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Sen. Terry Link
Filed: 2/28/2017
 
 
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| 1 |  | AMENDMENT TO SENATE BILL 7
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| 2 |  |  AMENDMENT NO. ______. Amend Senate Bill 7, on page 2, line  | 
| 3 |  | 10, after "water-based facility", by inserting "and airport  | 
| 4 |  | gaming locations pursuant to Section 1-67 of this Act"; and | 
| 5 |  | by replacing line 21 on page 20 through line 22 on page 23 with  | 
| 6 |  | the following: | 
| 7 |  |  "Section 1-45. Casino management contracts. 
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| 8 |  |  (a) The Casino Board shall enter into a casino management  | 
| 9 |  | contract with a casino operator subject to a background  | 
| 10 |  | investigation and approval by the Gaming Board and payment by  | 
| 11 |  | the proposed casino operator of a fee of $50,000,000, which  | 
| 12 |  | shall be deposited into the Gaming Facilities Fee Revenue Fund.  | 
| 13 |  | The Gaming Board shall complete its background investigation  | 
| 14 |  | and approval of the casino operator within 6 months after the  | 
| 15 |  | date that the proposed casino operator submits its application  | 
| 16 |  | to the Gaming Board. If the Gaming Board does not complete its  | 
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| 1 |  | background investigation and approval within the 6-month  | 
| 2 |  | period, then the Gaming Board shall give a written explanation  | 
| 3 |  | to the proposed casino operator and the chief legal officer of  | 
| 4 |  | the Authority as to why it has not reached a final  | 
| 5 |  | determination and when it reasonably expects to make a final  | 
| 6 |  | determination. Validity of the casino management contract is  | 
| 7 |  | contingent upon the issuance of a casino operator license. If  | 
| 8 |  | the Gaming Board grants a casino operator license, the Casino  | 
| 9 |  | Board shall transmit a copy of the executed casino management  | 
| 10 |  | contract to the Gaming Board. | 
| 11 |  |  (b) After (1) the Authority has been issued an owners  | 
| 12 |  | license, (2) the Gaming Board has issued a casino operator  | 
| 13 |  | license, and (3) the Gaming Board has approved the members of  | 
| 14 |  | the Casino Board, the Authority may conduct gaming operations  | 
| 15 |  | at a temporary facility, subject to the adopted rules of the  | 
| 16 |  | Gaming Board, for no longer than 24 months after gaming  | 
| 17 |  | operations begin. The Gaming Board may, after holding a public  | 
| 18 |  | hearing, grant an extension so long as a permanent facility is  | 
| 19 |  | not operational and the Authority is working in good faith to  | 
| 20 |  | complete the permanent facility. The Gaming Board may grant  | 
| 21 |  | additional extensions following further public hearings. Each  | 
| 22 |  | extension may be for a period of no longer than 6 months."; and | 
| 23 |  | on page 27, immediately below line 19, by inserting the  | 
| 24 |  | following:
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| 1 |  |  "Section 1-67. Limitations on gaming at Chicago airports.  | 
| 2 |  | The Authority may conduct gaming operations in an airport under  | 
| 3 |  | the administration or control of the Chicago Department of  | 
| 4 |  | Aviation. Gaming operations may be conducted pursuant to this  | 
| 5 |  | Section so long as (i) gaming operations are conducted in a  | 
| 6 |  | secured area that is beyond the Transportation Security  | 
| 7 |  | Administration security checkpoints and only available to  | 
| 8 |  | airline passengers at least 21 years of age who are members of  | 
| 9 |  | a private club, and not to the general public, (ii) gaming  | 
| 10 |  | operations are limited to slot machines, as defined in Section  | 
| 11 |  | 4 of the Illinois Gambling Act, and (iii) the combined number  | 
| 12 |  | of gaming positions operating in the City at the airports and  | 
| 13 |  | at the temporary and permanent casino facility does not exceed  | 
| 14 |  | the maximum number of gaming positions authorized pursuant to  | 
| 15 |  | subsection (h) of Section 7 of the Illinois Gambling Act.  | 
| 16 |  | Gaming operations at an airport are subject to all applicable  | 
| 17 |  | laws and rules that apply to any other gaming facility under  | 
| 18 |  | this Act or the Illinois Gambling Act."; and | 
| 19 |  | on page 50, line 2, by replacing "Sections 5-45 and 20-10" with  | 
| 20 |  | "Section 5-45"; and | 
| 21 |  | by deleting line 21 on page 55 through line 12 on page 61; and | 
| 22 |  | on page 96, by replacing lines 1 through 12 with the following: | 
| 23 |  |  "(b) The revenues in the Fund shall be used, subject to  | 
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| 1 |  | appropriation, by the Comptroller for the purpose of providing  | 
| 2 |  | appropriations to the Illinois Gaming Board for the  | 
| 3 |  | administration and enforcement of the Illinois Gambling Act and  | 
| 4 |  | the applicable provisions of the Chicago Casino Development  | 
| 5 |  | Authority Act, with any remaining amounts being transferred to  | 
| 6 |  | the General Revenue Fund."; and | 
| 7 |  | on page 96, line 14, by replacing "(e)" with "(a)"; and | 
| 8 |  | on page 96, line 16, by replacing "(e-25)" with "(h)"; and | 
| 9 |  | by replacing line 22 on page 214 through line 6 on page 215  | 
| 10 |  | with the following: | 
| 11 |  |  "(e-1) In awarding standardbred racing dates for calendar  | 
| 12 |  | year 2018, the Board shall award at least 160 racing dates, and  | 
| 13 |  | each organization licensee shall average at least 10 races for  | 
| 14 |  | each racing date awarded. In awarding standardbred racing dates  | 
| 15 |  | for calendar year 2019, the Board shall award at least 200  | 
| 16 |  | racing dates, and each organization licensee shall average at  | 
| 17 |  | least 11 races for each racing date awarded. In awarding  | 
| 18 |  | standardbred racing dates for calendar year 2020 and  | 
| 19 |  | thereafter, the Board shall award at least 260 racing dates,  | 
| 20 |  | and each organization licensee shall average at least 11 races  | 
| 21 |  | for each racing date awarded unless a lesser schedule of live  | 
| 22 |  | racing is a result of an agreement with the organization  | 
| 23 |  | representing the largest number of standardbred owners,  | 
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| 1 |  | breeders, trainers, drivers, caretakers in the State.  | 
| 2 |  | Standardbred racing conducted in Sangamon County shall not be  | 
| 3 |  | considered races under this subsection (e-1)."; and | 
| 4 |  | on page 217, by replacing lines 16 through 26 with the  | 
| 5 |  | following: | 
| 6 |  |  "(e-4) Notwithstanding the provisions of Section 7.7 of the  | 
| 7 |  | Illinois Gambling Act or any provision of this Act other than  | 
| 8 |  | subsections (e-3) and (e-4.5), for each calendar year for which  | 
| 9 |  | an electronic gaming licensee requests thoroughbred racing  | 
| 10 |  | dates which results in a number of live races under its  | 
| 11 |  | organization license that is less than the total number of live  | 
| 12 |  | races which it conducted in 2016 at its race track facility,  | 
| 13 |  | the electronic gaming licensee may not conduct electronic  | 
| 14 |  | gaming for the calendar year of such requested live races. | 
| 15 |  |  (e-4.1) Notwithstanding the provisions of Section 7.7 of  | 
| 16 |  | the Illinois Gambling Act or any provision of this Act other  | 
| 17 |  | than subsections (e-3) and (e-4.5), for each calendar year for  | 
| 18 |  | which an organization licensee requests racing dates for  | 
| 19 |  | standardbred racing which results in a number of live races  | 
| 20 |  | that is less than the total number of live races required in  | 
| 21 |  | subsection (e-1), the electronic gaming licensee may not  | 
| 22 |  | conduct electronic gaming for the calendar year of such  | 
| 23 |  | requested live races."; and | 
| 24 |  | on page 253, line 3, by replacing "or (iii)" with "or (iii) at  | 
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| 1 |  | a track awarded standardbred racing dates in 2018 and  | 
| 2 |  | thereafter; or (iv)"; and | 
| 3 |  | on page 253, line 26, after the period, by inserting "An  | 
| 4 |  | eligible race track conducting standardbred racing may have up  | 
| 5 |  | to 9 inter-track wagering locations."; and | 
| 6 |  | on page 309, by deleting lines 7 through 15; and | 
| 7 |  | on page 315, by replacing lines 21 through 25 with the  | 
| 8 |  | following: | 
| 9 |  |  "(b) If the organization licensee is operating electronic  | 
| 10 |  | gaming, then, for the 5-year period beginning on the January 1  | 
| 11 |  | of the calendar year immediately following the calendar year  | 
| 12 |  | during which an organization licensee begins conducting  | 
| 13 |  | electronic gaming operations pursuant to an electronic gaming  | 
| 14 |  | license issued under the Illinois Gambling Act, the  | 
| 15 |  | organization licensee shall make capital expenditures, in an  | 
| 16 |  | amount equal to no less than 50% of the tax credit under this  | 
| 17 |  | Section, to the improvement and maintenance of the backstretch,  | 
| 18 |  | including, but not limited to, backstretch barns, dormitories,  | 
| 19 |  | and services for backstretch workers. Those capital  | 
| 20 |  | expenditures must be in addition to, and not in lieu of, the  | 
| 21 |  | capital expenditures made for backstretch improvements in  | 
| 22 |  | calendar year 2015, as reported to the Board in the  | 
| 23 |  | organization licensee's application for racing dates and as  | 
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| 1 |  | certified by the Board. The organization licensee is required  | 
| 2 |  | to annually submit the list and amounts of these capital  | 
| 3 |  | expenditures to the Board by January 30th of the year following  | 
| 4 |  | the expenditure. | 
| 5 |  |  (c) If the organization licensee is operating electronic  | 
| 6 |  | gaming in accordance with paragraph (b), then, after the 5-year  | 
| 7 |  | period beginning on January 1 of the calendar year immediately  | 
| 8 |  | following the calendar year during which an organization  | 
| 9 |  | licensee begins conducting electronic gaming operations  | 
| 10 |  | pursuant to an electronic gaming license issued under the  | 
| 11 |  | Illinois Gambling Act, the organization license is ineligible  | 
| 12 |  | to receive a tax credit under this Section."; and | 
| 13 |  | on page 322, lines 20 and 21, by replacing "controlled
by the  | 
| 14 |  | licensee's race track" with "of which the electronic gaming  | 
| 15 |  | licensee has operating control"; and | 
| 16 |  | on page 326, line 23, by replacing "and 7.13" with "7.13, and  | 
| 17 |  | 25"; and | 
| 18 |  | on page 333, immediately below line 18, by inserting the  | 
| 19 |  | following: | 
| 20 |  |  ""Wide area progressive system" means a method of linking  | 
| 21 |  | progressive slot machines or electronic gaming machines across  | 
| 22 |  | telecommunication lines as part of a network connecting  | 
| 23 |  | participating facilities. Wide area progressive systems offer  | 
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| 1 |  | a common progressive jackpot at all participating locations and  | 
| 2 |  | the award of the jackpot is at random."; and | 
| 3 |  | on page 367, line 2, after the period, by inserting "In order  | 
| 4 |  | to expedite the application process, the Board may establish  | 
| 5 |  | rules allowing applicants to acquire criminal background  | 
| 6 |  | checks and financial integrity reviews as part of the initial  | 
| 7 |  | application process from a list of vendors approved by the  | 
| 8 |  | Board."; and | 
| 9 |  | on page 370, line 15, after "casino", by inserting "or in an  | 
| 10 |  | airport"; and | 
| 11 |  | on page 374, line 24, by replacing "6 months" with "120 days";  | 
| 12 |  | and | 
| 13 |  | on page 379, line 8, by replacing "paragraphs (2) through (5)"  | 
| 14 |  | with "subsection (e) or paragraph (2), (3), (4), or (5)"; and | 
| 15 |  | on page 379, line 20, after the period, by inserting "The fees  | 
| 16 |  | under this subsection (h) shall be deposited into the Gaming  | 
| 17 |  | Facilities Fee Revenue
Fund."; and | 
| 18 |  | on page 380, lines 14 and 16, by replacing "per gaming  | 
| 19 |  | position" each time it appears with "per additional gaming  | 
| 20 |  | position"; and  | 
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| 1 |  | on page 382, by replacing lines 5 through 7 with "2,000  | 
| 2 |  | positions total."; and | 
| 3 |  | on page 385, by replacing lines 15 through 19 with the  | 
| 4 |  | following: | 
| 5 |  | "7.4, or (iii) it will issue an owners license pursuant to an  | 
| 6 |  | open
and competitive bidding process, as set forth in Section  | 
| 7 |  | 7.12,
the open and competitive"; and | 
| 8 |  | on page 391, by replacing lines 22 and 23 with "required under  | 
| 9 |  | subsection (k), (v) conduct live racing in accordance with  | 
| 10 |  | subsections (e-1), (e-2), and (e-3) of Section 20 of the  | 
| 11 |  | Illinois Horse Racing Act of 1975 or for a licensee that is  | 
| 12 |  | only"; and | 
| 13 |  | on page 392, lines 5 and 6, by deleting "that had an open  | 
| 14 |  | backstretch in
2009"; and | 
| 15 |  | on page 392, by replacing lines 14 through 18 with "of this Act  | 
| 16 |  | that apply to owners licensees."; and | 
| 17 |  | on page 394, lines 4 through 6, by deleting "whose electronic
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| 18 |  | gaming license originates with an organization licensee that
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| 19 |  | conducted live racing in calendar year 2016"; and | 
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| 1 |  | on page 394, lines 8 through 10, by deleting "whose electronic
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| 2 |  | gaming license originates with an organization licensee that
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| 3 |  | conducted live racing in calendar year 2016"; and | 
| 4 |  | on page 397, immediately below line 16, by inserting the  | 
| 5 |  | following: | 
| 6 |  |  "(i-5) Under no circumstances shall an electronic gaming  | 
| 7 |  | licensee conduct electronic gaming at any State or county  | 
| 8 |  | fair."; and  | 
| 9 |  | on page 429, immediately below line 6, by inserting the  | 
| 10 |  | following: | 
| 11 |  |  "(a-4.5) Beginning on the first day of the calendar month  | 
| 12 |  | immediately following 24 months after the effective date of  | 
| 13 |  | this amendatory Act of the 100th General Assembly and ending on  | 
| 14 |  | the date gambling operations, commence at a permanent facility  | 
| 15 |  | with respect to the owners license authorized under paragraph  | 
| 16 |  | (1) of subsection (e-5) of Section 7 of this Act, a privilege  | 
| 17 |  | tax is imposed on persons engaged in the business of conducting  | 
| 18 |  | riverboat or casino gambling or electronic gaming operations,  | 
| 19 |  | other than licensed managers conducting riverboat gambling  | 
| 20 |  | operations on behalf of the State, based on the adjusted gross  | 
| 21 |  | receipts received by such licensee from the gambling games  | 
| 22 |  | authorized under this Act. The privilege tax shall be the  | 
| 23 |  | average of the privilege tax, in terms of dollar amounts,  | 
| 24 |  | calculated pursuant to subsection (a-4) and subsection  | 
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| 1 |  | (a-6)."; and | 
| 2 |  | on page 429, by replacing lines 7 through 10 with the  | 
| 3 |  | following: | 
| 4 |  |  "(a-5) Beginning on January 1 following the opening of the  | 
| 5 |  | permanent casino at which gambling operations are conducted  | 
| 6 |  | pursuant to the Chicago Casino Development Authority Act, a  | 
| 7 |  | privilege tax is imposed on persons engaged in"; and | 
| 8 |  | on page 431, immediately below line 26, by inserting the  | 
| 9 |  | following:  | 
| 10 |  |  "(a-7) Beginning in the initial adjustment year and through  | 
| 11 |  | the final adjustment year, if the total obligation imposed  | 
| 12 |  | pursuant to either subsection (a-5) or (a-6) will result in an  | 
| 13 |  | owners licensee receiving less after-tax adjusted gross  | 
| 14 |  | receipts than it received in calendar year 2016, then the total  | 
| 15 |  | amount of privilege taxes that the owners licensee is required  | 
| 16 |  | to pay for that calendar year shall be reduced to the extent  | 
| 17 |  | necessary so that the after-tax adjusted gross receipts in that  | 
| 18 |  | calendar year equals the after-tax adjusted gross receipts in  | 
| 19 |  | calendar year 2016, but the privilege tax reduction shall not  | 
| 20 |  | exceed the annual adjustment cap. If pursuant to this  | 
| 21 |  | subsection (a-7), the total obligation imposed pursuant to  | 
| 22 |  | either subsection (a-5) or (a-6) shall be reduced, then the  | 
| 23 |  | owners licensee shall not receive a refund from the State at  | 
| 24 |  | the end of the subject calendar year but instead shall be able  | 
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| 1 |  | to apply that amount as a credit against any payments it owes  | 
| 2 |  | to the State in the following calendar year to satisfy its  | 
| 3 |  | total obligation under either subsection (a-5) or (a-6). The  | 
| 4 |  | credit for the final adjustment year shall occur in the  | 
| 5 |  | calendar year following the final adjustment year. | 
| 6 |  |  If an owners licensee that conducted gambling operations  | 
| 7 |  | prior to January 1, 2017 expands its riverboat or casino,  | 
| 8 |  | including, but not limited to, with respect to its gaming  | 
| 9 |  | floor, additional non-gaming amenities such as restaurants,  | 
| 10 |  | bars, and hotels and other additional facilities, and incurs  | 
| 11 |  | construction and other costs related to such expansion from the  | 
| 12 |  | effective date of this amendatory Act of the 100th General  | 
| 13 |  | Assembly until the 5th anniversary of the effective date of  | 
| 14 |  | this amendatory Act of the 100th General Assembly, then for  | 
| 15 |  | each $15,000,000 spent for any such construction or other costs  | 
| 16 |  | related to expansion paid by the owners licensee, the final  | 
| 17 |  | adjustment year shall be extended by one year and the annual  | 
| 18 |  | adjustment cap shall increase by 0.2% of adjusted gross  | 
| 19 |  | receipts during each calendar year until and including the  | 
| 20 |  | final adjustment year. No further modifications to the final  | 
| 21 |  | adjustment year or annual adjustment cap shall be made after  | 
| 22 |  | $75,000,000 is incurred in construction or other costs related  | 
| 23 |  | to expansion so that the final adjustment year shall not extend  | 
| 24 |  | beyond the 9th calendar year after the initial adjustment year,  | 
| 25 |  | not including the initial adjustment year, and the annual  | 
| 26 |  | adjustment cap shall not exceed 4% of adjusted gross receipts  | 
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| 1 |  | in a particular calendar year. Construction and other costs  | 
| 2 |  | related to expansion shall include all project related costs,  | 
| 3 |  | including, but not limited to, all hard and soft costs,  | 
| 4 |  | financing costs, on or off-site ground, road or utility work,  | 
| 5 |  | cost of gaming equipment and all other personal property,  | 
| 6 |  | initial fees assessed for each incremental gaming position, and  | 
| 7 |  | the cost of incremental land acquired for such expansion. Soft  | 
| 8 |  | costs shall include, but not be limited to, legal fees,  | 
| 9 |  | architect, engineering and design costs, other consultant  | 
| 10 |  | costs, insurance cost, permitting costs, and pre-opening costs  | 
| 11 |  | related to the expansion, including, but not limited to, any of  | 
| 12 |  | the following: marketing, real estate taxes, personnel,  | 
| 13 |  | training, travel and out-of-pocket expenses, supply,  | 
| 14 |  | inventory, and other costs, and any other project related soft  | 
| 15 |  | costs. | 
| 16 |  |  Notwithstanding any other provision of this subsection  | 
| 17 |  | (a-7), this subsection (a-7) does not apply to an owners  | 
| 18 |  | licensee unless such owners licensee spends at least  | 
| 19 |  | $15,000,000 on construction and other costs related to its  | 
| 20 |  | expansion, excluding the initial fees assessed for each  | 
| 21 |  | incremental gaming position. | 
| 22 |  |  This subsection (a-7) does not apply to owners licensees
 | 
| 23 |  | authorized pursuant to subsection (e-5) of Section 7 of this
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| 24 |  | Act. | 
| 25 |  | For purposes of this subsection (a-7): | 
| 26 |  |  "Initial adjustment year" means the year commencing on  | 
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| 1 |  | January 1 of the calendar year immediately following the  | 
| 2 |  | earlier of the following: | 
| 3 |  |   (1) the commencement of gambling operations, either in  | 
| 4 |  | a temporary or permanent facility, with respect to the  | 
| 5 |  | owners license authorized under paragraph (1) of  | 
| 6 |  | subsection (e-5) of Section 7 of this Act; or | 
| 7 |  |   (2) 36 months after the effective date of this  | 
| 8 |  | amendatory Act of the 100th General Assembly, provided the  | 
| 9 |  | initial adjustment year shall not commence earlier than 24  | 
| 10 |  | months after the effective date of this amendatory Act of  | 
| 11 |  | the 100th General Assembly. | 
| 12 |  |  "Final adjustment year" means the 4th calendar year after  | 
| 13 |  | the initial adjustment year, not including the initial  | 
| 14 |  | adjustment year, and as may be extended further as described in  | 
| 15 |  | this subsection (a-7). | 
| 16 |  |  "After-tax adjusted gross receipts" means, for calendar  | 
| 17 |  | year 2016, the adjusted
gross receipts less privilege taxes  | 
| 18 |  | paid to the State and for
subsequent calendar years, the  | 
| 19 |  | adjusted gross receipts less
privilege taxes paid to the State,  | 
| 20 |  | then divided by the owners
licensee's average number of gaming  | 
| 21 |  | positions operating in that
calendar year and then multiplied  | 
| 22 |  | by the owners licensee's
average number of gaming positions  | 
| 23 |  | operating in calendar year
2016. | 
| 24 |  |  "Annual adjustment cap" means 3% of adjusted gross receipts  | 
| 25 |  | in a particular calendar year, and as may be increased further  | 
| 26 |  | as otherwise described in this subsection (a-7)."; and | 
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| 1 |  | on page 453, immediately below line 2, by inserting the  | 
| 2 |  | following: | 
| 3 |  |  "(230 ILCS 10/25 new) | 
| 4 |  |  Sec. 25. Wide area progressive systems. The operation of a  | 
| 5 |  | wide area progressive system is permitted in gambling  | 
| 6 |  | operations authorized under this Act subject to the following  | 
| 7 |  | conditions: | 
| 8 |  |   (1) The method of communication over the wide area  | 
| 9 |  | progressive system must consist of dedicated on-line  | 
| 10 |  | communication lines or the equivalent, as determined by the  | 
| 11 |  | Administrator, or wireless communication, which may be  | 
| 12 |  | subject to certain restrictions imposed by the  | 
| 13 |  | Administrator. | 
| 14 |  |   (2) All communication between each facility location  | 
| 15 |  | and the central system site must be encrypted. | 
| 16 |  |   (3) The central system site must be located within the  | 
| 17 |  | State of Illinois and be equipped with a non-interruptible  | 
| 18 |  | power supply and the central computer must be capable of  | 
| 19 |  | on-line data redundancy should hard disk peripherals fail  | 
| 20 |  | during operation. The office containing the central  | 
| 21 |  | computer shall be equipped with a surveillance system that  | 
| 22 |  | has been approved by the Administrator. The wide area  | 
| 23 |  | progressive system provider shall be required to keep and  | 
| 24 |  | maintain an entry and exit log for the office containing  | 
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| 1 |  | the central computer. The wide area progressive system  | 
| 2 |  | provider shall provide access to the office containing the  | 
| 3 |  | central computer to the Administrator and shall make  | 
| 4 |  | available to the Administrator all books, records, and  | 
| 5 |  | information required by the Administrator in fulfilling  | 
| 6 |  | his or her regulatory purpose. | 
| 7 |  |   (4) A wide area progressive system provider must  | 
| 8 |  | suspend play on the wide area progressive system if a  | 
| 9 |  | communication failure of the system cannot be corrected  | 
| 10 |  | within 24 consecutive hours. | 
| 11 |  |   (5) Approval by the Board of any wide area progressive  | 
| 12 |  | system shall occur only after the Administrator has  | 
| 13 |  | reviewed the wide area progressive system software and  | 
| 14 |  | hardware and is satisfied that the operation of the system  | 
| 15 |  | meets accepted industry standards for wide area  | 
| 16 |  | progressive system products, as well as any other  | 
| 17 |  | requirements that the Administrator may impose to ensure  | 
| 18 |  | the integrity, security, and legal operation of the wide  | 
| 19 |  | area progressive system. | 
| 20 |  |   (6) A meter that shows the amount of the common  | 
| 21 |  | progressive jackpot must be conspicuously displayed at or  | 
| 22 |  | near the machines to which the jackpot applies. The common  | 
| 23 |  | progressive jackpot meter need not precisely show the  | 
| 24 |  | actual moneys in the common progressive jackpot award at  | 
| 25 |  | each instant. Nothing shall prohibit the use of an odometer  | 
| 26 |  | or other paced updating progressive display to show updates  | 
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| 1 |  | to the jackpot. When a paced updating display is used and  | 
| 2 |  | the remote site is communicating to the central computer,  | 
| 3 |  | the common progressive jackpot meter must display the  | 
| 4 |  | winning value after the jackpot broadcast is received from  | 
| 5 |  | the central system. If a common progressive jackpot is  | 
| 6 |  | recognized in the middle of a systemwide poll cycle, the  | 
| 7 |  | common progressive jackpot display may contain a value less  | 
| 8 |  | than the aggregated amount calculated by the central  | 
| 9 |  | system. The fund values from the remaining portion of the  | 
| 10 |  | poll cycle shall be received by the central system, but not  | 
| 11 |  | the local site, in which case the common progressive  | 
| 12 |  | jackpot amount paid shall always be the higher of the 2  | 
| 13 |  | reporting amounts. | 
| 14 |  |   (7) When a common progressive jackpot is won, the wide  | 
| 15 |  | area progressive system provider shall have the  | 
| 16 |  | opportunity to inspect the machine, storage media, the  | 
| 17 |  | error events received by the central system, and any other  | 
| 18 |  | data which could reasonably be used to ascertain the  | 
| 19 |  | validity of the jackpot. | 
| 20 |  |    (A) The central system shall produce reports that  | 
| 21 |  | clearly demonstrate the method of arriving at the  | 
| 22 |  | payoff amount. This shall include the funds  | 
| 23 |  | contributed beginning with the polling cycle  | 
| 24 |  | immediately following the previous jackpot and all  | 
| 25 |  | funds contributed up to and including the polling cycle  | 
| 26 |  | that includes the jackpot signal. Funds contributed to  | 
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| 1 |  | and registered by the system before the jackpot message  | 
| 2 |  | is received shall be deemed to have been contributed to  | 
| 3 |  | the progressive amount prior to the current jackpot.  | 
| 4 |  | Funds contributed to the system subsequent to the  | 
| 5 |  | jackpot message's being received, as well as funds  | 
| 6 |  | contributed to the system before the jackpot message is  | 
| 7 |  | received by the system but registered after the jackpot  | 
| 8 |  | message is received at the system, shall be deemed to  | 
| 9 |  | have been contributed to the progressive amount of the  | 
| 10 |  | next jackpot. | 
| 11 |  |    (B) The common progressive jackpot may be  | 
| 12 |  | disbursed in periodic payments as long as each machine  | 
| 13 |  | clearly displays the fact that the jackpot shall be  | 
| 14 |  | paid in such periodic payments. In addition, the number  | 
| 15 |  | of periodic payments and time between payments must be  | 
| 16 |  | clearly displayed on the slot machine in a  | 
| 17 |  | non-misleading manner. | 
| 18 |  |    (C) A wide area progressive system provider must,  | 
| 19 |  | upon request, supply to the Board reports that support  | 
| 20 |  | and verify the economic activity of the system. | 
| 21 |  |   (8) In calculating adjusted gross revenue, a facility  | 
| 22 |  | may deduct its pro rata share of the present value of any  | 
| 23 |  | common progressive jackpots awarded. The deduction shall  | 
| 24 |  | be listed on the detailed accounting records provided by  | 
| 25 |  | the wide area progressive system provider. A facility's pro  | 
| 26 |  | rata share is based on the number of funds in from that  | 
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|  | 
| 1 |  | facility's machines on the wide area progressive system,  | 
| 2 |  | compared to the total amount of funds in on the whole  | 
| 3 |  | system for the time period between jackpots awarded. | 
| 4 |  |   (9) In the event a facility ceases operations and a  | 
| 5 |  | progressive jackpot is awarded subsequent to the last day  | 
| 6 |  | of the final month of operation, the facility may not file  | 
| 7 |  | an amended wagering tax submission or make a claim for a  | 
| 8 |  | wagering tax refund based on its contributions to that  | 
| 9 |  | particular progressive prize pool. | 
| 10 |  |   (10) A facility, or an entity that is licensed as a  | 
| 11 |  | manufacturer or distributor, shall provide the wide area  | 
| 12 |  | progressive system in accordance with a written agreement  | 
| 13 |  | that shall be reviewed and approved by the Board prior to  | 
| 14 |  | offering the jackpots. | 
| 15 |  |   (11) The payment of any common progressive jackpot  | 
| 16 |  | offered on a wide area progressive system shall be  | 
| 17 |  | administered by the wide area progressive system provider,  | 
| 18 |  | and the provider shall have primary liability for payment  | 
| 19 |  | of any common progressive jackpot the person administers. | 
| 20 |  |   (12) A wide area progressive system provider shall  | 
| 21 |  | comply with the following: | 
| 22 |  |    (A) A reserve shall be established and maintained  | 
| 23 |  | by the provider of the wide area progressive system in  | 
| 24 |  | an amount of not less than the sum of the following  | 
| 25 |  | amounts: | 
| 26 |  |     (i) the present value of the aggregate  | 
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| 1 |  | remaining balances owed on all jackpots previously  | 
| 2 |  | won by patrons on the wide area progressive system; | 
| 3 |  |     (ii) the present value of the amount currently  | 
| 4 |  | reflected on the jackpot meters of the wide area  | 
| 5 |  | progressive system; and | 
| 6 |  |     (iii) the present value of one additional  | 
| 7 |  | reset of the wide area progressive system. | 
| 8 |  |    (B) The reserve shall continue to be maintained  | 
| 9 |  | until all payments owed to winners of the common  | 
| 10 |  | progressive jackpots have been made. | 
| 11 |  |    (C) For common progressive jackpots disbursed in  | 
| 12 |  | periodic payments, any qualified investment shall be  | 
| 13 |  | purchased within 90 days following notice of the win of  | 
| 14 |  | the common progressive jackpot, and a copy of such  | 
| 15 |  | qualified investment shall be provided to the Board  | 
| 16 |  | within 30 days of purchase. Any qualified investment  | 
| 17 |  | shall have a surrender value at maturity and shall have  | 
| 18 |  | a maturity date prior to the date the periodic jackpot  | 
| 19 |  | payment is required to be made. | 
| 20 |  |    (D) The person authorized to provide the wide area  | 
| 21 |  | progressive system shall not be permitted to sell,  | 
| 22 |  | trade, or otherwise dispose of any qualified  | 
| 23 |  | investments prior to their maturity unless approval to  | 
| 24 |  | do so is first obtained from the Board. | 
| 25 |  |    (E) Upon becoming aware of an event of  | 
| 26 |  | noncompliance with the terms of the reserve  | 
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|  | 
| 1 |  | requirement mandated by subparagraph (A) in this  | 
| 2 |  | paragraph (12), the wide area progressive system  | 
| 3 |  | provider must immediately notify the Board of such  | 
| 4 |  | event. An event of noncompliance includes a  | 
| 5 |  | non-payment of a jackpot periodic payment or a  | 
| 6 |  | circumstance which may cause the wide area progressive  | 
| 7 |  | system provider to be unable to fulfill, or which may  | 
| 8 |  | otherwise impair the person's ability to satisfy, the  | 
| 9 |  | person's jackpot payment obligations. | 
| 10 |  |    (F) On a quarterly basis, the wide area progressive  | 
| 11 |  | system provider must deliver to the Board a calculation  | 
| 12 |  | of system reserves required under subparagraph (A) in  | 
| 13 |  | this paragraph (12). The calculation shall come with a  | 
| 14 |  | certification of financial compliance signed by a duly  | 
| 15 |  | authorized financial officer of the wide area  | 
| 16 |  | progressive system provider, on a form prescribed by  | 
| 17 |  | the Board, validating the calculation.  | 
| 18 |  |   (13) For common progressive jackpots disbursed in  | 
| 19 |  | periodic payments, subsequent to the date of the win, a  | 
| 20 |  | winner may be offered the option to receive, in lieu of  | 
| 21 |  | periodic payments, a discounted single cash payment in the  | 
| 22 |  | form of a qualified prize option, as that term is defined  | 
| 23 |  | in Section 451(h) of the Internal Revenue Code of 1986. The  | 
| 24 |  | wide area progressive system provider shall calculate the  | 
| 25 |  | single cash payment based on the discount rate. Until the  | 
| 26 |  | new discount rate becomes effective, the discount rate  | 
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| 1 |  | selected by the wide area progressive system provider shall  | 
| 2 |  | be used to calculate the single cash payment for all  | 
| 3 |  | qualified prizes that occur subsequent to the date of the  | 
| 4 |  | selected discount rate."; and  | 
| 5 |  | on page 453, line 4, after "5,", by inserting "20,"; and | 
| 6 |  | on page 453, line 4, after "80", by inserting "and by adding  | 
| 7 |  | Section 90"; and | 
| 8 |  | on page 457, immediately below line 5, by inserting the  | 
| 9 |  | following: | 
| 10 |  |  "(230 ILCS 40/20)
 | 
| 11 |  |  Sec. 20. Direct dispensing of receipt tickets only. A video  | 
| 12 |  | gaming
terminal may not
directly dispense coins, cash, tokens,  | 
| 13 |  | or any other article of exchange or
value except for receipt  | 
| 14 |  | tickets. Tickets shall be dispensed by
pressing the ticket  | 
| 15 |  | dispensing button on the video gaming terminal at the end
of  | 
| 16 |  | one's turn or play. The ticket shall indicate the total amount  | 
| 17 |  | of credits
and the cash award, the time of day in a 24-hour  | 
| 18 |  | format showing hours and
minutes, the date, the
terminal serial  | 
| 19 |  | number, the sequential number of the ticket, and an encrypted
 | 
| 20 |  | validation number from which the validity of the prize may be  | 
| 21 |  | determined.
The player shall turn in this ticket to the  | 
| 22 |  | appropriate
person at the licensed establishment, licensed  | 
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| 1 |  | truck stop establishment, licensed fraternal establishment,
or
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| 2 |  | licensed veterans establishment
to receive the cash award. The  | 
| 3 |  | cost
of the credit shall be one cent, 5 cents, 10 cents, or 25  | 
| 4 |  | cents, and the maximum
wager played per hand shall not exceed  | 
| 5 |  | $4 $2.
No cash award for the maximum wager on any
individual  | 
| 6 |  | hand shall exceed $1,199, except in the case of a wide area  | 
| 7 |  | progressive system, as defined in the Illinois Gambling Act,  | 
| 8 |  | which shall have no limits for cash awards $500.
 | 
| 9 |  | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)";  | 
| 10 |  | and | 
| 11 |  | on page 468, immediately below line 25, by inserting the  | 
| 12 |  | following: | 
| 13 |  |  "(230 ILCS 40/90 new) | 
| 14 |  |  Sec. 90. Wide area progressive systems. The operation of a  | 
| 15 |  | wide area progressive system, as defined in the Illinois  | 
| 16 |  | Gambling Act, is permitted, subject to the provisions of the  | 
| 17 |  | Illinois Gambling Act, and the following conditions: | 
| 18 |  |   (1) Licensed terminal operators and manufacturer or  | 
| 19 |  | supplier licensees may operate one or more wide area  | 
| 20 |  | progressive systems in licensed establishments, licensed  | 
| 21 |  | truck stop establishments, licensed veterans  | 
| 22 |  | establishments, and licensed fraternal establishments. A  | 
| 23 |  | designated portion of a player's wager may be allocated to  | 
| 24 |  | the jackpot. The jackpot may be awarded to a player on any  | 
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| 1 |  | of the video gaming terminals that are linked to the wide  | 
| 2 |  | area progressive system. | 
| 3 |  |   (2) A wide area progressive system shall at all times  | 
| 4 |  | be installed and operated in accordance with relevant  | 
| 5 |  | requirements of this Act and technical standards of wide  | 
| 6 |  | area progressive systems. | 
| 7 |  |   (3) A wide area progressive system shall be operated  | 
| 8 |  | and administered by participating licensees in accordance  | 
| 9 |  | with the terms and conditions of a written approved policy,  | 
| 10 |  | which must be submitted in writing and approved by the  | 
| 11 |  | Board prior to implementation and must comply with this Act  | 
| 12 |  | and technical standards of wide area progressive systems. | 
| 13 |  |   (4) Approved policies must address: | 
| 14 |  |    (A) responsibility for the funding and payment of  | 
| 15 |  | all jackpots, fees, and taxes associated with the  | 
| 16 |  | operation of the wide area progressive system; | 
| 17 |  |    (B) control and operation of the computer  | 
| 18 |  | monitoring room required under paragraph (5); and | 
| 19 |  |    (C) other requirements in the technical standards  | 
| 20 |  | on wide area progressive systems. | 
| 21 |  |   (5) A wide area progressive system shall be controlled  | 
| 22 |  | and operated from a computer monitoring room. The computer  | 
| 23 |  | monitoring room must: | 
| 24 |  |    (A) be under the sole possession and control of,  | 
| 25 |  | and maintained and operated by, employees of the  | 
| 26 |  | licensee designated in the approved policy for that  | 
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| 1 |  | system; the employees of the licensee may be required  | 
| 2 |  | to obtain a terminal handler license if the Board  | 
| 3 |  | determines, after a review of the work being performed,  | 
| 4 |  | the employees require a license or permit for the  | 
| 5 |  | protection of the integrity of gaming; | 
| 6 |  |    (B) have its monitoring equipment subjected to  | 
| 7 |  | surveillance coverage either by the surveillance  | 
| 8 |  | system of a licensee or by a dedicated surveillance  | 
| 9 |  | system maintained by the terminal operator; | 
| 10 |  |    (C) be accessible through a locked door; the door  | 
| 11 |  | must be alarmed in a manner that audibly signals the  | 
| 12 |  | surveillance monitoring room for the surveillance  | 
| 13 |  | system elected under subparagraph (B) of this  | 
| 14 |  | paragraph (5); and | 
| 15 |  |    (D) have a computer monitoring room entry log.  | 
| 16 |  |  This Section shall not be construed to impact the maximum  | 
| 17 |  | wager as set forth in this Act.". 
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