101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0902

 

Introduced , by Rep. Carol Ammons

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Cannabis Legalization Equity Act. Provides that notwithstanding any other provision of law, except as otherwise provided in the Act, the following acts are lawful and shall not be a criminal or civil offense under State law or the law of any political subdivision of this State or be a basis for seizure or forfeiture of assets under State law for persons 21 years of age or older: (1) possessing, consuming, using, displaying, purchasing, or transporting cannabis accessories; (2) possessing, growing, processing, or transporting on one's own premises no more than 24 mature cannabis plants and possession of the cannabis produced by the plants on the premises where the plants were grown; (3) possessing outside one's premises no more than 224 grams of cannabis; and (4) assisting another person who is 21 years of age or older in any of the acts described in items (1) through (3). Provides that an excise tax is imposed at the rate of 10% of the sale price of the sale or transfer of cannabis from a cannabis cultivation facility to a retail cannabis store or cannabis product manufacturing facility. Provides that at least 51% of the licenses issued by the Department of Agriculture for cannabis cultivation facilities and at least 51% of the licenses issued by the Department of Financial and Professional Regulation for retail cannabis stores shall be in communities disproportionately harmed by the war on drugs. Amends various other Acts to make conforming changes. Effective immediately.


LRB101 08006 RLC 53065 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning cannabis.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Cannabis Legalization Equity Act.
 
6    Section 5. Purpose and findings.
7    (a) In the interest of allowing law enforcement to focus on
8violent and property crimes, generating revenue for education
9and other public purposes, and individual freedom, the State
10finds and declares that the use of cannabis shall be legal for
11persons 21 years of age or older and taxed in a manner similar
12to alcohol.
13    (b) In the interest of the health and public safety of our
14citizenry, the people of this State further find and declare
15that cannabis should be regulated in a manner similar to
16alcohol so that:
17        (1) persons must show proof of age before purchasing
18    cannabis;
19        (2) selling, distributing, or transferring cannabis to
20    persons under 21 years of age shall remain illegal;
21        (3) driving under the influence of cannabis shall
22    remain illegal;
23        (4) legitimate, taxpaying business people, and not

 

 

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1    criminal actors, shall conduct sales of cannabis; and
2        (5) cannabis sold in this State shall be tested,
3    labeled, and subject to additional regulations to ensure
4    that consumers are informed and protected.
5    (c) In the interest of enacting rational policies for the
6treatment of all variations of the cannabis plant, the State
7further finds and declares that industrial hemp shall be
8regulated separately from strains of cannabis with higher
9delta-9 tetrahydrocannabinol (THC) concentrations.
10    (d) The State further finds and declares that it is
11necessary to ensure consistency and fairness in the application
12of this Act throughout the State and that the matters addressed
13by this Act are, except as specified in this Act, matters of
14statewide concern.
 
15    Section 10. Definitions. As used in this Act:
16    "Cannabis" means all parts of the plant of the genus
17cannabis, the seeds of the plant of the genus cannabis, the
18resin extracted from any part of the plant, and every compound,
19manufacture, salt, derivative, mixture, or preparation of the
20plant, its seeds, or its resin, including cannabis concentrate
21and hashish. "Cannabis" does not include industrial hemp, nor
22does it include fiber produced from the stalks, oil, or cake
23made from the seeds of the plant, sterilized seed of the plant
24which is incapable of germination, or the weight of any other
25ingredient combined with cannabis to prepare topical or oral

 

 

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1administrations, food, drink, or other product.
2    "Cannabis accessories" means any equipment, products, or
3materials of any kind which are used, intended for use, or
4designed for use in planting, propagating, cultivating,
5growing, harvesting, composting, manufacturing, compounding,
6converting, producing, processing, preparing, testing,
7analyzing, packaging, repackaging, storing, vaporizing, or
8containing cannabis, or for ingesting, inhaling, or otherwise
9introducing cannabis into the human body.
10    "Cannabis cultivation facility" means an entity registered
11to cultivate, prepare, and package cannabis and sell cannabis
12to retail cannabis stores, to cannabis product manufacturing
13facilities, and to other cannabis cultivation facilities, but
14not to consumers. A cannabis cultivation facility may produce
15cannabis concentrates, tinctures, extracts, or other cannabis
16products.
17    "Cannabis establishment" means a cannabis cultivation
18facility, a cannabis testing facility, a cannabis product
19manufacturing facility, or a retail cannabis store.
20    "Cannabis product manufacturing facility" means an entity
21registered to purchase cannabis; manufacture, prepare, and
22package cannabis products; and sell cannabis and cannabis
23products to other cannabis product manufacturing facilities
24and to retail cannabis stores, but not to consumers.
25    "Cannabis products" means concentrated cannabis products
26and cannabis products that are comprised of cannabis and other

 

 

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1ingredients and are intended for use or consumption, such as,
2but not limited to, edible products, ointments, and tinctures.
3    "Cannabis testing facility" means an entity registered to
4analyze and certify the safety and potency of cannabis.
5    "Consumer" means a person 21 years of age or older who
6purchases cannabis or cannabis products for personal use by
7persons 21 years of age or older, but not for resale to others.
8    "Department" means the following:
9        (1) the Department of Agriculture, or its successor
10    agency, concerning the issuance, renewal, suspension, and
11    revocation of a registration to operate a cannabis
12    cultivation facility; or
13        (2) the Department of Financial and Professional
14    Regulation, or its successor agency, concerning the
15    issuance, renewal, suspension, and revocation of a
16    registration to operate a retail cannabis store, cannabis
17    product manufacturing facility, or cannabis testing
18    facility.
19    "Industrial hemp" means the plant of the genus cannabis and
20any part of the plant, whether growing or not, with a delta-9
21tetrahydrocannabinol concentration that does not exceed
22three-tenths percent on a dry weight basis.
23    "Locality" means a municipality or, in reference to a
24location outside the boundaries of a municipality, a county.
25    "Local regulatory authority" means the office or entity
26designated to process cannabis establishment applications by a

 

 

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1municipality or, in reference to a location outside the
2boundaries of a municipality, a county.
3    "Public place" means any place to which the general public
4has access.
5    "Retail cannabis store" means an entity registered to
6purchase cannabis from cannabis cultivation facilities and
7cannabis and cannabis products from cannabis product
8manufacturing facilities and to sell cannabis and cannabis
9products to consumers.
10    "Unreasonably impracticable" means that the measures
11necessary to comply with the regulations require a high
12investment of risk, money, time, or any other resource or asset
13that the operation of a cannabis establishment is not worthy of
14being carried out in practice by a reasonably prudent business
15person.
 
16    Section 15. Personal use of cannabis. Notwithstanding any
17other provision of law, except as otherwise provided in this
18Act, the following acts are lawful and shall not be a criminal
19or civil offense under State law or the law of any political
20subdivision of this State or be a basis for seizure or
21forfeiture of assets under State law for persons 21 years of
22age or older:
23        (1) possessing, consuming, using, displaying,
24    purchasing, or transporting cannabis accessories;
25        (2) possessing, growing, processing, or transporting

 

 

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1    on one's own premises no more than 24 mature cannabis
2    plants and possession of the cannabis produced by the
3    plants on the premises where the plants were grown;
4        (3) possessing outside his or her premises no more than
5    224 grams of cannabis; or
6        (4) assisting another person who is 21 years of age or
7    older in any of the acts described in paragraphs (1)
8    through (3) of this Section.
 
9    Section 20. Restrictions on personal cultivation; penalty.
10    (a) It is unlawful for a person who is 21 years of age or
11older to cultivate cannabis plants in a manner that is contrary
12to this Section. Cannabis cultivation may only occur on
13property lawfully in possession of the cultivator or with the
14consent of the person in lawful possession of the property.
15    (b) A person who violates this Section is guilty of a civil
16law violation punishable by a fine not to exceed $750.
 
17    Section 30. False identification; penalty.
18    (a) A person who is under 21 years of age may not present
19or offer to a cannabis establishment or the cannabis
20establishment's agent or employee any written or oral evidence
21of age that is false, fraudulent, or not actually the person's
22own, for the purpose of:
23        (1) purchasing, attempting to purchase, or otherwise
24    procuring or attempting to procure cannabis; or

 

 

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1        (2) gaining access to a cannabis establishment.
2    (b) A person who violates this Section is guilty of a civil
3law violation punishable by a fine of not less than $200 and
4not more than $400.
 
5    Section 35. Cannabis accessories authorized.
6    (a) Notwithstanding any other provision of law, it is
7lawful and shall not be an offense under State law or the law
8of any political subdivision of this State or be a basis for
9seizure or forfeiture of assets under State law for persons 21
10years of age or older to manufacture, possess, or purchase
11cannabis accessories, or to distribute or sell cannabis
12accessories to a person who is 21 years of age or older.
13    (b) A person who is 21 years of age or older may
14manufacture, possess, and purchase cannabis accessories, and
15distribute or sell cannabis accessories to a person who is 21
16years of age or older.
 
17    Section 40. Lawful operation of cannabis-related
18facilities.
19    (a) Notwithstanding any other provision of law, the
20following acts, when performed by a retail cannabis store with
21a current, valid registration, or a person 21 years of age or
22older who is acting in his or her capacity as an owner,
23employee, or agent of a retail cannabis store, are lawful and
24shall not be an offense under State law or be a basis for

 

 

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1seizure or forfeiture of assets under State law:
2        (1) possessing, displaying, storing, or transporting
3    cannabis or cannabis products, provided that cannabis and
4    cannabis products may not be displayed in a manner that is
5    visible to the general public from a public right-of-way;
6        (2) purchasing cannabis from a cannabis cultivation
7    facility;
8        (3) purchasing cannabis or cannabis products from a
9    cannabis product manufacturing facility; and
10        (4) delivering, distributing, or selling cannabis or
11    cannabis products to consumers.
12    (b) Notwithstanding any other provision of law, the
13following acts, when performed by a cannabis cultivation
14facility with a current, valid registration, or a person 21
15years of age or older who is acting in his or her capacity as an
16owner, employee, or agent of a cannabis cultivation facility,
17are lawful and shall not be an offense under State law or be a
18basis for seizure or forfeiture of assets under State law:
19        (1) cultivating, harvesting, processing, packaging,
20    transporting, displaying, storing, or possessing cannabis;
21        (2) delivering or transferring cannabis to a cannabis
22    testing facility;
23        (3) delivering, distributing, or selling cannabis to a
24    cannabis cultivation facility, a cannabis product
25    manufacturing facility, or a retail cannabis store;
26        (4) receiving or purchasing cannabis from a cannabis

 

 

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1    cultivation facility; and
2        (5) receiving cannabis seeds or immature cannabis
3    plants from a person 21 years of age or older.
4    (c) Notwithstanding any other provision of law, the
5following acts, when performed by a product manufacturing
6facility with a current, valid registration, or a person 21
7years of age or older who is acting in his or her capacity as an
8owner, employee, or agent of a product manufacturing facility,
9are lawful and shall not be an offense under State law or be a
10basis for seizure or forfeiture of assets under State law:
11        (1) packaging, processing, transporting,
12    manufacturing, displaying, or possessing cannabis or
13    cannabis products;
14        (2) delivering or transferring cannabis or cannabis
15    products to a cannabis testing facility;
16        (3) delivering or selling cannabis or cannabis
17    products to a retail cannabis store or a cannabis product
18    manufacturing facility;
19        (4) purchasing cannabis from a cannabis cultivation
20    facility;
21        (5) purchasing cannabis or cannabis products from a
22    cannabis product manufacturing facility; and
23        (6) leasing or otherwise allowing the use of property
24    owned, occupied, or controlled by any person, corporation,
25    or other entity for any of the activities conducted
26    lawfully under paragraphs (1) through (3) of this

 

 

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1    subsection.
2    (d) Notwithstanding any other provision of law, the
3following acts, when performed by a cannabis testing facility
4with a current, valid registration, or a person 21 years of age
5or older who is acting in his or her capacity as an owner,
6employee, or agent of a cannabis testing facility, are lawful
7and shall not be an offense under State law or be a basis for
8seizure or forfeiture of assets under State law:
9        (1) possessing, cultivating, processing, repackaging,
10    storing, transporting, or displaying cannabis;
11        (2) receiving cannabis from a cannabis cultivation
12    facility, a cannabis retail store, a cannabis products
13    manufacturer, or a person 21 years of age or older;
14        (3) returning cannabis to a cannabis cultivation
15    facility, cannabis retail store, cannabis products
16    manufacturer, or a person 21 years of age or older; and
17        (4) leasing or otherwise allowing the use of property
18    owned, occupied, or controlled by any person, corporation,
19    or other entity for any of the activities conducted
20    lawfully under paragraphs (1) through (3) of this
21    subsection.
22    (e) Nothing in this Section prevents the imposition of
23penalties for violating this Act or rules adopted by the
24Department or localities under this Act.
 
25    Section 45. Rulemaking.

 

 

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1    (a) Not later than 180 days after the effective date of
2this Act, the Department shall adopt rules necessary for
3implementation of this Act. The rules shall not prohibit the
4operation of cannabis establishments, either expressly or
5through rules that make their operation unreasonably
6impracticable. The rules shall include:
7        (1) procedures for the issuance, renewal, suspension,
8    and revocation of a registration to operate a cannabis
9    establishment, with the procedures subject to all
10    requirements of the Illinois Administrative Procedure Act;
11        (2) a schedule of application, registration, and
12    renewal fees, provided, application fees shall not exceed
13    $5,000, with this upper limit adjusted annually for
14    inflation, unless the Department determines a greater fee
15    is necessary to carry out its responsibilities under this
16    Act;
17        (3) qualifications for registration that are directly
18    and demonstrably related to the operation of a cannabis
19    establishment;
20        (4) security requirements for cannabis establishments,
21    including for the transportation of cannabis by cannabis
22    establishments;
23        (5) requirements to prevent the sale or diversion of
24    cannabis and cannabis products to persons under 21 years of
25    age;
26        (6) labeling requirements for cannabis and cannabis

 

 

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1    products sold or distributed by a cannabis establishment;
2        (7) health and safety rules and standards for the
3    manufacture of cannabis products and both the indoor and
4    outdoor cultivation of cannabis by cannabis
5    establishments;
6        (8) restrictions on the advertising and display of
7    cannabis and cannabis products; and
8        (9) civil law violations for the failure to comply with
9    rules made under this Act.
10    (b) Not later than 180 days after the effective date of
11this Act, the Department of Revenue shall adopt rules for
12collecting taxes levied on cannabis cultivation facilities.
13    (c) In order to ensure that individual privacy is
14protected, notwithstanding paragraph (1) of subsection (a) of
15this Section, the Department shall not require a consumer to
16provide a retail cannabis store with personal information other
17than government-issued identification to determine the
18consumer's age, and a retail cannabis store shall not be
19required to acquire and record personal information about
20consumers.
 
21    Section 50. Cannabis establishment registrations.
22    (a) Each application or renewal application for an annual
23registration to operate a cannabis establishment shall be
24submitted to the Department. A renewal application may be
25submitted up to 90 days prior to the expiration of the cannabis

 

 

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1establishment's registration.
2    (b) The Department shall begin accepting and processing
3applications to operate cannabis establishments one year after
4the effective date of this Act.
5    (c) Upon receiving an application or renewal application
6for a cannabis establishment, the Department shall immediately
7forward a copy of each application and half of the registration
8application fee to the local regulatory authority for the
9locality in which the applicant desires to operate the cannabis
10establishment, unless the locality has not designated a local
11regulatory authority.
12    (d) Within 45 to 90 days after receiving an application or
13renewal application, the Department shall issue an annual
14registration to the applicant, unless the Department finds the
15applicant is not in compliance with rules adopted under Section
1645 of this Act or the Department is notified by the relevant
17locality that the applicant is not in compliance with
18ordinances and rules made under Section 55 of this Act and in
19effect at the time of application.
20    (e) If a locality has enacted a numerical limit on the
21number of cannabis establishments and a greater number of
22applicants seek registration, the Department shall solicit and
23consider input from the local regulatory authority as to the
24locality's preference or preferences for registration.
25    (f) Upon denial of an application, the Department shall
26notify the applicant in writing of the specific reason for its

 

 

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1denial.
2    (g) Every cannabis establishment registration shall
3specify the location where the cannabis establishment will
4operate. A separate registration shall be required for each
5location at which a cannabis establishment operates.
6    (h) Cannabis establishments and the books and records
7maintained and created by cannabis establishments are subject
8to inspection by the Department.
9    (i) Until the Department adopts rules under this Act for
10the issuance of licenses for cannabis cultivation facilities
11and retail cannabis stores, a cultivation center or retail
12cannabis store registered under the Compassionate Use of
13Medical Cannabis Pilot Program Act is considered a licensed
14cannabis cultivation facility or retail cannabis store under
15this Act. After the Department adopts rules for the issuance of
16licenses for cannabis cultivation facilities or retail
17cannabis stores under this Act, the facility or store must
18obtain a license under this Act.
 
19    Section 51. Licenses issued to cannabis cultivation
20facilities and retail cannabis stores located in communities
21disproportionately harmed by the war on drugs.
22    (a) In this Section, "community disproportionately harmed
23by the war on drugs" means a census tract or tracts in which a
24majority of the population is any of the following:
25        (1) Black or African American;

 

 

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1        (2) American Indian or Alaska Native; or
2        (3) Hispanic or Latino.
3    (b) At least 51% of the licenses issued by the Department
4of Agriculture for cannabis cultivation facilities and at least
551% of the licenses issued by the Department of Financial and
6Professional Regulation for retail cannabis stores shall be in
7communities disproportionately harmed by the war on drugs.
8    (c) The Department of Agriculture may not deny licenses for
9operation of cannabis cultivation facilities and the
10Department of Financial and Professional Regulation may not
11deny licenses for operation of retail cannabis stores to
12persons who apply for them to be located in communities
13disproportionately harmed by the war on drugs because of the
14applicants' prior felony convictions under the Cannabis
15Control Act, Illinois Controlled Substances Act, or
16Methamphetamine Control and Community Protection Act or
17similar federal laws or laws of another state or territory of
18the United States or any foreign country.
 
19    Section 52. Net income from cannabis cultivation
20facilities, retail cannabis stores, and on-site consumption
21facilities reinvested in local community.
22    (a) In this Section:
23    "Densely populated" means a population of over 10,000
24people per square mile and having a total population of over
2575,000.

 

 

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1    "Local community" means an area located within a 5 mile
2radius of the facility's or store's location, except in areas
3that are densely populated, in which case "local community"
4means an area located within a one mile radius of the
5facility's or store's location,
6    "Net income" has the meaning ascribed to it in Section 202
7of the Illinois Income Tax Act.
8    (b) At least 10% of the net income from a cannabis
9cultivation facility, at least 10% of the net income from a
10retail cannabis store, and at least 10% of the net income from
11an on-site consumption facility shall be reinvested in the
12local community where it operates.
 
13    Section 55. Local control.
14    (a) A locality may prohibit the operation of cannabis
15cultivation facilities, cannabis product manufacturing
16facilities, cannabis testing facilities, or retail cannabis
17stores through the enactment of an ordinance or through an
18initiated or referred measure, provided, any initiated or
19referred measure to prohibit the operation of cannabis
20cultivation facilities, cannabis product manufacturing
21facilities, cannabis testing facilities, or retail cannabis
22stores must appear on a general election ballot.
23    (b) A locality may enact ordinances or regulations not in
24conflict with this Act, or with rules adopted under this Act,
25governing the time, place, manner, and number of cannabis

 

 

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1establishment operations. A locality may punish as a civil law
2violation of an ordinance or regulations governing the time,
3place, and manner of a cannabis establishment that may operate
4in the locality.
5    (c) A locality may designate a local regulatory authority
6that is responsible for processing applications submitted for a
7registration to operate a cannabis establishment within the
8boundaries of the locality. The locality may provide that the
9local regulatory authority may issue the registrations should
10the issuance by the locality become necessary because of a
11failure by the Department to adopt rules under Section 45 of
12this Act or to accept or process applications under Section 50
13of this Act.
14    (d) A locality may establish procedures for the issuance,
15suspension, and revocation of a registration issued by the
16locality under subsection (f) or subsection (g) of this
17Section. These procedures are subject to all requirements of
18the Illinois Administrative Procedure Act.
19    (e) A locality may establish a schedule of annual
20operating, registration, and application fees for cannabis
21establishments, provided, the application fee shall only be due
22if an application is submitted to a locality under subsection
23(f) of this Section and a registration fee shall only be due if
24a registration is issued by a locality under subsection (f) or
25(g) of this Section.
26    (f) If the Department does not issue a registration to an

 

 

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1applicant within 90 days of receipt of the application filed
2under Section 50 of this Act and does not notify the applicant
3of the specific, permissible reason for its denial, in writing
4and within the time period, or if the Department has adopted
5rules under Section 45 of this Act and has accepted
6applications under Section 50 of this Act but has not issued
7any registrations within 15 months after the effective date of
8this Act, the applicant may resubmit its application directly
9to the local regulatory authority, under subsection (c) of this
10Section, and the local regulatory authority may issue an annual
11registration to the applicant. If an application is submitted
12to a local regulatory authority under this paragraph, the
13Department shall forward to the local regulatory authority the
14application fee paid by the applicant to the Department upon
15request by the local regulatory authority.
16    (g) If the Department does not adopt rules required by
17Section 45 of this Act, an applicant may submit an application
18directly to a local regulatory authority after one year from
19the effective date of this Act, and the local regulatory
20authority may issue an annual registration to the applicant.
21    (h) A local regulatory authority issuing a registration to
22an applicant shall do so within 90 days of receipt of the
23submitted or resubmitted application, unless the local
24regulatory authority finds and notifies the applicant that the
25applicant is not in compliance with ordinances and regulations
26made under subsection (b) of this Section in effect at the time

 

 

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1the application is submitted to the local regulatory authority.
2The locality shall notify the Department if an annual
3registration has been issued to the applicant.
4    (i) A registration issued by a locality under subsection
5(f) or (g) of this Section shall have the same force and effect
6as a registration issued by the Department under Section 50 of
7this Act. The holder of the registration shall not be subject
8to regulation or enforcement by the Department during the term
9of that registration.
10    (j) A subsequent or renewed registration may be issued
11under subsection (f) of this Section on an annual basis only
12upon resubmission to the locality of a new application
13submitted to the Department under Section 50 of this Act.
14    (k) A subsequent or renewed registration may be issued
15under subsection (g) of this Section on an annual basis if the
16Department has not adopted rules required by Section 45 of this
17Act at least 90 days prior to the date upon which the
18subsequent or renewed registration would be effective, or if
19the Department has adopted rules under Section 45 of this Act
20but has not, at least 90 days after the adoption of those
21rules, issued registrations under Section 50 of this Act.
22    (l) A locality may create a license for or prohibit on-site
23consumption of cannabis by persons legally able to purchase
24cannabis at a retail cannabis store.
25    (m) Nothing in this Section limits the relief as may be
26available to an aggrieved party under the Illinois

 

 

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1Administrative Procedure Act.
2    (n) A locality, including a home rule unit, may not
3regulate the possession, sale, transfer, or cultivation of
4cannabis in a manner less restrictive than the regulation by
5the State of the possession, sale, transfer, or cultivation of
6cannabis under this Act. This Section is a limitation under
7subsection (i) of Section 6 of Article VII of the Illinois
8Constitution on the concurrent exercise by home rule units of
9powers and functions exercised by the State.
 
10    Section 60. Preserving the integrity of State law. The
11Attorney General shall zealously and in good faith advocate to
12quash any federal subpoena for records involving cannabis
13establishments.
 
14    Section 65. Employers, minors, and control of property.
15    (a) Nothing in this Act requires an employer to permit or
16accommodate the use, consumption, possession, transfer,
17display, transportation, sale, or growing of cannabis in the
18workplace or to affect the ability of employers to have
19policies restricting the use of cannabis by employees or
20discipline employees who are under the influence of cannabis in
21the workplace.
22    (b) Nothing in this Act permits the transfer of cannabis,
23with or without remuneration, to a person under 21 years of age
24or to allow a person under 21 years of age to purchase,

 

 

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1possess, use, transport, grow, or consume cannabis.
2    (c) Nothing in this Act prohibits a person, employer,
3school, hospital, detention facility, corporation, or any
4other entity who occupies, owns, or controls a property from
5prohibiting or otherwise regulating the possession,
6consumption, use, display, transfer, distribution, sale,
7transportation, or growing of cannabis on or in that property.
 
8    Section 70. Research authorized. Scientific and medical
9researchers who have previously published may purchase,
10possess, and securely store cannabis for purposes of conducting
11research. Scientific and medical researchers may administer
12and distribute cannabis to participants in research who are 21
13years of age or older after receiving informed consent from the
14subjects.
 
15    Section 75. Cannabis Regulation Fund. The Cannabis
16Regulation Fund is created as a special fund in the State
17treasury consisting of fees collected and fines imposed under
18this Act. The Department of Agriculture and the Department of
19Financial and Professional Regulation shall administer the
20fund.
 
21    Section 80. Excise tax on cannabis.
22    (a) An excise tax is imposed on the sale or transfer of
23cannabis from a cannabis cultivation facility to a retail

 

 

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1cannabis store or cannabis product manufacturing facility.
2Each cannabis cultivation facility shall pay an excise tax at
3the rate of 10% of the sale price of cannabis that is sold or
4transferred from a cannabis cultivation facility to a retail
5cannabis store or cannabis product manufacturing facility.
6    (b) The Department of Revenue shall adjust the rate
7annually to account for inflation or deflation based on the
8Consumer Price Index for All Urban Consumers as issued by the
9United States Department of Labor. If the tax rate is changed
10under this subsection (b), the Department of Revenue shall
11publish the adjusted rate on its website and in a newspaper of
12general circulation in the State not less than 60 days prior to
13the effective date of the rate adjustment.
14    (c) On or before the 15th day of each month, each cannabis
15cultivation facility shall pay to the Department of Revenue the
16excise tax due under this Section on sales and transfers of
17cannabis made by that cannabis cultivation facility in the
18immediately preceding calendar month. Payment shall be
19accompanied by a return filed in the form and manner prescribed
20by the Department of Revenue and containing the information as
21the Department of Revenue may require. The return must be
22accompanied by appropriate computer-generated magnetic media
23supporting schedule data in the format required by the
24Department, unless, as provided by rule, the Department grants
25an exception upon petition of a taxpayer.
26    (d) The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,

 

 

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15f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the
2Retailers' Occupation Tax Act which are not inconsistent with
3this Act, and Section 3-7 of the Uniform Penalty and Interest
4Act, shall apply as far as practicable to the tax imposed under
5this Section to the same extent as if those provisions were
6included in this Act.
 
7    Section 85. Distribution of excise tax proceeds. All moneys
8received by the Department of Revenue under Section 80 of this
9Act shall be deposited into the Cannabis Excise Tax Fund, a
10special fund in the State treasury. Moneys in the Fund shall be
11used by the Department of Agriculture and the Department of
12Financial and Professional Regulation to implement and enforce
13this Act. Within 90 days after the effective date of this Act
14and every year thereafter, the Director of Revenue shall
15certify the amounts needed to implement and enforce this Act by
16the Department of Revenue, and the Comptroller shall order
17transferred and the Treasurer shall transfer from the Cannabis
18Excise Tax Fund the following amounts every 3 months:
19    (1) 30% shall be distributed to the Common School Fund to
20be used at the discretion of the State Board of Education for
21its duties prescribed by law;
22    (2) 5% percent shall be distributed to the Department of
23Human Services for use in voluntary programs for the treatment
24of alcohol, tobacco, and cannabis abuse;
25    (3) 5% percent shall be distributed to the Department of

 

 

HB0902- 24 -LRB101 08006 RLC 53065 b

1Public Health for a scientifically and medically accurate
2public education campaign educating youth and adults about the
3health and safety risks of alcohol, tobacco, and cannabis;
4    (4) 50% percent shall be deposited into the General Revenue
5Fund;
6    (5) 2.5% shall be distributed to the State Employees'
7Retirement System of Illinois;
8    (6) 2.5% shall be distributed to the Teachers' Retirement
9System of the State of Illinois;
10    (7) 2.5% shall be distributed to the State Universities
11Retirement System; and
12    (8) 2.5% shall be distributed to the Department of State
13Police for the employment and training of drug recognition
14experts.
 
15    Section 90. Privileges and rights under the Compassionate
16Use of Medical Cannabis Pilot Program Act. Nothing in this Act
17shall be construed to limit any privileges or rights of a
18medical cannabis qualifying patient, designated caregiver,
19cultivation center, cultivation center agent, medical cannabis
20dispensing organization, or medical cannabis dispensing
21organization agent under the Compassionate Use of Medical
22Cannabis Pilot Program Act.
 
23    Section 95. Nonviolent cannabis offenders; application for
24commutation of sentence; dismissal of charges. A person

 

 

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1convicted of a violation of the Cannabis Control Act who is
2serving a sentence in a correctional institution may, within 90
3days after the effective date of this Act, file a petition for
4commutation of his or her sentence under Section 3-3-13 of the
5Unified Code of Corrections addressed to the Governor and filed
6with the Prisoner Review Board. The petition shall be in
7writing and signed by the person under conviction or by a
8person on his or her behalf. It shall contain a brief history
9of the case, the reasons for seeking executive clemency, and
10other relevant information the Board may require. The person
11may apply to the State's Attorney of the county where his or
12her prosecution is pending for dismissal of any pending
13cannabis charges against the person after a review of the
14person's criminal record. Nonviolent offenders who have
15violated the terms of their parole, mandatory supervised
16release, probation, or conditional discharge for testing
17positive for cannabis may also apply for commutation of their
18sentences. The person may apply to: (i) the circuit court for
19expungement of his or her arrest and conviction records; and
20(ii) the State's Attorney for dismissal of any pending cannabis
21charges against the person. The circuit court or State's
22Attorney shall review the person's criminal record.
 
23    Section 100. Conflicting provisions. Except as otherwise
24provided in this Act, in case of a conflict between this Act
25and any other law or ordinance, the provisions of this Act

 

 

HB0902- 26 -LRB101 08006 RLC 53065 b

1shall control.
 
2    Section 900. The Alcoholism and Other Drug Abuse and
3Dependency Act is amended by changing Section 40-5 as follows:
 
4    (20 ILCS 301/40-5)
5    Sec. 40-5. Election of treatment. An individual with a
6substance use disorder who is charged with or convicted of a
7crime or any other person charged with or convicted of a
8misdemeanor violation of the Use of Intoxicating Compounds Act
9and who has not been previously convicted of a violation of
10that Act may elect treatment under the supervision of a program
11holding a valid intervention license for designated program
12services issued by the Department, referred to in this Article
13as "designated program", unless:
14        (1) the crime is a crime of violence;
15        (2) the crime is a violation of Section 401(a), 401(b),
16    401(c) where the person electing treatment has been
17    previously convicted of a non-probationable felony or the
18    violation is non-probationable, 401(d) where the violation
19    is non-probationable, 401.1, 402(a), 405 or 407 of the
20    Illinois Controlled Substances Act, or Section 12-7.3 of
21    the Criminal Code of 2012, or Section 4(d), 4(e), 4(f),
22    4(g), 5(d), 5(e), 5(f), 5(g), 5.1, 7 or 9 of the Cannabis
23    Control Act or Section 15, 20, 55, 60(b)(3), 60(b)(4),
24    60(b)(5), 60(b)(6), or 65 of the Methamphetamine Control

 

 

HB0902- 27 -LRB101 08006 RLC 53065 b

1    and Community Protection Act or is otherwise ineligible for
2    probation under Section 70 of the Methamphetamine Control
3    and Community Protection Act;
4        (3) the person has a record of 2 or more convictions of
5    a crime of violence;
6        (4) other criminal proceedings alleging commission of
7    a felony are pending against the person;
8        (5) the person is on probation or parole and the
9    appropriate parole or probation authority does not consent
10    to that election;
11        (6) the person elected and was admitted to a designated
12    program on 2 prior occasions within any consecutive 2-year
13    period;
14        (7) the person has been convicted of residential
15    burglary and has a record of one or more felony
16    convictions;
17        (8) the crime is a violation of Section 11-501 of the
18    Illinois Vehicle Code or a similar provision of a local
19    ordinance; or
20        (9) the crime is a reckless homicide or a reckless
21    homicide of an unborn child, as defined in Section 9-3 or
22    9-3.2 of the Criminal Code of 1961 or the Criminal Code of
23    2012, in which the cause of death consists of the driving
24    of a motor vehicle by a person under the influence of
25    alcohol or any other drug or drugs at the time of the
26    violation.

 

 

HB0902- 28 -LRB101 08006 RLC 53065 b

1    Nothing in this Section shall preclude an individual who is
2charged with or convicted of a crime that is a violation of
3Section 60(b)(1) or 60(b)(2) of the Methamphetamine Control and
4Community Protection Act, and who is otherwise eligible to make
5the election provided for under this Section, from being
6eligible to make an election for treatment as a condition of
7probation as provided for under this Article.
8(Source: P.A. 99-78, eff. 7-20-15; 100-759, eff. 1-1-19.)
 
9    Section 905. The Criminal Identification Act is amended by
10changing Sections 5 and 5.2 as follows:
 
11    (20 ILCS 2630/5)  (from Ch. 38, par. 206-5)
12    Sec. 5. Arrest reports. All policing bodies of this State
13shall furnish to the Department, daily, in the form and detail
14the Department requires, fingerprints, descriptions, and
15ethnic and racial background data as provided in Section 4.5 of
16this Act of all persons who are arrested on charges of
17violating any penal statute of this State for offenses that are
18classified as felonies and Class A or B misdemeanors and of all
19minors of the age of 10 and over who have been arrested for an
20offense which would be a felony if committed by an adult, and
21may forward such fingerprints and descriptions for minors
22arrested for Class A or B misdemeanors. Moving or nonmoving
23traffic violations under the Illinois Vehicle Code shall not be
24reported except for violations of Chapter 4, Section 11-204.1,

 

 

HB0902- 29 -LRB101 08006 RLC 53065 b

1or Section 11-501 of that Code. In addition, conservation
2offenses, as defined in the Supreme Court Rule 501(c), that are
3classified as Class B misdemeanors shall not be reported. Civil
4law violations of the Cannabis Legalization Equity Act, the
5Cannabis Control Act, and Section 111-3.1 of the Code of
6Criminal Procedure of 1963 shall not be reported. Those law
7enforcement records maintained by the Department for minors
8arrested for an offense prior to their 17th birthday, or minors
9arrested for a non-felony offense, if committed by an adult,
10prior to their 18th birthday, shall not be forwarded to the
11Federal Bureau of Investigation unless those records relate to
12an arrest in which a minor was charged as an adult under any of
13the transfer provisions of the Juvenile Court Act of 1987.
14(Source: P.A. 98-528, eff. 1-1-15.)
 
15    (20 ILCS 2630/5.2)
16    Sec. 5.2. Expungement, sealing, and immediate sealing.
17    (a) General Provisions.
18        (1) Definitions. In this Act, words and phrases have
19    the meanings set forth in this subsection, except when a
20    particular context clearly requires a different meaning.
21            (A) The following terms shall have the meanings
22        ascribed to them in the Unified Code of Corrections,
23        730 ILCS 5/5-1-2 through 5/5-1-22:
24                (i) Business Offense (730 ILCS 5/5-1-2),
25                (ii) Charge (730 ILCS 5/5-1-3),

 

 

HB0902- 30 -LRB101 08006 RLC 53065 b

1                (iii) Court (730 ILCS 5/5-1-6),
2                (iv) Defendant (730 ILCS 5/5-1-7),
3                (v) Felony (730 ILCS 5/5-1-9),
4                (vi) Imprisonment (730 ILCS 5/5-1-10),
5                (vii) Judgment (730 ILCS 5/5-1-12),
6                (viii) Misdemeanor (730 ILCS 5/5-1-14),
7                (ix) Offense (730 ILCS 5/5-1-15),
8                (x) Parole (730 ILCS 5/5-1-16),
9                (xi) Petty Offense (730 ILCS 5/5-1-17),
10                (xii) Probation (730 ILCS 5/5-1-18),
11                (xiii) Sentence (730 ILCS 5/5-1-19),
12                (xiv) Supervision (730 ILCS 5/5-1-21), and
13                (xv) Victim (730 ILCS 5/5-1-22).
14            (B) As used in this Section, "charge not initiated
15        by arrest" means a charge (as defined by 730 ILCS
16        5/5-1-3) brought against a defendant where the
17        defendant is not arrested prior to or as a direct
18        result of the charge.
19            (C) "Conviction" means a judgment of conviction or
20        sentence entered upon a plea of guilty or upon a
21        verdict or finding of guilty of an offense, rendered by
22        a legally constituted jury or by a court of competent
23        jurisdiction authorized to try the case without a jury.
24        An order of supervision successfully completed by the
25        petitioner is not a conviction. An order of qualified
26        probation (as defined in subsection (a)(1)(J))

 

 

HB0902- 31 -LRB101 08006 RLC 53065 b

1        successfully completed by the petitioner is not a
2        conviction. An order of supervision or an order of
3        qualified probation that is terminated
4        unsatisfactorily is a conviction, unless the
5        unsatisfactory termination is reversed, vacated, or
6        modified and the judgment of conviction, if any, is
7        reversed or vacated.
8            (D) "Criminal offense" means a petty offense,
9        business offense, misdemeanor, felony, or municipal
10        ordinance violation (as defined in subsection
11        (a)(1)(H)). As used in this Section, a minor traffic
12        offense (as defined in subsection (a)(1)(G)) shall not
13        be considered a criminal offense.
14            (E) "Expunge" means to physically destroy the
15        records or return them to the petitioner and to
16        obliterate the petitioner's name from any official
17        index or public record, or both. Nothing in this Act
18        shall require the physical destruction of the circuit
19        court file, but such records relating to arrests or
20        charges, or both, ordered expunged shall be impounded
21        as required by subsections (d)(9)(A)(ii) and
22        (d)(9)(B)(ii).
23            (F) As used in this Section, "last sentence" means
24        the sentence, order of supervision, or order of
25        qualified probation (as defined by subsection
26        (a)(1)(J)), for a criminal offense (as defined by

 

 

HB0902- 32 -LRB101 08006 RLC 53065 b

1        subsection (a)(1)(D)) that terminates last in time in
2        any jurisdiction, regardless of whether the petitioner
3        has included the criminal offense for which the
4        sentence or order of supervision or qualified
5        probation was imposed in his or her petition. If
6        multiple sentences, orders of supervision, or orders
7        of qualified probation terminate on the same day and
8        are last in time, they shall be collectively considered
9        the "last sentence" regardless of whether they were
10        ordered to run concurrently.
11            (G) "Minor traffic offense" means a petty offense,
12        business offense, or Class C misdemeanor under the
13        Illinois Vehicle Code or a similar provision of a
14        municipal or local ordinance.
15            (H) "Municipal ordinance violation" means an
16        offense defined by a municipal or local ordinance that
17        is criminal in nature and with which the petitioner was
18        charged or for which the petitioner was arrested and
19        released without charging.
20            (I) "Petitioner" means an adult or a minor
21        prosecuted as an adult who has applied for relief under
22        this Section.
23            (J) "Qualified probation" means an order of
24        probation under Section 10 of the Cannabis Control Act,
25        Section 410 of the Illinois Controlled Substances Act,
26        Section 70 of the Methamphetamine Control and

 

 

HB0902- 33 -LRB101 08006 RLC 53065 b

1        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
2        of the Unified Code of Corrections, Section
3        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
4        those provisions existed before their deletion by
5        Public Act 89-313), Section 10-102 of the Illinois
6        Alcoholism and Other Drug Dependency Act, Section
7        40-10 of the Substance Use Disorder Act, or Section 10
8        of the Steroid Control Act. For the purpose of this
9        Section, "successful completion" of an order of
10        qualified probation under Section 10-102 of the
11        Illinois Alcoholism and Other Drug Dependency Act and
12        Section 40-10 of the Substance Use Disorder Act means
13        that the probation was terminated satisfactorily and
14        the judgment of conviction was vacated.
15            (K) "Seal" means to physically and electronically
16        maintain the records, unless the records would
17        otherwise be destroyed due to age, but to make the
18        records unavailable without a court order, subject to
19        the exceptions in Sections 12 and 13 of this Act. The
20        petitioner's name shall also be obliterated from the
21        official index required to be kept by the circuit court
22        clerk under Section 16 of the Clerks of Courts Act, but
23        any index issued by the circuit court clerk before the
24        entry of the order to seal shall not be affected.
25            (L) "Sexual offense committed against a minor"
26        includes but is not limited to the offenses of indecent

 

 

HB0902- 34 -LRB101 08006 RLC 53065 b

1        solicitation of a child or criminal sexual abuse when
2        the victim of such offense is under 18 years of age.
3            (M) "Terminate" as it relates to a sentence or
4        order of supervision or qualified probation includes
5        either satisfactory or unsatisfactory termination of
6        the sentence, unless otherwise specified in this
7        Section. A sentence is terminated notwithstanding any
8        outstanding financial legal obligation.
9        (2) Minor Traffic Offenses. Orders of supervision or
10    convictions for minor traffic offenses shall not affect a
11    petitioner's eligibility to expunge or seal records
12    pursuant to this Section.
13        (2.5) Commencing 180 days after July 29, 2016 (the
14    effective date of Public Act 99-697), the law enforcement
15    agency issuing the citation shall automatically expunge,
16    on or before January 1 and July 1 of each year, the law
17    enforcement records of a person found to have committed a
18    civil law violation of subsection (a) of Section 4 of the
19    Cannabis Control Act or subsection (c) of Section 3.5 of
20    the Drug Paraphernalia Control Act in the law enforcement
21    agency's possession or control and which contains the final
22    satisfactory disposition which pertain to the person
23    issued a citation for that offense. The law enforcement
24    agency shall provide by rule the process for access,
25    review, and to confirm the automatic expungement by the law
26    enforcement agency issuing the citation. Commencing 180

 

 

HB0902- 35 -LRB101 08006 RLC 53065 b

1    days after July 29, 2016 (the effective date of Public Act
2    99-697), the clerk of the circuit court shall expunge, upon
3    order of the court, or in the absence of a court order on
4    or before January 1 and July 1 of each year, the court
5    records of a person found in the circuit court to have
6    committed a civil law violation of subsection (a) of
7    Section 4 of the Cannabis Control Act or subsection (c) of
8    Section 3.5 of the Drug Paraphernalia Control Act in the
9    clerk's possession or control and which contains the final
10    satisfactory disposition which pertain to the person
11    issued a citation for any of those offenses.
12        (2.6) Commencing 180 days after the effective date of
13    this amendatory Act of the 101st General Assembly, the law
14    enforcement agency issuing the citation shall
15    automatically expunge, on or before January 1 and July 1 of
16    each year, the law enforcement records of a person found to
17    have committed a Class 4 felony or a Class A, B, or C
18    misdemeanor violation of the Cannabis Control Act in the
19    law enforcement agency's possession or control and which
20    contains the final satisfactory disposition which pertain
21    to the person issued a citation for that offense. The law
22    enforcement agency shall provide by rule the process for
23    access, review, and to confirm the automatic expungement by
24    the law enforcement agency issuing the citation.
25    Commencing 180 days after the effective date of this
26    amendatory Act of the 101st General Assembly, the clerk of

 

 

HB0902- 36 -LRB101 08006 RLC 53065 b

1    the circuit court shall expunge, upon order of the court,
2    or in the absence of a court order on or before January 1
3    and July 1 of each year, the court records of a person
4    found in the circuit court to have committed a Class 4
5    felony or a Class A, B, or C misdemeanor violation of the
6    Cannabis Control Act in the clerk's possession or control
7    and which contains the final satisfactory disposition
8    which pertain to the person issued a citation for any of
9    those offenses. This paragraph (2.6) applies to civil law
10    violations of the Cannabis Legalization Equity Act, the
11    Cannabis Control Act, and Section 111-3.1 of the Code of
12    Criminal Procedure of 1963 and any criminal violation that
13    would no longer be an offense under this amendatory Act of
14    the 101st General Assembly and any criminal violation
15    committed by a person under 21 years of age who if he or
16    she were 21 years of age or older would not be in violation
17    of law as result of this amendatory Act of the 101st
18    General Assembly. This paragraph (2.6) does not apply if in
19    the sentencing order for the cannabis violation the court
20    determined that the conduct that gave rise to the
21    conviction occurred during the commission of a crime of
22    violence as defined in Section 2 of the Crime Victims
23    Compensation Act.
24        (3) Exclusions. Except as otherwise provided in
25    subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
26    of this Section, the court shall not order:

 

 

HB0902- 37 -LRB101 08006 RLC 53065 b

1            (A) the sealing or expungement of the records of
2        arrests or charges not initiated by arrest that result
3        in an order of supervision for or conviction of: (i)
4        any sexual offense committed against a minor; (ii)
5        Section 11-501 of the Illinois Vehicle Code or a
6        similar provision of a local ordinance; or (iii)
7        Section 11-503 of the Illinois Vehicle Code or a
8        similar provision of a local ordinance, unless the
9        arrest or charge is for a misdemeanor violation of
10        subsection (a) of Section 11-503 or a similar provision
11        of a local ordinance, that occurred prior to the
12        offender reaching the age of 25 years and the offender
13        has no other conviction for violating Section 11-501 or
14        11-503 of the Illinois Vehicle Code or a similar
15        provision of a local ordinance.
16            (B) the sealing or expungement of records of minor
17        traffic offenses (as defined in subsection (a)(1)(G)),
18        unless the petitioner was arrested and released
19        without charging.
20            (C) the sealing of the records of arrests or
21        charges not initiated by arrest which result in an
22        order of supervision or a conviction for the following
23        offenses:
24                (i) offenses included in Article 11 of the
25            Criminal Code of 1961 or the Criminal Code of 2012
26            or a similar provision of a local ordinance, except

 

 

HB0902- 38 -LRB101 08006 RLC 53065 b

1            Section 11-14 and a misdemeanor violation of
2            Section 11-30 of the Criminal Code of 1961 or the
3            Criminal Code of 2012, or a similar provision of a
4            local ordinance;
5                (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
6            26-5, or 48-1 of the Criminal Code of 1961 or the
7            Criminal Code of 2012, or a similar provision of a
8            local ordinance;
9                (iii) Sections 12-3.1 or 12-3.2 of the
10            Criminal Code of 1961 or the Criminal Code of 2012,
11            or Section 125 of the Stalking No Contact Order
12            Act, or Section 219 of the Civil No Contact Order
13            Act, or a similar provision of a local ordinance;
14                (iv) Class A misdemeanors or felony offenses
15            under the Humane Care for Animals Act; or
16                (v) any offense or attempted offense that
17            would subject a person to registration under the
18            Sex Offender Registration Act.
19            (D) (blank).
20    (b) Expungement.
21        (1) A petitioner may petition the circuit court to
22    expunge the records of his or her arrests and charges not
23    initiated by arrest when each arrest or charge not
24    initiated by arrest sought to be expunged resulted in: (i)
25    acquittal, dismissal, or the petitioner's release without
26    charging, unless excluded by subsection (a)(3)(B); (ii) a

 

 

HB0902- 39 -LRB101 08006 RLC 53065 b

1    conviction which was vacated or reversed, unless excluded
2    by subsection (a)(3)(B); (iii) an order of supervision and
3    such supervision was successfully completed by the
4    petitioner, unless excluded by subsection (a)(3)(A) or
5    (a)(3)(B); or (iv) an order of qualified probation (as
6    defined in subsection (a)(1)(J)) and such probation was
7    successfully completed by the petitioner.
8        (1.5) When a petitioner seeks to have a record of
9    arrest expunged under this Section, and the offender has
10    been convicted of a criminal offense, the State's Attorney
11    may object to the expungement on the grounds that the
12    records contain specific relevant information aside from
13    the mere fact of the arrest.
14        (2) Time frame for filing a petition to expunge.
15            (A) When the arrest or charge not initiated by
16        arrest sought to be expunged resulted in an acquittal,
17        dismissal, the petitioner's release without charging,
18        or the reversal or vacation of a conviction, there is
19        no waiting period to petition for the expungement of
20        such records.
21            (B) When the arrest or charge not initiated by
22        arrest sought to be expunged resulted in an order of
23        supervision, successfully completed by the petitioner,
24        the following time frames will apply:
25                (i) Those arrests or charges that resulted in
26            orders of supervision under Section 3-707, 3-708,

 

 

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1            3-710, or 5-401.3 of the Illinois Vehicle Code or a
2            similar provision of a local ordinance, or under
3            Section 11-1.50, 12-3.2, or 12-15 of the Criminal
4            Code of 1961 or the Criminal Code of 2012, or a
5            similar provision of a local ordinance, shall not
6            be eligible for expungement until 5 years have
7            passed following the satisfactory termination of
8            the supervision.
9                (i-5) Those arrests or charges that resulted
10            in orders of supervision for a misdemeanor
11            violation of subsection (a) of Section 11-503 of
12            the Illinois Vehicle Code or a similar provision of
13            a local ordinance, that occurred prior to the
14            offender reaching the age of 25 years and the
15            offender has no other conviction for violating
16            Section 11-501 or 11-503 of the Illinois Vehicle
17            Code or a similar provision of a local ordinance
18            shall not be eligible for expungement until the
19            petitioner has reached the age of 25 years.
20                (ii) Those arrests or charges that resulted in
21            orders of supervision for any other offenses shall
22            not be eligible for expungement until 2 years have
23            passed following the satisfactory termination of
24            the supervision.
25            (C) When the arrest or charge not initiated by
26        arrest sought to be expunged resulted in an order of

 

 

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1        qualified probation, successfully completed by the
2        petitioner, such records shall not be eligible for
3        expungement until 5 years have passed following the
4        satisfactory termination of the probation.
5        (3) Those records maintained by the Department for
6    persons arrested prior to their 17th birthday shall be
7    expunged as provided in Section 5-915 of the Juvenile Court
8    Act of 1987.
9        (4) Whenever a person has been arrested for or
10    convicted of any offense, in the name of a person whose
11    identity he or she has stolen or otherwise come into
12    possession of, the aggrieved person from whom the identity
13    was stolen or otherwise obtained without authorization,
14    upon learning of the person having been arrested using his
15    or her identity, may, upon verified petition to the Chief
16    Judge chief judge of the circuit wherein the arrest was
17    made, have a court order entered nunc pro tunc by the Chief
18    Judge to correct the arrest record, conviction record, if
19    any, and all official records of the arresting authority,
20    the Department, other criminal justice agencies, the
21    prosecutor, and the trial court concerning such arrest, if
22    any, by removing his or her name from all such records in
23    connection with the arrest and conviction, if any, and by
24    inserting in the records the name of the offender, if known
25    or ascertainable, in lieu of the aggrieved's name. The
26    records of the circuit court clerk shall be sealed until

 

 

HB0902- 42 -LRB101 08006 RLC 53065 b

1    further order of the court upon good cause shown and the
2    name of the aggrieved person obliterated on the official
3    index required to be kept by the circuit court clerk under
4    Section 16 of the Clerks of Courts Act, but the order shall
5    not affect any index issued by the circuit court clerk
6    before the entry of the order. Nothing in this Section
7    shall limit the Department of State Police or other
8    criminal justice agencies or prosecutors from listing
9    under an offender's name the false names he or she has
10    used.
11        (5) Whenever a person has been convicted of criminal
12    sexual assault, aggravated criminal sexual assault,
13    predatory criminal sexual assault of a child, criminal
14    sexual abuse, or aggravated criminal sexual abuse, the
15    victim of that offense may request that the State's
16    Attorney of the county in which the conviction occurred
17    file a verified petition with the presiding trial judge at
18    the petitioner's trial to have a court order entered to
19    seal the records of the circuit court clerk in connection
20    with the proceedings of the trial court concerning that
21    offense. However, the records of the arresting authority
22    and the Department of State Police concerning the offense
23    shall not be sealed. The court, upon good cause shown,
24    shall make the records of the circuit court clerk in
25    connection with the proceedings of the trial court
26    concerning the offense available for public inspection.

 

 

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1        (6) If a conviction has been set aside on direct review
2    or on collateral attack and the court determines by clear
3    and convincing evidence that the petitioner was factually
4    innocent of the charge, the court that finds the petitioner
5    factually innocent of the charge shall enter an expungement
6    order for the conviction for which the petitioner has been
7    determined to be innocent as provided in subsection (b) of
8    Section 5-5-4 of the Unified Code of Corrections.
9        (7) Nothing in this Section shall prevent the
10    Department of State Police from maintaining all records of
11    any person who is admitted to probation upon terms and
12    conditions and who fulfills those terms and conditions
13    pursuant to Section 10 of the Cannabis Control Act, Section
14    410 of the Illinois Controlled Substances Act, Section 70
15    of the Methamphetamine Control and Community Protection
16    Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
17    Corrections, Section 12-4.3 or subdivision (b)(1) of
18    Section 12-3.05 of the Criminal Code of 1961 or the
19    Criminal Code of 2012, Section 10-102 of the Illinois
20    Alcoholism and Other Drug Dependency Act, Section 40-10 of
21    the Substance Use Disorder Act, or Section 10 of the
22    Steroid Control Act.
23        (8) If the petitioner has been granted a certificate of
24    innocence under Section 2-702 of the Code of Civil
25    Procedure, the court that grants the certificate of
26    innocence shall also enter an order expunging the

 

 

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1    conviction for which the petitioner has been determined to
2    be innocent as provided in subsection (h) of Section 2-702
3    of the Code of Civil Procedure.
4    (c) Sealing.
5        (1) Applicability. Notwithstanding any other provision
6    of this Act to the contrary, and cumulative with any rights
7    to expungement of criminal records, this subsection
8    authorizes the sealing of criminal records of adults and of
9    minors prosecuted as adults. Subsection (g) of this Section
10    provides for immediate sealing of certain records.
11        (2) Eligible Records. The following records may be
12    sealed:
13            (A) All arrests resulting in release without
14        charging;
15            (B) Arrests or charges not initiated by arrest
16        resulting in acquittal, dismissal, or conviction when
17        the conviction was reversed or vacated, except as
18        excluded by subsection (a)(3)(B);
19            (C) Arrests or charges not initiated by arrest
20        resulting in orders of supervision, including orders
21        of supervision for municipal ordinance violations,
22        successfully completed by the petitioner, unless
23        excluded by subsection (a)(3);
24            (D) Arrests or charges not initiated by arrest
25        resulting in convictions, including convictions on
26        municipal ordinance violations, unless excluded by

 

 

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1        subsection (a)(3);
2            (E) Arrests or charges not initiated by arrest
3        resulting in orders of first offender probation under
4        Section 10 of the Cannabis Control Act, Section 410 of
5        the Illinois Controlled Substances Act, Section 70 of
6        the Methamphetamine Control and Community Protection
7        Act, or Section 5-6-3.3 of the Unified Code of
8        Corrections; and
9            (F) Arrests or charges not initiated by arrest
10        resulting in felony convictions unless otherwise
11        excluded by subsection (a) paragraph (3) of this
12        Section.
13        (3) When Records Are Eligible to Be Sealed. Records
14    identified as eligible under subsection (c)(2) may be
15    sealed as follows:
16            (A) Records identified as eligible under
17        subsection (c)(2)(A) and (c)(2)(B) may be sealed at any
18        time.
19            (B) Except as otherwise provided in subparagraph
20        (E) of this paragraph (3), records identified as
21        eligible under subsection (c)(2)(C) may be sealed 2
22        years after the termination of petitioner's last
23        sentence (as defined in subsection (a)(1)(F)).
24            (C) Except as otherwise provided in subparagraph
25        (E) of this paragraph (3), records identified as
26        eligible under subsections (c)(2)(D), (c)(2)(E), and

 

 

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1        (c)(2)(F) may be sealed 3 years after the termination
2        of the petitioner's last sentence (as defined in
3        subsection (a)(1)(F)). Convictions requiring public
4        registration under the Arsonist Registration Act, the
5        Sex Offender Registration Act, or the Murderer and
6        Violent Offender Against Youth Registration Act may
7        not be sealed until the petitioner is no longer
8        required to register under that relevant Act.
9            (D) Records identified in subsection
10        (a)(3)(A)(iii) may be sealed after the petitioner has
11        reached the age of 25 years.
12            (E) Records identified as eligible under
13        subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or
14        (c)(2)(F) may be sealed upon termination of the
15        petitioner's last sentence if the petitioner earned a
16        high school diploma, associate's degree, career
17        certificate, vocational technical certification, or
18        bachelor's degree, or passed the high school level Test
19        of General Educational Development, during the period
20        of his or her sentence, aftercare release, or mandatory
21        supervised release. This subparagraph shall apply only
22        to a petitioner who has not completed the same
23        educational goal prior to the period of his or her
24        sentence, aftercare release, or mandatory supervised
25        release. If a petition for sealing eligible records
26        filed under this subparagraph is denied by the court,

 

 

HB0902- 47 -LRB101 08006 RLC 53065 b

1        the time periods under subparagraph (B) or (C) shall
2        apply to any subsequent petition for sealing filed by
3        the petitioner.
4        (4) Subsequent felony convictions. A person may not
5    have subsequent felony conviction records sealed as
6    provided in this subsection (c) if he or she is convicted
7    of any felony offense after the date of the sealing of
8    prior felony convictions as provided in this subsection
9    (c). The court may, upon conviction for a subsequent felony
10    offense, order the unsealing of prior felony conviction
11    records previously ordered sealed by the court.
12        (5) Notice of eligibility for sealing. Upon entry of a
13    disposition for an eligible record under this subsection
14    (c), the petitioner shall be informed by the court of the
15    right to have the records sealed and the procedures for the
16    sealing of the records.
17    (d) Procedure. The following procedures apply to
18expungement under subsections (b), (e), and (e-6) and sealing
19under subsections (c) and (e-5):
20        (1) Filing the petition. Upon becoming eligible to
21    petition for the expungement or sealing of records under
22    this Section, the petitioner shall file a petition
23    requesting the expungement or sealing of records with the
24    clerk of the court where the arrests occurred or the
25    charges were brought, or both. If arrests occurred or
26    charges were brought in multiple jurisdictions, a petition

 

 

HB0902- 48 -LRB101 08006 RLC 53065 b

1    must be filed in each such jurisdiction. The petitioner
2    shall pay the applicable fee, except no fee shall be
3    required if the petitioner has obtained a court order
4    waiving fees under Supreme Court Rule 298 or it is
5    otherwise waived.
6        (1.5) County fee waiver pilot program. In a county of
7    3,000,000 or more inhabitants, no fee shall be required to
8    be paid by a petitioner if the records sought to be
9    expunged or sealed were arrests resulting in release
10    without charging or arrests or charges not initiated by
11    arrest resulting in acquittal, dismissal, or conviction
12    when the conviction was reversed or vacated, unless
13    excluded by subsection (a)(3)(B). The provisions of this
14    paragraph (1.5), other than this sentence, are inoperative
15    on and after January 1, 2019.
16        (2) Contents of petition. The petition shall be
17    verified and shall contain the petitioner's name, date of
18    birth, current address and, for each arrest or charge not
19    initiated by arrest sought to be sealed or expunged, the
20    case number, the date of arrest (if any), the identity of
21    the arresting authority, and such other information as the
22    court may require. During the pendency of the proceeding,
23    the petitioner shall promptly notify the circuit court
24    clerk of any change of his or her address. If the
25    petitioner has received a certificate of eligibility for
26    sealing from the Prisoner Review Board under paragraph (10)

 

 

HB0902- 49 -LRB101 08006 RLC 53065 b

1    of subsection (a) of Section 3-3-2 of the Unified Code of
2    Corrections, the certificate shall be attached to the
3    petition.
4        (3) Drug test. The petitioner must attach to the
5    petition proof that the petitioner has passed a test taken
6    within 30 days before the filing of the petition showing
7    the absence within his or her body of all illegal
8    substances as defined by the Illinois Controlled
9    Substances Act, the Methamphetamine Control and Community
10    Protection Act, and the Cannabis Control Act if he or she
11    is petitioning to:
12            (A) seal felony records under clause (c)(2)(E);
13            (B) seal felony records for a violation of the
14        Illinois Controlled Substances Act, the
15        Methamphetamine Control and Community Protection Act,
16        or the Cannabis Control Act under clause (c)(2)(F);
17            (C) seal felony records under subsection (e-5); or
18            (D) expunge felony records of a qualified
19        probation under clause (b)(1)(iv).
20        (4) Service of petition. The circuit court clerk shall
21    promptly serve a copy of the petition and documentation to
22    support the petition under subsection (e-5) or (e-6) on the
23    State's Attorney or prosecutor charged with the duty of
24    prosecuting the offense, the Department of State Police,
25    the arresting agency and the chief legal officer of the
26    unit of local government effecting the arrest.

 

 

HB0902- 50 -LRB101 08006 RLC 53065 b

1        (5) Objections.
2            (A) Any party entitled to notice of the petition
3        may file an objection to the petition. All objections
4        shall be in writing, shall be filed with the circuit
5        court clerk, and shall state with specificity the basis
6        of the objection. Whenever a person who has been
7        convicted of an offense is granted a pardon by the
8        Governor which specifically authorizes expungement, an
9        objection to the petition may not be filed.
10            (B) Objections to a petition to expunge or seal
11        must be filed within 60 days of the date of service of
12        the petition.
13        (6) Entry of order.
14            (A) The Chief Judge of the circuit wherein the
15        charge was brought, any judge of that circuit
16        designated by the Chief Judge, or in counties of less
17        than 3,000,000 inhabitants, the presiding trial judge
18        at the petitioner's trial, if any, shall rule on the
19        petition to expunge or seal as set forth in this
20        subsection (d)(6).
21            (B) Unless the State's Attorney or prosecutor, the
22        Department of State Police, the arresting agency, or
23        the chief legal officer files an objection to the
24        petition to expunge or seal within 60 days from the
25        date of service of the petition, the court shall enter
26        an order granting or denying the petition.

 

 

HB0902- 51 -LRB101 08006 RLC 53065 b

1            (C) Notwithstanding any other provision of law,
2        the court shall not deny a petition for sealing under
3        this Section because the petitioner has not satisfied
4        an outstanding legal financial obligation established,
5        imposed, or originated by a court, law enforcement
6        agency, or a municipal, State, county, or other unit of
7        local government, including, but not limited to, any
8        cost, assessment, fine, or fee. An outstanding legal
9        financial obligation does not include any court
10        ordered restitution to a victim under Section 5-5-6 of
11        the Unified Code of Corrections, unless the
12        restitution has been converted to a civil judgment.
13        Nothing in this subparagraph (C) waives, rescinds, or
14        abrogates a legal financial obligation or otherwise
15        eliminates or affects the right of the holder of any
16        financial obligation to pursue collection under
17        applicable federal, State, or local law.
18        (7) Hearings. If an objection is filed, the court shall
19    set a date for a hearing and notify the petitioner and all
20    parties entitled to notice of the petition of the hearing
21    date at least 30 days prior to the hearing. Prior to the
22    hearing, the State's Attorney shall consult with the
23    Department as to the appropriateness of the relief sought
24    in the petition to expunge or seal. At the hearing, the
25    court shall hear evidence on whether the petition should or
26    should not be granted, and shall grant or deny the petition

 

 

HB0902- 52 -LRB101 08006 RLC 53065 b

1    to expunge or seal the records based on the evidence
2    presented at the hearing. The court may consider the
3    following:
4            (A) the strength of the evidence supporting the
5        defendant's conviction;
6            (B) the reasons for retention of the conviction
7        records by the State;
8            (C) the petitioner's age, criminal record history,
9        and employment history;
10            (D) the period of time between the petitioner's
11        arrest on the charge resulting in the conviction and
12        the filing of the petition under this Section; and
13            (E) the specific adverse consequences the
14        petitioner may be subject to if the petition is denied.
15        (8) Service of order. After entering an order to
16    expunge or seal records, the court must provide copies of
17    the order to the Department, in a form and manner
18    prescribed by the Department, to the petitioner, to the
19    State's Attorney or prosecutor charged with the duty of
20    prosecuting the offense, to the arresting agency, to the
21    chief legal officer of the unit of local government
22    effecting the arrest, and to such other criminal justice
23    agencies as may be ordered by the court.
24        (9) Implementation of order.
25            (A) Upon entry of an order to expunge records
26        pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:

 

 

HB0902- 53 -LRB101 08006 RLC 53065 b

1                (i) the records shall be expunged (as defined
2            in subsection (a)(1)(E)) by the arresting agency,
3            the Department, and any other agency as ordered by
4            the court, within 60 days of the date of service of
5            the order, unless a motion to vacate, modify, or
6            reconsider the order is filed pursuant to
7            paragraph (12) of subsection (d) of this Section;
8                (ii) the records of the circuit court clerk
9            shall be impounded until further order of the court
10            upon good cause shown and the name of the
11            petitioner obliterated on the official index
12            required to be kept by the circuit court clerk
13            under Section 16 of the Clerks of Courts Act, but
14            the order shall not affect any index issued by the
15            circuit court clerk before the entry of the order;
16            and
17                (iii) in response to an inquiry for expunged
18            records, the court, the Department, or the agency
19            receiving such inquiry, shall reply as it does in
20            response to inquiries when no records ever
21            existed.
22            (B) Upon entry of an order to expunge records
23        pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:
24                (i) the records shall be expunged (as defined
25            in subsection (a)(1)(E)) by the arresting agency
26            and any other agency as ordered by the court,

 

 

HB0902- 54 -LRB101 08006 RLC 53065 b

1            within 60 days of the date of service of the order,
2            unless a motion to vacate, modify, or reconsider
3            the order is filed pursuant to paragraph (12) of
4            subsection (d) of this Section;
5                (ii) the records of the circuit court clerk
6            shall be impounded until further order of the court
7            upon good cause shown and the name of the
8            petitioner obliterated on the official index
9            required to be kept by the circuit court clerk
10            under Section 16 of the Clerks of Courts Act, but
11            the order shall not affect any index issued by the
12            circuit court clerk before the entry of the order;
13                (iii) the records shall be impounded by the
14            Department within 60 days of the date of service of
15            the order as ordered by the court, unless a motion
16            to vacate, modify, or reconsider the order is filed
17            pursuant to paragraph (12) of subsection (d) of
18            this Section;
19                (iv) records impounded by the Department may
20            be disseminated by the Department only as required
21            by law or to the arresting authority, the State's
22            Attorney, and the court upon a later arrest for the
23            same or a similar offense or for the purpose of
24            sentencing for any subsequent felony, and to the
25            Department of Corrections upon conviction for any
26            offense; and

 

 

HB0902- 55 -LRB101 08006 RLC 53065 b

1                (v) in response to an inquiry for such records
2            from anyone not authorized by law to access such
3            records, the court, the Department, or the agency
4            receiving such inquiry shall reply as it does in
5            response to inquiries when no records ever
6            existed.
7            (B-5) Upon entry of an order to expunge records
8        under subsection (e-6):
9                (i) the records shall be expunged (as defined
10            in subsection (a)(1)(E)) by the arresting agency
11            and any other agency as ordered by the court,
12            within 60 days of the date of service of the order,
13            unless a motion to vacate, modify, or reconsider
14            the order is filed under paragraph (12) of
15            subsection (d) of this Section;
16                (ii) the records of the circuit court clerk
17            shall be impounded until further order of the court
18            upon good cause shown and the name of the
19            petitioner obliterated on the official index
20            required to be kept by the circuit court clerk
21            under Section 16 of the Clerks of Courts Act, but
22            the order shall not affect any index issued by the
23            circuit court clerk before the entry of the order;
24                (iii) the records shall be impounded by the
25            Department within 60 days of the date of service of
26            the order as ordered by the court, unless a motion

 

 

HB0902- 56 -LRB101 08006 RLC 53065 b

1            to vacate, modify, or reconsider the order is filed
2            under paragraph (12) of subsection (d) of this
3            Section;
4                (iv) records impounded by the Department may
5            be disseminated by the Department only as required
6            by law or to the arresting authority, the State's
7            Attorney, and the court upon a later arrest for the
8            same or a similar offense or for the purpose of
9            sentencing for any subsequent felony, and to the
10            Department of Corrections upon conviction for any
11            offense; and
12                (v) in response to an inquiry for these records
13            from anyone not authorized by law to access the
14            records, the court, the Department, or the agency
15            receiving the inquiry shall reply as it does in
16            response to inquiries when no records ever
17            existed.
18            (C) Upon entry of an order to seal records under
19        subsection (c), the arresting agency, any other agency
20        as ordered by the court, the Department, and the court
21        shall seal the records (as defined in subsection
22        (a)(1)(K)). In response to an inquiry for such records,
23        from anyone not authorized by law to access such
24        records, the court, the Department, or the agency
25        receiving such inquiry shall reply as it does in
26        response to inquiries when no records ever existed.

 

 

HB0902- 57 -LRB101 08006 RLC 53065 b

1            (D) The Department shall send written notice to the
2        petitioner of its compliance with each order to expunge
3        or seal records within 60 days of the date of service
4        of that order or, if a motion to vacate, modify, or
5        reconsider is filed, within 60 days of service of the
6        order resolving the motion, if that order requires the
7        Department to expunge or seal records. In the event of
8        an appeal from the circuit court order, the Department
9        shall send written notice to the petitioner of its
10        compliance with an Appellate Court or Supreme Court
11        judgment to expunge or seal records within 60 days of
12        the issuance of the court's mandate. The notice is not
13        required while any motion to vacate, modify, or
14        reconsider, or any appeal or petition for
15        discretionary appellate review, is pending.
16            (E) Upon motion, the court may order that a sealed
17        judgment or other court record necessary to
18        demonstrate the amount of any legal financial
19        obligation due and owing be made available for the
20        limited purpose of collecting any legal financial
21        obligations owed by the petitioner that were
22        established, imposed, or originated in the criminal
23        proceeding for which those records have been sealed.
24        The records made available under this subparagraph (E)
25        shall not be entered into the official index required
26        to be kept by the circuit court clerk under Section 16

 

 

HB0902- 58 -LRB101 08006 RLC 53065 b

1        of the Clerks of Courts Act and shall be immediately
2        re-impounded upon the collection of the outstanding
3        financial obligations.
4            (F) Notwithstanding any other provision of this
5        Section, a circuit court clerk may access a sealed
6        record for the limited purpose of collecting payment
7        for any legal financial obligations that were
8        established, imposed, or originated in the criminal
9        proceedings for which those records have been sealed.
10        (10) Fees. The Department may charge the petitioner a
11    fee equivalent to the cost of processing any order to
12    expunge or seal records. Notwithstanding any provision of
13    the Clerks of Courts Act to the contrary, the circuit court
14    clerk may charge a fee equivalent to the cost associated
15    with the sealing or expungement of records by the circuit
16    court clerk. From the total filing fee collected for the
17    petition to seal or expunge, the circuit court clerk shall
18    deposit $10 into the Circuit Court Clerk Operation and
19    Administrative Fund, to be used to offset the costs
20    incurred by the circuit court clerk in performing the
21    additional duties required to serve the petition to seal or
22    expunge on all parties. The circuit court clerk shall
23    collect and forward the Department of State Police portion
24    of the fee to the Department and it shall be deposited in
25    the State Police Services Fund. If the record brought under
26    an expungement petition was previously sealed under this

 

 

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1    Section, the fee for the expungement petition for that same
2    record shall be waived.
3        (11) Final Order. No court order issued under the
4    expungement or sealing provisions of this Section shall
5    become final for purposes of appeal until 30 days after
6    service of the order on the petitioner and all parties
7    entitled to notice of the petition.
8        (12) Motion to Vacate, Modify, or Reconsider. Under
9    Section 2-1203 of the Code of Civil Procedure, the
10    petitioner or any party entitled to notice may file a
11    motion to vacate, modify, or reconsider the order granting
12    or denying the petition to expunge or seal within 60 days
13    of service of the order. If filed more than 60 days after
14    service of the order, a petition to vacate, modify, or
15    reconsider shall comply with subsection (c) of Section
16    2-1401 of the Code of Civil Procedure. Upon filing of a
17    motion to vacate, modify, or reconsider, notice of the
18    motion shall be served upon the petitioner and all parties
19    entitled to notice of the petition.
20        (13) Effect of Order. An order granting a petition
21    under the expungement or sealing provisions of this Section
22    shall not be considered void because it fails to comply
23    with the provisions of this Section or because of any error
24    asserted in a motion to vacate, modify, or reconsider. The
25    circuit court retains jurisdiction to determine whether
26    the order is voidable and to vacate, modify, or reconsider

 

 

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1    its terms based on a motion filed under paragraph (12) of
2    this subsection (d).
3        (14) Compliance with Order Granting Petition to Seal
4    Records. Unless a court has entered a stay of an order
5    granting a petition to seal, all parties entitled to notice
6    of the petition must fully comply with the terms of the
7    order within 60 days of service of the order even if a
8    party is seeking relief from the order through a motion
9    filed under paragraph (12) of this subsection (d) or is
10    appealing the order.
11        (15) Compliance with Order Granting Petition to
12    Expunge Records. While a party is seeking relief from the
13    order granting the petition to expunge through a motion
14    filed under paragraph (12) of this subsection (d) or is
15    appealing the order, and unless a court has entered a stay
16    of that order, the parties entitled to notice of the
17    petition must seal, but need not expunge, the records until
18    there is a final order on the motion for relief or, in the
19    case of an appeal, the issuance of that court's mandate.
20        (16) The changes to this subsection (d) made by Public
21    Act 98-163 apply to all petitions pending on August 5, 2013
22    (the effective date of Public Act 98-163) and to all orders
23    ruling on a petition to expunge or seal on or after August
24    5, 2013 (the effective date of Public Act 98-163).
25    (e) Whenever a person who has been convicted of an offense
26is granted a pardon by the Governor which specifically

 

 

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1authorizes expungement, he or she may, upon verified petition
2to the Chief Judge of the circuit where the person had been
3convicted, any judge of the circuit designated by the Chief
4Judge, or in counties of less than 3,000,000 inhabitants, the
5presiding trial judge at the defendant's trial, have a court
6order entered expunging the record of arrest from the official
7records of the arresting authority and order that the records
8of the circuit court clerk and the Department be sealed until
9further order of the court upon good cause shown or as
10otherwise provided herein, and the name of the defendant
11obliterated from the official index requested to be kept by the
12circuit court clerk under Section 16 of the Clerks of Courts
13Act in connection with the arrest and conviction for the
14offense for which he or she had been pardoned but the order
15shall not affect any index issued by the circuit court clerk
16before the entry of the order. All records sealed by the
17Department may be disseminated by the Department only to the
18arresting authority, the State's Attorney, and the court upon a
19later arrest for the same or similar offense or for the purpose
20of sentencing for any subsequent felony. Upon conviction for
21any subsequent offense, the Department of Corrections shall
22have access to all sealed records of the Department pertaining
23to that individual. Upon entry of the order of expungement, the
24circuit court clerk shall promptly mail a copy of the order to
25the person who was pardoned.
26    (e-5) Whenever a person who has been convicted of an

 

 

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1offense is granted a certificate of eligibility for sealing by
2the Prisoner Review Board which specifically authorizes
3sealing, he or she may, upon verified petition to the Chief
4Judge of the circuit where the person had been convicted, any
5judge of the circuit designated by the Chief Judge, or in
6counties of less than 3,000,000 inhabitants, the presiding
7trial judge at the petitioner's trial, have a court order
8entered sealing the record of arrest from the official records
9of the arresting authority and order that the records of the
10circuit court clerk and the Department be sealed until further
11order of the court upon good cause shown or as otherwise
12provided herein, and the name of the petitioner obliterated
13from the official index requested to be kept by the circuit
14court clerk under Section 16 of the Clerks of Courts Act in
15connection with the arrest and conviction for the offense for
16which he or she had been granted the certificate but the order
17shall not affect any index issued by the circuit court clerk
18before the entry of the order. All records sealed by the
19Department may be disseminated by the Department only as
20required by this Act or to the arresting authority, a law
21enforcement agency, the State's Attorney, and the court upon a
22later arrest for the same or similar offense or for the purpose
23of sentencing for any subsequent felony. Upon conviction for
24any subsequent offense, the Department of Corrections shall
25have access to all sealed records of the Department pertaining
26to that individual. Upon entry of the order of sealing, the

 

 

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1circuit court clerk shall promptly mail a copy of the order to
2the person who was granted the certificate of eligibility for
3sealing.
4    (e-6) Whenever a person who has been convicted of an
5offense is granted a certificate of eligibility for expungement
6by the Prisoner Review Board which specifically authorizes
7expungement, he or she may, upon verified petition to the Chief
8Judge of the circuit where the person had been convicted, any
9judge of the circuit designated by the Chief Judge, or in
10counties of less than 3,000,000 inhabitants, the presiding
11trial judge at the petitioner's trial, have a court order
12entered expunging the record of arrest from the official
13records of the arresting authority and order that the records
14of the circuit court clerk and the Department be sealed until
15further order of the court upon good cause shown or as
16otherwise provided herein, and the name of the petitioner
17obliterated from the official index requested to be kept by the
18circuit court clerk under Section 16 of the Clerks of Courts
19Act in connection with the arrest and conviction for the
20offense for which he or she had been granted the certificate
21but the order shall not affect any index issued by the circuit
22court clerk before the entry of the order. All records sealed
23by the Department may be disseminated by the Department only as
24required by this Act or to the arresting authority, a law
25enforcement agency, the State's Attorney, and the court upon a
26later arrest for the same or similar offense or for the purpose

 

 

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1of sentencing for any subsequent felony. Upon conviction for
2any subsequent offense, the Department of Corrections shall
3have access to all expunged records of the Department
4pertaining to that individual. Upon entry of the order of
5expungement, the circuit court clerk shall promptly mail a copy
6of the order to the person who was granted the certificate of
7eligibility for expungement.
8    (f) Subject to available funding, the Illinois Department
9of Corrections shall conduct a study of the impact of sealing,
10especially on employment and recidivism rates, utilizing a
11random sample of those who apply for the sealing of their
12criminal records under Public Act 93-211. At the request of the
13Illinois Department of Corrections, records of the Illinois
14Department of Employment Security shall be utilized as
15appropriate to assist in the study. The study shall not
16disclose any data in a manner that would allow the
17identification of any particular individual or employing unit.
18The study shall be made available to the General Assembly no
19later than September 1, 2010.
20    (g) Immediate Sealing.
21        (1) Applicability. Notwithstanding any other provision
22    of this Act to the contrary, and cumulative with any rights
23    to expungement or sealing of criminal records, this
24    subsection authorizes the immediate sealing of criminal
25    records of adults and of minors prosecuted as adults.
26        (2) Eligible Records. Arrests or charges not initiated

 

 

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1    by arrest resulting in acquittal or dismissal with
2    prejudice, except as excluded by subsection (a)(3)(B),
3    that occur on or after January 1, 2018 (the effective date
4    of Public Act 100-282), may be sealed immediately if the
5    petition is filed with the circuit court clerk on the same
6    day and during the same hearing in which the case is
7    disposed.
8        (3) When Records are Eligible to be Immediately Sealed.
9    Eligible records under paragraph (2) of this subsection (g)
10    may be sealed immediately after entry of the final
11    disposition of a case, notwithstanding the disposition of
12    other charges in the same case.
13        (4) Notice of Eligibility for Immediate Sealing. Upon
14    entry of a disposition for an eligible record under this
15    subsection (g), the defendant shall be informed by the
16    court of his or her right to have eligible records
17    immediately sealed and the procedure for the immediate
18    sealing of these records.
19        (5) Procedure. The following procedures apply to
20    immediate sealing under this subsection (g).
21            (A) Filing the Petition. Upon entry of the final
22        disposition of the case, the defendant's attorney may
23        immediately petition the court, on behalf of the
24        defendant, for immediate sealing of eligible records
25        under paragraph (2) of this subsection (g) that are
26        entered on or after January 1, 2018 (the effective date

 

 

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1        of Public Act 100-282). The immediate sealing petition
2        may be filed with the circuit court clerk during the
3        hearing in which the final disposition of the case is
4        entered. If the defendant's attorney does not file the
5        petition for immediate sealing during the hearing, the
6        defendant may file a petition for sealing at any time
7        as authorized under subsection (c)(3)(A).
8            (B) Contents of Petition. The immediate sealing
9        petition shall be verified and shall contain the
10        petitioner's name, date of birth, current address, and
11        for each eligible record, the case number, the date of
12        arrest if applicable, the identity of the arresting
13        authority if applicable, and other information as the
14        court may require.
15            (C) Drug Test. The petitioner shall not be required
16        to attach proof that he or she has passed a drug test.
17            (D) Service of Petition. A copy of the petition
18        shall be served on the State's Attorney in open court.
19        The petitioner shall not be required to serve a copy of
20        the petition on any other agency.
21            (E) Entry of Order. The presiding trial judge shall
22        enter an order granting or denying the petition for
23        immediate sealing during the hearing in which it is
24        filed. Petitions for immediate sealing shall be ruled
25        on in the same hearing in which the final disposition
26        of the case is entered.

 

 

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1            (F) Hearings. The court shall hear the petition for
2        immediate sealing on the same day and during the same
3        hearing in which the disposition is rendered.
4            (G) Service of Order. An order to immediately seal
5        eligible records shall be served in conformance with
6        subsection (d)(8).
7            (H) Implementation of Order. An order to
8        immediately seal records shall be implemented in
9        conformance with subsections (d)(9)(C) and (d)(9)(D).
10            (I) Fees. The fee imposed by the circuit court
11        clerk and the Department of State Police shall comply
12        with paragraph (1) of subsection (d) of this Section.
13            (J) Final Order. No court order issued under this
14        subsection (g) shall become final for purposes of
15        appeal until 30 days after service of the order on the
16        petitioner and all parties entitled to service of the
17        order in conformance with subsection (d)(8).
18            (K) Motion to Vacate, Modify, or Reconsider. Under
19        Section 2-1203 of the Code of Civil Procedure, the
20        petitioner, State's Attorney, or the Department of
21        State Police may file a motion to vacate, modify, or
22        reconsider the order denying the petition to
23        immediately seal within 60 days of service of the
24        order. If filed more than 60 days after service of the
25        order, a petition to vacate, modify, or reconsider
26        shall comply with subsection (c) of Section 2-1401 of

 

 

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1        the Code of Civil Procedure.
2            (L) Effect of Order. An order granting an immediate
3        sealing petition shall not be considered void because
4        it fails to comply with the provisions of this Section
5        or because of an error asserted in a motion to vacate,
6        modify, or reconsider. The circuit court retains
7        jurisdiction to determine whether the order is
8        voidable, and to vacate, modify, or reconsider its
9        terms based on a motion filed under subparagraph (L) of
10        this subsection (g).
11            (M) Compliance with Order Granting Petition to
12        Seal Records. Unless a court has entered a stay of an
13        order granting a petition to immediately seal, all
14        parties entitled to service of the order must fully
15        comply with the terms of the order within 60 days of
16        service of the order.
17    (h) Sealing; trafficking victims.
18        (1) A trafficking victim as defined by paragraph (10)
19    of subsection (a) of Section 10-9 of the Criminal Code of
20    2012 shall be eligible to petition for immediate sealing of
21    his or her criminal record upon the completion of his or
22    her last sentence if his or her participation in the
23    underlying offense was a direct result of human trafficking
24    under Section 10-9 of the Criminal Code of 2012 or a severe
25    form of trafficking under the federal Trafficking Victims
26    Protection Act.

 

 

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1        (2) A petitioner under this subsection (h), in addition
2    to the requirements provided under paragraph (4) of
3    subsection (d) of this Section, shall include in his or her
4    petition a clear and concise statement that: (A) he or she
5    was a victim of human trafficking at the time of the
6    offense; and (B) that his or her participation in the
7    offense was a direct result of human trafficking under
8    Section 10-9 of the Criminal Code of 2012 or a severe form
9    of trafficking under the federal Trafficking Victims
10    Protection Act.
11        (3) If an objection is filed alleging that the
12    petitioner is not entitled to immediate sealing under this
13    subsection (h), the court shall conduct a hearing under
14    paragraph (7) of subsection (d) of this Section and the
15    court shall determine whether the petitioner is entitled to
16    immediate sealing under this subsection (h). A petitioner
17    is eligible for immediate relief under this subsection (h)
18    if he or she shows, by a preponderance of the evidence,
19    that: (A) he or she was a victim of human trafficking at
20    the time of the offense; and (B) that his or her
21    participation in the offense was a direct result of human
22    trafficking under Section 10-9 of the Criminal Code of 2012
23    or a severe form of trafficking under the federal
24    Trafficking Victims Protection Act.
25(Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,
26eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;

 

 

HB0902- 70 -LRB101 08006 RLC 53065 b

199-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.
21-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,
3eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18;
4100-863, eff. 8-14-18; revised 8-30-18.)
 
5    Section 910. The State Finance Act is amended by adding
6Sections 5.891 and 5.892 as follows:
 
7    (30 ILCS 105/5.891 new)
8    Sec. 5.891. The Cannabis Excise Tax Fund.
 
9    (30 ILCS 105/5.892 new)
10    Sec. 5.892. The Cannabis Regulation Fund.
 
11    Section 915. The Illinois Income Tax Act is amended by
12changing Section 203 as follows:
 
13    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)
14    Sec. 203. Base income defined.
15    (a) Individuals.
16        (1) In general. In the case of an individual, base
17    income means an amount equal to the taxpayer's adjusted
18    gross income for the taxable year as modified by paragraph
19    (2).
20        (2) Modifications. The adjusted gross income referred
21    to in paragraph (1) shall be modified by adding thereto the

 

 

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

 

 

HB0902- 72 -LRB101 08006 RLC 53065 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        or refund that was previously deducted from base income
2        under subsection (a)(2)(HH) of this Section;
3            (D-23) An amount equal to the credit allowable to
4        the taxpayer under Section 218(a) of this Act,
5        determined without regard to Section 218(c) of this
6        Act;
7            (D-24) For taxable years ending on or after
8        December 31, 2017, an amount equal to the deduction
9        allowed under Section 199 of the Internal Revenue Code
10        for the taxable year;
11    and by deducting from the total so obtained the sum of the
12    following amounts:
13            (E) For taxable years ending before December 31,
14        2001, any amount included in such total in respect of
15        any compensation (including but not limited to any
16        compensation paid or accrued to a serviceman while a
17        prisoner of war or missing in action) paid to a
18        resident by reason of being on active duty in the Armed
19        Forces of the United States and in respect of any
20        compensation paid or accrued to a resident who as a
21        governmental employee was a prisoner of war or missing
22        in action, and in respect of any compensation paid to a
23        resident in 1971 or thereafter for annual training
24        performed pursuant to Sections 502 and 503, Title 32,
25        United States Code as a member of the Illinois National
26        Guard or, beginning with taxable years ending on or

 

 

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1        after December 31, 2007, the National Guard of any
2        other state. For taxable years ending on or after
3        December 31, 2001, any amount included in such total in
4        respect of any compensation (including but not limited
5        to any compensation paid or accrued to a serviceman
6        while a prisoner of war or missing in action) paid to a
7        resident by reason of being a member of any component
8        of the Armed Forces of the United States and in respect
9        of any compensation paid or accrued to a resident who
10        as a governmental employee was a prisoner of war or
11        missing in action, and in respect of any compensation
12        paid to a resident in 2001 or thereafter by reason of
13        being a member of the Illinois National Guard or,
14        beginning with taxable years ending on or after
15        December 31, 2007, the National Guard of any other
16        state. The provisions of this subparagraph (E) are
17        exempt from the provisions of Section 250;
18            (F) An amount equal to all amounts included in such
19        total pursuant to the provisions of Sections 402(a),
20        402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
21        Internal Revenue Code, or included in such total as
22        distributions under the provisions of any retirement
23        or disability plan for employees of any governmental
24        agency or unit, or retirement payments to retired
25        partners, which payments are excluded in computing net
26        earnings from self employment by Section 1402 of the

 

 

HB0902- 86 -LRB101 08006 RLC 53065 b

1        Internal Revenue Code and regulations adopted pursuant
2        thereto;
3            (G) The valuation limitation amount;
4            (H) An amount equal to the amount of any tax
5        imposed by this Act which was refunded to the taxpayer
6        and included in such total for the taxable year;
7            (I) An amount equal to all amounts included in such
8        total pursuant to the provisions of Section 111 of the
9        Internal Revenue Code as a recovery of items previously
10        deducted from adjusted gross income in the computation
11        of taxable income;
12            (J) 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
17        substantially all of its operations in a River Edge
18        Redevelopment Zone or zones. This subparagraph (J) is
19        exempt from the provisions of Section 250;
20            (K) An amount equal to those dividends included in
21        such total that were paid by a corporation that
22        conducts business operations in a federally designated
23        Foreign Trade Zone or Sub-Zone and that is designated a
24        High Impact Business located in Illinois; provided
25        that dividends eligible for the deduction provided in
26        subparagraph (J) of paragraph (2) of this subsection

 

 

HB0902- 87 -LRB101 08006 RLC 53065 b

1        shall not be eligible for the deduction provided under
2        this subparagraph (K);
3            (L) For taxable years ending after December 31,
4        1983, an amount equal to all social security benefits
5        and railroad retirement benefits included in such
6        total pursuant to Sections 72(r) and 86 of the Internal
7        Revenue Code;
8            (M) With the exception of any amounts subtracted
9        under subparagraph (N), an amount equal to the sum of
10        all amounts disallowed as deductions by (i) Sections
11        171(a)(2), and 265(a)(2) 265(2) 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) 265(1) of the Internal Revenue Code; and (ii)
15        for taxable years ending on or after August 13, 1999,
16        Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of
17        the Internal Revenue Code, plus, for taxable years
18        ending on or after December 31, 2011, Section 45G(e)(3)
19        of the Internal Revenue Code and, for taxable years
20        ending on or after December 31, 2008, any amount
21        included in gross income under Section 87 of the
22        Internal Revenue Code; the provisions of this
23        subparagraph are exempt from the provisions of Section
24        250;
25            (N) An amount equal to all amounts included in such
26        total which are exempt from taxation by this State

 

 

HB0902- 88 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 89 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 90 -LRB101 08006 RLC 53065 b

1        long-term care insurance for that taxpayer or that
2        taxpayer's spouse or dependents, to the extent that the
3        amount paid for that health insurance or long-term care
4        insurance may be deducted under Section 213 of the
5        Internal Revenue Code, has not been deducted on the
6        federal income tax return of the taxpayer, and does not
7        exceed the taxable income attributable to that
8        taxpayer's income, self-employment income, or
9        Subchapter S corporation income; except that no
10        deduction shall be allowed under this item (V) if the
11        taxpayer is eligible to participate in any health
12        insurance or long-term care insurance plan of an
13        employer of the taxpayer or the taxpayer's spouse. The
14        amount of the health insurance and long-term care
15        insurance subtracted under this item (V) shall be
16        determined by multiplying total health insurance and
17        long-term care insurance premiums paid by the taxpayer
18        times a number that represents the fractional
19        percentage of eligible medical expenses under Section
20        213 of the Internal Revenue Code of 1986 not actually
21        deducted on the taxpayer's federal income tax return;
22            (W) For taxable years beginning on or after January
23        1, 1998, all amounts included in the taxpayer's federal
24        gross income in the taxable year from amounts converted
25        from a regular IRA to a Roth IRA. This paragraph is
26        exempt from the provisions of Section 250;

 

 

HB0902- 91 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 92 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 93 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 94 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 95 -LRB101 08006 RLC 53065 b

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

 

 

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

 

 

HB0902- 97 -LRB101 08006 RLC 53065 b

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

 

 

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1        deduction for federal income tax purposes if the
2        expense or loss had been uninsured. If a taxpayer makes
3        the election provided for by this subparagraph (GG),
4        the insurer to which the premiums were paid must add
5        back to income the amount subtracted by the taxpayer
6        pursuant to this subparagraph (GG). This subparagraph
7        (GG) is exempt from the provisions of Section 250; and
8            (HH) For taxable years beginning on or after
9        January 1, 2018 and prior to January 1, 2023, a maximum
10        of $10,000 contributed in the taxable year to a
11        qualified ABLE account under Section 16.6 of the State
12        Treasurer Act, except that amounts excluded from gross
13        income under Section 529(c)(3)(C)(i) or Section
14        529A(c)(1)(C) of the Internal Revenue Code shall not be
15        considered moneys contributed under this subparagraph
16        (HH). For purposes of this subparagraph (HH),
17        contributions made by an employer on behalf of an
18        employee, or matching contributions made by an
19        employee, shall be treated as made by the employee;
20        and .
21            (II) An amount equal to all the ordinary and
22        necessary expenses paid or incurred during the taxable
23        year in carrying on the business of a cannabis
24        establishment as defined in Section 10 of the Cannabis
25        Legalization Equity Act if the cannabis establishment
26        is in compliance with that Act, including:

 

 

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1                (i) a reasonable allowance for salaries or
2            other compensation for personal services actually
3            rendered;
4                (ii) traveling expenses (including amounts
5            expended for meals and lodging other than amounts
6            which are lavish or extravagant under the
7            circumstances) while away from home in the pursuit
8            of the business of the cannabis establishment; and
9                (iii) rentals or other payments required to be
10            made as a condition to the continued use or
11            possession, for purposes of the business of a
12            cannabis establishment, of property to which the
13            taxpayer has not taken or is not taking title or in
14            which he or she has no equity.
 
15    (b) Corporations.
16        (1) In general. In the case of a corporation, base
17    income means an amount equal to the taxpayer's taxable
18    income for the taxable year as modified by paragraph (2).
19        (2) Modifications. The taxable income referred to in
20    paragraph (1) shall be modified by adding thereto the sum
21    of the following amounts:
22            (A) An amount equal to all amounts paid or accrued
23        to the taxpayer as interest and all distributions
24        received from regulated investment companies during
25        the taxable year to the extent excluded from gross

 

 

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1        income in the computation of taxable income;
2            (B) An amount equal to the amount of tax imposed by
3        this Act to the extent deducted from gross income in
4        the computation of taxable income for the taxable year;
5            (C) In the case of a regulated investment company,
6        an amount equal to the excess of (i) the net long-term
7        capital gain for the taxable year, over (ii) the amount
8        of the capital gain dividends designated as such in
9        accordance with Section 852(b)(3)(C) of the Internal
10        Revenue Code and any amount designated under Section
11        852(b)(3)(D) of the Internal Revenue Code,
12        attributable to the taxable year (this amendatory Act
13        of 1995 (Public Act 89-89) is declarative of existing
14        law and is not a new enactment);
15            (D) The amount of any net operating loss deduction
16        taken in arriving at taxable income, other than a net
17        operating loss carried forward from a taxable year
18        ending prior to December 31, 1986;
19            (E) For taxable years in which a net operating loss
20        carryback or carryforward from a taxable year ending
21        prior to December 31, 1986 is an element of taxable
22        income under paragraph (1) of subsection (e) or
23        subparagraph (E) of paragraph (2) of subsection (e),
24        the amount by which addition modifications other than
25        those provided by this subparagraph (E) exceeded
26        subtraction modifications in such earlier taxable

 

 

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1        year, with the following limitations applied in the
2        order that they are listed:
3                (i) the addition modification relating to the
4            net operating loss carried back or forward to the
5            taxable year from any taxable year ending prior to
6            December 31, 1986 shall be reduced by the amount of
7            addition modification under this subparagraph (E)
8            which related to that net operating loss and which
9            was taken into account in calculating the base
10            income of an earlier taxable year, and
11                (ii) 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 not exceed the amount of
15            such carryback or carryforward;
16            For taxable years in which there is a net operating
17        loss carryback or carryforward from more than one other
18        taxable year ending prior to December 31, 1986, the
19        addition modification provided in this subparagraph
20        (E) shall be the sum of the amounts computed
21        independently under the preceding provisions of this
22        subparagraph (E) for each such taxable year;
23            (E-5) For taxable years ending after December 31,
24        1997, an amount equal to any eligible remediation costs
25        that the corporation deducted in computing adjusted
26        gross income and for which the corporation claims a

 

 

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1        credit under subsection (l) of Section 201;
2            (E-10) For taxable years 2001 and thereafter, an
3        amount equal to the bonus depreciation deduction taken
4        on the taxpayer's federal income tax return for the
5        taxable year under subsection (k) of Section 168 of the
6        Internal Revenue Code;
7            (E-11) If the taxpayer sells, transfers, abandons,
8        or otherwise disposes of property for which the
9        taxpayer was required in any taxable year to make an
10        addition modification under subparagraph (E-10), then
11        an amount equal to the aggregate amount of the
12        deductions taken in all taxable years under
13        subparagraph (T) with respect to that property.
14            If the taxpayer continues to own property through
15        the last day of the last tax year for which the
16        taxpayer may claim a depreciation deduction for
17        federal income tax purposes and for which the taxpayer
18        was allowed in any taxable year to make a subtraction
19        modification under subparagraph (T), then an amount
20        equal to that subtraction modification.
21            The taxpayer is required to make the addition
22        modification under this subparagraph only once with
23        respect to any one piece of property;
24            (E-12) An amount equal to the amount otherwise
25        allowed as a deduction in computing base income for
26        interest paid, accrued, or incurred, directly or

 

 

HB0902- 103 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 104 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 105 -LRB101 08006 RLC 53065 b

1                (iv) an item of interest paid, accrued, or
2            incurred, directly or indirectly, to a person if
3            the taxpayer establishes by clear and convincing
4            evidence that the adjustments are unreasonable; or
5            if the taxpayer and the Director agree in writing
6            to the application or use of an alternative method
7            of apportionment under Section 304(f).
8                Nothing in this subsection shall preclude the
9            Director from making any other adjustment
10            otherwise allowed under Section 404 of this Act for
11            any tax year beginning after the effective date of
12            this amendment provided such adjustment is made
13            pursuant to regulation adopted by the Department
14            and such regulations provide methods and standards
15            by which the Department will utilize its authority
16            under Section 404 of this Act;
17            (E-13) An amount equal to the amount of intangible
18        expenses and costs otherwise allowed as a deduction in
19        computing base income, and that were paid, accrued, or
20        incurred, directly or indirectly, (i) for taxable
21        years ending on or after December 31, 2004, to a
22        foreign person who would be a member of the same
23        unitary business group but for the fact that the
24        foreign person's business activity outside the United
25        States is 80% or more of that person's total business
26        activity and (ii) for taxable years ending on or after

 

 

HB0902- 106 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 107 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 108 -LRB101 08006 RLC 53065 b

1                    (b) the transaction giving rise to the
2                intangible expense or cost between the
3                taxpayer and the person did not have as a
4                principal purpose the avoidance of Illinois
5                income tax, and is paid pursuant to a contract
6                or agreement that reflects arm's-length terms;
7                or
8                (iii) any item of intangible expense or cost
9            paid, accrued, or incurred, directly or
10            indirectly, from a transaction with a person if the
11            taxpayer establishes by clear and convincing
12            evidence, that the adjustments are unreasonable;
13            or if the taxpayer and the Director agree in
14            writing to the application or use of an alternative
15            method 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-14) For taxable years ending on or after
26        December 31, 2008, an amount equal to the amount of

 

 

HB0902- 109 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 110 -LRB101 08006 RLC 53065 b

1        real estate investment trust that is allowed to a real
2        estate investment trust under Section 857(b)(2)(B) of
3        the Internal Revenue Code for dividends paid;
4            (E-16) An amount equal to the credit allowable to
5        the taxpayer under Section 218(a) of this Act,
6        determined without regard to Section 218(c) of this
7        Act;
8            (E-17) For taxable years ending on or after
9        December 31, 2017, an amount equal to the deduction
10        allowed under Section 199 of the Internal Revenue Code
11        for the taxable year;
12    and by deducting from the total so obtained the sum of the
13    following amounts:
14            (F) An amount equal to the amount of any tax
15        imposed by this Act which was refunded to the taxpayer
16        and included in such total for the taxable year;
17            (G) An amount equal to any amount included in such
18        total under Section 78 of the Internal Revenue Code;
19            (H) In the case of a regulated investment company,
20        an amount equal to the amount of exempt interest
21        dividends as defined in subsection (b)(5) of Section
22        852 of the Internal Revenue Code, paid to shareholders
23        for the taxable year;
24            (I) With the exception of any amounts subtracted
25        under subparagraph (J), an amount equal to the sum of
26        all amounts disallowed as deductions by (i) Sections

 

 

HB0902- 111 -LRB101 08006 RLC 53065 b

1        171(a)(2), and 265(a)(2) and amounts disallowed as
2        interest expense by Section 291(a)(3) of the Internal
3        Revenue Code, and all amounts of expenses allocable to
4        interest and disallowed as deductions by Section
5        265(a)(1) of the Internal Revenue Code; and (ii) for
6        taxable years ending on or after August 13, 1999,
7        Sections 171(a)(2), 265, 280C, 291(a)(3), and
8        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
9        for tax years ending on or after December 31, 2011,
10        amounts disallowed as deductions by Section 45G(e)(3)
11        of the Internal Revenue Code and, for taxable years
12        ending on or after December 31, 2008, any amount
13        included in gross income under Section 87 of the
14        Internal Revenue Code and the policyholders' share of
15        tax-exempt interest of a life insurance company under
16        Section 807(a)(2)(B) of the Internal Revenue Code (in
17        the case of a life insurance company with gross income
18        from a decrease in reserves for the tax year) or
19        Section 807(b)(1)(B) of the Internal Revenue Code (in
20        the case of a life insurance company allowed a
21        deduction for an increase in reserves for the tax
22        year); the provisions of this subparagraph are exempt
23        from the provisions of Section 250;
24            (J) An amount equal to all amounts included in such
25        total which are exempt from taxation by this State
26        either by reason of its statutes or Constitution or by

 

 

HB0902- 112 -LRB101 08006 RLC 53065 b

1        reason of the Constitution, treaties or statutes of the
2        United States; provided that, in the case of any
3        statute of this State that exempts income derived from
4        bonds or other obligations from the tax imposed under
5        this Act, the amount exempted shall be the interest net
6        of bond premium amortization;
7            (K) An amount equal to those dividends included in
8        such total which were paid by a corporation which
9        conducts business operations in a River Edge
10        Redevelopment Zone or zones created under the River
11        Edge Redevelopment Zone Act and conducts substantially
12        all of its operations in a River Edge Redevelopment
13        Zone or zones. This subparagraph (K) is exempt from the
14        provisions of Section 250;
15            (L) An amount equal to those dividends included in
16        such total that were paid by a corporation that
17        conducts business operations in a federally designated
18        Foreign Trade Zone or Sub-Zone and that is designated a
19        High Impact Business located in Illinois; provided
20        that dividends eligible for the deduction provided in
21        subparagraph (K) of paragraph 2 of this subsection
22        shall not be eligible for the deduction provided under
23        this subparagraph (L);
24            (M) For any taxpayer that is a financial
25        organization within the meaning of Section 304(c) of
26        this Act, an amount included in such total as interest

 

 

HB0902- 113 -LRB101 08006 RLC 53065 b

1        income from a loan or loans made by such taxpayer to a
2        borrower, to the extent that such a loan is secured by
3        property which is eligible for the River Edge
4        Redevelopment Zone Investment Credit. To determine the
5        portion of a loan or loans that is secured by property
6        eligible for a Section 201(f) investment credit to the
7        borrower, the entire principal amount of the loan or
8        loans between the taxpayer and the borrower should be
9        divided into the basis of the Section 201(f) investment
10        credit property which secures the loan or loans, using
11        for this purpose the original basis of such property on
12        the date that it was placed in service in the River
13        Edge Redevelopment Zone. The subtraction modification
14        available to the taxpayer in any year under this
15        subsection shall be that portion of the total interest
16        paid by the borrower with respect to such loan
17        attributable to the eligible property as calculated
18        under the previous sentence. This subparagraph (M) is
19        exempt from the provisions of Section 250;
20            (M-1) For any taxpayer that is a financial
21        organization within the meaning of Section 304(c) of
22        this Act, an amount included in such total as interest
23        income from a loan or loans made by such taxpayer to a
24        borrower, to the extent that such a loan is secured by
25        property which is eligible for the High Impact Business
26        Investment Credit. To determine the portion of a loan

 

 

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1        or loans that is secured by property eligible for a
2        Section 201(h) investment credit to the borrower, the
3        entire principal amount of the loan or loans between
4        the taxpayer and the borrower should be divided into
5        the basis of the Section 201(h) investment credit
6        property which secures the loan or loans, using for
7        this purpose the original basis of such property on the
8        date that it was placed in service in a federally
9        designated Foreign Trade Zone or Sub-Zone located in
10        Illinois. No taxpayer that is eligible for the
11        deduction provided in subparagraph (M) of paragraph
12        (2) of this subsection shall be eligible for the
13        deduction provided under this subparagraph (M-1). The
14        subtraction modification available to taxpayers in any
15        year under this subsection shall be that portion of the
16        total interest paid by the borrower with respect to
17        such loan attributable to the eligible property as
18        calculated under the previous sentence;
19            (N) Two times any contribution made during the
20        taxable year to a designated zone organization to the
21        extent that the contribution (i) qualifies as a
22        charitable contribution under subsection (c) of
23        Section 170 of the Internal Revenue Code and (ii) must,
24        by its terms, be used for a project approved by the
25        Department of Commerce and Economic Opportunity under
26        Section 11 of the Illinois Enterprise Zone Act or under

 

 

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1        Section 10-10 of the River Edge Redevelopment Zone Act.
2        This subparagraph (N) is exempt from the provisions of
3        Section 250;
4            (O) An amount equal to: (i) 85% for taxable years
5        ending on or before December 31, 1992, or, a percentage
6        equal to the percentage allowable under Section
7        243(a)(1) of the Internal Revenue Code of 1986 for
8        taxable years ending after December 31, 1992, of the
9        amount by which dividends included in taxable income
10        and received from a corporation that is not created or
11        organized under the laws of the United States or any
12        state or political subdivision thereof, including, for
13        taxable years ending on or after December 31, 1988,
14        dividends received or deemed received or paid or deemed
15        paid under Sections 951 through 965 of the Internal
16        Revenue Code, exceed the amount of the modification
17        provided under subparagraph (G) of paragraph (2) of
18        this subsection (b) which is related to such dividends,
19        and including, for taxable years ending on or after
20        December 31, 2008, dividends received from a captive
21        real estate investment trust; plus (ii) 100% of the
22        amount by which dividends, included in taxable income
23        and received, including, for taxable years ending on or
24        after December 31, 1988, dividends received or deemed
25        received or paid or deemed paid under Sections 951
26        through 964 of the Internal Revenue Code and including,

 

 

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1        for taxable years ending on or after December 31, 2008,
2        dividends received from a captive real estate
3        investment trust, from any such corporation specified
4        in clause (i) that would but for the provisions of
5        Section 1504(b)(3) of the Internal Revenue Code be
6        treated as a member of the affiliated group which
7        includes the dividend recipient, exceed the amount of
8        the modification provided under subparagraph (G) of
9        paragraph (2) of this subsection (b) which is related
10        to such dividends. This subparagraph (O) is exempt from
11        the provisions of Section 250 of this Act;
12            (P) An amount equal to any contribution made to a
13        job training project established pursuant to the Tax
14        Increment Allocation Redevelopment Act;
15            (Q) An amount equal to the amount of the deduction
16        used to compute the federal income tax credit for
17        restoration of substantial amounts held under claim of
18        right for the taxable year pursuant to Section 1341 of
19        the Internal Revenue Code;
20            (R) On and after July 20, 1999, in the case of an
21        attorney-in-fact with respect to whom an interinsurer
22        or a reciprocal insurer has made the election under
23        Section 835 of the Internal Revenue Code, 26 U.S.C.
24        835, an amount equal to the excess, if any, of the
25        amounts paid or incurred by that interinsurer or
26        reciprocal insurer in the taxable year to the

 

 

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1        attorney-in-fact over the deduction allowed to that
2        interinsurer or reciprocal insurer with respect to the
3        attorney-in-fact under Section 835(b) of the Internal
4        Revenue Code for the taxable year; the provisions of
5        this subparagraph are exempt from the provisions of
6        Section 250;
7            (S) For taxable years ending on or after December
8        31, 1997, in the case of a Subchapter S corporation, an
9        amount equal to all amounts of income allocable to a
10        shareholder subject to the Personal Property Tax
11        Replacement Income Tax imposed by subsections (c) and
12        (d) of Section 201 of this Act, including amounts
13        allocable to organizations exempt from federal income
14        tax by reason of Section 501(a) of the Internal Revenue
15        Code. This subparagraph (S) is exempt from the
16        provisions of Section 250;
17            (T) For taxable years 2001 and thereafter, for the
18        taxable year in which the bonus depreciation deduction
19        is taken on the taxpayer's federal income tax return
20        under subsection (k) of Section 168 of the Internal
21        Revenue Code and for each applicable taxable year
22        thereafter, an amount equal to "x", where:
23                (1) "y" equals the amount of the depreciation
24            deduction taken for the taxable year on the
25            taxpayer's federal income tax return on property
26            for which the bonus depreciation deduction was

 

 

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1            taken in any year under subsection (k) of Section
2            168 of the Internal Revenue Code, but not including
3            the bonus depreciation deduction;
4                (2) for taxable years ending on or before
5            December 31, 2005, "x" equals "y" multiplied by 30
6            and then divided by 70 (or "y" multiplied by
7            0.429); and
8                (3) for taxable years ending after December
9            31, 2005:
10                    (i) for property on which a bonus
11                depreciation deduction of 30% of the adjusted
12                basis was taken, "x" equals "y" multiplied by
13                30 and then divided by 70 (or "y" multiplied by
14                0.429); and
15                    (ii) for property on which a bonus
16                depreciation deduction of 50% of the adjusted
17                basis was taken, "x" equals "y" multiplied by
18                1.0.
19            The aggregate amount deducted under this
20        subparagraph in all taxable years for any one piece of
21        property may not exceed the amount of the bonus
22        depreciation deduction taken on that property on the
23        taxpayer's federal income tax return under subsection
24        (k) of Section 168 of the Internal Revenue Code. This
25        subparagraph (T) is exempt from the provisions of
26        Section 250;

 

 

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

 

 

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

 

 

HB0902- 122 -LRB101 08006 RLC 53065 b

1        taxable year under Section 203(b)(2)(E-13) for
2        intangible expenses and costs paid, accrued, or
3        incurred, directly or indirectly, to the same foreign
4        person. This subparagraph (X) is exempt from the
5        provisions of Section 250;
6            (Y) For taxable years ending on or after December
7        31, 2011, in the case of a taxpayer who was required to
8        add back any insurance premiums under Section
9        203(b)(2)(E-14), such taxpayer may elect to subtract
10        that part of a reimbursement received from the
11        insurance company equal to the amount of the expense or
12        loss (including expenses incurred by the insurance
13        company) that would have been taken into account as a
14        deduction for federal income tax purposes if the
15        expense or loss had been uninsured. If a taxpayer makes
16        the election provided for by this subparagraph (Y), the
17        insurer to which the premiums were paid must add back
18        to income the amount subtracted by the taxpayer
19        pursuant to this subparagraph (Y). This subparagraph
20        (Y) is exempt from the provisions of Section 250; and
21            (Z) The difference between the nondeductible
22        controlled foreign corporation dividends under Section
23        965(e)(3) of the Internal Revenue Code over the taxable
24        income of the taxpayer, computed without regard to
25        Section 965(e)(2)(A) of the Internal Revenue Code, and
26        without regard to any net operating loss deduction.

 

 

HB0902- 123 -LRB101 08006 RLC 53065 b

1        This subparagraph (Z) is exempt from the provisions of
2        Section 250; and .
3            (AA) An amount equal to all the ordinary and
4        necessary expenses paid or incurred during the taxable
5        year in carrying on the business of a cannabis
6        establishment as defined in Section 10 of the Cannabis
7        Legalization Equity Act if the cannabis establishment
8        is in compliance with that Act, including:
9                (i) a reasonable allowance for salaries or
10            other compensation for personal services actually
11            rendered;
12                (ii) traveling expenses (including amounts
13            expended for meals and lodging other than amounts
14            which are lavish or extravagant under the
15            circumstances) while away from home in the pursuit
16            of the business of the cannabis establishment; and
17                (iii) rentals or other payments required to be
18            made as a condition to the continued use or
19            possession, for purposes of the business of a
20            cannabis establishment, of property to which the
21            taxpayer has not taken or is not taking title or in
22            which he or she has no equity.
23        (3) Special rule. For purposes of paragraph (2)(A),
24    "gross income" in the case of a life insurance company, for
25    tax years ending on and after December 31, 1994, and prior
26    to December 31, 2011, shall mean the gross investment

 

 

HB0902- 124 -LRB101 08006 RLC 53065 b

1    income for the taxable year and, for tax years ending on or
2    after December 31, 2011, shall mean all amounts included in
3    life insurance gross income under Section 803(a)(3) of the
4    Internal Revenue Code.
 
5    (c) Trusts and estates.
6        (1) In general. In the case of a trust or estate, base
7    income means an amount equal to the taxpayer's taxable
8    income for the taxable year as modified by paragraph (2).
9        (2) Modifications. Subject to the provisions of
10    paragraph (3), the taxable income referred to in paragraph
11    (1) shall be modified by adding thereto the sum of the
12    following amounts:
13            (A) An amount equal to all amounts paid or accrued
14        to the taxpayer as interest or dividends during the
15        taxable year to the extent excluded from gross income
16        in the computation of taxable income;
17            (B) In the case of (i) an estate, $600; (ii) a
18        trust which, under its governing instrument, is
19        required to distribute all of its income currently,
20        $300; and (iii) any other trust, $100, but in each such
21        case, only to the extent such amount was deducted in
22        the computation of taxable income;
23            (C) An amount equal to the amount of tax imposed by
24        this Act to the extent deducted from gross income in
25        the computation of taxable income for the taxable year;

 

 

HB0902- 125 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 126 -LRB101 08006 RLC 53065 b

1            such carryback or carryforward;
2            For taxable years in which there is a net operating
3        loss carryback or carryforward from more than one other
4        taxable year ending prior to December 31, 1986, the
5        addition modification provided in this subparagraph
6        (E) shall be the sum of the amounts computed
7        independently under the preceding provisions of this
8        subparagraph (E) for each such taxable year;
9            (F) For taxable years ending on or after January 1,
10        1989, an amount equal to the tax deducted pursuant to
11        Section 164 of the Internal Revenue Code if the trust
12        or estate is claiming the same tax for purposes of the
13        Illinois foreign tax credit under Section 601 of this
14        Act;
15            (G) An amount equal to the amount of the capital
16        gain deduction allowable under the Internal Revenue
17        Code, to the extent deducted from gross income in the
18        computation of taxable income;
19            (G-5) For taxable years ending after December 31,
20        1997, an amount equal to any eligible remediation costs
21        that the trust or estate deducted in computing adjusted
22        gross income and for which the trust or estate claims a
23        credit under subsection (l) of Section 201;
24            (G-10) For taxable years 2001 and thereafter, an
25        amount equal to the bonus depreciation deduction taken
26        on the taxpayer's federal income tax return for the

 

 

HB0902- 127 -LRB101 08006 RLC 53065 b

1        taxable year under subsection (k) of Section 168 of the
2        Internal Revenue Code; and
3            (G-11) If the taxpayer sells, transfers, abandons,
4        or otherwise disposes of property for which the
5        taxpayer was required in any taxable year to make an
6        addition modification under subparagraph (G-10), then
7        an amount equal to the aggregate amount of the
8        deductions taken in all taxable years under
9        subparagraph (R) with respect to that property.
10            If the taxpayer continues to own property through
11        the last day of the last tax year for which the
12        taxpayer may claim a depreciation deduction for
13        federal income tax purposes and for which the taxpayer
14        was allowed in any taxable year to make a subtraction
15        modification under subparagraph (R), then an amount
16        equal to that subtraction modification.
17            The taxpayer is required to make the addition
18        modification under this subparagraph only once with
19        respect to any one piece of property;
20            (G-12) An amount equal to the amount otherwise
21        allowed as a deduction in computing base income for
22        interest paid, accrued, or incurred, directly or
23        indirectly, (i) for taxable years ending on or after
24        December 31, 2004, to a foreign person who would be a
25        member of the same unitary business group but for the
26        fact that the foreign person's business activity

 

 

HB0902- 128 -LRB101 08006 RLC 53065 b

1        outside the United States is 80% or more of the foreign
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. The addition modification
10        required by this subparagraph shall be reduced to the
11        extent that dividends were included in base income of
12        the unitary group for the same taxable year and
13        received by the taxpayer or by a member of the
14        taxpayer's unitary business group (including amounts
15        included in gross income pursuant to Sections 951
16        through 964 of the Internal Revenue Code and amounts
17        included in gross income under Section 78 of the
18        Internal Revenue Code) with respect to the stock of the
19        same person to whom the interest was paid, accrued, or
20        incurred.
21            This paragraph shall not apply to the following:
22                (i) an item of interest paid, accrued, or
23            incurred, directly or indirectly, to a person who
24            is subject in a foreign country or state, other
25            than a state which requires mandatory unitary
26            reporting, to a tax on or measured by net income

 

 

HB0902- 129 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 130 -LRB101 08006 RLC 53065 b

1            if the taxpayer and the Director agree in writing
2            to the application or use of an alternative method
3            of apportionment under Section 304(f).
4                Nothing in this subsection shall preclude the
5            Director from making any other adjustment
6            otherwise allowed under Section 404 of this Act for
7            any tax year beginning after the effective date of
8            this amendment provided such adjustment is made
9            pursuant to regulation adopted by the Department
10            and such regulations provide methods and standards
11            by which the Department will utilize its authority
12            under Section 404 of this Act;
13            (G-13) An amount equal to the amount of intangible
14        expenses and costs otherwise allowed as a deduction in
15        computing base income, and that were paid, accrued, or
16        incurred, directly or indirectly, (i) for taxable
17        years ending on or after December 31, 2004, to a
18        foreign person who would be a member of the same
19        unitary business group but for the fact that the
20        foreign person's business activity outside the United
21        States is 80% or more of that person's total business
22        activity and (ii) for taxable years ending on or after
23        December 31, 2008, to a person who would be a member of
24        the same unitary business group but for the fact that
25        the person is prohibited under Section 1501(a)(27)
26        from being included in the unitary business group

 

 

HB0902- 131 -LRB101 08006 RLC 53065 b

1        because he or she is ordinarily required to apportion
2        business income under different subsections of Section
3        304. The addition modification required by this
4        subparagraph shall be reduced to the extent that
5        dividends were included in base income of the unitary
6        group for the same taxable year and received by the
7        taxpayer or by a member of the taxpayer's unitary
8        business group (including amounts included in gross
9        income pursuant to Sections 951 through 964 of the
10        Internal Revenue Code and amounts included in gross
11        income under Section 78 of the Internal Revenue Code)
12        with respect to the stock of the same person to whom
13        the intangible expenses and costs were directly or
14        indirectly paid, incurred, or accrued. The preceding
15        sentence shall not apply to the extent that the same
16        dividends caused a reduction to the addition
17        modification required under Section 203(c)(2)(G-12) of
18        this Act. As used in this subparagraph, the term
19        "intangible expenses and costs" includes: (1)
20        expenses, losses, and costs for or related to the
21        direct or indirect acquisition, use, maintenance or
22        management, ownership, sale, exchange, or any other
23        disposition of intangible property; (2) losses
24        incurred, directly or indirectly, from factoring
25        transactions or discounting transactions; (3) royalty,
26        patent, technical, and copyright fees; (4) licensing

 

 

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

 

 

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1                income tax, and is paid pursuant to a contract
2                or agreement that reflects arm's-length terms;
3                or
4                (iii) any item of intangible expense or cost
5            paid, accrued, or incurred, directly or
6            indirectly, from a transaction with a person if the
7            taxpayer establishes by clear and convincing
8            evidence, that the adjustments are unreasonable;
9            or if the taxpayer and the Director agree in
10            writing to the application or use of an alternative
11            method of apportionment under Section 304(f);
12                Nothing in this subsection shall preclude the
13            Director from making any other adjustment
14            otherwise allowed under Section 404 of this Act for
15            any tax year beginning after the effective date of
16            this amendment provided such adjustment is made
17            pursuant to regulation adopted by the Department
18            and such regulations provide methods and standards
19            by which the Department will utilize its authority
20            under Section 404 of this Act;
21            (G-14) For taxable years ending on or after
22        December 31, 2008, an amount equal to the amount of
23        insurance premium expenses and costs otherwise allowed
24        as a deduction in computing base income, and that were
25        paid, accrued, or incurred, directly or indirectly, to
26        a person who would be a member of the same unitary

 

 

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1        business group but for the fact that the person is
2        prohibited under Section 1501(a)(27) from being
3        included in the unitary business group because he or
4        she is ordinarily required to apportion business
5        income under different subsections of Section 304. The
6        addition modification required by this subparagraph
7        shall be reduced to the extent that dividends were
8        included in base income of the unitary group for the
9        same taxable year and received by the taxpayer or by a
10        member of the taxpayer's unitary business group
11        (including amounts included in gross income under
12        Sections 951 through 964 of the Internal Revenue Code
13        and amounts included in gross income under Section 78
14        of the Internal Revenue Code) with respect to the stock
15        of the same person to whom the premiums and costs were
16        directly or indirectly paid, incurred, or accrued. The
17        preceding sentence does not apply to the extent that
18        the same dividends caused a reduction to the addition
19        modification required under Section 203(c)(2)(G-12) or
20        Section 203(c)(2)(G-13) of this Act;
21            (G-15) An amount equal to the credit allowable to
22        the taxpayer under Section 218(a) of this Act,
23        determined without regard to Section 218(c) of this
24        Act;
25            (G-16) For taxable years ending on or after
26        December 31, 2017, an amount equal to the deduction

 

 

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1        allowed under Section 199 of the Internal Revenue Code
2        for the taxable year;
3    and by deducting from the total so obtained the sum of the
4    following amounts:
5            (H) An amount equal to all amounts included in such
6        total pursuant to the provisions of Sections 402(a),
7        402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
8        Internal Revenue Code or included in such total as
9        distributions under the provisions of any retirement
10        or disability plan for employees of any governmental
11        agency or unit, or retirement payments to retired
12        partners, which payments are excluded in computing net
13        earnings from self employment by Section 1402 of the
14        Internal Revenue Code and regulations adopted pursuant
15        thereto;
16            (I) The valuation limitation amount;
17            (J) An amount equal to the amount of any tax
18        imposed by this Act which was refunded to the taxpayer
19        and included in such total for the taxable year;
20            (K) An amount equal to all amounts included in
21        taxable income as modified by subparagraphs (A), (B),
22        (C), (D), (E), (F) and (G) which are exempt from
23        taxation by this State either by reason of its statutes
24        or Constitution or by reason of the Constitution,
25        treaties or statutes of the United States; provided
26        that, in the case of any statute of this State that

 

 

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1        exempts income derived from bonds or other obligations
2        from the tax imposed under this Act, the amount
3        exempted shall be the interest net of bond premium
4        amortization;
5            (L) With the exception of any amounts subtracted
6        under subparagraph (K), an amount equal to the sum of
7        all amounts disallowed as deductions by (i) Sections
8        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
9        and all amounts of expenses allocable to interest and
10        disallowed as deductions by Section 265(a)(1) 265(1)
11        of the Internal Revenue Code; and (ii) for taxable
12        years ending on or after August 13, 1999, Sections
13        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
14        Internal Revenue Code, plus, (iii) for taxable years
15        ending on or after December 31, 2011, Section 45G(e)(3)
16        of the Internal Revenue Code and, for taxable years
17        ending on or after December 31, 2008, any amount
18        included in gross income under Section 87 of the
19        Internal Revenue Code; the provisions of this
20        subparagraph are exempt from the provisions of Section
21        250;
22            (M) An amount equal to those dividends included in
23        such total which were paid by a corporation which
24        conducts business operations in a River Edge
25        Redevelopment Zone or zones created under the River
26        Edge Redevelopment Zone Act and conducts substantially

 

 

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1        all of its operations in a River Edge Redevelopment
2        Zone or zones. This subparagraph (M) is exempt from the
3        provisions of Section 250;
4            (N) An amount equal to any contribution made to a
5        job training project established pursuant to the Tax
6        Increment Allocation Redevelopment Act;
7            (O) An amount equal to those dividends included in
8        such total that were paid by a corporation that
9        conducts business operations in a federally designated
10        Foreign Trade Zone or Sub-Zone and that is designated a
11        High Impact Business located in Illinois; provided
12        that dividends eligible for the deduction provided in
13        subparagraph (M) of paragraph (2) of this subsection
14        shall not be eligible for the deduction provided under
15        this subparagraph (O);
16            (P) An amount equal to the amount of the deduction
17        used to compute the federal income tax credit for
18        restoration of substantial amounts held under claim of
19        right for the taxable year pursuant to Section 1341 of
20        the Internal Revenue Code;
21            (Q) For taxable year 1999 and thereafter, an amount
22        equal to the amount of any (i) distributions, to the
23        extent includible in gross income for federal income
24        tax purposes, made to the taxpayer because of his or
25        her status as a victim of persecution for racial or
26        religious reasons by Nazi Germany or any other Axis

 

 

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1        regime or as an heir of the victim and (ii) items of
2        income, to the extent includible in gross income for
3        federal income tax purposes, attributable to, derived
4        from or in any way related to assets stolen from,
5        hidden from, or otherwise lost to a victim of
6        persecution for racial or religious reasons by Nazi
7        Germany or any other Axis regime immediately prior to,
8        during, and immediately after World War II, including,
9        but not limited to, interest on the proceeds receivable
10        as insurance under policies issued to a victim of
11        persecution for racial or religious reasons by Nazi
12        Germany or any other Axis regime by European insurance
13        companies immediately prior to and during World War II;
14        provided, however, this subtraction from federal
15        adjusted gross income does not apply to assets acquired
16        with such assets or with the proceeds from the sale of
17        such assets; provided, further, this paragraph shall
18        only apply to a taxpayer who was the first recipient of
19        such assets after their recovery and who is a victim of
20        persecution for racial or religious reasons by Nazi
21        Germany or any other Axis regime or as an heir of the
22        victim. The amount of and the eligibility for any
23        public assistance, benefit, or similar entitlement is
24        not affected by the inclusion of items (i) and (ii) of
25        this paragraph in gross income for federal income tax
26        purposes. This paragraph is exempt from the provisions

 

 

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

 

 

HB0902- 140 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 141 -LRB101 08006 RLC 53065 b

1            This subparagraph (S) is exempt from the
2        provisions of Section 250;
3            (T) The amount of (i) any interest income (net of
4        the deductions allocable thereto) taken into account
5        for the taxable year with respect to a transaction with
6        a taxpayer that is required to make an addition
7        modification with respect to such transaction under
8        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
9        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
10        the amount of such addition modification and (ii) any
11        income from intangible property (net of the deductions
12        allocable thereto) taken into account for the taxable
13        year with respect to a transaction with a taxpayer that
14        is required to make an addition modification with
15        respect to such transaction under Section
16        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
17        203(d)(2)(D-8), but not to exceed the amount of such
18        addition modification. This subparagraph (T) is exempt
19        from the provisions of Section 250;
20            (U) An amount equal to the interest income taken
21        into account for the taxable year (net of the
22        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 the foreign person's business activity
26        outside the United States is 80% or more of that

 

 

HB0902- 142 -LRB101 08006 RLC 53065 b

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(c)(2)(G-12) for
11        interest paid, accrued, or incurred, directly or
12        indirectly, to the same person. This subparagraph (U)
13        is exempt from the provisions of Section 250;
14            (V) An amount equal to the income from intangible
15        property taken into account for the taxable year (net
16        of the deductions allocable thereto) with respect to
17        transactions with (i) a foreign person who would be a
18        member of the taxpayer's unitary business group but for
19        the fact that the foreign person's business activity
20        outside the United States is 80% or more of that
21        person's total business activity and (ii) for taxable
22        years ending on or after December 31, 2008, to a person
23        who would be a member of the same unitary business
24        group but for the fact that the person is prohibited
25        under Section 1501(a)(27) from being included in the
26        unitary business group because he or she is ordinarily

 

 

HB0902- 143 -LRB101 08006 RLC 53065 b

1        required to apportion business income under different
2        subsections of Section 304, but not to exceed the
3        addition modification required to be made for the same
4        taxable year under Section 203(c)(2)(G-13) for
5        intangible expenses and costs paid, accrued, or
6        incurred, directly or indirectly, to the same foreign
7        person. This subparagraph (V) is exempt from the
8        provisions of Section 250;
9            (W) in the case of an estate, an amount equal to
10        all amounts included in such total pursuant to the
11        provisions of Section 111 of the Internal Revenue Code
12        as a recovery of items previously deducted by the
13        decedent from adjusted gross income in the computation
14        of taxable income. This subparagraph (W) is exempt from
15        Section 250;
16            (X) an amount equal to the refund included in such
17        total of any tax deducted for federal income tax
18        purposes, to the extent that deduction was added back
19        under subparagraph (F). This subparagraph (X) is
20        exempt from the provisions of Section 250; and
21            (Y) For taxable years ending on or after December
22        31, 2011, in the case of a taxpayer who was required to
23        add back any insurance premiums under Section
24        203(c)(2)(G-14), such taxpayer may elect to subtract
25        that part of a reimbursement received from the
26        insurance company equal to the amount of the expense or

 

 

HB0902- 144 -LRB101 08006 RLC 53065 b

1        loss (including expenses incurred by the insurance
2        company) that would have been taken into account as a
3        deduction for federal income tax purposes if the
4        expense or loss had been uninsured. If a taxpayer makes
5        the election provided for by this subparagraph (Y), the
6        insurer to which the premiums were paid must add back
7        to income the amount subtracted by the taxpayer
8        pursuant to this subparagraph (Y). This subparagraph
9        (Y) is exempt from the provisions of Section 250; and .
10            (Z) An amount equal to all the ordinary and
11        necessary expenses paid or incurred during the taxable
12        year in carrying on the business of a cannabis
13        establishment as defined in Section 10 of the Cannabis
14        Legalization Equity Act if the cannabis establishment
15        is in compliance with that Act, including:
16                (i) a reasonable allowance for salaries or
17            other compensation for personal services actually
18            rendered;
19                (ii) traveling expenses (including amounts
20            expended for meals and lodging other than amounts
21            which are lavish or extravagant under the
22            circumstances) while away from home in the pursuit
23            of the business of the cannabis establishment; and
24                (iii) rentals or other payments required to be
25            made as a condition to the continued use or
26            possession, for purposes of the business of a

 

 

HB0902- 145 -LRB101 08006 RLC 53065 b

1            cannabis establishment, of property to which the
2            taxpayer has not taken or is not taking title or in
3            which he or she has no equity.
4        (3) Limitation. The amount of any modification
5    otherwise required under this subsection shall, under
6    regulations prescribed by the Department, be adjusted by
7    any amounts included therein which were properly paid,
8    credited, or required to be distributed, or permanently set
9    aside for charitable purposes pursuant to Internal Revenue
10    Code Section 642(c) during the taxable year.
 
11    (d) Partnerships.
12        (1) In general. In the case of a partnership, base
13    income means an amount equal to the taxpayer's taxable
14    income for the taxable year as modified by paragraph (2).
15        (2) Modifications. The taxable income referred to in
16    paragraph (1) shall be modified by adding thereto the sum
17    of the following amounts:
18            (A) An amount equal to all amounts paid or accrued
19        to the taxpayer as interest or dividends during the
20        taxable year to the extent excluded from gross income
21        in the computation of taxable income;
22            (B) An amount equal to the amount of tax imposed by
23        this Act to the extent deducted from gross income for
24        the taxable year;
25            (C) The amount of deductions allowed to the

 

 

HB0902- 146 -LRB101 08006 RLC 53065 b

1        partnership pursuant to Section 707 (c) of the Internal
2        Revenue Code in calculating its taxable income;
3            (D) An amount equal to the amount of the capital
4        gain deduction allowable under the Internal Revenue
5        Code, to the extent deducted from gross income in the
6        computation of taxable income;
7            (D-5) For taxable years 2001 and thereafter, an
8        amount equal to the bonus depreciation deduction taken
9        on the taxpayer's federal income tax return for the
10        taxable year under subsection (k) of Section 168 of the
11        Internal Revenue Code;
12            (D-6) If the taxpayer sells, transfers, abandons,
13        or otherwise disposes of property for which the
14        taxpayer was required in any taxable year to make an
15        addition modification under subparagraph (D-5), then
16        an amount equal to the aggregate amount of the
17        deductions taken in all taxable years under
18        subparagraph (O) with respect to that property.
19            If the taxpayer continues to own property through
20        the last day of the last tax year for which the
21        taxpayer may claim a depreciation deduction for
22        federal income tax purposes and for which the taxpayer
23        was allowed in any taxable year to make a subtraction
24        modification under subparagraph (O), then an amount
25        equal to that subtraction modification.
26            The taxpayer is required to make the addition

 

 

HB0902- 147 -LRB101 08006 RLC 53065 b

1        modification under this subparagraph only once with
2        respect to any one piece of property;
3            (D-7) An amount equal to the amount otherwise
4        allowed as a deduction in computing base income for
5        interest paid, accrued, or incurred, directly or
6        indirectly, (i) for taxable years ending on or after
7        December 31, 2004, to a foreign person who would be a
8        member of the same unitary business group but for the
9        fact the foreign person's business activity outside
10        the United States is 80% or more of the foreign
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. The addition modification
19        required by this subparagraph shall be reduced to the
20        extent that dividends were included in base income of
21        the unitary group for the same taxable year and
22        received by the taxpayer or by a member of the
23        taxpayer's unitary business group (including amounts
24        included in gross income pursuant to Sections 951
25        through 964 of the Internal Revenue Code and amounts
26        included in gross income under Section 78 of the

 

 

HB0902- 148 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 149 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 150 -LRB101 08006 RLC 53065 b

1        foreign person who would be a member of the same
2        unitary business group but for the fact that the
3        foreign person's business activity outside the United
4        States is 80% or more of that person's total business
5        activity and (ii) for taxable years ending on or after
6        December 31, 2008, to a person who would be a member of
7        the same unitary business group but for the fact that
8        the person is prohibited under Section 1501(a)(27)
9        from being included in the unitary business group
10        because he or she is ordinarily required to apportion
11        business income under different subsections of Section
12        304. The addition modification required by this
13        subparagraph shall be reduced to the extent that
14        dividends were included in base income of the unitary
15        group for the same taxable year and received by the
16        taxpayer or by a member of the taxpayer's unitary
17        business group (including amounts included in gross
18        income pursuant to Sections 951 through 964 of the
19        Internal Revenue Code and amounts included in gross
20        income under Section 78 of the Internal Revenue Code)
21        with respect to the stock of the same person to whom
22        the intangible expenses and costs were directly or
23        indirectly paid, incurred or accrued. The preceding
24        sentence shall not apply to the extent that the same
25        dividends caused a reduction to the addition
26        modification required under Section 203(d)(2)(D-7) of

 

 

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

 

 

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

 

 

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1            and such regulations provide methods and standards
2            by which the Department will utilize its authority
3            under Section 404 of this Act;
4            (D-9) For taxable years ending on or after December
5        31, 2008, an amount equal to the amount of insurance
6        premium expenses and costs otherwise allowed as a
7        deduction in computing base income, and that were paid,
8        accrued, or incurred, directly or indirectly, to a
9        person who would be a member of the same unitary
10        business group but for the fact that the person is
11        prohibited under Section 1501(a)(27) from being
12        included in the unitary business group because he or
13        she is ordinarily required to apportion business
14        income under different subsections of Section 304. The
15        addition modification required by this subparagraph
16        shall be reduced to the extent that dividends were
17        included in base income of the unitary group for the
18        same taxable year and received by the taxpayer or by a
19        member of the taxpayer's unitary business group
20        (including amounts included in gross income under
21        Sections 951 through 964 of the Internal Revenue Code
22        and amounts included in gross income under Section 78
23        of the Internal Revenue Code) with respect to the stock
24        of the same person to whom the premiums and costs were
25        directly or indirectly paid, incurred, or accrued. The
26        preceding sentence does not apply to the extent that

 

 

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1        the same dividends caused a reduction to the addition
2        modification required under Section 203(d)(2)(D-7) or
3        Section 203(d)(2)(D-8) of this Act;
4            (D-10) An amount equal to the credit allowable to
5        the taxpayer under Section 218(a) of this Act,
6        determined without regard to Section 218(c) of this
7        Act;
8            (D-11) For taxable years ending on or after
9        December 31, 2017, an amount equal to the deduction
10        allowed under Section 199 of the Internal Revenue Code
11        for the taxable year;
12    and by deducting from the total so obtained the following
13    amounts:
14            (E) The valuation limitation amount;
15            (F) An amount equal to the amount of any tax
16        imposed by this Act which was refunded to the taxpayer
17        and included in such total for the taxable year;
18            (G) An amount equal to all amounts included in
19        taxable income as modified by subparagraphs (A), (B),
20        (C) and (D) which are exempt from taxation by this
21        State either by reason of its statutes or Constitution
22        or by reason of the Constitution, treaties or statutes
23        of the United States; provided that, in the case of any
24        statute of this State that exempts income derived from
25        bonds or other obligations from the tax imposed under
26        this Act, the amount exempted shall be the interest net

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB0902- 159 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 160 -LRB101 08006 RLC 53065 b

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(d)(2)(D-7) for interest
17        paid, accrued, or incurred, directly or indirectly, to
18        the same person. This subparagraph (R) is exempt from
19        Section 250;
20            (S) 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

 

 

HB0902- 161 -LRB101 08006 RLC 53065 b

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(d)(2)(D-8) for
11        intangible expenses and costs paid, accrued, or
12        incurred, directly or indirectly, to the same person.
13        This subparagraph (S) is exempt from Section 250; and
14            (T) For taxable years ending on or after December
15        31, 2011, in the case of a taxpayer who was required to
16        add back any insurance premiums under Section
17        203(d)(2)(D-9), such taxpayer may elect to subtract
18        that part of a reimbursement received from the
19        insurance company equal to the amount of the expense or
20        loss (including expenses incurred by the insurance
21        company) that would have been taken into account as a
22        deduction for federal income tax purposes if the
23        expense or loss had been uninsured. If a taxpayer makes
24        the election provided for by this subparagraph (T), the
25        insurer to which the premiums were paid must add back
26        to income the amount subtracted by the taxpayer

 

 

HB0902- 162 -LRB101 08006 RLC 53065 b

1        pursuant to this subparagraph (T). This subparagraph
2        (T) is exempt from the provisions of Section 250; and .
3            (U) An amount equal to all the ordinary and
4        necessary expenses paid or incurred during the taxable
5        year in carrying on the business of a cannabis
6        establishment as defined in Section 10 of the Cannabis
7        Legalization Equity Act if the cannabis establishment
8        is in compliance with that Act, including:
9                (i) a reasonable allowance for salaries or
10            other compensation for personal services actually
11            rendered;
12                (ii) traveling expenses (including amounts
13            expended for meals and lodging other than amounts
14            which are lavish or extravagant under the
15            circumstances) while away from home in the pursuit
16            of the business of the cannabis establishment; and
17                (iii) rentals or other payments required to be
18            made as a condition to the continued use or
19            possession, for purposes of the business of a
20            cannabis establishment, of property to which the
21            taxpayer has not taken or is not taking title or in
22            which he or she has no equity.
 
23    (e) Gross income; adjusted gross income; taxable income.
24        (1) In general. Subject to the provisions of paragraph
25    (2) and subsection (b)(3), for purposes of this Section and

 

 

HB0902- 163 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 164 -LRB101 08006 RLC 53065 b

1    applied under Section 172 of the Internal Revenue Code or
2    under subparagraph (E) of paragraph (2) of this subsection
3    (e) applied in conjunction with Section 172 of the Internal
4    Revenue Code.
5        (2) Special rule. For purposes of paragraph (1) of this
6    subsection, the taxable income properly reportable for
7    federal income tax purposes shall mean:
8            (A) Certain life insurance companies. In the case
9        of a life insurance company subject to the tax imposed
10        by Section 801 of the Internal Revenue Code, life
11        insurance company taxable income, plus the amount of
12        distribution from pre-1984 policyholder surplus
13        accounts as calculated under Section 815a of the
14        Internal Revenue Code;
15            (B) Certain other insurance companies. In the case
16        of mutual insurance companies subject to the tax
17        imposed by Section 831 of the Internal Revenue Code,
18        insurance company taxable income;
19            (C) Regulated investment companies. In the case of
20        a regulated investment company subject to the tax
21        imposed by Section 852 of the Internal Revenue Code,
22        investment company taxable income;
23            (D) Real estate investment trusts. In the case of a
24        real estate investment trust subject to the tax imposed
25        by Section 857 of the Internal Revenue Code, real
26        estate investment trust taxable income;

 

 

HB0902- 165 -LRB101 08006 RLC 53065 b

1            (E) Consolidated corporations. In the case of a
2        corporation which is a member of an affiliated group of
3        corporations filing a consolidated income tax return
4        for the taxable year for federal income tax purposes,
5        taxable income determined as if such corporation had
6        filed a separate return for federal income tax purposes
7        for the taxable year and each preceding taxable year
8        for which it was a member of an affiliated group. For
9        purposes of this subparagraph, the taxpayer's separate
10        taxable income shall be determined as if the election
11        provided by Section 243(b)(2) of the Internal Revenue
12        Code had been in effect for all such years;
13            (F) Cooperatives. In the case of a cooperative
14        corporation or association, the taxable income of such
15        organization determined in accordance with the
16        provisions of Section 1381 through 1388 of the Internal
17        Revenue Code, but without regard to the prohibition
18        against offsetting losses from patronage activities
19        against income from nonpatronage activities; except
20        that a cooperative corporation or association may make
21        an election to follow its federal income tax treatment
22        of patronage losses and nonpatronage losses. In the
23        event such election is made, such losses shall be
24        computed and carried over in a manner consistent with
25        subsection (a) of Section 207 of this Act and
26        apportioned by the apportionment factor reported by

 

 

HB0902- 166 -LRB101 08006 RLC 53065 b

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

 

 

HB0902- 167 -LRB101 08006 RLC 53065 b

1        a federal election to opt out of the provisions of the
2        Subchapter S Revision Act of 1982 and have applied
3        instead the prior federal Subchapter S rules as in
4        effect on July 1, 1982, the taxable income of such
5        corporation determined in accordance with the federal
6        Subchapter S rules as in effect on July 1, 1982; and
7            (H) Partnerships. In the case of a partnership,
8        taxable income determined in accordance with Section
9        703 of the Internal Revenue Code, except that taxable
10        income shall take into account those items which are
11        required by Section 703(a)(1) to be separately stated
12        but which would be taken into account by an individual
13        in calculating his taxable income.
14        (3) Recapture of business expenses on disposition of
15    asset or business. Notwithstanding any other law to the
16    contrary, if in prior years income from an asset or
17    business has been classified as business income and in a
18    later year is demonstrated to be non-business income, then
19    all expenses, without limitation, deducted in such later
20    year and in the 2 immediately preceding taxable years
21    related to that asset or business that generated the
22    non-business income shall be added back and recaptured as
23    business income in the year of the disposition of the asset
24    or business. Such amount shall be apportioned to Illinois
25    using the greater of the apportionment fraction computed
26    for the business under Section 304 of this Act for the

 

 

HB0902- 168 -LRB101 08006 RLC 53065 b

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

 

 

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1        such property is the lesser of (i) the excess of such
2        fair market value over the taxpayer's basis (for
3        determining gain) for such property on that date
4        (determined under the Internal Revenue Code as in
5        effect on that date), or (ii) the total gain realized
6        and reportable for federal income tax purposes in
7        respect of the sale, exchange or other disposition of
8        such property.
9            (B) If the fair market value of property referred
10        to in paragraph (1) was not readily ascertainable on
11        August 1, 1969, the pre-August 1, 1969 appreciation
12        amount for such property is that amount which bears the
13        same ratio to the total gain reported in respect of the
14        property for federal income tax purposes for the
15        taxable year, as the number of full calendar months in
16        that part of the taxpayer's holding period for the
17        property ending July 31, 1969 bears to the number of
18        full calendar months in the taxpayer's entire holding
19        period for the property.
20            (C) The Department shall prescribe such
21        regulations as may be necessary to carry out the
22        purposes of this paragraph.
 
23    (g) Double deductions. Unless specifically provided
24otherwise, nothing in this Section shall permit the same item
25to be deducted more than once.
 

 

 

HB0902- 170 -LRB101 08006 RLC 53065 b

1    (h) Legislative intention. Except as expressly provided by
2this Section there shall be no modifications or limitations on
3the amounts of income, gain, loss or deduction taken into
4account in determining gross income, adjusted gross income or
5taxable income for federal income tax purposes for the taxable
6year, or in the amount of such items entering into the
7computation of base income and net income under this Act for
8such taxable year, whether in respect of property values as of
9August 1, 1969 or otherwise.
10(Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18;
11revised 10-29-18.)
 
12    Section 925. The Compassionate Use of Medical Cannabis
13Pilot Program Act is amended by changing Section 10 as follows:
 
14    (410 ILCS 130/10)
15    (Section scheduled to be repealed on July 1, 2020)
16    Sec. 10. Definitions. The following terms, as used in this
17Act, shall have the meanings set forth in this Section:
18    (a) "Adequate supply" means:
19        (1) 2.5 ounces of usable cannabis during a period of 14
20    days and that is derived solely from an intrastate source.
21        (2) Subject to the rules of the Department of Public
22    Health, a patient may apply for a waiver where a physician
23    provides a substantial medical basis in a signed, written

 

 

HB0902- 171 -LRB101 08006 RLC 53065 b

1    statement asserting that, based on the patient's medical
2    history, in the physician's professional judgment, 2.5
3    ounces is an insufficient adequate supply for a 14-day
4    period to properly alleviate the patient's debilitating
5    medical condition or symptoms associated with the
6    debilitating medical condition.
7        (3) This subsection may not be construed to authorize
8    the possession of more than 2.5 ounces at any time without
9    authority from the Department of Public Health.
10        (4) The pre-mixed weight of medical cannabis used in
11    making a cannabis infused product shall apply toward the
12    limit on the total amount of medical cannabis a registered
13    qualifying patient may possess at any one time.
14    (b) "Cannabis" has the meaning given that term in Section 3
15of the Cannabis Control Act.
16    (c) "Cannabis plant monitoring system" means a system that
17includes, but is not limited to, testing and data collection
18established and maintained by the registered cultivation
19center and available to the Department for the purposes of
20documenting each cannabis plant and for monitoring plant
21development throughout the life cycle of a cannabis plant
22cultivated for the intended use by a qualifying patient from
23seed planting to final packaging.
24    (d) "Cardholder" means a qualifying patient or a designated
25caregiver who has been issued and possesses a valid registry
26identification card by the Department of Public Health.

 

 

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1    (e) "Cultivation center" means a facility operated by an
2organization or business that is registered by the Department
3of Agriculture to perform necessary activities to provide only
4registered medical cannabis dispensing organizations with
5usable medical cannabis.
6    (f) "Cultivation center agent" means a principal officer,
7board member, employee, or agent of a registered cultivation
8center who is 21 years of age or older and has not been
9convicted of an excluded offense.
10    (g) "Cultivation center agent identification card" means a
11document issued by the Department of Agriculture that
12identifies a person as a cultivation center agent.
13    (h) (Blank). "Debilitating medical condition" means one or
14more of the following:
15        (1) cancer, glaucoma, positive status for human
16    immunodeficiency virus, acquired immune deficiency
17    syndrome, hepatitis C, amyotrophic lateral sclerosis,
18    Crohn's disease, agitation of Alzheimer's disease,
19    cachexia/wasting syndrome, muscular dystrophy, severe
20    fibromyalgia, spinal cord disease, including but not
21    limited to arachnoiditis, Tarlov cysts, hydromyelia,
22    syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
23    spinal cord injury, traumatic brain injury and
24    post-concussion syndrome, Multiple Sclerosis,
25    Arnold-Chiari malformation and Syringomyelia,
26    Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,

 

 

HB0902- 173 -LRB101 08006 RLC 53065 b

1    Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
2    (Complex Regional Pain Syndromes Type I), Causalgia, CRPS
3    (Complex Regional Pain Syndromes Type II),
4    Neurofibromatosis, Chronic Inflammatory Demyelinating
5    Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
6    Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
7    syndrome, residual limb pain, seizures (including those
8    characteristic of epilepsy), post-traumatic stress
9    disorder (PTSD), or the treatment of these conditions;
10        (1.5) terminal illness with a diagnosis of 6 months or
11    less; if the terminal illness is not one of the qualifying
12    debilitating medical conditions, then the physician shall
13    on the certification form identify the cause of the
14    terminal illness; or
15        (2) any other debilitating medical condition or its
16    treatment that is added by the Department of Public Health
17    by rule as provided in Section 45.
18    (i) "Designated caregiver" means a person who: (1) is at
19least 21 years of age; (2) has agreed to assist with a
20patient's medical use of cannabis; (3) has not been convicted
21of an excluded offense; and (4) assists no more than one
22registered qualifying patient with his or her medical use of
23cannabis.
24    (j) "Dispensing organization agent identification card"
25means a document issued by the Department of Financial and
26Professional Regulation that identifies a person as a medical

 

 

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1cannabis dispensing organization agent.
2    (k) "Enclosed, locked facility" means a room, greenhouse,
3building, or other enclosed area equipped with locks or other
4security devices that permit access only by a cultivation
5center's agents or a dispensing organization's agent working
6for the registered cultivation center or the registered
7dispensing organization to cultivate, store, and distribute
8cannabis for registered qualifying patients.
9    (l) "Excluded offense" for cultivation center agents and
10dispensing organizations means:
11        (1) a violent crime defined in Section 3 of the Rights
12    of Crime Victims and Witnesses Act or a substantially
13    similar offense that was classified as a felony in the
14    jurisdiction where the person was convicted; or
15        (2) a violation of a state or federal controlled
16    substance law, the Cannabis Control Act, or the
17    Methamphetamine Control and Community Protection Act that
18    was classified as a felony in the jurisdiction where the
19    person was convicted, except that the registering
20    Department may waive this restriction if the person
21    demonstrates to the registering Department's satisfaction
22    that his or her conviction was for the possession,
23    cultivation, transfer, or delivery of a reasonable amount
24    of cannabis intended for medical use. This exception does
25    not apply if the conviction was under state law and
26    involved a violation of an existing medical cannabis law.

 

 

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1    For purposes of this subsection, the Department of Public
2Health shall determine by emergency rule within 30 days after
3the effective date of this amendatory Act of the 99th General
4Assembly what constitutes a "reasonable amount".
5    (l-5) (Blank).
6    (l-10) "Illinois Cannabis Tracking System" means a
7web-based system established and maintained by the Department
8of Public Health that is available to the Department of
9Agriculture, the Department of Financial and Professional
10Regulation, the Illinois State Police, and registered medical
11cannabis dispensing organizations on a 24-hour basis to upload
12written certifications for Opioid Alternative Pilot Program
13participants, to verify Opioid Alternative Pilot Program
14participants, to verify Opioid Alternative Pilot Program
15participants' available cannabis allotment and assigned
16dispensary, and the tracking of the date of sale, amount, and
17price of medical cannabis purchased by an Opioid Alternative
18Pilot Program participant.
19    (m) "Medical cannabis cultivation center registration"
20means a registration issued by the Department of Agriculture.
21    (n) "Medical cannabis container" means a sealed,
22traceable, food compliant, tamper resistant, tamper evident
23container, or package used for the purpose of containment of
24medical cannabis from a cultivation center to a dispensing
25organization.
26    (o) "Medical cannabis dispensing organization", or

 

 

HB0902- 176 -LRB101 08006 RLC 53065 b

1"dispensing organization", or "dispensary organization" means
2a facility operated by an organization or business that is
3registered by the Department of Financial and Professional
4Regulation to acquire medical cannabis from a registered
5cultivation center for the purpose of dispensing cannabis,
6paraphernalia, or related supplies and educational materials
7to registered qualifying patients, individuals with a
8provisional registration for qualifying patient cardholder
9status, or an Opioid Alternative Pilot Program participant.
10    (p) "Medical cannabis dispensing organization agent" or
11"dispensing organization agent" means a principal officer,
12board member, employee, or agent of a registered medical
13cannabis dispensing organization who is 21 years of age or
14older and has not been convicted of an excluded offense.
15    (q) "Medical cannabis infused product" means food, oils,
16ointments, or other products containing usable cannabis that
17are not smoked.
18    (r) "Medical use" means the acquisition; administration;
19delivery; possession; transfer; transportation; or use of
20cannabis to treat or alleviate a registered qualifying
21patient's debilitating medical condition or symptoms
22associated with the patient's debilitating medical condition.
23    (r-5) "Opioid" means a narcotic drug or substance that is a
24Schedule II controlled substance under paragraph (1), (2), (3),
25or (5) of subsection (b) or under subsection (c) of Section 206
26of the Illinois Controlled Substances Act.

 

 

HB0902- 177 -LRB101 08006 RLC 53065 b

1    (r-10) "Opioid Alternative Pilot Program participant"
2means an individual who has received a valid written
3certification to participate in the Opioid Alternative Pilot
4Program for a medical condition for which an opioid has been or
5could be prescribed by a physician based on generally accepted
6standards of care.
7    (s) "Physician" means a doctor of medicine or doctor of
8osteopathy licensed under the Medical Practice Act of 1987 to
9practice medicine and who has a controlled substances license
10under Article III of the Illinois Controlled Substances Act. It
11does not include a licensed practitioner under any other Act
12including but not limited to the Illinois Dental Practice Act.
13    (s-5) "Provisional registration" means a document issued
14by the Department of Public Health to a qualifying patient who
15has submitted: (1) an online application and paid a fee to
16participate in Compassionate Use of Medical Cannabis Pilot
17Program pending approval or denial of the patient's
18application; or (2) a completed application for terminal
19illness.
20    (t) "Qualifying patient" means a person who has been
21diagnosed by a physician with a condition that the physician
22believes would benefit from the use of medical cannabis as
23having a debilitating medical condition.
24    (u) "Registered" means licensed, permitted, or otherwise
25certified by the Department of Agriculture, Department of
26Public Health, or Department of Financial and Professional

 

 

HB0902- 178 -LRB101 08006 RLC 53065 b

1Regulation.
2    (v) "Registry identification card" means a document issued
3by the Department of Public Health that identifies a person as
4a registered qualifying patient or registered designated
5caregiver.
6    (w) "Usable cannabis" means the seeds, leaves, buds, and
7flowers of the cannabis plant and any mixture or preparation
8thereof, but does not include the stalks, and roots of the
9plant. It does not include the weight of any non-cannabis
10ingredients combined with cannabis, such as ingredients added
11to prepare a topical administration, food, or drink.
12    (x) "Verification system" means a Web-based system
13established and maintained by the Department of Public Health
14that is available to the Department of Agriculture, the
15Department of Financial and Professional Regulation, law
16enforcement personnel, and registered medical cannabis
17dispensing organization agents on a 24-hour basis for the
18verification of registry identification cards, the tracking of
19delivery of medical cannabis to medical cannabis dispensing
20organizations, and the tracking of the date of sale, amount,
21and price of medical cannabis purchased by a registered
22qualifying patient.
23    (y) "Written certification" means a document dated and
24signed by a physician, stating (1) that the qualifying patient
25has a debilitating medical condition and specifying the
26debilitating medical condition the qualifying patient has; and

 

 

HB0902- 179 -LRB101 08006 RLC 53065 b

1(2) that (A) the physician is treating or managing treatment of
2the patient's debilitating medical condition; or (B) an Opioid
3Alternative Pilot Program participant has a medical condition
4for which opioids have been or could be prescribed. A written
5certification shall be made only in the course of a bona fide
6physician-patient relationship, after the physician has
7completed an assessment of either a qualifying patient's
8medical history or Opioid Alternative Pilot Program
9participant, reviewed relevant records related to the
10patient's debilitating condition, and conducted a physical
11examination.
12    (z) "Bona fide physician-patient relationship" means a
13relationship established at a hospital, physician's office, or
14other health care facility in which the physician has an
15ongoing responsibility for the assessment, care, and treatment
16of a patient's debilitating medical condition or a symptom of
17the patient's debilitating medical condition.
18    A veteran who has received treatment at a VA hospital shall
19be deemed to have a bona fide physician-patient relationship
20with a VA physician if the patient has been seen for his or her
21debilitating medical condition at the VA Hospital in accordance
22with VA Hospital protocols.
23    A bona fide physician-patient relationship under this
24subsection is a privileged communication within the meaning of
25Section 8-802 of the Code of Civil Procedure.
26(Source: P.A. 99-519, eff. 6-30-16; 100-1114, eff. 8-28-18.)
 

 

 

HB0902- 180 -LRB101 08006 RLC 53065 b

1    (410 ILCS 130/220 rep.)
2    Section 930. The Compassionate Use of Medical Cannabis
3Pilot Program Act is amended by repealing Section 220.
 
4    Section 935. The Cannabis Control Act is amended by
5changing Sections 4, 5, 7, 8, 9, 10, 12, and 16.2 and adding
6Sections 3.5 and 4.1 as follows:
 
7    (720 ILCS 550/3.5 new)
8    Sec. 3.5. Applicability of Act. The possession,
9cultivation, harvest, display, distribution, packaging,
10processing, purchase, transportation, transfer, delivery,
11sale, storage, and consumption of cannabis as provided for in
12the Cannabis Legalization Equity Act is not a violation of this
13Act.
 
14    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
15    Sec. 4. It is unlawful for any person knowingly to possess
16225 or more grams of cannabis outside the premises where the
17cannabis was cultivated or an amount that exceeds the amount
18that can reasonably be harvested from 24 mature cannabis sativa
19plants. Any person regardless of age who violates this Section
20section with respect to:
21        (a) 225 not more than 10 grams or more of any substance
22    containing cannabis is guilty of a civil law violation

 

 

HB0902- 181 -LRB101 08006 RLC 53065 b

1    punishable by a minimum fine of $100 and a maximum fine of
2    $200. The proceeds of the fine shall be payable to the
3    clerk of the circuit court. Within 30 days after the
4    deposit of the fine, the clerk shall distribute the
5    proceeds of the fine as follows:
6            (1) $10 of the fine to the circuit clerk and $10 of
7        the fine to the law enforcement agency that issued the
8        citation; the proceeds of each $10 fine distributed to
9        the circuit clerk and each $10 fine distributed to the
10        law enforcement agency that issued the citation for the
11        violation shall be used to defer the cost of automatic
12        expungements under paragraph (2.5) of subsection (a)
13        of Section 5.2 of the Criminal Identification Act;
14            (2) $15 to the county to fund drug addiction
15        services;
16            (3) $10 to the Office of the State's Attorneys
17        Appellate Prosecutor for use in training programs;
18            (4) $10 to the State's Attorney; and
19            (5) any remainder of the fine to the law
20        enforcement agency that issued the citation for the
21        violation.
22        With respect to funds designated for the Department of
23    State Police, the moneys shall be remitted by the circuit
24    court clerk to the Department of State Police within one
25    month after receipt for deposit into the State Police
26    Operations Assistance Fund. With respect to funds

 

 

HB0902- 182 -LRB101 08006 RLC 53065 b

1    designated for the Department of Natural Resources, the
2    Department of Natural Resources shall deposit the moneys
3    into the Conservation Police Operations Assistance Fund;
4        (b) (blank); more than 10 grams but not more than 30
5    grams of any substance containing cannabis is guilty of a
6    Class B misdemeanor;
7        (c) (blank); more than 30 grams but not more than 100
8    grams of any substance containing cannabis is guilty of a
9    Class A misdemeanor; provided, that if any offense under
10    this subsection (c) is a subsequent offense, the offender
11    shall be guilty of a Class 4 felony;
12        (d) (blank); more than 100 grams but not more than 500
13    grams of any substance containing cannabis is guilty of a
14    Class 4 felony; provided that if any offense under this
15    subsection (d) is a subsequent offense, the offender shall
16    be guilty of a Class 3 felony;
17        (e) (blank); more than 500 grams but not more than
18    2,000 grams of any substance containing cannabis is guilty
19    of a Class 3 felony;
20        (f) (blank); more than 2,000 grams but not more than
21    5,000 grams of any substance containing cannabis is guilty
22    of a Class 2 felony;
23        (g) (blank). more than 5,000 grams of any substance
24    containing cannabis is guilty of a Class 1 felony.
25(Source: P.A. 99-697, eff. 7-29-16.)
 

 

 

HB0902- 183 -LRB101 08006 RLC 53065 b

1    (720 ILCS 550/4.1 new)
2    Sec. 4.1. Persons under 21 years of age. A person under 21
3years of age in possession of 100 grams or less of cannabis is
4guilty of a civil law violation charged by a Uniform Civil Law
5Citation and punishable by forfeiture of the cannabis and
6completion not to exceed 4 hours of instruction in a drug
7awareness program. The parents or legal guardian of any
8offender under the age of 18 shall be notified of the offense
9and of available drug awareness programs, which shall be
10established by the Department of Public Health. The Department
11of Public Health shall set fees for the program sufficient to
12cover all costs of administering the program, which shall not
13exceed $300. If an offender fails within one year of the notice
14of the offense and available programs to complete a drug
15awareness program, the person is guilty of a civil law
16violation and shall pay a fine not to exceed $300 or shall
17complete up to 40 hours of community service, or both.
 
18    (720 ILCS 550/5)  (from Ch. 56 1/2, par. 705)
19    Sec. 5. It is unlawful for any person knowingly to
20manufacture, deliver, or possess with intent to deliver, or
21manufacture, cannabis, except as authorized under the Cannabis
22Legalization Equity Act. Any person who violates this Section
23section with respect to:
24    (a) not more than 2.5 grams of any substance containing
25cannabis is guilty of a Class B misdemeanor;

 

 

HB0902- 184 -LRB101 08006 RLC 53065 b

1    (b) more than 2.5 grams but not more than 10 grams of any
2substance containing cannabis is guilty of a Class A
3misdemeanor;
4    (c) more than 10 grams but not more than 30 grams of any
5substance containing cannabis is guilty of a Class 4 felony;
6    (d) more than 30 grams but not more than 500 grams of any
7substance containing cannabis is guilty of a Class 3 felony for
8which a fine not to exceed $50,000 may be imposed;
9    (e) more than 500 grams but not more than 2,000 grams of
10any substance containing cannabis is guilty of a Class 2 felony
11for which a fine not to exceed $100,000 may be imposed;
12    (f) more than 2,000 grams but not more than 5,000 grams of
13any substance containing cannabis is guilty of a Class 1 felony
14for which a fine not to exceed $150,000 may be imposed;
15    (g) more than 5,000 grams of any substance containing
16cannabis is guilty of a Class X felony for which a fine not to
17exceed $200,000 may be imposed.
18(Source: P.A. 90-397, eff. 8-15-97.)
 
19    (720 ILCS 550/7)  (from Ch. 56 1/2, par. 707)
20    Sec. 7. (a) Any person who is at least 18 years of age who
21violates Section 5 of this Act by delivering cannabis to a
22person under 18 years of age who is at least 3 years his junior
23may be sentenced to imprisonment for a term up to twice the
24maximum term otherwise authorized by Section 5.
25    (b) Any person under 18 years of age who violates Section

 

 

HB0902- 185 -LRB101 08006 RLC 53065 b

14, 4.1, or 5 of this Act may be treated by the court in
2accordance with the Juvenile Court Act of 1987.
3(Source: P.A. 85-1209.)
 
4    (720 ILCS 550/8)  (from Ch. 56 1/2, par. 708)
5    Sec. 8. It is unlawful for any person knowingly to produce
625 or more mature the cannabis sativa plants plant or to
7possess 25 or more mature cannabis sativa such plants unless
8production or possession has been authorized under pursuant to
9the provisions of Section 11 or 15.2 of the Act or under the
10Cannabis Legalization Equity Act. Any person who violates this
11Section with respect to production or possession of:
12    (a) (Blank). Not more than 5 plants is guilty of a Class A
13misdemeanor.
14    (b) (Blank). More than 5, but not more than 20 plants, is
15guilty of a Class 4 felony.
16    (c) 25 or more More than 20, but not more than 50 plants,
17is guilty of a civil law violation punishable by a maximum fine
18of $1,000. The proceeds of the fine shall be payable to the
19clerk of the circuit court. Within 30 days after the deposit of
20the fine, the clerk shall distribute the proceeds of the fine
21as follows: Class 3 felony
22        (1) $10 of the fine to the circuit clerk and $10 of the
23    fine to the law enforcement agency that issued the
24    citation; the proceeds of each $10 fine distributed to the
25    circuit clerk and each $10 fine distributed to the law

 

 

HB0902- 186 -LRB101 08006 RLC 53065 b

1    enforcement agency that issued the citation for the
2    violation shall be used to defer the cost of automatic
3    expungements under paragraph (2.5) of subsection (a) of
4    Section 5.2 of the Criminal Identification Act;
5        (2) $15 to the county to fund drug addiction services;
6        (3) $10 to the Office of the State's Attorneys
7    Appellate Prosecutor for use in training programs;
8        (4) $10 to the State's Attorney; and
9        (5) any remainder of the fine to the law enforcement
10    agency that issued the citation for the violation.
11        With respect to funds designated for the Department of
12    State Police, the moneys shall be remitted by the circuit
13    court clerk to the Department of State Police within one
14    month after receipt for deposit into the State Police
15    Operations Assistance Fund. With respect to funds
16    designated for the Department of Natural Resources, the
17    Department of Natural Resources shall deposit the moneys
18    into the Conservation Police Operations Assistance Fund.
19    (d) More than 50, but not more than 200 plants, is guilty
20of a Class A misdemeanor 2 felony for which a fine not to
21exceed $100,000 may be imposed and for which liability for the
22cost of conducting the investigation and eradicating such
23plants may be assessed. Compensation for expenses incurred in
24the enforcement of this provision shall be transmitted to and
25deposited in the treasurer's office at the level of government
26represented by the Illinois law enforcement agency whose

 

 

HB0902- 187 -LRB101 08006 RLC 53065 b

1officers or employees conducted the investigation or caused the
2arrest or arrests leading to the prosecution, to be
3subsequently made available to that law enforcement agency as
4expendable receipts for use in the enforcement of laws
5regulating controlled substances and cannabis. If such seizure
6was made by a combination of law enforcement personnel
7representing different levels of government, the court levying
8the assessment shall determine the allocation of such
9assessment. The proceeds of assessment awarded to the State
10treasury shall be deposited in a special fund known as the Drug
11Traffic Prevention Fund.
12    (e) More than 200 plants is guilty of a Class 4 1 felony
13for which a fine not to exceed $100,000 may be imposed and for
14which liability for the cost of conducting the investigation
15and eradicating such plants may be assessed. Compensation for
16expenses incurred in the enforcement of this provision shall be
17transmitted to and deposited in the treasurer's office at the
18level of government represented by the Illinois law enforcement
19agency whose officers or employees conducted the investigation
20or caused the arrest or arrests leading to the prosecution, to
21be subsequently made available to that law enforcement agency
22as expendable receipts for use in the enforcement of laws
23regulating controlled substances and cannabis. If such seizure
24was made by a combination of law enforcement personnel
25representing different levels of government, the court levying
26the assessment shall determine the allocation of such

 

 

HB0902- 188 -LRB101 08006 RLC 53065 b

1assessment. The proceeds of assessment awarded to the State
2treasury shall be deposited in a special fund known as the Drug
3Traffic Prevention Fund.
4(Source: P.A. 98-1072, eff. 1-1-15.)
 
5    (720 ILCS 550/9)  (from Ch. 56 1/2, par. 709)
6    Sec. 9. (a) Any person who engages in a calculated criminal
7cannabis conspiracy, as defined in subsection (b), is guilty of
8a Class 3 felony, and fined not more than $200,000 and shall be
9subject to the forfeitures prescribed in subsection (c); except
10that, if any person engages in such offense after one or more
11prior convictions under this Section, Section 4 (d), Section 5
12(d) or , Section 8 (d) or any law of the United States or of any
13State relating to cannabis, or controlled substances as defined
14in the Illinois Controlled Substances Act, in addition to the
15fine and forfeiture authorized above, he shall be guilty of a
16Class 1 felony for which an offender may not be sentenced to
17death.
18    (b) For purposes of this section, a person engages in a
19calculated criminal cannabis conspiracy when:
20    (1) he violates Section 4 (d), 4 (e), 5 (d), 5 (e), 8 (c) or
218 (d) of this Act; and
22    (2) such violation is a part of a conspiracy undertaken or
23carried on with 2 or more other persons; and
24    (3) he obtains anything of value greater than $500 from, or
25organizes, directs or finances such violation or conspiracy.

 

 

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1    (c) Any person who is convicted under this Section of
2engaging in a calculated criminal cannabis conspiracy shall
3forfeit to the State of Illinois:
4    (1) the receipts obtained by him in such conspiracy; and
5    (2) any of his interests in, claims against, receipts from,
6or property or rights of any kind affording a source of
7influence over, such conspiracy.
8    (d) The circuit court may enter such injunctions,
9restraining orders, directions, or prohibitions, or take such
10other actions, including the acceptance of satisfactory
11performance bonds, in connection with any property, claim,
12receipt, right or other interest subject to forfeiture under
13this Section, as it deems proper.
14(Source: P.A. 84-1233.)
 
15    (720 ILCS 550/10)  (from Ch. 56 1/2, par. 710)
16    Sec. 10. (a) Whenever any person who has not previously
17been convicted of any felony offense under this Act or any law
18of the United States or of any State relating to cannabis, or
19controlled substances as defined in the Illinois Controlled
20Substances Act, pleads guilty to or is found guilty of
21violating Sections 4(a), 4(b), 4(c), 5(a), 5(b), 5(c) or 8 of
22this Act, the court may, without entering a judgment and with
23the consent of such person, sentence him to probation.
24    (b) When a person is placed on probation, the court shall
25enter an order specifying a period of probation of 24 months,

 

 

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1and shall defer further proceedings in the case until the
2conclusion of the period or until the filing of a petition
3alleging violation of a term or condition of probation.
4    (c) The conditions of probation shall be that the person:
5(1) not violate any criminal statute of any jurisdiction; (2)
6refrain from possession of a firearm or other dangerous weapon;
7(3) submit to periodic drug testing at a time and in a manner
8as ordered by the court, but no less than 3 times during the
9period of the probation, with the cost of the testing to be
10paid by the probationer; and (4) perform no less than 30 hours
11of community service, provided community service is available
12in the jurisdiction and is funded and approved by the county
13board. The court may give credit toward the fulfillment of
14community service hours for participation in activities and
15treatment as determined by court services.
16    (d) The court may, in addition to other conditions, require
17that the person:
18        (1) make a report to and appear in person before or
19    participate with the court or such courts, person, or
20    social service agency as directed by the court in the order
21    of probation;
22        (2) pay a fine and costs;
23        (3) work or pursue a course of study or vocational
24    training;
25        (4) undergo medical or psychiatric treatment; or
26    treatment for drug addiction or alcoholism;

 

 

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1        (5) attend or reside in a facility established for the
2    instruction or residence of defendants on probation;
3        (6) support his dependents;
4        (7) refrain from possessing a firearm or other
5    dangerous weapon;
6        (7-5) refrain from having in his or her body the
7    presence of any illicit drug prohibited by the Cannabis
8    Control Act, the Illinois Controlled Substances Act, or the
9    Methamphetamine Control and Community Protection Act,
10    unless prescribed by a physician, and submit samples of his
11    or her blood or urine or both for tests to determine the
12    presence of any illicit drug;
13