101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0321

 

Introduced , by Rep. David McSweeney

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Repeals the State Tax Lien Registration Act and the Revised Uniform Unclaimed Property Act. Reenacts the Uniform Disposition of Unclaimed Property Act. Changes various Acts by restoring language deleted by Public Act 100-22 and deleting language added by Public Act 100-22. Effective immediately.


LRB101 04001 HLH 49009 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0321LRB101 04001 HLH 49009 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 2. The Uniform Disposition of Unclaimed Property
5Act is reenacted as follows:
 
6    (765 ILCS 1025/Act title)
7An Act relating to the disposition of unclaimed property,
8to make uniform the law with reference thereto, to provide
9penalties for the violation thereof and to make an
10appropriation with relation thereto.
 
11    (765 ILCS 1025/0.05)
12    Sec. 0.05. Transfer of powers. The rights, powers, duties,
13and functions vested in the Department of Financial
14Institutions to administer this Act are transferred to the
15State Treasurer on July 1, 1999 in accordance with Sections
160.02 through 0.06 of the State Treasurer Act; provided,
17however, that the rights, powers, duties, and functions
18involving the examination of the records of any person that the
19State Treasurer has reason to believe has failed to report
20properly under this Act shall be transferred to the Office of
21Banks and Real Estate if the person is regulated by the Office
22of Banks and Real Estate under the Illinois Banking Act, the

 

 

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1Corporate Fiduciary Act, the Foreign Banking Office Act, the
2Illinois Savings and Loan Act of 1985, or the Savings Bank Act
3and shall be retained by the Department of Financial
4Institutions if the person is doing business in the State under
5the supervision of the Department of Financial Institutions,
6the National Credit Union Administration, the Office of Thrift
7Supervision, or the Comptroller of the Currency.
8(Source: P.A. 91-16, eff. 6-4-99.)
 
9    (765 ILCS 1025/1)  (from Ch. 141, par. 101)
10    Sec. 1. As used in this Act, unless the context otherwise
11requires:
12    (a) "Banking organization" means any bank, trust company,
13savings bank, industrial bank, land bank, safe deposit company,
14or a private banker.
15    (b) "Business association" means any corporation, joint
16stock company, business trust, partnership, or any
17association, limited liability company, or other business
18entity consisting of one or more persons, whether or not for
19profit.
20    (c) "Financial organization" means any savings and loan
21association, building and loan association, credit union,
22currency exchange, co-operative bank, mutual funds, or
23investment company.
24    (d) "Holder" means any person in possession of property
25subject to this Act belonging to another, or who is trustee in

 

 

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1case of a trust, or is indebted to another on an obligation
2subject to this Act.
3    (e) "Life insurance corporation" means any association or
4corporation transacting the business of insurance on the lives
5of persons or insurance appertaining thereto, including, but
6not by way of limitation, endowments and annuities.
7    (f) "Owner" means a depositor in case of a deposit, a
8beneficiary in case of a trust, a creditor, claimant, or payee
9in case of other property, or any person having a legal or
10equitable interest in property subject to this Act, or his
11legal representative.
12    (g) "Person" means any individual, business association,
13financial organization, government or political subdivision or
14agency, public authority, estate, trust, or any other legal or
15commercial entity.
16    (h) "Utility" means any person who owns or operates, for
17public use, any plant, equipment, property, franchise, or
18license for the transmission of communications or the
19production, storage, transmission, sale, delivery, or
20furnishing of electricity, water, steam, oil or gas.
21    (i) (Blank).
22    (j) "Insurance company" means any person transacting the
23kinds of business enumerated in Section 4 of the Illinois
24Insurance Code other than life insurance.
25    (k) "Economic loss", as used in Sections 2a and 9 of this
26Act includes, but is not limited to, delivery charges,

 

 

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1mark-downs and write-offs, carrying costs, restocking charges,
2lay-aways, special orders, issuance of credit memos, and the
3costs of special services or goods provided that reduce the
4property value or that result in lost sales opportunity.
5    (l) "Reportable property" means property, tangible or
6intangible, presumed abandoned under this Act that must be
7appropriately and timely reported and remitted to the Office of
8the State Treasurer under this Act. Interest, dividends, stock
9splits, warrants, or other rights that become reportable
10property under this Act include the underlying security or
11commodity giving rise to the interest, dividend, split,
12warrant, or other right to which the owner would be entitled.
13    (m) "Firearm" has the meaning ascribed to that term in the
14Firearm Owners Identification Card Act.
15(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99; 91-748,
16eff. 6-2-00.)
 
17    (765 ILCS 1025/1.5)
18    Sec. 1.5. Application of the Act. This Act applies to all
19money returned to the Treasurer by the paying agent for any
20State bonds or interest coupons by reason of the failure of the
21holder to present such bonds or coupons for payment within 2
22years after maturity.
23(Source: P.A. 97-935, eff. 8-10-12.)
 
24    (765 ILCS 1025/2)  (from Ch. 141, par. 102)

 

 

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1    Sec. 2. Property held by financial organizations;
2presumption of abandonment. The following property held or
3owing by a banking or financial organization is presumed
4abandoned:
5    (a) Any demand, savings, or matured time deposit with a
6banking organization, together with any interest or dividend
7thereon, excluding any charges that may lawfully be withheld,
8unless the owner has, within 5 years:
9        (1) Increased or decreased the amount of the deposit,
10    or presented the passbook or other similar evidence of the
11    deposit for the crediting of interest; or
12        (2) Corresponded in writing with the banking
13    organization concerning the deposit;
14        (3) Otherwise indicated an interest in the deposit as
15    evidenced by a memorandum on file with the banking
16    organization; or
17        (4) Engaged in the following activity regarding other
18    funds or loan accounts with the banking organization:
19            (i) undertook one or more the above actions
20        described in subsection (a) of this Section regarding
21        any account that appears on a consolidated statement
22        with the inactive account;
23            (ii) increased or decreased the amount of funds in
24        any other account the owner has with the banking
25        organization; or
26            (iii) engaged in any other relationship with the

 

 

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1        banking organization, including payment of any amounts
2        due on a loan.
3    The foregoing apply so long as the mailing address for the
4owner in the banking organization's books and records is the
5same for both the inactive account and for the active account.
6    (b) Any funds paid toward the purchase of withdrawable
7shares or other interest in a financial organization, or any
8deposit made, and any interest or dividends thereon, excluding
9any charges that may be lawfully withheld, unless the owner has
10within 5 years:
11        (1) Increased or decreased the amount of the funds, or
12    deposit, or presented an appropriate record for the
13    crediting of interest or dividends; or
14        (2) Corresponded in writing with the financial
15    organization concerning the funds or deposit;
16        (3) Otherwise indicated an interest in the funds or
17    deposit as evidenced by a memorandum on file with the
18    financial organization; or
19        (4) Engaged in the following activity regarding other
20    funds or loan accounts with the financial organization:
21            (i) undertook one or more the above actions
22        described in subsection (b) of this Section regarding
23        any account that appears on a consolidated statement
24        with the inactive account;
25            (ii) increased or decreased the amount of funds in
26        any other account the owner has with the financial

 

 

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1        organization; or
2            (iii) engaged in any other relationship with the
3        financial organization, including payment of any
4        amounts due on a loan.
5    The foregoing apply so long as the mailing address for the
6owner in the financial organization's books and records is the
7same for both the inactive account and for the active account.
8    (c) Any sum payable on checks or on written instruments on
9which a banking or financial organization or business
10association is directly liable including, by way of
11illustration but not of limitation, certificates of deposit,
12drafts, money orders and travelers checks, that with the
13exception of travelers checks and unclaimed wages, payroll, and
14salary has been outstanding for more than 5 years from the date
15it was payable, or from the date of its issuance if payable on
16demand, or, in the case of travelers checks, that has been
17outstanding for more than 15 years from the date of its
18issuance, or, in the case of unclaimed wages, payroll, or
19salary, that has been outstanding for more than one year from
20the date of its issuance, excluding any charges that may be
21lawfully withheld relating to money orders issued by currency
22exchanges, unless the owner has within 5 years (or within 15
23years in the case of travelers checks or one year in the case
24of unclaimed wages, payroll, or salary) corresponded in writing
25with the banking or financial organization or business
26association concerning it, or otherwise indicated an interest

 

 

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1as evidenced by a memorandum on file with the banking or
2financial organization or business association.
3    (d) Any funds or other personal property, tangible or
4intangible, removed from a safe deposit box or any other
5safekeeping repository or agency or collateral deposit box on
6which the lease or rental period has expired due to nonpayment
7of rental charges or other reason, or any surplus amounts
8arising from the sale thereof pursuant to law, that have been
9unclaimed by the owner for more than 5 years from the date on
10which the lease or rental period expired, subject to lien of
11the holder for reimbursement of costs incurred in the opening
12of a safe deposit box as determined by the holder's regular
13schedule of charges.
14    (e) Notwithstanding any other provision of this Section, no
15deposit except passbook, checking, NOW accounts, super NOW
16accounts, money market accounts, or such similar accounts as
17established by Rule of the State Treasurer, held by a banking
18or financial organization shall be presumed abandoned if with
19respect to such a deposit which specifies a definite maturity
20date, such organization was authorized in writing to extend or
21rollover the account for an additional like period and such
22organization does so extend. Such deposits are not presumed
23abandoned less than 5 years from that final maturity date.
24Property of any kind held in an individual retirement account
25(IRA) is not presumed abandoned earlier than 5 years after the
26owner attains the age at which distributions from the account

 

 

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1become mandatory under law.
2    (f) Notwithstanding any other provision of this Section,
3money of a minor deposited pursuant to Section 24-21 of the
4Probate Act of 1975 shall not be presumed abandoned earlier
5than 5 years after the minor attains legal age. Such money
6shall be deposited in an account which shall indicate the birth
7date of the minor.
8(Source: P.A. 97-270, eff. 8-8-11.)
 
9    (765 ILCS 1025/2a)  (from Ch. 141, par. 102a)
10    Sec. 2a. (a) Business associations shall report, pursuant
11to Section 11 of this Act, all property and any earnings
12thereon to which the owner would be entitled that have remained
13unclaimed for 5 years and are therefore presumed abandoned.
14Before reporting and delivering property as required under this
15Act, a business association may deduct from the amount of
16otherwise reportable intangible personal property the economic
17loss suffered by it in connection with that intangible personal
18property arising from transactions involving the sale of
19tangible personal property at retail. This property shall
20consist of, but is not limited to:
21        (1) (blank);
22        (2) deposits or payment for repair or purchase of goods
23    or services;
24        (3) credit checks or memos, or customer overpayments;
25        (4) stocks, bonds, or any other type of securities or

 

 

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1    debt instruments, and interest and dividends therefrom;
2        (5) unidentified remittances, unrefunded overcharges;
3        (6) unpaid claims, unpaid accounts payable or unpaid
4    commissions; and
5        (7) credit balances - accounts receivable, checks
6    written off, employee bond buying and profit-sharing.
7    (b) Notwithstanding the provisions of subsection (a), any
8property due or owed by a business association to or for the
9benefit of another business association resulting from a
10transaction occurring in the normal and ordinary course of
11business shall be exempt from the provisions of this Act.
12    (c) Notwithstanding the provisions of subsection (a),
13unclaimed wages, payroll, and salary, in any form, shall be
14reported after remaining unclaimed for one year, pursuant to
15Section 2.
16(Source: P.A. 97-270, eff. 8-8-11.)
 
17    (765 ILCS 1025/3)  (from Ch. 141, par. 103)
18    Sec. 3. (a) Unclaimed funds, as defined in this Section,
19held and owing by a life insurance corporation shall be
20presumed abandoned if the last known address, according to the
21records of the corporation, of the person entitled to the funds
22is within this State. If a person other than the insured or
23annuitant is entitled to the funds and no address of such
24person is known to the corporation or if it is not definite and
25certain from the records of the corporation what person is

 

 

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1entitled to the funds, it is presumed that the last known
2address of the person entitled to the funds is the same as the
3last known address of the insured or annuitant according to the
4records of the corporation.
5    (b) "Unclaimed funds", as used in this Section, means all
6moneys held and owing by any life insurance corporation
7unclaimed and unpaid for more than 5 years after the moneys
8became due and payable as established from the records of the
9corporation under any life or endowment insurance policy or
10annuity contract which has matured or terminated. A life
11insurance policy not matured by actual proof of the death of
12the insured is deemed to be matured and the proceeds thereof
13are deemed to be due and payable if such policy was in force
14when the insured attained the limiting age under the mortality
15table on which the reserve is based, unless the person
16appearing entitled thereto has within the preceding 5 years,
17(1) assigned, readjusted, or paid premiums on the policy, or
18subjected the policy to loan, or (2) corresponded in writing
19with the life insurance corporation concerning the policy.
20Moneys otherwise payable according to the records of the
21corporation are deemed due and payable although the policy or
22contract has not been surrendered as required.
23(Source: P.A. 87-925.)
 
24    (765 ILCS 1025/3a)
25    Sec. 3a. Demutualization; insurance company.

 

 

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1    (a) Property distributable in the course of a
2demutualization, rehabilitation, or related reorganization of
3an insurance company shall be deemed abandoned as follows:
4        (1) any funds, 2 years after the date of the
5    demutualization, rehabilitation, or reorganization, if the
6    funds remain unclaimed, and the owner has not otherwise
7    communicated with the holder or its agent regarding the
8    property as evidenced by a memorandum or other record on
9    file with the holder or its agent;
10        (2) any stock, 2 years after the date of the
11    demutualization, rehabilitation, or reorganization if
12    instruments or statements reflecting the distribution are
13    either mailed to the owner and returned by the post office
14    as undeliverable, or not mailed to the owner because of an
15    address on the books and records of the holder that is
16    known to be incorrect, and the owner has not otherwise
17    communicated with the holder or its agent regarding the
18    property as evidenced by a memorandum or other record on
19    file with the holder or its agent; and
20    (b) Property subject to items (1) and (2) of subsection (a)
21of this Section shall be set apart and held in the
22Demutualization Trust Fund, a special non-appropriated fund
23hereby created in the State treasury, for the payment of claims
24and expenses associated with the processing of the claims by
25the State Treasurer and shall not be transferred to any other
26fund until such time as the property would be reportable under

 

 

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1other Sections of this Act. The Demutualization Trust Fund
2shall not be subject to Section 8h or 8j of the State Finance
3Act.
4    (c) Property not subject to the provisions of subsection
5(a), within 2 years of distribution shall remain reportable
6under other Sections of this Act.
7(Source: P.A. 94-686, eff. 11-2-05.)
 
8    (765 ILCS 1025/4)  (from Ch. 141, par. 104)
9    Sec. 4. The following funds held or owing by any utility
10are presumed abandoned:
11        (a) Any deposit made by a subscriber with a utility to
12    secure payment for, or any sum paid in advance for, utility
13    services to be furnished, less any lawful deduction, that
14    has remained unclaimed by the person appearing on the
15    records of the utility entitled thereto for more than 5
16    years after the termination of the services for which the
17    deposit or advance payment was made.
18        (b) Any sum which a utility has been ordered to refund
19    and which was received for utility services rendered in
20    this State, together with any interest thereon, less any
21    lawful deductions, that has remained unclaimed by the
22    person appearing on the records of the utility entitled
23    thereto for more than 5 years after the date it became
24    payable in accordance with the final determination or order
25    providing for the refund.

 

 

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1        (c) Any capital credits or patronage capital retired,
2    returned, refunded or tendered to a member of an electric
3    cooperative as defined in Section 3.4 of the Electric
4    Supplier Act or a telephone or telecommunications
5    cooperative as defined in Section 13-212 of the Public
6    Utilities Act that have remained unclaimed by the person
7    appearing on the records of the cooperative entitled
8    thereto for more than 2 years. Such unclaimed capital
9    credits or patronage capital shall not be subject to, or
10    governed by, any other provisions of this Act, but rather
11    shall be used by the cooperative for the benefit of the
12    general membership of the cooperative.
13(Source: P.A. 90-167, eff. 7-23-97.)
 
14    (765 ILCS 1025/5)  (from Ch. 141, par. 105)
15    Sec. 5. The provisions of this Act shall not apply to any
16amount held or owing by a banking organization as agent, or as
17trustee of an express trust, for the purpose of making payment
18to holders of, or in respect of stocks, bonds, or other
19securities of a governmental or other public issuer, or of a
20business association other than a business association which
21shall have discontinued the conduct of its business, or the
22corporate existence of which shall have terminated, without the
23right to receive such amount having passed to a successor or
24successors.
25    As of January 1, 1998, this Section shall not be applicable

 

 

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1unless the Department has commenced, but not finalized, an
2examination of the holder as of that date and the property is
3included in a final examination report for the period covered
4by the examination.
5(Source: P.A. 90-167, eff. 7-23-97.)
 
6    (765 ILCS 1025/6)  (from Ch. 141, par. 106)
7    Sec. 6. All intangible personal property distributable in
8the course of a voluntary dissolution of a business
9association, banking organization, or financial organization
10that is unclaimed by the owner within 2 years after the date
11for final distribution, is presumed abandoned.
12(Source: P.A. 90-167, eff. 7-23-97.)
 
13    (765 ILCS 1025/7)  (from Ch. 141, par. 107)
14    Sec. 7. All intangible personal property and any income or
15increment thereon, held in a fiduciary capacity for the benefit
16of another person is presumed abandoned unless the owner has,
17within 5 years after it becomes payable or distributable,
18increased or decreased the principal, accepted payment of
19principal or income, corresponded in writing concerning the
20property, or otherwise indicated an interest as evidenced by a
21memorandum on file with the fiduciary.
22    A fiduciary may deduct any actual cost incurred in
23connection with the administration of suspense, abeyant, and
24similar accounts arising out of its fiduciary, stock transfer,

 

 

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1corporation trust, and securities processing activities but
2not to exceed 8% of the property remitted.
3(Source: P.A. 90-167, eff. 7-23-97.)
 
4    (765 ILCS 1025/7a)  (from Ch. 141, par. 107a)
5    Sec. 7a. The provisions of this Act shall not apply to an
6active express trust.
7    As of January 1, 1998, this Section shall not be applicable
8unless the Department has commenced, but not finalized, an
9examination of the holder as of that date and the property is
10included in a final examination report for the period covered
11by the examination.
12(Source: P.A. 90-167, eff. 7-23-97.)
 
13    (765 ILCS 1025/8)  (from Ch. 141, par. 108)
14    Sec. 8. All funds and intangible personal property held for
15the owner by any court, public authority, or public officer of
16this State, or a political subdivision thereof, that has
17remained unclaimed by the owner for more than 5 years is
18presumed abandoned. This Section does not apply to deposits
19made to municipalities as a condition for the issuance of a
20building permit.
21(Source: P.A. 99-577, eff. 1-1-17.)
 
22    (765 ILCS 1025/8.1)  (from Ch. 141, par. 108.1)
23    Sec. 8.1. Property held by governments.

 

 

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1    (a) All tangible personal property or intangible personal
2property and all debts owed or entrusted funds or other
3property held by any federal, state or local government or
4governmental subdivision, agency, entity, officer or appointee
5thereof shall be presumed abandoned if the property has
6remained unclaimed for 5 years, except as provided in
7subsection (c).
8    (b) This Section applies to all abandoned property held by
9any federal, state or local government or governmental
10subdivision, agency, entity, officer or appointee thereof on
11September 3, 1991 (the effective date of Public Act 87-206) or
12at any time thereafter, regardless of when the property became
13or becomes presumptively abandoned.
14    (c) United States savings bonds.
15        (1) As used in this subsection, "United States savings
16    bond" means property, tangible or intangible, in the form
17    of a savings bond issued by the United States Treasury,
18    whether in paper, electronic, or paperless form, along with
19    all proceeds thereof in the possession of the State
20    Treasurer.
21        (2) Notwithstanding any provision of this Act to the
22    contrary, a United States savings bond subject to this
23    Section or held or owing in this State by any person shall
24    be presumed abandoned when such bond has remained unclaimed
25    and unredeemed for 5 years after its date of final extended
26    maturity.

 

 

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1        (3) United States savings bonds that are presumed
2    abandoned and unclaimed under paragraph (2) shall escheat
3    to the State of Illinois and all property rights and legal
4    title to and ownership of the United States savings bonds,
5    or proceeds from the bonds, including all rights, powers,
6    and privileges of survivorship of any owner, co-owner, or
7    beneficiary, shall vest solely in the State according to
8    the procedure set forth in paragraphs (4) through (6).
9        (4) Within 180 days after a United States savings bond
10    has been presumed abandoned, in the absence of a claim
11    having been filed with the State Treasurer for the savings
12    bond, the State Treasurer shall commence a civil action in
13    the Circuit Court of Sangamon County for a determination
14    that the United States savings bond has escheated to the
15    State. The State Treasurer may postpone the bringing of the
16    action until sufficient United States savings bonds have
17    accumulated in the State Treasurer's custody to justify the
18    expense of the proceedings.
19        (5) The State Treasurer shall make service by
20    publication in the civil action in accordance with Sections
21    2-206 and 2-207 of the Code of Civil Procedure, which shall
22    include the filing with the Circuit Court of Sangamon
23    County of the affidavit required in Section 2-206 of that
24    Code by an employee of the State Treasurer with personal
25    knowledge of the efforts made to contact the owners of
26    United States savings bonds presumed abandoned under this

 

 

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1    Section. In addition to the diligent inquiries made
2    pursuant to Section 2-206 of the Code of Civil Procedure,
3    the State Treasurer may also utilize additional
4    discretionary means to attempt to provide notice to persons
5    who may own a United States savings bond registered to a
6    person with a last known address in the State of Illinois
7    subject to a civil action pursuant to paragraph (4).
8        (6) The owner of a United States savings bond
9    registered to a person with a last known address in the
10    State of Illinois subject to a civil action pursuant to
11    paragraph (4) may file a claim for such United States
12    savings bond with either the State Treasurer or by filing a
13    claim in the civil action in the Circuit Court of Sangamon
14    County in which the savings bond registered to that person
15    is at issue prior to the entry of a final judgment by the
16    Circuit Court pursuant to this subsection, and unless the
17    Circuit Court determines that such United States savings
18    bond is not owned by the claimant, then such United States
19    savings bond shall no longer be presumed abandoned. If no
20    person files a claim or appears at the hearing to
21    substantiate a disputed claim or if the court determines
22    that a claimant is not entitled to the property claimed by
23    the claimant, then the court, if satisfied by evidence that
24    the State Treasurer has substantially complied with the
25    laws of this State, shall enter a judgment that the United
26    States savings bonds have escheated to this State, and all

 

 

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1    property rights and legal title to and ownership of such
2    United States savings bonds or proceeds from such bonds,
3    including all rights, powers, and privileges of
4    survivorship of any owner, co-owner, or beneficiary, shall
5    vest in this State.
6        (7) The State Treasurer shall redeem from the Bureau of
7    the Fiscal Service of the United States Treasury the United
8    States savings bonds escheated to the State and deposit the
9    proceeds from the redemption of United States savings bonds
10    into the Unclaimed Property Trust Fund.
11        (8) Any person making a claim for the United States
12    savings bonds escheated to the State under this subsection,
13    or for the proceeds from such bonds, may file a claim with
14    the State Treasurer. Upon providing sufficient proof of the
15    validity of such person's claim, the State Treasurer may,
16    in his or her sole discretion, pay such claim. If payment
17    has been made to any claimant, no action thereafter shall
18    be maintained by any other claimant against the State or
19    any officer thereof for or on account of such funds.
20(Source: P.A. 99-556, eff. 1-1-17; 99-577, eff. 1-1-17;
21100-201, eff. 8-18-17.)
 
22    (765 ILCS 1025/8.2)  (from Ch. 141, par. 108.2)
23    Sec. 8.2. (Repealed).
24(Source: P.A. 87-1135. Repealed by P.A. 89-567, eff. 7-26-96.)
 

 

 

HB0321- 21 -LRB101 04001 HLH 49009 b

1    (765 ILCS 1025/9)  (from Ch. 141, par. 109)
2    Sec. 9. All personal property, not otherwise covered by
3this Act, including any income or increment thereon that the
4owner would be entitled to and deducting any lawful charges,
5that has remained unclaimed by the owner for more than 5 years
6is presumed abandoned. Before reporting and delivering
7property as required under this Act, a business association may
8deduct from the amount of otherwise reportable intangible
9personal property the economic loss suffered by it in
10connection with that intangible personal property arising from
11transactions involving the sale of tangible personal property
12at retail. Except as provided in Section 10.5, this provision
13shall not apply to personal property held prior to October 1,
141968 by business associations. Property remitted to the State
15pursuant to this Act, prior to the effective date of this
16amendatory Act of 1982, shall not be affected by this
17amendatory Act of 1982.
18(Source: P.A. 90-167, eff. 7-23-97.)
 
19    (765 ILCS 1025/10)  (from Ch. 141, par. 110)
20    Sec. 10. If specific property which is subject to the
21provisions of Sections 2, 5, 6, 7 and 9 is held for or owed or
22distributable to an owner whose last known address is in
23another state by a holder who is subject to the jurisdiction of
24that state, the specific property is not presumed abandoned in
25this State and subject to this Act if:

 

 

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1        (a) It may be claimed as abandoned or escheated under
2    the laws of such other state; and
3        (b) The laws of such other state make reciprocal
4    provision that similar specific property is not presumed
5    abandoned or escheatable by such other state when held for
6    or owed or distributable to an owner whose last known
7    address is within this State by a holder who is subject to
8    the jurisdiction of this State.
9(Source: Laws 1963, p. 1805.)
 
10    (765 ILCS 1025/10.5)
11    Sec. 10.5. Nonapplicability of Act.
12    (a) Unless the personal property was identified in a final
13examination report by the Director of Financial Institutions
14issued pursuant to a duly authorized examination and the final
15examination report was received by the holder on or before May
161, 1993, this Act does not apply to (i) travelers checks
17reportable as unclaimed property before July 1, 1973, (ii)
18funds held by any federal, state, or local government or
19governmental subdivision, agency, entity, officer, or
20appointee thereof reportable as unclaimed property before July
211, 1981, or (iii) any other personal property reportable as
22unclaimed property before July 1, 1985, based upon the
23presumptive abandonment period in effect on that date.
24    (b) For reports required to be filed after December 31,
251993, this Act does not apply to any reportable personal

 

 

HB0321- 23 -LRB101 04001 HLH 49009 b

1property held prior to the period required for presumptive
2abandonment of the property plus the 9 years immediately
3preceding the beginning of that period.
4    (c) Subsections (a) and (b) do not apply to property held
5by a trust division or trust department or by a trust company,
6or affiliate of any of the foregoing that provides nondealer
7corporate custodial services for securities or securities
8transactions, organized under the laws of this or another state
9or the United States.
10    As of January 1, 1998, this subsection shall not be
11applicable unless the Department of Financial Institutions has
12commenced, but not finalized, an examination of the holder as
13of that date and the property is included in a final
14examination report for the period covered by the examination.
15    (d) Subsections (a) and (b) do not apply to property held
16by a holder who files a fraudulent report or fails to file a
17report.
18    (e) Subsections (a) and (b) do not apply if, as a result of
19their application, another state would have a legal right to
20delivery of the property and such other state has commenced
21proceedings with respect to the property.
22(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
23    (765 ILCS 1025/10.6)
24    Sec. 10.6. Gift certificates and gift cards.
25    (a) This Act applies to a gift certificate or gift card

 

 

HB0321- 24 -LRB101 04001 HLH 49009 b

1only if:
2        (i) the gift certificate or gift card contains or has
3    language indicating there is an expiration date,
4    expiration period or language indicating that there is any
5    type of post-sale charge or fee including but not limited
6    to service charges, dormancy fees, account maintenance
7    fees, cash-out fees, replacement card fees, and activation
8    or reactivation charges; and
9        (ii) none of the exceptions in this Section apply.
10    (b) This Act does not apply to a gift certificate or gift
11card that contains or has language indicating that there is an
12expiration date or expiration period, or any type of post-sale
13charge or fee including but not limited to service charges,
14dormancy fees, account maintenance fees, cash-out fees,
15replacement card fees, and activation or reactivation charges
16if:
17        (i) the gift certificate or gift card was issued before
18    the effective date of this amendatory Act of the 93rd
19    General Assembly; and
20        (ii) it is the policy and practice of the issuer of the
21    gift certificate or gift card to honor the gift certificate
22    or gift card after its expiration date or the end of its
23    expiration period and it is the policy and practice of the
24    issuer of the gift certificate or gift card to eliminate
25    all post-sale charges and fees, and the issuer posts
26    written notice of the policy and practice at locations at

 

 

HB0321- 25 -LRB101 04001 HLH 49009 b

1    which the issuer sells gift certificates or gift cards. The
2    written notice shall be an original or a copy of a notice
3    that the State Treasurer shall produce and provide to
4    issuers free of charge.
5    (c) Nothing in this Section applies to a gift certificate
6or gift card if the value of the gift certificate or gift card
7was reported and remitted under this Act before the effective
8date of this amendatory Act of the 93rd General Assembly.
9(Source: P.A. 92-487, eff. 8-23-01; 93-945, eff. 1-1-05.)
 
10    (765 ILCS 1025/11)  (from Ch. 141, par. 111)
11    Sec. 11. Report of holder.
12    (a) Except as otherwise provided in subsection (c) of
13Section 4, every person holding funds or other property,
14tangible or intangible, presumed abandoned under this Act shall
15report and remit all abandoned property specified in the report
16to the State Treasurer with respect to the property as
17hereinafter provided. The State Treasurer may exempt any
18businesses from the reporting requirement if he deems such
19businesses unlikely to be holding unclaimed property.
20    (b) The information shall be obtained in one or more
21reports as required by the State Treasurer. The information
22shall be verified and shall include:
23        (1) the name, social security or federal tax
24    identification number, if known, and last known address,
25    including zip code, of each person appearing from the

 

 

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1    records of the holder to be the owner of any property of
2    the value of $5 or more presumed abandoned under this Act;
3        (2) in case of unclaimed funds of life insurance
4    corporations the full name of the insured and any
5    beneficiary or annuitant and the last known address
6    according to the life insurance corporation's records;
7        (3) the date when the property became payable,
8    demandable, or returnable, and the date of the last
9    transaction with the owner with respect to the property;
10    and
11        (4) other information which the State Treasurer
12    prescribes by rule as necessary for the administration of
13    this Act.
14    (c) If the person holding property presumed abandoned is a
15successor to other persons who previously held the property for
16the owner, or if the holder has changed his name while holding
17the property, he shall file with his report all prior known
18names and addresses of each holder of the property.
19    (d) The report and remittance of the property specified in
20the report shall be filed by banking organizations, financial
21organizations, insurance companies other than life insurance
22corporations, and governmental entities before November 1 of
23each year as of June 30 next preceding. The report and
24remittance of the property specified in the report shall be
25filed by business associations, utilities, and life insurance
26corporations before May 1 of each year as of December 31 next

 

 

HB0321- 27 -LRB101 04001 HLH 49009 b

1preceding. The Director may postpone the reporting date upon
2written request by any person required to file a report. The
3report and remittance of the property specified in the report
4for property subject to subsection (a) of Section 3a of this
5Act shall be filed before a date established by the State
6Treasurer that is on or after the later of: (i) 30 days after
7the effective date of this amendatory Act of the 94th General
8Assembly; or (ii) November 1, 2005.
9    (d-5) Notwithstanding the foregoing, currency exchanges
10shall be required to report and remit property specified in the
11report within 30 days after the conclusion of its annual
12examination by the Department of Financial Institutions. As
13part of the examination of a currency exchange, the Department
14of Financial Institutions shall instruct the currency exchange
15to submit a complete unclaimed property report using the State
16Treasurer's formatted diskette reporting program or an
17alternative reporting format approved by the State Treasurer.
18The Department of Financial Institutions shall provide the
19State Treasurer with an accounting of the money orders located
20in the course of the annual examination including, where
21available, the amount of service fees deducted and the date of
22the conclusion of the examination.
23    (e) Before filing the annual report, the holder of property
24presumed abandoned under this Act shall communicate with the
25owner at his last known address if any address is known to the
26holder, setting forth the provisions hereof necessary to occur

 

 

HB0321- 28 -LRB101 04001 HLH 49009 b

1in order to prevent abandonment from being presumed. If the
2holder has not communicated with the owner at his last known
3address at least 120 days before the deadline for filing the
4annual report, the holder shall mail, at least 60 days before
5that deadline, a letter by first class mail to the owner at his
6last known address unless any address is shown to be
7inaccurate, setting forth the provisions hereof necessary to
8prevent abandonment from being presumed.
9    (f) Verification, if made by a partnership, shall be
10executed by a partner; if made by an unincorporated association
11or private corporation, by an officer; and if made by a public
12corporation, by its chief fiscal officer.
13    (g) Any person who has possession of property which he has
14reason to believe will be reportable in the future as unclaimed
15property, may report and deliver it prior to the date required
16for such reporting in accordance with this Section and is then
17relieved of responsibility as provided in Section 14.
18    (h) (1) Records pertaining to presumptively abandoned
19property held by a trust division or trust department or by a
20trust company, or affiliate of any of the foregoing that
21provides nondealer corporate custodial services for securities
22or securities transactions, organized under the laws of this or
23another state or the United States shall be retained until the
24property is delivered to the State Treasurer.
25    As of January 1, 1998, this subdivision (h)(1) shall not be
26applicable unless the Department of Financial Institutions has

 

 

HB0321- 29 -LRB101 04001 HLH 49009 b

1commenced, but not finalized, an examination of the holder as
2of that date and the property is included in a final
3examination report for the period covered by the examination.
4    (2) In the case of all other holders commencing on the
5effective date of this amendatory Act of 1993, property records
6for the period required for presumptive abandonment plus the 9
7years immediately preceding the beginning of that period shall
8be retained for 5 years after the property was reportable.
9    (i) The State Treasurer may promulgate rules establishing
10the format and media to be used by a holder in submitting
11reports required under this Act.
12    (j) Other than the Notice to Owners required by Section 12
13and other discretionary means employed by the State Treasurer
14for notifying owners of the existence of abandoned property,
15the State Treasurer shall not disclose any information provided
16in reports filed with the State Treasurer or any information
17obtained in the course of an examination by the State Treasurer
18to any person other than governmental agencies for the purposes
19of returning abandoned property to its owners or to those
20individuals who appear to be the owner of the property or
21otherwise have a valid claim to the property, unless written
22consent from the person entitled to the property is obtained by
23the State Treasurer.
24(Source: P.A. 98-495, eff. 8-16-13.)
 
25    (765 ILCS 1025/11.5)

 

 

HB0321- 30 -LRB101 04001 HLH 49009 b

1    Sec. 11.5. Estimation techniques and record retention.
2    (a) If a holder has failed to retain records as required by
3this Act or if the records retained are shown to be
4insufficient to conduct and conclude an examination, the Office
5of the State Treasurer may use estimation techniques that
6conform to either Generally Accepted Auditing Standards or
7Generally Accepted Accounting Principles to determine the
8amount of unclaimed property. In the conduct of an examination,
9the State shall not request of a holder any records that relate
10only to property that under subsection (a) or (b) of Section
1110.5 is not subject to this Act.
12    (b) Within 15 business days of the receipt of a final
13examination report, a holder may request a hearing to contest
14the use or validity of estimation techniques. The examination
15shall become final upon the failure of the holder to request a
16hearing as provided in this Section. If a hearing is held, the
17State Treasurer shall issue an order approving or disapproving
18the use or validity of the estimation techniques. The order
19shall be a final order under the Administrative Review Law.
20(Source: P.A. 91-16, eff. 7-1-99.)
 
21    (765 ILCS 1025/12)  (from Ch. 141, par. 112)
22    Sec. 12. Notice to owners.
23    (a) For property reportable by May 1, as identified by
24Section 11, the State Treasurer shall cause notice to be
25published once in an English language newspaper of general

 

 

HB0321- 31 -LRB101 04001 HLH 49009 b

1circulation in the county in this State in which is located the
2last known address of any person to be named in the notice on
3or before November 1 of the same year. For property reportable
4by November 1, as identified by Section 11, the State Treasurer
5shall cause notice to be published once in an English language
6newspaper of general circulation in the county in this State in
7which is located the last known address of any person named in
8the notice on or before May 1 of the next year. If no address is
9listed or if the address is outside this State, the notice
10shall be published in the county in which the holder of the
11abandoned property has his principal place of business within
12this State. However, if an out-of-state address is in a state
13that is not a party to a reciprocal agreement with this State
14concerning abandoned property, the notice may be published in
15the Illinois Register. The names of owners that are identified
16and contacted directly by the State Treasurer do not have to be
17published as described in this Section.
18    (b) The published notice shall be entitled "Notice of Names
19of Persons Appearing to be Owners of Abandoned Property", and
20shall contain:
21        (1) The names in alphabetical order and last known
22    addresses, if any, of persons listed in the report and
23    entitled to notice within the county as hereinbefore
24    specified.
25        (2) A statement that information concerning the amount
26    or description of the property and the name and address of

 

 

HB0321- 32 -LRB101 04001 HLH 49009 b

1    the holder may be obtained by any persons possessing an
2    interest in the property by addressing an inquiry to the
3    State Treasurer.
4        (3) A statement that the abandoned property has been
5    placed in the custody of the State Treasurer to whom all
6    further claims must thereafter be directed.
7    (c) The State Treasurer is not required to publish in such
8notice any item of less than $100 or any item for which the
9address of the last known owner is in a state that has a
10reciprocal agreement with this State concerning abandoned
11property unless he deems such publication to be in the public
12interest.
13(Source: P.A. 93-531, eff. 8-14-03; 94-686, eff. 11-2-05.)
 
14    (765 ILCS 1025/13)  (from Ch. 141, par. 113)
15    Sec. 13. Every person who has filed a report as provided by
16Section 11 shall deliver to the State Treasurer all abandoned
17property specified in the annual report on the same date that
18the annual report is filed. Costs for communicating with owners
19by mail as required by subsection (e) of Section 11 may be
20deducted from the property specified in the report. Any such
21person, who pursuant to a statutory requirement, filed a bond
22or bonds pertaining to such abandoned property with the State
23Treasurer or his predecessor, may also deduct an amount
24equivalent to that part of the bond premium attributable to
25such abandoned property.

 

 

HB0321- 33 -LRB101 04001 HLH 49009 b

1(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
2    (765 ILCS 1025/14)  (from Ch. 141, par. 114)
3    Sec. 14. Upon the payment or delivery of abandoned property
4to the State Treasurer, the state shall assume custody and
5shall be responsible for the safekeeping thereof. Any person
6who pays or delivers abandoned property to the State Treasurer
7under this Act is relieved of all liability to the extent of
8the value of the property so paid or delivered for any claim
9which then exists or which thereafter may arise or be made in
10respect to the property.
11    In the event legal proceedings are instituted by any other
12state or states in any state or federal court with respect to
13unclaimed funds or abandoned property previously paid or
14delivered to the State Treasurer, the holder shall give written
15notification to the State Treasurer and the Attorney General of
16this state of such proceedings within 10 days after service of
17process, or in the alternative at least 10 days before the
18return date or date on which an answer or similar pleading is
19due (or any extension thereof secured by the holder). The
20Attorney General may take such action as he deems necessary or
21expedient to protect the interests of the State of Illinois.
22The Attorney General by written notice prior to the return date
23or date on which an answer or similar pleading is due (or any
24extension thereof secured by the holder), but in any event in
25reasonably sufficient time for the holder to comply with the

 

 

HB0321- 34 -LRB101 04001 HLH 49009 b

1directions received, shall either direct the holder actively to
2defend in such proceedings or that no defense need be entered
3in such proceedings. If a direction is received from the
4Attorney General that the holder need not make a defense, such
5shall not preclude the holder from entering a defense in its
6own name if it should so choose. However, any defense made by
7the holder on its own initiative shall not entitle the holder
8to reimbursement for legal fees, costs and other expenses as is
9hereinafter provided in respect to defenses made pursuant to
10the directions of the Attorney General. If, after the holder
11has actively defended in such proceedings pursuant to a
12direction of the Attorney General, or has been notified in
13writing by the Attorney General that no defense need be made
14with respect to such funds, a judgment is entered against the
15holder for any amount paid to the State Treasurer under this
16Act, the State Treasurer shall, upon being furnished with proof
17of payment in satisfaction of such judgment, reimburse the
18holder the amount so paid. The State Treasurer shall also
19reimburse the holder for any legal fees, costs and other
20directly related expenses incurred in legal proceedings
21undertaken pursuant to the direction of the Attorney General.
22(Source: P.A. 91-16, eff. 7-1-99.)
 
23    (765 ILCS 1025/15)  (from Ch. 141, par. 115)
24    Sec. 15. When property is paid or delivered to the State
25Treasurer under this Act, the owner is not entitled to receive

 

 

HB0321- 35 -LRB101 04001 HLH 49009 b

1income or other increments accruing thereafter, except that
2income accruing on unliquidated stock and mutual funds after
3July 1, 1993, may be paid to the owner.
4(Source: P.A. 91-16, eff. 7-1-99.)
 
5    (765 ILCS 1025/16)  (from Ch. 141, par. 116)
6    Sec. 16. The expiration of any period of time specified by
7statute or court order, during which an action or proceeding
8may be commenced or enforced to obtain payment of a claim for
9money or recovery of property, shall not prevent the money or
10property from being presumed abandoned property, nor affect any
11duty to file a report required by this Act or to pay or deliver
12abandoned property to the State Treasurer.
13(Source: P.A. 91-16, eff. 7-1-99.)
 
14    (765 ILCS 1025/17)  (from Ch. 141, par. 117)
15    Sec. 17. (a) All abandoned property, other than money and
16that property exempted by paragraphs (1), (2), (3), (4), (5),
17and (6) of this subsection, delivered to the State Treasurer
18under this Act shall be sold within a reasonable time to the
19highest bidder at public sale in whatever city in the State
20affords in his or her judgment the most favorable market for
21the property involved. The State Treasurer may decline the
22highest bid and reoffer the property for sale if he or she
23considers the price bid insufficient. The State Treasurer may
24group items for auction as "box lots" if the value of the

 

 

HB0321- 36 -LRB101 04001 HLH 49009 b

1individual items makes it impracticable to sell the items
2individually. He or she need not offer any property for sale,
3and may destroy or otherwise dispose of the property, if, in
4his or her opinion, the probable cost of sale exceeds the value
5of the property. Securities or commodities received by the
6Office of the State Treasurer may be sold by the State
7Treasurer through a broker or sales agent suitable for the sale
8of the type of securities or commodities being sold.
9        (1) Property which the State Treasurer determines may
10    have historical value may be, at his or her discretion,
11    loaned to a recognized exhibitor in the United States where
12    it will be kept until such time as the State Treasurer
13    orders it to be returned to his or her possession.
14        (2) Property returned to the State Treasurer shall be
15    released to the rightful owner or otherwise disposed of in
16    accordance with this Act. The State Treasurer shall keep
17    identifying records of the property so loaned, the name of
18    rightful owner and the owner's last known address, if
19    available.
20        (3) The Treasurer, in cooperation with the Department
21    of State Police, shall develop a procedure to determine
22    whether a firearm delivered to the Treasurer under this Act
23    has been stolen or used in the commission of a crime. The
24    Department of State Police shall determine the appropriate
25    disposition of a firearm that has been stolen or used in
26    the commission of a crime. The Treasurer shall attempt to

 

 

HB0321- 37 -LRB101 04001 HLH 49009 b

1    return a firearm that has not been stolen or used in the
2    commission of a crime to the rightful owner, provided that
3    the owner may lawfully possess the firearm as determined by
4    the Department of State Police.
5        If the Treasurer is unable to return a firearm to its
6    owner, the Treasurer shall transfer custody of the firearm
7    to the Department of State Police. Legal title to a firearm
8    transferred to the Department of State Police under this
9    paragraph (3) is vested in the Department of State Police
10    by operation of law:
11            (A) if the Treasurer cannot locate the owner of the
12        firearm;
13            (B) if the owner of the firearm may not lawfully
14        possess the firearm;
15            (C) if the owner does not respond to notice
16        published under Section 12 of this Act; or
17            (D) if the owner responds to notice published under
18        Section 12 and states that he or she no longer claims
19        an interest in the firearm.
20        With respect to a firearm whose title is transferred to
21    the Department of State Police under this paragraph (3),
22    that Department may:
23            (i) retain the firearm for use by the crime
24        laboratory system, for training purposes, or for any
25        other application as deemed appropriate by the
26        Department;

 

 

HB0321- 38 -LRB101 04001 HLH 49009 b

1            (ii) transfer the firearm to the Illinois State
2        Museum if the firearm has historical value; or
3            (iii) destroy the firearm if it is not retained
4        pursuant to subparagraph (i) or transferred pursuant
5        to subparagraph (ii).
6        (4) If human remains are delivered to the Treasurer
7    under this Act, the Treasurer shall deliver those human
8    remains to the coroner of the county in which the human
9    remains were abandoned for disposition under Section
10    3-3034 of the Counties Code. The only human remains that
11    may be delivered to the Treasurer under this Act and that
12    the Treasurer may receive are those that are reported and
13    delivered as contents of a safe deposit box.
14        (5) If medals awarded to U.S. military personnel are
15    delivered to the Treasurer under this Act, the Treasurer
16    shall not offer those medals for sale or at public auction.
17    The only medals that may be delivered to the Treasurer
18    under this Act and that the Treasurer may receive are those
19    that are reported and delivered as contents of a safe
20    deposit box. Medals shall only be returned to the owner of
21    the safe deposit box containing the medals or the heirs of
22    that owner. This paragraph (5) may be referred to as
23    Operation Search and Restore.
24        (6) Property that may have been used in the commission
25    of a crime or that may assist in the investigation of a
26    crime, as determined after consulting standards developed

 

 

HB0321- 39 -LRB101 04001 HLH 49009 b

1    by the Department of State Police, shall be delivered to
2    the Department of State Police or other appropriate law
3    enforcement authority to allow law enforcement to
4    determine whether a criminal investigation should take
5    place. Any such property delivered to a law enforcement
6    authority shall be held in accordance with existing
7    statutes and rules related to the gathering, retention, and
8    release of evidence.
9    (b) Any sale held under this Section, except a sale of
10securities or commodities, shall be preceded by a single
11publication of notice thereof, at least 3 weeks in advance of
12sale in an English language newspaper of general circulation in
13the county where the property is to be sold. When property
14fails to sell and is offered again at a subsequent sale, no
15additional notice is required for the subsequent sale.
16    (c) The purchaser at any sale conducted by the State
17Treasurer pursuant to this Act shall receive title to the
18property purchased, free from all claims of the owner or prior
19holder thereof and of all persons claiming through or under
20them. The State Treasurer shall execute all documents necessary
21to complete the transfer of title.
22    (d) The Office of the State Treasurer is not liable for any
23reduction in the value of property caused by changing market
24conditions.
25(Source: P.A. 95-829, eff. 8-14-08; 96-440, eff. 1-1-10.)
 

 

 

HB0321- 40 -LRB101 04001 HLH 49009 b

1    (765 ILCS 1025/18)  (from Ch. 141, par. 118)
2    Sec. 18. Deposit of funds received under the Act.
3    (a) The State Treasurer shall retain all funds received
4under this Act, including the proceeds from the sale of
5abandoned property under Section 17, in a trust fund known as
6the Unclaimed Property Trust Fund. The State Treasurer may
7deposit any amount in the Unclaimed Property Trust Fund into
8the State Pensions Fund during the fiscal year at his or her
9discretion; however, he or she shall, on April 15 and October
1015 of each year, deposit any amount in the Unclaimed Property
11Trust Fund exceeding $2,500,000 into the State Pensions Fund.
12If on either April 15 or October 15, the State Treasurer
13determines that a balance of $2,500,000 is insufficient for the
14prompt payment of unclaimed property claims authorized under
15this Act, the Treasurer may retain more than $2,500,000 in the
16Unclaimed Property Trust Fund in order to ensure the prompt
17payment of claims. Beginning in State fiscal year 2019, all
18amounts that are deposited into the State Pensions Fund from
19the Unclaimed Property Trust Fund shall be apportioned to the
20designated retirement systems as provided in subsection (c-6)
21of Section 8.12 of the State Finance Act to reduce their
22actuarial reserve deficiencies. He or she shall make prompt
23payment of claims he or she duly allows as provided for in this
24Act for the Unclaimed Property Trust Fund. Before making the
25deposit the State Treasurer shall record the name and last
26known address of each person appearing from the holders'

 

 

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1reports to be entitled to the abandoned property. The record
2shall be available for public inspection during reasonable
3business hours.
4    (b) Before making any deposit to the credit of the State
5Pensions Fund, the State Treasurer may deduct: (1) any costs in
6connection with sale of abandoned property, (2) any costs of
7mailing and publication in connection with any abandoned
8property, and (3) any costs in connection with the maintenance
9of records or disposition of claims made pursuant to this Act.
10The State Treasurer shall semiannually file an itemized report
11of all such expenses with the Legislative Audit Commission.
12(Source: P.A. 99-8, eff. 7-9-15; 99-523, eff. 6-30-16; 100-23,
13eff. 7-6-17.)
 
14    (765 ILCS 1025/19)  (from Ch. 141, par. 119)
15    Sec. 19. Any person claiming an interest in any property
16delivered to the State under this Act may file a claim thereto
17or to the proceeds from the sale thereof on the form prescribed
18by the State Treasurer.
19(Source: P.A. 91-16, eff. 7-1-99.)
 
20    (765 ILCS 1025/19.5)
21    Sec. 19.5. Tax return identification of apparent owners of
22abandoned property.
23    (a) At least annually the State Treasurer shall notify the
24Department of Revenue of the names of persons appearing to be

 

 

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1owners of abandoned property held by the State Treasurer. The
2State Treasurer shall also provide to the Department of Revenue
3the social security numbers of such persons, if available.
4    (b) The Department of Revenue shall notify the State
5Treasurer if any person under subsection (a) has filed an
6Illinois income tax return and shall provide the State
7Treasurer with the last known address of the person as it
8appears in Department of Revenue records, except as prohibited
9by federal law. The Department shall also provide any
10additional addresses for the same taxpayer from the records of
11the Department, except as prohibited by federal law.
12    (c) In order to facilitate the return of property under
13this Section, the State Treasurer and the Department of Revenue
14may enter into an interagency agreement concerning protection
15of confidential information, data match rules, and other
16issues.
17    (d) The State Treasurer may deliver, as provided under
18Section 20 of this Act, property or pay the amount owing to a
19person matched under this Section without the person filing a
20claim under Section 19 of this Act if the following conditions
21are met:
22        (1) the value of the property that is owed the person
23    is $2,000 or less;
24        (2) the property is not either tangible property or
25    securities;
26        (3) the last known address for the person according to

 

 

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1    the Department of Revenue records is less than 12 months
2    old; and
3        (4) the State Treasurer has evidence sufficient to
4    establish that the person who appears in Department of
5    Revenue records is the owner of the property and the owner
6    currently resides at the last known address from the
7    Department of Revenue.
8    The State Treasurer may use additional databases to verify
9the identity of the person and that the person currently
10resides at the last known address.
11    (e) If the property owed to a person matched under this
12Section has a value of greater than $2,000 or is tangible
13property or securities, then the State Treasurer shall provide
14notice to the person informing the person that he or she is the
15owner of abandoned or unclaimed property held by the State and
16may file a claim with the State Treasurer for return of the
17property.
18(Source: P.A. 100-47, eff. 8-11-17.)
 
19    (765 ILCS 1025/20)  (from Ch. 141, par. 120)
20    (Text of Section before amendment by P.A. 100-543)
21    Sec. 20. Determination of claims.
22    (a) The State Treasurer shall consider any claim filed
23under this Act and may, in his discretion, hold a hearing and
24receive evidence concerning it. Such hearing shall be conducted
25by the State Treasurer or by a hearing officer designated by

 

 

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1him. No hearings shall be held if the payment of the claim is
2ordered by a court, if the claimant is under court
3jurisdiction, or if the claim is paid under Article XXV of the
4Probate Act of 1975. The State Treasurer or hearing officer
5shall prepare a finding and a decision in writing on each
6hearing, stating the substance of any evidence heard by him,
7his findings of fact in respect thereto, and the reasons for
8his decision. The State Treasurer shall review the findings and
9decision of each hearing conducted by a hearing officer and
10issue a final written decision. The final decision shall be a
11public record. Any claim of an interest in property that is
12filed pursuant to this Act shall be considered and a finding
13and decision shall be issued by the Office of the State
14Treasurer in a timely and expeditious manner.
15    (b) If the claim is allowed, and after deducting an amount
16not to exceed $20 to cover the cost of notice publication and
17related clerical expenses, the State Treasurer shall make
18payment forthwith.
19    (c) In order to carry out the purpose of this Act, no
20person or company shall be entitled to a fee for discovering
21presumptively abandoned property until it has been in the
22custody of the Unclaimed Property Division of the Office of the
23State Treasurer for at least 24 months. Fees for discovering
24property that has been in the custody of that division for more
25than 24 months shall be limited to not more than 10% of the
26amount collected.

 

 

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1    (d) A person or company attempting to collect a contingent
2fee for discovering, on behalf of an owner, presumptively
3abandoned property must be licensed as a private detective
4pursuant to the Private Detective, Private Alarm, Private
5Security, Fingerprint Vendor, and Locksmith Act of 2004.
6    (e) This Section shall not apply to the fees of an attorney
7at law duly appointed to practice in a state of the United
8States who is employed by a claimant with regard to probate
9matters on a contractual basis.
10    (f) Any person or company offering to identify, discover,
11or collect presumptively abandoned property or property which
12may become presumptively abandoned on behalf of the putative
13owner of such property in exchange for a fee, must provide the
14owner with a written disclosure. The disclosure shall be set
15forth in a clear and conspicuous manner and at a minimum shall
16state the following:
17        Each state maintains an office of unclaimed property.
18    Generally, if for a number of years an owner of property
19    has not communicated directly with the holder of the
20    property, and has not otherwise indicated an interest in or
21    claimed the property, the property will be delivered to a
22    state administered unclaimed property program. Upon such
23    delivery, the owner will be able to recover the property
24    from the state administered program without charge by the
25    state. The unclaimed asset referred to in this Agreement
26    has not yet been reported or remitted to any state

 

 

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1    unclaimed property office. Since you reside (or resided) in
2    Illinois, you may obtain information about the Illinois
3    unclaimed property program by logging onto its website at
4    www.treasurer.il.gov.
5        A person or company may not charge a fee greater than
6    25% of the property's value for the recovery of that
7    property where the property is not yet reportable under
8    this Act and the designated owner of that property, as
9    reflected within the books and records of the holder, is
10    living.
11        A person or company may not charge a fee greater than
12    33% of the property's value for the recovery of that
13    property where the property is not yet reportable under
14    this Act and the recovery of that property involves
15    documentation of the owner's death or any elements of
16    estate or trust administration.
17(Source: P.A. 95-613, eff. 9-11-07; 95-1003, eff. 6-1-09.)
 
18    (Text of Section after amendment by P.A. 100-543)
19    Sec. 20. Determination of claims.
20    (a) The State Treasurer shall consider any claim filed
21under this Act and may, in his discretion, hold a hearing and
22receive evidence concerning it. Such hearing shall be conducted
23by the State Treasurer or by a hearing officer designated by
24him. No hearings shall be held if the payment of the claim is
25ordered by a court, if the claimant is under court

 

 

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1jurisdiction, or if the claim is paid under Article XXV of the
2Probate Act of 1975. The State Treasurer or hearing officer
3shall prepare a finding and a decision in writing on each
4hearing, stating the substance of any evidence heard by him,
5his findings of fact in respect thereto, and the reasons for
6his decision. The State Treasurer shall review the findings and
7decision of each hearing conducted by a hearing officer and
8issue a final written decision. The final decision shall be a
9public record. Any claim of an interest in property that is
10filed pursuant to this Act shall be considered and a finding
11and decision shall be issued by the Office of the State
12Treasurer in a timely and expeditious manner.
13    (b) If the claim is allowed, the State Treasurer shall make
14payment forthwith.
15    (c) In order to carry out the purpose of this Act, no
16person or company shall be entitled to a fee for discovering
17presumptively abandoned property during the period beginning
18on the date the property was presumed abandoned under this Act
19and ending 24 months after the payment or delivery of the
20property to the Unclaimed Property Division of the Office of
21the State Treasurer. Fees for discovering property that has
22been in the custody of that division for more than 24 months
23shall be limited to not more than 10% of the amount collected.
24    (d) A person or company attempting to collect a contingent
25fee for discovering, on behalf of an owner, presumptively
26abandoned property must be licensed as a private detective

 

 

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1pursuant to the Private Detective, Private Alarm, Private
2Security, Fingerprint Vendor, and Locksmith Act of 2004.
3    (e) This Section shall not apply to the fees of an attorney
4at law duly appointed to practice in a state of the United
5States who is employed by a claimant with regard to probate
6matters on a contractual basis or to contest a denial of a
7claim for recovery of the property.
8    (f) Any person or company offering to identify, discover,
9or collect property which may become presumptively abandoned on
10behalf of the putative owner of such property in exchange for a
11fee, must provide the owner with a written disclosure. The
12disclosure shall be set forth in a clear and conspicuous manner
13and at a minimum shall state the following:
14        Each state maintains an office of unclaimed property.
15    Generally, if for a number of years an owner of property
16    has not communicated directly with the holder of the
17    property, and has not otherwise indicated an interest in or
18    claimed the property, the property will be delivered to a
19    state administered unclaimed property program. Upon such
20    delivery, the owner will be able to recover the property
21    from the state administered program without charge by the
22    state. The unclaimed asset referred to in this Agreement
23    has not yet been reported or remitted to any state
24    unclaimed property office. Since you reside (or resided) in
25    Illinois, you may obtain information about the Illinois
26    unclaimed property program by logging onto its website at

 

 

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1    www.illinoistreasurer.gov.
2(Source: P.A. 100-543, eff. 1-1-18.)
 
3    (765 ILCS 1025/21)  (from Ch. 141, par. 121)
4    Sec. 21. A final administrative decision of the State
5Treasurer in respect to a claim filed hereunder shall be
6subject to judicial review pursuant to the provisions of the
7Administrative Review Law and the rules adopted pursuant
8thereto. The review action may be instituted by any person
9adversely affected or aggrieved by the decision.
10    The Office of the State Treasurer shall furnish a certified
11transcript of the record to any party of record upon the
12payment of the actual page charge of the record to a commercial
13reporting service for the preparation of the transcript. If no
14hearing was held, the State Treasurer shall deliver a copy of
15his decision stating the reasons upon which the claim was
16denied and deliver it to any party of record within 20 days of
17demand.
18(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
19    (765 ILCS 1025/22)  (from Ch. 141, par. 122)
20    Sec. 22. The State Treasurer, after receiving reports of
21property deemed abandoned pursuant to this Act, may decline to
22receive any property reported which he deems to have a value
23less than the cost of giving notice and holding sale, or he
24may, if he deems it desirable because of the small sum

 

 

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1involved, postpone taking possession until a sufficient sum has
2accumulated. Unless the holder of the property is notified to
3the contrary within 120 days after filing the report required
4under Section 11, the State Treasurer shall be deemed to have
5elected to receive the custody of the property.
6(Source: P.A. 91-16, eff. 7-1-99.)
 
7    (765 ILCS 1025/23)  (from Ch. 141, par. 123)
8    Sec. 23. (a) If the State Treasurer has reason to believe
9that any person has failed to report property in accordance
10with this Act, he may make a demand by certified mail, return
11receipt requested, that such report be made and filed with the
12State Treasurer. The report of abandoned property or any other
13report required shall be made and filed with the State
14Treasurer within 30 days after receipt of the demand.
15    (b) The State may at reasonable times and upon reasonable
16notice examine the records of any person if the State Treasurer
17has reason to believe that such person has failed to report
18property that should have been reported pursuant to this Act.
19Upon the direction of the State Treasurer to do so, the Office
20of Banks and Real Estate shall, on behalf of the State, conduct
21the examination of the records of any person who is regulated
22by the Office of Banks and Real Estate under the Illinois
23Banking Act, the Corporate Fiduciary Act, the Foreign Banking
24Office Act, the Illinois Savings and Loan Act of 1985, or the
25Savings Bank Act. Upon direction of the State Treasurer to do

 

 

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1so, the Department of Financial Institutions shall, on behalf
2of the State, conduct the examination of the records of any
3person doing business in the State under the supervision of the
4Department of Financial Institutions, the National Credit
5Union Administration, the Office of Thrift Supervision, or the
6Comptroller of the Currency. The Office of Banks and Real
7Estate and the Department of Financial Institutions shall
8conduct all examinations during the next regular examination of
9the person, unless the State Treasurer has reason to believe
10that an accelerated examination schedule is required to protect
11the State's interest, in which case the examination must be
12conducted within 90 days of the State Treasurer's direction to
13do so. The Office of Banks and Real Estate and the Department
14of Financial Institutions may contract with third parties to
15ensure that the examinations are commenced in a timely manner.
16The Department of Financial Institutions and the Office of
17Banks and Real Estate shall report the results of all
18examinations that are undertaken at the direction of the State
19Treasurer under this Act, which may include confidential
20information, to the State Treasurer in a timely manner and,
21upon the request of the Treasurer, shall assist in the
22evaluation of the examinations. All examinations that are not
23performed by the Office of Banks and Real Estate or the
24Department of Financial Institutions shall be performed by the
25State Treasurer.
26    (c) The actual cost of any examination or investigation

 

 

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1incurred by the State in administering any provision of this
2Act shall be borne by the holder examined or investigated if:
3        (1) a written demand for a report has been made and the
4    report has not been properly filed within the time period
5    specified in this Section, or
6        (2) a report has been received and additional property
7    reportable under the Act is discovered by such examination
8    or investigation.
9    No holder shall be liable to pay more than an amount equal
10to the amount of reportable property discovered by such
11investigation as a cost of examination or investigation.
12    (d) For all holders other than a trust division, a trust
13department, a trust company, or an affiliate of any of them,
14subsection (c) does not apply to any examination commenced
15after the effective date of this amendatory Act of 1993. As of
16January 1, 1998, subsection (c) does not apply to an
17examination of a trust division or trust department or a trust
18company, or affiliate of any of the foregoing that provides
19nondealer corporate custodial services for securities or
20securities transactions, organized under the laws of this or
21another state or the United States unless the Department of
22Financial Institutions has commenced, but not finalized, an
23examination of the holder as of that date and the property is
24included in a final examination report for the period covered
25by the examination.
26(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 

 

 

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1    (765 ILCS 1025/23.5)
2    Sec. 23.5. Notice of deficiency; time; effect.
3    (a) The State Treasurer shall issue a Notice of Deficiency
4to a holder or direct the commencement of an examination of a
5holder with respect to a report required under this Act within
65 years after the report is filed. A Notice of Deficiency shall
7specify the additional amounts, if known, purportedly
8reportable under this Act or state that those amounts are
9unknown. If the State Treasurer fails to issue a Notice of
10Deficiency or direct the commencement of an examination within
11the time required by this Section, the Office of the State
12Treasurer may not thereafter issue a Notice of Deficiency,
13otherwise assert a deficiency, or seek any other charge or
14remedy under this Act with respect to that report.
15    (b) This Section does not apply to a holder that is a trust
16division or trust department or a trust company, or affiliate
17of any of the foregoing that provides nondealer corporate
18custodial services for securities or securities transactions,
19organized under the laws of this or another state or the United
20States.
21    As of January 1, 1998, this subsection shall not be
22applicable unless the Department of Financial Institutions has
23commenced, but not finalized, an examination of the holder as
24of that date and the property is included in a final
25examination report for the period covered by the examination.

 

 

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1(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
2    (765 ILCS 1025/24)  (from Ch. 141, par. 124)
3    Sec. 24. Enforcement of delivery. If any person refuses to
4deliver property to the State Treasurer as required under this
5Act, the State Treasurer may bring an action in the name of the
6State in the circuit court or any federal court to enforce
7delivery.
8(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
9    (765 ILCS 1025/24.5)
10    Sec. 24.5. Contingency fees. The State may not enter into a
11contract with a person to conduct an examination of a holder
12located within the State of Illinois under which the State
13agrees to pay such person a fee based upon a percentage of the
14property recovered for the State of Illinois. Nothing in this
15Section prohibits the Office of the State Treasurer from
16entering into contracts with persons to examine holders located
17outside the State of Illinois under which the Office of the
18State Treasurer agrees to pay such persons based upon a
19percentage of the property recovered for the State of Illinois.
20(Source: P.A. 91-16, eff. 7-1-99.)
 
21    (765 ILCS 1025/25)  (from Ch. 141, par. 125)
22    Sec. 25. (a) Any person who fails to render any report or
23perform other duties required under this Act, is guilty of a

 

 

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1business offense and fined not more than $500. Each day such
2report is withheld or the duties are not performed constitutes
3a separate offense.
4    (b) Any person who wilfully refuses to pay or deliver
5abandoned property to the State Treasurer as required under
6this Act shall be guilty of a Class B misdemeanor. Each day the
7violation continues is a separate offense.
8(Source: P.A. 91-16, eff. 7-1-99.)
 
9    (765 ILCS 1025/25.5)
10    Sec. 25.5. Administrative charges, fees, and interest
11charges.
12    (a) The State Treasurer may charge a holder that files an
13unclaimed property report after the due date, as determined by
14the State Treasurer, the lesser of $100 or $1 for each day the
15report remains overdue.
16    (b) The State Treasurer may charge a holder that fails to
17timely perform due diligence, as required by this Act, $5 for
18each name and address account reported if 35% or more of the
19accounts are claimed within the 24 months immediately following
20the filing of the holder's annual report.
21    (c) A holder who remits unclaimed property that is past due
22or fails to remit unclaimed property pursuant to an examination
23by the State, may be charged based on the value of the property
24the greater of 1% per month or an annualized rate that is 3
25percentage points above the prime rate as published in the Wall

 

 

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1Street Journal on the first business day of the month in which
2the property was remitted. If the property remains past due for
3more than 12 months, the interest rate for each succeeding year
4shall be calculated at the greater of an annual rate of 12% or
53 percentage points above the prime rate. The prime rate
6applied shall be as published on the first business day of
7January of that successive year.
8    (d) The State Treasurer may grant an extension of time to
9any holder to report or remit when the holder submits a written
10request for an extension before the date a report or remittance
11is due.
12    (e) Whenever the State Treasurer charges a holder or
13assesses a fee provided for in this Section, he shall serve
14notice upon the holder by personal service or by delivering the
15notice by certified mail, return receipt required, through the
16United States Postal Service to the holder.
17    (f) A holder may contest a charge or other fee issued by
18the State Treasurer by requesting in writing an administrative
19hearing within 15 business days of the receipt of the State
20Treasurer's notice of the charge or fee. The hearing shall be
21held at a time and place designated by the State Treasurer.
22    (g) The State Treasurer's finding subjecting a holder to a
23charge or other fee shall become a final order under the
24Administrative Review Law upon the failure of the holder to
25demand a hearing within 15 business days.
26    (h) If a hearing is held, the State Treasurer shall issue

 

 

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1an order affirming, modifying, or overruling the charge or
2other fee. The order shall be a final order under the
3Administrative Review Law.
4    (i) A holder shall not be charged for failing to remit past
5due unclaimed property pursuant to the State's examination and
6demand for remittance when the holder, in good faith, contests
7all or part of the finding, until a final order reviewing the
8remittance is entered by a hearing officer or the circuit
9court. With regard to contested examinations, the charges,
10fees, or interest shall not accrue during the period from the
11holder's filing of the request for a hearing until the date of
12the final order. However, a holder may be charged for failing
13to remit any undisputed amounts of unclaimed property that are
14not being contested in an administrative hearing or court
15action.
16    (j) The administrative charges, fees, and interest charges
17provided for in this Section shall not apply to property held
18by a trust division or trust department or by a trust company,
19or affiliate of any of the foregoing that provides nondealer
20corporate custodial services for securities or securities
21transactions, organized under the laws of this or another state
22or the United States.
23    As of January 1, 1998, this subsection shall not be
24applicable unless the Department of Financial Institutions has
25commenced, but not finalized, an examination of the holder as
26of that date and the property is included in a final

 

 

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1examination report for the period covered by the examination.
2    (k) In the conduct of a hearing initiated by a holder under
3this Act, the State Treasurer has the power to administer
4oaths, subpoena witnesses, and compel the production of books,
5papers, documents, or records relevant to the hearing under
6this Act.
7    (l) The provisions of this Section apply only to reports
8due and examinations commenced after the effective date of this
9amendatory Act of 1993.
10(Source: P.A. 90-167, eff. 7-23-97; 91-16, eff. 7-1-99.)
 
11    (765 ILCS 1025/26)  (from Ch. 141, par. 126)
12    Sec. 26. The State Treasurer, Director of Financial
13Institutions, and the Commissioner of Banks and Real Estate are
14hereby authorized to make necessary rules and regulations to
15carry out the provisions of this Act.
16(Source: P.A. 91-16, eff. 7-1-99.)
 
17    (765 ILCS 1025/27)  (from Ch. 141, par. 127)
18    Sec. 27. This Act shall not apply to any property, other
19than property covered by Sections 6 and 8 of this Act, as to
20which the presumption of abandonment prescribed by this Act
21occurred prior to August 17, 1946, to any property that has
22been presumed abandoned or escheated under the laws of another
23state prior to August 17, 1961, or to any funds held by any
24annuity, pension or benefit funds created pursuant to the laws

 

 

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1of this State and supported by public revenues.
2(Source: Laws 1963, p. 1805.)
 
3    (765 ILCS 1025/28)  (from Ch. 141, par. 128)
4    Sec. 28. If any provision of this Act or the application
5thereof to any person or circumstances is held invalid, the
6invalidity shall not affect other provisions or applications of
7the Act which can be given effect without the invalid
8provisions or application, and to this end the provisions of
9this Act are severable.
10(Source: Laws 1961, p. 3426.)
 
11    (765 ILCS 1025/29)  (from Ch. 141, par. 129)
12    Sec. 29. This Act shall be so construed as to effectuate
13its general purpose to make uniform the law of those states
14which enact it.
15(Source: Laws 1961, p. 3426.)
 
16    (765 ILCS 1025/29.5)
17    Sec. 29.5. The provisions of this Act do not apply to
18property and proceedings under the Labor and Storage Lien
19(Small Amount) Act.
20(Source: P.A. 88-435.)
 
21    (765 ILCS 1025/30)  (from Ch. 141, par. 130)
22    Sec. 30. This Act may be cited as the Uniform Disposition

 

 

HB0321- 60 -LRB101 04001 HLH 49009 b

1of Unclaimed Property Act.
2(Source: Laws 1961, p. 3426.)
 
3    (35 ILCS 750/Act rep.)
4    Section 3. The State Tax Lien Registration Act is repealed.
 
5    (765 ILCS 1026/Act rep.)
6    Section 4. The Revised Uniform Unclaimed Property Act is
7repealed.
 
8    Section 5. The Illinois Administrative Procedure Act is
9amended by changing Section 1-5 as follows:
 
10    (5 ILCS 100/1-5)  (from Ch. 127, par. 1001-5)
11    Sec. 1-5. Applicability.
12    (a) This Act applies to every agency as defined in this
13Act. Beginning January 1, 1978, in case of conflict between the
14provisions of this Act and the Act creating or conferring power
15on an agency, this Act shall control. If, however, an agency
16(or its predecessor in the case of an agency that has been
17consolidated or reorganized) has existing procedures on July 1,
181977, specifically for contested cases or licensing, those
19existing provisions control, except that this exception
20respecting contested cases and licensing does not apply if the
21Act creating or conferring power on the agency adopts by
22express reference the provisions of this Act. Where the Act

 

 

HB0321- 61 -LRB101 04001 HLH 49009 b

1creating or conferring power on an agency establishes
2administrative procedures not covered by this Act, those
3procedures shall remain in effect.
4    (b) The provisions of this Act do not apply to (i)
5preliminary hearings, investigations, or practices where no
6final determinations affecting State funding are made by the
7State Board of Education, (ii) legal opinions issued under
8Section 2-3.7 of the School Code, (iii) as to State colleges
9and universities, their disciplinary and grievance
10proceedings, academic irregularity and capricious grading
11proceedings, and admission standards and procedures, and (iv)
12the class specifications for positions and individual position
13descriptions prepared and maintained under the Personnel Code.
14Those class specifications shall, however, be made reasonably
15available to the public for inspection and copying. The
16provisions of this Act do not apply to hearings under Section
1720 of the Uniform Disposition of Unclaimed Property Act.
18    (c) Section 5-35 of this Act relating to procedures for
19rulemaking does not apply to the following:
20        (1) Rules adopted by the Pollution Control Board that,
21    in accordance with Section 7.2 of the Environmental
22    Protection Act, are identical in substance to federal
23    regulations or amendments to those regulations
24    implementing the following: Sections 3001, 3002, 3003,
25    3004, 3005, and 9003 of the Solid Waste Disposal Act;
26    Section 105 of the Comprehensive Environmental Response,

 

 

HB0321- 62 -LRB101 04001 HLH 49009 b

1    Compensation, and Liability Act of 1980; Sections 307(b),
2    307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal
3    Water Pollution Control Act; Sections 1412(b), 1414(c),
4    1417(a), 1421, and 1445(a) of the Safe Drinking Water Act;
5    and Section 109 of the Clean Air Act.
6        (2) Rules adopted by the Pollution Control Board that
7    establish or amend standards for the emission of
8    hydrocarbons and carbon monoxide from gasoline powered
9    motor vehicles subject to inspection under the Vehicle
10    Emissions Inspection Law of 2005 or its predecessor laws.
11        (3) Procedural rules adopted by the Pollution Control
12    Board governing requests for exceptions under Section 14.2
13    of the Environmental Protection Act.
14        (4) The Pollution Control Board's grant, pursuant to an
15    adjudicatory determination, of an adjusted standard for
16    persons who can justify an adjustment consistent with
17    subsection (a) of Section 27 of the Environmental
18    Protection Act.
19        (4.5) The Pollution Control Board's adoption of
20    time-limited water quality standards under Section 38.5 of
21    the Environmental Protection Act.
22        (5) Rules adopted by the Pollution Control Board that
23    are identical in substance to the regulations adopted by
24    the Office of the State Fire Marshal under clause (ii) of
25    paragraph (b) of subsection (3) of Section 2 of the
26    Gasoline Storage Act.

 

 

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1    (d) Pay rates established under Section 8a of the Personnel
2Code shall be amended or repealed pursuant to the process set
3forth in Section 5-50 within 30 days after it becomes necessary
4to do so due to a conflict between the rates and the terms of a
5collective bargaining agreement covering the compensation of
6an employee subject to that Code.
7    (e) Section 10-45 of this Act shall not apply to any
8hearing, proceeding, or investigation conducted under Section
913-515 of the Public Utilities Act.
10    (f) Article 10 of this Act does not apply to any hearing,
11proceeding, or investigation conducted by the State Council for
12the State of Illinois created under Section 3-3-11.05 of the
13Unified Code of Corrections or by the Interstate Commission for
14Adult Offender Supervision created under the Interstate
15Compact for Adult Offender Supervision or by the Interstate
16Commission for Juveniles created under the Interstate Compact
17for Juveniles.
18    (g) This Act is subject to the provisions of Article XXI of
19the Public Utilities Act. To the extent that any provision of
20this Act conflicts with the provisions of that Article XXI, the
21provisions of that Article XXI control.
22(Source: P.A. 99-937, eff. 2-24-17; 100-22, eff. 1-1-18.)
 
23    Section 10. The Freedom of Information Act is amended by
24changing Section 7.5 as follows:
 

 

 

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1    (5 ILCS 140/7.5)
2    Sec. 7.5. Statutory exemptions. To the extent provided for
3by the statutes referenced below, the following shall be exempt
4from inspection and copying:
5        (a) All information determined to be confidential
6    under Section 4002 of the Technology Advancement and
7    Development Act.
8        (b) Library circulation and order records identifying
9    library users with specific materials under the Library
10    Records Confidentiality Act.
11        (c) Applications, related documents, and medical
12    records received by the Experimental Organ Transplantation
13    Procedures Board and any and all documents or other records
14    prepared by the Experimental Organ Transplantation
15    Procedures Board or its staff relating to applications it
16    has received.
17        (d) Information and records held by the Department of
18    Public Health and its authorized representatives relating
19    to known or suspected cases of sexually transmissible
20    disease or any information the disclosure of which is
21    restricted under the Illinois Sexually Transmissible
22    Disease Control Act.
23        (e) Information the disclosure of which is exempted
24    under Section 30 of the Radon Industry Licensing Act.
25        (f) Firm performance evaluations under Section 55 of
26    the Architectural, Engineering, and Land Surveying

 

 

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1    Qualifications Based Selection Act.
2        (g) Information the disclosure of which is restricted
3    and exempted under Section 50 of the Illinois Prepaid
4    Tuition Act.
5        (h) Information the disclosure of which is exempted
6    under the State Officials and Employees Ethics Act, and
7    records of any lawfully created State or local inspector
8    general's office that would be exempt if created or
9    obtained by an Executive Inspector General's office under
10    that Act.
11        (i) Information contained in a local emergency energy
12    plan submitted to a municipality in accordance with a local
13    emergency energy plan ordinance that is adopted under
14    Section 11-21.5-5 of the Illinois Municipal Code.
15        (j) Information and data concerning the distribution
16    of surcharge moneys collected and remitted by carriers
17    under the Emergency Telephone System Act.
18        (k) Law enforcement officer identification information
19    or driver identification information compiled by a law
20    enforcement agency or the Department of Transportation
21    under Section 11-212 of the Illinois Vehicle Code.
22        (l) Records and information provided to a residential
23    health care facility resident sexual assault and death
24    review team or the Executive Council under the Abuse
25    Prevention Review Team Act.
26        (m) Information provided to the predatory lending

 

 

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1    database created pursuant to Article 3 of the Residential
2    Real Property Disclosure Act, except to the extent
3    authorized under that Article.
4        (n) Defense budgets and petitions for certification of
5    compensation and expenses for court appointed trial
6    counsel as provided under Sections 10 and 15 of the Capital
7    Crimes Litigation Act. This subsection (n) shall apply
8    until the conclusion of the trial of the case, even if the
9    prosecution chooses not to pursue the death penalty prior
10    to trial or sentencing.
11        (o) Information that is prohibited from being
12    disclosed under Section 4 of the Illinois Health and
13    Hazardous Substances Registry Act.
14        (p) Security portions of system safety program plans,
15    investigation reports, surveys, schedules, lists, data, or
16    information compiled, collected, or prepared by or for the
17    Regional Transportation Authority under Section 2.11 of
18    the Regional Transportation Authority Act or the St. Clair
19    County Transit District under the Bi-State Transit Safety
20    Act.
21        (q) Information prohibited from being disclosed by the
22    Personnel Record Records Review Act.
23        (r) Information prohibited from being disclosed by the
24    Illinois School Student Records Act.
25        (s) Information the disclosure of which is restricted
26    under Section 5-108 of the Public Utilities Act.

 

 

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1        (t) All identified or deidentified health information
2    in the form of health data or medical records contained in,
3    stored in, submitted to, transferred by, or released from
4    the Illinois Health Information Exchange, and identified
5    or deidentified health information in the form of health
6    data and medical records of the Illinois Health Information
7    Exchange in the possession of the Illinois Health
8    Information Exchange Authority due to its administration
9    of the Illinois Health Information Exchange. The terms
10    "identified" and "deidentified" shall be given the same
11    meaning as in the Health Insurance Portability and
12    Accountability Act of 1996, Public Law 104-191, or any
13    subsequent amendments thereto, and any regulations
14    promulgated thereunder.
15        (u) Records and information provided to an independent
16    team of experts under the Developmental Disability and
17    Mental Health Safety Act (also known as Brian's Law).
18        (v) Names and information of people who have applied
19    for or received Firearm Owner's Identification Cards under
20    the Firearm Owners Identification Card Act or applied for
21    or received a concealed carry license under the Firearm
22    Concealed Carry Act, unless otherwise authorized by the
23    Firearm Concealed Carry Act; and databases under the
24    Firearm Concealed Carry Act, records of the Concealed Carry
25    Licensing Review Board under the Firearm Concealed Carry
26    Act, and law enforcement agency objections under the

 

 

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1    Firearm Concealed Carry Act.
2        (w) Personally identifiable information which is
3    exempted from disclosure under subsection (g) of Section
4    19.1 of the Toll Highway Act.
5        (x) Information which is exempted from disclosure
6    under Section 5-1014.3 of the Counties Code or Section
7    8-11-21 of the Illinois Municipal Code.
8        (y) Confidential information under the Adult
9    Protective Services Act and its predecessor enabling
10    statute, the Elder Abuse and Neglect Act, including
11    information about the identity and administrative finding
12    against any caregiver of a verified and substantiated
13    decision of abuse, neglect, or financial exploitation of an
14    eligible adult maintained in the Registry established
15    under Section 7.5 of the Adult Protective Services Act.
16        (z) Records and information provided to a fatality
17    review team or the Illinois Fatality Review Team Advisory
18    Council under Section 15 of the Adult Protective Services
19    Act.
20        (aa) Information which is exempted from disclosure
21    under Section 2.37 of the Wildlife Code.
22        (bb) Information which is or was prohibited from
23    disclosure by the Juvenile Court Act of 1987.
24        (cc) Recordings made under the Law Enforcement
25    Officer-Worn Body Camera Act, except to the extent
26    authorized under that Act.

 

 

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1        (dd) Information that is prohibited from being
2    disclosed under Section 45 of the Condominium and Common
3    Interest Community Ombudsperson Act.
4        (ee) Information that is exempted from disclosure
5    under Section 30.1 of the Pharmacy Practice Act.
6        (ff) (Blank). Information that is exempted from
7    disclosure under the Revised Uniform Unclaimed Property
8    Act.
9        (gg) Information that is prohibited from being
10    disclosed under Section 7-603.5 of the Illinois Vehicle
11    Code.
12        (hh) Records that are exempt from disclosure under
13    Section 1A-16.7 of the Election Code.
14        (ii) Information which is exempted from disclosure
15    under Section 2505-800 of the Department of Revenue Law of
16    the Civil Administrative Code of Illinois.
17        (jj) Information and reports that are required to be
18    submitted to the Department of Labor by registering day and
19    temporary labor service agencies but are exempt from
20    disclosure under subsection (a-1) of Section 45 of the Day
21    and Temporary Labor Services Act.
22        (kk) Information prohibited from disclosure under the
23    Seizure and Forfeiture Reporting Act.
24        (ll) Information the disclosure of which is restricted
25    and exempted under Section 5-30.8 of the Illinois Public
26    Aid Code.

 

 

HB0321- 70 -LRB101 04001 HLH 49009 b

1        (mm) (ll) Records that are exempt from disclosure under
2    Section 4.2 of the Crime Victims Compensation Act.
3        (nn) (ll) Information that is exempt from disclosure
4    under Section 70 of the Higher Education Student Assistance
5    Act.
6(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,
7eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;
899-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
9100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
108-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
11eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
12100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised
1310-12-18.)
 
14    Section 15. The State Comptroller Act is amended by
15changing Section 9 as follows:
 
16    (15 ILCS 405/9)  (from Ch. 15, par. 209)
17    Sec. 9. Warrants; vouchers; preaudit.
18    (a) No payment may be made from public funds held by the
19State Treasurer in or outside of the State treasury, except by
20warrant drawn by the Comptroller and presented by him to the
21treasurer to be countersigned except for payments made pursuant
22to Section 9.03 or 9.05 of this Act.
23    (b) No warrant for the payment of money by the State
24Treasurer may be drawn by the Comptroller without the

 

 

HB0321- 71 -LRB101 04001 HLH 49009 b

1presentation of itemized vouchers indicating that the
2obligation or expenditure is pursuant to law and authorized,
3and authorizing the Comptroller to order payment.
4    (b-1) An itemized voucher for under $5 that is presented to
5the Comptroller for payment shall not be paid except through
6electronic funds transfer. This subsection (b-1) does not apply
7to (i) vouchers presented by the legislative branch of State
8government, (ii) vouchers presented by the State Treasurer's
9Office for the payment of unclaimed property claims authorized
10under the Revised Uniform Disposition of Unclaimed Property
11Act, or (iii) vouchers presented by the Department of Revenue
12for the payment of refunds of taxes administered by the
13Department.
14    (c) The Comptroller shall examine each voucher required by
15law to be filed with him and determine whether unencumbered
16appropriations or unencumbered obligational or expenditure
17authority other than by appropriation are legally available to
18incur the obligation or to make the expenditure of public
19funds. If he determines that unencumbered appropriations or
20other obligational or expenditure authority are not available
21from which to incur the obligation or make the expenditure, the
22Comptroller shall refuse to draw a warrant.
23    (d) The Comptroller shall examine each voucher and all
24other documentation required to accompany the voucher, and
25shall ascertain whether the voucher and documentation meet all
26requirements established by or pursuant to law. If the

 

 

HB0321- 72 -LRB101 04001 HLH 49009 b

1Comptroller determines that the voucher and documentation do
2not meet applicable requirements established by or pursuant to
3law, he shall refuse to draw a warrant. As used in this
4Section, "requirements established by or pursuant to law"
5includes statutory enactments and requirements established by
6rules and regulations adopted pursuant to this Act.
7    (e) Prior to drawing a warrant, the Comptroller may review
8the voucher, any documentation accompanying the voucher, and
9any other documentation related to the transaction on file with
10him, and determine if the transaction is in accordance with the
11law. If based on his review the Comptroller has reason to
12believe that such transaction is not in accordance with the
13law, he shall refuse to draw a warrant.
14    (f) Where the Comptroller refuses to draw a warrant
15pursuant to this Section, he shall maintain separate records of
16such transactions.
17    (g) State agencies shall have the principal responsibility
18for the preaudit of their encumbrances, expenditures, and other
19transactions as otherwise required by law.
20(Source: P.A. 100-22, eff. 1-1-18.)
 
21    Section 20. The State Treasurer Act is amended by changing
22Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
 
23    (15 ILCS 505/0.02)
24    Sec. 0.02. Transfer of powers. The rights, powers, duties,

 

 

HB0321- 73 -LRB101 04001 HLH 49009 b

1and functions vested in the Department of Financial
2Institutions to administer the Uniform Disposition of
3Unclaimed Property Act (superseded by the Revised Uniform
4Unclaimed Property Act) are transferred to the State Treasurer
5on July 1, 1999; provided, however, that the rights, powers,
6duties, and functions involving the examination of the records
7of any person that the State Treasurer has reason to believe
8has failed to report properly under this Act shall be
9transferred to the Office of Banks and Real Estate if the
10person is regulated by the Office of Banks and Real Estate
11under the Illinois Banking Act, the Corporate Fiduciary Act,
12the Foreign Banking Office Act, the Illinois Savings and Loan
13Act of 1985, or the Savings Bank Act and shall be retained by
14the Department of Financial Institutions if the person is doing
15business in the State under the supervision of the Department
16of Financial Institutions, the National Credit Union
17Administration, the Office of Thrift Supervision, or the
18Comptroller of the Currency.
19(Source: P.A. 100-22, eff. 1-1-18.)
 
20    (15 ILCS 505/0.03)
21    Sec. 0.03. Transfer of personnel.
22    (a) Except as provided in subsection (b), personnel
23employed by the Department of Financial Institutions on June
2430, 1999 to perform duties pertaining to the administration of
25the Uniform Disposition of Unclaimed Property Act (superseded

 

 

HB0321- 74 -LRB101 04001 HLH 49009 b

1by the Revised Uniform Unclaimed Property Act) are transferred
2to the State Treasurer on July 1, 1999.
3    (b) In the case of a person employed by the Department of
4Financial Institutions to perform both duties pertaining to the
5administration of the Uniform Disposition of Unclaimed
6Property Act (superseded by the Revised Uniform Unclaimed
7Property Act) and duties pertaining to a function retained by
8the Department of Financial Institutions, the State Treasurer,
9in consultation with the Director of Financial Institutions,
10shall determine whether to transfer the employee to the Office
11of the State Treasurer; until this determination has been made,
12the transfer shall not take effect.
13    (c) The rights of State employees, the State, and its
14agencies under the Personnel Code and applicable collective
15bargaining agreements and retirement plans are not affected by
16this amendatory Act of 1999, except that all positions
17transferred to the State Treasurer shall be subject to the
18State Treasurer Employment Code effective July 1, 2000.
19    All transferred employees who are members of collective
20bargaining units shall retain their seniority, continuous
21service, salary, and accrued benefits. During the pendency of
22the existing collective bargaining agreement, the rights
23provided for under that agreement and memoranda and supplements
24to that agreement, including but not limited to, the rights of
25employees performing duties pertaining to the administration
26of the Uniform Disposition of Unclaimed Property Act

 

 

HB0321- 75 -LRB101 04001 HLH 49009 b

1(superseded by the Revised Uniform Unclaimed Property Act) to
2positions in other State agencies and the right of employees in
3other State agencies covered by the agreement to positions
4performing duties pertaining to the administration of the
5Uniform Disposition of Unclaimed Property Act (superseded by
6the Revised Uniform Unclaimed Property Act), shall not be
7abridged.
8    The State Treasurer shall continue to honor during their
9pendency all bargaining agreements in effect at the time of the
10transfer and to recognize all collective bargaining
11representatives for the employees who perform or will perform
12functions transferred by this amendatory Act of 1999. For all
13purposes with respect to the management of the existing
14agreement and the negotiation and management of any successor
15agreements, the State Treasurer shall be deemed to be the
16employer of employees who perform or will perform functions
17transferred to the Office of the State Treasurer by this
18amendatory Act of 1999; provided that the Illinois Department
19of Central Management Services shall be a party to any
20grievance or arbitration proceeding held pursuant to the
21provisions of the collective bargaining agreement which
22involves the movement of employees from the Office of the State
23Treasurer to an agency under the jurisdiction of the Governor
24covered by the agreement.
25(Source: P.A. 100-22, eff. 1-1-18.)
 

 

 

HB0321- 76 -LRB101 04001 HLH 49009 b

1    (15 ILCS 505/0.04)
2    Sec. 0.04. Transfer of property.
3    (a) Except as provided in subsection (b), all real and
4personal property, including but not limited to all books,
5records, and documents, and all unexpended appropriations and
6pending business pertaining to the administration of the
7Uniform Disposition of Unclaimed Property Act (superseded by
8the Revised Uniform Unclaimed Property Act) shall be
9transferred and delivered to the State Treasurer effective July
101, 1999.
11    (b) In the case of books, records, or documents that
12pertain both to the administration of the Uniform Disposition
13of Unclaimed Property Act (superseded by the Revised Uniform
14Unclaimed Property Act) and to a function retained by the
15Department of Financial Institutions, the State Treasurer, in
16consultation with the Director of Financial Institutions,
17shall determine whether the books, records, or documents shall
18be transferred, copied, or left with the Department of
19Financial Institutions; until this determination has been
20made, the transfer shall not take effect.
21    In the case of property or an unexpended appropriation that
22pertains both to the administration of the Uniform Disposition
23of Unclaimed Property Act (superseded by the Revised Uniform
24Unclaimed Property Act) and to a function retained by the
25Department of Financial Institutions, the State Treasurer, in
26consultation with the Director of Financial Institutions,

 

 

HB0321- 77 -LRB101 04001 HLH 49009 b

1shall determine whether the property or unexpended
2appropriation shall be transferred, divided, or left with the
3Department of Financial Institutions; until this determination
4has been made (and, in the case of an unexpended appropriation,
5notice of the determination has been filed with the State
6Comptroller), the transfer shall not take effect.
7(Source: P.A. 100-22, eff. 1-1-18.)
 
8    (15 ILCS 505/0.05)
9    Sec. 0.05. Rules and standards.
10    (a) The rules and standards of the Department of Financial
11Institutions that are in effect on June 30, 1999 and pertain to
12the administration of the Uniform Disposition of Unclaimed
13Property Act (superseded by the Revised Uniform Unclaimed
14Property Act) shall become the rules and standards of the State
15Treasurer on July 1, 1999 and shall continue in effect until
16amended or repealed by the State Treasurer.
17    (b) Any rules pertaining to the administration of the
18Uniform Disposition of Unclaimed Property Act (superseded by
19the Revised Uniform Unclaimed Property Act) that have been
20proposed by the Department of Financial Institutions but have
21not taken effect or been finally adopted by June 30, 1999 shall
22become proposed rules of the State Treasurer on July 1, 1999,
23and any rulemaking procedures that have already been completed
24by the Department of Financial Institutions need not be
25repeated.

 

 

HB0321- 78 -LRB101 04001 HLH 49009 b

1    (c) As soon as practical after July 1, 1999, the State
2Treasurer shall revise and clarify the rules transferred to it
3under this amendatory Act of 1999 to reflect the reorganization
4of rights, powers, duties, and functions effected by this
5amendatory Act of 1999 using the procedures for recodification
6of rules available under the Illinois Administrative Procedure
7Act, except that existing title, part, and section numbering
8for the affected rules may be retained.
9    (d) As soon as practical after July 1, 1999, the Office of
10Banks and Real Estate and the Office of the State Treasurer
11shall jointly promulgate rules to reflect the transfer of
12examination functions to the Office of Banks and Real Estate
13under this amendatory Act of 1999 using the procedures
14available under the Illinois Administrative Procedure Act.
15    (e) As soon as practical after July 1, 1999, the Department
16of Financial Institutions and the Office of the State Treasurer
17shall jointly promulgate rules to reflect the retention of
18examination functions by the Department of Financial
19Institutions under this amendatory Act of 1999 using the
20procedures available under the Illinois Administrative
21Procedure Act.
22(Source: P.A. 100-22, eff. 1-1-18.)
 
23    (15 ILCS 505/0.06)
24    Sec. 0.06. Savings provisions.
25    (a) The rights, powers, duties, and functions transferred

 

 

HB0321- 79 -LRB101 04001 HLH 49009 b

1to the State Treasurer or the Commissioner of Banks and Real
2Estate by this amendatory Act of 1999 shall be vested in and
3exercised by the State Treasurer or the Commissioner of Banks
4and Real Estate subject to the provisions of this amendatory
5Act of 1999. An act done by the State Treasurer or the
6Commissioner of Banks and Real Estate or an officer, employee,
7or agent of the State Treasurer or the Commissioner of Banks
8and Real Estate in the exercise of the transferred rights,
9powers, duties, or functions shall have the same legal effect
10as if done by the Department of Financial Institutions or an
11officer, employee, or agent of the Department of Financial
12Institutions prior to the effective date of this amendatory Act
13of 1999.
14    (b) The transfer of rights, powers, duties, and functions
15to the State Treasurer or the Commissioner of Banks and Real
16Estate under this amendatory Act of 1999 does not invalidate
17any previous action taken by or in respect to the Department of
18Financial Institutions or its officers, employees, or agents.
19References to the Department of Financial Institutions or its
20officers, employees or agents in any document, contract,
21agreement, or law shall, in appropriate contexts, be deemed to
22refer to the State Treasurer or the Commissioner of Banks and
23Real Estate or the officers, employees, or agents of the State
24Treasurer or the Commissioner of Banks and Real Estate.
25    (c) The transfer of rights, powers, duties, and functions
26from the Department of Financial Institutions to the State

 

 

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1Treasurer or the Commissioner of Banks and Real Estate under
2this amendatory Act of 1999 does not affect the rights,
3obligations, or duties of any other person or entity, including
4any civil or criminal penalties applicable thereto, arising out
5of those transferred rights, powers, duties, and functions.
6    (d) With respect to matters that pertain to a right, power,
7duty, or function transferred to the State Treasurer under this
8amendatory Act of 1999:
9        (1) Beginning July 1, 1999, any report or notice that
10    was previously required to be made or given by any person
11    to the Department of Financial Institutions or any of its
12    officers, employees, or agents under the Uniform
13    Disposition of Unclaimed Property Act (superseded by the
14    Revised Uniform Unclaimed Property Act) or rules
15    promulgated pursuant to that Act shall be made or given in
16    the same manner to the State Treasurer or his or her
17    appropriate officer, employee, or agent.
18        (2) Beginning July 1, 1999, any document that was
19    previously required to be furnished or served by any person
20    to or upon the Department of Financial Institutions or any
21    of its officers, employees, or agents under the Uniform
22    Disposition of Unclaimed Property Act (superseded by the
23    Revised Uniform Unclaimed Property Act) or rules
24    promulgated pursuant to that Act shall be furnished or
25    served in the same manner to or upon the State Treasurer or
26    his or her appropriate officer, employee, or agent.

 

 

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1    (e) This amendatory Act of 1999 does not affect any act
2done, ratified, or canceled, any right occurring or
3established, or any action or proceeding had or commenced in an
4administrative, civil, or criminal cause before July 1, 1999.
5Any such action or proceeding that pertains to the Uniform
6Disposition of Unclaimed Property Act (superseded by the
7Revised Uniform Unclaimed Property Act) or rules promulgated
8pursuant to that Act and that is pending on that date may be
9prosecuted, defended, or continued by the State Treasurer.
10(Source: P.A. 100-22, eff. 1-1-18.)
 
11    Section 25. The Financial Institutions Code is amended by
12changing Sections 7 and 18.1 as follows:
 
13    (20 ILCS 1205/7)  (from Ch. 17, par. 108)
14    Sec. 7. The provisions of "The Illinois Administrative
15Procedure Act", as now or hereafter amended, are hereby
16expressly adopted and incorporated herein as though a part of
17this Act, and shall apply to all administrative rules and
18procedures of the Director and the Department of Financial
19Institutions under this Act, except that the provisions of the
20Administrative Procedure Act regarding contested cases shall
21not apply to actions of the Director under Section 15.1 of "An
22Act in relation to the definition, licensing and regulation of
23community currency exchanges and ambulatory currency
24exchanges, and the operators and employees thereof, and to make

 

 

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1an appropriation therefor, and to provide penalties and
2remedies for the violation thereof", approved June 30, 1943, as
3amended, or Sections 8 and 61 of "The Illinois Credit Union
4Act, or to hearings under Section 20 of the Uniform Disposition
5of Unclaimed Property Act ".
6(Source: P.A. 100-22, eff. 1-1-18.)
 
7    (20 ILCS 1205/18.1)
8    Sec. 18.1. Transfer of administration of Uniform
9Disposition of Unclaimed Property Act to State Treasurer. The
10rights, powers, duties, and functions vested in the Department
11of Financial Institutions to administer the Uniform
12Disposition of Unclaimed Property Act (superseded by the
13Revised Uniform Unclaimed Property Act) are transferred to the
14State Treasurer on July 1, 1999 in accordance with Sections
150.02 through 0.06 of the State Treasurer Act; provided,
16however, that the rights, powers, duties, and functions
17involving the examination of the records of any person that the
18State Treasurer has reason to believe has failed to report
19properly under this Act shall be transferred to the Office of
20Banks and Real Estate if the person is regulated by the Office
21of Banks and Real Estate under the Illinois Banking Act, the
22Corporate Fiduciary Act, the Foreign Banking Office Act, the
23Illinois Savings and Loan Act of 1985, or the Savings Bank Act
24and shall be retained by the Department of Financial
25Institutions if the person is doing business in the State under

 

 

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1the supervision of the Department of Financial Institutions,
2the National Credit Union Administration, the Office of Thrift
3Supervision, or the Comptroller of the Currency.
4(Source: P.A. 100-22, eff. 1-1-18.)
 
5    Section 30. The State Finance Act is amended by changing
6Sections 6b-1 and 8.12 as follows:
 
7    (30 ILCS 105/6b-1)  (from Ch. 127, par. 142b1)
8    Sec. 6b-1. There shall be paid into the State Pensions Fund
9the funds and proceeds from the sale of abandoned property as
10provided in Section 18 of the Uniform Disposition of Unclaimed
11Property Act, enacted by the Seventy-second General Assembly
12the Revised Uniform Unclaimed Property Act.
13(Source: P.A. 100-22, eff. 1-1-18.)
 
14    (30 ILCS 105/8.12)   (from Ch. 127, par. 144.12)
15    Sec. 8.12. State Pensions Fund.
16    (a) The moneys in the State Pensions Fund shall be used
17exclusively for the administration of the Revised Uniform
18Disposition of Unclaimed Property Act and for the expenses
19incurred by the Auditor General for administering the
20provisions of Section 2-8.1 of the Illinois State Auditing Act
21and for operational expenses of the Office of the State
22Treasurer and for the funding of the unfunded liabilities of
23the designated retirement systems. Beginning in State fiscal

 

 

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1year 2020, payments to the designated retirement systems under
2this Section shall be in addition to, and not in lieu of, any
3State contributions required under the Illinois Pension Code.
4    "Designated retirement systems" means:
5        (1) the State Employees' Retirement System of
6    Illinois;
7        (2) the Teachers' Retirement System of the State of
8    Illinois;
9        (3) the State Universities Retirement System;
10        (4) the Judges Retirement System of Illinois; and
11        (5) the General Assembly Retirement System.
12    (b) Each year the General Assembly may make appropriations
13from the State Pensions Fund for the administration of the
14Revised Uniform Disposition of Unclaimed Property Act.
15    Each month, the Commissioner of the Office of Banks and
16Real Estate shall certify to the State Treasurer the actual
17expenditures that the Office of Banks and Real Estate incurred
18conducting unclaimed property examinations under the Uniform
19Disposition of Unclaimed Property Act during the immediately
20preceding month. Within a reasonable time following the
21acceptance of such certification by the State Treasurer, the
22State Treasurer shall pay from its appropriation from the State
23Pensions Fund to the Bank and Trust Company Fund, the Savings
24Bank Regulatory Fund, and the Residential Finance Regulatory
25Fund an amount equal to the expenditures incurred by each Fund
26for that month.

 

 

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1    Each month, the Director of Financial Institutions shall
2certify to the State Treasurer the actual expenditures that the
3Department of Financial Institutions incurred conducting
4unclaimed property examinations under the Uniform Disposition
5of Unclaimed Property Act during the immediately preceding
6month. Within a reasonable time following the acceptance of
7such certification by the State Treasurer, the State Treasurer
8shall pay from its appropriation from the State Pensions Fund
9to the Financial Institution Fund and the Credit Union Fund an
10amount equal to the expenditures incurred by each Fund for that
11month.
12    (c) As soon as possible after July 30, 2004 (the effective
13date of Public Act 93-839), the General Assembly shall
14appropriate from the State Pensions Fund (1) to the State
15Universities Retirement System the amount certified under
16Section 15-165 during the prior year, (2) to the Judges
17Retirement System of Illinois the amount certified under
18Section 18-140 during the prior year, and (3) to the General
19Assembly Retirement System the amount certified under Section
202-134 during the prior year as part of the required State
21contributions to each of those designated retirement systems;
22except that amounts appropriated under this subsection (c) in
23State fiscal year 2005 shall not reduce the amount in the State
24Pensions Fund below $5,000,000. If the amount in the State
25Pensions Fund does not exceed the sum of the amounts certified
26in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,

 

 

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1the amount paid to each designated retirement system under this
2subsection shall be reduced in proportion to the amount
3certified by each of those designated retirement systems.
4    (c-5) For fiscal years 2006 through 2019, the General
5Assembly shall appropriate from the State Pensions Fund to the
6State Universities Retirement System the amount estimated to be
7available during the fiscal year in the State Pensions Fund;
8provided, however, that the amounts appropriated under this
9subsection (c-5) shall not reduce the amount in the State
10Pensions Fund below $5,000,000.
11    (c-6) For fiscal year 2020 and each fiscal year thereafter,
12as soon as may be practical after any money is deposited into
13the State Pensions Fund from the Unclaimed Property Trust Fund,
14the State Treasurer shall apportion the deposited amount among
15the designated retirement systems as defined in subsection (a)
16to reduce their actuarial reserve deficiencies. The State
17Comptroller and State Treasurer shall pay the apportioned
18amounts to the designated retirement systems to fund the
19unfunded liabilities of the designated retirement systems. The
20amount apportioned to each designated retirement system shall
21constitute a portion of the amount estimated to be available
22for appropriation from the State Pensions Fund that is the same
23as that retirement system's portion of the total actual reserve
24deficiency of the systems, as determined annually by the
25Governor's Office of Management and Budget at the request of
26the State Treasurer. The amounts apportioned under this

 

 

HB0321- 87 -LRB101 04001 HLH 49009 b

1subsection shall not reduce the amount in the State Pensions
2Fund below $5,000,000.
3    (d) The Governor's Office of Management and Budget shall
4determine the individual and total reserve deficiencies of the
5designated retirement systems. For this purpose, the
6Governor's Office of Management and Budget shall utilize the
7latest available audit and actuarial reports of each of the
8retirement systems and the relevant reports and statistics of
9the Public Employee Pension Fund Division of the Department of
10Insurance.
11    (d-1) As soon as practicable after March 5, 2004 (the
12effective date of Public Act 93-665), the Comptroller shall
13direct and the Treasurer shall transfer from the State Pensions
14Fund to the General Revenue Fund, as funds become available, a
15sum equal to the amounts that would have been paid from the
16State Pensions Fund to the Teachers' Retirement System of the
17State of Illinois, the State Universities Retirement System,
18the Judges Retirement System of Illinois, the General Assembly
19Retirement System, and the State Employees' Retirement System
20of Illinois after March 5, 2004 (the effective date of Public
21Act 93-665) during the remainder of fiscal year 2004 to the
22designated retirement systems from the appropriations provided
23for in this Section if the transfers provided in Section 6z-61
24had not occurred. The transfers described in this subsection
25(d-1) are to partially repay the General Revenue Fund for the
26costs associated with the bonds used to fund the moneys

 

 

HB0321- 88 -LRB101 04001 HLH 49009 b

1transferred to the designated retirement systems under Section
26z-61.
3    (e) The changes to this Section made by Public Act 88-593
4shall first apply to distributions from the Fund for State
5fiscal year 1996.
6(Source: P.A. 99-8, eff. 7-9-15; 99-78, eff. 7-20-15; 99-523,
7eff. 6-30-16; 100-22, eff. 1-1-18; 100-23, eff. 7-6-17;
8100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
 
9    Section 35. The State Officers and Employees Money
10Disposition Act is amended by changing Section 2 as follows:
 
11    (30 ILCS 230/2)  (from Ch. 127, par. 171)
12    Sec. 2. Accounts of money received; payment into State
13treasury.
14    (a) Every officer, board, commission, commissioner,
15department, institution, arm or agency brought within the
16provisions of this Act by Section 1 shall keep in proper books
17a detailed itemized account of all moneys received for or on
18behalf of the State of Illinois, showing the date of receipt,
19the payor, and purpose and amount, and the date and manner of
20disbursement as hereinafter provided, and, unless a different
21time of payment is expressly provided by law or by rules or
22regulations promulgated under subsection (b) of this Section,
23shall pay into the State treasury the gross amount of money so
24received on the day of actual physical receipt with respect to

 

 

HB0321- 89 -LRB101 04001 HLH 49009 b

1any single item of receipt exceeding $10,000, within 24 hours
2of actual physical receipt with respect to an accumulation of
3receipts of $10,000 or more, or within 48 hours of actual
4physical receipt with respect to an accumulation of receipts
5exceeding $500 but less than $10,000, disregarding holidays,
6Saturdays and Sundays, after the receipt of same, without any
7deduction on account of salaries, fees, costs, charges,
8expenses or claims of any description whatever; provided that:
9        (1) the provisions of (i) Section 2505-475 of the
10    Department of Revenue Law (20 ILCS 2505/2505-475), (ii) any
11    specific taxing statute authorizing a claim for credit
12    procedure instead of the actual making of refunds, (iii)
13    Section 505 of the Illinois Controlled Substances Act, (iv)
14    Section 85 of the Methamphetamine Control and Community
15    Protection Act, authorizing the Director of State Police to
16    dispose of forfeited property, which includes the sale and
17    disposition of the proceeds of the sale of forfeited
18    property, and the Department of Central Management
19    Services to be reimbursed for costs incurred with the sales
20    of forfeited vehicles, boats or aircraft and to pay to bona
21    fide or innocent purchasers, conditional sales vendors or
22    mortgagees of such vehicles, boats or aircraft their
23    interest in such vehicles, boats or aircraft, and (v)
24    Section 6b-2 of the State Finance Act, establishing
25    procedures for handling cash receipts from the sale of
26    pari-mutuel wagering tickets, shall not be deemed to be in

 

 

HB0321- 90 -LRB101 04001 HLH 49009 b

1    conflict with the requirements of this Section;
2        (2) any fees received by the State Registrar of Vital
3    Records pursuant to the Vital Records Act which are
4    insufficient in amount may be returned by the Registrar as
5    provided in that Act;
6        (3) any fees received by the Department of Public
7    Health under the Food Handling Regulation Enforcement Act
8    that are submitted for renewal of an expired food service
9    sanitation manager certificate may be returned by the
10    Director as provided in that Act;
11        (3.5) the State Treasurer may permit the deduction of
12    fees by third-party unclaimed property examiners from the
13    property recovered by the examiners for the State of
14    Illinois during examinations of holders located outside
15    the State under which the Office of the Treasurer has
16    agreed to pay for the examinations based upon a percentage,
17    set by rule by the State Treasurer in accordance with the
18    Illinois Administrative Procedure Revised Uniform
19    Unclaimed Property Act, of the property recovered during
20    the examination; and
21        (4) if the amount of money received does not exceed
22    $500, such money may be retained and need not be paid into
23    the State treasury until the total amount of money so
24    received exceeds $500, or until the next succeeding 1st or
25    15th day of each month (or until the next business day if
26    these days fall on Sunday or a holiday), whichever is

 

 

HB0321- 91 -LRB101 04001 HLH 49009 b

1    earlier, at which earlier time such money shall be paid
2    into the State treasury, except that if a local bank or
3    savings and loan association account has been authorized by
4    law, any balances shall be paid into the State treasury on
5    Monday of each week if more than $500 is to be deposited in
6    any fund.
7Single items of receipt exceeding $10,000 received after 2 p.m.
8on a working day may be deemed to have been received on the
9next working day for purposes of fulfilling the requirement
10that the item be deposited on the day of actual physical
11receipt.
12    No money belonging to or left for the use of the State
13shall be expended or applied except in consequence of an
14appropriation made by law and upon the warrant of the State
15Comptroller. However, payments made by the Comptroller to
16persons by direct deposit need not be made upon the warrant of
17the Comptroller, but if not made upon a warrant, shall be made
18in accordance with Section 9.02 of the State Comptroller Act.
19All moneys so paid into the State treasury shall, unless
20required by some statute to be held in the State treasury in a
21separate or special fund, be covered into the General Revenue
22Fund in the State treasury. Moneys received in the form of
23checks, drafts or similar instruments shall be properly
24endorsed, if necessary, and delivered to the State Treasurer
25for collection. The State Treasurer shall remit such collected
26funds to the depositing officer, board, commission,

 

 

HB0321- 92 -LRB101 04001 HLH 49009 b

1commissioner, department, institution, arm or agency by
2Treasurers Draft or through electronic funds transfer. The
3draft or notification of the electronic funds transfer shall be
4provided to the State Comptroller to allow deposit into the
5appropriate fund.
6    (b) Different time periods for the payment of public funds
7into the State treasury or to the State Treasurer, in excess of
8the periods established in subsection (a) of this Section, but
9not in excess of 30 days after receipt of such funds, may be
10established and revised from time to time by rules or
11regulations promulgated jointly by the State Treasurer and the
12State Comptroller in accordance with the Illinois
13Administrative Procedure Act. The different time periods
14established by rule or regulation under this subsection may
15vary according to the nature and amounts of the funds received,
16the locations at which the funds are received, whether
17compliance with the deposit requirements specified in
18subsection (a) of this Section would be cost effective, and
19such other circumstances and conditions as the promulgating
20authorities consider to be appropriate. The Treasurer and the
21Comptroller shall review all such different time periods
22established pursuant to this subsection every 2 years from the
23establishment thereof and upon such review, unless it is
24determined that it is economically unfeasible for the agency to
25comply with the provisions of subsection (a), shall repeal such
26different time period.

 

 

HB0321- 93 -LRB101 04001 HLH 49009 b

1(Source: P.A. 100-22, eff. 1-1-18.)
 
2    (35 ILCS 5/225 rep.)
3    Section 40. The Illinois Income Tax Act is amended by
4repealing Section 225.
 
5    Section 45. The Counties Code is amended by changing
6Section 3-3034 as follows:
 
7    (55 ILCS 5/3-3034)  (from Ch. 34, par. 3-3034)
8    Sec. 3-3034. Disposition of body. After the inquest the
9coroner may deliver the body or human remains of the deceased
10to the family of the deceased or, if there are no family
11members to accept the body or the remains, then to friends of
12the deceased, if there be any, but if not, the coroner shall
13cause the body or the remains to be decently buried, cremated,
14or donated for medical science purposes, the expenses to be
15paid from the property of the deceased, if there is sufficient,
16if not, by the county. The coroner may not approve the
17cremation or donation of the body if it is necessary to
18preserve the body for law enforcement purposes. If the State
19Treasurer, pursuant to the Revised Uniform Disposition of
20Unclaimed Property Act, delivers human remains to the coroner,
21the coroner shall cause the human remains to be disposed of as
22provided in this Section. If the police department of any
23municipality or county investigates abandoned cremated

 

 

HB0321- 94 -LRB101 04001 HLH 49009 b

1remains, determines that they are human remains, and cannot
2locate the owner of the remains, then the police shall deliver
3the remains to the coroner, and the coroner shall cause the
4remains to be disposed of as provided in this Section.
5(Source: P.A. 100-22, eff. 1-1-18.)
 
6    Section 50. The Illinois Banking Act is amended by changing
7Sections 48, 48.1, 48.3, and 65 as follows:
 
8    (205 ILCS 5/48)
9    Sec. 48. Secretary's powers; duties. The Secretary shall
10have the powers and authority, and is charged with the duties
11and responsibilities designated in this Act, and a State bank
12shall not be subject to any other visitorial power other than
13as authorized by this Act, except those vested in the courts,
14or upon prior consultation with the Secretary, a foreign bank
15regulator with an appropriate supervisory interest in the
16parent or affiliate of a state bank. In the performance of the
17Secretary's duties:
18        (1) The Commissioner shall call for statements from all
19    State banks as provided in Section 47 at least one time
20    during each calendar quarter.
21        (2) (a) The Commissioner, as often as the Commissioner
22    shall deem necessary or proper, and no less frequently than
23    18 months following the preceding examination, shall
24    appoint a suitable person or persons to make an examination

 

 

HB0321- 95 -LRB101 04001 HLH 49009 b

1    of the affairs of every State bank, except that for every
2    eligible State bank, as defined by regulation, the
3    Commissioner in lieu of the examination may accept on an
4    alternating basis the examination made by the eligible
5    State bank's appropriate federal banking agency pursuant
6    to Section 111 of the Federal Deposit Insurance Corporation
7    Improvement Act of 1991, provided the appropriate federal
8    banking agency has made such an examination. A person so
9    appointed shall not be a stockholder or officer or employee
10    of any bank which that person may be directed to examine,
11    and shall have powers to make a thorough examination into
12    all the affairs of the bank and in so doing to examine any
13    of the officers or agents or employees thereof on oath and
14    shall make a full and detailed report of the condition of
15    the bank to the Commissioner. In making the examination the
16    examiners shall include an examination of the affairs of
17    all the affiliates of the bank, as defined in subsection
18    (b) of Section 35.2 of this Act, or subsidiaries of the
19    bank as shall be necessary to disclose fully the conditions
20    of the subsidiaries or affiliates, the relations between
21    the bank and the subsidiaries or affiliates and the effect
22    of those relations upon the affairs of the bank, and in
23    connection therewith shall have power to examine any of the
24    officers, directors, agents, or employees of the
25    subsidiaries or affiliates on oath. After May 31, 1997, the
26    Commissioner may enter into cooperative agreements with

 

 

HB0321- 96 -LRB101 04001 HLH 49009 b

1    state regulatory authorities of other states to provide for
2    examination of State bank branches in those states, and the
3    Commissioner may accept reports of examinations of State
4    bank branches from those state regulatory authorities.
5    These cooperative agreements may set forth the manner in
6    which the other state regulatory authorities may be
7    compensated for examinations prepared for and submitted to
8    the Commissioner.
9        (b) After May 31, 1997, the Commissioner is authorized
10    to examine, as often as the Commissioner shall deem
11    necessary or proper, branches of out-of-state banks. The
12    Commissioner may establish and may assess fees to be paid
13    to the Commissioner for examinations under this subsection
14    (b). The fees shall be borne by the out-of-state bank,
15    unless the fees are borne by the state regulatory authority
16    that chartered the out-of-state bank, as determined by a
17    cooperative agreement between the Commissioner and the
18    state regulatory authority that chartered the out-of-state
19    bank.
20        (2.1) Pursuant to paragraph (a) of subsection (6) of
21    this Section, the Secretary shall adopt rules that ensure
22    consistency and due process in the examination process. The
23    Secretary may also establish guidelines that (i) define the
24    scope of the examination process and (ii) clarify
25    examination items to be resolved. The rules, formal
26    guidance, interpretive letters, or opinions furnished to

 

 

HB0321- 97 -LRB101 04001 HLH 49009 b

1    State banks by the Secretary may be relied upon by the
2    State banks.
3        (2.5) Whenever any State bank, any subsidiary or
4    affiliate of a State bank, or after May 31, 1997, any
5    branch of an out-of-state bank causes to be performed, by
6    contract or otherwise, any bank services for itself,
7    whether on or off its premises:
8            (a) that performance shall be subject to
9        examination by the Commissioner to the same extent as
10        if services were being performed by the bank or, after
11        May 31, 1997, branch of the out-of-state bank itself on
12        its own premises; and
13            (b) the bank or, after May 31, 1997, branch of the
14        out-of-state bank shall notify the Commissioner of the
15        existence of a service relationship. The notification
16        shall be submitted with the first statement of
17        condition (as required by Section 47 of this Act) due
18        after the making of the service contract or the
19        performance of the service, whichever occurs first.
20        The Commissioner shall be notified of each subsequent
21        contract in the same manner.
22        For purposes of this subsection (2.5), the term "bank
23    services" means services such as sorting and posting of
24    checks and deposits, computation and posting of interest
25    and other credits and charges, preparation and mailing of
26    checks, statements, notices, and similar items, or any

 

 

HB0321- 98 -LRB101 04001 HLH 49009 b

1    other clerical, bookkeeping, accounting, statistical, or
2    similar functions performed for a State bank, including but
3    not limited to electronic data processing related to those
4    bank services.
5        (3) The expense of administering this Act, including
6    the expense of the examinations of State banks as provided
7    in this Act, shall to the extent of the amounts resulting
8    from the fees provided for in paragraphs (a), (a-2), and
9    (b) of this subsection (3) be assessed against and borne by
10    the State banks:
11            (a) Each bank shall pay to the Secretary a Call
12        Report Fee which shall be paid in quarterly
13        installments equal to one-fourth of the sum of the
14        annual fixed fee of $800, plus a variable fee based on
15        the assets shown on the quarterly statement of
16        condition delivered to the Secretary in accordance
17        with Section 47 for the preceding quarter according to
18        the following schedule: 16¢ per $1,000 of the first
19        $5,000,000 of total assets, 15¢ per $1,000 of the next
20        $20,000,000 of total assets, 13¢ per $1,000 of the next
21        $75,000,000 of total assets, 9¢ per $1,000 of the next
22        $400,000,000 of total assets, 7¢ per $1,000 of the next
23        $500,000,000 of total assets, and 5¢ per $1,000 of all
24        assets in excess of $1,000,000,000, of the State bank.
25        The Call Report Fee shall be calculated by the
26        Secretary and billed to the banks for remittance at the

 

 

HB0321- 99 -LRB101 04001 HLH 49009 b

1        time of the quarterly statements of condition provided
2        for in Section 47. The Secretary may require payment of
3        the fees provided in this Section by an electronic
4        transfer of funds or an automatic debit of an account
5        of each of the State banks. In case more than one
6        examination of any bank is deemed by the Secretary to
7        be necessary in any examination frequency cycle
8        specified in subsection 2(a) of this Section, and is
9        performed at his direction, the Secretary may assess a
10        reasonable additional fee to recover the cost of the
11        additional examination; provided, however, that an
12        examination conducted at the request of the State
13        Treasurer pursuant to the Uniform Disposition of
14        Unclaimed Property Act shall not be deemed to be an
15        additional examination under this Section. In lieu of
16        the method and amounts set forth in this paragraph (a)
17        for the calculation of the Call Report Fee, the
18        Secretary may specify by rule that the Call Report Fees
19        provided by this Section may be assessed semiannually
20        or some other period and may provide in the rule the
21        formula to be used for calculating and assessing the
22        periodic Call Report Fees to be paid by State banks.
23            (a-1) If in the opinion of the Commissioner an
24        emergency exists or appears likely, the Commissioner
25        may assign an examiner or examiners to monitor the
26        affairs of a State bank with whatever frequency he

 

 

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1        deems appropriate, including but not limited to a daily
2        basis. The reasonable and necessary expenses of the
3        Commissioner during the period of the monitoring shall
4        be borne by the subject bank. The Commissioner shall
5        furnish the State bank a statement of time and expenses
6        if requested to do so within 30 days of the conclusion
7        of the monitoring period.
8            (a-2) On and after January 1, 1990, the reasonable
9        and necessary expenses of the Commissioner during
10        examination of the performance of electronic data
11        processing services under subsection (2.5) shall be
12        borne by the banks for which the services are provided.
13        An amount, based upon a fee structure prescribed by the
14        Commissioner, shall be paid by the banks or, after May
15        31, 1997, branches of out-of-state banks receiving the
16        electronic data processing services along with the
17        Call Report Fee assessed under paragraph (a) of this
18        subsection (3).
19            (a-3) After May 31, 1997, the reasonable and
20        necessary expenses of the Commissioner during
21        examination of the performance of electronic data
22        processing services under subsection (2.5) at or on
23        behalf of branches of out-of-state banks shall be borne
24        by the out-of-state banks, unless those expenses are
25        borne by the state regulatory authorities that
26        chartered the out-of-state banks, as determined by

 

 

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1        cooperative agreements between the Commissioner and
2        the state regulatory authorities that chartered the
3        out-of-state banks.
4            (b) "Fiscal year" for purposes of this Section 48
5        is defined as a period beginning July 1 of any year and
6        ending June 30 of the next year. The Commissioner shall
7        receive for each fiscal year, commencing with the
8        fiscal year ending June 30, 1987, a contingent fee
9        equal to the lesser of the aggregate of the fees paid
10        by all State banks under paragraph (a) of subsection
11        (3) for that year, or the amount, if any, whereby the
12        aggregate of the administration expenses, as defined
13        in paragraph (c), for that fiscal year exceeds the sum
14        of the aggregate of the fees payable by all State banks
15        for that year under paragraph (a) of subsection (3),
16        plus any amounts transferred into the Bank and Trust
17        Company Fund from the State Pensions Fund for that
18        year, plus all other amounts collected by the
19        Commissioner for that year under any other provision of
20        this Act, plus the aggregate of all fees collected for
21        that year by the Commissioner under the Corporate
22        Fiduciary Act, excluding the receivership fees
23        provided for in Section 5-10 of the Corporate Fiduciary
24        Act, and the Foreign Banking Office Act. The aggregate
25        amount of the contingent fee thus arrived at for any
26        fiscal year shall be apportioned amongst, assessed

 

 

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1        upon, and paid by the State banks and foreign banking
2        corporations, respectively, in the same proportion
3        that the fee of each under paragraph (a) of subsection
4        (3), respectively, for that year bears to the aggregate
5        for that year of the fees collected under paragraph (a)
6        of subsection (3). The aggregate amount of the
7        contingent fee, and the portion thereof to be assessed
8        upon each State bank and foreign banking corporation,
9        respectively, shall be determined by the Commissioner
10        and shall be paid by each, respectively, within 120
11        days of the close of the period for which the
12        contingent fee is computed and is payable, and the
13        Commissioner shall give 20 days days' advance notice of
14        the amount of the contingent fee payable by the State
15        bank and of the date fixed by the Commissioner for
16        payment of the fee.
17            (c) The "administration expenses" for any fiscal
18        year shall mean the ordinary and contingent expenses
19        for that year incident to making the examinations
20        provided for by, and for otherwise administering, this
21        Act, the Corporate Fiduciary Act, excluding the
22        expenses paid from the Corporate Fiduciary
23        Receivership account in the Bank and Trust Company
24        Fund, the Foreign Banking Office Act, the Electronic
25        Fund Transfer Act, and the Illinois Bank Examiners'
26        Education Foundation Act, including all salaries and

 

 

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1        other compensation paid for personal services rendered
2        for the State by officers or employees of the State,
3        including the Commissioner and the Deputy
4        Commissioners, communication equipment and services,
5        office furnishings, surety bond premiums, and travel
6        expenses of those officers and employees, employees,
7        expenditures or charges for the acquisition,
8        enlargement or improvement of, or for the use of, any
9        office space, building, or structure, or expenditures
10        for the maintenance thereof or for furnishing heat,
11        light, or power with respect thereto, all to the extent
12        that those expenditures are directly incidental to
13        such examinations or administration. The Commissioner
14        shall not be required by paragraphs (c) or (d-1) of
15        this subsection (3) to maintain in any fiscal year's
16        budget appropriated reserves for accrued vacation and
17        accrued sick leave that is required to be paid to
18        employees of the Commissioner upon termination of
19        their service with the Commissioner in an amount that
20        is more than is reasonably anticipated to be necessary
21        for any anticipated turnover in employees, whether due
22        to normal attrition or due to layoffs, terminations, or
23        resignations.
24            (d) The aggregate of all fees collected by the
25        Secretary under this Act, the Corporate Fiduciary Act,
26        or the Foreign Banking Office Act on and after July 1,

 

 

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1        1979, shall be paid promptly after receipt of the same,
2        accompanied by a detailed statement thereof, into the
3        State treasury and shall be set apart in a special fund
4        to be known as the "Bank and Trust Company Fund",
5        except as provided in paragraph (c) of subsection (11)
6        of this Section. All earnings received from
7        investments of funds in the Bank and Trust Company Fund
8        shall be deposited in the Bank and Trust Company Fund
9        and may be used for the same purposes as fees deposited
10        in that Fund. The amount from time to time deposited
11        into the Bank and Trust Company Fund shall be used: (i)
12        to offset the ordinary administrative expenses of the
13        Secretary as defined in this Section or (ii) as a
14        credit against fees under paragraph (d-1) of this
15        subsection (3). Nothing in this amendatory Act of 1979
16        shall prevent continuing the practice of paying
17        expenses involving salaries, retirement, social
18        security, and State-paid insurance premiums of State
19        officers by appropriations from the General Revenue
20        Fund. However, the General Revenue Fund shall be
21        reimbursed for those payments made on and after July 1,
22        1979, by an annual transfer of funds from the Bank and
23        Trust Company Fund. Moneys in the Bank and Trust
24        Company Fund may be transferred to the Professions
25        Indirect Cost Fund, as authorized under Section
26        2105-300 of the Department of Professional Regulation

 

 

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1        Law of the Civil Administrative Code of Illinois.
2            Notwithstanding provisions in the State Finance
3        Act, as now or hereafter amended, or any other law to
4        the contrary, the sum of $18,788,847 shall be
5        transferred from the Bank and Trust Company Fund to the
6        Financial Institutions Settlement of 2008 Fund on the
7        effective date of this amendatory Act of the 95th
8        General Assembly, or as soon thereafter as practical.
9            Notwithstanding provisions in the State Finance
10        Act, as now or hereafter amended, or any other law to
11        the contrary, the Governor may, during any fiscal year
12        through January 10, 2011, from time to time direct the
13        State Treasurer and Comptroller to transfer a
14        specified sum not exceeding 10% of the revenues to be
15        deposited into the Bank and Trust Company Fund during
16        that fiscal year from that Fund to the General Revenue
17        Fund in order to help defray the State's operating
18        costs for the fiscal year. Notwithstanding provisions
19        in the State Finance Act, as now or hereafter amended,
20        or any other law to the contrary, the total sum
21        transferred during any fiscal year through January 10,
22        2011, from the Bank and Trust Company Fund to the
23        General Revenue Fund pursuant to this provision shall
24        not exceed during any fiscal year 10% of the revenues
25        to be deposited into the Bank and Trust Company Fund
26        during that fiscal year. The State Treasurer and

 

 

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1        Comptroller shall transfer the amounts designated
2        under this Section as soon as may be practicable after
3        receiving the direction to transfer from the Governor.
4            (d-1) Adequate funds shall be available in the Bank
5        and Trust Company Fund to permit the timely payment of
6        administration expenses. In each fiscal year the total
7        administration expenses shall be deducted from the
8        total fees collected by the Commissioner and the
9        remainder transferred into the Cash Flow Reserve
10        Account, unless the balance of the Cash Flow Reserve
11        Account prior to the transfer equals or exceeds
12        one-fourth of the total initial appropriations from
13        the Bank and Trust Company Fund for the subsequent
14        year, in which case the remainder shall be credited to
15        State banks and foreign banking corporations and
16        applied against their fees for the subsequent year. The
17        amount credited to each State bank and foreign banking
18        corporation shall be in the same proportion as the Call
19        Report Fees paid by each for the year bear to the total
20        Call Report Fees collected for the year. If, after a
21        transfer to the Cash Flow Reserve Account is made or if
22        no remainder is available for transfer, the balance of
23        the Cash Flow Reserve Account is less than one-fourth
24        of the total initial appropriations for the subsequent
25        year and the amount transferred is less than 5% of the
26        total Call Report Fees for the year, additional amounts

 

 

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1        needed to make the transfer equal to 5% of the total
2        Call Report Fees for the year shall be apportioned
3        amongst, assessed upon, and paid by the State banks and
4        foreign banking corporations in the same proportion
5        that the Call Report Fees of each, respectively, for
6        the year bear to the total Call Report Fees collected
7        for the year. The additional amounts assessed shall be
8        transferred into the Cash Flow Reserve Account. For
9        purposes of this paragraph (d-1), the calculation of
10        the fees collected by the Commissioner shall exclude
11        the receivership fees provided for in Section 5-10 of
12        the Corporate Fiduciary Act.
13            (e) The Commissioner may upon request certify to
14        any public record in his keeping and shall have
15        authority to levy a reasonable charge for issuing
16        certifications of any public record in his keeping.
17            (f) In addition to fees authorized elsewhere in
18        this Act, the Commissioner may, in connection with a
19        review, approval, or provision of a service, levy a
20        reasonable charge to recover the cost of the review,
21        approval, or service.
22        (4) Nothing contained in this Act shall be construed to
23    limit the obligation relative to examinations and reports
24    of any State bank, deposits in which are to any extent
25    insured by the United States or any agency thereof, nor to
26    limit in any way the powers of the Commissioner with

 

 

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1    reference to examinations and reports of that bank.
2        (5) The nature and condition of the assets in or
3    investment of any bonus, pension, or profit sharing plan
4    for officers or employees of every State bank or, after May
5    31, 1997, branch of an out-of-state bank shall be deemed to
6    be included in the affairs of that State bank or branch of
7    an out-of-state bank subject to examination by the
8    Commissioner under the provisions of subsection (2) of this
9    Section, and if the Commissioner shall find from an
10    examination that the condition of or operation of the
11    investments or assets of the plan is unlawful, fraudulent,
12    or unsafe, or that any trustee has abused his trust, the
13    Commissioner shall, if the situation so found by the
14    Commissioner shall not be corrected to his satisfaction
15    within 60 days after the Commissioner has given notice to
16    the board of directors of the State bank or out-of-state
17    bank of his findings, report the facts to the Attorney
18    General who shall thereupon institute proceedings against
19    the State bank or out-of-state bank, the board of directors
20    thereof, or the trustees under such plan as the nature of
21    the case may require.
22        (6) The Commissioner shall have the power:
23            (a) To promulgate reasonable rules for the purpose
24        of administering the provisions of this Act.
25            (a-5) To impose conditions on any approval issued
26        by the Commissioner if he determines that the

 

 

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1        conditions are necessary or appropriate. These
2        conditions shall be imposed in writing and shall
3        continue in effect for the period prescribed by the
4        Commissioner.
5            (b) To issue orders against any person, if the
6        Commissioner has reasonable cause to believe that an
7        unsafe or unsound banking practice has occurred, is
8        occurring, or is about to occur, if any person has
9        violated, is violating, or is about to violate any law,
10        rule, or written agreement with the Commissioner, or
11        for the purpose of administering the provisions of this
12        Act and any rule promulgated in accordance with this
13        Act.
14            (b-1) To enter into agreements with a bank
15        establishing a program to correct the condition of the
16        bank or its practices.
17            (c) To appoint hearing officers to execute any of
18        the powers granted to the Commissioner under this
19        Section for the purpose of administering this Act and
20        any rule promulgated in accordance with this Act and
21        otherwise to authorize, in writing, an officer or
22        employee of the Office of Banks and Real Estate to
23        exercise his powers under this Act.
24            (d) To subpoena witnesses, to compel their
25        attendance, to administer an oath, to examine any
26        person under oath, and to require the production of any

 

 

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1        relevant books, papers, accounts, and documents in the
2        course of and pursuant to any investigation being
3        conducted, or any action being taken, by the
4        Commissioner in respect of any matter relating to the
5        duties imposed upon, or the powers vested in, the
6        Commissioner under the provisions of this Act or any
7        rule promulgated in accordance with this Act.
8            (e) To conduct hearings.
9        (7) Whenever, in the opinion of the Secretary, any
10    director, officer, employee, or agent of a State bank or
11    any subsidiary or bank holding company of the bank or,
12    after May 31, 1997, of any branch of an out-of-state bank
13    or any subsidiary or bank holding company of the bank shall
14    have violated any law, rule, or order relating to that bank
15    or any subsidiary or bank holding company of the bank,
16    shall have obstructed or impeded any examination or
17    investigation by the Secretary, shall have engaged in an
18    unsafe or unsound practice in conducting the business of
19    that bank or any subsidiary or bank holding company of the
20    bank, or shall have violated any law or engaged or
21    participated in any unsafe or unsound practice in
22    connection with any financial institution or other
23    business entity such that the character and fitness of the
24    director, officer, employee, or agent does not assure
25    reasonable promise of safe and sound operation of the State
26    bank, the Secretary may issue an order of removal. If, in

 

 

HB0321- 111 -LRB101 04001 HLH 49009 b

1    the opinion of the Secretary, any former director, officer,
2    employee, or agent of a State bank or any subsidiary or
3    bank holding company of the bank, prior to the termination
4    of his or her service with that bank or any subsidiary or
5    bank holding company of the bank, violated any law, rule,
6    or order relating to that State bank or any subsidiary or
7    bank holding company of the bank, obstructed or impeded any
8    examination or investigation by the Secretary, engaged in
9    an unsafe or unsound practice in conducting the business of
10    that bank or any subsidiary or bank holding company of the
11    bank, or violated any law or engaged or participated in any
12    unsafe or unsound practice in connection with any financial
13    institution or other business entity such that the
14    character and fitness of the director, officer, employee,
15    or agent would not have assured reasonable promise of safe
16    and sound operation of the State bank, the Secretary may
17    issue an order prohibiting that person from further service
18    with a bank or any subsidiary or bank holding company of
19    the bank as a director, officer, employee, or agent. An
20    order issued pursuant to this subsection shall be served
21    upon the director, officer, employee, or agent. A copy of
22    the order shall be sent to each director of the bank
23    affected by registered mail. A copy of the order shall also
24    be served upon the bank of which he is a director, officer,
25    employee, or agent, whereupon he shall cease to be a
26    director, officer, employee, or agent of that bank. The

 

 

HB0321- 112 -LRB101 04001 HLH 49009 b

1    Secretary may institute a civil action against the
2    director, officer, or agent of the State bank or, after May
3    31, 1997, of the branch of the out-of-state bank against
4    whom any order provided for by this subsection (7) of this
5    Section 48 has been issued, and against the State bank or,
6    after May 31, 1997, out-of-state bank, to enforce
7    compliance with or to enjoin any violation of the terms of
8    the order. Any person who has been the subject of an order
9    of removal or an order of prohibition issued by the
10    Secretary under this subsection or Section 5-6 of the
11    Corporate Fiduciary Act may not thereafter serve as
12    director, officer, employee, or agent of any State bank or
13    of any branch of any out-of-state bank, or of any corporate
14    fiduciary, as defined in Section 1-5.05 of the Corporate
15    Fiduciary Act, or of any other entity that is subject to
16    licensure or regulation by the Division of Banking unless
17    the Secretary has granted prior approval in writing.
18        For purposes of this paragraph (7), "bank holding
19    company" has the meaning prescribed in Section 2 of the
20    Illinois Bank Holding Company Act of 1957.
21        (8) The Commissioner may impose civil penalties of up
22    to $100,000 against any person for each violation of any
23    provision of this Act, any rule promulgated in accordance
24    with this Act, any order of the Commissioner, or any other
25    action which in the Commissioner's discretion is an unsafe
26    or unsound banking practice.

 

 

HB0321- 113 -LRB101 04001 HLH 49009 b

1        (9) The Commissioner may impose civil penalties of up
2    to $100 against any person for the first failure to comply
3    with reporting requirements set forth in the report of
4    examination of the bank and up to $200 for the second and
5    subsequent failures to comply with those reporting
6    requirements.
7        (10) All final administrative decisions of the
8    Commissioner hereunder shall be subject to judicial review
9    pursuant to the provisions of the Administrative Review
10    Law. For matters involving administrative review, venue
11    shall be in either Sangamon County or Cook County.
12        (11) The endowment fund for the Illinois Bank
13    Examiners' Education Foundation shall be administered as
14    follows:
15            (a) (Blank).
16            (b) The Foundation is empowered to receive
17        voluntary contributions, gifts, grants, bequests, and
18        donations on behalf of the Illinois Bank Examiners'
19        Education Foundation from national banks and other
20        persons for the purpose of funding the endowment of the
21        Illinois Bank Examiners' Education Foundation.
22            (c) The aggregate of all special educational fees
23        collected by the Secretary and property received by the
24        Secretary on behalf of the Illinois Bank Examiners'
25        Education Foundation under this subsection (11) on or
26        after June 30, 1986, shall be either (i) promptly paid

 

 

HB0321- 114 -LRB101 04001 HLH 49009 b

1        after receipt of the same, accompanied by a detailed
2        statement thereof, into the State Treasury and shall be
3        set apart in a special fund to be known as "The
4        Illinois Bank Examiners' Education Fund" to be
5        invested by either the Treasurer of the State of
6        Illinois in the Public Treasurers' Investment Pool or
7        in any other investment he is authorized to make or by
8        the Illinois State Board of Investment as the State
9        Banking Board of Illinois may direct or (ii) deposited
10        into an account maintained in a commercial bank or
11        corporate fiduciary in the name of the Illinois Bank
12        Examiners' Education Foundation pursuant to the order
13        and direction of the Board of Trustees of the Illinois
14        Bank Examiners' Education Foundation.
15        (12) (Blank).
16        (13) The Secretary may borrow funds from the General
17    Revenue Fund on behalf of the Bank and Trust Company Fund
18    if the Director of Banking certifies to the Governor that
19    there is an economic emergency affecting banking that
20    requires a borrowing to provide additional funds to the
21    Bank and Trust Company Fund. The borrowed funds shall be
22    paid back within 3 years and shall not exceed the total
23    funding appropriated to the Agency in the previous year.
24        (14) In addition to the fees authorized in this Act,
25    the Secretary may assess reasonable receivership fees
26    against any State bank that does not maintain insurance

 

 

HB0321- 115 -LRB101 04001 HLH 49009 b

1    with the Federal Deposit Insurance Corporation. All fees
2    collected under this subsection (14) shall be paid into the
3    Non-insured Institutions Receivership account in the Bank
4    and Trust Company Fund, as established by the Secretary.
5    The fees assessed under this subsection (14) shall provide
6    for the expenses that arise from the administration of the
7    receivership of any such institution required to pay into
8    the Non-insured Institutions Receivership account, whether
9    pursuant to this Act, the Corporate Fiduciary Act, the
10    Foreign Banking Office Act, or any other Act that requires
11    payments into the Non-insured Institutions Receivership
12    account. The Secretary may establish by rule a reasonable
13    manner of assessing fees under this subsection (14).
14(Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)
 
15    (205 ILCS 5/48.1)  (from Ch. 17, par. 360)
16    Sec. 48.1. Customer financial records; confidentiality.
17    (a) For the purpose of this Section, the term "financial
18records" means any original, any copy, or any summary of:
19        (1) a document granting signature authority over a
20    deposit or account;
21        (2) a statement, ledger card or other record on any
22    deposit or account, which shows each transaction in or with
23    respect to that account;
24        (3) a check, draft or money order drawn on a bank or
25    issued and payable by a bank; or

 

 

HB0321- 116 -LRB101 04001 HLH 49009 b

1        (4) any other item containing information pertaining
2    to any relationship established in the ordinary course of a
3    bank's business between a bank and its customer, including
4    financial statements or other financial information
5    provided by the customer.
6    (b) This Section does not prohibit:
7        (1) The preparation, examination, handling or
8    maintenance of any financial records by any officer,
9    employee or agent of a bank having custody of the records,
10    or the examination of the records by a certified public
11    accountant engaged by the bank to perform an independent
12    audit.
13        (2) The examination of any financial records by, or the
14    furnishing of financial records by a bank to, any officer,
15    employee or agent of (i) the Commissioner of Banks and Real
16    Estate, (ii) after May 31, 1997, a state regulatory
17    authority authorized to examine a branch of a State bank
18    located in another state, (iii) the Comptroller of the
19    Currency, (iv) the Federal Reserve Board, or (v) the
20    Federal Deposit Insurance Corporation for use solely in the
21    exercise of his duties as an officer, employee, or agent.
22        (3) The publication of data furnished from financial
23    records relating to customers where the data cannot be
24    identified to any particular customer or account.
25        (4) The making of reports or returns required under
26    Chapter 61 of the Internal Revenue Code of 1986.

 

 

HB0321- 117 -LRB101 04001 HLH 49009 b

1        (5) Furnishing information concerning the dishonor of
2    any negotiable instrument permitted to be disclosed under
3    the Uniform Commercial Code.
4        (6) The exchange in the regular course of business of
5    (i) credit information between a bank and other banks or
6    financial institutions or commercial enterprises, directly
7    or through a consumer reporting agency or (ii) financial
8    records or information derived from financial records
9    between a bank and other banks or financial institutions or
10    commercial enterprises for the purpose of conducting due
11    diligence pursuant to a purchase or sale involving the bank
12    or assets or liabilities of the bank.
13        (7) The furnishing of information to the appropriate
14    law enforcement authorities where the bank reasonably
15    believes it has been the victim of a crime.
16        (8) The furnishing of information under the Revised
17    Uniform Disposition of Unclaimed Property Act.
18        (9) The furnishing of information under the Illinois
19    Income Tax Act and the Illinois Estate and
20    Generation-Skipping Transfer Tax Act.
21        (10) The furnishing of information under the federal
22    Currency and Foreign Transactions Reporting Act Title 31,
23    United States Code, Section 1051 et seq.
24        (11) The furnishing of information under any other
25    statute that by its terms or by regulations promulgated
26    thereunder requires the disclosure of financial records

 

 

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1    other than by subpoena, summons, warrant, or court order.
2        (12) The furnishing of information about the existence
3    of an account of a person to a judgment creditor of that
4    person who has made a written request for that information.
5        (13) The exchange in the regular course of business of
6    information between commonly owned banks in connection
7    with a transaction authorized under paragraph (23) of
8    Section 5 and conducted at an affiliate facility.
9        (14) The furnishing of information in accordance with
10    the federal Personal Responsibility and Work Opportunity
11    Reconciliation Act of 1996. Any bank governed by this Act
12    shall enter into an agreement for data exchanges with a
13    State agency provided the State agency pays to the bank a
14    reasonable fee not to exceed its actual cost incurred. A
15    bank providing information in accordance with this item
16    shall not be liable to any account holder or other person
17    for any disclosure of information to a State agency, for
18    encumbering or surrendering any assets held by the bank in
19    response to a lien or order to withhold and deliver issued
20    by a State agency, or for any other action taken pursuant
21    to this item, including individual or mechanical errors,
22    provided the action does not constitute gross negligence or
23    willful misconduct. A bank shall have no obligation to
24    hold, encumber, or surrender assets until it has been
25    served with a subpoena, summons, warrant, court or
26    administrative order, lien, or levy.

 

 

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1        (15) The exchange in the regular course of business of
2    information between a bank and any commonly owned affiliate
3    of the bank, subject to the provisions of the Financial
4    Institutions Insurance Sales Law.
5        (16) The furnishing of information to law enforcement
6    authorities, the Illinois Department on Aging and its
7    regional administrative and provider agencies, the
8    Department of Human Services Office of Inspector General,
9    or public guardians: (i) upon subpoena by the investigatory
10    entity or the guardian, or (ii) if there is suspicion by
11    the bank that a customer who is an elderly person or person
12    with a disability has been or may become the victim of
13    financial exploitation. For the purposes of this item (16),
14    the term: (i) "elderly person" means a person who is 60 or
15    more years of age, (ii) "disabled person" means a person
16    who has or reasonably appears to the bank to have a
17    physical or mental disability that impairs his or her
18    ability to seek or obtain protection from or prevent
19    financial exploitation, and (iii) "financial exploitation"
20    means tortious or illegal use of the assets or resources of
21    an elderly or disabled person, and includes, without
22    limitation, misappropriation of the elderly or disabled
23    person's assets or resources by undue influence, breach of
24    fiduciary relationship, intimidation, fraud, deception,
25    extortion, or the use of assets or resources in any manner
26    contrary to law. A bank or person furnishing information

 

 

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1    pursuant to this item (16) shall be entitled to the same
2    rights and protections as a person furnishing information
3    under the Adult Protective Services Act and the Illinois
4    Domestic Violence Act of 1986.
5        (17) The disclosure of financial records or
6    information as necessary to effect, administer, or enforce
7    a transaction requested or authorized by the customer, or
8    in connection with:
9            (A) servicing or processing a financial product or
10        service requested or authorized by the customer;
11            (B) maintaining or servicing a customer's account
12        with the bank; or
13            (C) a proposed or actual securitization or
14        secondary market sale (including sales of servicing
15        rights) related to a transaction of a customer.
16        Nothing in this item (17), however, authorizes the sale
17    of the financial records or information of a customer
18    without the consent of the customer.
19        (18) The disclosure of financial records or
20    information as necessary to protect against actual or
21    potential fraud, unauthorized transactions, claims, or
22    other liability.
23        (19)(A) (a) The disclosure of financial records or
24    information related to a private label credit program
25    between a financial institution and a private label party
26    in connection with that private label credit program. Such

 

 

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1    information is limited to outstanding balance, available
2    credit, payment and performance and account history,
3    product references, purchase information, and information
4    related to the identity of the customer.
5        (B)(1) For purposes of this paragraph (19) of
6    subsection (b) of Section 48.1, a "private label credit
7    program" means a credit program involving a financial
8    institution and a private label party that is used by a
9    customer of the financial institution and the private label
10    party primarily for payment for goods or services sold,
11    manufactured, or distributed by a private label party.
12        (2) For purposes of this paragraph (19) of subsection
13    (b) of Section 48.1, a "private label party" means, with
14    respect to a private label credit program, any of the
15    following: a retailer, a merchant, a manufacturer, a trade
16    group, or any such person's affiliate, subsidiary, member,
17    agent, or service provider.
18        (20)(A) (a) The furnishing of financial records of a
19    customer to the Department to aid the Department's initial
20    determination or subsequent re-determination of the
21    customer's eligibility for Medicaid and Medicaid long-term
22    care benefits for long-term care services, provided that
23    the bank receives the written consent and authorization of
24    the customer, which shall:
25            (1) have the customer's signature notarized;
26            (2) be signed by at least one witness who certifies

 

 

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1        that he or she believes the customer to be of sound
2        mind and memory;
3            (3) be tendered to the bank at the earliest
4        practicable time following its execution,
5        certification, and notarization;
6            (4) specifically limit the disclosure of the
7        customer's financial records to the Department; and
8            (5) be in substantially the following form:
 
9
CUSTOMER CONSENT AND AUTHORIZATION
10
FOR RELEASE OF FINANCIAL RECORDS

 
11I, ......................................., hereby authorize 
12       (Name of Customer) 
 
13............................................................. 
14(Name of Financial Institution)
 
15............................................................. 
16(Address of Financial Institution)
 
17to disclose the following financial records:
 
18any and all information concerning my deposit, savings, money
19market, certificate of deposit, individual retirement,
20retirement plan, 401(k) plan, incentive plan, employee benefit

 

 

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1plan, mutual fund and loan accounts (including, but not limited
2to, any indebtedness or obligation for which I am a
3co-borrower, co-obligor, guarantor, or surety), and any and all
4other accounts in which I have an interest and any other
5information regarding me in the possession of the Financial
6Institution,
 
7to the Illinois Department of Human Services or the Illinois
8Department of Healthcare and Family Services, or both ("the
9Department"), for the following purpose(s):
 
10to aid in the initial determination or re-determination by the
11State of Illinois of my eligibility for Medicaid long-term care
12benefits, pursuant to applicable law.
 
13I understand that this Consent and Authorization may be revoked
14by me in writing at any time before my financial records, as
15described above, are disclosed, and that this Consent and
16Authorization is valid until the Financial Institution
17receives my written revocation. This Consent and Authorization
18shall constitute valid authorization for the Department
19identified above to inspect all such financial records set
20forth above, and to request and receive copies of such
21financial records from the Financial Institution (subject to
22such records search and reproduction reimbursement policies as
23the Financial Institution may have in place). An executed copy

 

 

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1of this Consent and Authorization shall be sufficient and as
2good as the original and permission is hereby granted to honor
3a photostatic or electronic copy of this Consent and
4Authorization. Disclosure is strictly limited to the
5Department identified above and no other person or entity shall
6receive my financial records pursuant to this Consent and
7Authorization. By signing this form, I agree to indemnify and
8hold the Financial Institution harmless from any and all
9claims, demands, and losses, including reasonable attorneys
10fees and expenses, arising from or incurred in its reliance on
11this Consent and Authorization. As used herein, "Customer"
12shall mean "Member" if the Financial Institution is a credit
13union.
 
14....................... ...................... 
15(Date)                  (Signature of Customer)             
 
16                         ...................... 
17                         ...................... 
18                         (Address of Customer) 
 
19                         ...................... 
20                         (Customer's birth date) 
21                         (month/day/year) 
 
22The undersigned witness certifies that .................,

 

 

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1known to me to be the same person whose name is subscribed as
2the customer to the foregoing Consent and Authorization,
3appeared before me and the notary public and acknowledged
4signing and delivering the instrument as his or her free and
5voluntary act for the uses and purposes therein set forth. I
6believe him or her to be of sound mind and memory. The
7undersigned witness also certifies that the witness is not an
8owner, operator, or relative of an owner or operator of a
9long-term care facility in which the customer is a patient or
10resident.
 
11Dated: ................. ...................... 
12                         (Signature of Witness) 
 
13                         ...................... 
14                         (Print Name of Witness) 
 
15                         ...................... 
16                         ...................... 
17                         (Address of Witness) 
 
18State of Illinois)
19                 ) ss.
20County of .......)
 
21The undersigned, a notary public in and for the above county

 

 

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1and state, certifies that .........., known to me to be the
2same person whose name is subscribed as the customer to the
3foregoing Consent and Authorization, appeared before me
4together with the witness, .........., in person and
5acknowledged signing and delivering the instrument as the free
6and voluntary act of the customer for the uses and purposes
7therein set forth.
 
8Dated:.......................................................
9Notary Public:...............................................
10My commission expires:.......................................
 
11        (B) (b) In no event shall the bank distribute the
12    customer's financial records to the long-term care
13    facility from which the customer seeks initial or
14    continuing residency or long-term care services.
15        (C) (c) A bank providing financial records of a
16    customer in good faith relying on a consent and
17    authorization executed and tendered in accordance with
18    this paragraph (20) shall not be liable to the customer or
19    any other person in relation to the bank's disclosure of
20    the customer's financial records to the Department. The
21    customer signing the consent and authorization shall
22    indemnify and hold the bank harmless that relies in good
23    faith upon the consent and authorization and incurs a loss
24    because of such reliance. The bank recovering under this

 

 

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1    indemnification provision shall also be entitled to
2    reasonable attorney's fees and the expenses of recovery.
3        (D) (d) A bank shall be reimbursed by the customer for
4    all costs reasonably necessary and directly incurred in
5    searching for, reproducing, and disclosing a customer's
6    financial records required or requested to be produced
7    pursuant to any consent and authorization executed under
8    this paragraph (20). The requested financial records shall
9    be delivered to the Department within 10 days after
10    receiving a properly executed consent and authorization or
11    at the earliest practicable time thereafter if the
12    requested records cannot be delivered within 10 days, but
13    delivery may be delayed until the final reimbursement of
14    all costs is received by the bank. The bank may honor a
15    photostatic or electronic copy of a properly executed
16    consent and authorization.
17        (E) (e) Nothing in this paragraph (20) shall impair,
18    abridge, or abrogate the right of a customer to:
19            (1) directly disclose his or her financial records
20        to the Department or any other person; or
21            (2) authorize his or her attorney or duly appointed
22        agent to request and obtain the customer's financial
23        records and disclose those financial records to the
24        Department.
25        (F) (f) For purposes of this paragraph (20),
26    "Department" means the Department of Human Services and the

 

 

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1    Department of Healthcare and Family Services or any
2    successor administrative agency of either agency.
3        (b)(1) For purposes of this paragraph (19) of
4    subsection (b) of Section 48.1, a "private label credit
5    program" means a credit program involving a financial
6    institution and a private label party that is used by a
7    customer of the financial institution and the private label
8    party primarily for payment for goods or services sold,
9    manufactured, or distributed by a private label party.
10        (2) For purposes of this paragraph (19) of subsection
11    (b) of Section 48.1, a "private label party" means, with
12    respect to a private label credit program, any of the
13    following: a retailer, a merchant, a manufacturer, a trade
14    group, or any such person's affiliate, subsidiary, member,
15    agent, or service provider.
16    (c) Except as otherwise provided by this Act, a bank may
17not disclose to any person, except to the customer or his duly
18authorized agent, any financial records or financial
19information obtained from financial records relating to that
20customer of that bank unless:
21        (1) the customer has authorized disclosure to the
22    person;
23        (2) the financial records are disclosed in response to
24    a lawful subpoena, summons, warrant, citation to discover
25    assets, or court order which meets the requirements of
26    subsection (d) of this Section; or

 

 

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1        (3) the bank is attempting to collect an obligation
2    owed to the bank and the bank complies with the provisions
3    of Section 2I of the Consumer Fraud and Deceptive Business
4    Practices Act.
5    (d) A bank shall disclose financial records under paragraph
6(2) of subsection (c) of this Section under a lawful subpoena,
7summons, warrant, citation to discover assets, or court order
8only after the bank mails a copy of the subpoena, summons,
9warrant, citation to discover assets, or court order to the
10person establishing the relationship with the bank, if living,
11and, otherwise his personal representative, if known, at his
12last known address by first class mail, postage prepaid, unless
13the bank is specifically prohibited from notifying the person
14by order of court or by applicable State or federal law. A bank
15shall not mail a copy of a subpoena to any person pursuant to
16this subsection if the subpoena was issued by a grand jury
17under the Statewide Grand Jury Act.
18    (e) Any officer or employee of a bank who knowingly and
19willfully furnishes financial records in violation of this
20Section is guilty of a business offense and, upon conviction,
21shall be fined not more than $1,000.
22    (f) Any person who knowingly and willfully induces or
23attempts to induce any officer or employee of a bank to
24disclose financial records in violation of this Section is
25guilty of a business offense and, upon conviction, shall be
26fined not more than $1,000.

 

 

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1    (g) A bank shall be reimbursed for costs that are
2reasonably necessary and that have been directly incurred in
3searching for, reproducing, or transporting books, papers,
4records, or other data required or requested to be produced
5pursuant to a lawful subpoena, summons, warrant, citation to
6discover assets, or court order. The Commissioner shall
7determine the rates and conditions under which payment may be
8made.
9(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
10100-664, eff. 1-1-19; 100-888, eff. 8-14-18; revised
1110-22-18.)
 
12    (205 ILCS 5/48.3)  (from Ch. 17, par. 360.2)
13    Sec. 48.3. Disclosure of reports of examinations and
14confidential supervisory information; limitations.
15    (a) Any report of examination, visitation, or
16investigation prepared by the Secretary under this Act, the
17Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
18Illinois Bank Holding Company Act of 1957, and the Foreign
19Banking Office Act, any report of examination, visitation, or
20investigation prepared by the state regulatory authority of
21another state that examines a branch of an Illinois State bank
22in that state, any document or record prepared or obtained in
23connection with or relating to any examination, visitation, or
24investigation, and any record prepared or obtained by the
25Secretary to the extent that the record summarizes or contains

 

 

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1information derived from any report, document, or record
2described in this subsection shall be deemed "confidential
3supervisory information". Confidential supervisory information
4shall not include any information or record routinely prepared
5by a bank or other financial institution and maintained in the
6ordinary course of business or any information or record that
7is required to be made publicly available pursuant to State or
8federal law or rule. Confidential supervisory information
9shall be the property of the Secretary and shall only be
10disclosed under the circumstances and for the purposes set
11forth in this Section.
12     The Secretary may disclose confidential supervisory
13information only under the following circumstances:
14        (1) The Secretary may furnish confidential supervisory
15    information to the Board of Governors of the Federal
16    Reserve System, the federal reserve bank of the federal
17    reserve district in which the State bank is located or in
18    which the parent or other affiliate of the State bank is
19    located, any official or examiner thereof duly accredited
20    for the purpose, or any other state regulator, federal
21    regulator, or in the case of a foreign bank possessing a
22    certificate of authority pursuant to the Foreign Banking
23    Office Act or a license pursuant to the Foreign Bank
24    Representative Office Act, the bank regulator in the
25    country where the foreign bank is chartered, that the
26    Secretary determines to have an appropriate regulatory

 

 

HB0321- 132 -LRB101 04001 HLH 49009 b

1    interest. Nothing contained in this Act shall be construed
2    to limit the obligation of any member State bank to comply
3    with the requirements relative to examinations and reports
4    of the Federal Reserve Act and of the Board of Governors of
5    the Federal Reserve System or the federal reserve bank of
6    the federal reserve district in which the bank is located,
7    nor to limit in any way the powers of the Secretary with
8    reference to examinations and reports.
9        (2) The Secretary may furnish confidential supervisory
10    information to the United States, any agency thereof that
11    has insured a bank's deposits in whole or in part, or any
12    official or examiner thereof duly accredited for the
13    purpose. Nothing contained in this Act shall be construed
14    to limit the obligation relative to examinations and
15    reports of any State bank, deposits in which are to any
16    extent insured by the United States, any agency thereof,
17    nor to limit in any way the powers of the Secretary with
18    reference to examination and reports of such bank.
19        (2.5) The Secretary may furnish confidential
20    supervisory information to a Federal Home Loan Bank in
21    connection with any bank that is a member of the Federal
22    Home Loan Bank or in connection with any application by the
23    bank before the Federal Home Loan Bank. The confidential
24    supervisory information shall remain the property of the
25    Secretary and may not be further disclosed without the
26    Secretary's permission.

 

 

HB0321- 133 -LRB101 04001 HLH 49009 b

1        (3) The Secretary may furnish confidential supervisory
2    information to the appropriate law enforcement authorities
3    when the Secretary reasonably believes a bank, which the
4    Secretary has caused to be examined, has been a victim of a
5    crime.
6        (4) The Secretary may furnish confidential supervisory
7    information relating to a bank or other financial
8    institution, which the Secretary has caused to be examined,
9    to be sent to the administrator of the Revised Uniform
10    Disposition of Unclaimed Property Act.
11        (5) The Secretary may furnish confidential supervisory
12    information relating to a bank or other financial
13    institution, which the Secretary has caused to be examined,
14    relating to its performance of obligations under the
15    Illinois Income Tax Act and the Illinois Estate and
16    Generation-Skipping Transfer Tax Act to the Illinois
17    Department of Revenue.
18        (6) The Secretary may furnish confidential supervisory
19    information relating to a bank or other financial
20    institution, which the Secretary has caused to be examined,
21    under the federal Currency and Foreign Transactions
22    Reporting Act, Title 31, United States Code, Section 1051
23    et seq.
24        (6.5) The Secretary may furnish confidential
25    supervisory information to any other agency or entity that
26    the Secretary determines to have a legitimate regulatory

 

 

HB0321- 134 -LRB101 04001 HLH 49009 b

1    interest.
2        (7) The Secretary may furnish confidential supervisory
3    information under any other statute that by its terms or by
4    regulations promulgated thereunder requires the disclosure
5    of financial records other than by subpoena, summons,
6    warrant, or court order.
7        (8) At the request of the affected bank or other
8    financial institution, the Secretary may furnish
9    confidential supervisory information relating to a bank or
10    other financial institution, which the Secretary has
11    caused to be examined, in connection with the obtaining of
12    insurance coverage or the pursuit of an insurance claim for
13    or on behalf of the bank or other financial institution;
14    provided that, when possible, the Secretary shall disclose
15    only relevant information while maintaining the
16    confidentiality of financial records not relevant to such
17    insurance coverage or claim and, when appropriate, may
18    delete identifying data relating to any person or
19    individual.
20        (9) The Secretary may furnish a copy of a report of any
21    examination performed by the Secretary of the condition and
22    affairs of any electronic data processing entity to the
23    banks serviced by the electronic data processing entity.
24        (10) In addition to the foregoing circumstances, the
25    Secretary may, but is not required to, furnish confidential
26    supervisory information under the same circumstances

 

 

HB0321- 135 -LRB101 04001 HLH 49009 b

1    authorized for the bank or financial institution pursuant
2    to subsection (b) of this Section, except that the
3    Secretary shall provide confidential supervisory
4    information under circumstances described in paragraph (3)
5    of subsection (b) of this Section only upon the request of
6    the bank or other financial institution.
7    (b) A bank or other financial institution or its officers,
8agents, and employees may disclose confidential supervisory
9information only under the following circumstances:
10        (1) to the board of directors of the bank or other
11    financial institution, as well as the president,
12    vice-president, cashier, and other officers of the bank or
13    other financial institution to whom the board of directors
14    may delegate duties with respect to compliance with
15    recommendations for action, and to the board of directors
16    of a bank holding company that owns at least 80% of the
17    outstanding stock of the bank or other financial
18    institution;
19        (2) to attorneys for the bank or other financial
20    institution and to a certified public accountant engaged by
21    the State bank or financial institution to perform an
22    independent audit provided that the attorney or certified
23    public accountant shall not permit the confidential
24    supervisory information to be further disseminated;
25        (3) to any person who seeks to acquire a controlling
26    interest in, or who seeks to merge with, the bank or

 

 

HB0321- 136 -LRB101 04001 HLH 49009 b

1    financial institution, provided that all attorneys,
2    certified public accountants, officers, agents, or
3    employees of that person shall agree to be bound to respect
4    the confidentiality of the confidential supervisory
5    information and to not further disseminate the information
6    therein contained;
7        (3.5) to a Federal Home Loan Bank of which it is a
8    member;
9        (4) (blank);
10        (4.5) to any attorney, accountant, consultant, or
11    other professional as needed to comply with any enforcement
12    action issued by the Secretary; or
13        (5) to the bank's insurance company in relation to an
14    insurance claim or the effort by the bank to procure
15    insurance coverage, provided that, when possible, the bank
16    shall disclose only information that is relevant to the
17    insurance claim or that is necessary to procure the
18    insurance coverage, while maintaining the confidentiality
19    of financial information pertaining to customers. When
20    appropriate, the bank may delete identifying data relating
21    to any person.
22    The disclosure of confidential supervisory information by
23a bank or other financial institution pursuant to this
24subsection (b) and the disclosure of information to the
25Secretary or other regulatory agency in connection with any
26examination, visitation, or investigation shall not constitute

 

 

HB0321- 137 -LRB101 04001 HLH 49009 b

1a waiver of any legal privilege otherwise available to the bank
2or other financial institution with respect to the information.
3    (c) (1) Notwithstanding any other provision of this Act or
4any other law, confidential supervisory information shall be
5the property of the Secretary and shall be privileged from
6disclosure to any person except as provided in this Section. No
7person in possession of confidential supervisory information
8may disclose that information for any reason or under any
9circumstances not specified in this Section without the prior
10authorization of the Secretary. Any person upon whom a demand
11for production of confidential supervisory information is
12made, whether by subpoena, order, or other judicial or
13administrative process, must withhold production of the
14confidential supervisory information and must notify the
15Secretary of the demand, at which time the Secretary is
16authorized to intervene for the purpose of enforcing the
17limitations of this Section or seeking the withdrawal or
18termination of the attempt to compel production of the
19confidential supervisory information.
20    (2) Any request for discovery or disclosure of confidential
21supervisory information, whether by subpoena, order, or other
22judicial or administrative process, shall be made to the
23Secretary, and the Secretary shall determine within 15 days
24whether to disclose the information pursuant to procedures and
25standards that the Secretary shall establish by rule. If the
26Secretary determines that such information will not be

 

 

HB0321- 138 -LRB101 04001 HLH 49009 b

1disclosed, the Secretary's decision shall be subject to
2judicial review under the provisions of the Administrative
3Review Law, and venue shall be in either Sangamon County or
4Cook County.
5    (3) Any court order that compels disclosure of confidential
6supervisory information may be immediately appealed by the
7Secretary, and the order shall be automatically stayed pending
8the outcome of the appeal.
9    (d) If any officer, agent, attorney, or employee of a bank
10or financial institution knowingly and willfully furnishes
11confidential supervisory information in violation of this
12Section, the Secretary may impose a civil monetary penalty up
13to $1,000 for the violation against the officer, agent,
14attorney, or employee.
15(Source: P.A. 100-22, eff 1-1-18; 100-64, eff. 8-11-17;
16100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)
 
17    (205 ILCS 5/65)  (from Ch. 17, par. 377)
18    Sec. 65. Dividends; dissolution. From time to time during a
19receivership other than a receivership conducted by the Federal
20Deposit Insurance Corporation, the Commissioner shall make and
21pay from monies of the bank a ratable dividend on all claims as
22may be proved to his or her satisfaction or adjudicated by the
23court. Claims so proven or adjudicated shall bear interest at
24the rate of 3% per annum from the date of the appointment of
25the receiver to the date of payment, but all dividends on a

 

 

HB0321- 139 -LRB101 04001 HLH 49009 b

1claim shall be applied first to principal. In computing the
2amount of any dividend to be paid, if the Commissioner deems it
3desirable in the interests of economy of administration and to
4the interest of the bank and its creditors, he or she may pay
5up to the amount of $10 of each claim or unpaid portion thereof
6in full. As the proceeds of the assets of the bank are
7collected in the course of liquidation, the Commissioner shall
8make and pay further dividends on all claims previously proven
9or adjudicated. After one year from the entry of a judgment of
10dissolution, all unclaimed dividends shall be remitted to the
11State Treasurer in accordance with the Revised Uniform
12Disposition of Unclaimed Property Act, as now or hereafter
13amended, together with a list of all unpaid claimants, their
14last known addresses and the amounts unpaid.
15(Source: P.A. 100-22, eff. 1-1-18.)
 
16    Section 55. The Savings Bank Act is amended by changing
17Sections 4013, 9012, and 10090 as follows:
 
18    (205 ILCS 205/4013)  (from Ch. 17, par. 7304-13)
19    Sec. 4013. Access to books and records; communication with
20members and shareholders.
21    (a) Every member or shareholder shall have the right to
22inspect books and records of the savings bank that pertain to
23his accounts. Otherwise, the right of inspection and
24examination of the books and records shall be limited as

 

 

HB0321- 140 -LRB101 04001 HLH 49009 b

1provided in this Act, and no other person shall have access to
2the books and records nor shall be entitled to a list of the
3members or shareholders.
4    (b) For the purpose of this Section, the term "financial
5records" means any original, any copy, or any summary of (1) a
6document granting signature authority over a deposit or
7account; (2) a statement, ledger card, or other record on any
8deposit or account that shows each transaction in or with
9respect to that account; (3) a check, draft, or money order
10drawn on a savings bank or issued and payable by a savings
11bank; or (4) any other item containing information pertaining
12to any relationship established in the ordinary course of a
13savings bank's business between a savings bank and its
14customer, including financial statements or other financial
15information provided by the member or shareholder.
16    (c) This Section does not prohibit:
17        (1) The preparation, examination, handling, or
18    maintenance of any financial records by any officer,
19    employee, or agent of a savings bank having custody of
20    records or examination of records by a certified public
21    accountant engaged by the savings bank to perform an
22    independent audit.
23        (2) The examination of any financial records by, or the
24    furnishing of financial records by a savings bank to, any
25    officer, employee, or agent of the Commissioner of Banks
26    and Real Estate or the federal depository institution

 

 

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1    regulator for use solely in the exercise of his duties as
2    an officer, employee, or agent.
3        (3) The publication of data furnished from financial
4    records relating to members or holders of capital where the
5    data cannot be identified to any particular member,
6    shareholder, or account.
7        (4) The making of reports or returns required under
8    Chapter 61 of the Internal Revenue Code of 1986.
9        (5) Furnishing information concerning the dishonor of
10    any negotiable instrument permitted to be disclosed under
11    the Uniform Commercial Code.
12        (6) The exchange in the regular course of business of
13    (i) credit information between a savings bank and other
14    savings banks or financial institutions or commercial
15    enterprises, directly or through a consumer reporting
16    agency or (ii) financial records or information derived
17    from financial records between a savings bank and other
18    savings banks or financial institutions or commercial
19    enterprises for the purpose of conducting due diligence
20    pursuant to a purchase or sale involving the savings bank
21    or assets or liabilities of the savings bank.
22        (7) The furnishing of information to the appropriate
23    law enforcement authorities where the savings bank
24    reasonably believes it has been the victim of a crime.
25        (8) The furnishing of information pursuant to the
26    Revised Uniform Disposition of Unclaimed Property Act.

 

 

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1        (9) The furnishing of information pursuant to the
2    Illinois Income Tax Act and the Illinois Estate and
3    Generation-Skipping Transfer Tax Act.
4        (10) The furnishing of information pursuant to the
5    federal Currency and Foreign Transactions Reporting Act,
6    (Title 31, United States Code, Section 1051 et seq.).
7        (11) The furnishing of information pursuant to any
8    other statute which by its terms or by regulations
9    promulgated thereunder requires the disclosure of
10    financial records other than by subpoena, summons,
11    warrant, or court order.
12        (12) The furnishing of information in accordance with
13    the federal Personal Responsibility and Work Opportunity
14    Reconciliation Act of 1996. Any savings bank governed by
15    this Act shall enter into an agreement for data exchanges
16    with a State agency provided the State agency pays to the
17    savings bank a reasonable fee not to exceed its actual cost
18    incurred. A savings bank providing information in
19    accordance with this item shall not be liable to any
20    account holder or other person for any disclosure of
21    information to a State agency, for encumbering or
22    surrendering any assets held by the savings bank in
23    response to a lien or order to withhold and deliver issued
24    by a State agency, or for any other action taken pursuant
25    to this item, including individual or mechanical errors,
26    provided the action does not constitute gross negligence or

 

 

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1    willful misconduct. A savings bank shall have no obligation
2    to hold, encumber, or surrender assets until it has been
3    served with a subpoena, summons, warrant, court or
4    administrative order, lien, or levy.
5        (13) The furnishing of information to law enforcement
6    authorities, the Illinois Department on Aging and its
7    regional administrative and provider agencies, the
8    Department of Human Services Office of Inspector General,
9    or public guardians: (i) upon subpoena by the investigatory
10    entity or the guardian, or (ii) if there is suspicion by
11    the savings bank that a customer who is an elderly person
12    or person with a disability has been or may become the
13    victim of financial exploitation. For the purposes of this
14    item (13), the term: (i) "elderly person" means a person
15    who is 60 or more years of age, (ii) "person with a
16    disability" means a person who has or reasonably appears to
17    the savings bank to have a physical or mental disability
18    that impairs his or her ability to seek or obtain
19    protection from or prevent financial exploitation, and
20    (iii) "financial exploitation" means tortious or illegal
21    use of the assets or resources of an elderly person or
22    person with a disability, and includes, without
23    limitation, misappropriation of the assets or resources of
24    the elderly person or person with a disability by undue
25    influence, breach of fiduciary relationship, intimidation,
26    fraud, deception, extortion, or the use of assets or

 

 

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1    resources in any manner contrary to law. A savings bank or
2    person furnishing information pursuant to this item (13)
3    shall be entitled to the same rights and protections as a
4    person furnishing information under the Adult Protective
5    Services Act and the Illinois Domestic Violence Act of
6    1986.
7        (14) The disclosure of financial records or
8    information as necessary to effect, administer, or enforce
9    a transaction requested or authorized by the member or
10    holder of capital, or in connection with:
11            (A) servicing or processing a financial product or
12        service requested or authorized by the member or holder
13        of capital;
14            (B) maintaining or servicing an account of a member
15        or holder of capital with the savings bank; or
16            (C) a proposed or actual securitization or
17        secondary market sale (including sales of servicing
18        rights) related to a transaction of a member or holder
19        of capital.
20        Nothing in this item (14), however, authorizes the sale
21    of the financial records or information of a member or
22    holder of capital without the consent of the member or
23    holder of capital.
24        (15) The exchange in the regular course of business of
25    information between a savings bank and any commonly owned
26    affiliate of the savings bank, subject to the provisions of

 

 

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1    the Financial Institutions Insurance Sales Law.
2        (16) The disclosure of financial records or
3    information as necessary to protect against or prevent
4    actual or potential fraud, unauthorized transactions,
5    claims, or other liability.
6        (17)(a) The disclosure of financial records or
7    information related to a private label credit program
8    between a financial institution and a private label party
9    in connection with that private label credit program. Such
10    information is limited to outstanding balance, available
11    credit, payment and performance and account history,
12    product references, purchase information, and information
13    related to the identity of the customer.
14        (b)(1) For purposes of this paragraph (17) of
15    subsection (c) of Section 4013, a "private label credit
16    program" means a credit program involving a financial
17    institution and a private label party that is used by a
18    customer of the financial institution and the private label
19    party primarily for payment for goods or services sold,
20    manufactured, or distributed by a private label party.
21        (2) For purposes of this paragraph (17) of subsection
22    (c) of Section 4013, a "private label party" means, with
23    respect to a private label credit program, any of the
24    following: a retailer, a merchant, a manufacturer, a trade
25    group, or any such person's affiliate, subsidiary, member,
26    agent, or service provider.

 

 

HB0321- 146 -LRB101 04001 HLH 49009 b

1        (18)(a) The furnishing of financial records of a
2    customer to the Department to aid the Department's initial
3    determination or subsequent re-determination of the
4    customer's eligibility for Medicaid and Medicaid long-term
5    care benefits for long-term care services, provided that
6    the savings bank receives the written consent and
7    authorization of the customer, which shall:
8            (1) have the customer's signature notarized;
9            (2) be signed by at least one witness who certifies
10        that he or she believes the customer to be of sound
11        mind and memory;
12            (3) be tendered to the savings bank at the earliest
13        practicable time following its execution,
14        certification, and notarization;
15            (4) specifically limit the disclosure of the
16        customer's financial records to the Department; and
17            (5) be in substantially the following form:
 
18
CUSTOMER CONSENT AND AUTHORIZATION
19
FOR RELEASE OF FINANCIAL RECORDS

 
20I, ......................................., hereby authorize 
21       (Name of Customer) 
 
22............................................................. 
23(Name of Financial Institution)
 

 

 

HB0321- 147 -LRB101 04001 HLH 49009 b

1............................................................. 
2(Address of Financial Institution)
 
3to disclose the following financial records:
 
4any and all information concerning my deposit, savings, money
5market, certificate of deposit, individual retirement,
6retirement plan, 401(k) plan, incentive plan, employee benefit
7plan, mutual fund and loan accounts (including, but not limited
8to, any indebtedness or obligation for which I am a
9co-borrower, co-obligor, guarantor, or surety), and any and all
10other accounts in which I have an interest and any other
11information regarding me in the possession of the Financial
12Institution,
 
13to the Illinois Department of Human Services or the Illinois
14Department of Healthcare and Family Services, or both ("the
15Department"), for the following purpose(s):
 
16to aid in the initial determination or re-determination by the
17State of Illinois of my eligibility for Medicaid long-term care
18benefits, pursuant to applicable law.
 
19I understand that this Consent and Authorization may be revoked
20by me in writing at any time before my financial records, as

 

 

HB0321- 148 -LRB101 04001 HLH 49009 b

1described above, are disclosed, and that this Consent and
2Authorization is valid until the Financial Institution
3receives my written revocation. This Consent and Authorization
4shall constitute valid authorization for the Department
5identified above to inspect all such financial records set
6forth above, and to request and receive copies of such
7financial records from the Financial Institution (subject to
8such records search and reproduction reimbursement policies as
9the Financial Institution may have in place). An executed copy
10of this Consent and Authorization shall be sufficient and as
11good as the original and permission is hereby granted to honor
12a photostatic or electronic copy of this Consent and
13Authorization. Disclosure is strictly limited to the
14Department identified above and no other person or entity shall
15receive my financial records pursuant to this Consent and
16Authorization. By signing this form, I agree to indemnify and
17hold the Financial Institution harmless from any and all
18claims, demands, and losses, including reasonable attorneys
19fees and expenses, arising from or incurred in its reliance on
20this Consent and Authorization. As used herein, "Customer"
21shall mean "Member" if the Financial Institution is a credit
22union.
 
23....................... ...................... 
24(Date)                  (Signature of Customer)             
 

 

 

HB0321- 149 -LRB101 04001 HLH 49009 b

1                         ...................... 
2                         ...................... 
3                         (Address of Customer) 
 
4                         ...................... 
5                         (Customer's birth date) 
6                         (month/day/year) 
 
7The undersigned witness certifies that .................,
8known to me to be the same person whose name is subscribed as
9the customer to the foregoing Consent and Authorization,
10appeared before me and the notary public and acknowledged
11signing and delivering the instrument as his or her free and
12voluntary act for the uses and purposes therein set forth. I
13believe him or her to be of sound mind and memory. The
14undersigned witness also certifies that the witness is not an
15owner, operator, or relative of an owner or operator of a
16long-term care facility in which the customer is a patient or
17resident.
 
18Dated: ................. ...................... 
19                         (Signature of Witness) 
 
20                         ...................... 
21                         (Print Name of Witness) 
 

 

 

HB0321- 150 -LRB101 04001 HLH 49009 b

1                         ...................... 
2                         ...................... 
3                         (Address of Witness) 
 
4State of Illinois)
5                 ) ss.
6County of .......)
 
7The undersigned, a notary public in and for the above county
8and state, certifies that .........., known to me to be the
9same person whose name is subscribed as the customer to the
10foregoing Consent and Authorization, appeared before me
11together with the witness, .........., in person and
12acknowledged signing and delivering the instrument as the free
13and voluntary act of the customer for the uses and purposes
14therein set forth.
 
15Dated:.......................................................
16Notary Public:...............................................
17My commission expires:.......................................
 
18        (b) In no event shall the savings bank distribute the
19    customer's financial records to the long-term care
20    facility from which the customer seeks initial or
21    continuing residency or long-term care services.
22        (c) A savings bank providing financial records of a

 

 

HB0321- 151 -LRB101 04001 HLH 49009 b

1    customer in good faith relying on a consent and
2    authorization executed and tendered in accordance with
3    this paragraph (18) shall not be liable to the customer or
4    any other person in relation to the savings bank's
5    disclosure of the customer's financial records to the
6    Department. The customer signing the consent and
7    authorization shall indemnify and hold the savings bank
8    harmless that relies in good faith upon the consent and
9    authorization and incurs a loss because of such reliance.
10    The savings bank recovering under this indemnification
11    provision shall also be entitled to reasonable attorney's
12    fees and the expenses of recovery.
13        (d) A savings bank shall be reimbursed by the customer
14    for all costs reasonably necessary and directly incurred in
15    searching for, reproducing, and disclosing a customer's
16    financial records required or requested to be produced
17    pursuant to any consent and authorization executed under
18    this paragraph (18). The requested financial records shall
19    be delivered to the Department within 10 days after
20    receiving a properly executed consent and authorization or
21    at the earliest practicable time thereafter if the
22    requested records cannot be delivered within 10 days, but
23    delivery may be delayed until the final reimbursement of
24    all costs is received by the savings bank. The savings bank
25    may honor a photostatic or electronic copy of a properly
26    executed consent and authorization.

 

 

HB0321- 152 -LRB101 04001 HLH 49009 b

1        (e) Nothing in this paragraph (18) shall impair,
2    abridge, or abrogate the right of a customer to:
3            (1) directly disclose his or her financial records
4        to the Department or any other person; or
5            (2) authorize his or her attorney or duly appointed
6        agent to request and obtain the customer's financial
7        records and disclose those financial records to the
8        Department.
9        (f) For purposes of this paragraph (18), "Department"
10    means the Department of Human Services and the Department
11    of Healthcare and Family Services or any successor
12    administrative agency of either agency.
13    (d) A savings bank may not disclose to any person, except
14to the member or holder of capital or his duly authorized
15agent, any financial records relating to that member or
16shareholder of the savings bank unless:
17        (1) the member or shareholder has authorized
18    disclosure to the person; or
19        (2) the financial records are disclosed in response to
20    a lawful subpoena, summons, warrant, citation to discover
21    assets, or court order that meets the requirements of
22    subsection (e) of this Section.
23    (e) A savings bank shall disclose financial records under
24subsection (d) of this Section pursuant to a lawful subpoena,
25summons, warrant, citation to discover assets, or court order
26only after the savings bank mails a copy of the subpoena,

 

 

HB0321- 153 -LRB101 04001 HLH 49009 b

1summons, warrant, citation to discover assets, or court order
2to the person establishing the relationship with the savings
3bank, if living, and otherwise, his personal representative, if
4known, at his last known address by first class mail, postage
5prepaid, unless the savings bank is specifically prohibited
6from notifying the person by order of court.
7    (f) Any officer or employee of a savings bank who knowingly
8and willfully furnishes financial records in violation of this
9Section is guilty of a business offense and, upon conviction,
10shall be fined not more than $1,000.
11    (g) Any person who knowingly and willfully induces or
12attempts to induce any officer or employee of a savings bank to
13disclose financial records in violation of this Section is
14guilty of a business offense and, upon conviction, shall be
15fined not more than $1,000.
16    (h) If any member or shareholder desires to communicate
17with the other members or shareholders of the savings bank with
18reference to any question pending or to be presented at an
19annual or special meeting, the savings bank shall give that
20person, upon request, a statement of the approximate number of
21members or shareholders entitled to vote at the meeting and an
22estimate of the cost of preparing and mailing the
23communication. The requesting member shall submit the
24communication to the Commissioner who, upon finding it to be
25appropriate and truthful, shall direct that it be prepared and
26mailed to the members upon the requesting member's or

 

 

HB0321- 154 -LRB101 04001 HLH 49009 b

1shareholder's payment or adequate provision for payment of the
2expenses of preparation and mailing.
3    (i) A savings bank shall be reimbursed for costs that are
4necessary and that have been directly incurred in searching
5for, reproducing, or transporting books, papers, records, or
6other data of a customer required to be reproduced pursuant to
7a lawful subpoena, warrant, citation to discover assets, or
8court order.
9    (j) Notwithstanding the provisions of this Section, a
10savings bank may sell or otherwise make use of lists of
11customers' names and addresses. All other information
12regarding a customer's account is subject to the disclosure
13provisions of this Section. At the request of any customer,
14that customer's name and address shall be deleted from any list
15that is to be sold or used in any other manner beyond
16identification of the customer's accounts.
17(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
18100-201, eff. 8-18-17; 100-664, eff. 1-1-19.)
 
19    (205 ILCS 205/9012)  (from Ch. 17, par. 7309-12)
20    Sec. 9012. Disclosure of reports of examinations and
21confidential supervisory information; limitations.
22    (a) Any report of examination, visitation, or
23investigation prepared by the Secretary under this Act, any
24report of examination, visitation, or investigation prepared
25by the state regulatory authority of another state that

 

 

HB0321- 155 -LRB101 04001 HLH 49009 b

1examines a branch of an Illinois State savings bank in that
2state, any document or record prepared or obtained in
3connection with or relating to any examination, visitation, or
4investigation, and any record prepared or obtained by the
5Secretary to the extent that the record summarizes or contains
6information derived from any report, document, or record
7described in this subsection shall be deemed confidential
8supervisory information. "Confidential supervisory
9information" shall not include any information or record
10routinely prepared by a savings bank and maintained in the
11ordinary course of business or any information or record that
12is required to be made publicly available pursuant to State or
13federal law or rule. Confidential supervisory information
14shall be the property of the Secretary and shall only be
15disclosed under the circumstances and for the purposes set
16forth in this Section.
17    The Secretary may disclose confidential supervisory
18information only under the following circumstances:
19        (1) The Secretary may furnish confidential supervisory
20    information to federal and state depository institution
21    regulators, or any official or examiner thereof duly
22    accredited for the purpose. Nothing contained in this Act
23    shall be construed to limit the obligation of any savings
24    bank to comply with the requirements relative to
25    examinations and reports nor to limit in any way the powers
26    of the Secretary relative to examinations and reports.

 

 

HB0321- 156 -LRB101 04001 HLH 49009 b

1        (2) The Secretary may furnish confidential supervisory
2    information to the United States or any agency thereof that
3    to any extent has insured a savings bank's deposits, or any
4    official or examiner thereof duly accredited for the
5    purpose. Nothing contained in this Act shall be construed
6    to limit the obligation relative to examinations and
7    reports of any savings bank in which deposits are to any
8    extent insured by the United States or any agency thereof
9    nor to limit in any way the powers of the Secretary with
10    reference to examination and reports of the savings bank.
11        (2.5) The Secretary may furnish confidential
12    supervisory information to a Federal Home Loan Bank in
13    connection with any savings bank that is a member of the
14    Federal Home Loan Bank or in connection with any
15    application by the savings bank before the Federal Home
16    Loan Bank. The confidential supervisory information shall
17    remain the property of the Secretary and may not be further
18    disclosed without the Secretary's permission.
19        (3) The Secretary may furnish confidential supervisory
20    information to the appropriate law enforcement authorities
21    when the Secretary reasonably believes a savings bank,
22    which the Secretary has caused to be examined, has been a
23    victim of a crime.
24        (4) The Secretary may furnish confidential supervisory
25    information related to a savings bank, which the Secretary
26    has caused to be examined, to the administrator of the

 

 

HB0321- 157 -LRB101 04001 HLH 49009 b

1    Revised Uniform Disposition of Unclaimed Property Act.
2        (5) The Secretary may furnish confidential supervisory
3    information relating to a savings bank, which the Secretary
4    has caused to be examined, relating to its performance of
5    obligations under the Illinois Income Tax Act and the
6    Illinois Estate and Generation-Skipping Transfer Tax Act
7    to the Illinois Department of Revenue.
8        (6) The Secretary may furnish confidential supervisory
9    information relating to a savings bank, which the Secretary
10    has caused to be examined, under the federal Currency and
11    Foreign Transactions Reporting Act, 31 United States Code,
12    Section 1051 et seq.
13        (7) The Secretary may furnish confidential supervisory
14    information to any other agency or entity that the
15    Secretary determines to have a legitimate regulatory
16    interest.
17        (8) The Secretary may furnish confidential supervisory
18    information as otherwise permitted or required by this Act
19    and may furnish confidential supervisory information under
20    any other statute that by its terms or by regulations
21    promulgated thereunder requires the disclosure of
22    financial records other than by subpoena, summons,
23    warrant, or court order.
24        (9) At the request of the affected savings bank, the
25    Secretary may furnish confidential supervisory information
26    relating to the savings bank, which the Secretary has

 

 

HB0321- 158 -LRB101 04001 HLH 49009 b

1    caused to be examined, in connection with the obtaining of
2    insurance coverage or the pursuit of an insurance claim for
3    or on behalf of the savings bank; provided that, when
4    possible, the Secretary shall disclose only relevant
5    information while maintaining the confidentiality of
6    financial records not relevant to such insurance coverage
7    or claim and, when appropriate, may delete identifying data
8    relating to any person.
9        (10) The Secretary may furnish a copy of a report of
10    any examination performed by the Secretary of the condition
11    and affairs of any electronic data processing entity to the
12    savings banks serviced by the electronic data processing
13    entity.
14        (11) In addition to the foregoing circumstances, the
15    Secretary may, but is not required to, furnish confidential
16    supervisory information under the same circumstances
17    authorized for the savings bank pursuant to subsection (b)
18    of this Section, except that the Secretary shall provide
19    confidential supervisory information under circumstances
20    described in paragraph (3) of subsection (b) of this
21    Section only upon the request of the savings bank.
22    (b) A savings bank or its officers, agents, and employees
23may disclose confidential supervisory information only under
24the following circumstances:
25        (1) to the board of directors of the savings bank, as
26    well as the president, vice-president, cashier, and other

 

 

HB0321- 159 -LRB101 04001 HLH 49009 b

1    officers of the savings bank to whom the board of directors
2    may delegate duties with respect to compliance with
3    recommendations for action, and to the board of directors
4    of a savings bank holding company that owns at least 80% of
5    the outstanding stock of the savings bank or other
6    financial institution.
7        (2) to attorneys for the savings bank and to a
8    certified public accountant engaged by the savings bank to
9    perform an independent audit; provided that the attorney or
10    certified public accountant shall not permit the
11    confidential supervisory information to be further
12    disseminated.
13        (3) to any person who seeks to acquire a controlling
14    interest in, or who seeks to merge with, the savings bank;
15    provided that the person shall agree to be bound to respect
16    the confidentiality of the confidential supervisory
17    information and to not further disseminate the information
18    other than to attorneys, certified public accountants,
19    officers, agents, or employees of that person who likewise
20    shall agree to be bound to respect the confidentiality of
21    the confidential supervisory information and to not
22    further disseminate the information.
23        (4) to the savings bank's insurance company, if the
24    supervisory information contains information that is
25    otherwise unavailable and is strictly necessary to
26    obtaining insurance coverage or pursuing an insurance

 

 

HB0321- 160 -LRB101 04001 HLH 49009 b

1    claim for or on behalf of the savings bank; provided that,
2    when possible, the savings bank shall disclose only
3    information that is relevant to obtaining insurance
4    coverage or pursuing an insurance claim, while maintaining
5    the confidentiality of financial information pertaining to
6    customers; and provided further that, when appropriate,
7    the savings bank may delete identifying data relating to
8    any person.
9        (5) to a Federal Home Loan Bank of which it is a
10    member.
11        (6) to any attorney, accountant, consultant, or other
12    professional as needed to comply with an enforcement action
13    issued by the Secretary.
14    The disclosure of confidential supervisory information by
15a savings bank pursuant to this subsection (b) and the
16disclosure of information to the Secretary or other regulatory
17agency in connection with any examination, visitation, or
18investigation shall not constitute a waiver of any legal
19privilege otherwise available to the savings bank with respect
20to the information.
21    (c)(1) Notwithstanding any other provision of this Act or
22any other law, confidential supervisory information shall be
23the property of the Secretary and shall be privileged from
24disclosure to any person except as provided in this Section. No
25person in possession of confidential supervisory information
26may disclose that information for any reason or under any

 

 

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1circumstances not specified in this Section without the prior
2authorization of the Secretary. Any person upon whom a demand
3for production of confidential supervisory information is
4made, whether by subpoena, order, or other judicial or
5administrative process, must withhold production of the
6confidential supervisory information and must notify the
7Secretary of the demand, at which time the Secretary is
8authorized to intervene for the purpose of enforcing the
9limitations of this Section or seeking the withdrawal or
10termination of the attempt to compel production of the
11confidential supervisory information.
12    (2) Any request for discovery or disclosure of confidential
13supervisory information, whether by subpoena, order, or other
14judicial or administrative process, shall be made to the
15Secretary, and the Secretary shall determine within 15 days
16whether to disclose the information pursuant to procedures and
17standards that the Secretary shall establish by rule. If the
18Secretary determines that such information will not be
19disclosed, the Secretary's decision shall be subject to
20judicial review under the provisions of the Administrative
21Review Law, and venue shall be in either Sangamon County or
22Cook County.
23    (3) Any court order that compels disclosure of confidential
24supervisory information may be immediately appealed by the
25Secretary, and the order shall be automatically stayed pending
26the outcome of the appeal.

 

 

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1    (d) If any officer, agent, attorney, or employee of a
2savings bank knowingly and willfully furnishes confidential
3supervisory information in violation of this Section, the
4Secretary may impose a civil monetary penalty up to $1,000 for
5the violation against the officer, agent, attorney, or
6employee.
7    (e) Subject to the limits of this Section, the Secretary
8also may promulgate regulations to set procedures and standards
9for disclosure of the following items:
10        (1) All fixed orders and opinions made in cases of
11    appeals of the Secretary's actions.
12        (2) Statements of policy and interpretations adopted
13    by the Secretary's office, but not otherwise made public.
14        (3) Nonconfidential portions of application files,
15    including applications for new charters. The Secretary
16    shall specify by rule as to what part of the files are
17    confidential.
18        (4) Quarterly reports of income, deposits, and
19    financial condition.
20(Source: P.A. 100-22, eff. 1-1-18; 100-64, eff. 8-11-17;
21100-863, eff. 8-14-18; 100-888, eff. 8-14-18.)
 
22    (205 ILCS 205/10090)
23    Sec. 10090. Dividends; dissolution. From time to time
24during a receivership other than a receivership conducted by
25the Federal Deposit Insurance Corporation, the Secretary shall

 

 

HB0321- 163 -LRB101 04001 HLH 49009 b

1make and pay from moneys of the savings bank a ratable dividend
2on all claims as may be proved to his or her satisfaction or
3adjudicated by the court. Claims so proven or adjudicated shall
4bear interest at the rate of 3% per annum from the date of the
5appointment of the receiver to the date of payment, but all
6dividends on a claim shall be applied first to principal. In
7computing the amount of any dividend to be paid, if the
8Secretary deems it desirable in the interests of economy of
9administration and to the interest of the savings bank and its
10creditors, he or she may pay up to the amount of $10 of each
11claim or unpaid portion thereof in full. As the proceeds of the
12assets of the savings bank are collected in the course of
13liquidation, the Secretary shall make and pay further dividends
14on all claims previously proven or adjudicated. After one year
15from the entry of a judgment of dissolution, all unclaimed
16dividends shall be remitted to the State Treasurer in
17accordance with the Revised Uniform Disposition of Unclaimed
18Property Act, as now or hereafter amended, together with a list
19of all unpaid claimants, their last known addresses and the
20amounts unpaid.
21(Source: P.A. 100-22, eff. 1-1-18.)
 
22    Section 60. The Illinois Credit Union Act is amended by
23changing Sections 10 and 62 as follows:
 
24    (205 ILCS 305/10)  (from Ch. 17, par. 4411)

 

 

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1    Sec. 10. Credit union records; member financial records.
2    (1) A credit union shall establish and maintain books,
3records, accounting systems and procedures which accurately
4reflect its operations and which enable the Department to
5readily ascertain the true financial condition of the credit
6union and whether it is complying with this Act.
7    (2) A photostatic or photographic reproduction of any
8credit union records shall be admissible as evidence of
9transactions with the credit union.
10    (3)(a) For the purpose of this Section, the term "financial
11records" means any original, any copy, or any summary of (1) a
12document granting signature authority over an account, (2) a
13statement, ledger card or other record on any account which
14shows each transaction in or with respect to that account, (3)
15a check, draft or money order drawn on a financial institution
16or other entity or issued and payable by or through a financial
17institution or other entity, or (4) any other item containing
18information pertaining to any relationship established in the
19ordinary course of business between a credit union and its
20member, including financial statements or other financial
21information provided by the member.
22    (b) This Section does not prohibit:
23        (1) The preparation, examination, handling or
24    maintenance of any financial records by any officer,
25    employee or agent of a credit union having custody of such
26    records, or the examination of such records by a certified

 

 

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1    public accountant engaged by the credit union to perform an
2    independent audit.
3        (2) The examination of any financial records by or the
4    furnishing of financial records by a credit union to any
5    officer, employee or agent of the Department, the National
6    Credit Union Administration, Federal Reserve board or any
7    insurer of share accounts for use solely in the exercise of
8    his duties as an officer, employee or agent.
9        (3) The publication of data furnished from financial
10    records relating to members where the data cannot be
11    identified to any particular customer of account.
12        (4) The making of reports or returns required under
13    Chapter 61 of the Internal Revenue Code of 1954.
14        (5) Furnishing information concerning the dishonor of
15    any negotiable instrument permitted to be disclosed under
16    the Uniform Commercial Code.
17        (6) The exchange in the regular course of business of
18    (i) credit information between a credit union and other
19    credit unions or financial institutions or commercial
20    enterprises, directly or through a consumer reporting
21    agency or (ii) financial records or information derived
22    from financial records between a credit union and other
23    credit unions or financial institutions or commercial
24    enterprises for the purpose of conducting due diligence
25    pursuant to a merger or a purchase or sale of assets or
26    liabilities of the credit union.

 

 

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1        (7) The furnishing of information to the appropriate
2    law enforcement authorities where the credit union
3    reasonably believes it has been the victim of a crime.
4        (8) The furnishing of information pursuant to the
5    Revised Uniform Disposition of Unclaimed Property Act.
6        (9) The furnishing of information pursuant to the
7    Illinois Income Tax Act and the Illinois Estate and
8    Generation-Skipping Transfer Tax Act.
9        (10) The furnishing of information pursuant to the
10    federal "Currency and Foreign Transactions Reporting Act",
11    Title 31, United States Code, Section 1051 et sequentia.
12        (11) The furnishing of information pursuant to any
13    other statute which by its terms or by regulations
14    promulgated thereunder requires the disclosure of
15    financial records other than by subpoena, summons, warrant
16    or court order.
17        (12) The furnishing of information in accordance with
18    the federal Personal Responsibility and Work Opportunity
19    Reconciliation Act of 1996. Any credit union governed by
20    this Act shall enter into an agreement for data exchanges
21    with a State agency provided the State agency pays to the
22    credit union a reasonable fee not to exceed its actual cost
23    incurred. A credit union providing information in
24    accordance with this item shall not be liable to any
25    account holder or other person for any disclosure of
26    information to a State agency, for encumbering or

 

 

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1    surrendering any assets held by the credit union in
2    response to a lien or order to withhold and deliver issued
3    by a State agency, or for any other action taken pursuant
4    to this item, including individual or mechanical errors,
5    provided the action does not constitute gross negligence or
6    willful misconduct. A credit union shall have no obligation
7    to hold, encumber, or surrender assets until it has been
8    served with a subpoena, summons, warrant, court or
9    administrative order, lien, or levy.
10        (13) The furnishing of information to law enforcement
11    authorities, the Illinois Department on Aging and its
12    regional administrative and provider agencies, the
13    Department of Human Services Office of Inspector General,
14    or public guardians: (i) upon subpoena by the investigatory
15    entity or the guardian, or (ii) if there is suspicion by
16    the credit union that a member who is an elderly person or
17    person with a disability has been or may become the victim
18    of financial exploitation. For the purposes of this item
19    (13), the term: (i) "elderly person" means a person who is
20    60 or more years of age, (ii) "person with a disability"
21    means a person who has or reasonably appears to the credit
22    union to have a physical or mental disability that impairs
23    his or her ability to seek or obtain protection from or
24    prevent financial exploitation, and (iii) "financial
25    exploitation" means tortious or illegal use of the assets
26    or resources of an elderly person or person with a

 

 

HB0321- 168 -LRB101 04001 HLH 49009 b

1    disability, and includes, without limitation,
2    misappropriation of the elderly or disabled person's
3    assets or resources by undue influence, breach of fiduciary
4    relationship, intimidation, fraud, deception, extortion,
5    or the use of assets or resources in any manner contrary to
6    law. A credit union or person furnishing information
7    pursuant to this item (13) shall be entitled to the same
8    rights and protections as a person furnishing information
9    under the Adult Protective Services Act and the Illinois
10    Domestic Violence Act of 1986.
11        (14) The disclosure of financial records or
12    information as necessary to effect, administer, or enforce
13    a transaction requested or authorized by the member, or in
14    connection with:
15            (A) servicing or processing a financial product or
16        service requested or authorized by the member;
17            (B) maintaining or servicing a member's account
18        with the credit union; or
19            (C) a proposed or actual securitization or
20        secondary market sale (including sales of servicing
21        rights) related to a transaction of a member.
22        Nothing in this item (14), however, authorizes the sale
23    of the financial records or information of a member without
24    the consent of the member.
25        (15) The disclosure of financial records or
26    information as necessary to protect against or prevent

 

 

HB0321- 169 -LRB101 04001 HLH 49009 b

1    actual or potential fraud, unauthorized transactions,
2    claims, or other liability.
3        (16)(a) The disclosure of financial records or
4    information related to a private label credit program
5    between a financial institution and a private label party
6    in connection with that private label credit program. Such
7    information is limited to outstanding balance, available
8    credit, payment and performance and account history,
9    product references, purchase information, and information
10    related to the identity of the customer.
11        (b)(1) For purposes of this item paragraph (16) of
12    subsection (b) of Section 10, a "private label credit
13    program" means a credit program involving a financial
14    institution and a private label party that is used by a
15    customer of the financial institution and the private label
16    party primarily for payment for goods or services sold,
17    manufactured, or distributed by a private label party.
18        (2) For purposes of this item paragraph (16) of
19    subsection (b) of Section 10, a "private label party"
20    means, with respect to a private label credit program, any
21    of the following: a retailer, a merchant, a manufacturer, a
22    trade group, or any such person's affiliate, subsidiary,
23    member, agent, or service provider.
24        (17)(a) The furnishing of financial records of a member
25    to the Department to aid the Department's initial
26    determination or subsequent re-determination of the

 

 

HB0321- 170 -LRB101 04001 HLH 49009 b

1    member's eligibility for Medicaid and Medicaid long-term
2    care benefits for long-term care services, provided that
3    the credit union receives the written consent and
4    authorization of the member, which shall:
5            (1) have the member's signature notarized;
6            (2) be signed by at least one witness who certifies
7        that he or she believes the member to be of sound mind
8        and memory;
9            (3) be tendered to the credit union at the earliest
10        practicable time following its execution,
11        certification, and notarization;
12            (4) specifically limit the disclosure of the
13        member's financial records to the Department; and
14            (5) be in substantially the following form:
 
15
CUSTOMER CONSENT AND AUTHORIZATION
16
FOR RELEASE OF FINANCIAL RECORDS

 
17I, ......................................., hereby authorize 
18       (Name of Customer) 
 
19............................................................. 
20(Name of Financial Institution)
 
21............................................................. 
22(Address of Financial Institution)
 

 

 

HB0321- 171 -LRB101 04001 HLH 49009 b

1to disclose the following financial records:
 
2any and all information concerning my deposit, savings, money
3market, certificate of deposit, individual retirement,
4retirement plan, 401(k) plan, incentive plan, employee benefit
5plan, mutual fund and loan accounts (including, but not limited
6to, any indebtedness or obligation for which I am a
7co-borrower, co-obligor, guarantor, or surety), and any and all
8other accounts in which I have an interest and any other
9information regarding me in the possession of the Financial
10Institution,
 
11to the Illinois Department of Human Services or the Illinois
12Department of Healthcare and Family Services, or both ("the
13Department"), for the following purpose(s):
 
14to aid in the initial determination or re-determination by the
15State of Illinois of my eligibility for Medicaid long-term care
16benefits, pursuant to applicable law.
 
17I understand that this Consent and Authorization may be revoked
18by me in writing at any time before my financial records, as
19described above, are disclosed, and that this Consent and
20Authorization is valid until the Financial Institution
21receives my written revocation. This Consent and Authorization

 

 

HB0321- 172 -LRB101 04001 HLH 49009 b

1shall constitute valid authorization for the Department
2identified above to inspect all such financial records set
3forth above, and to request and receive copies of such
4financial records from the Financial Institution (subject to
5such records search and reproduction reimbursement policies as
6the Financial Institution may have in place). An executed copy
7of this Consent and Authorization shall be sufficient and as
8good as the original and permission is hereby granted to honor
9a photostatic or electronic copy of this Consent and
10Authorization. Disclosure is strictly limited to the
11Department identified above and no other person or entity shall
12receive my financial records pursuant to this Consent and
13Authorization. By signing this form, I agree to indemnify and
14hold the Financial Institution harmless from any and all
15claims, demands, and losses, including reasonable attorneys
16fees and expenses, arising from or incurred in its reliance on
17this Consent and Authorization. As used herein, "Customer"
18shall mean "Member" if the Financial Institution is a credit
19union.
 
20....................... ...................... 
21(Date)                  (Signature of Customer)             
 
22                         ...................... 
23                         ...................... 
24                         (Address of Customer) 
 

 

 

HB0321- 173 -LRB101 04001 HLH 49009 b

1                         ...................... 
2                         (Customer's birth date) 
3                         (month/day/year) 
 
4The undersigned witness certifies that .................,
5known to me to be the same person whose name is subscribed as
6the customer to the foregoing Consent and Authorization,
7appeared before me and the notary public and acknowledged
8signing and delivering the instrument as his or her free and
9voluntary act for the uses and purposes therein set forth. I
10believe him or her to be of sound mind and memory. The
11undersigned witness also certifies that the witness is not an
12owner, operator, or relative of an owner or operator of a
13long-term care facility in which the customer is a patient or
14resident.
 
15Dated: ................. ...................... 
16                         (Signature of Witness) 
 
17                         ...................... 
18                         (Print Name of Witness) 
 
19                         ...................... 
20                         ...................... 
21                         (Address of Witness) 
 

 

 

HB0321- 174 -LRB101 04001 HLH 49009 b

1State of Illinois)
2                 ) ss.
3County of .......)
 
4The undersigned, a notary public in and for the above county
5and state, certifies that .........., known to me to be the
6same person whose name is subscribed as the customer to the
7foregoing Consent and Authorization, appeared before me
8together with the witness, .........., in person and
9acknowledged signing and delivering the instrument as the free
10and voluntary act of the customer for the uses and purposes
11therein set forth.
 
12Dated:.......................................................
13Notary Public:...............................................
14My commission expires:.......................................
 
15        (b) In no event shall the credit union distribute the
16    member's financial records to the long-term care facility
17    from which the member seeks initial or continuing residency
18    or long-term care services.
19        (c) A credit union providing financial records of a
20    member in good faith relying on a consent and authorization
21    executed and tendered in accordance with this item
22    subparagraph (17) shall not be liable to the member or any

 

 

HB0321- 175 -LRB101 04001 HLH 49009 b

1    other person in relation to the credit union's disclosure
2    of the member's financial records to the Department. The
3    member signing the consent and authorization shall
4    indemnify and hold the credit union harmless that relies in
5    good faith upon the consent and authorization and incurs a
6    loss because of such reliance. The credit union recovering
7    under this indemnification provision shall also be
8    entitled to reasonable attorney's fees and the expenses of
9    recovery.
10        (d) A credit union shall be reimbursed by the member
11    for all costs reasonably necessary and directly incurred in
12    searching for, reproducing, and disclosing a member's
13    financial records required or requested to be produced
14    pursuant to any consent and authorization executed under
15    this item subparagraph (17). The requested financial
16    records shall be delivered to the Department within 10 days
17    after receiving a properly executed consent and
18    authorization or at the earliest practicable time
19    thereafter if the requested records cannot be delivered
20    within 10 days, but delivery may be delayed until the final
21    reimbursement of all costs is received by the credit union.
22    The credit union may honor a photostatic or electronic copy
23    of a properly executed consent and authorization.
24        (e) Nothing in this item subparagraph (17) shall
25    impair, abridge, or abrogate the right of a member to:
26            (1) directly disclose his or her financial records

 

 

HB0321- 176 -LRB101 04001 HLH 49009 b

1        to the Department or any other person; or
2            (2) authorize his or her attorney or duly appointed
3        agent to request and obtain the member's financial
4        records and disclose those financial records to the
5        Department.
6        (f) For purposes of this item subparagraph (17),
7    "Department" means the Department of Human Services and the
8    Department of Healthcare and Family Services or any
9    successor administrative agency of either agency.
10        (18) (17) The furnishing of the financial records of a
11    member to an appropriate law enforcement authority,
12    without prior notice to or consent of the member, upon
13    written request of the law enforcement authority, when
14    reasonable suspicion of an imminent threat to the personal
15    security and safety of the member exists that necessitates
16    an expedited release of the member's financial records, as
17    determined by the law enforcement authority. The law
18    enforcement authority shall include a brief explanation of
19    the imminent threat to the member in its written request to
20    the credit union. The written request shall reflect that it
21    has been authorized by a supervisory or managerial official
22    of the law enforcement authority. The decision to furnish
23    the financial records of a member to a law enforcement
24    authority shall be made by a supervisory or managerial
25    official of the credit union. A credit union providing
26    information in accordance with this item (18) (17) shall

 

 

HB0321- 177 -LRB101 04001 HLH 49009 b

1    not be liable to the member or any other person for the
2    disclosure of the information to the law enforcement
3    authority.
4    (c) Except as otherwise provided by this Act, a credit
5union may not disclose to any person, except to the member or
6his duly authorized agent, any financial records relating to
7that member of the credit union unless:
8        (1) the member has authorized disclosure to the person;
9        (2) the financial records are disclosed in response to
10    a lawful subpoena, summons, warrant, citation to discover
11    assets, or court order that meets the requirements of
12    subparagraph (3)(d) (d) of this Section; or
13        (3) the credit union is attempting to collect an
14    obligation owed to the credit union and the credit union
15    complies with the provisions of Section 2I of the Consumer
16    Fraud and Deceptive Business Practices Act.
17    (d) A credit union shall disclose financial records under
18item (3)(c)(2) subparagraph (c)(2) of this Section pursuant to
19a lawful subpoena, summons, warrant, citation to discover
20assets, or court order only after the credit union mails a copy
21of the subpoena, summons, warrant, citation to discover assets,
22or court order to the person establishing the relationship with
23the credit union, if living, and otherwise his personal
24representative, if known, at his last known address by first
25class mail, postage prepaid unless the credit union is
26specifically prohibited from notifying the person by order of

 

 

HB0321- 178 -LRB101 04001 HLH 49009 b

1court or by applicable State or federal law. In the case of a
2grand jury subpoena, a credit union shall not mail a copy of a
3subpoena to any person pursuant to this subsection if the
4subpoena was issued by a grand jury under the Statewide Grand
5Jury Act or notifying the person would constitute a violation
6of the federal Right to Financial Privacy Act of 1978.
7    (e)(1) Any officer or employee of a credit union who
8knowingly and willfully wilfully furnishes financial records
9in violation of this Section is guilty of a business offense
10and upon conviction thereof shall be fined not more than
11$1,000.
12    (2) Any person who knowingly and willfully wilfully induces
13or attempts to induce any officer or employee of a credit union
14to disclose financial records in violation of this Section is
15guilty of a business offense and upon conviction thereof shall
16be fined not more than $1,000.
17    (f) A credit union shall be reimbursed for costs which are
18reasonably necessary and which have been directly incurred in
19searching for, reproducing or transporting books, papers,
20records or other data of a member required or requested to be
21produced pursuant to a lawful subpoena, summons, warrant,
22citation to discover assets, or court order. The Secretary and
23the Director may determine, by rule, the rates and conditions
24under which payment shall be made. Delivery of requested
25documents may be delayed until final reimbursement of all costs
26is received.

 

 

HB0321- 179 -LRB101 04001 HLH 49009 b

1(Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18;
2100-664, eff. 1-1-19; 100-778, eff. 8-10-18; revised
310-18-18.)
 
4    (205 ILCS 305/62)  (from Ch. 17, par. 4463)
5    Sec. 62. Liquidation.
6    (1) A credit union may elect to dissolve voluntarily and
7liquidate its affairs in the manner prescribed in this Section.
8    (2) The board of directors shall adopt a resolution
9recommending the credit union be dissolved voluntarily, and
10directing that the question of liquidating be submitted to the
11members.
12    (3) Within 10 days after the board of directors decides to
13submit the question of liquidation to the members, the chairman
14or president shall notify the Secretary thereof, in writing,
15setting forth the reasons for the proposed action. Within 10
16days after the members act on the question of liquidation, the
17chairman or president shall notify the Secretary, in writing,
18as to whether or not the members approved the proposed
19liquidation. The Secretary then must determine whether this
20Section has been complied with and if his decision is
21favorable, he shall prepare a certificate to the effect that
22this Section has been complied with, a copy of which will be
23retained by the Department and the other copy forwarded to the
24credit union. The certificate must be filed with the recorder
25or if there is no recorder, in the office of the county clerk

 

 

HB0321- 180 -LRB101 04001 HLH 49009 b

1of the county or counties in which the credit union is
2operating, whereupon the credit union must cease operations
3except for the purpose of its liquidation.
4    (4) As soon as the board of directors passes a resolution
5to submit the question of liquidation to the members, payment
6on shares, withdrawal of shares, making any transfer of shares
7to loans and interest, making investments of any kind and
8granting loans shall be suspended pending action by members. On
9approval by the members of such proposal, all such operations
10shall be permanently discontinued. The necessary expenses of
11operating shall, however, continue to be paid on authorization
12of the board of directors or the liquidating agent during the
13period of liquidation.
14    (5) For a credit union to enter voluntary liquidation, it
15must be approved by affirmative vote of the members owning a
16majority of the shares entitled to vote, in person or by proxy,
17at a regular or special meeting of the members. Notice, in
18writing, shall be given to each member, by first class mail, at
19least 10 days prior to such meeting. If liquidation is
20approved, the board of directors shall appoint a liquidating
21agent for the purpose of conserving and collecting the assets,
22closing the affairs of the credit union and distributing the
23assets as required by this Act.
24    (6) A liquidating credit union shall continue in existence
25for the purpose of discharging its debts, collecting and
26distributing its assets, and doing all acts required in order

 

 

HB0321- 181 -LRB101 04001 HLH 49009 b

1to terminate its operations and may sue and be sued for the
2purpose of enforcing such debts and obligations until its
3affairs are fully adjusted.
4    (7) Subject to such rules and regulations as the Secretary
5may promulgate, the liquidating agent shall use the assets of
6the credit union to pay; first, expenses incidental to
7liquidating including any surety bond that may be required;
8then, liabilities of the credit union; then special classes of
9shares. The remaining assets shall then be distributed to the
10members proportionately to the dollar value of the shares held
11by each member in relation to the total dollar value of all
12shares outstanding as of the date the dissolution was voted.
13    (8) As soon as the liquidating agent determines that all
14assets as to which there is a reasonable expectancy of sale or
15transfer have been liquidated and distributed as set forth in
16this Section, he shall execute a certificate of dissolution on
17a form prescribed by the Department and file the same, together
18with all pertinent books and records of the liquidating credit
19union with the Department, whereupon such credit union shall be
20dissolved. The liquidating agent must, within 3 years after
21issuance of a certificate by the Secretary referred to in
22Subsection (3) of this Section, discharge the debts of the
23credit union, collect and distribute its assets and do all
24other acts required to wind up its business.
25    (9) If the Secretary determines that the liquidating agent
26has failed to make reasonable progress in the liquidating of

 

 

HB0321- 182 -LRB101 04001 HLH 49009 b

1the credit union's affairs and distribution of its assets or
2has violated this Act, the Secretary may take possession and
3control of the credit union and remove the liquidating agent
4and appoint a liquidating agent to complete the liquidation
5under his direction and control. The Secretary shall fill any
6vacancy caused by the resignation, death, illness, removal,
7desertion or incapacity to function of the liquidating agent.
8    (10) Any funds representing unclaimed dividends and shares
9in liquidation and remaining in the hands of the board of
10directors or the liquidating agent at the end of the
11liquidation must be deposited by them, together with all books
12and papers of the credit union, with the State Treasurer in
13compliance with the Revised Uniform Disposition of Unclaimed
14Property Act, approved August 17, 1961, as amended.
15(Source: P.A. 100-22, eff. 1-1-18.)
 
16    Section 65. The Currency Exchange Act is amended by
17changing Sections 15.1b and 19.3 as follows:
 
18    (205 ILCS 405/15.1b)  (from Ch. 17, par. 4827)
19    Sec. 15.1b. Liquidation; distribution; priority. The
20General Assembly finds and declares that community currency
21exchanges provide important and vital services to Illinois
22citizens. The General Assembly also finds that in providing
23such services, community currency exchanges transact extensive
24business involving check cashing and the writing of money

 

 

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1orders in communities in which banking services are generally
2unavailable. It is therefore declared to be the policy of this
3State that customers who receive these services must be
4protected from insolvencies of currency exchanges and
5interruptions of services. To carry out this policy and to
6insure that customers of community currency exchanges are
7protected in the event it is determined that a community
8currency exchange in receivership should be liquidated in
9accordance with Section 15.1a of this Act, the Secretary shall
10make a distribution of moneys collected by the receiver in the
11following order of priority: First, allowed claims for the
12actual necessary expenses of the receivership of the community
13currency exchange being liquidated, including (a) reasonable
14receiver fees and receiver's attorney's fees approved by the
15Secretary, (b) all expenses of any preliminary or other
16examinations into the condition of the community currency
17exchange or receivership, (c) all expenses incurred by the
18Secretary which are incident to possession and control of any
19property or records of the community currency exchange, and (d)
20reasonable expenses incurred by the Secretary as the result of
21business agreements or contractual arrangements necessary to
22insure that the services of the community currency exchanges
23are delivered to the community without interruption. Said
24business agreements or contractual arrangements may include,
25but are not limited to, agreements made by the Secretary, or by
26the Receiver with the approval of the Secretary, with banks,

 

 

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1money order companies, bonding companies and other types of
2financial institutions; Second, allowed claims by a purchaser
3of money orders issued on demand of the community currency
4exchange being liquidated; Third, allowed claims arising by
5virtue of and to the extent of the amount a utility customer
6deposits with the community currency exchange being liquidated
7which are not remitted to the utility company; Fourth, allowed
8claims arising by virtue of and to the extent of the amount
9paid by a purchaser of Illinois license plates, vehicle
10stickers sold for State and municipal governments in Illinois,
11and temporary Illinois registration permits purchased at the
12currency exchange being liquidated; Fifth, allowed unsecured
13claims for wages or salaries, excluding vacation, severance and
14sick leave pay earned by employee earned within 90 days prior
15to the appointment of a Receiver; Sixth, secured claims;
16Seventh, allowed unsecured claims of any tax, and interest and
17penalty on the tax; Eighth, allowed unsecured claims other than
18a kind specified in paragraph one, two and three of this
19Section, filed with the Secretary within the time the Secretary
20fixes for filing claims; Ninth, allowed unsecured claims, other
21than a kind specified in paragraphs one, two and three of this
22Section filed with the Secretary after the time fixed for
23filing claims by the Secretary; Tenth, allowed creditor claims
24asserted by an owner, member, or stockholder of the community
25currency exchange in liquidation; Eleventh, after one year from
26the final dissolution of the currency exchange, all assets not

 

 

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1used to satisfy allowed claims shall be distributed pro rata to
2the owner, owners, members, or stockholders of the currency
3exchange.
4    The Secretary shall pay all claims of equal priority
5according to the schedule set out above, and shall not pay
6claims of lower priority until all higher priority claims are
7satisfied. If insufficient assets are available to meet all
8claims of equal priority, those assets shall be distributed pro
9rata among those claims. All unclaimed assets of a currency
10exchange shall be deposited with the Secretary to be paid out
11by him when proper claims therefor are presented to the
12Secretary. If there are funds remaining after the conclusion of
13a receivership of an abandoned currency exchange, the remaining
14funds shall be considered unclaimed property and remitted to
15the State Treasurer under the Revised Uniform Disposition of
16Unclaimed Property Act.
17(Source: P.A. 100-22, eff. 1-1-18.)
 
18    (205 ILCS 405/19.3)  (from Ch. 17, par. 4838)
19    (Text of Section before amendment by P.A. 100-704)
20    Sec. 19.3. (A) The General Assembly hereby finds and
21declares: community currency exchanges and ambulatory currency
22exchanges provide important and vital services to Illinois
23citizens. In so doing, they transact extensive business
24involving check cashing and the writing of money orders in
25communities in which banking services are generally

 

 

HB0321- 186 -LRB101 04001 HLH 49009 b

1unavailable. Customers of currency exchanges who receive these
2services must be protected from being charged unreasonable and
3unconscionable rates for cashing checks and purchasing money
4orders. The Illinois Department of Financial and Professional
5Regulation has the responsibility for regulating the
6operations of currency exchanges and has the expertise to
7determine reasonable maximum rates to be charged for check
8cashing and money order purchases. Therefore, it is in the
9public interest, convenience, welfare and good to have the
10Department establish reasonable maximum rate schedules for
11check cashing and the issuance of money orders and to require
12community and ambulatory currency exchanges to prominently
13display to the public the fees charged for all services. The
14Secretary shall review, each year, the cost of operation of the
15Currency Exchange Section and the revenue generated from
16currency exchange examinations and report to the General
17Assembly if the need exists for an increase in the fees
18mandated by this Act to maintain the Currency Exchange Section
19at a fiscally self-sufficient level. The Secretary shall
20include in such report the total amount of funds remitted to
21the State and delivered to the State Treasurer by currency
22exchanges pursuant to the Revised Uniform Disposition of
23Unclaimed Property Act.
24    (B) The Secretary shall, by rules adopted in accordance
25with the Illinois Administrative Procedure Act, expeditiously
26formulate and issue schedules of reasonable maximum rates which

 

 

HB0321- 187 -LRB101 04001 HLH 49009 b

1can be charged for check cashing and writing of money orders by
2community currency exchanges and ambulatory currency
3exchanges.
4        (1) In determining the maximum rate schedules for the
5    purposes of this Section the Secretary shall take into
6    account:
7            (a) Rates charged in the past for the cashing of
8        checks and the issuance of money orders by community
9        and ambulatory currency exchanges.
10            (b) Rates charged by banks or other business
11        entities for rendering the same or similar services and
12        the factors upon which those rates are based.
13            (c) The income, cost and expense of the operation
14        of currency exchanges.
15            (d) Rates charged by currency exchanges or other
16        similar entities located in other states for the same
17        or similar services and the factors upon which those
18        rates are based.
19            (e) Rates charged by the United States Postal
20        Service for the issuing of money orders and the factors
21        upon which those rates are based.
22            (f) A reasonable profit for a currency exchange
23        operation.
24        (2)(a) The schedule of reasonable maximum rates
25    established pursuant to this Section may be modified by the
26    Secretary from time to time pursuant to rules adopted in

 

 

HB0321- 188 -LRB101 04001 HLH 49009 b

1    accordance with the Illinois Administrative Procedure Act.
2        (b) Upon the filing of a verified petition setting
3    forth allegations demonstrating reasonable cause to
4    believe that the schedule of maximum rates previously
5    issued and promulgated should be adjusted, the Secretary
6    shall expeditiously:
7            (i) reject the petition if it fails to demonstrate
8        reasonable cause to believe that an adjustment is
9        necessary; or
10            (ii) conduct such hearings, in accordance with
11        this Section, as may be necessary to determine whether
12        the petition should be granted in whole or in part.
13        (c) No petition may be filed pursuant to subparagraph
14    (a) of paragraph (2) of subsection (B) unless:
15            (i) at least nine months have expired since the
16        last promulgation of schedules of maximum rates; and
17            (ii) at least one-fourth of all community currency
18        exchange licensees join in a petition or, in the case
19        of ambulatory currency exchanges, a licensee or
20        licensees authorized to serve at least 100 locations
21        join in a petition.
22        (3) Any currency exchange may charge lower fees than
23    those of the applicable maximum fee schedule after filing
24    with the Secretary a schedule of fees it proposes to use.
25(Source: P.A. 100-22, eff. 1-1-18.)
 

 

 

HB0321- 189 -LRB101 04001 HLH 49009 b

1    (Text of Section after amendment by P.A. 100-704)
2    Sec. 19.3. (A) The General Assembly hereby finds and
3declares: community currency exchanges and ambulatory currency
4exchanges provide important and vital services to Illinois
5citizens. In so doing, they transact extensive business
6involving check cashing and the writing of money orders in
7communities in which banking services are generally
8unavailable. Customers of currency exchanges who receive these
9services must be protected from being charged unreasonable and
10unconscionable rates for cashing checks and purchasing money
11orders. The Illinois Department of Financial and Professional
12Regulation has the responsibility for regulating the
13operations of currency exchanges and has the expertise to
14determine reasonable maximum rates to be charged for check
15cashing and money order purchases. Therefore, it is in the
16public interest, convenience, welfare and good to have the
17Department establish reasonable maximum rate schedules for
18check cashing and the issuance of money orders and to require
19community and ambulatory currency exchanges to prominently
20display to the public the fees charged for all services. The
21Secretary shall review, each year, the cost of operation of the
22Currency Exchange Section and the revenue generated from
23currency exchange examinations and report to the General
24Assembly if the need exists for an increase in the fees
25mandated by this Act to maintain the Currency Exchange Section
26at a fiscally self-sufficient level. The Secretary shall

 

 

HB0321- 190 -LRB101 04001 HLH 49009 b

1include in such report the total amount of funds remitted to
2the State and delivered to the State Treasurer by currency
3exchanges pursuant to the Revised Uniform Disposition of
4Unclaimed Property Act.
5    (B) The Secretary shall, by rules adopted in accordance
6with the Illinois Administrative Procedure Act, expeditiously
7formulate and issue schedules of reasonable maximum rates which
8can be charged for check cashing and writing of money orders by
9community currency exchanges and ambulatory currency
10exchanges.
11        (1) In determining the maximum rate schedules for the
12    purposes of this Section the Secretary shall take into
13    account:
14            (a) Rates charged in the past for the cashing of
15        checks and the issuance of money orders by community
16        and ambulatory currency exchanges.
17            (b) Rates charged by banks or other business
18        entities for rendering the same or similar services and
19        the factors upon which those rates are based.
20            (c) The income, cost and expense of the operation
21        of currency exchanges.
22            (d) Rates charged by currency exchanges or other
23        similar entities located in other states for the same
24        or similar services and the factors upon which those
25        rates are based.
26            (e) Rates charged by the United States Postal

 

 

HB0321- 191 -LRB101 04001 HLH 49009 b

1        Service for the issuing of money orders and the factors
2        upon which those rates are based.
3            (f) A reasonable profit for a currency exchange
4        operation.
5            (g) The impact on consumers.
6            (h) Whether the rate schedule will
7        disproportionately impact anyone on the basis of any
8        protected characteristic or category listed in
9        subsection (Q) of Section 1-103 of the Illinois Human
10        Rights Act as those terms are defined in that Section.
11        (2)(a) The schedule of reasonable maximum rates
12    established pursuant to this Section may be modified by the
13    Secretary from time to time pursuant to rules adopted in
14    accordance with the Illinois Administrative Procedure Act.
15        (b) Upon the filing of a verified petition setting
16    forth allegations demonstrating reasonable cause to
17    believe that the schedule of maximum rates previously
18    issued and promulgated should be adjusted, the Secretary
19    shall expeditiously:
20            (i) reject the petition if it fails to demonstrate
21        reasonable cause to believe that an adjustment is
22        necessary; or
23            (ii) conduct such hearings, in accordance with
24        this Section, as may be necessary to determine whether
25        the petition should be granted in whole or in part.
26        (c) No petition may be filed pursuant to subparagraph

 

 

HB0321- 192 -LRB101 04001 HLH 49009 b

1    (a) of paragraph (2) of subsection (B) unless:
2            (i) at least nine months have expired since the
3        last promulgation of schedules of maximum rates; and
4            (ii) at least one-fourth of all community currency
5        exchange licensees join in a petition or, in the case
6        of ambulatory currency exchanges, a licensee or
7        licensees authorized to serve at least 100 locations
8        join in a petition.
9        (3) Any currency exchange may charge lower fees than
10    those of the applicable maximum fee schedule after filing
11    with the Secretary a schedule of fees it proposes to use.
12(Source: P.A. 100-22, eff. 1-1-18; 100-704, eff. 6-1-19.)
 
13    Section 70. The Corporate Fiduciary Act is amended by
14changing Section 6-14 as follows:
 
15    (205 ILCS 620/6-14)  (from Ch. 17, par. 1556-14)
16    Sec. 6-14. From time to time during receivership the
17Commissioner shall make and pay from monies of the corporate
18fiduciary a ratable dividend on all claims as may be proved to
19his or her satisfaction or adjudicated by the court. After one
20year from the entry of a judgment of dissolution, all unclaimed
21dividends shall be remitted to the State Treasurer in
22accordance with the Revised Uniform Disposition of Unclaimed
23Property Act, as now or hereafter amended, together with a list
24of all unpaid claimants, their last known addresses and the

 

 

HB0321- 193 -LRB101 04001 HLH 49009 b

1amounts unpaid.
2(Source: P.A. 100-22, eff. 1-1-18.)
 
3    Section 75. The Transmitters of Money Act is amended by
4changing Section 30 as follows:
 
5    (205 ILCS 657/30)
6    Sec. 30. Surety bond.
7    (a) An applicant for a license shall post and a licensee
8must maintain with the Director a bond or bonds issued by
9corporations qualified to do business as surety companies in
10this State.
11    (b) The applicant or licensee shall post a bond in the
12amount of $50,000 or an amount equal to 1% of all
13Illinois-based activity, whichever is greater, up to a maximum
14amount of $2,000,000. When the amount of the required bond
15exceeds $1,000,000, the applicant or licensee may, in the
16alternative, post a bond in the amount of $1,000,000 plus a
17dollar for dollar increase in the net worth of the applicant or
18licensee over and above the amount required in Section 20, up
19to a total amount of $2,000,000.
20    (c) The bond must be in a form satisfactory to the Director
21and shall run to the State of Illinois for the benefit of any
22claimant against the applicant or licensee with respect to the
23receipt, handling, transmission, and payment of money by the
24licensee or authorized seller in connection with the licensed

 

 

HB0321- 194 -LRB101 04001 HLH 49009 b

1operations. A claimant damaged by a breach of the conditions of
2a bond shall have a right to action upon the bond for damages
3suffered thereby and may bring suit directly on the bond, or
4the Director may bring suit on behalf of the claimant.
5    (d) (Blank).
6    (e) (Blank).
7    (f) After receiving a license, the licensee must maintain
8the required bond plus net worth (if applicable) until 5 years
9after it ceases to do business in this State unless all
10outstanding payment instruments are eliminated or the
11provisions under the Revised Uniform Disposition of Unclaimed
12Property Act have become operative and are adhered to by the
13licensee. Notwithstanding this provision, however, the amount
14required to be maintained may be reduced to the extent that the
15amount of the licensee's payment instruments outstanding in
16this State are reduced.
17    (g) If the Director at any time reasonably determines that
18the required bond is insecure, deficient in amount, or
19exhausted in whole or in part, he may in writing require the
20filing of a new or supplemental bond in order to secure
21compliance with this Act and may demand compliance with the
22requirement within 30 days following service on the licensee.
23(Source: P.A. 100-22, eff. 1-1-18; 100-640, eff. 7-27-18.)
 
24    Section 80. The Adverse Claims to Deposit Accounts Act is
25amended by changing Section 10 as follows:
 

 

 

HB0321- 195 -LRB101 04001 HLH 49009 b

1    (205 ILCS 700/10)
2    Sec. 10. Application of Act. This Act shall not preempt:
3        (1) the Revised Uniform Disposition of Unclaimed
4    Property Act, nor shall any provision of this Act be
5    construed to relieve any holder, including a financial
6    institution, from reporting and remitting all unclaimed
7    property, including deposit accounts, under the Revised
8    Uniform Disposition of Unclaimed Property Act;
9        (2) the Uniform Commercial Code, nor shall any
10    provision of this Act be construed as affecting the rights
11    of a person with respect to a deposit account under the
12    Uniform Commercial Code;
13        (3) the provisions of Section 2-1402 of the Code of
14    Civil Procedure, nor shall any provision of this Act be
15    construed as affecting the rights of a person with respect
16    to a deposit account under Section 2-1402 of the Code of
17    Civil Procedure;
18        (4) the provisions of Part 7 of Article II of the Code
19    of Civil Procedure, nor shall any provision of this Act be
20    construed as affecting the rights of a person with respect
21    to a deposit account under the provisions of Part 7 of
22    Article II of the Code of Civil Procedure;
23        (5) the provisions of Article XXV of the Probate Act of
24    1975, nor shall any provision of this Act be construed as
25    affecting the rights of a person with respect to a deposit

 

 

HB0321- 196 -LRB101 04001 HLH 49009 b

1    account under the provisions of Article XXV of the Probate
2    Act of 1975; or
3        (6) the Safety Deposit Box Opening Act, nor shall any
4    provision of this Act be construed as affecting the rights
5    of a person with respect to a deposit account under the
6    Safety Deposit Box Opening Act.
7(Source: P.A. 100-22, eff. 1-1-18.)
 
8    Section 85. The Illinois Insurance Code is amended by
9changing Section 210 as follows:
 
10    (215 ILCS 5/210)  (from Ch. 73, par. 822)
11    Sec. 210. Distribution of assets; priorities; unpaid
12dividends.
13    (1) Any time after the last day fixed for the filing of
14proofs of claims in the liquidation of a company, the court
15may, upon the application of the Director authorize him to
16declare out of the funds remaining in his hands, one or more
17dividends upon all claims allowed in accordance with the
18priorities established in Section 205.
19    (2) Where there has been no adjudication of insolvency, the
20Director shall pay all allowed claims in full in accordance
21with the priorities set forth in Section 205. The director
22shall not be chargeable for any assets so distributed to any
23claimant who has failed to file a proper proof of claim before
24such distribution has been made.

 

 

HB0321- 197 -LRB101 04001 HLH 49009 b

1    (3) When subsequent to an adjudication of insolvency,
2pursuant to Section 208, a surplus is found to exist after the
3payment in full of all allowed claims falling within the
4priorities set forth in paragraphs (a), (b), (c), (d), (e), (f)
5and (g) of subsection (1) of Section 205 and which have been
6duly filed prior to the last date fixed for the filing thereof,
7and after the setting aside of a reserve for all additional
8costs and expenses of the proceeding, the court shall set a new
9date for the filing of claims. After the expiration of the new
10date, all allowed claims filed on or before said new date
11together with all previously allowed claims falling within the
12priorities set forth in paragraphs (h) and (i) of subsection
13(1) of Section 205 shall be paid in accordance with the
14priorities set forth in Section 205.
15    (4) Dividends remaining unclaimed or unpaid in the hands of
16the Director for 6 months after the final order of distribution
17may be by him deposited in one or more savings and loan
18associations, State or national banks, trust companies or
19savings banks to the credit of the Director, whomsoever he may
20be, in trust for the person entitled thereto, but no such
21person shall be entitled to any interest upon such deposit. All
22such deposits shall be entitled to priority of payment in case
23of the insolvency or voluntary or involuntary liquidation of
24the depositary on an equality with any other priority given by
25the banking law. Any such funds together with interest, if any,
26paid or credited thereon, remaining and unclaimed in the hands

 

 

HB0321- 198 -LRB101 04001 HLH 49009 b

1of the Director in Trust after 2 years shall be presumed
2abandoned and reported and delivered to the State Treasurer and
3become subject to the provisions of the Revised Uniform
4Disposition of Unclaimed Property Act.
5(Source: P.A. 100-22, eff. 1-1-18.)
 
6    Section 90. The Unclaimed Life Insurance Benefits Act is
7amended by changing Sections 5, 15, and 20 as follows:
 
8    (215 ILCS 185/5)
9    Sec. 5. Purpose. This Act shall require recognition of the
10Revised Uniform Disposition of Unclaimed Property Act and
11require the complete and proper disclosure, transparency, and
12accountability relating to any method of payment for life
13insurance, annuity, or retained asset agreement death
14benefits.
15(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)
 
16    (215 ILCS 185/15)
17    Sec. 15. Insurer conduct.
18    (a) An insurer shall initially perform a comparison of its
19insureds', annuitants', and retained asset account holders'
20in-force policies, annuity contracts, and retained asset
21accounts in force on or after January 1, 2017 by using the full
22Death Master File. The initial comparison shall be completed on
23or before December 31, 2017. An insurer required to perform a

 

 

HB0321- 199 -LRB101 04001 HLH 49009 b

1comparison of its insureds', annuitants', and retained asset
2account holders' in-force policies, annuity contracts, and
3retained asset accounts in force on or after January 1, 2012
4shall perform a comparison of policies, annuity contracts, and
5retained asset accounts in force between January 1, 2012 and
6December 31, 2016 on or before December 31, 2018 by using the
7full Death Master File. An insurer required to perform a
8comparison of electronic searchable files concerning its
9insureds', annuitants', and retained asset account holders'
10in-force policies, annuity contracts, and retained asset
11accounts in force on or after January 1, 2000 shall perform a
12comparison of policies, annuity contracts, and retained asset
13accounts in force between January 1, 2000 and December 31, 2016
14on or before December 31, 2018 by using the full Death Master
15File. Thereafter, an insurer shall perform a comparison on at
16least a semi-annual basis using the Death Master File update
17files for comparisons to identify potential matches of its
18insureds, annuitants, and retained asset account holders. In
19the event that one of the insurer's lines of business conducts
20a search for matches of its insureds, annuitants, and retained
21asset account holders against the Death Master File at
22intervals more frequently than semi-annually, then all lines of
23the insurer's business shall conduct searches for matches
24against the Death Master File with the same frequency. Within 6
25months after acquisition of policies, annuity contracts, or
26retained asset accounts from another insurer, the acquiring

 

 

HB0321- 200 -LRB101 04001 HLH 49009 b

1insurer shall compare all newly acquired policies, annuity
2contracts, and retained asset accounts that were not searched
3by the previous insurer in compliance with this Act against the
4complete Death Master File to identify potential matches of its
5insureds, annuitants, and retained asset account holders. Upon
6any subsequent acquisition of policies, annuity contracts, or
7retained asset accounts from another insurer, when the previous
8insurer has already conducted a search of the newly acquired
9policies, annuity contracts, and retained asset accounts using
10the complete Death Master File, the acquiring insurer shall
11compare all newly acquired policies, annuity contracts, and
12retained asset accounts using all of the Death Master File
13updates since the time the previous insurer conducted the
14complete search to identify potential matches of its insureds,
15annuitants, and retained asset account holders.
16    An insured, an annuitant, or a retained asset account
17holder is presumed dead if the date of his or her death is
18indicated by the comparison required in this subsection (a),
19unless the insurer has competent and substantial evidence that
20the person is living, including, but not limited to, a contact
21made by the insurer with the person or his or her legal
22representative.
23    For those potential matches identified as a result of a
24Death Master File match, the insurer shall within 120 days
25after the date of death notice, if the insurer has not been
26contacted by a beneficiary, determine whether benefits are due

 

 

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1in accordance with the applicable policy or contract and, if
2benefits are due in accordance with the applicable policy or
3contract:
4        (1) use good faith efforts, which shall be documented
5    by the insurer, to locate the beneficiary or beneficiaries;
6    the Department shall establish by administrative rule
7    minimum standards for what constitutes good faith efforts
8    to locate a beneficiary, which shall include: (A) searching
9    insurer records; (B) the appropriate use of First Class
10    United States mail, e-mail addresses, and telephone calls;
11    and (C) reasonable efforts by insurers to obtain updated
12    contact information for the beneficiary or beneficiaries;
13    good faith efforts shall not include additional attempts to
14    contact the beneficiary at an address already confirmed not
15    to be current; and
16        (2) provide the appropriate claims forms or
17    instructions to the beneficiary or beneficiaries to make a
18    claim, including the need to provide an official death
19    certificate if applicable under the policy or annuity
20    contract.
21    (b) Insurers shall implement procedures to account for the
22following when conducting searches of the Death Master File:
23        (1) common nicknames, initials used in lieu of a first
24    or middle name, use of a middle name, compound first and
25    middle names, and interchanged first and middle names;
26        (2) compound last names, maiden or married names, and

 

 

HB0321- 202 -LRB101 04001 HLH 49009 b

1    hyphens, blank spaces, or apostrophes in last names;
2        (3) transposition of the "month" and "date" portions of
3    the date of birth; and
4        (4) incomplete social security numbers.
5    (c) To the extent permitted by law, an insurer may disclose
6the minimum necessary personal information about the insured,
7annuity owner, retained asset account holder, or beneficiary to
8a person whom the insurer reasonably believes may be able to
9assist the insurer with locating the beneficiary or a person
10otherwise entitled to payment of the claims proceeds.
11    (d) An insurer or its service provider shall not charge any
12beneficiary or other authorized representative for any fees or
13costs associated with a Death Master File search or
14verification of a Death Master File match conducted pursuant to
15this Act.
16    (e) The benefits from a policy, annuity contract, or a
17retained asset account, plus any applicable accrued interest,
18shall first be payable to the designated beneficiaries or
19owners and, in the event the beneficiaries or owners cannot be
20found, shall be reported and delivered to the State Treasurer
21pursuant to the Revised Uniform Disposition of Unclaimed
22Property Act. Nothing in this subsection (e) is intended to
23alter the amounts reportable under the existing provisions of
24the Revised Uniform Disposition of Unclaimed Property Act or to
25allow the imposition of additional statutory interest under
26Article XIV of the Illinois Insurance Code.

 

 

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1    (f) Failure to meet any requirement of this Section with
2such frequency as to constitute a general business practice is
3a violation of Section 424 of the Illinois Insurance Code.
4Nothing in this Section shall be construed to create or imply a
5private cause of action for a violation of this Section.
6(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18;
7100-543, eff. 1-1-18; 100-863, eff. 8-14-18.)
 
8    (215 ILCS 185/20)
9    Sec. 20. Revised Uniform Disposition of Unclaimed Property
10Act. Nothing in this Act shall be construed to amend, modify,
11or supersede the Revised Uniform Disposition of Unclaimed
12Property Act, including the authority of the State Treasurer to
13examine the records of any person if the State Treasurer has
14reason to believe that such person has failed to report
15property that should have been reported pursuant to the Revised
16Uniform Disposition of Unclaimed Property Act.
17(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.)
 
18    Section 95. The Real Estate License Act of 2000 is amended
19by changing Section 20-20 as follows:
 
20    (225 ILCS 454/20-20)
21    (Section scheduled to be repealed on January 1, 2020)
22    Sec. 20-20. Grounds for discipline.
23    (a) The Department may refuse to issue or renew a license,

 

 

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1may place on probation, suspend, or revoke any license,
2reprimand, or take any other disciplinary or non-disciplinary
3action as the Department may deem proper and impose a fine not
4to exceed $25,000 upon any licensee or applicant under this Act
5or any person who holds himself or herself out as an applicant
6or licensee or against a licensee in handling his or her own
7property, whether held by deed, option, or otherwise, for any
8one or any combination of the following causes:
9        (1) Fraud or misrepresentation in applying for, or
10    procuring, a license under this Act or in connection with
11    applying for renewal of a license under this Act.
12        (2) The conviction of or plea of guilty or plea of nolo
13    contendere to a felony or misdemeanor in this State or any
14    other jurisdiction; or the entry of an administrative
15    sanction by a government agency in this State or any other
16    jurisdiction. Action taken under this paragraph (2) for a
17    misdemeanor or an administrative sanction is limited to a
18    misdemeanor or administrative sanction that has as an
19    essential element dishonesty or fraud or involves larceny,
20    embezzlement, or obtaining money, property, or credit by
21    false pretenses or by means of a confidence game.
22        (3) Inability to practice the profession with
23    reasonable judgment, skill, or safety as a result of a
24    physical illness, including, but not limited to,
25    deterioration through the aging process or loss of motor
26    skill, or a mental illness or disability.

 

 

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1        (4) Practice under this Act as a licensee in a retail
2    sales establishment from an office, desk, or space that is
3    not separated from the main retail business by a separate
4    and distinct area within the establishment.
5        (5) Having been disciplined by another state, the
6    District of Columbia, a territory, a foreign nation, or a
7    governmental agency authorized to impose discipline if at
8    least one of the grounds for that discipline is the same as
9    or the equivalent of one of the grounds for which a
10    licensee may be disciplined under this Act. A certified
11    copy of the record of the action by the other state or
12    jurisdiction shall be prima facie evidence thereof.
13        (6) Engaging in the practice of real estate brokerage
14    without a license or after the licensee's license or
15    temporary permit was expired or while the license was
16    inoperative.
17        (7) Cheating on or attempting to subvert the Real
18    Estate License Exam or continuing education exam.
19        (8) Aiding or abetting an applicant to subvert or cheat
20    on the Real Estate License Exam or continuing education
21    exam administered pursuant to this Act.
22        (9) Advertising that is inaccurate, misleading, or
23    contrary to the provisions of the Act.
24        (10) Making any substantial misrepresentation or
25    untruthful advertising.
26        (11) Making any false promises of a character likely to

 

 

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1    influence, persuade, or induce.
2        (12) Pursuing a continued and flagrant course of
3    misrepresentation or the making of false promises through
4    licensees, employees, agents, advertising, or otherwise.
5        (13) Any misleading or untruthful advertising, or
6    using any trade name or insignia of membership in any real
7    estate organization of which the licensee is not a member.
8        (14) Acting for more than one party in a transaction
9    without providing written notice to all parties for whom
10    the licensee acts.
11        (15) Representing or attempting to represent a broker
12    other than the sponsoring broker.
13        (16) Failure to account for or to remit any moneys or
14    documents coming into his or her possession that belong to
15    others.
16        (17) Failure to maintain and deposit in a special
17    account, separate and apart from personal and other
18    business accounts, all escrow moneys belonging to others
19    entrusted to a licensee while acting as a broker, escrow
20    agent, or temporary custodian of the funds of others or
21    failure to maintain all escrow moneys on deposit in the
22    account until the transactions are consummated or
23    terminated, except to the extent that the moneys, or any
24    part thereof, shall be:
25            (A) disbursed prior to the consummation or
26        termination (i) in accordance with the written

 

 

HB0321- 207 -LRB101 04001 HLH 49009 b

1        direction of the principals to the transaction or their
2        duly authorized agents, (ii) in accordance with
3        directions providing for the release, payment, or
4        distribution of escrow moneys contained in any written
5        contract signed by the principals to the transaction or
6        their duly authorized agents, or (iii) pursuant to an
7        order of a court of competent jurisdiction; or
8            (B) deemed abandoned and transferred to the Office
9        of the State Treasurer to be handled as unclaimed
10        property pursuant to the Revised Uniform Disposition
11        of Unclaimed Property Act. Escrow moneys may be deemed
12        abandoned under this subparagraph (B) only: (i) in the
13        absence of disbursement under subparagraph (A); (ii)
14        in the absence of notice of the filing of any claim in
15        a court of competent jurisdiction; and (iii) if 6
16        months have elapsed after the receipt of a written
17        demand for the escrow moneys from one of the principals
18        to the transaction or the principal's duly authorized
19        agent.
20    The account shall be noninterest bearing, unless the
21    character of the deposit is such that payment of interest
22    thereon is otherwise required by law or unless the
23    principals to the transaction specifically require, in
24    writing, that the deposit be placed in an interest bearing
25    account.
26        (18) Failure to make available to the Department all

 

 

HB0321- 208 -LRB101 04001 HLH 49009 b

1    escrow records and related documents maintained in
2    connection with the practice of real estate within 24 hours
3    of a request for those documents by Department personnel.
4        (19) Failing to furnish copies upon request of
5    documents relating to a real estate transaction to a party
6    who has executed that document.
7        (20) Failure of a sponsoring broker to timely provide
8    information, sponsor cards, or termination of licenses to
9    the Department.
10        (21) Engaging in dishonorable, unethical, or
11    unprofessional conduct of a character likely to deceive,
12    defraud, or harm the public.
13        (22) Commingling the money or property of others with
14    his or her own money or property.
15        (23) Employing any person on a purely temporary or
16    single deal basis as a means of evading the law regarding
17    payment of commission to nonlicensees on some contemplated
18    transactions.
19        (24) Permitting the use of his or her license as a
20    broker to enable a leasing agent or unlicensed person to
21    operate a real estate business without actual
22    participation therein and control thereof by the broker.
23        (25) Any other conduct, whether of the same or a
24    different character from that specified in this Section,
25    that constitutes dishonest dealing.
26        (26) Displaying a "for rent" or "for sale" sign on any

 

 

HB0321- 209 -LRB101 04001 HLH 49009 b

1    property without the written consent of an owner or his or
2    her duly authorized agent or advertising by any means that
3    any property is for sale or for rent without the written
4    consent of the owner or his or her authorized agent.
5        (27) Failing to provide information requested by the
6    Department, or otherwise respond to that request, within 30
7    days of the request.
8        (28) Advertising by means of a blind advertisement,
9    except as otherwise permitted in Section 10-30 of this Act.
10        (29) Offering guaranteed sales plans, as defined in
11    clause (A) of this subdivision (29), except to the extent
12    hereinafter set forth:
13            (A) A "guaranteed sales plan" is any real estate
14        purchase or sales plan whereby a licensee enters into a
15        conditional or unconditional written contract with a
16        seller, prior to entering into a brokerage agreement
17        with the seller, by the terms of which a licensee
18        agrees to purchase a property of the seller within a
19        specified period of time at a specific price in the
20        event the property is not sold in accordance with the
21        terms of a brokerage agreement to be entered into
22        between the sponsoring broker and the seller.
23            (B) A licensee offering a guaranteed sales plan
24        shall provide the details and conditions of the plan in
25        writing to the party to whom the plan is offered.
26            (C) A licensee offering a guaranteed sales plan

 

 

HB0321- 210 -LRB101 04001 HLH 49009 b

1        shall provide to the party to whom the plan is offered
2        evidence of sufficient financial resources to satisfy
3        the commitment to purchase undertaken by the broker in
4        the plan.
5            (D) Any licensee offering a guaranteed sales plan
6        shall undertake to market the property of the seller
7        subject to the plan in the same manner in which the
8        broker would market any other property, unless the
9        agreement with the seller provides otherwise.
10            (E) The licensee cannot purchase seller's property
11        until the brokerage agreement has ended according to
12        its terms or is otherwise terminated.
13            (F) Any licensee who fails to perform on a
14        guaranteed sales plan in strict accordance with its
15        terms shall be subject to all the penalties provided in
16        this Act for violations thereof and, in addition, shall
17        be subject to a civil fine payable to the party injured
18        by the default in an amount of up to $25,000.
19        (30) Influencing or attempting to influence, by any
20    words or acts, a prospective seller, purchaser, occupant,
21    landlord, or tenant of real estate, in connection with
22    viewing, buying, or leasing real estate, so as to promote
23    or tend to promote the continuance or maintenance of
24    racially and religiously segregated housing or so as to
25    retard, obstruct, or discourage racially integrated
26    housing on or in any street, block, neighborhood, or

 

 

HB0321- 211 -LRB101 04001 HLH 49009 b

1    community.
2        (31) Engaging in any act that constitutes a violation
3    of any provision of Article 3 of the Illinois Human Rights
4    Act, whether or not a complaint has been filed with or
5    adjudicated by the Human Rights Commission.
6        (32) Inducing any party to a contract of sale or lease
7    or brokerage agreement to break the contract of sale or
8    lease or brokerage agreement for the purpose of
9    substituting, in lieu thereof, a new contract for sale or
10    lease or brokerage agreement with a third party.
11        (33) Negotiating a sale, exchange, or lease of real
12    estate directly with any person if the licensee knows that
13    the person has an exclusive brokerage agreement with
14    another broker, unless specifically authorized by that
15    broker.
16        (34) When a licensee is also an attorney, acting as the
17    attorney for either the buyer or the seller in the same
18    transaction in which the licensee is acting or has acted as
19    a managing broker or broker.
20        (35) Advertising or offering merchandise or services
21    as free if any conditions or obligations necessary for
22    receiving the merchandise or services are not disclosed in
23    the same advertisement or offer. These conditions or
24    obligations include without limitation the requirement
25    that the recipient attend a promotional activity or visit a
26    real estate site. As used in this subdivision (35), "free"

 

 

HB0321- 212 -LRB101 04001 HLH 49009 b

1    includes terms such as "award", "prize", "no charge", "free
2    of charge", "without charge", and similar words or phrases
3    that reasonably lead a person to believe that he or she may
4    receive or has been selected to receive something of value,
5    without any conditions or obligations on the part of the
6    recipient.
7        (36) (Blank).
8        (37) Violating the terms of a disciplinary order issued
9    by the Department.
10        (38) Paying or failing to disclose compensation in
11    violation of Article 10 of this Act.
12        (39) Requiring a party to a transaction who is not a
13    client of the licensee to allow the licensee to retain a
14    portion of the escrow moneys for payment of the licensee's
15    commission or expenses as a condition for release of the
16    escrow moneys to that party.
17        (40) Disregarding or violating any provision of this
18    Act or the published rules adopted by the Department to
19    enforce this Act or aiding or abetting any individual,
20    foreign or domestic partnership, registered limited
21    liability partnership, limited liability company,
22    corporation, or other business entity in disregarding any
23    provision of this Act or the published rules adopted by the
24    Department to enforce this Act.
25        (41) Failing to provide the minimum services required
26    by Section 15-75 of this Act when acting under an exclusive

 

 

HB0321- 213 -LRB101 04001 HLH 49009 b

1    brokerage agreement.
2        (42) Habitual or excessive use or addiction to alcohol,
3    narcotics, stimulants, or any other chemical agent or drug
4    that results in a managing broker, broker, or leasing
5    agent's inability to practice with reasonable skill or
6    safety.
7        (43) Enabling, aiding, or abetting an auctioneer, as
8    defined in the Auction License Act, to conduct a real
9    estate auction in a manner that is in violation of this
10    Act.
11        (44) Permitting any leasing agent or temporary leasing
12    agent permit holder to engage in activities that require a
13    broker's or managing broker's license.
14    (b) The Department may refuse to issue or renew or may
15suspend the license of any person who fails to file a return,
16pay the tax, penalty or interest shown in a filed return, or
17pay any final assessment of tax, penalty, or interest, as
18required by any tax Act administered by the Department of
19Revenue, until such time as the requirements of that tax Act
20are satisfied in accordance with subsection (g) of Section
212105-15 of the Civil Administrative Code of Illinois.
22    (c) (Blank).
23    (d) In cases where the Department of Healthcare and Family
24Services (formerly Department of Public Aid) has previously
25determined that a licensee or a potential licensee is more than
2630 days delinquent in the payment of child support and has

 

 

HB0321- 214 -LRB101 04001 HLH 49009 b

1subsequently certified the delinquency to the Department may
2refuse to issue or renew or may revoke or suspend that person's
3license or may take other disciplinary action against that
4person based solely upon the certification of delinquency made
5by the Department of Healthcare and Family Services in
6accordance with item (5) of subsection (a) of Section 2105-15
7of the Civil Administrative Code of Illinois.
8    (e) In enforcing this Section, the Department or Board upon
9a showing of a possible violation may compel an individual
10licensed to practice under this Act, or who has applied for
11licensure under this Act, to submit to a mental or physical
12examination, or both, as required by and at the expense of the
13Department. The Department or Board may order the examining
14physician to present testimony concerning the mental or
15physical examination of the licensee or applicant. No
16information shall be excluded by reason of any common law or
17statutory privilege relating to communications between the
18licensee or applicant and the examining physician. The
19examining physicians shall be specifically designated by the
20Board or Department. The individual to be examined may have, at
21his or her own expense, another physician of his or her choice
22present during all aspects of this examination. Failure of an
23individual to submit to a mental or physical examination, when
24directed, shall be grounds for suspension of his or her license
25until the individual submits to the examination if the
26Department finds, after notice and hearing, that the refusal to

 

 

HB0321- 215 -LRB101 04001 HLH 49009 b

1submit to the examination was without reasonable cause.
2    If the Department or Board finds an individual unable to
3practice because of the reasons set forth in this Section, the
4Department or Board may require that individual to submit to
5care, counseling, or treatment by physicians approved or
6designated by the Department or Board, as a condition, term, or
7restriction for continued, reinstated, or renewed licensure to
8practice; or, in lieu of care, counseling, or treatment, the
9Department may file, or the Board may recommend to the
10Department to file, a complaint to immediately suspend, revoke,
11or otherwise discipline the license of the individual. An
12individual whose license was granted, continued, reinstated,
13renewed, disciplined or supervised subject to such terms,
14conditions, or restrictions, and who fails to comply with such
15terms, conditions, or restrictions, shall be referred to the
16Secretary for a determination as to whether the individual
17shall have his or her license suspended immediately, pending a
18hearing by the Department.
19    In instances in which the Secretary immediately suspends a
20person's license under this Section, a hearing on that person's
21license must be convened by the Department within 30 days after
22the suspension and completed without appreciable delay. The
23Department and Board shall have the authority to review the
24subject individual's record of treatment and counseling
25regarding the impairment to the extent permitted by applicable
26federal statutes and regulations safeguarding the

 

 

HB0321- 216 -LRB101 04001 HLH 49009 b

1confidentiality of medical records.
2    An individual licensed under this Act and affected under
3this Section shall be afforded an opportunity to demonstrate to
4the Department or Board that he or she can resume practice in
5compliance with acceptable and prevailing standards under the
6provisions of his or her license.
7(Source: P.A. 99-227, eff. 8-3-15; 100-22, eff. 1-1-18;
8100-188, eff. 1-1-18; 100-534, eff. 9-22-17; 100-831, eff.
91-1-19; 100-863, eff. 8-14-18; 100-872, eff. 8-14-18; revised
1010-22-18.)
 
11    Section 100. The Code of Criminal Procedure of 1963 is
12amended by changing Section 110-17 as follows:
 
13    (725 ILCS 5/110-17)  (from Ch. 38, par. 110-17)
14    Sec. 110-17. Unclaimed bail deposits. Any sum of money
15deposited by any person to secure his or her release from
16custody which remains unclaimed by the person entitled to its
17return for 3 years after the conditions of the bail bond have
18been performed and the accused has been discharged from all
19obligations in the cause shall be presumed to be abandoned and
20subject to disposition under the Revised Uniform Disposition of
21Unclaimed Property Act.
22    (a) (Blank).
23    (b) (Blank).
24    (c) (Blank).

 

 

HB0321- 217 -LRB101 04001 HLH 49009 b

1    (d) (Blank).
2    (e) (Blank).
3(Source: P.A. 100-22, eff. 1-1-18; 100-929, eff. 1-1-19;
4revised 10-3-18.)
 
5    Section 105. The Probate Act of 1975 is amended by changing
6Sections 2-1 and 2-2 as follows:
 
7    (755 ILCS 5/2-1)  (from Ch. 110 1/2, par. 2-1)
8    Sec. 2-1. Rules of descent and distribution. The intestate
9real and personal estate of a resident decedent and the
10intestate real estate in this State of a nonresident decedent,
11after all just claims against his estate are fully paid,
12descends and shall be distributed as follows:
13    (a) If there is a surviving spouse and also a descendant of
14the decedent: 1/2 of the entire estate to the surviving spouse
15and 1/2 to the decedent's descendants per stirpes.
16    (b) If there is no surviving spouse but a descendant of the
17decedent: the entire estate to the decedent's descendants per
18stirpes.
19    (c) If there is a surviving spouse but no descendant of the
20decedent: the entire estate to the surviving spouse.
21    (d) If there is no surviving spouse or descendant but a
22parent, brother, sister or descendant of a brother or sister of
23the decedent: the entire estate to the parents, brothers and
24sisters of the decedent in equal parts, allowing to the

 

 

HB0321- 218 -LRB101 04001 HLH 49009 b

1surviving parent if one is dead a double portion and to the
2descendants of a deceased brother or sister per stirpes the
3portion which the deceased brother or sister would have taken
4if living.
5    (e) If there is no surviving spouse, descendant, parent,
6brother, sister or descendant of a brother or sister of the
7decedent but a grandparent or descendant of a grandparent of
8the decedent: (1) 1/2 of the entire estate to the decedent's
9maternal grandparents in equal parts or to the survivor of
10them, or if there is none surviving, to their descendants per
11stirpes, and (2) 1/2 of the entire estate to the decedent's
12paternal grandparents in equal parts or to the survivor of
13them, or if there is none surviving, to their descendants per
14stirpes. If there is no surviving paternal grandparent or
15descendant of a paternal grandparent, but a maternal
16grandparent or descendant of a maternal grandparent of the
17decedent: the entire estate to the decedent's maternal
18grandparents in equal parts or to the survivor of them, or if
19there is none surviving, to their descendants per stirpes. If
20there is no surviving maternal grandparent or descendant of a
21maternal grandparent, but a paternal grandparent or descendant
22of a paternal grandparent of the decedent: the entire estate to
23the decedent's paternal grandparents in equal parts or to the
24survivor of them, or if there is none surviving, to their
25descendants per stirpes.
26    (f) If there is no surviving spouse, descendant, parent,

 

 

HB0321- 219 -LRB101 04001 HLH 49009 b

1brother, sister, descendant of a brother or sister or
2grandparent or descendant of a grandparent of the decedent: (1)
31/2 of the entire estate to the decedent's maternal
4great-grandparents in equal parts or to the survivor of them,
5or if there is none surviving, to their descendants per
6stirpes, and (2) 1/2 of the entire estate to the decedent's
7paternal great-grandparents in equal parts or to the survivor
8of them, or if there is none surviving, to their descendants
9per stirpes. If there is no surviving paternal
10great-grandparent or descendant of a paternal
11great-grandparent, but a maternal great-grandparent or
12descendant of a maternal great-grandparent of the decedent: the
13entire estate to the decedent's maternal great-grandparents in
14equal parts or to the survivor of them, or if there is none
15surviving, to their descendants per stirpes. If there is no
16surviving maternal great-grandparent or descendant of a
17maternal great-grandparent, but a paternal great-grandparent
18or descendant of a paternal great-grandparent of the decedent:
19the entire estate to the decedent's paternal
20great-grandparents in equal parts or to the survivor of them,
21or if there is none surviving, to their descendants per
22stirpes.
23    (g) If there is no surviving spouse, descendant, parent,
24brother, sister, descendant of a brother or sister,
25grandparent, descendant of a grandparent, great-grandparent or
26descendant of a great-grandparent of the decedent: the entire

 

 

HB0321- 220 -LRB101 04001 HLH 49009 b

1estate in equal parts to the nearest kindred of the decedent in
2equal degree (computing by the rules of the civil law) and
3without representation.
4    (h) If there is no surviving spouse and no known kindred of
5the decedent: the real estate escheats to the county in which
6it is located; the personal estate physically located within
7this State and the personal estate physically located or held
8outside this State which is the subject of ancillary
9administration of an estate being administered within this
10State escheats to the county of which the decedent was a
11resident, or, if the decedent was not a resident of this State,
12to the county in which it is located; all other personal
13property of the decedent of every class and character, wherever
14situate, or the proceeds thereof, shall escheat to this State
15and be delivered to the State Treasurer pursuant to the Revised
16Uniform Disposition of Unclaimed Property Act.
17    In no case is there any distinction between the kindred of
18the whole and the half blood.
19(Source: P.A. 100-22, eff. 1-1-18.)
 
20    (755 ILCS 5/2-2)  (from Ch. 110 1/2, par. 2-2)
21    Sec. 2-2. Children born out of wedlock. The intestate real
22and personal estate of a resident decedent who was a child born
23out of wedlock at the time of death and the intestate real
24estate in this State of a nonresident decedent who was a child
25born out of wedlock at the time of death, after all just claims

 

 

HB0321- 221 -LRB101 04001 HLH 49009 b

1against his estate are fully paid, descends and shall be
2distributed as provided in Section 2-1, subject to Section
32-6.5 of this Act, if both parents are eligible parents. As
4used in this Section, "eligible parent" means a parent of the
5decedent who, during the decedent's lifetime, acknowledged the
6decedent as the parent's child, established a parental
7relationship with the decedent, and supported the decedent as
8the parent's child. "Eligible parents" who are in arrears of in
9excess of one year's child support obligations shall not
10receive any property benefit or other interest of the decedent
11unless and until a court of competent jurisdiction makes a
12determination as to the effect on the deceased of the arrearage
13and allows a reduced benefit. In no event shall the reduction
14of the benefit or other interest be less than the amount of
15child support owed for the support of the decedent at the time
16of death. The court's considerations shall include but are not
17limited to the considerations in subsections (1) through (3) of
18Section 2-6.5 of this Act.
19    If neither parent is an eligible parent, the intestate real
20and personal estate of a resident decedent who was a child born
21out of wedlock at the time of death and the intestate real
22estate in this State of a nonresident decedent who was a child
23born out of wedlock at the time of death, after all just claims
24against his or her estate are fully paid, descends and shall be
25distributed as provided in Section 2-1, but the parents of the
26decedent shall be treated as having predeceased the decedent.

 

 

HB0321- 222 -LRB101 04001 HLH 49009 b

1    If only one parent is an eligible parent, the intestate
2real and personal estate of a resident decedent who was a child
3born out of wedlock at the time of death and the intestate real
4estate in this State of a nonresident decedent who was a child
5born out of wedlock at the time of death, after all just claims
6against his or her estate are fully paid, subject to Section
72-6.5 of this Act, descends and shall be distributed as
8follows:
9    (a) If there is a surviving spouse and also a descendant of
10the decedent: 1/2 of the entire estate to the surviving spouse
11and 1/2 to the decedent's descendants per stirpes.
12    (b) If there is no surviving spouse but a descendant of the
13decedent: the entire estate to the decedent's descendants per
14stirpes.
15    (c) If there is a surviving spouse but no descendant of the
16decedent: the entire estate to the surviving spouse.
17    (d) If there is no surviving spouse or descendant but the
18eligible parent or a descendant of the eligible parent of the
19decedent: the entire estate to the eligible parent and the
20eligible parent's descendants, allowing 1/2 to the eligible
21parent and 1/2 to the eligible parent's descendants per
22stirpes.
23    (e) If there is no surviving spouse, descendant, eligible
24parent, or descendant of the eligible parent of the decedent,
25but a grandparent on the eligible parent's side of the family
26or descendant of such grandparent of the decedent: the entire

 

 

HB0321- 223 -LRB101 04001 HLH 49009 b

1estate to the decedent's grandparents on the eligible parent's
2side of the family in equal parts, or to the survivor of them,
3or if there is none surviving, to their descendants per
4stirpes.
5    (f) If there is no surviving spouse, descendant, eligible
6parent, descendant of the eligible parent, grandparent on the
7eligible parent's side of the family, or descendant of such
8grandparent of the decedent: the entire estate to the
9decedent's great-grandparents on the eligible parent's side of
10the family in equal parts or to the survivor of them, or if
11there is none surviving, to their descendants per stirpes.
12    (g) If there is no surviving spouse, descendant, eligible
13parent, descendant of the eligible parent, grandparent on the
14eligible parent's side of the family, descendant of such
15grandparent, great-grandparent on the eligible parent's side
16of the family, or descendant of such great-grandparent of the
17decedent: the entire estate in equal parts to the nearest
18kindred of the eligible parent of the decedent in equal degree
19(computing by the rules of the civil law) and without
20representation.
21    (h) If there is no surviving spouse, descendant, or
22eligible parent of the decedent and no known kindred of the
23eligible parent of the decedent: the real estate escheats to
24the county in which it is located; the personal estate
25physically located within this State and the personal estate
26physically located or held outside this State which is the

 

 

HB0321- 224 -LRB101 04001 HLH 49009 b

1subject of ancillary administration within this State escheats
2to the county of which the decedent was a resident or, if the
3decedent was not a resident of this State, to the county in
4which it is located; all other personal property of the
5decedent of every class and character, wherever situate, or the
6proceeds thereof, shall escheat to this State and be delivered
7to the State Treasurer of this State pursuant to the Revised
8Uniform Disposition of Unclaimed Property Act.
9    For purposes of inheritance, the changes made by this
10amendatory Act of 1998 apply to all decedents who die on or
11after the effective date of this amendatory Act of 1998. For
12the purpose of determining the property rights of any person
13under any instrument, the changes made by this amendatory Act
14of 1998 apply to all instruments executed on or after the
15effective date of this amendatory Act of 1998.
16    A child born out of wedlock is heir of his mother and of
17any maternal ancestor and of any person from whom his mother
18might have inherited, if living; and the descendants of a
19person who was a child born out of wedlock shall represent such
20person and take by descent any estate which the parent would
21have taken, if living. If a decedent has acknowledged paternity
22of a child born out of wedlock or if during his lifetime or
23after his death a decedent has been adjudged to be the father
24of a child born out of wedlock, that person is heir of his
25father and of any paternal ancestor and of any person from whom
26his father might have inherited, if living; and the descendants

 

 

HB0321- 225 -LRB101 04001 HLH 49009 b

1of a person who was a child born out of wedlock shall represent
2that person and take by descent any estate which the parent
3would have taken, if living. If during his lifetime the
4decedent was adjudged to be the father of a child born out of
5wedlock by a court of competent jurisdiction, an authenticated
6copy of the judgment is sufficient proof of the paternity; but
7in all other cases paternity must be proved by clear and
8convincing evidence. A person who was a child born out of
9wedlock whose parents intermarry and who is acknowledged by the
10father as the father's child is a lawful child of the father.
11After a child born out of wedlock is adopted, that person's
12relationship to his or her adopting and natural parents shall
13be governed by Section 2-4 of this Act. For purposes of
14inheritance, the changes made by this amendatory Act of 1997
15apply to all decedents who die on or after January 1, 1998. For
16the purpose of determining the property rights of any person
17under any instrument, the changes made by this amendatory Act
18of 1997 apply to all instruments executed on or after January
191, 1998.
20(Source: P.A. 100-22, eff. 1-1-18.)
 
21    Section 110. The Sale of Unclaimed Property Act is amended
22by changing Section 3 as follows:
 
23    (770 ILCS 90/3)  (from Ch. 141, par. 3)
24    Sec. 3. All persons other than common carriers having a

 

 

HB0321- 226 -LRB101 04001 HLH 49009 b

1lien on personal property, by virtue of the Innkeepers Lien Act
2or for more than $2,000 by virtue of the Labor and Storage Lien
3Act may enforce the lien by a sale of the property, on giving
4to the owner thereof, if he and his residence be known to the
5person having such lien, 30 days' notice by certified mail, in
6writing of the time and place of such sale, and if the owner or
7his place of residence be unknown to the person having such
8lien, then upon his filing his affidavit to that effect with
9the clerk of the circuit court in the county where such
10property is situated; notice of the sale may be given by
11publishing the same once in each week for 3 successive weeks in
12some newspaper of general circulation published in the county,
13and out of the proceeds of the sale all costs and charges for
14advertising and making the same, and the amount of the lien
15shall be paid, and the surplus, if any, shall be paid to the
16owner of the property or, if not claimed by said owner, such
17surplus, if any, shall be disposed under the Revised Uniform
18Disposition of Unclaimed Property Act. All sales pursuant to
19this Section must be public and conducted in a commercially
20reasonable manner so as to maximize the net proceeds of the
21sale. Conformity to the requirements of this Act shall be a
22perpetual bar to any action against such lienor by any person
23for the recovery of such chattels or the value thereof or any
24damages growing out of the failure of such person to receive
25such chattels.
26(Source: P.A. 100-22, eff. 1-1-18.)
 

 

 

HB0321- 227 -LRB101 04001 HLH 49009 b

1    Section 115. The Business Corporation Act of 1983 is
2amended by changing Section 12.70 as follows:
 
3    (805 ILCS 5/12.70)  (from Ch. 32, par. 12.70)
4    Sec. 12.70. Deposit of amount due certain shareholders.
5Upon the distribution of the assets of a corporation among its
6shareholders, the distributive portion to which a shareholder
7would be entitled who is unknown or can not cannot be found, or
8who is under disability and there is no person legally
9competent to receive such distributive portion, shall be
10presumed abandoned and reported and delivered to the State
11Treasurer and become subject to the provision of the Revised
12Uniform Disposition of Unclaimed Property Act. In the event
13such distribution is made other than in cash, such distributive
14portion of the assets shall be reduced to cash before being so
15reported and delivered.
16(Source: P.A. 100-22, eff. 1-1-18.)
 
17    Section 120. The General Not For Profit Corporation Act of
181986 is amended by changing Section 112.70 as follows:
 
19    (805 ILCS 105/112.70)  (from Ch. 32, par. 112.70)
20    Sec. 112.70. Deposit of amount due. Upon the distribution
21of the assets of a corporation, the distributive portion to
22which a person would be entitled who is unknown or cannot be

 

 

HB0321- 228 -LRB101 04001 HLH 49009 b

1found, or who is under disability and there is no person
2legally competent to receive such distributive portion, shall
3be presumed abandoned and reported and delivered to the State
4Treasurer and become subject to the provisions of the Revised
5Uniform Disposition of Unclaimed Property Act. In the event
6such distribution is made other than in cash, such distributive
7portion of the assets shall be reduced to cash before being so
8reported and delivered.
9(Source: P.A. 100-22, eff. 1-1-18.)
 
10    Section 125. The Illinois Income Tax Act is amended by
11changing Sections 201, 203, 204, 208, 212, 901, 1501, 1102,
121103, and 1105 as follows:
 
13    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
14    Sec. 201. Tax imposed.
15    (a) In general. A tax measured by net income is hereby
16imposed on every individual, corporation, trust and estate for
17each taxable year ending after July 31, 1969 on the privilege
18of earning or receiving income in or as a resident of this
19State. Such tax shall be in addition to all other occupation or
20privilege taxes imposed by this State or by any municipal
21corporation or political subdivision thereof.
22    (b) Rates. The tax imposed by subsection (a) of this
23Section shall be determined as follows, except as adjusted by
24subsection (d-1):

 

 

HB0321- 229 -LRB101 04001 HLH 49009 b

1        (1) In the case of an individual, trust or estate, for
2    taxable years ending prior to July 1, 1989, an amount equal
3    to 2 1/2% of the taxpayer's net income for the taxable
4    year.
5        (2) In the case of an individual, trust or estate, for
6    taxable years beginning prior to July 1, 1989 and ending
7    after June 30, 1989, an amount equal to the sum of (i) 2
8    1/2% of the taxpayer's net income for the period prior to
9    July 1, 1989, as calculated under Section 202.3, and (ii)
10    3% of the taxpayer's net income for the period after June
11    30, 1989, as calculated under Section 202.3.
12        (3) In the case of an individual, trust or estate, for
13    taxable years beginning after June 30, 1989, and ending
14    prior to January 1, 2011, an amount equal to 3% of the
15    taxpayer's net income for the taxable year.
16        (4) In the case of an individual, trust, or estate, for
17    taxable years beginning prior to January 1, 2011, and
18    ending after December 31, 2010, an amount equal to the sum
19    of (i) 3% of the taxpayer's net income for the period prior
20    to January 1, 2011, as calculated under Section 202.5, and
21    (ii) 5% of the taxpayer's net income for the period after
22    December 31, 2010, as calculated under Section 202.5.
23        (5) In the case of an individual, trust, or estate, for
24    taxable years beginning on or after January 1, 2011, and
25    ending prior to January 1, 2015, an amount equal to 5% of
26    the taxpayer's net income for the taxable year.

 

 

HB0321- 230 -LRB101 04001 HLH 49009 b

1        (5.1) In the case of an individual, trust, or estate,
2    for taxable years beginning prior to January 1, 2015, and
3    ending after December 31, 2014, an amount equal to the sum
4    of (i) 5% of the taxpayer's net income for the period prior
5    to January 1, 2015, as calculated under Section 202.5, and
6    (ii) 3.75% of the taxpayer's net income for the period
7    after December 31, 2014, as calculated under Section 202.5.
8        (5.2) In the case of an individual, trust, or estate,
9    for taxable years beginning on or after January 1, 2015,
10    and ending prior to July 1, 2017, an amount equal to 3.75%
11    of the taxpayer's net income for the taxable year.
12        (5.3) In the case of an individual, trust, or estate,
13    for taxable years beginning prior to July 1, 2017, and
14    ending after June 30, 2017, an amount equal to the sum of
15    (i) 3.75% of the taxpayer's net income for the period prior
16    to July 1, 2017, as calculated under Section 202.5, and
17    (ii) 4.95% of the taxpayer's net income for the period
18    after June 30, 2017, as calculated under Section 202.5.
19        (5.4) In the case of an individual, trust, or estate,
20    for taxable years beginning on or after July 1, 2017 and
21    ending prior to January 1, 2019, an amount equal to 4.95%
22    of the taxpayer's net income for the taxable year.
23        (5.5) In the case of an individual, trust, or estate,
24    for taxable years beginning prior to January 1, 2019, and
25    ending after December 31, 2018, an amount equal to the sum
26    of (i) 4.95% of the taxpayer's net income for the period

 

 

HB0321- 231 -LRB101 04001 HLH 49009 b

1    prior to January 1, 2019, as calculated under Section
2    202.5, and (ii) 3.75% of the taxpayer's net income for the
3    period after December 31, 2018, as calculated under Section
4    202.5.
5        (5.6) In the case of an individual, trust, or estate,
6    for taxable years beginning on or after January 1, 2019 and
7    ending prior to January 1, 2025, an amount equal to 3.75%
8    of the taxpayer's net income for the taxable year.
9        (5.7) In the case of an individual, trust, or estate,
10    for taxable years beginning prior to January 1, 2025, and
11    ending after December 31, 2024, an amount equal to the sum
12    of (i) 3.75% of the taxpayer's net income for the period
13    prior to January 1, 2025, as calculated under Section
14    202.5, and (ii) 3.25% of the taxpayer's net income for the
15    period after December 31, 2024, as calculated under Section
16    202.5.
17        (5.8) In the case of an individual, trust, or estate,
18    for taxable years beginning on or after January 1, 2025, an
19    amount equal to 3.25% of the taxpayer's net income for the
20    taxable year.
21        (6) In the case of a corporation, for taxable years
22    ending prior to July 1, 1989, an amount equal to 4% of the
23    taxpayer's net income for the taxable year.
24        (7) In the case of a corporation, for taxable years
25    beginning prior to July 1, 1989 and ending after June 30,
26    1989, an amount equal to the sum of (i) 4% of the

 

 

HB0321- 232 -LRB101 04001 HLH 49009 b

1    taxpayer's net income for the period prior to July 1, 1989,
2    as calculated under Section 202.3, and (ii) 4.8% of the
3    taxpayer's net income for the period after June 30, 1989,
4    as calculated under Section 202.3.
5        (8) In the case of a corporation, for taxable years
6    beginning after June 30, 1989, and ending prior to January
7    1, 2011, an amount equal to 4.8% of the taxpayer's net
8    income for the taxable year.
9        (9) In the case of a corporation, for taxable years
10    beginning prior to January 1, 2011, and ending after
11    December 31, 2010, an amount equal to the sum of (i) 4.8%
12    of the taxpayer's net income for the period prior to
13    January 1, 2011, as calculated under Section 202.5, and
14    (ii) 7% of the taxpayer's net income for the period after
15    December 31, 2010, as calculated under Section 202.5.
16        (10) In the case of a corporation, for taxable years
17    beginning on or after January 1, 2011, and ending prior to
18    January 1, 2015, an amount equal to 7% of the taxpayer's
19    net income for the taxable year.
20        (11) In the case of a corporation, for taxable years
21    beginning prior to January 1, 2015, and ending after
22    December 31, 2014, an amount equal to the sum of (i) 7% of
23    the taxpayer's net income for the period prior to January
24    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
25    of the taxpayer's net income for the period after December
26    31, 2014, as calculated under Section 202.5.

 

 

HB0321- 233 -LRB101 04001 HLH 49009 b

1        (12) In the case of a corporation, for taxable years
2    beginning on or after January 1, 2015, and ending prior to
3    July 1, 2017, an amount equal to 5.25% of the taxpayer's
4    net income for the taxable year.
5        (13) In the case of a corporation, for taxable years
6    beginning prior to July 1, 2017, and ending after June 30,
7    2017, an amount equal to the sum of (i) 5.25% of the
8    taxpayer's net income for the period prior to July 1, 2017,
9    as calculated under Section 202.5, and (ii) 7% of the
10    taxpayer's net income for the period after June 30, 2017,
11    as calculated under Section 202.5.
12        (14) In the case of a corporation, for taxable years
13    beginning on or after July 1, 2017 and ending prior to
14    January 1, 2019, an amount equal to 7% of the taxpayer's
15    net income for the taxable year.
16        (15) In the case of a corporation, for taxable years
17    beginning prior to January 1, 2019 and ending after
18    December 31, 2018, an amount equal to the sum of (i) 7% of
19    the taxpayer's net income for the period prior to January
20    1, 2019, as calculated under Section 202.5, and (ii) 5.25%
21    of the taxpayer's net income for the period after December
22    31, 2014, as calculated under Section 202.5.
23        (16) In the case of a corporation, for taxable years
24    beginning after January 1, 2019 and ending prior to January
25    1, 2025, an amount equal to 5.25% of the taxpayer's net
26    income for the taxable year.

 

 

HB0321- 234 -LRB101 04001 HLH 49009 b

1        (17) In the case of a corporation, for taxable years
2    beginning prior to January 1, 2025 and ending after
3    December 31, 2024, an amount equal to the sum of (i) 5.25%
4    of the taxpayer's net income for the period prior to
5    January 1, 2025, as calculated under Section 202.5, and
6    (ii) 4.8% of the taxpayer's net income for the period after
7    December 31, 2024, as calculated under Section 202.5.
8        (18) In the case of a corporation, for taxable years
9    beginning on or after January 1, 2025, an amount equal to
10    4.8% of the taxpayer's net income for the taxable year.
11    The rates under this subsection (b) are subject to the
12provisions of Section 201.5.
13    (c) Personal Property Tax Replacement Income Tax.
14Beginning on July 1, 1979 and thereafter, in addition to such
15income tax, there is also hereby imposed the Personal Property
16Tax Replacement Income Tax measured by net income on every
17corporation (including Subchapter S corporations), partnership
18and trust, for each taxable year ending after June 30, 1979.
19Such taxes are imposed on the privilege of earning or receiving
20income in or as a resident of this State. The Personal Property
21Tax Replacement Income Tax shall be in addition to the income
22tax imposed by subsections (a) and (b) of this Section and in
23addition to all other occupation or privilege taxes imposed by
24this State or by any municipal corporation or political
25subdivision thereof.
26    (d) Additional Personal Property Tax Replacement Income

 

 

HB0321- 235 -LRB101 04001 HLH 49009 b

1Tax Rates. The personal property tax replacement income tax
2imposed by this subsection and subsection (c) of this Section
3in the case of a corporation, other than a Subchapter S
4corporation and except as adjusted by subsection (d-1), shall
5be an additional amount equal to 2.85% of such taxpayer's net
6income for the taxable year, except that beginning on January
71, 1981, and thereafter, the rate of 2.85% specified in this
8subsection shall be reduced to 2.5%, and in the case of a
9partnership, trust or a Subchapter S corporation shall be an
10additional amount equal to 1.5% of such taxpayer's net income
11for the taxable year.
12    (d-1) Rate reduction for certain foreign insurers. In the
13case of a foreign insurer, as defined by Section 35A-5 of the
14Illinois Insurance Code, whose state or country of domicile
15imposes on insurers domiciled in Illinois a retaliatory tax
16(excluding any insurer whose premiums from reinsurance assumed
17are 50% or more of its total insurance premiums as determined
18under paragraph (2) of subsection (b) of Section 304, except
19that for purposes of this determination premiums from
20reinsurance do not include premiums from inter-affiliate
21reinsurance arrangements), beginning with taxable years ending
22on or after December 31, 1999, the sum of the rates of tax
23imposed by subsections (b) and (d) shall be reduced (but not
24increased) to the rate at which the total amount of tax imposed
25under this Act, net of all credits allowed under this Act,
26shall equal (i) the total amount of tax that would be imposed

 

 

HB0321- 236 -LRB101 04001 HLH 49009 b

1on the foreign insurer's net income allocable to Illinois for
2the taxable year by such foreign insurer's state or country of
3domicile if that net income were subject to all income taxes
4and taxes measured by net income imposed by such foreign
5insurer's state or country of domicile, net of all credits
6allowed or (ii) a rate of zero if no such tax is imposed on such
7income by the foreign insurer's state of domicile. For the
8purposes of this subsection (d-1), an inter-affiliate includes
9a mutual insurer under common management.
10        (1) For the purposes of subsection (d-1), in no event
11    shall the sum of the rates of tax imposed by subsections
12    (b) and (d) be reduced below the rate at which the sum of:
13            (A) the total amount of tax imposed on such foreign
14        insurer under this Act for a taxable year, net of all
15        credits allowed under this Act, plus
16            (B) the privilege tax imposed by Section 409 of the
17        Illinois Insurance Code, the fire insurance company
18        tax imposed by Section 12 of the Fire Investigation
19        Act, and the fire department taxes imposed under
20        Section 11-10-1 of the Illinois Municipal Code,
21    equals 1.25% for taxable years ending prior to December 31,
22    2003, or 1.75% for taxable years ending on or after
23    December 31, 2003, of the net taxable premiums written for
24    the taxable year, as described by subsection (1) of Section
25    409 of the Illinois Insurance Code. This paragraph will in
26    no event increase the rates imposed under subsections (b)

 

 

HB0321- 237 -LRB101 04001 HLH 49009 b

1    and (d).
2        (2) Any reduction in the rates of tax imposed by this
3    subsection shall be applied first against the rates imposed
4    by subsection (b) and only after the tax imposed by
5    subsection (a) net of all credits allowed under this
6    Section other than the credit allowed under subsection (i)
7    has been reduced to zero, against the rates imposed by
8    subsection (d).
9    This subsection (d-1) is exempt from the provisions of
10Section 250.
11    (e) Investment credit. A taxpayer shall be allowed a credit
12against the Personal Property Tax Replacement Income Tax for
13investment in qualified property.
14        (1) A taxpayer shall be allowed a credit equal to .5%
15    of the basis of qualified property placed in service during
16    the taxable year, provided such property is placed in
17    service on or after July 1, 1984. There shall be allowed an
18    additional credit equal to .5% of the basis of qualified
19    property placed in service during the taxable year,
20    provided such property is placed in service on or after
21    July 1, 1986, and the taxpayer's base employment within
22    Illinois has increased by 1% or more over the preceding
23    year as determined by the taxpayer's employment records
24    filed with the Illinois Department of Employment Security.
25    Taxpayers who are new to Illinois shall be deemed to have
26    met the 1% growth in base employment for the first year in

 

 

HB0321- 238 -LRB101 04001 HLH 49009 b

1    which they file employment records with the Illinois
2    Department of Employment Security. The provisions added to
3    this Section by Public Act 85-1200 (and restored by Public
4    Act 87-895) shall be construed as declaratory of existing
5    law and not as a new enactment. If, in any year, the
6    increase in base employment within Illinois over the
7    preceding year is less than 1%, the additional credit shall
8    be limited to that percentage times a fraction, the
9    numerator of which is .5% and the denominator of which is
10    1%, but shall not exceed .5%. The investment credit shall
11    not be allowed to the extent that it would reduce a
12    taxpayer's liability in any tax year below zero, nor may
13    any credit for qualified property be allowed for any year
14    other than the year in which the property was placed in
15    service in Illinois. For tax years ending on or after
16    December 31, 1987, and on or before December 31, 1988, the
17    credit shall be allowed for the tax year in which the
18    property is placed in service, or, if the amount of the
19    credit exceeds the tax liability for that year, whether it
20    exceeds the original liability or the liability as later
21    amended, such excess may be carried forward and applied to
22    the tax liability of the 5 taxable years following the
23    excess credit years if the taxpayer (i) makes investments
24    which cause the creation of a minimum of 2,000 full-time
25    equivalent jobs in Illinois, (ii) is located in an
26    enterprise zone established pursuant to the Illinois

 

 

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1    Enterprise Zone Act and (iii) is certified by the
2    Department of Commerce and Community Affairs (now
3    Department of Commerce and Economic Opportunity) as
4    complying with the requirements specified in clause (i) and
5    (ii) by July 1, 1986. The Department of Commerce and
6    Community Affairs (now Department of Commerce and Economic
7    Opportunity) shall notify the Department of Revenue of all
8    such certifications immediately. For tax years ending
9    after December 31, 1988, the credit shall be allowed for
10    the tax year in which the property is placed in service,
11    or, if the amount of the credit exceeds the tax liability
12    for that year, whether it exceeds the original liability or
13    the liability as later amended, such excess may be carried
14    forward and applied to the tax liability of the 5 taxable
15    years following the excess credit years. The credit shall
16    be applied to the earliest year for which there is a
17    liability. If there is credit from more than one tax year
18    that is available to offset a liability, earlier credit
19    shall be applied first.
20        (2) The term "qualified property" means property
21    which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings and
24        signs that are real property, but not including land or
25        improvements to real property that are not a structural
26        component of a building such as landscaping, sewer

 

 

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1        lines, local access roads, fencing, parking lots, and
2        other appurtenances;
3            (B) is depreciable pursuant to Section 167 of the
4        Internal Revenue Code, except that "3-year property"
5        as defined in Section 168(c)(2)(A) of that Code is not
6        eligible for the credit provided by this subsection
7        (e);
8            (C) is acquired by purchase as defined in Section
9        179(d) of the Internal Revenue Code;
10            (D) is used in Illinois by a taxpayer who is
11        primarily engaged in manufacturing, or in mining coal
12        or fluorite, or in retailing, or was placed in service
13        on or after July 1, 2006 in a River Edge Redevelopment
14        Zone established pursuant to the River Edge
15        Redevelopment Zone Act; and
16            (E) has not previously been used in Illinois in
17        such a manner and by such a person as would qualify for
18        the credit provided by this subsection (e) or
19        subsection (f).
20        (3) For purposes of this subsection (e),
21    "manufacturing" means the material staging and production
22    of tangible personal property by procedures commonly
23    regarded as manufacturing, processing, fabrication, or
24    assembling which changes some existing material into new
25    shapes, new qualities, or new combinations. For purposes of
26    this subsection (e) the term "mining" shall have the same

 

 

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1    meaning as the term "mining" in Section 613(c) of the
2    Internal Revenue Code. For purposes of this subsection (e),
3    the term "retailing" means the sale of tangible personal
4    property for use or consumption and not for resale, or
5    services rendered in conjunction with the sale of tangible
6    personal property for use or consumption and not for
7    resale. For purposes of this subsection (e), "tangible
8    personal property" has the same meaning as when that term
9    is used in the Retailers' Occupation Tax Act, and, for
10    taxable years ending after December 31, 2008, does not
11    include the generation, transmission, or distribution of
12    electricity.
13        (4) The basis of qualified property shall be the basis
14    used to compute the depreciation deduction for federal
15    income tax purposes.
16        (5) If the basis of the property for federal income tax
17    depreciation purposes is increased after it has been placed
18    in service in Illinois by the taxpayer, the amount of such
19    increase shall be deemed property placed in service on the
20    date of such increase in basis.
21        (6) The term "placed in service" shall have the same
22    meaning as under Section 46 of the Internal Revenue Code.
23        (7) If during any taxable year, any property ceases to
24    be qualified property in the hands of the taxpayer within
25    48 months after being placed in service, or the situs of
26    any qualified property is moved outside Illinois within 48

 

 

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1    months after being placed in service, the Personal Property
2    Tax Replacement Income Tax for such taxable year shall be
3    increased. Such increase shall be determined by (i)
4    recomputing the investment credit which would have been
5    allowed for the year in which credit for such property was
6    originally allowed by eliminating such property from such
7    computation and, (ii) subtracting such recomputed credit
8    from the amount of credit previously allowed. For the
9    purposes of this paragraph (7), a reduction of the basis of
10    qualified property resulting from a redetermination of the
11    purchase price shall be deemed a disposition of qualified
12    property to the extent of such reduction.
13        (8) Unless the investment credit is extended by law,
14    the basis of qualified property shall not include costs
15    incurred after December 31, 2018, except for costs incurred
16    pursuant to a binding contract entered into on or before
17    December 31, 2018.
18        (9) Each taxable year ending before December 31, 2000,
19    a partnership may elect to pass through to its partners the
20    credits to which the partnership is entitled under this
21    subsection (e) for the taxable year. A partner may use the
22    credit allocated to him or her under this paragraph only
23    against the tax imposed in subsections (c) and (d) of this
24    Section. If the partnership makes that election, those
25    credits shall be allocated among the partners in the
26    partnership in accordance with the rules set forth in

 

 

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1    Section 704(b) of the Internal Revenue Code, and the rules
2    promulgated under that Section, and the allocated amount of
3    the credits shall be allowed to the partners for that
4    taxable year. The partnership shall make this election on
5    its Personal Property Tax Replacement Income Tax return for
6    that taxable year. The election to pass through the credits
7    shall be irrevocable.
8        For taxable years ending on or after December 31, 2000,
9    a partner that qualifies its partnership for a subtraction
10    under subparagraph (I) of paragraph (2) of subsection (d)
11    of Section 203 or a shareholder that qualifies a Subchapter
12    S corporation for a subtraction under subparagraph (S) of
13    paragraph (2) of subsection (b) of Section 203 shall be
14    allowed a credit under this subsection (e) equal to its
15    share of the credit earned under this subsection (e) during
16    the taxable year by the partnership or Subchapter S
17    corporation, determined in accordance with the
18    determination of income and distributive share of income
19    under Sections 702 and 704 and Subchapter S of the Internal
20    Revenue Code. This paragraph is exempt from the provisions
21    of Section 250.
22    (f) Investment credit; Enterprise Zone; River Edge
23Redevelopment Zone.
24        (1) A taxpayer shall be allowed a credit against the
25    tax imposed by subsections (a) and (b) of this Section for
26    investment in qualified property which is placed in service

 

 

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1    in an Enterprise Zone created pursuant to the Illinois
2    Enterprise Zone Act or, for property placed in service on
3    or after July 1, 2006, a River Edge Redevelopment Zone
4    established pursuant to the River Edge Redevelopment Zone
5    Act. For partners, shareholders of Subchapter S
6    corporations, and owners of limited liability companies,
7    if the liability company is treated as a partnership for
8    purposes of federal and State income taxation, there shall
9    be allowed a credit under this subsection (f) to be
10    determined in accordance with the determination of income
11    and distributive share of income under Sections 702 and 704
12    and Subchapter S of the Internal Revenue Code. The credit
13    shall be .5% of the basis for such property. The credit
14    shall be available only in the taxable year in which the
15    property is placed in service in the Enterprise Zone or
16    River Edge Redevelopment Zone and shall not be allowed to
17    the extent that it would reduce a taxpayer's liability for
18    the tax imposed by subsections (a) and (b) of this Section
19    to below zero. For tax years ending on or after December
20    31, 1985, the credit shall be allowed for the tax year in
21    which the property is placed in service, or, if the amount
22    of the credit exceeds the tax liability for that year,
23    whether it exceeds the original liability or the liability
24    as later amended, such excess may be carried forward and
25    applied to the tax liability of the 5 taxable years
26    following the excess credit year. The credit shall be

 

 

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1    applied to the earliest year for which there is a
2    liability. If there is credit from more than one tax year
3    that is available to offset a liability, the credit
4    accruing first in time shall be applied first.
5        (2) The term qualified property means property which:
6            (A) is tangible, whether new or used, including
7        buildings and structural components of buildings;
8            (B) is depreciable pursuant to Section 167 of the
9        Internal Revenue Code, except that "3-year property"
10        as defined in Section 168(c)(2)(A) of that Code is not
11        eligible for the credit provided by this subsection
12        (f);
13            (C) is acquired by purchase as defined in Section
14        179(d) of the Internal Revenue Code;
15            (D) is used in the Enterprise Zone or River Edge
16        Redevelopment Zone by the taxpayer; and
17            (E) has not been previously used in Illinois in
18        such a manner and by such a person as would qualify for
19        the credit provided by this subsection (f) or
20        subsection (e).
21        (3) The basis of qualified property shall be the basis
22    used to compute the depreciation deduction for federal
23    income tax purposes.
24        (4) If the basis of the property for federal income tax
25    depreciation purposes is increased after it has been placed
26    in service in the Enterprise Zone or River Edge

 

 

HB0321- 246 -LRB101 04001 HLH 49009 b

1    Redevelopment Zone by the taxpayer, the amount of such
2    increase shall be deemed property placed in service on the
3    date of such increase in basis.
4        (5) The term "placed in service" shall have the same
5    meaning as under Section 46 of the Internal Revenue Code.
6        (6) If during any taxable year, any property ceases to
7    be qualified property in the hands of the taxpayer within
8    48 months after being placed in service, or the situs of
9    any qualified property is moved outside the Enterprise Zone
10    or River Edge Redevelopment Zone within 48 months after
11    being placed in service, the tax imposed under subsections
12    (a) and (b) of this Section for such taxable year shall be
13    increased. Such increase shall be determined by (i)
14    recomputing the investment credit which would have been
15    allowed for the year in which credit for such property was
16    originally allowed by eliminating such property from such
17    computation, and (ii) subtracting such recomputed credit
18    from the amount of credit previously allowed. For the
19    purposes of this paragraph (6), a reduction of the basis of
20    qualified property resulting from a redetermination of the
21    purchase price shall be deemed a disposition of qualified
22    property to the extent of such reduction.
23        (7) There shall be allowed an additional credit equal
24    to 0.5% of the basis of qualified property placed in
25    service during the taxable year in a River Edge
26    Redevelopment Zone, provided such property is placed in

 

 

HB0321- 247 -LRB101 04001 HLH 49009 b

1    service on or after July 1, 2006, and the taxpayer's base
2    employment within Illinois has increased by 1% or more over
3    the preceding year as determined by the taxpayer's
4    employment records filed with the Illinois Department of
5    Employment Security. Taxpayers who are new to Illinois
6    shall be deemed to have met the 1% growth in base
7    employment for the first year in which they file employment
8    records with the Illinois Department of Employment
9    Security. If, in any year, the increase in base employment
10    within Illinois over the preceding year is less than 1%,
11    the additional credit shall be limited to that percentage
12    times a fraction, the numerator of which is 0.5% and the
13    denominator of which is 1%, but shall not exceed 0.5%.
14    (g) (Blank).
15    (h) Investment credit; High Impact Business.
16        (1) Subject to subsections (b) and (b-5) of Section 5.5
17    of the Illinois Enterprise Zone Act, a taxpayer shall be
18    allowed a credit against the tax imposed by subsections (a)
19    and (b) of this Section for investment in qualified
20    property which is placed in service by a Department of
21    Commerce and Economic Opportunity designated High Impact
22    Business. The credit shall be .5% of the basis for such
23    property. The credit shall not be available (i) until the
24    minimum investments in qualified property set forth in
25    subdivision (a)(3)(A) of Section 5.5 of the Illinois
26    Enterprise Zone Act have been satisfied or (ii) until the

 

 

HB0321- 248 -LRB101 04001 HLH 49009 b

1    time authorized in subsection (b-5) of the Illinois
2    Enterprise Zone Act for entities designated as High Impact
3    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
4    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
5    Act, and shall not be allowed to the extent that it would
6    reduce a taxpayer's liability for the tax imposed by
7    subsections (a) and (b) of this Section to below zero. The
8    credit applicable to such investments shall be taken in the
9    taxable year in which such investments have been completed.
10    The credit for additional investments beyond the minimum
11    investment by a designated high impact business authorized
12    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
13    Enterprise Zone Act shall be available only in the taxable
14    year in which the property is placed in service and shall
15    not be allowed to the extent that it would reduce a
16    taxpayer's liability for the tax imposed by subsections (a)
17    and (b) of this Section to below zero. For tax years ending
18    on or after December 31, 1987, the credit shall be allowed
19    for the tax year in which the property is placed in
20    service, or, if the amount of the credit exceeds the tax
21    liability for that year, whether it exceeds the original
22    liability or the liability as later amended, such excess
23    may be carried forward and applied to the tax liability of
24    the 5 taxable years following the excess credit year. The
25    credit shall be applied to the earliest year for which
26    there is a liability. If there is credit from more than one

 

 

HB0321- 249 -LRB101 04001 HLH 49009 b

1    tax year that is available to offset a liability, the
2    credit accruing first in time shall be applied first.
3        Changes made in this subdivision (h)(1) by Public Act
4    88-670 restore changes made by Public Act 85-1182 and
5    reflect existing law.
6        (2) The term qualified property means property which:
7            (A) is tangible, whether new or used, including
8        buildings and structural components of buildings;
9            (B) is depreciable pursuant to Section 167 of the
10        Internal Revenue Code, except that "3-year property"
11        as defined in Section 168(c)(2)(A) of that Code is not
12        eligible for the credit provided by this subsection
13        (h);
14            (C) is acquired by purchase as defined in Section
15        179(d) of the Internal Revenue Code; and
16            (D) is not eligible for the Enterprise Zone
17        Investment Credit provided by subsection (f) of this
18        Section.
19        (3) The basis of qualified property shall be the basis
20    used to compute the depreciation deduction for federal
21    income tax purposes.
22        (4) If the basis of the property for federal income tax
23    depreciation purposes is increased after it has been placed
24    in service in a federally designated Foreign Trade Zone or
25    Sub-Zone located in Illinois by the taxpayer, the amount of
26    such increase shall be deemed property placed in service on

 

 

HB0321- 250 -LRB101 04001 HLH 49009 b

1    the date of such increase in basis.
2        (5) The term "placed in service" shall have the same
3    meaning as under Section 46 of the Internal Revenue Code.
4        (6) If during any taxable year ending on or before
5    December 31, 1996, any property ceases to be qualified
6    property in the hands of the taxpayer within 48 months
7    after being placed in service, or the situs of any
8    qualified property is moved outside Illinois within 48
9    months after being placed in service, the tax imposed under
10    subsections (a) and (b) of this Section for such taxable
11    year shall be increased. Such increase shall be determined
12    by (i) recomputing the investment credit which would have
13    been allowed for the year in which credit for such property
14    was originally allowed by eliminating such property from
15    such computation, and (ii) subtracting such recomputed
16    credit from the amount of credit previously allowed. For
17    the purposes of this paragraph (6), a reduction of the
18    basis of qualified property resulting from a
19    redetermination of the purchase price shall be deemed a
20    disposition of qualified property to the extent of such
21    reduction.
22        (7) Beginning with tax years ending after December 31,
23    1996, if a taxpayer qualifies for the credit under this
24    subsection (h) and thereby is granted a tax abatement and
25    the taxpayer relocates its entire facility in violation of
26    the explicit terms and length of the contract under Section

 

 

HB0321- 251 -LRB101 04001 HLH 49009 b

1    18-183 of the Property Tax Code, the tax imposed under
2    subsections (a) and (b) of this Section shall be increased
3    for the taxable year in which the taxpayer relocated its
4    facility by an amount equal to the amount of credit
5    received by the taxpayer under this subsection (h).
6    (i) Credit for Personal Property Tax Replacement Income
7Tax. For tax years ending prior to December 31, 2003, a credit
8shall be allowed against the tax imposed by subsections (a) and
9(b) of this Section for the tax imposed by subsections (c) and
10(d) of this Section. This credit shall be computed by
11multiplying the tax imposed by subsections (c) and (d) of this
12Section by a fraction, the numerator of which is base income
13allocable to Illinois and the denominator of which is Illinois
14base income, and further multiplying the product by the tax
15rate imposed by subsections (a) and (b) of this Section.
16    Any credit earned on or after December 31, 1986 under this
17subsection which is unused in the year the credit is computed
18because it exceeds the tax liability imposed by subsections (a)
19and (b) for that year (whether it exceeds the original
20liability or the liability as later amended) may be carried
21forward and applied to the tax liability imposed by subsections
22(a) and (b) of the 5 taxable years following the excess credit
23year, provided that no credit may be carried forward to any
24year ending on or after December 31, 2003. This credit shall be
25applied first to the earliest year for which there is a
26liability. If there is a credit under this subsection from more

 

 

HB0321- 252 -LRB101 04001 HLH 49009 b

1than one tax year that is available to offset a liability the
2earliest credit arising under this subsection shall be applied
3first.
4    If, during any taxable year ending on or after December 31,
51986, the tax imposed by subsections (c) and (d) of this
6Section for which a taxpayer has claimed a credit under this
7subsection (i) is reduced, the amount of credit for such tax
8shall also be reduced. Such reduction shall be determined by
9recomputing the credit to take into account the reduced tax
10imposed by subsections (c) and (d). If any portion of the
11reduced amount of credit has been carried to a different
12taxable year, an amended return shall be filed for such taxable
13year to reduce the amount of credit claimed.
14    (j) Training expense credit. Beginning with tax years
15ending on or after December 31, 1986 and prior to December 31,
162003, a taxpayer shall be allowed a credit against the tax
17imposed by subsections (a) and (b) under this Section for all
18amounts paid or accrued, on behalf of all persons employed by
19the taxpayer in Illinois or Illinois residents employed outside
20of Illinois by a taxpayer, for educational or vocational
21training in semi-technical or technical fields or semi-skilled
22or skilled fields, which were deducted from gross income in the
23computation of taxable income. The credit against the tax
24imposed by subsections (a) and (b) shall be 1.6% of such
25training expenses. For partners, shareholders of subchapter S
26corporations, and owners of limited liability companies, if the

 

 

HB0321- 253 -LRB101 04001 HLH 49009 b

1liability company is treated as a partnership for purposes of
2federal and State income taxation, there shall be allowed a
3credit under this subsection (j) to be determined in accordance
4with the determination of income and distributive share of
5income under Sections 702 and 704 and subchapter S of the
6Internal Revenue Code.
7    Any credit allowed under this subsection which is unused in
8the year the credit is earned may be carried forward to each of
9the 5 taxable years following the year for which the credit is
10first computed until it is used. This credit shall be applied
11first to the earliest year for which there is a liability. If
12there is a credit under this subsection from more than one tax
13year that is available to offset a liability the earliest
14credit arising under this subsection shall be applied first. No
15carryforward credit may be claimed in any tax year ending on or
16after December 31, 2003.
17    (k) Research and development credit. For tax years ending
18after July 1, 1990 and prior to December 31, 2003, and
19beginning again for tax years ending on or after December 31,
202004, and ending prior to January 1, 2019 January 1, 2022, a
21taxpayer shall be allowed a credit against the tax imposed by
22subsections (a) and (b) of this Section for increasing research
23activities in this State. The credit allowed against the tax
24imposed by subsections (a) and (b) shall be equal to 6 1/2% of
25the qualifying expenditures for increasing research activities
26in this State. For partners, shareholders of subchapter S

 

 

HB0321- 254 -LRB101 04001 HLH 49009 b

1corporations, and owners of limited liability companies, if the
2liability company is treated as a partnership for purposes of
3federal and State income taxation, there shall be allowed a
4credit under this subsection to be determined in accordance
5with the determination of income and distributive share of
6income under Sections 702 and 704 and subchapter S of the
7Internal Revenue Code.
8    For purposes of this subsection, "qualifying expenditures"
9means the qualifying expenditures as defined for the federal
10credit for increasing research activities which would be
11allowable under Section 41 of the Internal Revenue Code and
12which are conducted in this State, "qualifying expenditures for
13increasing research activities in this State" means the excess
14of qualifying expenditures for the taxable year in which
15incurred over qualifying expenditures for the base period,
16"qualifying expenditures for the base period" means the average
17of the qualifying expenditures for each year in the base
18period, and "base period" means the 3 taxable years immediately
19preceding the taxable year for which the determination is being
20made.
21    Any credit in excess of the tax liability for the taxable
22year may be carried forward. A taxpayer may elect to have the
23unused credit shown on its final completed return carried over
24as a credit against the tax liability for the following 5
25taxable years or until it has been fully used, whichever occurs
26first; provided that no credit earned in a tax year ending

 

 

HB0321- 255 -LRB101 04001 HLH 49009 b

1prior to December 31, 2003 may be carried forward to any year
2ending on or after December 31, 2003.
3    If an unused credit is carried forward to a given year from
42 or more earlier years, that credit arising in the earliest
5year will be applied first against the tax liability for the
6given year. If a tax liability for the given year still
7remains, the credit from the next earliest year will then be
8applied, and so on, until all credits have been used or no tax
9liability for the given year remains. Any remaining unused
10credit or credits then will be carried forward to the next
11following year in which a tax liability is incurred, except
12that no credit can be carried forward to a year which is more
13than 5 years after the year in which the expense for which the
14credit is given was incurred.
15    No inference shall be drawn from this amendatory Act of the
1691st General Assembly in construing this Section for taxable
17years beginning before January 1, 1999.
18    It is the intent of the General Assembly that the research
19and development credit under this subsection (k) shall apply
20continuously for all tax years ending on or after December 31,
212004 and ending prior to January 1, 2022, including, but not
22limited to, the period beginning on January 1, 2016 and ending
23on the effective date of this amendatory Act of the 100th
24General Assembly. All actions taken in reliance on the
25continuation of the credit under this subsection (k) by any
26taxpayer are hereby validated.

 

 

HB0321- 256 -LRB101 04001 HLH 49009 b

1    (l) Environmental Remediation Tax Credit.
2        (i) For tax years ending after December 31, 1997 and on
3    or before December 31, 2001, a taxpayer shall be allowed a
4    credit against the tax imposed by subsections (a) and (b)
5    of this Section for certain amounts paid for unreimbursed
6    eligible remediation costs, as specified in this
7    subsection. For purposes of this Section, "unreimbursed
8    eligible remediation costs" means costs approved by the
9    Illinois Environmental Protection Agency ("Agency") under
10    Section 58.14 of the Environmental Protection Act that were
11    paid in performing environmental remediation at a site for
12    which a No Further Remediation Letter was issued by the
13    Agency and recorded under Section 58.10 of the
14    Environmental Protection Act. The credit must be claimed
15    for the taxable year in which Agency approval of the
16    eligible remediation costs is granted. The credit is not
17    available to any taxpayer if the taxpayer or any related
18    party caused or contributed to, in any material respect, a
19    release of regulated substances on, in, or under the site
20    that was identified and addressed by the remedial action
21    pursuant to the Site Remediation Program of the
22    Environmental Protection Act. After the Pollution Control
23    Board rules are adopted pursuant to the Illinois
24    Administrative Procedure Act for the administration and
25    enforcement of Section 58.9 of the Environmental
26    Protection Act, determinations as to credit availability

 

 

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1    for purposes of this Section shall be made consistent with
2    those rules. For purposes of this Section, "taxpayer"
3    includes a person whose tax attributes the taxpayer has
4    succeeded to under Section 381 of the Internal Revenue Code
5    and "related party" includes the persons disallowed a
6    deduction for losses by paragraphs (b), (c), and (f)(1) of
7    Section 267 of the Internal Revenue Code by virtue of being
8    a related taxpayer, as well as any of its partners. The
9    credit allowed against the tax imposed by subsections (a)
10    and (b) shall be equal to 25% of the unreimbursed eligible
11    remediation costs in excess of $100,000 per site, except
12    that the $100,000 threshold shall not apply to any site
13    contained in an enterprise zone as determined by the
14    Department of Commerce and Community Affairs (now
15    Department of Commerce and Economic Opportunity). The
16    total credit allowed shall not exceed $40,000 per year with
17    a maximum total of $150,000 per site. For partners and
18    shareholders of subchapter S corporations, there shall be
19    allowed a credit under this subsection to be determined in
20    accordance with the determination of income and
21    distributive share of income under Sections 702 and 704 and
22    subchapter S of the Internal Revenue Code.
23        (ii) A credit allowed under this subsection that is
24    unused in the year the credit is earned may be carried
25    forward to each of the 5 taxable years following the year
26    for which the credit is first earned until it is used. The

 

 

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1    term "unused credit" does not include any amounts of
2    unreimbursed eligible remediation costs in excess of the
3    maximum credit per site authorized under paragraph (i).
4    This credit shall be applied first to the earliest year for
5    which there is a liability. If there is a credit under this
6    subsection from more than one tax year that is available to
7    offset a liability, the earliest credit arising under this
8    subsection shall be applied first. A credit allowed under
9    this subsection may be sold to a buyer as part of a sale of
10    all or part of the remediation site for which the credit
11    was granted. The purchaser of a remediation site and the
12    tax credit shall succeed to the unused credit and remaining
13    carry-forward period of the seller. To perfect the
14    transfer, the assignor shall record the transfer in the
15    chain of title for the site and provide written notice to
16    the Director of the Illinois Department of Revenue of the
17    assignor's intent to sell the remediation site and the
18    amount of the tax credit to be transferred as a portion of
19    the sale. In no event may a credit be transferred to any
20    taxpayer if the taxpayer or a related party would not be
21    eligible under the provisions of subsection (i).
22        (iii) For purposes of this Section, the term "site"
23    shall have the same meaning as under Section 58.2 of the
24    Environmental Protection Act.
25    (m) Education expense credit. Beginning with tax years
26ending after December 31, 1999, a taxpayer who is the custodian

 

 

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1of one or more qualifying pupils shall be allowed a credit
2against the tax imposed by subsections (a) and (b) of this
3Section for qualified education expenses incurred on behalf of
4the qualifying pupils. The credit shall be equal to 25% of
5qualified education expenses, but in no event may the total
6credit under this subsection claimed by a family that is the
7custodian of qualifying pupils exceed (i) $500 for tax years
8ending prior to December 31, 2017, and (ii) $750 for tax years
9ending on or after December 31, 2017. In no event shall a
10credit under this subsection reduce the taxpayer's liability
11under this Act to less than zero. Notwithstanding any other
12provision of law, for taxable years beginning on or after
13January 1, 2017, no taxpayer may claim a credit under this
14subsection (m) if the taxpayer's adjusted gross income for the
15taxable year exceeds (i) $500,000, in the case of spouses
16filing a joint federal tax return or (ii) $250,000, in the case
17of all other taxpayers. This subsection is exempt from the
18provisions of Section 250 of this Act.
19    For purposes of this subsection:
20    "Qualifying pupils" means individuals who (i) are
21residents of the State of Illinois, (ii) are under the age of
2221 at the close of the school year for which a credit is
23sought, and (iii) during the school year for which a credit is
24sought were full-time pupils enrolled in a kindergarten through
25twelfth grade education program at any school, as defined in
26this subsection.

 

 

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1    "Qualified education expense" means the amount incurred on
2behalf of a qualifying pupil in excess of $250 for tuition,
3book fees, and lab fees at the school in which the pupil is
4enrolled during the regular school year.
5    "School" means any public or nonpublic elementary or
6secondary school in Illinois that is in compliance with Title
7VI of the Civil Rights Act of 1964 and attendance at which
8satisfies the requirements of Section 26-1 of the School Code,
9except that nothing shall be construed to require a child to
10attend any particular public or nonpublic school to qualify for
11the credit under this Section.
12    "Custodian" means, with respect to qualifying pupils, an
13Illinois resident who is a parent, the parents, a legal
14guardian, or the legal guardians of the qualifying pupils.
15    (n) River Edge Redevelopment Zone site remediation tax
16credit.
17        (i) For tax years ending on or after December 31, 2006,
18    a taxpayer shall be allowed a credit against the tax
19    imposed by subsections (a) and (b) of this Section for
20    certain amounts paid for unreimbursed eligible remediation
21    costs, as specified in this subsection. For purposes of
22    this Section, "unreimbursed eligible remediation costs"
23    means costs approved by the Illinois Environmental
24    Protection Agency ("Agency") under Section 58.14a of the
25    Environmental Protection Act that were paid in performing
26    environmental remediation at a site within a River Edge

 

 

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1    Redevelopment Zone for which a No Further Remediation
2    Letter was issued by the Agency and recorded under Section
3    58.10 of the Environmental Protection Act. The credit must
4    be claimed for the taxable year in which Agency approval of
5    the eligible remediation costs is granted. The credit is
6    not available to any taxpayer if the taxpayer or any
7    related party caused or contributed to, in any material
8    respect, a release of regulated substances on, in, or under
9    the site that was identified and addressed by the remedial
10    action pursuant to the Site Remediation Program of the
11    Environmental Protection Act. Determinations as to credit
12    availability for purposes of this Section shall be made
13    consistent with rules adopted by the Pollution Control
14    Board pursuant to the Illinois Administrative Procedure
15    Act for the administration and enforcement of Section 58.9
16    of the Environmental Protection Act. For purposes of this
17    Section, "taxpayer" includes a person whose tax attributes
18    the taxpayer has succeeded to under Section 381 of the
19    Internal Revenue Code and "related party" includes the
20    persons disallowed a deduction for losses by paragraphs
21    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
22    Code by virtue of being a related taxpayer, as well as any
23    of its partners. The credit allowed against the tax imposed
24    by subsections (a) and (b) shall be equal to 25% of the
25    unreimbursed eligible remediation costs in excess of
26    $100,000 per site.

 

 

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1        (ii) A credit allowed under this subsection that is
2    unused in the year the credit is earned may be carried
3    forward to each of the 5 taxable years following the year
4    for which the credit is first earned until it is used. This
5    credit shall be applied first to the earliest year for
6    which there is a liability. If there is a credit under this
7    subsection from more than one tax year that is available to
8    offset a liability, the earliest credit arising under this
9    subsection shall be applied first. A credit allowed under
10    this subsection may be sold to a buyer as part of a sale of
11    all or part of the remediation site for which the credit
12    was granted. The purchaser of a remediation site and the
13    tax credit shall succeed to the unused credit and remaining
14    carry-forward period of the seller. To perfect the
15    transfer, the assignor shall record the transfer in the
16    chain of title for the site and provide written notice to
17    the Director of the Illinois Department of Revenue of the
18    assignor's intent to sell the remediation site and the
19    amount of the tax credit to be transferred as a portion of
20    the sale. In no event may a credit be transferred to any
21    taxpayer if the taxpayer or a related party would not be
22    eligible under the provisions of subsection (i).
23        (iii) For purposes of this Section, the term "site"
24    shall have the same meaning as under Section 58.2 of the
25    Environmental Protection Act.
26    (o) For each of taxable years during the Compassionate Use

 

 

HB0321- 263 -LRB101 04001 HLH 49009 b

1of Medical Cannabis Pilot Program, a surcharge is imposed on
2all taxpayers on income arising from the sale or exchange of
3capital assets, depreciable business property, real property
4used in the trade or business, and Section 197 intangibles of
5an organization registrant under the Compassionate Use of
6Medical Cannabis Pilot Program Act. The amount of the surcharge
7is equal to the amount of federal income tax liability for the
8taxable year attributable to those sales and exchanges. The
9surcharge imposed does not apply if:
10        (1) the medical cannabis cultivation center
11    registration, medical cannabis dispensary registration, or
12    the property of a registration is transferred as a result
13    of any of the following:
14            (A) bankruptcy, a receivership, or a debt
15        adjustment initiated by or against the initial
16        registration or the substantial owners of the initial
17        registration;
18            (B) cancellation, revocation, or termination of
19        any registration by the Illinois Department of Public
20        Health;
21            (C) a determination by the Illinois Department of
22        Public Health that transfer of the registration is in
23        the best interests of Illinois qualifying patients as
24        defined by the Compassionate Use of Medical Cannabis
25        Pilot Program Act;
26            (D) the death of an owner of the equity interest in

 

 

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1        a registrant;
2            (E) the acquisition of a controlling interest in
3        the stock or substantially all of the assets of a
4        publicly traded company;
5            (F) a transfer by a parent company to a wholly
6        owned subsidiary; or
7            (G) the transfer or sale to or by one person to
8        another person where both persons were initial owners
9        of the registration when the registration was issued;
10        or
11        (2) the cannabis cultivation center registration,
12    medical cannabis dispensary registration, or the
13    controlling interest in a registrant's property is
14    transferred in a transaction to lineal descendants in which
15    no gain or loss is recognized or as a result of a
16    transaction in accordance with Section 351 of the Internal
17    Revenue Code in which no gain or loss is recognized.
18(Source: P.A. 100-22, eff. 7-6-17.)
 
19    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)
20    Sec. 203. Base income defined.
21    (a) Individuals.
22        (1) In general. In the case of an individual, base
23    income means an amount equal to the taxpayer's adjusted
24    gross income for the taxable year as modified by paragraph
25    (2).

 

 

HB0321- 265 -LRB101 04001 HLH 49009 b

1        (2) Modifications. The adjusted gross income referred
2    to in paragraph (1) shall be modified by adding thereto the
3    sum of the following amounts:
4            (A) An amount equal to all amounts paid or accrued
5        to the taxpayer as interest or dividends during the
6        taxable year to the extent excluded from gross income
7        in the computation of adjusted gross income, except
8        stock dividends of qualified public utilities
9        described in Section 305(e) of the Internal Revenue
10        Code;
11            (B) An amount equal to the amount of tax imposed by
12        this Act to the extent deducted from gross income in
13        the computation of adjusted gross income for the
14        taxable year;
15            (C) An amount equal to the amount received during
16        the taxable year as a recovery or refund of real
17        property taxes paid with respect to the taxpayer's
18        principal residence under the Revenue Act of 1939 and
19        for which a deduction was previously taken under
20        subparagraph (L) of this paragraph (2) prior to July 1,
21        1991, the retrospective application date of Article 4
22        of Public Act 87-17. In the case of multi-unit or
23        multi-use structures and farm dwellings, the taxes on
24        the taxpayer's principal residence shall be that
25        portion of the total taxes for the entire property
26        which is attributable to such principal residence;

 

 

HB0321- 266 -LRB101 04001 HLH 49009 b

1            (D) An amount equal to the amount of the capital
2        gain deduction allowable under the Internal Revenue
3        Code, to the extent deducted from gross income in the
4        computation of adjusted gross income;
5            (D-5) An amount, to the extent not included in
6        adjusted gross income, equal to the amount of money
7        withdrawn by the taxpayer in the taxable year from a
8        medical care savings account and the interest earned on
9        the account in the taxable year of a withdrawal
10        pursuant to subsection (b) of Section 20 of the Medical
11        Care Savings Account Act or subsection (b) of Section
12        20 of the Medical Care Savings Account Act of 2000;
13            (D-10) For taxable years ending after December 31,
14        1997, an amount equal to any eligible remediation costs
15        that the individual deducted in computing adjusted
16        gross income and for which the individual claims a
17        credit under subsection (l) of Section 201;
18            (D-15) For taxable years 2001 and thereafter, an
19        amount equal to the bonus depreciation deduction taken
20        on the taxpayer's federal income tax return for the
21        taxable year under subsection (k) of Section 168 of the
22        Internal Revenue Code;
23            (D-16) If the taxpayer sells, transfers, abandons,
24        or otherwise disposes of property for which the
25        taxpayer was required in any taxable year to make an
26        addition modification under subparagraph (D-15), then

 

 

HB0321- 267 -LRB101 04001 HLH 49009 b

1        an amount equal to the aggregate amount of the
2        deductions taken in all taxable years under
3        subparagraph (Z) with respect to that property.
4            If the taxpayer continues to own property through
5        the last day of the last tax year for which the
6        taxpayer may claim a depreciation deduction for
7        federal income tax purposes and for which the taxpayer
8        was allowed in any taxable year to make a subtraction
9        modification under subparagraph (Z), then an amount
10        equal to that subtraction modification.
11            The taxpayer is required to make the addition
12        modification under this subparagraph only once with
13        respect to any one piece of property;
14            (D-17) An amount equal to the amount otherwise
15        allowed as a deduction in computing base income for
16        interest paid, accrued, or incurred, directly or
17        indirectly, (i) for taxable years ending on or after
18        December 31, 2004, to a foreign person who would be a
19        member of the same unitary business group but for the
20        fact that foreign person's business activity outside
21        the United States is 80% or more of the foreign
22        person's total business activity and (ii) for taxable
23        years ending on or after December 31, 2008, to a person
24        who would be a member of the same unitary business
25        group but for the fact that the person is prohibited
26        under Section 1501(a)(27) from being included in the

 

 

HB0321- 268 -LRB101 04001 HLH 49009 b

1        unitary business group because he or she is ordinarily
2        required to apportion business income under different
3        subsections of Section 304. The addition modification
4        required by this subparagraph shall be reduced to the
5        extent that dividends were included in base income of
6        the unitary group for the same taxable year and
7        received by the taxpayer or by a member of the
8        taxpayer's unitary business group (including amounts
9        included in gross income under Sections 951 through 964
10        of the Internal Revenue Code and amounts included in
11        gross income under Section 78 of the Internal Revenue
12        Code) with respect to the stock of the same person to
13        whom the interest was paid, accrued, or incurred.
14            This paragraph shall not apply to the following:
15                (i) an item of interest paid, accrued, or
16            incurred, directly or indirectly, to a person who
17            is subject in a foreign country or state, other
18            than a state which requires mandatory unitary
19            reporting, to a tax on or measured by net income
20            with respect to such interest; or
21                (ii) an item of interest paid, accrued, or
22            incurred, directly or indirectly, to a person if
23            the taxpayer can establish, based on a
24            preponderance of the evidence, both of the
25            following:
26                    (a) the person, during the same taxable

 

 

HB0321- 269 -LRB101 04001 HLH 49009 b

1                year, paid, accrued, or incurred, the interest
2                to a person that is not a related member, and
3                    (b) the transaction giving rise to the
4                interest expense between the taxpayer and the
5                person did not have as a principal purpose the
6                avoidance of Illinois income tax, and is paid
7                pursuant to a contract or agreement that
8                reflects an arm's-length interest rate and
9                terms; or
10                (iii) the taxpayer can establish, based on
11            clear and convincing evidence, that the interest
12            paid, accrued, or incurred relates to a contract or
13            agreement entered into at arm's-length rates and
14            terms and the principal purpose for the payment is
15            not federal or Illinois tax avoidance; or
16                (iv) an item of interest paid, accrued, or
17            incurred, directly or indirectly, to a person if
18            the taxpayer establishes by clear and convincing
19            evidence that the adjustments are unreasonable; or
20            if the taxpayer and the Director agree in writing
21            to the application or use of an alternative method
22            of apportionment under Section 304(f).
23                Nothing in this subsection shall preclude the
24            Director from making any other adjustment
25            otherwise allowed under Section 404 of this Act for
26            any tax year beginning after the effective date of

 

 

HB0321- 270 -LRB101 04001 HLH 49009 b

1            this amendment provided such adjustment is made
2            pursuant to regulation adopted by the Department
3            and such regulations provide methods and standards
4            by which the Department will utilize its authority
5            under Section 404 of this Act;
6            (D-18) An amount equal to the amount of intangible
7        expenses and costs otherwise allowed as a deduction in
8        computing base income, and that were paid, accrued, or
9        incurred, directly or indirectly, (i) for taxable
10        years ending on or after December 31, 2004, to a
11        foreign person who would be a member of the same
12        unitary business group but for the fact that the
13        foreign person's business activity outside the United
14        States is 80% or more of that person's total business
15        activity and (ii) for taxable years ending on or after
16        December 31, 2008, to a person who would be a member of
17        the same unitary business group but for the fact that
18        the person is prohibited under Section 1501(a)(27)
19        from being included in the unitary business group
20        because he or she is ordinarily required to apportion
21        business income under different subsections of Section
22        304. The addition modification required by this
23        subparagraph shall be reduced to the extent that
24        dividends were included in base income of the unitary
25        group for the same taxable year and received by the
26        taxpayer or by a member of the taxpayer's unitary

 

 

HB0321- 271 -LRB101 04001 HLH 49009 b

1        business group (including amounts included in gross
2        income under Sections 951 through 964 of the Internal
3        Revenue Code and amounts included in gross income under
4        Section 78 of the Internal Revenue Code) with respect
5        to the stock of the same person to whom the intangible
6        expenses and costs were directly or indirectly paid,
7        incurred, or accrued. The preceding sentence does not
8        apply to the extent that the same dividends caused a
9        reduction to the addition modification required under
10        Section 203(a)(2)(D-17) of this Act. As used in this
11        subparagraph, the term "intangible expenses and costs"
12        includes (1) expenses, losses, and costs for, or
13        related to, the direct or indirect acquisition, use,
14        maintenance or management, ownership, sale, exchange,
15        or any other disposition of intangible property; (2)
16        losses incurred, directly or indirectly, from
17        factoring transactions or discounting transactions;
18        (3) royalty, patent, technical, and copyright fees;
19        (4) licensing fees; and (5) other similar expenses and
20        costs. For purposes of this subparagraph, "intangible
21        property" includes patents, patent applications, trade
22        names, trademarks, service marks, copyrights, mask
23        works, trade secrets, and similar types of intangible
24        assets.
25            This paragraph shall not apply to the following:
26                (i) any item of intangible expenses or costs

 

 

HB0321- 272 -LRB101 04001 HLH 49009 b

1            paid, accrued, or incurred, directly or
2            indirectly, from a transaction with a person who is
3            subject in a foreign country or state, other than a
4            state which requires mandatory unitary reporting,
5            to a tax on or measured by net income with respect
6            to such item; or
7                (ii) any item of intangible expense or cost
8            paid, accrued, or incurred, directly or
9            indirectly, if the taxpayer can establish, based
10            on a preponderance of the evidence, both of the
11            following:
12                    (a) the person during the same taxable
13                year paid, accrued, or incurred, the
14                intangible expense or cost to a person that is
15                not a related member, and
16                    (b) the transaction giving rise to the
17                intangible expense or cost between the
18                taxpayer and the person did not have as a
19                principal purpose the avoidance of Illinois
20                income tax, and is paid pursuant to a contract
21                or agreement that reflects arm's-length terms;
22                or
23                (iii) any item of intangible expense or cost
24            paid, accrued, or incurred, directly or
25            indirectly, from a transaction with a person if the
26            taxpayer establishes by clear and convincing

 

 

HB0321- 273 -LRB101 04001 HLH 49009 b

1            evidence, that the adjustments are unreasonable;
2            or if the taxpayer and the Director agree in
3            writing to the application or use of an alternative
4            method of apportionment under Section 304(f);
5                Nothing in this subsection shall preclude the
6            Director from making any other adjustment
7            otherwise allowed under Section 404 of this Act for
8            any tax year beginning after the effective date of
9            this amendment provided such adjustment is made
10            pursuant to regulation adopted by the Department
11            and such regulations provide methods and standards
12            by which the Department will utilize its authority
13            under Section 404 of this Act;
14            (D-19) For taxable years ending on or after
15        December 31, 2008, an amount equal to the amount of
16        insurance premium expenses and costs otherwise allowed
17        as a deduction in computing base income, and that were
18        paid, accrued, or incurred, directly or indirectly, to
19        a person who would be a member of the same unitary
20        business group but for the fact that the person is
21        prohibited under Section 1501(a)(27) from being
22        included in the unitary business group because he or
23        she is ordinarily required to apportion business
24        income under different subsections of Section 304. The
25        addition modification required by this subparagraph
26        shall be reduced to the extent that dividends were

 

 

HB0321- 274 -LRB101 04001 HLH 49009 b

1        included in base income of the unitary group for the
2        same taxable year and received by the taxpayer or by a
3        member of the taxpayer's unitary business group
4        (including amounts included in gross income under
5        Sections 951 through 964 of the Internal Revenue Code
6        and amounts included in gross income under Section 78
7        of the Internal Revenue Code) with respect to the stock
8        of the same person to whom the premiums and costs were
9        directly or indirectly paid, incurred, or accrued. The
10        preceding sentence does not apply to the extent that
11        the same dividends caused a reduction to the addition
12        modification required under Section 203(a)(2)(D-17) or
13        Section 203(a)(2)(D-18) of this Act.
14            (D-20) For taxable years beginning on or after
15        January 1, 2002 and ending on or before December 31,
16        2006, in the case of a distribution from a qualified
17        tuition program under Section 529 of the Internal
18        Revenue Code, other than (i) a distribution from a
19        College Savings Pool created under Section 16.5 of the
20        State Treasurer Act or (ii) a distribution from the
21        Illinois Prepaid Tuition Trust Fund, an amount equal to
22        the amount excluded from gross income under Section
23        529(c)(3)(B). For taxable years beginning on or after
24        January 1, 2007, in the case of a distribution from a
25        qualified tuition program under Section 529 of the
26        Internal Revenue Code, other than (i) a distribution

 

 

HB0321- 275 -LRB101 04001 HLH 49009 b

1        from a College Savings Pool created under Section 16.5
2        of the State Treasurer Act, (ii) a distribution from
3        the Illinois Prepaid Tuition Trust Fund, or (iii) a
4        distribution from a qualified tuition program under
5        Section 529 of the Internal Revenue Code that (I)
6        adopts and determines that its offering materials
7        comply with the College Savings Plans Network's
8        disclosure principles and (II) has made reasonable
9        efforts to inform in-state residents of the existence
10        of in-state qualified tuition programs by informing
11        Illinois residents directly and, where applicable, to
12        inform financial intermediaries distributing the
13        program to inform in-state residents of the existence
14        of in-state qualified tuition programs at least
15        annually, an amount equal to the amount excluded from
16        gross income under Section 529(c)(3)(B).
17            For the purposes of this subparagraph (D-20), a
18        qualified tuition program has made reasonable efforts
19        if it makes disclosures (which may use the term
20        "in-state program" or "in-state plan" and need not
21        specifically refer to Illinois or its qualified
22        programs by name) (i) directly to prospective
23        participants in its offering materials or makes a
24        public disclosure, such as a website posting; and (ii)
25        where applicable, to intermediaries selling the
26        out-of-state program in the same manner that the

 

 

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1        out-of-state program distributes its offering
2        materials;
3            (D-20.5) For taxable years beginning on or after
4        January 1, 2018, in the case of a distribution from a
5        qualified ABLE program under Section 529A of the
6        Internal Revenue Code, other than a distribution from a
7        qualified ABLE program created under Section 16.6 of
8        the State Treasurer Act, an amount equal to the amount
9        excluded from gross income under Section 529A(c)(1)(B)
10        of the Internal Revenue Code;
11            (D-21) For taxable years beginning on or after
12        January 1, 2007, in the case of transfer of moneys from
13        a qualified tuition program under Section 529 of the
14        Internal Revenue Code that is administered by the State
15        to an out-of-state program, an amount equal to the
16        amount of moneys previously deducted from base income
17        under subsection (a)(2)(Y) of this Section;
18            (D-21.5) For taxable years beginning on or after
19        January 1, 2018, in the case of the transfer of moneys
20        from a qualified tuition program under Section 529 or a
21        qualified ABLE program under Section 529A of the
22        Internal Revenue Code that is administered by this
23        State to an ABLE account established under an
24        out-of-state ABLE account program, an amount equal to
25        the contribution component of the transferred amount
26        that was previously deducted from base income under

 

 

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1        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
2        Section;
3            (D-22) For taxable years beginning on or after
4        January 1, 2009, and prior to January 1, 2018, in the
5        case of a nonqualified withdrawal or refund of moneys
6        from a qualified tuition program under Section 529 of
7        the Internal Revenue Code administered by the State
8        that is not used for qualified expenses at an eligible
9        education institution, an amount equal to the
10        contribution component of the nonqualified withdrawal
11        or refund that was previously deducted from base income
12        under subsection (a)(2)(y) of this Section, provided
13        that the withdrawal or refund did not result from the
14        beneficiary's death or disability. For taxable years
15        beginning on or after January 1, 2018: (1) in the case
16        of a nonqualified withdrawal or refund, as defined
17        under Section 16.5 of the State Treasurer Act, of
18        moneys from a qualified tuition program under Section
19        529 of the Internal Revenue Code administered by the
20        State, an amount equal to the contribution component of
21        the nonqualified withdrawal or refund that was
22        previously deducted from base income under subsection
23        (a)(2)(Y) of this Section, and (2) in the case of a
24        nonqualified withdrawal or refund from a qualified
25        ABLE program under Section 529A of the Internal Revenue
26        Code administered by the State that is not used for

 

 

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1        qualified disability expenses, an amount equal to the
2        contribution component of the nonqualified withdrawal
3        or refund that was previously deducted from base income
4        under subsection (a)(2)(HH) of this Section;
5            (D-23) An amount equal to the credit allowable to
6        the taxpayer under Section 218(a) of this Act,
7        determined without regard to Section 218(c) of this
8        Act;
9            (D-24) For taxable years ending on or after
10        December 31, 2017 and ending on or before December 31,
11        2018, an amount equal to the deduction allowed under
12        Section 199 of the Internal Revenue Code for the
13        taxable year;
14    and by deducting from the total so obtained the sum of the
15    following amounts:
16            (E) For taxable years ending before December 31,
17        2001, any amount included in such total in respect of
18        any compensation (including but not limited to any
19        compensation paid or accrued to a serviceman while a
20        prisoner of war or missing in action) paid to a
21        resident by reason of being on active duty in the Armed
22        Forces of the United States and in respect of any
23        compensation paid or accrued to a resident who as a
24        governmental employee was a prisoner of war or missing
25        in action, and in respect of any compensation paid to a
26        resident in 1971 or thereafter for annual training

 

 

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1        performed pursuant to Sections 502 and 503, Title 32,
2        United States Code as a member of the Illinois National
3        Guard or, beginning with taxable years ending on or
4        after December 31, 2007, the National Guard of any
5        other state. For taxable years ending on or after
6        December 31, 2001, any amount included in such total in
7        respect of any compensation (including but not limited
8        to any compensation paid or accrued to a serviceman
9        while a prisoner of war or missing in action) paid to a
10        resident by reason of being a member of any component
11        of the Armed Forces of the United States and in respect
12        of any compensation paid or accrued to a resident who
13        as a governmental employee was a prisoner of war or
14        missing in action, and in respect of any compensation
15        paid to a resident in 2001 or thereafter by reason of
16        being a member of the Illinois National Guard or,
17        beginning with taxable years ending on or after
18        December 31, 2007, the National Guard of any other
19        state. The provisions of this subparagraph (E) are
20        exempt from the provisions of Section 250;
21            (F) An amount equal to all amounts included in such
22        total pursuant to the provisions of Sections 402(a),
23        402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
24        Internal Revenue Code, or included in such total as
25        distributions under the provisions of any retirement
26        or disability plan for employees of any governmental

 

 

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1        agency or unit, or retirement payments to retired
2        partners, which payments are excluded in computing net
3        earnings from self employment by Section 1402 of the
4        Internal Revenue Code and regulations adopted pursuant
5        thereto;
6            (G) The valuation limitation amount;
7            (H) An amount equal to the amount of any tax
8        imposed by this Act which was refunded to the taxpayer
9        and included in such total for the taxable year;
10            (I) An amount equal to all amounts included in such
11        total pursuant to the provisions of Section 111 of the
12        Internal Revenue Code as a recovery of items previously
13        deducted from adjusted gross income in the computation
14        of taxable income;
15            (J) An amount equal to those dividends included in
16        such total which were paid by a corporation which
17        conducts business operations in a River Edge
18        Redevelopment Zone or zones created under the River
19        Edge Redevelopment Zone Act, and conducts
20        substantially all of its operations in a River Edge
21        Redevelopment Zone or zones. This subparagraph (J) is
22        exempt from the provisions of Section 250;
23            (K) An amount equal to those dividends included in
24        such total that were paid by a corporation that
25        conducts business operations in a federally designated
26        Foreign Trade Zone or Sub-Zone and that is designated a

 

 

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1        High Impact Business located in Illinois; provided
2        that dividends eligible for the deduction provided in
3        subparagraph (J) of paragraph (2) of this subsection
4        shall not be eligible for the deduction provided under
5        this subparagraph (K);
6            (L) For taxable years ending after December 31,
7        1983, an amount equal to all social security benefits
8        and railroad retirement benefits included in such
9        total pursuant to Sections 72(r) and 86 of the Internal
10        Revenue Code;
11            (M) With the exception of any amounts subtracted
12        under subparagraph (N), an amount equal to the sum of
13        all amounts disallowed as deductions by (i) Sections
14        171(a)(2), and 265(a)(2) 265(2) of the Internal
15        Revenue Code, and all amounts of expenses allocable to
16        interest and disallowed as deductions by Section
17        265(a)(1) 265(1) of the Internal Revenue Code; and (ii)
18        for taxable years ending on or after August 13, 1999,
19        Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
20        the Internal Revenue Code, plus, for taxable years
21        ending on or after December 31, 2011, Section 45G(e)(3)
22        of the Internal Revenue Code and, for taxable years
23        ending on or after December 31, 2008, any amount
24        included in gross income under Section 87 of the
25        Internal Revenue Code; the provisions of this
26        subparagraph are exempt from the provisions of Section

 

 

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1        250;
2            (N) An amount equal to all amounts included in such
3        total which are exempt from taxation by this State
4        either by reason of its statutes or Constitution or by
5        reason of the Constitution, treaties or statutes of the
6        United States; provided that, in the case of any
7        statute of this State that exempts income derived from
8        bonds or other obligations from the tax imposed under
9        this Act, the amount exempted shall be the interest net
10        of bond premium amortization;
11            (O) An amount equal to any contribution made to a
12        job training project established pursuant to the Tax
13        Increment Allocation Redevelopment Act;
14            (P) An amount equal to the amount of the deduction
15        used to compute the federal income tax credit for
16        restoration of substantial amounts held under claim of
17        right for the taxable year pursuant to Section 1341 of
18        the Internal Revenue Code or of any itemized deduction
19        taken from adjusted gross income in the computation of
20        taxable income for restoration of substantial amounts
21        held under claim of right for the taxable year;
22            (Q) An amount equal to any amounts included in such
23        total, received by the taxpayer as an acceleration in
24        the payment of life, endowment or annuity benefits in
25        advance of the time they would otherwise be payable as
26        an indemnity for a terminal illness;

 

 

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1            (R) An amount equal to the amount of any federal or
2        State bonus paid to veterans of the Persian Gulf War;
3            (S) An amount, to the extent included in adjusted
4        gross income, equal to the amount of a contribution
5        made in the taxable year on behalf of the taxpayer to a
6        medical care savings account established under the
7        Medical Care Savings Account Act or the Medical Care
8        Savings Account Act of 2000 to the extent the
9        contribution is accepted by the account administrator
10        as provided in that Act;
11            (T) An amount, to the extent included in adjusted
12        gross income, equal to the amount of interest earned in
13        the taxable year on a medical care savings account
14        established under the Medical Care Savings Account Act
15        or the Medical Care Savings Account Act of 2000 on
16        behalf of the taxpayer, other than interest added
17        pursuant to item (D-5) of this paragraph (2);
18            (U) For one taxable year beginning on or after
19        January 1, 1994, an amount equal to the total amount of
20        tax imposed and paid under subsections (a) and (b) of
21        Section 201 of this Act on grant amounts received by
22        the taxpayer under the Nursing Home Grant Assistance
23        Act during the taxpayer's taxable years 1992 and 1993;
24            (V) Beginning with tax years ending on or after
25        December 31, 1995 and ending with tax years ending on
26        or before December 31, 2004, an amount equal to the

 

 

HB0321- 284 -LRB101 04001 HLH 49009 b

1        amount paid by a taxpayer who is a self-employed
2        taxpayer, a partner of a partnership, or a shareholder
3        in a Subchapter S corporation for health insurance or
4        long-term care insurance for that taxpayer or that
5        taxpayer's spouse or dependents, to the extent that the
6        amount paid for that health insurance or long-term care
7        insurance may be deducted under Section 213 of the
8        Internal Revenue Code, has not been deducted on the
9        federal income tax return of the taxpayer, and does not
10        exceed the taxable income attributable to that
11        taxpayer's income, self-employment income, or
12        Subchapter S corporation income; except that no
13        deduction shall be allowed under this item (V) if the
14        taxpayer is eligible to participate in any health
15        insurance or long-term care insurance plan of an
16        employer of the taxpayer or the taxpayer's spouse. The
17        amount of the health insurance and long-term care
18        insurance subtracted under this item (V) shall be
19        determined by multiplying total health insurance and
20        long-term care insurance premiums paid by the taxpayer
21        times a number that represents the fractional
22        percentage of eligible medical expenses under Section
23        213 of the Internal Revenue Code of 1986 not actually
24        deducted on the taxpayer's federal income tax return;
25            (W) For taxable years beginning on or after January
26        1, 1998, all amounts included in the taxpayer's federal

 

 

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1        gross income in the taxable year from amounts converted
2        from a regular IRA to a Roth IRA. This paragraph is
3        exempt from the provisions of Section 250;
4            (X) For taxable year 1999 and thereafter, an amount
5        equal to the amount of any (i) distributions, to the
6        extent includible in gross income for federal income
7        tax purposes, made to the taxpayer because of his or
8        her status as a victim of persecution for racial or
9        religious reasons by Nazi Germany or any other Axis
10        regime or as an heir of the victim and (ii) items of
11        income, to the extent includible in gross income for
12        federal income tax purposes, attributable to, derived
13        from or in any way related to assets stolen from,
14        hidden from, or otherwise lost to a victim of
15        persecution for racial or religious reasons by Nazi
16        Germany or any other Axis regime immediately prior to,
17        during, and immediately after World War II, including,
18        but not limited to, interest on the proceeds receivable
19        as insurance under policies issued to a victim of
20        persecution for racial or religious reasons by Nazi
21        Germany or any other Axis regime by European insurance
22        companies immediately prior to and during World War II;
23        provided, however, this subtraction from federal
24        adjusted gross income does not apply to assets acquired
25        with such assets or with the proceeds from the sale of
26        such assets; provided, further, this paragraph shall

 

 

HB0321- 286 -LRB101 04001 HLH 49009 b

1        only apply to a taxpayer who was the first recipient of
2        such assets after their recovery and who is a victim of
3        persecution for racial or religious reasons by Nazi
4        Germany or any other Axis regime or as an heir of the
5        victim. The amount of and the eligibility for any
6        public assistance, benefit, or similar entitlement is
7        not affected by the inclusion of items (i) and (ii) of
8        this paragraph in gross income for federal income tax
9        purposes. This paragraph is exempt from the provisions
10        of Section 250;
11            (Y) For taxable years beginning on or after January
12        1, 2002 and ending on or before December 31, 2004,
13        moneys contributed in the taxable year to a College
14        Savings Pool account under Section 16.5 of the State
15        Treasurer Act, except that amounts excluded from gross
16        income under Section 529(c)(3)(C)(i) of the Internal
17        Revenue Code shall not be considered moneys
18        contributed under this subparagraph (Y). For taxable
19        years beginning on or after January 1, 2005, a maximum
20        of $10,000 contributed in the taxable year to (i) a
21        College Savings Pool account under Section 16.5 of the
22        State Treasurer Act or (ii) the Illinois Prepaid
23        Tuition Trust Fund, except that amounts excluded from
24        gross income under Section 529(c)(3)(C)(i) of the
25        Internal Revenue Code shall not be considered moneys
26        contributed under this subparagraph (Y). For purposes

 

 

HB0321- 287 -LRB101 04001 HLH 49009 b

1        of this subparagraph, contributions made by an
2        employer on behalf of an employee, or matching
3        contributions made by an employee, shall be treated as
4        made by the employee. This subparagraph (Y) is exempt
5        from the provisions of Section 250;
6            (Z) For taxable years 2001 and thereafter, for the
7        taxable year in which the bonus depreciation deduction
8        is taken on the taxpayer's federal income tax return
9        under subsection (k) of Section 168 of the Internal
10        Revenue Code and for each applicable taxable year
11        thereafter, an amount equal to "x", where:
12                (1) "y" equals the amount of the depreciation
13            deduction taken for the taxable year on the
14            taxpayer's federal income tax return on property
15            for which the bonus depreciation deduction was
16            taken in any year under subsection (k) of Section
17            168 of the Internal Revenue Code, but not including
18            the bonus depreciation deduction;
19                (2) for taxable years ending on or before
20            December 31, 2005, "x" equals "y" multiplied by 30
21            and then divided by 70 (or "y" multiplied by
22            0.429); and
23                (3) for taxable years ending after December
24            31, 2005:
25                    (i) for property on which a bonus
26                depreciation deduction of 30% of the adjusted

 

 

HB0321- 288 -LRB101 04001 HLH 49009 b

1                basis was taken, "x" equals "y" multiplied by
2                30 and then divided by 70 (or "y" multiplied by
3                0.429); and
4                    (ii) for property on which a bonus
5                depreciation deduction of 50% of the adjusted
6                basis was taken, "x" equals "y" multiplied by
7                1.0.
8            The aggregate amount deducted under this
9        subparagraph in all taxable years for any one piece of
10        property may not exceed the amount of the bonus
11        depreciation deduction taken on that property on the
12        taxpayer's federal income tax return under subsection
13        (k) of Section 168 of the Internal Revenue Code. This
14        subparagraph (Z) is exempt from the provisions of
15        Section 250;
16            (AA) If the taxpayer sells, transfers, abandons,
17        or otherwise disposes of property for which the
18        taxpayer was required in any taxable year to make an
19        addition modification under subparagraph (D-15), then
20        an amount equal to that addition modification.
21            If the taxpayer continues to own property through
22        the last day of the last tax year for which the
23        taxpayer may claim a depreciation deduction for
24        federal income tax purposes and for which the taxpayer
25        was required in any taxable year to make an addition
26        modification under subparagraph (D-15), then an amount

 

 

HB0321- 289 -LRB101 04001 HLH 49009 b

1        equal to that addition modification.
2            The taxpayer is allowed to take the deduction under
3        this subparagraph only once with respect to any one
4        piece of property.
5            This subparagraph (AA) is exempt from the
6        provisions of Section 250;
7            (BB) Any amount included in adjusted gross income,
8        other than salary, received by a driver in a
9        ridesharing arrangement using a motor vehicle;
10            (CC) The amount of (i) any interest income (net of
11        the deductions allocable thereto) taken into account
12        for the taxable year with respect to a transaction with
13        a taxpayer that is required to make an addition
14        modification with respect to such transaction under
15        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17        the amount of that addition modification, and (ii) any
18        income from intangible property (net of the deductions
19        allocable thereto) taken into account for the taxable
20        year with respect to a transaction with a taxpayer that
21        is required to make an addition modification with
22        respect to such transaction under Section
23        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24        203(d)(2)(D-8), but not to exceed the amount of that
25        addition modification. This subparagraph (CC) is
26        exempt from the provisions of Section 250;

 

 

HB0321- 290 -LRB101 04001 HLH 49009 b

1            (DD) An amount equal to the interest income taken
2        into account for the taxable year (net of the
3        deductions allocable thereto) with respect to
4        transactions with (i) a foreign person who would be a
5        member of the taxpayer's unitary business group but for
6        the fact that the foreign person's business activity
7        outside the United States is 80% or more of that
8        person's total business activity and (ii) for taxable
9        years ending on or after December 31, 2008, to a person
10        who would be a member of the same unitary business
11        group but for the fact that the person is prohibited
12        under Section 1501(a)(27) from being included in the
13        unitary business group because he or she is ordinarily
14        required to apportion business income under different
15        subsections of Section 304, but not to exceed the
16        addition modification required to be made for the same
17        taxable year under Section 203(a)(2)(D-17) for
18        interest paid, accrued, or incurred, directly or
19        indirectly, to the same person. This subparagraph (DD)
20        is exempt from the provisions of Section 250;
21            (EE) An amount equal to the income from intangible
22        property taken into account for the taxable year (net
23        of the deductions allocable thereto) with respect to
24        transactions with (i) a foreign person who would be a
25        member of the taxpayer's unitary business group but for
26        the fact that the foreign person's business activity

 

 

HB0321- 291 -LRB101 04001 HLH 49009 b

1        outside the United States is 80% or more of that
2        person's total business activity and (ii) for taxable
3        years ending on or after December 31, 2008, to a person
4        who would be a member of the same unitary business
5        group but for the fact that the person is prohibited
6        under Section 1501(a)(27) from being included in the
7        unitary business group because he or she is ordinarily
8        required to apportion business income under different
9        subsections of Section 304, but not to exceed the
10        addition modification required to be made for the same
11        taxable year under Section 203(a)(2)(D-18) for
12        intangible expenses and costs paid, accrued, or
13        incurred, directly or indirectly, to the same foreign
14        person. This subparagraph (EE) is exempt from the
15        provisions of Section 250;
16            (FF) An amount equal to any amount awarded to the
17        taxpayer during the taxable year by the Court of Claims
18        under subsection (c) of Section 8 of the Court of
19        Claims Act for time unjustly served in a State prison.
20        This subparagraph (FF) is exempt from the provisions of
21        Section 250;
22            (GG) For taxable years ending on or after December
23        31, 2011, in the case of a taxpayer who was required to
24        add back any insurance premiums under Section
25        203(a)(2)(D-19), such taxpayer may elect to subtract
26        that part of a reimbursement received from the

 

 

HB0321- 292 -LRB101 04001 HLH 49009 b

1        insurance company equal to the amount of the expense or
2        loss (including expenses incurred by the insurance
3        company) that would have been taken into account as a
4        deduction for federal income tax purposes if the
5        expense or loss had been uninsured. If a taxpayer makes
6        the election provided for by this subparagraph (GG),
7        the insurer to which the premiums were paid must add
8        back to income the amount subtracted by the taxpayer
9        pursuant to this subparagraph (GG). This subparagraph
10        (GG) is exempt from the provisions of Section 250; and
11            (HH) For taxable years beginning on or after
12        January 1, 2018 and prior to January 1, 2023, a maximum
13        of $10,000 contributed in the taxable year to a
14        qualified ABLE account under Section 16.6 of the State
15        Treasurer Act, except that amounts excluded from gross
16        income under Section 529(c)(3)(C)(i) or Section
17        529A(c)(1)(C) of the Internal Revenue Code shall not be
18        considered moneys contributed under this subparagraph
19        (HH). For purposes of this subparagraph (HH),
20        contributions made by an employer on behalf of an
21        employee, or matching contributions made by an
22        employee, shall be treated as made by the employee.
 
23    (b) Corporations.
24        (1) In general. In the case of a corporation, base
25    income means an amount equal to the taxpayer's taxable

 

 

HB0321- 293 -LRB101 04001 HLH 49009 b

1    income for the taxable year as modified by paragraph (2).
2        (2) Modifications. The taxable income referred to in
3    paragraph (1) shall be modified by adding thereto the sum
4    of the following amounts:
5            (A) An amount equal to all amounts paid or accrued
6        to the taxpayer as interest and all distributions
7        received from regulated investment companies during
8        the taxable year to the extent excluded from gross
9        income in the computation of taxable income;
10            (B) An amount equal to the amount of tax imposed by
11        this Act to the extent deducted from gross income in
12        the computation of taxable income for the taxable year;
13            (C) In the case of a regulated investment company,
14        an amount equal to the excess of (i) the net long-term
15        capital gain for the taxable year, over (ii) the amount
16        of the capital gain dividends designated as such in
17        accordance with Section 852(b)(3)(C) of the Internal
18        Revenue Code and any amount designated under Section
19        852(b)(3)(D) of the Internal Revenue Code,
20        attributable to the taxable year (this amendatory Act
21        of 1995 (Public Act 89-89) is declarative of existing
22        law and is not a new enactment);
23            (D) The amount of any net operating loss deduction
24        taken in arriving at taxable income, other than a net
25        operating loss carried forward from a taxable year
26        ending prior to December 31, 1986;

 

 

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1            (E) For taxable years in which a net operating loss
2        carryback or carryforward from a taxable year ending
3        prior to December 31, 1986 is an element of taxable
4        income under paragraph (1) of subsection (e) or
5        subparagraph (E) of paragraph (2) of subsection (e),
6        the amount by which addition modifications other than
7        those provided by this subparagraph (E) exceeded
8        subtraction modifications in such earlier taxable
9        year, with the following limitations applied in the
10        order that they are listed:
11                (i) the addition modification relating to the
12            net operating loss carried back or forward to the
13            taxable year from any taxable year ending prior to
14            December 31, 1986 shall be reduced by the amount of
15            addition modification under this subparagraph (E)
16            which related to that net operating loss and which
17            was taken into account in calculating the base
18            income of an earlier taxable year, and
19                (ii) the addition modification relating to the
20            net operating loss carried back or forward to the
21            taxable year from any taxable year ending prior to
22            December 31, 1986 shall not exceed the amount of
23            such carryback or carryforward;
24            For taxable years in which there is a net operating
25        loss carryback or carryforward from more than one other
26        taxable year ending prior to December 31, 1986, the

 

 

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1        addition modification provided in this subparagraph
2        (E) shall be the sum of the amounts computed
3        independently under the preceding provisions of this
4        subparagraph (E) for each such taxable year;
5            (E-5) For taxable years ending after December 31,
6        1997, an amount equal to any eligible remediation costs
7        that the corporation deducted in computing adjusted
8        gross income and for which the corporation claims a
9        credit under subsection (l) of Section 201;
10            (E-10) For taxable years 2001 and thereafter, an
11        amount equal to the bonus depreciation deduction taken
12        on the taxpayer's federal income tax return for the
13        taxable year under subsection (k) of Section 168 of the
14        Internal Revenue Code;
15            (E-11) If the taxpayer sells, transfers, abandons,
16        or otherwise disposes of property for which the
17        taxpayer was required in any taxable year to make an
18        addition modification under subparagraph (E-10), then
19        an amount equal to the aggregate amount of the
20        deductions taken in all taxable years under
21        subparagraph (T) with respect to that property.
22            If the taxpayer continues to own property through
23        the last day of the last tax year for which the
24        taxpayer may claim a depreciation deduction for
25        federal income tax purposes and for which the taxpayer
26        was allowed in any taxable year to make a subtraction

 

 

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1        modification under subparagraph (T), then an amount
2        equal to that subtraction modification.
3            The taxpayer is required to make the addition
4        modification under this subparagraph only once with
5        respect to any one piece of property;
6            (E-12) An amount equal to the amount otherwise
7        allowed as a deduction in computing base income for
8        interest paid, accrued, or incurred, directly or
9        indirectly, (i) for taxable years ending on or after
10        December 31, 2004, to a foreign person who would be a
11        member of the same unitary business group but for the
12        fact the foreign person's business activity outside
13        the United States is 80% or more of the foreign
14        person's total business activity and (ii) for taxable
15        years ending on or after December 31, 2008, to a person
16        who would be a member of the same unitary business
17        group but for the fact that the person is prohibited
18        under Section 1501(a)(27) from being included in the
19        unitary business group because he or she is ordinarily
20        required to apportion business income under different
21        subsections of Section 304. The addition modification
22        required by this subparagraph shall be reduced to the
23        extent that dividends were included in base income of
24        the unitary group for the same taxable year and
25        received by the taxpayer or by a member of the
26        taxpayer's unitary business group (including amounts

 

 

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1        included in gross income pursuant to Sections 951
2        through 964 of the Internal Revenue Code and amounts
3        included in gross income under Section 78 of the
4        Internal Revenue Code) with respect to the stock of the
5        same person to whom the interest was paid, accrued, or
6        incurred.
7            This paragraph shall not apply to the following:
8                (i) an item of interest paid, accrued, or
9            incurred, directly or indirectly, to a person who
10            is subject in a foreign country or state, other
11            than a state which requires mandatory unitary
12            reporting, to a tax on or measured by net income
13            with respect to such interest; or
14                (ii) an item of interest paid, accrued, or
15            incurred, directly or indirectly, to a person if
16            the taxpayer can establish, based on a
17            preponderance of the evidence, both of the
18            following:
19                    (a) the person, during the same taxable
20                year, paid, accrued, or incurred, the interest
21                to a person that is not a related member, and
22                    (b) the transaction giving rise to the
23                interest expense between the taxpayer and the
24                person did not have as a principal purpose the
25                avoidance of Illinois income tax, and is paid
26                pursuant to a contract or agreement that

 

 

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1                reflects an arm's-length interest rate and
2                terms; or
3                (iii) the taxpayer can establish, based on
4            clear and convincing evidence, that the interest
5            paid, accrued, or incurred relates to a contract or
6            agreement entered into at arm's-length rates and
7            terms and the principal purpose for the payment is
8            not federal or Illinois tax avoidance; or
9                (iv) an item of interest paid, accrued, or
10            incurred, directly or indirectly, to a person if
11            the taxpayer establishes by clear and convincing
12            evidence that the adjustments are unreasonable; or
13            if the taxpayer and the Director agree in writing
14            to the application or use of an alternative method
15            of apportionment under Section 304(f).
16                Nothing in this subsection shall preclude the
17            Director from making any other adjustment
18            otherwise allowed under Section 404 of this Act for
19            any tax year beginning after the effective date of
20            this amendment provided such adjustment is made
21            pursuant to regulation adopted by the Department
22            and such regulations provide methods and standards
23            by which the Department will utilize its authority
24            under Section 404 of this Act;
25            (E-13) An amount equal to the amount of intangible
26        expenses and costs otherwise allowed as a deduction in

 

 

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1        computing base income, and that were paid, accrued, or
2        incurred, directly or indirectly, (i) for taxable
3        years ending on or after December 31, 2004, to a
4        foreign person who would be a member of the same
5        unitary business group but for the fact that the
6        foreign person's business activity outside the United
7        States is 80% or more of that person's total business
8        activity and (ii) for taxable years ending on or after
9        December 31, 2008, to a person who would be a member of
10        the same unitary business group but for the fact that
11        the person is prohibited under Section 1501(a)(27)
12        from being included in the unitary business group
13        because he or she is ordinarily required to apportion
14        business income under different subsections of Section
15        304. The addition modification required by this
16        subparagraph shall be reduced to the extent that
17        dividends were included in base income of the unitary
18        group for the same taxable year and received by the
19        taxpayer or by a member of the taxpayer's unitary
20        business group (including amounts included in gross
21        income pursuant to Sections 951 through 964 of the
22        Internal Revenue Code and amounts included in gross
23        income under Section 78 of the Internal Revenue Code)
24        with respect to the stock of the same person to whom
25        the intangible expenses and costs were directly or
26        indirectly paid, incurred, or accrued. The preceding

 

 

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1        sentence shall not apply to the extent that the same
2        dividends caused a reduction to the addition
3        modification required under Section 203(b)(2)(E-12) of
4        this Act. As used in this subparagraph, the term
5        "intangible expenses and costs" includes (1) expenses,
6        losses, and costs for, or related to, the direct or
7        indirect acquisition, use, maintenance or management,
8        ownership, sale, exchange, or any other disposition of
9        intangible property; (2) losses incurred, directly or
10        indirectly, from factoring transactions or discounting
11        transactions; (3) royalty, patent, technical, and
12        copyright fees; (4) licensing fees; and (5) other
13        similar expenses and costs. For purposes of this
14        subparagraph, "intangible property" includes patents,
15        patent applications, trade names, trademarks, service
16        marks, copyrights, mask works, trade secrets, and
17        similar types of intangible assets.
18            This paragraph shall not apply to the following:
19                (i) any item of intangible expenses or costs
20            paid, accrued, or incurred, directly or
21            indirectly, from a transaction with a person who is
22            subject in a foreign country or state, other than a
23            state which requires mandatory unitary reporting,
24            to a tax on or measured by net income with respect
25            to such item; or
26                (ii) any item of intangible expense or cost

 

 

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1            paid, accrued, or incurred, directly or
2            indirectly, if the taxpayer can establish, based
3            on a preponderance of the evidence, both of the
4            following:
5                    (a) the person during the same taxable
6                year paid, accrued, or incurred, the
7                intangible expense or cost to a person that is
8                not a related member, and
9                    (b) the transaction giving rise to the
10                intangible expense or cost between the
11                taxpayer and the person did not have as a
12                principal purpose the avoidance of Illinois
13                income tax, and is paid pursuant to a contract
14                or agreement that reflects arm's-length terms;
15                or
16                (iii) any item of intangible expense or cost
17            paid, accrued, or incurred, directly or
18            indirectly, from a transaction with a person if the
19            taxpayer establishes by clear and convincing
20            evidence, that the adjustments are unreasonable;
21            or if the taxpayer and the Director agree in
22            writing to the application or use of an alternative
23            method of apportionment under Section 304(f);
24                Nothing in this subsection shall preclude the
25            Director from making any other adjustment
26            otherwise allowed under Section 404 of this Act for

 

 

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1            any tax year beginning after the effective date of
2            this amendment provided such adjustment is made
3            pursuant to regulation adopted by the Department
4            and such regulations provide methods and standards
5            by which the Department will utilize its authority
6            under Section 404 of this Act;
7            (E-14) For taxable years ending on or after
8        December 31, 2008, an amount equal to the amount of
9        insurance premium expenses and costs otherwise allowed
10        as a deduction in computing base income, and that were
11        paid, accrued, or incurred, directly or indirectly, to
12        a person who would be a member of the same unitary
13        business group but for the fact that the person is
14        prohibited under Section 1501(a)(27) from being
15        included in the unitary business group because he or
16        she is ordinarily required to apportion business
17        income under different subsections of Section 304. The
18        addition modification required by this subparagraph
19        shall be reduced to the extent that dividends were
20        included in base income of the unitary group for the
21        same taxable year and received by the taxpayer or by a
22        member of the taxpayer's unitary business group
23        (including amounts included in gross income under
24        Sections 951 through 964 of the Internal Revenue Code
25        and amounts included in gross income under Section 78
26        of the Internal Revenue Code) with respect to the stock

 

 

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1        of the same person to whom the premiums and costs were
2        directly or indirectly paid, incurred, or accrued. The
3        preceding sentence does not apply to the extent that
4        the same dividends caused a reduction to the addition
5        modification required under Section 203(b)(2)(E-12) or
6        Section 203(b)(2)(E-13) of this Act;
7            (E-15) For taxable years beginning after December
8        31, 2008, any deduction for dividends paid by a captive
9        real estate investment trust that is allowed to a real
10        estate investment trust under Section 857(b)(2)(B) of
11        the Internal Revenue Code for dividends paid;
12            (E-16) An amount equal to the credit allowable to
13        the taxpayer under Section 218(a) of this Act,
14        determined without regard to Section 218(c) of this
15        Act;
16            (E-17) For taxable years ending on or after
17        December 31, 2017 and ending on or before December 31,
18        2018, an amount equal to the deduction allowed under
19        Section 199 of the Internal Revenue Code for the
20        taxable year;
21    and by deducting from the total so obtained the sum of the
22    following amounts:
23            (F) An amount equal to the amount of any tax
24        imposed by this Act which was refunded to the taxpayer
25        and included in such total for the taxable year;
26            (G) An amount equal to any amount included in such

 

 

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1        total under Section 78 of the Internal Revenue Code;
2            (H) In the case of a regulated investment company,
3        an amount equal to the amount of exempt interest
4        dividends as defined in subsection (b)(5) of Section
5        852 of the Internal Revenue Code, paid to shareholders
6        for the taxable year;
7            (I) With the exception of any amounts subtracted
8        under subparagraph (J), an amount equal to the sum of
9        all amounts disallowed as deductions by (i) Sections
10        171(a)(2), and 265(a)(2) and amounts disallowed as
11        interest expense by Section 291(a)(3) of the Internal
12        Revenue Code, and all amounts of expenses allocable to
13        interest and disallowed as deductions by Section
14        265(a)(1) of the Internal Revenue Code; and (ii) for
15        taxable years ending on or after August 13, 1999,
16        Sections 171(a)(2), 265, 280C, 291(a)(3), and
17        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
18        for tax years ending on or after December 31, 2011,
19        amounts disallowed as deductions by Section 45G(e)(3)
20        of the Internal Revenue Code and, for taxable years
21        ending on or after December 31, 2008, any amount
22        included in gross income under Section 87 of the
23        Internal Revenue Code and the policyholders' share of
24        tax-exempt interest of a life insurance company under
25        Section 807(a)(2)(B) of the Internal Revenue Code (in
26        the case of a life insurance company with gross income

 

 

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1        from a decrease in reserves for the tax year) or
2        Section 807(b)(1)(B) of the Internal Revenue Code (in
3        the case of a life insurance company allowed a
4        deduction for an increase in reserves for the tax
5        year); the provisions of this subparagraph are exempt
6        from the provisions of Section 250;
7            (J) An amount equal to all amounts included in such
8        total which are exempt from taxation by this State
9        either by reason of its statutes or Constitution or by
10        reason of the Constitution, treaties or statutes of the
11        United States; provided that, in the case of any
12        statute of this State that exempts income derived from
13        bonds or other obligations from the tax imposed under
14        this Act, the amount exempted shall be the interest net
15        of bond premium amortization;
16            (K) An amount equal to those dividends included in
17        such total which were paid by a corporation which
18        conducts business operations in a River Edge
19        Redevelopment Zone or zones created under the River
20        Edge Redevelopment Zone Act and conducts substantially
21        all of its operations in a River Edge Redevelopment
22        Zone or zones. This subparagraph (K) is exempt from the
23        provisions of Section 250;
24            (L) An amount equal to those dividends included in
25        such total that were paid by a corporation that
26        conducts business operations in a federally designated

 

 

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1        Foreign Trade Zone or Sub-Zone and that is designated a
2        High Impact Business located in Illinois; provided
3        that dividends eligible for the deduction provided in
4        subparagraph (K) of paragraph 2 of this subsection
5        shall not be eligible for the deduction provided under
6        this subparagraph (L);
7            (M) For any taxpayer that is a financial
8        organization within the meaning of Section 304(c) of
9        this Act, an amount included in such total as interest
10        income from a loan or loans made by such taxpayer to a
11        borrower, to the extent that such a loan is secured by
12        property which is eligible for the River Edge
13        Redevelopment Zone Investment Credit. To determine the
14        portion of a loan or loans that is secured by property
15        eligible for a Section 201(f) investment credit to the
16        borrower, the entire principal amount of the loan or
17        loans between the taxpayer and the borrower should be
18        divided into the basis of the Section 201(f) investment
19        credit property which secures the loan or loans, using
20        for this purpose the original basis of such property on
21        the date that it was placed in service in the River
22        Edge Redevelopment Zone. The subtraction modification
23        available to the taxpayer in any year under this
24        subsection shall be that portion of the total interest
25        paid by the borrower with respect to such loan
26        attributable to the eligible property as calculated

 

 

HB0321- 307 -LRB101 04001 HLH 49009 b

1        under the previous sentence. This subparagraph (M) is
2        exempt from the provisions of Section 250;
3            (M-1) For any taxpayer that is a financial
4        organization within the meaning of Section 304(c) of
5        this Act, an amount included in such total as interest
6        income from a loan or loans made by such taxpayer to a
7        borrower, to the extent that such a loan is secured by
8        property which is eligible for the High Impact Business
9        Investment Credit. To determine the portion of a loan
10        or loans that is secured by property eligible for a
11        Section 201(h) investment credit to the borrower, the
12        entire principal amount of the loan or loans between
13        the taxpayer and the borrower should be divided into
14        the basis of the Section 201(h) investment credit
15        property which secures the loan or loans, using for
16        this purpose the original basis of such property on the
17        date that it was placed in service in a federally
18        designated Foreign Trade Zone or Sub-Zone located in
19        Illinois. No taxpayer that is eligible for the
20        deduction provided in subparagraph (M) of paragraph
21        (2) of this subsection shall be eligible for the
22        deduction provided under this subparagraph (M-1). The
23        subtraction modification available to taxpayers in any
24        year under this subsection shall be that portion of the
25        total interest paid by the borrower with respect to
26        such loan attributable to the eligible property as

 

 

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1        calculated under the previous sentence;
2            (N) Two times any contribution made during the
3        taxable year to a designated zone organization to the
4        extent that the contribution (i) qualifies as a
5        charitable contribution under subsection (c) of
6        Section 170 of the Internal Revenue Code and (ii) must,
7        by its terms, be used for a project approved by the
8        Department of Commerce and Economic Opportunity under
9        Section 11 of the Illinois Enterprise Zone Act or under
10        Section 10-10 of the River Edge Redevelopment Zone Act.
11        This subparagraph (N) is exempt from the provisions of
12        Section 250;
13            (O) An amount equal to: (i) 85% for taxable years
14        ending on or before December 31, 1992, or, a percentage
15        equal to the percentage allowable under Section
16        243(a)(1) of the Internal Revenue Code of 1986 for
17        taxable years ending after December 31, 1992, of the
18        amount by which dividends included in taxable income
19        and received from a corporation that is not created or
20        organized under the laws of the United States or any
21        state or political subdivision thereof, including, for
22        taxable years ending on or after December 31, 1988,
23        dividends received or deemed received or paid or deemed
24        paid under Sections 951 through 965 of the Internal
25        Revenue Code, exceed the amount of the modification
26        provided under subparagraph (G) of paragraph (2) of

 

 

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1        this subsection (b) which is related to such dividends,
2        and including, for taxable years ending on or after
3        December 31, 2008, dividends received from a captive
4        real estate investment trust; plus (ii) 100% of the
5        amount by which dividends, included in taxable income
6        and received, including, for taxable years ending on or
7        after December 31, 1988, dividends received or deemed
8        received or paid or deemed paid under Sections 951
9        through 964 of the Internal Revenue Code and including,
10        for taxable years ending on or after December 31, 2008,
11        dividends received from a captive real estate
12        investment trust, from any such corporation specified
13        in clause (i) that would but for the provisions of
14        Section 1504(b)(3) of the Internal Revenue Code be
15        treated as a member of the affiliated group which
16        includes the dividend recipient, exceed the amount of
17        the modification provided under subparagraph (G) of
18        paragraph (2) of this subsection (b) which is related
19        to such dividends. This subparagraph (O) is exempt from
20        the provisions of Section 250 of this Act;
21            (P) An amount equal to any contribution made to a
22        job training project established pursuant to the Tax
23        Increment Allocation Redevelopment Act;
24            (Q) An amount equal to the amount of the deduction
25        used to compute the federal income tax credit for
26        restoration of substantial amounts held under claim of

 

 

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1        right for the taxable year pursuant to Section 1341 of
2        the Internal Revenue Code;
3            (R) On and after July 20, 1999, in the case of an
4        attorney-in-fact with respect to whom an interinsurer
5        or a reciprocal insurer has made the election under
6        Section 835 of the Internal Revenue Code, 26 U.S.C.
7        835, an amount equal to the excess, if any, of the
8        amounts paid or incurred by that interinsurer or
9        reciprocal insurer in the taxable year to the
10        attorney-in-fact over the deduction allowed to that
11        interinsurer or reciprocal insurer with respect to the
12        attorney-in-fact under Section 835(b) of the Internal
13        Revenue Code for the taxable year; the provisions of
14        this subparagraph are exempt from the provisions of
15        Section 250;
16            (S) For taxable years ending on or after December
17        31, 1997, in the case of a Subchapter S corporation, an
18        amount equal to all amounts of income allocable to a
19        shareholder subject to the Personal Property Tax
20        Replacement Income Tax imposed by subsections (c) and
21        (d) of Section 201 of this Act, including amounts
22        allocable to organizations exempt from federal income
23        tax by reason of Section 501(a) of the Internal Revenue
24        Code. This subparagraph (S) is exempt from the
25        provisions of Section 250;
26            (T) For taxable years 2001 and thereafter, for the

 

 

HB0321- 311 -LRB101 04001 HLH 49009 b

1        taxable year in which the bonus depreciation deduction
2        is taken on the taxpayer's federal income tax return
3        under subsection (k) of Section 168 of the Internal
4        Revenue Code and for each applicable taxable year
5        thereafter, an amount equal to "x", where:
6                (1) "y" equals the amount of the depreciation
7            deduction taken for the taxable year on the
8            taxpayer's federal income tax return on property
9            for which the bonus depreciation deduction was
10            taken in any year under subsection (k) of Section
11            168 of the Internal Revenue Code, but not including
12            the bonus depreciation deduction;
13                (2) for taxable years ending on or before
14            December 31, 2005, "x" equals "y" multiplied by 30
15            and then divided by 70 (or "y" multiplied by
16            0.429); and
17                (3) for taxable years ending after December
18            31, 2005:
19                    (i) for property on which a bonus
20                depreciation deduction of 30% of the adjusted
21                basis was taken, "x" equals "y" multiplied by
22                30 and then divided by 70 (or "y" multiplied by
23                0.429); and
24                    (ii) for property on which a bonus
25                depreciation deduction of 50% of the adjusted
26                basis was taken, "x" equals "y" multiplied by

 

 

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1                1.0.
2            The aggregate amount deducted under this
3        subparagraph in all taxable years for any one piece of
4        property may not exceed the amount of the bonus
5        depreciation deduction taken on that property on the
6        taxpayer's federal income tax return under subsection
7        (k) of Section 168 of the Internal Revenue Code. This
8        subparagraph (T) is exempt from the provisions of
9        Section 250;
10            (U) If the taxpayer sells, transfers, abandons, or
11        otherwise disposes of property for which the taxpayer
12        was required in any taxable year to make an addition
13        modification under subparagraph (E-10), then an amount
14        equal to that addition modification.
15            If the taxpayer continues to own property through
16        the last day of the last tax year for which the
17        taxpayer may claim a depreciation deduction for
18        federal income tax purposes and for which the taxpayer
19        was required in any taxable year to make an addition
20        modification under subparagraph (E-10), then an amount
21        equal to that addition modification.
22            The taxpayer is allowed to take the deduction under
23        this subparagraph only once with respect to any one
24        piece of property.
25            This subparagraph (U) is exempt from the
26        provisions of Section 250;

 

 

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1            (V) The amount of: (i) any interest income (net of
2        the deductions allocable thereto) taken into account
3        for the taxable year with respect to a transaction with
4        a taxpayer that is required to make an addition
5        modification with respect to such transaction under
6        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
7        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
8        the amount of such addition modification, (ii) any
9        income from intangible property (net of the deductions
10        allocable thereto) taken into account for the taxable
11        year with respect to a transaction with a taxpayer that
12        is required to make an addition modification with
13        respect to such transaction under Section
14        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
15        203(d)(2)(D-8), but not to exceed the amount of such
16        addition modification, and (iii) any insurance premium
17        income (net of deductions allocable thereto) taken
18        into account for the taxable year with respect to a
19        transaction with a taxpayer that is required to make an
20        addition modification with respect to such transaction
21        under Section 203(a)(2)(D-19), Section
22        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
23        203(d)(2)(D-9), but not to exceed the amount of that
24        addition modification. This subparagraph (V) is exempt
25        from the provisions of Section 250;
26            (W) An amount equal to the interest income taken

 

 

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1        into account for the taxable year (net of the
2        deductions allocable thereto) with respect to
3        transactions with (i) a foreign person who would be a
4        member of the taxpayer's unitary business group but for
5        the fact that the foreign person's business activity
6        outside the United States is 80% or more of that
7        person's total business activity and (ii) for taxable
8        years ending on or after December 31, 2008, to a person
9        who would be a member of the same unitary business
10        group but for the fact that the person is prohibited
11        under Section 1501(a)(27) from being included in the
12        unitary business group because he or she is ordinarily
13        required to apportion business income under different
14        subsections of Section 304, but not to exceed the
15        addition modification required to be made for the same
16        taxable year under Section 203(b)(2)(E-12) for
17        interest paid, accrued, or incurred, directly or
18        indirectly, to the same person. This subparagraph (W)
19        is exempt from the provisions of Section 250;
20            (X) An amount equal to the income from intangible
21        property taken into account for the taxable year (net
22        of the deductions allocable thereto) with respect to
23        transactions with (i) a foreign person who would be a
24        member of the taxpayer's unitary business group but for
25        the fact that the foreign person's business activity
26        outside the United States is 80% or more of that

 

 

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1        person's total business activity and (ii) for taxable
2        years ending on or after December 31, 2008, to a person
3        who would be a member of the same unitary business
4        group but for the fact that the person is prohibited
5        under Section 1501(a)(27) from being included in the
6        unitary business group because he or she is ordinarily
7        required to apportion business income under different
8        subsections of Section 304, but not to exceed the
9        addition modification required to be made for the same
10        taxable year under Section 203(b)(2)(E-13) for
11        intangible expenses and costs paid, accrued, or
12        incurred, directly or indirectly, to the same foreign
13        person. This subparagraph (X) is exempt from the
14        provisions of Section 250;
15            (Y) For taxable years ending on or after December
16        31, 2011, in the case of a taxpayer who was required to
17        add back any insurance premiums under Section
18        203(b)(2)(E-14), such taxpayer may elect to subtract
19        that part of a reimbursement received from the
20        insurance company equal to the amount of the expense or
21        loss (including expenses incurred by the insurance
22        company) that would have been taken into account as a
23        deduction for federal income tax purposes if the
24        expense or loss had been uninsured. If a taxpayer makes
25        the election provided for by this subparagraph (Y), the
26        insurer to which the premiums were paid must add back

 

 

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1        to income the amount subtracted by the taxpayer
2        pursuant to this subparagraph (Y). This subparagraph
3        (Y) is exempt from the provisions of Section 250; and
4            (Z) The difference between the nondeductible
5        controlled foreign corporation dividends under Section
6        965(e)(3) of the Internal Revenue Code over the taxable
7        income of the taxpayer, computed without regard to
8        Section 965(e)(2)(A) of the Internal Revenue Code, and
9        without regard to any net operating loss deduction.
10        This subparagraph (Z) is exempt from the provisions of
11        Section 250.
12        (3) Special rule. For purposes of paragraph (2)(A),
13    "gross income" in the case of a life insurance company, for
14    tax years ending on and after December 31, 1994, and prior
15    to December 31, 2011, shall mean the gross investment
16    income for the taxable year and, for tax years ending on or
17    after December 31, 2011, shall mean all amounts included in
18    life insurance gross income under Section 803(a)(3) of the
19    Internal Revenue Code.
 
20    (c) Trusts and estates.
21        (1) In general. In the case of a trust or estate, base
22    income means an amount equal to the taxpayer's taxable
23    income for the taxable year as modified by paragraph (2).
24        (2) Modifications. Subject to the provisions of
25    paragraph (3), the taxable income referred to in paragraph

 

 

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1    (1) shall be modified by adding thereto the sum of the
2    following amounts:
3            (A) An amount equal to all amounts paid or accrued
4        to the taxpayer as interest or dividends during the
5        taxable year to the extent excluded from gross income
6        in the computation of taxable income;
7            (B) In the case of (i) an estate, $600; (ii) a
8        trust which, under its governing instrument, is
9        required to distribute all of its income currently,
10        $300; and (iii) any other trust, $100, but in each such
11        case, only to the extent such amount was deducted in
12        the computation of taxable income;
13            (C) An amount equal to the amount of tax imposed by
14        this Act to the extent deducted from gross income in
15        the computation of taxable income for the taxable year;
16            (D) The amount of any net operating loss deduction
17        taken in arriving at taxable income, other than a net
18        operating loss carried forward from a taxable year
19        ending prior to December 31, 1986;
20            (E) For taxable years in which a net operating loss
21        carryback or carryforward from a taxable year ending
22        prior to December 31, 1986 is an element of taxable
23        income under paragraph (1) of subsection (e) or
24        subparagraph (E) of paragraph (2) of subsection (e),
25        the amount by which addition modifications other than
26        those provided by this subparagraph (E) exceeded

 

 

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1        subtraction modifications in such taxable year, with
2        the following limitations applied in the order that
3        they are listed:
4                (i) the addition modification relating to the
5            net operating loss carried back or forward to the
6            taxable year from any taxable year ending prior to
7            December 31, 1986 shall be reduced by the amount of
8            addition modification under this subparagraph (E)
9            which related to that net operating loss and which
10            was taken into account in calculating the base
11            income of an earlier taxable year, and
12                (ii) the addition modification relating to the
13            net operating loss carried back or forward to the
14            taxable year from any taxable year ending prior to
15            December 31, 1986 shall not exceed the amount of
16            such carryback or carryforward;
17            For taxable years in which there is a net operating
18        loss carryback or carryforward from more than one other
19        taxable year ending prior to December 31, 1986, the
20        addition modification provided in this subparagraph
21        (E) shall be the sum of the amounts computed
22        independently under the preceding provisions of this
23        subparagraph (E) for each such taxable year;
24            (F) For taxable years ending on or after January 1,
25        1989, an amount equal to the tax deducted pursuant to
26        Section 164 of the Internal Revenue Code if the trust

 

 

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1        or estate is claiming the same tax for purposes of the
2        Illinois foreign tax credit under Section 601 of this
3        Act;
4            (G) An amount equal to the amount of the capital
5        gain deduction allowable under the Internal Revenue
6        Code, to the extent deducted from gross income in the
7        computation of taxable income;
8            (G-5) For taxable years ending after December 31,
9        1997, an amount equal to any eligible remediation costs
10        that the trust or estate deducted in computing adjusted
11        gross income and for which the trust or estate claims a
12        credit under subsection (l) of Section 201;
13            (G-10) For taxable years 2001 and thereafter, an
14        amount equal to the bonus depreciation deduction taken
15        on the taxpayer's federal income tax return for the
16        taxable year under subsection (k) of Section 168 of the
17        Internal Revenue Code; and
18            (G-11) If the taxpayer sells, transfers, abandons,
19        or otherwise disposes of property for which the
20        taxpayer was required in any taxable year to make an
21        addition modification under subparagraph (G-10), then
22        an amount equal to the aggregate amount of the
23        deductions taken in all taxable years under
24        subparagraph (R) with respect to that property.
25            If the taxpayer continues to own property through
26        the last day of the last tax year for which the

 

 

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1        taxpayer may claim a depreciation deduction for
2        federal income tax purposes and for which the taxpayer
3        was allowed in any taxable year to make a subtraction
4        modification under subparagraph (R), then an amount
5        equal to that subtraction modification.
6            The taxpayer is required to make the addition
7        modification under this subparagraph only once with
8        respect to any one piece of property;
9            (G-12) An amount equal to the amount otherwise
10        allowed as a deduction in computing base income for
11        interest paid, accrued, or incurred, directly or
12        indirectly, (i) for taxable years ending on or after
13        December 31, 2004, to a foreign person who would be a
14        member of the same unitary business group but for the
15        fact that the foreign person's business activity
16        outside the United States is 80% or more of the foreign
17        person's total business activity and (ii) for taxable
18        years ending on or after December 31, 2008, to a person
19        who would be a member of the same unitary business
20        group but for the fact that the person is prohibited
21        under Section 1501(a)(27) from being included in the
22        unitary business group because he or she is ordinarily
23        required to apportion business income under different
24        subsections of Section 304. The addition modification
25        required by this subparagraph shall be reduced to the
26        extent that dividends were included in base income of

 

 

HB0321- 321 -LRB101 04001 HLH 49009 b

1        the unitary group for the same taxable year and
2        received by the taxpayer or by a member of the
3        taxpayer's unitary business group (including amounts
4        included in gross income pursuant to Sections 951
5        through 964 of the Internal Revenue Code and amounts
6        included in gross income under Section 78 of the
7        Internal Revenue Code) with respect to the stock of the
8        same person to whom the interest was paid, accrued, or
9        incurred.
10            This paragraph shall not apply to the following:
11                (i) an item of interest paid, accrued, or
12            incurred, directly or indirectly, to a person who
13            is subject in a foreign country or state, other
14            than a state which requires mandatory unitary
15            reporting, to a tax on or measured by net income
16            with respect to such interest; or
17                (ii) an item of interest paid, accrued, or
18            incurred, directly or indirectly, to a person if
19            the taxpayer can establish, based on a
20            preponderance of the evidence, both of the
21            following:
22                    (a) the person, during the same taxable
23                year, paid, accrued, or incurred, the interest
24                to a person that is not a related member, and
25                    (b) the transaction giving rise to the
26                interest expense between the taxpayer and the

 

 

HB0321- 322 -LRB101 04001 HLH 49009 b

1                person did not have as a principal purpose the
2                avoidance of Illinois income tax, and is paid
3                pursuant to a contract or agreement that
4                reflects an arm's-length interest rate and
5                terms; or
6                (iii) the taxpayer can establish, based on
7            clear and convincing evidence, that the interest
8            paid, accrued, or incurred relates to a contract or
9            agreement entered into at arm's-length rates and
10            terms and the principal purpose for the payment is
11            not federal or Illinois tax avoidance; or
12                (iv) an item of interest paid, accrued, or
13            incurred, directly or indirectly, to a person if
14            the taxpayer establishes by clear and convincing
15            evidence that the adjustments are unreasonable; or
16            if the taxpayer and the Director agree in writing
17            to the application or use of an alternative method
18            of apportionment under Section 304(f).
19                Nothing in this subsection shall preclude the
20            Director from making any other adjustment
21            otherwise allowed under Section 404 of this Act for
22            any tax year beginning after the effective date of
23            this amendment provided such adjustment is made
24            pursuant to regulation adopted by the Department
25            and such regulations provide methods and standards
26            by which the Department will utilize its authority

 

 

HB0321- 323 -LRB101 04001 HLH 49009 b

1            under Section 404 of this Act;
2            (G-13) An amount equal to the amount of intangible
3        expenses and costs otherwise allowed as a deduction in
4        computing base income, and that were paid, accrued, or
5        incurred, directly or indirectly, (i) for taxable
6        years ending on or after December 31, 2004, to a
7        foreign person who would be a member of the same
8        unitary business group but for the fact that the
9        foreign person's business activity outside the United
10        States is 80% or more of that person's total business
11        activity and (ii) for taxable years ending on or after
12        December 31, 2008, to a person who would be a member of
13        the same unitary business group but for the fact that
14        the person is prohibited under Section 1501(a)(27)
15        from being included in the unitary business group
16        because he or she is ordinarily required to apportion
17        business income under different subsections of Section
18        304. The addition modification required by this
19        subparagraph shall be reduced to the extent that
20        dividends were included in base income of the unitary
21        group for the same taxable year and received by the
22        taxpayer or by a member of the taxpayer's unitary
23        business group (including amounts included in gross
24        income pursuant to Sections 951 through 964 of the
25        Internal Revenue Code and amounts included in gross
26        income under Section 78 of the Internal Revenue Code)

 

 

HB0321- 324 -LRB101 04001 HLH 49009 b

1        with respect to the stock of the same person to whom
2        the intangible expenses and costs were directly or
3        indirectly paid, incurred, or accrued. The preceding
4        sentence shall not apply to the extent that the same
5        dividends caused a reduction to the addition
6        modification required under Section 203(c)(2)(G-12) of
7        this Act. As used in this subparagraph, the term
8        "intangible expenses and costs" includes: (1)
9        expenses, losses, and costs for or related to the
10        direct or indirect acquisition, use, maintenance or
11        management, ownership, sale, exchange, or any other
12        disposition of intangible property; (2) losses
13        incurred, directly or indirectly, from factoring
14        transactions or discounting transactions; (3) royalty,
15        patent, technical, and copyright fees; (4) licensing
16        fees; and (5) other similar expenses and costs. For
17        purposes of this subparagraph, "intangible property"
18        includes patents, patent applications, trade names,
19        trademarks, service marks, copyrights, mask works,
20        trade secrets, and similar types of intangible assets.
21            This paragraph shall not apply to the following:
22                (i) any item of intangible expenses or costs
23            paid, accrued, or incurred, directly or
24            indirectly, from a transaction with a person who is
25            subject in a foreign country or state, other than a
26            state which requires mandatory unitary reporting,

 

 

HB0321- 325 -LRB101 04001 HLH 49009 b

1            to a tax on or measured by net income with respect
2            to such item; or
3                (ii) any item of intangible expense or cost
4            paid, accrued, or incurred, directly or
5            indirectly, if the taxpayer can establish, based
6            on a preponderance of the evidence, both of the
7            following:
8                    (a) the person during the same taxable
9                year paid, accrued, or incurred, the
10                intangible expense or cost to a person that is
11                not a related member, and
12                    (b) the transaction giving rise to the
13                intangible expense or cost between the
14                taxpayer and the person did not have as a
15                principal purpose the avoidance of Illinois
16                income tax, and is paid pursuant to a contract
17                or agreement that reflects arm's-length terms;
18                or
19                (iii) any item of intangible expense or cost
20            paid, accrued, or incurred, directly or
21            indirectly, from a transaction with a person if the
22            taxpayer establishes by clear and convincing
23            evidence, that the adjustments are unreasonable;
24            or if the taxpayer and the Director agree in
25            writing to the application or use of an alternative
26            method of apportionment under Section 304(f);

 

 

HB0321- 326 -LRB101 04001 HLH 49009 b

1                Nothing in this subsection shall preclude the
2            Director from making any other adjustment
3            otherwise allowed under Section 404 of this Act for
4            any tax year beginning after the effective date of
5            this amendment provided such adjustment is made
6            pursuant to regulation adopted by the Department
7            and such regulations provide methods and standards
8            by which the Department will utilize its authority
9            under Section 404 of this Act;
10            (G-14) For taxable years ending on or after
11        December 31, 2008, an amount equal to the amount of
12        insurance premium expenses and costs otherwise allowed
13        as a deduction in computing base income, and that were
14        paid, accrued, or incurred, directly or indirectly, to
15        a person who would be a member of the same unitary
16        business group but for the fact that the person is
17        prohibited under Section 1501(a)(27) from being
18        included in the unitary business group because he or
19        she is ordinarily required to apportion business
20        income under different subsections of Section 304. The
21        addition modification required by this subparagraph
22        shall be reduced to the extent that dividends were
23        included in base income of the unitary group for the
24        same taxable year and received by the taxpayer or by a
25        member of the taxpayer's unitary business group
26        (including amounts included in gross income under

 

 

HB0321- 327 -LRB101 04001 HLH 49009 b

1        Sections 951 through 964 of the Internal Revenue Code
2        and amounts included in gross income under Section 78
3        of the Internal Revenue Code) with respect to the stock
4        of the same person to whom the premiums and costs were
5        directly or indirectly paid, incurred, or accrued. The
6        preceding sentence does not apply to the extent that
7        the same dividends caused a reduction to the addition
8        modification required under Section 203(c)(2)(G-12) or
9        Section 203(c)(2)(G-13) of this Act;
10            (G-15) An amount equal to the credit allowable to
11        the taxpayer under Section 218(a) of this Act,
12        determined without regard to Section 218(c) of this
13        Act;
14            (G-16) For taxable years ending on or after
15        December 31, 2017 and ending on or before December 31,
16        2018, an amount equal to the deduction allowed under
17        Section 199 of the Internal Revenue Code for the
18        taxable year;
19    and by deducting from the total so obtained the sum of the
20    following amounts:
21            (H) An amount equal to all amounts included in such
22        total pursuant to the provisions of Sections 402(a),
23        402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
24        Internal Revenue Code or included in such total as
25        distributions under the provisions of any retirement
26        or disability plan for employees of any governmental

 

 

HB0321- 328 -LRB101 04001 HLH 49009 b

1        agency or unit, or retirement payments to retired
2        partners, which payments are excluded in computing net
3        earnings from self employment by Section 1402 of the
4        Internal Revenue Code and regulations adopted pursuant
5        thereto;
6            (I) The valuation limitation amount;
7            (J) An amount equal to the amount of any tax
8        imposed by this Act which was refunded to the taxpayer
9        and included in such total for the taxable year;
10            (K) An amount equal to all amounts included in
11        taxable income as modified by subparagraphs (A), (B),
12        (C), (D), (E), (F) and (G) which are exempt from
13        taxation by this State either by reason of its statutes
14        or Constitution or by reason of the Constitution,
15        treaties or statutes of the United States; provided
16        that, in the case of any statute of this State that
17        exempts income derived from bonds or other obligations
18        from the tax imposed under this Act, the amount
19        exempted shall be the interest net of bond premium
20        amortization;
21            (L) With the exception of any amounts subtracted
22        under subparagraph (K), an amount equal to the sum of
23        all amounts disallowed as deductions by (i) Sections
24        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
25        and all amounts of expenses allocable to interest and
26        disallowed as deductions by Section 265(a)(1) 265(1)

 

 

HB0321- 329 -LRB101 04001 HLH 49009 b

1        of the Internal Revenue Code; and (ii) for taxable
2        years ending on or after August 13, 1999, Sections
3        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
4        Internal Revenue Code, plus, (iii) for taxable years
5        ending on or after December 31, 2011, Section 45G(e)(3)
6        of the Internal Revenue Code and, for taxable years
7        ending on or after December 31, 2008, any amount
8        included in gross income under Section 87 of the
9        Internal Revenue Code; the provisions of this
10        subparagraph are exempt from the provisions of Section
11        250;
12            (M) An amount equal to those dividends included in
13        such total which were paid by a corporation which
14        conducts business operations in a River Edge
15        Redevelopment Zone or zones created under the River
16        Edge Redevelopment Zone Act and conducts substantially
17        all of its operations in a River Edge Redevelopment
18        Zone or zones. This subparagraph (M) is exempt from the
19        provisions of Section 250;
20            (N) An amount equal to any contribution made to a
21        job training project established pursuant to the Tax
22        Increment Allocation Redevelopment Act;
23            (O) An amount equal to those dividends included in
24        such total that were paid by a corporation that
25        conducts business operations in a federally designated
26        Foreign Trade Zone or Sub-Zone and that is designated a

 

 

HB0321- 330 -LRB101 04001 HLH 49009 b

1        High Impact Business located in Illinois; provided
2        that dividends eligible for the deduction provided in
3        subparagraph (M) of paragraph (2) of this subsection
4        shall not be eligible for the deduction provided under
5        this subparagraph (O);
6            (P) An amount equal to the amount of the deduction
7        used to compute the federal income tax credit for
8        restoration of substantial amounts held under claim of
9        right for the taxable year pursuant to Section 1341 of
10        the Internal Revenue Code;
11            (Q) For taxable year 1999 and thereafter, an amount
12        equal to the amount of any (i) distributions, to the
13        extent includible in gross income for federal income
14        tax purposes, made to the taxpayer because of his or
15        her status as a victim of persecution for racial or
16        religious reasons by Nazi Germany or any other Axis
17        regime or as an heir of the victim and (ii) items of
18        income, to the extent includible in gross income for
19        federal income tax purposes, attributable to, derived
20        from or in any way related to assets stolen from,
21        hidden from, or otherwise lost to a victim of
22        persecution for racial or religious reasons by Nazi
23        Germany or any other Axis regime immediately prior to,
24        during, and immediately after World War II, including,
25        but not limited to, interest on the proceeds receivable
26        as insurance under policies issued to a victim of

 

 

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1        persecution for racial or religious reasons by Nazi
2        Germany or any other Axis regime by European insurance
3        companies immediately prior to and during World War II;
4        provided, however, this subtraction from federal
5        adjusted gross income does not apply to assets acquired
6        with such assets or with the proceeds from the sale of
7        such assets; provided, further, this paragraph shall
8        only apply to a taxpayer who was the first recipient of
9        such assets after their recovery and who is a victim of
10        persecution for racial or religious reasons by Nazi
11        Germany or any other Axis regime or as an heir of the
12        victim. The amount of and the eligibility for any
13        public assistance, benefit, or similar entitlement is
14        not affected by the inclusion of items (i) and (ii) of
15        this paragraph in gross income for federal income tax
16        purposes. This paragraph is exempt from the provisions
17        of Section 250;
18            (R) For taxable years 2001 and thereafter, for the
19        taxable year in which the bonus depreciation deduction
20        is taken on the taxpayer's federal income tax return
21        under subsection (k) of Section 168 of the Internal
22        Revenue Code and for each applicable taxable year
23        thereafter, an amount equal to "x", where:
24                (1) "y" equals the amount of the depreciation
25            deduction taken for the taxable year on the
26            taxpayer's federal income tax return on property

 

 

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1            for which the bonus depreciation deduction was
2            taken in any year under subsection (k) of Section
3            168 of the Internal Revenue Code, but not including
4            the bonus depreciation deduction;
5                (2) for taxable years ending on or before
6            December 31, 2005, "x" equals "y" multiplied by 30
7            and then divided by 70 (or "y" multiplied by
8            0.429); and
9                (3) for taxable years ending after December
10            31, 2005:
11                    (i) for property on which a bonus
12                depreciation deduction of 30% of the adjusted
13                basis was taken, "x" equals "y" multiplied by
14                30 and then divided by 70 (or "y" multiplied by
15                0.429); and
16                    (ii) for property on which a bonus
17                depreciation deduction of 50% of the adjusted
18                basis was taken, "x" equals "y" multiplied by
19                1.0.
20            The aggregate amount deducted under this
21        subparagraph in all taxable years for any one piece of
22        property may not exceed the amount of the bonus
23        depreciation deduction taken on that property on the
24        taxpayer's federal income tax return under subsection
25        (k) of Section 168 of the Internal Revenue Code. This
26        subparagraph (R) is exempt from the provisions of

 

 

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1        Section 250;
2            (S) If the taxpayer sells, transfers, abandons, or
3        otherwise disposes of property for which the taxpayer
4        was required in any taxable year to make an addition
5        modification under subparagraph (G-10), then an amount
6        equal to that addition modification.
7            If the taxpayer continues to own property through
8        the last day of the last tax year for which the
9        taxpayer may claim a depreciation deduction for
10        federal income tax purposes and for which the taxpayer
11        was required in any taxable year to make an addition
12        modification under subparagraph (G-10), then an amount
13        equal to that addition modification.
14            The taxpayer is allowed to take the deduction under
15        this subparagraph only once with respect to any one
16        piece of property.
17            This subparagraph (S) is exempt from the
18        provisions of Section 250;
19            (T) The amount of (i) any interest income (net of
20        the deductions allocable thereto) taken into account
21        for the taxable year with respect to a transaction with
22        a taxpayer that is required to make an addition
23        modification with respect to such transaction under
24        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
25        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
26        the amount of such addition modification and (ii) any

 

 

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1        income from intangible property (net of the deductions
2        allocable thereto) taken into account for the taxable
3        year with respect to a transaction with a taxpayer that
4        is required to make an addition modification with
5        respect to such transaction under Section
6        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
7        203(d)(2)(D-8), but not to exceed the amount of such
8        addition modification. This subparagraph (T) is exempt
9        from the provisions of Section 250;
10            (U) An amount equal to the interest income taken
11        into account for the taxable year (net of the
12        deductions allocable thereto) with respect to
13        transactions with (i) a foreign person who would be a
14        member of the taxpayer's unitary business group but for
15        the fact the foreign person's business activity
16        outside the United States is 80% or more of that
17        person's total business activity and (ii) for taxable
18        years ending on or after December 31, 2008, to a person
19        who would be a member of the same unitary business
20        group but for the fact that the person is prohibited
21        under Section 1501(a)(27) from being included in the
22        unitary business group because he or she is ordinarily
23        required to apportion business income under different
24        subsections of Section 304, but not to exceed the
25        addition modification required to be made for the same
26        taxable year under Section 203(c)(2)(G-12) for

 

 

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1        interest paid, accrued, or incurred, directly or
2        indirectly, to the same person. This subparagraph (U)
3        is exempt from the provisions of Section 250;
4            (V) An amount equal to the income from intangible
5        property taken into account for the taxable year (net
6        of the deductions allocable thereto) with respect to
7        transactions with (i) a foreign person who would be a
8        member of the taxpayer's unitary business group but for
9        the fact that the foreign person's business activity
10        outside the United States is 80% or more of that
11        person's total business activity and (ii) for taxable
12        years ending on or after December 31, 2008, to a person
13        who would be a member of the same unitary business
14        group but for the fact that the person is prohibited
15        under Section 1501(a)(27) from being included in the
16        unitary business group because he or she is ordinarily
17        required to apportion business income under different
18        subsections of Section 304, but not to exceed the
19        addition modification required to be made for the same
20        taxable year under Section 203(c)(2)(G-13) for
21        intangible expenses and costs paid, accrued, or
22        incurred, directly or indirectly, to the same foreign
23        person. This subparagraph (V) is exempt from the
24        provisions of Section 250;
25            (W) in the case of an estate, an amount equal to
26        all amounts included in such total pursuant to the

 

 

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1        provisions of Section 111 of the Internal Revenue Code
2        as a recovery of items previously deducted by the
3        decedent from adjusted gross income in the computation
4        of taxable income. This subparagraph (W) is exempt from
5        Section 250;
6            (X) an amount equal to the refund included in such
7        total of any tax deducted for federal income tax
8        purposes, to the extent that deduction was added back
9        under subparagraph (F). This subparagraph (X) is
10        exempt from the provisions of Section 250; and
11            (Y) For taxable years ending on or after December
12        31, 2011, in the case of a taxpayer who was required to
13        add back any insurance premiums under Section
14        203(c)(2)(G-14), such taxpayer may elect to subtract
15        that part of a reimbursement received from the
16        insurance company equal to the amount of the expense or
17        loss (including expenses incurred by the insurance
18        company) that would have been taken into account as a
19        deduction for federal income tax purposes if the
20        expense or loss had been uninsured. If a taxpayer makes
21        the election provided for by this subparagraph (Y), the
22        insurer to which the premiums were paid must add back
23        to income the amount subtracted by the taxpayer
24        pursuant to this subparagraph (Y). This subparagraph
25        (Y) is exempt from the provisions of Section 250.
26        (3) Limitation. The amount of any modification

 

 

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1    otherwise required under this subsection shall, under
2    regulations prescribed by the Department, be adjusted by
3    any amounts included therein which were properly paid,
4    credited, or required to be distributed, or permanently set
5    aside for charitable purposes pursuant to Internal Revenue
6    Code Section 642(c) during the taxable year.
 
7    (d) Partnerships.
8        (1) In general. In the case of a partnership, base
9    income means an amount equal to the taxpayer's taxable
10    income for the taxable year as modified by paragraph (2).
11        (2) Modifications. The taxable income referred to in
12    paragraph (1) shall be modified by adding thereto the sum
13    of the following amounts:
14            (A) An amount equal to all amounts paid or accrued
15        to the taxpayer as interest or dividends during the
16        taxable year to the extent excluded from gross income
17        in the computation of taxable income;
18            (B) An amount equal to the amount of tax imposed by
19        this Act to the extent deducted from gross income for
20        the taxable year;
21            (C) The amount of deductions allowed to the
22        partnership pursuant to Section 707 (c) of the Internal
23        Revenue Code in calculating its taxable income;
24            (D) An amount equal to the amount of the capital
25        gain deduction allowable under the Internal Revenue

 

 

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1        Code, to the extent deducted from gross income in the
2        computation of taxable income;
3            (D-5) For taxable years 2001 and thereafter, an
4        amount equal to the bonus depreciation deduction taken
5        on the taxpayer's federal income tax return for the
6        taxable year under subsection (k) of Section 168 of the
7        Internal Revenue Code;
8            (D-6) If the taxpayer sells, transfers, abandons,
9        or otherwise disposes of property for which the
10        taxpayer was required in any taxable year to make an
11        addition modification under subparagraph (D-5), then
12        an amount equal to the aggregate amount of the
13        deductions taken in all taxable years under
14        subparagraph (O) with respect to that property.
15            If the taxpayer continues to own property through
16        the last day of the last tax year for which the
17        taxpayer may claim a depreciation deduction for
18        federal income tax purposes and for which the taxpayer
19        was allowed in any taxable year to make a subtraction
20        modification under subparagraph (O), then an amount
21        equal to that subtraction modification.
22            The taxpayer is required to make the addition
23        modification under this subparagraph only once with
24        respect to any one piece of property;
25            (D-7) An amount equal to the amount otherwise
26        allowed as a deduction in computing base income for

 

 

HB0321- 339 -LRB101 04001 HLH 49009 b

1        interest paid, accrued, or incurred, directly or
2        indirectly, (i) for taxable years ending on or after
3        December 31, 2004, to a foreign person who would be a
4        member of the same unitary business group but for the
5        fact the foreign person's business activity outside
6        the United States is 80% or more of the foreign
7        person's total business activity and (ii) for taxable
8        years ending on or after December 31, 2008, to a person
9        who would be a member of the same unitary business
10        group but for the fact that the person is prohibited
11        under Section 1501(a)(27) from being included in the
12        unitary business group because he or she is ordinarily
13        required to apportion business income under different
14        subsections of Section 304. The addition modification
15        required by this subparagraph shall be reduced to the
16        extent that dividends were included in base income of
17        the unitary group for the same taxable year and
18        received by the taxpayer or by a member of the
19        taxpayer's unitary business group (including amounts
20        included in gross income pursuant to Sections 951
21        through 964 of the Internal Revenue Code and amounts
22        included in gross income under Section 78 of the
23        Internal Revenue Code) with respect to the stock of the
24        same person to whom the interest was paid, accrued, or
25        incurred.
26            This paragraph shall not apply to the following:

 

 

HB0321- 340 -LRB101 04001 HLH 49009 b

1                (i) an item of interest paid, accrued, or
2            incurred, directly or indirectly, to a person who
3            is subject in a foreign country or state, other
4            than a state which requires mandatory unitary
5            reporting, to a tax on or measured by net income
6            with respect to such interest; or
7                (ii) an item of interest paid, accrued, or
8            incurred, directly or indirectly, to a person if
9            the taxpayer can establish, based on a
10            preponderance of the evidence, both of the
11            following:
12                    (a) the person, during the same taxable
13                year, paid, accrued, or incurred, the interest
14                to a person that is not a related member, and
15                    (b) the transaction giving rise to the
16                interest expense between the taxpayer and the
17                person did not have as a principal purpose the
18                avoidance of Illinois income tax, and is paid
19                pursuant to a contract or agreement that
20                reflects an arm's-length interest rate and
21                terms; or
22                (iii) the taxpayer can establish, based on
23            clear and convincing evidence, that the interest
24            paid, accrued, or incurred relates to a contract or
25            agreement entered into at arm's-length rates and
26            terms and the principal purpose for the payment is

 

 

HB0321- 341 -LRB101 04001 HLH 49009 b

1            not federal or Illinois tax avoidance; or
2                (iv) an item of interest paid, accrued, or
3            incurred, directly or indirectly, to a person if
4            the taxpayer establishes by clear and convincing
5            evidence that the adjustments are unreasonable; or
6            if the taxpayer and the Director agree in writing
7            to the application or use of an alternative method
8            of apportionment under Section 304(f).
9                Nothing in this subsection shall preclude the
10            Director from making any other adjustment
11            otherwise allowed under Section 404 of this Act for
12            any tax year beginning after the effective date of
13            this amendment provided such adjustment is made
14            pursuant to regulation adopted by the Department
15            and such regulations provide methods and standards
16            by which the Department will utilize its authority
17            under Section 404 of this Act; and
18            (D-8) An amount equal to the amount of intangible
19        expenses and costs otherwise allowed as a deduction in
20        computing base income, and that were paid, accrued, or
21        incurred, directly or indirectly, (i) for taxable
22        years ending on or after December 31, 2004, to a
23        foreign person who would be a member of the same
24        unitary business group but for the fact that the
25        foreign person's business activity outside the United
26        States is 80% or more of that person's total business

 

 

HB0321- 342 -LRB101 04001 HLH 49009 b

1        activity and (ii) for taxable years ending on or after
2        December 31, 2008, to a person who would be a member of
3        the same unitary business group but for the fact that
4        the person is prohibited under Section 1501(a)(27)
5        from being included in the unitary business group
6        because he or she is ordinarily required to apportion
7        business income under different subsections of Section
8        304. The addition modification required by this
9        subparagraph shall be reduced to the extent that
10        dividends were included in base income of the unitary
11        group for the same taxable year and received by the
12        taxpayer or by a member of the taxpayer's unitary
13        business group (including amounts included in gross
14        income pursuant to Sections 951 through 964 of the
15        Internal Revenue Code and amounts included in gross
16        income under Section 78 of the Internal Revenue Code)
17        with respect to the stock of the same person to whom
18        the intangible expenses and costs were directly or
19        indirectly paid, incurred or accrued. The preceding
20        sentence shall not apply to the extent that the same
21        dividends caused a reduction to the addition
22        modification required under Section 203(d)(2)(D-7) of
23        this Act. As used in this subparagraph, the term
24        "intangible expenses and costs" includes (1) expenses,
25        losses, and costs for, or related to, the direct or
26        indirect acquisition, use, maintenance or management,

 

 

HB0321- 343 -LRB101 04001 HLH 49009 b

1        ownership, sale, exchange, or any other disposition of
2        intangible property; (2) losses incurred, directly or
3        indirectly, from factoring transactions or discounting
4        transactions; (3) royalty, patent, technical, and
5        copyright fees; (4) licensing fees; and (5) other
6        similar expenses and costs. For purposes of this
7        subparagraph, "intangible property" includes patents,
8        patent applications, trade names, trademarks, service
9        marks, copyrights, mask works, trade secrets, and
10        similar types of intangible assets;
11            This paragraph shall not apply to the following:
12                (i) any item of intangible expenses or costs
13            paid, accrued, or incurred, directly or
14            indirectly, from a transaction with a person who is
15            subject in a foreign country or state, other than a
16            state which requires mandatory unitary reporting,
17            to a tax on or measured by net income with respect
18            to such item; or
19                (ii) any item of intangible expense or cost
20            paid, accrued, or incurred, directly or
21            indirectly, if the taxpayer can establish, based
22            on a preponderance of the evidence, both of the
23            following:
24                    (a) the person during the same taxable
25                year paid, accrued, or incurred, the
26                intangible expense or cost to a person that is

 

 

HB0321- 344 -LRB101 04001 HLH 49009 b

1                not a related member, and
2                    (b) the transaction giving rise to the
3                intangible expense or cost between the
4                taxpayer and the person did not have as a
5                principal purpose the avoidance of Illinois
6                income tax, and is paid pursuant to a contract
7                or agreement that reflects arm's-length terms;
8                or
9                (iii) any item of intangible expense or cost
10            paid, accrued, or incurred, directly or
11            indirectly, from a transaction with a person if the
12            taxpayer establishes by clear and convincing
13            evidence, that the adjustments are unreasonable;
14            or if the taxpayer and the Director agree in
15            writing to the application or use of an alternative
16            method of apportionment under Section 304(f);
17                Nothing in this subsection shall preclude the
18            Director from making any other adjustment
19            otherwise allowed under Section 404 of this Act for
20            any tax year beginning after the effective date of
21            this amendment provided such adjustment is made
22            pursuant to regulation adopted by the Department
23            and such regulations provide methods and standards
24            by which the Department will utilize its authority
25            under Section 404 of this Act;
26            (D-9) For taxable years ending on or after December

 

 

HB0321- 345 -LRB101 04001 HLH 49009 b

1        31, 2008, an amount equal to the amount of insurance
2        premium expenses and costs otherwise allowed as a
3        deduction in computing base income, and that were paid,
4        accrued, or incurred, directly or indirectly, to a
5        person who would be a member of the same unitary
6        business group but for the fact that the person is
7        prohibited under Section 1501(a)(27) from being
8        included in the unitary business group because he or
9        she is ordinarily required to apportion business
10        income under different subsections of Section 304. The
11        addition modification required by this subparagraph
12        shall be reduced to the extent that dividends were
13        included in base income of the unitary group for the
14        same taxable year and received by the taxpayer or by a
15        member of the taxpayer's unitary business group
16        (including amounts included in gross income under
17        Sections 951 through 964 of the Internal Revenue Code
18        and amounts included in gross income under Section 78
19        of the Internal Revenue Code) with respect to the stock
20        of the same person to whom the premiums and costs were
21        directly or indirectly paid, incurred, or accrued. The
22        preceding sentence does not apply to the extent that
23        the same dividends caused a reduction to the addition
24        modification required under Section 203(d)(2)(D-7) or
25        Section 203(d)(2)(D-8) of this Act;
26            (D-10) An amount equal to the credit allowable to

 

 

HB0321- 346 -LRB101 04001 HLH 49009 b

1        the taxpayer under Section 218(a) of this Act,
2        determined without regard to Section 218(c) of this
3        Act;
4            (D-11) For taxable years ending on or after
5        December 31, 2017 and ending on or before December 31,
6        2018, an amount equal to the deduction allowed under
7        Section 199 of the Internal Revenue Code for the
8        taxable year;
9    and by deducting from the total so obtained the following
10    amounts:
11            (E) The valuation limitation amount;
12            (F) An amount equal to the amount of any tax
13        imposed by this Act which was refunded to the taxpayer
14        and included in such total for the taxable year;
15            (G) An amount equal to all amounts included in
16        taxable income as modified by subparagraphs (A), (B),
17        (C) and (D) which are exempt from taxation by this
18        State either by reason of its statutes or Constitution
19        or by reason of the Constitution, treaties or statutes
20        of the United States; provided that, in the case of any
21        statute of this State that exempts income derived from
22        bonds or other obligations from the tax imposed under
23        this Act, the amount exempted shall be the interest net
24        of bond premium amortization;
25            (H) Any income of the partnership which
26        constitutes personal service income as defined in

 

 

HB0321- 347 -LRB101 04001 HLH 49009 b

1        Section 1348(b)(1) of the Internal Revenue Code (as in
2        effect December 31, 1981) or a reasonable allowance for
3        compensation paid or accrued for services rendered by
4        partners to the partnership, whichever is greater;
5        this subparagraph (H) is exempt from the provisions of
6        Section 250;
7            (I) An amount equal to all amounts of income
8        distributable to an entity subject to the Personal
9        Property Tax Replacement Income Tax imposed by
10        subsections (c) and (d) of Section 201 of this Act
11        including amounts distributable to organizations
12        exempt from federal income tax by reason of Section
13        501(a) of the Internal Revenue Code; this subparagraph
14        (I) is exempt from the provisions of Section 250;
15            (J) With the exception of any amounts subtracted
16        under subparagraph (G), an amount equal to the sum of
17        all amounts disallowed as deductions by (i) Sections
18        171(a)(2), and 265(a)(2) 265(2) of the Internal
19        Revenue Code, and all amounts of expenses allocable to
20        interest and disallowed as deductions by Section
21        265(a)(1) 265(1) of the Internal Revenue Code; and (ii)
22        for taxable years ending on or after August 13, 1999,
23        Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
24        the Internal Revenue Code, plus, (iii) for taxable
25        years ending on or after December 31, 2011, Section
26        45G(e)(3) of the Internal Revenue Code and, for taxable

 

 

HB0321- 348 -LRB101 04001 HLH 49009 b

1        years ending on or after December 31, 2008, any amount
2        included in gross income under Section 87 of the
3        Internal Revenue Code; the provisions of this
4        subparagraph are exempt from the provisions of Section
5        250;
6            (K) An amount equal to those dividends included in
7        such total which were paid by a corporation which
8        conducts business operations in a River Edge
9        Redevelopment Zone or zones created under the River
10        Edge Redevelopment Zone Act and conducts substantially
11        all of its operations from a River Edge Redevelopment
12        Zone or zones. This subparagraph (K) is exempt from the
13        provisions of Section 250;
14            (L) An amount equal to any contribution made to a
15        job training project established pursuant to the Real
16        Property Tax Increment Allocation Redevelopment Act;
17            (M) An amount equal to those dividends included in
18        such total that were paid by a corporation that
19        conducts business operations in a federally designated
20        Foreign Trade Zone or Sub-Zone and that is designated a
21        High Impact Business located in Illinois; provided
22        that dividends eligible for the deduction provided in
23        subparagraph (K) of paragraph (2) of this subsection
24        shall not be eligible for the deduction provided under
25        this subparagraph (M);
26            (N) An amount equal to the amount of the deduction

 

 

HB0321- 349 -LRB101 04001 HLH 49009 b

1        used to compute the federal income tax credit for
2        restoration of substantial amounts held under claim of
3        right for the taxable year pursuant to Section 1341 of
4        the Internal Revenue Code;
5            (O) For taxable years 2001 and thereafter, for the
6        taxable year in which the bonus depreciation deduction
7        is taken on the taxpayer's federal income tax return
8        under subsection (k) of Section 168 of the Internal
9        Revenue Code and for each applicable taxable year
10        thereafter, an amount equal to "x", where:
11                (1) "y" equals the amount of the depreciation
12            deduction taken for the taxable year on the
13            taxpayer's federal income tax return on property
14            for which the bonus depreciation deduction was
15            taken in any year under subsection (k) of Section
16            168 of the Internal Revenue Code, but not including
17            the bonus depreciation deduction;
18                (2) for taxable years ending on or before
19            December 31, 2005, "x" equals "y" multiplied by 30
20            and then divided by 70 (or "y" multiplied by
21            0.429); and
22                (3) for taxable years ending after December
23            31, 2005:
24                    (i) for property on which a bonus
25                depreciation deduction of 30% of the adjusted
26                basis was taken, "x" equals "y" multiplied by

 

 

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1                30 and then divided by 70 (or "y" multiplied by
2                0.429); and
3                    (ii) for property on which a bonus
4                depreciation deduction of 50% of the adjusted
5                basis was taken, "x" equals "y" multiplied by
6                1.0.
7            The aggregate amount deducted under this
8        subparagraph in all taxable years for any one piece of
9        property may not exceed the amount of the bonus
10        depreciation deduction taken on that property on the
11        taxpayer's federal income tax return under subsection
12        (k) of Section 168 of the Internal Revenue Code. This
13        subparagraph (O) is exempt from the provisions of
14        Section 250;
15            (P) If the taxpayer sells, transfers, abandons, or
16        otherwise disposes of property for which the taxpayer
17        was required in any taxable year to make an addition
18        modification under subparagraph (D-5), then an amount
19        equal to that addition modification.
20            If the taxpayer continues to own property through
21        the last day of the last tax year for which the
22        taxpayer may claim a depreciation deduction for
23        federal income tax purposes and for which the taxpayer
24        was required in any taxable year to make an addition
25        modification under subparagraph (D-5), then an amount
26        equal to that addition modification.

 

 

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1            The taxpayer is allowed to take the deduction under
2        this subparagraph only once with respect to any one
3        piece of property.
4            This subparagraph (P) is exempt from the
5        provisions of Section 250;
6            (Q) The amount of (i) any interest income (net of
7        the deductions allocable thereto) taken into account
8        for the taxable year with respect to a transaction with
9        a taxpayer that is required to make an addition
10        modification with respect to such transaction under
11        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
12        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
13        the amount of such addition modification and (ii) any
14        income from intangible property (net of the deductions
15        allocable thereto) taken into account for the taxable
16        year with respect to a transaction with a taxpayer that
17        is required to make an addition modification with
18        respect to such transaction under Section
19        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
20        203(d)(2)(D-8), but not to exceed the amount of such
21        addition modification. This subparagraph (Q) is exempt
22        from Section 250;
23            (R) An amount equal to the interest income taken
24        into account for the taxable year (net of the
25        deductions allocable thereto) with respect to
26        transactions with (i) a foreign person who would be a

 

 

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1        member of the taxpayer's unitary business group but for
2        the fact that the foreign person's business activity
3        outside the United States is 80% or more of that
4        person's total business activity and (ii) for taxable
5        years ending on or after December 31, 2008, to a person
6        who would be a member of the same unitary business
7        group but for the fact that the person is prohibited
8        under Section 1501(a)(27) from being included in the
9        unitary business group because he or she is ordinarily
10        required to apportion business income under different
11        subsections of Section 304, but not to exceed the
12        addition modification required to be made for the same
13        taxable year under Section 203(d)(2)(D-7) for interest
14        paid, accrued, or incurred, directly or indirectly, to
15        the same person. This subparagraph (R) is exempt from
16        Section 250;
17            (S) An amount equal to the income from intangible
18        property taken into account for the taxable year (net
19        of the deductions allocable thereto) with respect to
20        transactions with (i) a foreign person who would be a
21        member of the taxpayer's unitary business group but for
22        the fact that the foreign person's business activity
23        outside the United States is 80% or more of that
24        person's total business activity and (ii) for taxable
25        years ending on or after December 31, 2008, to a person
26        who would be a member of the same unitary business

 

 

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1        group but for the fact that the person is prohibited
2        under Section 1501(a)(27) from being included in the
3        unitary business group because he or she is ordinarily
4        required to apportion business income under different
5        subsections of Section 304, but not to exceed the
6        addition modification required to be made for the same
7        taxable year under Section 203(d)(2)(D-8) for
8        intangible expenses and costs paid, accrued, or
9        incurred, directly or indirectly, to the same person.
10        This subparagraph (S) is exempt from Section 250; and
11            (T) For taxable years ending on or after December
12        31, 2011, in the case of a taxpayer who was required to
13        add back any insurance premiums under Section
14        203(d)(2)(D-9), such taxpayer may elect to subtract
15        that part of a reimbursement received from the
16        insurance company equal to the amount of the expense or
17        loss (including expenses incurred by the insurance
18        company) that would have been taken into account as a
19        deduction for federal income tax purposes if the
20        expense or loss had been uninsured. If a taxpayer makes
21        the election provided for by this subparagraph (T), the
22        insurer to which the premiums were paid must add back
23        to income the amount subtracted by the taxpayer
24        pursuant to this subparagraph (T). This subparagraph
25        (T) is exempt from the provisions of Section 250.
 

 

 

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1    (e) Gross income; adjusted gross income; taxable income.
2        (1) In general. Subject to the provisions of paragraph
3    (2) and subsection (b)(3), for purposes of this Section and
4    Section 803(e), a taxpayer's gross income, adjusted gross
5    income, or taxable income for the taxable year shall mean
6    the amount of gross income, adjusted gross income or
7    taxable income properly reportable for federal income tax
8    purposes for the taxable year under the provisions of the
9    Internal Revenue Code. Taxable income may be less than
10    zero. However, for taxable years ending on or after
11    December 31, 1986, net operating loss carryforwards from
12    taxable years ending prior to December 31, 1986, may not
13    exceed the sum of federal taxable income for the taxable
14    year before net operating loss deduction, plus the excess
15    of addition modifications over subtraction modifications
16    for the taxable year. For taxable years ending prior to
17    December 31, 1986, taxable income may never be an amount in
18    excess of the net operating loss for the taxable year as
19    defined in subsections (c) and (d) of Section 172 of the
20    Internal Revenue Code, provided that when taxable income of
21    a corporation (other than a Subchapter S corporation),
22    trust, or estate is less than zero and addition
23    modifications, other than those provided by subparagraph
24    (E) of paragraph (2) of subsection (b) for corporations or
25    subparagraph (E) of paragraph (2) of subsection (c) for
26    trusts and estates, exceed subtraction modifications, an

 

 

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1    addition modification must be made under those
2    subparagraphs for any other taxable year to which the
3    taxable income less than zero (net operating loss) is
4    applied under Section 172 of the Internal Revenue Code or
5    under subparagraph (E) of paragraph (2) of this subsection
6    (e) applied in conjunction with Section 172 of the Internal
7    Revenue Code.
8        (2) Special rule. For purposes of paragraph (1) of this
9    subsection, the taxable income properly reportable for
10    federal income tax purposes shall mean:
11            (A) Certain life insurance companies. In the case
12        of a life insurance company subject to the tax imposed
13        by Section 801 of the Internal Revenue Code, life
14        insurance company taxable income, plus the amount of
15        distribution from pre-1984 policyholder surplus
16        accounts as calculated under Section 815a of the
17        Internal Revenue Code;
18            (B) Certain other insurance companies. In the case
19        of mutual insurance companies subject to the tax
20        imposed by Section 831 of the Internal Revenue Code,
21        insurance company taxable income;
22            (C) Regulated investment companies. In the case of
23        a regulated investment company subject to the tax
24        imposed by Section 852 of the Internal Revenue Code,
25        investment company taxable income;
26            (D) Real estate investment trusts. In the case of a

 

 

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1        real estate investment trust subject to the tax imposed
2        by Section 857 of the Internal Revenue Code, real
3        estate investment trust taxable income;
4            (E) Consolidated corporations. In the case of a
5        corporation which is a member of an affiliated group of
6        corporations filing a consolidated income tax return
7        for the taxable year for federal income tax purposes,
8        taxable income determined as if such corporation had
9        filed a separate return for federal income tax purposes
10        for the taxable year and each preceding taxable year
11        for which it was a member of an affiliated group. For
12        purposes of this subparagraph, the taxpayer's separate
13        taxable income shall be determined as if the election
14        provided by Section 243(b)(2) of the Internal Revenue
15        Code had been in effect for all such years;
16            (F) Cooperatives. In the case of a cooperative
17        corporation or association, the taxable income of such
18        organization determined in accordance with the
19        provisions of Section 1381 through 1388 of the Internal
20        Revenue Code, but without regard to the prohibition
21        against offsetting losses from patronage activities
22        against income from nonpatronage activities; except
23        that a cooperative corporation or association may make
24        an election to follow its federal income tax treatment
25        of patronage losses and nonpatronage losses. In the
26        event such election is made, such losses shall be

 

 

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1        computed and carried over in a manner consistent with
2        subsection (a) of Section 207 of this Act and
3        apportioned by the apportionment factor reported by
4        the cooperative on its Illinois income tax return filed
5        for the taxable year in which the losses are incurred.
6        The election shall be effective for all taxable years
7        with original returns due on or after the date of the
8        election. In addition, the cooperative may file an
9        amended return or returns, as allowed under this Act,
10        to provide that the election shall be effective for
11        losses incurred or carried forward for taxable years
12        occurring prior to the date of the election. Once made,
13        the election may only be revoked upon approval of the
14        Director. The Department shall adopt rules setting
15        forth requirements for documenting the elections and
16        any resulting Illinois net loss and the standards to be
17        used by the Director in evaluating requests to revoke
18        elections. Public Act 96-932 is declaratory of
19        existing law;
20            (G) Subchapter S corporations. In the case of: (i)
21        a Subchapter S corporation for which there is in effect
22        an election for the taxable year under Section 1362 of
23        the Internal Revenue Code, the taxable income of such
24        corporation determined in accordance with Section
25        1363(b) of the Internal Revenue Code, except that
26        taxable income shall take into account those items

 

 

HB0321- 358 -LRB101 04001 HLH 49009 b

1        which are required by Section 1363(b)(1) of the
2        Internal Revenue Code to be separately stated; and (ii)
3        a Subchapter S corporation for which there is in effect
4        a federal election to opt out of the provisions of the
5        Subchapter S Revision Act of 1982 and have applied
6        instead the prior federal Subchapter S rules as in
7        effect on July 1, 1982, the taxable income of such
8        corporation determined in accordance with the federal
9        Subchapter S rules as in effect on July 1, 1982; and
10            (H) Partnerships. In the case of a partnership,
11        taxable income determined in accordance with Section
12        703 of the Internal Revenue Code, except that taxable
13        income shall take into account those items which are
14        required by Section 703(a)(1) to be separately stated
15        but which would be taken into account by an individual
16        in calculating his taxable income.
17        (3) Recapture of business expenses on disposition of
18    asset or business. Notwithstanding any other law to the
19    contrary, if in prior years income from an asset or
20    business has been classified as business income and in a
21    later year is demonstrated to be non-business income, then
22    all expenses, without limitation, deducted in such later
23    year and in the 2 immediately preceding taxable years
24    related to that asset or business that generated the
25    non-business income shall be added back and recaptured as
26    business income in the year of the disposition of the asset

 

 

HB0321- 359 -LRB101 04001 HLH 49009 b

1    or business. Such amount shall be apportioned to Illinois
2    using the greater of the apportionment fraction computed
3    for the business under Section 304 of this Act for the
4    taxable year or the average of the apportionment fractions
5    computed for the business under Section 304 of this Act for
6    the taxable year and for the 2 immediately preceding
7    taxable years.
 
8    (f) Valuation limitation amount.
9        (1) In general. The valuation limitation amount
10    referred to in subsections (a)(2)(G), (c)(2)(I) and
11    (d)(2)(E) is an amount equal to:
12            (A) The sum of the pre-August 1, 1969 appreciation
13        amounts (to the extent consisting of gain reportable
14        under the provisions of Section 1245 or 1250 of the
15        Internal Revenue Code) for all property in respect of
16        which such gain was reported for the taxable year; plus
17            (B) The lesser of (i) the sum of the pre-August 1,
18        1969 appreciation amounts (to the extent consisting of
19        capital gain) for all property in respect of which such
20        gain was reported for federal income tax purposes for
21        the taxable year, or (ii) the net capital gain for the
22        taxable year, reduced in either case by any amount of
23        such gain included in the amount determined under
24        subsection (a)(2)(F) or (c)(2)(H).
25        (2) Pre-August 1, 1969 appreciation amount.

 

 

HB0321- 360 -LRB101 04001 HLH 49009 b

1            (A) If the fair market value of property referred
2        to in paragraph (1) was readily ascertainable on August
3        1, 1969, the pre-August 1, 1969 appreciation amount for
4        such property is the lesser of (i) the excess of such
5        fair market value over the taxpayer's basis (for
6        determining gain) for such property on that date
7        (determined under the Internal Revenue Code as in
8        effect on that date), or (ii) the total gain realized
9        and reportable for federal income tax purposes in
10        respect of the sale, exchange or other disposition of
11        such property.
12            (B) If the fair market value of property referred
13        to in paragraph (1) was not readily ascertainable on
14        August 1, 1969, the pre-August 1, 1969 appreciation
15        amount for such property is that amount which bears the
16        same ratio to the total gain reported in respect of the
17        property for federal income tax purposes for the
18        taxable year, as the number of full calendar months in
19        that part of the taxpayer's holding period for the
20        property ending July 31, 1969 bears to the number of
21        full calendar months in the taxpayer's entire holding
22        period for the property.
23            (C) The Department shall prescribe such
24        regulations as may be necessary to carry out the
25        purposes of this paragraph.
 

 

 

HB0321- 361 -LRB101 04001 HLH 49009 b

1    (g) Double deductions. Unless specifically provided
2otherwise, nothing in this Section shall permit the same item
3to be deducted more than once.
 
4    (h) Legislative intention. Except as expressly provided by
5this Section there shall be no modifications or limitations on
6the amounts of income, gain, loss or deduction taken into
7account in determining gross income, adjusted gross income or
8taxable income for federal income tax purposes for the taxable
9year, or in the amount of such items entering into the
10computation of base income and net income under this Act for
11such taxable year, whether in respect of property values as of
12August 1, 1969 or otherwise.
13(Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18;
14revised 10-29-18.)
 
15    (35 ILCS 5/204)  (from Ch. 120, par. 2-204)
16    Sec. 204. Standard exemption.
17    (a) Allowance of exemption. In computing net income under
18this Act, there shall be allowed as an exemption the sum of the
19amounts determined under subsections (b), (c) and (d),
20multiplied by a fraction the numerator of which is the amount
21of the taxpayer's base income allocable to this State for the
22taxable year and the denominator of which is the taxpayer's
23total base income for the taxable year.
24    (b) Basic amount. For the purpose of subsection (a) of this

 

 

HB0321- 362 -LRB101 04001 HLH 49009 b

1Section, except as provided by subsection (a) of Section 205
2and in this subsection, each taxpayer shall be allowed a basic
3amount of $1000, except that for corporations the basic amount
4shall be zero for tax years ending on or after December 31,
52003, and for individuals the basic amount shall be:
6        (1) for taxable years ending on or after December 31,
7    1998 and prior to December 31, 1999, $1,300;
8        (2) for taxable years ending on or after December 31,
9    1999 and prior to December 31, 2000, $1,650;
10        (3) for taxable years ending on or after December 31,
11    2000 and prior to December 31, 2012, $2,000;
12        (4) for taxable years ending on or after December 31,
13    2012 and prior to December 31, 2013, $2,050;
14        (5) for taxable years ending on or after December 31,
15    2013 and on or before December 31, 2023, $2,050 plus the
16    cost-of-living adjustment under subsection (d-5).
17For taxable years ending on or after December 31, 1992, a
18taxpayer whose Illinois base income exceeds the basic amount
19and who is claimed as a dependent on another person's tax
20return under the Internal Revenue Code shall not be allowed any
21basic amount under this subsection.
22    (c) Additional amount for individuals. In the case of an
23individual taxpayer, there shall be allowed for the purpose of
24subsection (a), in addition to the basic amount provided by
25subsection (b), an additional exemption equal to the basic
26amount for each exemption in excess of one allowable to such

 

 

HB0321- 363 -LRB101 04001 HLH 49009 b

1individual taxpayer for the taxable year under Section 151 of
2the Internal Revenue Code.
3    (d) Additional exemptions for an individual taxpayer and
4his or her spouse. In the case of an individual taxpayer and
5his or her spouse, he or she shall each be allowed additional
6exemptions as follows:
7        (1) Additional exemption for taxpayer or spouse 65
8    years of age or older.
9            (A) For taxpayer. An additional exemption of
10        $1,000 for the taxpayer if he or she has attained the
11        age of 65 before the end of the taxable year.
12            (B) For spouse when a joint return is not filed. An
13        additional exemption of $1,000 for the spouse of the
14        taxpayer if a joint return is not made by the taxpayer
15        and his spouse, and if the spouse has attained the age
16        of 65 before the end of such taxable year, and, for the
17        calendar year in which the taxable year of the taxpayer
18        begins, has no gross income and is not the dependent of
19        another taxpayer.
20        (2) Additional exemption for blindness of taxpayer or
21    spouse.
22            (A) For taxpayer. An additional exemption of
23        $1,000 for the taxpayer if he or she is blind at the
24        end of the taxable year.
25            (B) For spouse when a joint return is not filed. An
26        additional exemption of $1,000 for the spouse of the

 

 

HB0321- 364 -LRB101 04001 HLH 49009 b

1        taxpayer if a separate return is made by the taxpayer,
2        and if the spouse is blind and, for the calendar year
3        in which the taxable year of the taxpayer begins, has
4        no gross income and is not the dependent of another
5        taxpayer. For purposes of this paragraph, the
6        determination of whether the spouse is blind shall be
7        made as of the end of the taxable year of the taxpayer;
8        except that if the spouse dies during such taxable year
9        such determination shall be made as of the time of such
10        death.
11            (C) Blindness defined. For purposes of this
12        subsection, an individual is blind only if his or her
13        central visual acuity does not exceed 20/200 in the
14        better eye with correcting lenses, or if his or her
15        visual acuity is greater than 20/200 but is accompanied
16        by a limitation in the fields of vision such that the
17        widest diameter of the visual fields subtends an angle
18        no greater than 20 degrees.
19    (d-5) Cost-of-living adjustment. For purposes of item (5)
20of subsection (b), the cost-of-living adjustment for any
21calendar year and for taxable years ending prior to the end of
22the subsequent calendar year is equal to $2,050 times the
23percentage (if any) by which:
24        (1) the Consumer Price Index for the preceding calendar
25    year, exceeds
26        (2) the Consumer Price Index for the calendar year

 

 

HB0321- 365 -LRB101 04001 HLH 49009 b

1    2011.
2    The Consumer Price Index for any calendar year is the
3average of the Consumer Price Index as of the close of the
412-month period ending on August 31 of that calendar year.
5    The term "Consumer Price Index" means the last Consumer
6Price Index for All Urban Consumers published by the United
7States Department of Labor or any successor agency.
8    If any cost-of-living adjustment is not a multiple of $25,
9that adjustment shall be rounded to the next lowest multiple of
10$25.
11    (e) Cross reference. See Article 3 for the manner of
12determining base income allocable to this State.
13    (f) Application of Section 250. Section 250 does not apply
14to the amendments to this Section made by Public Act 90-613.
15    (g) Notwithstanding any other provision of law, for taxable
16years beginning on or after January 1, 2017 and beginning prior
17to January 1, 2019, no taxpayer may claim an exemption under
18this Section if the taxpayer's adjusted gross income for the
19taxable year exceeds (i) $500,000, in the case of spouses
20filing a joint federal tax return or (ii) $250,000, in the case
21of all other taxpayers.
22(Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
 
23    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
24    Sec. 208. Tax credit for residential real property taxes.
25Beginning with tax years ending on or after December 31, 1991,

 

 

HB0321- 366 -LRB101 04001 HLH 49009 b

1every individual taxpayer shall be entitled to a tax credit
2equal to 5% of real property taxes paid by such taxpayer during
3the taxable year on the principal residence of the taxpayer. In
4the case of multi-unit or multi-use structures and farm
5dwellings, the taxes on the taxpayer's principal residence
6shall be that portion of the total taxes which is attributable
7to such principal residence. Notwithstanding any other
8provision of law, for taxable years beginning on or after
9January 1, 2017 and beginning prior to January 1, 2019, no
10taxpayer may claim a credit under this Section if the
11taxpayer's adjusted gross income for the taxable year exceeds
12(i) $500,000, in the case of spouses filing a joint federal tax
13return, or (ii) $250,000, in the case of all other taxpayers.
14(Source: P.A. 100-22, eff. 7-6-17.)
 
15    (35 ILCS 5/212)
16    Sec. 212. Earned income tax credit.
17    (a) With respect to the federal earned income tax credit
18allowed for the taxable year under Section 32 of the federal
19Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
20is entitled to a credit against the tax imposed by subsections
21(a) and (b) of Section 201 in an amount equal to (i) 5% of the
22federal tax credit for each taxable year beginning on or after
23January 1, 2000 and ending prior to December 31, 2012, (ii)
247.5% of the federal tax credit for each taxable year beginning
25on or after January 1, 2012 and ending prior to December 31,

 

 

HB0321- 367 -LRB101 04001 HLH 49009 b

12013, (iii) 10% of the federal tax credit for each taxable year
2beginning on or after January 1, 2013 and beginning prior to
3January 1, 2017, (iv) 14% of the federal tax credit for each
4taxable year beginning on or after January 1, 2017 and
5beginning prior to January 1, 2018, and (v) 18% of the federal
6tax credit for each taxable year beginning on or after January
71, 2018 and beginning prior to January 1, 2019, and (vi) 10% of
8the of the federal tax credit for each taxable year beginning
9on or after January 1, 2019.
10    For a non-resident or part-year resident, the amount of the
11credit under this Section shall be in proportion to the amount
12of income attributable to this State.
13    (b) For taxable years beginning before January 1, 2003, in
14no event shall a credit under this Section reduce the
15taxpayer's liability to less than zero. For each taxable year
16beginning on or after January 1, 2003, if the amount of the
17credit exceeds the income tax liability for the applicable tax
18year, then the excess credit shall be refunded to the taxpayer.
19The amount of a refund shall not be included in the taxpayer's
20income or resources for the purposes of determining eligibility
21or benefit level in any means-tested benefit program
22administered by a governmental entity unless required by
23federal law.
24    (c) This Section is exempt from the provisions of Section
25250.
26(Source: P.A. 100-22, eff. 7-6-17.)
 

 

 

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1    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
2    Sec. 901. Collection authority.
3    (a) In general. The Department shall collect the taxes
4imposed by this Act. The Department shall collect certified
5past due child support amounts under Section 2505-650 of the
6Department of Revenue Law of the Civil Administrative Code of
7Illinois. Except as provided in subsections (b), (c), (e), (f),
8(g), and (h) of this Section, money collected pursuant to
9subsections (a) and (b) of Section 201 of this Act shall be
10paid into the General Revenue Fund in the State treasury; money
11collected pursuant to subsections (c) and (d) of Section 201 of
12this Act shall be paid into the Personal Property Tax
13Replacement Fund, a special fund in the State Treasury; and
14money collected under Section 2505-650 of the Department of
15Revenue Law of the Civil Administrative Code of Illinois shall
16be paid into the Child Support Enforcement Trust Fund, a
17special fund outside the State Treasury, or to the State
18Disbursement Unit established under Section 10-26 of the
19Illinois Public Aid Code, as directed by the Department of
20Healthcare and Family Services.
21    (b) Local Government Distributive Fund. Beginning August
221, 1969, and continuing through June 30, 1994, the Treasurer
23shall transfer each month from the General Revenue Fund to a
24special fund in the State treasury, to be known as the "Local
25Government Distributive Fund", an amount equal to 1/12 of the

 

 

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1net revenue realized from the tax imposed by subsections (a)
2and (b) of Section 201 of this Act during the preceding month.
3Beginning July 1, 1994, and continuing through June 30, 1995,
4the Treasurer shall transfer each month from the General
5Revenue Fund to the Local Government Distributive Fund an
6amount equal to 1/11 of the net revenue realized from the tax
7imposed by subsections (a) and (b) of Section 201 of this Act
8during the preceding month. Beginning July 1, 1995 and
9continuing through January 31, 2011, the Treasurer shall
10transfer each month from the General Revenue Fund to the Local
11Government Distributive Fund an amount equal to the net of (i)
121/10 of the net revenue realized from the tax imposed by
13subsections (a) and (b) of Section 201 of the Illinois Income
14Tax Act during the preceding month (ii) minus, beginning July
151, 2003 and ending June 30, 2004, $6,666,666, and beginning
16July 1, 2004, zero. Beginning February 1, 2011, and continuing
17through January 31, 2015, the Treasurer shall transfer each
18month from the General Revenue Fund to the Local Government
19Distributive Fund an amount equal to the sum of (i) 6% (10% of
20the ratio of the 3% individual income tax rate prior to 2011 to
21the 5% individual income tax rate after 2010) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon individuals, trusts, and
24estates during the preceding month and (ii) 6.86% (10% of the
25ratio of the 4.8% corporate income tax rate prior to 2011 to
26the 7% corporate income tax rate after 2010) of the net revenue

 

 

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1realized from the tax imposed by subsections (a) and (b) of
2Section 201 of this Act upon corporations during the preceding
3month. Beginning February 1, 2015 and continuing through July
431, 2017, the Treasurer shall transfer each month from the
5General Revenue Fund to the Local Government Distributive Fund
6an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
7individual income tax rate prior to 2011 to the 3.75%
8individual income tax rate after 2014) of the net revenue
9realized from the tax imposed by subsections (a) and (b) of
10Section 201 of this Act upon individuals, trusts, and estates
11during the preceding month and (ii) 9.14% (10% of the ratio of
12the 4.8% corporate income tax rate prior to 2011 to the 5.25%
13corporate income tax rate after 2014) of the net revenue
14realized from the tax imposed by subsections (a) and (b) of
15Section 201 of this Act upon corporations during the preceding
16month. Beginning August 1, 2017 and continuing through January
1731, 2019, the Treasurer shall transfer each month from the
18General Revenue Fund to the Local Government Distributive Fund
19an amount equal to the sum of (i) 6.06% (10% of the ratio of the
203% individual income tax rate prior to 2011 to the 4.95%
21individual income tax rate after July 1, 2017) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon individuals, trusts, and
24estates during the preceding month and (ii) 6.85% (10% of the
25ratio of the 4.8% corporate income tax rate prior to 2011 to
26the 7% corporate income tax rate after July 1, 2017) of the net

 

 

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1revenue realized from the tax imposed by subsections (a) and
2(b) of Section 201 of this Act upon corporations during the
3preceding month. Beginning on February 1, 2019 and continuing
4through January 31, 2025, the Treasurer shall transfer each
5month from the General Revenue Fund to the Local Government
6Distributive Fund an amount equal to the sum of (i) 8% (10% of
7the ratio of the 3% individual income tax rate prior to 2011 to
8the 3.75% individual income tax rate after January 1, 2019) of
9the net revenue realized from the tax imposed by subsections
10(a) and (b) of Section 201 of this Act upon individuals,
11trusts, and estates during the preceding month and (ii) 9.14%
12(10% of the ratio of the 4.8% corporate income tax rate prior
13to 2011 to the 5.25% corporate income tax rate after 2019) of
14the net revenue realized from the tax imposed by subsections
15(a) and (b) of Section 201 of this Act upon corporations during
16the preceding month. Beginning on February 1, 2025, the
17Treasurer shall transfer each month from the General Revenue
18Fund to the Local Government Distributive Fund an amount equal
19to 1/10 of the net revenue realized from the tax imposed on
20individuals, trusts, estates, and corporations by subsections
21(a) and (b) of Section 201 during the preceding month. Net
22revenue realized for a month shall be defined as the revenue
23from the tax imposed by subsections (a) and (b) of Section 201
24of this Act which is deposited in the General Revenue Fund, the
25Education Assistance Fund, the Income Tax Surcharge Local
26Government Distributive Fund, the Fund for the Advancement of

 

 

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1Education, and the Commitment to Human Services Fund during the
2month minus the amount paid out of the General Revenue Fund in
3State warrants during that same month as refunds to taxpayers
4for overpayment of liability under the tax imposed by
5subsections (a) and (b) of Section 201 of this Act.
6    Notwithstanding any provision of law to the contrary,
7beginning on July 6, 2017 (the effective date of Public Act
8100-23), those amounts required under this subsection (b) to be
9transferred by the Treasurer into the Local Government
10Distributive Fund from the General Revenue Fund shall be
11directly deposited into the Local Government Distributive Fund
12as the revenue is realized from the tax imposed by subsections
13(a) and (b) of Section 201 of this Act.
14    For State fiscal year 2018 only, notwithstanding any
15provision of law to the contrary, the total amount of revenue
16and deposits under this Section attributable to revenues
17realized during State fiscal year 2018 shall be reduced by 10%.
18    For State fiscal year 2019 only, notwithstanding any
19provision of law to the contrary, the total amount of revenue
20and deposits under this Section attributable to revenues
21realized during State fiscal year 2019 shall be reduced by 5%.
22    (c) Deposits Into Income Tax Refund Fund.
23        (1) Beginning on January 1, 1989 and thereafter, the
24    Department shall deposit a percentage of the amounts
25    collected pursuant to subsections (a) and (b)(1), (2), and
26    (3) of Section 201 of this Act into a fund in the State

 

 

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1    treasury known as the Income Tax Refund Fund. The
2    Department shall deposit 6% of such amounts during the
3    period beginning January 1, 1989 and ending on June 30,
4    1989. Beginning with State fiscal year 1990 and for each
5    fiscal year thereafter, the percentage deposited into the
6    Income Tax Refund Fund during a fiscal year shall be the
7    Annual Percentage. For fiscal years 1999 through 2001, the
8    Annual Percentage shall be 7.1%. For fiscal year 2003, the
9    Annual Percentage shall be 8%. For fiscal year 2004, the
10    Annual Percentage shall be 11.7%. Upon the effective date
11    of Public Act 93-839 (July 30, 2004), the Annual Percentage
12    shall be 10% for fiscal year 2005. For fiscal year 2006,
13    the Annual Percentage shall be 9.75%. For fiscal year 2007,
14    the Annual Percentage shall be 9.75%. For fiscal year 2008,
15    the Annual Percentage shall be 7.75%. For fiscal year 2009,
16    the Annual Percentage shall be 9.75%. For fiscal year 2010,
17    the Annual Percentage shall be 9.75%. For fiscal year 2011,
18    the Annual Percentage shall be 8.75%. For fiscal year 2012,
19    the Annual Percentage shall be 8.75%. For fiscal year 2013,
20    the Annual Percentage shall be 9.75%. For fiscal year 2014,
21    the Annual Percentage shall be 9.5%. For fiscal year 2015,
22    the Annual Percentage shall be 10%. For fiscal year 2018,
23    the Annual Percentage shall be 9.8%. For fiscal year 2019,
24    the Annual Percentage shall be 9.7%. For all other fiscal
25    years, the Annual Percentage shall be calculated as a
26    fraction, the numerator of which shall be the amount of

 

 

HB0321- 374 -LRB101 04001 HLH 49009 b

1    refunds approved for payment by the Department during the
2    preceding fiscal year as a result of overpayment of tax
3    liability under subsections (a) and (b)(1), (2), and (3) of
4    Section 201 of this Act plus the amount of such refunds
5    remaining approved but unpaid at the end of the preceding
6    fiscal year, minus the amounts transferred into the Income
7    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
8    and the denominator of which shall be the amounts which
9    will be collected pursuant to subsections (a) and (b)(1),
10    (2), and (3) of Section 201 of this Act during the
11    preceding fiscal year; except that in State fiscal year
12    2002, the Annual Percentage shall in no event exceed 7.6%.
13    The Director of Revenue shall certify the Annual Percentage
14    to the Comptroller on the last business day of the fiscal
15    year immediately preceding the fiscal year for which it is
16    to be effective.
17        (2) Beginning on January 1, 1989 and thereafter, the
18    Department shall deposit a percentage of the amounts
19    collected pursuant to subsections (a) and (b)(6), (7), and
20    (8), (c) and (d) of Section 201 of this Act into a fund in
21    the State treasury known as the Income Tax Refund Fund. The
22    Department shall deposit 18% of such amounts during the
23    period beginning January 1, 1989 and ending on June 30,
24    1989. Beginning with State fiscal year 1990 and for each
25    fiscal year thereafter, the percentage deposited into the
26    Income Tax Refund Fund during a fiscal year shall be the

 

 

HB0321- 375 -LRB101 04001 HLH 49009 b

1    Annual Percentage. For fiscal years 1999, 2000, and 2001,
2    the Annual Percentage shall be 19%. For fiscal year 2003,
3    the Annual Percentage shall be 27%. For fiscal year 2004,
4    the Annual Percentage shall be 32%. Upon the effective date
5    of Public Act 93-839 (July 30, 2004), the Annual Percentage
6    shall be 24% for fiscal year 2005. For fiscal year 2006,
7    the Annual Percentage shall be 20%. For fiscal year 2007,
8    the Annual Percentage shall be 17.5%. For fiscal year 2008,
9    the Annual Percentage shall be 15.5%. For fiscal year 2009,
10    the Annual Percentage shall be 17.5%. For fiscal year 2010,
11    the Annual Percentage shall be 17.5%. For fiscal year 2011,
12    the Annual Percentage shall be 17.5%. For fiscal year 2012,
13    the Annual Percentage shall be 17.5%. For fiscal year 2013,
14    the Annual Percentage shall be 14%. For fiscal year 2014,
15    the Annual Percentage shall be 13.4%. For fiscal year 2015,
16    the Annual Percentage shall be 14%. For fiscal year 2018,
17    the Annual Percentage shall be 17.5%. For fiscal year 2019,
18    the Annual Percentage shall be 15.5%. For all other fiscal
19    years, the Annual Percentage shall be calculated as a
20    fraction, the numerator of which shall be the amount of
21    refunds approved for payment by the Department during the
22    preceding fiscal year as a result of overpayment of tax
23    liability under subsections (a) and (b)(6), (7), and (8),
24    (c) and (d) of Section 201 of this Act plus the amount of
25    such refunds remaining approved but unpaid at the end of
26    the preceding fiscal year, and the denominator of which

 

 

HB0321- 376 -LRB101 04001 HLH 49009 b

1    shall be the amounts which will be collected pursuant to
2    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
3    Section 201 of this Act during the preceding fiscal year;
4    except that in State fiscal year 2002, the Annual
5    Percentage shall in no event exceed 23%. The Director of
6    Revenue shall certify the Annual Percentage to the
7    Comptroller on the last business day of the fiscal year
8    immediately preceding the fiscal year for which it is to be
9    effective.
10        (3) The Comptroller shall order transferred and the
11    Treasurer shall transfer from the Tobacco Settlement
12    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
13    in January, 2001, (ii) $35,000,000 in January, 2002, and
14    (iii) $35,000,000 in January, 2003.
15    (d) Expenditures from Income Tax Refund Fund.
16        (1) Beginning January 1, 1989, money in the Income Tax
17    Refund Fund shall be expended exclusively for the purpose
18    of paying refunds resulting from overpayment of tax
19    liability under Section 201 of this Act and for making
20    transfers pursuant to this subsection (d).
21        (2) The Director shall order payment of refunds
22    resulting from overpayment of tax liability under Section
23    201 of this Act from the Income Tax Refund Fund only to the
24    extent that amounts collected pursuant to Section 201 of
25    this Act and transfers pursuant to this subsection (d) and
26    item (3) of subsection (c) have been deposited and retained

 

 

HB0321- 377 -LRB101 04001 HLH 49009 b

1    in the Fund.
2        (3) As soon as possible after the end of each fiscal
3    year, the Director shall order transferred and the State
4    Treasurer and State Comptroller shall transfer from the
5    Income Tax Refund Fund to the Personal Property Tax
6    Replacement Fund an amount, certified by the Director to
7    the Comptroller, equal to the excess of the amount
8    collected pursuant to subsections (c) and (d) of Section
9    201 of this Act deposited into the Income Tax Refund Fund
10    during the fiscal year over the amount of refunds resulting
11    from overpayment of tax liability under subsections (c) and
12    (d) of Section 201 of this Act paid from the Income Tax
13    Refund Fund during the fiscal year.
14        (4) As soon as possible after the end of each fiscal
15    year, the Director shall order transferred and the State
16    Treasurer and State Comptroller shall transfer from the
17    Personal Property Tax Replacement Fund to the Income Tax
18    Refund Fund an amount, certified by the Director to the
19    Comptroller, equal to the excess of the amount of refunds
20    resulting from overpayment of tax liability under
21    subsections (c) and (d) of Section 201 of this Act paid
22    from the Income Tax Refund Fund during the fiscal year over
23    the amount collected pursuant to subsections (c) and (d) of
24    Section 201 of this Act deposited into the Income Tax
25    Refund Fund during the fiscal year.
26        (4.5) As soon as possible after the end of fiscal year

 

 

HB0321- 378 -LRB101 04001 HLH 49009 b

1    1999 and of each fiscal year thereafter, the Director shall
2    order transferred and the State Treasurer and State
3    Comptroller shall transfer from the Income Tax Refund Fund
4    to the General Revenue Fund any surplus remaining in the
5    Income Tax Refund Fund as of the end of such fiscal year;
6    excluding for fiscal years 2000, 2001, and 2002 amounts
7    attributable to transfers under item (3) of subsection (c)
8    less refunds resulting from the earned income tax credit.
9        (5) This Act shall constitute an irrevocable and
10    continuing appropriation from the Income Tax Refund Fund
11    for the purpose of paying refunds upon the order of the
12    Director in accordance with the provisions of this Section.
13    (e) Deposits into the Education Assistance Fund and the
14Income Tax Surcharge Local Government Distributive Fund. On
15July 1, 1991, and thereafter, of the amounts collected pursuant
16to subsections (a) and (b) of Section 201 of this Act, minus
17deposits into the Income Tax Refund Fund, the Department shall
18deposit 7.3% into the Education Assistance Fund in the State
19Treasury. Beginning July 1, 1991, and continuing through
20January 31, 1993, of the amounts collected pursuant to
21subsections (a) and (b) of Section 201 of the Illinois Income
22Tax Act, minus deposits into the Income Tax Refund Fund, the
23Department shall deposit 3.0% into the Income Tax Surcharge
24Local Government Distributive Fund in the State Treasury.
25Beginning February 1, 1993 and continuing through June 30,
261993, of the amounts collected pursuant to subsections (a) and

 

 

HB0321- 379 -LRB101 04001 HLH 49009 b

1(b) of Section 201 of the Illinois Income Tax Act, minus
2deposits into the Income Tax Refund Fund, the Department shall
3deposit 4.4% into the Income Tax Surcharge Local Government
4Distributive Fund in the State Treasury. Beginning July 1,
51993, and continuing through June 30, 1994, of the amounts
6collected under subsections (a) and (b) of Section 201 of this
7Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 1.475% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10    (f) Deposits into the Fund for the Advancement of
11Education. Beginning February 1, 2015, the Department shall
12deposit the following portions of the revenue realized from the
13tax imposed upon individuals, trusts, and estates by
14subsections (a) and (b) of Section 201 of this Act during the
15preceding month, minus deposits into the Income Tax Refund
16Fund, into the Fund for the Advancement of Education:
17        (1) beginning February 1, 2015, and prior to February
18    1, 2025, 1/30; and
19        (2) beginning February 1, 2025, 1/26.
20    If the rate of tax imposed by subsection (a) and (b) of
21Section 201 is reduced pursuant to Section 201.5 of this Act,
22the Department shall not make the deposits required by this
23subsection (f) on or after the effective date of the reduction.
24    (g) Deposits into the Commitment to Human Services Fund.
25Beginning February 1, 2015, the Department shall deposit the
26following portions of the revenue realized from the tax imposed

 

 

HB0321- 380 -LRB101 04001 HLH 49009 b

1upon individuals, trusts, and estates by subsections (a) and
2(b) of Section 201 of this Act during the preceding month,
3minus deposits into the Income Tax Refund Fund, into the
4Commitment to Human Services Fund:
5        (1) beginning February 1, 2015, and prior to February
6    1, 2025, 1/30; and
7        (2) beginning February 1, 2025, 1/26.
8    If the rate of tax imposed by subsection (a) and (b) of
9Section 201 is reduced pursuant to Section 201.5 of this Act,
10the Department shall not make the deposits required by this
11subsection (g) on or after the effective date of the reduction.
12    (h) Deposits into the Tax Compliance and Administration
13Fund. Beginning on the first day of the first calendar month to
14occur on or after August 26, 2014 (the effective date of Public
15Act 98-1098), each month the Department shall pay into the Tax
16Compliance and Administration Fund, to be used, subject to
17appropriation, to fund additional auditors and compliance
18personnel at the Department, an amount equal to 1/12 of 5% of
19the cash receipts collected during the preceding fiscal year by
20the Audit Bureau of the Department from the tax imposed by
21subsections (a), (b), (c), and (d) of Section 201 of this Act,
22net of deposits into the Income Tax Refund Fund made from those
23cash receipts.
24(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
25eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;
26100-863, eff. 8-14-18; revised 10-12-18.)
 

 

 

HB0321- 381 -LRB101 04001 HLH 49009 b

1    (35 ILCS 5/1102)  (from Ch. 120, par. 11-1102)
2    Sec. 1102. Jeopardy assessments.
3    (a) Jeopardy assessment and lien.
4        (1) Assessment. If the Department finds that a taxpayer
5    is about to depart from the State, or to conceal himself or
6    his property, or to do any other act tending to prejudice
7    or to render wholly or partly ineffectual proceedings to
8    collect any amount of tax or penalties imposed under this
9    Act unless court proceedings are brought without delay, or
10    if the Department finds that the collection of such amount
11    will be jeopardized by delay, the Department shall give the
12    taxpayer notice of such findings and shall make demand for
13    immediate return and payment of such amount, whereupon such
14    amount shall be deemed assessed and shall become
15    immediately due and payable.
16        (2) Filing of lien. If the taxpayer, within 5 days
17    after such notice (or within such extension of time as the
18    Department may grant), does not comply with such notice or
19    show to the Department that the findings in such notice are
20    erroneous, the Department may file a notice of jeopardy
21    assessment lien in the office of the recorder of the county
22    in which any property of the taxpayer may be located State
23    Tax Lien Registry and shall notify the taxpayer of such
24    filing. Such jeopardy assessment lien shall have the same
25    scope and effect as a statutory lien under this Act. The

 

 

HB0321- 382 -LRB101 04001 HLH 49009 b

1    taxpayer is liable for the filing fee incurred by the
2    Department for filing the lien and the filing fee incurred
3    by the Department to file the release of that lien any
4    administrative fee imposed by the Department by rule in
5    connection with the State Tax Lien Registry. The filing
6    fees shall be paid to the Department in addition to payment
7    of the tax, penalty, and interest included in the amount of
8    the lien.
9    (b) Termination of taxable year. In the case of a tax for a
10current taxable year, the Director shall declare the taxable
11period of the taxpayer immediately terminated and his notice
12and demand for a return and immediate payment of the tax shall
13relate to the period declared terminated, including therein
14income accrued and deductions incurred up to the date of
15termination if not otherwise properly includible or deductible
16in respect of such taxable year.
17    (c) Protest. If the taxpayer believes that he does not owe
18some or all of the amount for which the jeopardy assessment
19lien against him has been filed, or that no jeopardy to the
20revenue in fact exists, he may protest within 20 days after
21being notified by the Department of the filing of such jeopardy
22assessment lien and request a hearing, whereupon the Department
23shall hold a hearing in conformity with the provisions of
24Section 908 and, pursuant thereto, shall notify the taxpayer of
25its decision as to whether or not such jeopardy assessment lien
26will be released.

 

 

HB0321- 383 -LRB101 04001 HLH 49009 b

1(Source: P.A. 100-22, eff. 1-1-18.)
 
2    (35 ILCS 5/1103)  (from Ch. 120, par. 11-1103)
3    Sec. 1103. Filing and priority of liens.
4    (a) Filing with Recorder in the State Tax Lien Registry.
5Nothing in this Article shall be construed to give the
6Department a preference over the rights of any bona fide
7purchaser, holder of a security interest, mechanics lienor,
8mortgagee, or judgment lien creditor arising prior to the
9filing of a regular notice of lien or a notice of jeopardy
10assessment lien in the office of the recorder in the county in
11which the property subject to the lien is located State Tax
12Lien Registry. For purposes of this Section, the term "bona
13fide," shall not include any mortgage of real or personal
14property or any other credit transaction that results in the
15mortgagee or the holder of the security acting as trustee for
16unsecured creditors of the taxpayer mentioned in the notice of
17lien who executed such chattel or real property mortgage or the
18document evidencing such credit transaction. Such lien shall be
19inferior to the lien of general taxes, special assessments and
20special taxes heretofore or hereafter levied by any political
21subdivision of this State.
22    (b) Filing with Registrar in the State Tax Lien Registry.
23In case title to land to be affected by the notice of lien or
24notice of jeopardy assessment lien is registered under the
25provisions of "An Act concerning land titles," approved May 1,

 

 

HB0321- 384 -LRB101 04001 HLH 49009 b

11897, as amended, such notice shall also be filed in the office
2of the Registrar of Titles of the county within which the
3property subject to the lien is situated and shall be entered
4upon the register of titles as a memorial of charge upon each
5folium of the register of titles affected by such notice State
6Tax Lien Registry, and the Department shall not have a
7preference over the rights of any bona fide purchaser,
8mortgagee, judgment creditor or other lien holder arising prior
9to the registration of such notice.
10    (c) Index. The recorder of each county shall procure a file
11labeled "State Tax Lien Notices" and an index book labeled
12"State Tax Lien Index." When notice of any lien or jeopardy
13assessment lien is presented to him for filing, he shall file
14it in numerical order in the file and shall enter it
15alphabetically in the index. The entry shall show the name and
16last known address of the person named in the notice, the
17serial number of the notice, the date and hour of filing,
18whether it is a regular lien or a jeopardy assessment lien, and
19the amount of tax and penalty due and unpaid, plus the amount
20of interest due at the time when the notice of lien or jeopardy
21assessment is filed. The Department of Revenue shall maintain a
22State Tax Lien Index of all tax liens filed in the State Tax
23Lien Registry as provided for by the State Tax Lien
24Registration Act.
25    (d) No recorder or registrar of titles of any county shall
26require that the Department pay any costs or fees in connection

 

 

HB0321- 385 -LRB101 04001 HLH 49009 b

1with recordation of any notice or other document filed by the
2Department under this Act at the time such notice or other
3document is presented for recordation. The recorder or
4registrar of each county, in order to receive payment for fees
5or costs incurred by the Department, shall present the
6Department with monthly statements indicating the amount of
7fees and costs incurred by the Department and for which no
8payment has been received. This amendatory Act of 1987 applies
9to all liens heretofore or hereafter filed. (Blank).
10    (e) The taxpayer is liable for the any filing fee incurred
11fees imposed by the Department for filing the lien in the State
12Tax Lien Registry and the any filing fee incurred fees imposed
13by the Department to file for the release of that lien. The
14filing fees shall be paid to the Department in addition to
15payment of the tax, penalty, and interest included in the
16amount of the lien.
17(Source: P.A. 100-22, eff. 1-1-18.)
 
18    (35 ILCS 5/1105)  (from Ch. 120, par. 11-1105)
19    Sec. 1105. Release of liens.
20    (a) In general. Upon payment by the taxpayer to the
21Department in cash or by guaranteed remittance of an amount
22representing the filing fees and charges for the lien and the
23filing fees and charges for the release of that lien, the
24Department shall release all or any portion of the property
25subject to any lien provided for in this Act and file that

 

 

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1complete or partial release of lien with the recorder of the
2county where the lien was filed in the State Tax Lien Registry
3if it determines that the release will not endanger or
4jeopardize the collection of the amount secured thereby.
5    (b) Judicial determination. If on judicial review the final
6judgment of the court is that the taxpayer does not owe some or
7all of the amount secured by the lien against him, or that no
8jeopardy to the revenue exists, the Department shall release
9its lien to the extent of such finding of nonliability, or to
10the extent of such finding of no jeopardy to the revenue. The
11taxpayer shall, however, be liable for the filing fee paid
12imposed by the Department to file the lien and the filing fee
13required to file a release of imposed to release the lien. The
14filing fees shall be paid to the Department.
15    (c) Payment. The Department shall also release its jeopardy
16assessment lien against the taxpayer whenever the tax and
17penalty covered by such lien, plus any interest which may be
18due and an amount representing the filing fee to file the lien
19and the filing fee required to file a release of imposed to
20release that lien, are paid by the taxpayer to the Department
21in cash or by guaranteed remittance.
22    (d) Certificate of release. The Department shall issue a
23certificate of complete or partial release of the lien upon
24payment by the taxpayer to the Department in cash or by
25guaranteed remittance of an amount representing the filing fee
26paid imposed by the Department to file the lien and the filing

 

 

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1fee required to file the imposed to release of that lien:
2        (1) to the extent that the fair market value of any
3    property subject to the lien exceeds the amount of the lien
4    plus the amount of all prior liens upon such property;
5        (2) to the extent that such lien shall become
6    unenforceable;
7        (3) to the extent that the amount of such lien is paid
8    by the person whose property is subject to such lien,
9    together with any interest and penalty which may become due
10    under this Act between the date when the notice of lien is
11    filed and the date when the amount of such lien is paid;
12        (4) to the extent that there is furnished to the
13    Department on a form to be approved and with a surety or
14    sureties satisfactory to the Department a bond that is
15    conditioned upon the payment of the amount of such lien,
16    together with any interest which may become due under this
17    Act after the notice of lien is filed, but before the
18    amount thereof is fully paid;
19        (5) to the extent and under the circumstances specified
20    in this Section.
21    A certificate of complete or partial release of any lien
22shall be held conclusive that the lien upon the property
23covered by the certificate is extinguished to the extent
24indicated by such certificate.
25    Such release of lien shall be issued to the person, or his
26agent, against whom the lien was obtained and shall contain in

 

 

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1legible letters a statement as follows:
2    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
3    BE FILED WITH THE RECORDER OF THE REGISTRAR OF TITLES IN
4WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
5    (e) Filing. When a certificate of complete or partial
6release of lien issued by the Department is presented for
7filing in the office of the recorder or Registrar of Titles
8where a notice of lien or notice of jeopardy assessment lien
9was filed:
10        (1) the recorder, in the case of nonregistered
11    property, filed in the State Tax Lien Registry, the
12    Department shall permanently attach the certificate of
13    release to the notice of lien or notice of jeopardy
14    assessment lien and shall enter the certificate of release
15    and the date in the "State Tax Lien Index" on the line
16    where the notice of lien or notice of jeopardy assessment
17    lien is entered; and .
18        (2) in the case of registered property, the Registrar
19    of Titles shall file and enter upon each folium of the
20    register of titles affected thereby a memorial of the
21    certificate of release which memorial when so entered shall
22    act as a release pro tanto of any memorial of such notice
23    of lien or notice of jeopardy assessment lien previously
24    filed and registered.
25(Source: P.A. 100-22, eff. 1-1-18.)
 

 

 

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1    (35 ILCS 5/1501)  (from Ch. 120, par. 15-1501)
2    Sec. 1501. Definitions.
3    (a) In general. When used in this Act, where not otherwise
4distinctly expressed or manifestly incompatible with the
5intent thereof:
6        (1) Business income. The term "business income" means
7    all income that may be treated as apportionable business
8    income under the Constitution of the United States.
9    Business income is net of the deductions allocable thereto.
10    Such term does not include compensation or the deductions
11    allocable thereto. For each taxable year beginning on or
12    after January 1, 2003, a taxpayer may elect to treat all
13    income other than compensation as business income. This
14    election shall be made in accordance with rules adopted by
15    the Department and, once made, shall be irrevocable.
16        (1.5) Captive real estate investment trust:
17            (A) The term "captive real estate investment
18        trust" means a corporation, trust, or association:
19                (i) that is considered a real estate
20            investment trust for the taxable year under
21            Section 856 of the Internal Revenue Code;
22                (ii) the certificates of beneficial interest
23            or shares of which are not regularly traded on an
24            established securities market; and
25                (iii) of which more than 50% of the voting
26            power or value of the beneficial interest or

 

 

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1            shares, at any time during the last half of the
2            taxable year, is owned or controlled, directly,
3            indirectly, or constructively, by a single
4            corporation.
5            (B) The term "captive real estate investment
6        trust" does not include:
7                (i) a real estate investment trust of which
8            more than 50% of the voting power or value of the
9            beneficial interest or shares is owned or
10            controlled, directly, indirectly, or
11            constructively, by:
12                    (a) a real estate investment trust, other
13                than a captive real estate investment trust;
14                    (b) a person who is exempt from taxation
15                under Section 501 of the Internal Revenue Code,
16                and who is not required to treat income
17                received from the real estate investment trust
18                as unrelated business taxable income under
19                Section 512 of the Internal Revenue Code;
20                    (c) a listed Australian property trust, if
21                no more than 50% of the voting power or value
22                of the beneficial interest or shares of that
23                trust, at any time during the last half of the
24                taxable year, is owned or controlled, directly
25                or indirectly, by a single person;
26                    (d) an entity organized as a trust,

 

 

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1                provided a listed Australian property trust
2                described in subparagraph (c) owns or
3                controls, directly or indirectly, or
4                constructively, 75% or more of the voting power
5                or value of the beneficial interests or shares
6                of such entity; or
7                    (e) an entity that is organized outside of
8                the laws of the United States and that
9                satisfies all of the following criteria:
10                        (1) at least 75% of the entity's total
11                    asset value at the close of its taxable
12                    year is represented by real estate assets
13                    (as defined in Section 856(c)(5)(B) of the
14                    Internal Revenue Code, thereby including
15                    shares or certificates of beneficial
16                    interest in any real estate investment
17                    trust), cash and cash equivalents, and
18                    U.S. Government securities;
19                        (2) the entity is not subject to tax on
20                    amounts that are distributed to its
21                    beneficial owners or is exempt from
22                    entity-level taxation;
23                        (3) the entity distributes at least
24                    85% of its taxable income (as computed in
25                    the jurisdiction in which it is organized)
26                    to the holders of its shares or

 

 

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1                    certificates of beneficial interest on an
2                    annual basis;
3                        (4) either (i) the shares or
4                    beneficial interests of the entity are
5                    regularly traded on an established
6                    securities market or (ii) not more than 10%
7                    of the voting power or value in the entity
8                    is held, directly, indirectly, or
9                    constructively, by a single entity or
10                    individual; and
11                        (5) the entity is organized in a
12                    country that has entered into a tax treaty
13                    with the United States; or
14                (ii) during its first taxable year for which it
15            elects to be treated as a real estate investment
16            trust under Section 856(c)(1) of the Internal
17            Revenue Code, a real estate investment trust the
18            certificates of beneficial interest or shares of
19            which are not regularly traded on an established
20            securities market, but only if the certificates of
21            beneficial interest or shares of the real estate
22            investment trust are regularly traded on an
23            established securities market prior to the earlier
24            of the due date (including extensions) for filing
25            its return under this Act for that first taxable
26            year or the date it actually files that return.

 

 

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1            (C) For the purposes of this subsection (1.5), the
2        constructive ownership rules prescribed under Section
3        318(a) of the Internal Revenue Code, as modified by
4        Section 856(d)(5) of the Internal Revenue Code, apply
5        in determining the ownership of stock, assets, or net
6        profits of any person.
7            (D) For the purposes of this item (1.5), for
8        taxable years ending on or after August 16, 2007, the
9        voting power or value of the beneficial interest or
10        shares of a real estate investment trust does not
11        include any voting power or value of beneficial
12        interest or shares in a real estate investment trust
13        held directly or indirectly in a segregated asset
14        account by a life insurance company (as described in
15        Section 817 of the Internal Revenue Code) to the extent
16        such voting power or value is for the benefit of
17        entities or persons who are either immune from taxation
18        or exempt from taxation under subtitle A of the
19        Internal Revenue Code.
20        (2) Commercial domicile. The term "commercial
21    domicile" means the principal place from which the trade or
22    business of the taxpayer is directed or managed.
23        (3) Compensation. The term "compensation" means wages,
24    salaries, commissions and any other form of remuneration
25    paid to employees for personal services.
26        (4) Corporation. The term "corporation" includes

 

 

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1    associations, joint-stock companies, insurance companies
2    and cooperatives. Any entity, including a limited
3    liability company formed under the Illinois Limited
4    Liability Company Act, shall be treated as a corporation if
5    it is so classified for federal income tax purposes.
6        (5) Department. The term "Department" means the
7    Department of Revenue of this State.
8        (6) Director. The term "Director" means the Director of
9    Revenue of this State.
10        (7) Fiduciary. The term "fiduciary" means a guardian,
11    trustee, executor, administrator, receiver, or any person
12    acting in any fiduciary capacity for any person.
13        (8) Financial organization.
14            (A) The term "financial organization" means any
15        bank, bank holding company, trust company, savings
16        bank, industrial bank, land bank, safe deposit
17        company, private banker, savings and loan association,
18        building and loan association, credit union, currency
19        exchange, cooperative bank, small loan company, sales
20        finance company, investment company, or any person
21        which is owned by a bank or bank holding company. For
22        the purpose of this Section a "person" will include
23        only those persons which a bank holding company may
24        acquire and hold an interest in, directly or
25        indirectly, under the provisions of the Bank Holding
26        Company Act of 1956 (12 U.S.C. 1841, et seq.), except

 

 

HB0321- 395 -LRB101 04001 HLH 49009 b

1        where interests in any person must be disposed of
2        within certain required time limits under the Bank
3        Holding Company Act of 1956.
4            (B) For purposes of subparagraph (A) of this
5        paragraph, the term "bank" includes (i) any entity that
6        is regulated by the Comptroller of the Currency under
7        the National Bank Act, or by the Federal Reserve Board,
8        or by the Federal Deposit Insurance Corporation and
9        (ii) any federally or State chartered bank operating as
10        a credit card bank.
11            (C) For purposes of subparagraph (A) of this
12        paragraph, the term "sales finance company" has the
13        meaning provided in the following item (i) or (ii):
14                (i) A person primarily engaged in one or more
15            of the following businesses: the business of
16            purchasing customer receivables, the business of
17            making loans upon the security of customer
18            receivables, the business of making loans for the
19            express purpose of funding purchases of tangible
20            personal property or services by the borrower, or
21            the business of finance leasing. For purposes of
22            this item (i), "customer receivable" means:
23                    (a) a retail installment contract or
24                retail charge agreement within the meaning of
25                the Sales Finance Agency Act, the Retail
26                Installment Sales Act, or the Motor Vehicle

 

 

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1                Retail Installment Sales Act;
2                    (b) an installment, charge, credit, or
3                similar contract or agreement arising from the
4                sale of tangible personal property or services
5                in a transaction involving a deferred payment
6                price payable in one or more installments
7                subsequent to the sale; or
8                    (c) the outstanding balance of a contract
9                or agreement described in provisions (a) or (b)
10                of this item (i).
11                A customer receivable need not provide for
12            payment of interest on deferred payments. A sales
13            finance company may purchase a customer receivable
14            from, or make a loan secured by a customer
15            receivable to, the seller in the original
16            transaction or to a person who purchased the
17            customer receivable directly or indirectly from
18            that seller.
19                (ii) A corporation meeting each of the
20            following criteria:
21                    (a) the corporation must be a member of an
22                "affiliated group" within the meaning of
23                Section 1504(a) of the Internal Revenue Code,
24                determined without regard to Section 1504(b)
25                of the Internal Revenue Code;
26                    (b) more than 50% of the gross income of

 

 

HB0321- 397 -LRB101 04001 HLH 49009 b

1                the corporation for the taxable year must be
2                interest income derived from qualifying loans.
3                A "qualifying loan" is a loan made to a member
4                of the corporation's affiliated group that
5                originates customer receivables (within the
6                meaning of item (i)) or to whom customer
7                receivables originated by a member of the
8                affiliated group have been transferred, to the
9                extent the average outstanding balance of
10                loans from that corporation to members of its
11                affiliated group during the taxable year do not
12                exceed the limitation amount for that
13                corporation. The "limitation amount" for a
14                corporation is the average outstanding
15                balances during the taxable year of customer
16                receivables (within the meaning of item (i))
17                originated by all members of the affiliated
18                group. If the average outstanding balances of
19                the loans made by a corporation to members of
20                its affiliated group exceed the limitation
21                amount, the interest income of that
22                corporation from qualifying loans shall be
23                equal to its interest income from loans to
24                members of its affiliated groups times a
25                fraction equal to the limitation amount
26                divided by the average outstanding balances of

 

 

HB0321- 398 -LRB101 04001 HLH 49009 b

1                the loans made by that corporation to members
2                of its affiliated group;
3                    (c) the total of all shareholder's equity
4                (including, without limitation, paid-in
5                capital on common and preferred stock and
6                retained earnings) of the corporation plus the
7                total of all of its loans, advances, and other
8                obligations payable or owed to members of its
9                affiliated group may not exceed 20% of the
10                total assets of the corporation at any time
11                during the tax year; and
12                    (d) more than 50% of all interest-bearing
13                obligations of the affiliated group payable to
14                persons outside the group determined in
15                accordance with generally accepted accounting
16                principles must be obligations of the
17                corporation.
18            This amendatory Act of the 91st General Assembly is
19        declaratory of existing law.
20            (D) Subparagraphs (B) and (C) of this paragraph are
21        declaratory of existing law and apply retroactively,
22        for all tax years beginning on or before December 31,
23        1996, to all original returns, to all amended returns
24        filed no later than 30 days after the effective date of
25        this amendatory Act of 1996, and to all notices issued
26        on or before the effective date of this amendatory Act

 

 

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1        of 1996 under subsection (a) of Section 903, subsection
2        (a) of Section 904, subsection (e) of Section 909, or
3        Section 912. A taxpayer that is a "financial
4        organization" that engages in any transaction with an
5        affiliate shall be a "financial organization" for all
6        purposes of this Act.
7            (E) For all tax years beginning on or before
8        December 31, 1996, a taxpayer that falls within the
9        definition of a "financial organization" under
10        subparagraphs (B) or (C) of this paragraph, but who
11        does not fall within the definition of a "financial
12        organization" under the Proposed Regulations issued by
13        the Department of Revenue on July 19, 1996, may
14        irrevocably elect to apply the Proposed Regulations
15        for all of those years as though the Proposed
16        Regulations had been lawfully promulgated, adopted,
17        and in effect for all of those years. For purposes of
18        applying subparagraphs (B) or (C) of this paragraph to
19        all of those years, the election allowed by this
20        subparagraph applies only to the taxpayer making the
21        election and to those members of the taxpayer's unitary
22        business group who are ordinarily required to
23        apportion business income under the same subsection of
24        Section 304 of this Act as the taxpayer making the
25        election. No election allowed by this subparagraph
26        shall be made under a claim filed under subsection (d)

 

 

HB0321- 400 -LRB101 04001 HLH 49009 b

1        of Section 909 more than 30 days after the effective
2        date of this amendatory Act of 1996.
3            (F) Finance Leases. For purposes of this
4        subsection, a finance lease shall be treated as a loan
5        or other extension of credit, rather than as a lease,
6        regardless of how the transaction is characterized for
7        any other purpose, including the purposes of any
8        regulatory agency to which the lessor is subject. A
9        finance lease is any transaction in the form of a lease
10        in which the lessee is treated as the owner of the
11        leased asset entitled to any deduction for
12        depreciation allowed under Section 167 of the Internal
13        Revenue Code.
14        (9) Fiscal year. The term "fiscal year" means an
15    accounting period of 12 months ending on the last day of
16    any month other than December.
17        (9.5) Fixed place of business. The term "fixed place of
18    business" has the same meaning as that term is given in
19    Section 864 of the Internal Revenue Code and the related
20    Treasury regulations.
21        (10) Includes and including. The terms "includes" and
22    "including" when used in a definition contained in this Act
23    shall not be deemed to exclude other things otherwise
24    within the meaning of the term defined.
25        (11) Internal Revenue Code. The term "Internal Revenue
26    Code" means the United States Internal Revenue Code of 1954

 

 

HB0321- 401 -LRB101 04001 HLH 49009 b

1    or any successor law or laws relating to federal income
2    taxes in effect for the taxable year.
3        (11.5) Investment partnership.
4            (A) The term "investment partnership" means any
5        entity that is treated as a partnership for federal
6        income tax purposes that meets the following
7        requirements:
8                (i) no less than 90% of the partnership's cost
9            of its total assets consists of qualifying
10            investment securities, deposits at banks or other
11            financial institutions, and office space and
12            equipment reasonably necessary to carry on its
13            activities as an investment partnership;
14                (ii) no less than 90% of its gross income
15            consists of interest, dividends, and gains from
16            the sale or exchange of qualifying investment
17            securities; and
18                (iii) the partnership is not a dealer in
19            qualifying investment securities.
20            (B) For purposes of this paragraph (11.5), the term
21        "qualifying investment securities" includes all of the
22        following:
23                (i) common stock, including preferred or debt
24            securities convertible into common stock, and
25            preferred stock;
26                (ii) bonds, debentures, and other debt

 

 

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1            securities;
2                (iii) foreign and domestic currency deposits
3            secured by federal, state, or local governmental
4            agencies;
5                (iv) mortgage or asset-backed securities
6            secured by federal, state, or local governmental
7            agencies;
8                (v) repurchase agreements and loan
9            participations;
10                (vi) foreign currency exchange contracts and
11            forward and futures contracts on foreign
12            currencies;
13                (vii) stock and bond index securities and
14            futures contracts and other similar financial
15            securities and futures contracts on those
16            securities;
17                (viii) options for the purchase or sale of any
18            of the securities, currencies, contracts, or
19            financial instruments described in items (i) to
20            (vii), inclusive;
21                (ix) regulated futures contracts;
22                (x) commodities (not described in Section
23            1221(a)(1) of the Internal Revenue Code) or
24            futures, forwards, and options with respect to
25            such commodities, provided, however, that any item
26            of a physical commodity to which title is actually

 

 

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1            acquired in the partnership's capacity as a dealer
2            in such commodity shall not be a qualifying
3            investment security;
4                (xi) derivatives; and
5                (xii) a partnership interest in another
6            partnership that is an investment partnership.
7        (12) Mathematical error. The term "mathematical error"
8    includes the following types of errors, omissions, or
9    defects in a return filed by a taxpayer which prevents
10    acceptance of the return as filed for processing:
11            (A) arithmetic errors or incorrect computations on
12        the return or supporting schedules;
13            (B) entries on the wrong lines;
14            (C) omission of required supporting forms or
15        schedules or the omission of the information in whole
16        or in part called for thereon; and
17            (D) an attempt to claim, exclude, deduct, or
18        improperly report, in a manner directly contrary to the
19        provisions of the Act and regulations thereunder any
20        item of income, exemption, deduction, or credit.
21        (13) Nonbusiness income. The term "nonbusiness income"
22    means all income other than business income or
23    compensation.
24        (14) Nonresident. The term "nonresident" means a
25    person who is not a resident.
26        (15) Paid, incurred and accrued. The terms "paid",

 

 

HB0321- 404 -LRB101 04001 HLH 49009 b

1    "incurred" and "accrued" shall be construed according to
2    the method of accounting upon the basis of which the
3    person's base income is computed under this Act.
4        (16) Partnership and partner. The term "partnership"
5    includes a syndicate, group, pool, joint venture or other
6    unincorporated organization, through or by means of which
7    any business, financial operation, or venture is carried
8    on, and which is not, within the meaning of this Act, a
9    trust or estate or a corporation; and the term "partner"
10    includes a member in such syndicate, group, pool, joint
11    venture or organization.
12        The term "partnership" includes any entity, including
13    a limited liability company formed under the Illinois
14    Limited Liability Company Act, classified as a partnership
15    for federal income tax purposes.
16        The term "partnership" does not include a syndicate,
17    group, pool, joint venture, or other unincorporated
18    organization established for the sole purpose of playing
19    the Illinois State Lottery.
20        (17) Part-year resident. The term "part-year resident"
21    means an individual who became a resident during the
22    taxable year or ceased to be a resident during the taxable
23    year. Under Section 1501(a)(20)(A)(i) residence commences
24    with presence in this State for other than a temporary or
25    transitory purpose and ceases with absence from this State
26    for other than a temporary or transitory purpose. Under

 

 

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1    Section 1501(a)(20)(A)(ii) residence commences with the
2    establishment of domicile in this State and ceases with the
3    establishment of domicile in another State.
4        (18) Person. The term "person" shall be construed to
5    mean and include an individual, a trust, estate,
6    partnership, association, firm, company, corporation,
7    limited liability company, or fiduciary. For purposes of
8    Section 1301 and 1302 of this Act, a "person" means (i) an
9    individual, (ii) a corporation, (iii) an officer, agent, or
10    employee of a corporation, (iv) a member, agent or employee
11    of a partnership, or (v) a member, manager, employee,
12    officer, director, or agent of a limited liability company
13    who in such capacity commits an offense specified in
14    Section 1301 and 1302.
15        (18A) Records. The term "records" includes all data
16    maintained by the taxpayer, whether on paper, microfilm,
17    microfiche, or any type of machine-sensible data
18    compilation.
19        (19) Regulations. The term "regulations" includes
20    rules promulgated and forms prescribed by the Department.
21        (20) Resident. The term "resident" means:
22            (A) an individual (i) who is in this State for
23        other than a temporary or transitory purpose during the
24        taxable year; or (ii) who is domiciled in this State
25        but is absent from the State for a temporary or
26        transitory purpose during the taxable year;

 

 

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1            (B) The estate of a decedent who at his or her
2        death was domiciled in this State;
3            (C) A trust created by a will of a decedent who at
4        his death was domiciled in this State; and
5            (D) An irrevocable trust, the grantor of which was
6        domiciled in this State at the time such trust became
7        irrevocable. For purpose of this subparagraph, a trust
8        shall be considered irrevocable to the extent that the
9        grantor is not treated as the owner thereof under
10        Sections 671 through 678 of the Internal Revenue Code.
11        (21) Sales. The term "sales" means all gross receipts
12    of the taxpayer not allocated under Sections 301, 302 and
13    303.
14        (22) State. The term "state" when applied to a
15    jurisdiction other than this State means any state of the
16    United States, the District of Columbia, the Commonwealth
17    of Puerto Rico, any Territory or Possession of the United
18    States, and any foreign country, or any political
19    subdivision of any of the foregoing. For purposes of the
20    foreign tax credit under Section 601, the term "state"
21    means any state of the United States, the District of
22    Columbia, the Commonwealth of Puerto Rico, and any
23    territory or possession of the United States, or any
24    political subdivision of any of the foregoing, effective
25    for tax years ending on or after December 31, 1989.
26        (23) Taxable year. The term "taxable year" means the

 

 

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1    calendar year, or the fiscal year ending during such
2    calendar year, upon the basis of which the base income is
3    computed under this Act. "Taxable year" means, in the case
4    of a return made for a fractional part of a year under the
5    provisions of this Act, the period for which such return is
6    made.
7        (24) Taxpayer. The term "taxpayer" means any person
8    subject to the tax imposed by this Act.
9        (25) International banking facility. The term
10    international banking facility shall have the same meaning
11    as is set forth in the Illinois Banking Act or as is set
12    forth in the laws of the United States or regulations of
13    the Board of Governors of the Federal Reserve System.
14        (26) Income Tax Return Preparer.
15            (A) The term "income tax return preparer" means any
16        person who prepares for compensation, or who employs
17        one or more persons to prepare for compensation, any
18        return of tax imposed by this Act or any claim for
19        refund of tax imposed by this Act. The preparation of a
20        substantial portion of a return or claim for refund
21        shall be treated as the preparation of that return or
22        claim for refund.
23            (B) A person is not an income tax return preparer
24        if all he or she does is
25                (i) furnish typing, reproducing, or other
26            mechanical assistance;

 

 

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1                (ii) prepare returns or claims for refunds for
2            the employer by whom he or she is regularly and
3            continuously employed;
4                (iii) prepare as a fiduciary returns or claims
5            for refunds for any person; or
6                (iv) prepare claims for refunds for a taxpayer
7            in response to any notice of deficiency issued to
8            that taxpayer or in response to any waiver of
9            restriction after the commencement of an audit of
10            that taxpayer or of another taxpayer if a
11            determination in the audit of the other taxpayer
12            directly or indirectly affects the tax liability
13            of the taxpayer whose claims he or she is
14            preparing.
15        (27) Unitary business group.
16            (A) The term "unitary business group" means a group
17        of persons related through common ownership whose
18        business activities are integrated with, dependent
19        upon and contribute to each other. The group will not
20        include those members whose business activity outside
21        the United States is 80% or more of any such member's
22        total business activity; for purposes of this
23        paragraph and clause (a)(3)(B)(ii) of Section 304,
24        business activity within the United States shall be
25        measured by means of the factors ordinarily applicable
26        under subsections (a), (b), (c), (d), or (h) of Section

 

 

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1        304 except that, in the case of members ordinarily
2        required to apportion business income by means of the 3
3        factor formula of property, payroll and sales
4        specified in subsection (a) of Section 304, including
5        the formula as weighted in subsection (h) of Section
6        304, such members shall not use the sales factor in the
7        computation and the results of the property and payroll
8        factor computations of subsection (a) of Section 304
9        shall be divided by 2 (by one if either the property or
10        payroll factor has a denominator of zero). The
11        computation required by the preceding sentence shall,
12        in each case, involve the division of the member's
13        property, payroll, or revenue miles in the United
14        States, insurance premiums on property or risk in the
15        United States, or financial organization business
16        income from sources within the United States, as the
17        case may be, by the respective worldwide figures for
18        such items. Common ownership in the case of
19        corporations is the direct or indirect control or
20        ownership of more than 50% of the outstanding voting
21        stock of the persons carrying on unitary business
22        activity. Unitary business activity can ordinarily be
23        illustrated where the activities of the members are:
24        (1) in the same general line (such as manufacturing,
25        wholesaling, retailing of tangible personal property,
26        insurance, transportation or finance); or (2) are

 

 

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1        steps in a vertically structured enterprise or process
2        (such as the steps involved in the production of
3        natural resources, which might include exploration,
4        mining, refining, and marketing); and, in either
5        instance, the members are functionally integrated
6        through the exercise of strong centralized management
7        (where, for example, authority over such matters as
8        purchasing, financing, tax compliance, product line,
9        personnel, marketing and capital investment is not
10        left to each member).
11            (B) In no event, for taxable years ending prior to
12        December 31, 2017 or ending after December 31, 2018,
13        shall any unitary business group include members which
14        are ordinarily required to apportion business income
15        under different subsections of Section 304 except that
16        for tax years ending on or after December 31, 1987 this
17        prohibition shall not apply to a holding company that
18        would otherwise be a member of a unitary business group
19        with taxpayers that apportion business income under
20        any of subsections (b), (c), (c-1), or (d) of Section
21        304. If a unitary business group would, but for the
22        preceding sentence, include members that are
23        ordinarily required to apportion business income under
24        different subsections of Section 304, then for each
25        subsection of Section 304 for which there are two or
26        more members, there shall be a separate unitary

 

 

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1        business group composed of such members. For purposes
2        of the preceding two sentences, a member is "ordinarily
3        required to apportion business income" under a
4        particular subsection of Section 304 if it would be
5        required to use the apportionment method prescribed by
6        such subsection except for the fact that it derives
7        business income solely from Illinois. As used in this
8        paragraph, for taxable years ending before December
9        31, 2017 or ending after December 31, 2018, the phrase
10        "United States" means only the 50 states and the
11        District of Columbia, but does not include any
12        territory or possession of the United States or any
13        area over which the United States has asserted
14        jurisdiction or claimed exclusive rights with respect
15        to the exploration for or exploitation of natural
16        resources. For taxable years ending on or after
17        December 31, 2017 and ending on or before December 31,
18        2018, the phrase "United States", as used in this
19        paragraph, means only the 50 states, the District of
20        Columbia, and any area over which the United States has
21        asserted jurisdiction or claimed exclusive rights with
22        respect to the exploration for or exploitation of
23        natural resources, but does not include any territory
24        or possession of the United States.
25            (C) Holding companies.
26                (i) For purposes of this subparagraph, a

 

 

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1            "holding company" is a corporation (other than a
2            corporation that is a financial organization under
3            paragraph (8) of this subsection (a) of Section
4            1501 because it is a bank holding company under the
5            provisions of the Bank Holding Company Act of 1956
6            (12 U.S.C. 1841, et seq.) or because it is owned by
7            a bank or a bank holding company) that owns a
8            controlling interest in one or more other
9            taxpayers ("controlled taxpayers"); that, during
10            the period that includes the taxable year and the 2
11            immediately preceding taxable years or, if the
12            corporation was formed during the current or
13            immediately preceding taxable year, the taxable
14            years in which the corporation has been in
15            existence, derived substantially all its gross
16            income from dividends, interest, rents, royalties,
17            fees or other charges received from controlled
18            taxpayers for the provision of services, and gains
19            on the sale or other disposition of interests in
20            controlled taxpayers or in property leased or
21            licensed to controlled taxpayers or used by the
22            taxpayer in providing services to controlled
23            taxpayers; and that incurs no substantial expenses
24            other than expenses (including interest and other
25            costs of borrowing) incurred in connection with
26            the acquisition and holding of interests in

 

 

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1            controlled taxpayers and in the provision of
2            services to controlled taxpayers or in the leasing
3            or licensing of property to controlled taxpayers.
4                (ii) The income of a holding company which is a
5            member of more than one unitary business group
6            shall be included in each unitary business group of
7            which it is a member on a pro rata basis, by
8            including in each unitary business group that
9            portion of the base income of the holding company
10            that bears the same proportion to the total base
11            income of the holding company as the gross receipts
12            of the unitary business group bears to the combined
13            gross receipts of all unitary business groups (in
14            both cases without regard to the holding company)
15            or on any other reasonable basis, consistently
16            applied.
17                (iii) A holding company shall apportion its
18            business income under the subsection of Section
19            304 used by the other members of its unitary
20            business group. The apportionment factors of a
21            holding company which would be a member of more
22            than one unitary business group shall be included
23            with the apportionment factors of each unitary
24            business group of which it is a member on a pro
25            rata basis using the same method used in clause
26            (ii).

 

 

HB0321- 414 -LRB101 04001 HLH 49009 b

1                (iv) The provisions of this subparagraph (C)
2            are intended to clarify existing law.
3            (D) If including the base income and factors of a
4        holding company in more than one unitary business group
5        under subparagraph (C) does not fairly reflect the
6        degree of integration between the holding company and
7        one or more of the unitary business groups, the
8        dependence of the holding company and one or more of
9        the unitary business groups upon each other, or the
10        contributions between the holding company and one or
11        more of the unitary business groups, the holding
12        company may petition the Director, under the
13        procedures provided under Section 304(f), for
14        permission to include all base income and factors of
15        the holding company only with members of a unitary
16        business group apportioning their business income
17        under one subsection of subsections (a), (b), (c), or
18        (d) of Section 304. If the petition is granted, the
19        holding company shall be included in a unitary business
20        group only with persons apportioning their business
21        income under the selected subsection of Section 304
22        until the Director grants a petition of the holding
23        company either to be included in more than one unitary
24        business group under subparagraph (C) or to include its
25        base income and factors only with members of a unitary
26        business group apportioning their business income

 

 

HB0321- 415 -LRB101 04001 HLH 49009 b

1        under a different subsection of Section 304.
2            (E) If the unitary business group members'
3        accounting periods differ, the common parent's
4        accounting period or, if there is no common parent, the
5        accounting period of the member that is expected to
6        have, on a recurring basis, the greatest Illinois
7        income tax liability must be used to determine whether
8        to use the apportionment method provided in subsection
9        (a) or subsection (h) of Section 304. The prohibition
10        against membership in a unitary business group for
11        taxpayers ordinarily required to apportion income
12        under different subsections of Section 304 does not
13        apply to taxpayers required to apportion income under
14        subsection (a) and subsection (h) of Section 304. The
15        provisions of this amendatory Act of 1998 apply to tax
16        years ending on or after December 31, 1998.
17        (28) Subchapter S corporation. The term "Subchapter S
18    corporation" means a corporation for which there is in
19    effect an election under Section 1362 of the Internal
20    Revenue Code, or for which there is a federal election to
21    opt out of the provisions of the Subchapter S Revision Act
22    of 1982 and have applied instead the prior federal
23    Subchapter S rules as in effect on July 1, 1982.
24        (30) Foreign person. The term "foreign person" means
25    any person who is a nonresident alien individual and any
26    nonindividual entity, regardless of where created or

 

 

HB0321- 416 -LRB101 04001 HLH 49009 b

1    organized, whose business activity outside the United
2    States is 80% or more of the entity's total business
3    activity.
 
4    (b) Other definitions.
5        (1) Words denoting number, gender, and so forth, when
6    used in this Act, where not otherwise distinctly expressed
7    or manifestly incompatible with the intent thereof:
8            (A) Words importing the singular include and apply
9        to several persons, parties or things;
10            (B) Words importing the plural include the
11        singular; and
12            (C) Words importing the masculine gender include
13        the feminine as well.
14        (2) "Company" or "association" as including successors
15    and assigns. The word "company" or "association", when used
16    in reference to a corporation, shall be deemed to embrace
17    the words "successors and assigns of such company or
18    association", and in like manner as if these last-named
19    words, or words of similar import, were expressed.
20        (3) Other terms. Any term used in any Section of this
21    Act with respect to the application of, or in connection
22    with, the provisions of any other Section of this Act shall
23    have the same meaning as in such other Section.
24(Source: P.A. 99-213, eff. 7-31-15; 100-22, eff. 7-6-17.)
 

 

 

HB0321- 417 -LRB101 04001 HLH 49009 b

1    Section 130. The Retailers' Occupation Tax Act is amended
2by changing Sections 5a, 5b, and 5c as follows:
 
3    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
4    Sec. 5a. The Department shall have a lien for the tax
5herein imposed or any portion thereof, or for any penalty
6provided for in this Act, or for any amount of interest which
7may be due as provided for in Section 5 of this Act, upon all
8the real and personal property of any person to whom a final
9assessment or revised final assessment has been issued as
10provided in this Act, or whenever a return is filed without
11payment of the tax or penalty shown therein to be due,
12including all such property of such persons acquired after
13receipt of such assessment or filing of such return. The
14taxpayer is liable for the filing fee incurred imposed by the
15Department for filing the lien and the filing fee incurred
16imposed by the Department to file the release of that the lien.
17The filing fees shall be paid to the Department in addition to
18payment of the tax, penalty, and interest included in the
19amount of the lien.
20    However, where the lien arises because of the issuance of a
21final assessment or revised final assessment by the Department,
22such lien shall not attach and the notice hereinafter referred
23to in this Section shall not be filed until all proceedings in
24court for review of such final assessment or revised final
25assessment have terminated or the time for the taking thereof

 

 

HB0321- 418 -LRB101 04001 HLH 49009 b

1has expired without such proceedings being instituted.
2    Upon the granting of a rehearing or departmental review
3pursuant to Section 4 or Section 5 of this Act after a lien has
4attached, such lien shall remain in full force except to the
5extent to which the final assessment may be reduced by a
6revised final assessment following such rehearing or review.
7    The lien created by the issuance of a final assessment
8shall terminate unless a notice of lien is filed, as provided
9in Section 5b hereof, within 3 years from the date all
10proceedings in court for the review of such final assessment
11have terminated or the time for the taking thereof has expired
12without such proceedings being instituted, or (in the case of a
13revised final assessment issued pursuant to a rehearing or
14departmental review) within 3 years from the date all
15proceedings in court for the review of such revised final
16assessment have terminated or the time for the taking thereof
17has expired without such proceedings being instituted; and
18where the lien results from the filing of a return without
19payment of the tax or penalty shown therein to be due, the lien
20shall terminate unless a notice of lien is filed, as provided
21in Section 5b hereof, within 3 years from the date when such
22return is filed with the Department: Provided that the time
23limitation period on the Department's right to file a notice of
24lien shall not run (1) during any period of time in which the
25order of any court has the effect of enjoining or restraining
26the Department from filing such notice of lien, or (2) during

 

 

HB0321- 419 -LRB101 04001 HLH 49009 b

1the term of a repayment plan that taxpayer has entered into
2with the Department, as long as taxpayer remains in compliance
3with the terms of the repayment plan.
4    If the Department finds that a taxpayer is about to depart
5from the State, or to conceal himself or his property, or to do
6any other act tending to prejudice or to render wholly or
7partly ineffectual proceedings to collect such tax unless such
8proceedings are brought without delay, or if the Department
9finds that the collection of the amount due from any taxpayer
10will be jeopardized by delay, the Department shall give the
11taxpayer notice of such findings and shall make demand for
12immediate return and payment of such tax, whereupon such tax
13shall become immediately due and payable. If the taxpayer,
14within 5 days after such notice (or within such extension of
15time as the Department may grant), does not comply with such
16notice or show to the Department that the findings in such
17notice are erroneous, the Department may file a notice of
18jeopardy assessment lien in the office of the recorder of the
19county in which any property of the taxpayer may be located
20State Tax Lien Registry and shall notify the taxpayer of such
21filing. Such jeopardy assessment lien shall have the same scope
22and effect as the statutory lien hereinbefore provided for in
23this Section.
24    If the taxpayer believes that he does not owe some or all
25of the tax for which the jeopardy assessment lien against him
26has been filed, or that no jeopardy to the revenue in fact

 

 

HB0321- 420 -LRB101 04001 HLH 49009 b

1exists, he may protest within 20 days after being notified by
2the Department of the filing of such jeopardy assessment lien
3and request a hearing, whereupon the Department shall hold a
4hearing in conformity with the provisions of this Act and,
5pursuant thereto, shall notify the taxpayer of its findings as
6to whether or not such jeopardy assessment lien will be
7released. If not, and if the taxpayer is aggrieved by this
8decision, he may file an action for judicial review of such
9final determination of the Department in accordance with
10Section 12 of this Act and the Administrative Review Law.
11    On and after July 1, 2013, protests concerning matters that
12are subject to the jurisdiction of the Illinois Independent Tax
13Tribunal shall be filed with the Tribunal, and hearings on
14those matters shall be held before the Tribunal in accordance
15with the Illinois Independent Tax Tribunal Act of 2012. The
16Tribunal shall notify the taxpayer of its findings as to
17whether or not such jeopardy assessment lien will be released.
18If not, and if the taxpayer is aggrieved by this decision, he
19may file an action for judicial review of such final
20determination of the Department in accordance with Section 12
21of this Act and the Illinois Independent Tax Tribunal Act of
222012.
23    With respect to protests filed with the Department prior to
24July 1, 2013 that would otherwise be subject to the
25jurisdiction of the Illinois Independent Tax Tribunal, the
26taxpayer may elect to be subject to the provisions of the

 

 

HB0321- 421 -LRB101 04001 HLH 49009 b

1Illinois Independent Tax Tribunal Act of 2012 at any time on or
2after July 1, 2013, but not later than 30 days after the date
3on which the protest was filed. If made, the election shall be
4irrevocable.
5    If, pursuant to such hearing (or after an independent
6determination of the facts by the Department without a
7hearing), the Department or the Tribunal determines that some
8or all of the tax covered by the jeopardy assessment lien is
9not owed by the taxpayer, or that no jeopardy to the revenue
10exists, or if on judicial review the final judgment of the
11court is that the taxpayer does not owe some or all of the tax
12covered by the jeopardy assessment lien against him, or that no
13jeopardy to the revenue exists, the Department shall release
14its jeopardy assessment lien to the extent of such finding of
15nonliability for the tax, or to the extent of such finding of
16no jeopardy to the revenue.
17    The Department shall also release its jeopardy assessment
18lien against the taxpayer whenever the tax and penalty covered
19by such lien, plus any interest which may be due, are paid and
20the taxpayer has paid the Department in cash or by guaranteed
21remittance an amount representing the filing fee for the lien
22and the filing fee for the release of that lien. The Department
23shall file that release of lien with the recorder of the county
24where that lien was filed in the State Tax Lien Registry.
25    Nothing in this Section shall be construed to give the
26Department a preference over the rights of any bona fide

 

 

HB0321- 422 -LRB101 04001 HLH 49009 b

1purchaser, holder of a security interest, mechanics
2lienholder, mortgagee, or judgment lien creditor arising prior
3to the filing of a regular notice of lien or a notice of
4jeopardy assessment lien in the office of the recorder in the
5county in which the property subject to the lien is located
6State Tax Lien Registry: Provided, however, that the word "bona
7fide", as used in this Section shall not include any mortgage
8of real or personal property or any other credit transaction
9that results in the mortgagee or the holder of the security
10acting as trustee for unsecured creditors of the taxpayer
11mentioned in the notice of lien who executed such chattel or
12real property mortgage or the document evidencing such credit
13transaction. Such lien shall be inferior to the lien of general
14taxes, special assessments and special taxes heretofore or
15hereafter levied by any political subdivision of this State.
16    In case title to land to be affected by the notice of lien
17or notice of jeopardy assessment lien is registered under the
18provisions of "An Act concerning land titles", approved May 1,
191897, as amended, such notice shall also be filed in the office
20of the Registrar of Titles of the county within which the
21property subject to the lien is situated and shall be entered
22upon the register of titles as a memorial or charge upon each
23folium of the register of titles affected by such notice State
24Tax Lien Registry, and the Department shall not have a
25preference over the rights of any bona fide purchaser,
26mortgagee, judgment creditor or other lien holder arising prior

 

 

HB0321- 423 -LRB101 04001 HLH 49009 b

1to the registration of such notice: Provided, however, that the
2word "bona fide" shall not include any mortgage of real or
3personal property or any other credit transaction that results
4in the mortgagee or the holder of the security acting as
5trustee for unsecured creditors of the taxpayer mentioned in
6the notice of lien who executed such chattel or real property
7mortgage or the document evidencing such credit transaction.
8    Such regular lien or jeopardy assessment lien shall not be
9effective against any purchaser with respect to any item in a
10retailer's stock in trade purchased from the retailer in the
11usual course of such retailer's business.
12(Source: P.A. 100-22, eff. 1-1-18.)
 
13    (35 ILCS 120/5b)  (from Ch. 120, par. 444b)
14    Sec. 5b. Notice of lien State Tax Lien Index. The recorder
15of each county shall procure a file labeled "State Tax Lien
16Notices" and an index book labeled "State Tax Lien Index". When
17notice of any lien or jeopardy assessment lien is presented to
18him for filing, he shall file it in numerical order in the file
19and shall enter it alphabetically in the index. The entry shall
20show the name and last known business address of the person
21named in the notice, the serial number of the notice, the date
22and hour of filing, whether it is a regular lien or a jeopardy
23assessment lien, and the amount of tax and penalty due and
24unpaid, plus the amount of interest due under Section 5 of this
25Act at the time when the notice of lien or jeopardy assessment

 

 

HB0321- 424 -LRB101 04001 HLH 49009 b

1lien is filed.
2    No recorder or registrar of titles of any county shall
3require that the Department pay any costs or fees in connection
4with recordation of any notice or other document filed by the
5Department under this Act at the time such notice or other
6document is presented for recordation. The recorder or
7registrar of each county, in order to receive payment for fees
8or costs incurred by the Department, shall present the
9Department with monthly statements indicating the amount of
10fees and costs incurred by the Department and for which no
11payment has been received. The Department of Revenue shall
12maintain a State Tax Lien Index of all tax liens filed in the
13State Tax Lien Registry as provided for by the State Tax Lien
14Registration Act.
15    A notice of lien may be filed after the issuance of a
16revised final assessment pursuant to a rehearing or
17departmental review under Section 4 or Section 5 of this Act.
18    When the lien obtained pursuant to this Act has been
19satisfied and the taxpayer has paid the Department in cash or
20by guaranteed remittance an amount representing the filing fee
21for the lien and the filing fee for the release of that lien,
22the Department shall issue a release of lien and file that
23release of lien with the recorder of the county where that lien
24was filed in the State Tax Lien Registry. The release of lien
25shall contain in legible letters a statement as follows:
26    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL

 

 

HB0321- 425 -LRB101 04001 HLH 49009 b

1    BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN
2WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
3    When a certificate of complete or partial release of lien
4issued by the Department is presented for filing in the office
5of the recorder or Registrar of Titles where a notice of lien
6or notice of jeopardy assessment lien was filed, the recorder,
7in the case of nonregistered property, filed in the State Tax
8Lien Registry, the Department of Revenue shall permanently
9attach the certificate of release to the notice of lien or
10notice of jeopardy assessment lien and shall enter the
11certificate of release and the date in the "State Tax Lien
12Index" on the line where the notice of lien or notice of
13jeopardy assessment lien is entered.
14    In the case of registered property, the Registrar of Titles
15shall file and enter upon each folium of the register of titles
16affected thereby a memorial of the certificate of release which
17memorial when so entered shall act as a release pro tanto of
18any memorial of such notice of lien or notice of jeopardy
19assessment lien previously filed and registered.
20(Source: P.A. 100-22, eff. 1-1-18.)
 
21    (35 ILCS 120/5c)  (from Ch. 120, par. 444c)
22    Sec. 5c. Upon payment by the taxpayer to the Department in
23cash or by guaranteed remittance of an amount representing the
24filing fee for the lien and the filing fee for the release of
25that lien, the Department shall issue a certificate of complete

 

 

HB0321- 426 -LRB101 04001 HLH 49009 b

1or partial release of the lien and file that complete or
2partial release of lien with the recorder of the county where
3the lien was filed in the State Tax Lien Registry:
4        (a) to the extent that the fair market value of any
5    property subject to the lien exceeds the amount of the lien
6    plus the amount of all prior liens upon such property;
7        (b) to the extent that such lien shall become
8    unenforceable;
9        (c) to the extent that the amount of such lien is paid
10    by the retailer whose property is subject to such lien,
11    together with any interest which may become due under
12    Section 5 of this Act between the date when the notice of
13    lien is filed and the date when the amount of such lien is
14    paid;
15        (d) to the extent that there is furnished to the
16    Department on a form to be approved and with a surety or
17    sureties satisfactory to the Department a bond that is
18    conditioned upon the payment of the amount of such lien,
19    together with any interest which may become due under
20    Section 5 of this Act after the notice of lien is filed,
21    but before the amount thereof is fully paid;
22        (e) to the extent and under the circumstances specified
23    in Section 5a of this Act in the case of jeopardy
24    assessment liens;
25        (f) to the extent to which an assessment is reduced
26    pursuant to a rehearing or departmental review under

 

 

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1    Section 4 or Section 5 of this Act.
2    A certificate of complete or partial release of any lien
3shall be held conclusive that the lien upon the property
4covered by the certificate is extinguished to the extent
5indicated by such certificate.
6(Source: P.A. 100-22, eff. 1-1-18.)
 
7    Section 135. The Cannabis and Controlled Substances Tax Act
8is amended by changing Sections 16, 17, and 19 as follows:
 
9    (35 ILCS 520/16)  (from Ch. 120, par. 2166)
10    Sec. 16. All assessments are jeopardy assessments - lien.
11    (a) Assessment. An assessment for a dealer not possessing
12valid stamps or other official indicia showing that the tax has
13been paid shall be considered a jeopardy assessment or
14collection, as provided by Section 1102 of the Illinois Income
15Tax Act. The Department shall determine and assess a tax and
16applicable penalties and interest according to the best
17judgment and information available to the Department, which
18amount so fixed by the Department shall be prima facie correct
19and shall be prima facie evidence of the correctness of the
20amount of tax due, as shown in such determination. When,
21according to the best judgment and information available to the
22Department with regard to all real and personal property and
23rights to property of the dealer, there is no reasonable
24expectation of collection of the amount of tax and penalty to

 

 

HB0321- 428 -LRB101 04001 HLH 49009 b

1be assessed, the Department may issue an assessment under this
2Section for the amount of tax without penalty.
3    (b) Filing of lien. Upon issuance of a jeopardy assessment
4as provided by subsection (a) of this Section, the Department
5may file a notice of jeopardy assessment lien in the office of
6the recorder of the county in which any property of the
7taxpayer may be located State Tax Lien Registry and shall
8notify the taxpayer of such filing.
9    (c) Protest. If the taxpayer believes that he does not owe
10some or all of the amount for which the jeopardy assessment
11lien against him has been filed, he may protest within 20 days
12after being notified by the Department of the filing of such
13jeopardy assessment lien and request a hearing, whereupon the
14Department shall hold a hearing in conformity with the
15provisions of Section 908 of the Illinois Income Tax Act and,
16pursuant thereto, shall notify the taxpayer of its decision as
17to whether or not such jeopardy assessment lien will be
18released.
19    After the expiration of the period within which the person
20assessed may file an action for judicial review without such
21action being filed, a certified copy of the final assessment or
22revised final assessment of the Department may be filed with
23the Circuit Court of the county in which the dealer resides, or
24of Cook County in the case of a dealer who does not reside in
25this State, or in the county where the violation of this Act
26took place. The certified copy of the final assessment or

 

 

HB0321- 429 -LRB101 04001 HLH 49009 b

1revised final assessment shall be accompanied by a
2certification which recites facts that are sufficient to show
3that the Department complied with the jurisdictional
4requirements of the Act in arriving at its final assessment or
5its revised final assessment and that the dealer had this
6opportunity for an administrative hearing and for judicial
7review, whether he availed himself or herself of either or both
8of these opportunities or not. If the court is satisfied that
9the Department complied with the jurisdictional requirements
10of the Act in arriving at its final assessment or its revised
11final assessment and that the taxpayer had his opportunity for
12an administrative hearing and for judicial review, whether he
13availed himself of either or both of these opportunities or
14not, the court shall render judgment in favor of the Department
15and against the taxpayer for the amount shown to be due by the
16final assessment or the revised final assessment, plus any
17interest which may be due, and such judgment shall be entered
18in the judgment docket of the court. Such judgment shall bear
19the same rate of interest and shall have the same effect as
20other judgments. The judgment may be enforced, and all laws
21applicable to sales for the enforcement of a judgment shall be
22applicable to sales made under such judgments. The Department
23shall file the certified copy of its assessment, as herein
24provided, with the Circuit Court within 2 years after such
25assessment becomes final except when the taxpayer consents in
26writing to an extension of such filing period, and except that

 

 

HB0321- 430 -LRB101 04001 HLH 49009 b

1the time limitation period on the Department's right to file
2the certified copy of its assessment with the Circuit Court
3shall not run during any period of time in which the order of
4any court has the effect of enjoining or restraining the
5Department from filing such certified copy of its assessment
6with the Circuit Court.
7    If, when the cause of action for a proceeding in court
8accrues against a person, he or she is out of the State, the
9action may be commenced within the times herein limited, after
10his or her coming into or returning to the State; and if, after
11the cause of action accrues, he or she departs from and remains
12out of the State, the time of his or her absence from the
13State, the time of his or her absence is no part of the time
14limited for the commencement of the action; but the foregoing
15provisions concerning absence from the State shall not apply to
16any case in which, at the time the cause of action accrues, the
17party against whom the cause of action accrues is not a
18resident of this State. The time within which a court action is
19to be commenced by the Department hereunder shall not run from
20the date the taxpayer files a petition in bankruptcy under the
21Federal Bankruptcy Act until 30 days after notice of
22termination or expiration of the automatic stay imposed by the
23Federal Bankruptcy Act.
24    No claim shall be filed against the estate of any deceased
25person or any person under legal disability for any tax or
26penalty or part of either, or interest, except in the manner

 

 

HB0321- 431 -LRB101 04001 HLH 49009 b

1prescribed and within the time limited by the Probate Act of
21975, as amended.
3    The collection of tax or penalty or interest by any means
4provided for herein shall not be a bar to any prosecution under
5this Act.
6    In addition to any penalty provided for in this Act, any
7amount of tax which is not paid when due shall bear interest at
8the rate determined in accordance with the Uniform Penalty and
9Interest Act, per month or fraction thereof from the date when
10such tax becomes past due until such tax is paid or a judgment
11therefor is obtained by the Department. If the time for making
12or completing an audit of a taxpayer's books and records is
13extended with the taxpayer's consent, at the request of and for
14the convenience of the Department, beyond the date on which the
15statute of limitations upon the issuance of a notice of tax
16liability by the Department otherwise run, no interest shall
17accrue during the period of such extension. Interest shall be
18collected in the same manner and as part of the tax.
19    If the Department determines that an amount of tax or
20penalty or interest was incorrectly assessed, whether as the
21result of a mistake of fact or an error of law, the Department
22shall waive the amount of tax or penalty or interest that
23accrued due to the incorrect assessment.
24(Source: P.A. 100-22, eff. 1-1-18.)
 
25    (35 ILCS 520/17)  (from Ch. 120, par. 2167)

 

 

HB0321- 432 -LRB101 04001 HLH 49009 b

1    Sec. 17. Filing and priority of liens.
2    (a) Filing with Recorder in the State Tax Lien Registry.
3Nothing in this Act shall be construed to give the Department a
4preference over the rights of any bona fide purchaser, holder
5of a security interest, mechanics lienholder, mortgagee, or
6judgment lien creditor arising prior to the filing of a regular
7notice of lien or a notice of jeopardy assessment lien in the
8office of the recorder in the county in which the property
9subject to the lien is located State Tax Lien Registry. For
10purposes of this section, the term "bona fide," shall not
11include any mortgage of real or personal property or any other
12credit transaction that results in the mortgagee or the holder
13of the security acting as trustee for unsecured creditors of
14the taxpayer mentioned in the notice of lien who executed such
15chattel or real property mortgage or the document evidencing
16such credit transaction. Such lien shall be inferior to the
17lien of general taxes, special assessments and special taxes
18heretofore or hereafter levied by any political subdivision of
19this State.
20    (b) Filing with Registrar. In case title to land to be
21affected by the notice of lien or notice of jeopardy assessment
22lien is registered under the provisions of "An Act concerning
23land titles," approved May 1, 1897, as amended, such notice
24shall also be filed in the office of the Registrar of Titles of
25the county within which the property subject to the lien is
26situated and shall be entered upon the register of titles as a

 

 

HB0321- 433 -LRB101 04001 HLH 49009 b

1memorial of charge upon each folium of the register of titles
2affected by such notice State Tax Lien Registry, and the
3Department shall not have a preference over the rights of any
4bona fide purchaser, mortgagee, judgment creditor or other lien
5holder arising prior to the registration of such notice.
6    (c) No recorder or registrar of titles of any county shall
7require that the Department pay any costs or fees in connection
8with recordation of any notice or other document filed by the
9Department under this Act at the time such notice or other
10document is presented for recordation. (Blank).
11(Source: P.A. 100-22, eff. 1-1-18.)
 
12    (35 ILCS 520/19)  (from Ch. 120, par. 2169)
13    Sec. 19. Release of liens.
14    (a) In general. The Department shall release all or any
15portion of the property subject to any lien provided for in
16this Act if it determines that the release will not endanger or
17jeopardize the collection of the amount secured thereby. The
18Department shall release its lien on property which is the
19subject of forfeiture proceedings under the Narcotics Profit
20Forfeiture Act, the Criminal Code of 2012, or the Drug Asset
21Forfeiture Procedure Act until all forfeiture proceedings are
22concluded. Property forfeited shall not be subject to a lien
23under this Act.
24    (b) Judicial determination. If on judicial review the final
25judgment of the court is that the taxpayer does not owe some or

 

 

HB0321- 434 -LRB101 04001 HLH 49009 b

1all of the amount secured by the lien against him, or that no
2jeopardy to the revenue exists, the Department shall release
3its lien to the extent of such finding of nonliability, or to
4the extent of such finding of no jeopardy to the revenue.
5    (c) Payment. The Department shall also release its jeopardy
6assessment lien against the taxpayer whenever the tax and
7penalty covered by such lien, plus any interest which may be
8due, are paid.
9    (d) Certificate of release. The Department shall issue a
10certificate of complete or partial release of the lien:
11        (1) To the extent that the fair market value of any
12    property subject to the lien exceeds the amount of the lien
13    plus the amount of all prior liens upon such property;
14        (2) To the extent that such lien shall become
15    unenforceable;
16        (3) To the extent that the amount of such lien is paid
17    by the person whose property is subject to such lien,
18    together with any interest and penalty which may become due
19    under this Act between the date when the notice of lien is
20    filed and the date when the amount of such lien is paid;
21        (4) To the extent and under the circumstances specified
22    in this Section. A certificate of complete or partial
23    release of any lien shall be held conclusive that the lien
24    upon the property covered by the certificate is
25    extinguished to the extent indicated by such certificate.
26    Such release of lien shall be issued to the person, or his

 

 

HB0321- 435 -LRB101 04001 HLH 49009 b

1agent, against whom the lien was obtained and shall contain in
2legible letters a statement as follows:
3    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
4    BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN
5WHOSE OFFICE THE LIEN WAS FILED IN THE STATE TAX LIEN REGISTRY.
6    (e) Filing. When a certificate of complete or partial
7release of lien issued by the Department is presented for
8filing in the office of the recorder or Registrar of Titles
9where a notice of lien or notice of jeopardy assessment lien
10was filed: filed in the State Tax Lien Registry, the Department
11        (1) The recorder, in the case of nonregistered
12    property, shall permanently attach the certificate of
13    release to the notice of lien or notice of jeopardy
14    assessment lien and shall enter the certificate of release
15    and the date in the "State Tax Lien Index" on the line
16    where the notice of lien or notice of jeopardy assessment
17    lien is entered; and .
18        (2) In the case of registered property, the Registrar
19    of Titles shall file and enter upon each folium of the
20    register of titles affected thereby a memorial of the
21    certificate of release which memorial when so entered shall
22    act as a release pro tanto of any memorial of such notice
23    of lien or notice of jeopardy assessment lien previously
24    filed and registered.
25(Source: P.A. 100-22, eff. 1-1-18.)
 

 

 

HB0321- 436 -LRB101 04001 HLH 49009 b

1    Section 140. The Illinois Municipal Code is amended by
2changing Section 8-3-15 as follows:
 
3    (65 ILCS 5/8-3-15)  (from Ch. 24, par. 8-3-15)
4    Sec. 8-3-15. The corporate authorities of each
5municipality shall have all powers necessary to enforce the
6collection of any tax imposed and collected by such
7municipality, whether such tax was imposed pursuant to its home
8rule powers or statutory authorization, including but not
9limited to subpoena power and the power to create and enforce
10liens. No such lien shall affect the rights of bona fide
11purchasers, mortgagees, judgment creditors or other
12lienholders who acquire their interests in such property prior
13to the time a notice of such lien is placed on record in the
14office of the recorder or the registrar of titles of the county
15in which the property is located. However, nothing in this
16Section shall permit a municipality to place a lien upon
17property not located or found within its corporate boundaries.
18A municipality creating a lien may provide that the procedures
19for its notice and enforcement shall be the same as that
20provided in the Retailers' Occupation Tax Act, as now or
21hereafter amended that Act existed prior to the adoption of the
22State Tax Lien Registration Act, for State tax liens, and any
23recorder or registrar of titles with whom a notice of such lien
24is filed shall treat such lien as a State tax lien for
25recording purposes.

 

 

HB0321- 437 -LRB101 04001 HLH 49009 b

1(Source: P.A. 100-22, eff. 1-1-18.)
 
2    Section 145. The Title Insurance Act is amended by changing
3Section 22 as follows:
 
4    (215 ILCS 155/22)  (from Ch. 73, par. 1422)
5    Sec. 22. Tax indemnity; notice. A corporation authorized to
6do business under this Act shall notify the Director of Revenue
7of the State of Illinois, by notice directed to his office in
8the City of Chicago, of each trust account or similar account
9established which relates to title exceptions due to a judgment
10lien or any other lien arising under any tax Act administered
11by the Illinois Department of Revenue, when notice of such lien
12has been filed with the registrar of titles or recorder or in
13the State Tax Lien Registry, as the case may be, in the manner
14prescribed by law. Such notice shall contain the name, address,
15and tax identification number of the debtor, the permanent real
16estate index numbers, if any, and the address and legal
17description of the property, the type of lien claimed by the
18Department and identification of any trust fund or similar
19account held by such corporation or any agent thereof relating
20to such lien. Any trust fund or similar account established by
21such corporation or agent relating to any such lien shall
22include provisions requiring such corporation or agent to apply
23such fund in satisfaction or release of such lien upon written
24demand therefor by the Department of Revenue.

 

 

HB0321- 438 -LRB101 04001 HLH 49009 b

1(Source: P.A. 100-22, eff. 1-1-18.)
 
2    Section 150. The Use Tax Act is amended by changing
3Sections 3-5 and 3-50 as follows:
 
4    (35 ILCS 105/3-5)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a not-for-profit
15Illinois county fair association for use in conducting,
16operating, or promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts or
18cultural organization that establishes, by proof required by
19the Department by rule, that it has received an exemption under
20Section 501(c)(3) of the Internal Revenue Code and that is
21organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony

 

 

HB0321- 439 -LRB101 04001 HLH 49009 b

1orchestras and theatrical groups, arts and cultural service
2organizations, local arts councils, visual arts organizations,
3and media arts organizations. On and after July 1, 2001 (the
4effective date of Public Act 92-35), however, an entity
5otherwise eligible for this exemption shall not make tax-free
6purchases unless it has an active identification number issued
7by the Department.
8    (4) Personal property purchased by a governmental body, by
9a corporation, society, association, foundation, or
10institution organized and operated exclusively for charitable,
11religious, or educational purposes, or by a not-for-profit
12corporation, society, association, foundation, institution, or
13organization that has no compensated officers or employees and
14that is organized and operated primarily for the recreation of
15persons 55 years of age or older. A limited liability company
16may qualify for the exemption under this paragraph only if the
17limited liability company is organized and operated
18exclusively for educational purposes. On and after July 1,
191987, however, no entity otherwise eligible for this exemption
20shall make tax-free purchases unless it has an active exemption
21identification number issued by the Department.
22    (5) Until July 1, 2003, a passenger car that is a
23replacement vehicle to the extent that the purchase price of
24the car is subject to the Replacement Vehicle Tax.
25    (6) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

HB0321- 440 -LRB101 04001 HLH 49009 b

1equipment, including repair and replacement parts, both new and
2used, and including that manufactured on special order,
3certified by the purchaser to be used primarily for graphic
4arts production, and including machinery and equipment
5purchased for lease. Equipment includes chemicals or chemicals
6acting as catalysts but only if the chemicals or chemicals
7acting as catalysts effect a direct and immediate change upon a
8graphic arts product. Beginning on July 1, 2017 and until July
91, 2019, graphic arts machinery and equipment is included in
10the manufacturing and assembling machinery and equipment
11exemption under paragraph (18).
12    (7) Farm chemicals.
13    (8) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (9) Personal property purchased from a teacher-sponsored
18student organization affiliated with an elementary or
19secondary school located in Illinois.
20    (10) A motor vehicle that is used for automobile renting,
21as defined in the Automobile Renting Occupation and Use Tax
22Act.
23    (11) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

HB0321- 441 -LRB101 04001 HLH 49009 b

1replacement parts for the machinery and equipment, including
2machinery and equipment purchased for lease, and including
3implements of husbandry defined in Section 1-130 of the
4Illinois Vehicle Code, farm machinery and agricultural
5chemical and fertilizer spreaders, and nurse wagons required to
6be registered under Section 3-809 of the Illinois Vehicle Code,
7but excluding other motor vehicles required to be registered
8under the Illinois Vehicle Code. Horticultural polyhouses or
9hoop houses used for propagating, growing, or overwintering
10plants shall be considered farm machinery and equipment under
11this item (11). Agricultural chemical tender tanks and dry
12boxes shall include units sold separately from a motor vehicle
13required to be licensed and units sold mounted on a motor
14vehicle required to be licensed if the selling price of the
15tender is separately stated.
16    Farm machinery and equipment shall include precision
17farming equipment that is installed or purchased to be
18installed on farm machinery and equipment including, but not
19limited to, tractors, harvesters, sprayers, planters, seeders,
20or spreaders. Precision farming equipment includes, but is not
21limited to, soil testing sensors, computers, monitors,
22software, global positioning and mapping systems, and other
23such equipment.
24    Farm machinery and equipment also includes computers,
25sensors, software, and related equipment used primarily in the
26computer-assisted operation of production agriculture

 

 

HB0321- 442 -LRB101 04001 HLH 49009 b

1facilities, equipment, and activities such as, but not limited
2to, the collection, monitoring, and correlation of animal and
3crop data for the purpose of formulating animal diets and
4agricultural chemicals. This item (11) is exempt from the
5provisions of Section 3-90.
6    (12) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the conduct
9of its business as an air common carrier, for a flight destined
10for or returning from a location or locations outside the
11United States without regard to previous or subsequent domestic
12stopovers.
13    Beginning July 1, 2013, fuel and petroleum products sold to
14or used by an air carrier, certified by the carrier to be used
15for consumption, shipment, or storage in the conduct of its
16business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports at
19least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23    (13) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages purchased at retail from a retailer, to the
26extent that the proceeds of the service charge are in fact

 

 

HB0321- 443 -LRB101 04001 HLH 49009 b

1turned over as tips or as a substitute for tips to the
2employees who participate directly in preparing, serving,
3hosting or cleaning up the food or beverage function with
4respect to which the service charge is imposed.
5    (14) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of rigs,
7rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
8tubular goods, including casing and drill strings, (iii) pumps
9and pump-jack units, (iv) storage tanks and flow lines, (v) any
10individual replacement part for oil field exploration,
11drilling, and production equipment, and (vi) machinery and
12equipment purchased for lease; but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code.
14    (15) Photoprocessing machinery and equipment, including
15repair and replacement parts, both new and used, including that
16manufactured on special order, certified by the purchaser to be
17used primarily for photoprocessing, and including
18photoprocessing machinery and equipment purchased for lease.
19    (16) Until July 1, 2023, coal and aggregate exploration,
20mining, off-highway hauling, processing, maintenance, and
21reclamation equipment, including replacement parts and
22equipment, and including equipment purchased for lease, but
23excluding motor vehicles required to be registered under the
24Illinois Vehicle Code. The changes made to this Section by
25Public Act 97-767 apply on and after July 1, 2003, but no claim
26for credit or refund is allowed on or after August 16, 2013

 

 

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1(the effective date of Public Act 98-456) for such taxes paid
2during the period beginning July 1, 2003 and ending on August
316, 2013 (the effective date of Public Act 98-456).
4    (17) Until July 1, 2003, distillation machinery and
5equipment, sold as a unit or kit, assembled or installed by the
6retailer, certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of the user, and not subject to sale or resale.
10    (18) Manufacturing and assembling machinery and equipment
11used primarily in the process of manufacturing or assembling
12tangible personal property for wholesale or retail sale or
13lease, whether that sale or lease is made directly by the
14manufacturer or by some other person, whether the materials
15used in the process are owned by the manufacturer or some other
16person, or whether that sale or lease is made apart from or as
17an incident to the seller's engaging in the service occupation
18of producing machines, tools, dies, jigs, patterns, gauges, or
19other similar items of no commercial value on special order for
20a particular purchaser. The exemption provided by this
21paragraph (18) does not include machinery and equipment used in
22(i) the generation of electricity for wholesale or retail sale;
23(ii) the generation or treatment of natural or artificial gas
24for wholesale or retail sale that is delivered to customers
25through pipes, pipelines, or mains; or (iii) the treatment of
26water for wholesale or retail sale that is delivered to

 

 

HB0321- 445 -LRB101 04001 HLH 49009 b

1customers through pipes, pipelines, or mains. The provisions of
2Public Act 98-583 are declaratory of existing law as to the
3meaning and scope of this exemption. Beginning on July 1, 2017
4and until July 1, 2019, the exemption provided by this
5paragraph (18) includes, but is not limited to, graphic arts
6machinery and equipment, as defined in paragraph (6) of this
7Section.
8    (19) Personal property delivered to a purchaser or
9purchaser's donee inside Illinois when the purchase order for
10that personal property was received by a florist located
11outside Illinois who has a florist located inside Illinois
12deliver the personal property.
13    (20) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (21) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (21) is exempt from the provisions
21of Section 3-90, and the exemption provided for under this item
22(21) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 for such taxes paid during the period beginning May 30,
252000 and ending on January 1, 2008.
26    (22) Computers and communications equipment utilized for

 

 

HB0321- 446 -LRB101 04001 HLH 49009 b

1any hospital purpose and equipment used in the diagnosis,
2analysis, or treatment of hospital patients purchased by a
3lessor who leases the equipment, under a lease of one year or
4longer executed or in effect at the time the lessor would
5otherwise be subject to the tax imposed by this Act, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of the
8Retailers' Occupation Tax Act. If the equipment is leased in a
9manner that does not qualify for this exemption or is used in
10any other non-exempt manner, the lessor shall be liable for the
11tax imposed under this Act or the Service Use Tax Act, as the
12case may be, based on the fair market value of the property at
13the time the non-qualifying use occurs. No lessor shall collect
14or attempt to collect an amount (however designated) that
15purports to reimburse that lessor for the tax imposed by this
16Act or the Service Use Tax Act, as the case may be, if the tax
17has not been paid by the lessor. If a lessor improperly
18collects any such amount from the lessee, the lessee shall have
19a legal right to claim a refund of that amount from the lessor.
20If, however, that amount is not refunded to the lessee for any
21reason, the lessor is liable to pay that amount to the
22Department.
23    (23) Personal property purchased by a lessor who leases the
24property, under a lease of one year or longer executed or in
25effect at the time the lessor would otherwise be subject to the
26tax imposed by this Act, to a governmental body that has been

 

 

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1issued an active sales tax exemption identification number by
2the Department under Section 1g of the Retailers' Occupation
3Tax Act. If the property is leased in a manner that does not
4qualify for this exemption or used in any other non-exempt
5manner, the lessor shall be liable for the tax imposed under
6this Act or the Service Use Tax Act, as the case may be, based
7on the fair market value of the property at the time the
8non-qualifying use occurs. No lessor shall collect or attempt
9to collect an amount (however designated) that purports to
10reimburse that lessor for the tax imposed by this Act or the
11Service Use Tax Act, as the case may be, if the tax has not been
12paid by the lessor. If a lessor improperly collects any such
13amount from the lessee, the lessee shall have a legal right to
14claim a refund of that amount from the lessor. If, however,
15that amount is not refunded to the lessee for any reason, the
16lessor is liable to pay that amount to the Department.
17    (24) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

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1    (25) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (26) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-90.
17    (27) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (28) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-90.
23    (29) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

HB0321- 450 -LRB101 04001 HLH 49009 b

1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-90.
7    (30) Beginning January 1, 2001 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption) and prescription and nonprescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or in a licensed facility as defined
18in the ID/DD Community Care Act, the MC/DD Act, or the
19Specialized Mental Health Rehabilitation Act of 2013.
20    (31) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), computers and communications equipment
22utilized for any hospital purpose and equipment used in the
23diagnosis, analysis, or treatment of hospital patients
24purchased by a lessor who leases the equipment, under a lease
25of one year or longer executed or in effect at the time the
26lessor would otherwise be subject to the tax imposed by this

 

 

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1Act, to a hospital that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. If the equipment is leased in a
4manner that does not qualify for this exemption or is used in
5any other nonexempt manner, the lessor shall be liable for the
6tax imposed under this Act or the Service Use Tax Act, as the
7case may be, based on the fair market value of the property at
8the time the nonqualifying use occurs. No lessor shall collect
9or attempt to collect an amount (however designated) that
10purports to reimburse that lessor for the tax imposed by this
11Act or the Service Use Tax Act, as the case may be, if the tax
12has not been paid by the lessor. If a lessor improperly
13collects any such amount from the lessee, the lessee shall have
14a legal right to claim a refund of that amount from the lessor.
15If, however, that amount is not refunded to the lessee for any
16reason, the lessor is liable to pay that amount to the
17Department. This paragraph is exempt from the provisions of
18Section 3-90.
19    (32) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227), personal property purchased by a lessor who
21leases the property, under a lease of one year or longer
22executed or in effect at the time the lessor would otherwise be
23subject to the tax imposed by this Act, to a governmental body
24that has been issued an active sales tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the property is leased in a

 

 

HB0321- 452 -LRB101 04001 HLH 49009 b

1manner that does not qualify for this exemption or used in any
2other nonexempt manner, the lessor shall be liable for the tax
3imposed under this Act or the Service Use Tax Act, as the case
4may be, based on the fair market value of the property at the
5time the nonqualifying use occurs. No lessor shall collect or
6attempt to collect an amount (however designated) that purports
7to reimburse that lessor for the tax imposed by this Act or the
8Service Use Tax Act, as the case may be, if the tax has not been
9paid by the lessor. If a lessor improperly collects any such
10amount from the lessee, the lessee shall have a legal right to
11claim a refund of that amount from the lessor. If, however,
12that amount is not refunded to the lessee for any reason, the
13lessor is liable to pay that amount to the Department. This
14paragraph is exempt from the provisions of Section 3-90.
15    (33) On and after July 1, 2003 and through June 30, 2004,
16the use in this State of motor vehicles of the second division
17with a gross vehicle weight in excess of 8,000 pounds and that
18are subject to the commercial distribution fee imposed under
19Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
201, 2004 and through June 30, 2005, the use in this State of
21motor vehicles of the second division: (i) with a gross vehicle
22weight rating in excess of 8,000 pounds; (ii) that are subject
23to the commercial distribution fee imposed under Section
243-815.1 of the Illinois Vehicle Code; and (iii) that are
25primarily used for commercial purposes. Through June 30, 2005,
26this exemption applies to repair and replacement parts added

 

 

HB0321- 453 -LRB101 04001 HLH 49009 b

1after the initial purchase of such a motor vehicle if that
2motor vehicle is used in a manner that would qualify for the
3rolling stock exemption otherwise provided for in this Act. For
4purposes of this paragraph, the term "used for commercial
5purposes" means the transportation of persons or property in
6furtherance of any commercial or industrial enterprise,
7whether for-hire or not.
8    (34) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-90.
15    (35) Beginning January 1, 2010, materials, parts,
16equipment, components, and furnishings incorporated into or
17upon an aircraft as part of the modification, refurbishment,
18completion, replacement, repair, or maintenance of the
19aircraft. This exemption includes consumable supplies used in
20the modification, refurbishment, completion, replacement,
21repair, and maintenance of aircraft, but excludes any
22materials, parts, equipment, components, and consumable
23supplies used in the modification, replacement, repair, and
24maintenance of aircraft engines or power plants, whether such
25engines or power plants are installed or uninstalled upon any
26such aircraft. "Consumable supplies" include, but are not

 

 

HB0321- 454 -LRB101 04001 HLH 49009 b

1limited to, adhesive, tape, sandpaper, general purpose
2lubricants, cleaning solution, latex gloves, and protective
3films. This exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. The exemption does not include aircraft operated
11by a commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations. The changes made to this
14paragraph (35) by Public Act 98-534 are declarative of existing
15law.
16    (36) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

 

 

HB0321- 455 -LRB101 04001 HLH 49009 b

1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-90.
4    (37) Beginning January 1, 2017, menstrual pads, tampons,
5and menstrual cups.
6    (38) Merchandise that is subject to the Rental Purchase
7Agreement Occupation and Use Tax. The purchaser must certify
8that the item is purchased to be rented subject to a rental
9purchase agreement, as defined in the Rental Purchase Agreement
10Act, and provide proof of registration under the Rental
11Purchase Agreement Occupation and Use Tax Act. This paragraph
12is exempt from the provisions of Section 3-90.
13(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
14100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
156-29-18; 100-863, eff. 8-14-18.)
 
16    (35 ILCS 105/3-50)  (from Ch. 120, par. 439.3-50)
17    Sec. 3-50. Manufacturing and assembly exemption. The
18manufacturing and assembling machinery and equipment exemption
19includes machinery and equipment that replaces machinery and
20equipment in an existing manufacturing facility as well as
21machinery and equipment that are for use in an expanded or new
22manufacturing facility. The machinery and equipment exemption
23also includes machinery and equipment used in the general
24maintenance or repair of exempt machinery and equipment or for
25in-house manufacture of exempt machinery and equipment.

 

 

HB0321- 456 -LRB101 04001 HLH 49009 b

1Beginning on July 1, 2017 and until July 1, 2019, the
2manufacturing and assembling machinery and equipment exemption
3also includes graphic arts machinery and equipment, as defined
4in paragraph (6) of Section 3-5. The machinery and equipment
5exemption does not include machinery and equipment used in (i)
6the generation of electricity for wholesale or retail sale;
7(ii) the generation or treatment of natural or artificial gas
8for wholesale or retail sale that is delivered to customers
9through pipes, pipelines, or mains; or (iii) the treatment of
10water for wholesale or retail sale that is delivered to
11customers through pipes, pipelines, or mains. The provisions of
12this amendatory Act of the 98th General Assembly are
13declaratory of existing law as to the meaning and scope of this
14exemption. For the purposes of this exemption, terms have the
15following meanings:
16        (1) "Manufacturing process" means the production of an
17    article of tangible personal property, whether the article
18    is a finished product or an article for use in the process
19    of manufacturing or assembling a different article of
20    tangible personal property, by a procedure commonly
21    regarded as manufacturing, processing, fabricating, or
22    refining that changes some existing material into a
23    material with a different form, use, or name. In relation
24    to a recognized integrated business composed of a series of
25    operations that collectively constitute manufacturing, or
26    individually constitute manufacturing operations, the

 

 

HB0321- 457 -LRB101 04001 HLH 49009 b

1    manufacturing process commences with the first operation
2    or stage of production in the series and does not end until
3    the completion of the final product in the last operation
4    or stage of production in the series. For purposes of this
5    exemption, photoprocessing is a manufacturing process of
6    tangible personal property for wholesale or retail sale.
7        (2) "Assembling process" means the production of an
8    article of tangible personal property, whether the article
9    is a finished product or an article for use in the process
10    of manufacturing or assembling a different article of
11    tangible personal property, by the combination of existing
12    materials in a manner commonly regarded as assembling that
13    results in an article or material of a different form, use,
14    or name.
15        (3) "Machinery" means major mechanical machines or
16    major components of those machines contributing to a
17    manufacturing or assembling process.
18        (4) "Equipment" includes an independent device or tool
19    separate from machinery but essential to an integrated
20    manufacturing or assembly process; including computers
21    used primarily in a manufacturer's computer assisted
22    design, computer assisted manufacturing (CAD/CAM) system;
23    any subunit or assembly comprising a component of any
24    machinery or auxiliary, adjunct, or attachment parts of
25    machinery, such as tools, dies, jigs, fixtures, patterns,
26    and molds; and any parts that require periodic replacement

 

 

HB0321- 458 -LRB101 04001 HLH 49009 b

1    in the course of normal operation; but does not include
2    hand tools. Equipment includes chemicals or chemicals
3    acting as catalysts but only if the chemicals or chemicals
4    acting as catalysts effect a direct and immediate change
5    upon a product being manufactured or assembled for
6    wholesale or retail sale or lease.
7        (5) "Production related tangible personal property"
8    means all tangible personal property that is used or
9    consumed by the purchaser in a manufacturing facility in
10    which a manufacturing process takes place and includes,
11    without limitation, tangible personal property that is
12    purchased for incorporation into real estate within a
13    manufacturing facility and tangible personal property that
14    is used or consumed in activities such as research and
15    development, preproduction material handling, receiving,
16    quality control, inventory control, storage, staging, and
17    packaging for shipping and transportation purposes.
18    "Production related tangible personal property" does not
19    include (i) tangible personal property that is used, within
20    or without a manufacturing facility, in sales, purchasing,
21    accounting, fiscal management, marketing, personnel
22    recruitment or selection, or landscaping or (ii) tangible
23    personal property that is required to be titled or
24    registered with a department, agency, or unit of federal,
25    State, or local government.
26    The manufacturing and assembling machinery and equipment

 

 

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1exemption includes production related tangible personal
2property that is purchased on or after July 1, 2007 and on or
3before June 30, 2008. The exemption for production related
4tangible personal property is subject to both of the following
5limitations:
6        (1) The maximum amount of the exemption for any one
7    taxpayer may not exceed 5% of the purchase price of
8    production related tangible personal property that is
9    purchased on or after July 1, 2007 and on or before June
10    30, 2008. A credit under Section 3-85 of this Act may not
11    be earned by the purchase of production related tangible
12    personal property for which an exemption is received under
13    this Section.
14        (2) The maximum aggregate amount of the exemptions for
15    production related tangible personal property awarded
16    under this Act and the Retailers' Occupation Tax Act to all
17    taxpayers may not exceed $10,000,000. If the claims for the
18    exemption exceed $10,000,000, then the Department shall
19    reduce the amount of the exemption to each taxpayer on a
20    pro rata basis.
21The Department may adopt rules to implement and administer the
22exemption for production related tangible personal property.
23    The manufacturing and assembling machinery and equipment
24exemption includes the sale of materials to a purchaser who
25produces exempted types of machinery, equipment, or tools and
26who rents or leases that machinery, equipment, or tools to a

 

 

HB0321- 460 -LRB101 04001 HLH 49009 b

1manufacturer of tangible personal property. This exemption
2also includes the sale of materials to a purchaser who
3manufactures those materials into an exempted type of
4machinery, equipment, or tools that the purchaser uses himself
5or herself in the manufacturing of tangible personal property.
6This exemption includes the sale of exempted types of machinery
7or equipment to a purchaser who is not the manufacturer, but
8who rents or leases the use of the property to a manufacturer.
9The purchaser of the machinery and equipment who has an active
10resale registration number shall furnish that number to the
11seller at the time of purchase. A user of the machinery,
12equipment, or tools without an active resale registration
13number shall prepare a certificate of exemption for each
14transaction stating facts establishing the exemption for that
15transaction, and that certificate shall be available to the
16Department for inspection or audit. The Department shall
17prescribe the form of the certificate. Informal rulings,
18opinions, or letters issued by the Department in response to an
19inquiry or request for an opinion from any person regarding the
20coverage and applicability of this exemption to specific
21devices shall be published, maintained as a public record, and
22made available for public inspection and copying. If the
23informal ruling, opinion, or letter contains trade secrets or
24other confidential information, where possible, the Department
25shall delete that information before publication. Whenever
26informal rulings, opinions, or letters contain a policy of

 

 

HB0321- 461 -LRB101 04001 HLH 49009 b

1general applicability, the Department shall formulate and
2adopt that policy as a rule in accordance with the Illinois
3Administrative Procedure Act.
4    The manufacturing and assembling machinery and equipment
5exemption is exempt from the provisions of Section 3-90.
6(Source: P.A. 100-22, eff. 7-6-17.)
 
7    Section 155. The Service Use Tax Act is amended by changing
8Sections 2 and 3-5 as follows:
 
9    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
10    Sec. 2. Definitions. In this Act:
11    "Use" means the exercise by any person of any right or
12power over tangible personal property incident to the ownership
13of that property, but does not include the sale or use for
14demonstration by him of that property in any form as tangible
15personal property in the regular course of business. "Use" does
16not mean the interim use of tangible personal property nor the
17physical incorporation of tangible personal property, as an
18ingredient or constituent, into other tangible personal
19property, (a) which is sold in the regular course of business
20or (b) which the person incorporating such ingredient or
21constituent therein has undertaken at the time of such purchase
22to cause to be transported in interstate commerce to
23destinations outside the State of Illinois.
24    "Purchased from a serviceman" means the acquisition of the

 

 

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1ownership of, or title to, tangible personal property through a
2sale of service.
3    "Purchaser" means any person who, through a sale of
4service, acquires the ownership of, or title to, any tangible
5personal property.
6    "Cost price" means the consideration paid by the serviceman
7for a purchase valued in money, whether paid in money or
8otherwise, including cash, credits and services, and shall be
9determined without any deduction on account of the supplier's
10cost of the property sold or on account of any other expense
11incurred by the supplier. When a serviceman contracts out part
12or all of the services required in his sale of service, it
13shall be presumed that the cost price to the serviceman of the
14property transferred to him or her by his or her subcontractor
15is equal to 50% of the subcontractor's charges to the
16serviceman in the absence of proof of the consideration paid by
17the subcontractor for the purchase of such property.
18    "Selling price" means the consideration for a sale valued
19in money whether received in money or otherwise, including
20cash, credits and service, and shall be determined without any
21deduction on account of the serviceman's cost of the property
22sold, the cost of materials used, labor or service cost or any
23other expense whatsoever, but does not include interest or
24finance charges which appear as separate items on the bill of
25sale or sales contract nor charges that are added to prices by
26sellers on account of the seller's duty to collect, from the

 

 

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1purchaser, the tax that is imposed by this Act.
2    "Department" means the Department of Revenue.
3    "Person" means any natural individual, firm, partnership,
4association, joint stock company, joint venture, public or
5private corporation, limited liability company, and any
6receiver, executor, trustee, guardian or other representative
7appointed by order of any court.
8    "Sale of service" means any transaction except:
9        (1) a retail sale of tangible personal property taxable
10    under the Retailers' Occupation Tax Act or under the Use
11    Tax Act.
12        (2) a sale of tangible personal property for the
13    purpose of resale made in compliance with Section 2c of the
14    Retailers' Occupation Tax Act.
15        (3) except as hereinafter provided, a sale or transfer
16    of tangible personal property as an incident to the
17    rendering of service for or by any governmental body, or
18    for or by any corporation, society, association,
19    foundation or institution organized and operated
20    exclusively for charitable, religious or educational
21    purposes or any not-for-profit corporation, society,
22    association, foundation, institution or organization which
23    has no compensated officers or employees and which is
24    organized and operated primarily for the recreation of
25    persons 55 years of age or older. A limited liability
26    company may qualify for the exemption under this paragraph

 

 

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1    only if the limited liability company is organized and
2    operated exclusively for educational purposes.
3        (4) (blank).
4        (4a) a sale or transfer of tangible personal property
5    as an incident to the rendering of service for owners,
6    lessors, or shippers of tangible personal property which is
7    utilized by interstate carriers for hire for use as rolling
8    stock moving in interstate commerce so long as so used by
9    interstate carriers for hire, and equipment operated by a
10    telecommunications provider, licensed as a common carrier
11    by the Federal Communications Commission, which is
12    permanently installed in or affixed to aircraft moving in
13    interstate commerce.
14        (4a-5) on and after July 1, 2003 and through June 30,
15    2004, a sale or transfer of a motor vehicle of the second
16    division with a gross vehicle weight in excess of 8,000
17    pounds as an incident to the rendering of service if that
18    motor vehicle is subject to the commercial distribution fee
19    imposed under Section 3-815.1 of the Illinois Vehicle Code.
20    Beginning on July 1, 2004 and through June 30, 2005, the
21    use in this State of motor vehicles of the second division:
22    (i) with a gross vehicle weight rating in excess of 8,000
23    pounds; (ii) that are subject to the commercial
24    distribution fee imposed under Section 3-815.1 of the
25    Illinois Vehicle Code; and (iii) that are primarily used
26    for commercial purposes. Through June 30, 2005, this

 

 

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1    exemption applies to repair and replacement parts added
2    after the initial purchase of such a motor vehicle if that
3    motor vehicle is used in a manner that would qualify for
4    the rolling stock exemption otherwise provided for in this
5    Act. For purposes of this paragraph, "used for commercial
6    purposes" means the transportation of persons or property
7    in furtherance of any commercial or industrial enterprise
8    whether for-hire or not.
9        (5) a sale or transfer of machinery and equipment used
10    primarily in the process of the manufacturing or
11    assembling, either in an existing, an expanded or a new
12    manufacturing facility, of tangible personal property for
13    wholesale or retail sale or lease, whether such sale or
14    lease is made directly by the manufacturer or by some other
15    person, whether the materials used in the process are owned
16    by the manufacturer or some other person, or whether such
17    sale or lease is made apart from or as an incident to the
18    seller's engaging in a service occupation and the
19    applicable tax is a Service Use Tax or Service Occupation
20    Tax, rather than Use Tax or Retailers' Occupation Tax. The
21    exemption provided by this paragraph (5) does not include
22    machinery and equipment used in (i) the generation of
23    electricity for wholesale or retail sale; (ii) the
24    generation or treatment of natural or artificial gas for
25    wholesale or retail sale that is delivered to customers
26    through pipes, pipelines, or mains; or (iii) the treatment

 

 

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1    of water for wholesale or retail sale that is delivered to
2    customers through pipes, pipelines, or mains. The
3    provisions of Public Act 98-583 are declaratory of existing
4    law as to the meaning and scope of this exemption. The
5    exemption under this paragraph (5) is exempt from the
6    provisions of Section 3-75.
7        (5a) the repairing, reconditioning or remodeling, for
8    a common carrier by rail, of tangible personal property
9    which belongs to such carrier for hire, and as to which
10    such carrier receives the physical possession of the
11    repaired, reconditioned or remodeled item of tangible
12    personal property in Illinois, and which such carrier
13    transports, or shares with another common carrier in the
14    transportation of such property, out of Illinois on a
15    standard uniform bill of lading showing the person who
16    repaired, reconditioned or remodeled the property to a
17    destination outside Illinois, for use outside Illinois.
18        (5b) a sale or transfer of tangible personal property
19    which is produced by the seller thereof on special order in
20    such a way as to have made the applicable tax the Service
21    Occupation Tax or the Service Use Tax, rather than the
22    Retailers' Occupation Tax or the Use Tax, for an interstate
23    carrier by rail which receives the physical possession of
24    such property in Illinois, and which transports such
25    property, or shares with another common carrier in the
26    transportation of such property, out of Illinois on a

 

 

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1    standard uniform bill of lading showing the seller of the
2    property as the shipper or consignor of such property to a
3    destination outside Illinois, for use outside Illinois.
4        (6) until July 1, 2003, a sale or transfer of
5    distillation machinery and equipment, sold as a unit or kit
6    and assembled or installed by the retailer, which machinery
7    and equipment is certified by the user to be used only for
8    the production of ethyl alcohol that will be used for
9    consumption as motor fuel or as a component of motor fuel
10    for the personal use of such user and not subject to sale
11    or resale.
12        (7) at the election of any serviceman not required to
13    be otherwise registered as a retailer under Section 2a of
14    the Retailers' Occupation Tax Act, made for each fiscal
15    year sales of service in which the aggregate annual cost
16    price of tangible personal property transferred as an
17    incident to the sales of service is less than 35%, or 75%
18    in the case of servicemen transferring prescription drugs
19    or servicemen engaged in graphic arts production, of the
20    aggregate annual total gross receipts from all sales of
21    service. The purchase of such tangible personal property by
22    the serviceman shall be subject to tax under the Retailers'
23    Occupation Tax Act and the Use Tax Act. However, if a
24    primary serviceman who has made the election described in
25    this paragraph subcontracts service work to a secondary
26    serviceman who has also made the election described in this

 

 

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1    paragraph, the primary serviceman does not incur a Use Tax
2    liability if the secondary serviceman (i) has paid or will
3    pay Use Tax on his or her cost price of any tangible
4    personal property transferred to the primary serviceman
5    and (ii) certifies that fact in writing to the primary
6    serviceman.
7    Tangible personal property transferred incident to the
8completion of a maintenance agreement is exempt from the tax
9imposed pursuant to this Act.
10    Exemption (5) also includes machinery and equipment used in
11the general maintenance or repair of such exempt machinery and
12equipment or for in-house manufacture of exempt machinery and
13equipment. On and after July 1, 2017 and until July 1, 2019,
14exemption (5) also includes graphic arts machinery and
15equipment, as defined in paragraph (5) of Section 3-5. The
16machinery and equipment exemption does not include machinery
17and equipment used in (i) the generation of electricity for
18wholesale or retail sale; (ii) the generation or treatment of
19natural or artificial gas for wholesale or retail sale that is
20delivered to customers through pipes, pipelines, or mains; or
21(iii) the treatment of water for wholesale or retail sale that
22is delivered to customers through pipes, pipelines, or mains.
23The provisions of Public Act 98-583 are declaratory of existing
24law as to the meaning and scope of this exemption. For the
25purposes of exemption (5), each of these terms shall have the
26following meanings: (1) "manufacturing process" shall mean the

 

 

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1production of any article of tangible personal property,
2whether such article is a finished product or an article for
3use in the process of manufacturing or assembling a different
4article of tangible personal property, by procedures commonly
5regarded as manufacturing, processing, fabricating, or
6refining which changes some existing material or materials into
7a material with a different form, use or name. In relation to a
8recognized integrated business composed of a series of
9operations which collectively constitute manufacturing, or
10individually constitute manufacturing operations, the
11manufacturing process shall be deemed to commence with the
12first operation or stage of production in the series, and shall
13not be deemed to end until the completion of the final product
14in the last operation or stage of production in the series; and
15further, for purposes of exemption (5), photoprocessing is
16deemed to be a manufacturing process of tangible personal
17property for wholesale or retail sale; (2) "assembling process"
18shall mean the production of any article of tangible personal
19property, whether such article is a finished product or an
20article for use in the process of manufacturing or assembling a
21different article of tangible personal property, by the
22combination of existing materials in a manner commonly regarded
23as assembling which results in a material of a different form,
24use or name; (3) "machinery" shall mean major mechanical
25machines or major components of such machines contributing to a
26manufacturing or assembling process; and (4) "equipment" shall

 

 

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1include any independent device or tool separate from any
2machinery but essential to an integrated manufacturing or
3assembly process; including computers used primarily in a
4manufacturer's computer assisted design, computer assisted
5manufacturing (CAD/CAM) system; or any subunit or assembly
6comprising a component of any machinery or auxiliary, adjunct
7or attachment parts of machinery, such as tools, dies, jigs,
8fixtures, patterns and molds; or any parts which require
9periodic replacement in the course of normal operation; but
10shall not include hand tools. Equipment includes chemicals or
11chemicals acting as catalysts but only if the chemicals or
12chemicals acting as catalysts effect a direct and immediate
13change upon a product being manufactured or assembled for
14wholesale or retail sale or lease. The purchaser of such
15machinery and equipment who has an active resale registration
16number shall furnish such number to the seller at the time of
17purchase. The user of such machinery and equipment and tools
18without an active resale registration number shall prepare a
19certificate of exemption for each transaction stating facts
20establishing the exemption for that transaction, which
21certificate shall be available to the Department for inspection
22or audit. The Department shall prescribe the form of the
23certificate.
24    Any informal rulings, opinions or letters issued by the
25Department in response to an inquiry or request for any opinion
26from any person regarding the coverage and applicability of

 

 

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1exemption (5) to specific devices shall be published,
2maintained as a public record, and made available for public
3inspection and copying. If the informal ruling, opinion or
4letter contains trade secrets or other confidential
5information, where possible the Department shall delete such
6information prior to publication. Whenever such informal
7rulings, opinions, or letters contain any policy of general
8applicability, the Department shall formulate and adopt such
9policy as a rule in accordance with the provisions of the
10Illinois Administrative Procedure Act.
11    On and after July 1, 1987, no entity otherwise eligible
12under exemption (3) of this Section shall make tax-free
13purchases unless it has an active exemption identification
14number issued by the Department.
15    The purchase, employment and transfer of such tangible
16personal property as newsprint and ink for the primary purpose
17of conveying news (with or without other information) is not a
18purchase, use or sale of service or of tangible personal
19property within the meaning of this Act.
20    "Serviceman" means any person who is engaged in the
21occupation of making sales of service.
22    "Sale at retail" means "sale at retail" as defined in the
23Retailers' Occupation Tax Act.
24    "Supplier" means any person who makes sales of tangible
25personal property to servicemen for the purpose of resale as an
26incident to a sale of service.

 

 

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1    "Serviceman maintaining a place of business in this State",
2or any like term, means and includes any serviceman:
3        (1) having or maintaining within this State, directly
4    or by a subsidiary, an office, distribution house, sales
5    house, warehouse or other place of business, or any agent
6    or other representative operating within this State under
7    the authority of the serviceman or its subsidiary,
8    irrespective of whether such place of business or agent or
9    other representative is located here permanently or
10    temporarily, or whether such serviceman or subsidiary is
11    licensed to do business in this State;
12        (1.1) having a contract with a person located in this
13    State under which the person, for a commission or other
14    consideration based on the sale of service by the
15    serviceman, directly or indirectly refers potential
16    customers to the serviceman by providing to the potential
17    customers a promotional code or other mechanism that allows
18    the serviceman to track purchases referred by such persons.
19    Examples of mechanisms that allow the serviceman to track
20    purchases referred by such persons include but are not
21    limited to the use of a link on the person's Internet
22    website, promotional codes distributed through the
23    person's hand-delivered or mailed material, and
24    promotional codes distributed by the person through radio
25    or other broadcast media. The provisions of this paragraph
26    (1.1) shall apply only if the cumulative gross receipts

 

 

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1    from sales of service by the serviceman to customers who
2    are referred to the serviceman by all persons in this State
3    under such contracts exceed $10,000 during the preceding 4
4    quarterly periods ending on the last day of March, June,
5    September, and December; a serviceman meeting the
6    requirements of this paragraph (1.1) shall be presumed to
7    be maintaining a place of business in this State but may
8    rebut this presumption by submitting proof that the
9    referrals or other activities pursued within this State by
10    such persons were not sufficient to meet the nexus
11    standards of the United States Constitution during the
12    preceding 4 quarterly periods;
13        (1.2) beginning July 1, 2011, having a contract with a
14    person located in this State under which:
15            (A) the serviceman sells the same or substantially
16        similar line of services as the person located in this
17        State and does so using an identical or substantially
18        similar name, trade name, or trademark as the person
19        located in this State; and
20            (B) the serviceman provides a commission or other
21        consideration to the person located in this State based
22        upon the sale of services by the serviceman.
23    The provisions of this paragraph (1.2) shall apply only if
24    the cumulative gross receipts from sales of service by the
25    serviceman to customers in this State under all such
26    contracts exceed $10,000 during the preceding 4 quarterly

 

 

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1    periods ending on the last day of March, June, September,
2    and December;
3        (2) soliciting orders for tangible personal property
4    by means of a telecommunication or television shopping
5    system (which utilizes toll free numbers) which is intended
6    by the retailer to be broadcast by cable television or
7    other means of broadcasting, to consumers located in this
8    State;
9        (3) pursuant to a contract with a broadcaster or
10    publisher located in this State, soliciting orders for
11    tangible personal property by means of advertising which is
12    disseminated primarily to consumers located in this State
13    and only secondarily to bordering jurisdictions;
14        (4) soliciting orders for tangible personal property
15    by mail if the solicitations are substantial and recurring
16    and if the retailer benefits from any banking, financing,
17    debt collection, telecommunication, or marketing
18    activities occurring in this State or benefits from the
19    location in this State of authorized installation,
20    servicing, or repair facilities;
21        (5) being owned or controlled by the same interests
22    which own or control any retailer engaging in business in
23    the same or similar line of business in this State;
24        (6) having a franchisee or licensee operating under its
25    trade name if the franchisee or licensee is required to
26    collect the tax under this Section;

 

 

HB0321- 475 -LRB101 04001 HLH 49009 b

1        (7) pursuant to a contract with a cable television
2    operator located in this State, soliciting orders for
3    tangible personal property by means of advertising which is
4    transmitted or distributed over a cable television system
5    in this State;
6        (8) engaging in activities in Illinois, which
7    activities in the state in which the supply business
8    engaging in such activities is located would constitute
9    maintaining a place of business in that state; or
10        (9) beginning October 1, 2018, making sales of service
11    to purchasers in Illinois from outside of Illinois if:
12            (A) the cumulative gross receipts from sales of
13        service to purchasers in Illinois are $100,000 or more;
14        or
15            (B) the serviceman enters into 200 or more separate
16        transactions for sales of service to purchasers in
17        Illinois.
18        The serviceman shall determine on a quarterly basis,
19    ending on the last day of March, June, September, and
20    December, whether he or she meets the criteria of either
21    subparagraph (A) or (B) of this paragraph (9) for the
22    preceding 12-month period. If the serviceman meets the
23    criteria of either subparagraph (A) or (B) for a 12-month
24    period, he or she is considered a serviceman maintaining a
25    place of business in this State and is required to collect
26    and remit the tax imposed under this Act and file returns

 

 

HB0321- 476 -LRB101 04001 HLH 49009 b

1    for one year. At the end of that one-year period, the
2    serviceman shall determine whether the serviceman met the
3    criteria of either subparagraph (A) or (B) during the
4    preceding 12-month period. If the serviceman met the
5    criteria in either subparagraph (A) or (B) for the
6    preceding 12-month period, he or she is considered a
7    serviceman maintaining a place of business in this State
8    and is required to collect and remit the tax imposed under
9    this Act and file returns for the subsequent year. If at
10    the end of a one-year period a serviceman that was required
11    to collect and remit the tax imposed under this Act
12    determines that he or she did not meet the criteria in
13    either subparagraph (A) or (B) during the preceding
14    12-month period, the serviceman subsequently shall
15    determine on a quarterly basis, ending on the last day of
16    March, June, September, and December, whether he or she
17    meets the criteria of either subparagraph (A) or (B) for
18    the preceding 12-month period.
19(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
20100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
 
21    (35 ILCS 110/3-5)
22    Sec. 3-5. Exemptions. Use of the following tangible
23personal property is exempt from the tax imposed by this Act:
24    (1) Personal property purchased from a corporation,
25society, association, foundation, institution, or

 

 

HB0321- 477 -LRB101 04001 HLH 49009 b

1organization, other than a limited liability company, that is
2organized and operated as a not-for-profit service enterprise
3for the benefit of persons 65 years of age or older if the
4personal property was not purchased by the enterprise for the
5purpose of resale by the enterprise.
6    (2) Personal property purchased by a non-profit Illinois
7county fair association for use in conducting, operating, or
8promoting the county fair.
9    (3) Personal property purchased by a not-for-profit arts or
10cultural organization that establishes, by proof required by
11the Department by rule, that it has received an exemption under
12Section 501(c)(3) of the Internal Revenue Code and that is
13organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after the effective date
20of this amendatory Act of the 92nd General Assembly, however,
21an entity otherwise eligible for this exemption shall not make
22tax-free purchases unless it has an active identification
23number issued by the Department.
24    (4) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

 

 

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1country, and bullion.
2    (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new and
5used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product. Beginning on July
111, 2017 and until July 1, 2019, graphic arts machinery and
12equipment is included in the manufacturing and assembling
13machinery and equipment exemption under Section 2 of this Act.
14    (6) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required to
26be registered under Section 3-809 of the Illinois Vehicle Code,

 

 

HB0321- 479 -LRB101 04001 HLH 49009 b

1but excluding other motor vehicles required to be registered
2under the Illinois Vehicle Code. Horticultural polyhouses or
3hoop houses used for propagating, growing, or overwintering
4plants shall be considered farm machinery and equipment under
5this item (7). Agricultural chemical tender tanks and dry boxes
6shall include units sold separately from a motor vehicle
7required to be licensed and units sold mounted on a motor
8vehicle required to be licensed if the selling price of the
9tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals. This item (7) is exempt from the
25provisions of Section 3-75.
26    (8) Until June 30, 2013, fuel and petroleum products sold

 

 

HB0321- 480 -LRB101 04001 HLH 49009 b

1to or used by an air common carrier, certified by the carrier
2to be used for consumption, shipment, or storage in the conduct
3of its business as an air common carrier, for a flight destined
4for or returning from a location or locations outside the
5United States without regard to previous or subsequent domestic
6stopovers.
7    Beginning July 1, 2013, fuel and petroleum products sold to
8or used by an air carrier, certified by the carrier to be used
9for consumption, shipment, or storage in the conduct of its
10business as an air common carrier, for a flight that (i) is
11engaged in foreign trade or is engaged in trade between the
12United States and any of its possessions and (ii) transports at
13least one individual or package for hire from the city of
14origination to the city of final destination on the same
15aircraft, without regard to a change in the flight number of
16that aircraft.
17    (9) Proceeds of mandatory service charges separately
18stated on customers' bills for the purchase and consumption of
19food and beverages acquired as an incident to the purchase of a
20service from a serviceman, to the extent that the proceeds of
21the service charge are in fact turned over as tips or as a
22substitute for tips to the employees who participate directly
23in preparing, serving, hosting or cleaning up the food or
24beverage function with respect to which the service charge is
25imposed.
26    (10) Until July 1, 2003, oil field exploration, drilling,

 

 

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1and production equipment, including (i) rigs and parts of rigs,
2rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
3tubular goods, including casing and drill strings, (iii) pumps
4and pump-jack units, (iv) storage tanks and flow lines, (v) any
5individual replacement part for oil field exploration,
6drilling, and production equipment, and (vi) machinery and
7equipment purchased for lease; but excluding motor vehicles
8required to be registered under the Illinois Vehicle Code.
9    (11) Proceeds from the sale of photoprocessing machinery
10and equipment, including repair and replacement parts, both new
11and used, including that manufactured on special order,
12certified by the purchaser to be used primarily for
13photoprocessing, and including photoprocessing machinery and
14equipment purchased for lease.
15    (12) Until July 1, 2023, coal and aggregate exploration,
16mining, off-highway hauling, processing, maintenance, and
17reclamation equipment, including replacement parts and
18equipment, and including equipment purchased for lease, but
19excluding motor vehicles required to be registered under the
20Illinois Vehicle Code. The changes made to this Section by
21Public Act 97-767 apply on and after July 1, 2003, but no claim
22for credit or refund is allowed on or after August 16, 2013
23(the effective date of Public Act 98-456) for such taxes paid
24during the period beginning July 1, 2003 and ending on August
2516, 2013 (the effective date of Public Act 98-456).
26    (13) Semen used for artificial insemination of livestock

 

 

HB0321- 482 -LRB101 04001 HLH 49009 b

1for direct agricultural production.
2    (14) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (14) is exempt from the provisions
8of Section 3-75, and the exemption provided for under this item
9(14) applies for all periods beginning May 30, 1995, but no
10claim for credit or refund is allowed on or after the effective
11date of this amendatory Act of the 95th General Assembly for
12such taxes paid during the period beginning May 30, 2000 and
13ending on the effective date of this amendatory Act of the 95th
14General Assembly.
15    (15) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. If the equipment is leased in a
24manner that does not qualify for this exemption or is used in
25any other non-exempt manner, the lessor shall be liable for the
26tax imposed under this Act or the Use Tax Act, as the case may

 

 

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1be, based on the fair market value of the property at the time
2the non-qualifying use occurs. No lessor shall collect or
3attempt to collect an amount (however designated) that purports
4to reimburse that lessor for the tax imposed by this Act or the
5Use Tax Act, as the case may be, if the tax has not been paid by
6the lessor. If a lessor improperly collects any such amount
7from the lessee, the lessee shall have a legal right to claim a
8refund of that amount from the lessor. If, however, that amount
9is not refunded to the lessee for any reason, the lessor is
10liable to pay that amount to the Department.
11    (16) Personal property purchased by a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time the lessor would otherwise be subject to the
14tax imposed by this Act, to a governmental body that has been
15issued an active tax exemption identification number by the
16Department under Section 1g of the Retailers' Occupation Tax
17Act. If the property is leased in a manner that does not
18qualify for this exemption or is used in any other non-exempt
19manner, the lessor shall be liable for the tax imposed under
20this Act or the Use Tax Act, as the case may be, based on the
21fair market value of the property at the time the
22non-qualifying use occurs. No lessor shall collect or attempt
23to collect an amount (however designated) that purports to
24reimburse that lessor for the tax imposed by this Act or the
25Use Tax Act, as the case may be, if the tax has not been paid by
26the lessor. If a lessor improperly collects any such amount

 

 

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1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that amount
3is not refunded to the lessee for any reason, the lessor is
4liable to pay that amount to the Department.
5    (17) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is donated for
8disaster relief to be used in a State or federally declared
9disaster area in Illinois or bordering Illinois by a
10manufacturer or retailer that is registered in this State to a
11corporation, society, association, foundation, or institution
12that has been issued a sales tax exemption identification
13number by the Department that assists victims of the disaster
14who reside within the declared disaster area.
15    (18) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is used in the
18performance of infrastructure repairs in this State, including
19but not limited to municipal roads and streets, access roads,
20bridges, sidewalks, waste disposal systems, water and sewer
21line extensions, water distribution and purification
22facilities, storm water drainage and retention facilities, and
23sewage treatment facilities, resulting from a State or
24federally declared disaster in Illinois or bordering Illinois
25when such repairs are initiated on facilities located in the
26declared disaster area within 6 months after the disaster.

 

 

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1    (19) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-75.
5    (20) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the Department
9to be organized and operated exclusively for educational
10purposes. For purposes of this exemption, "a corporation,
11limited liability company, society, association, foundation,
12or institution organized and operated exclusively for
13educational purposes" means all tax-supported public schools,
14private schools that offer systematic instruction in useful
15branches of learning by methods common to public schools and
16that compare favorably in their scope and intensity with the
17course of study presented in tax-supported schools, and
18vocational or technical schools or institutes organized and
19operated exclusively to provide a course of study of not less
20than 6 weeks duration and designed to prepare individuals to
21follow a trade or to pursue a manual, technical, mechanical,
22industrial, business, or commercial occupation.
23    (21) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

 

 

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-75.
11    (22) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and other
14items, and replacement parts for these machines. Beginning
15January 1, 2002 and through June 30, 2003, machines and parts
16for machines used in commercial, coin-operated amusement and
17vending business if a use or occupation tax is paid on the
18gross receipts derived from the use of the commercial,
19coin-operated amusement and vending machines. This paragraph
20is exempt from the provisions of Section 3-75.
21    (23) Beginning August 23, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8    (24) Beginning on the effective date of this amendatory Act
9of the 92nd General Assembly, computers and communications
10equipment utilized for any hospital purpose and equipment used
11in the diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of the
17Retailers' Occupation Tax Act. If the equipment is leased in a
18manner that does not qualify for this exemption or is used in
19any other nonexempt manner, the lessor shall be liable for the
20tax imposed under this Act or the Use Tax Act, as the case may
21be, based on the fair market value of the property at the time
22the nonqualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that purports
24to reimburse that lessor for the tax imposed by this Act or the
25Use Tax Act, as the case may be, if the tax has not been paid by
26the lessor. If a lessor improperly collects any such amount

 

 

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1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that amount
3is not refunded to the lessee for any reason, the lessor is
4liable to pay that amount to the Department. This paragraph is
5exempt from the provisions of Section 3-75.
6    (25) Beginning on the effective date of this amendatory Act
7of the 92nd General Assembly, personal property purchased by a
8lessor who leases the property, under a lease of one year or
9longer executed or in effect at the time the lessor would
10otherwise be subject to the tax imposed by this Act, to a
11governmental body that has been issued an active tax exemption
12identification number by the Department under Section 1g of the
13Retailers' Occupation Tax Act. If the property is leased in a
14manner that does not qualify for this exemption or is used in
15any other nonexempt manner, the lessor shall be liable for the
16tax imposed under this Act or the Use Tax Act, as the case may
17be, based on the fair market value of the property at the time
18the nonqualifying use occurs. No lessor shall collect or
19attempt to collect an amount (however designated) that purports
20to reimburse that lessor for the tax imposed by this Act or the
21Use Tax Act, as the case may be, if the tax has not been paid by
22the lessor. If a lessor improperly collects any such amount
23from the lessee, the lessee shall have a legal right to claim a
24refund of that amount from the lessor. If, however, that amount
25is not refunded to the lessee for any reason, the lessor is
26liable to pay that amount to the Department. This paragraph is

 

 

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1exempt from the provisions of Section 3-75.
2    (26) Beginning January 1, 2008, tangible personal property
3used in the construction or maintenance of a community water
4supply, as defined under Section 3.145 of the Environmental
5Protection Act, that is operated by a not-for-profit
6corporation that holds a valid water supply permit issued under
7Title IV of the Environmental Protection Act. This paragraph is
8exempt from the provisions of Section 3-75.
9    (27) Beginning January 1, 2010, materials, parts,
10equipment, components, and furnishings incorporated into or
11upon an aircraft as part of the modification, refurbishment,
12completion, replacement, repair, or maintenance of the
13aircraft. This exemption includes consumable supplies used in
14the modification, refurbishment, completion, replacement,
15repair, and maintenance of aircraft, but excludes any
16materials, parts, equipment, components, and consumable
17supplies used in the modification, replacement, repair, and
18maintenance of aircraft engines or power plants, whether such
19engines or power plants are installed or uninstalled upon any
20such aircraft. "Consumable supplies" include, but are not
21limited to, adhesive, tape, sandpaper, general purpose
22lubricants, cleaning solution, latex gloves, and protective
23films. This exemption applies only to the use of qualifying
24tangible personal property transferred incident to the
25modification, refurbishment, completion, replacement, repair,
26or maintenance of aircraft by persons who (i) hold an Air

 

 

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1Agency Certificate and are empowered to operate an approved
2repair station by the Federal Aviation Administration, (ii)
3have a Class IV Rating, and (iii) conduct operations in
4accordance with Part 145 of the Federal Aviation Regulations.
5The exemption does not include aircraft operated by a
6commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations. The changes made to this
9paragraph (27) by Public Act 98-534 are declarative of existing
10law.
11    (28) Tangible personal property purchased by a
12public-facilities corporation, as described in Section
1311-65-10 of the Illinois Municipal Code, for purposes of
14constructing or furnishing a municipal convention hall, but
15only if the legal title to the municipal convention hall is
16transferred to the municipality without any further
17consideration by or on behalf of the municipality at the time
18of the completion of the municipal convention hall or upon the
19retirement or redemption of any bonds or other debt instruments
20issued by the public-facilities corporation in connection with
21the development of the municipal convention hall. This
22exemption includes existing public-facilities corporations as
23provided in Section 11-65-25 of the Illinois Municipal Code.
24This paragraph is exempt from the provisions of Section 3-75.
25    (29) Beginning January 1, 2017, menstrual pads, tampons,
26and menstrual cups.

 

 

HB0321- 491 -LRB101 04001 HLH 49009 b

1(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
2100-22, eff. 7-6-17; 100-594, eff. 6-29-18.)
 
3    Section 160. The Service Occupation Tax Act is amended by
4changing Sections 2 and 3-5 as follows:
 
5    (35 ILCS 115/2)  (from Ch. 120, par. 439.102)
6    Sec. 2. In this Act:
7    "Transfer" means any transfer of the title to property or
8of the ownership of property whether or not the transferor
9retains title as security for the payment of amounts due him
10from the transferee.
11    "Cost Price" means the consideration paid by the serviceman
12for a purchase valued in money, whether paid in money or
13otherwise, including cash, credits and services, and shall be
14determined without any deduction on account of the supplier's
15cost of the property sold or on account of any other expense
16incurred by the supplier. When a serviceman contracts out part
17or all of the services required in his sale of service, it
18shall be presumed that the cost price to the serviceman of the
19property transferred to him by his or her subcontractor is
20equal to 50% of the subcontractor's charges to the serviceman
21in the absence of proof of the consideration paid by the
22subcontractor for the purchase of such property.
23    "Department" means the Department of Revenue.
24    "Person" means any natural individual, firm, partnership,

 

 

HB0321- 492 -LRB101 04001 HLH 49009 b

1association, joint stock company, joint venture, public or
2private corporation, limited liability company, and any
3receiver, executor, trustee, guardian or other representative
4appointed by order of any court.
5    "Sale of Service" means any transaction except:
6    (a) A retail sale of tangible personal property taxable
7under the Retailers' Occupation Tax Act or under the Use Tax
8Act.
9    (b) A sale of tangible personal property for the purpose of
10resale made in compliance with Section 2c of the Retailers'
11Occupation Tax Act.
12    (c) Except as hereinafter provided, a sale or transfer of
13tangible personal property as an incident to the rendering of
14service for or by any governmental body or for or by any
15corporation, society, association, foundation or institution
16organized and operated exclusively for charitable, religious
17or educational purposes or any not-for-profit corporation,
18society, association, foundation, institution or organization
19which has no compensated officers or employees and which is
20organized and operated primarily for the recreation of persons
2155 years of age or older. A limited liability company may
22qualify for the exemption under this paragraph only if the
23limited liability company is organized and operated
24exclusively for educational purposes.
25    (d) (Blank).
26    (d-1) A sale or transfer of tangible personal property as

 

 

HB0321- 493 -LRB101 04001 HLH 49009 b

1an incident to the rendering of service for owners, lessors or
2shippers of tangible personal property which is utilized by
3interstate carriers for hire for use as rolling stock moving in
4interstate commerce, and equipment operated by a
5telecommunications provider, licensed as a common carrier by
6the Federal Communications Commission, which is permanently
7installed in or affixed to aircraft moving in interstate
8commerce.
9    (d-1.1) On and after July 1, 2003 and through June 30,
102004, a sale or transfer of a motor vehicle of the second
11division with a gross vehicle weight in excess of 8,000 pounds
12as an incident to the rendering of service if that motor
13vehicle is subject to the commercial distribution fee imposed
14under Section 3-815.1 of the Illinois Vehicle Code. Beginning
15on July 1, 2004 and through June 30, 2005, the use in this
16State of motor vehicles of the second division: (i) with a
17gross vehicle weight rating in excess of 8,000 pounds; (ii)
18that are subject to the commercial distribution fee imposed
19under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
20that are primarily used for commercial purposes. Through June
2130, 2005, this exemption applies to repair and replacement
22parts added after the initial purchase of such a motor vehicle
23if that motor vehicle is used in a manner that would qualify
24for the rolling stock exemption otherwise provided for in this
25Act. For purposes of this paragraph, "used for commercial
26purposes" means the transportation of persons or property in

 

 

HB0321- 494 -LRB101 04001 HLH 49009 b

1furtherance of any commercial or industrial enterprise whether
2for-hire or not.
3    (d-2) The repairing, reconditioning or remodeling, for a
4common carrier by rail, of tangible personal property which
5belongs to such carrier for hire, and as to which such carrier
6receives the physical possession of the repaired,
7reconditioned or remodeled item of tangible personal property
8in Illinois, and which such carrier transports, or shares with
9another common carrier in the transportation of such property,
10out of Illinois on a standard uniform bill of lading showing
11the person who repaired, reconditioned or remodeled the
12property as the shipper or consignor of such property to a
13destination outside Illinois, for use outside Illinois.
14    (d-3) A sale or transfer of tangible personal property
15which is produced by the seller thereof on special order in
16such a way as to have made the applicable tax the Service
17Occupation Tax or the Service Use Tax, rather than the
18Retailers' Occupation Tax or the Use Tax, for an interstate
19carrier by rail which receives the physical possession of such
20property in Illinois, and which transports such property, or
21shares with another common carrier in the transportation of
22such property, out of Illinois on a standard uniform bill of
23lading showing the seller of the property as the shipper or
24consignor of such property to a destination outside Illinois,
25for use outside Illinois.
26    (d-4) Until January 1, 1997, a sale, by a registered

 

 

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1serviceman paying tax under this Act to the Department, of
2special order printed materials delivered outside Illinois and
3which are not returned to this State, if delivery is made by
4the seller or agent of the seller, including an agent who
5causes the product to be delivered outside Illinois by a common
6carrier or the U.S. postal service.
7    (e) A sale or transfer of machinery and equipment used
8primarily in the process of the manufacturing or assembling,
9either in an existing, an expanded or a new manufacturing
10facility, of tangible personal property for wholesale or retail
11sale or lease, whether such sale or lease is made directly by
12the manufacturer or by some other person, whether the materials
13used in the process are owned by the manufacturer or some other
14person, or whether such sale or lease is made apart from or as
15an incident to the seller's engaging in a service occupation
16and the applicable tax is a Service Occupation Tax or Service
17Use Tax, rather than Retailers' Occupation Tax or Use Tax. The
18exemption provided by this paragraph (e) does not include
19machinery and equipment used in (i) the generation of
20electricity for wholesale or retail sale; (ii) the generation
21or treatment of natural or artificial gas for wholesale or
22retail sale that is delivered to customers through pipes,
23pipelines, or mains; or (iii) the treatment of water for
24wholesale or retail sale that is delivered to customers through
25pipes, pipelines, or mains. The provisions of Public Act 98-583
26are declaratory of existing law as to the meaning and scope of

 

 

HB0321- 496 -LRB101 04001 HLH 49009 b

1this exemption. The exemption under this subsection (e) is
2exempt from the provisions of Section 3-75.
3    (f) Until July 1, 2003, the sale or transfer of
4distillation machinery and equipment, sold as a unit or kit and
5assembled or installed by the retailer, which machinery and
6equipment is certified by the user to be used only for the
7production of ethyl alcohol that will be used for consumption
8as motor fuel or as a component of motor fuel for the personal
9use of such user and not subject to sale or resale.
10    (g) At the election of any serviceman not required to be
11otherwise registered as a retailer under Section 2a of the
12Retailers' Occupation Tax Act, made for each fiscal year sales
13of service in which the aggregate annual cost price of tangible
14personal property transferred as an incident to the sales of
15service is less than 35% (75% in the case of servicemen
16transferring prescription drugs or servicemen engaged in
17graphic arts production) of the aggregate annual total gross
18receipts from all sales of service. The purchase of such
19tangible personal property by the serviceman shall be subject
20to tax under the Retailers' Occupation Tax Act and the Use Tax
21Act. However, if a primary serviceman who has made the election
22described in this paragraph subcontracts service work to a
23secondary serviceman who has also made the election described
24in this paragraph, the primary serviceman does not incur a Use
25Tax liability if the secondary serviceman (i) has paid or will
26pay Use Tax on his or her cost price of any tangible personal

 

 

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1property transferred to the primary serviceman and (ii)
2certifies that fact in writing to the primary serviceman.
3    Tangible personal property transferred incident to the
4completion of a maintenance agreement is exempt from the tax
5imposed pursuant to this Act.
6    Exemption (e) also includes machinery and equipment used in
7the general maintenance or repair of such exempt machinery and
8equipment or for in-house manufacture of exempt machinery and
9equipment. On and after July 1, 2017 and until July 1, 2019,
10exemption (e) also includes graphic arts machinery and
11equipment, as defined in paragraph (5) of Section 3-5. The
12machinery and equipment exemption does not include machinery
13and equipment used in (i) the generation of electricity for
14wholesale or retail sale; (ii) the generation or treatment of
15natural or artificial gas for wholesale or retail sale that is
16delivered to customers through pipes, pipelines, or mains; or
17(iii) the treatment of water for wholesale or retail sale that
18is delivered to customers through pipes, pipelines, or mains.
19The provisions of Public Act 98-583 are declaratory of existing
20law as to the meaning and scope of this exemption. For the
21purposes of exemption (e), each of these terms shall have the
22following meanings: (1) "manufacturing process" shall mean the
23production of any article of tangible personal property,
24whether such article is a finished product or an article for
25use in the process of manufacturing or assembling a different
26article of tangible personal property, by procedures commonly

 

 

HB0321- 498 -LRB101 04001 HLH 49009 b

1regarded as manufacturing, processing, fabricating, or
2refining which changes some existing material or materials into
3a material with a different form, use or name. In relation to a
4recognized integrated business composed of a series of
5operations which collectively constitute manufacturing, or
6individually constitute manufacturing operations, the
7manufacturing process shall be deemed to commence with the
8first operation or stage of production in the series, and shall
9not be deemed to end until the completion of the final product
10in the last operation or stage of production in the series; and
11further for purposes of exemption (e), photoprocessing is
12deemed to be a manufacturing process of tangible personal
13property for wholesale or retail sale; (2) "assembling process"
14shall mean the production of any article of tangible personal
15property, whether such article is a finished product or an
16article for use in the process of manufacturing or assembling a
17different article of tangible personal property, by the
18combination of existing materials in a manner commonly regarded
19as assembling which results in a material of a different form,
20use or name; (3) "machinery" shall mean major mechanical
21machines or major components of such machines contributing to a
22manufacturing or assembling process; and (4) "equipment" shall
23include any independent device or tool separate from any
24machinery but essential to an integrated manufacturing or
25assembly process; including computers used primarily in a
26manufacturer's computer assisted design, computer assisted

 

 

HB0321- 499 -LRB101 04001 HLH 49009 b

1manufacturing (CAD/CAM) system; or any subunit or assembly
2comprising a component of any machinery or auxiliary, adjunct
3or attachment parts of machinery, such as tools, dies, jigs,
4fixtures, patterns and molds; or any parts which require
5periodic replacement in the course of normal operation; but
6shall not include hand tools. Equipment includes chemicals or
7chemicals acting as catalysts but only if the chemicals or
8chemicals acting as catalysts effect a direct and immediate
9change upon a product being manufactured or assembled for
10wholesale or retail sale or lease. The purchaser of such
11machinery and equipment who has an active resale registration
12number shall furnish such number to the seller at the time of
13purchase. The purchaser of such machinery and equipment and
14tools without an active resale registration number shall
15furnish to the seller a certificate of exemption for each
16transaction stating facts establishing the exemption for that
17transaction, which certificate shall be available to the
18Department for inspection or audit.
19    Except as provided in Section 2d of this Act, the rolling
20stock exemption applies to rolling stock used by an interstate
21carrier for hire, even just between points in Illinois, if such
22rolling stock transports, for hire, persons whose journeys or
23property whose shipments originate or terminate outside
24Illinois.
25    Any informal rulings, opinions or letters issued by the
26Department in response to an inquiry or request for any opinion

 

 

HB0321- 500 -LRB101 04001 HLH 49009 b

1from any person regarding the coverage and applicability of
2exemption (e) to specific devices shall be published,
3maintained as a public record, and made available for public
4inspection and copying. If the informal ruling, opinion or
5letter contains trade secrets or other confidential
6information, where possible the Department shall delete such
7information prior to publication. Whenever such informal
8rulings, opinions, or letters contain any policy of general
9applicability, the Department shall formulate and adopt such
10policy as a rule in accordance with the provisions of the
11Illinois Administrative Procedure Act.
12    On and after July 1, 1987, no entity otherwise eligible
13under exemption (c) of this Section shall make tax-free
14purchases unless it has an active exemption identification
15number issued by the Department.
16    "Serviceman" means any person who is engaged in the
17occupation of making sales of service.
18    "Sale at Retail" means "sale at retail" as defined in the
19Retailers' Occupation Tax Act.
20    "Supplier" means any person who makes sales of tangible
21personal property to servicemen for the purpose of resale as an
22incident to a sale of service.
23(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
24100-863, eff. 8-14-18.)
 
25    (35 ILCS 115/3-5)

 

 

HB0321- 501 -LRB101 04001 HLH 49009 b

1    Sec. 3-5. Exemptions. The following tangible personal
2property is exempt from the tax imposed by this Act:
3    (1) Personal property sold by a corporation, society,
4association, foundation, institution, or organization, other
5than a limited liability company, that is organized and
6operated as a not-for-profit service enterprise for the benefit
7of persons 65 years of age or older if the personal property
8was not purchased by the enterprise for the purpose of resale
9by the enterprise.
10    (2) Personal property purchased by a not-for-profit
11Illinois county fair association for use in conducting,
12operating, or promoting the county fair.
13    (3) Personal property purchased by any not-for-profit arts
14or cultural organization that establishes, by proof required by
15the Department by rule, that it has received an exemption under
16Section 501(c)(3) of the Internal Revenue Code and that is
17organized and operated primarily for the presentation or
18support of arts or cultural programming, activities, or
19services. These organizations include, but are not limited to,
20music and dramatic arts organizations such as symphony
21orchestras and theatrical groups, arts and cultural service
22organizations, local arts councils, visual arts organizations,
23and media arts organizations. On and after the effective date
24of this amendatory Act of the 92nd General Assembly, however,
25an entity otherwise eligible for this exemption shall not make
26tax-free purchases unless it has an active identification

 

 

HB0321- 502 -LRB101 04001 HLH 49009 b

1number issued by the Department.
2    (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6    (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product. Beginning on July
151, 2017 and until July 1, 2019, graphic arts machinery and
16equipment is included in the manufacturing and assembling
17machinery and equipment exemption under Section 2 of this Act.
18    (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21    (7) Farm machinery and equipment, both new and used,
22including that manufactured on special order, certified by the
23purchaser to be used primarily for production agriculture or
24State or federal agricultural programs, including individual
25replacement parts for the machinery and equipment, including
26machinery and equipment purchased for lease, and including

 

 

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1implements of husbandry defined in Section 1-130 of the
2Illinois Vehicle Code, farm machinery and agricultural
3chemical and fertilizer spreaders, and nurse wagons required to
4be registered under Section 3-809 of the Illinois Vehicle Code,
5but excluding other motor vehicles required to be registered
6under the Illinois Vehicle Code. Horticultural polyhouses or
7hoop houses used for propagating, growing, or overwintering
8plants shall be considered farm machinery and equipment under
9this item (7). Agricultural chemical tender tanks and dry boxes
10shall include units sold separately from a motor vehicle
11required to be licensed and units sold mounted on a motor
12vehicle required to be licensed if the selling price of the
13tender is separately stated.
14    Farm machinery and equipment shall include precision
15farming equipment that is installed or purchased to be
16installed on farm machinery and equipment including, but not
17limited to, tractors, harvesters, sprayers, planters, seeders,
18or spreaders. Precision farming equipment includes, but is not
19limited to, soil testing sensors, computers, monitors,
20software, global positioning and mapping systems, and other
21such equipment.
22    Farm machinery and equipment also includes computers,
23sensors, software, and related equipment used primarily in the
24computer-assisted operation of production agriculture
25facilities, equipment, and activities such as, but not limited
26to, the collection, monitoring, and correlation of animal and

 

 

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1crop data for the purpose of formulating animal diets and
2agricultural chemicals. This item (7) is exempt from the
3provisions of Section 3-55.
4    (8) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the conduct
7of its business as an air common carrier, for a flight destined
8for or returning from a location or locations outside the
9United States without regard to previous or subsequent domestic
10stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold to
12or used by an air carrier, certified by the carrier to be used
13for consumption, shipment, or storage in the conduct of its
14business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports at
17least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (9) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages, to the extent that the proceeds of the
24service charge are in fact turned over as tips or as a
25substitute for tips to the employees who participate directly
26in preparing, serving, hosting or cleaning up the food or

 

 

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1beverage function with respect to which the service charge is
2imposed.
3    (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12    (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (12) Until July 1, 2023, coal and aggregate exploration,
18mining, off-highway hauling, processing, maintenance, and
19reclamation equipment, including replacement parts and
20equipment, and including equipment purchased for lease, but
21excluding motor vehicles required to be registered under the
22Illinois Vehicle Code. The changes made to this Section by
23Public Act 97-767 apply on and after July 1, 2003, but no claim
24for credit or refund is allowed on or after August 16, 2013
25(the effective date of Public Act 98-456) for such taxes paid
26during the period beginning July 1, 2003 and ending on August

 

 

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116, 2013 (the effective date of Public Act 98-456).
2    (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act, the MC/DD Act, or the
14Specialized Mental Health Rehabilitation Act of 2013.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the provisions
23of Section 3-55, and the exemption provided for under this item
24(15) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

 

 

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1paid during the period beginning May 30, 2000 and ending on
2January 1, 2008 (the effective date of Public Act 95-88).
3    (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act.
11    (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers' Occupation
16Tax Act.
17    (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

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1    (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17    (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (22) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-55.
23    (23) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-55.
7    (24) Beginning on the effective date of this amendatory Act
8of the 92nd General Assembly, computers and communications
9equipment utilized for any hospital purpose and equipment used
10in the diagnosis, analysis, or treatment of hospital patients
11sold to a lessor who leases the equipment, under a lease of one
12year or longer executed or in effect at the time of the
13purchase, to a hospital that has been issued an active tax
14exemption identification number by the Department under
15Section 1g of the Retailers' Occupation Tax Act. This paragraph
16is exempt from the provisions of Section 3-55.
17    (25) Beginning on the effective date of this amendatory Act
18of the 92nd General Assembly, personal property sold to a
19lessor who leases the property, under a lease of one year or
20longer executed or in effect at the time of the purchase, to a
21governmental body that has been issued an active tax exemption
22identification number by the Department under Section 1g of the
23Retailers' Occupation Tax Act. This paragraph is exempt from
24the provisions of Section 3-55.
25    (26) Beginning on January 1, 2002 and through June 30,
262016, tangible personal property purchased from an Illinois

 

 

HB0321- 511 -LRB101 04001 HLH 49009 b

1retailer by a taxpayer engaged in centralized purchasing
2activities in Illinois who will, upon receipt of the property
3in Illinois, temporarily store the property in Illinois (i) for
4the purpose of subsequently transporting it outside this State
5for use or consumption thereafter solely outside this State or
6(ii) for the purpose of being processed, fabricated, or
7manufactured into, attached to, or incorporated into other
8tangible personal property to be transported outside this State
9and thereafter used or consumed solely outside this State. The
10Director of Revenue shall, pursuant to rules adopted in
11accordance with the Illinois Administrative Procedure Act,
12issue a permit to any taxpayer in good standing with the
13Department who is eligible for the exemption under this
14paragraph (26). The permit issued under this paragraph (26)
15shall authorize the holder, to the extent and in the manner
16specified in the rules adopted under this Act, to purchase
17tangible personal property from a retailer exempt from the
18taxes imposed by this Act. Taxpayers shall maintain all
19necessary books and records to substantiate the use and
20consumption of all such tangible personal property outside of
21the State of Illinois.
22    (27) Beginning January 1, 2008, tangible personal property
23used in the construction or maintenance of a community water
24supply, as defined under Section 3.145 of the Environmental
25Protection Act, that is operated by a not-for-profit
26corporation that holds a valid water supply permit issued under

 

 

HB0321- 512 -LRB101 04001 HLH 49009 b

1Title IV of the Environmental Protection Act. This paragraph is
2exempt from the provisions of Section 3-55.
3    (28) Tangible personal property sold to a
4public-facilities corporation, as described in Section
511-65-10 of the Illinois Municipal Code, for purposes of
6constructing or furnishing a municipal convention hall, but
7only if the legal title to the municipal convention hall is
8transferred to the municipality without any further
9consideration by or on behalf of the municipality at the time
10of the completion of the municipal convention hall or upon the
11retirement or redemption of any bonds or other debt instruments
12issued by the public-facilities corporation in connection with
13the development of the municipal convention hall. This
14exemption includes existing public-facilities corporations as
15provided in Section 11-65-25 of the Illinois Municipal Code.
16This paragraph is exempt from the provisions of Section 3-55.
17    (29) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

HB0321- 513 -LRB101 04001 HLH 49009 b

1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the transfer of
6qualifying tangible personal property incident to the
7modification, refurbishment, completion, replacement, repair,
8or maintenance of an aircraft by persons who (i) hold an Air
9Agency Certificate and are empowered to operate an approved
10repair station by the Federal Aviation Administration, (ii)
11have a Class IV Rating, and (iii) conduct operations in
12accordance with Part 145 of the Federal Aviation Regulations.
13The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part 129
16of the Federal Aviation Regulations. The changes made to this
17paragraph (29) by Public Act 98-534 are declarative of existing
18law.
19    (30) Beginning January 1, 2017, menstrual pads, tampons,
20and menstrual cups.
21(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
22100-22, eff. 7-6-17; 100-594, eff. 6-29-18.)
 
23    Section 165. The Retailers' Occupation Tax Act is amended
24by changing Sections 2-5 and 2-45 as follows:
 

 

 

HB0321- 514 -LRB101 04001 HLH 49009 b

1    (35 ILCS 120/2-5)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
3sale of the following tangible personal property are exempt
4from the tax imposed by this Act:
5        (1) Farm chemicals.
6        (2) Farm machinery and equipment, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for production
9    agriculture or State or federal agricultural programs,
10    including individual replacement parts for the machinery
11    and equipment, including machinery and equipment purchased
12    for lease, and including implements of husbandry defined in
13    Section 1-130 of the Illinois Vehicle Code, farm machinery
14    and agricultural chemical and fertilizer spreaders, and
15    nurse wagons required to be registered under Section 3-809
16    of the Illinois Vehicle Code, but excluding other motor
17    vehicles required to be registered under the Illinois
18    Vehicle Code. Horticultural polyhouses or hoop houses used
19    for propagating, growing, or overwintering plants shall be
20    considered farm machinery and equipment under this item
21    (2). Agricultural chemical tender tanks and dry boxes shall
22    include units sold separately from a motor vehicle required
23    to be licensed and units sold mounted on a motor vehicle
24    required to be licensed, if the selling price of the tender
25    is separately stated.
26        Farm machinery and equipment shall include precision

 

 

HB0321- 515 -LRB101 04001 HLH 49009 b

1    farming equipment that is installed or purchased to be
2    installed on farm machinery and equipment including, but
3    not limited to, tractors, harvesters, sprayers, planters,
4    seeders, or spreaders. Precision farming equipment
5    includes, but is not limited to, soil testing sensors,
6    computers, monitors, software, global positioning and
7    mapping systems, and other such equipment.
8        Farm machinery and equipment also includes computers,
9    sensors, software, and related equipment used primarily in
10    the computer-assisted operation of production agriculture
11    facilities, equipment, and activities such as, but not
12    limited to, the collection, monitoring, and correlation of
13    animal and crop data for the purpose of formulating animal
14    diets and agricultural chemicals. This item (2) is exempt
15    from the provisions of Section 2-70.
16        (3) Until July 1, 2003, distillation machinery and
17    equipment, sold as a unit or kit, assembled or installed by
18    the retailer, certified by the user to be used only for the
19    production of ethyl alcohol that will be used for
20    consumption as motor fuel or as a component of motor fuel
21    for the personal use of the user, and not subject to sale
22    or resale.
23        (4) Until July 1, 2003 and beginning again September 1,
24    2004 through August 30, 2014, graphic arts machinery and
25    equipment, including repair and replacement parts, both
26    new and used, and including that manufactured on special

 

 

HB0321- 516 -LRB101 04001 HLH 49009 b

1    order or purchased for lease, certified by the purchaser to
2    be used primarily for graphic arts production. Equipment
3    includes chemicals or chemicals acting as catalysts but
4    only if the chemicals or chemicals acting as catalysts
5    effect a direct and immediate change upon a graphic arts
6    product. Beginning on July 1, 2017 and until July 1, 2019,
7    graphic arts machinery and equipment is included in the
8    manufacturing and assembling machinery and equipment
9    exemption under paragraph (14).
10        (5) A motor vehicle that is used for automobile
11    renting, as defined in the Automobile Renting Occupation
12    and Use Tax Act. This paragraph is exempt from the
13    provisions of Section 2-70.
14        (6) Personal property sold by a teacher-sponsored
15    student organization affiliated with an elementary or
16    secondary school located in Illinois.
17        (7) Until July 1, 2003, proceeds of that portion of the
18    selling price of a passenger car the sale of which is
19    subject to the Replacement Vehicle Tax.
20        (8) Personal property sold to an Illinois county fair
21    association for use in conducting, operating, or promoting
22    the county fair.
23        (9) Personal property sold to a not-for-profit arts or
24    cultural organization that establishes, by proof required
25    by the Department by rule, that it has received an
26    exemption under Section 501(c)(3) of the Internal Revenue

 

 

HB0321- 517 -LRB101 04001 HLH 49009 b

1    Code and that is organized and operated primarily for the
2    presentation or support of arts or cultural programming,
3    activities, or services. These organizations include, but
4    are not limited to, music and dramatic arts organizations
5    such as symphony orchestras and theatrical groups, arts and
6    cultural service organizations, local arts councils,
7    visual arts organizations, and media arts organizations.
8    On and after July 1, 2001 (the effective date of Public Act
9    92-35), however, an entity otherwise eligible for this
10    exemption shall not make tax-free purchases unless it has
11    an active identification number issued by the Department.
12        (10) Personal property sold by a corporation, society,
13    association, foundation, institution, or organization,
14    other than a limited liability company, that is organized
15    and operated as a not-for-profit service enterprise for the
16    benefit of persons 65 years of age or older if the personal
17    property was not purchased by the enterprise for the
18    purpose of resale by the enterprise.
19        (11) Personal property sold to a governmental body, to
20    a corporation, society, association, foundation, or
21    institution organized and operated exclusively for
22    charitable, religious, or educational purposes, or to a
23    not-for-profit corporation, society, association,
24    foundation, institution, or organization that has no
25    compensated officers or employees and that is organized and
26    operated primarily for the recreation of persons 55 years

 

 

HB0321- 518 -LRB101 04001 HLH 49009 b

1    of age or older. A limited liability company may qualify
2    for the exemption under this paragraph only if the limited
3    liability company is organized and operated exclusively
4    for educational purposes. On and after July 1, 1987,
5    however, no entity otherwise eligible for this exemption
6    shall make tax-free purchases unless it has an active
7    identification number issued by the Department.
8        (12) (Blank).
9        (12-5) On and after July 1, 2003 and through June 30,
10    2004, motor vehicles of the second division with a gross
11    vehicle weight in excess of 8,000 pounds that are subject
12    to the commercial distribution fee imposed under Section
13    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
14    2004 and through June 30, 2005, the use in this State of
15    motor vehicles of the second division: (i) with a gross
16    vehicle weight rating in excess of 8,000 pounds; (ii) that
17    are subject to the commercial distribution fee imposed
18    under Section 3-815.1 of the Illinois Vehicle Code; and
19    (iii) that are primarily used for commercial purposes.
20    Through June 30, 2005, this exemption applies to repair and
21    replacement parts added after the initial purchase of such
22    a motor vehicle if that motor vehicle is used in a manner
23    that would qualify for the rolling stock exemption
24    otherwise provided for in this Act. For purposes of this
25    paragraph, "used for commercial purposes" means the
26    transportation of persons or property in furtherance of any

 

 

HB0321- 519 -LRB101 04001 HLH 49009 b

1    commercial or industrial enterprise whether for-hire or
2    not.
3        (13) Proceeds from sales to owners, lessors, or
4    shippers of tangible personal property that is utilized by
5    interstate carriers for hire for use as rolling stock
6    moving in interstate commerce and equipment operated by a
7    telecommunications provider, licensed as a common carrier
8    by the Federal Communications Commission, which is
9    permanently installed in or affixed to aircraft moving in
10    interstate commerce.
11        (14) Machinery and equipment that will be used by the
12    purchaser, or a lessee of the purchaser, primarily in the
13    process of manufacturing or assembling tangible personal
14    property for wholesale or retail sale or lease, whether the
15    sale or lease is made directly by the manufacturer or by
16    some other person, whether the materials used in the
17    process are owned by the manufacturer or some other person,
18    or whether the sale or lease is made apart from or as an
19    incident to the seller's engaging in the service occupation
20    of producing machines, tools, dies, jigs, patterns,
21    gauges, or other similar items of no commercial value on
22    special order for a particular purchaser. The exemption
23    provided by this paragraph (14) does not include machinery
24    and equipment used in (i) the generation of electricity for
25    wholesale or retail sale; (ii) the generation or treatment
26    of natural or artificial gas for wholesale or retail sale

 

 

HB0321- 520 -LRB101 04001 HLH 49009 b

1    that is delivered to customers through pipes, pipelines, or
2    mains; or (iii) the treatment of water for wholesale or
3    retail sale that is delivered to customers through pipes,
4    pipelines, or mains. The provisions of Public Act 98-583
5    are declaratory of existing law as to the meaning and scope
6    of this exemption. Beginning on July 1, 2017 and until July
7    1, 2019, the exemption provided by this paragraph (14)
8    includes, but is not limited to, graphic arts machinery and
9    equipment, as defined in paragraph (4) of this Section.
10        (15) Proceeds of mandatory service charges separately
11    stated on customers' bills for purchase and consumption of
12    food and beverages, to the extent that the proceeds of the
13    service charge are in fact turned over as tips or as a
14    substitute for tips to the employees who participate
15    directly in preparing, serving, hosting or cleaning up the
16    food or beverage function with respect to which the service
17    charge is imposed.
18        (16) Petroleum products sold to a purchaser if the
19    seller is prohibited by federal law from charging tax to
20    the purchaser.
21        (17) Tangible personal property sold to a common
22    carrier by rail or motor that receives the physical
23    possession of the property in Illinois and that transports
24    the property, or shares with another common carrier in the
25    transportation of the property, out of Illinois on a
26    standard uniform bill of lading showing the seller of the

 

 

HB0321- 521 -LRB101 04001 HLH 49009 b

1    property as the shipper or consignor of the property to a
2    destination outside Illinois, for use outside Illinois.
3        (18) Legal tender, currency, medallions, or gold or
4    silver coinage issued by the State of Illinois, the
5    government of the United States of America, or the
6    government of any foreign country, and bullion.
7        (19) Until July 1, 2003, oil field exploration,
8    drilling, and production equipment, including (i) rigs and
9    parts of rigs, rotary rigs, cable tool rigs, and workover
10    rigs, (ii) pipe and tubular goods, including casing and
11    drill strings, (iii) pumps and pump-jack units, (iv)
12    storage tanks and flow lines, (v) any individual
13    replacement part for oil field exploration, drilling, and
14    production equipment, and (vi) machinery and equipment
15    purchased for lease; but excluding motor vehicles required
16    to be registered under the Illinois Vehicle Code.
17        (20) Photoprocessing machinery and equipment,
18    including repair and replacement parts, both new and used,
19    including that manufactured on special order, certified by
20    the purchaser to be used primarily for photoprocessing, and
21    including photoprocessing machinery and equipment
22    purchased for lease.
23        (21) Until July 1, 2023, coal and aggregate
24    exploration, mining, off-highway hauling, processing,
25    maintenance, and reclamation equipment, including
26    replacement parts and equipment, and including equipment

 

 

HB0321- 522 -LRB101 04001 HLH 49009 b

1    purchased for lease, but excluding motor vehicles required
2    to be registered under the Illinois Vehicle Code. The
3    changes made to this Section by Public Act 97-767 apply on
4    and after July 1, 2003, but no claim for credit or refund
5    is allowed on or after August 16, 2013 (the effective date
6    of Public Act 98-456) for such taxes paid during the period
7    beginning July 1, 2003 and ending on August 16, 2013 (the
8    effective date of Public Act 98-456).
9        (22) Until June 30, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight destined for or returning from a location or
14    locations outside the United States without regard to
15    previous or subsequent domestic stopovers.
16        Beginning July 1, 2013, fuel and petroleum products
17    sold to or used by an air carrier, certified by the carrier
18    to be used for consumption, shipment, or storage in the
19    conduct of its business as an air common carrier, for a
20    flight that (i) is engaged in foreign trade or is engaged
21    in trade between the United States and any of its
22    possessions and (ii) transports at least one individual or
23    package for hire from the city of origination to the city
24    of final destination on the same aircraft, without regard
25    to a change in the flight number of that aircraft.
26        (23) A transaction in which the purchase order is

 

 

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1    received by a florist who is located outside Illinois, but
2    who has a florist located in Illinois deliver the property
3    to the purchaser or the purchaser's donee in Illinois.
4        (24) Fuel consumed or used in the operation of ships,
5    barges, or vessels that are used primarily in or for the
6    transportation of property or the conveyance of persons for
7    hire on rivers bordering on this State if the fuel is
8    delivered by the seller to the purchaser's barge, ship, or
9    vessel while it is afloat upon that bordering river.
10        (25) Except as provided in item (25-5) of this Section,
11    a motor vehicle sold in this State to a nonresident even
12    though the motor vehicle is delivered to the nonresident in
13    this State, if the motor vehicle is not to be titled in
14    this State, and if a drive-away permit is issued to the
15    motor vehicle as provided in Section 3-603 of the Illinois
16    Vehicle Code or if the nonresident purchaser has vehicle
17    registration plates to transfer to the motor vehicle upon
18    returning to his or her home state. The issuance of the
19    drive-away permit or having the out-of-state registration
20    plates to be transferred is prima facie evidence that the
21    motor vehicle will not be titled in this State.
22        (25-5) The exemption under item (25) does not apply if
23    the state in which the motor vehicle will be titled does
24    not allow a reciprocal exemption for a motor vehicle sold
25    and delivered in that state to an Illinois resident but
26    titled in Illinois. The tax collected under this Act on the

 

 

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1    sale of a motor vehicle in this State to a resident of
2    another state that does not allow a reciprocal exemption
3    shall be imposed at a rate equal to the state's rate of tax
4    on taxable property in the state in which the purchaser is
5    a resident, except that the tax shall not exceed the tax
6    that would otherwise be imposed under this Act. At the time
7    of the sale, the purchaser shall execute a statement,
8    signed under penalty of perjury, of his or her intent to
9    title the vehicle in the state in which the purchaser is a
10    resident within 30 days after the sale and of the fact of
11    the payment to the State of Illinois of tax in an amount
12    equivalent to the state's rate of tax on taxable property
13    in his or her state of residence and shall submit the
14    statement to the appropriate tax collection agency in his
15    or her state of residence. In addition, the retailer must
16    retain a signed copy of the statement in his or her
17    records. Nothing in this item shall be construed to require
18    the removal of the vehicle from this state following the
19    filing of an intent to title the vehicle in the purchaser's
20    state of residence if the purchaser titles the vehicle in
21    his or her state of residence within 30 days after the date
22    of sale. The tax collected under this Act in accordance
23    with this item (25-5) shall be proportionately distributed
24    as if the tax were collected at the 6.25% general rate
25    imposed under this Act.
26        (25-7) Beginning on July 1, 2007, no tax is imposed

 

 

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1    under this Act on the sale of an aircraft, as defined in
2    Section 3 of the Illinois Aeronautics Act, if all of the
3    following conditions are met:
4            (1) the aircraft leaves this State within 15 days
5        after the later of either the issuance of the final
6        billing for the sale of the aircraft, or the authorized
7        approval for return to service, completion of the
8        maintenance record entry, and completion of the test
9        flight and ground test for inspection, as required by
10        14 C.F.R. 91.407;
11            (2) the aircraft is not based or registered in this
12        State after the sale of the aircraft; and
13            (3) the seller retains in his or her books and
14        records and provides to the Department a signed and
15        dated certification from the purchaser, on a form
16        prescribed by the Department, certifying that the
17        requirements of this item (25-7) are met. The
18        certificate must also include the name and address of
19        the purchaser, the address of the location where the
20        aircraft is to be titled or registered, the address of
21        the primary physical location of the aircraft, and
22        other information that the Department may reasonably
23        require.
24        For purposes of this item (25-7):
25        "Based in this State" means hangared, stored, or
26    otherwise used, excluding post-sale customizations as

 

 

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1    defined in this Section, for 10 or more days in each
2    12-month period immediately following the date of the sale
3    of the aircraft.
4        "Registered in this State" means an aircraft
5    registered with the Department of Transportation,
6    Aeronautics Division, or titled or registered with the
7    Federal Aviation Administration to an address located in
8    this State.
9        This paragraph (25-7) is exempt from the provisions of
10    Section 2-70.
11        (26) Semen used for artificial insemination of
12    livestock for direct agricultural production.
13        (27) Horses, or interests in horses, registered with
14    and meeting the requirements of any of the Arabian Horse
15    Club Registry of America, Appaloosa Horse Club, American
16    Quarter Horse Association, United States Trotting
17    Association, or Jockey Club, as appropriate, used for
18    purposes of breeding or racing for prizes. This item (27)
19    is exempt from the provisions of Section 2-70, and the
20    exemption provided for under this item (27) applies for all
21    periods beginning May 30, 1995, but no claim for credit or
22    refund is allowed on or after January 1, 2008 (the
23    effective date of Public Act 95-88) for such taxes paid
24    during the period beginning May 30, 2000 and ending on
25    January 1, 2008 (the effective date of Public Act 95-88).
26        (28) Computers and communications equipment utilized

 

 

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1    for any hospital purpose and equipment used in the
2    diagnosis, analysis, or treatment of hospital patients
3    sold to a lessor who leases the equipment, under a lease of
4    one year or longer executed or in effect at the time of the
5    purchase, to a hospital that has been issued an active tax
6    exemption identification number by the Department under
7    Section 1g of this Act.
8        (29) Personal property sold to a lessor who leases the
9    property, under a lease of one year or longer executed or
10    in effect at the time of the purchase, to a governmental
11    body that has been issued an active tax exemption
12    identification number by the Department under Section 1g of
13    this Act.
14        (30) Beginning with taxable years ending on or after
15    December 31, 1995 and ending with taxable years ending on
16    or before December 31, 2004, personal property that is
17    donated for disaster relief to be used in a State or
18    federally declared disaster area in Illinois or bordering
19    Illinois by a manufacturer or retailer that is registered
20    in this State to a corporation, society, association,
21    foundation, or institution that has been issued a sales tax
22    exemption identification number by the Department that
23    assists victims of the disaster who reside within the
24    declared disaster area.
25        (31) Beginning with taxable years ending on or after
26    December 31, 1995 and ending with taxable years ending on

 

 

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1    or before December 31, 2004, personal property that is used
2    in the performance of infrastructure repairs in this State,
3    including but not limited to municipal roads and streets,
4    access roads, bridges, sidewalks, waste disposal systems,
5    water and sewer line extensions, water distribution and
6    purification facilities, storm water drainage and
7    retention facilities, and sewage treatment facilities,
8    resulting from a State or federally declared disaster in
9    Illinois or bordering Illinois when such repairs are
10    initiated on facilities located in the declared disaster
11    area within 6 months after the disaster.
12        (32) Beginning July 1, 1999, game or game birds sold at
13    a "game breeding and hunting preserve area" as that term is
14    used in the Wildlife Code. This paragraph is exempt from
15    the provisions of Section 2-70.
16        (33) A motor vehicle, as that term is defined in
17    Section 1-146 of the Illinois Vehicle Code, that is donated
18    to a corporation, limited liability company, society,
19    association, foundation, or institution that is determined
20    by the Department to be organized and operated exclusively
21    for educational purposes. For purposes of this exemption,
22    "a corporation, limited liability company, society,
23    association, foundation, or institution organized and
24    operated exclusively for educational purposes" means all
25    tax-supported public schools, private schools that offer
26    systematic instruction in useful branches of learning by

 

 

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1    methods common to public schools and that compare favorably
2    in their scope and intensity with the course of study
3    presented in tax-supported schools, and vocational or
4    technical schools or institutes organized and operated
5    exclusively to provide a course of study of not less than 6
6    weeks duration and designed to prepare individuals to
7    follow a trade or to pursue a manual, technical,
8    mechanical, industrial, business, or commercial
9    occupation.
10        (34) Beginning January 1, 2000, personal property,
11    including food, purchased through fundraising events for
12    the benefit of a public or private elementary or secondary
13    school, a group of those schools, or one or more school
14    districts if the events are sponsored by an entity
15    recognized by the school district that consists primarily
16    of volunteers and includes parents and teachers of the
17    school children. This paragraph does not apply to
18    fundraising events (i) for the benefit of private home
19    instruction or (ii) for which the fundraising entity
20    purchases the personal property sold at the events from
21    another individual or entity that sold the property for the
22    purpose of resale by the fundraising entity and that
23    profits from the sale to the fundraising entity. This
24    paragraph is exempt from the provisions of Section 2-70.
25        (35) Beginning January 1, 2000 and through December 31,
26    2001, new or used automatic vending machines that prepare

 

 

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1    and serve hot food and beverages, including coffee, soup,
2    and other items, and replacement parts for these machines.
3    Beginning January 1, 2002 and through June 30, 2003,
4    machines and parts for machines used in commercial,
5    coin-operated amusement and vending business if a use or
6    occupation tax is paid on the gross receipts derived from
7    the use of the commercial, coin-operated amusement and
8    vending machines. This paragraph is exempt from the
9    provisions of Section 2-70.
10        (35-5) Beginning August 23, 2001 and through June 30,
11    2016, food for human consumption that is to be consumed off
12    the premises where it is sold (other than alcoholic
13    beverages, soft drinks, and food that has been prepared for
14    immediate consumption) and prescription and
15    nonprescription medicines, drugs, medical appliances, and
16    insulin, urine testing materials, syringes, and needles
17    used by diabetics, for human use, when purchased for use by
18    a person receiving medical assistance under Article V of
19    the Illinois Public Aid Code who resides in a licensed
20    long-term care facility, as defined in the Nursing Home
21    Care Act, or a licensed facility as defined in the ID/DD
22    Community Care Act, the MC/DD Act, or the Specialized
23    Mental Health Rehabilitation Act of 2013.
24        (36) Beginning August 2, 2001, computers and
25    communications equipment utilized for any hospital purpose
26    and equipment used in the diagnosis, analysis, or treatment

 

 

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1    of hospital patients sold to a lessor who leases the
2    equipment, under a lease of one year or longer executed or
3    in effect at the time of the purchase, to a hospital that
4    has been issued an active tax exemption identification
5    number by the Department under Section 1g of this Act. This
6    paragraph is exempt from the provisions of Section 2-70.
7        (37) Beginning August 2, 2001, personal property sold
8    to a lessor who leases the property, under a lease of one
9    year or longer executed or in effect at the time of the
10    purchase, to a governmental body that has been issued an
11    active tax exemption identification number by the
12    Department under Section 1g of this Act. This paragraph is
13    exempt from the provisions of Section 2-70.
14        (38) Beginning on January 1, 2002 and through June 30,
15    2016, tangible personal property purchased from an
16    Illinois retailer by a taxpayer engaged in centralized
17    purchasing activities in Illinois who will, upon receipt of
18    the property in Illinois, temporarily store the property in
19    Illinois (i) for the purpose of subsequently transporting
20    it outside this State for use or consumption thereafter
21    solely outside this State or (ii) for the purpose of being
22    processed, fabricated, or manufactured into, attached to,
23    or incorporated into other tangible personal property to be
24    transported outside this State and thereafter used or
25    consumed solely outside this State. The Director of Revenue
26    shall, pursuant to rules adopted in accordance with the

 

 

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1    Illinois Administrative Procedure Act, issue a permit to
2    any taxpayer in good standing with the Department who is
3    eligible for the exemption under this paragraph (38). The
4    permit issued under this paragraph (38) shall authorize the
5    holder, to the extent and in the manner specified in the
6    rules adopted under this Act, to purchase tangible personal
7    property from a retailer exempt from the taxes imposed by
8    this Act. Taxpayers shall maintain all necessary books and
9    records to substantiate the use and consumption of all such
10    tangible personal property outside of the State of
11    Illinois.
12        (39) Beginning January 1, 2008, tangible personal
13    property used in the construction or maintenance of a
14    community water supply, as defined under Section 3.145 of
15    the Environmental Protection Act, that is operated by a
16    not-for-profit corporation that holds a valid water supply
17    permit issued under Title IV of the Environmental
18    Protection Act. This paragraph is exempt from the
19    provisions of Section 2-70.
20        (40) Beginning January 1, 2010, materials, parts,
21    equipment, components, and furnishings incorporated into
22    or upon an aircraft as part of the modification,
23    refurbishment, completion, replacement, repair, or
24    maintenance of the aircraft. This exemption includes
25    consumable supplies used in the modification,
26    refurbishment, completion, replacement, repair, and

 

 

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1    maintenance of aircraft, but excludes any materials,
2    parts, equipment, components, and consumable supplies used
3    in the modification, replacement, repair, and maintenance
4    of aircraft engines or power plants, whether such engines
5    or power plants are installed or uninstalled upon any such
6    aircraft. "Consumable supplies" include, but are not
7    limited to, adhesive, tape, sandpaper, general purpose
8    lubricants, cleaning solution, latex gloves, and
9    protective films. This exemption applies only to the sale
10    of qualifying tangible personal property to persons who
11    modify, refurbish, complete, replace, or maintain an
12    aircraft and who (i) hold an Air Agency Certificate and are
13    empowered to operate an approved repair station by the
14    Federal Aviation Administration, (ii) have a Class IV
15    Rating, and (iii) conduct operations in accordance with
16    Part 145 of the Federal Aviation Regulations. The exemption
17    does not include aircraft operated by a commercial air
18    carrier providing scheduled passenger air service pursuant
19    to authority issued under Part 121 or Part 129 of the
20    Federal Aviation Regulations. The changes made to this
21    paragraph (40) by Public Act 98-534 are declarative of
22    existing law.
23        (41) Tangible personal property sold to a
24    public-facilities corporation, as described in Section
25    11-65-10 of the Illinois Municipal Code, for purposes of
26    constructing or furnishing a municipal convention hall,

 

 

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1    but only if the legal title to the municipal convention
2    hall is transferred to the municipality without any further
3    consideration by or on behalf of the municipality at the
4    time of the completion of the municipal convention hall or
5    upon the retirement or redemption of any bonds or other
6    debt instruments issued by the public-facilities
7    corporation in connection with the development of the
8    municipal convention hall. This exemption includes
9    existing public-facilities corporations as provided in
10    Section 11-65-25 of the Illinois Municipal Code. This
11    paragraph is exempt from the provisions of Section 2-70.
12        (42) Beginning January 1, 2017, menstrual pads,
13    tampons, and menstrual cups.
14        (43) Merchandise that is subject to the Rental Purchase
15    Agreement Occupation and Use Tax. The purchaser must
16    certify that the item is purchased to be rented subject to
17    a rental purchase agreement, as defined in the Rental
18    Purchase Agreement Act, and provide proof of registration
19    under the Rental Purchase Agreement Occupation and Use Tax
20    Act. This paragraph is exempt from the provisions of
21    Section 2-70.
22(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
23100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
241-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18.)
 
25    (35 ILCS 120/2-45)  (from Ch. 120, par. 441-45)

 

 

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1    Sec. 2-45. Manufacturing and assembly exemption. The
2manufacturing and assembly machinery and equipment exemption
3includes machinery and equipment that replaces machinery and
4equipment in an existing manufacturing facility as well as
5machinery and equipment that are for use in an expanded or new
6manufacturing facility.
7    The machinery and equipment exemption also includes
8machinery and equipment used in the general maintenance or
9repair of exempt machinery and equipment or for in-house
10manufacture of exempt machinery and equipment. Beginning on
11July 1, 2017 and until July 1, 2019, the manufacturing and
12assembling machinery and equipment exemption also includes
13graphic arts machinery and equipment, as defined in paragraph
14(4) of Section 2-5. The machinery and equipment exemption does
15not include machinery and equipment used in (i) the generation
16of electricity for wholesale or retail sale; (ii) the
17generation or treatment of natural or artificial gas for
18wholesale or retail sale that is delivered to customers through
19pipes, pipelines, or mains; or (iii) the treatment of water for
20wholesale or retail sale that is delivered to customers through
21pipes, pipelines, or mains. The provisions of this amendatory
22Act of the 98th General Assembly are declaratory of existing
23law as to the meaning and scope of this exemption. For the
24purposes of this exemption, terms have the following meanings:
25        (1) "Manufacturing process" means the production of an
26    article of tangible personal property, whether the article

 

 

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1    is a finished product or an article for use in the process
2    of manufacturing or assembling a different article of
3    tangible personal property, by a procedure commonly
4    regarded as manufacturing, processing, fabricating, or
5    refining that changes some existing material or materials
6    into a material with a different form, use, or name. In
7    relation to a recognized integrated business composed of a
8    series of operations that collectively constitute
9    manufacturing, or individually constitute manufacturing
10    operations, the manufacturing process commences with the
11    first operation or stage of production in the series and
12    does not end until the completion of the final product in
13    the last operation or stage of production in the series.
14    For purposes of this exemption, photoprocessing is a
15    manufacturing process of tangible personal property for
16    wholesale or retail sale.
17        (2) "Assembling process" means the production of an
18    article of tangible personal property, whether the article
19    is a finished product or an article for use in the process
20    of manufacturing or assembling a different article of
21    tangible personal property, by the combination of existing
22    materials in a manner commonly regarded as assembling that
23    results in a material of a different form, use, or name.
24        (3) "Machinery" means major mechanical machines or
25    major components of those machines contributing to a
26    manufacturing or assembling process.

 

 

HB0321- 537 -LRB101 04001 HLH 49009 b

1        (4) "Equipment" includes an independent device or tool
2    separate from machinery but essential to an integrated
3    manufacturing or assembly process; including computers
4    used primarily in a manufacturer's computer assisted
5    design, computer assisted manufacturing (CAD/CAM) system;
6    any subunit or assembly comprising a component of any
7    machinery or auxiliary, adjunct, or attachment parts of
8    machinery, such as tools, dies, jigs, fixtures, patterns,
9    and molds; and any parts that require periodic replacement
10    in the course of normal operation; but does not include
11    hand tools. Equipment includes chemicals or chemicals
12    acting as catalysts but only if the chemicals or chemicals
13    acting as catalysts effect a direct and immediate change
14    upon a product being manufactured or assembled for
15    wholesale or retail sale or lease.
16        (5) "Production related tangible personal property"
17    means all tangible personal property that is used or
18    consumed by the purchaser in a manufacturing facility in
19    which a manufacturing process takes place and includes,
20    without limitation, tangible personal property that is
21    purchased for incorporation into real estate within a
22    manufacturing facility and tangible personal property that
23    is used or consumed in activities such as research and
24    development, preproduction material handling, receiving,
25    quality control, inventory control, storage, staging, and
26    packaging for shipping and transportation purposes.

 

 

HB0321- 538 -LRB101 04001 HLH 49009 b

1    "Production related tangible personal property" does not
2    include (i) tangible personal property that is used, within
3    or without a manufacturing facility, in sales, purchasing,
4    accounting, fiscal management, marketing, personnel
5    recruitment or selection, or landscaping or (ii) tangible
6    personal property that is required to be titled or
7    registered with a department, agency, or unit of federal,
8    State, or local government.
9    The manufacturing and assembling machinery and equipment
10exemption includes production related tangible personal
11property that is purchased on or after July 1, 2007 and on or
12before June 30, 2008. The exemption for production related
13tangible personal property is subject to both of the following
14limitations:
15        (1) The maximum amount of the exemption for any one
16    taxpayer may not exceed 5% of the purchase price of
17    production related tangible personal property that is
18    purchased on or after July 1, 2007 and on or before June
19    30, 2008. A credit under Section 3-85 of this Act may not
20    be earned by the purchase of production related tangible
21    personal property for which an exemption is received under
22    this Section.
23        (2) The maximum aggregate amount of the exemptions for
24    production related tangible personal property awarded
25    under this Act and the Use Tax Act to all taxpayers may not
26    exceed $10,000,000. If the claims for the exemption exceed

 

 

HB0321- 539 -LRB101 04001 HLH 49009 b

1    $10,000,000, then the Department shall reduce the amount of
2    the exemption to each taxpayer on a pro rata basis.
3The Department may adopt rules to implement and administer the
4exemption for production related tangible personal property.
5    The manufacturing and assembling machinery and equipment
6exemption includes the sale of materials to a purchaser who
7produces exempted types of machinery, equipment, or tools and
8who rents or leases that machinery, equipment, or tools to a
9manufacturer of tangible personal property. This exemption
10also includes the sale of materials to a purchaser who
11manufactures those materials into an exempted type of
12machinery, equipment, or tools that the purchaser uses himself
13or herself in the manufacturing of tangible personal property.
14The purchaser of the machinery and equipment who has an active
15resale registration number shall furnish that number to the
16seller at the time of purchase. A purchaser of the machinery,
17equipment, and tools without an active resale registration
18number shall furnish to the seller a certificate of exemption
19for each transaction stating facts establishing the exemption
20for that transaction, and that certificate shall be available
21to the Department for inspection or audit. Informal rulings,
22opinions, or letters issued by the Department in response to an
23inquiry or request for an opinion from any person regarding the
24coverage and applicability of this exemption to specific
25devices shall be published, maintained as a public record, and
26made available for public inspection and copying. If the

 

 

HB0321- 540 -LRB101 04001 HLH 49009 b

1informal ruling, opinion, or letter contains trade secrets or
2other confidential information, where possible, the Department
3shall delete that information before publication. Whenever
4informal rulings, opinions, or letters contain a policy of
5general applicability, the Department shall formulate and
6adopt that policy as a rule in accordance with the Illinois
7Administrative Procedure Act.
8    The manufacturing and assembling machinery and equipment
9exemption is exempt from the provisions of Section 2-70.
10(Source: P.A. 100-22, eff. 7-6-17.)
 
11    Section 995. No acceleration or delay. Where this Act makes
12changes in a statute that is represented in this Act by text
13that is not yet or no longer in effect (for example, a Section
14represented by multiple versions), the use of that text does
15not accelerate or delay the taking effect of (i) the changes
16made by this Act or (ii) provisions derived from any other
17Public Act.
 
18    Section 999. Effective date. This Act takes effect upon
19becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    765 ILCS 1025/Act title
4    765 ILCS 1025/0.05
5    765 ILCS 1025/1from Ch. 141, par. 101
6    765 ILCS 1025/1.5
7    765 ILCS 1025/2from Ch. 141, par. 102
8    765 ILCS 1025/2afrom Ch. 141, par. 102a
9    765 ILCS 1025/3from Ch. 141, par. 103
10    765 ILCS 1025/3a
11    765 ILCS 1025/4from Ch. 141, par. 104
12    765 ILCS 1025/5from Ch. 141, par. 105
13    765 ILCS 1025/6from Ch. 141, par. 106
14    765 ILCS 1025/7from Ch. 141, par. 107
15    765 ILCS 1025/7afrom Ch. 141, par. 107a
16    765 ILCS 1025/8from Ch. 141, par. 108
17    765 ILCS 1025/8.1from Ch. 141, par. 108.1
18    765 ILCS 1025/8.2from Ch. 141, par. 108.2
19    765 ILCS 1025/9from Ch. 141, par. 109
20    765 ILCS 1025/10from Ch. 141, par. 110
21    765 ILCS 1025/10.5
22    765 ILCS 1025/10.6
23    765 ILCS 1025/11from Ch. 141, par. 111
24    765 ILCS 1025/11.5
25    765 ILCS 1025/12from Ch. 141, par. 112

 

 

HB0321- 542 -LRB101 04001 HLH 49009 b

1    765 ILCS 1025/13from Ch. 141, par. 113
2    765 ILCS 1025/14from Ch. 141, par. 114
3    765 ILCS 1025/15from Ch. 141, par. 115
4    765 ILCS 1025/16from Ch. 141, par. 116
5    765 ILCS 1025/17from Ch. 141, par. 117
6    765 ILCS 1025/18from Ch. 141, par. 118
7    765 ILCS 1025/19from Ch. 141, par. 119
8    765 ILCS 1025/19.5
9    765 ILCS 1025/20from Ch. 141, par. 120
10    765 ILCS 1025/21from Ch. 141, par. 121
11    765 ILCS 1025/22from Ch. 141, par. 122
12    765 ILCS 1025/23from Ch. 141, par. 123
13    765 ILCS 1025/23.5
14    765 ILCS 1025/24from Ch. 141, par. 124
15    765 ILCS 1025/24.5
16    765 ILCS 1025/25from Ch. 141, par. 125
17    765 ILCS 1025/25.5
18    765 ILCS 1025/26from Ch. 141, par. 126
19    765 ILCS 1025/27from Ch. 141, par. 127
20    765 ILCS 1025/28from Ch. 141, par. 128
21    765 ILCS 1025/29from Ch. 141, par. 129
22    765 ILCS 1025/29.5
23    765 ILCS 1025/30from Ch. 141, par. 130
24    35 ILCS 750/Act rep.
25    765 ILCS 1026/Act rep.
26    5 ILCS 100/1-5from Ch. 127, par. 1001-5

 

 

HB0321- 543 -LRB101 04001 HLH 49009 b

1    5 ILCS 140/7.5
2    15 ILCS 405/9from Ch. 15, par. 209
3    15 ILCS 505/0.02
4    15 ILCS 505/0.03
5    15 ILCS 505/0.04
6    15 ILCS 505/0.05
7    15 ILCS 505/0.06
8    20 ILCS 1205/7from Ch. 17, par. 108
9    20 ILCS 1205/18.1
10    30 ILCS 105/6b-1from Ch. 127, par. 142b1
11    30 ILCS 105/8.12from Ch. 127, par. 144.12
12    30 ILCS 230/2from Ch. 127, par. 171
13    35 ILCS 5/225 rep.
14    55 ILCS 5/3-3034from Ch. 34, par. 3-3034
15    205 ILCS 5/48
16    205 ILCS 5/48.1from Ch. 17, par. 360
17    205 ILCS 5/48.3from Ch. 17, par. 360.2
18    205 ILCS 5/65from Ch. 17, par. 377
19    205 ILCS 205/4013from Ch. 17, par. 7304-13
20    205 ILCS 205/9012from Ch. 17, par. 7309-12
21    205 ILCS 205/10090
22    205 ILCS 305/10from Ch. 17, par. 4411
23    205 ILCS 305/62from Ch. 17, par. 4463
24    205 ILCS 405/15.1bfrom Ch. 17, par. 4827
25    205 ILCS 405/19.3from Ch. 17, par. 4838
26    205 ILCS 620/6-14from Ch. 17, par. 1556-14

 

 

HB0321- 544 -LRB101 04001 HLH 49009 b

1    205 ILCS 657/30
2    205 ILCS 700/10
3    215 ILCS 5/210from Ch. 73, par. 822
4    215 ILCS 185/5
5    215 ILCS 185/15
6    215 ILCS 185/20
7    225 ILCS 454/20-20
8    725 ILCS 5/110-17from Ch. 38, par. 110-17
9    755 ILCS 5/2-1from Ch. 110 1/2, par. 2-1
10    755 ILCS 5/2-2from Ch. 110 1/2, par. 2-2
11    770 ILCS 90/3from Ch. 141, par. 3
12    805 ILCS 5/12.70from Ch. 32, par. 12.70
13    805 ILCS 105/112.70from Ch. 32, par. 112.70
14    35 ILCS 5/201from Ch. 120, par. 2-201
15    35 ILCS 5/203from Ch. 120, par. 2-203
16    35 ILCS 5/204from Ch. 120, par. 2-204
17    35 ILCS 5/208from Ch. 120, par. 2-208
18    35 ILCS 5/212
19    35 ILCS 5/901from Ch. 120, par. 9-901
20    35 ILCS 5/1102from Ch. 120, par. 11-1102
21    35 ILCS 5/1103from Ch. 120, par. 11-1103
22    35 ILCS 5/1105from Ch. 120, par. 11-1105
23    35 ILCS 5/1501from Ch. 120, par. 15-1501
24    35 ILCS 120/5afrom Ch. 120, par. 444a
25    35 ILCS 120/5bfrom Ch. 120, par. 444b
26    35 ILCS 120/5cfrom Ch. 120, par. 444c

 

 

HB0321- 545 -LRB101 04001 HLH 49009 b

1    35 ILCS 520/16from Ch. 120, par. 2166
2    35 ILCS 520/17from Ch. 120, par. 2167
3    35 ILCS 520/19from Ch. 120, par. 2169
4    65 ILCS 5/8-3-15from Ch. 24, par. 8-3-15
5    215 ILCS 155/22from Ch. 73, par. 1422
6    35 ILCS 105/3-5
7    35 ILCS 105/3-50from Ch. 120, par. 439.3-50
8    35 ILCS 110/2from Ch. 120, par. 439.32
9    35 ILCS 110/3-5
10    35 ILCS 115/2from Ch. 120, par. 439.102
11    35 ILCS 115/3-5
12    35 ILCS 120/2-5
13    35 ILCS 120/2-45from Ch. 120, par. 441-45