section 11-1306 or subsection (p) of Section
11-208.6 or 11-208.9, or subsection (p) of Section 11-208.8
of this Code, to the lessee of the cited vehicle at the
last address known to the lessor of the cited vehicle at
the time of lease or, if any notice to that address is
returned as undeliverable, to the last known address
recorded in a United States Post Office approved database.
The service shall be deemed complete as of the date of
deposit in the United States mail. The notices shall be in
the following sequence and shall include, but not be
limited to the information specified herein:
(i) A second notice of parking, standing, or
compliance violation if the first notice of the
violation was issued by affixing the original or a
facsimile of the notice to the unlawfully parked
vehicle or by handing the notice to the operator. This
notice shall specify or include the date and location
of the violation cited in the parking, standing, or
compliance violation notice, the particular regulation
violated, the vehicle make or a photograph of the
vehicle, the and state registration number of the
vehicle, any requirement to complete a traffic
education program, the fine and any penalty that may be
assessed for late payment or failure to complete a
traffic education program, or both, when so provided by

HB5561 - 926 - LRB101 17547 JWD 66965 b
ordinance, the availability of a hearing in which the
violation may be contested on its merits, and the time
and manner in which the hearing may be had. The notice
of violation shall also state that failure to complete
a required traffic education program, to pay the
indicated fine and any applicable penalty, or to appear
at a hearing on the merits in the time and manner
specified, will result in a final determination of
violation liability for the cited violation in the
amount of the fine or penalty indicated, and that, upon
the occurrence of a final determination of violation
liability for the failure, and the exhaustion of, or
failure to exhaust, available administrative or
judicial procedures for review, any incomplete traffic
education program or any unpaid fine or penalty, or
both, will constitute a debt due and owing the
municipality or county.
(ii) A notice of final determination of parking,
standing, compliance, automated speed enforcement
system, or automated traffic law violation liability.
This notice shall be sent following a final
determination of parking, standing, compliance,
automated speed enforcement system, or automated
traffic law violation liability and the conclusion of
judicial review procedures taken under this Section.
The notice shall state that the incomplete traffic

HB5561 - 927 - LRB101 17547 JWD 66965 b
education program or the unpaid fine or penalty, or
both, is a debt due and owing the municipality or
county. The notice shall contain warnings that failure
to complete any required traffic education program or
to pay any fine or penalty due and owing the
municipality or county, or both, within the time
specified may result in the municipality's or county's
filing of a petition in the Circuit Court to have the
incomplete traffic education program or unpaid fine or
penalty, or both, rendered a judgment as provided by
this Section, or, where applicable, may result in
suspension of the person's driver's drivers license
for failure to complete a traffic education program or
to pay fines or penalties, or both, for 5 or more
automated traffic law violations under Section
11-208.6 or 11-208.9 or automated speed enforcement
system violations under Section 11-208.8.
(6) A notice of impending driver's drivers license
suspension. This notice shall be sent to the person liable
for failure to complete a required traffic education
program or to pay any fine or penalty that remains due and
owing, or both, on 5 or more unpaid automated speed
enforcement system or automated traffic law violations.
The notice shall state that failure to complete a required
traffic education program or to pay the fine or penalty
owing, or both, within 45 days of the notice's date will

HB5561 - 928 - LRB101 17547 JWD 66965 b
result in the municipality or county notifying the
Secretary of State that the person is eligible for
initiation of suspension proceedings under Section 6-306.5
of this Code. The notice shall also state that the person
may obtain a photostatic copy of an original ticket
imposing a fine or penalty by sending a self-addressed self
addressed, stamped envelope to the municipality or county
along with a request for the photostatic copy. The notice
of impending driver's drivers license suspension shall be
sent by first class United States mail, postage prepaid, to
the address recorded with the Secretary of State or, if any
notice to that address is returned as undeliverable, to the
last known address recorded in a United States Post Office
approved database.
(7) Final determinations of violation liability. A
final determination of violation liability shall occur
following failure to complete the required traffic
education program or to pay the fine or penalty, or both,
after a hearing officer's determination of violation
liability and the exhaustion of or failure to exhaust any
administrative review procedures provided by ordinance.
Where a person fails to appear at a hearing to contest the
alleged violation in the time and manner specified in a
prior mailed notice, the hearing officer's determination
of violation liability shall become final: (A) upon denial
of a timely petition to set aside that determination, or

HB5561 - 929 - LRB101 17547 JWD 66965 b
(B) upon expiration of the period for filing the petition
without a filing having been made.
(8) A petition to set aside a determination of parking,
standing, compliance, automated speed enforcement system,
or automated traffic law violation liability that may be
filed by a person owing an unpaid fine or penalty. A
petition to set aside a determination of liability may also
be filed by a person required to complete a traffic
education program. The petition shall be filed with and
ruled upon by the traffic compliance administrator in the
manner and within the time specified by ordinance. The
grounds for the petition may be limited to: (A) the person
not having been the owner or lessee of the cited vehicle on
the date the violation notice was issued, (B) the person
having already completed the required traffic education
program or paid the fine or penalty, or both, for the
violation in question, and (C) excusable failure to appear
at or request a new date for a hearing. With regard to
municipalities or counties with a population of 1 million
or more, it shall be grounds for dismissal of a parking
violation if the state registration number or vehicle make,
only if specified in the violation notice, is incorrect.
After the determination of parking, standing, compliance,
automated speed enforcement system, or automated traffic
law violation liability has been set aside upon a showing
of just cause, the registered owner shall be provided with

HB5561 - 930 - LRB101 17547 JWD 66965 b
a hearing on the merits for that violation.
(9) Procedures for non-residents. Procedures by which
persons who are not residents of the municipality or county
may contest the merits of the alleged violation without
attending a hearing.
(10) A schedule of civil fines for violations of
vehicular standing, parking, compliance, automated speed
enforcement system, or automated traffic law regulations
enacted by ordinance pursuant to this Section, and a
schedule of penalties for late payment of the fines or
failure to complete required traffic education programs,
provided, however, that the total amount of the fine and
penalty for any one violation shall not exceed $250, except
as provided in subsection (c) of Section 11-1301.3 of this
Code.
(11) Other provisions as are necessary and proper to
carry into effect the powers granted and purposes stated in
this Section.
(c) Any municipality or county establishing vehicular
standing, parking, compliance, automated speed enforcement
system, or automated traffic law regulations under this Section
may also provide by ordinance for a program of vehicle
immobilization for the purpose of facilitating enforcement of
those regulations. The program of vehicle immobilization shall
provide for immobilizing any eligible vehicle upon the public
way by presence of a restraint in a manner to prevent operation

HB5561 - 931 - LRB101 17547 JWD 66965 b
of the vehicle. Any ordinance establishing a program of vehicle
immobilization under this Section shall provide:
(1) Criteria for the designation of vehicles eligible
for immobilization. A vehicle shall be eligible for
immobilization when the registered owner of the vehicle has
accumulated the number of incomplete traffic education
programs or unpaid final determinations of parking,
standing, compliance, automated speed enforcement system,
or automated traffic law violation liability, or both, as
determined by ordinance.
(2) A notice of impending vehicle immobilization and a
right to a hearing to challenge the validity of the notice
by disproving liability for the incomplete traffic
education programs or unpaid final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation liability, or
both, listed on the notice.
(3) The right to a prompt hearing after a vehicle has
been immobilized or subsequently towed without the
completion of the required traffic education program or
payment of the outstanding fines and penalties on parking,
standing, compliance, automated speed enforcement system,
or automated traffic law violations, or both, for which
final determinations have been issued. An order issued
after the hearing is a final administrative decision within
the meaning of Section 3-101 of the Code of Civil

HB5561 - 932 - LRB101 17547 JWD 66965 b
Procedure.
(4) A post immobilization and post-towing notice
advising the registered owner of the vehicle of the right
to a hearing to challenge the validity of the impoundment.
(d) Judicial review of final determinations of parking,
standing, compliance, automated speed enforcement system, or
automated traffic law violations and final administrative
decisions issued after hearings regarding vehicle
immobilization and impoundment made under this Section shall be
subject to the provisions of the Administrative Review Law.
(e) Any fine, penalty, incomplete traffic education
program, or part of any fine or any penalty remaining unpaid
after the exhaustion of, or the failure to exhaust,
administrative remedies created under this Section and the
conclusion of any judicial review procedures shall be a debt
due and owing the municipality or county and, as such, may be
collected in accordance with applicable law. Completion of any
required traffic education program and payment in full of any
fine or penalty resulting from a standing, parking, compliance,
automated speed enforcement system, or automated traffic law
violation shall constitute a final disposition of that
violation.
(f) After the expiration of the period within which
judicial review may be sought for a final determination of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation, the municipality or

HB5561 - 933 - LRB101 17547 JWD 66965 b
county may commence a proceeding in the Circuit Court for
purposes of obtaining a judgment on the final determination of
violation. Nothing in this Section shall prevent a municipality
or county from consolidating multiple final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violations against a person in
a proceeding. Upon commencement of the action, the municipality
or county shall file a certified copy or record of the final
determination of parking, standing, compliance, automated
speed enforcement system, or automated traffic law violation,
which shall be accompanied by a certification that recites
facts sufficient to show that the final determination of
violation was issued in accordance with this Section and the
applicable municipal or county ordinance. Service of the
summons and a copy of the petition may be by any method
provided by Section 2-203 of the Code of Civil Procedure or by
certified mail, return receipt requested, provided that the
total amount of fines and penalties for final determinations of
parking, standing, compliance, automated speed enforcement
system, or automated traffic law violations does not exceed
$2500. If the court is satisfied that the final determination
of parking, standing, compliance, automated speed enforcement
system, or automated traffic law violation was entered in
accordance with the requirements of this Section and the
applicable municipal or county ordinance, and that the
registered owner or the lessee, as the case may be, had an

HB5561 - 934 - LRB101 17547 JWD 66965 b
opportunity for an administrative hearing and for judicial
review as provided in this Section, the court shall render
judgment in favor of the municipality or county and against the
registered owner or the lessee for the amount indicated in the
final determination of parking, standing, compliance,
automated speed enforcement system, or automated traffic law
violation, plus costs. The judgment shall have the same effect
and may be enforced in the same manner as other judgments for
the recovery of money.
(g) The fee for participating in a traffic education
program under this Section shall not exceed $25.
A low-income individual required to complete a traffic
education program under this Section who provides proof of
eligibility for the federal earned income tax credit under
Section 32 of the Internal Revenue Code or the Illinois earned
income tax credit under Section 212 of the Illinois Income Tax
Act shall not be required to pay any fee for participating in a
required traffic education program.
(Source: P.A. 101-32, eff. 6-28-19; 101-623, eff. 7-1-20;
revised 1-21-20.)
Section 15-65. The Counties Code is amended by changing
Section 5-1035.1 as follows:
(55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
Sec. 5-1035.1. County Motor Fuel Tax Law.

HB5561 - 935 - LRB101 17547 JWD 66965 b
(a) The county board of the counties of DuPage, Kane, Lake,
Will, and McHenry may, by an ordinance or resolution adopted by
an affirmative vote of a majority of the members elected or
appointed to the county board, impose a tax upon all persons
engaged in the county in the business of selling motor fuel, as
now or hereafter defined in the Motor Fuel Tax Law, at retail
for the operation of motor vehicles upon public highways or for
the operation of recreational watercraft upon waterways. The
collection of a tax under this Section based on gallonage of
gasoline used for the propulsion of any aircraft is prohibited,
and the collection of a tax based on gallonage of special fuel
used for the propulsion of any aircraft is prohibited on and
after December 1, 2019. Kane County may exempt diesel fuel from
the tax imposed pursuant to this Section. The initial tax rate
may not be less than be imposed, in half-cent increments, at a
rate not exceeding 4 cents per gallon of motor fuel sold at
retail within the county for the purpose of use or consumption
and not for the purpose of resale and may not exceed 8 cents
per gallon of motor fuel sold at retail within the county for
the purpose of use or consumption and not for the purpose of
resale. The proceeds from the tax shall be used by the county
solely for the purposes of operating, constructing, and
improving public highways and waterways and acquiring real
property and rights-of-way for public highways and waterways
within the county imposing the tax.
(a-5) By June 1, 2020, and by June 1 of each year

HB5561 - 936 - LRB101 17547 JWD 66965 b
thereafter, the Department of Revenue shall determine an annual
rate increase to take effect on July 1 of that calendar year
and continue through June 30 of the next calendar year. Not
later than June 1 of each year, the Department of Revenue shall
publish on its website the rate that will take effect on July 1
of that calendar year. The rate shall be equal to the rate in
effect increased by an amount equal to the percentage increase,
if any, in the Consumer Price Index for All Urban Consumers for
all items, published by the United States Department of Labor
for the 12 months ending in March of each year. The rate shall
be rounded to the nearest one-tenth of one cent. Each new rate
may not exceed the rate in effect on June 30 of the previous
year plus one cent.
(b) A tax imposed pursuant to this Section, and all civil
penalties that may be assessed as an incident thereof, shall be
administered, collected, and enforced by the Illinois
Department of Revenue in the same manner as the tax imposed
under the Retailers' Occupation Tax Act, as now or hereafter
amended, insofar as may be practicable; except that in the
event of a conflict with the provisions of this Section, this
Section shall control. The Department of Revenue shall have
full power: to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder.

HB5561 - 937 - LRB101 17547 JWD 66965 b
(b-5) Persons subject to any tax imposed under the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
that tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
(c) Whenever the Department determines that a refund shall
be made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Option Motor Fuel Tax Fund.
(d) The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder, which shall be deposited into the County
Option Motor Fuel Tax Fund, a special fund in the State
Treasury which is hereby created. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the State Comptroller the disbursement of stated sums of
money to named counties for which taxpayers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda) collected
hereunder from retailers within the county during the second

HB5561 - 938 - LRB101 17547 JWD 66965 b
preceding calendar month by the Department, but not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
county; less 2% of the balance, which sum shall be retained by
the State Treasurer to cover the costs incurred by the
Department in administering and enforcing the provisions of
this Section. The Department, at the time of each monthly
disbursement to the counties, shall prepare and certify to the
Comptroller the amount so retained by the State Treasurer,
which shall be transferred into the Tax Compliance and
Administration Fund.
(e) Nothing in this Section shall be construed to authorize
a county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
(f) Until January 1, 2020, an ordinance or resolution
imposing a tax hereunder or effecting a change in the rate
thereof shall be effective on the first day of the second
calendar month next following the month in which the ordinance
or resolution is adopted and a certified copy thereof is filed
with the Department of Revenue, whereupon the Department of
Revenue shall proceed to administer and enforce this Section on
behalf of the county as of the effective date of the ordinance
or resolution.
On and after January 1, 2020, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a

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change in the rate thereof shall either: (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
(g) This Section shall be known and may be cited as the
County Motor Fuel Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
101-275, eff. 8-9-19; 101-604, eff. 12-13-19.)
(20 ILCS 2705/2705-615 rep.)
Section 15-100. The Department of Transportation Law of the
Civil Administrative Code of Illinois is amended by repealing
Section 2705-615, as added by Public Act 101-32.
Article 99.
Section 99-1. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance
30 ILCS 105/5.891 rep.
30 ILCS 105/5.893 rep.
30 ILCS 105/5.894 rep.
30 ILCS 105/5.895 rep.
30 ILCS 105/5.896 rep.
30 ILCS 105/6z-108 rep.
30 ILCS 105/6z-109 rep.
30 ILCS 105/6z-110 rep.
30 ILCS 105/6z-111 rep.
30 ILCS 105/6z-78
30 ILCS 330/2 from Ch. 127, par. 652
30 ILCS 330/2.5
30 ILCS 330/3 from Ch. 127, par. 653
30 ILCS 330/4 from Ch. 127, par. 654
30 ILCS 330/5 from Ch. 127, par. 655
30 ILCS 330/6 from Ch. 127, par. 656
30 ILCS 330/7.6
30 ILCS 330/9 from Ch. 127, par. 659
30 ILCS 330/11 from Ch. 127, par. 661
30 ILCS 330/12 from Ch. 127, par. 662
30 ILCS 330/15 from Ch. 127, par. 665
30 ILCS 330/19 from Ch. 127, par. 669
30 ILCS 425/2 from Ch. 127, par. 2802
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30 ILCS 425/4 from Ch. 127, par. 2804
30 ILCS 425/6 from Ch. 127, par. 2806
30 ILCS 425/8 from Ch. 127, par. 2808
70 ILCS 3615/2.32
35 ILCS 185/Act rep.
35 ILCS 525/Act rep.
5 ILCS 100/5-45 from Ch. 127, par. 1005-45
20 ILCS 605/605-1025 rep.
30 ILCS 105/5.891 rep.
30 ILCS 105/5.893 rep.
30 ILCS 105/5.894 rep.
35 ILCS 5/229 rep.
35 ILCS 105/2 from Ch. 120, par. 439.2
35 ILCS 105/3-5
35 ILCS 110/3-5
35 ILCS 115/3-5
35 ILCS 120/1 from Ch. 120, par. 440
35 ILCS 120/2 from Ch. 120, par. 441
35 ILCS 120/2-5
35 ILCS 120/2-12
35 ILCS 120/2a from Ch. 120, par. 441a
35 ILCS 130/2 from Ch. 120, par. 453.2
35 ILCS 130/29.1 new
35 ILCS 135/2 from Ch. 120, par. 453.32
35 ILCS 135/35 from Ch. 120, par. 453.65
35 ILCS 143/10-5
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35 ILCS 143/10-10
815 ILCS 375/11.1 from Ch. 121 1/2, par. 571.1
30 ILCS 559/Act rep.
30 ILCS 105/5.895 rep.
30 ILCS 500/20-10
820 ILCS 130/5 from Ch. 48, par. 39s-5
230 ILCS 45/Act rep.
30 ILCS 105/5.896 rep.
230 ILCS 10/13 from Ch. 120, par. 2413
720 ILCS 5/28-1 from Ch. 38, par. 28-1
720 ILCS 5/28-3 from Ch. 38, par. 28-3
720 ILCS 5/28-5 from Ch. 38, par. 28-5
230 ILCS 50/Act rep.
30 ILCS 105/5.897 rep.
5 ILCS 120/2 from Ch. 102, par. 42
5 ILCS 430/5-45
20 ILCS 301/5-20
20 ILCS 1605/9.1
20 ILCS 2505/2505-305 was 20 ILCS 2505/39b15.1
30 ILCS 105/6z-45
35 ILCS 5/201 from Ch. 120, par. 2-201
35 ILCS 5/303 from Ch. 120, par. 3-303
35 ILCS 5/304 from Ch. 120, par. 3-304
35 ILCS 5/710 from Ch. 120, par. 7-710
70 ILCS 1825/5.1 from Ch. 19, par. 255.1
205 ILCS 670/12.5
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230 ILCS 5/3.32 rep.
230 ILCS 5/3.33 rep.
230 ILCS 5/3.34 rep.
230 ILCS 5/3.35 rep.
230 ILCS 5/19.5 rep.
230 ILCS 5/34.3 rep.
230 ILCS 5/56 rep.
230 ILCS 5/1.2
230 ILCS 5/3.11 from Ch. 8, par. 37-3.11
230 ILCS 5/3.12 from Ch. 8, par. 37-3.12
230 ILCS 5/6 from Ch. 8, par. 37-6
230 ILCS 5/9 from Ch. 8, par. 37-9
230 ILCS 5/15 from Ch. 8, par. 37-15
230 ILCS 5/18 from Ch. 8, par. 37-18
230 ILCS 5/19 from Ch. 8, par. 37-19
230 ILCS 5/20 from Ch. 8, par. 37-20
230 ILCS 5/21 from Ch. 8, par. 37-21
230 ILCS 5/24 from Ch. 8, par. 37-24
230 ILCS 5/25 from Ch. 8, par. 37-25
230 ILCS 5/26 from Ch. 8, par. 37-26
230 ILCS 5/26.8
230 ILCS 5/26.9
230 ILCS 5/27 from Ch. 8, par. 37-27
230 ILCS 5/29 from Ch. 8, par. 37-29
230 ILCS 5/30 from Ch. 8, par. 37-30
230 ILCS 5/30.5
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230 ILCS 5/31 from Ch. 8, par. 37-31
230 ILCS 5/31.1 from Ch. 8, par. 37-31.1
230 ILCS 5/32.1
230 ILCS 5/36 from Ch. 8, par. 37-36
230 ILCS 5/40 from Ch. 8, par. 37-40
230 ILCS 5/54.75
230 ILCS 10/5.3 rep.
230 ILCS 10/7.7 rep.
230 ILCS 10/7.8 rep.
230 ILCS 10/7.10 rep.
230 ILCS 10/7.11 rep.
230 ILCS 10/7.12 rep.
230 ILCS 10/7.13 rep.
230 ILCS 10/7.14 rep.
230 ILCS 10/7.15 rep.
230 ILCS 10/1 from Ch. 120, par. 2401
230 ILCS 10/2 from Ch. 120, par. 2402
230 ILCS 10/3 from Ch. 120, par. 2403
230 ILCS 10/4 from Ch. 120, par. 2404
230 ILCS 10/5 from Ch. 120, par. 2405
230 ILCS 10/5.1 from Ch. 120, par. 2405.1
230 ILCS 10/6 from Ch. 120, par. 2406
230 ILCS 10/7 from Ch. 120, par. 2407
230 ILCS 10/7.3
230 ILCS 10/7.5
230 ILCS 10/8 from Ch. 120, par. 2408
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230 ILCS 10/9 from Ch. 120, par. 2409
230 ILCS 10/11 from Ch. 120, par. 2411
230 ILCS 10/11.1 from Ch. 120, par. 2411.1
230 ILCS 10/12 from Ch. 120, par. 2412
230 ILCS 10/14 from Ch. 120, par. 2414
230 ILCS 10/15 from Ch. 120, par. 2415
230 ILCS 10/17 from Ch. 120, par. 2417
230 ILCS 10/17.1 from Ch. 120, par. 2417.1
230 ILCS 10/18 from Ch. 120, par. 2418
230 ILCS 10/18.1
230 ILCS 10/19 from Ch. 120, par. 2419
230 ILCS 10/20 from Ch. 120, par. 2420
230 ILCS 10/24
230 ILCS 40/5
230 ILCS 40/15
230 ILCS 40/20
230 ILCS 40/25
230 ILCS 40/30
230 ILCS 40/35
230 ILCS 40/45
230 ILCS 40/55
230 ILCS 40/58
230 ILCS 40/60
230 ILCS 40/79
230 ILCS 40/80
235 ILCS 5/5-1 from Ch. 43, par. 115
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235 ILCS 5/6-30 from Ch. 43, par. 144f
305 ILCS 5/10-17.15
430 ILCS 66/65
720 ILCS 5/28-1.1 from Ch. 38, par. 28-1.1
720 ILCS 5/28-2 from Ch. 38, par. 28-2
720 ILCS 5/28-7 from Ch. 38, par. 28-7
815 ILCS 122/3-5
815 ILCS 420/2 from Ch. 121 1/2, par. 1852
30 ILCS 105/5.490a new
230 ILCS 5/2.1a new
230 ILCS 5/54a new
30 ILCS 178/Act rep.
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 120/3 from Ch. 120, par. 442
35 ILCS 505/2 from Ch. 120, par. 418
35 ILCS 505/8 from Ch. 120, par. 424
35 ILCS 505/8b rep.
65 ILCS 5/8-11-2.3 rep.
625 ILCS 5/3-805 from Ch. 95 1/2, par. 3-805
625 ILCS 5/3-806 from Ch. 95 1/2, par. 3-806
625 ILCS 5/3-815 from Ch. 95 1/2, par. 3-815
625 ILCS 5/3-815.1
625 ILCS 5/3-818 from Ch. 95 1/2, par. 3-818
625 ILCS 5/3-819 from Ch. 95 1/2, par. 3-819
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