Bill Text: IL HB5779 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Horse Racing Act of 1975. Removes language providing that no employee of the Illinois Racing Board, within a period of one year immediately preceding employment, shall have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Gambling Act. Amends the Illinois Gambling Act. Removes language providing that no employee of the Illinois Gaming Board, within a period of one year immediately preceding employment, shall have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Horse Racing Act of 1975.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-14 - Referred to Rules Committee [HB5779 Detail]

Download: Illinois-2023-HB5779-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5779 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED:
230 ILCS 5/6 from Ch. 8, par. 37-6
230 ILCS 10/5 from Ch. 120, par. 2405
Amends the Illinois Horse Racing Act of 1975. Removes language providing that no employee of the Illinois Racing Board, within a period of one year immediately preceding employment, shall have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Gambling Act. Amends the Illinois Gambling Act. Removes language providing that no employee of the Illinois Gaming Board, within a period of one year immediately preceding employment, shall have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Horse Racing Act of 1975.
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A BILL FOR
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AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Horse Racing Act of 1975 is
amended by changing Section 6 as follows:
(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.
(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.

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(c) No member of the Board or employee shall engage in any
political activity.
For the purposes of this subsection (c):
"Political" means any activity in support of or in
connection with any campaign for State or local elective
office or any political organization, but does not include
activities (i) relating to the support or opposition of any
executive, legislative, or administrative action (as those
terms are defined in Section 2 of the Lobbyist Registration
Act), (ii) relating to collective bargaining, or (iii) that
are otherwise in furtherance of the person's official State
duties or governmental and public service functions.
"Political organization" means a party, committee,
association, fund, or other organization (whether or not
incorporated) that is required to file a statement of
organization with the State Board of Elections or county clerk
under Section 9-3 of the Election Code, but only with regard to
those activities that require filing with the State Board of
Elections or county clerk.
(d) Board members and employees may not engage in
communications or any activity that may cause or have the
appearance of causing a conflict of interest. A conflict of
interest exists if a situation influences or creates the
appearance that it may influence judgment or performance of
regulatory duties and responsibilities. This prohibition shall
extend to any act identified by Board action that, in the

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judgment of the Board, could represent the potential for or
the appearance of a conflict of interest.
(e) Board members and employees may not accept any gift,
gratuity, service, compensation, travel, lodging, or thing of
value, with the exception of unsolicited items of an
incidental nature, from any person, corporation, limited
liability company, or entity doing business with the Board.
(f) A Board member or employee shall not use or attempt to
use his or her official position to secure, or attempt to
secure, any privilege, advantage, favor, or influence for
himself or herself or others. No Board member or employee,
within a period of one year immediately preceding nomination
by the Governor or employment, shall have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee or a licensee under the
Illinois Gambling Act. In addition, all Board members and
employees are subject to the restrictions set forth in Section
5-45 of the State Officials and Employees Ethics Act.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 10. The Illinois Gambling Act is amended by
changing Section 5 as follows:
(230 ILCS 10/5) (from Ch. 120, par. 2405)
Sec. 5. Gaming Board.

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(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.
Each member shall have a reasonable knowledge of the practice,
procedure and principles of gambling operations. Each member
shall either be a resident of Illinois or shall certify that he
or she will become a resident of Illinois before taking
office.
On and after the effective date of this amendatory Act of
the 101st General Assembly, new appointees to the Board must
include the following:
(A) One member who has received, at a minimum, a
bachelor's degree from an accredited school and at least
10 years of verifiable experience in the fields of

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investigation and law enforcement.
(B) One member with experience in auditing and with
knowledge of complex corporate structures and
transactions.
(C) One member who has 5 years' experience as a
principal, senior officer, or director of a company or
business with either material responsibility for the daily
operations and management of the overall company or
business or material responsibility for the policy making
of the company or business.
(D) One member who is an attorney licensed to practice
law in Illinois for at least 5 years.
Notwithstanding any provision of this subsection (a), the
requirements of subparagraphs (A) through (D) of this
paragraph (2) shall not apply to any person reappointed
pursuant to paragraph (3).
No more than 3 members of the Board may be from the same
political party. No Board member shall, within a period of one
year immediately preceding nomination, have been employed or
received compensation or fees for services from a person or
entity, or its parent or affiliate, that has engaged in
business with the Board, a licensee, or a licensee under the
Illinois Horse Racing Act of 1975. Board members must publicly
disclose all prior affiliations with gaming interests,
including any compensation, fees, bonuses, salaries, and other
reimbursement received from a person or entity, or its parent

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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.
(3) The terms of office of the Board members shall be 3
years, except that the terms of office of the initial Board
members appointed pursuant to this Act will commence from the
effective date of this Act and run as follows: one for a term
ending July 1, 1991, 2 for a term ending July 1, 1992, and 2
for a term ending July 1, 1993. Upon the expiration of the
foregoing terms, the successors of such members shall serve a
term for 3 years and until their successors are appointed and
qualified for like terms. Vacancies in the Board shall be
filled for the unexpired term in like manner as original
appointments. Each member of the Board shall be eligible for
reappointment at the discretion of the Governor with the
advice and consent of the Senate.
(4) Each member of the Board shall receive $300 for each
day the Board meets and for each day the member conducts any
hearing pursuant to this Act. Each member of the Board shall
also be reimbursed for all actual and necessary expenses and
disbursements incurred in the execution of official duties.
(5) No person shall be appointed a member of the Board or
continue to be a member of the Board who is, or whose spouse,
child or parent is, a member of the board of directors of, or a

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person financially interested in, any gambling operation
subject to the jurisdiction of this Board, or any race track,
race meeting, racing association or the operations thereof
subject to the jurisdiction of the Illinois Racing Board. No
Board member shall hold any other public office. No person
shall be a member of the Board who is not of good moral
character or who has been convicted of, or is under indictment
for, a felony under the laws of Illinois or any other state, or
the United States.
(5.5) No member of the Board shall engage in any political
activity. For the purposes of this Section, "political" means
any activity in support of or in connection with any campaign
for federal, State, or local elective office or any political
organization, but does not include activities (i) relating to
the support or opposition of any executive, legislative, or
administrative action (as those terms are defined in Section 2
of the Lobbyist Registration Act), (ii) relating to collective
bargaining, or (iii) that are otherwise in furtherance of the
person's official State duties or governmental and public
service functions.
(6) Any member of the Board may be removed by the Governor
for neglect of duty, misfeasance, malfeasance, or nonfeasance
in office or for engaging in any political activity.
(7) Before entering upon the discharge of the duties of
his office, each member of the Board shall take an oath that he
will faithfully execute the duties of his office according to

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the laws of the State and the rules and regulations adopted
therewith and shall give bond to the State of Illinois,
approved by the Governor, in the sum of $25,000. Every such
bond, when duly executed and approved, shall be recorded in
the office of the Secretary of State. Whenever the Governor
determines that the bond of any member of the Board has become
or is likely to become invalid or insufficient, he shall
require such member forthwith to renew his bond, which is to be
approved by the Governor. Any member of the Board who fails to
take oath and give bond within 30 days from the date of his
appointment, or who fails to renew his bond within 30 days
after it is demanded by the Governor, shall be guilty of
neglect of duty and may be removed by the Governor. The cost of
any bond given by any member of the Board under this Section
shall be taken to be a part of the necessary expenses of the
Board.
(7.5) For the examination of all mechanical,
electromechanical, or electronic table games, slot machines,
slot accounting systems, sports wagering systems, and other
electronic gaming equipment, and the field inspection of such
systems, games, and machines, for compliance with this Act,
the Board shall utilize the services of 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

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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 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

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its parent or affiliate, that has engaged in business with the
Board, a licensee, or a licensee under the Illinois Horse
Racing Act of 1975. Any employee violating these prohibitions
shall be subject to termination of employment.
(9) An Administrator shall perform any and all duties that
the Board shall assign him. The salary of the Administrator
shall be determined by the Board and, in addition, he shall be
reimbursed for all actual and necessary expenses incurred by
him in discharge of his official duties. The Administrator
shall keep records of all proceedings of the Board and shall
preserve all records, books, documents and other papers
belonging to the Board or entrusted to its care. The
Administrator shall devote his full time to the duties of the
office and shall not hold any other office or employment.
(b) The Board shall have general responsibility for the
implementation of this Act. Its duties include, without
limitation, the following:
(1) To decide promptly and in reasonable order all
license applications. Any party aggrieved by an action of
the Board denying, suspending, revoking, restricting or
refusing to renew a license may request a hearing before
the Board. A request for a hearing must be made to the
Board in writing within 5 days after service of notice of
the action of the Board. Notice of the action of the Board
shall be served either by personal delivery or by
certified mail, postage prepaid, to the aggrieved party.

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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 hearings promptly and in
reasonable order;
(2) To conduct all hearings pertaining to civil
violations of this Act or rules and regulations
promulgated hereunder;
(3) To promulgate such rules and regulations as in its
judgment may be necessary to protect or enhance the
credibility and integrity of gambling operations
authorized by this Act and the regulatory process
hereunder;
(4) To provide for the establishment and collection of
all license and registration fees and taxes imposed by
this Act and the rules and regulations issued pursuant
hereto. All such fees and taxes shall be deposited into
the State Gaming Fund;
(5) To provide for the levy and collection of
penalties and fines for the violation of provisions of
this Act and the rules and regulations promulgated
hereunder. All such fines and penalties shall be deposited
into the Education Assistance Fund, created by Public Act
86-0018, of the State of Illinois;
(6) To be present through its inspectors and agents
any time gambling operations are conducted on any
riverboat, in any casino, or at any organization gaming

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facility for the purpose of certifying the revenue
thereof, receiving complaints from the public, and
conducting such other investigations into the conduct of
the gambling games and the maintenance of the equipment as
from time to time the Board may deem necessary and proper;
(7) To review and rule upon any complaint by a
licensee regarding any investigative procedures of the
State which are unnecessarily disruptive of gambling
operations. The need to inspect and investigate shall be
presumed at all times. The disruption of a licensee's
operations shall be proved by clear and convincing
evidence, and establish that: (A) the procedures had no
reasonable law enforcement purposes, and (B) the
procedures were so disruptive as to unreasonably inhibit
gambling operations;
(8) To hold at least one meeting each quarter of the
fiscal year. In addition, special meetings may be called
by the Chairman or any 2 Board members upon 72 hours
written notice to each member. All Board meetings shall be
subject to the Open Meetings Act. Three members of the
Board shall constitute a quorum, and 3 votes shall be
required for any final determination by the Board. The
Board shall keep a complete and accurate record of all its
meetings. A majority of the members of the Board shall
constitute a quorum for the transaction of any business,
for the performance of any duty, or for the exercise of any

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power which this Act requires the Board members to
transact, perform or exercise en banc, except that, upon
order of the Board, one of the Board members or an
administrative law judge designated by the Board may
conduct any hearing provided for under this Act or by
Board rule and may recommend findings and decisions to the
Board. The Board member or administrative law judge
conducting such hearing shall have all powers and rights
granted to the Board in this Act. The record made at the
time of the hearing shall be reviewed by the Board, or a
majority thereof, and the findings and decision of the
majority of the Board shall constitute the order of the
Board in such case;
(9) To maintain records which are separate and
distinct from the records of any other State board or
commission. Such records shall be available for public
inspection and shall accurately reflect all Board
proceedings;
(10) To file a written annual report with the Governor
on or before July 1 each year and such additional reports
as the Governor may request. The annual report shall
include a statement of receipts and disbursements by the
Board, actions taken by the Board, and any additional
information and recommendations which the Board may deem
valuable or which the Governor may request;
(11) (Blank);

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(12) (Blank);
(13) To assume responsibility for administration and
enforcement of the Video Gaming Act;
(13.1) To assume responsibility for the administration
and enforcement of operations at organization gaming
facilities pursuant to this Act and the Illinois Horse
Racing Act of 1975;
(13.2) To assume responsibility for the administration
and enforcement of the Sports Wagering Act; and
(14) To adopt, by rule, a code of conduct governing
Board members and employees that ensure, to the maximum
extent possible, that persons subject to this Code avoid
situations, relationships, or associations that may
represent or lead to a conflict of interest.
Internal controls and changes submitted by licensees must
be reviewed and either approved or denied with cause within 90
days after receipt of submission is deemed final by the
Illinois Gaming Board. In the event an internal control
submission or change does not meet the standards set by the
Board, staff of the Board must provide technical assistance to
the licensee to rectify such deficiencies within 90 days after
the initial submission and the revised submission must be
reviewed and approved or denied with cause within 90 days
after the date the revised submission is deemed final by the
Board. For the purposes of this paragraph, "with cause" means
that the approval of the submission would jeopardize the

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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
and all persons in places 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 gambling operations subject to this Act 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
riverboats, and the review of any permits or licenses
necessary to operate a riverboat, casino, or organization

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gaming facility under any laws or regulations applicable
to riverboats, casinos, or organization gaming facilities
and to impose penalties for violations thereof.
(4) To enter the office, riverboats, casinos,
organization gaming facilities, and other facilities, or
other places of business of a licensee, where evidence of
the compliance or noncompliance with the provisions of
this Act is likely to be found.
(5) To investigate alleged violations of this Act or
the rules of the Board and to take appropriate
disciplinary action against a licensee or a holder of an
occupational license for a violation, or institute
appropriate legal action for enforcement, or both.
(6) To adopt standards for the licensing of all
persons and entities under this Act, as well as for
electronic or mechanical gambling games, and to establish
fees for such licenses.
(7) To adopt appropriate standards for all
organization gaming facilities, riverboats, casinos, and
other facilities authorized under this Act.
(8) To require that the records, including financial
or other statements of any licensee under this Act, shall
be kept in such manner as prescribed by the Board and that
any such licensee involved in the ownership or management
of gambling operations submit to the Board an annual
balance sheet and profit and loss statement, list of the

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stockholders or other persons having a 1% or greater
beneficial interest in the gambling activities of each
licensee, and any other information the Board deems
necessary in order to effectively administer this Act and
all rules, regulations, orders and final decisions
promulgated under this Act.
(9) To conduct hearings, issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the
production of books, records and other pertinent documents
in accordance with the Illinois Administrative Procedure
Act, and to administer oaths and affirmations to the
witnesses, when, in the judgment of the Board, it is
necessary to administer or enforce this Act or the Board
rules.
(10) To prescribe a form to be used by any licensee
involved in the ownership or management of gambling
operations as an application for employment for their
employees.
(11) To revoke or suspend licenses, as the Board may
see fit and in compliance with applicable laws of the
State regarding administrative procedures, and to review
applications for the renewal of licenses. The Board may
suspend an owners license or an organization gaming
license without notice or hearing upon a determination
that the safety or health of patrons or employees is
jeopardized by continuing a gambling operation conducted

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under that license. The suspension may remain in effect
until the Board determines that the cause for suspension
has been abated. The Board may revoke an owners license or
organization gaming license upon a determination that the
licensee has not made satisfactory progress toward abating
the hazard.
(12) To eject or exclude or authorize the ejection or
exclusion of, any person from gambling facilities where
that 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 gambling facilities may, in the
opinion of the Board, call into question the honesty and
integrity of the gambling operations or interfere with the
orderly conduct thereof; provided that the propriety of
such ejection or exclusion is subject to subsequent
hearing by the Board.
(13) To require all licensees of gambling operations
to utilize a cashless wagering system whereby all players'
money is converted to tokens, electronic cards, or chips
which shall be used only for wagering in the gambling
establishment.
(14) (Blank).
(15) To suspend, revoke or restrict licenses, to
require the removal of a licensee or an employee of a
licensee for a violation of this Act or a Board rule or for

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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
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
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.

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This subdivision (18) is a denial and limitation of home
rule powers and functions under subsection (h) of Section
6 of Article VII of the Illinois Constitution.
(19) After consultation with the U.S. Army Corps of
Engineers, to establish binding emergency orders upon the
concurrence of a majority of the members of the Board
regarding the navigability of water, relative to
excursions, in the event of extreme weather conditions,
acts of God or other extreme circumstances.
(20) To delegate the execution of any of its powers
under this Act for the purpose of administering and
enforcing this Act and the rules adopted by the Board.
(20.5) To approve any contract entered into on its
behalf.
(20.6) To appoint investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act, as deemed necessary by the
Board. These investigators have and may exercise all of
the rights and powers of peace officers, provided that
these powers shall be limited to offenses or violations
occurring or committed in a casino, in an organization
gaming facility, or on a riverboat or dock, as defined in
subsections (d) and (f) of Section 4, or as otherwise
provided by this Act or any other law.
(20.7) To contract with the Illinois State Police for
the use of trained and qualified State police officers and

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with the Department of Revenue for the use of trained and
qualified Department of Revenue investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act and to exercise all of the
rights and powers of peace officers, provided that the
powers of Department of Revenue investigators under this
subdivision (20.7) shall be limited to offenses or
violations occurring or committed in a casino, in an
organization gaming facility, or on a riverboat or dock,
as defined in subsections (d) and (f) of Section 4, or as
otherwise provided by this Act or any other law. In the
event the Illinois 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

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