Rep. Gary Hannig

Filed: 4/5/2005

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2706

2     AMENDMENT NO. ______. Amend House Bill 2706 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Lottery Law is amended by changing
5 Sections 3, 4, 5, 7.1, 7.2, 7.6, 7.11, 9, 10, 10.1, 10.1a,
6 10.2, 10.6, 10.7, 12, 13, 14, 14.3, 15, 19, 21, and 24 as
7 follows:
 
8     (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
9     Sec. 3. For the purposes of this Act:
10     a. "Lottery" or "State Lottery" means the lottery or
11 lotteries established and operated pursuant to this Act.
12     b. "Board" means the Lottery Control Board created by this
13 Act.
14     c. "Department" means the Department of Revenue the
15 Lottery.
16     d. "Director" means the Director of Revenue the Department
17 of the Lottery.
18     e. "Chairman" means the Chairman of the Lottery Control
19 Board.
20     f. "Multi-state game directors" means such persons,
21 including the Superintendent Director of the Department of the
22 Lottery, as may be designated by an agreement between the
23 Division Department of the Lottery and one or more additional
24 lotteries operated under the laws of another state or states.

 

 

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1     g. "Division" means the Division of the State Lottery of
2 the Department of Revenue.
3     h. "Superintendent" means the Superintendent of the
4 Division of the State Lottery of the Department of Revenue.
5 (Source: P.A. 85-183.)
 
6     (20 ILCS 1605/4)  (from Ch. 120, par. 1154)
7     Sec. 4. The Department of the Lottery is established to
8 implement and regulate the State Lottery in the manner provided
9 in this Act.
10     In accordance with Executive Order No. 9 (2003), the
11 Division of the State Lottery is established within the
12 Department of Revenue. Unless otherwise provided by law, the
13 Division of the State Lottery shall be subject to and governed
14 by all of the laws and rules applicable to the Department.
15 (Source: P.A. 84-1128.)
 
16     (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
17     Sec. 5. The Division Department of the Lottery shall be
18 under the supervision and direction of a Superintendent
19 Director of the Lottery, who shall be a person qualified by
20 training and experience to perform the duties required by this
21 Act. The Superintendent Director shall be appointed by the
22 Governor, by and with the advice and consent of the Senate. The
23 term of office of the Superintendent Director shall expire on
24 the third Monday of January in odd numbered years provided that
25 he or she shall hold his office until a his successor is
26 appointed and qualified.
27     Any vacancy occurring in the office of the Superintendent
28 Director shall be filled in the same manner as the original
29 appointment.
30     The Superintendent Director shall devote his or her entire
31 time and attention to the duties of the his office and shall
32 not be engaged in any other profession or occupation. The

 

 

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1 Superintendent He shall receive such salary as shall be
2 provided by law.
3 (Source: P.A. 84-1128.)
 
4     (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
5     Sec. 7.1. The Department shall promulgate such rules and
6 regulations governing the establishment and operation of a
7 State lottery as it deems necessary to carry out the purposes
8 of this Act. Such rules and regulations shall be subject to the
9 provisions of The Illinois Administrative Procedure Act. The
10 Division shall issue written game rules, play instructions,
11 directives, operations manuals, brochures, or any other
12 publications necessary to conduct specific games, as
13 authorized by rule by the Department. Any written game rules,
14 play instructions, directives, operations manuals, brochures,
15 or other game publications issued by the Division Department
16 that relate to a specific lottery game shall be maintained as a
17 public record in the Division's Department's principal office,
18 and made available for public inspection and copying but shall
19 be exempt from the rulemaking procedures of the Illinois
20 Administrative Procedure Act. However, when such written
21 materials contain any policy of general applicability, the
22 Division Department shall formulate and adopt such policy as a
23 rule in accordance with the provisions of the Illinois
24 Administrative Procedure Act. In addition, the Division
25 Department shall publish each January in the Illinois Register
26 a list of all game-specific rules, play instructions,
27 directives, operations manuals, brochures, or other
28 game-specific publications issued by the Division Department
29 during the previous year and instructions concerning how the
30 public may obtain copies of these materials from the Division
31 Department.
32 (Source: P.A. 86-433.)
 

 

 

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1     (20 ILCS 1605/7.2)  (from Ch. 120, par. 1157.2)
2     Sec. 7.2. The rules and regulations of the Department may
3 include, but shall not be limited to, the following:
4     (1) The types of lotteries to be conducted;
5     (2) The price, or prices, of tickets or shares in the
6 lottery;
7     (3) The numbers and sizes of the prizes on the winning
8 tickets or shares;
9     (4) The manner of selecting the winning tickets or shares;
10     (5) The manner of payment of prizes to the holders of
11 winning tickets or shares;
12     (6) The frequency of the drawing or selections of winning
13 tickets or shares, without limitation;
14     (7) Without limit to number, the type or types of locations
15 at which tickets or shares may be sold;
16     (8) The method to be used in selling tickets or shares;
17     (9) The manner and amount of compensation, if any, to be
18 paid licensed sales agents necessary to provide for the
19 adequate availability of tickets or shares to prospective
20 buyers and for the convenience of the public;
21     (10) The apportionment of the total revenues accruing from
22 the sale of lottery tickets or shares and from all other
23 sources among (i) the payment of prizes to the holders of
24 winning tickets or shares, (ii) the payment of costs incurred
25 in the operation and administration of the lottery, including
26 the expenses of the Department and the costs resulting from any
27 contract or contracts entered into for promotional,
28 advertising or operational services or for the purchase or
29 lease of lottery equipment and materials, and (iii) for monthly
30 transfers to the Common School Fund. The net revenues accruing
31 from the sale of lottery tickets shall be determined by
32 deducting from total revenues the payments required by
33 paragraphs (i) and (ii) of this subsection.
34     (11) Such other matters necessary or desirable for the

 

 

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1 efficient and economical operation and administration of the
2 lottery and for the convenience of the purchasers of tickets or
3 shares and the holders of winning tickets or shares.
4     Any rules and regulations of the Department with respect to
5 monthly transfers to the Common School Fund are subject to
6 Section 21.2.
7 (Source: P.A. 84-1128.)
 
8     (20 ILCS 1605/7.6)  (from Ch. 120, par. 1157.6)
9     Sec. 7.6. The Board shall advise and make recommendations
10 to the Superintendent or the Director regarding the functions
11 and operations of the State Lottery. A copy of all such
12 recommendations shall also be forwarded to the Governor, the
13 Attorney General, the Speaker of the House, the President of
14 the Senate and the minority leaders of both houses.
15 (Source: P.A. 84-1128.)
 
16     (20 ILCS 1605/7.11)  (from Ch. 120, par. 1157.11)
17     Sec. 7.11. The Division Department may establish and
18 collect nominal charges for promotional products ("premiums")
19 and other promotional materials produced or acquired by the
20 Division Department as part of its advertising and promotion
21 activities. Such premiums or other promotional materials may be
22 sold to individuals, government agencies and not-for-profit
23 organizations, but not to for-profit enterprises for the
24 purpose of resale. Other State agencies shall be charged no
25 more than the cost to the Division Department of the premium or
26 promotional material. All proceeds from the sale of premiums or
27 promotional materials shall be deposited in the State Lottery
28 Fund in the State Treasury.
29 (Source: P.A. 86-1220.)
 
30     (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
31     Sec. 9. The Superintendent Director, as administrative

 

 

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1 head of the Division Department of the Lottery, shall direct
2 and supervise all its administrative and technical activities
3 and shall report to the Director. In addition to the duties
4 imposed upon him elsewhere in this Act, it shall be the
5 Superintendent's his duty:
6     a. To supervise and administer the operation of the lottery
7 in accordance with the provisions of this Act or such rules and
8 regulations of the Department adopted thereunder.
9     b. To attend meetings of the Board Department or to appoint
10 a designee to attend in his stead.
11     c. To employ and direct such personnel in accord with the
12 Personnel Code, as may be necessary to carry out the purposes
13 of this Act. The Superintendent may, subject to the approval of
14 the Director, use the services, personnel, or facilities of the
15 Department. In addition, the Superintendent Director may by
16 agreement secure such services as he or she may deem necessary
17 from any other department, agency, or unit of the State
18 government, and may employ and compensate such consultants and
19 technical assistants as may be required and is otherwise
20 permitted by law.
21     d. To license, in accordance with the provisions of
22 Sections 10 and 10.1 of this Act and the rules and regulations
23 of the Department adopted thereunder, as agents to sell lottery
24 tickets such persons as in his opinion will best serve the
25 public convenience and promote the sale of tickets or shares.
26 The Superintendent Director may require a bond from every
27 licensed agent, in such amount as provided in the rules and
28 regulations of the Department. Every licensed agent shall
29 prominently display his license, or a copy thereof, as provided
30 in the rules and regulations of the Department.
31     e. To suspend or revoke any license issued pursuant to this
32 Act or the rules and regulations promulgated by the Department
33 thereunder.
34     f. To confer regularly as necessary or desirable and not

 

 

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1 less than once every month with the Lottery Control Board on
2 the operation and administration of the Lottery; to make
3 available for inspection by the Board or any member of the
4 Board, upon request, all books, records, files, and other
5 information and documents of his office; to advise the Board
6 and recommend such rules and regulations and such other matters
7 as he deems necessary and advisable to improve the operation
8 and administration of the lottery.
9     g. To enter into contracts for the operation of the
10 lottery, or any part thereof, and into contracts for the
11 promotion of the lottery on behalf of the Department with any
12 person, firm or corporation, to perform any of the functions
13 provided for in this Act or the rules and regulations
14 promulgated thereunder. The Department shall not expend State
15 funds on a contractual basis for such functions unless those
16 functions and expenditures are expressly authorized by the
17 General Assembly.
18     h. To enter into an agreement or agreements with the
19 management of state lotteries operated pursuant to the laws of
20 other states for the purpose of creating and operating a
21 multi-state lottery game wherein a separate and distinct prize
22 pool would be combined to award larger prizes to the public
23 than could be offered by the several state lotteries,
24 individually. No tickets or shares offered in connection with a
25 multi-state lottery game shall be sold within the State of
26 Illinois, except those offered by and through the Department.
27 No such agreement shall purport to pledge the full faith and
28 credit of the State of Illinois, nor shall the Department
29 expend State funds on a contractual basis in connection with
30 any such game unless such expenditures are expressly authorized
31 by the General Assembly, provided, however, that in the event
32 of error or omission by the Illinois State Lottery in the
33 conduct of the game, as determined by the multi-state game
34 directors, the Department shall be authorized to pay a prize

 

 

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1 winner or winners the lesser of a disputed prize or $1,000,000,
2 any such payment to be made solely from funds appropriated for
3 game prize purposes. The Department shall be authorized to
4 share in the ordinary operating expenses of any such
5 multi-state lottery game, from funds appropriated by the
6 General Assembly, and in the event the multi-state game control
7 offices are physically located within the State of Illinois,
8 the Department is authorized to advance start-up operating
9 costs not to exceed $150,000, subject to proportionate
10 reimbursement of such costs by the other participating state
11 lotteries. The Department shall be authorized to share
12 proportionately in the costs of establishing a liability
13 reserve fund from funds appropriated by the General Assembly.
14 The Department is authorized to transfer prize award funds
15 attributable to Illinois sales of multi-state lottery game
16 tickets to the multi-state control office, or its designated
17 depository, for deposit to such game pool account or accounts
18 as may be established by the multi-state game directors, the
19 records of which account or accounts shall be available at all
20 times for inspection in an audit by the Auditor General of
21 Illinois and any other auditors pursuant to the laws of the
22 State of Illinois. No multi-state game prize awarded to a
23 nonresident of Illinois, with respect to a ticket or share
24 purchased in a state other than the State of Illinois, shall be
25 deemed to be a prize awarded under this Act for the purpose of
26 taxation under the Illinois Income Tax Act. All of the net
27 revenues accruing from the sale of multi-state lottery tickets
28 or shares shall be transferred into the Common School Fund
29 pursuant to Section 7.2. The Department shall promulgate such
30 rules as may be appropriate to implement the provisions of this
31 Section.
32     i. To make a continuous study and investigation of (1) the
33 operation and the administration of similar laws which may be
34 in effect in other states or countries, (2) any literature on

 

 

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1 the subject which from time to time may be published or
2 available, (3) any Federal laws which may affect the operation
3 of the lottery, and (4) the reaction of Illinois citizens to
4 existing and potential features of the lottery with a view to
5 recommending or effecting changes that will tend to serve the
6 purposes of this Act.
7     j. To report monthly to the State Treasurer and the Lottery
8 Control Board a full and complete statement of lottery
9 revenues, prize disbursements and other expenses for each month
10 and the amounts to be transferred to the Common School Fund
11 pursuant to Section 7.2 or such other funds as are otherwise
12 authorized by Section 21.2 of this Act, and to make an annual
13 report, which shall include a full and complete statement of
14 lottery revenues, prize disbursements and other expenses, to
15 the Governor and the Board. All reports required by this
16 subsection shall be public and copies of all such reports shall
17 be sent to the Speaker of the House, the President of the
18 Senate, and the minority leaders of both houses.
19 (Source: P.A. 85-183.)
 
20     (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
21     Sec. 10. The Division Department, upon application
22 therefor on forms prescribed by the Division Department, and
23 upon a determination by the Division Department that the
24 applicant meets all of the qualifications specified in this
25 Act, shall issue a license as an agent to sell lottery tickets
26 or shares. No license as an agent to sell lottery tickets or
27 shares shall be issued to any person to engage in business
28 exclusively as a lottery sales agent.
29     Before issuing such license the Superintendent Director
30 shall consider (a) the financial responsibility and security of
31 the person and his business or activity, (b) the accessibility
32 of his place of business or activity to the public, (c) the
33 sufficiency of existing licenses to serve the public

 

 

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1 convenience, (d) the volume of expected sales, and (e) such
2 other factors as he or she may deem appropriate.
3     Until September 1, 1987, the provisions of Sections 2a, 4,
4 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
5 10, 12 and 13.5 of the Retailers' Occupation Tax Act which are
6 not inconsistent with this Act shall apply to the subject
7 matter of this Act to the same extent as if such provisions
8 were included in this Act. For purposes of this Act, references
9 in such incorporated Sections of the Retailers' Occupation Tax
10 Act to retailers, sellers or persons engaged in the business of
11 selling tangible personal property mean persons engaged in
12 selling lottery tickets or shares; references in such
13 incorporated Sections to sales of tangible personal property
14 mean the selling of lottery tickets or shares; and references
15 in such incorporated Sections to certificates of registration
16 mean licenses issued under this Act. The provisions of the
17 Retailers' Occupation Tax Act as heretofore applied to the
18 subject matter of this Act shall not apply with respect to
19 tickets sold by or delivered to lottery sales agents on and
20 after September 1, 1987, but such provisions shall continue to
21 apply with respect to transactions involving the sale and
22 delivery of tickets prior to September 1, 1987.
23     All licenses issued by the Division Department under this
24 Act shall be valid for a period not to exceed 2 years after
25 issuance unless sooner revoked, canceled or suspended as in
26 this Act provided. No license issued under this Act shall be
27 transferable or assignable. Such license shall be
28 conspicuously displayed in the place of business conducted by
29 the licensee in Illinois where lottery tickets or shares are to
30 be sold under such license.
31     For purposes of this Section, the term "person" shall be
32 construed to mean and include an individual, association,
33 partnership, corporation, club, trust, estate, society,
34 company, joint stock company, receiver, trustee, referee, any

 

 

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1 other person acting in a fiduciary or representative capacity
2 who is appointed by a court, or any combination of individuals.
3 "Person" includes any department, commission, agency or
4 instrumentality of the State, including any county, city,
5 village, or township and any agency or instrumentality thereof.
6 (Source: P.A. 86-1475; 87-895.)
 
7     (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
8     Sec. 10.1. The following are ineligible for any license
9 under this Act:
10     (a) any person who has been convicted of a felony;
11     (b) any person who is or has been a professional gambler or
12 gambling promoter;
13     (c) any person who has engaged in bookmaking or other forms
14 of illegal gambling;
15     (d) any person who is not of good character and reputation
16 in the community in which he resides;
17     (e) any person who has been found guilty of any fraud or
18 misrepresentation in any connection;
19     (f) any firm or corporation in which a person defined in
20 (a), (b), (c), (d) or (e) has a proprietary, equitable or
21 credit interest of 5% or more.
22     (g) any organization in which a person defined in (a), (b),
23 (c), (d) or (e) is an officer, director, or managing agent,
24 whether compensated or not;
25     (h) any organization in which a person defined in (a), (b),
26 (c), (d), or (e) is to participate in the management or sales
27 of lottery tickets or shares.
28     However, with respect to persons defined in (a), the
29 Department may grant any such person a license under this Act
30 when:
31     1) at least 10 years have elapsed since the date when the
32 sentence for the most recent such conviction was satisfactorily
33 completed;

 

 

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1     2) the applicant has no history of criminal activity
2 subsequent to such conviction;
3     3) the applicant has complied with all conditions of
4 probation, conditional discharge, supervision, parole or
5 mandatory supervised release; and
6     4) the applicant presents at least 3 letters of
7 recommendation from responsible citizens in his community who
8 personally can attest that the character and attitude of the
9 applicant indicate that he is unlikely to commit another crime.
10     The Division Department may revoke, without notice or a
11 hearing, the license of any agent who violates this Act or any
12 rule or regulation promulgated pursuant to this Act. However,
13 if the Division Department does revoke a license without notice
14 and an opportunity for a hearing, the Division Department
15 shall, by appropriate notice, afford the person whose license
16 has been revoked an opportunity for a hearing within 30 days
17 after the revocation order has been issued. As a result of any
18 such hearing, the Division Department may confirm its action in
19 revoking the license, or it may order the restoration of such
20 license.
21 (Source: P.A. 82-404.)
 
22     (20 ILCS 1605/10.1a)  (from Ch. 120, par. 1160.1a)
23     Sec. 10.1a. In addition to other grounds specified in this
24 Act, the Division Department shall refuse to issue and shall
25 suspend the license of any lottery sales agency who fails to
26 file a return, or to pay the tax, penalty or interest shown in
27 a filed return, or to pay any final assessment of tax, penalty
28 or interest, as required by any tax Act administered by the
29 Illinois Department of Revenue, until such time as the
30 requirements of any such tax Act are satisfied, unless the
31 agency is contesting, in accordance with the procedures
32 established by the appropriate revenue Act, its liability for
33 the tax or the amount of tax. The Division Department shall

 

 

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1 affirmatively verify the tax status of every sales agency
2 before issuing or renewing a license. For purposes of this
3 Section, a sales agency shall not be considered delinquent in
4 the payment of a tax if the agency (a) has entered into an
5 agreement with the Department of Revenue for the payment of all
6 such taxes that are due and (b) is in compliance with the
7 agreement.
8 (Source: P.A. 87-341.)
 
9     (20 ILCS 1605/10.2)  (from Ch. 120, par. 1160.2)
10     Sec. 10.2. Application and other fees. Each application
11 for a new lottery license must be accompanied by a one-time
12 application fee of $50; the Division Department, however, may
13 waive the fee for licenses of limited duration as provided by
14 Department rule. Each application for renewal of a lottery
15 license must be accompanied by a renewal fee of $25. Each
16 lottery licensee granted on-line status pursuant to the
17 Department's rules must pay a fee of $10 per week as partial
18 reimbursement for telecommunications charges incurred by the
19 Department in providing access to the lottery's on-line gaming
20 system. The Department, by rule, may increase or decrease the
21 amount of these fees.
22 (Source: P.A. 93-840, eff. 7-30-04.)
 
23     (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
24     Sec. 10.6. The Division Department shall make an effort to
25 more directly inform players of the odds of winning prizes.
26 This effort shall include, at a minimum, that the Division
27 Department require all ticket agents to display a placard
28 stating the odds of winning for each game offered by that
29 agent.
30 (Source: P.A. 85-183.)
 
31     (20 ILCS 1605/10.7)

 

 

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1     Sec. 10.7. Compulsive gambling.
2     (a) Each lottery sales agent shall post a statement
3 regarding obtaining assistance with gambling problems and
4 including a toll-free "800" telephone number providing crisis
5 counseling and referral services to families experiencing
6 difficulty as a result of problem or compulsive gambling. The
7 text of the statement shall be determined by rule by the
8 Department of Human Services, shall be no more than one
9 sentence in length, and shall be posted on the placard required
10 under Section 10.6. The signs shall be provided by the
11 Department of Human Services.
12     (b) The Division Department shall print a statement
13 regarding obtaining assistance with gambling problems, the
14 text of which shall be determined by rule by the Department of
15 Human Services, on all paper stock it provides to the general
16 public.
17     (c) The Division Department shall print a statement of no
18 more than one sentence in length regarding obtaining assistance
19 with gambling problems and including a toll-free "800" number
20 providing crisis counseling and referral services to families
21 experiencing difficulty as a result of problem or compulsive
22 gambling on the back of all lottery tickets.
23 (Source: P.A. 89-374, eff. 1-1-96; 89-507, eff. 7-1-97.)
 
24     (20 ILCS 1605/12)  (from Ch. 120, par. 1162)
25     Sec. 12. The public inspection and copying of the records
26 and data of the Division Department and the Board shall be
27 generally governed by the provisions of the Freedom of
28 Information Act except that the following shall additionally be
29 exempt from inspection and copying:
30     (i) information privileged against introduction in
31 judicial proceedings;
32     (ii) internal communications of the several agencies;
33     (iii) information concerning secret manufacturing

 

 

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1 processes or confidential data submitted by any person under
2 this Act;
3     (iv) any creative proposals, scripts, storyboards or other
4 materials prepared by or for the Division Department, prior to
5 the placement of the materials in the media, if the prior
6 release of the materials would compromise the effectiveness of
7 an advertising campaign; .
8     (v) results of marketing research that, if disclosed, could
9 give a competitive advantage to forms of gambling other than
10 the State Lottery.
11 (Source: P.A. 88-522.)
 
12     (20 ILCS 1605/13)  (from Ch. 120, par. 1163)
13     Sec. 13. Except as otherwise provided in Section 13.1, no
14 prize, nor any portion of a prize, nor any right of any person
15 to a prize awarded shall be assignable. Any prize, or portion
16 thereof remaining unpaid at the death of a prize winner, may be
17 paid to the estate of such deceased prize winner, or to the
18 trustee under a revocable living trust established by the
19 deceased prize winner as settlor, provided that a copy of such
20 a trust has been filed with the Department along with a
21 notarized letter of direction from the settlor and no written
22 notice of revocation has been received by the Division
23 Department prior to the settlor's death. Following such a
24 settlor's death and prior to any payment to such a successor
25 trustee, the Superintendent Director shall obtain from the
26 trustee and each trust beneficiary a written agreement to
27 indemnify and hold the Department and the Division harmless
28 with respect to any claims that may be asserted against the
29 Department or the Division arising from payment to or through
30 the trust. Notwithstanding any other provision of this Section,
31 any person pursuant to an appropriate judicial order may be
32 paid the prize to which a winner is entitled, and all or part
33 of any prize otherwise payable by State warrant under this

 

 

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1 Section shall be withheld upon certification to the State
2 Comptroller from the Illinois Department of Public Aid as
3 provided in Section 10-17.5 of The Illinois Public Aid Code.
4 The Director and the Superintendent shall be discharged of all
5 further liability upon payment of a prize pursuant to this
6 Section.
7 (Source: P.A. 93-465, eff. 1-1-04.)
 
8     (20 ILCS 1605/14)  (from Ch. 120, par. 1164)
9     Sec. 14. No person shall sell a ticket or share at a price
10 greater than that fixed by rule or regulation of the Department
11 or the Division. No person other than a licensed lottery sales
12 agent or distributor shall sell or resell lottery tickets or
13 shares. No person shall charge a fee to redeem a winning ticket
14 or share.
15     Any person convicted of violating this Section shall be
16 guilty of a Class B misdemeanor; provided, that if any offense
17 under this Section is a subsequent offense, the offender shall
18 be guilty of a Class 4 felony.
19 (Source: P.A. 87-1271.)
 
20     (20 ILCS 1605/14.3)
21     Sec. 14.3. Misuse of proprietary material prohibited.
22 Except as may be provided in Section 7.11, or by bona fide sale
23 or by prior authorization from the Department or the Division,
24 or otherwise by law, all premiums, promotional and other
25 proprietary material produced or acquired by the Division
26 Department as part of its advertising and promotional
27 activities shall remain the property of the Department. Nothing
28 herein shall be construed to affect the rights or obligations
29 of the Department or any other person under federal or State
30 trademark or copyright laws.
31 (Source: P.A. 88-522.)
 

 

 

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1     (20 ILCS 1605/15)  (from Ch. 120, par. 1165)
2     Sec. 15. No minor under 18 years of age shall buy a lottery
3 ticket or share. No person shall sell, distribute samples of,
4 or furnish a lottery ticket or share to any minor under 18
5 years of age, buy a lottery ticket or share for any minor under
6 18 years of age, or aid and abet in the purchase of lottery
7 tickets or shares by a minor under 18 years of age.
8     No ticket or share shall be purchased by, and no prize
9 shall be paid to any of the following persons: any member of
10 the Board or any officer or other person employed by the Board
11 or by the Division; any officer or employee of the Department
12 directly performing services for the Division Department; any
13 spouse, child, brother, sister or parent residing as a member
14 of the same household in the principal place of abode of any
15 such persons; or any minor under 18 years of age.
16     Any violation of this Section by a person other than the
17 purchasing minor shall be a Class B misdemeanor; provided, that
18 if any violation of this Section is a subsequent violation, the
19 offender shall be guilty of a Class 4 felony. Notwithstanding
20 any provision to the contrary, a violation of this Section by a
21 minor under 18 years of age shall be a petty offense.
22 (Source: P.A. 90-346, eff. 8-8-97.)
 
23     (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
24     Sec. 19. The Division Department shall establish an
25 appropriate period for the claiming of prizes for each lottery
26 game offered. Each claim period shall be stated in game rules
27 and written play instructions issued by the Superintendent
28 Director in accordance with Section 7.1 of this Act. Written
29 play instructions shall be made available to all players
30 through sales agents licensed to sell game tickets or shares.
31 Prizes for lottery games which involve the purchase of a
32 physical lottery ticket may be claimed only by presentation of
33 a valid winning lottery ticket that matches validation records

 

 

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1 on file with the Lottery; no claim may be honored which is
2 based on the assertion that the ticket was lost or stolen. No
3 lottery ticket which has been altered, mutilated, or fails to
4 pass validation tests shall be deemed to be a winning ticket.
5     If no claim is made for the money within the established
6 claim period, the prize may be included in the prize pool of
7 such special drawing or drawings as the Division Department
8 may, from time to time, designate. Unclaimed multi-state game
9 prize money may be included in the multi-state prize pool for
10 such special drawing or drawings as the multi-state game
11 directors may, from time to time, designate. Any bonuses
12 offered by the Department to sales agents who sell winning
13 tickets or shares shall be payable to such agents regardless of
14 whether or not the prize money on the ticket or share is
15 claimed, provided that the agent can be identified as the
16 vendor of the winning ticket or share, and that the winning
17 ticket or share was sold on or after January 1, 1984. All
18 unclaimed prize money not included in the prize pool of a
19 special drawing shall be transferred to the Common School Fund.
20 (Source: P.A. 90-724, eff. 1-1-99.)
 
21     (20 ILCS 1605/21)  (from Ch. 120, par. 1171)
22     Sec. 21. All lottery sales agents or distributors shall be
23 liable to the Lottery for any and all tickets accepted or
24 generated by any employee or representative of that agent or
25 distributor, and such tickets shall be deemed to have been
26 purchased by the agent or distributor unless returned to the
27 Lottery within the time and in the manner prescribed by the
28 Superintendent Director. All moneys received by such agents or
29 distributors from the sale of lottery tickets or shares, less
30 the amount retained as compensation for the sale of the tickets
31 or shares and the amount paid out as prizes, shall be paid over
32 to a lottery representative or deposited in a bank or savings
33 and loan association approved by the State Treasurer, as

 

 

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1 prescribed by the Superintendent Director.
2     No bank or savings and loan association shall receive
3 public funds as permitted by this Section, unless it has
4 complied with the requirements established pursuant to Section
5 6 of the Public Funds Investment Act.
6     Each payment or deposit shall be accompanied by a report of
7 the agent's receipts and transactions in the sale of lottery
8 tickets in such form and containing such information as the
9 Superintendent Director may require. Any discrepancies in such
10 receipts and transactions may be resolved as provided by the
11 rules and regulations of the Department.
12     If any money due the Lottery by a sales agent or
13 distributor is not paid when due or demanded, it shall
14 immediately become delinquent and be billed on a subsequent
15 monthly statement. If on the closing date for any monthly
16 statement a delinquent amount previously billed of more than
17 $50 remains unpaid, interest in such amount shall be accrued at
18 the rate of 2% per month or fraction thereof from the date when
19 such delinquent amount becomes past due until such delinquent
20 amount, including interest, penalty and other costs and charges
21 that the Department may incur in collecting such amounts, is
22 paid. In case any agent or distributor fails to pay any moneys
23 due the Lottery within 30 days after a second bill or statement
24 is rendered to the agent or distributor, such amount shall be
25 deemed seriously delinquent and may be referred by the
26 Department to a collection agency or credit bureau for
27 collection. Any contract entered into by the Department for the
28 collection of seriously delinquent accounts with a collection
29 agency or credit bureau may be satisfied by a commercially
30 reasonable percentage of the delinquent account recouped,
31 which shall be negotiated by the Department in accordance with
32 commercially accepted standards. Any costs incurred by the
33 Department or others authorized to act in its behalf in
34 collecting such delinquencies may be assessed against the agent

 

 

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1 or distributor and included as a part of the delinquent
2 account.
3     In case of failure of an agent or distributor to pay a
4 seriously delinquent amount, or any portion thereof, including
5 interest, penalty and costs, the Division Department may issue
6 a Notice of Assessment. In determining amounts shown on the
7 Notice of Assessment, the Division Department shall utilize the
8 financial information available from its records. Such Notice
9 of Assessment shall be prima facie correct and shall be prima
10 facie evidence of delinquent sums due under this Section at any
11 hearing before the Board, or its Hearing Officers, or at any
12 other legal proceeding. Reproduced copies of the Division's
13 Department's records relating to a delinquent account or a
14 Notice of Assessment offered in the name of the Department,
15 under the Certificate of the Director or any officer or
16 employee of the Department designated in writing by the
17 Director shall, without further proof, be admitted into
18 evidence in any such hearing or any legal proceeding and shall
19 be prima facie proof of the delinquency, including principal
20 and any interest, penalties and costs, as shown thereon. The
21 Attorney General may bring suit on behalf of the Department to
22 collect all such delinquent amounts, or any portion thereof,
23 including interest, penalty and costs, due the Lottery.
24     Any person who accepts money that is due to the Department
25 from the sale of lottery tickets under this Act, but who
26 wilfully fails to remit such payment to the Department when due
27 or who purports to make such payment but wilfully fails to do
28 so because his check or other remittance fails to clear the
29 bank or savings and loan association against which it is drawn,
30 in addition to the amount due and in addition to any other
31 penalty provided by law, shall be assessed, and shall pay, a
32 penalty equal to 5% of the deficiency plus any costs or charges
33 incurred by the Department in collecting such amount.
34     The Director may make such arrangements for any person(s),

 

 

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1 banks, savings and loan associations or distributors, to
2 perform such functions, activities or services in connection
3 with the operation of the lottery as he deems advisable
4 pursuant to this Act, the State Comptroller Act, or the rules
5 and regulations of the Department, and such functions,
6 activities or services shall constitute lawful functions,
7 activities and services of such person(s), banks, savings and
8 loan associations or distributors.
9     All income arising out of any activity or purpose of the
10 Division Department shall, pursuant to the State Finance Act,
11 be paid into the State Treasury except as otherwise provided by
12 the rules and regulations of the Department and shall be
13 covered into a special fund to be known as the State Lottery
14 Fund. Banks and savings and loan associations may be
15 compensated for services rendered based upon the activity and
16 amount of funds on deposit.
17 (Source: P.A. 91-357, eff. 7-29-99.)
 
18     (20 ILCS 1605/24)  (from Ch. 120, par. 1174)
19     Sec. 24. The State Comptroller shall conduct a preaudit of
20 all accounts and transactions of the Department in connection
21 with the operation of the State Lottery under the State
22 Comptroller Act, excluding payments issued by the Department
23 for prizes of $25,000 or less.
24     The Auditor General or a certified public accountant firm
25 appointed by him shall conduct an annual post-audit of all
26 accounts and transactions of the Department in connection with
27 the operation of the State Lottery and other special post
28 audits as the Auditor General, the Legislative Audit
29 Commission, or the General Assembly deems necessary. The annual
30 post-audits shall include payments made by lottery sales agents
31 of prizes of less than $600 authorized under Section 20, and
32 payments made by the Department of prizes up to $25,000
33 authorized under Section 20.1. The Auditor General or his agent

 

 

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1 conducting an audit under this Act shall have access and
2 authority to examine any and all records of the Department or
3 the Board, its distributing agents and its licensees.
4 (Source: P.A. 91-357, eff. 7-29-99.)
 
5     Section 10. The Illinois Income Tax Act is amended by
6 changing Sections 704 and 902 as follows:
 
7     (35 ILCS 5/704)  (from Ch. 120, par. 7-704)
8     Sec. 704. Employer's Return and Payment of Tax Withheld.
9     (a) In general, every employer who deducts and withholds or
10 is required to deduct and withhold tax under this Act shall
11 make such payments and returns as hereinafter provided.
12     (b) Quarter Monthly Payments: Returns. Every employer who
13 deducts and withholds or is required to deduct and withhold tax
14 under this Act shall, on or before the third banking day
15 following the close of a quarter monthly period, pay to the
16 Department or to a depositary designated by the Department,
17 pursuant to regulations prescribed by the Department, the taxes
18 so required to be deducted and withheld, whenever the aggregate
19 amount withheld by such employer (together with amounts
20 previously withheld and not paid to the Department) exceeds
21 $1,000. For purposes of this Section, Saturdays, Sundays, legal
22 holidays and local bank holidays are not banking days. A
23 quarter monthly period, for purposes of this subsection, ends
24 on the 7th, 15th, 22nd and last day of each calendar month.
25 Every such employer shall for each calendar quarter, on or
26 before the last day of the first month following the close of
27 such quarter, and, if required by the Department, by rule, for
28 the calendar year, on or before the due date determined by the
29 Department January 31 of the succeeding calendar year, make a
30 return with respect to such taxes in such form and manner as
31 the Department may by regulations prescribe, and pay to the
32 Department or to a depositary designated by the Department all

 

 

09400HB2706ham001 - 23 - LRB094 03732 BDD 44274 a

1 withheld taxes not previously paid to the Department.
2     (c) Monthly Payments: Returns. Every employer required to
3 deduct and withhold tax under this Act shall, on or before the
4 15th day of the second and third months of each calendar
5 quarter, and on or before the last day of the month following
6 the last month of each such quarter, pay to the Department or
7 to a depositary designated by the Department, pursuant to
8 regulations prescribed by the Department, the taxes so required
9 to be deducted and withheld, whenever the aggregate amount
10 withheld by such employer (together with amounts previously
11 withheld and not paid to the Department) exceeds $500 but does
12 not exceed $1,000. Every such employer shall for each calendar
13 quarter, on or before the last day of the first month following
14 the close of such quarter, and, if required by the Department,
15 by rule, for the calendar year, on or before the due date
16 determined by the Department January 31 of the succeeding
17 calendar year, make a return with respect to such taxes in such
18 form and manner as the Department may by regulations prescribe,
19 and pay to the Department or to a depositary designated by the
20 Department all withheld taxes not previously paid to the
21 Department.
22     (d) Annual Payments: Returns. Where the amount of
23 compensation paid by an employer is not sufficient to require
24 the withholding of tax from the compensation of any of its
25 employees (or where the aggregate amount withheld is less than
26 $500), the Department may by regulation permit such employer to
27 file only an annual return and to pay the taxes required to be
28 deducted and withheld at the time of filing such annual return.
29     (e) Annual Return. The Department may, as it deems
30 appropriate, prescribe by regulation for the filing of annual
31 returns in lieu of quarterly returns described in subsections
32 (b) and (c).
33     (e-5) Annual Return and Payment. On and after January 1,
34 1998, notwithstanding subsections (b) through (d) of this

 

 

09400HB2706ham001 - 24 - LRB094 03732 BDD 44274 a

1 Section, every employer who deducts and withholds or is
2 required to deduct and withhold tax from a person engaged in
3 domestic service employment, as that term is defined in Section
4 3510 of the Internal Revenue Code, may comply with the
5 requirements of this Section by filing an annual return and
6 paying the taxes required to be deducted and withheld on or
7 before the 15th day of the fourth month following the close of
8 the employer's taxable year. The annual return may be submitted
9 with the employer's individual income tax return.
10     (f) Magnetic Media Filing. Forms W-2 that, pursuant to the
11 Internal Revenue Code and regulations promulgated thereunder,
12 are required to be submitted to the Internal Revenue Service on
13 magnetic media, must also be submitted to the Department on
14 magnetic media for Illinois purposes, if required by the
15 Department.
16 (Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
 
17     (35 ILCS 5/902)  (from Ch. 120, par. 9-902)
18     Sec. 902. Notice and Demand.
19     (a) In general. Except as provided in subsection (b) the
20 Director shall, as soon as practicable after an amount payable
21 under this Act is deemed assessed (as provided in Section 903),
22 give notice to each person liable for any unpaid portion of
23 such assessment, stating the amount unpaid and demanding
24 payment thereof. In the case of tax deemed assessed with the
25 filing of a return, the Director shall give notice no later
26 than 3 years after the date the return was filed. Upon receipt
27 of any notice and demand there shall be paid at the place and
28 time stated in such notice the amount stated in such notice.
29 Such notice shall be left at the dwelling or usual place of
30 business of such person or shall be sent by mail to the
31 person's last known address.
32     (b) Judicial review. In the case of a deficiency deemed
33 assessed under Section 903 (a) (2) after the filing of a

 

 

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1 protest, notice and demand shall not be made with respect to
2 such assessment until all proceedings in court for the review
3 of such assessment have terminated or the time for the taking
4 thereof has expired without such proceedings being instituted.
5     (c) Action for recovery of taxes. At any time that the
6 Department might commence proceedings for a levy under Section
7 1109, regardless of whether a notice of lien was filed under
8 the provisions of Section 1103, it may bring an action in any
9 court of competent jurisdiction within or without this State in
10 the name of the people of this State to recover the amount of
11 any taxes, penalties and interest due and unpaid under this
12 Act. In such action, the certificate of the Department showing
13 the amount of the delinquency shall be prima facie evidence of
14 the correctness of such amount, its assessment and of the
15 compliance by the Department with all the provisions of this
16 Act.
17     (d) Sales or transfers outside the usual course of
18 business-Report-Payment of Tax - Rights and duties of purchaser
19 or transferee - penalty. If any taxpayer, outside the usual
20 course of his business, sells or transfers the major part of
21 any one or more of (A) the stock of goods which he is engaged in
22 the business of selling, or (B) the furniture or fixtures, or
23 (C) the machinery and equipment, or (D) the real property, of
24 any business that is subject to the provisions of this Act, the
25 purchaser or transferee of such assets shall, no later than 10
26 business days after the sale or transfer, file a notice of sale
27 or transfer of business assets with the Chicago office of the
28 Department disclosing the name and address of the seller or
29 transferor, the name and address of the purchaser or
30 transferee, the date of the sale or transfer, a copy of the
31 sales contract and financing agreements which shall include a
32 description of the property sold or transferred, the amount of
33 the purchase price or a statement of other consideration for
34 the sale or transfer, and the terms for payment of the purchase

 

 

09400HB2706ham001 - 26 - LRB094 03732 BDD 44274 a

1 price, and such other information as the Department may
2 reasonably require. If the purchaser or transferee fails to
3 file the above described notice of sale with the Department
4 within the prescribed time, the purchaser or transferee shall
5 be personally liable to the Department for the amount owed
6 hereunder by the seller or transferor but unpaid, up to the
7 amount of the reasonable value of the property acquired by the
8 purchaser or transferee. The purchaser or transferee shall pay
9 the Department the amount of tax, penalties, and interest owed
10 by the seller or transferor under this Act, to the extent they
11 have not been paid by the seller or transferor. The seller or
12 transferor, or the purchaser or transferee, at least 10
13 business days before the date of the sale or transfer, may
14 notify the Department of the intended sale or transfer and
15 request the Department to make a determination as to whether
16 the seller or transferor owes any tax, penalty or interest due
17 under this Act. The Department shall take such steps as may be
18 appropriate to comply with such request.
19     Any order issued by the Department pursuant to this Section
20 to withhold from the purchase price shall be issued within 10
21 business days after the Department receives notification of a
22 sale as provided in this Section. The purchaser or transferee
23 shall withhold such portion of the purchase price as may be
24 directed by the Department, but not to exceed a minimum amount
25 varying by type of business, as determined by the Department
26 pursuant to regulations, plus twice the outstanding unpaid
27 liabilities and twice the average liability of preceding
28 filings times the number of unfiled returns which were not
29 filed when due, to cover the amount of all tax, penalty, and
30 interest due and unpaid by the seller or transferor under this
31 Act or, if the payment of money or property is not involved,
32 shall withhold the performance of the condition that
33 constitutes the consideration for the sale or transfer. Within
34 60 business days after issuance of the initial order to

 

 

09400HB2706ham001 - 27 - LRB094 03732 BDD 44274 a

1 withhold, the Department shall provide written notice to the
2 purchaser or transferee of the actual amount of all taxes,
3 penalties and interest then due and whether or not additional
4 amounts may become due as a result of unpaid taxes required to
5 be withheld by an employer, returns which were not filed when
6 due, pending assessments and audits not completed. The
7 purchaser or transferee shall continue to withhold the amount
8 directed to be withheld by the initial order or such lesser
9 amount as is specified by the final withholding order or to
10 withhold the performance of the condition which constitutes the
11 consideration for the sale or transfer until the purchaser or
12 transferee receives from the Department a certificate showing
13 that no unpaid tax, penalty or interest is due from the seller
14 or transferor under this Act.
15     The purchaser or transferee is relieved of any duty to
16 continue to withhold from the purchase price and of any
17 liability for tax, penalty, or interest due hereunder from the
18 seller or transferor if the Department fails to notify the
19 purchaser or transferee in the manner provided herein of the
20 amount to be withheld within 10 business days after the sale or
21 transfer has been reported to the Department or within 60
22 business days after issuance of the initial order to withhold,
23 as the case may be. The Department shall have the right to
24 determine amounts claimed on an estimated basis to allow for
25 periods for which returns were not filed when due, pending
26 assessments and audits not completed, however the purchaser or
27 transferee shall be personally liable only for the actual
28 amount due when determined.
29     If the seller or transferor has failed to pay the tax,
30 penalty, and interest due from him hereunder and the Department
31 makes timely claim therefor against the purchaser or transferee
32 as hereinabove provided, then the purchaser or transferee shall
33 pay to the Department the amount so withheld from the purchase
34 price. If the purchaser or transferee fails to comply with the

 

 

09400HB2706ham001 - 28 - LRB094 03732 BDD 44274 a

1 requirements of this Section, the purchaser or transferee shall
2 be personally liable to the Department for the amount owed
3 hereunder by the seller or transferor up to the amount of the
4 reasonable value of the property acquired by the purchaser or
5 transferee.
6     Any person who shall acquire any property or rights thereto
7 which, at the time of such acquisition, is subject to a valid
8 lien in favor of the Department, shall be personally liable to
9 the Department for a sum equal to the amount of taxes,
10 penalties and interests, secured by such lien, but not to
11 exceed the reasonable value of such property acquired by him.
12 (Source: P.A. 86-923; 86-953.)
 
13     Section 15. The Retailers' Occupation Tax Act is amended by
14 changing Section 5j as follows:
 
15     (35 ILCS 120/5j)  (from Ch. 120, par. 444j)
16     Sec. 5j. If any taxpayer, outside the usual course of his
17 business, sells or transfers the major part of any one or more
18 of (A) the stock of goods which he is engaged in the business
19 of selling, or (B) the furniture or fixtures, (C) the machinery
20 and equipment, or (D) the real property, of any business that
21 is subject to the provisions of this Act, the purchaser or
22 transferee of such asset shall, no later than 10 business days
23 after the sale or transfer, file a notice of sale or transfer
24 of business assets with the Chicago office of the Department
25 disclosing the name and address of the seller or transferor,
26 the name and address of the purchaser or transferee, the date
27 of the sale or transfer, a copy of the sales contract and
28 financing agreements which shall include a description of the
29 property sold, the amount of the purchase price or a statement
30 of other consideration for the sale or transfer, the terms for
31 payment of the purchase price, and such other information as
32 the Department may reasonably require. If the purchaser or

 

 

09400HB2706ham001 - 29 - LRB094 03732 BDD 44274 a

1 transferee fails to file the above described notice of sale
2 with the Department within the prescribed time, the purchaser
3 or transferee shall be personally liable for the amount owed
4 hereunder by the seller or transferor to the Department up to
5 the amount of the reasonable value of the property acquired by
6 the purchaser or transferee. The seller or transferor shall pay
7 the Department the amount of tax, penalty and interest (if any)
8 due from him under this Act up to the date of the payment of
9 tax. The seller or transferor, or the purchaser or transferee,
10 at least 10 business days before the date of the sale or
11 transfer, may notify the Department of the intended sale or
12 transfer and request the Department to audit the books and
13 records of the seller or transferor, or to do whatever else may
14 be necessary to determine how much the seller or transferor
15 owes to the Department hereunder up to the date of the sale or
16 transfer. The Department shall take such steps as may be
17 appropriate to comply with such request.
18     Any order issued by the Department pursuant to this Section
19 to withhold from the purchase price shall be issued within 10
20 business days after the Department receives notification of a
21 sale as provided in this Section. The purchaser or transferee
22 shall withhold such portion of the purchase price as may be
23 directed by the Department, but not to exceed a minimum amount
24 varying by type of business, as determined by the Department
25 pursuant to regulations, plus twice the outstanding unpaid
26 liabilities and twice the average liability of preceding
27 filings times the number of unfiled returns, to cover the
28 amount of all tax, penalty and interest due and unpaid by the
29 seller or transferor under this Act or, if the payment of money
30 or property is not involved, shall withhold the performance of
31 the condition that constitutes the consideration for the sale
32 or transfer. Within 60 business days after issuance of the
33 initial order to withhold, the Department shall provide written
34 notice to the purchaser or transferee of the actual amount of

 

 

09400HB2706ham001 - 30 - LRB094 03732 BDD 44274 a

1 all taxes, penalties and interest then due and whether or not
2 additional amounts may become due as a result of unfiled
3 returns, pending assessments and audits not completed. The
4 purchaser or transferee shall continue to withhold the amount
5 directed to be withheld by the initial order or such lesser
6 amount as is specified by the final withholding order or to
7 withhold the performance of the condition which constitutes the
8 consideration for the sale or transfer until the purchaser or
9 transferee receives from the Department a certificate showing
10 that such tax, penalty and interest have been paid or a
11 certificate from the Department showing that no tax, penalty or
12 interest is due from the seller or transferor under this Act.
13     The purchaser or transferee is relieved of any duty to
14 continue to withhold from the purchase price and of any
15 liability for tax, penalty or interest due hereunder from the
16 seller or transferor if the Department fails to notify the
17 purchaser or transferee in the manner provided herein of the
18 amount to be withheld within 10 business days after the sale or
19 transfer has been reported to the Department or within 60
20 business days after issuance of the initial order to withhold,
21 as the case may be. The Department shall have the right to
22 determine amounts claimed on an estimated basis to allow for
23 non-filed periods, pending assessments and audits not
24 completed, however the purchaser or transferee shall be
25 personally liable only for the actual amount due when
26 determined.
27     If the seller or transferor fails to pay the tax, penalty
28 and interest (if any) due from him hereunder and the Department
29 makes timely claim therefor against the purchaser or transferee
30 as hereinabove provided, then the purchaser or transferee shall
31 pay the amount so withheld from the purchase price to the
32 Department. If the purchaser or transferee fails to comply with
33 the requirements of this Section, the purchaser or transferee
34 shall be personally liable to the Department for the amount

 

 

09400HB2706ham001 - 31 - LRB094 03732 BDD 44274 a

1 owed hereunder by the seller or transferor to the Department up
2 to the amount of the reasonable value of the property acquired
3 by the purchaser or transferee.
4     Any person who shall acquire any property or rights thereto
5 which, at the time of such acquisition, is subject to a valid
6 lien in favor of the Department shall be personally liable to
7 the Department for a sum equal to the amount of taxes secured
8 by such lien but not to exceed the reasonable value of such
9 property acquired by him.
10 (Source: P.A. 86-923; 86-953.)
 
11     Section 20. The Cigarette Tax Act is amended by changing
12 Section 21 as follows:
 
13     (35 ILCS 130/21)  (from Ch. 120, par. 453.21)
14     Sec. 21. (a) When any original packages of cigarettes or
15 any cigarette vending device shall have been declared forfeited
16 to the State by the Department, as provided in Section 18a of
17 this Act, and when all proceedings for the judicial review of
18 the Department's decision have terminated, the Department
19 shall, to the extent that its decision is sustained on review,
20 destroy, maintain and use in an undercover capacity, or sell
21 such property for the best price obtainable and shall forthwith
22 pay over the proceeds of such sale to the State Treasurer. If
23 the value of such property to be sold at any one time is $500 or
24 more, however, such property shall be sold only to the highest
25 and best bidder on such terms and conditions and on open
26 competitive bidding after public advertisement, in such manner
27 and for such terms as the Department, by rule, may prescribe.
28     (b) If no complaint for review, as provided in Section 8 of
29 this Act, has been filed within the time required by the
30 Administrative Review Law, and if no stay order has been
31 entered thereunder, the Department shall proceed to sell the
32 property for the best price obtainable and shall forthwith pay

 

 

09400HB2706ham001 - 32 - LRB094 03732 BDD 44274 a

1 over the proceeds of such sale to the State Treasurer. If the
2 value of such property to be sold at any one time is $500 or
3 more, however, such property shall be sold only to the highest
4 and best bidder on such terms and conditions and on open
5 competitive bidding after public advertisement, in such manner
6 and for such terms as the Department, by rule, may prescribe.
7     (c) Upon making a sale of unstamped original packages of
8 cigarettes as provided in this Section, the Department shall
9 affix a distinctive stamp to each of the original packages so
10 sold indicating that the same are sold under this Section.
11     (d) Notwithstanding the foregoing, any cigarettes seized
12 under this Act or under the Cigarette Use Tax Act may, at the
13 discretion of the Director of Revenue, be distributed to any
14 eleemosynary institution within the State of Illinois.
15 (Source: P.A. 82-783.)
 
16     Section 25. The Cigarette Use Tax Act is amended by
17 changing Sections 26 and 27 as follows:
 
18     (35 ILCS 135/26)  (from Ch. 120, par. 453.56)
19     Sec. 26. Whenever any peace officer of the State or any
20 duly authorized officer or employee of the Department shall
21 have reason to believe that any violation of this Act has
22 occurred and that the person so violating the Act has in his,
23 her or its possession any original package of cigarettes, not
24 tax stamped or tax imprinted underneath the sealed transparent
25 wrapper of such original packages, as required by this Act, or
26 any vending device containing such original packages to which
27 stamps have not been affixed, or on which an authorized
28 substitute for stamps has not been imprinted underneath the
29 sealed transparent wrapper of such original packages, as
30 required by this Act, he may file or cause to be filed his
31 complaint in writing, verified by affidavit, with any circuit
32 court within whose jurisdiction the premises to be searched are

 

 

09400HB2706ham001 - 33 - LRB094 03732 BDD 44274 a

1 situated, stating the facts upon which such belief is founded,
2 the premises to be searched, and the property to be seized, and
3 procure a search warrant and execute the same. Upon the
4 execution of such search warrant, the peace officer, or officer
5 or employee of the Department, executing such search warrant
6 shall make due return thereof to the court issuing the same,
7 together with an inventory of the property taken thereunder.
8 The court shall thereupon issue process against the owner of
9 such property if he is known; otherwise, such process shall be
10 issued against the person in whose possession the property so
11 taken is found, if such person is known. In case of inability
12 to serve such process upon the owner or the person in
13 possession of the property at the time of its seizure, as
14 hereinbefore provided, notice of the proceedings before the
15 court shall be given as required by the statutes of the State
16 governing cases of Attachment. Upon the return of the process
17 duly served or upon the posting or publishing of notice made,
18 as hereinabove provided, the court or jury, if a jury shall be
19 demanded, shall proceed to determine whether or not such
20 property so seized was held or possessed in violation of this
21 Act, or whether, if a vending device has been so seized, it
22 contained at the time of its seizure original packages not tax
23 stamped or tax imprinted underneath the sealed transparent
24 wrapper of such original packages as required by this Act. In
25 case of a finding that the original packages seized were not
26 tax stamped or tax imprinted underneath the sealed transparent
27 wrapper of such original packages in accordance with the
28 provisions of this Act, or that any vending device so seized
29 contained at the time of its seizure original packages not tax
30 stamped or tax imprinted underneath the sealed transparent
31 wrapper of such original packages in accordance with the
32 provisions of this Act, judgment shall be entered confiscating
33 and forfeiting the property to the State and ordering its
34 delivery to the Department, and in addition thereto, the court

 

 

09400HB2706ham001 - 34 - LRB094 03732 BDD 44274 a

1 shall have power to tax and assess the costs of the
2 proceedings.
3     When any original packages or any cigarette vending device
4 shall have been declared forfeited to the State by any court,
5 as hereinbefore provided, and when such confiscated and
6 forfeited property shall have been delivered to the Department,
7 as provided in this Act, the said Department shall destroy,
8 maintain and use in an undercover capacity, or sell such
9 property for the best price obtainable and shall forthwith pay
10 over the proceeds of such sale to the State Treasurer;
11 provided, however, that if the value of such property to be
12 sold at any one time shall be $500 or more, such property shall
13 be sold only to the highest and best bidder on such terms and
14 conditions and on open competitive bidding after public
15 advertisement, in such manner and for such terms as the
16 Department, by rule, may prescribe.
17     Upon making such a sale of original packages of cigarettes
18 which were not tax stamped or tax imprinted underneath the
19 sealed transparent wrapper of such original packages as
20 required by this Act, the Department shall affix a distinctive
21 stamp to each of the original packages so sold indicating that
22 the same are sold pursuant to the provisions of this Section.
23 (Source: Laws 1965, p. 3710.)
 
24     (35 ILCS 135/27)  (from Ch. 120, par. 453.57)
25     Sec. 27. When any original packages of cigarettes or any
26 cigarette vending device shall have been declared forfeited to
27 the State by the Department, as provided in Section 25 of this
28 Act, and when all proceedings for the judicial review of the
29 Department's decision have terminated, the Department shall,
30 to the extent that its decision is sustained on review,
31 destroy, maintain and use in an undercover capacity, or sell
32 such property for the best price obtainable and shall forthwith
33 pay over the proceeds of such sale to the State Treasurer;

 

 

09400HB2706ham001 - 35 - LRB094 03732 BDD 44274 a

1 provided, however, that if the value of such property to be
2 sold at any one time shall be Five Hundred Dollars ($500) or
3 more, such property shall be sold only to the highest and best
4 bidder on such terms and conditions and on open competitive
5 bidding after public advertisement, in such manner and for such
6 terms as the Department, by rule, may prescribe.
7     If no complaint for review, as provided in Section 21 of
8 this Act, has been filed within the time required by the
9 "Administrative Review Law," and if no stay order has been
10 entered thereunder, the Department shall proceed to sell said
11 property for the best price obtainable and shall forthwith pay
12 over the proceeds of such sale to the State Treasurer;
13 provided, however, that if the value of such property to be
14 sold at any one time shall be $500 or more, such property shall
15 be sold only to the highest and best bidder on such terms and
16 conditions and on open competitive bidding after public
17 advertisement, in such manner and for such terms as the
18 Department, by rule, may prescribe.
19     Upon making a sale of unstamped original packages of
20 cigarettes as provided in this Section, the Department shall
21 affix a distinctive stamp to each of the original packages so
22 sold indicating that the same are sold pursuant to the
23 provisions of this Section.
24 (Source: P.A. 83-1539.)
 
25     Section 30. The Tobacco Products Tax Act of 1995 is amended
26 by changing Section 10-58 as follows:
 
27     (35 ILCS 143/10-58)
28     Sec. 10-58. Sale of forfeited tobacco products or vending
29 devices.
30     (a) When any tobacco products or any vending devices are
31 declared forfeited to the State by the Department, as provided
32 in Section 10-55, and when all proceedings for the judicial

 

 

09400HB2706ham001 - 36 - LRB094 03732 BDD 44274 a

1 review of the Department's decision have terminated, the
2 Department shall, to the extent that its decision is sustained
3 on review, sell the property for the best price obtainable and
4 shall forthwith pay over the proceeds of the sale to the State
5 Treasurer. If the value of the property to be sold at any one
6 time is $500 or more, however, the property shall be sold only
7 to the highest and best bidder on terms and conditions, and on
8 open competitive bidding after public advertisement, in a
9 manner and for terms as the Department, by rule, may prescribe.
10     (b) If no complaint for review, as provided in Section 12
11 of the Retailers' Occupation Tax Act, has been filed within the
12 time required by the Administrative Review Law, and if no stay
13 order has been entered under that Law, the Department shall
14 proceed to destroy, maintain and use in an undercover capacity,
15 or sell the property for the best price obtainable and shall
16 forthwith pay over the proceeds of the sale to the State
17 Treasurer. If the value of the property to be sold at any one
18 time is $500 or more, however, the property shall be sold only
19 to the highest and best bidder on terms and conditions, and on
20 open competitive bidding after public advertisement, in a
21 manner and for terms as the Department, by rule, may prescribe.
22     (c) Upon making a sale of tobacco products as provided in
23 this Section, the Department shall affix a distinctive stamp to
24 each of the tobacco products so sold indicating that they are
25 sold under this Section.
26     (d) Notwithstanding the foregoing, any tobacco products
27 seized under this Act may, at the discretion of the Director of
28 Revenue, be distributed to any eleemosynary institution within
29 the State of Illinois.
30 (Source: P.A. 92-743, eff. 7-25-02.)
 
31     Section 35. The Local Mass Transit District Act is amended
32 by changing Section 5.01 as follows:
 

 

 

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1     (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
2     Sec. 5.01. Metro East Mass Transit District; use and
3 occupation taxes.
4     (a) The Board of Trustees of any Metro East Mass Transit
5 District may, by ordinance adopted with the concurrence of
6 two-thirds of the then trustees, impose throughout the District
7 any or all of the taxes and fees provided in this Section. All
8 taxes and fees imposed under this Section shall be used only
9 for public mass transportation systems, and the amount used to
10 provide mass transit service to unserved areas of the District
11 shall be in the same proportion to the total proceeds as the
12 number of persons residing in the unserved areas is to the
13 total population of the District. Except as otherwise provided
14 in this Act, taxes imposed under this Section and civil
15 penalties imposed incident thereto shall be collected and
16 enforced by the State Department of Revenue. The Department
17 shall have the power to administer and enforce the taxes and to
18 determine all rights for refunds for erroneous payments of the
19 taxes.
20     (b) The Board may impose a Metro East Mass Transit District
21 Retailers' Occupation Tax upon all persons engaged in the
22 business of selling tangible personal property at retail in the
23 district at a rate of 1/4 of 1%, or as authorized under
24 subsection (d-5) of this Section, of the gross receipts from
25 the sales made in the course of such business within the
26 district. The tax imposed under this Section and all civil
27 penalties that may be assessed as an incident thereof shall be
28 collected and enforced by the State Department of Revenue. The
29 Department shall have full power to administer and enforce this
30 Section; to collect all taxes and penalties so collected in the
31 manner hereinafter provided; and to determine all rights to
32 credit memoranda arising on account of the erroneous payment of
33 tax or penalty hereunder. In the administration of, and
34 compliance with, this Section, the Department and persons who

 

 

09400HB2706ham001 - 38 - LRB094 03732 BDD 44274 a

1 are subject to this Section shall have the same rights,
2 remedies, privileges, immunities, powers and duties, and be
3 subject to the same conditions, restrictions, limitations,
4 penalties, exclusions, exemptions and definitions of terms and
5 employ the same modes of procedure, as are prescribed in
6 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
7 (in respect to all provisions therein other than the State rate
8 of tax), 2c, 3 (except as to the disposition of taxes and
9 penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
10 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
11 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
12 Penalty and Interest Act, as fully as if those provisions were
13 set forth herein.
14     Persons subject to any tax imposed under the Section may
15 reimburse themselves for their seller's tax liability
16 hereunder by separately stating the tax as an additional
17 charge, which charge may be stated in combination, in a single
18 amount, with State taxes that sellers are required to collect
19 under the Use Tax Act, in accordance with such bracket
20 schedules as the Department may prescribe.
21     Whenever the Department determines that a refund should be
22 made under this Section to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the warrant to be drawn for the
25 amount specified, and to the person named, in the notification
26 from the Department. The refund shall be paid by the State
27 Treasurer out of the Metro East Mass Transit District tax fund
28 established under paragraph (g) of this Section.
29     If a tax is imposed under this subsection (b), a tax shall
30 also be imposed under subsections (c) and (d) of this Section.
31     For the purpose of determining whether a tax authorized
32 under this Section is applicable, a retail sale, by a producer
33 of coal or other mineral mined in Illinois, is a sale at retail
34 at the place where the coal or other mineral mined in Illinois

 

 

09400HB2706ham001 - 39 - LRB094 03732 BDD 44274 a

1 is extracted from the earth. This paragraph does not apply to
2 coal or other mineral when it is delivered or shipped by the
3 seller to the purchaser at a point outside Illinois so that the
4 sale is exempt under the Federal Constitution as a sale in
5 interstate or foreign commerce.
6     Nothing in this Section shall be construed to authorize the
7 Metro East Mass Transit District to impose a tax upon the
8 privilege of engaging in any business which under the
9 Constitution of the United States may not be made the subject
10 of taxation by this State.
11     (c) If a tax has been imposed under subsection (b), a Metro
12 East Mass Transit District Service Occupation Tax shall also be
13 imposed upon all persons engaged, in the district, in the
14 business of making sales of service, who, as an incident to
15 making those sales of service, transfer tangible personal
16 property within the District, either in the form of tangible
17 personal property or in the form of real estate as an incident
18 to a sale of service. The tax rate shall be 1/4%, or as
19 authorized under subsection (d-5) of this Section, of the
20 selling price of tangible personal property so transferred
21 within the district. The tax imposed under this paragraph and
22 all civil penalties that may be assessed as an incident thereof
23 shall be collected and enforced by the State Department of
24 Revenue. The Department shall have full power to administer and
25 enforce this paragraph; to collect all taxes and penalties due
26 hereunder; to dispose of taxes and penalties so collected in
27 the manner hereinafter provided; and to determine all rights to
28 credit memoranda arising on account of the erroneous payment of
29 tax or penalty hereunder. In the administration of, and
30 compliance with this paragraph, the Department and persons who
31 are subject to this paragraph shall have the same rights,
32 remedies, privileges, immunities, powers and duties, and be
33 subject to the same conditions, restrictions, limitations,
34 penalties, exclusions, exemptions and definitions of terms and

 

 

09400HB2706ham001 - 40 - LRB094 03732 BDD 44274 a

1 employ the same modes of procedure as are prescribed in
2 Sections 1a-1, 2 (except that the reference to State in the
3 definition of supplier maintaining a place of business in this
4 State shall mean the Authority), 2a, 3 through 3-50 (in respect
5 to all provisions therein other than the State rate of tax), 4
6 (except that the reference to the State shall be to the
7 Authority), 5, 7, 8 (except that the jurisdiction to which the
8 tax shall be a debt to the extent indicated in that Section 8
9 shall be the District), 9 (except as to the disposition of
10 taxes and penalties collected, and except that the returned
11 merchandise credit for this tax may not be taken against any
12 State tax), 10, 11, 12 (except the reference therein to Section
13 2b of the Retailers' Occupation Tax Act), 13 (except that any
14 reference to the State shall mean the District), the first
15 paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
16 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
17 Interest Act, as fully as if those provisions were set forth
18 herein.
19     Persons subject to any tax imposed under the authority
20 granted in this paragraph may reimburse themselves for their
21 serviceman's tax liability hereunder by separately stating the
22 tax as an additional charge, which charge may be stated in
23 combination, in a single amount, with State tax that servicemen
24 are authorized to collect under the Service Use Tax Act, in
25 accordance with such bracket schedules as the Department may
26 prescribe.
27     Whenever the Department determines that a refund should be
28 made under this paragraph to a claimant instead of issuing a
29 credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the warrant to be drawn for the
31 amount specified, and to the person named, in the notification
32 from the Department. The refund shall be paid by the State
33 Treasurer out of the Metro East Mass Transit District tax fund
34 established under paragraph (g) of this Section.

 

 

09400HB2706ham001 - 41 - LRB094 03732 BDD 44274 a

1     Nothing in this paragraph shall be construed to authorize
2 the District to impose a tax upon the privilege of engaging in
3 any business which under the Constitution of the United States
4 may not be made the subject of taxation by the State.
5     (d) If a tax has been imposed under subsection (b), a Metro
6 East Mass Transit District Use Tax shall also be imposed upon
7 the privilege of using, in the district, any item of tangible
8 personal property that is purchased outside the district at
9 retail from a retailer, and that is titled or registered with
10 an agency of this State's government, at a rate of 1/4%, or as
11 authorized under subsection (d-5) of this Section, of the
12 selling price of the tangible personal property within the
13 District, as "selling price" is defined in the Use Tax Act. The
14 tax shall be collected from persons whose Illinois address for
15 titling or registration purposes is given as being in the
16 District. The tax shall be collected by the Department of
17 Revenue for the Metro East Mass Transit District. The tax must
18 be paid to the State, or an exemption determination must be
19 obtained from the Department of Revenue, before the title or
20 certificate of registration for the property may be issued. The
21 tax or proof of exemption may be transmitted to the Department
22 by way of the State agency with which, or the State officer
23 with whom, the tangible personal property must be titled or
24 registered if the Department and the State agency or State
25 officer determine that this procedure will expedite the
26 processing of applications for title or registration.
27     The Department shall have full power to administer and
28 enforce this paragraph; to collect all taxes, penalties and
29 interest due hereunder; to dispose of taxes, penalties and
30 interest so collected in the manner hereinafter provided; and
31 to determine all rights to credit memoranda or refunds arising
32 on account of the erroneous payment of tax, penalty or interest
33 hereunder. In the administration of, and compliance with, this
34 paragraph, the Department and persons who are subject to this

 

 

09400HB2706ham001 - 42 - LRB094 03732 BDD 44274 a

1 paragraph shall have the same rights, remedies, privileges,
2 immunities, powers and duties, and be subject to the same
3 conditions, restrictions, limitations, penalties, exclusions,
4 exemptions and definitions of terms and employ the same modes
5 of procedure, as are prescribed in Sections 2 (except the
6 definition of "retailer maintaining a place of business in this
7 State"), 3 through 3-80 (except provisions pertaining to the
8 State rate of tax, and except provisions concerning collection
9 or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
10 19 (except the portions pertaining to claims by retailers and
11 except the last paragraph concerning refunds), 20, 21 and 22 of
12 the Use Tax Act and Section 3-7 of the Uniform Penalty and
13 Interest Act, that are not inconsistent with this paragraph, as
14 fully as if those provisions were set forth herein.
15     Whenever the Department determines that a refund should be
16 made under this paragraph to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified, and to the person named, in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the Metro East Mass Transit District tax fund
22 established under paragraph (g) of this Section.
23     (d-5) (A) The county board of any county participating in
24 the Metro East Mass Transit District may authorize, by
25 ordinance, a referendum on the question of whether the tax
26 rates for the Metro East Mass Transit District Retailers'
27 Occupation Tax, the Metro East Mass Transit District Service
28 Occupation Tax, and the Metro East Mass Transit District Use
29 Tax for the District should be increased from 0.25% to 0.75%.
30 Upon adopting the ordinance, the county board shall certify the
31 proposition to the proper election officials who shall submit
32 the proposition to the voters of the District at the next
33 election, in accordance with the general election law.
34     The proposition shall be in substantially the following

 

 

09400HB2706ham001 - 43 - LRB094 03732 BDD 44274 a

1 form:
2         Shall the tax rates for the Metro East Mass Transit
3     District Retailers' Occupation Tax, the Metro East Mass
4     Transit District Service Occupation Tax, and the Metro East
5     Mass Transit District Use Tax be increased from 0.25% to
6     0.75%?
7     (B) Two thousand five hundred electors of any Metro East
8 Mass Transit District may petition the Chief Judge of the
9 Circuit Court, or any judge of that Circuit designated by the
10 Chief Judge, in which that District is located to cause to be
11 submitted to a vote of the electors the question whether the
12 tax rates for the Metro East Mass Transit District Retailers'
13 Occupation Tax, the Metro East Mass Transit District Service
14 Occupation Tax, and the Metro East Mass Transit District Use
15 Tax for the District should be increased from 0.25% to 0.75%.
16     Upon submission of such petition the court shall set a date
17 not less than 10 nor more than 30 days thereafter for a hearing
18 on the sufficiency thereof. Notice of the filing of such
19 petition and of such date shall be given in writing to the
20 District and the County Clerk at least 7 days before the date
21 of such hearing.
22     If such petition is found sufficient, the court shall enter
23 an order to submit that proposition at the next election, in
24 accordance with general election law.
25     The form of the petition shall be in substantially the
26 following form: To the Circuit Court of the County of (name of
27 county):
28         We, the undersigned electors of the (name of transit
29     district), respectfully petition your honor to submit to a
30     vote of the electors of (name of transit district) the
31     following proposition:
32         Shall the tax rates for the Metro East Mass Transit
33     District Retailers' Occupation Tax, the Metro East Mass
34     Transit District Service Occupation Tax, and the Metro East

 

 

09400HB2706ham001 - 44 - LRB094 03732 BDD 44274 a

1     Mass Transit District Use Tax be increased from 0.25% to
2     0.75%?
3         Name                Address, with Street and Number.
4..............................................................
5..............................................................
6     (C) The votes shall be recorded as "YES" or "NO". If a
7 majority of all votes cast on the proposition are for the
8 increase in the tax rates, the Metro East Mass Transit District
9 shall begin imposing the increased rates in the District, and
10 the Department of Revenue shall begin collecting the increased
11 amounts, as provided under this Section. An ordinance imposing
12 or discontinuing a tax hereunder or effecting a change in the
13 rate thereof shall be adopted and a certified copy thereof
14 filed with the Department on or before the first day of
15 October, whereupon the Department shall proceed to administer
16 and enforce this Section as of the first day of January next
17 following the adoption and filing, or on or before the first
18 day of April, whereupon the Department shall proceed to
19 administer and enforce this Section as of the first day of July
20 next following the adoption and filing.
21     (D) If the voters have approved a referendum under this
22 subsection, before November 1, 1994, to increase the tax rate
23 under this subsection, the Metro East Mass Transit District
24 Board of Trustees may adopt by a majority vote an ordinance at
25 any time before January 1, 1995 that excludes from the rate
26 increase tangible personal property that is titled or
27 registered with an agency of this State's government. The
28 ordinance excluding titled or registered tangible personal
29 property from the rate increase must be filed with the
30 Department at least 15 days before its effective date. At any
31 time after adopting an ordinance excluding from the rate
32 increase tangible personal property that is titled or

 

 

09400HB2706ham001 - 45 - LRB094 03732 BDD 44274 a

1 registered with an agency of this State's government, the Metro
2 East Mass Transit District Board of Trustees may adopt an
3 ordinance applying the rate increase to that tangible personal
4 property. The ordinance shall be adopted, and a certified copy
5 of that ordinance shall be filed with the Department, on or
6 before October 1, whereupon the Department shall proceed to
7 administer and enforce the rate increase against tangible
8 personal property titled or registered with an agency of this
9 State's government as of the following January 1. After
10 December 31, 1995, any reimposed rate increase in effect under
11 this subsection shall no longer apply to tangible personal
12 property titled or registered with an agency of this State's
13 government. Beginning January 1, 1996, the Board of Trustees of
14 any Metro East Mass Transit District may never reimpose a
15 previously excluded tax rate increase on tangible personal
16 property titled or registered with an agency of this State's
17 government. After July 1, 2004, if the voters have approved a
18 referendum under this subsection to increase the tax rate under
19 this subsection, the Metro East Mass Transit District Board of
20 Trustees may adopt by a majority vote an ordinance that
21 excludes from the rate increase tangible personal property that
22 is titled or registered with an agency of this State's
23 government. The ordinance excluding titled or registered
24 tangible personal property from the rate increase shall be
25 adopted, and a certified copy of that ordinance shall be filed
26 with the Department on or before October 1, whereupon the
27 Department shall administer and enforce this exclusion from the
28 rate increase as of the following January 1, or on or before
29 April 1, whereupon the Department shall administer and enforce
30 this exclusion from the rate increase as of the following July
31 1. The Board of Trustees of any Metro East Mass Transit
32 District may never reimpose a previously excluded tax rate
33 increase on tangible personal property titled or registered
34 with an agency of this State's government.

 

 

09400HB2706ham001 - 46 - LRB094 03732 BDD 44274 a

1     (d-6) If the Board of Trustees of any Metro East Mass
2 Transit District has imposed a rate increase under subsection
3 (d-5) and filed an ordinance with the Department of Revenue
4 excluding titled property from the higher rate, then that Board
5 may, by ordinance adopted with the concurrence of two-thirds of
6 the then trustees, impose throughout the District a fee. The
7 fee on the excluded property shall not exceed $20 per retail
8 transaction or an amount equal to the amount of tax excluded,
9 whichever is less, on tangible personal property that is titled
10 or registered with an agency of this State's government.
11 Beginning July 1, 2004, the fee shall apply only to titled
12 property that is subject to either the Metro East Mass Transit
13 District Retailers' Occupation Tax or the Metro East Mass
14 Transit District Service Occupation Tax.
15     (d-7) Until June 30, 2004, if a fee has been imposed under
16 subsection (d-6), a fee shall also be imposed upon the
17 privilege of using, in the district, any item of tangible
18 personal property that is titled or registered with any agency
19 of this State's government, in an amount equal to the amount of
20 the fee imposed under subsection (d-6).
21     (d-7.1) Beginning July 1, 2004, any fee imposed by the
22 Board of Trustees of any Metro East Mass Transit District under
23 subsection (d-6) and all civil penalties that may be assessed
24 as an incident of the fees shall be collected and enforced by
25 the State Department of Revenue. Reference to "taxes" in this
26 Section shall be construed to apply to the administration,
27 payment, and remittance of all fees under this Section. For
28 purposes of any fee imposed under subsection (d-6), 4% of the
29 fee, penalty, and interest received by the Department in the
30 first 12 months that the fee is collected and enforced by the
31 Department and 2% of the fee, penalty, and interest following
32 the first 12 months shall be deposited into the Tax Compliance
33 and Administration Fund and shall be used by the Department,
34 subject to appropriation, to cover the costs of the Department.

 

 

09400HB2706ham001 - 47 - LRB094 03732 BDD 44274 a

1 No retailers' discount shall apply to any fee imposed under
2 subsection (d-6).
3     (d-8) No item of titled property shall be subject to both
4 the higher rate approved by referendum, as authorized under
5 subsection (d-5), and any fee imposed under subsection (d-6) or
6 (d-7).
7     (d-9) (Blank). If fees have been imposed under subsections
8 (d-6) and (d-7), the Board shall forward a copy of the
9 ordinance adopting such fees, which shall include all zip codes
10 in whole or in part within the boundaries of the district, to
11 the Secretary of State within thirty days. By the 25th of each
12 month, the Secretary of State shall subsequently provide the
13 Illinois Department of Revenue with a list of identifiable
14 retail transactions subject to the .25% rate occurring within
15 the zip codes which are in whole or in part within the
16 boundaries of the district and a list of title applications for
17 addresses within the boundaries of the district for the
18 previous month.
19     (d-10) (Blank). In the event that a retailer fails to pay
20 applicable fees within 30 days of the date of the transaction,
21 a penalty shall be assessed at the rate of 25% of the amount of
22 fees. Interest on both late fees and penalties shall be
23 assessed at the rate of 1% per month. All fees, penalties, and
24 attorney fees shall constitute a lien on the personal and real
25 property of the retailer.
26     (e) A certificate of registration issued by the State
27 Department of Revenue to a retailer under the Retailers'
28 Occupation Tax Act or under the Service Occupation Tax Act
29 shall permit the registrant to engage in a business that is
30 taxed under the tax imposed under paragraphs (b), (c) or (d) of
31 this Section and no additional registration shall be required
32 under the tax. A certificate issued under the Use Tax Act or
33 the Service Use Tax Act shall be applicable with regard to any
34 tax imposed under paragraph (c) of this Section.

 

 

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1     (f) (Blank). The Board may impose a replacement vehicle tax
2 of $50 on any passenger car, as defined in Section 1-157 of the
3 Illinois Vehicle Code, purchased within the district area by or
4 on behalf of an insurance company to replace a passenger car of
5 an insured person in settlement of a total loss claim. The tax
6 imposed may not become effective before the first day of the
7 month following the passage of the ordinance imposing the tax
8 and receipt of a certified copy of the ordinance by the
9 Department of Revenue. The Department of Revenue shall collect
10 the tax for the district in accordance with Sections 3-2002 and
11 3-2003 of the Illinois Vehicle Code.
12     The Department shall immediately pay over to the State
13 Treasurer, ex officio, as trustee, all taxes collected
14 hereunder. On or before the 25th day of each calendar month,
15 the Department shall prepare and certify to the Comptroller the
16 disbursement of stated sums of money to named districts, the
17 districts to be those from which retailers have paid taxes or
18 penalties hereunder to the Department during the second
19 preceding calendar month. The amount to be paid to each
20 district shall be the amount collected hereunder during the
21 second preceding calendar month by the Department, less any
22 amount determined by the Department to be necessary for the
23 payment of refunds. Within 10 days after receipt by the
24 Comptroller of the disbursement certification to the
25 districts, provided for in this Section to be given to the
26 Comptroller by the Department, the Comptroller shall cause the
27 orders to be drawn for the respective amounts in accordance
28 with the directions contained in the certification.
29     (g) Any ordinance imposing or discontinuing any tax under
30 this Section shall be adopted and a certified copy thereof
31 filed with the Department on or before June 1, whereupon the
32 Department of Revenue shall proceed to administer and enforce
33 this Section on behalf of the Metro East Mass Transit District
34 as of September 1 next following such adoption and filing.

 

 

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1 Beginning January 1, 1992, an ordinance or resolution imposing
2 or discontinuing the tax hereunder shall be adopted and a
3 certified copy thereof filed with the Department on or before
4 the first day of July, whereupon the Department shall proceed
5 to administer and enforce this Section as of the first day of
6 October next following such adoption and filing. Beginning
7 January 1, 1993, except as provided in subsection (d-5) of this
8 Section, an ordinance or resolution imposing or discontinuing
9 the tax hereunder shall be adopted and a certified copy thereof
10 filed with the Department on or before the first day of
11 October, whereupon the Department shall proceed to administer
12 and enforce this Section as of the first day of January next
13 following such adoption and filing, or, beginning January 1,
14 2004, on or before the first day of April, whereupon the
15 Department shall proceed to administer and enforce this Section
16 as of the first day of July next following the adoption and
17 filing.
18     (h) Except as provided in subsection (d-7.1), the State
19 Department of Revenue shall, upon collecting any taxes as
20 provided in this Section, pay the taxes over to the State
21 Treasurer as trustee for the District. The taxes shall be held
22 in a trust fund outside the State Treasury. On or before the
23 25th day of each calendar month, the State Department of
24 Revenue shall prepare and certify to the Comptroller of the
25 State of Illinois the amount to be paid to the District, which
26 shall be the then balance in the fund, less any amount
27 determined by the Department to be necessary for the payment of
28 refunds. Within 10 days after receipt by the Comptroller of the
29 certification of the amount to be paid to the District, the
30 Comptroller shall cause an order to be drawn for payment for
31 the amount in accordance with the direction in the
32 certification.
33 (Source: P.A. 93-590; eff. 1-1-04.)
 

 

 

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1     Section 99. Effective date. This Act takes effect upon
2 becoming law.".