State of Illinois
                            92nd General Assembly
                              Daily House Journal

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STATE OF ILLINOIS                               HOUSE JOURNAL HOUSE OF REPRESENTATIVES NINETY-SECOND GENERAL ASSEMBLY 126TH LEGISLATIVE DAY WEDNESDAY, MAY 1, 2002 12:00 O'CLOCK NOON NO. 126
[May 1, 2002] 2 HOUSE OF REPRESENTATIVES Daily Journal Index 126th Legislative Day Action Page(s) Adjournment........................................ 39 Corrections Budget & Impact Note Supplied.......... 4 Fiscal Impact Note Supplied........................ 3 Judicial Note Supplied............................. 4 Pension Impact Note Supplied....................... 4 Quorum Roll Call................................... 3 Recess............................................. 7 State Debt Impact Note Supplied.................... 3 State Mandates Note Supplied....................... 3 Bill Number Legislative Action Page(s) HB 5803 Motion Submitted................................... 3 HC 0013 Committee Report................................... 4 HJR 0073 Resolution......................................... 37 HR 0827 Committee Report................................... 6 HR 0850 Resolution......................................... 35 HR 0852 Resolution......................................... 35 HR 0854 Resolution......................................... 36 HR 0856 Resolution......................................... 37 SB 1540 Second Reading..................................... 7 SB 1543 Committee Report-Floor Amendment/s................. 5 SB 1543 Motion Submitted................................... 3 SB 1543 Second Reading - Amendment/s....................... 7 SB 1543 Third Reading...................................... 23 SB 1588 Committee Report-Floor Amendment/s................. 4 SB 1635 Committee Report-Floor Amendment/s................. 4 SB 1657 Committee Report-Floor Amendment/s................. 6 SB 1666 Committee Report-Floor Amendment/s................. 6 SB 1859 Second Reading..................................... 23 SB 1907 Committee Report-Floor Amendment/s................. 5 SB 1917 Committee Report-Floor Amendment/s................. 5 SB 2072 Third Reading...................................... 6 SB 2081 Committee Report-Floor Amendment/s................. 3 SB 2081 Second Reading - Amendment/s....................... 23 SB 2214 Committee Report-Floor Amendment/s................. 5
3 [May 1, 2002] The House met pursuant to adjournment. The Speaker in the Chair. Prayer by LeeArthur Crawford, Assistant Pastor with the Victory Temple Church in Springfield, Illinois. Representative Jefferson led the House in the Pledge of Allegiance. By direction of the Speaker, a roll call was taken to ascertain the attendance of Members, as follows: 115 present. (ROLL CALL 1) By unanimous consent, Representatives Myers and O'Brien were excused from attendance. REQUEST TO BE SHOWN ON QUORUM Having been absent when the Quorum Roll Call for Attendance was taken, this is to advise you that I, Representative Durkin, should be recorded as present. REPORT FROM THE COMMITTEE ON RULES Representative Currie, Chairperson, from the Committee on Rules to which the following were referred, action taken earlier today, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 5 to SENATE BILL 2081. The committee roll call vote on the foregoing Legislative Measure is as follows: 4, Yeas; 0, Nays; 0, Answering Present. Y Currie, Chair A Hannig (Lang) Y Cross Y Tenhouse, Spkpn Y Turner, Art MOTIONS SUBMITTED Representative Black submitted the following written motion, which was placed on the order of Motions: MOTION I move to table Amendment 1 to SENATE BILL 1543. JOINT ACTION MOTIONS SUBMITTED Representative Meyer submitted the following written motion, which was referred to the Committee on Rules: MOTION I move to concur with Senate Amendment No. 1 to HOUSE BILL 5803. FISCAL IMPACT NOTE SUPPLIED A Fiscal Impact Note has been supplied for SENATE BILL 1543, as amended. STATE MANDATES NOTE SUPPLIED A State Mandates Note has been supplied for SENATE BILL 1543, as amended. STATE DEBT IMPACT NOTE SUPPLIED
[May 1, 2002] 4 A State Debt Impact Note has been supplied for SENATE BILL 1543, as amended. JUDICIAL NOTE SUPPLIED A Judicial Note has been supplied for SENATE BILL 1543, as amended. PENSION IMPACT NOTE SUPPLIED A Pension Impact Note has been supplied for SENATE BILL 1543, as amended. CORRECTIONS BUDGET & IMPACT NOTE SUPPLIED A Corrections Budget & Impact Note has been supplied for SENATE BILL 1543, as amended. REPORT FROM STANDING COMMITTEE Representative Reitz, Chairperson, from the Committee on Cities & Villages to which the following were referred, action taken on April 30, 2002, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 1 to SENATE BILL 1635. The committee roll call vote on Amendment No. 1 to SENATE BILL 1635 is as follows: 12, Yeas; 0, Nays; 0, Answering Present. Y Reitz, Chair Y Mathias, Spkpn Y Berns Y Mautino Y Colvin Y May A Durkin Y McCarthy, V-Chair Y Forby Y Schmitz Y Marquardt Y Slone Y Wojcik Representative Steve Davis, Chairperson, from the Committee on Constitutional Officers to which the following were referred, action taken on April 30, 2002, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendments numbered 3 and 5 to SENATE BILL 1588. Representative Giles, Chairperson, from the Committee on Elementary & Secondary Education to which the following were referred, action taken earlier today, and reported the same back with the following recommendations: That the Constitutional Amendment be reported "do pass" and be placed on the order of Second Reading (Second Legislative Day): HOUSE JOINT RESOLUTION CONSTITUTIONAL AMENDMENT 13. The committee roll call vote on HOUSE JOINT RESOLUTION CONSTITUTIONAL AMENDMENT 13 is as follows: 14, Yeas; 2, Nays; 1, Answering Present. Y Giles, Chair P Johnson N Bassi (Tenhouse) Y Kosel Y Collins Y Krause N Cowlishaw, Spkpn Y Miller A Crotty Y Mitchell, Jerry A Davis, Monique, V-Chair Y Moffitt
5 [May 1, 2002] Y Delgado Y Mulligan Y Fowler A Murphy Y Garrett Y Osterman Y Hoeft Y Smith, Michael A Winkel Representative Novak, Chairperson, from the Committee on Environment & Energy to which the following were referred, action taken on April 30, 2002, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 2 to SENATE BILL 1907. The committee roll call vote on Amendment No. 2 to SENATE BILL 1907 is as follows: 13, Yeas; 0, Nays; 0, Answering Present. Y Novak, Chair Y Holbrook Y Beaubien Y Hultgren Y Bradley Y Jones, Shirley A Brunsvold Y Lawfer A Davis, Steve, V-Chair Y Marquardt A Durkin Y Parke Y Hartke Y Reitz A Hassert, Spkpn Y Simpson Y Soto Representative Burke, Chairperson, from the Committee on Executive to which the following were referred, action taken earlier today, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 1 to SENATE BILL 1543. That the Floor Amendment be reported "recommends be adopted": Amendments numbered 2 and 3 to SENATE BILL 2214. The committee roll call vote on Amendment No. 1 to SENATE BILL 1543 is as follows: 7, Yeas; 6, Nays; 0, Answering Present. Y Burke, Chair Y Capparelli Y Acevedo N Hassert N Beaubien (Tenhouse) Y Jones, Lou N Biggins Y McKeon Y Bradley N Pankau Y Bugielski, V-Chair N Poe, Spkpn N Rutherford The committee roll call vote on Amendments No. 2 and 3 to SENATE BILL 2214 is as follows: 11, Yeas; 0, Nays; 0, Answering Present. Y Burke, Chair Y Capparelli Y Acevedo Y Hassert Y Beaubien (Tenhouse) Y Jones, Lou Y Biggins A McKeon A Bradley Y Pankau Y Bugielski, V-Chair Y Poe, Spkpn Y Rutherford Representative O'Brien, Chairperson, from the Committee on Judiciary II - Criminal Law to which the following were referred, action taken on April 30, 2002, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 1 to SENATE BILL 1917.
[May 1, 2002] 6 The committee roll call vote on Amendment No. 1 to SENATE BILL 1917 is as follows: 10, Yeas; 0, Nays; 0, Answering Present. A O'Brien, Chair Y Johnson A Bradley Y Jones, Lou Y Brady Y Lindner Y Brosnahan, V-Chair Y Smith, Michael Y Brunsvold A Turner, John Y Delgado Y Wait Y Winkel, Spkpn Representative Joseph Lyons, Chairperson, from the Committee on Revenue to which the following were referred, action taken earlier today, and reported the same back with the following recommendations: That the Floor Amendment be reported "recommends be adopted": Amendment No. 1 to SENATE BILL 1666. The committee roll call vote on Amendment No. 1 to SENATE BILL 1666 is as follows: 10, Yeas; 0, Nays; 0, Answering Present. Y Lyons, Joseph, Chair A Kenner, V-Chair Y Beaubien, Spkpn Y Lyons, Eileen Y Biggins Y McGuire Y Currie Y Pankau Y Granberg Y Turner, Art Y Watson Representative Hoffman, Chairperson, from the Committee on Transportation & Motor Vehicles to which the following were referred, action taken earlier today, and reported the same back with the following recommendations: That the resolution be reported "recommends be adopted" and be placed on the House Calendar: HOUSE RESOLUTION 827. That the Floor Amendment be reported "recommends be adopted": Amendment No. 1 to SENATE BILL 1657. The committee roll call vote on HOUSE RESOLUTION 827 is as follows: 17, Yeas; 0, Nays; 0, Answering Present. Y Hoffman, Chair Y Kosel Y Bassi Y Lyons, Joseph A Black Y Mathias Y Brosnahan Y McAuliffe A Collins A O'Brien, V-Chair A Fowler Y O'Connor Y Garrett Y Osterman Y Hamos Y Reitz Y Hartke Y Schmitz Y Jones, John Y Wait, Spkpn Y Zickus SENATE BILLS ON THIRD READING The following bill and any amendments adopted thereto was printed and laid upon the Members' desks. Any amendments pending were tabled pursuant to Rule 40(a). On motion of Representative Bellock, SENATE BILL 2072 was taken up and read by title a third time. And the question being, "Shall this bill pass?" it was decided in the affirmative by the following vote: 114, Yeas; 0, Nays; 0, Answering Present.
7 [May 1, 2002] (ROLL CALL 2) This bill, having received the votes of a constitutional majority of the Members elected, was declared passed. Ordered that the Clerk inform the Senate. SENATE BILLS ON SECOND READING Having been printed, the following bill was taken up, read by title a second time and advanced to the order of Third Reading: SENATE BILL 1540. RECESS At the hour of 12:23 o'clock p.m., Representative Black moved that the House do now take a recess until 1:30 o'clock p.m. The motion prevailed. At the hour of 1:52 o'clock p.m., the House resumed its session. Speaker Madigan in the Chair. SENATE BILLS ON SECOND READING SENATE BILL 1543. Having been printed, was taken up and read by title a second time. Representative Currie offered the following amendment: AMENDMENT NO. 1 TO SENATE BILL 1543 AMENDMENT NO. 1. Amend Senate Bill 1543 on page 1, immediately below line 3, by inserting the following: "Section 3. The Illinois Income Tax Act is amended by changing Section 203 as follows: (35 ILCS 5/203) (from Ch. 120, par. 2-203) Sec. 203. Base income defined. (a) Individuals. (1) In general. In the case of an individual, base income means an amount equal to the taxpayer's adjusted gross income for the taxable year as modified by paragraph (2). (2) Modifications. The adjusted gross income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts: (A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except stock dividends of qualified public utilities described in Section 305(e) of the Internal Revenue Code; (B) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income in the computation of adjusted gross income for the taxable year; (C) An amount equal to the amount received during the taxable year as a recovery or refund of real property taxes paid with respect to the taxpayer's principal residence under the Revenue Act of 1939 and for which a deduction was previously taken under subparagraph (L) of this paragraph (2) prior to July 1, 1991, the retrospective application date of Article 4 of Public Act 87-17. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes for the entire property which is attributable to such principal residence; (D) An amount equal to the amount of the capital gain deduction allowable under the Internal Revenue Code, to the
[May 1, 2002] 8 extent deducted from gross income in the computation of adjusted gross income; (D-5) An amount, to the extent not included in adjusted gross income, equal to the amount of money withdrawn by the taxpayer in the taxable year from a medical care savings account and the interest earned on the account in the taxable year of a withdrawal pursuant to subsection (b) of Section 20 of the Medical Care Savings Account Act or subsection (b) of Section 20 of the Medical Care Savings Account Act of 2000; and (D-10) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the individual deducted in computing adjusted gross income and for which the individual claims a credit under subsection (l) of Section 201; (D-15) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code; and (D-16) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (Z) with respect to that property; The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property. and by deducting from the total so obtained the sum of the following amounts: (E) For taxable years ending before December 31, 2001, any amount included in such total in respect of any compensation (including but not limited to any compensation paid or accrued to a serviceman while a prisoner of war or missing in action) paid to a resident by reason of being on active duty in the Armed Forces of the United States and in respect of any compensation paid or accrued to a resident who as a governmental employee was a prisoner of war or missing in action, and in respect of any compensation paid to a resident in 1971 or thereafter for annual training performed pursuant to Sections 502 and 503, Title 32, United States Code as a member of the Illinois National Guard. For taxable years ending on or after December 31, 2001, any amount included in such total in respect of any compensation (including but not limited to any compensation paid or accrued to a serviceman while a prisoner of war or missing in action) paid to a resident by reason of being a member of any component of the Armed Forces of the United States and in respect of any compensation paid or accrued to a resident who as a governmental employee was a prisoner of war or missing in action, and in respect of any compensation paid to a resident in 2001 or thereafter by reason of being a member of the Illinois National Guard. The provisions of this amendatory Act of the 92nd General Assembly are exempt from the provisions of Section 250; (F) An amount equal to all amounts included in such total pursuant to the provisions of Sections 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the Internal Revenue Code, or included in such total as distributions under the provisions of any retirement or disability plan for employees of any governmental agency or unit, or retirement payments to retired partners, which payments are excluded in computing net earnings from self employment by Section 1402 of
9 [May 1, 2002] the Internal Revenue Code and regulations adopted pursuant thereto; (G) The valuation limitation amount; (H) An amount equal to the amount of any tax imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year; (I) An amount equal to all amounts included in such total pursuant to the provisions of Section 111 of the Internal Revenue Code as a recovery of items previously deducted from adjusted gross income in the computation of taxable income; (J) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act, and conducts substantially all of its operations in an Enterprise Zone or zones; (K) An amount equal to those dividends included in such total that were paid by a corporation that conducts business operations in a federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois; provided that dividends eligible for the deduction provided in subparagraph (J) of paragraph (2) of this subsection shall not be eligible for the deduction provided under this subparagraph (K); (L) For taxable years ending after December 31, 1983, an amount equal to all social security benefits and railroad retirement benefits included in such total pursuant to Sections 72(r) and 86 of the Internal Revenue Code; (M) With the exception of any amounts subtracted under subparagraph (N), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code of 1954, as now or hereafter amended; and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code; the provisions of this subparagraph are exempt from the provisions of Section 250; (N) An amount equal to all amounts included in such total which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States; provided that, in the case of any statute of this State that exempts income derived from bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization; (O) An amount equal to any contribution made to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act; (P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986; (Q) An amount equal to any amounts included in such total, received by the taxpayer as an acceleration in the payment of life, endowment or annuity benefits in advance of the time they would otherwise be payable as an indemnity for a terminal illness; (R) An amount equal to the amount of any federal or State bonus paid to veterans of the Persian Gulf War; (S) An amount, to the extent included in adjusted gross income, equal to the amount of a contribution made in the taxable year on behalf of the taxpayer to a medical care savings account established under the Medical Care Savings
[May 1, 2002] 10 Account Act or the Medical Care Savings Account Act of 2000 to the extent the contribution is accepted by the account administrator as provided in that Act; (T) An amount, to the extent included in adjusted gross income, equal to the amount of interest earned in the taxable year on a medical care savings account established under the Medical Care Savings Account Act or the Medical Care Savings Account Act of 2000 on behalf of the taxpayer, other than interest added pursuant to item (D-5) of this paragraph (2); (U) For one taxable year beginning on or after January 1, 1994, an amount equal to the total amount of tax imposed and paid under subsections (a) and (b) of Section 201 of this Act on grant amounts received by the taxpayer under the Nursing Home Grant Assistance Act during the taxpayer's taxable years 1992 and 1993; (V) Beginning with tax years ending on or after December 31, 1995 and ending with tax years ending on or before December 31, 2004, an amount equal to the amount paid by a taxpayer who is a self-employed taxpayer, a partner of a partnership, or a shareholder in a Subchapter S corporation for health insurance or long-term care insurance for that taxpayer or that taxpayer's spouse or dependents, to the extent that the amount paid for that health insurance or long-term care insurance may be deducted under Section 213 of the Internal Revenue Code of 1986, has not been deducted on the federal income tax return of the taxpayer, and does not exceed the taxable income attributable to that taxpayer's income, self-employment income, or Subchapter S corporation income; except that no deduction shall be allowed under this item (V) if the taxpayer is eligible to participate in any health insurance or long-term care insurance plan of an employer of the taxpayer or the taxpayer's spouse. The amount of the health insurance and long-term care insurance subtracted under this item (V) shall be determined by multiplying total health insurance and long-term care insurance premiums paid by the taxpayer times a number that represents the fractional percentage of eligible medical expenses under Section 213 of the Internal Revenue Code of 1986 not actually deducted on the taxpayer's federal income tax return; (W) For taxable years beginning on or after January 1, 1998, all amounts included in the taxpayer's federal gross income in the taxable year from amounts converted from a regular IRA to a Roth IRA. This paragraph is exempt from the provisions of Section 250; (X) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II; provided, however, this subtraction from federal adjusted gross income does not apply to assets acquired with such assets or with the proceeds from the sale of such assets; provided, further, this paragraph shall only apply to a taxpayer who was the first
11 [May 1, 2002] recipient of such assets after their recovery and who is a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim. The amount of and the eligibility for any public assistance, benefit, or similar entitlement is not affected by the inclusion of items (i) and (ii) of this paragraph in gross income for federal income tax purposes. This paragraph is exempt from the provisions of Section 250; and (Y) For taxable years beginning on or after January 1, 2002, moneys contributed in the taxable year to a College Savings Pool account under Section 16.5 of the State Treasurer Act. This subparagraph (Y) is exempt from the provisions of Section 250; (Z) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where: (1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction; and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429). The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code; and (AA) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then an amount equal to that addition modification. The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property. (b) Corporations. (1) In general. In the case of a corporation, base income means an amount equal to the taxpayer's taxable income for the taxable year as modified by paragraph (2). (2) Modifications. The taxable income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts: (A) An amount equal to all amounts paid or accrued to the taxpayer as interest and all distributions received from regulated investment companies during the taxable year to the extent excluded from gross income in the computation of taxable income; (B) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income in the computation of taxable income for the taxable year; (C) In the case of a regulated investment company, an amount equal to the excess of (i) the net long-term capital gain for the taxable year, over (ii) the amount of the capital gain dividends designated as such in accordance with Section 852(b)(3)(C) of the Internal Revenue Code and any amount
[May 1, 2002] 12 designated under Section 852(b)(3)(D) of the Internal Revenue Code, attributable to the taxable year (this amendatory Act of 1995 (Public Act 89-89) is declarative of existing law and is not a new enactment); (D) The amount of any net operating loss deduction taken in arriving at taxable income, other than a net operating loss carried forward from a taxable year ending prior to December 31, 1986; (E) For taxable years in which a net operating loss carryback or carryforward from a taxable year ending prior to December 31, 1986 is an element of taxable income under paragraph (1) of subsection (e) or subparagraph (E) of paragraph (2) of subsection (e), the amount by which addition modifications other than those provided by this subparagraph (E) exceeded subtraction modifications in such earlier taxable year, with the following limitations applied in the order that they are listed: (i) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall be reduced by the amount of addition modification under this subparagraph (E) which related to that net operating loss and which was taken into account in calculating the base income of an earlier taxable year, and (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward; For taxable years in which there is a net operating loss carryback or carryforward from more than one other taxable year ending prior to December 31, 1986, the addition modification provided in this subparagraph (E) shall be the sum of the amounts computed independently under the preceding provisions of this subparagraph (E) for each such taxable year; and (E-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the corporation deducted in computing adjusted gross income and for which the corporation claims a credit under subsection (l) of Section 201; (E-10) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code; and (E-11) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (E-10), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (T) with respect to that property; The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property. and by deducting from the total so obtained the sum of the following amounts: (F) An amount equal to the amount of any tax imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year; (G) An amount equal to any amount included in such total under Section 78 of the Internal Revenue Code; (H) In the case of a regulated investment company, an
13 [May 1, 2002] amount equal to the amount of exempt interest dividends as defined in subsection (b) (5) of Section 852 of the Internal Revenue Code, paid to shareholders for the taxable year; (I) With the exception of any amounts subtracted under subparagraph (J), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(a)(2) and amounts disallowed as interest expense by Section 291(a)(3) of the Internal Revenue Code, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(a)(1) of the Internal Revenue Code, as now or hereafter amended; and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i) of the Internal Revenue Code; the provisions of this subparagraph are exempt from the provisions of Section 250; (J) An amount equal to all amounts included in such total which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States; provided that, in the case of any statute of this State that exempts income derived from bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization; (K) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act and conducts substantially all of its operations in an Enterprise Zone or zones; (L) An amount equal to those dividends included in such total that were paid by a corporation that conducts business operations in a federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois; provided that dividends eligible for the deduction provided in subparagraph (K) of paragraph 2 of this subsection shall not be eligible for the deduction provided under this subparagraph (L); (M) For any taxpayer that is a financial organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the Enterprise Zone Investment Credit. To determine the portion of a loan or loans that is secured by property eligible for a Section 201(f) investment credit to the borrower, the entire principal amount of the loan or loans between the taxpayer and the borrower should be divided into the basis of the Section 201(f) investment credit property which secures the loan or loans, using for this purpose the original basis of such property on the date that it was placed in service in the Enterprise Zone. The subtraction modification available to taxpayer in any year under this subsection shall be that portion of the total interest paid by the borrower with respect to such loan attributable to the eligible property as calculated under the previous sentence; (M-1) For any taxpayer that is a financial organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the High Impact Business Investment Credit. To determine the portion of a loan or loans that is secured by property eligible for a Section 201(h) investment credit to the borrower, the entire principal amount of the loan or loans between the taxpayer and the borrower should be divided into the basis of the Section 201(h) investment credit property which secures the loan or loans, using for this purpose the original basis of such
[May 1, 2002] 14 property on the date that it was placed in service in a federally designated Foreign Trade Zone or Sub-Zone located in Illinois. No taxpayer that is eligible for the deduction provided in subparagraph (M) of paragraph (2) of this subsection shall be eligible for the deduction provided under this subparagraph (M-1). The subtraction modification available to taxpayers in any year under this subsection shall be that portion of the total interest paid by the borrower with respect to such loan attributable to the eligible property as calculated under the previous sentence; (N) Two times any contribution made during the taxable year to a designated zone organization to the extent that the contribution (i) qualifies as a charitable contribution under subsection (c) of Section 170 of the Internal Revenue Code and (ii) must, by its terms, be used for a project approved by the Department of Commerce and Community Affairs under Section 11 of the Illinois Enterprise Zone Act; (O) An amount equal to: (i) 85% for taxable years ending on or before December 31, 1992, or, a percentage equal to the percentage allowable under Section 243(a)(1) of the Internal Revenue Code of 1986 for taxable years ending after December 31, 1992, of the amount by which dividends included in taxable income and received from a corporation that is not created or organized under the laws of the United States or any state or political subdivision thereof, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid or deemed paid under Sections 951 through 964 of the Internal Revenue Code, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends; plus (ii) 100% of the amount by which dividends, included in taxable income and received, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid or deemed paid under Sections 951 through 964 of the Internal Revenue Code, from any such corporation specified in clause (i) that would but for the provisions of Section 1504 (b) (3) of the Internal Revenue Code be treated as a member of the affiliated group which includes the dividend recipient, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends; (P) An amount equal to any contribution made to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act; (Q) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986; (R) In the case of an attorney-in-fact with respect to whom an interinsurer or a reciprocal insurer has made the election under Section 835 of the Internal Revenue Code, 26 U.S.C. 835, an amount equal to the excess, if any, of the amounts paid or incurred by that interinsurer or reciprocal insurer in the taxable year to the attorney-in-fact over the deduction allowed to that interinsurer or reciprocal insurer with respect to the attorney-in-fact under Section 835(b) of the Internal Revenue Code for the taxable year; and (S) For taxable years ending on or after December 31, 1997, in the case of a Subchapter S corporation, an amount equal to all amounts of income allocable to a shareholder subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act, including amounts allocable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code. This subparagraph (S) is exempt from the
15 [May 1, 2002] provisions of Section 250; (T) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where: (1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction; and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429). The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code; and (U) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (E-10), then an amount equal to that addition modification. The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property. (3) Special rule. For purposes of paragraph (2) (A), "gross income" in the case of a life insurance company, for tax years ending on and after December 31, 1994, shall mean the gross investment income for the taxable year. (c) Trusts and estates. (1) In general. In the case of a trust or estate, base income means an amount equal to the taxpayer's taxable income for the taxable year as modified by paragraph (2). (2) Modifications. Subject to the provisions of paragraph (3), the taxable income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts: (A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of taxable income; (B) In the case of (i) an estate, $600; (ii) a trust which, under its governing instrument, is required to distribute all of its income currently, $300; and (iii) any other trust, $100, but in each such case, only to the extent such amount was deducted in the computation of taxable income; (C) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income in the computation of taxable income for the taxable year; (D) The amount of any net operating loss deduction taken in arriving at taxable income, other than a net operating loss carried forward from a taxable year ending prior to December 31, 1986; (E) For taxable years in which a net operating loss carryback or carryforward from a taxable year ending prior to December 31, 1986 is an element of taxable income under paragraph (1) of subsection (e) or subparagraph (E) of paragraph (2) of subsection (e), the amount by which addition
[May 1, 2002] 16 modifications other than those provided by this subparagraph (E) exceeded subtraction modifications in such taxable year, with the following limitations applied in the order that they are listed: (i) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall be reduced by the amount of addition modification under this subparagraph (E) which related to that net operating loss and which was taken into account in calculating the base income of an earlier taxable year, and (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward; For taxable years in which there is a net operating loss carryback or carryforward from more than one other taxable year ending prior to December 31, 1986, the addition modification provided in this subparagraph (E) shall be the sum of the amounts computed independently under the preceding provisions of this subparagraph (E) for each such taxable year; (F) For taxable years ending on or after January 1, 1989, an amount equal to the tax deducted pursuant to Section 164 of the Internal Revenue Code if the trust or estate is claiming the same tax for purposes of the Illinois foreign tax credit under Section 601 of this Act; (G) An amount equal to the amount of the capital gain deduction allowable under the Internal Revenue Code, to the extent deducted from gross income in the computation of taxable income; and (G-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the trust or estate deducted in computing adjusted gross income and for which the trust or estate claims a credit under subsection (l) of Section 201; (G-10) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code; and (G-11) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (G-10), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (R) with respect to that property; The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property. and by deducting from the total so obtained the sum of the following amounts: (H) An amount equal to all amounts included in such total pursuant to the provisions of Sections 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the Internal Revenue Code or included in such total as distributions under the provisions of any retirement or disability plan for employees of any governmental agency or unit, or retirement payments to retired partners, which payments are excluded in computing net earnings from self employment by Section 1402 of the Internal Revenue Code and regulations adopted pursuant thereto; (I) The valuation limitation amount;
17 [May 1, 2002] (J) An amount equal to the amount of any tax imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year; (K) An amount equal to all amounts included in taxable income as modified by subparagraphs (A), (B), (C), (D), (E), (F) and (G) which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States; provided that, in the case of any statute of this State that exempts income derived from bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization; (L) With the exception of any amounts subtracted under subparagraph (K), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2) and 265(a)(2) of the Internal Revenue Code, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code of 1954, as now or hereafter amended; and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code; the provisions of this subparagraph are exempt from the provisions of Section 250; (M) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act and conducts substantially all of its operations in an Enterprise Zone or Zones; (N) An amount equal to any contribution made to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act; (O) An amount equal to those dividends included in such total that were paid by a corporation that conducts business operations in a federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois; provided that dividends eligible for the deduction provided in subparagraph (M) of paragraph (2) of this subsection shall not be eligible for the deduction provided under this subparagraph (O); (P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986; and (Q) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II; provided, however, this subtraction from federal adjusted gross income does not apply to assets acquired with such assets or with the proceeds from the sale of such assets; provided, further, this paragraph shall only apply to a taxpayer who was the first
[May 1, 2002] 18 recipient of such assets after their recovery and who is a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim. The amount of and the eligibility for any public assistance, benefit, or similar entitlement is not affected by the inclusion of items (i) and (ii) of this paragraph in gross income for federal income tax purposes. This paragraph is exempt from the provisions of Section 250; (R) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where: (1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction; and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429). The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code; and (S) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (G-10), then an amount equal to that addition modification. The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property. (3) Limitation. The amount of any modification otherwise required under this subsection shall, under regulations prescribed by the Department, be adjusted by any amounts included therein which were properly paid, credited, or required to be distributed, or permanently set aside for charitable purposes pursuant to Internal Revenue Code Section 642(c) during the taxable year. (d) Partnerships. (1) In general. In the case of a partnership, base income means an amount equal to the taxpayer's taxable income for the taxable year as modified by paragraph (2). (2) Modifications. The taxable income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts: (A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of taxable income; (B) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income for the taxable year; (C) The amount of deductions allowed to the partnership pursuant to Section 707 (c) of the Internal Revenue Code in calculating its taxable income; and (D) An amount equal to the amount of the capital gain deduction allowable under the Internal Revenue Code, to the
19 [May 1, 2002] extent deducted from gross income in the computation of taxable income; (D-5) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code; and (D-6) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (O) with respect to that property; The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property. and by deducting from the total so obtained the following amounts: (E) The valuation limitation amount; (F) An amount equal to the amount of any tax imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year; (G) An amount equal to all amounts included in taxable income as modified by subparagraphs (A), (B), (C) and (D) which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States; provided that, in the case of any statute of this State that exempts income derived from bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization; (H) Any income of the partnership which constitutes personal service income as defined in Section 1348 (b) (1) of the Internal Revenue Code (as in effect December 31, 1981) or a reasonable allowance for compensation paid or accrued for services rendered by partners to the partnership, whichever is greater; (I) An amount equal to all amounts of income distributable to an entity subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act including amounts distributable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code; (J) With the exception of any amounts subtracted under subparagraph (G), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code, as now or hereafter amended; and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code; the provisions of this subparagraph are exempt from the provisions of Section 250; (K) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act, enacted by the 82nd General Assembly, and which does not conduct such operations other than in an Enterprise Zone or Zones; (L) An amount equal to any contribution made to a job training project established pursuant to the Real Property Tax Increment Allocation Redevelopment Act; (M) An amount equal to those dividends included in such total that were paid by a corporation that conducts business
[May 1, 2002] 20 operations in a federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois; provided that dividends eligible for the deduction provided in subparagraph (K) of paragraph (2) of this subsection shall not be eligible for the deduction provided under this subparagraph (M); (N) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986; (O) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where: (1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction; and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429). The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code; and (P) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to that addition modification. The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property. (e) Gross income; adjusted gross income; taxable income. (1) In general. Subject to the provisions of paragraph (2) and subsection (b) (3), for purposes of this Section and Section 803(e), a taxpayer's gross income, adjusted gross income, or taxable income for the taxable year shall mean the amount of gross income, adjusted gross income or taxable income properly reportable for federal income tax purposes for the taxable year under the provisions of the Internal Revenue Code. Taxable income may be less than zero. However, for taxable years ending on or after December 31, 1986, net operating loss carryforwards from taxable years ending prior to December 31, 1986, may not exceed the sum of federal taxable income for the taxable year before net operating loss deduction, plus the excess of addition modifications over subtraction modifications for the taxable year. For taxable years ending prior to December 31, 1986, taxable income may never be an amount in excess of the net operating loss for the taxable year as defined in subsections (c) and (d) of Section 172 of the Internal Revenue Code, provided that when taxable income of a corporation (other than a Subchapter S corporation), trust, or estate is less than zero and addition modifications, other than those provided by subparagraph (E) of paragraph (2) of subsection (b) for corporations or subparagraph (E) of paragraph (2) of subsection (c)
21 [May 1, 2002] for trusts and estates, exceed subtraction modifications, an addition modification must be made under those subparagraphs for any other taxable year to which the taxable income less than zero (net operating loss) is applied under Section 172 of the Internal Revenue Code or under subparagraph (E) of paragraph (2) of this subsection (e) applied in conjunction with Section 172 of the Internal Revenue Code. (2) Special rule. For purposes of paragraph (1) of this subsection, the taxable income properly reportable for federal income tax purposes shall mean: (A) Certain life insurance companies. In the case of a life insurance company subject to the tax imposed by Section 801 of the Internal Revenue Code, life insurance company taxable income, plus the amount of distribution from pre-1984 policyholder surplus accounts as calculated under Section 815a of the Internal Revenue Code; (B) Certain other insurance companies. In the case of mutual insurance companies subject to the tax imposed by Section 831 of the Internal Revenue Code, insurance company taxable income; (C) Regulated investment companies. In the case of a regulated investment company subject to the tax imposed by Section 852 of the Internal Revenue Code, investment company taxable income; (D) Real estate investment trusts. In the case of a real estate investment trust subject to the tax imposed by Section 857 of the Internal Revenue Code, real estate investment trust taxable income; (E) Consolidated corporations. In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated income tax return for the taxable year for federal income tax purposes, taxable income determined as if such corporation had filed a separate return for federal income tax purposes for the taxable year and each preceding taxable year for which it was a member of an affiliated group. For purposes of this subparagraph, the taxpayer's separate taxable income shall be determined as if the election provided by Section 243(b) (2) of the Internal Revenue Code had been in effect for all such years; (F) Cooperatives. In the case of a cooperative corporation or association, the taxable income of such organization determined in accordance with the provisions of Section 1381 through 1388 of the Internal Revenue Code; (G) Subchapter S corporations. In the case of: (i) a Subchapter S corporation for which there is in effect an election for the taxable year under Section 1362 of the Internal Revenue Code, the taxable income of such corporation determined in accordance with Section 1363(b) of the Internal Revenue Code, except that taxable income shall take into account those items which are required by Section 1363(b)(1) of the Internal Revenue Code to be separately stated; and (ii) a Subchapter S corporation for which there is in effect a federal election to opt out of the provisions of the Subchapter S Revision Act of 1982 and have applied instead the prior federal Subchapter S rules as in effect on July 1, 1982, the taxable income of such corporation determined in accordance with the federal Subchapter S rules as in effect on July 1, 1982; and (H) Partnerships. In the case of a partnership, taxable income determined in accordance with Section 703 of the Internal Revenue Code, except that taxable income shall take into account those items which are required by Section 703(a)(1) to be separately stated but which would be taken into account by an individual in calculating his taxable income. (f) Valuation limitation amount.
[May 1, 2002] 22 (1) In general. The valuation limitation amount referred to in subsections (a) (2) (G), (c) (2) (I) and (d)(2) (E) is an amount equal to: (A) The sum of the pre-August 1, 1969 appreciation amounts (to the extent consisting of gain reportable under the provisions of Section 1245 or 1250 of the Internal Revenue Code) for all property in respect of which such gain was reported for the taxable year; plus (B) The lesser of (i) the sum of the pre-August 1, 1969 appreciation amounts (to the extent consisting of capital gain) for all property in respect of which such gain was reported for federal income tax purposes for the taxable year, or (ii) the net capital gain for the taxable year, reduced in either case by any amount of such gain included in the amount determined under subsection (a) (2) (F) or (c) (2) (H). (2) Pre-August 1, 1969 appreciation amount. (A) If the fair market value of property referred to in paragraph (1) was readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is the lesser of (i) the excess of such fair market value over the taxpayer's basis (for determining gain) for such property on that date (determined under the Internal Revenue Code as in effect on that date), or (ii) the total gain realized and reportable for federal income tax purposes in respect of the sale, exchange or other disposition of such property. (B) If the fair market value of property referred to in paragraph (1) was not readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is that amount which bears the same ratio to the total gain reported in respect of the property for federal income tax purposes for the taxable year, as the number of full calendar months in that part of the taxpayer's holding period for the property ending July 31, 1969 bears to the number of full calendar months in the taxpayer's entire holding period for the property. (C) The Department shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph. (g) Double deductions. Unless specifically provided otherwise, nothing in this Section shall permit the same item to be deducted more than once. (h) Legislative intention. Except as expressly provided by this Section there shall be no modifications or limitations on the amounts of income, gain, loss or deduction taken into account in determining gross income, adjusted gross income or taxable income for federal income tax purposes for the taxable year, or in the amount of such items entering into the computation of base income and net income under this Act for such taxable year, whether in respect of property values as of August 1, 1969 or otherwise. (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676, eff. 12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01; 92-16, eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff. 8-17-01; revised 9-21-01.)". Pursuant to the Motion submitted previously, Representative Black moved to table Amendment No. 1. And on that motion, a vote was taken resulting as follows: 54, Yeas; 59, Nays; 0, Answering Present. (ROLL CALL 3) The motion lost. Representative Currie then moved the adoption of Amendment No. 1. And on that motion, a vote was taken resulting as follows: 63, Yeas; 37, Nays; 13, Answering Present. (ROLL CALL 4)
23 [May 1, 2002] Representative Black moved table Amendment No. 1. And on that motion, a vote was taken resulting as follows: 54, Yeas; 59, Nays; 0, Answering Present. (ROLL CALL 3) The motion lost. Representative Currie again moved the adoption of Amendment No. 1. The motion prevailed and the amendment was adopted and ordered printed. There being no further amendments, the foregoing Amendment No. 1 was adopted and the bill, as amended, was advanced to the order of Third Reading. SENATE BILLS ON THIRD READING The following bill and any amendments adopted thereto was printed and laid upon the Members' desks. Any amendments pending were tabled pursuant to Rule 40(a). On motion of Representative Currie, SENATE BILL 1543 was taken up and read by title a third time. And the question being, "Shall this bill pass?" it was decided in the affirmative by the following vote: 66, Yeas; 32, Nays; 15, Answering Present. (ROLL CALL 5) This bill, as amended, having received the votes of a constitutional majority of the Members elected, was declared passed. Ordered that the Clerk inform the Senate and ask their concurrence in the House amendment/s adopted. SENATE BILLS ON SECOND READING Having been printed, the following bill was taken up, read by title a second time and advanced to the order of Third Reading: SENATE BILL 1859. SENATE BILL 2081. Having been printed, was taken up and read by title a second time. The following amendments were offered in the Committee on Energy & Environment, adopted and printed: AMENDMENT NO. 1 TO SENATE BILL 2081 AMENDMENT NO. 1. Amend Senate Bill 2081 on page 1, line 4, by changing "by" to "by changing Section 16-102 and"; and on page 1 by inserting immediately below line 5 the following: "(220 ILCS 5/16-102) Sec. 16-102. Definitions. For the purposes of this Article the following terms shall be defined as set forth in this Section. "Alternative retail electric supplier" means every person, cooperative, corporation, municipal corporation, company, association, joint stock company or association, firm, partnership, individual, or other entity, their lessees, trustees, or receivers appointed by any court whatsoever, that offers electric power or energy for sale, lease or in exchange for other value received to one or more retail customers, or that engages in the delivery or furnishing of electric power or energy to such retail customers, and shall include, without limitation, resellers, aggregators and power marketers, but shall not include (i) electric utilities (or any agent of the electric utility to the extent the electric utility provides tariffed services to retail customers through that agent), (ii) any electric cooperative or
[May 1, 2002] 24 municipal system as defined in Section 17-100 to the extent that the electric cooperative or municipal system is serving retail customers within any area in which it is or would be entitled to provide service under the law in effect immediately prior to the effective date of this amendatory Act of 1997, (iii) a public utility that is owned and operated by any public institution of higher education of this State, or a public utility that is owned by such public institution of higher education and operated by any of its lessees or operating agents, within any area in which it is or would be entitled to provide service under the law in effect immediately prior to the effective date of this amendatory Act of 1997, (iv) a retail customer to the extent that customer obtains its electric power and energy from that customer's own cogeneration or self-generation facilities, (v) an entity that owns, operates, sells, or arranges for the installation of a customer's own cogeneration or self-generation facilities, but only to the extent the entity is engaged in owning, selling or arranging for the installation of such facility, or operating the facility on behalf of such customer, provided however that any such third party owner or operator of a facility built after January 1, 1999, complies with the labor provisions of Section 16-128(a) as though such third party were an alternative retail electric supplier, or (vi) an industrial or manufacturing customer that owns its own distribution facilities, to the extent that the customer provides service from that distribution system to a third-party contractor located on the customer's premises that is integrally and predominantly engaged in the customer's industrial or manufacturing process; provided, that if the industrial or manufacturing customer has elected delivery services, the customer shall pay transition charges applicable to the electric power and energy consumed by the third-party contractor unless such charges are otherwise paid by the third party contractor, which shall be calculated based on the usage of, and the base rates or the contract rates applicable to, the third-party contractor in accordance with Section 16-102. "Base rates" means the rates for those tariffed services that the electric utility is required to offer pursuant to subsection (a) of Section 16-103 and that were identified in a rate order for collection of the electric utility's base rate revenue requirement, excluding (i) separate automatic rate adjustment riders then in effect, (ii) special or negotiated contract rates, (iii) delivery services tariffs filed pursuant to Section 16-108, (iv) real-time pricing, or (v) tariffs that were in effect prior to October 1, 1996 and that based charges for services on an index or average of other utilities' charges, but including (vi) any subsequent redesign of such rates for tariffed services that is authorized by the Commission after notice and hearing. "Competitive service" includes (i) any service that has been declared to be competitive pursuant to Section 16-113 of this Act, (ii) contract service, and (iii) services, other than tariffed services, that are related to, but not necessary for, the provision of electric power and energy or delivery services. "Contract service" means (1) services, including the provision of electric power and energy or other services, that are provided by mutual agreement between an electric utility and a retail customer that is located in the electric utility's service area, provided that, delivery services shall not be a contract service until such services are declared competitive pursuant to Section 16-113; and also means (2) the provision of electric power and energy by an electric utility to retail customers outside the electric utility's service area pursuant to Section 16-116. Provided, however, contract service does not include electric utility services provided pursuant to (i) contracts that retail customers are required to execute as a condition of receiving tariffed services, or (ii) special or negotiated rate contracts for electric utility services that were entered into between an electric utility and a retail customer prior to the effective date of this amendatory Act of 1997 and filed with the Commission. "Delivery services" means those services provided by the electric utility that are necessary in order for the transmission and
25 [May 1, 2002] distribution systems to function so that retail customers located in the electric utility's service area can receive electric power and energy from suppliers other than the electric utility, and shall include, without limitation, standard metering and billing services. "Electric utility" means a public utility, as defined in Section 3-105 of this Act, that has a franchise, license, permit or right to furnish or sell electricity to retail customers within a service area. "Mandatory transition period" means the period from the effective date of this amendatory Act of 1997 through January 1, 2007 2005. "Municipal system" shall have the meaning set forth in Section 17-100. "Real-time pricing" means charges for delivered electric power and energy that vary on an hour-to-hour basis for nonresidential retail customers and that vary on a periodic basis during the day for residential retail customers. "Retail customer" means a single entity using electric power or energy at a single premises and that (A) either (i) is receiving or is eligible to receive tariffed services from an electric utility, or (ii) that is served by a municipal system or electric cooperative within any area in which the municipal system or electric cooperative is or would be entitled to provide service under the law in effect immediately prior to the effective date of this amendatory Act of 1997, or (B) an entity which on the effective date of this Act was receiving electric service from a public utility and (i) was engaged in the practice of resale and redistribution of such electricity within a building prior to January 2, 1957, or (ii) was providing lighting services to tenants in a multi-occupancy building, but only to the extent such resale, redistribution or lighting service is authorized by the electric utility's tariffs that were on file with the Commission on the effective date of this Act. "Service area" means (i) the geographic area within which an electric utility was lawfully entitled to provide electric power and energy to retail customers as of the effective date of this amendatory Act of 1997, and includes (ii) the location of any retail customer to which the electric utility was lawfully providing electric utility services on such effective date. "Small commercial retail customer" means those nonresidential retail customers of an electric utility consuming 15,000 kilowatt-hours or less of electricity annually in its service area. "Tariffed service" means services provided to retail customers by an electric utility as defined by its rates on file with the Commission pursuant to the provisions of Article IX of this Act, but shall not include competitive services. "Transition charge" means a charge expressed in cents per kilowatt-hour that is calculated for a customer or class of customers as follows for each year in which an electric utility is entitled to recover transition charges as provided in Section 16-108: (1) the amount of revenue that an electric utility would receive from the retail customer or customers if it were serving such customers' electric power and energy requirements as a tariffed service based on (A) all of the customers' actual usage during the 3 years ending 90 days prior to the date on which such customers were first eligible for delivery services pursuant to Section 16-104, and (B) on (i) the base rates in effect on October 1, 1996 (adjusted for the reductions required by subsection (b) of Section 16-111, for any reduction resulting from a rate decrease under Section 16-101(b), for any restatement of base rates made in conjunction with an elimination of the fuel adjustment clause pursuant to subsection (b), (d), or (f) of Section 9-220 and for any removal of decommissioning costs from base rates pursuant to Section 16-114) and any separate automatic rate adjustment riders (other than a decommissioning rate as defined in Section 16-114) under which the customers were receiving or, had they been customers, would have received electric power and energy from the electric utility during the year immediately preceding the date on which such customers were first eligible for delivery service
[May 1, 2002] 26 pursuant to Section 16-104, or (ii) to the extent applicable, any contract rates, including contracts or rates for consolidated or aggregated billing, under which such customers were receiving electric power and energy from the electric utility during such year; (2) less the amount of revenue, other than revenue from transition charges and decommissioning rates, that the electric utility would receive from such retail customers for delivery services provided by the electric utility, assuming such customers were taking delivery services for all of their usage, based on the delivery services tariffs in effect during the year for which the transition charge is being calculated and on the usage identified in paragraph (1); (3) less the market value for the electric power and energy that the electric utility would have used to supply all of such customers' electric power and energy requirements, as a tariffed service, based on the usage identified in paragraph (1), with such market value determined in accordance with Section 16-112 of this Act; (4) less the following amount which represents the amount to be attributed to new revenue sources and cost reductions by the electric utility through the end of the period for which transition costs are recovered pursuant to Section 16-108, referred to in this Article XVI as a "mitigation factor": (A) for nonresidential retail customers, an amount equal to the greater of (i) 0.5 cents per kilowatt-hour during the period October 1, 1999 through December 31, 2004, 0.6 cents per kilowatt-hour in calendar year 2005, and 0.9 cents per kilowatt-hour in calendar year 2006, multiplied in each year by the usage identified in paragraph (1), or (ii) an amount equal to the following percentages of the amount produced by applying the applicable base rates (adjusted as described in subparagraph (1)(B)) or contract rate to the usage identified in paragraph (1): 8% for the period October 1, 1999 through December 31, 2002, 10% in calendar years 2003 and 2004, 11% in calendar year 2005 and 12% in calendar year 2006; and (B) for residential retail customers, an amount equal to the following percentages of the amount produced by applying the base rates in effect on October 1, 1996 (adjusted as described in subparagraph (1)(B)) to the usage identified in paragraph (1): (i) 6% from May 1, 2002 through December 31, 2002, (ii) 7% in calendar years 2003 and 2004, (iii) 8% in calendar year 2005, and (iv) 10% in calendar year 2006; (5) divided by the usage of such customers identified in paragraph (1), provided that the transition charge shall never be less than zero. "Unbundled service" means a component or constituent part of a tariffed service which the electric utility subsequently offers separately to its customers. (Source: P.A. 90-561, eff. 12-16-97; 91-50, eff. 6-30-99.)". AMENDMENT NO. 2 TO SENATE BILL 2081 AMENDMENT NO. 2. Amend Senate Bill 2081, AS AMENDED, in the introductory clause to Section 5 of the bill by changing "Section 16-102" to "Sections 16-102 and 16-111"; and in the body of Section 5 of the bill by inserting immediately below the last line of Sec. 16-102 the following: "(220 ILCS 5/16-111) Sec. 16-111. Rates and restructuring transactions during mandatory transition period. (a) During the mandatory transition period, notwithstanding any provision of Article IX of this Act, and except as provided in subsections (b), (d), (e), and (f) of this Section, the Commission shall not (i) initiate, authorize or order any change by way of increase (other than in connection with a request for rate increase
27 [May 1, 2002] which was filed after September 1, 1997 but prior to October 15, 1997, by an electric utility serving less than 12,500 customers in this State), (ii) initiate or, unless requested by the electric utility, authorize or order any change by way of decrease, restructuring or unbundling (except as provided in Section 16-109A), in the rates of any electric utility that were in effect on October 1, 1996, or (iii) in any order approving any application for a merger pursuant to Section 7-204 that was pending as of May 16, 1997, impose any condition requiring any filing for an increase, decrease, or change in, or other review of, an electric utility's rates or enforce any such condition of any such order; provided, however, that this subsection shall not prohibit the Commission from: (1) approving the application of an electric utility to implement an alternative to rate of return regulation or a regulatory mechanism that rewards or penalizes the electric utility through adjustment of rates based on utility performance, pursuant to Section 9-244; (2) authorizing an electric utility to eliminate its fuel adjustment clause and adjust its base rate tariffs in accordance with subsection (b), (d), or (f) of Section 9-220 of this Act, to fix its fuel adjustment factor in accordance with subsection (c) of Section 9-220 of this Act, or to eliminate its fuel adjustment clause in accordance with subsection (e) of Section 9-220 of this Act; (3) ordering into effect tariffs for delivery services and transition charges in accordance with Sections 16-104 and 16-108, for real-time pricing in accordance with Section 16-107, or the options required by Section 16-110 and subsection (n) of 16-112, allowing a billing experiment in accordance with Section 16-106, or modifying delivery services tariffs in accordance with Section 16-109; or (4) ordering or allowing into effect any tariff to recover charges pursuant to Sections 9-201.5, 9-220.1, 9-221, 9-222 (except as provided in Section 9-222.1), 16-108, and 16-114 of this Act, Section 5-5 of the Electricity Infrastructure Maintenance Fee Law, Section 6-5 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997, and Section 13 of the Energy Assistance Act of 1989. After December 31, 2004, the provisions of this subsection (a) shall not apply to an electric utility whose average residential retail rate was less than or equal to 90% of the average residential retail rate for the "Midwest Utilities", as that term is defined in subsection (b) of this Section, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1995, and which served between 150,000 and 250,000 retail customers in this State on January 1, 1995. (b) Notwithstanding the provisions of subsection (a), each Illinois electric utility serving more than 12,500 customers in Illinois shall file tariffs (i) reducing, effective August 1, 1998, each component of its base rates to residential retail customers by 15% from the base rates in effect immediately prior to January 1, 1998 and (ii) if the public utility provides electric service to (A) more than 500,000 customers but less than 1,000,000 customers in this State on January 1, 1999, reducing, effective May 1, 2002, each component of its base rates to residential retail customers by an additional 5% from the base rates in effect immediately prior to January 1, 1998, or (B) at least 1,000,000 customers in this State on January 1, 1999, reducing, effective October 1, 2001, each component of its base rates to residential retail customers by an additional 5% from the base rates in effect immediately prior to January 1, 1998. Provided, however, that (A) if an electric utility's average residential retail rate is less than or equal to the average residential retail rate for a group of Midwest Utilities (consisting of all investor-owned electric utilities with annual system peaks in excess of 1000 megawatts in the States of Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Ohio, and Wisconsin), based on data reported on Form 1 to the Federal Energy
[May 1, 2002] 28 Regulatory Commission for calendar year 1995, then it shall only be required to file tariffs (i) reducing, effective August 1, 1998, each component of its base rates to residential retail customers by 5% from the base rates in effect immediately prior to January 1, 1998, (ii) reducing, effective October 1, 2000, each component of its base rates to residential retail customers by the lesser of 5% of the base rates in effect immediately prior to January 1, 1998 or the percentage by which the electric utility's average residential retail rate exceeds the average residential retail rate of the Midwest Utilities, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1999, and (iii) reducing, effective October 1, 2002, each component of its base rates to residential retail customers by an additional amount equal to the lesser of 5% of the base rates in effect immediately prior to January 1, 1998 or the percentage by which the electric utility's average residential retail rate exceeds the average residential retail rate of the Midwest Utilities, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 2001; and (B) if the average residential retail rate of an electric utility serving between 150,000 and 250,000 retail customers in this State on January 1, 1995 is less than or equal to 90% of the average residential retail rate for the Midwest Utilities, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1995, then it shall only be required to file tariffs (i) reducing, effective August 1, 1998, each component of its base rates to residential retail customers by 2% from the base rates in effect immediately prior to January 1, 1998; (ii) reducing, effective October 1, 2000, each component of its base rates to residential retail customers by 2% from the base rate in effect immediately prior to January 1, 1998; and (iii) reducing, effective October 1, 2002, each component of its base rates to residential retail customers by 1% from the base rates in effect immediately prior to January 1, 1998. Provided, further, that any electric utility for which a decrease in base rates has been or is placed into effect between October 1, 1996 and the dates specified in the preceding sentences of this subsection, other than pursuant to the requirements of this subsection, shall be entitled to reduce the amount of any reduction or reductions in its base rates required by this subsection by the amount of such other decrease. The tariffs required under this subsection shall be filed 45 days in advance of the effective date. Notwithstanding anything to the contrary in Section 9-220 of this Act, no restatement of base rates in conjunction with the elimination of a fuel adjustment clause under that Section shall result in a lesser decrease in base rates than customers would otherwise receive under this subsection had the electric utility's fuel adjustment clause not been eliminated. (c) Any utility reducing its base rates by 15% on August 1, 1998 pursuant to subsection (b) shall include the following statement on its bills for residential customers from August 1 through December 31, 1998: "Effective August 1, 1998, your rates have been reduced by 15% by the Electric Service Customer Choice and Rate Relief Law of 1997 passed by the Illinois General Assembly.". Any utility reducing its base rates by 5% on August 1, 1998, pursuant to subsection (b) shall include the following statement on its bills for residential customers from August 1 through December 31, 1998: "Effective August 1, 1998, your rates have been reduced by 5% by the Electric Service Customer Choice and Rate Relief Law of 1997 passed by the Illinois General Assembly.". Any utility reducing its base rates by 2% on August 1, 1998 pursuant to subsection (b) shall include the following statement on its bills for residential customers from August 1 through December 31, 1998: "Effective August 1, 1998, your rates have been reduced by 2% by the Electric Service Customer Choice and Rate Relief Law of 1997 passed by the Illinois General Assembly.". (d) During the mandatory transition period, but not before January 1, 2000, and notwithstanding the provisions of subsection (a), an electric utility may request an increase in its base rates if the electric utility demonstrates that the 2-year average of its earned rate of return on common equity, calculated as its net income
29 [May 1, 2002] applicable to common stock divided by the average of its beginning and ending balances of common equity using data reported in the electric utility's Form 1 report to the Federal Energy Regulatory Commission but adjusted to remove the effects of accelerated depreciation or amortization or other transition or mitigation measures implemented by the electric utility pursuant to subsection (g) of this Section and the effect of any refund paid pursuant to subsection (e) of this Section, is below the 2-year average for the same 2 years of the monthly average yields of 30-year U.S. Treasury bonds published by the Board of Governors of the Federal Reserve System in its weekly H.15 Statistical Release or successor publication. The Commission shall review the electric utility's request, and may review the justness and reasonableness of all rates for tariffed services, in accordance with the provisions of Article IX of this Act, provided that the Commission shall consider any special or negotiated adjustments to the revenue requirement agreed to between the electric utility and the other parties to the proceeding. In setting rates under this Section, the Commission shall exclude the costs and revenues that are associated with competitive services and any billing or pricing experiments conducted under Section 16-106. (e) For the purposes of this subsection (e) all calculations and comparisons shall be performed for the Illinois operations of multijurisdictional utilities. During the mandatory transition period, notwithstanding the provisions of subsection (a), if the 2-year average of an electric utility's earned rate of return on common equity, calculated as its net income applicable to common stock divided by the average of its beginning and ending balances of common equity using data reported in the electric utility's Form 1 report to the Federal Energy Regulatory Commission but adjusted to remove the effect of any refund paid under this subsection (e), and further adjusted to include the annual amortization of any difference between the consideration received by an affiliated interest of the electric utility in the sale of an asset which had been sold or transferred by the electric utility to the affiliated interest subsequent to the effective date of this amendatory Act of 1997 and the consideration for which such asset had been sold or transferred to the affiliated interest, with such difference to be amortized ratably from the date of the sale by the affiliated interest to December 31, 2006, exceeds the 2-year average of the Index for the same 2 years by 1.5 or more percentage points, the electric utility shall make refunds to customers beginning the first billing day of April in the following year in the manner described in paragraph (3) of this subsection. For purposes of this subsection (e), the "Index" shall be the sum of (A) the average for the 12 months ended September 30 of the monthly average yields of 30-year U.S. Treasury bonds published by the Board of Governors of the Federal Reserve System in its weekly H.15 Statistical Release or successor publication for each year 1998 through 2004, and (B) (i) 4.00 percentage points for each of the 12-month periods ending September 30, 1998 through September 30, 1999 or 8.00 percentage points if the electric utility's average residential retail rate is less than or equal to 90% of the average residential retail rate for the "Midwest Utilities", as that term is defined in subsection (b) of this Section, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1995, and the electric utility served between 150,000 and 250,000 retail customers on January 1, 1995, (ii) 7.00 percentage points for each of the 12-month periods ending September 30, 2000 through September 30, 2004 if the electric utility was providing service to at least 1,000,000 customers in this State on January 1, 1999, or 9.00 percentage points if the electric utility's average residential retail rate is less than or equal to 90% of the average residential retail rate for the "Midwest Utilities", as that term is defined in subsection (b) of this Section, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1995 and the electric utility served between 150,000 and 250,000 retail customers in this State on January 1, 1995, (iii) 11.00 percentage points for each of the 12-month periods ending September 30, 2000
[May 1, 2002] 30 through September 30, 2004, but only if the electric utility's average residential retail rate is less than or equal to 90% of the average residential retail rate for the "Midwest Utilities", as that term is defined in subsection (b) of this Section, based on data reported on Form 1 to the Federal Energy Regulatory Commission for calendar year 1995, the electric utility served between 150,000 and 250,000 retail customers in this State on January 1, 1995, and the electric utility offers delivery services on or before June 1, 2000 to retail customers whose annual electric energy use comprises 33% of the kilowatt hour sales to that group of retail customers that are classified under Division D, Groups 20 through 39 of the Standard Industrial Classifications set forth in the Standard Industrial Classification Manual published by the United States Office of Management and Budget, excluding the kilowatt hour sales to those customers that are eligible for delivery services pursuant to Section 16-104(a)(1)(i), and offers delivery services to its remaining retail customers classified under Division D, Groups 20 through 39 on or before October 1, 2000, and, provided further, that the electric utility commits not to petition pursuant to Section 16-108(f) for entry of an order by the Commission authorizing the electric utility to implement transition charges for an additional period after December 31, 2006, or (iv) 5.00 percentage points for each of the 12-month periods ending September 30, 2000 through September 30, 2004 for all other electric utilities or 7.00 percentage points for such utilities for each of the 12-month periods ending September 30, 2000 through September 30, 2004 for any such utility that commits not to petition pursuant to Section 16-108(f) for entry of an order by the Commission authorizing the electric utility to implement transition charges for an additional period after December 31, 2006. (1) For purposes of this subsection (e), "excess earnings" means the difference between (A) the 2-year average of the electric utility's earned rate of return on common equity, less (B) the 2-year average of the sum of (i) the Index applicable to each of the 2 years and (ii) 1.5 percentage points; provided, that "excess earnings" shall never be less than zero. (2) On or before March 31 of each year 2000 through 2005 each electric utility shall file a report with the Commission showing its earned rate of return on common equity, calculated in accordance with this subsection, for the preceding calendar year and the average for the preceding 2 calendar years. (3) If an electric utility has excess earnings, determined in accordance with paragraphs (1) and (2) of this subsection, the refunds which the electric utility shall pay to its customers beginning the first billing day of April in the following year shall be calculated and applied as follows: (i) The electric utility's excess earnings shall be multiplied by the average of the beginning and ending balances of the electric utility's common equity for the 2-year period in which excess earnings occurred. (ii) The result of the calculation in (i) shall be multiplied by 0.50 and then divided by a number equal to 1 minus the electric utility's composite federal and State income tax rate. (iii) The result of the calculation in (ii) shall be divided by the sum of the electric utility's projected total kilowatt-hour sales to retail customers plus projected kilowatt-hours to be delivered to delivery services customers over a one year period beginning with the first billing date in April in the succeeding year to determine a cents per kilowatt-hour refund factor. (iv) The cents per kilowatt-hour refund factor calculated in (iii) shall be credited to the electric utility's customers by applying the factor on the customer's monthly bills to each kilowatt-hour sold or delivered until the total amount calculated in (ii) has been paid to customers.
31 [May 1, 2002] (f) During the mandatory transition period, an electric utility may file revised tariffs reducing the price of any tariffed service offered by the electric utility for all customers taking that tariffed service, which shall be effective 7 days after filing. (g) During the mandatory transition period, an electric utility may, without obtaining any approval of the Commission other than that provided for in this subsection and notwithstanding any other provision of this Act or any rule or regulation of the Commission that would require such approval: (1) implement a reorganization, other than a merger of 2 or more public utilities as defined in Section 3-105 or their holding companies; (2) retire generating plants from service; (3) sell, assign, lease or otherwise transfer assets to an affiliated or unaffiliated entity and as part of such transaction enter into service agreements, power purchase agreements, or other agreements with the transferee; provided, however, that the prices, terms and conditions of any power purchase agreement must be approved or allowed into effect by the Federal Energy Regulatory Commission; or (4) use any accelerated cost recovery method including accelerated depreciation, accelerated amortization or other capital recovery methods, or record reductions to the original cost of its assets. In order to implement a reorganization, retire generating plants from service, or sell, assign, lease or otherwise transfer assets pursuant to this Section, the electric utility shall comply with subsections (c) and (d) of Section 16-128, if applicable, and subsection (k) of this Section, if applicable, and provide the Commission with at least 30 days notice of the proposed reorganization or transaction, which notice shall include the following information: (i) a complete statement of the entries that the electric utility will make on its books and records of account to implement the proposed reorganization or transaction together with a certification from an independent certified public accountant that such entries are in accord with generally accepted accounting principles and, if the Commission has previously approved guidelines for cost allocations between the utility and its affiliates, a certification from the chief accounting officer of the utility that such entries are in accord with those cost allocation guidelines; (ii) a description of how the electric utility will use proceeds of any sale, assignment, lease or transfer to retire debt or otherwise reduce or recover the costs of services provided by such electric utility; (iii) a list of all federal approvals or approvals required from departments and agencies of this State, other than the Commission, that the electric utility has or will obtain before implementing the reorganization or transaction; (iv) an irrevocable commitment by the electric utility that it will not, as a result of the transaction, impose any stranded cost charges that it might otherwise be allowed to charge retail customers under federal law or increase the transition charges that it is otherwise entitled to collect under this Article XVI; and (v) if the electric utility proposes to sell, assign, lease or otherwise transfer a generating plant that brings the amount of net dependable generating capacity transferred pursuant to this subsection to an amount equal to or greater than 15% of the electric utility's net dependable capacity as of the effective date of this amendatory Act of 1997, and enters into a power purchase agreement with the entity to which such generating plant is sold, assigned, leased, or otherwise transferred, the electric utility also agrees, if its fuel adjustment clause has not already been eliminated, to
[May 1, 2002] 32 eliminate its fuel adjustment clause in accordance with subsection (b) of Section 9-220 for a period of time equal to the length of any such power purchase agreement or successor agreement, or until January 1, 2005, whichever is longer; if the capacity of the generating plant so transferred and related power purchase agreement does not result in the elimination of the fuel adjustment clause under this subsection, and the fuel adjustment clause has not already been eliminated, the electric utility shall agree that the costs associated with the transferred plant that are included in the calculation of the rate per kilowatt-hour to be applied pursuant to the electric utility's fuel adjustment clause during such period shall not exceed the per kilowatt-hour cost associated with such generating plant included in the electric utility's fuel adjustment clause during the full calendar year preceding the transfer, with such limit to be adjusted each year thereafter by the Gross Domestic Product Implicit Price Deflator. (vi) In addition, if the electric utility proposes to sell, assign, or lease, (A) either (1) an amount of generating plant that brings the amount of net dependable generating capacity transferred pursuant to this subsection to an amount equal to or greater than 15% of its net dependable capacity on the effective date of this amendatory Act of 1997, or (2) one or more generating plants with a total net dependable capacity of 1100 megawatts, or (B) transmission and distribution facilities that either (1) bring the amount of transmission and distribution facilities transferred pursuant to this subsection to an amount equal to or greater than 15% of the electric utility's total depreciated original cost investment in such facilities, or (2) represent an investment of $25,000,000 in terms of total depreciated original cost, the electric utility shall provide, in addition to the information listed in subparagraphs (i) through (v), the following information: (A) a description of how the electric utility will meet its service obligations under this Act in a safe and reliable manner and (B) the electric utility's projected earned rate of return on common equity, calculated in accordance with subsection (d) of this Section, for each year from the date of the notice through December 31, 2004 both with and without the proposed transaction. If the Commission has not issued an order initiating a hearing on the proposed transaction within 30 days after the date the electric utility's notice is filed, the transaction shall be deemed approved. The Commission may, after notice and hearing, prohibit the proposed transaction if it makes either or both of the following findings: (1) that the proposed transaction will render the electric utility unable to provide its tariffed services in a safe and reliable manner, or (2) that there is a strong likelihood that consummation of the proposed transaction will result in the electric utility being entitled to request an increase in its base rates during the mandatory transition period pursuant to subsection (d) of this Section. Any hearing initiated by the Commission into the proposed transaction shall be completed, and the Commission's final order approving or prohibiting the proposed transaction shall be entered, within 90 days after the date the electric utility's notice was filed. Provided, however, that a sale, assignment, or lease of transmission facilities to an independent system operator that meets the requirements of Section 16-126 shall not be subject to Commission approval under this Section. In any proceeding conducted by the Commission pursuant to this subparagraph (vi), intervention shall be limited to parties with a direct interest in the transaction which is the subject of the hearing and any statutory consumer protection
33 [May 1, 2002] agency as defined in subsection (d) of Section 9-102.1. Notwithstanding the provisions of Section 10-113 of this Act, any application seeking rehearing of an order issued under this subparagraph (vi), whether filed by the electric utility or by an intervening party, shall be filed within 10 days after service of the order. The Commission shall not in any subsequent proceeding or otherwise, review such a reorganization or other transaction authorized by this Section, but shall retain the authority to allocate costs as stated in Section 16-111(i). An entity to which an electric utility sells, assigns, leases or transfers assets pursuant to this subsection (g) shall not, as a result of the transactions specified in this subsection (g), be deemed a public utility as defined in Section 3-105. Nothing in this subsection (g) shall change any requirement under the jurisdiction of the Illinois Department of Nuclear Safety including, but not limited to, the payment of fees. Nothing in this subsection (g) shall exempt a utility from obtaining a certificate pursuant to Section 8-406 of this Act for the construction of a new electric generating facility. Nothing in this subsection (g) is intended to exempt the transactions hereunder from the operation of the federal or State antitrust laws. Nothing in this subsection (g) shall require an electric utility to use the procedures specified in this subsection for any of the transactions specified herein. Any other procedure available under this Act may, at the electric utility's election, be used for any such transaction. (h) During the mandatory transition period, the Commission shall not establish or use any rates of depreciation, which for purposes of this subsection shall include amortization, for any electric utility other than those established pursuant to subsection (c) of Section 5-104 of this Act or utilized pursuant to subsection (g) of this Section. Provided, however, that in any proceeding to review an electric utility's rates for tariffed services pursuant to Section 9-201, 9-202, 9-250 or 16-111(d) of this Act, the Commission may establish new rates of depreciation for the electric utility in the same manner provided in subsection (d) of Section 5-104 of this Act. An electric utility implementing an accelerated cost recovery method including accelerated depreciation, accelerated amortization or other capital recovery methods, or recording reductions to the original cost of its assets, pursuant to subsection (g) of this Section, shall file a statement with the Commission describing the accelerated cost recovery method to be implemented or the reduction in the original cost of its assets to be recorded. Upon the filing of such statement, the accelerated cost recovery method or the reduction in the original cost of assets shall be deemed to be approved by the Commission as though an order had been entered by the Commission. (i) Subsequent to the mandatory transition period, the Commission, in any proceeding to establish rates and charges for tariffed services offered by an electric utility, shall consider only (1) the then current or projected revenues, costs, investments and cost of capital directly or indirectly associated with the provision of such tariffed services; (2) collection of transition charges in accordance with Sections 16-102 and 16-108 of this Act; (3) recovery of any employee transition costs as described in Section 16-128 which the electric utility is continuing to incur, including recovery of any unamortized portion of such costs previously incurred or committed, with such costs to be equitably allocated among bundled services, delivery services, and contracts with alternative retail electric suppliers; and (4) recovery of the costs associated with the electric utility's compliance with decommissioning funding requirements; and shall not consider any other revenues, costs, investments or cost of capital of either the electric utility or of any affiliate of the electric utility that are not associated with the provision of tariffed services. In setting rates for tariffed services, the Commission shall equitably allocate joint and common costs and investments between the electric utility's competitive and tariffed services. In determining the justness and reasonableness of the electric power and energy component of an
[May 1, 2002] 34 electric utility's rates for tariffed services subsequent to the mandatory transition period and prior to the time that the provision of such electric power and energy is declared competitive, the Commission shall consider the extent to which the electric utility's tariffed rates for such component for each customer class exceed the market value determined pursuant to Section 16-112, and, if the electric power and energy component of such tariffed rate exceeds the market value by more than 10% for any customer class, may establish such electric power and energy component at a rate equal to the market value plus 10%. In any such case, the Commission may also elect to extend the provisions of Section 16-111(e) for any period in which the electric utility is collecting transition charges, using information applicable to such period. (j) During the mandatory transition period, an electric utility may elect to transfer to a non-operating income account under the Commission's Uniform System of Accounts either or both of (i) an amount of unamortized investment tax credit that is in addition to the ratable amount which is credited to the electric utility's operating income account for the year in accordance with Section 46(f)(2) of the federal Internal Revenue Code of 1986, as in effect prior to P.L. 101-508, or (ii) "excess tax reserves", as that term is defined in Section 203(e)(2)(A) of the federal Tax Reform Act of 1986, provided that (A) the amount transferred may not exceed the amount of the electric utility's assets that were created pursuant to Statement of Financial Accounting Standards No. 71 which the electric utility has written off during the mandatory transition period, and (B) the transfer shall not be effective until approved by the Internal Revenue Service. An electric utility electing to make such a transfer shall file a statement with the Commission stating the amount and timing of the transfer for which it intends to request approval of the Internal Revenue Service, along with a copy of its proposed request to the Internal Revenue Service for a ruling. The Commission shall issue an order within 14 days after the electric utility's filing approving, subject to receipt of approval from the Internal Revenue Service, the proposed transfer. (k) If an electric utility is selling or transferring to a single buyer 5 or more generating plants located in this State with a total net dependable capacity of 5000 megawatts or more pursuant to subsection (g) of this Section and has obtained a sale price or consideration that exceeds 200% of the book value of such plants, the electric utility must provide to the Governor, the President of the Illinois Senate, the Minority Leader of the Illinois Senate, the Speaker of the Illinois House of Representatives, and the Minority Leader of the Illinois House of Representatives no later than 15 days after filing its notice under subsection (g) of this Section or 5 days after the date on which this subsection (k) becomes law, whichever is later, a written commitment in which such electric utility agrees to expend $2 billion outside the corporate limits of any municipality with 1,000,000 or more inhabitants within such electric utility's service area, over a 6-year period beginning with the calendar year in which the notice is filed, on projects, programs, and improvements within its service area relating to transmission and distribution including, without limitation, infrastructure expansion, repair and replacement, capital investments, operations and maintenance, and vegetation management. (Source: P.A. 90-561, eff. 12-16-97; 90-563, eff. 12-16-97; 91-50, eff. 6-30-99.)". Floor Amendments numbered 3 and 4 remained in the Committee on Rules. There being no further amendments, the foregoing Amendments numbered 1 and 2 were adopted and the bill, as amended, was held on the order of Second Reading.
35 [May 1, 2002] RESOLUTIONS The following resolutions were offered and placed in the Committee on Rules. HOUSE RESOLUTION 850 Offered by Representative Wojcik: WHEREAS, Good health is essential to every citizen of the world and access to the highest standards of health information and services is necessary to improve public health; and WHEREAS, The World Health Organization (WHO) set forth in the first chapter of its charter the objective of attaining the highest possible level of health for all people; and WHEREAS, The achievements of the Republic of China (Taiwan) in the field of health are substantial, including one of the highest life expectancy levels in Asia, maternal and infant mortality rates comparable to those of western countries, the eradication of such infectious diseases as cholera, smallpox, and the plague, and the first to eradicate polio and provide children with hepatitis B vaccinations; and WHEREAS, The United States Centers for Disease Control and Prevention and its Taiwanese counterpart have enjoyed close collaboration on a wide range of public health issues; and WHEREAS, The Republic of China was a founding member of the WHO, but was forced to depart from the WHO in 1972, following the admission of the People's Republic of China; and WHEREAS, In recent years the Republic of China has expressed a willingness to assist financially and technically in international health activities supported by the WHO; and WHEREAS, Direct, unobstructed participation in international health forums and programs is critical to limit the spread of various infectious diseases and achieve world health; therefore, be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the World Health Organization to permit the Republic of China to participate in a meaningful and appropriate way in the World Health Organization's activities; and be it further RESOLVED, That a suitable copy of this resolution be forwarded to the World Health Organization and the Taipei Economic and Cultural Office in Chicago. HOUSE RESOLUTION 852 Offered by Representative Daniels: WHEREAS, The Community Integrated Living Arrangement ("CILA") is a small residential model that houses no more than eight individuals and offers supports designed to address the individual needs of persons with disabilities; and WHEREAS, CILA is the recommended option for individuals who are discharged from State-operated developmental centers; and WHEREAS, Today more than 7,400 Illinois residents with developmental disabilities live in CILAs; and WHEREAS, The United States Supreme Court in Olmstead v. L.C. Ex rel. Zimring, 119 S.Ct. 2176 (1999), held that the unjustifiable institutionalization of a person with a disability who is capable of living in the community with proper supports, and wishes to do so, constitutes unlawful discrimination in violation of the Americans with Disabilities Act (ADA); and WHEREAS, Availability of CILA placements for individuals with disabilities advances the State's efforts to comply with the ADA and the Court's holding in Olmstead; and WHEREAS, The Illinois Department of Human Services ("Department") has converted many of its grant-in-aid CILA programs to a fee-for-service model beginning in State Fiscal Year 2002; and WHEREAS, The CILA rate model and the CILA payment methodology
[May 1, 2002] 36 utilized by the Department affects the type and availability of CILA placements for Illinois residents with developmental disabilities; and WHEREAS, The CILA rate model and CILA payment methodology must be analyzed in the broader context of the current fiscal condition of the State; therefore, be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Secretary of Human Services is directed to: (1) Meet and work with agencies providing CILAs in the State of Illinois and associations representing those agencies to review the current CILA rate model and payment methodology, with particular attention paid to whether 100% of the actual costs of delivering CILA services are being met, including staff compensation, benefits, staffing levels, workers compensation, physical plant maintenance and repairs, and delivering services to individuals with challenging behaviors or extraordinary medical needs; (2) Determine the impact of the current CILA rate model and payment methodology on the ability of the State to implement the "most integrated setting" requirements of the ADA and the holding in Olmstead; and (3) File a written report with the House of Representatives and the Senate on or before December 1, 2002, that includes a summary of the actions taken pursuant to this Resolution and specific recommendations as to whether and how the CILA rate model and payment methodology should be updated; and be it further RESOLVED, That a copy of this Resolution be sent to the Secretary of Human Services. HOUSE RESOLUTION 854 Offered by Representative Flowers: WHEREAS, Blood banks across the State rely 100 percent on blood donated on a voluntary basis; and WHEREAS, Less than 60 percent of the general population is eligible to donate blood; and WHEREAS, Less than 5 percent of the general population actually donates blood; and WHEREAS, New FDA regulations, which restrict blood donations from anyone who has spent extended time in the United Kingdom and Western Europe, will go into effect in June 2002; and WHEREAS, Some major cities such as New York, which rely on one-third on Europe for a third of their blood, will turn to the rest of the country's bloodcenters for assistance; and WHEREAS, Many Americans, including military personnel who have spent extensive time abroad, will be ineligible to donate blood; therefore, be it RESOLVED, BY THE ILLINOIS HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that a special task force be convened by the Secretary of State to address the need to increase blood donations across the State; and be it further RESOLVED, Each of the following organizations shall select one person to serve on the task force: the Central Illinois Community Blood Center, Community Blood Services of Illinois, Heartland Blood Centers, LifeSource Blood Services, Northern Illinois Blood Bank, Inc., the American College of Surgeons, the American Red Cross of Illinois, the Illinois Hospital & Health Systems Association, and the Illinois State Medical Society; in addition, the Director of Public Health and the Mayor of the City of Chicago shall each select one person to serve on the task force, and the Secretary of State may select other interested parties to serve on the task force; and be it further RESOLVED, That the task force shall make recommendations for a statewide blood donation awareness campaign, preparing for blood shortages in a disaster, and overall plans for increasing donations; and be it further RESOLVED, That the task force submit its report to the House of Representatives before January 8, 2003; and be it further
37 [May 1, 2002] RESOLVED, That a suitable copy of this resolution be sent to the Secretary of State. HOUSE RESOLUTION 856 Offered by Representative Watson: WHEREAS, Illinois produces more ethanol than any state in the United States; and WHEREAS, Illinois produces around 40% of the United States' ethanol production; and WHEREAS, Illinois currently produces around 710 million gallons of ethanol annually from 275 million bushels of corn; and WHEREAS, At least one out of every six rows of corn grown in Illinois is used for ethanol production; and WHEREAS, Domestic, renewable and alternative fuels such as ethanol and biodiesel offer hope for America's future; and WHEREAS, Ethanol contains oxygen, and fuel blended with ethanol reduces harmful exhaust emissions from vehicles; and WHEREAS, Ethanol, when blended with gasoline, acts as an octane enhancer, reducing the need for such harmful substances as benzene and toluene in gasoline; and WHEREAS, Ethanol blended fuels extend current supplies of petroleum; and WHEREAS, The use of ethanol and other biofuels would help decrease our dependence on foreign oil; and WHEREAS, The continued growth of renewable energy will continue to be important in delivering larger supplies of clean, domestic power for America's growing economy; and WHEREAS, Illinois has enacted legislation to implement the phase-out of the alternative motor fuel additive methyl tertiary-butyl ether (MTBE) in this State; and WHEREAS, A recent agreement between oil companies, environmentalists, and agricultural interests may help increase the use of ethanol and other biofuels over the next decade; and WHEREAS, The Renewable Fuels Standard (RFS) would boost ethanol production from the 2001 level of 1.7 billion gallons to 5 billion gallons of renewable fuels by 2012; and WHEREAS, The agreement includes the phasing out of MTBE; and WHEREAS, This agreement has brought most major interested groups toward a consensus on the motor fuel composition issue, and there are substantial reasons to believe that federal law will soon reflect this agreement; therefore be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the State of Illinois needs to protect and expand the production and use of biofuels in the State; and be it further RESOLVED, That we urge the members of the United States Congress to support the Renewable Fuels Standard and the elimination of MTBE; and be it further RESOLVED, That suitable copies of this resolution be delivered to Senator Peter Fitzgerald, Senator Dick Durbin, and each member of the Illinois delegation in the United States House of Representatives. HOUSE JOINT RESOLUTION 73 Offered by Representative Daniels: WHEREAS, In Olmstead vs. L.C. ex rel. Zimring, 119 S. Ct. 2176 (1999), the Supreme Court affirmed that a state is obliged to provide community-based services and supports for individuals with disabilities who have been recommended for community placement by a state's treatment professional, choose to be served in the community, and would otherwise be served in a state institution; and WHEREAS, The implication of the Olmstead Decision is a fundamental alteration in the state's delivery system for persons with disabilities, requiring the expansion of services and supports at the community level to integrate more persons with disabilities in
[May 1, 2002] 38 community-based settings; and WHEREAS, In fulfilling the responsibilities under Olmstead, the State must coordinate the necessary financial resources to expand these community-based services, including identifying other financial resources outside of General Revenue Funds; and WHEREAS, In further fulfilling the responsibilities under Olmstead by addressing the interagency barriers to services and supports for all persons with disabilities, a cohesive and strategic direction must be established by the Governor and all State agencies that offer services and supports to persons with disabilities that maximizes the use of all sources of funding at the State, federal, and local levels; and WHEREAS, Federal funding opportunities play an integral role in providing states with additional financial resources to maintain and expand services and supports for persons with disabilities; and WHEREAS, The Home and Community Based Services (HCBS) Waiver, first authorized by Congress in 1981, continues to play a larger role in permitting innovation in the states due to the increasing flexibility of the Centers for Medicare and Medicaid Services (CMS) and an increasing nationwide effort to utilize currently unmatched state and local funds to draw down additional federal HCBS Waiver revenue; and WHEREAS, The Olmstead Decision has also stimulated increased utilization of the Waiver to finance community long term care supports; and WHEREAS, Illinois has the capacity to leverage unmatched State funds to capture more federal financial participation, thereby improving on its current ranking of 48th in federal waiver spending per capita; and WHEREAS, In FY00, Illinois captured an average of only $6.15 in federal funding per capita, and federal-state waiver spending represented only 13% of total spending; therefore, be it RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that we support the efforts of the State's developmental disabilities council, the Illinois Council on Developmental Disabilities, in its support of activities that lead to a re-design of the system of services and supports for all persons with developmental disabilities and urge the Council to conduct activities that address the following goals: (1) identify ways in which the State of Illinois can increase its ability to capture more federal financial participation (FFP), as well as maximize other financial resources to fund services and supports for persons with disabilities; (2) identify ways in which the State of Illinois can increase the flexibility in how that federal financial participation is utilized; and (3) identify ways in which the State of Illinois can direct more federal financial participation toward the expansion of community-based services and supports for persons with disabilities; and be it further RESOLVED, That a copy of this Resolution be forwarded to the chairperson of the Illinois Council on Developmental Disabilities. At the hour of 3:55 o'clock p.m., Representative Currie moved that the House do now adjourn. The motion prevailed. And in accordance therewith and pursuant to HOUSE JOINT RESOLUTION 74, the House stood adjourned until Thursday, May 2, 2002, at 11:00 o'clock a.m.
39 [May 1, 2002] NO. 1 STATE OF ILLINOIS NINETY-SECOND GENERAL ASSEMBLY HOUSE ROLL CALL QUORUM ROLL CALL FOR ATTENDANCE MAY 01, 2002 0 YEAS 0 NAYS 115 PRESENT P ACEVEDO P ERWIN P LAWFER P PARKE P BASSI P FEIGENHOLTZ P LEITCH P POE P BEAUBIEN P FLOWERS P LINDNER P REITZ P BELLOCK P FORBY P LYONS,EILEEN P RIGHTER P BERNS P FOWLER P LYONS,JOSEPH P RUTHERFORD P BIGGINS P FRANKS P MARQUARDT P RYAN P BLACK P FRITCHEY P MATHIAS P SAVIANO P BOLAND P GARRETT P MAUTINO P SCHMITZ P BOST P GILES P MAY P SCHOENBERG P BRADLEY P GRANBERG P McAULIFFE P SCULLY P BRADY P HAMOS P McCARTHY P SIMPSON P BROSNAHAN P HANNIG P McGUIRE P SLONE P BRUNSVOLD P HARTKE P McKEON P SMITH P BUGIELSKI P HASSERT P MENDOZA P SOMMER P BURKE P HOEFT P MEYER P SOTO P CAPPARELLI P HOFFMAN P MILLER P STEPHENS P COLLINS P HOLBROOK P MITCHELL,BILL P TENHOUSE P COLVIN P HOWARD P MITCHELL,JERRY P TURNER P COULSON P HULTGREN P MOFFITT P WAIT P COWLISHAW P JEFFERSON P MORROW P WATSON P CROSS P JOHNSON P MULLIGAN P WINKEL P CROTTY P JONES,JOHN P MURPHY P WINTERS P CURRIE P JONES,LOU E MYERS P WIRSING P CURRY P JONES,SHIRLEY P NOVAK P WOJCIK P DANIELS P KENNER E O'BRIEN P WRIGHT P DART P KLINGLER P O'CONNOR P YARBROUGH A DAVIS,MONIQUE P KOSEL P OSMOND P YOUNGE P DAVIS,STEVE P KRAUSE P OSTERMAN P ZICKUS P DELGADO P KURTZ P PANKAU P MR. SPEAKER P DURKIN P LANG E - Denotes Excused Absence
[May 1, 2002] 40 NO. 2 STATE OF ILLINOIS NINETY-SECOND GENERAL ASSEMBLY HOUSE ROLL CALL SENATE BILL 2072 ENVIRONMENTAL-WATER SUPPLIES THIRD READING PASSED MAY 01, 2002 114 YEAS 0 NAYS 0 PRESENT Y ACEVEDO Y ERWIN Y LAWFER Y PARKE Y BASSI Y FEIGENHOLTZ Y LEITCH Y POE Y BEAUBIEN Y FLOWERS Y LINDNER Y REITZ Y BELLOCK Y FORBY Y LYONS,EILEEN Y RIGHTER Y BERNS Y FOWLER Y LYONS,JOSEPH Y RUTHERFORD Y BIGGINS Y FRANKS Y MARQUARDT Y RYAN Y BLACK Y FRITCHEY Y MATHIAS Y SAVIANO Y BOLAND Y GARRETT Y MAUTINO Y SCHMITZ Y BOST Y GILES Y MAY Y SCHOENBERG Y BRADLEY Y GRANBERG Y McAULIFFE Y SCULLY Y BRADY Y HAMOS Y McCARTHY Y SIMPSON Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH Y BUGIELSKI Y HASSERT Y MENDOZA Y SOMMER Y BURKE Y HOEFT Y MEYER Y SOTO Y CAPPARELLI Y HOFFMAN Y MILLER Y STEPHENS Y COLLINS Y HOLBROOK Y MITCHELL,BILL Y TENHOUSE Y COLVIN Y HOWARD Y MITCHELL,JERRY Y TURNER Y COULSON Y HULTGREN Y MOFFITT Y WAIT Y COWLISHAW Y JEFFERSON Y MORROW Y WATSON Y CROSS Y JOHNSON Y MULLIGAN Y WINKEL Y CROTTY Y JONES,JOHN Y MURPHY Y WINTERS Y CURRIE Y JONES,LOU E MYERS Y WIRSING Y CURRY Y JONES,SHIRLEY Y NOVAK Y WOJCIK Y DANIELS Y KENNER E O'BRIEN Y WRIGHT Y DART Y KLINGLER Y O'CONNOR Y YARBROUGH A DAVIS,MONIQUE Y KOSEL Y OSMOND Y YOUNGE Y DAVIS,STEVE Y KRAUSE Y OSTERMAN Y ZICKUS Y DELGADO Y KURTZ Y PANKAU Y MR. SPEAKER A DURKIN Y LANG E - Denotes Excused Absence
41 [May 1, 2002] NO. 3 STATE OF ILLINOIS NINETY-SECOND GENERAL ASSEMBLY HOUSE ROLL CALL SENATE BILL 1543 TAX EXEMPT-AGGREGATE MOTION TO TABLE AMENDMENT NO. 1 LOST MAY 01, 2002 54 YEAS 59 NAYS 0 PRESENT N ACEVEDO N ERWIN Y LAWFER Y PARKE Y BASSI N FEIGENHOLTZ Y LEITCH Y POE Y BEAUBIEN N FLOWERS Y LINDNER N REITZ Y BELLOCK N FORBY Y LYONS,EILEEN Y RIGHTER Y BERNS N FOWLER N LYONS,JOSEPH Y RUTHERFORD Y BIGGINS N FRANKS Y MARQUARDT N RYAN Y BLACK N FRITCHEY Y MATHIAS Y SAVIANO N BOLAND N GARRETT N MAUTINO Y SCHMITZ Y BOST N GILES N MAY N SCHOENBERG N BRADLEY N GRANBERG Y McAULIFFE N SCULLY Y BRADY N HAMOS N McCARTHY Y SIMPSON N BROSNAHAN N HANNIG N McGUIRE N SLONE N BRUNSVOLD N HARTKE N McKEON N SMITH N BUGIELSKI Y HASSERT N MENDOZA Y SOMMER N BURKE Y HOEFT Y MEYER N SOTO N CAPPARELLI N HOFFMAN N MILLER Y STEPHENS N COLLINS N HOLBROOK Y MITCHELL,BILL Y TENHOUSE N COLVIN N HOWARD Y MITCHELL,JERRY N TURNER Y COULSON Y HULTGREN Y MOFFITT Y WAIT Y COWLISHAW N JEFFERSON N MORROW Y WATSON Y CROSS E JOHNSON Y MULLIGAN Y WINKEL N CROTTY Y JONES,JOHN A MURPHY Y WINTERS N CURRIE N JONES,LOU E MYERS Y WIRSING N CURRY N JONES,SHIRLEY N NOVAK Y WOJCIK Y DANIELS N KENNER E O'BRIEN Y WRIGHT N DART Y KLINGLER Y O'CONNOR N YARBROUGH A DAVIS,MONIQUE Y KOSEL Y OSMOND N YOUNGE N DAVIS,STEVE Y KRAUSE N OSTERMAN Y ZICKUS N DELGADO Y KURTZ Y PANKAU N MR. SPEAKER Y DURKIN N LANG E - Denotes Excused Absence
[May 1, 2002] 42 NO. 4 STATE OF ILLINOIS NINETY-SECOND GENERAL ASSEMBLY HOUSE ROLL CALL SENATE BILL 1543 TAX EXEMPT-AGGREGATE SECOND READING - AMENDMENT NO. 1 ADOPTED MAY 01, 2002 63 YEAS 37 NAYS 13 PRESENT Y ACEVEDO Y ERWIN N LAWFER N PARKE P BASSI Y FEIGENHOLTZ N LEITCH N POE N BEAUBIEN Y FLOWERS N LINDNER Y REITZ N BELLOCK Y FORBY P LYONS,EILEEN N RIGHTER P BERNS Y FOWLER Y LYONS,JOSEPH N RUTHERFORD N BIGGINS Y FRANKS N MARQUARDT Y RYAN N BLACK Y FRITCHEY Y MATHIAS Y SAVIANO Y BOLAND Y GARRETT Y MAUTINO N SCHMITZ P BOST Y GILES Y MAY Y SCHOENBERG Y BRADLEY N GRANBERG P McAULIFFE Y SCULLY N BRADY Y HAMOS Y McCARTHY N SIMPSON Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH Y BUGIELSKI N HASSERT Y MENDOZA N SOMMER Y BURKE P HOEFT N MEYER Y SOTO Y CAPPARELLI Y HOFFMAN Y MILLER N STEPHENS Y COLLINS Y HOLBROOK N MITCHELL,BILL N TENHOUSE Y COLVIN Y HOWARD N MITCHELL,JERRY N TURNER P COULSON N HULTGREN Y MOFFITT N WAIT N COWLISHAW Y JEFFERSON Y MORROW P WATSON N CROSS E JOHNSON P MULLIGAN N WINKEL Y CROTTY Y JONES,JOHN A MURPHY N WINTERS Y CURRIE Y JONES,LOU E MYERS N WIRSING Y CURRY Y JONES,SHIRLEY Y NOVAK P WOJCIK N DANIELS Y KENNER E O'BRIEN N WRIGHT Y DART Y KLINGLER P O'CONNOR Y YARBROUGH A DAVIS,MONIQUE P KOSEL N OSMOND Y YOUNGE Y DAVIS,STEVE Y KRAUSE Y OSTERMAN P ZICKUS Y DELGADO N KURTZ N PANKAU Y MR. SPEAKER N DURKIN Y LANG E - Denotes Excused Absence
43 [May 1, 2002] NO. 5 STATE OF ILLINOIS NINETY-SECOND GENERAL ASSEMBLY HOUSE ROLL CALL SENATE BILL 1543 TAX EXEMPT-AGGREGATE THIRD READING PASSED MAY 01, 2002 66 YEAS 32 NAYS 15 PRESENT Y ACEVEDO Y ERWIN N LAWFER N PARKE P BASSI Y FEIGENHOLTZ N LEITCH N POE N BEAUBIEN Y FLOWERS N LINDNER Y REITZ N BELLOCK Y FORBY P LYONS,EILEEN N RIGHTER P BERNS Y FOWLER Y LYONS,JOSEPH N RUTHERFORD N BIGGINS Y FRANKS N MARQUARDT Y RYAN P BLACK Y FRITCHEY Y MATHIAS Y SAVIANO Y BOLAND Y GARRETT Y MAUTINO N SCHMITZ P BOST Y GILES Y MAY Y SCHOENBERG Y BRADLEY N GRANBERG P McAULIFFE Y SCULLY N BRADY Y HAMOS Y McCARTHY N SIMPSON Y BROSNAHAN Y HANNIG Y McGUIRE Y SLONE Y BRUNSVOLD Y HARTKE Y McKEON Y SMITH Y BUGIELSKI N HASSERT Y MENDOZA N SOMMER Y BURKE N HOEFT N MEYER Y SOTO Y CAPPARELLI Y HOFFMAN Y MILLER N STEPHENS Y COLLINS Y HOLBROOK N MITCHELL,BILL N TENHOUSE Y COLVIN Y HOWARD P MITCHELL,JERRY N TURNER P COULSON N HULTGREN Y MOFFITT Y WAIT N COWLISHAW Y JEFFERSON Y MORROW P WATSON N CROSS E JOHNSON Y MULLIGAN P WINKEL Y CROTTY Y JONES,JOHN A MURPHY N WINTERS Y CURRIE Y JONES,LOU E MYERS P WIRSING Y CURRY Y JONES,SHIRLEY Y NOVAK P WOJCIK N DANIELS Y KENNER E O'BRIEN N WRIGHT Y DART Y KLINGLER P O'CONNOR Y YARBROUGH A DAVIS,MONIQUE P KOSEL N OSMOND Y YOUNGE Y DAVIS,STEVE Y KRAUSE Y OSTERMAN P ZICKUS Y DELGADO Y KURTZ N PANKAU Y MR. SPEAKER N DURKIN Y LANG E - Denotes Excused Absence

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