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91_SB1561 LRB9112997LDpr 1 AN ACT to amend the Illinois Horse Racing Act of 1975 by 2 changing Section 20. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Horse Racing Act of 1975 is 6 amended by changing Section 20 as follows: 7 (230 ILCS 5/20) (from Ch. 8, par. 37-20) 8 Sec. 20. (a) Any person desiring to conduct a horse race 9 meeting may apply to the Board for an organization license. 10 The application shall be made on a form prescribed and 11 furnished by the Board. The application shall specify: 12 (1) the dates on which it intends to conduct the 13 horse race meeting, which dates shall be provided under 14 Section 21; 15 (2) the hours of each racing day between which it 16 intends to hold or conduct horse racing at such meeting; 17 (3) the location where it proposes to conduct the 18 meeting; and 19 (4) any other information the Board may reasonably 20 require. 21 (b) A separate application for an organization license 22 shall be filed for each horse race meeting which such person 23 proposes to hold. Any such application, if made by an 24 individual, or by any individual as trustee, shall be signed 25 and verified under oath by such individual. If made by 26 individuals or a partnership, it shall be signed and verified 27 under oath by at least 2 of such individuals or members of 28 such partnership as the case may be. If made by an 29 association, corporation, corporate trustee or any other 30 entity, it shall be signed by the president and attested by 31 the secretary or assistant secretary under the seal of such -2- LRB9112997LDpr 1 association, trust or corporation if it has a seal, and shall 2 also be verified under oath by one of the signing officers. 3 (c) The application shall specify the name of the 4 persons, association, trust, or corporation making such 5 application and the post office address of the applicant; if 6 the applicant is a trustee, the names and addresses of the 7 beneficiaries; if a corporation, the names and post office 8 addresses of all officers, stockholders and directors; or if 9 such stockholders hold stock as a nominee or fiduciary, the 10 names and post office addresses of these persons, 11 partnerships, corporations, or trusts who are the beneficial 12 owners thereof or who are beneficially interested therein; 13 and if a partnership, the names and post office addresses of 14 all partners, general or limited; if the applicant is a 15 corporation, the name of the state of its incorporation shall 16 be specified. 17 (d) The applicant shall execute and file with the Board 18 a good faith affirmative action plan to recruit, train, and 19 upgrade minorities in all classifications within the 20 association. 21 (e) With such application there shall be delivered to 22 the Board a certified check or bank draft payable to the 23 order of the Board for an amount equal to $1,000. All 24 applications for the issuance of an organization license 25 shall be filed with the Board before August 1 of the year 26 prior to the year for which application is made and shall be 27 acted upon by the Board at a meeting to be held on such date 28 as shall be fixed by the Board during the last 15 days of 29 September of such prior year. At such meeting, the Board 30 shall announce the award of the racing meets, live racing 31 schedule, and designation of host track to the applicants and 32 its approval or disapproval of each application. No 33 announcement shall be considered binding until a formal order 34 is executed by the Board, which shall be executed no later -3- LRB9112997LDpr 1 than October 15 of that prior year. Absent the agreement of 2 the affected organization licensees, the Board shall not 3 grant overlapping race meetings to 2 or more tracks that are 4 within 100 miles of each other to conduct the thoroughbred 5 racing. 6 (e-5) In reviewing an application for the purpose of 7 granting an organization license consistent with the best 8 interests of the public and the sport of horse racing, the 9 Board shall consider: 10 (1) the character, reputation, experience, and 11 financial integrity of the applicant and of any other 12 separate person that either: 13 (i) controls the applicant, directly or 14 indirectly, or 15 (ii) is controlled, directly or indirectly, by 16 that applicant or by a person who controls, directly 17 or indirectly, that applicant; 18 (2) the applicant's facilities or proposed 19 facilities for conducting horse racing; 20 (3) the total revenue without regard to Section 21 32.1 to be derived by the State and horsemen from the 22 applicant's conducting a race meeting; 23 (4) the applicant's good faith affirmative action 24 plan to recruit, train, and upgrade minorities in all 25 employment classifications; 26 (5) the applicant's financial ability to purchase 27 and maintain adequate liability and casualty insurance; 28 (6) the applicant's proposed and prior year's 29 promotional and marketing activities and expenditures of 30 the applicant associated with those activities; 31 (7) an agreement, if any, among organization 32 licensees as provided in subsection (b) of Section 21 of 33 this Act; and 34 (8) the extent to which the applicant exceeds or -4- LRB9112997LDpr 1 meets other standards for the issuance of an organization 2 license that the Board shall adopt by rule. 3 In granting organization licenses and allocating dates 4 for horse race meetings, the Board shall have discretion to 5 determine an overall schedule, including required simulcasts 6 of Illinois races by host tracks that will, in its judgment, 7 be conducive to the best interests of the public and the 8 sport of horse racing. 9 (e-10) The Illinois Administrative Procedure Act shall 10 apply to administrative procedures of the Board under this 11 Act for the granting of an organization license, except that 12 (1) notwithstanding the provisions of subsection (b) of 13 Section 10-40 of the Illinois Administrative Procedure Act 14 regarding cross-examination, the Board may prescribe rules 15 limiting the right of an applicant or participant in any 16 proceeding to award an organization license to conduct 17 cross-examination of witnesses at that proceeding where that 18 cross-examination would unduly obstruct the timely award of 19 an organization license under subsection (e) of Section 20 of 20 this Act; (2) the provisions of Section 10-45 of the Illinois 21 Administrative Procedure Act regarding proposals for decision 22 are excluded under this Act; (3) notwithstanding the 23 provisions of subsection (a) of Section 10-60 of the Illinois 24 Administrative Procedure Act regarding ex parte 25 communications, the Board may prescribe rules allowing ex 26 parte communications with applicants or participants in a 27 proceeding to award an organization license where conducting 28 those communications would be in the best interest of racing, 29 provided all those communications are made part of the record 30 of that proceeding pursuant to subsection (c) of Section 31 10-60 of the Illinois Administrative Procedure Act; (4) the 32 provisions of Section 14a of this Act and the rules of the 33 Board promulgated under that Section shall apply instead of 34 the provisions of Article 10 of the Illinois Administrative -5- LRB9112997LDpr 1 Procedure Act regarding administrative law judges; and (5) 2 the provisions of subsection (d) of Section 10-65 of the 3 Illinois Administrative Procedure Act that prevent summary 4 suspension of a license pending revocation or other action 5 shall not apply. 6 (f) The Board may allot racing dates to an organization 7 licensee for more than one calendar year but for no more than 8 3 successive calendar years in advance, provided that the 9 Board shall review such allotment for more than one calendar 10 year prior to each year for which such allotment has been 11 made. The granting of an organization license to a person 12 constitutes a privilege to conduct a horse race meeting under 13 the provisions of this Act, and no person granted an 14 organization license shall be deemed to have a vested 15 interest, property right, or future expectation to receive an 16 organization license in any subsequent year as a result of 17 the granting of an organization license. Organization 18 licenses shall be subject to revocation if the organization 19 licensee has violated any provision of this Act or the rules 20 and regulations promulgated under this Act or has been 21 convicted of a crime or has failed to disclose or has stated 22 falsely any information called for in the application for an 23 organization license. Any organization license revocation 24 proceeding shall be in accordance with Section 16 regarding 25 suspension and revocation of occupation licenses. 26 (f-5) If, (i) an applicant does not file an acceptance 27 of the racing dates awarded by the Board as required under 28 part (1) of subsection (h) of this Section 20, or (ii) an 29 organization licensee has its license suspended or revoked 30 under this Act, the Board, upon conducting an emergency 31 hearing as provided for in this Act, may reaward on an 32 emergency basis pursuant to rules established by the Board, 33 racing dates not accepted or the racing dates associated with 34 any suspension or revocation period to one or more -6- LRB9112997LDpr 1 organization licensees, new applicants, or any combination 2 thereof, upon terms and conditions that the Board determines 3 are in the best interest of racing, provided, the 4 organization licensees or new applicants receiving the 5 awarded racing dates file an acceptance of those reawarded 6 racing dates as required under paragraph (1) of subsection 7 (h) of this Section 20 and comply with the other provisions 8 of this Act. The Illinois Administrative Procedures Act 9 shall not apply to the administrative procedures of the Board 10 in conducting the emergency hearing and the reallocation of 11 racing dates on an emergency basis. 12 (g) (Blank). 13 (h) The Board shall send the applicant a copy of its 14 formally executed order by certified mail addressed to the 15 applicant at the address stated in his application, which 16 notice shall be mailed within 5 days of the date the formal 17 order is executed. 18 Each applicant notified shall, within 10 days after 19 receipt of the final executed order of the Board awarding 20 racing dates: 21 (1) file with the Board an acceptance of such award 22 in the form prescribed by the Board; 23 (2) pay to the Board an additional amount equal to 24 $110 for each racing date awarded; and 25 (3) file with the Board the bonds required in 26 Sections 21 and 25 at least 20 days prior to the first 27 day of each race meeting. 28 Upon compliance with the provisions of paragraphs (1), (2), 29 and (3) of this subsection (h), the applicant shall be issued 30 an organization license. 31 If any applicant fails to comply with this Section or 32 fails to pay the organization license fees herein provided, 33 no organization license shall be issued to such applicant. 34 (i) At any time after the Board awards racing dates -7- LRB9112997LDpr 1 pursuant to subsection (e) and before the Board's next 2 regular meeting to award racing dates, the Board may make 3 changes in the original allotment of racing dates. Before 4 the Board may make such changes in the original allotment of 5 racing dates pursuant to this subsection (i), it must provide 6 at least 15 days notice to all affected parties and provide 7 an opportunity for those parties to be heard at a public 8 meeting. 9 (Source: P.A. 91-40, eff. 6-25-99.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.