Public Act 93-0032
SB1903 Enrolled LRB093 08682 RCE 08912 b
AN ACT concerning the State budget.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1
Section 1-1. Short title. This Act may be cited as the
FY2004 Budget Implementation (State Finance-Revenues) Act.
Section 1-5. Purpose. It is the purpose of this Act to
make changes relating to State Finance-Revenues that are
necessary to implement the State's FY2004 budget.
ARTICLE 50
Section 50-5. The State Finance Act is amended by
changing Sections 6p-2 and 8g and adding Sections 5.595,
8.42, 8h, and 8j as follows:
(30 ILCS 105/5.595 new)
Sec. 5.595. The Emergency Public Health Fund.
(30 ILCS 105/6p-2) (from Ch. 127, par. 142p2)
Sec. 6p-2. The Communications Revolving Fund shall be
initially financed by a transfer of funds from the General
Revenue Fund. Thereafter, all fees and other monies received
by the Department of Central Management Services in payment
for communications services rendered pursuant to the
Department of Central Management Services Law or sale of
surplus State communications equipment shall be paid into the
Communications Revolving Fund. Except as otherwise provided
in this Section, the money in this fund shall be used by the
Department of Central Management Services as reimbursement
for expenditures incurred in relation to communications
services.
On the effective date of this amendatory Act of the 93rd
General Assembly, or as soon as practicable thereafter, the
State Comptroller shall order transferred and the State
Treasurer shall transfer $3,000,000 from the Communications
Revolving Fund to the Emergency Public Health Fund to be used
for the purposes specified in Section 55.6a of the
Environmental Protection Act.
(Source: P.A. 91-239, eff. 1-1-00; 92-316, eff. 8-9-01.)
(30 ILCS 105/8.42 new)
Sec. 8.42. Interfund transfers. In order to address the
fiscal emergency resulting from shortfalls in revenue, the
following transfers are authorized from the designated funds
into the General Revenue Fund:
ROAD FUND....................................... $50,000,000
MOTOR FUEL TAX FUND............................. $1,535,000
GRADE CROSSING PROTECTION FUND.................. $6,500,000
ILLINOIS AGRICUTURAL LOAN GUARANTEE FUND........ $2,500,000
ILLINOIS FARMER AND AGRIBUSINESS
LOAN GUARANTEE FUND........................... $1,500,000
TRANSPORTATION REGULATORY FUND.................. $2,000,000
PARK AND CONSERVATION FUND...................... $1,000,000
DCFS CHILDREN'S SERVICES FUND................... $1,000,000
TOBACCO SETTLEMENT RECOVERY FUND................ $50,000
AGGREGATE OPERATIONS REGULATORY FUND............ $10,000
APPRAISAL ADMINISTRATION FUND................... $10,000
AUCTION REGULATION ADMINISTRATION FUND.......... $50,000
BANK AND TRUST COMPANY FUND..................... $640,000
CHILD LABOR AND DAY AND TEMPORARY
LABOR ENFORCEMENT FUND........................ $15,000
CHILD SUPPORT ADMINISTRATIVE FUND............... $170,000
COAL MINING REGULATORY FUND..................... $80,000
COMMUNITY WATER SUPPLY LABORATORY FUND.......... $500,000
COMPTROLLER'S ADMINISTRATIVE FUND............... $50,000
CREDIT UNION FUND............................... $500,000
CRIMINAL JUSTICE INFORMATION
SYSTEMS TRUST FUND............................ $300,000
DESIGN PROFESSIONALS ADMINISTRATION
AND INVESTIGATION FUND........................ $1,000,000
DIGITAL DIVIDE ELIMINATION
INFRASTRUCTURE FUND........................... $4,000,000
DRAM SHOP FUND.................................. $560,000
DRIVERS EDUCATION FUND.......................... $2,500,000
EMERGENCY PLANNING AND TRAINING FUND............ $50,000
ENERGY EFFICIENCY TRUST FUND.................... $1,000,000
EXPLOSIVES REGULATORY FUND...................... $4,000
FINANCIAL INSTITUTION FUND...................... $300,000
FIREARM OWNER'S NOTIFICATION FUND............... $110,000
FOOD AND DRUG SAFETY FUND....................... $500,000
GENERAL PROFESSIONS DEDICATED FUND.............. $1,000,000
HAZARDOUS WASTE FUND............................ $500,000
HORSE RACING FUND............................... $630,000
ILLINOIS GAMING LAW ENFORCEMENT FUND............ $200,000
ILLINOIS HISTORIC SITES FUND.................... $15,000
ILLINOIS SCHOOL ASBESTOS ABATEMENT FUND......... $400,000
ILLINOIS STANDARDBRED BREEDERS FUND............. $35,000
ILLINOIS STATE MEDICAL DISCIPLINARY FUND........ $1,500,000
ILLINOIS STATE PHARMACY DISCIPLINARY FUND....... $1,500,000
ILLINOIS TAX INCREMENT FUND..................... $20,000
INSURANCE FINANCIAL REGULATION FUND............. $920,000
LANDFILL CLOSURE AND POST-CLOSURE FUND.......... $250,000
MANDATORY ARBITRATION FUND...................... $2,000,000
MEDICAID FRAUD AND ABUSE PREVENTION FUND........ $80,000
MENTAL HEALTH FUND.............................. $1,000,000
NEW TECHNOLOGY RECOVERY FUND.................... $1,000,000
NUCLEAR SAFETY EMERGENCY PREPAREDNESS FUND...... $460,000
OPEN SPACE LANDS ACQUISITION
AND DEVELOPMENT FUND.......................... $1,510,000
PLUGGING AND RESTORATION FUND................... $120,000
PLUMBING LICENSURE AND PROGRAM FUND............. $400,000
PUBLIC HEALTH WATER PERMIT FUND................. $90,000
PUBLIC UTILITY FUND............................. $2,000,000
RADIATION PROTECTION FUND....................... $240,000
LOW-LEVEL RADIOACTIVE WASTE FACILITY
DEVELOPMENT AND OPERATION FUND................ $1,000,000
REAL ESTATE AUDIT FUND.......................... $50,000
REAL ESTATE LICENSE ADMINISTRATION FUND......... $750,000
REAL ESTATE RESEARCH AND EDUCATION FUND......... $30,000
REGISTERED CERTIFIED PUBLIC ACCOUNTANTS'
ADMINISTRATION AND DISCIPLINARY FUND.......... $1,000,000
RENEWABLE ENERGY RESOURCES TRUST FUND........... $3,000,000
SAVINGS AND RESIDENTIAL FINANCE
REGULATORY FUND............................... $850,000
SECURITIES AUDIT AND ENFORCEMENT FUND........... $2,000,000
STATE PARKS FUND................................ $593,000
STATE POLICE VEHICLE FUND....................... $15,000
TAX COMPLIANCE AND ADMINISTRATION FUND.......... $150,000
TOURISM PROMOTION FUND.......................... $5,000,000
TRAFFIC AND CRIMINAL CONVICTION
SURCHARGE FUND................................ $250,000
UNDERGROUND RESOURCES CONSERVATION
ENFORCEMENT FUND.............................. $100,000
UNDERGROUND STORAGE TANK FUND................... $12,100,000
ILLINOIS CAPITAL REVOLVING LOAN FUND............ $5,000,000
CONSERVATION 2000 FUND.......................... $15,000
DEATH CERTIFICATE SURCHARGE FUND................ $1,500,000
ENERGY ASSISTANCE CONTRIBUTION FUND............. $750,000
FAIR AND EXPOSITION FUND........................ $500,000
HOME INSPECTOR ADMINISTRATION FUND.............. $100,000
ILLINOIS AFFORDABLE HOUSING TRUST FUND.......... $5,000,000
LARGE BUSINESS ATTRACTION FUND.................. $500,000
SCHOOL TECHNOLOGY REVOLVING LOAN FUND........... $6,000,000
SOLID WASTE MANAGEMENT REVOLVING LOAN FUND...... $2,000,000
WIRELESS CARRIER REIMBURSEMENT FUND............. $2,000,000
EPA STATE PROJECTS TRUST FUND................... $150,000
ILLINOIS THOROUGHBRED
BREEDERS FUND................................. $160,000
FIRE PREVENTION FUND............................ $2,000,000
MOTOR VEHICLE THEFT
PREVENTION TRUST FUND......................... $250,000
CAPITAL DEVELOPMENT BOARD
REVOLVING FUND................................ $500,000
AUDIT EXPENSE FUND.............................. $1,000,000
OFF-HIGHWAY VEHICLE
TRAILS FUND................................... $100,000
CYCLE RIDER SAFETY
TRAINING FUND................................. $1,000,000
GANG CRIME WITNESS PROTECTION FUND.............. $46,000
MISSING AND EXPLOITED CHILDREN TRUST FUND....... $53,000
STATE POLICE VEHICLE FUND....................... $86,000
SEX OFFENDER REGISTRATION FUND.................. $21,000
STATE POLICE WIRELESS SERVICE
EMERGENCY FUND................................ $1,200,000
MEDICAID FRAUD AND ABUSE PREVENTION FUND........ $270,000
STATE CRIME LABORATORY FUND..................... $250,000
LEADS MAINTENANCE FUND.......................... $180,000
STATE POLICE DUI FUND........................... $100,000
PETROLEUM VIOLATION FUND........................ $2,000,000
All such transfers shall be made on July 1, 2003, or as
soon thereafter as practical. These transfers may be made
notwithstanding any other provision of law to the contrary.
(30 ILCS 105/8g)
Sec. 8g. Transfers from General Revenue Fund.
(a) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $10,000,000 from the
General Revenue Fund to the Motor Vehicle License Plate Fund
created by Senate Bill 1028 of the 91st General Assembly.
(b) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $25,000,000 from the
General Revenue Fund to the Fund for Illinois' Future created
by Senate Bill 1066 of the 91st General Assembly.
(c) In addition to any other transfers that may be
provided for by law, on August 30 of each fiscal year's
license period, the Illinois Liquor Control Commission shall
direct and the State Comptroller and State Treasurer shall
transfer from the General Revenue Fund to the Youth
Alcoholism and Substance Abuse Prevention Fund an amount
equal to the number of retail liquor licenses issued for that
fiscal year multiplied by $50.
(d) The payments to programs required under subsection
(d) of Section 28.1 of the Horse Racing Act of 1975 shall be
made, pursuant to appropriation, from the special funds
referred to in the statutes cited in that subsection, rather
than directly from the General Revenue Fund.
Beginning January 1, 2000, on the first day of each
month, or as soon as may be practical thereafter, the State
Comptroller shall direct and the State Treasurer shall
transfer from the General Revenue Fund to each of the special
funds from which payments are to be made under Section
28.1(d) of the Horse Racing Act of 1975 an amount equal to
1/12 of the annual amount required for those payments from
that special fund, which annual amount shall not exceed the
annual amount for those payments from that special fund for
the calendar year 1998. The special funds to which transfers
shall be made under this subsection (d) include, but are not
necessarily limited to, the Agricultural Premium Fund; the
Metropolitan Exposition Auditorium and Office Building Fund;
the Fair and Exposition Fund; the Standardbred Breeders Fund;
the Thoroughbred Breeders Fund; and the Illinois Veterans'
Rehabilitation Fund.
(e) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, but in no event later than June 30, 2000, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $15,000,000 from the General Revenue Fund
to the Fund for Illinois' Future.
(f) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, but in no event later than June 30, 2000, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $70,000,000 from the General Revenue Fund
to the Long-Term Care Provider Fund.
(f-1) In fiscal year 2002, in addition to any other
transfers that may be provided for by law, at the direction
of and upon notification from the Governor, the State
Comptroller shall direct and the State Treasurer shall
transfer amounts not exceeding a total of $160,000,000 from
the General Revenue Fund to the Long-Term Care Provider Fund.
(g) In addition to any other transfers that may be
provided for by law, on July 1, 2001, or as soon thereafter
as may be practical, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $1,200,000 from
the General Revenue Fund to the Violence Prevention Fund.
(h) In each of fiscal years 2002 through 2007, but not
thereafter, in addition to any other transfers that may be
provided for by law, the State Comptroller shall direct and
the State Treasurer shall transfer $5,000,000 from the
General Revenue Fund to the Tourism Promotion Fund.
(i) On or after July 1, 2001 and until May 1, 2002, in
addition to any other transfers that may be provided for by
law, at the direction of and upon notification from the
Governor, the State Comptroller shall direct and the State
Treasurer shall transfer amounts not exceeding a total of
$80,000,000 from the General Revenue Fund to the Tobacco
Settlement Recovery Fund. Any amounts so transferred shall
be re-transferred by the State Comptroller and the State
Treasurer from the Tobacco Settlement Recovery Fund to the
General Revenue Fund at the direction of and upon
notification from the Governor, but in any event on or before
June 30, 2002.
(i-1) On or after July 1, 2002 and until May 1, 2003, in
addition to any other transfers that may be provided for by
law, at the direction of and upon notification from the
Governor, the State Comptroller shall direct and the State
Treasurer shall transfer amounts not exceeding a total of
$80,000,000 from the General Revenue Fund to the Tobacco
Settlement Recovery Fund. Any amounts so transferred shall
be re-transferred by the State Comptroller and the State
Treasurer from the Tobacco Settlement Recovery Fund to the
General Revenue Fund at the direction of and upon
notification from the Governor, but in any event on or before
June 30, 2003.
(j) On or after July 1, 2001 and no later than June 30,
2002, in addition to any other transfers that may be provided
for by law, at the direction of and upon notification from
the Governor, the State Comptroller shall direct and the
State Treasurer shall transfer amounts not to exceed the
following sums into the Statistical Services Revolving Fund:
From the General Revenue Fund............... $8,450,000
From the Public Utility Fund................ 1,700,000
From the Transportation Regulatory Fund..... 2,650,000
From the Title III Social Security and
Employment Fund........................... 3,700,000
From the Professions Indirect Cost Fund..... 4,050,000
From the Underground Storage Tank Fund...... 550,000
From the Agricultural Premium Fund.......... 750,000
From the State Pensions Fund................ 200,000
From the Road Fund.......................... 2,000,000
From the Health Facilities
Planning Fund............................. 1,000,000
From the Savings and Residential Finance
Regulatory Fund........................... 130,800
From the Appraisal Administration Fund...... 28,600
From the Pawnbroker Regulation Fund......... 3,600
From the Auction Regulation
Administration Fund....................... 35,800
From the Bank and Trust Company Fund........ 634,800
From the Real Estate License
Administration Fund....................... 313,600
(k) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 92nd General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $2,000,000 from the
General Revenue Fund to the Teachers Health Insurance
Security Fund.
(k-1) In addition to any other transfers that may be
provided for by law, on July 1, 2002, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $2,000,000 from
the General Revenue Fund to the Teachers Health Insurance
Security Fund.
(k-2) In addition to any other transfers that may be
provided for by law, on July 1, 2003, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $2,000,000 from
the General Revenue Fund to the Teachers Health Insurance
Security Fund.
(k-3) On or after July 1, 2002 and no later than June
30, 2003, in addition to any other transfers that may be
provided for by law, at the direction of and upon
notification from the Governor, the State Comptroller shall
direct and the State Treasurer shall transfer amounts not to
exceed the following sums into the Statistical Services
Revolving Fund:
Appraisal Administration Fund............... $150,000
General Revenue Fund........................ 10,440,000
Savings and Residential Finance
Regulatory Fund........................ 200,000
State Pensions Fund......................... 100,000
Bank and Trust Company Fund................. 100,000
Professions Indirect Cost Fund.............. 3,400,000
Public Utility Fund......................... 2,081,200
Real Estate License Administration Fund..... 150,000
Title III Social Security and
Employment Fund........................ 1,000,000
Transportation Regulatory Fund.............. 3,052,100
Underground Storage Tank Fund............... 50,000
(l) In addition to any other transfers that may be
provided for by law, on July 1, 2002, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $3,000,000 from
the General Revenue Fund to the Presidential Library and
Museum Operating Fund.
(m) In addition to any other transfers that may be
provided for by law, on July 1, 2002, or as soon thereafter
as may be practical, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $1,200,000 from
the General Revenue Fund to the Violence Prevention Fund.
(n) In addition to any other transfers that may be
provided for by law, on July 1, 2003, or as soon thereafter
as may be practical, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $6,800,000 from
the General Revenue Fund to the DHS Recoveries Trust Fund.
(o) On or after July 1, 2003, and no later than June 30,
2004, in addition to any other transfers that may be provided
for by law, at the direction of and upon notification from
the Governor, the State Comptroller shall direct and the
State Treasurer shall transfer amounts not to exceed the
following sums into the Vehicle Inspection Fund:
From the Underground Storage Tank Fund .....$35,000,000.
(p) On or after July 1, 2003 and until May 1, 2004, in
addition to any other transfers that may be provided for by
law, at the direction of and upon notification from the
Governor, the State Comptroller shall direct and the State
Treasurer shall transfer amounts not exceeding a total of
$80,000,000 from the General Revenue Fund to the Tobacco
Settlement Recovery Fund. Any amounts so transferred shall be
re-transferred from the Tobacco Settlement Recovery Fund to
the General Revenue Fund at the direction of and upon
notification from the Governor, but in any event on or before
June 30, 2004.
(q) In addition to any other transfers that may be
provided for by law, on July 1, 2003, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $5,000,000 from
the General Revenue Fund to the Illinois Military Family
Relief Fund.
(r) In addition to any other transfers that may be
provided for by law, on July 1, 2003, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $1,922,000 from
the General Revenue Fund to the Presidential Library and
Museum Operating Fund.
(s) In addition to any other transfers that may be
provided for by law, on or after July 1, 2003, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $4,800,000 from the Statewide Economic
Development Fund to the General Revenue Fund.
(t) In addition to any other transfers that may be
provided for by law, on or after July 1, 2003, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $50,000,000 from the General Revenue Fund
to the Budget Stabilization Fund.
(Source: P.A. 91-25, eff. 6-9-99; 91-704, eff. 5-17-00;
92-11, eff. 6-11-01; 92-505, eff. 12-20-01; 92-600, eff.
6-28-02.)
(30 ILCS 105/8h new)
Sec. 8h. Transfers to General Revenue Fund.
Notwithstanding any other State law to the contrary, the
Director of the Bureau of the Budget may from time to time
direct the State Treasurer and Comptroller to transfer a
specified sum from any fund held by the State Treasurer to
the General Revenue Fund in order to help defray the State's
operating costs for the fiscal year. The total transfer
under this Section from any fund in any fiscal year shall not
exceed the lesser of 8% of the revenues to be deposited into
the fund during that year or 25% of the beginning balance in
the fund. No transfer may be made from a fund under this
Section that would have the effect of reducing the available
balance in the fund to an amount less than the amount
remaining unexpended and unreserved from the total
appropriation from that fund for that fiscal year. This
Section does not apply to any funds that are restricted by
federal law to a specific use or to any funds in the Motor
Fuel Tax Fund. Notwithstanding any other provision of this
Section, the total transfer under this Section from the Road
Fund or the State Construction Account Fund shall not exceed
5% of the revenues to be deposited into the fund during that
year.
In determining the available balance in a fund, the
Director of the Bureau of the Budget may include receipts,
transfers into the fund, and other resources anticipated to
be available in the fund in that fiscal year.
The State Treasurer and Comptroller shall transfer the
amounts designated under this Section as soon as may be
practicable after receiving the direction to transfer from
the Director of the Bureau of the Budget.
(30 ILCS 105/8j new)
Sec. 8j. Allocation and transfer of fee receipts to
General Revenue Fund. Notwithstanding any other law to the
contrary, additional amounts generated by the new and
increased fees created or authorized by this amendatory Act
of the 93rd General Assembly and by Senate Bill 774, Senate
Bill 841, and Senate Bill 842 of the 93rd General Assembly,
if those bills become law, shall be allocated between the
fund otherwise entitled to receive the fee and the General
Revenue Fund by the Bureau of the Budget. In determining the
amount of the allocation to the General Revenue Fund, the
Director of the Bureau of the Budget shall calculate whether
the available resources in the fund are sufficient to satisfy
the unexpended and unreserved appropriations from the fund
for the fiscal year.
In calculating the available resources in a fund, the
Director of the Bureau of the Budget may include receipts,
transfers into the fund, and other resources anticipated to
be available in the fund in that fiscal year.
Upon determining the amount of an allocation to the
General Revenue Fund under this Section, the Director of the
Bureau of the Budget may direct the State Treasurer and
Comptroller to transfer the amount of that allocation from
the fund in which the fee amounts have been deposited to the
General Revenue Fund; provided, however, that the Director
shall not direct the transfer of any amount that would have
the effect of reducing the available resources in the fund to
an amount less than the amount remaining unexpended and
unreserved from the total appropriation from that fund for
that fiscal year.
The State Treasurer and Comptroller shall transfer the
amounts designated under this Section as soon as may be
practicable after receiving the direction to transfer from
the Director of the Bureau of the Budget.
Section 50-10. The Illinois Income Tax Act is amended by
changing Section 901 as follows:
(35 ILCS 5/901) (from Ch. 120, par. 9-901)
Sec. 901. Collection Authority.
(a) In general.
The Department shall collect the taxes imposed by this
Act. The Department shall collect certified past due child
support amounts under Section 2505-650 of the Department of
Revenue Law (20 ILCS 2505/2505-650). Except as provided in
subsections (c) and (e) of this Section, money collected
pursuant to subsections (a) and (b) of Section 201 of this
Act shall be paid into the General Revenue Fund in the State
treasury; money collected pursuant to subsections (c) and (d)
of Section 201 of this Act shall be paid into the Personal
Property Tax Replacement Fund, a special fund in the State
Treasury; and money collected under Section 2505-650 of the
Department of Revenue Law (20 ILCS 2505/2505-650) shall be
paid into the Child Support Enforcement Trust Fund, a special
fund outside the State Treasury, or to the State Disbursement
Unit established under Section 10-26 of the Illinois Public
Aid Code, as directed by the Department of Public Aid.
(b) Local Governmental Distributive Fund.
Beginning August 1, 1969, and continuing through June 30,
1994, the Treasurer shall transfer each month from the
General Revenue Fund to a special fund in the State treasury,
to be known as the "Local Government Distributive Fund", an
amount equal to 1/12 of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
during the preceding month. Beginning July 1, 1994, and
continuing through June 30, 1995, the Treasurer shall
transfer each month from the General Revenue Fund to the
Local Government Distributive Fund an amount equal to 1/11 of
the net revenue realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act during the preceding
month. Beginning July 1, 1995, the Treasurer shall transfer
each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the net of
(i) 1/10 of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act during the preceding month (ii) minus, beginning July
1, 2003 and ending June 30, 2004, $6,666,666, and beginning
July 1, 2004, zero. Net revenue realized for a month shall be
defined as the revenue from the tax imposed by subsections
(a) and (b) of Section 201 of this Act which is deposited in
the General Revenue Fund, the Educational Assistance Fund and
the Income Tax Surcharge Local Government Distributive Fund
during the month minus the amount paid out of the General
Revenue Fund in State warrants during that same month as
refunds to taxpayers for overpayment of liability under the
tax imposed by subsections (a) and (b) of Section 201 of this
Act.
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter,
the Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(1), (2),
and (3), of Section 201 of this Act into a fund in the
State treasury known as the Income Tax Refund Fund. The
Department shall deposit 6% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999 through 2001,
the Annual Percentage shall be 7.1%. For fiscal year
2003, the Annual Percentage shall be 8%. For fiscal year
2004, the Annual Percentage shall be 11.7%. For all
other fiscal years, the Annual Percentage shall be
calculated as a fraction, the numerator of which shall be
the amount of refunds approved for payment by the
Department during the preceding fiscal year as a result
of overpayment of tax liability under subsections (a) and
(b)(1), (2), and (3) of Section 201 of this Act plus the
amount of such refunds remaining approved but unpaid at
the end of the preceding fiscal year, minus the amounts
transferred into the Income Tax Refund Fund from the
Tobacco Settlement Recovery Fund, and the denominator of
which shall be the amounts which will be collected
pursuant to subsections (a) and (b)(1), (2), and (3) of
Section 201 of this Act during the preceding fiscal year;
except that in State fiscal year 2002, the Annual
Percentage shall in no event exceed 7.6%. The Director
of Revenue shall certify the Annual Percentage to the
Comptroller on the last business day of the fiscal year
immediately preceding the fiscal year for which it is to
be effective.
(2) Beginning on January 1, 1989 and thereafter,
the Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(6), (7),
and (8), (c) and (d) of Section 201 of this Act into a
fund in the State treasury known as the Income Tax Refund
Fund. The Department shall deposit 18% of such amounts
during the period beginning January 1, 1989 and ending on
June 30, 1989. Beginning with State fiscal year 1990 and
for each fiscal year thereafter, the percentage deposited
into the Income Tax Refund Fund during a fiscal year
shall be the Annual Percentage. For fiscal years 1999,
2000, and 2001, the Annual Percentage shall be 19%. For
fiscal year 2003, the Annual Percentage shall be 27%.
For fiscal year 2004, the Annual Percentage shall be 32%.
For all other fiscal years, the Annual Percentage shall
be calculated as a fraction, the numerator of which shall
be the amount of refunds approved for payment by the
Department during the preceding fiscal year as a result
of overpayment of tax liability under subsections (a) and
(b)(6), (7), and (8), (c) and (d) of Section 201 of this
Act plus the amount of such refunds remaining approved
but unpaid at the end of the preceding fiscal year, and
the denominator of which shall be the amounts which will
be collected pursuant to subsections (a) and (b)(6), (7),
and (8), (c) and (d) of Section 201 of this Act during
the preceding fiscal year; except that in State fiscal
year 2002, the Annual Percentage shall in no event exceed
23%. The Director of Revenue shall certify the Annual
Percentage to the Comptroller on the last business day of
the fiscal year immediately preceding the fiscal year for
which it is to be effective.
(3) The Comptroller shall order transferred and the
Treasurer shall transfer from the Tobacco Settlement
Recovery Fund to the Income Tax Refund Fund (i)
$35,000,000 in January, 2001, (ii) $35,000,000 in
January, 2002, and (iii) $35,000,000 in January, 2003.
(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income
Tax Refund Fund shall be expended exclusively for the
purpose of paying refunds resulting from overpayment of
tax liability under Section 201 of this Act, for paying
rebates under Section 208.1 in the event that the amounts
in the Homeowners' Tax Relief Fund are insufficient for
that purpose, and for making transfers pursuant to this
subsection (d).
(2) The Director shall order payment of refunds
resulting from overpayment of tax liability under Section
201 of this Act from the Income Tax Refund Fund only to
the extent that amounts collected pursuant to Section 201
of this Act and transfers pursuant to this subsection (d)
and item (3) of subsection (c) have been deposited and
retained in the Fund.
(3) As soon as possible after the end of each
fiscal year, the Director shall order transferred and the
State Treasurer and State Comptroller shall transfer from
the Income Tax Refund Fund to the Personal Property Tax
Replacement Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount
collected pursuant to subsections (c) and (d) of Section
201 of this Act deposited into the Income Tax Refund Fund
during the fiscal year over the amount of refunds
resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year.
(4) As soon as possible after the end of each
fiscal year, the Director shall order transferred and the
State Treasurer and State Comptroller shall transfer from
the Personal Property Tax Replacement Fund to the Income
Tax Refund Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount of
refunds resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year
over the amount collected pursuant to subsections (c) and
(d) of Section 201 of this Act deposited into the Income
Tax Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal
year 1999 and of each fiscal year thereafter, the
Director shall order transferred and the State Treasurer
and State Comptroller shall transfer from the Income Tax
Refund Fund to the General Revenue Fund any surplus
remaining in the Income Tax Refund Fund as of the end of
such fiscal year; excluding for fiscal years 2000, 2001,
and 2002 amounts attributable to transfers under item (3)
of subsection (c) less refunds resulting from the earned
income tax credit.
(5) This Act shall constitute an irrevocable and
continuing appropriation from the Income Tax Refund Fund
for the purpose of paying refunds upon the order of the
Director in accordance with the provisions of this
Section.
(e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund.
On July 1, 1991, and thereafter, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 7.3% into the Education Assistance
Fund in the State Treasury. Beginning July 1, 1991, and
continuing through January 31, 1993, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, minus deposits into the Income Tax
Refund Fund, the Department shall deposit 3.0% into the
Income Tax Surcharge Local Government Distributive Fund in
the State Treasury. Beginning February 1, 1993 and
continuing through June 30, 1993, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, minus deposits into the Income Tax
Refund Fund, the Department shall deposit 4.4% into the
Income Tax Surcharge Local Government Distributive Fund in
the State Treasury. Beginning July 1, 1993, and continuing
through June 30, 1994, of the amounts collected under
subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, the Department
shall deposit 1.475% into the Income Tax Surcharge Local
Government Distributive Fund in the State Treasury.
(Source: P.A. 91-212, eff. 7-20-99; 91-239, eff. 1-1-00;
91-700, eff. 5-11-00; 91-704, eff. 7-1-00; 91-712, eff.
7-1-00; 92-11, eff. 6-11-01; 92-16, eff. 6-28-01; 92-600,
eff. 6-28-02.)
Section 50-15. The Retailers' Occupation Tax Act is
amended by changing Section 2d as follows:
(35 ILCS 120/2d) (from Ch. 120, par. 441d)
Sec. 2d. Tax prepayment by motor fuel retailer. Any
person engaged in the business of selling motor fuel at
retail, as defined in the Motor Fuel Tax Law, and who is not
a licensed distributor or supplier, as defined in the Motor
Fuel Tax Law, shall prepay to his or her distributor,
supplier, or other reseller of motor fuel a portion of the
tax imposed by this Act if the distributor, supplier, or
other reseller of motor fuel is registered under Section 2a
or Section 2c of this Act. The prepayment requirement
provided for in this Section does not apply to liquid propane
gas.
Beginning on July 1, 2000 and through December 31, 2000,
the Retailers' Occupation Tax paid to the distributor,
supplier, or other reseller shall be an amount equal to $0.01
per gallon of the motor fuel, except gasohol as defined in
Section 2-10 of this Act which shall be an amount equal to
$0.01 per gallon, purchased from the distributor, supplier,
or other reseller.
Before July 1, 2000 and then beginning on January 1, 2001
and through June 30, 2003 thereafter, the Retailers'
Occupation Tax paid to the distributor, supplier, or other
reseller shall be an amount equal to $0.04 per gallon of the
motor fuel, except gasohol as defined in Section 2-10 of this
Act which shall be an amount equal to $0.03 per gallon,
purchased from the distributor, supplier, or other reseller.
Beginning July 1, 2003 and thereafter, the Retailers'
Occupation Tax paid to the distributor, supplier, or other
reseller shall be an amount equal to $0.06 per gallon of the
motor fuel, except gasohol as defined in Section 2-10 of this
Act which shall be an amount equal to $0.05 per gallon,
purchased from the distributor, supplier, or other reseller.
Any person engaged in the business of selling motor fuel
at retail shall be entitled to a credit against tax due under
this Act in an amount equal to the tax paid to the
distributor, supplier, or other reseller.
Every distributor, supplier, or other reseller registered
as provided in Section 2a or Section 2c of this Act shall
remit the prepaid tax on all motor fuel that is due from any
person engaged in the business of selling at retail motor
fuel with the returns filed under Section 2f or Section 3 of
this Act, but the vendors discount provided in Section 3
shall not apply to the amount of prepaid tax that is
remitted. Any distributor or supplier who fails to properly
collect and remit the tax shall be liable for the tax. For
purposes of this Section, the prepaid tax is due on invoiced
gallons sold during a month by the 20th day of the following
month.
(Source: P.A. 91-872, eff. 7-1-00.)
Section 50-35. The Motor Fuel Tax Law is amended by
changing Sections 2b, 6, 6a, and 8 as follows:
(35 ILCS 505/2b) (from Ch. 120, par. 418b)
Sec. 2b. In addition to the tax collection and reporting
responsibilities imposed elsewhere in this Act, a person who
is required to pay the tax imposed by Section 2a of this Act
shall pay the tax to the Department by return showing all
fuel purchased, acquired or received and sold, distributed or
used during the preceding calendar month including losses of
fuel as the result of evaporation or shrinkage due to
temperature variations, and such other reasonable information
as the Department may require. Losses of fuel as the result
of evaporation or shrinkage due to temperature variations may
not exceed 1% of the total gallons in storage at the
beginning of the month, plus the receipts of gallonage during
the month, minus the gallonage remaining in storage at the
end of the month. Any loss reported that is in excess of
this amount shall be subject to the tax imposed by Section 2a
of this Law. On and after July 1, 2001, for each 6-month
period January through June, net losses of fuel (for each
category of fuel that is required to be reported on a return)
as the result of evaporation or shrinkage due to temperature
variations may not exceed 1% of the total gallons in storage
at the beginning of each January, plus the receipts of
gallonage each January through June, minus the gallonage
remaining in storage at the end of each June. On and after
July 1, 2001, for each 6-month period July through December,
net losses of fuel (for each category of fuel that is
required to be reported on a return) as the result of
evaporation or shrinkage due to temperature variations may
not exceed 1% of the total gallons in storage at the
beginning of each July, plus the receipts of gallonage each
July through December, minus the gallonage remaining in
storage at the end of each December. Any net loss reported
that is in excess of this amount shall be subject to the tax
imposed by Section 2a of this Law. For purposes of this
Section, "net loss" means the number of gallons gained
through temperature variations minus the number of gallons
lost through temperature variations or evaporation for each
of the respective 6-month periods.
The return shall be prescribed by the Department and
shall be filed between the 1st and 20th days of each calendar
month. The Department may, in its discretion, combine the
returns filed under this Section, Section 5, and Section 5a
of this Act. The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
taxpayer. If the return is filed timely, the seller shall
take a discount of 2% through June 30, 2003 and 1.75%
thereafter 2% which is allowed to reimburse the seller for
the expenses incurred in keeping records, preparing and
filing returns, collecting and remitting the tax and
supplying data to the Department on request. The 2% discount,
however, shall be applicable only to the amount of payment
which accompanies a return that is filed timely in accordance
with this Section.
(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
(35 ILCS 505/6) (from Ch. 120, par. 422)
Sec. 6. Collection of tax; distributors. A distributor
who sells or distributes any motor fuel, which he is required
by Section 5 to report to the Department when filing a
return, shall (except as hereinafter provided) collect at the
time of such sale and distribution, the amount of tax imposed
under this Act on all such motor fuel sold and distributed,
and at the time of making a return, the distributor shall pay
to the Department the amount so collected less a discount of
2% through June 30, 2003 and 1.75% thereafter 2% which is
allowed to reimburse the distributor for the expenses
incurred in keeping records, preparing and filing returns,
collecting and remitting the tax and supplying data to the
Department on request, and shall also pay to the Department
an amount equal to the amount that would be collectible as a
tax in the event of a sale thereof on all such motor fuel
used by said distributor during the period covered by the
return. However, no payment shall be made based upon dyed
diesel fuel used by the distributor for non-highway purposes.
The 2% discount shall only be applicable to the amount of tax
payment which accompanies a return which is filed timely in
accordance with Section 5 of this Act. In each subsequent
sale of motor fuel on which the amount of tax imposed under
this Act has been collected as provided in this Section, the
amount so collected shall be added to the selling price, so
that the amount of tax is paid ultimately by the user of the
motor fuel. However, no collection or payment shall be made
in the case of the sale or use of any motor fuel to the
extent to which such sale or use of motor fuel may not,
under the constitution and statutes of the United States, be
made the subject of taxation by this State. A person whose
license to act as a distributor of fuel has been revoked
shall, at the time of making a return, also pay to the
Department an amount equal to the amount that would be
collectible as a tax in the event of a sale thereof on all
motor fuel, which he is required by the second paragraph of
Section 5 to report to the Department in making a return, and
which he had on hand on the date on which the license was
revoked, and with respect to which no tax had been previously
paid under this Act.
A distributor may make tax free sales of motor fuel, with
respect to which he is otherwise required to collect the tax,
when the motor fuel is delivered from a dispensing facility
that has withdrawal facilities capable of dispensing motor
fuel into the fuel supply tanks of motor vehicles only as
specified in the following items 3, 4, and 5. A distributor
may make tax-free sales of motor fuel, with respect to which
he is otherwise required to collect the tax, when the motor
fuel is delivered from other facilities only as specified in
the following items 1 through 7.
1. When the sale is made to a person holding a
valid unrevoked license as a distributor, by making a
specific notation thereof on invoices or sales slip
covering each sale.
2. When the sale is made with delivery to a
purchaser outside of this State.
3. When the sale is made to the Federal Government
or its instrumentalities.
4. When the sale is made to a municipal corporation
owning and operating a local transportation system for
public service in this State when an official certificate
of exemption is obtained in lieu of the tax.
5. When the sale is made to a privately owned
public utility owning and operating 2 axle vehicles
designed and used for transporting more than 7
passengers, which vehicles are used as common carriers in
general transportation of passengers, are not devoted to
any specialized purpose and are operated entirely within
the territorial limits of a single municipality or of any
group of contiguous municipalities, or in a close radius
thereof, and the operations of which are subject to the
regulations of the Illinois Commerce Commission, when an
official certificate of exemption is obtained in lieu of
the tax.
6. When a sale of special fuel is made to a person
holding a valid, unrevoked license as a supplier, by
making a specific notation thereof on the invoice or
sales slip covering each such sale.
7. When a sale of special fuel is made to someone
other than a licensed distributor or a licensed supplier
for a use other than in motor vehicles, by making a
specific notation thereof on the invoice or sales slip
covering such sale and obtaining such supporting
documentation as may be required by the Department. The
distributor shall obtain and keep the supporting
documentation in such form as the Department may require
by rule.
8. (Blank).
All special fuel sold or used for non-highway purposes
must have a dye added in accordance with Section 4d of this
Law.
All suits or other proceedings brought for the purpose of
recovering any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of the
Department.
(Source: P.A. 91-173, eff. 1-1-00.)
(35 ILCS 505/6a) (from Ch. 120, par. 422a)
Sec. 6a. Collection of tax; suppliers. A supplier, other
than a licensed distributor, who sells or distributes any
special fuel, which he is required by Section 5a to report to
the Department when filing a return, shall (except as
hereinafter provided) collect at the time of such sale and
distribution, the amount of tax imposed under this Act on all
such special fuel sold and distributed, and at the time of
making a return, the supplier shall pay to the Department the
amount so collected less a discount of 2% through June 30,
2003 and 1.75% thereafter 2% which is allowed to reimburse
the supplier for the expenses incurred in keeping records,
preparing and filing returns, collecting and remitting the
tax and supplying data to the Department on request, and
shall also pay to the Department an amount equal to the
amount that would be collectible as a tax in the event of a
sale thereof on all such special fuel used by said supplier
during the period covered by the return. However, no payment
shall be made based upon dyed diesel fuel used by said
supplier for non-highway purposes. The 2% discount shall only
be applicable to the amount of tax payment which accompanies
a return which is filed timely in accordance with Section
5(a) of this Act. In each subsequent sale of special fuel on
which the amount of tax imposed under this Act has been
collected as provided in this Section, the amount so
collected shall be added to the selling price, so that the
amount of tax is paid ultimately by the user of the special
fuel. However, no collection or payment shall be made in the
case of the sale or use of any special fuel to the extent to
which such sale or use of motor fuel may not, under the
Constitution and statutes of the United States, be made the
subject of taxation by this State.
A person whose license to act as supplier of special fuel
has been revoked shall, at the time of making a return, also
pay to the Department an amount equal to the amount that
would be collectible as a tax in the event of a sale thereof
on all special fuel, which he is required by the 1st
paragraph of Section 5a to report to the Department in making
a return.
A supplier may make tax-free sales of special fuel, with
respect to which he is otherwise required to collect the tax,
when the motor fuel is delivered from a dispensing facility
that has withdrawal facilities capable of dispensing special
fuel into the fuel supply tanks of motor vehicles only as
specified in the following items 1, 2, and 3. A supplier may
make tax-free sales of special fuel, with respect to which he
is otherwise required to collect the tax, when the special
fuel is delivered from other facilities only as specified in
the following items 1 through 7.
1. When the sale is made to the federal government
or its instrumentalities.
2. When the sale is made to a municipal corporation
owning and operating a local transportation system for
public service in this State when an official certificate
of exemption is obtained in lieu of the tax.
3. When the sale is made to a privately owned
public utility owning and operating 2 axle vehicles
designed and used for transporting more than 7
passengers, which vehicles are used as common carriers in
general transportation of passengers, are not devoted to
any specialized purpose and are operated entirely within
the territorial limits of a single municipality or of any
group of contiguous municipalities, or in a close radius
thereof, and the operations of which are subject to the
regulations of the Illinois Commerce Commission, when an
official certificate of exemption is obtained in lieu of
the tax.
4. When a sale of special fuel is made to a person
holding a valid unrevoked license as a supplier or a
distributor by making a specific notation thereof on
invoice or sales slip covering each such sale.
5. When a sale of special fuel is made to someone
other than a licensed distributor or licensed supplier
for a use other than in motor vehicles, by making a
specific notation thereof on the invoice or sales slip
covering such sale and obtaining such supporting
documentation as may be required by the Department. The
supplier shall obtain and keep the supporting
documentation in such form as the Department may require
by rule.
6. (Blank).
7. When a sale of special fuel is made to a person
where delivery is made outside of this State.
All special fuel sold or used for non-highway purposes
must have a dye added in accordance with Section 4d of this
Law.
All suits or other proceedings brought for the purpose of
recovering any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of the
Department.
(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
(35 ILCS 505/8) (from Ch. 120, par. 424)
Sec. 8. Except as provided in Section 8a, subdivision
(h)(1) of Section 12a, Section 13a.6, and items 13, 14, 15,
and 16 of Section 15, all money received by the Department
under this Act, including payments made to the Department by
member jurisdictions participating in the International Fuel
Tax Agreement, shall be deposited in a special fund in the
State treasury, to be known as the "Motor Fuel Tax Fund", and
shall be used as follows:
(a) 2 1/2 cents per gallon of the tax collected on
special fuel under paragraph (b) of Section 2 and Section 13a
of this Act shall be transferred to the State Construction
Account Fund in the State Treasury;
(b) $420,000 shall be transferred each month to the
State Boating Act Fund to be used by the Department of
Natural Resources for the purposes specified in Article X of
the Boat Registration and Safety Act;
(c) $2,250,000 shall be transferred each month to the
Grade Crossing Protection Fund to be used as follows: not
less than $6,000,000 each fiscal year shall be used for the
construction or reconstruction of rail highway grade
separation structures; beginning with fiscal year 1997 and
ending in fiscal year 2000, $1,500,000, beginning with fiscal
year 2001 and ending in fiscal year 2003, $2,250,000, and
$750,000 in fiscal year 2004 and each fiscal year thereafter
shall be transferred to the Transportation Regulatory Fund
and shall be accounted for as part of the rail carrier
portion of such funds and shall be used to pay the cost of
administration of the Illinois Commerce Commission's railroad
safety program in connection with its duties under subsection
(3) of Section 18c-7401 of the Illinois Vehicle Code, with
the remainder to be used by the Department of Transportation
upon order of the Illinois Commerce Commission, to pay that
part of the cost apportioned by such Commission to the State
to cover the interest of the public in the use of highways,
roads, streets, or pedestrian walkways in the county highway
system, township and district road system, or municipal
street system as defined in the Illinois Highway Code, as the
same may from time to time be amended, for separation of
grades, for installation, construction or reconstruction of
crossing protection or reconstruction, alteration, relocation
including construction or improvement of any existing highway
necessary for access to property or improvement of any grade
crossing including the necessary highway approaches thereto
of any railroad across the highway or public road, or for the
installation, construction, reconstruction, or maintenance of
a pedestrian walkway over or under a railroad right-of-way,
as provided for in and in accordance with Section 18c-7401 of
the Illinois Vehicle Code. The Commission shall not order
more than $2,000,000 per year in Grade Crossing Protection
Fund moneys for pedestrian walkways. In entering orders for
projects for which payments from the Grade Crossing
Protection Fund will be made, the Commission shall account
for expenditures authorized by the orders on a cash rather
than an accrual basis. For purposes of this requirement an
"accrual basis" assumes that the total cost of the project is
expended in the fiscal year in which the order is entered,
while a "cash basis" allocates the cost of the project among
fiscal years as expenditures are actually made. To meet the
requirements of this subsection, the Illinois Commerce
Commission shall develop annual and 5-year project plans of
rail crossing capital improvements that will be paid for with
moneys from the Grade Crossing Protection Fund. The annual
project plan shall identify projects for the succeeding
fiscal year and the 5-year project plan shall identify
projects for the 5 directly succeeding fiscal years. The
Commission shall submit the annual and 5-year project plans
for this Fund to the Governor, the President of the Senate,
the Senate Minority Leader, the Speaker of the House of
Representatives, and the Minority Leader of the House of
Representatives on the first Wednesday in April of each year;
(d) of the amount remaining after allocations provided
for in subsections (a), (b) and (c), a sufficient amount
shall be reserved to pay all of the following:
(1) the costs of the Department of Revenue in
administering this Act;
(2) the costs of the Department of Transportation
in performing its duties imposed by the Illinois Highway
Code for supervising the use of motor fuel tax funds
apportioned to municipalities, counties and road
districts;
(3) refunds provided for in Section 13 of this Act
and under the terms of the International Fuel Tax
Agreement referenced in Section 14a;
(4) from October 1, 1985 until June 30, 1994, the
administration of the Vehicle Emissions Inspection Law,
which amount shall be certified monthly by the
Environmental Protection Agency to the State Comptroller
and shall promptly be transferred by the State
Comptroller and Treasurer from the Motor Fuel Tax Fund to
the Vehicle Inspection Fund, and for the period July 1,
1994 through June 30, 2000, one-twelfth of $25,000,000
each month, and for the period July 1, 2000 through June
30, 2003 2006, one-twelfth of $30,000,000 each month,
and $15,000,000 on July 1, 2003, and $15,000,000 on
January 1 and $15,000,000 on July 1 of each calendar year
for the period January 1, 2004 through June 30, 2006, for
the administration of the Vehicle Emissions Inspection
Law of 1995, to be transferred by the State Comptroller
and Treasurer from the Motor Fuel Tax Fund into the
Vehicle Inspection Fund;
(5) amounts ordered paid by the Court of Claims;
and
(6) payment of motor fuel use taxes due to member
jurisdictions under the terms of the International Fuel
Tax Agreement. The Department shall certify these
amounts to the Comptroller by the 15th day of each month;
the Comptroller shall cause orders to be drawn for such
amounts, and the Treasurer shall administer those amounts
on or before the last day of each month;
(e) after allocations for the purposes set forth in
subsections (a), (b), (c) and (d), the remaining amount shall
be apportioned as follows:
(1) Until January 1, 2000, 58.4%, and beginning
January 1, 2000, 45.6% shall be deposited as follows:
(A) 37% into the State Construction Account
Fund, and
(B) 63% into the Road Fund, $1,250,000 of
which shall be reserved each month for the
Department of Transportation to be used in
accordance with the provisions of Sections 6-901
through 6-906 of the Illinois Highway Code;
(2) Until January 1, 2000, 41.6%, and beginning
January 1, 2000, 54.4% shall be transferred to the
Department of Transportation to be distributed as
follows:
(A) 49.10% to the municipalities of the State,
(B) 16.74% to the counties of the State having
1,000,000 or more inhabitants,
(C) 18.27% to the counties of the State having
less than 1,000,000 inhabitants,
(D) 15.89% to the road districts of the State.
As soon as may be after the first day of each month the
Department of Transportation shall allot to each municipality
its share of the amount apportioned to the several
municipalities which shall be in proportion to the population
of such municipalities as determined by the last preceding
municipal census if conducted by the Federal Government or
Federal census. If territory is annexed to any municipality
subsequent to the time of the last preceding census the
corporate authorities of such municipality may cause a census
to be taken of such annexed territory and the population so
ascertained for such territory shall be added to the
population of the municipality as determined by the last
preceding census for the purpose of determining the allotment
for that municipality. If the population of any municipality
was not determined by the last Federal census preceding any
apportionment, the apportionment to such municipality shall
be in accordance with any census taken by such municipality.
Any municipal census used in accordance with this Section
shall be certified to the Department of Transportation by the
clerk of such municipality, and the accuracy thereof shall be
subject to approval of the Department which may make such
corrections as it ascertains to be necessary.
As soon as may be after the first day of each month the
Department of Transportation shall allot to each county its
share of the amount apportioned to the several counties of
the State as herein provided. Each allotment to the several
counties having less than 1,000,000 inhabitants shall be in
proportion to the amount of motor vehicle license fees
received from the residents of such counties, respectively,
during the preceding calendar year. The Secretary of State
shall, on or before April 15 of each year, transmit to the
Department of Transportation a full and complete report
showing the amount of motor vehicle license fees received
from the residents of each county, respectively, during the
preceding calendar year. The Department of Transportation
shall, each month, use for allotment purposes the last such
report received from the Secretary of State.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to the several
counties their share of the amount apportioned for the use of
road districts. The allotment shall be apportioned among the
several counties in the State in the proportion which the
total mileage of township or district roads in the respective
counties bears to the total mileage of all township and
district roads in the State. Funds allotted to the respective
counties for the use of road districts therein shall be
allocated to the several road districts in the county in the
proportion which the total mileage of such township or
district roads in the respective road districts bears to the
total mileage of all such township or district roads in the
county. After July 1 of any year, no allocation shall be
made for any road district unless it levied a tax for road
and bridge purposes in an amount which will require the
extension of such tax against the taxable property in any
such road district at a rate of not less than either .08% of
the value thereof, based upon the assessment for the year
immediately prior to the year in which such tax was levied
and as equalized by the Department of Revenue or, in DuPage
County, an amount equal to or greater than $12,000 per mile
of road under the jurisdiction of the road district,
whichever is less. If any road district has levied a special
tax for road purposes pursuant to Sections 6-601, 6-602 and
6-603 of the Illinois Highway Code, and such tax was levied
in an amount which would require extension at a rate of not
less than .08% of the value of the taxable property thereof,
as equalized or assessed by the Department of Revenue, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such levy shall, however, be deemed a
proper compliance with this Section and shall qualify such
road district for an allotment under this Section. If a
township has transferred to the road and bridge fund money
which, when added to the amount of any tax levy of the road
district would be the equivalent of a tax levy requiring
extension at a rate of at least .08%, or, in DuPage County,
an amount equal to or greater than $12,000 per mile of road
under the jurisdiction of the road district, whichever is
less, such transfer, together with any such tax levy, shall
be deemed a proper compliance with this Section and shall
qualify the road district for an allotment under this
Section.
In counties in which a property tax extension limitation
is imposed under the Property Tax Extension Limitation Law,
road districts may retain their entitlement to a motor fuel
tax allotment if, at the time the property tax extension
limitation was imposed, the road district was levying a road
and bridge tax at a rate sufficient to entitle it to a motor
fuel tax allotment and continues to levy the maximum
allowable amount after the imposition of the property tax
extension limitation. Any road district may in all
circumstances retain its entitlement to a motor fuel tax
allotment if it levied a road and bridge tax in an amount
that will require the extension of the tax against the
taxable property in the road district at a rate of not less
than 0.08% of the assessed value of the property, based upon
the assessment for the year immediately preceding the year in
which the tax was levied and as equalized by the Department
of Revenue or, in DuPage County, an amount equal to or
greater than $12,000 per mile of road under the jurisdiction
of the road district, whichever is less.
As used in this Section the term "road district" means
any road district, including a county unit road district,
provided for by the Illinois Highway Code; and the term
"township or district road" means any road in the township
and district road system as defined in the Illinois Highway
Code. For the purposes of this Section, "road district" also
includes park districts, forest preserve districts and
conservation districts organized under Illinois law and
"township or district road" also includes such roads as are
maintained by park districts, forest preserve districts and
conservation districts. The Department of Transportation
shall determine the mileage of all township and district
roads for the purposes of making allotments and allocations
of motor fuel tax funds for use in road districts.
Payment of motor fuel tax moneys to municipalities and
counties shall be made as soon as possible after the
allotment is made. The treasurer of the municipality or
county may invest these funds until their use is required and
the interest earned by these investments shall be limited to
the same uses as the principal funds.
(Source: P.A. 91-37, eff. 7-1-99; 91-59, eff. 6-30-99;
91-173, eff. 1-1-00; 91-357, eff. 7-29-99; 91-704, eff.
7-1-00; 91-725, eff. 6-2-00; 91-794, eff. 6-9-00; 92-16, eff.
6-28-01; 92-30, eff. 7-1-01.)
Section 50-40. The Uniform Penalty and Interest Act is
amended by changing Sections 3-2 and 3-3 and by adding
Section 3-4.5 as follows:
(35 ILCS 735/3-2) (from Ch. 120, par. 2603-2)
Sec. 3-2. Interest.
(a) Interest paid by the Department to taxpayers and
interest charged to taxpayers by the Department shall be paid
at the annual rate determined by the Department. For periods
prior to January 1, 2004, that rate shall be the underpayment
rate established under Section 6621 of the Internal Revenue
Code. For periods after December 31, 2003, that rate shall
be:
(1) for the one-year period beginning with the date
of underpayment or overpayment, the short-term federal
rate established under Section 6621 of the Internal
Revenue Code.
(2) for any period beginning the day after the
one-year period described in paragraph (1) of this
subsection (a), the underpayment rate established under
Section 6621 of the Internal Revenue Code.
(b) The interest rate shall be adjusted on a semiannual
basis, on January 1 and July 1, based upon the underpayment
rate or short-term federal rate going into effect on that
January 1 or July 1 under Section 6621 of the Internal
Revenue Code.
(c) This subsection (c) is applicable to returns due on
and before December 31, 2000. Interest shall be simple
interest calculated on a daily basis. Interest shall accrue
upon tax and penalty due. If notice and demand is made for
the payment of any amount of tax due and if the amount due is
paid within 30 days after the date of such notice and demand,
interest under this Section on the amount so paid shall not
be imposed for the period after the date of the notice and
demand.
(c-5) This subsection (c-5) is applicable to returns due
on and after January 1, 2001. Interest shall be simple
interest calculated on a daily basis. Interest shall accrue
upon tax due. If notice and demand is made for the payment
of any amount of tax due and if the amount due is paid within
30 days after the date of the notice and demand, interest
under this Section on the amount so paid shall not be imposed
for the period after the date of the notice and demand.
(d) No interest shall be paid upon any overpayment of
tax if the overpayment is refunded or a credit approved
within 90 days after the last date prescribed for filing the
original return, or within 90 days of the receipt of the
processable return, or within 90 days after the date of
overpayment, whichever date is latest, as determined without
regard to processing time by the Comptroller or without
regard to the date on which the credit is applied to the
taxpayer's account. In order for an original return to be
processable for purposes of this Section, it must be in the
form prescribed or approved by the Department, signed by the
person authorized by law, and contain all information,
schedules, and support documents necessary to determine the
tax due and to make allocations of tax as prescribed by law.
For the purposes of computing interest, a return shall be
deemed to be processable unless the Department notifies the
taxpayer that the return is not processable within 90 days
after the receipt of the return; however, interest shall not
accumulate for the period following this date of notice.
Interest on amounts refunded or credited pursuant to the
filing of an amended return or claim for refund shall be
determined from the due date of the original return or the
date of overpayment, whichever is later, to the date of
payment by the Department without regard to processing time
by the Comptroller or the date of credit by the Department or
without regard to the date on which the credit is applied to
the taxpayer's account. If a claim for refund relates to an
overpayment attributable to a net loss carryback as provided
by Section 207 of the Illinois Income Tax Act, the date of
overpayment shall be the last day of the taxable year in
which the loss was incurred.
(e) Interest on erroneous refunds. Any portion of the
tax imposed by an Act to which this Act is applicable or any
interest or penalty which has been erroneously refunded and
which is recoverable by the Department shall bear interest
from the date of payment of the refund. However, no interest
will be charged if the erroneous refund is for an amount less
than $500 and is due to a mistake of the Department.
(Source: P.A. 91-803, eff. 1-1-01.)
(35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
Sec. 3-3. Penalty for failure to file or pay.
(a) This subsection (a) is applicable before January 1,
1996. A penalty of 5% of the tax required to be shown due on
a return shall be imposed for failure to file the tax return
on or before the due date prescribed for filing determined
with regard for any extension of time for filing (penalty for
late filing or nonfiling). If any unprocessable return is
corrected and filed within 21 days after notice by the
Department, the late filing or nonfiling penalty shall not
apply. If a penalty for late filing or nonfiling is imposed
in addition to a penalty for late payment, the total penalty
due shall be the sum of the late filing penalty and the
applicable late payment penalty. Beginning on the effective
date of this amendatory Act of 1995, in the case of any type
of tax return required to be filed more frequently than
annually, when the failure to file the tax return on or
before the date prescribed for filing (including any
extensions) is shown to be nonfraudulent and has not occurred
in the 2 years immediately preceding the failure to file on
the prescribed due date, the penalty imposed by Section
3-3(a) shall be abated.
(a-5) This subsection (a-5) is applicable to returns due
on and after January 1, 1996 and on or before December 31,
2000. A penalty equal to 2% of the tax required to be shown
due on a return, up to a maximum amount of $250, determined
without regard to any part of the tax that is paid on time or
by any credit that was properly allowable on the date the
return was required to be filed, shall be imposed for failure
to file the tax return on or before the due date prescribed
for filing determined with regard for any extension of time
for filing. However, if any return is not filed within 30
days after notice of nonfiling mailed by the Department to
the last known address of the taxpayer contained in
Department records, an additional penalty amount shall be
imposed equal to the greater of $250 or 2% of the tax shown
on the return. However, the additional penalty amount may
not exceed $5,000 and is determined without regard to any
part of the tax that is paid on time or by any credit that
was properly allowable on the date the return was required to
be filed (penalty for late filing or nonfiling). If any
unprocessable return is corrected and filed within 30 days
after notice by the Department, the late filing or nonfiling
penalty shall not apply. If a penalty for late filing or
nonfiling is imposed in addition to a penalty for late
payment, the total penalty due shall be the sum of the late
filing penalty and the applicable late payment penalty. In
the case of any type of tax return required to be filed more
frequently than annually, when the failure to file the tax
return on or before the date prescribed for filing (including
any extensions) is shown to be nonfraudulent and has not
occurred in the 2 years immediately preceding the failure to
file on the prescribed due date, the penalty imposed by
Section 3-3(a-5) shall be abated.
(a-10) This subsection (a-10) is applicable to returns
due on and after January 1, 2001. A penalty equal to 2% of
the tax required to be shown due on a return, up to a maximum
amount of $250, reduced by any tax that is paid on time or by
any credit that was properly allowable on the date the return
was required to be filed, shall be imposed for failure to
file the tax return on or before the due date prescribed for
filing determined with regard for any extension of time for
filing. However, if any return is not filed within 30 days
after notice of nonfiling mailed by the Department to the
last known address of the taxpayer contained in Department
records, an additional penalty amount shall be imposed equal
to the greater of $250 or 2% of the tax shown on the return.
However, the additional penalty amount may not exceed $5,000
and is determined without regard to any part of the tax that
is paid on time or by any credit that was properly allowable
on the date the return was required to be filed (penalty for
late filing or nonfiling). If any unprocessable return is
corrected and filed within 30 days after notice by the
Department, the late filing or nonfiling penalty shall not
apply. If a penalty for late filing or nonfiling is imposed
in addition to a penalty for late payment, the total penalty
due shall be the sum of the late filing penalty and the
applicable late payment penalty. In the case of any type of
tax return required to be filed more frequently than
annually, when the failure to file the tax return on or
before the date prescribed for filing (including any
extensions) is shown to be nonfraudulent and has not occurred
in the 2 years immediately preceding the failure to file on
the prescribed due date, the penalty imposed by Section
3-3(a-10) shall be abated.
(b) This subsection is applicable before January 1,
1998. A penalty of 15% of the tax shown on the return or the
tax required to be shown due on the return shall be imposed
for failure to pay:
(1) the tax shown due on the return on or before
the due date prescribed for payment of that tax, an
amount of underpayment of estimated tax, or an amount
that is reported in an amended return other than an
amended return timely filed as required by subsection (b)
of Section 506 of the Illinois Income Tax Act (penalty
for late payment or nonpayment of admitted liability); or
(2) the full amount of any tax required to be shown
due on a return and which is not shown (penalty for late
payment or nonpayment of additional liability), within 30
days after a notice of arithmetic error, notice and
demand, or a final assessment is issued by the
Department. In the case of a final assessment arising
following a protest and hearing, the 30-day period shall
not begin until all proceedings in court for review of
the final assessment have terminated or the period for
obtaining a review has expired without proceedings for a
review having been instituted. In the case of a notice
of tax liability that becomes a final assessment without
a protest and hearing, the penalty provided in this
paragraph (2) shall be imposed at the expiration of the
period provided for the filing of a protest.
(b-5) This subsection is applicable to returns due on
and after January 1, 1998 and on or before December 31, 2000.
A penalty of 20% of the tax shown on the return or the tax
required to be shown due on the return shall be imposed for
failure to pay:
(1) the tax shown due on the return on or before
the due date prescribed for payment of that tax, an
amount of underpayment of estimated tax, or an amount
that is reported in an amended return other than an
amended return timely filed as required by subsection (b)
of Section 506 of the Illinois Income Tax Act (penalty
for late payment or nonpayment of admitted liability); or
(2) the full amount of any tax required to be shown
due on a return and which is not shown (penalty for late
payment or nonpayment of additional liability), within 30
days after a notice of arithmetic error, notice and
demand, or a final assessment is issued by the
Department. In the case of a final assessment arising
following a protest and hearing, the 30-day period shall
not begin until all proceedings in court for review of
the final assessment have terminated or the period for
obtaining a review has expired without proceedings for a
review having been instituted. In the case of a notice
of tax liability that becomes a final assessment without
a protest and hearing, the penalty provided in this
paragraph (2) shall be imposed at the expiration of the
period provided for the filing of a protest.
(b-10) This subsection (b-10) is applicable to returns
due on and after January 1, 2001 and on or before December
31, 2003. A penalty shall be imposed for failure to pay:
(1) the tax shown due on a return on or before the
due date prescribed for payment of that tax, an amount of
underpayment of estimated tax, or an amount that is
reported in an amended return other than an amended
return timely filed as required by subsection (b) of
Section 506 of the Illinois Income Tax Act (penalty for
late payment or nonpayment of admitted liability). The
amount of penalty imposed under this subsection (b-10)(1)
shall be 2% of any amount that is paid no later than 30
days after the due date, 5% of any amount that is paid
later than 30 days after the due date and not later than
90 days after the due date, 10% of any amount that is
paid later than 90 days after the due date and not later
than 180 days after the due date, and 15% of any amount
that is paid later than 180 days after the due date. If
notice and demand is made for the payment of any amount
of tax due and if the amount due is paid within 30 days
after the date of the notice and demand, then the penalty
for late payment or nonpayment of admitted liability
under this subsection (b-10)(1) on the amount so paid
shall not accrue for the period after the date of the
notice and demand.
(2) the full amount of any tax required to be shown
due on a return and that is not shown (penalty for late
payment or nonpayment of additional liability), within 30
days after a notice of arithmetic error, notice and
demand, or a final assessment is issued by the
Department. In the case of a final assessment arising
following a protest and hearing, the 30-day period shall
not begin until all proceedings in court for review of
the final assessment have terminated or the period for
obtaining a review has expired without proceedings for a
review having been instituted. The amount of penalty
imposed under this subsection (b-10)(2) shall be 20% of
any amount that is not paid within the 30-day period. In
the case of a notice of tax liability that becomes a
final assessment without a protest and hearing, the
penalty provided in this subsection (b-10)(2) shall be
imposed at the expiration of the period provided for the
filing of a protest.
(b-15) This subsection (b-15) is applicable to returns
due on and after January 1, 2004.
(1) A penalty shall be imposed for failure to pay
the tax shown due or required to be shown due on a return
on or before the due date prescribed for payment of that
tax, an amount of underpayment of estimated tax, or an
amount that is reported in an amended return other than
an amended return timely filed as required by subsection
(b) of Section 506 of the Illinois Income Tax Act
(penalty for late payment or nonpayment of admitted
liability). The amount of penalty imposed under this
subsection (b-15)(1) shall be 2% of any amount that is
paid no later than 30 days after the due date, 10% of any
amount that is paid later than 30 days after the due date
and not later than 90 days after the due date, 15% of any
amount that is paid later than 90 days after the due date
and not later than 180 days after the due date, and 20%
of any amount that is paid later than 180 days after the
due date. If notice and demand is made for the payment of
any amount of tax due and if the amount due is paid
within 30 days after the date of this notice and demand,
then the penalty for late payment or nonpayment of
admitted liability under this subsection (b-15)(1) on the
amount so paid shall not accrue for the period after the
date of the notice and demand.
(2) A penalty shall be imposed for failure to file
a return or to show on a timely return the full amount of
any tax required to be shown due. The amount of penalty
imposed under this subsection (b-15)(2) shall be:
(A) 5% of any amount of tax (other than an
amount properly reported on an amended return timely
filed as required by subsection (b) of Section 506
of the Illinois Income Tax Act) that is shown on a
return or amended return filed prior to the date the
Department has initiated an audit or investigation
of the taxpayer;
(B) 10% of any amount of tax (other than an
amount properly reported on an amended return timely
filed as required by subsection (b) of Section 506
of the Illinois Income Tax Act) that is shown on a
return or amended return filed on or after the date
the Department has initiated an audit or
investigation of the taxpayer, but prior to the date
any notice of deficiency, notice of tax liability,
notice of assessment or notice of final assessment
is issued by the Department with respect to any
portion of such underreported amount; or
(C) 20% of any amount that is not reported on
a return or amended return filed prior to the date
any notice of deficiency, notice of tax liability,
notice of assessment or notice of final assessment
is issued by the Department with respect to any
portion of such underreported amount.
(c) For purposes of the late payment penalties, the
basis of the penalty shall be the tax shown or required to be
shown on a return, whichever is applicable, reduced by any
part of the tax which is paid on time and by any credit which
was properly allowable on the date the return was required to
be filed.
(d) A penalty shall be applied to the tax required to be
shown even if that amount is less than the tax shown on the
return.
(e) This subsection (e) is applicable to returns due
before January 1, 2001. If both a subsection (b)(1) or
(b-5)(1) penalty and a subsection (b)(2) or (b-5)(2) penalty
are assessed against the same return, the subsection (b)(2)
or (b-5)(2) penalty shall be assessed against only the
additional tax found to be due.
(e-5) This subsection (e-5) is applicable to returns due
on and after January 1, 2001. If both a subsection (b-10)(1)
penalty and a subsection (b-10)(2) penalty are assessed
against the same return, the subsection (b-10)(2) penalty
shall be assessed against only the additional tax found to be
due.
(f) If the taxpayer has failed to file the return, the
Department shall determine the correct tax according to its
best judgment and information, which amount shall be prima
facie evidence of the correctness of the tax due.
(g) The time within which to file a return or pay an
amount of tax due without imposition of a penalty does not
extend the time within which to file a protest to a notice of
tax liability or a notice of deficiency.
(h) No return shall be determined to be unprocessable
because of the omission of any information requested on the
return pursuant to Section 2505-575 of the Department of
Revenue Law (20 ILCS 2505/2505-575).
(Source: P.A. 91-239, eff. 1-1-00; 91-803, eff. 1-1-01;
92-742, eff. 7-25-02.)
(35 ILCS 735/3-4.5 new)
Sec. 3-4.5. Collection penalty.
(a) If any liability (including any liability for
penalties or interest imposed under this Act) owed by a
taxpayer with respect to any return due on or after July 1,
2003, is not paid in full prior to the date specified in
subsection (b) of this Section, a collection penalty shall be
imposed on the taxpayer. The penalty shall be deemed assessed
as of the date specified in subsection (b) of this Section
and shall be considered additional State tax of the taxpayer
imposed under the law under which the tax being collected was
imposed.
(b) The penalty under subsection (a) of this Section
shall be imposed if full payment is not received prior to the
31st day after a notice and demand, a notice of additional
tax due or a request for payment of a final liability is
issued by the Department.
(c) The penalty imposed under this Section shall be:
(1) $30 in any case in which the amount of the
liability shown on the notice and demand, notice of
additional tax due, or other request for payment that
remains unpaid as of the date specified in subsection (b)
of this Section is less than $1,000; or
(2) $100 in any case in which the amount of the
liability shown on the notice and demand, notice of
additional tax due, or other request for payment that
remains unpaid as of the date specified in subsection (b)
of this Section is $1,000 or more.
Section 50-50. The Illinois Insurance Code is amended by
adding Section 416 as follows:
(215 ILCS 5/416 new)
Sec. 416. Industrial Commission Operations Fund
Surcharge.
(a) As of the effective date of this amendatory Act of
the 93rd General Assembly, every company licensed or
authorized by the Illinois Department of Insurance and
insuring employers' liabilities arising under the Workers'
Compensation Act or the Workers' Occupational Diseases Act
shall remit to the Director a surcharge based upon the annual
direct written premium, as reported under Section 136 of this
Act, of the company in the manner provided in this Section.
Such proceeds shall be deposited into the Industrial
Commission Operations Fund as established in the Workers'
Compensation Act. If a company survives or was formed by a
merger, consolidation, reorganization, or reincorporation,
the direct written premiums of all companies party to the
merger, consolidation, reorganization, or reincorporation
shall, for purposes of determining the amount of the fee
imposed by this Section, be regarded as those of the
surviving or new company.
(b)(1) Except as provided in subsection (b)(2) of this
Section, beginning on July 1, 2004 and each year thereafter,
the Director shall charge an annual Industrial Commission
Operations Fund Surcharge from every company subject to
subsection (a) of this Section equal to 1.5% of its direct
written premium for insuring employers' liabilities arising
under the Workers' Compensation Act or Workers' Occupational
Diseases Act as reported in each company's annual statement
filed for the previous year as required by Section 136. The
Industrial Commission Operations Fund Surcharge shall be
collected by companies subject to subsection (a) of this
Section as a separately stated surcharge on insured employers
at the rate of 1.5% of direct written premium. All sums
collected by the Department of Insurance under the provisions
of this Section shall be paid promptly after the receipt of
the same, accompanied by a detailed statement thereof, into
the Industrial Commission Operations Fund in the State
treasury.
(b)(2) Prior to July 1, 2004, the Director shall charge
and collect the surcharge set forth in subparagraph (b)(1) of
this Section on or before September 1, 2003, December 1,
2003, March 1, 2004 and June 1, 2004. For purposes of this
subsection (b)(2), the company shall remit the amounts to the
Director based on estimated direct premium for each quarter
beginning on July 1, 2003, together with a sworn statement
attesting to the reasonableness of the estimate, and the
estimated amount of direct premium written forming the bases
of the remittance.
(c) In addition to the authority specifically granted
under Article XXV of this Code, the Director shall have such
authority to adopt rules or establish forms as may be
reasonably necessary for purposes of enforcing this Section.
The Director shall also have authority to defer, waive, or
abate the surcharge or any penalties imposed by this Section
if in the Director's opinion the company's solvency and
ability to meet its insured obligations would be immediately
threatened by payment of the surcharge due.
(d) When a company fails to pay the full amount of any
annual Industrial Commission Operations Fund Surcharge of
$100 or more due under this Section, there shall be added to
the amount due as a penalty the greater of $1,000 or an
amount equal to 5% of the deficiency for each month or part
of a month that the deficiency remains unpaid.
(e) The Department of Insurance may enforce the
collection of any delinquent payment, penalty, or portion
thereof by legal action or in any other manner by which the
collection of debts due the State of Illinois may be enforced
under the laws of this State.
(f) Whenever it appears to the satisfaction of the
Director that a company has paid pursuant to this Act an
Industrial Commission Operations Fund Surcharge in an amount
in excess of the amount legally collectable from the company,
the Director shall issue a credit memorandum for an amount
equal to the amount of such overpayment. A credit memorandum
may be applied for the 2-year period from the date of
issuance, against the payment of any amount due during that
period under the surcharge imposed by this Section or,
subject to reasonable rule of the Department of Insurance
including requirement of notification, may be assigned to any
other company subject to regulation under this Act. Any
application of credit memoranda after the period provided for
in this Section is void.
(g) Annually, the Governor may direct a transfer of up
to 2% of all moneys collected under this Section to the
Insurance Financial Regulation Fund.
Section 50-57. The Public Utilities Act is amended by
changing Section 16-111.1 as follows:
(220 ILCS 5/16-111.1)
Sec. 16-111.1. Illinois Clean Energy Community Trust.
(a) An electric utility which has sold or transferred
generating facilities in a transaction to which subsection
(k) of Section 16-111 applies is authorized to establish an
Illinois clean energy community trust or foundation for the
purposes of providing financial support and assistance to
entities, public or private, within the State of Illinois
including, but not limited to, units of State and local
government, educational institutions, corporations, and
charitable, educational, environmental and community
organizations, for programs and projects that benefit the
public by improving energy efficiency, developing renewable
energy resources, supporting other energy related projects
that improve the State's environmental quality, and
supporting projects and programs intended to preserve or
enhance the natural habitats and wildlife areas of the State.
Provided, however, that the trust or foundation funds shall
not be used for the remediation of environmentally impaired
property. The trust or foundation may also assist in
identifying other energy and environmental grant
opportunities.
(b) Such trust or foundation shall be governed by a
declaration of trust or articles of incorporation and bylaws
which shall, at a minimum, provide that:
(1) There shall be 6 voting trustees of the trust
or foundation, one of whom shall be appointed by the
Governor, one of whom shall be appointed by the President
of the Illinois Senate, one of whom shall be appointed by
the Minority Leader of the Illinois Senate, one of whom
shall be appointed by the Speaker of the Illinois House
of Representatives, one of whom shall be appointed by the
Minority Leader of the Illinois House of Representatives,
and one of whom shall be appointed by the electric
utility establishing the trust or foundation, provided
that the voting trustee appointed by the utility shall be
a representative of a recognized environmental action
group selected by the utility. The Governor shall
designate one of the 6 voting trustees to serve as
chairman of the trust or foundation, who shall serve as
chairman of the trust or foundation at the pleasure of
the Governor. In addition, there shall be 4 non-voting
trustees, one of whom shall be appointed by the Director
of the Department of Commerce and Community Affairs, one
of whom shall be appointed by the Director of the
Illinois Environmental Protection Agency, one of whom
shall be appointed by the Director of the Department of
Natural Resources, and one of whom shall be appointed by
the electric utility establishing the trust or
foundation, provided that the non-voting trustee
appointed by the utility shall bring financial expertise
to the trust or foundation and shall have appropriate
credentials therefor.
(2) All voting trustees and the non-voting trustee
with financial expertise shall be entitled to
compensation for their services as trustees, provided,
however, that no member of the General Assembly and no
employee of the electric utility establishing the trust
or foundation serving as a voting trustee shall receive
any compensation for his or her services as a trustee,
and provided further that the compensation to the
chairman of the trust shall not exceed $25,000 annually
and the compensation to any other trustee shall not
exceed $20,000 annually. All trustees shall be entitled
to reimbursement for reasonable expenses incurred on
behalf of the trust in the performance of their duties as
trustees. All such compensation and reimbursements shall
be paid out of the trust.
(3) Trustees shall be appointed within 30 days
after the creation of the trust or foundation and shall
serve for a term of 5 years commencing upon the date of
their respective appointments, until their respective
successors are appointed and qualified.
(4) A vacancy in the office of trustee shall be
filled by the person holding the office responsible for
appointing the trustee whose death or resignation creates
the vacancy, and a trustee appointed to fill a vacancy
shall serve the remainder of the term of the trustee
whose resignation or death created the vacancy.
(5) The trust or foundation shall have an
indefinite term, and shall terminate at such time as no
trust assets remain.
(6) The trust or foundation shall be funded in the
minimum amount of $250,000,000, with the allocation and
disbursement of funds for the various purposes for which
the trust or foundation is established to be determined
by the trustees in accordance with the declaration of
trust or the articles of incorporation and bylaws;
provided, however, that this amount may be reduced by up
to $25,000,000 if, at the time the trust or foundation is
funded, a corresponding amount is contributed by the
electric utility establishing the trust or foundation to
the Board of Trustees of Southern Illinois University for
the purpose of funding programs or projects related to
clean coal and provided further that $25,000,000 of the
amount contributed to the trust or foundation shall be
available to fund programs or projects related to clean
coal.
(7) The trust or foundation shall be authorized to
employ an executive director and other employees, to
enter into leases, contracts and other obligations on
behalf of the trust or foundation, and to incur expenses
that the trustees deem necessary or appropriate for the
fulfillment of the purposes for which the trust or
foundation is established, provided, however, that
salaries and administrative expenses incurred on behalf
of the trust or foundation shall not exceed $500,000 in
the first fiscal year after the trust or foundation is
established and shall not exceed $1,000,000 in each
subsequent fiscal year.
(8) The trustees may create and appoint advisory
boards or committees to assist them with the
administration of the trust or foundation, and to advise
and make recommendations to them regarding the
contribution and disbursement of the trust or foundation
funds.
(c)(1) In addition to the allocation and disbursement of
funds for the purposes set forth in subsection (a) of
this Section, the trustees of the trust or foundation
shall annually contribute funds in amounts set forth in
subparagraph (2) of this subsection to the Citizens
Utility Board created by the Citizens Utility Board Act;
provided, however, that any such funds shall be used
solely for the representation of the interests of utility
consumers before the Illinois Commerce Commission, the
Federal Energy Regulatory Commission, and the Federal
Communications Commission and for the provision of
consumer education on utility service and prices and on
benefits and methods of energy conservation. Provided,
however, that no part of such funds shall be used to
support (i) any lobbying activity, (ii) activities
related to fundraising, (iii) advertising or other
marketing efforts regarding a particular utility, or (iv)
solicitation of support for, or advocacy of, a particular
position regarding any specific utility or a utility's
docketed proceeding.
(2) In the calendar year in which the trust or
foundation is first funded, the trustees shall contribute
$1,000,000 to the Citizens Utility Board within 60 days
after such trust or foundation is established; provided,
however, that such contribution shall be made after
December 31, 1999. In each of the 6 calendar years
subsequent to the first contribution, if the trust or
foundation is in existence, the trustees shall contribute
to the Citizens Utility Board an amount equal to the
total expenditures by such organization in the prior
calendar year, as set forth in the report filed by the
Citizens Utility Board with the chairman of such trust or
foundation as required by subparagraph (3) of this
subsection. Such subsequent contributions shall be made
within 30 days of submission by the Citizens Utility
Board of such report to the Chairman of the trust or
foundation, but in no event shall any annual contribution
by the trustees to the Citizens Utility Board exceed
$1,000,000. Following such 7-year period, an Illinois
statutory consumer protection agency may petition the
trust or foundation for contributions to fund
expenditures of the type identified in paragraph (1), but
in no event shall annual contributions by the trust or
foundation for such expenditures exceed $1,000,000.
(3) The Citizens Utility Board shall file a report
with the chairman of such trust or foundation for each
year in which it expends any funds received from the
trust or foundation setting forth the amount of any
expenditures (regardless of the source of funds for such
expenditures) for: (i) the representation of the
interests of utility consumers before the Illinois
Commerce Commission, the Federal Energy Regulatory
Commission, and the Federal Communications Commission,
and (ii) the provision of consumer education on utility
service and prices and on benefits and methods of energy
conservation. Such report shall separately state the
total amount of expenditures for the purposes or
activities identified by items (i) and (ii) of this
paragraph, the name and address of the external recipient
of any such expenditure, if applicable, and the specific
purposes or activities (including internal purposes or
activities) for which each expenditure was made. Any
report required by this subsection shall be filed with
the chairman of such trust or foundation no later than
March 31 of the year immediately following the year for
which the report is required.
(d) In addition to any other allocation and disbursement
of funds in this Section, the trustees of the trust or
foundation shall contribute an amount up to $125,000,000 (1)
for deposit into the General Obligation Bond Retirement and
Interest Fund held in the State treasury to assist in the
repayment on general obligation bonds issued under subsection
(d) of Section 7 of the General Obligation Bond Act, and (2)
for deposit into funds administered by agencies with
responsibility for environmental activities to assist in
payment for environmental programs. The amount required to be
contributed shall be provided to the trustees in a
certification letter from the Director of the Bureau of the
Budget that shall be provided no later than August 1, 2003.
The payment from the trustees shall be paid to the State no
later than December 31st following the receipt of the letter.
(Source: P.A. 91-50, eff. 6-30-99; 91-781, eff. 6-9-00.)
Section 50-61. The Liquor Control Act of 1934 is amended
by changing Section 12-4 as follows:
(235 ILCS 5/12-4)
Sec. 12-4. Grape and Wine Resources Fund. Beginning July
1, 1999 and ending June 30, 2003 2004, on the first day of
each State fiscal year, or as soon thereafter as may be
practical, the State Comptroller shall transfer the sum of
$500,000 from the General Revenue Fund to the Grape and Wine
Resources Fund, which is hereby continued as a special fund
in the State Treasury. By January 1, 2004, the Department of
Commerce and Community Affairs shall review the activities of
the Council and report to the General Assembly and the
Governor its recommendation of whether or not the funding
under this Section should be continued.
The Grape and Wine Resources Fund shall be administered
by the Department of Commerce and Community Affairs, which
shall serve as the lead administrative agency for allocation
and auditing of funds as well as monitoring program
implementation. The Department shall make an annual grant of
moneys from the Fund to the Council, which shall be used to
pay for the Council's operations and expenses. These moneys
shall be used by the Council to achieve the Council's
objectives and shall not be used for any political or
legislative purpose. Money remaining in the Fund at the end
of the fiscal year shall remain in the Fund for use during
the following year and shall not be transferred to any other
State fund.
(Source: P.A. 91-472, eff. 8-10-99.)
Section 50-62. The Environmental Protection Act is
amended by changing Sections 55 and 55.8 and adding Section
55.6a as follows:
(415 ILCS 5/55) (from Ch. 111 1/2, par. 1055)
Sec. 55. Prohibited activities.
(a) No person shall:
(1) Cause or allow the open dumping of any used or
waste tire.
(2) Cause or allow the open burning of any used or
waste tire.
(3) Except at a tire storage site which contains
more than 50 used tires, cause or allow the storage of
any used tire unless the tire is altered, reprocessed,
converted, covered, or otherwise prevented from
accumulating water.
(4) Cause or allow the operation of a tire storage
site except in compliance with Board regulations.
(5) Abandon, dump or dispose of any used or waste
tire on private or public property, except in a sanitary
landfill approved by the Agency pursuant to regulations
adopted by the Board.
(6) Fail to submit required reports, tire removal
agreements, or Board regulations.
(b) (Blank.)
(b-1) Beginning January 1, 1995, no person shall
knowingly mix any used or waste tire, either whole or cut,
with municipal waste, and no owner or operator of a sanitary
landfill shall accept any used or waste tire for final
disposal; except that used or waste tires, when separated
from other waste, may be accepted if: (1) the sanitary
landfill provides and maintains a means for shredding,
slitting, or chopping whole tires and so treats whole tires
and, if approved by the Agency in a permit issued under this
Act, uses the used or waste tires for alternative uses, which
may include on-site practices such as lining of roadways with
tire scraps, alternative daily cover, or use in a leachate
collection system or (2) the sanitary landfill, by its
notification to the Illinois Industrial Materials Exchange
Service, makes available the used or waste tire to an
appropriate facility for reuse, reprocessing, or converting,
including use as an alternate energy fuel. If, within 30
days after notification to the Illinois Industrial Materials
Exchange Service of the availability of waste tires, no
specific request for the used or waste tires is received by
the sanitary landfill, and the sanitary landfill determines
it has no alternative use for those used or waste tires, the
sanitary landfill may dispose of slit, chopped, or shredded
used or waste tires in the sanitary landfill. In the event
the physical condition of a used or waste tire makes
shredding, slitting, chopping, reuse, reprocessing, or other
alternative use of the used or waste tire impractical or
infeasible, then the sanitary landfill, after authorization
by the Agency, may accept the used or waste tire for
disposal.
Sanitary landfills and facilities for reuse,
reprocessing, or converting, including use as alternative
fuel, shall (i) notify the Illinois Industrial Materials
Exchange Service of the availability of and demand for used
or waste tires and (ii) consult with the Department of
Commerce and Community Affairs regarding the status of
marketing of waste tires to facilities for reuse.
(c) On or before January 1, 1990, Any person who sells
new or used tires at retail or operates a tire storage site
or a tire disposal site which contains more than 50 used or
waste tires shall give notice of such activity to the Agency.
Any person engaging in such activity for the first time after
January 1, 1990, shall give notice to the Agency within 30
days after the date of commencement of the activity. The
form of such notice shall be specified by the Agency and
shall be limited to information regarding the following:
(1) the name and address of the owner and operator;
(2) the name, address and location of the
operation;
(3) the type of operations involving used and waste
tires (storage, disposal, conversion or processing); and
(4) the number of used and waste tires present at
the location.
(d) Beginning January 1, 1992, no person shall cause or
allow the operation of:
(1) a tire storage site which contains more than 50
used tires, unless the owner or operator, by January 1,
1992 (or the January 1 following commencement of
operation, whichever is later) and January 1 of each year
thereafter, (i) registers the site with the Agency, (ii)
certifies to the Agency that the site complies with any
applicable standards adopted by the Board pursuant to
Section 55.2, (iii) reports to the Agency the number of
tires accumulated, the status of vector controls, and the
actions taken to handle and process the tires, and (iv)
pays the fee required under subsection (b) of Section
55.6; or
(2) a tire disposal site, unless the owner or
operator (i) has received approval from the Agency after
filing a tire removal agreement pursuant to Section 55.4,
or (ii) has entered into a written agreement to
participate in a consensual removal action under Section
55.3.
The Agency shall provide written forms for the annual
registration and certification required under this subsection
(d).
(e) No person shall cause or allow the storage,
disposal, treatment or processing of any used or waste tire
in violation of any regulation or standard adopted by the
Board.
(f) No person shall arrange for the transportation of
used or waste tires away from the site of generation with a
person known to openly dump such tires.
(g) No person shall engage in any operation as a used or
waste tire transporter except in compliance with Board
regulations.
(h) No person shall cause or allow the combustion of any
used or waste tire in an enclosed device unless a permit has
been issued by the Agency authorizing such combustion
pursuant to regulations adopted by the Board for the control
of air pollution and consistent with the provisions of
Section 9.4 of this Act.
(i) No person shall cause or allow the use of pesticides
to treat tires except as prescribed by Board regulations.
(j) No person shall fail to comply with the terms of a
tire removal agreement approved by the Agency pursuant to
Section 55.4.
(Source: P.A. 92-574, eff. 6-26-02.)
(415 ILCS 5/55.6a new)
Sec. 55.6a. Emergency Public Health Fund.
(a) Beginning on July 1, 2003, moneys in the Emergency
Public Health Fund, subject to appropriation, shall be
allocated annually as follows: (i) $200,000 to the Department
of Natural Resources for the purposes described in Section
55.6(c)(6) and (ii) subject to subsection (b) of this
Section, all remaining amounts to the Department of Public
Health to be used to make vector control grants and
surveillance grants to the Cook County Department of Public
Health (for areas of the County excluding the City of
Chicago), to the City of Chicago health department, and to
other certified local health departments. These grants shall
be used for expenses related to West Nile Virus and other
vector-borne diseases. The amount of each grant shall be
based on population and need as supported by information
submitted to the Department of Public Health. For the
purposes of this Section, need shall be determined by the
Department based primarily upon surveillance data and the
number of positive human cases of West Nile Virus and other
vector-borne diseases occurring during the preceding year and
current year in the county or municipality seeking the grant.
(b) Beginning on July 31, 2003, on the last day of each
month, the State Comptroller shall order transferred and the
State Treasurer shall transfer fees collected in the previous
month pursuant to item (1.5) of subsection (a) of Section
55.8 from the Emergency Public Health Fund to the
Communications Revolving Fund. These transfers shall
continue until the cumulative total of the transfers is
$3,000,000.
(415 ILCS 5/55.8) (from Ch. 111 1/2, par. 1055.8)
Sec. 55.8. Tire retailers.
(a) Beginning July 1, 1992, any person selling new or
used tires at retail or offering new or used tires for retail
sale in this State shall:
(1) collect from retail customers a fee of $2 one
dollar per new and used tire sold and delivered in this
State to be paid to the Department of Revenue and
deposited into the Used Tire Management Fund, less a
collection allowance of 10 cents per tire to be retained
by the retail seller and a collection allowance of 10
cents per tire to be retained by the Department of
Revenue and paid into the General Revenue Fund;
(1.5) beginning on July 1, 2003, collect from
retail customers an additional 50 cents per new or used
tire sold and delivered in this State. The money
collected from this fee shall be deposited into the
Emergency Public Health Fund. This fee shall no longer
be collected beginning on January 1, 2008.
(2) accept for recycling used tires from customers,
at the point of transfer, in a quantity equal to the
number of new tires purchased; and
(3) post in a conspicuous place a written notice at
least 8.5 by 11 inches in size that includes the
universal recycling symbol and the following statements:
"DO NOT put used tires in the trash."; "Recycle your used
tires."; and "State law requires us to accept used tires
for recycling, in exchange for new tires purchased.".
(b) A person who accepts used tires for recycling under
subsection (a) shall not allow the tires to accumulate for
periods of more than 90 days.
(c) The requirements of subsection (a) of this Section
do not apply to mail order sales nor shall the retail sale of
a motor vehicle be considered to be the sale of tires
at retail or offering of tires for retail sale. Instead of
filing returns, retailers of tires may remit the tire user
fee of $1.00 per tire to their suppliers of tires if the
supplier of tires is a registered retailer of tires and
agrees or otherwise arranges to collect and remit the tire
fee to the Department of Revenue, notwithstanding the fact
that the sale of the tire is a sale for resale and not a sale
at retail. A tire supplier who enters into such an
arrangement with a tire retailer shall be liable for the tax
on all tires sold to the tire retailer and must (i) provide
the tire retailer with a receipt that separately reflects the
tire tax collected from the retailer on each transaction and
(ii) accept used tires for recycling from the retailer's
customers. The tire supplier shall be entitled to the
collection allowance of 10 cents per tire.
The retailer of the tires must maintain in its books and
records evidence that the appropriate fee was paid to the
tire supplier and that the tire supplier has agreed to remit
the fee to the Department of Revenue for each tire sold by
the retailer. Otherwise, the tire retailer shall be directly
liable for the fee on all tires sold at retail. Tire
retailers paying the fee to their suppliers are not entitled
to the collection allowance of 10 cents per tire.
(d) The requirements of subsection (a) of this Section
shall apply exclusively to tires to be used for vehicles
defined in Section 1-217 of the Illinois Vehicle Code,
aircraft tires, special mobile equipment, and implements of
husbandry.
(e) The requirements of paragraph (1) of subsection (a)
do not apply to the sale of reprocessed tires. For purposes
of this Section, "reprocessed tire" means a used tire that
has been recapped, retreaded, or regrooved and that has not
been placed on a vehicle wheel rim.
(Source: P.A. 90-14, eff. 7-1-97.)
Section 50-63. The Environmental Impact Fee Law is
amended by changing Section 315 as follows:
(415 ILCS 125/315)
(Section scheduled to be repealed on January 1, 2013)
Sec. 315. Fee on receivers of fuel for sale or use;
collection and reporting. A person that is required to pay
the fee imposed by this Law shall pay the fee to the
Department by return showing all fuel purchased, acquired, or
received and sold, distributed or used during the preceding
calendar month, including losses of fuel as the result of
evaporation or shrinkage due to temperature variations, and
such other reasonable information as the Department may
require. Losses of fuel as the result of evaporation or
shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of the month,
plus the receipts of gallonage during the month, minus the
gallonage remaining in storage at the end of the month. Any
loss reported that is in excess of this amount shall be
subject to the fee imposed by Section 310 of this Law. On and
after July 1, 2001, for each 6-month period January through
June, net losses of fuel (for each category of fuel that is
required to be reported on a return) as the result of
evaporation or shrinkage due to temperature variations may
not exceed 1% of the total gallons in storage at the
beginning of each January, plus the receipts of gallonage
each January through June, minus the gallonage remaining in
storage at the end of each June. On and after July 1, 2001,
for each 6-month period July through December, net losses of
fuel (for each category of fuel that is required to be
reported on a return) as the result of evaporation or
shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of each July,
plus the receipts of gallonage each July through December,
minus the gallonage remaining in storage at the end of each
December. Any net loss reported that is in excess of this
amount shall be subject to the fee imposed by Section 310 of
this Law. For purposes of this Section, "net loss" means the
number of gallons gained through temperature variations minus
the number of gallons lost through temperature variations or
evaporation for each of the respective 6-month periods.
The return shall be prescribed by the Department and
shall be filed between the 1st and 20th days of each calendar
month. The Department may, in its discretion, combine the
return filed under this Law with the return filed under
Section 2b of the Motor Fuel Tax Law. If the return is
timely filed, the receiver may take a discount of 2% through
June 30, 2003 and 1.75% thereafter 2% to reimburse himself
for the expenses incurred in keeping records, preparing and
filing returns, collecting and remitting the fee, and
supplying data to the Department on request. However, the 2%
discount applies only to the amount of the fee payment that
accompanies a return that is timely filed in accordance with
this Section.
(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
Section 50-75. The Unified Code of Corrections is
amended by changing Section 5-9-1 as follows:
(730 ILCS 5/5-9-1) (from Ch. 38, par. 1005-9-1)
Sec. 5-9-1. Authorized fines.
(a) An offender may be sentenced to pay a fine which
shall not exceed for each offense:
(1) for a felony, $25,000 or the amount specified
in the offense, whichever is greater, or where the
offender is a corporation, $50,000 or the amount
specified in the offense, whichever is greater;
(2) for a Class A misdemeanor, $2,500 or the amount
specified in the offense, whichever is greater;
(3) for a Class B or Class C misdemeanor, $1,500;
(4) for a petty offense, $1,000 or the amount
specified in the offense, whichever is less;
(5) for a business offense, the amount specified in
the statute defining that offense.
(b) A fine may be imposed in addition to a sentence of
conditional discharge, probation, periodic imprisonment, or
imprisonment.
(c) There shall be added to every fine imposed in
sentencing for a criminal or traffic offense, except an
offense relating to parking or registration, or offense by a
pedestrian, an additional penalty of $5 for each $40, or
fraction thereof, of fine imposed. The additional penalty of
$5 for each $40, or fraction thereof, of fine imposed, if not
otherwise assessed, shall also be added to every fine imposed
upon a plea of guilty, stipulation of facts or findings of
guilty, resulting in a judgment of conviction, or order of
supervision in criminal, traffic, local ordinance, county
ordinance, and conservation cases (except parking,
registration, or pedestrian violations), or upon a sentence
of probation without entry of judgment under Section 10 of
the Cannabis Control Act or Section 410 of the Controlled
Substances Act.
Such additional amounts shall be assessed by the court
imposing the fine and shall be collected by the Circuit Clerk
in addition to the fine and costs in the case. Each such
additional penalty shall be remitted by the Circuit Clerk
within one month after receipt to the State Treasurer. The
State Treasurer shall deposit $1 for each $40, or fraction
thereof, of fine imposed into the LEADS Maintenance Fund.
The remaining surcharge amount shall be deposited into the
Traffic and Criminal Conviction Surcharge Fund, unless the
fine, costs or additional amounts are subject to disbursement
by the circuit clerk under Section 27.5 of the Clerks of
Courts Act. Such additional penalty shall not be considered
a part of the fine for purposes of any reduction in the fine
for time served either before or after sentencing. Not
later than March 1 of each year the Circuit Clerk shall
submit a report of the amount of funds remitted to the State
Treasurer under this subsection (c) during the preceding
calendar year. Except as otherwise provided by Supreme Court
Rules, if a court in imposing a fine against an offender
levies a gross amount for fine, costs, fees and penalties,
the amount of the additional penalty provided for herein
shall be computed on the amount remaining after deducting
from the gross amount levied all fees of the Circuit Clerk,
the State's Attorney and the Sheriff. After deducting from
the gross amount levied the fees and additional penalty
provided for herein, less any other additional penalties
provided by law, the clerk shall remit the net balance
remaining to the entity authorized by law to receive the fine
imposed in the case. For purposes of this Section "fees of
the Circuit Clerk" shall include, if applicable, the fee
provided for under Section 27.3a of the Clerks of Courts Act
and the fee, if applicable, payable to the county in which
the violation occurred pursuant to Section 5-1101 of the
Counties Code.
(c-5) In addition to the fines imposed by subsection
(c), any person convicted or receiving an order of
supervision for driving under the influence of alcohol or
drugs shall pay an additional $100 fee to the clerk. This
additional fee, less 2 1/2% that shall be used to defray
administrative costs incurred by the clerk, shall be remitted
by the clerk to the Treasurer within 60 days after receipt
for deposit into the Trauma Center Fund. This additional fee
of $100 shall not be considered a part of the fine for
purposes of any reduction in the fine for time served either
before or after sentencing. Not later than March 1 of each
year the Circuit Clerk shall submit a report of the amount of
funds remitted to the State Treasurer under this subsection
(c-5) during the preceding calendar year.
The Circuit Clerk may accept payment of fines and costs
by credit card from an offender who has been convicted of a
traffic offense, petty offense or misdemeanor and may charge
the service fee permitted where fines and costs are paid by
credit card provided for in Section 27.3b of the Clerks of
Courts Act.
(c-7) In addition to the fines imposed by subsection
(c), any person convicted or receiving an order of
supervision for driving under the influence of alcohol or
drugs shall pay an additional $5 fee to the clerk. This
additional fee, less 2 1/2% that shall be used to defray
administrative costs incurred by the clerk, shall be remitted
by the clerk to the Treasurer within 60 days after receipt
for deposit into the Spinal Cord Injury Paralysis Cure
Research Trust Fund. This additional fee of $5 shall not be
considered a part of the fine for purposes of any reduction
in the fine for time served either before or after
sentencing. Not later than March 1 of each year the Circuit
Clerk shall submit a report of the amount of funds remitted
to the State Treasurer under this subsection (c-7) during the
preceding calendar year.
(c-9) There shall be added to every fine imposed in
sentencing for a criminal or traffic offense, except an
offense relating to parking or registration, or offense by a
pedestrian, an additional penalty of $4 imposed. The
additional penalty of $4 shall also be added to every fine
imposed upon a plea of guilty, stipulation of facts or
findings of guilty, resulting in a judgment of conviction, or
order of supervision in criminal, traffic, local ordinance,
county ordinance, or conservation cases (except parking,
registration, or pedestrian violations), or upon a sentence
of probation without entry of judgment under Section 10 of
the Cannabis Control Act or Section 410 of the Controlled
Substances Act. Such additional penalty of $4 shall be
assessed by the court imposing the fine and shall be
collected by the circuit clerk in addition to any other fine,
costs, fees, and penalties in the case. Each such additional
penalty of $4 shall be remitted to the State Treasurer by the
circuit clerk within one month after receipt. The State
Treasurer shall deposit the additional penalty of $4 into the
Traffic and Criminal Conviction Surcharge Fund. The
additional penalty of $4 shall be in addition to any other
fine, costs, fees, and penalties and shall not reduce or
affect the distribution of any other fine, costs, fees, and
penalties.
(d) In determining the amount and method of payment of a
fine, except for those fines established for violations of
Chapter 15 of the Illinois Vehicle Code, the court shall
consider:
(1) the financial resources and future ability of
the offender to pay the fine; and
(2) whether the fine will prevent the offender from
making court ordered restitution or reparation to the
victim of the offense; and
(3) in a case where the accused is a dissolved
corporation and the court has appointed counsel to
represent the corporation, the costs incurred either by
the county or the State for such representation.
(e) The court may order the fine to be paid forthwith or
within a specified period of time or in installments.
(f) All fines, costs and additional amounts imposed
under this Section for any violation of Chapters 3, 4, 6, and
11 of the Illinois Vehicle Code, or a similar provision of a
local ordinance, and any violation of the Child Passenger
Protection Act, or a similar provision of a local ordinance,
shall be collected and disbursed by the circuit clerk as
provided under Section 27.5 of the Clerks of Courts Act.
(Source: P.A. 92-431, eff. 1-1-02.)
Section 50-80. The Workers' Compensation Act is amended
by adding Section 4d as follows:
(820 ILCS 305/4d new)
Sec. 4d. Industrial Commission Operations Fund Fee.
(a) As of the effective date of this amendatory Act of
the 93rd General Assembly, each employer that self-insures
its liabilities arising under this Act or Workers'
Occupational Diseases Act shall pay a fee measured by the
annual actual wages paid in this State of such an employer in
the manner provided in this Section. Such proceeds shall be
deposited in the Industrial Commission Operations Fund. If an
employer survives or was formed by a merger, consolidation,
reorganization, or reincorporation, the actual wages paid in
this State of all employers party to the merger,
consolidation, reorganization, or reincorporation shall, for
purposes of determining the amount of the fee imposed by this
Section, be regarded as those of the surviving or new
employer.
(b) Beginning on the effective date of this amendatory
Act of the 93rd General Assembly and on July 1 of each year
thereafter, the Chairman shall charge and collect an annual
Industrial Commission Operations Fund Fee from every employer
subject to subsection (a) of this Section equal to 0.045% of
its annual actual wages paid in this State as reported in
each employer's annual self-insurance renewal filed for the
previous year as required by Section 4 of this Act and
Section 4 of the Workers' Occupational Diseases Act. All sums
collected by the Commission under the provisions of this
Section shall be paid promptly after the receipt of the same,
accompanied by a detailed statement thereof, into the
Industrial Commission Operations Fund.
(c) In addition to the authority specifically granted
under Section 16, the Chairman shall have such authority to
adopt rules or establish forms as may be reasonably necessary
for purposes of enforcing this Section. The Commission shall
have authority to defer, waive, or abate the fee or any
penalties imposed by this Section if in the Commission's
opinion the employer's solvency and ability to meet its
obligations to pay workers' compensation benefits would be
immediately threatened by payment of the fee due.
(d) When an employer fails to pay the full amount of any
annual Industrial Commission Operations Fund Fee of $100 or
more due under this Section, there shall be added to the
amount due as a penalty the greater of $1,000 or an amount
equal to 5% of the deficiency for each month or part of a
month that the deficiency remains unpaid.
(e) The Commission may enforce the collection of any
delinquent payment, penalty or portion thereof by legal
action or in any other manner by which the collection of
debts due the State of Illinois may be enforced under the
laws of this State.
(f) Whenever it appears to the satisfaction of the
Chairman that an employer has paid pursuant to this Act an
Industrial Commission Operations Fund Fee in an amount in
excess of the amount legally collectable from the employer,
the Chairman shall issue a credit memorandum for an amount
equal to the amount of such overpayment. A credit memorandum
may be applied for the 2-year period from the date of
issuance against the payment of any amount due during that
period under the fee imposed by this Section or, subject to
reasonable rule of the Commission including requirement of
notification, may be assigned to any other employer subject
to regulation under this Act. Any application of credit
memoranda after the period provided for in this Section is
void.
ARTICLE 75
Section 75-1. The Secretary of State Act is amended by
changing Section 5.5 as follows:
(15 ILCS 305/5.5)
Sec. 5.5. Secretary of State fees. There shall be paid
to the Secretary of State the following fees:
For certificate or apostille, with seal: $2.
For each certificate, without seal: $1.
For each commission to any officer or other person
(except military commissions), with seal: $2.
For copies of exemplifications of records, or for a
certified copy of any document, instrument, or paper when not
otherwise provided by law, and it does not exceed legal size:
$0.50 per page or any portion of a page; and $2 for the
certificate, with seal affixed.
For copies of exemplifications of records or a certified
copy of any document, instrument, or paper, when not
otherwise provided for by law, that exceeds legal size: $1
per page or any portion of a page; and $2 for the
certificate, with seal affixed.
For copies of bills or other papers: $0.50 per page or
any portion of a page; and $2 for the certificate, with seal
affixed, except that there shall be no charge for making or
certifying copies that are furnished to any governmental
agency for official use.
For recording a duplicate of an affidavit showing the
appointment of trustees of a religious corporation: $0.50;
and $2 for the certificate of recording, with seal affixed.
For filing and recording an application under the Soil
Conservation Districts Law and making and issuing a
certificate for the application, under seal: $10.
For recording any other document, instrument, or paper
required or permitted to be recorded with the Secretary of
State, which recording shall be done by any approved
photographic or photostatic process, if the page to be
recorded does not exceed legal size and the fees and charges
therefor are not otherwise fixed by law: $0.50 per page or
any portion of a page; and $2 for the certificate of
recording, with seal affixed.
For recording any other document, instrument, or paper
required or permitted to be recorded with the Secretary of
State, which recording shall be done by any approved
photographic or photostatic process, if the page to be
recorded exceeds legal size and the fees and charges therefor
are not otherwise fixed by law: $1 per page or any portion of
a page; and $2 for the certificate of recording attached to
the original, with seal affixed.
For each duplicate certified copy of a school land
patent: $3.
For each photostatic copy of a township plat: $2.
For each page of a photostatic copy of surveyors field
notes: $2.
For each page of a photostatic copy of a state land
patent, including certification: $4.
For each page of a photostatic copy of a swamp land
grant: $2.
For each page of photostatic copies of all other
instruments or documents relating to land records: $2.
For each check, money order, or bank draft returned by
the Secretary of State when it has not been honored: $25 $2.
For any research request received after the effective
date of the changes made to this Section by this amendatory
Act of the 93rd General Assembly by an out-of-State or
non-Illinois resident: $10, prepaid and nonrefundable, for
which the requester will receive up to 2 unofficial
noncertified copies of the records requested. The fees under
this paragraph shall be deposited into the General Revenue
Fund.
The Illinois State Archives is authorized to charge
reasonable fees to reimburse the cost of production and
distribution of copies of finding aids to the records that it
holds or copies of published versions or editions of those
records in printed, microfilm, or electronic formats. The
fees under this paragraph shall be deposited into the General
Revenue Fund.
As used in this Section, "legal size" means a sheet of
paper that is 8.5 inches wide and 14 inches long, or written
or printed matter on a sheet of paper that does not exceed
that width and length, or either of them.
(Source: P.A. 89-233, eff. 1-1-96.)
Section 75-2. The Capital Development Board Act is
amended by changing Section 9.02a as follows:
(20 ILCS 3105/9.02a) (from Ch. 127, par. 779.02a)
(This Section is scheduled to be repealed on June 30,
2004)
Sec. 9.02a. To charge contract administration fees used
to administer and process the terms of contracts awarded by
this State. Contract administration fees shall not exceed 3%
1.5% of the contract amount. This Section is repealed June
30, 2004.
(Source: P.A. 91-795, eff. 6-9-00.)
Section 75-2.5. The Lobbyist Registration Act is amended
by changing Section 5 as follows:
(25 ILCS 170/5) (from Ch. 63, par. 175)
Sec. 5. Lobbyist registration and disclosure. Every
person required to register under Section 3 shall each and
every year, or before any such service is performed which
requires the person to register, file in the Office of the
Secretary of State a written statement containing the
following information:
(a) The name and address of the registrant.
(b) The name and address of the person or persons
employing or retaining registrant to perform such
services or on whose behalf the registrant appears.
(c) A brief description of the executive,
legislative, or administrative action in reference to
which such service is to be rendered.
(d) A picture of the registrant.
Persons required to register under this Act prior to July
1, 2003, shall remit a single, annual and nonrefundable $50
registration fee. All fees collected for registrations prior
to July 1, 2003, shall be deposited into the Lobbyist
Registration Administration Fund for administration and
enforcement of this Act. Beginning July 1, 2003, all persons
other than entities qualified under Section 501(c)(3) of the
Internal Revenue Code required to register under this Act
shall remit a single, annual, and nonrefundable $300
registration fee. Entities required to register under this
Act which are qualified under Section 501(c)(3) of the
Internal Revenue Code shall remit a single, annual, and
nonrefundable $100 registration fee. The increases in the
fees from $50 to $100 and from $50 to $300 by this amendatory
Act of the 93rd General Assembly are in addition to any other
fee increase enacted by the 93rd or any subsequent General
Assembly. Of each registration fee collected for
registrations on or after July 1, 2003, any additional amount
collected as a result of any other fee increase enacted by
the 93rd or any subsequent General Assembly shall be
deposited into the Lobbyist Registration Administration Fund
for the purposes provided by law for that fee increase, the
next $100 shall be deposited into the Lobbyist Registration
Administration Fund for administration and enforcement of
this Act, and any balance shall be deposited into the General
Revenue Fund.
(Source: P.A. 88-187.)
Section 75-3. The State Finance Act is amended by adding
Section 5.596 and changing Sections 6z-34 and 6z-48 as
follows:
(30 ILCS 105/5.596 new)
Sec. 5.596. The Illinois Clean Water Fund.
(30 ILCS 105/6z-34)
Sec. 6z-34. Secretary of State Special Services Fund.
There is created in the State Treasury a special fund to be
known as the Secretary of State Special Services Fund.
Moneys deposited into the Fund may, subject to appropriation,
be used by the Secretary of State for any or all of the
following purposes:
(1) For general automation efforts within
operations of the Office of Secretary of State.
(2) For technology applications in any form that
will enhance the operational capabilities of the Office
of Secretary of State.
(3) To provide funds for any type of library grants
authorized and administered by the Secretary of State as
State Librarian.
These funds are in addition to any other funds otherwise
authorized to the Office of Secretary of State for like or
similar purposes.
On August 15, 1997, all fiscal year 1997 receipts that
exceed the amount of $15,000,000 shall be transferred from
this Fund to the Statistical Services Revolving Fund; on
August 15, 1998 and each year thereafter through 2000, all
receipts from the fiscal year ending on the previous June
30th that exceed the amount of $17,000,000 shall be
transferred from this Fund to the Statistical Services
Revolving Fund; and on August 15, 2001 and each year
thereafter through 2002, all receipts from the fiscal year
ending on the previous June 30th that exceed the amount of
$19,000,000 shall be transferred from this Fund to the
Statistical Services Revolving Fund; and on August 15, 2003
and each year thereafter, all receipts from the fiscal year
ending on the previous June 30th that exceed the amount of
$33,000,000 shall be transferred from this Fund to the
Statistical Services Revolving Fund.
(Source: P.A. 92-32, eff. 7-1-01.)
(30 ILCS 105/6z-48)
Sec. 6z-48. Motor Vehicle License Plate Fund.
(a) The Motor Vehicle License Plate Fund is hereby
created as a special fund in the State Treasury. The Fund
shall consist of the deposits provided for in Section 2-119
of the Illinois Vehicle Code and any moneys appropriated to
the Fund.
(b) The Motor Vehicle License Plate Fund shall be used,
subject to appropriation, for the costs incident to providing
new or replacement license plates for motor vehicles.
(c) Any balance remaining in the Motor Vehicle License
Plate Fund at the close of business on December 31, 2004
shall be transferred into the Road Fund, and the Motor
Vehicle License Plate Fund is abolished when that transfer
has been made.
(Source: P.A. 91-37, eff. 7-1-99.)
Section 75-4. The Coin-Operated Amusement Device and
Redemption Machine Tax Act is amended by changing Sections 1,
2, 3, 4b, and 6 as follows:
(35 ILCS 510/1) (from Ch. 120, par. 481b.1)
Sec. 1. There is imposed, on the privilege of operating
every coin-in-the-slot-operated amusement device, including a
device operated or operable by insertion of coins, tokens,
chips or similar objects, in this State which returns to the
player thereof no money or property or right to receive money
or property, and on the privilege of operating in this State
a redemption machine as defined in Section 28-2 of the
Criminal Code of 1961, an annual a privilege tax of $30 $15
for each device for which a license was issued for a period
beginning on or after August 1 of any year and prior to
August February 1 of the succeeding year. A privilege tax of
$8 is imposed on the privilege of operating such a device for
which a license was issued for a period beginning on or after
February 1 of any year and ending July 31 of that year.
(Source: P.A. 86-905; 86-957; 87-855.)
(35 ILCS 510/2) (from Ch. 120, par. 481b.2)
Sec. 2. (a) Any person, firm, limited liability company,
or corporation which displays any device described in Section
1, to be played or operated by the public at any place owned
or leased by any such person, firm, limited liability
company, or corporation, shall before he displays such
device, file in the Office of the Department of Revenue a
form containing information regarding an application for a
license for such device properly sworn to, setting forth his
name and address, with a brief description of the device to
be displayed and the premises where such device will be
located, together with such other relevant data as the
Department of Revenue may require. Such form application for
a license shall be accompanied by the required privilege
license tax for each device. Such privilege license tax shall
be paid to the Department of Revenue of the State of Illinois
and all monies received by the Department of Revenue under
this Act shall be paid into the General Revenue Fund in the
State Treasury. The Department of Revenue shall supply and
deliver to the person, firm, limited liability company, or
corporation which displays any device described in Section 1,
charges prepaid and without additional cost, one privilege
tax decal license tag for each such device on which the tax
has been paid an application is made, stating the year for
which issued. Such privilege tax decal license tag shall
thereupon be securely affixed to such device.
(b) If an amount of tax, penalty, or interest has been
paid in error to the Department, the taxpayer may file a
claim for credit or refund with the Department. If it is
determined that the Department must issue a credit or refund
under this Act, the Department may first apply the amount of
the credit or refund due against any amount of tax, penalty,
or interest due under this Act from the taxpayer entitled to
the credit or refund. If proceedings are pending to
determine if any tax, penalty, or interest is due under this
Act from the taxpayer, the Department may withhold issuance
of the credit or refund pending the final disposition of
those proceedings and may apply that credit or refund against
any amount determined to be due to the Department as a result
of those proceedings. The balance, if any, of the credit or
refund shall be paid to the taxpayer.
If no tax, penalty, or interest is due and no proceedings
are pending to determine whether the taxpayer is indebted to
the Department for tax, penalty, or interest, the credit
memorandum or refund shall be issued to the taxpayer; or, the
credit memorandum may be assigned by the taxpayer, subject to
reasonable rules of the Department, to any other person who
is subject to this Act, and the amount of the credit
memorandum by the Department against any tax, penalty, or
interest due or to become due under this Act from the
assignee.
For any claim for credit or refund filed with the
Department on or after each July 1, no amount erroneously
paid more than 3 years before that July 1, shall be credited
or refunded.
A claim for credit or refund shall be filed on a form
provided by the Department. As soon as practicable after any
claim for credit or refund is filed, the Department shall
determine the amount of credit or refund to which the
claimant is entitled and shall notify the claimant of that
determination.
A claim for credit or refund shall be filed with the
Department on the date it is received by the Department.
Upon receipt of any claim for credit or refund filed under
this Section, an officer or employee of the Department,
authorized by the Director of Revenue to acknowledge receipt
of such claims on behalf of the Department, shall deliver or
mail to the claimant or his duly authorized agent, a written
receipt, acknowledging that the claim has been filed with the
Department, describing the claim in sufficient detail to
identify it, and stating the date on which the claim was
received by the Department. The written receipt shall be
prima facie evidence that the Department received the claim
described in the receipt and shall be prima facie evidence of
the date when such claim was received by the Department. In
the absence of a written receipt, the records of the
Department as to whether a claim was received, or when the
claim was received by the Department, shall be deemed to be
prima facie correct in the event of any dispute between the
claimant, or his legal representative, and the Department on
these issues.
Any credit or refund that is allowed under this Article
shall bear interest at the rate and in the manner specified
in the Uniform Penalty and Interest Act.
If the Department determines that the claimant is
entitled to a refund, the refund shall be made only from an
appropriation to the Department for that purpose. If the
amount appropriated is insufficient to pay claimants electing
to receive a cash refund, the Department by rule or
regulation shall first provide for the payment of refunds in
hardship cases as defined by the Department.
(Source: P.A. 88-194; 88-480; 88-670, eff. 12-2-94.)
(35 ILCS 510/3) (from Ch. 120, par. 481b.3)
Sec. 3. (1) All privilege tax decals licenses herein
provided for shall be transferable from one device to another
device. Any such transfer from one device to another shall be
reported to the Department of Revenue on forms prescribed by
such Department. All privilege tax decals licenses issued
hereunder shall expire on July 31 following issuance.
(2) (Blank).
(Source: P.A. 91-357, eff. 7-29-99.)
(35 ILCS 510/4b) (from Ch. 120, par. 481b.4b)
Sec. 4b. The Department of Revenue is hereby authorized
to implement a program whereby the privilege tax decals
licenses required by and the taxes imposed by this Act may be
distributed and collected on behalf of the Department by
State or national banks and by State or federal savings and
loan associations. The Department shall promulgate such
rules and regulations as are reasonable and necessary to
establish the system of collection of taxes and distribution
of privilege tax decals licenses authorized by this Section.
Such rules and regulations shall provide for the licensing of
such financial institutions, specification of information to
be disclosed in an application therefor and the imposition of
a license fee not in excess of $100 annually.
(Source: P.A. 85-1423.)
(35 ILCS 510/6) (from Ch. 120, par. 481b.6)
Sec. 6. The Department of Revenue is hereby empowered and
authorized in the name of the People of the State of Illinois
in a suit or suits in any court of competent jurisdiction to
enforce the collection of any unpaid license tax, fines or
penalties provided for in this Act.
(Source: Laws 1953, p. 956.)
(35 ILCS 510/9 rep.)
Section 75-4.1. The Coin-Operated Amusement Device and
Redemption Machine Tax Act is amended by repealing Section 9.
Section 75-5. The Illinois Pension Code is amended by
changing Section 1A-112 as follows:
(40 ILCS 5/1A-112)
Sec. 1A-112. Fees.
(a) Every pension fund that is required to file an
annual statement under Section 1A-109 shall pay to the
Department an annual compliance fee. In the case of a
pension fund under Article 3 or 4 of this Code, the annual
compliance fee shall be 0.02% 0.007% (2 0.7 basis points) of
the total assets of the pension fund, as reported in the most
current annual statement of the fund, but not more than
$8,000 $6,000. In the case of all other pension funds and
retirement systems, the annual compliance fee shall be $8,000
$6,000.
(b) The annual compliance fee shall be due on June 30
for the following State fiscal year, except that the fee
payable in 1997 for fiscal year 1998 shall be due no earlier
than 30 days following the effective date of this amendatory
Act of 1997.
(c) Any information obtained by the Division that is
available to the public under the Freedom of Information Act
and is either compiled in published form or maintained on a
computer processible medium shall be furnished upon the
written request of any applicant and the payment of a
reasonable information services fee established by the
Director, sufficient to cover the total cost to the Division
of compiling, processing, maintaining, and generating the
information. The information may be furnished by means of
published copy or on a computer processed or computer
processible medium.
No fee may be charged to any person for information that
the Division is required by law to furnish to that person.
(d) Except as otherwise provided in this Section, all
fees and penalties collected by the Department under this
Code shall be deposited into the Public Pension Regulation
Fund.
(e) Fees collected under subsection (c) of this Section
and money collected under Section 1A-107 shall be deposited
into the Department's Statistical Services Revolving Fund and
credited to the account of the Public Pension Division. This
income shall be used exclusively for the purposes set forth
in Section 1A-107. Notwithstanding the provisions of Section
408.2 of the Illinois Insurance Code, no surplus funds
remaining in this account shall be deposited in the Insurance
Financial Regulation Fund. All money in this account that
the Director certifies is not needed for the purposes set
forth in Section 1A-107 of this Code shall be transferred to
the Public Pension Regulation Fund.
(f) Nothing in this Code prohibits the General Assembly
from appropriating funds from the General Revenue Fund to the
Department for the purpose of administering or enforcing this
Code.
(Source: P.A. 90-507, eff. 8-22-97.)
Section 75-7. The Illinois Savings and Loan Act of 1985
is amended by changing Section 2B-6 as follows:
(205 ILCS 105/2B-6) (from Ch. 17, par. 3302B-6)
Sec. 2B-6. Foreign savings and loan associations shall
pay to the Commissioner the following fees that shall be paid
into the Savings and Residential Finance Regulatory Fund, to
wit: For filing each application for admission to do
business in this State, $1,125 $750; and for each certificate
of authority and annual renewal of same, $300 $200.
(Source: P.A. 85-1143; 86-1213.)
Section 75-10. The Illinois Credit Union Act is amended
by changing Section 12 as follows:
(205 ILCS 305/12) (from Ch. 17, par. 4413)
Sec. 12. Regulatory fees.
(1) A credit union regulated by the Department shall pay
a regulatory fee to the Department based upon its total
assets as shown by its Year-end Call Report at the following
rates:
TOTAL ASSETS REGULATORY FEE
$25,000 or less .............. $150 $100
Over $25,000 and not over
$100,000 ..................... $150 $100 plus $6 $4 per
$1,000 of assets in excess of
$25,000
Over $100,000 and not over
$200,000 ..................... $600 $400 plus $4.50 $3 per
$1,000 of assets in excess of
$100,000
Over $200,000 and not over
$500,000 ..................... $1,050 $700 plus $3 $2 per
$1,000 of assets in excess of
$200,000
Over $500,000 and not over
$1,000,000 ................... $1,950 $1,300 plus $2.10 $1.40
per $1,000 of assets in excess
of $500,000
Over $1,000,000 and not
over $5,000,000............... $3,000 $2,000 plus $0.75 $0.50
per $1,000 of assets in
excess of $1,000,000
Over $5,000,000 and not
over $30,000,000 ............. $6,000 $4,000 plus $0.525
$0.35 per $1,000 assets
in excess of $5,000,000
Over $30,000,000 and not
over $100,000,000 ............ $19,125 $12,750 plus $0.45
$0.30 per $1,000 of assets in
excess of $30,000,000
Over $100,000,000 and not
over $500,000,000 ............ $50,625 $33,750 plus $0.225
$0.15 per $1,000 of assets in
excess of $100,000,000
Over $500,000,000 ............ $140,625 $93,750 plus $0.075
$0.05 per $1,000 of assets in
excess of $500,000,000
(2) The Director shall review the regulatory fee
schedule in subsection (1) and the projected earnings on
those fees on an annual basis and adjust the fee schedule no
more than 5% annually if necessary to defray the estimated
administrative and operational expenses of the Department as
defined in subsection (5). The Director shall provide credit
unions with written notice of any adjustment made in the
regulatory fee schedule.
(3) Not later than March 1 of each calendar year, a
credit union shall pay to the Department a regulatory fee for
that calendar year in accordance with the regulatory fee
schedule in subsection (1), on the basis of assets as of the
Year-end Call Report of the preceding year. The regulatory
fee shall not be less than $150 $100 or more than $187,500
$125,000, provided that the regulatory fee cap of $187,500
$125,000 shall be adjusted to incorporate the same percentage
increase as the Director makes in the regulatory fee schedule
from time to time under subsection (2). No regulatory fee
shall be collected from a credit union until it has been in
operation for one year.
(4) The aggregate of all fees collected by the
Department under this Act shall be paid promptly after they
are received, accompanied by a detailed statement thereof,
into the State Treasury and shall be set apart in the Credit
Union Fund, a special fund hereby created in the State
treasury. The amount from time to time deposited in the
Credit Union Fund and shall be used to offset the ordinary
administrative and operational expenses of the Department
under this Act. All earnings received from investments of
funds in the Credit Union Fund shall be deposited into the
Credit Union Fund and may be used for the same purposes as
fees deposited into that Fund.
(5) The administrative and operational expenses for any
calendar year shall mean the ordinary and contingent expenses
for that year incidental to making the examinations provided
for by, and for administering, this Act, including all
salaries and other compensation paid for personal services
rendered for the State by officers or employees of the State
to enforce this Act; all expenditures for telephone and
telegraph charges, postage and postal charges, office
supplies and services, furniture and equipment, office space
and maintenance thereof, travel expenses and other necessary
expenses; all to the extent that such expenditures are
directly incidental to such examination or administration.
(6) When the aggregate of all fees collected by the
Department under this Act and all earnings thereon for any
calendar year exceeds 150% of the total administrative and
operational expenses under this Act for that year, such
excess shall be credited to credit unions and applied against
their regulatory fees for the subsequent year. The amount
credited to a credit union shall be in the same proportion as
the fee paid by such credit union for the calendar year in
which the excess is produced bears to the aggregate of the
fees collected by the Department under this Act for the same
year.
(7) Examination fees for the year 2000 statutory
examinations paid pursuant to the examination fee schedule in
effect at that time shall be credited toward the regulatory
fee to be assessed the credit union in calendar year 2001.
(8) Nothing in this Act shall prohibit the General
Assembly from appropriating funds to the Department from the
General Revenue Fund for the purpose of administering this
Act.
(Source: P.A. 91-755, eff. 1-1-01; 92-293, eff. 8-9-01.)
Section 75-15. The Currency Exchange Act is amended by
changing Section 16 as follows:
(205 ILCS 405/16) (from Ch. 17, par. 4832)
Sec. 16. Annual report; investigation; costs. Each
licensee shall annually, on or before the 1st day of March,
file a report with the Director for the calendar year period
from January 1st through December 31st, except that the
report filed on or before March 15, 1990 shall cover the
period from October 1, 1988 through December 31, 1989, (which
shall be used only for the official purposes of the Director)
giving such relevant information as the Director may
reasonably require concerning, and for the purpose of
examining, the business and operations during the preceding
fiscal year period of each licensed currency exchange
conducted by such licensee within the State. Such report
shall be made under oath and shall be in the form prescribed
by the Director and the Director may at any time and shall at
least once in each year investigate the currency exchange
business of any licensee and of every person, partnership,
association, limited liability company, and corporation who
or which shall be engaged in the business of operating a
currency exchange. For that purpose, the Director shall have
free access to the offices and places of business and to such
records of all such persons, firms, partnerships,
associations, limited liability companies and members
thereof, and corporations and to the officers and directors
thereof that shall relate to such currency exchange business.
The investigation may be conducted in conjunction with
representatives of other State agencies or agencies of
another state or of the United States as determined by the
Director. The Director may at any time inspect the locations
served by an ambulatory currency exchange, for the purpose of
determining whether such currency exchange is complying with
the provisions of this Act at each location served. The
Director may require by subpoena the attendance of and
examine under oath all persons whose testimony he may require
relative to such business, and in such cases the Director, or
any qualified representative of the Director whom the
Director may designate, may administer oaths to all such
persons called as witnesses, and the Director, or any such
qualified representative of the Director, may conduct such
examinations, and there shall be paid to the Director for
each such examination a fee of $225 $150 for each day or part
thereof for each qualified representative designated and
required to conduct the examination; provided, however, that
in the case of an ambulatory currency exchange, such fee
shall be $75 for each day or part thereof and shall not be
increased by reason of the number of locations served by it.
(Source: P.A. 92-398, eff. 1-1-02.)
Section 75-17. The Residential Mortgage License Act of
1987 is amended by changing Sections 2-2 and 2-6 as follows:
(205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
Sec. 2-2. Application process; investigation; fee.
(a) The Commissioner shall issue a license upon
completion of all of the following:
(1) The filing of an application for license.
(2) The filing with the Commissioner of a listing
of judgments entered against, and bankruptcy petitions
by, the license applicant for the preceding 10 years.
(3) The payment, in certified funds, of
investigation and application fees, the total of which
shall be in an amount equal to $2,700 $1,800 annually,
however, the Commissioner may increase the investigation
and application fees by rule as provided in Section 4-11.
(4) Except for a broker applying to renew a
license, the filing of an audited balance sheet including
all footnotes prepared by a certified public accountant
in accordance with generally accepted accounting
principles and generally accepted auditing principles
which evidences that the applicant meets the net worth
requirements of Section 3-5.
(5) The filing of proof satisfactory to the
Commissioner that the applicant, the members thereof if
the applicant is a partnership or association, the
members or managers thereof that retain any authority or
responsibility under the operating agreement if the
applicant is a limited liability company, or the officers
thereof if the applicant is a corporation have 3 years
experience preceding application in real estate finance.
Instead of this requirement, the applicant and the
applicant's officers or members, as applicable, may
satisfactorily complete a program of education in real
estate finance and fair lending, as approved by the
Commissioner, prior to receiving the initial license.
The Commissioner shall promulgate rules regarding proof
of experience requirements and educational requirements
and the satisfactory completion of those requirements.
The Commissioner may establish by rule a list of duly
licensed professionals and others who may be exempt from
this requirement.
(6) An investigation of the averments required by
Section 2-4, which investigation must allow the
Commissioner to issue positive findings stating that the
financial responsibility, experience, character, and
general fitness of the license applicant and of the
members thereof if the license applicant is a partnership
or association, of the officers and directors thereof if
the license applicant is a corporation, and of the
managers and members that retain any authority or
responsibility under the operating agreement if the
license applicant is a limited liability company are such
as to command the confidence of the community and to
warrant belief that the business will be operated
honestly, fairly and efficiently within the purpose of
this Act. If the Commissioner shall not so find, he or
she shall not issue such license, and he or she shall
notify the license applicant of the denial.
(b) All licenses shall be issued in duplicate with one
copy being transmitted to the license applicant and the
second being retained with the Commissioner.
Upon receipt of such license, a residential mortgage
licensee shall be authorized to engage in the business
regulated by this Act. Such license shall remain in full
force and effect until it expires without renewal, is
surrendered by the licensee or revoked or suspended as
hereinafter provided.
(Source: P.A. 91-586, eff. 8-14-99.)
(205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
Sec. 2-6. License issuance and renewal; fee.
(a) Beginning July 1, 2003, licenses shall be renewed
every year on the anniversary of the date of issuance of the
original license. Beginning May 1, 1992, licenses issued
before January 1, 1988, shall be renewed every 2 years on May
1. Beginning May 1, 1992, licenses issued on or after
January 1, 1988, shall be renewed every 2 years on the
anniversary of the date of the issuance of the original
license. Licenses issued for first time applicants on or
after May 1, 1992, shall be renewed on the first anniversary
of their issuance and every 2 years thereafter. Properly
completed renewal application forms and filing fees must be
received by the Commissioner 45 days prior to the renewal
date.
(b) It shall be the responsibility of each licensee to
accomplish renewal of its license; failure of the licensee to
receive renewal forms absent a request sent by certified mail
for such forms will not waive said responsibility. Failure by
a licensee to submit a properly completed renewal application
form and fees in a timely fashion, absent a written extension
from the Commissioner, will result in the assessment of
additional fees, as follows:
(1) A fee of $750 $500 will be assessed to the
licensee 30 days after the proper renewal date and $1,500
$1,000 each month thereafter, until the license is either
renewed or expires pursuant to Section 2-6, subsections
(c) and (d), of this Act.
(2) Such fee will be assessed without prior notice
to the licensee, but will be assessed only in cases
wherein the Commissioner has in his or her possession
documentation of the licensee's continuing activity for
which the unrenewed license was issued.
(c) A license which is not renewed by the date required
in this Section shall automatically become inactive. No
activity regulated by this Act shall be conducted by the
licensee when a license becomes inactive. An inactive
license may be reactivated by filing a completed reactivation
application with the Commissioner, payment of the renewal
fee, and payment of a reactivation fee equal to the renewal
fee.
(d) A license which is not renewed within one year of
becoming inactive shall expire.
(e) A licensee ceasing an activity or activities
regulated by this Act and desiring to no longer be licensed
shall so inform the Commissioner in writing and, at the same
time, convey the license and all other symbols or indicia of
licensure. The licensee shall include a plan for the
withdrawal from regulated business, including a timetable for
the disposition of the business. Upon receipt of such
written notice, the Commissioner shall issue a certified
statement canceling the license.
(Source: P.A. 90-301, eff. 8-1-97.)
Section 75-20. The Consumer Installment Loan Act is
amended by changing Section 2 as follows:
(205 ILCS 670/2) (from Ch. 17, par. 5402)
Sec. 2. Application; fees; positive net worth.
Application for such license shall be in writing, and in the
form prescribed by the Director. Such applicant at the time
of making such application shall pay to the Director the sum
of $300 as an application fee and the additional sum of $450
$300 as an annual license fee, for a period terminating on
the last day of the current calendar year; provided that if
the application is filed after June 30th in any year, such
license fee shall be 1/2 of the annual license fee for such
year.
Before the license is granted, every applicant shall
prove in form satisfactory to the Director that the applicant
has and will maintain a positive net worth of a minimum of
$30,000. Every applicant and licensee shall maintain a
surety bond in the principal sum of $25,000 issued by a
bonding company authorized to do business in this State and
which shall be approved by the Director. Such bond shall run
to the Director and shall be for the benefit of any consumer
who incurs damages as a result of any violation of the Act or
rules by a licensee. If the Director finds at any time that
a bond is of insufficient size, is insecure, exhausted, or
otherwise doubtful, an additional bond in such amount as
determined by the Director shall be filed by the licensee
within 30 days after written demand therefor by the Director.
"Net worth" means total assets minus total liabilities.
(Source: P.A. 92-398, eff. 1-1-02.)
Section 75-23. The Nursing Home Care Act is amended by
changing Section 3-103 as follows:
(210 ILCS 45/3-103) (from Ch. 111 1/2, par. 4153-103)
Sec. 3-103. The procedure for obtaining a valid license
shall be as follows:
(1) Application to operate a facility shall be made to
the Department on forms furnished by the Department.
(2) All license applications shall be accompanied with
an application fee. The fee for an annual license shall be
based on the licensed capacity of the facility and shall be
determined as follows: 0-49 licensed beds, a flat fee of
$500; 50-99 licensed beds, a flat fee of $750; and for any
facility with 100 or more licensed beds, a fee of $1,000 plus
$10 per licensed bed. The fee for a 2-year license shall be
double the fee for the annual license set forth in the
preceding sentence. The first $600,000 of such fees collected
each fiscal year shall be deposited with the State Treasurer
into the Long Term Care Monitor/Receiver Fund, which has been
created as a special fund in the State treasury. Any such
fees in excess of $600,000 collected in a fiscal year shall
be deposited into the General Revenue Fund. All applications,
except those of homes for the aged, shall be accompanied by
an application fee of $200 for an annual license and $400 for
a 2 year license. The fee shall be deposited with the State
Treasurer into the Long Term Care Monitor/Receiver Fund,
which is hereby created as a special fund in the State
Treasury. This special fund is to be used by the Department
for expenses related to the appointment of monitors and
receivers as contained in Sections 3-501 through 3-517. At
the end of each fiscal year, any funds in excess of
$1,000,000 held in the Long Term Care Monitor/Receiver Fund
shall be deposited in the State's General Revenue Fund. The
application shall be under oath and the submission of false
or misleading information shall be a Class A misdemeanor. The
application shall contain the following information:
(a) The name and address of the applicant if an
individual, and if a firm, partnership, or association,
of every member thereof, and in the case of a
corporation, the name and address thereof and of its
officers and its registered agent, and in the case of a
unit of local government, the name and address of its
chief executive officer;
(b) The name and location of the facility for which
a license is sought;
(c) The name of the person or persons under whose
management or supervision the facility will be conducted;
(d) The number and type of residents for which
maintenance, personal care, or nursing is to be provided;
and
(e) Such information relating to the number,
experience, and training of the employees of the
facility, any management agreements for the operation of
the facility, and of the moral character of the applicant
and employees as the Department may deem necessary.
(3) Each initial application shall be accompanied by a
financial statement setting forth the financial condition of
the applicant and by a statement from the unit of local
government having zoning jurisdiction over the facility's
location stating that the location of the facility is not in
violation of a zoning ordinance. An initial application for a
new facility shall be accompanied by a permit as required by
the "Illinois Health Facilities Planning Act". After the
application is approved, the applicant shall advise the
Department every 6 months of any changes in the information
originally provided in the application.
(4) Other information necessary to determine the
identity and qualifications of an applicant to operate a
facility in accordance with this Act shall be included in the
application as required by the Department in regulations.
(Source: P.A. 86-663; 87-1102.)
Section 75-25. The Illinois Insurance Code is amended by
changing Sections 121-19, 123A-4, 123B-4, 123C-17, 131.24,
141a, 149, 310.1, 315.4, 325, 363a, 370, 403, 403A, 408, 412,
431, 445, 500-70, 500-110, 500-120, 500-135, 511.103,
511.105, 511.110, 512.63, 513a3, 513a4, 513a7, 529.5, 544,
1020, 1108, and 1204 as follows:
(215 ILCS 5/121-19) (from Ch. 73, par. 733-19)
Sec. 121-19. Fine for unauthorized insurance. Any
unauthorized insurer who transacts any unauthorized act of an
insurance business as set forth in this Act is guilty of a
business offense and may be fined not more than $20,000
$10,000.
(Source: P. A. 78-255.)
(215 ILCS 5/123A-4) (from Ch. 73, par. 735A-4)
Sec. 123A-4. Licenses-Application-Fees.
(1) An advisory organization must be licensed by the
Director before it is authorized to conduct activities in
this State.
(2) Any advisory organization shall make application for
a license as an advisory organization by providing with the
application satisfactory evidence to the Director that it has
complied with Sections 123A-6 and 123A-7 of this Article.
(3) The fee for filing an application as an advisory
organization is $50 $25 payable to the Director.
(Source: P. A. 77-1882.)
(215 ILCS 5/123B-4) (from Ch. 73, par. 735B-4)
Sec. 123B-4. Risk retention groups not organized in this
State. Any risk retention group organized and licensed in a
state other than this State and seeking to do business as a
risk retention group in this State shall comply with the laws
of this State as follows:
A. Notice of operations and designation of the Director
as agent.
Before offering insurance in this State, a risk retention
group shall submit to the Director on a form approved by the
Director:
(1) a statement identifying the state or states in
which the risk retention group is organized and licensed
as a liability insurance company, its date of
organization, its principal place of business, and such
other information, including information on its
membership, as the Director may require to verify that
the risk retention group is qualified under subsection
(11) of Section 123B-2 of this Article;
(2) a copy of its plan of operations or a
feasibility study and revisions of such plan or study
submitted to its state of domicile; provided, however,
that the provision relating to the submission of a plan
of operation or a feasibility study shall not apply with
respect to any line or classification of liability
insurance which (a) was defined in the Product Liability
Risk Retention Act of 1981 before October 27, 1986, and
(b) was offered before such date by any risk retention
group which had been organized and operating for not less
than 3 years before such date; and
(3) a statement of registration which designates
the Director as its agent for the purpose of receiving
service of legal documents or process, together with a
filing fee of $200 $100 payable to the Director.
B. Financial condition. Any risk retention group doing
business in this State shall submit to the Director:
(1) a copy of the group's financial statement
submitted to the state in which the risk retention group
is organized and licensed, which shall be certified by an
independent public accountant and contain a statement of
opinion on loss and loss adjustment expense reserves made
by a member of the American Academy of Actuaries or a
qualified loss reserve specialist (under criteria
established by the National Association of Insurance
Commissioners);
(2) a copy of each examination of the risk
retention group as certified by the public official
conducting the examination;
(3) upon request by the Director, a copy of any
audit performed with respect to the risk retention group;
and
(4) such information as may be required to verify
its continuing qualification as a risk retention group
under subsection (11) of Section 123B-2.
C. Taxation.
(1) Each risk retention group shall be liable for
the payment of premium taxes and taxes on premiums of
direct business for risks resident or located within this
State, and shall report to the Director the net premiums
written for risks resident or located within this State.
Such risk retention group shall be subject to taxation,
and any applicable fines and penalties related thereto,
on the same basis as a foreign admitted insurer.
(2) To the extent licensed insurance producers are
utilized pursuant to Section 123B-11, they shall report
to the Director the premiums for direct business for
risks resident or located within this State which such
licensees have placed with or on behalf of a risk
retention group not organized in this State.
(3) To the extent that licensed insurance producers
are utilized pursuant to Section 123B-11, each such
producer shall keep a complete and separate record of all
policies procured from each such risk retention group,
which record shall be open to examination by the
Director, as provided in Section 506.1 of this Code.
These records shall, for each policy and each kind of
insurance provided thereunder, include the following:
(a) the limit of the liability;
(b) the time period covered;
(c) the effective date;
(d) the name of the risk retention group which
issued the policy;
(e) the gross premium charged; and
(f) the amount of return premiums, if any.
D. Compliance With unfair claims practices provisions.
Any risk retention group, its agents and representatives
shall be subject to the unfair claims practices provisions of
Sections 154.5 through 154.8 of this Code.
E. Deceptive, false, or fraudulent practices. Any risk
retention group shall comply with the laws of this State
regarding deceptive, false, or fraudulent acts or practices.
However, if the Director seeks an injunction regarding such
conduct, the injunction must be obtained from a court of
competent jurisdiction.
F. Examination regarding financial condition. Any risk
retention group must submit to an examination by the Director
to determine its financial condition if the commissioner of
insurance of the jurisdiction in which the group is organized
and licensed has not initiated an examination or does not
initiate an examination within 60 days after a request by the
Director. Any such examination shall be coordinated to avoid
unjustified repetition and conducted in an expeditious manner
and in accordance with the National Association of Insurance
Commissioners' Examiner Handbook.
G. Notice to purchasers. Every application form for
insurance from a risk retention group and the front page and
declaration page of every policy issued by a risk retention
group shall contain in 10 point type the following notice:
"NOTICE
This policy is issued by your risk retention group. Your
risk retention group is not subject to all of the insurance
laws and regulations of your state. State insurance
insolvency guaranty fund protection is not available for your
risk retention group".
H. Prohibited acts regarding solicitation or sale. The
following acts by a risk retention group are hereby
prohibited:
(1) the solicitation or sale of insurance by a risk
retention group to any person who is not eligible for
membership in such group; and
(2) the solicitation or sale of insurance by, or
operation of, a risk retention group that is in a
hazardous financial condition or is financially impaired.
I. Prohibition on ownership by an insurance company. No
risk retention group shall be allowed to do business in this
State if an insurance company is directly or indirectly a
member or owner of such risk retention group, other than in
the case of a risk retention group all of whose members are
insurance companies.
J. Prohibited coverage. No risk retention group may
offer insurance policy coverage prohibited by Articles IX or
XI of this Code or declared unlawful by the Illinois Supreme
Court; provided however, a risk retention group organized and
licensed in a state other than this State that selects the
law of this State to govern the validity, construction, or
enforceability of policies issued by it is permitted to
provide coverage under policies issued by it for penalties in
the nature of compensatory damages including, without
limitation, punitive damages and the multiplied portion of
multiple damages, so long as coverage of those penalties is
not prohibited by the law of the state under which the risk
retention group is organized.
K. Delinquency proceedings. A risk retention group not
organized in this State and doing business in this State
shall comply with a lawful order issued in a voluntary
dissolution proceeding or in a conservation, rehabilitation,
liquidation, or other delinquency proceeding commenced by the
Director or by another state insurance commissioner if there
has been a finding of financial impairment after an
examination under subsection F of Section 123B-4 of this
Article.
L. Compliance with injunctive relief. A risk retention
group shall comply with an injunctive order issued in another
state by a court of competent jurisdiction or by a United
States District Court based on a finding of financial
impairment or hazardous financial condition.
M. Penalties. A risk retention group that violates any
provision of this Article will be subject to fines and
penalties applicable to licensed insurers generally,
including revocation of its license or the right to do
business in this State, or both.
N. Operations prior to August 3, 1987. In addition to
complying with the requirements of this Section, any risk
retention group operating in this State prior to August 3,
1987, shall within 30 days after such effective date comply
with the provisions of subsection A of this Section.
(Source: P.A. 91-292, eff. 7-29-99.)
(215 ILCS 5/123C-17) (from Ch. 73, par. 735C-17)
Sec. 123C-17. Fees.
A. The Director shall charge, collect, and give proper
acquittances for the payment of the following fees and
charges with respect to a captive insurance company:
1. For filing all documents submitted for the
incorporation or organization or certification of a
captive insurance company, $7,000 $3,500.
2. For filing requests for approval of changes in
the elements of a plan of operations, $200 $100.
B. Except as otherwise provided in subsection A of this
Section and in Section 123C-10, the provisions of Section 408
shall apply to captive insurance companies.
C. Any funds collected from captive insurance companies
pursuant to this Section shall be treated in the manner
provided in subsection (11) of Section 408.
(Source: P.A. 87-108.)
(215 ILCS 5/131.24) (from Ch. 73, par. 743.24)
Sec. 131.24. Sanctions.
(1) Every director or officer of an insurance holding
company system who knowingly violates, participates in, or
assents to, or who knowingly permits any of the officers or
agents of the company to engage in transactions or make
investments which have not been properly filed or approved or
which violate this Article, shall pay, in their individual
capacity, a civil forfeiture of not more than $100,000
$50,000 per violation, after notice and hearing before the
Director. In determining the amount of the civil forfeiture,
the Director shall take into account the appropriateness of
the forfeiture with respect to the gravity of the violation,
the history of previous violations, and such other matters as
justice may require.
(2) Whenever it appears to the Director that any company
subject to this Article or any director, officer, employee or
agent thereof has engaged in any transaction or entered into
a contract which is subject to Section 131.20, and any one of
Sections 131.16, 131.20a, 141, 141.1, or 174 of this Code and
which would not have been approved had such approval been
requested or would have been disapproved had required notice
been given, the Director may order the company to cease and
desist immediately any further activity under that
transaction or contract. After notice and hearing the
Director may also order (a) the company to void any such
contracts and restore the status quo if such action is in the
best interest of the policyholders or the public, and (b) any
affiliate of the company, which has received from the company
dividends, distributions, assets, loans, extensions of
credit, guarantees, or investments in violation of any such
Section, to immediately repay, refund or restore to the
company such dividends, distributions, assets, extensions of
credit, guarantees or investments.
(3) Whenever it appears to the Director that any company
or any director, officer, employee or agent thereof has
committed a willful violation of this Article, the Director
may cause criminal proceedings to be instituted in the
Circuit Court for the county in which the principal office of
the company is located or in the Circuit Court of Sangamon or
Cook County against such company or the responsible director,
officer, employee or agent thereof. Any company which
willfully violates this Article commits a business offense
and may be fined up to $500,000 $250,000. Any individual who
willfully violates this Article commits a Class 4 felony and
may be fined in his individual capacity not more than
$500,000 $250,000 or be imprisoned for not less than one year
nor more than 3 years, or both.
(4) Any officer, director, or employee of an insurance
holding company system who willfully and knowingly subscribes
to or makes or causes to be made any false statements or
false reports or false filings with the intent to deceive the
Director in the performance of his duties under this Article,
commits a Class 3 felony and upon conviction thereof, shall
be imprisoned for not less than 2 years nor more than 5
years or fined $500,000 $250,000 or both. Any fines imposed
shall be paid by the officer, Director, or employee in his
individual capacity.
(Source: P.A. 89-97, eff. 7-7-95.)
(215 ILCS 5/141a) (from Ch. 73, par. 753a)
Sec. 141a. Managing general agents and retrospective
compensation agreements.
(a) As used in this Section, the following terms have
the following meanings:
"Actuary" means a person who is a member in good standing
of the American Academy of Actuaries.
"Gross direct written premium" means direct premium
including policy and membership fees, net of returns and
cancellations, and prior to any cessions.
"Insurer" means any person duly licensed in this State as
an insurance company pursuant to Articles II, III, III 1/2,
IV, V, VI, and XVII of this Code.
"Managing general agent" means any person, firm,
association, or corporation, either separately or together
with affiliates, that:
(1) manages all or part of the insurance business
of an insurer (including the management of a separate
division, department, or underwriting office), and
(2) acts as an agent for the insurer whether known
as a managing general agent, manager, or other similar
term, and
(3) with or without the authority produces,
directly or indirectly, and underwrites:
(A) within any one calendar quarter, an amount
of gross direct written premium equal to or more
than 5% of the policyholders' surplus as reported in
the insurer's last annual statement, or
(B) within any one calendar year, an amount of
gross direct written premium equal to or more than
8% of the policyholders' surplus as reported in the
insurer's last annual statement, and either
(4) has the authority to bind the company in
settlement of individual claims in amounts in excess of
$500, or
(5) has the authority to negotiate reinsurance on
behalf of the insurer.
Notwithstanding the provisions of items (1) through (5),
the following persons shall not be considered to be managing
general agents for the purposes of this Code:
(1) An employee of the insurer;
(2) A U.S. manager of the United States branch of
an alien insurer;
(3) An underwriting manager who, pursuant to a
contract meeting the standards of Section 141.1 manages
all or part of the insurance operations of the insurer,
is affiliated with the insurer, subject to Article VIII
1/2, and whose compensation is not based on the volume of
premiums written;
(4) The attorney or the attorney in fact authorized
and acting for or on behalf of the subscriber
policyholders of a reciprocal or inter-insurance
exchange, under the terms of the subscription agreement,
power of attorney, or policy of insurance or the attorney
in fact for any Lloyds organization licensed in this
State.
"Retrospective compensation agreement" means any
arrangement, agreement, or contract having as its purpose the
actual or constructive retention by the insurer of a fixed
proportion of the gross premiums, with the balance of the
premiums, retained actually or constructively by the agent or
the producer of the business, who assumes to pay therefrom
all losses, all subordinate commission, loss adjustment
expenses, and his profit, if any, with other provisions of
the arrangement, agreement, or contract being auxiliary or
incidental to that purpose.
"Underwrite" means to accept or reject risk on behalf of
the insurer.
(b) Licensure of managing general agents.
(1) No person, firm, association, or corporation
shall act in the capacity of a managing general agent
with respect to risks located in this State for an
insurer licensed in this State unless the person is a
licensed producer or a registered firm in this State
under Article XXXI of this Code or a licensed third party
administrator in this State under Article XXXI 1/4 of
this Code.
(2) No person, firm, association, or corporation
shall act in the capacity of a managing general agent
with respect to risks located outside this State for an
insurer domiciled in this State unless the person is a
licensed producer or a registered firm in this State
under Article XXXI of this Code or a licensed third party
administrator in this State under Article XXXI 1/4 of
this Code.
(3) The managing general agent must provide a
surety bond for the benefit of the insurer in an amount
equal to the greater of $100,000 or 5% of the gross
direct written premium underwritten by the managing
general agent on behalf of the insurer. The bond shall
provide for a discovery period and prior notification of
cancellation in accordance with the rules of the
Department unless otherwise approved in writing by the
Director.
(4) The managing general agent must maintain an
errors and omissions policy for the benefit of the
insurer with coverage in an amount equal to the greater
of $1,000,000 or 5% of the gross direct written premium
underwritten by the managing general agent on behalf of
the insurer.
(5) Evidence of the existence of the bond and the
errors and omissions policy must be made available to the
Director upon his request.
(c) No person, firm, association, or corporation acting
in the capacity of a managing general agent shall place
business with an insurer unless there is in force a written
contract between the parties that sets forth the
responsibilities of each party, that, if both parties share
responsibility for a particular function, specifies the
division of responsibility, and that contains the following
minimum provisions:
(1) The insurer may terminate the contract for
cause upon written notice to the managing general agent.
The insurer may suspend the underwriting authority of the
managing general agent during the pendency of any dispute
regarding the cause for termination.
(2) The managing general agent shall render
accounts to the insurer detailing all transactions and
remit all funds due under the contract to the insurer on
not less than a monthly basis.
(3) All funds collected for the account of an
insurer shall be held by the managing general agent in a
fiduciary capacity in a bank that is a federally or State
chartered bank and that is a member of the Federal
Deposit Insurance Corporation. This account shall be
used for all payments on behalf of the insurer; however,
the managing general agent shall not have authority to
draw on any other accounts of the insurer. The managing
general agent may retain no more than 3 months estimated
claims payments and allocated loss adjustment expenses.
(4) Separate records of business written by the
managing general agent will be maintained. The insurer
shall have access to and the right to copy all accounts
and records related to its business in a form usable by
the insurer, and the Director shall have access to all
books, bank accounts, and records of the managing general
agent in a form usable to the Director.
(5) The contract may not be assigned in whole or
part by the managing general agent.
(6) The managing general agent shall provide to the
company audited financial statements required under
paragraph (1) of subsection (d).
(7) That appropriate underwriting guidelines be
followed, which guidelines shall stipulate the following:
(A) the maximum annual premium volume;
(B) the basis of the rates to be charged;
(C) the types of risks that may be written;
(D) maximum limits of liability;
(E) applicable exclusions;
(F) territorial limitations;
(G) policy cancellation provisions; and
(H) the maximum policy period.
(8) The insurer shall have the right to: (i) cancel
or nonrenew any policy of insurance subject to applicable
laws and regulations concerning those actions; and (ii)
require cancellation of any subproducer's contract after
appropriate notice.
(9) If the contract permits the managing general
agent to settle claims on behalf of the insurer:
(A) all claims must be reported to the company
in a timely manner.
(B) a copy of the claim file must be sent to
the insurer at its request or as soon as it becomes
known that the claim:
(i) has the potential to exceed an amount
determined by the company;
(ii) involves a coverage dispute;
(iii) may exceed the managing general
agent's claims settlement authority;
(iv) is open for more than 6 months; or
(v) is closed by payment of an amount set
by the company.
(C) all claim files will be the joint property
of the insurer and the managing general agent.
However, upon an order of liquidation of the
insurer, the files shall become the sole property of
the insurer or its estate; the managing general
agent shall have reasonable access to and the right
to copy the files on a timely basis.
(D) any settlement authority granted to the
managing general agent may be terminated for cause
upon the insurer's written notice to the managing
general agent or upon the termination of the
contract. The insurer may suspend the settlement
authority during the pendency of any dispute
regarding the cause for termination.
(10) Where electronic claims files are in
existence, the contract must address the timely
transmission of the data.
(11) If the contract provides for a sharing of
interim profits by the managing general agent and the
managing general agent has the authority to determine the
amount of the interim profits by establishing loss
reserves, controlling claim payments, or by any other
manner, interim profits will not be paid to the managing
general agent until one year after they are earned for
property insurance business and until 5 years after they
are earned on casualty business and in either case, not
until the profits have been verified.
(12) The managing general agent shall not:
(A) Bind reinsurance or retrocessions on
behalf of the insurer, except that the managing
general agent may bind facultative reinsurance
contracts under obligatory facultative agreements if
the contract with the insurer contains reinsurance
underwriting guidelines including, for both
reinsurance assumed and ceded, a list of reinsurers
with which automatic agreements are in effect, the
coverages and amounts or percentages that may be
reinsured, and commission schedules.
(B) Appoint any producer without assuring that
the producer is lawfully licensed to transact the
type of insurance for which he is appointed.
(C) Without prior approval of the insurer, pay
or commit the insurer to pay a claim over a
specified amount, net of reinsurance, that shall not
exceed 1% of the insurer's policyholders' surplus as
of December 31 of the last completed calendar year.
(D) Collect any payment from a reinsurer or
commit the insurer to any claim settlement with a
reinsurer without prior approval of the insurer. If
prior approval is given, a report must be promptly
forwarded to the insurer.
(E) Permit its subproducer to serve on its
board of directors.
(F) Employ an individual who is also employed
by the insurer.
(13) The contract may not be written for a term of
greater than 5 years.
(d) Insurers shall have the following duties:
(1) The insurer shall have on file the managing
general agent's audited financial statements as of the
end of the most recent fiscal year prepared in accordance
with Generally Accepted Accounting Principles. The
insurer shall notify the Director if the auditor's
opinion on those statements is other than an unqualified
opinion. That notice shall be given to the Director
within 10 days of receiving the audited financial
statements or becoming aware that such opinion has been
given.
(2) If a managing general agent establishes loss
reserves, the insurer shall annually obtain the opinion
of an actuary attesting to the adequacy of loss reserves
established for losses incurred and outstanding on
business produced by the managing general agent, in
addition to any other required loss reserve
certification.
(3) The insurer shall periodically (at least
semiannually) conduct an on-site review of the
underwriting and claims processing operations of the
managing general agent.
(4) Binding authority for all reinsurance contracts
or participation in insurance or reinsurance syndicates
shall rest with an officer of the insurer, who shall not
be affiliated with the managing general agent.
(5) Within 30 days of entering into or terminating
a contract with a managing general agent, the insurer
shall provide written notification of the appointment or
termination to the Director. Notices of appointment of a
managing general agent shall include a statement of
duties that the applicant is expected to perform on
behalf of the insurer, the lines of insurance for which
the applicant is to be authorized to act, and any other
information the Director may request.
(6) An insurer shall review its books and records
each quarter to determine if any producer has become a
managing general agent. If the insurer determines that a
producer has become a managing general agent, the insurer
shall promptly notify the producer and the Director of
that determination, and the insurer and producer must
fully comply with the provisions of this Section within
30 days of the notification.
(7) The insurer shall file any managing general
agent contract for the Director's approval within 45 days
after the contract becomes subject to this Section.
Failure of the Director to disapprove the contract within
45 days shall constitute approval thereof. Upon
expiration of the contract, the insurer shall submit the
replacement contract for approval. Contracts filed under
this Section shall be exempt from filing under Sections
141, 141.1 and 131.20a.
(8) An insurer shall not appoint to its board of
directors an officer, director, employee, or controlling
shareholder of its managing general agents. This
provision shall not apply to relationships governed by
Article VIII 1/2 of this Code.
(e) The acts of a managing general agent are considered
to be the acts of the insurer on whose behalf it is acting.
A managing general agent may be examined in the same manner
as an insurer.
(f) Retrospective compensation agreements for business
written under Section 4 of this Code in Illinois and outside
of Illinois by an insurer domiciled in this State must be
filed for approval. The standards for approval shall be as
set forth under Section 141 of this Code.
(g) Unless specifically required by the Director, the
provisions of this Section shall not apply to arrangements
between a managing general agent not underwriting any risks
located in Illinois and a foreign insurer domiciled in an
NAIC accredited state that has adopted legislation
substantially similar to the NAIC Managing General Agents
Model Act. "NAIC accredited state" means a state or
territory of the United States having an insurance regulatory
agency that maintains an accredited status granted by the
National Association of Insurance Commissioners.
(h) If the Director determines that a managing general
agent has not materially complied with this Section or any
regulation or order promulgated hereunder, after notice and
opportunity to be heard, the Director may order a penalty in
an amount not exceeding $100,000 $50,000 for each separate
violation and may order the revocation or suspension of the
producer's license. If it is found that because of the
material noncompliance the insurer has suffered any loss or
damage, the Director may maintain a civil action brought by
or on behalf of the insurer and its policyholders and
creditors for recovery of compensatory damages for the
benefit of the insurer and its policyholders and creditors or
other appropriate relief. This subsection (h) shall not be
construed to prevent any other person from taking civil
action against a managing general agent.
(i) If an Order of Rehabilitation or Liquidation is
entered under Article XIII and the receiver appointed under
that Order determines that the managing general agent or any
other person has not materially complied with this Section or
any regulation or Order promulgated hereunder and the insurer
suffered any loss or damage therefrom, the receiver may
maintain a civil action for recovery of damages or other
appropriate sanctions for the benefit of the insurer.
Any decision, determination, or order of the Director
under this subsection shall be subject to judicial review
under the Administrative Review Law.
Nothing contained in this subsection shall affect the
right of the Director to impose any other penalties provided
for in this Code.
Nothing contained in this subsection is intended to or
shall in any manner limit or restrict the rights of
policyholders, claimants, and auditors.
(j) A domestic company shall not during any calendar
year write, through a managing general agent or managing
general agents, premiums in an amount equal to or greater
than its capital and surplus as of the preceding December
31st unless the domestic company requests in writing the
Director's permission to do so and the Director has either
approved the request or has not disapproved the request
within 45 days after the Director received the request.
No domestic company with less than $5,000,000 of capital
and surplus may write any business through a managing general
agent unless the domestic company requests in writing the
Director's permission to do so and the Director has either
approved the request or has not disapproved the request
within 45 days after the Director received the request.
(Source: P.A. 88-364; 89-97, eff. 7-7-95.)
(215 ILCS 5/149) (from Ch. 73, par. 761)
Sec. 149. Misrepresentation and defamation prohibited.
(1) No company doing business in this State, and no
officer, director, agent, clerk or employee thereof, broker,
or any other person, shall make, issue or circulate or cause
or knowingly permit to be made, issued or circulated any
estimate, illustration, circular, or verbal or written
statement of any sort misrepresenting the terms of any policy
issued or to be issued by it or any other company or the
benefits or advantages promised thereby or any misleading
estimate of the dividends or share of the surplus to be
received thereon, or shall by the use of any name or title of
any policy or class of policies misrepresent the nature
thereof.
(2) No such company or officer, director, agent, clerk
or employee thereof, or broker shall make any misleading
representation or comparison of companies or policies, to any
person insured in any company for the purpose of inducing or
tending to induce a policyholder in any company to lapse,
forfeit, change or surrender his insurance, whether on a
temporary or permanent plan.
(3) No such company, officer, director, agent, clerk or
employee thereof, broker or other person shall make, issue or
circulate or cause or knowingly permit to be made, issued or
circulated any pamphlet, circular, article, literature or
verbal or written statement of any kind which contains any
false or malicious statement calculated to injure any company
doing business in this State in its reputation or business.
(4) No such company, or officer, director, agent, clerk
or employee thereof, no agent, broker, solicitor, or company
service representative, and no other person, firm,
corporation, or association of any kind or character, shall
make, issue, circulate, use, or utter, or cause or knowingly
permit to be made, issued, circulated, used, or uttered, any
policy or certificate of insurance, or endorsement or rider
thereto, or matter incorporated therein by reference, or
application blanks, or any stationery, pamphlet, circular,
article, literature, advertisement or advertising of any kind
or character, visual, or aural, including radio advertising
and television advertising, or any other verbal or written
statement or utterance (a) which tends to create the
impression or from which it may be implied or inferred,
directly or indirectly, that the company, its financial
condition or status, or the payment of its claims, or the
merits, desirability, or advisability of its policy forms or
kinds or plans of insurance are approved, endorsed, or
guaranteed by the State of Illinois or United States
Government or the Director or the Department or are secured
by Government bonds or are secured by a deposit with the
Director, or (b) which uses or refers to any deposit with the
Director or any certificate of deposit issued by the Director
or any facsimile, reprint, photograph, photostat, or other
reproduction of any such certificate of deposit.
(5) Any company, officer, director, agent, clerk or
employee thereof, broker, or other person who violates any of
the provisions of this Section, or knowingly participates in
or abets such violation, is guilty of a business offense and
shall be required to pay a penalty of not less than $200 $100
nor more than $10,000 $5,000, to be recovered in the name of
the People of the State of Illinois either by the Attorney
General or by the State's Attorney of the county in which the
violation occurs. The penalty so recovered shall be paid into
the county treasury if recovered by the State's Attorney or
into the State treasury if recovered by the Attorney General.
(6) No company shall be held guilty of having violated
any of the provisions of this Section by reason of the act of
any agent, solicitor or employee, not an officer, director or
department head thereof, unless an officer, director or
department head of such company shall have knowingly
permitted such act or shall have had prior knowledge thereof.
(7) Any person, association, organization, partnership,
business trust or corporation not authorized to transact an
insurance business in this State which disseminates in or
causes to be disseminated in this State any advertising,
invitations to inquire, questionnaires or requests for
information designed to result in a solicitation for the
purchase of insurance by residents of this State is also
subject to the sanctions of this Section. The phrase
"designed to result in a solicitation for the purchase of
insurance" includes but is not limited to:
(a) the use of any form or document which provides
either generalized or specific information or
recommendations regardless of the insurance needs of the
recipient or the availability of any insurance policy or
plan; or
(b) any offer to provide such information or
recommendation upon subsequent contacts or solicitation
either by the entity generating the material or some
other person; or
(c) the use of a coupon, reply card or request to
write for further information; or
(d) the use of an application for insurance or an
offer to provide insurance coverage for any purpose; or
(e) the use of any material which, regardless of
the form and content used or the information imparted, is
intended to result, in the generation of leads for
further solicitations or the preparation of a mailing
list which can be sold to others for such purpose.
(Source: P.A. 90-655, eff. 7-30-98.)
(215 ILCS 5/310.1) (from Ch. 73, par. 922.1)
Sec. 310.1. Suspension, Revocation or Refusal to Renew
Certificate of Authority. (a) Domestic Societies. When, upon
investigation, the Director is satisfied that any domestic
society transacting business under this amendatory Act has
exceeded its powers or has failed to comply with any
provisions of this amendatory Act or is conducting business
fraudulently or in a way hazardous to its members, creditors
or the public or is not carrying out its contracts in good
faith, the Director shall notify the society of his or her
findings, stating in writing the grounds of his or her
dissatisfaction, and, after reasonable notice, require the
society on a date named to show cause why its certificate of
authority should not be revoked or suspended or why such
society should not be fined as hereinafter provided or why
the Director should not proceed against the society under
Article XIII of this Code. If, on the date named in said
notice, such objections have not been removed to the
satisfaction of the Director or if the society does not
present good and sufficient reasons why its authority to
transact business in this State should not at that time be
revoked or suspended or why such society should not be fined
as hereinafter provided, the Director may revoke the
authority of the society to continue business in this State
and proceed against the society under Article XIII of this
Code or suspend such certificate of authority for any period
of time up to, but not to exceed, 2 years; or may by order
require such society to pay to the people of the State of
Illinois a penalty in a sum not exceeding $10,000 $5,000,
and, upon the failure of such society to pay such penalty
within 20 days after the mailing of such order, postage
prepaid, registered and addressed to the last known place of
business of such society, unless such order is stayed by an
order of a court of competent jurisdiction, the Director may
revoke or suspend the license of such society for any period
of time up to, but not exceeding, a period of 2 years.
(b) Foreign or alien societies. The Director shall
suspend, revoke or refuse to renew certificates of authority
in accordance with Article VI of this Code.
(Source: P.A. 84-303.)
(215 ILCS 5/315.4) (from Ch. 73, par. 927.4)
Sec. 315.4. Penalties. (a) Any person who willfully
makes a false or fraudulent statement in or relating to an
application for membership or for the purpose of obtaining
money from, or a benefit in, any society shall upon
conviction be fined not less than $200 $100 nor more than
$10,000 $5,000 or be subject to imprisonment in the county
jail not less than 30 days nor more than one year, or both.
(b) Any person who willfully makes a false or fraudulent
statement in any verified report or declaration under oath
required or authorized by this amendatory Act, or of any
material fact or thing contained in a sworn statement
concerning the death or disability of an insured for the
purpose of procuring payment of a benefit named in the
certificate, shall be guilty of perjury and shall be subject
to the penalties therefor prescribed by law.
(c) Any person who solicits membership for, or in any
manner assists in procuring membership in, any society not
licensed to do business in this State shall upon conviction
be fined not less than $100 $50 nor more than $400 $200.
(d) Any person guilty of a willful violation of, or
neglect or refusal to comply with, the provisions of this
amendatory Act for which a penalty is not otherwise
prescribed shall upon conviction be subject to a fine not
exceeding $10,000 $5,000.
(Source: P.A. 84-303.)
(215 ILCS 5/325) (from Ch. 73, par. 937)
Sec. 325. Officers bonds.
The officer or officers of the association entrusted with
the custody of its funds shall within thirty days after the
effective date of this Code file with the Director a bond in
favor of the association in the penalty of double the amount
of its benefit account, as defined in the act mentioned in
section 316, as of the end of a preceding calendar year,
exclusive of such amount as the association may maintain on
deposit with the Director, (but in no event a bond in a
penalty of less than $2,000 one thousand dollars) with such
officer or officers as principal and a duly authorized surety
company as surety, conditioned upon the faithful performance
of his or their duties and the accounting of the funds
entrusted to his or their custody. If the penalty of any bond
filed pursuant to this section shall at any time be less than
twice the largest amount in the benefit fund of the
association not maintained on deposit with the Director
during the preceding calendar year, a new bond in the penalty
of double the largest amount in the benefit fund during said
preceding calendar year, with such officer or officers as
principal and a duly authorized surety company as surety,
conditioned as aforesaid, shall be filed with the Director
within sixty days after the end of such calendar year.
(Source: Laws 1945, p. 966.)
(215 ILCS 5/363a) (from Ch. 73, par. 975a)
Sec. 363a. Medicare supplement policies; disclosure,
advertising, loss ratio standards.
(1) Scope. This Section pertains to disclosure
requirements of companies and agents and mandatory and
prohibited practices of agents when selling a policy to
supplement the Medicare program or any other health insurance
policy sold to individuals eligible for Medicare. No policy
shall be referred to or labeled as a Medicare supplement
policy if it does not comply with the minimum standards
required by regulation pursuant to Section 363 of this Code.
Except as otherwise specifically provided in paragraph (d) of
subsection (6), this Section shall not apply to accident only
or specified disease type of policies or hospital confinement
indemnity or other type policies clearly unrelated to
Medicare.
(2) Advertising. An advertisement that describes or
offers to provide information concerning the federal Medicare
program shall comply with all of the following:
(a) It may not include any reference to that
program on the envelope, the reply envelope, or the
address side of the reply postal card, if any, nor use
any language to imply that failure to respond to the
advertisement might result in loss of Medicare benefits.
(b) It must include a prominent statement to the
effect that in providing supplemental coverage the
insurer and agent involved in the solicitation are not in
any manner connected with that program.
(c) It must prominently disclose that it is an
advertisement for insurance or is intended to obtain
insurance prospects.
(d) It must prominently identify and set forth the
actual address of the insurer or insurers that issue the
coverage.
(e) It must prominently state that any material or
information offered will be delivered in person by a
representative of the insurer, if that is the case.
The Director may issue reasonable rules and regulations
for the purpose of establishing criteria and guidelines for
the advertising of Medicare supplement insurance.
(3) Mandatory agent practices. For the purpose of this
Act, "home solicitation sale by an agent" means a sale or
attempted sale of an insurance policy at the purchaser's
residence, agent's transient quarters, or away from the
agent's home office when the initial contact is personally
solicited by the agent or insurer. Any agent involved in any
home solicitation sale of a Medicare supplement policy or
other policy of accident and health insurance, subject to
subsection (1) of this Section, sold to individuals eligible
for Medicare shall promptly do the following:
(a) Identify himself as an insurance agent.
(b) Identify the insurer or insurers for which he
is a licensed agent.
(c) Provide the purchaser with a clearly printed or
typed identification of his name, address, telephone
number, and the name of the insurer in which the
insurance is to be written.
(d) Determine what, if any, policy is appropriate,
suitable, and nonduplicative for the purchaser
considering existing coverage and be able to provide
proof to the company that such a determination has been
made.
(e) Fully and completely disclose the purchaser's
medical history on the application if required for issue.
(f) Complete a Policy Check List in duplicate as
follows:
POLICY CHECK LIST
Applicant's Name:
Policy Number:
Name of Existing Insurer:
Expiration Date of Existing Insurance:
Medicare Existing Supplement Insured's
Pays Coverage Pays Responsibility
Service
Hospital
Skilled
Nursing
Home Care
Prescription
Drugs
This policy does/does not (circle one) comply with
the minimum standards for Medicare supplements set forth
in Section 363 of the Illinois Insurance Code.
Signature of Applicant
Signature of Agent
This Policy Check List is to be completed in the
presence of the purchaser at the point of sale, and
copies of it, completed and duly signed, are to be
provided to the purchaser and to the company.
(g) Except in the case of refunds of premium made
pursuant to subsection (5) of Section 363 of this Code,
send by mail to an insured or an applicant for insurance,
when the insurer follows a practice of having agents
return premium refund drafts issued by the insurer, a
premium refund draft within 2 weeks of its receipt by the
agent from the insurer making such refund.
(h) Deliver to the purchaser, along with every
policy issued pursuant to Section 363 of this Code, an
Outline of Coverage as described in paragraph (b) of
subsection (6) of this Section.
(4) Prohibited agent practices.
(a) No insurance agent engaged in a home
solicitation sale of a Medicare supplement policy or
other policy of accident and health insurance, subject to
subsection (1) of this Section, sold to individuals
eligible for Medicare shall use any false, deceptive, or
misleading representation to induce a sale, or use any
plan, scheme, or ruse, that misrepresents the true status
or mission of the person making the call, or represent
directly or by implication that the agent:
(i) Is offering insurance that is approved or
recommended by the State or federal government to
supplement Medicare.
(ii) Is in any way representing, working for,
or compensated by a local, State, or federal
government agency.
(iii) Is engaged in an advisory business in
which his compensation is unrelated to the sale of
insurance by the use of terms such as Medicare
consultant, Medicare advisor, Medicare Bureau,
disability insurance consultant, or similar
expression in a letter, envelope, reply card, or
other.
(iv) Will provide a continuing service to the
purchaser of the policy unless he does provide
services to the purchaser beyond the sale and
renewal of policies.
(b) No agent engaged in a home solicitation sale of
a Medicare supplement policy or other policy of accident
and health insurance sold to individuals eligible for
Medicare shall misrepresent, directly or by implication,
any of the following:
(i) The identity of the insurance company or
companies he represents.
(ii) That the assistance programs of the State
or county or the federal Medicare programs for
medical insurance are to be discontinued or are
increasing in cost to the prospective buyer or are
in any way endangered.
(iii) That an insurance company in which the
prospective purchaser is insured is financially
unstable, cancelling its outstanding policies,
merging, or withdrawing from the State.
(iv) The coverage of the policy being sold.
(v) The effective date of coverage under the
policy.
(vi) That any pre-existing health condition of
the purchaser is irrelevant.
(vii) The right of the purchaser to cancel the
policy within 30 days after receiving it.
(5) Mandatory company practices. Any company involved
in the sale of Medicare supplement policies or any policies
of accident and health insurance (subject to subsection (1)
of this Section) sold to individuals eligible for Medicare
shall do the following:
(a) Be able to readily determine the number of
accident and health policies in force with the company on
each insured eligible for Medicare.
(b) Make certain that policies of Medicare
supplement insurance are not issued, and any premium
collected for those policies is refunded, when they are
deemed duplicative, inappropriate, or not suitable
considering existing coverage with the company.
(c) Maintain copies of the Policy Check List as
completed by the agent at the point of sale of a Medicare
supplement policy or any policy of accident and health
insurance (subject to subsection (1) of this Section)
sold to individuals eligible for Medicare on file at the
company's regional or other administrative office.
(6) Disclosures. In order to provide for full and fair
disclosure in the sale of Medicare supplement policies, there
must be compliance with the following:
(a) No Medicare supplement policy or certificate
shall be delivered in this State unless an outline of
coverage is delivered to the applicant at the time
application is made and, except for direct response
policies, an acknowledgement from the applicant of
receipt of the outline is obtained.
(b) Outline of coverage requirements for Medicare
supplement policies.
(i) Insurers issuing Medicare supplement
policies or certificates for delivery in this State
shall provide an outline of coverage to all
applicants at the time application is made and,
except for direct response policies, shall obtain an
acknowledgement of receipt of the outline from the
applicant.
(ii) If an outline of coverage is provided at
the time of application and the Medicare supplement
policy or certificate is issued on a basis that
would require revision of the outline, a substitute
outline of coverage properly describing the policy
or certificate must accompany the policy or
certificate when it is delivered and shall contain
immediately above the company name, in no less than
12 point type, the following statement:
"NOTICE: Read this outline of coverage
carefully. It is not identical to the outline of
coverage provided upon application and the coverage
originally applied for has not been issued.".
(iii) The outline of coverage provided to
applicants shall be in the form prescribed by rule
by the Department.
(c) Insurers issuing policies that provide hospital
or medical expense coverage on an expense incurred or
indemnity basis, other than incidentally, to a person or
persons eligible for Medicare shall provide to the
policyholder a buyer's guide approved by the Director.
Delivery of the buyer's guide shall be made whether or
not the policy qualifies as a "Medicare Supplement
Coverage" in accordance with Section 363 of this Code.
Except in the case of direct response insurers, delivery
of the buyer's guide shall be made at the time of
application, and acknowledgement of receipt of
certification of delivery of the buyer's guide shall be
provided to the insurer. Direct response insurers shall
deliver the buyer's guide upon request, but not later
than at the time the policy is delivered.
(d) Outlines of coverage delivered in connection
with policies defined in subsection (4) of Section 355a
of this Code as Hospital confinement Indemnity (Section
4c), Accident Only Coverage (Section 4f), Specified
Disease (Section 4g) or Limited Benefit Health Insurance
Coverage to persons eligible for Medicare shall contain,
in addition to other requirements for those outlines, the
following language that shall be printed on or attached
to the first page of the outline of coverage:
"This policy, certificate or subscriber contract IS
NOT A MEDICARE SUPPLEMENT policy or certificate. It does
not fully supplement your federal Medicare health
insurance. If you are eligible for Medicare, review the
Guide to Health Insurance for People with Medicare
available from the company.".
(e) In the case wherein a policy, as defined in
paragraph (a) of subsection (2) of Section 355a of this
Code, being sold to a person eligible for Medicare
provides one or more but not all of the minimum standards
for Medicare supplements set forth in Section 363 of this
Code, disclosure must be provided that the policy is not
a Medicare supplement and does not meet the minimum
benefit standards set for those policies in this State.
(7) Loss ratio standards.
(a) Every issuer of Medicare supplement policies or
certificates in this State, as defined in Section 363 of
this Code, shall file annually its rates, rating
schedule, and supporting documentation demonstrating that
it is in compliance with the applicable loss ratio
standards of this State. All filings of rates and rating
schedules shall demonstrate that the actual and
anticipated losses in relation to premiums comply with
the requirements of this Code.
(b) Medicare supplement policies shall, for the
entire period for which rates are computed to provide
coverage, on the basis of incurred claims experience and
earned premiums for the period and in accordance with
accepted actuarial principles and practices, return to
policyholders in the form of aggregate benefits the
following:
(i) In the case of group policies, at least
75% of the aggregate amount of premiums earned.
(ii) In the case of individual policies, at
least 60% of the aggregate amount of premiums
earned; and beginning November 5, 1991, at least 65%
of the aggregate amount of premiums earned.
(iii) In the case of sponsored group policies
in which coverage is marketed on an individual basis
by direct response to eligible individuals in that
group only, at least 65% of the aggregate amount of
premiums earned.
(c) For the purposes of this Section, the insurer
shall be deemed to comply with the loss ratio standards
if: (i) for the most recent year, the ratio of the
incurred losses to earned premiums for policies or
certificates that have been in force for 3 years or more
is greater than or equal to the applicable percentages
contained in this Section; and (ii) the anticipated
losses in relation to premiums over the entire period for
which the policy is rated comply with the requirements of
this Section. An anticipated third-year loss ratio that
is greater than or equal to the applicable percentage
shall be demonstrated for policies or certificates in
force less than 3 years.
(8) Applicability. This Section shall apply to those
companies writing the kind or kinds of business enumerated in
Classes 1(b) and 2(a) of Section 4 of this Code and to those
entities organized and operating under the Voluntary Health
Services Plans Act and the Health Maintenance Organization
Act.
(9) Penalties.
(a) Any company or agent who is found to have
violated any of the provisions of this Section may be
required by order of the Director of Insurance to forfeit
by civil penalty not less than $500 $250 nor more than
$5,000 $2,500 for each offense. Written notice will be
issued and an opportunity for a hearing will be granted
pursuant to subsection (2) of Section 403A of this Code.
(b) In addition to any other applicable penalties
for violations of this Code, the Director may require
insurers violating any provision of this Code or
regulations promulgated pursuant to this Code to cease
marketing in this State any Medicare supplement policy or
certificate that is related directly or indirectly to a
violation and may require the insurer to take actions as
are necessary to comply with the provisions of Sections
363 and 363a of this Code.
(c) After June 30, 1991, no person may advertise,
solicit for the sale or purchase of, offer for sale, or
deliver a Medicare supplement policy that has not been
approved by the Director. A person who knowingly
violates, directly or through an agent, the provisions of
this paragraph commits a Class 3 felony. Any person who
violates the provisions of this paragraph may be
subjected to a civil penalty not to exceed $10,000
$5,000. The civil penalty authorized in this paragraph
shall be enforced in the manner provided in Section 403A
of this Code.
(10) Replacement. Application forms shall include a
question designed to elicit information as to whether a
Medicare supplement policy or certificate is intended to
replace any similar accident and sickness policy or
certificate presently in force. A supplementary application
or other form to be signed by the applicant containing the
question may be used. Upon determining that a sale of
Medicare supplement coverage will involve replacement, an
insurer, other than a direct response insurer, or its agent,
shall furnish the applicant, prior to issuance or delivery of
the Medicare supplement policy or certificate, a notice
regarding replacement of Medicare supplement coverage. One
copy of the notice shall be provided to the applicant, and an
additional copy signed by the applicant shall be retained by
the insurer. A direct response insurer shall deliver to the
applicant at the time of the issuance of the policy the
notice regarding replacement of Medicare supplement coverage.
(Source: P.A. 88-313; 89-484, eff. 6-21-96.)
(215 ILCS 5/370) (from Ch. 73, par. 982)
Sec. 370. Policies issued in violation of
article-Penalty.
(1) Any company, or any officer or agent thereof,
issuing or delivering to any person in this State any policy
in wilful violation of the provision of this article shall be
guilty of a petty offense.
(2) The Director may revoke the license of any foreign
or alien company, or of the agent thereof wilfully violating
any provision of this article or suspend such license for any
period of time up to, but not to exceed, two years; or may by
order require such insurance company or agent to pay to the
people of the State of Illinois a penalty in a sum not
exceeding $1,000 five hundred dollars, and upon the failure
of such insurance company or agent to pay such penalty within
twenty days after the mailing of such order, postage prepaid,
registered, and addressed to the last known place of business
of such insurance company or agent, unless such order is
stayed by an order of a court of competent jurisdiction, the
Director of Insurance may revoke or suspend the license of
such insurance company or agent for any period of time up to,
but not exceeding a period of, two years.
(Source: P.A. 77-2699.)
(215 ILCS 5/403) (from Ch. 73, par. 1015)
Sec. 403. Power to subpoena and examine witnesses.
(1) In the conduct of any examination, investigation or
hearing provided for by this Code, the Director or other
officer designated by him or her to conduct the same, shall
have power to compel the attendance of any person by
subpoena, to administer oaths and to examine any person under
oath concerning the business, conduct or affairs of any
company or person subject to the provisions of this Code, and
in connection therewith to require the production of any
books, records or papers relevant to the inquiry.
(2) If a person subpoenaed to attend such inquiry fails
to obey the command of the subpoena without reasonable
excuse, or if a person in attendance upon such inquiry shall,
without reasonable cause, refuse to be sworn or to be
examined or to answer a question or to produce a book or
paper when ordered to do so by any officer conducting such
inquiry, or if any person fails to perform any act required
hereunder to be performed, he or she shall be required to pay
a penalty of not more than $2,000 $1,000 to be recovered in
the name of the People of the State of Illinois by the
State's Attorney of the county in which the violation occurs,
and the penalty so recovered shall be paid into the county
treasury.
(3) When any person neglects or refuses without
reasonable cause to obey a subpoena issued by the Director,
or refuses without reasonable cause to testify, to be sworn
or to produce any book or paper described in the subpoena,
the Director may file a petition against such person in the
circuit court of the county in which the testimony is desired
to be or has been taken or has been attempted to be taken,
briefly setting forth the fact of such refusal or neglect and
attaching a copy of the subpoena and the return of service
thereon and applying for an order requiring such person to
attend, testify or produce the books or papers before the
Director or his or her actuary, supervisor, deputy or
examiner, at such time or place as may be specified in such
order. Any circuit court of this State, upon the filing of
such petition, either before or after notice to such person,
may, in the judicial discretion of such court, order the
attendance of such person, the production of books and papers
and the giving of testimony before the Director or any of his
or her actuaries, supervisors, deputies or examiners. If such
person shall fail or refuse to obey the order of the court
and it shall appear to the court that the failure or refusal
of such person to obey its order is wilful, and without
lawful excuse, the court shall punish such person by fine or
imprisonment in the county jail, or both, as the nature of
the case may require, as is now, or as may hereafter be
lawful for the court to do in cases of contempt of court.
(4) The fees of witnesses for attendance and travel
shall be the same as the fees of witnesses before the circuit
courts of this State. When a witness is subpoenaed by or
testifies at the instance of the Director or other officer
designated by him or her, such fees shall be paid in the same
manner as other expenses of the Department. When a witness is
subpoenaed or testifies at the instance of any other party to
any such proceeding, the cost of the subpoena or subpoenas
duces tecum and the fee of the witness shall be borne by the
party at whose instance a witness is summoned. In such case,
the Department in its discretion, may require a deposit to
cover the cost of such service and witness fees.
(Source: P.A. 83-334.)
(215 ILCS 5/403A) (from Ch. 73, par. 1015A)
Sec. 403A. Violations; Notice of Apparent Liability;
Limitation of Forfeiture Liability. (1) Any company or
person, agent or broker, officer or director and any other
person subject to this Code and as may be defined in Section
2 of this Code, who willfully or repeatedly fails to observe
or who otherwise violates any of the provisions of this Code
or any rule or regulation promulgated by the Director under
authority of this Code or any final order of the Director
entered under the authority of this Code shall by civil
penalty forfeit to the State of Illinois a sum not to exceed
$2,000 $1,000. Each day during which a violation occurs
constitutes a separate offense. The civil penalty provided
for in this Section shall apply only to those Sections of
this Code or administrative regulations thereunder that do
not otherwise provide for a monetary civil penalty.
(2) No forfeiture liability under paragraph (1) of this
Section may attach unless a written notice of apparent
liability has been issued by the Director and received by the
respondent, or the Director sends written notice of apparent
liability by registered or certified mail, return receipt
requested, to the last known address of the respondent. Any
respondent so notified must be granted an opportunity to
request a hearing within 10 days from receipt of notice, or
to show in writing, why he should not be held liable. A
notice issued under this Section must set forth the date,
facts and nature of the act or omission with which the
respondent is charged and must specifically identify the
particular provision of the Code, rule, regulation or order
of which a violation is charged.
(3) No forfeiture liability under paragraph (1) of this
Section may attach for any violation occurring more than 2
years prior to the date of issuance of the notice of apparent
liability and in no event may the total civil penalty
forfeiture imposed for the acts or omissions set forth in any
one notice of apparent liability exceed $500,000 $250,000.
(4) The civil penalty forfeitures provided for in this
Section are payable to the General Revenue Fund of the State
of Illinois, and may be recovered in a civil suit in the name
of the State of Illinois brought in the Circuit Court in
Sangamon County, or in the Circuit Court of the county where
the respondent is domiciled or has its principal operating
office.
(5) In any case where the Director issues a notice of
apparent liability looking toward the imposition of a civil
penalty forfeiture under this Section, that fact may not be
used in any other proceeding before the Director to the
prejudice of the respondent to whom the notice was issued,
unless (a) the civil penalty forfeiture has been paid, or (b)
a court has ordered payment of the civil penalty forfeiture
and that order has become final.
(Source: P.A. 86-938.)
(215 ILCS 5/408) (from Ch. 73, par. 1020)
Sec. 408. Fees and charges.
(1) The Director shall charge, collect and give proper
acquittances for the payment of the following fees and
charges:
(a) For filing all documents submitted for the
incorporation or organization or certification of a
domestic company, except for a fraternal benefit society,
$2,000 $1,000.
(b) For filing all documents submitted for the
incorporation or organization of a fraternal benefit
society, $500 $250.
(c) For filing amendments to articles of
incorporation and amendments to declaration of
organization, except for a fraternal benefit society, a
mutual benefit association, a burial society or a farm
mutual, $200 $100.
(d) For filing amendments to articles of
incorporation of a fraternal benefit society, a mutual
benefit association or a burial society, $100 $50.
(e) For filing amendments to articles of
incorporation of a farm mutual, $50 $25.
(f) For filing bylaws or amendments thereto, $50
$25.
(g) For filing agreement of merger or
consolidation:
(i) for a domestic company, except for a
fraternal benefit society, a mutual benefit
association, a burial society, or a farm mutual,
$2,000 $1,000.
(ii) for a foreign or alien company, except
for a fraternal benefit society, $600 $300.
(iii) for a fraternal benefit society, a
mutual benefit association, a burial society, or a
farm mutual, $200 $100.
(h) For filing agreements of reinsurance by a
domestic company, $200 $100.
(i) For filing all documents submitted by a foreign
or alien company to be admitted to transact business or
accredited as a reinsurer in this State, except for a
fraternal benefit society, $5,000 $2,500.
(j) For filing all documents submitted by a foreign
or alien fraternal benefit society to be admitted to
transact business in this State, $500 $250.
(k) For filing declaration of withdrawal of a
foreign or alien company, $50 $25.
(l) For filing annual statement, except a fraternal
benefit society, a mutual benefit association, a burial
society, or a farm mutual, $200 $100.
(m) For filing annual statement by a fraternal
benefit society, $100 $50.
(n) For filing annual statement by a farm mutual, a
mutual benefit association, or a burial society, $50 $25.
(o) For issuing a certificate of authority or
renewal thereof except to a fraternal benefit society,
$200 $100.
(p) For issuing a certificate of authority or
renewal thereof to a fraternal benefit society, $100 $50.
(q) For issuing an amended certificate of
authority, $50 $25.
(r) For each certified copy of certificate of
authority, $20 $10.
(s) For each certificate of deposit, or valuation,
or compliance or surety certificate, $20 $10.
(t) For copies of papers or records per page, $1.
(u) For each certification to copies of papers or
records, $10.
(v) For multiple copies of documents or
certificates listed in subparagraphs (r), (s), and (u) of
paragraph (1) of this Section, $10 for the first copy of
a certificate of any type and $5 for each additional copy
of the same certificate requested at the same time,
unless, pursuant to paragraph (2) of this Section, the
Director finds these additional fees excessive.
(w) For issuing a permit to sell shares or increase
paid-up capital:
(i) in connection with a public stock
offering, $300 $150;
(ii) in any other case, $100 $50.
(x) For issuing any other certificate required or
permissible under the law, $50 $25.
(y) For filing a plan of exchange of the stock of a
domestic stock insurance company, a plan of
demutualization of a domestic mutual company, or a plan
of reorganization under Article XII, $2,000 $1,000.
(z) For filing a statement of acquisition of a
domestic company as defined in Section 131.4 of this
Code, $2,000 $1,000.
(aa) For filing an agreement to purchase the
business of an organization authorized under the Dental
Service Plan Act or the Voluntary Health Services Plans
Act or of a health maintenance organization or a limited
health service organization, $2,000 $1,000.
(bb) For filing a statement of acquisition of a
foreign or alien insurance company as defined in Section
131.12a of this Code, $1,000 $500.
(cc) For filing a registration statement as
required in Sections 131.13 and 131.14, the notification
as required by Sections 131.16, 131.20a, or 141.4, or an
agreement or transaction required by Sections 124.2(2),
141, 141a, or 141.1, $200 $100.
(dd) For filing an application for licensing of:
(i) a religious or charitable risk pooling
trust or a workers' compensation pool, $1,000 $500;
(ii) a workers' compensation service company,
$500 $250;
(iii) a self-insured automobile fleet, $200
$100; or
(iv) a renewal of or amendment of any license
issued pursuant to (i), (ii), or (iii) above, $100
$50.
(ee) For filing articles of incorporation for a
syndicate to engage in the business of insurance through
the Illinois Insurance Exchange, $2,000 $1,000.
(ff) For filing amended articles of incorporation
for a syndicate engaged in the business of insurance
through the Illinois Insurance Exchange, $100 $50.
(gg) For filing articles of incorporation for a
limited syndicate to join with other subscribers or
limited syndicates to do business through the Illinois
Insurance Exchange, $1,000 $500.
(hh) For filing amended articles of incorporation
for a limited syndicate to do business through the
Illinois Insurance Exchange, $100 $50.
(ii) For a permit to solicit subscriptions to a
syndicate or limited syndicate, $100 $50.
(jj) For the filing of each form as required in
Section 143 of this Code, $50 $25 per form. The fee for
advisory and rating organizations shall be $200 $100 per
form.
(i) For the purposes of the form filing fee,
filings made on insert page basis will be considered
one form at the time of its original submission.
Changes made to a form subsequent to its approval
shall be considered a new filing.
(ii) Only one fee shall be charged for a form,
regardless of the number of other forms or policies
with which it will be used.
(iii) Fees charged for a policy filed as it
will be issued regardless of the number of forms
comprising that policy shall not exceed $1,000 $500
or $2,000 $1000 for advisory or rating
organizations.
(iv) The Director may by rule exempt forms
from such fees.
(kk) For filing an application for licensing of a
reinsurance intermediary, $500 $250.
(ll) For filing an application for renewal of a
license of a reinsurance intermediary, $200 $100.
(2) When printed copies or numerous copies of the same
paper or records are furnished or certified, the Director may
reduce such fees for copies if he finds them excessive. He
may, when he considers it in the public interest, furnish
without charge to state insurance departments and persons
other than companies, copies or certified copies of reports
of examinations and of other papers and records.
(3) The expenses incurred in any performance examination
authorized by law shall be paid by the company or person
being examined. The charge shall be reasonably related to the
cost of the examination including but not limited to
compensation of examiners, electronic data processing costs,
supervision and preparation of an examination report and
lodging and travel expenses. All lodging and travel expenses
shall be in accord with the applicable travel regulations as
published by the Department of Central Management Services
and approved by the Governor's Travel Control Board, except
that out-of-state lodging and travel expenses related to
examinations authorized under Section 132 shall be in
accordance with travel rates prescribed under paragraph
301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during
official travel. All lodging and travel expenses may be
reimbursed directly upon authorization of the Director. With
the exception of the direct reimbursements authorized by the
Director, all performance examination charges collected by
the Department shall be paid to the Insurance Producers
Administration Fund, however, the electronic data processing
costs incurred by the Department in the performance of any
examination shall be billed directly to the company being
examined for payment to the Statistical Services Revolving
Fund.
(4) At the time of any service of process on the
Director as attorney for such service, the Director shall
charge and collect the sum of $20 $10.00, which may be
recovered as taxable costs by the party to the suit or action
causing such service to be made if he prevails in such suit
or action.
(5) (a) The costs incurred by the Department of
Insurance in conducting any hearing authorized by law shall
be assessed against the parties to the hearing in such
proportion as the Director of Insurance may determine upon
consideration of all relevant circumstances including: (1)
the nature of the hearing; (2) whether the hearing was
instigated by, or for the benefit of a particular party or
parties; (3) whether there is a successful party on the
merits of the proceeding; and (4) the relative levels of
participation by the parties.
(b) For purposes of this subsection (5) costs incurred
shall mean the hearing officer fees, court reporter fees, and
travel expenses of Department of Insurance officers and
employees; provided however, that costs incurred shall not
include hearing officer fees or court reporter fees unless
the Department has retained the services of independent
contractors or outside experts to perform such functions.
(c) The Director shall make the assessment of costs
incurred as part of the final order or decision arising out
of the proceeding; provided, however, that such order or
decision shall include findings and conclusions in support of
the assessment of costs. This subsection (5) shall not be
construed as permitting the payment of travel expenses unless
calculated in accordance with the applicable travel
regulations of the Department of Central Management Services,
as approved by the Governor's Travel Control Board. The
Director as part of such order or decision shall require all
assessments for hearing officer fees and court reporter fees,
if any, to be paid directly to the hearing officer or court
reporter by the party(s) assessed for such costs. The
assessments for travel expenses of Department officers and
employees shall be reimbursable to the Director of Insurance
for deposit to the fund out of which those expenses had been
paid.
(d) The provisions of this subsection (5) shall apply in
the case of any hearing conducted by the Director of
Insurance not otherwise specifically provided for by law.
(6) The Director shall charge and collect an annual
financial regulation fee from every domestic company for
examination and analysis of its financial condition and to
fund the internal costs and expenses of the Interstate
Insurance Receivership Commission as may be allocated to the
State of Illinois and companies doing an insurance business
in this State pursuant to Article X of the Interstate
Insurance Receivership Compact. The fee shall be the greater
fixed amount based upon the combination of nationwide direct
premium income and nationwide reinsurance assumed premium
income or upon admitted assets calculated under this
subsection as follows:
(a) Combination of nationwide direct premium income
and nationwide reinsurance assumed premium.
(i) $150 $100, if the premium is less than
$500,000 and there is no reinsurance assumed
premium;
(ii) $750 $500, if the premium is $500,000 or
more, but less than $5,000,000 and there is no
reinsurance assumed premium; or if the premium is
less than $5,000,000 and the reinsurance assumed
premium is less than $10,000,000;
(iii) $3,750 $2,500, if the premium is less
than $5,000,000 and the reinsurance assumed premium
is $10,000,000 or more;
(iv) $7,500 $5,000, if the premium is
$5,000,000 or more, but less than $10,000,000;
(v) $18,000 $12,000, if the premium is
$10,000,000 or more, but less than $25,000,000;
(vi) $22,500 $15,000, if the premium is
$25,000,000 or more, but less than $50,000,000;
(vii) $30,000 $20,000, if the premium is
$50,000,000 or more, but less than $100,000,000;
(viii) $37,500 $25,000, if the premium is
$100,000,000 or more.
(b) Admitted assets.
(i) $150 $100, if admitted assets are less
than $1,000,000;
(ii) $750 $500, if admitted assets are
$1,000,000 or more, but less than $5,000,000;
(iii) $3,750 2,500, if admitted assets are
$5,000,000 or more, but less than $25,000,000;
(iv) $7,500 $5,000, if admitted assets are
$25,000,000 or more, but less than $50,000,000;
(v) $18,000 $12,000, if admitted assets are
$50,000,000 or more, but less than $100,000,000;
(vi) $22,500 $15,000, if admitted assets are
$100,000,000 or more, but less than $500,000,000;
(vii) $30,000 $20,000, if admitted assets are
$500,000,000 or more, but less than $1,000,000,000;
(viii) $37,500 $25,000, if admitted assets are
$1,000,000,000 or more.
(c) The sum of financial regulation fees charged to
the domestic companies of the same affiliated group shall
not exceed $250,000 $100,000 in the aggregate in any
single year and shall be billed by the Director to the
member company designated by the group.
(7) The Director shall charge and collect an annual
financial regulation fee from every foreign or alien company,
except fraternal benefit societies, for the examination and
analysis of its financial condition and to fund the internal
costs and expenses of the Interstate Insurance Receivership
Commission as may be allocated to the State of Illinois and
companies doing an insurance business in this State pursuant
to Article X of the Interstate Insurance Receivership
Compact. The fee shall be a fixed amount based upon Illinois
direct premium income and nationwide reinsurance assumed
premium income in accordance with the following schedule:
(a) $150 $100, if the premium is less than $500,000
and there is no reinsurance assumed premium;
(b) $750 $500, if the premium is $500,000 or more,
but less than $5,000,000 and there is no reinsurance
assumed premium; or if the premium is less than
$5,000,000 and the reinsurance assumed premium is less
than $10,000,000;
(c) $3,750 $2,500, if the premium is less than
$5,000,000 and the reinsurance assumed premium is
$10,000,000 or more;
(d) $7,500 $5,000, if the premium is $5,000,000 or
more, but less than $10,000,000;
(e) $18,000 $12,000, if the premium is $10,000,000
or more, but less than $25,000,000;
(f) $22,500 $15,000, if the premium is $25,000,000
or more, but less than $50,000,000;
(g) $30,000 $20,000, if the premium is $50,000,000
or more, but less than $100,000,000;
(h) $37,500 $25,000, if the premium is $100,000,000
or more.
The sum of financial regulation fees under this
subsection (7) charged to the foreign or alien companies
within the same affiliated group shall not exceed $250,000
$100,000 in the aggregate in any single year and shall be
billed by the Director to the member company designated by
the group.
(8) Beginning January 1, 1992, the financial regulation
fees imposed under subsections (6) and (7) of this Section
shall be paid by each company or domestic affiliated group
annually. After January 1, 1994, the fee shall be billed by
Department invoice based upon the company's premium income or
admitted assets as shown in its annual statement for the
preceding calendar year. The invoice is due upon receipt and
must be paid no later than June 30 of each calendar year.
All financial regulation fees collected by the Department
shall be paid to the Insurance Financial Regulation Fund.
The Department may not collect financial examiner per diem
charges from companies subject to subsections (6) and (7) of
this Section undergoing financial examination after June 30,
1992.
(9) In addition to the financial regulation fee required
by this Section, a company undergoing any financial
examination authorized by law shall pay the following costs
and expenses incurred by the Department: electronic data
processing costs, the expenses authorized under Section
131.21 and subsection (d) of Section 132.4 of this Code, and
lodging and travel expenses.
Electronic data processing costs incurred by the
Department in the performance of any examination shall be
billed directly to the company undergoing examination for
payment to the Statistical Services Revolving Fund. Except
for direct reimbursements authorized by the Director or
direct payments made under Section 131.21 or subsection (d)
of Section 132.4 of this Code, all financial regulation fees
and all financial examination charges collected by the
Department shall be paid to the Insurance Financial
Regulation Fund.
All lodging and travel expenses shall be in accordance
with applicable travel regulations published by the
Department of Central Management Services and approved by the
Governor's Travel Control Board, except that out-of-state
lodging and travel expenses related to examinations
authorized under Sections 132.1 through 132.7 shall be in
accordance with travel rates prescribed under paragraph
301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during
official travel. All lodging and travel expenses may be
reimbursed directly upon the authorization of the Director.
In the case of an organization or person not subject to
the financial regulation fee, the expenses incurred in any
financial examination authorized by law shall be paid by the
organization or person being examined. The charge shall be
reasonably related to the cost of the examination including,
but not limited to, compensation of examiners and other costs
described in this subsection.
(10) Any company, person, or entity failing to make any
payment of $150 $100 or more as required under this Section
shall be subject to the penalty and interest provisions
provided for in subsections (4) and (7) of Section 412.
(11) Unless otherwise specified, all of the fees
collected under this Section shall be paid into the Insurance
Financial Regulation Fund.
(12) For purposes of this Section:
(a) "Domestic company" means a company as defined
in Section 2 of this Code which is incorporated or
organized under the laws of this State, and in addition
includes a not-for-profit corporation authorized under
the Dental Service Plan Act or the Voluntary Health
Services Plans Act, a health maintenance organization,
and a limited health service organization.
(b) "Foreign company" means a company as defined in
Section 2 of this Code which is incorporated or organized
under the laws of any state of the United States other
than this State and in addition includes a health
maintenance organization and a limited health service
organization which is incorporated or organized under the
laws of any state of the United States other than this
State.
(c) "Alien company" means a company as defined in
Section 2 of this Code which is incorporated or organized
under the laws of any country other than the United
States.
(d) "Fraternal benefit society" means a
corporation, society, order, lodge or voluntary
association as defined in Section 282.1 of this Code.
(e) "Mutual benefit association" means a company,
association or corporation authorized by the Director to
do business in this State under the provisions of Article
XVIII of this Code.
(f) "Burial society" means a person, firm,
corporation, society or association of individuals
authorized by the Director to do business in this State
under the provisions of Article XIX of this Code.
(g) "Farm mutual" means a district, county and
township mutual insurance company authorized by the
Director to do business in this State under the
provisions of the Farm Mutual Insurance Company Act of
1986.
(Source: P.A. 90-177, eff. 7-23-97; 90-583, eff. 5-29-98;
91-357, eff. 7-29-99.)
(215 ILCS 5/412) (from Ch. 73, par. 1024)
Sec. 412. Refunds; penalties; collection.
(1) (a) Whenever it appears to the satisfaction of the
Director that because of some mistake of fact, error in
calculation, or erroneous interpretation of a statute of this
or any other state, any authorized company has paid to him,
pursuant to any provision of law, taxes, fees, or other
charges in excess of the amount legally chargeable against
it, during the 6 year period immediately preceding the
discovery of such overpayment, he shall have power to refund
to such company the amount of the excess or excesses by
applying the amount or amounts thereof toward the payment of
taxes, fees, or other charges already due, or which may
thereafter become due from that company until such excess or
excesses have been fully refunded, or upon a written request
from the authorized company, the Director shall provide a
cash refund within 120 days after receipt of the written
request if all necessary information has been filed with the
Department in order for it to perform an audit of the annual
return for the year in which the overpayment occurred or
within 120 days after the date the Department receives all
the necessary information to perform such audit. The
Director shall not provide a cash refund if there are
insufficient funds in the Insurance Premium Tax Refund Fund
to provide a cash refund, if the amount of the overpayment is
less than $100, or if the amount of the overpayment can be
fully offset against the taxpayer's estimated liability for
the year following the year of the cash refund request. Any
cash refund shall be paid from the Insurance Premium Tax
Refund Fund, a special fund hereby created in the State
treasury.
(b) Beginning January 1, 2000 and thereafter, the
Department shall deposit a percentage of the amounts
collected under Sections 409, 444, and 444.1 of this Code
into the Insurance Premium Tax Refund Fund. The percentage
deposited into the Insurance Premium Tax Refund Fund shall be
the annual percentage. The annual percentage shall be
calculated as a fraction, the numerator of which shall be the
amount of cash refunds approved by the Director for payment
and paid during the preceding calendar year as a result of
overpayment of tax liability under Sections 409, 444, and
444.1 of this Code and the denominator of which shall be the
amounts collected pursuant to Sections 409, 444, and 444.1 of
this Code during the preceding calendar year. However, if
there were no cash refunds paid in a preceding calendar year,
the Department shall deposit 5% of the amount collected in
that preceding calendar year pursuant to Sections 409, 444,
and 444.1 of this Code into the Insurance Premium Tax Refund
Fund instead of an amount calculated by using the annual
percentage.
(c) Beginning July 1, 1999, moneys in the Insurance
Premium Tax Refund Fund shall be expended exclusively for the
purpose of paying cash refunds resulting from overpayment of
tax liability under Sections 409, 444, and 444.1 of this Code
as determined by the Director pursuant to subsection 1(a) of
this Section. Cash refunds made in accordance with this
Section may be made from the Insurance Premium Tax Refund
Fund only to the extent that amounts have been deposited and
retained in the Insurance Premium Tax Refund Fund.
(d) This Section shall constitute an irrevocable and
continuing appropriation from the Insurance Premium Tax
Refund Fund for the purpose of paying cash refunds pursuant
to the provisions of this Section.
(2) When any insurance company or any surplus line
producer fails to file any tax return required under Sections
408.1, 409, 444, 444.1 and 445 of this Code or Section 12 of
the Fire Investigation Act on the date prescribed, including
any extensions, there shall be added as a penalty $400 $200
or 10% 5% of the amount of such tax, whichever is greater,
for each month or part of a month of failure to file, the
entire penalty not to exceed $2,000 $1,000 or 50% 25% of the
tax due, whichever is greater.
(3) (a) When any insurance company or any surplus line
producer fails to pay the full amount due under the
provisions of this Section, Sections 408.1, 409, 444, 444.1
or 445 of this Code, or Section 12 of the Fire Investigation
Act, there shall be added to the amount due as a penalty an
amount equal to 10% 5% of the deficiency.
(b) If such failure to pay is determined by the Director
to be wilful, after a hearing under Sections 402 and 403,
there shall be added to the tax as a penalty an amount equal
to the greater of 50% 25% of the deficiency or 10% 5% of the
amount due and unpaid for each month or part of a month that
the deficiency remains unpaid commencing with the date that
the amount becomes due. Such amount shall be in lieu of any
determined under paragraph (a).
(4) Any insurance company or any surplus line producer
which fails to pay the full amount due under this Section or
Sections 408.1, 409, 444, 444.1 or 445 of this Code, or
Section 12 of the Fire Investigation Act is liable, in
addition to the tax and any penalties, for interest on such
deficiency at the rate of 12% per annum, or at such higher
adjusted rates as are or may be established under subsection
(b) of Section 6621 of the Internal Revenue Code, from the
date that payment of any such tax was due, determined without
regard to any extensions, to the date of payment of such
amount.
(5) The Director, through the Attorney General, may
institute an action in the name of the People of the State of
Illinois, in any court of competent jurisdiction, for the
recovery of the amount of such taxes, fees, and penalties
due, and prosecute the same to final judgment, and take such
steps as are necessary to collect the same.
(6) In the event that the certificate of authority of a
foreign or alien company is revoked for any cause or the
company withdraws from this State prior to the renewal date
of the certificate of authority as provided in Section 114,
the company may recover the amount of any such tax paid in
advance. Except as provided in this subsection, no revocation
or withdrawal excuses payment of or constitutes grounds for
the recovery of any taxes or penalties imposed by this Code.
(7) When an insurance company or domestic affiliated
group fails to pay the full amount of any fee of $200 $100 or
more due under Section 408 of this Code, there shall be added
to the amount due as a penalty the greater of $100 $50 or an
amount equal to 10% 5% of the deficiency for each month or
part of a month that the deficiency remains unpaid.
(Source: P.A. 91-643, eff. 8-20-99.)
(215 ILCS 5/431) (from Ch. 73, par. 1038)
Sec. 431. Penalty.
Any person who violates a cease and desist order of the
Director under Section 427, after it has become final, and
while such order is in effect, or who violates an order of
the Circuit Court under Section 429, shall, upon proof
thereof to the satisfaction of the court, forfeit and pay to
the State of Illinois, a sum not to exceed $1,000 $500, which
may be recovered in a civil action, for each violation.
(Source: Laws 1967, p. 990.)
(215 ILCS 5/445) (from Ch. 73, par. 1057)
Sec. 445. Surplus line.
(1) Surplus line defined; surplus line insurer
requirements. Surplus line insurance is insurance on an
Illinois risk of the kinds specified in Classes 2 and 3 of
Section 4 of this Code procured from an unauthorized insurer
or a domestic surplus line insurer as defined in Section 445a
after the insurance producer representing the insured or the
surplus line producer is unable, after diligent effort, to
procure said insurance from insurers which are authorized to
transact business in this State other than domestic surplus
line insurers as defined in Section 445a.
Insurance producers may procure surplus line insurance
only if licensed as a surplus line producer under this
Section and may procure that insurance only from an
unauthorized insurer or from a domestic surplus line insurer
as defined in Section 445a:
(a) that based upon information available to the
surplus line producer has a policyholders surplus of not
less than $15,000,000 determined in accordance with
accounting rules that are applicable to authorized
insurers; and
(b) that has standards of solvency and management
that are adequate for the protection of policyholders;
and
(c) where an unauthorized insurer does not meet the
standards set forth in (a) and (b) above, a surplus line
producer may, if necessary, procure insurance from that
insurer only if prior written warning of such fact or
condition is given to the insured by the insurance
producer or surplus line producer.
(2) Surplus line producer; license. Any licensed
producer who is a resident of this State, or any nonresident
who qualifies under Section 500-40, may be licensed as a
surplus line producer upon:
(a) completing a prelicensing course of study. The
course provided for by this Section shall be conducted
under rules and regulations prescribed by the Director.
The Director may administer the course or may make
arrangements, including contracting with an outside
educational service, for administering the course and
collecting the non-refundable application fee provided
for in this subsection. Any charges assessed by the
Director or the educational service for administering the
course shall be paid directly by the individual
applicants. Each applicant required to take the course
shall enclose with the application a non-refundable $20
$10 application fee payable to the Director plus a
separate course administration fee. An applicant who
fails to appear for the course as scheduled, or appears
but fails to complete the course, shall not be entitled
to any refund, and shall be required to submit a new
request to attend the course together with all the
requisite fees before being rescheduled for another
course at a later date; and
(b) payment of an annual license fee of $400 $200;
and
(c) procurement of the surety bond required in
subsection (4) of this Section.
A surplus line producer so licensed shall keep a separate
account of the business transacted thereunder which shall be
open at all times to the inspection of the Director or his
representative.
The prelicensing course of study requirement in (a) above
shall not apply to insurance producers who were licensed
under the Illinois surplus line law on or before the
effective date of this amendatory Act of the 92nd General
Assembly.
(3) Taxes and reports.
(a) Surplus line tax and penalty for late payment.
A surplus line producer shall file with the Director
on or before February 1 and August 1 of each year a
report in the form prescribed by the Director on all
surplus line insurance procured from unauthorized
insurers during the preceding 6 month period ending
December 31 or June 30 respectively, and on the filing of
such report shall pay to the Director for the use and
benefit of the State a sum equal to 3.5% 3% of the gross
premiums less returned premiums upon all surplus line
insurance procured or cancelled during the preceding 6
months.
Any surplus line producer who fails to pay the full
amount due under this subsection is liable, in addition
to the amount due, for such penalty and interest charges
as are provided for under Section 412 of this Code. The
Director, through the Attorney General, may institute an
action in the name of the People of the State of
Illinois, in any court of competent jurisdiction, for the
recovery of the amount of such taxes and penalties due,
and prosecute the same to final judgment, and take such
steps as are necessary to collect the same.
(b) Fire Marshal Tax.
Each surplus line producer shall file with the
Director on or before March 31 of each year a report in
the form prescribed by the Director on all fire insurance
procured from unauthorized insurers subject to tax under
Section 12 of the Fire Investigation Act and shall pay to
the Director the fire marshal tax required thereunder.
(c) Taxes and fees charged to insured. The taxes
imposed under this subsection and the countersigning fees
charged by the Surplus Line Association of Illinois may
be charged to and collected from surplus line insureds.
(4) Bond. Each surplus line producer, as a condition to
receiving a surplus line producer's license, shall execute
and deliver to the Director a surety bond to the People of
the State in the penal sum of $20,000, with a surety which is
authorized to transact business in this State, conditioned
that the surplus line producer will pay to the Director the
tax, interest and penalties levied under subsection (3) of
this Section.
(5) Submission of documents to Surplus Line Association
of Illinois. A surplus line producer shall submit every
insurance contract issued under his or her license to the
Surplus Line Association of Illinois for recording and
countersignature. The submission and countersignature may be
effected through electronic means. The submission shall set
forth:
(a) the name of the insured;
(b) the description and location of the insured
property or risk;
(c) the amount insured;
(d) the gross premiums charged or returned;
(e) the name of the unauthorized insurer or
domestic surplus line insurer as defined in Section 445a
from whom coverage has been procured;
(f) the kind or kinds of insurance procured; and
(g) amount of premium subject to tax required by
Section 12 of the Fire Investigation Act.
Proposals, endorsements, and other documents which
are incidental to the insurance but which do not affect
the premium charged are exempted from filing and
countersignature.
The submission of insuring contracts to the Surplus
Line Association of Illinois constitutes a certification
by the surplus line producer or by the insurance producer
who presented the risk to the surplus line producer for
placement as a surplus line risk that after diligent
effort the required insurance could not be procured from
insurers which are authorized to transact business in
this State other than domestic surplus line insurers as
defined in Section 445a and that such procurement was
otherwise in accordance with the surplus line law.
(6) Countersignature required. It shall be unlawful for
an insurance producer to deliver any unauthorized insurer
contract or domestic surplus line insurer contract unless
such insurance contract is countersigned by the Surplus Line
Association of Illinois.
(7) Inspection of records. A surplus line producer
shall maintain separate records of the business transacted
under his or her license, including complete copies of
surplus line insurance contracts maintained on paper or by
electronic means, which records shall be open at all times
for inspection by the Director and by the Surplus Line
Association of Illinois.
(8) Violations and penalties. The Director may suspend
or revoke or refuse to renew a surplus line producer license
for any violation of this Code. In addition to or in lieu of
suspension or revocation, the Director may subject a surplus
line producer to a civil penalty of up to $2,000 $1,000 for
each cause for suspension or revocation. Such penalty is
enforceable under subsection (5) of Section 403A of this
Code.
(9) Director may declare insurer ineligible. If the
Director determines that the further assumption of risks
might be hazardous to the policyholders of an unauthorized
insurer, the Director may order the Surplus Line Association
of Illinois not to countersign insurance contracts evidencing
insurance in such insurer and order surplus line producers to
cease procuring insurance from such insurer.
(10) Service of process upon Director. Insurance
contracts delivered under this Section from unauthorized
insurers shall contain a provision designating the Director
and his successors in office the true and lawful attorney of
the insurer upon whom may be served all lawful process in any
action, suit or proceeding arising out of such insurance.
Service of process made upon the Director to be valid
hereunder must state the name of the insured, the name of the
unauthorized insurer and identify the contract of insurance.
The Director at his option is authorized to forward a copy of
the process to the Surplus Line Association of Illinois for
delivery to the unauthorized insurer or the Director may
deliver the process to the unauthorized insurer by other
means which he considers to be reasonably prompt and certain.
(11) The Illinois Surplus Line law does not apply to
insurance of property and operations of railroads or aircraft
engaged in interstate or foreign commerce, insurance of
vessels, crafts or hulls, cargoes, marine builder's risks,
marine protection and indemnity, or other risks including
strikes and war risks insured under ocean or wet marine forms
of policies.
(12) Surplus line insurance procured under this Section,
including insurance procured from a domestic surplus line
insurer, is not subject to the provisions of the Illinois
Insurance Code other than Sections 123, 123.1, 401, 401.1,
402, 403, 403A, 408, 412, 445, 445.1, 445.2, 445.3, 445.4,
and all of the provisions of Article XXXI to the extent that
the provisions of Article XXXI are not inconsistent with the
terms of this Act.
(Source: P.A. 92-386, eff. 1-1-02.)
(215 ILCS 5/500-70)
Sec. 500-70. License denial, nonrenewal, or revocation.
(a) The Director may place on probation, suspend,
revoke, or refuse to issue or renew an insurance producer's
license or may levy a civil penalty in accordance with this
Section or take any combination of actions, for any one or
more of the following causes:
(1) providing incorrect, misleading, incomplete, or
materially untrue information in the license application;
(2) violating any insurance laws, or violating any
rule, subpoena, or order of the Director or of another
state's insurance commissioner;
(3) obtaining or attempting to obtain a license
through misrepresentation or fraud;
(4) improperly withholding, misappropriating or
converting any moneys or properties received in the
course of doing insurance business;
(5) intentionally misrepresenting the terms of an
actual or proposed insurance contract or application for
insurance;
(6) having been convicted of a felony;
(7) having admitted or been found to have committed
any insurance unfair trade practice or fraud;
(8) using fraudulent, coercive, or dishonest
practices, or demonstrating incompetence,
untrustworthiness or financial irresponsibility in the
conduct of business in this State or elsewhere;
(9) having an insurance producer license, or its
equivalent, denied, suspended, or revoked in any other
state, province, district or territory;
(10) forging a name to an application for insurance
or to a document related to an insurance transaction;
(11) improperly using notes or any other reference
material to complete an examination for an insurance
license;
(12) knowingly accepting insurance business from an
individual who is not licensed;
(13) failing to comply with an administrative or
court order imposing a child support obligation;
(14) failing to pay state income tax or penalty or
interest or comply with any administrative or court order
directing payment of state income tax or failed to file a
return or to pay any final assessment of any tax due to
the Department of Revenue; or
(15) failing to make satisfactory repayment to the
Illinois Student Assistance Commission for a delinquent
or defaulted student loan.
(b) If the action by the Director is to nonrenew,
suspend, or revoke a license or to deny an application for a
license, the Director shall notify the applicant or licensee
and advise, in writing, the applicant or licensee of the
reason for the suspension, revocation, denial or nonrenewal
of the applicant's or licensee's license. The applicant or
licensee may make written demand upon the Director within 30
days after the date of mailing for a hearing before the
Director to determine the reasonableness of the Director's
action. The hearing must be held within not fewer than 20
days nor more than 30 days after the mailing of the notice of
hearing and shall be held pursuant to 50 Ill. Adm. Code 2402.
(c) The license of a business entity may be suspended,
revoked, or refused if the Director finds, after hearing,
that an individual licensee's violation was known or should
have been known by one or more of the partners, officers, or
managers acting on behalf of the partnership, corporation,
limited liability company, or limited liability partnership
and the violation was neither reported to the Director nor
corrective action taken.
(d) In addition to or instead of any applicable denial,
suspension, or revocation of a license, a person may, after
hearing, be subject to a civil penalty of up to $10,000
$5,000 for each cause for denial, suspension, or revocation,
however, the civil penalty may total no more than $100,000
$20,000.
(e) The Director has the authority to enforce the
provisions of and impose any penalty or remedy authorized by
this Article against any person who is under investigation
for or charged with a violation of this Code or rules even if
the person's license or registration has been surrendered or
has lapsed by operation of law.
(f) Upon the suspension, denial, or revocation of a
license, the licensee or other person having possession or
custody of the license shall promptly deliver it to the
Director in person or by mail. The Director shall publish all
suspensions, denials, or revocations after the suspensions,
denials, or revocations become final in a manner designed to
notify interested insurance companies and other persons.
(g) A person whose license is revoked or whose
application is denied pursuant to this Section is ineligible
to apply for any license for 3 years after the revocation or
denial. A person whose license as an insurance producer has
been revoked, suspended, or denied may not be employed,
contracted, or engaged in any insurance related capacity
during the time the revocation, suspension, or denial is in
effect.
(Source: P.A. 92-386, eff. 1-1-02.)
(215 ILCS 5/500-110)
Sec. 500-110. Regulatory examinations.
(a) The Director may examine any applicant for or holder
of an insurance producer license, limited line producer
license or temporary insurance producer license or any
business entity.
(b) All persons being examined, as well as their
officers, directors, insurance producers, limited lines
producers, and temporary insurance producers must provide to
the Director convenient and free access, at all reasonable
hours at their offices, to all books, records, documents, and
other papers relating to the persons' insurance business
affairs. The officers, directors, insurance producers,
limited lines producers, temporary insurance producers, and
employees must facilitate and aid the Director in the
examinations as much as it is in their power to do so.
(c) The Director may designate an examiner or examiners
to conduct any examination under this Section. The Director
or his or her designee may administer oaths and examine under
oath any individual relative to the business of the person
being examined.
(d) The examiners designated by the Director under this
Section may make reports to the Director. A report alleging
substantive violations of this Article or any rules
prescribed by the Director must be in writing and be based
upon facts ascertained from the books, records, documents,
papers, and other evidence obtained by the examiners or from
sworn or affirmed testimony of or written affidavits from the
person's officers, directors, insurance producers, limited
lines producer, temporary insurance producers, or employees
or other individuals, as given to the examiners. The report
of an examination must be verified by the examiners.
(e) If a report is made, the Director must either
deliver a duplicate of the report to the person being
examined or send the duplicate by certified or registered
mail to the person's address of record. The Director shall
afford the person an opportunity to demand a hearing with
reference to the facts and other evidence contained in the
report. The person may request a hearing within 14 calendar
days after he or she receives the duplicate of the
examination report by giving the Director written notice of
that request, together with a written statement of the
person's objections to the report. The Director must, if
requested to do so, conduct a hearing in accordance with
Sections 402 and 403 of this Code. The Director must issue a
written order based upon the examination report and upon the
hearing, if a hearing is held, within 90 days after the
report is filed, or within 90 days after the hearing if a
hearing is held. If the report is refused or otherwise
undeliverable, or a hearing is not requested in a timely
fashion, the right to a hearing is waived. After the hearing
or the expiration of the time period in which a person may
request a hearing, if the examination reveals that the person
is operating in violation of any law, rule, or prior order,
the Director in the written order may require the person to
take any action the Director considers necessary or
appropriate in accordance with the report or examination
hearing. The order is subject to review under the
Administrative Review Law.
(f) The Director may adopt reasonable rules to further
the purposes of this Section.
(g) A person who violates or aids and abets any
violation of a written order issued under this Section shall
be guilty of a business offense and his or her license may be
revoked or suspended pursuant to Section 500-70 of this
Article and he or she may be subjected to a civil penalty of
not more than $20,000 $10,000.
(Source: P.A. 92-386, eff. 1-1-02.)
(215 ILCS 5/500-120)
Sec. 500-120. Conflicts of interest; inactive status.
(a) A person, partnership, association, or corporation
licensed by the Department who, due to employment with any
unit of government that would cause a conflict of interest
with the holding of that license, notifies the Director in
writing on forms prescribed by the Department and, subject to
rules of the Department, makes payment of applicable
licensing renewal fees, may elect to place the license on an
inactive status.
(b) A licensee whose license is on inactive status may
have the license restored by making application to the
Department on such form as may be prescribed by the
Department. The application must be accompanied with a fee of
$100 $50 plus the current applicable license fee.
(c) A license may be placed on inactive status for a
2-year period, and upon request, the inactive status may be
extended for a successive 2-year period not to exceed a
cumulative 4-year inactive period. After a license has been
on inactive status for 4 years or more, the licensee must
meet all of the standards required of a new applicant before
the license may be restored to active status.
(d) If requests for inactive status are not renewed as
set forth in subsection (c), the license will be taken off
the inactive status and the license will lapse immediately.
(Source: P.A. 92-386, eff. 1-1-02.)
(215 ILCS 5/500-135)
Sec. 500-135. Fees.
(a) The fees required by this Article are as follows:
(1) a fee of $180 for a person who is a resident of
Illinois, and $250 for a person who is not a resident of
Illinois, $150 payable once every 2 years for an
insurance producer license;
(2) a fee of $50 $25 for the issuance of a
temporary insurance producer license;
(3) a fee of $150 $50 payable once every 2 years
for a business entity;
(4) an annual $50 $25 fee for a limited line
producer license issued under items (1) through (7) of
subsection (a) of Section 500-100;
(5) a $50 $25 application fee for the processing of
a request to take the written examination for an
insurance producer license;
(6) an annual registration fee of $1,000 $500 for
registration of an education provider;
(7) a certification fee of $50 $25 for each
certified pre-licensing or continuing education course
and an annual fee of $20 $10 for renewing the
certification of each such course;
(8) a fee of $180 for a person who is a resident of
Illinois, and $250 for a person who is not a resident of
Illinois, $50 payable once every 2 years for a car rental
limited line license;
(9) a fee of $200 $150 payable once every 2 years
for a limited lines license other than the licenses
issued under items (1) through (7) of subsection (a) of
Section 500-100 or a car rental limited line license.
(b) Except as otherwise provided, all fees paid to and
collected by the Director under this Section shall be paid
promptly after receipt thereof, together with a detailed
statement of such fees, into a special fund in the State
Treasury to be known as the Insurance Producer Administration
Fund. The moneys deposited into the Insurance Producer
Administration Fund may be used only for payment of the
expenses of the Department in the execution, administration,
and enforcement of the insurance laws of this State, and
shall be appropriated as otherwise provided by law for the
payment of those expenses with first priority being any
expenses incident to or associated with the administration
and enforcement of this Article.
(Source: P.A. 92-386, eff. 1-1-02.)
(215 ILCS 5/511.103) (from Ch. 73, par. 1065.58-103)
Sec. 511.103. Application. The applicant for a license
shall file with the Director an application upon a form
prescribed by the Director, which shall include or have
attached the following:
(1) The names, addresses and official positions of the
individuals who are responsible for the conduct of the
affairs of the administrator, including but not limited to
all members of the board of directors, board of trustees,
executive committee, or other governing board or committee,
the principal officers in the case of a corporation or the
partners in the case of a partnership; and
(2) A non-refundable filing fee of $200 $100 which shall
become the initial administrator license fee should the
Director issue an administrator license.
(Source: P.A. 84-887.)
(215 ILCS 5/511.105) (from Ch. 73, par. 1065.58-105)
Sec. 511.105. License. (a) The Director shall cause a
license to be issued to each applicant that has demonstrated
to the Director's satisfaction compliance with the
requirements of this Article.
(b) Each administrator license shall remain in effect as
long as the holder of the license maintains in force and
effect the bond required by Section 511.104 and pays the
annual fee of $200 $100 prior to the anniversary date of the
license, unless the license is revoked or suspended pursuant
to Section 511.107.
(c) Each license shall contain the name, business
address and identification number of the licensee, the date
the license was issued and any other information the Director
considers proper.
(Source: P.A. 84-887.)
(215 ILCS 5/511.110) (from Ch. 73, par. 1065.58-110)
Sec. 511.110. Administrative Fine. (a) If the Director
finds that one or more grounds exist for the revocation or
suspension of a license issued under this Article, the
Director may, in lieu of or in addition to such suspension or
revocation, impose a fine upon the administrator.
(b) With respect to any knowing and wilful violation of
a lawful order of the Director, any applicable portion of the
Illinois Insurance Code or Part of Title 50 of the Illinois
Administrative Code, or a provision of this Article, the
Director may impose a fine upon the administrator in an
amount not to exceed $10,000 $5,000 for each such violation.
In no event shall such fine exceed an aggregate amount of
$50,000 $25,000 for all knowing and wilful violations arising
out of the same action.
(Source: P.A. 84-887.)
(215 ILCS 5/512.63) (from Ch. 73, par. 1065.59-63)
Sec. 512.63. Fees. (a) The fees required by this Article
are as follows:
(1) Public Insurance Adjuster license annual fee, $100
$30;
(2) Registration of Firms, $100 $20;
(3) Application Fee for processing each request to take
the written examination for a Public Adjuster license, $20
$10.
(Source: P.A. 83-1362.)
(215 ILCS 5/513a3) (from Ch. 73, par. 1065.60a3)
Sec. 513a3. License required.
(a) No person may act as a premium finance company or
hold himself out to be engaged in the business of financing
insurance premiums, either directly or indirectly, without
first having obtained a license as a premium finance company
from the Director.
(b) An insurance producer shall be deemed to be engaged
in the business of financing insurance premiums if 10% or
more of the producer's total premium accounts receivable are
more than 90 days past due.
(c) In addition to any other penalty set forth in this
Article, any person violating subsection (a) of this Section
may, after hearing as set forth in Article XXIV of this Code,
be required to pay a civil penalty of not more than $2,000
$1000 for each offense.
(d) In addition to any other penalty set forth in this
Article, any person violating subsection (a) of this Section
is guilty of a Class A misdemeanor. Any individual violating
subsection (a) of this Section, and misappropriating or
converting any monies collected in conjunction with the
violation, is guilty of a Class 4 felony.
(Source: P.A. 89-626, eff. 8-9-96.)
(215 ILCS 5/513a4) (from Ch. 73, par. 1065.60a4)
Sec. 513a4. Application and license.
(a) Each application for a premium finance license shall
be made on a form specified by the Director and shall be
signed by the applicant declaring under penalty of refusal,
suspension, or revocation of the license that the statements
made in the application are true, correct, and complete to
the best of the applicant's knowledge and belief. The
Director shall cause to be issued a license to each applicant
that has demonstrated to the Director that the applicant:
(1) is competent and trustworthy and of a good
business reputation;
(2) has a minimum net worth of $50,000; and
(3) has paid the fees required by this Article.
(b) Each applicant at the time of request for a license
or renewal of a license shall:
(1) certify that no charge for financing premiums
shall exceed the rates permitted by this Article;
(2) certify that the premium finance agreement or
other forms being used are in compliance with the
requirements of this Article;
(3) certify that he or she has a minimum net worth
of $50,000; and
(4) attach with the application a non-refundable
annual fee of $400 $200.
(c) An applicant who has met the requirements of
subsection (a) and subsection (b) shall be issued a premium
finance license.
(d) Each premium finance license shall remain in effect
as long as the holder of the license annually continues to
meet the requirements of subsections (a) and (b) by the due
date unless the license is revoked or suspended by the
Director.
(e) The individual holder of a premium finance license
shall inform the Director in writing of a change in residence
address within 30 days of the change, and a corporation,
partnership, or association holder of a premium finance
license shall inform the Director in writing of a change in
business address within 30 days of the change.
(f) Every partnership or corporation holding a license
as a premium finance company shall appoint one or more
partners or officers to be responsible for the firm's
compliance with the Illinois Insurance Code and applicable
rules and regulations. Any change in the appointed person or
persons shall be reported to the Director in writing within
30 days of the change.
(Source: P.A. 87-811.)
(215 ILCS 5/513a7) (from Ch. 73, par. 1065.60a7)
Sec. 513a7. License suspension; revocation or denial.
(a) Any license issued under this Article may be
suspended, revoked, or denied if the Director finds that the
licensee or applicant:
(1) has wilfully violated any provisions of this
Code or the rules and regulations thereunder;
(2) has intentionally made a material misstatement
in the application for a license;
(3) has obtained or attempted to obtain a license
through misrepresentation or fraud;
(4) has misappropriated or converted to his own use
or improperly withheld monies;
(5) has used fraudulent, coercive, or dishonest
practices or has demonstrated incompetence,
untrustworthiness, or financial irresponsibility;
(6) has been, within the past 3 years, convicted of
a felony, unless the individual demonstrates to the
Director sufficient rehabilitation to warrant public
trust;
(7) has failed to appear without reasonable cause
or excuse in response to a subpoena issued by the
Director;
(8) has had a license suspended, revoked, or denied
in any other state on grounds similar to those stated in
this Section; or
(9) has failed to report a felony conviction as
required by Section 513a6.
(b) Suspension, revocation, or denial of a license under
this Section shall be by written order sent to the licensee
or applicant by certified or registered mail at the address
specified in the records of the Department. The licensee or
applicant may in writing request a hearing within 30 days
from the date of mailing. If no written request is made the
order shall be final upon the expiration of that 30 day
period.
(c) If the licensee or applicant requests a hearing
under this Section, the Director shall issue a written notice
of hearing sent to the licensee or applicant by certified or
registered mail at his address, as specified in the records
of the Department, and stating:
(1) the grounds, charges, or conduct that justifies
suspension, revocation, or denial under this Section;
(2) the specific time for the hearing, which may
not be fewer than 20 nor more than 30 days after the
mailing of the notice of hearing; and
(3) a specific place for the hearing, which may be
either in the City of Springfield or in the county where
the licensee's principal place of business is located.
(d) Upon the suspension or revocation of a license, the
licensee or other person having possession or custody of the
license shall promptly deliver it to the Director in person
or by mail. The Director shall publish all suspensions and
revocations after they become final in a manner designed to
notify interested insurance companies and other persons.
(e) Any person whose license is revoked or denied under
this Section shall be ineligible to apply for any license for
2 years. A suspension under this Section may be for a period
of up to 2 years.
(f) In addition to or instead of a denial, suspension,
or revocation of a license under this Section, the licensee
may be subjected to a civil penalty of up to $2,000 $1,000
for each cause for denial, suspension, or revocation. The
penalty is enforceable under subsection (5) of Section 403A
of this Code.
(Source: P.A. 87-811.)
(215 ILCS 5/529.5) (from Ch. 73, par. 1065.76-5)
Sec. 529.5. The Industry Placement Facility shall
compile an annual operating report, and publish such report
in at least 2 newspapers having widespread circulation in the
State, which report shall include:
(1) a description of the origin and purpose of the
Illinois Fair Plan and its relationship to the property and
casualty insurance industry in Illinois;
(2) a financial statement specifying the amount of
profit or loss incurred by the Facility for its financial
year; and
(3) a disclosure as to the amount of subsidization per
type of policy written by the Facility, which is provided by
the property and casualty insurance companies operating in
Illinois, if any.
This annual report shall be a matter of public record to
be made available to any person requesting a copy from the
Facility at a fee not to exceed $10 $5 per copy. A copy
shall be available for inspection at the Department of
Insurance.
(Source: P.A. 82-499.)
(215 ILCS 5/544) (from Ch. 73, par. 1065.94)
Sec. 544. Powers of the Director. The Director shall
either (a) suspend or revoke, after notice and hearing
pursuant to Sections 401, 402 and 403 of this Code, the
certificate of authority to do business in this State of any
member company which fails to pay an assessment when due or
fails to comply with the plan of operation, or (b) levy a
fine on any member company which fails to pay an assessment
when due. Such fine shall not exceed 5% per month of the
unpaid assessment, except that no fine shall be less than
$200 $100 per month.
(Source: P.A. 85-576.)
(215 ILCS 5/1020) (from Ch. 73, par. 1065.720)
Sec. 1020. Penalties. (A) In any case where a hearing
pursuant to Section 1016 results in the finding of a knowing
violation of this Article, the Director may, in addition to
the issuance of a cease and desist order as prescribed in
Section 1018, order payment of a monetary penalty of not more
than $1,000 $500 for each violation but not to exceed $20,000
$10,000 in the aggregate for multiple violations.
(B) Any person who violates a cease and desist order of
the Director under Section 1018 of this Article may, after
notice and hearing and upon order of the Director, be subject
to one or more of the following penalties, at the discretion
of the Director:
(1) a monetary fine of not more than $20,000 $10,000 for
each violation,
(2) a monetary fine of not more than $100,000 $50,000 if
the Director finds that violations have occurred with such
frequency as to constitute a general business practice, or
(3) suspension or revocation of an insurance
institution's or agent's license.
(Source: P.A. 82-108.)
(215 ILCS 5/1108) (from Ch. 73, par. 1065.808)
Sec. 1108. Trust; filing requirements; records.
(1) Any risk retention trust created under this Article
shall file with the Director:
(a) A statement of intent to provide named
coverages.
(b) The trust agreement between the trust sponsor
and the trustees, detailing the organization and
administration of the trust and fiduciary
responsibilities.
(c) Signed risk pooling agreements from each trust
member describing their intent to participate in the
trust and maintain the contingency reserve fund.
(d) By April 1 of each year a financial statement
for the preceding calendar year ending December 31, and a
list of all beneficiaries during the year. The financial
statement and report shall be in such form as the
Director of Insurance may prescribe. The truth and
accuracy of the financial statement shall be attested to
by each trustee. Each Risk Retention Trust shall file
with the Director by June 1 an opinion of an independent
certified public accountant on the financial condition of
the Risk Retention Trust for the most recent calendar
year and the results of its operations, changes in
financial position and changes in capital and surplus for
the year then ended in conformity with accounting
practices permitted or prescribed by the Illinois
Department of Insurance.
(e) The name of a bank or trust company with whom
the trust will enter into an escrow agreement which shall
state that the contingency reserve fund will be
maintained at the levels prescribed in this Article.
(f) Copies of coverage grants it will issue.
(2) The Director of Insurance shall charge, collect and
give proper acquittances for the payment of the following
fees and charges:
(a) For filing trust instruments, amendments
thereto and financial statement and report of the
trustees, $50 $25.
(b) For copies of papers or records per page, $2
$1.
(c) For certificate to copy of paper, $10 $5.
(d) For filing an application for the licensing of
a risk retention trust, $1,000 $500.
(3) The trust shall keep its books and records in
accordance with the provisions of Section 133 of this Code.
The Director may examine such books and records from time to
time as provided in Sections 132 through 132.7 of this Code
and may charge the expense of such examination to the trust
as provided in subsection (3) of Section 408 of this Code.
(4) Trust funds established under this Section and all
persons interest therein or dealing therewith shall be
subject to the provisions of Sections 133, 144.1, 149, 401,
401.1, 402, 403, 403A, 412, and all of the provisions of
Articles VII, VIII, XII 1/2 and XIII of the Code, as amended.
Except as otherwise provided in this Section, trust funds
established under and which fully comply with this Section,
shall not be subjected to any other provision of the Code.
(5) The Director of Insurance may make reasonable rules
and regulations pertaining to the standards of coverage and
administration of the trust authorized by this Section. Such
rules may include but need not be limited to reasonable
standards for fiduciary duties of the trustees, standards for
the investment of funds, limitation of risks assumed, minimum
size, capital, surplus, reserves, and contingency reserves.
(Source: P.A. 89-97, eff. 7-7-95.)
(215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
Sec. 1204. (A) The Director shall promulgate rules and
regulations which shall require each insurer licensed to
write property or casualty insurance in the State and each
syndicate doing business on the Illinois Insurance Exchange
to record and report its loss and expense experience and
other data as may be necessary to assess the relationship of
insurance premiums and related income as compared to
insurance costs and expenses. The Director may designate one
or more rate service organizations or advisory organizations
to gather and compile such experience and data. The Director
shall require each insurer licensed to write property or
casualty insurance in this State and each syndicate doing
business on the Illinois Insurance Exchange to submit a
report, on a form furnished by the Director, showing its
direct writings in this State and companywide.
(B) Such report required by subsection (A) of this
Section may include, but not be limited to, the following
specific types of insurance written by such insurer:
(1) Political subdivision liability insurance
reported separately in the following categories:
(a) municipalities;
(b) school districts;
(c) other political subdivisions;
(2) Public official liability insurance;
(3) Dram shop liability insurance;
(4) Day care center liability insurance;
(5) Labor, fraternal or religious organizations
liability insurance;
(6) Errors and omissions liability insurance;
(7) Officers and directors liability insurance
reported separately as follows:
(a) non-profit entities;
(b) for-profit entities;
(8) Products liability insurance;
(9) Medical malpractice insurance;
(10) Attorney malpractice insurance;
(11) Architects and engineers malpractice
insurance; and
(12) Motor vehicle insurance reported separately
for commercial and private passenger vehicles as follows:
(a) motor vehicle physical damage insurance;
(b) motor vehicle liability insurance.
(C) Such report may include, but need not be limited to
the following data, both specific to this State and
companywide, in the aggregate or by type of insurance for the
previous year on a calendar year basis:
(1) Direct premiums written;
(2) Direct premiums earned;
(3) Number of policies;
(4) Net investment income, using appropriate
estimates where necessary;
(5) Losses paid;
(6) Losses incurred;
(7) Loss reserves:
(a) Losses unpaid on reported claims;
(b) Losses unpaid on incurred but not reported
claims;
(8) Number of claims:
(a) Paid claims;
(b) Arising claims;
(9) Loss adjustment expenses:
(a) Allocated loss adjustment expenses;
(b) Unallocated loss adjustment expenses;
(10) Net underwriting gain or loss;
(11) Net operation gain or loss, including net
investment income;
(12) Any other information requested by the
Director.
(D) In addition to the information which may be
requested under subsection (C), the Director may also request
on a companywide, aggregate basis, Federal Income Tax
recoverable, net realized capital gain or loss, net
unrealized capital gain or loss, and all other expenses not
requested in subsection (C) above.
(E) Violations - Suspensions - Revocations.
(1) Any company or person subject to this Article,
who willfully or repeatedly fails to observe or who
otherwise violates any of the provisions of this Article
or any rule or regulation promulgated by the Director
under authority of this Article or any final order of the
Director entered under the authority of this Article
shall by civil penalty forfeit to the State of Illinois a
sum not to exceed $2,000 $1,000. Each day during which a
violation occurs constitutes a separate offense.
(2) No forfeiture liability under paragraph (1) of
this subsection may attach unless a written notice of
apparent liability has been issued by the Director and
received by the respondent, or the Director sends written
notice of apparent liability by registered or certified
mail, return receipt requested, to the last known address
of the respondent. Any respondent so notified must be
granted an opportunity to request a hearing within 10
days from receipt of notice, or to show in writing, why
he should not be held liable. A notice issued under this
Section must set forth the date, facts and nature of the
act or omission with which the respondent is charged and
must specifically identify the particular provision of
this Article, rule, regulation or order of which a
violation is charged.
(3) No forfeiture liability under paragraph (1) of
this subsection may attach for any violation occurring
more than 2 years prior to the date of issuance of the
notice of apparent liability and in no event may the
total civil penalty forfeiture imposed for the acts or
omissions set forth in any one notice of apparent
liability exceed $100,000 $50,000.
(4) All administrative hearings conducted pursuant
to this Article are subject to 50 Ill. Adm. Code 2402 and
all administrative hearings are subject to the
Administrative Review Law.
(5) The civil penalty forfeitures provided for in
this Section are payable to the General Revenue Fund of
the State of Illinois, and may be recovered in a civil
suit in the name of the State of Illinois brought in the
Circuit Court in Sangamon County or in the Circuit Court
of the county where the respondent is domiciled or has
its principal operating office.
(6) In any case where the Director issues a notice
of apparent liability looking toward the imposition of a
civil penalty forfeiture under this Section that fact may
not be used in any other proceeding before the Director
to the prejudice of the respondent to whom the notice was
issued, unless (a) the civil penalty forfeiture has been
paid, or (b) a court has ordered payment of the civil
penalty forfeiture and that order has become final.
(7) When any person or company has a license or
certificate of authority under this Code and knowingly
fails or refuses to comply with a lawful order of the
Director requiring compliance with this Article, entered
after notice and hearing, within the period of time
specified in the order, the Director may, in addition to
any other penalty or authority provided, revoke or refuse
to renew the license or certificate of authority of such
person or company, or may suspend the license or
certificate of authority of such person or company until
compliance with such order has been obtained.
(8) When any person or company has a license or
certificate of authority under this Code and knowingly
fails or refuses to comply with any provisions of this
Article, the Director may, after notice and hearing, in
addition to any other penalty provided, revoke or refuse
to renew the license or certificate of authority of such
person or company, or may suspend the license or
certificate of authority of such person or company, until
compliance with such provision of this Article has been
obtained.
(9) No suspension or revocation under this Section
may become effective until 5 days from the date that the
notice of suspension or revocation has been personally
delivered or delivered by registered or certified mail to
the company or person. A suspension or revocation under
this Section is stayed upon the filing, by the company or
person, of a petition for judicial review under the
Administrative Review Law.
(Source: P.A. 91-357, eff. 7-29-99.)
Section 75-26. The Reinsurance Intermediary Act is
amended by changing Section 55 as follows:
(215 ILCS 100/55) (from Ch. 73, par. 1655)
Sec. 55. Penalties and liabilities.
(a) If the Director determines that a reinsurance
intermediary has not materially complied with this Act or any
regulation or Order promulgated hereunder, after notice and
opportunity to be heard, the Director may order a penalty in
an amount not exceeding $100,000 $50,000 for each separate
violation and may order the revocation or suspension of the
reinsurance intermediary's license. If it is found that
because of the material noncompliance the insurer or
reinsurer has suffered any loss or damage, the Director may
maintain a civil action brought by or on behalf of the
reinsurer or insurer and its policyholders and creditors for
recovery of compensatory damages for the benefit of the
reinsurer or insurer and its policyholders and creditors or
seek other appropriate relief.
This subsection (a) shall not be construed to prevent any
other person from taking civil action against a reinsurance
intermediary.
(b) If an Order of Rehabilitation or Liquidation of the
insurer is entered under Article XIII of the Illinois
Insurance Code and the receiver appointed under that Order
determines that the reinsurance intermediary or any other
person has not materially complied with this Act or any
regulation or Order promulgated hereunder and the insurer has
suffered any loss or damage therefrom, the receiver may
maintain a civil action for recovery of damages or other
appropriate sanctions for the benefit of the insurer.
(c) The decision, determination, or order of the
Director under subsection (a) of this Section shall be
subject to judicial review under the Administrative Review
Law.
(d) Nothing contained in this Act shall affect the right
of the Director to impose any other penalties provided in the
Illinois Insurance Code.
(e) Nothing contained in this Act is intended to or
shall in any manner limit or restrict the rights of
policyholders, claimants, creditors, or other third parties
or confer any rights to those persons.
(Source: P.A. 87-108; 88-364.)
Section 75-26.1. The Employee Leasing Company Act is
amended by changing Section 20 as follows:
(215 ILCS 113/20)
Sec. 20. Registration.
(a) A lessor shall register with the Department prior to
becoming a qualified self-insured for workers' compensation
or becoming eligible to be issued a workers' compensation and
employers' liability insurance policy. The registration
shall:
(1) identify the name of the lessor;
(2) identify the address of the principal place of
business of the lessor;
(3) include the lessor's taxpayer or employer
identification number;
(4) include a list by jurisdiction of each and
every name that the lessor has operated under in the
preceding 5 years including any alternative names and
names of predecessors;
(5) include a list of the officers and directors of
the lessor and its predecessors, successors, or alter
egos in the preceding 5 years; and
(6) include a $1,000 $500 fee for the registration
and each annual renewal thereafter.
Amounts received as registration fees shall be deposited
into the Insurance Producer Administration Fund.
(b) (Blank).
(c) Lessors registering pursuant to this Section shall
notify the Department within 30 days as to any changes in any
information provided pursuant to this Section.
(d) The Department shall maintain a list of those
lessors who are registered with the Department.
(e) The Department may prescribe any forms that are
necessary to promote the efficient administration of this
Section.
(f) Any lessor that was doing business in this State
prior to enactment of this Act shall register with the
Department within 60 days of the effective date of this Act.
(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
Section 75-26.2. The Health Care Purchasing Group Act is
amended by changing Section 20 as follows:
(215 ILCS 123/20)
Sec. 20. HPG sponsors. Except as provided by Sections 15
and 25 of this Act, only a corporation authorized by the
Secretary of State to transact business in Illinois may
sponsor one or more HPGs with no more than 100,000 covered
individuals by negotiating, soliciting, or servicing health
insurance contracts for HPGs and their members. Such a
corporation may assert and maintain authority to act as an
HPG sponsor by complying with all of the following
requirements:
(1) The principal officers and directors
responsible for the conduct of the HPG sponsor must
perform their HPG sponsor related functions in Illinois.
(2) No insurance risk may be borne or retained by
the HPG sponsor; all health insurance contracts issued to
HPGs through the HPG sponsor must be delivered in
Illinois.
(3) No HPG sponsor may collect premium in its name
or hold or manage premium or claim fund accounts unless
duly qualified and licensed as a managing general agent
pursuant to Section 141a of the Illinois Insurance Code
or as a third party administrator pursuant to Section
511.105 of the Illinois Insurance Code.
(4) If the HPG gives an offer, application, notice,
or proposal of insurance to an employer, it must disclose
the total cost of the insurance. Dues, fees, or charges
to be paid to the HPG, HPG sponsor, or any other entity
as a condition to purchasing the insurance must be
itemized. The HPG shall also disclose to its members the
amount of any dividends, experience refunds, or other
such payments it receives from the risk-bearer.
(5) An HPG sponsor must register with the Director
before negotiating or soliciting any group or master
health insurance contract for any HPG and must renew the
registration annually on forms and at times prescribed by
the Director in rules specifying, at minimum, (i) the
identity of the officers and directors of the HPG sponsor
corporation; (ii) a certification that those persons have
not been convicted of any felony offense involving a
breach of fiduciary duty or improper manipulation of
accounts; (iii) the number of employer members then
enrolled in each HPG sponsored; (iv) the date on which
each HPG was issued a group or master health insurance
contract, if any; and (v) the date on which each such
contract, if any, was terminated.
(6) At the time of initial registration and each
renewal thereof an HPG sponsor shall pay a fee of $200
$100 to the Director.
(Source: P.A. 90-337, eff. 1-1-98; 91-617, eff. 1-1-00.)
Section 75-26.3. The Service Contract Act is amended by
changing Section 25 as follows:
(215 ILCS 152/25)
Sec. 25. Registration requirements for service contract
providers.
(a) No service contract shall be issued or sold in this
State until the following information has been submitted to
the Department:
(1) the name of the service contract provider;
(2) a list identifying the service contract
provider's executive officer or officers directly
responsible for the service contract provider's service
contract business;
(3) the name and address of the service contract
provider's agent for service of process in this State, if
other than the service contract provider;
(4) a true and accurate copy of all service
contracts to be sold in this State; and
(5) a statement indicating under which provision of
Section 15 the service contract provider qualifies to do
business in this State as a service contract provider.
(b) The service contract provider shall pay an initial
registration fee of $1,000 $500 and a renewal fee of $150 $75
each year thereafter. All fees and penalties collected under
this Act shall be paid to the Director and deposited in the
Insurance Financial Regulation Fund.
(Source: P.A. 90-711, eff. 8-7-98.)
Section 75-27. The Title Insurance Act is amended by
changing Section 14 as follows:
(215 ILCS 155/14) (from Ch. 73, par. 1414)
Sec. 14. (a) Every title insurance company and every
independent escrowee subject to this Act shall pay the
following fees:
(1) for filing the original application for a
certificate of authority and receiving the deposit
required under this Act, $500;
(2) for the certificate of authority, $10;
(3) for every copy of a paper filed in the
Department under this Act, $1 per folio;
(4) for affixing the seal of the Department and
certifying a copy, $2;
(5) for filing the annual statement, $50.
(b) Each title insurance company shall pay, for all of
its title insurance agents subject to this Act for filing an
annual registration of its agents, an amount equal to $3
$1.00 for each policy issued by all of its agents in the
immediately preceding calendar year, provided such sum shall
not exceed $20,000 per annum.
(Source: P.A. 86-239.)
Section 75-28. The Viatical Settlements Act is amended
by changing Section 10 as follows:
(215 ILCS 158/10)
Sec. 10. License requirements.
(a) No individual, partnership, corporation, or other
entity may act as a viatical settlement provider without
first having obtained a license from the Director.
(b) Application for a viatical settlement provider
license shall be made to the Director by the applicant on a
form prescribed by the Director. The application shall be
accompanied by a fee of $3,000 $1,500, which shall be
deposited into the Insurance Producer Administration Fund.
(c) Viatical settlement providers' licenses may be
renewed from year to year on the anniversary date upon (1)
submission of renewal forms prescribed by the Director and
(2) payment of the annual renewal fee of $1,500 $750, which
shall be deposited into the Insurance Producer Administration
Fund. Failure to pay the fee within the terms prescribed by
the Director shall result in the expiration of the license.
(d) Applicants for a viatical settlement provider's
license shall provide such information as the Director may
require. The Director shall have authority, at any time, to
require the applicant to fully disclose the identity of all
stockholders, partners, officers, and employees. The
Director may, in the exercise of discretion, refuse to issue
a license in the name of any firm, partnership, or
corporation if not satisfied that an officer, employee,
stockholder, or partner thereof who may materially influence
the applicant's conduct meets the standards of this Act.
(e) A viatical settlement provider's license issued to a
partnership, corporation, or other entity authorizes all
members, officers, and designated employees to act as
viatical settlement providers under the license. All those
persons must be named in the application and any supplements
thereto.
(f) Upon the filing of an application for a viatical
settlement provider's license and the payment of the license
fee, the Director shall make an investigation of the
applicant and may issue a license if the Director finds that
the applicant:
(1) has provided a detailed plan of operation;
(2) is competent and trustworthy and intends to act
in good faith in the capacity authorized by the license
applied for;
(3) has a good business reputation and has had
experience, training, or education so as to be qualified
in the business for which the license is applied for; and
(4) if a corporation, is a corporation incorporated
under the laws of this State or a foreign corporation
authorized to transact business in this State.
(g) The Director may not issue a license to a
nonresident applicant, unless a written designation of an
agent for service of process is filed and maintained with the
Director or the applicant has filed with the Director the
applicant's written irrevocable consent that any action
against the applicant may be commenced against the applicant
by service of process on the Director.
(h) A viatical settlement provider must assume
responsibility for all actions of its appointed viatical
settlement agents associated with a viatical settlement.
(Source: P.A. 89-484, eff. 6-21-96.)
Section 75-30. The Public Utilities Act is amended by
changing Section 6-108 as follows:
(220 ILCS 5/6-108) (from Ch. 111 2/3, par. 6-108)
Sec. 6-108. The Commission shall charge every public
utility receiving permission under this Act for the issue of
stocks, bonds, notes and other evidences of indebtedness an
amount equal to 12 10 cents for every $100 of the par or
stated value of stocks, and 24 20 cents for every $100 of the
principal amount of bonds, notes or other evidences of
indebtedness, authorized by the Commission, which shall be
paid to the Commission no later than 30 days after service of
the Commission order authorizing the issuance of those
stocks, bonds, notes or other evidences of indebtedness.
Provided, that if any such stock, bonds, notes or other
evidences of indebtedness constitutes or creates a lien or
charge on, or right to profits from, any property not
situated in this State, this fee shall be paid only on the
amount of any such issue which is the same proportion of the
whole issue as the property situated in this State is of the
total property on which such securities issue creates a lien
or charge, or from which a right to profits is established;
and provided further, that no public utility shall be
required to pay any fee for permission granted to it by the
Commission in any of the following cases:
(1) To guarantee bonds or other securities.
(2) To issue bonds, notes or other evidences of
indebtedness issued for the purpose of converting,
exchanging, taking over, refunding, discharging or retiring
any bonds, notes or other evidences of indebtedness except:
(a) When issued for an aggregate period of longer
than 2 years for the purpose of converting, exchanging,
taking over, refunding, discharging or retiring any note,
or renewals thereof, issued without the consent of the
State Public Utilities Commission of Illinois or the
Public Utilities Commission or the Illinois Commerce
Commission; or
(b) When issued for the purpose of converting,
exchanging, taking over, refunding, discharging or
retiring bonds, notes or other evidences of indebtedness
issued prior to January 1, 1914, and upon which no fee
has been previously paid.
(3) To issue shares of stock upon the conversion of
convertible bonds, notes or other evidences of indebtedness
or upon the conversion of convertible stock of another class
in accordance with a conversion privilege contained in such
convertible bonds, notes or other evidences of indebtedness
or contained in such convertible stock, as the case may be,
where a fee (in the amount payable under this Section in the
case of evidences of indebtedness) has been previously paid
for the issuance of such convertible bonds, notes or other
evidences of indebtedness, or where a fee (in the amount
payable under this Section in the case of stocks) has been
previously paid for the issuance of such convertible stock,
or where such convertible stock was issued prior to July 1,
1951 and upon which no fee has been previously paid, as the
case may be.
(4) To issue shares of stocks for the purpose of
redeeming or otherwise retiring, or in exchange for, other
stocks, where the fee for the issuance of such other stocks
has been previously paid, or where such other stocks were
issued prior to July 1, 1951 and upon which no fee has been
previously paid, as the case may be, but only to the extent
that the par or stated value of the shares of stock so issued
does not exceed the par or stated value of the other stocks
redeemed or otherwise retired or exchanged.
All fees collected by the Commission under this Section
shall be paid within 10 days after the receipt of the same,
accompanied by a detailed statement of the same, into the
Public Utility Fund in the State treasury.
(Source: P.A. 87-971.)
Section 75-35. The Professional Boxing Act is amended by
changing Section 23 as follows:
(225 ILCS 105/23) (from Ch. 111, par. 5023)
(Section scheduled to be repealed on January 1, 2012)
Sec. 23. Fees. The fees for the administration and
enforcement of this Act including, but not limited to,
original licensure, renewal, and restoration shall be set by
rule. The fees shall not be refundable. Beginning July 1,
2003, all of the fees, taxes, and fines collected under this
Act shall be deposited into the General Professions Dedicated
Fund.
(Source: P.A. 91-357, eff. 7-29-99; 91-408, eff. 1-1-00;
92-16, eff. 6-28-01; 92-499, eff. 1-1-02.)
Section 75-40. The Illinois Certified Shorthand
Reporters Act of 1984 is amended by changing Section 17 as
follows:
(225 ILCS 415/17) (from Ch. 111, par. 6217)
(Section scheduled to be repealed on January 1, 2004)
Sec. 17. Fees; returned checks; expiration while in
military.
(a) The fees for the administration and enforcement of
this Act, including but not limited to, original
certification, renewal and restoration, shall be set by rule.
(b) Beginning July 1, 2003, all of the fees and fines
collected under this Act shall be deposited into the General
Professions Dedicated Fund.
(c) Any person who delivers a check or other payment to
the Department that is returned to the Department unpaid by
the financial institution upon which it is drawn shall pay to
the Department, in addition to the amount already owed to the
Department, a fine of $50. The fines imposed by this Section
are in addition to any other discipline provided under this
Act prohibiting unlicensed practice or practice on a
nonrenewed license. The Department shall notify the person
that payment of fees and fines shall be paid to the
Department by certified check or money order within 30
calendar days of the notification. If, after the expiration
of 30 days from the date of the notification, the person has
failed to submit the necessary remittance, the Department
shall automatically terminate the license or certificate or
deny the application, without hearing. If, after termination
or denial, the person seeks a license or certificate, he or
she shall apply to the Department for restoration or issuance
of the license or certificate and pay all fees and fines due
to the Department. The Department may establish a fee for the
processing of an application for restoration of a license or
certificate to pay all expenses of processing this
application. The Director may waive the fines due under this
Section in individual cases where the Director finds that the
fines would be unreasonable or unnecessarily burdensome.
However, any person whose license has expired while he
has been engaged (l) in federal or state service active duty,
or (2) in training or education under the supervision of the
United States preliminary to induction into the military
service, may have his license renewed, reinstated or restored
without paying any lapsed renewal and restoration fees, if
within 2 years after termination of such service, training or
education other than by dishonorable discharge, he furnishes
the Department with satisfactory proof that he has been so
engaged and that his service, training or education has been
so terminated.
(Source: P.A. 92-146, eff. 1-1-02.)
Section 75-45. The Weights and Measures Act is amended
by changing Section 8.1 as follows:
(225 ILCS 470/8.1) (from Ch. 147, par. 108.1)
Sec. 8.1. Registration of servicepersons, service
agents, and special sealers. No person, firm, or corporation
shall sell, install, service, recondition or repair a
weighing or measuring device used in trade or commerce
without first obtaining a certificate of registration.
Applications by individuals for a certificate of registration
shall be made to the Department, shall be in writing on forms
prescribed by the Department, and shall be accompanied by the
required fee.
Each application shall provide such information that will
enable the Department to pass on the qualifications of the
applicant for the certificate of registration. The
information requests shall include present residence,
location of the business to be licensed under this Act,
whether the applicant has had any previous registration under
this Act or any federal, state, county, or local law,
ordinance, or regulation relating to servicepersons and
service Agencies, whether the applicant has ever had a
registration suspended or revoked, whether the applicant has
been convicted of a felony, and such other information as the
Department deems necessary to determine if the applicant is
qualified to receive a certificate of registration.
Before any certificate of registration is issued, the
Department shall require the registrant to meet the following
qualifications:
(1) Has possession of or available for use weights
and measures, standards, and testing equipment
appropriate in design and adequate in amount to provide
the services for which the person is requesting
registration.
(2) Passes a qualifying examination for each type
of weighing or measuring device he intends to install,
service, recondition, or repair.
(3) Demonstrates a working knowledge of weighing
and measuring devices for which he intends to be
registered.
(4) Has a working knowledge of all appropriate
weights and measures laws and their rules and
regulations.
(5) Has available a current copy of National
Institute of Standards and Technology Handbook 44.
(6) Pays the prescribed registration fee for the
type of registration:
(A) The annual fee for a Serviceperson
Certificate of Registration shall be $25 $5.
(B) The annual fee for a Special Sealer
Certificate of Registration shall be $50 $25.
(C) The annual fee for a Service Agency
Certificate of Registration shall be $50 $25.
"Registrant" means any individual, partnership,
corporation, agency, firm, or company registered by the
Department who installs, services, repairs, or reconditions,
for hire, award, commission, or any other payment of any
kind, any commercial weighing or measuring device.
"Commercial weighing and measuring device" means any
weight or measure or weighing or measuring device
commercially used or employed (i) in establishing size,
quantity, extent, area, or measurement of quantities, things,
produce, or articles for distribution or consumption which
are purchased, offered, or submitted for sale, hire, or
award, or (ii) in computing any basic charge or payment for
services rendered, except as otherwise excluded by Section 2
of this Act, and shall also include any accessory attached to
or used in connection with a commercial weighing or measuring
device when the accessory is so designed or installed that
its operation affects, or may affect, the accuracy of the
device.
"Serviceperson" means any individual who sells, installs,
services, repairs, or reconditions, for hire, award,
commission, or any other payment of kind, a commercial
weighing or measuring device.
"Service agency" means any individual, agency, firm,
company, or corporation that, for hire, award, commission, or
any other payment of any kind, sells, installs, services,
repairs, or reconditions a commercial weighing or measuring
device.
"Special sealer" means any serviceperson who is allowed
to service only one service agency's liquid petroleum meters
or liquid petroleum measuring devices.
Each registered service agency and serviceperson shall
have report forms, known as "Placed in Service Reports".
These forms shall be executed in triplicate, shall include
the assigned registration number (in the case where a
registered serviceperson is representing a registered service
agency both assigned registration numbers shall be included),
and shall be signed by a registered serviceperson or by a
registered serviceperson representing a registered service
agency for each rejected or repaired device restored to
service and for each newly installed device placed in
service. Whenever a registered serviceperson or special
sealer places into service a weighing or measuring device,
there shall be affixed to the device indicator a decal
provided by the Department that indicates the device
accuracy.
Within 5 days after a device is restored to service or
placed in service, the original of a properly executed
"Placed in Service Report", together with any official
rejection tag or seal removed from the device, shall be
mailed to the Department. The duplicate copy of the report
shall be handed to the owner or operator of the device and
the triplicate copy of the report shall be retained by the
service agency or serviceperson.
A registered service agency and a registered
serviceperson shall submit, at least once every 2 years to
the Department for examination and certification, any
standards and testing equipment that are used, or are to be
used, in the performance of the service and testing functions
with respect to weighing and measuring devices for which
competence is registered. A registered serviceperson or
agency shall not use in servicing commercial weighing and
measuring devices any standards or testing equipment that
have not been certified by the Department.
When a serviceperson's or service agency's weights and
measures are carried to a National Institute of Standards and
Technology approved out-of-state weights and measures
laboratory for inspection and testing, the serviceperson or
service agency shall be responsible for providing the
Department a copy of the current certification of all weights
and measures used in the repair, service, or testing of
weighing or measuring devices within the State of Illinois.
All registered servicepersons placing into service scales
in excess of 30,000 pounds shall have a minimum of 10,000
pounds of State approved certified test weights to accurately
test a scale.
Persons working as apprentices are not subject to
registration if they work with and under the supervision of a
registered serviceperson.
The Director is authorized to promulgate, after public
hearing, rules and regulations necessary to enforce the
provisions of this Section.
For good cause and after a hearing upon reasonable
notice, the Director may deny any application for
registration or any application for renewal of registration,
or may revoke or suspend the registration of any registrant.
The Director may publish from time to time as he deems
appropriate, and may supply upon request, lists of registered
servicepersons and registered service agencies.
All final administrative decisions of the Director under
this Section shall be subject to judicial review under the
Administrative Review Law. The term "administrative
decision" is defined as in Section 1 of the Administrative
Review Law.
(Source: P.A. 88-600, eff. 9-1-94.)
Section 75-52. The Environmental Protection Act is
amended by changing Sections 9.6, 12.2, 16.1, 22.8, 22.15,
22.44, 39.5, 56.4, 56.5, and 56.6 and adding Sections 9.12,
9.13, 12.5, and 12.6 as follows:
(415 ILCS 5/9.6) (from Ch. 111 1/2, par. 1009.6)
Sec. 9.6. Air pollution operating permit fee.
(a) For any site for which an air pollution operating
permit is required, other than a site permitted solely as a
retail liquid dispensing facility that has air pollution
control equipment or an agrichemical facility with an
endorsed permit pursuant to Section 39.4, the owner or
operator of that site shall pay an initial annual fee to the
Agency within 30 days of receipt of the permit and an annual
fee each year thereafter for as long as a permit is in
effect. The owner or operator of a portable emission unit,
as defined in 35 Ill. Adm. Code 201.170, may change the site
of any unit previously permitted without paying an additional
fee under this Section for each site change, provided that no
further change to the permit is otherwise necessary or
requested.
(b) Notwithstanding any rules to the contrary, the
following fee amounts shall apply:
(1) The fee for a site permitted to emit less than
25 tons per year of any combination of regulated air
pollutants, as defined in Section 39.5 of this Act, is
$100 per year, beginning July 1, 1993, and increases to
$200 per year beginning on July 1, 2003, except as
provided in subsection (c) of this Section.
(2) The fee for a site permitted to emit at least
25 tons per year but less than 100 tons per year of any
combination of regulated air pollutants, as defined in
Section 39.5 of this Act, is $1,000 per year beginning
July 1, 1993, and increases to $1,800 per year beginning
on July 1, 2003, except as provided in subsection (c) of
this Section.
(3) The fee for a site permitted to emit at least
100 tons per year of any combination of regulated air
pollutants is $2,500 per year beginning July 1, 1993, and
increases to $3,500 per year beginning on July 1, 2003,
except as provided in subsection (c) of this Section;
provided, however, that the fee shall not exceed the
amount that would be required for the site if it were
subject to the fee requirements of Section 39.5 of this
Act.
(c) The owner or operator of any source subject to
paragraphs (b)(1), (b)(2), or (b)(3) of this Section that
becomes subject to Section 39.5 of this Act shall continue to
pay the fee set forth in this Section until the source
becomes subject to the fee set forth within subsection 18 of
Section 39.5 of this Act. In the event a site has paid a fee
under this Section during the 12 month period following the
effective date of the CAAPP for that site, the fee amount
shall be deducted from any amount due under subsection 18 of
Section 39.5 of this Act. Owners or operators that are
subject to paragraph (b)(1), (b)(2), or (b)(3) of this
Section, but that are not also subject to Section 39.5, or
excluded pursuant to subsection 1.1 or subsection 3(c) of
Section 39.5 shall continue to pay the fee amounts set forth
within paragraphs (b)(1), (b)(2), or (b)(3), whichever is
applicable.
(d) Only one air pollution site fee may be collected
from any site, even if such site receives more than one air
pollution control permit.
(e) The Agency shall establish procedures for the
collection of air pollution site fees. Air pollution site
fees may be paid annually, or in advance for the number of
years for which the permit is issued, at the option of the
owner or operator. Payment in advance does not exempt the
owner or operator from paying any increase in the fee that
may occur during the term of the permit; the owner or
operator must pay the amount of the increase upon and from
the effective date of the increase.
(f) The Agency may deny an application for the issuance,
transfer, or renewal of an air pollution operating permit if
any air pollution site fee owed by the applicant has not been
paid within 60 days of the due date, unless the applicant, at
the time of application, pays to the Agency in advance the
air pollution site fee for the site that is the subject of
the operating permit, plus any other air pollution site fees
then owed by the applicant. The denial of an air pollution
operating permit for failure to pay an air pollution site fee
shall be subject to review by the Board pursuant to the
provisions of subsection (a) of Section 40 of this Act.
(g) If the Agency determines that an owner or operator
of a site was required, but failed, to timely obtain an air
pollution operating permit, and as a result avoided the
payment of permit fees, the Agency may collect the avoided
permit fees with or without pursuing enforcement under
Section 31 of this Act. The avoided permit fees shall be
calculated as double the amount that would have been owed had
a permit been timely obtained. Fees collected pursuant to
this subsection (g) shall be deposited into the Environmental
Protection Permit and Inspection Fund.
(h) If the Agency determines that an owner or operator
of a site was required, but failed, to timely obtain an air
pollution operating permit and as a result avoided the
payment of permit fees, an enforcement action may be brought
under Section 31 of this Act. In addition to any other
relief that may be obtained as part of this action, the
Agency may seek to recover the avoided permit fees. The
avoided permit fees shall be calculated as double the amount
that would have been owed had a permit been timely obtained.
Fees collected pursuant to this subsection (h) shall be
deposited into the Environmental Protection Permit and
Inspection Fund.
(i) If a permittee subject to a fee under this Section
fails to pay the fee within 90 days of its due date, or makes
the fee payment from an account with insufficient funds to
cover the amount of the fee payment, the Agency shall notify
the permittee of the failure to pay the fee. If the
permittee fails to pay the fee within 60 days after such
notification, the Agency may, by written notice, immediately
revoke the air pollution operating permit. Failure of the
Agency to notify the permittee of failure to pay a fee due
under this Section, or the payment of the fee from an account
with insufficient funds to cover the amount of the fee
payment, does not excuse or alter the duty of the permittee
to comply with the provisions of this Section.
(Source: P.A. 90-367, eff. 8-10-97.)
(415 ILCS 5/9.12 new)
Sec. 9.12. Construction permit fees for air pollution
sources.
(a) An applicant for a new or revised air pollution
construction permit shall pay a fee, as established in this
Section, to the Agency at the time that he or she submits the
application for a construction permit. Except as set forth
below, the fee for each activity or category listed in this
Section is separate and is cumulative with any other
applicable fee listed in this Section.
(b) The fee amounts in this subsection (b) apply to
construction permit applications relating to (i) a source
subject to Section 39.5 of this Act (the Clean Air Act Permit
Program); (ii) a source that, upon issuance of the requested
construction permit, will become a major source subject to
Section 39.5; or (iii) a source that has or will require a
federally enforceable State operating permit limiting its
potential to emit.
(1) Base fees for each construction permit
application shall be assessed as follows:
(A) If the construction permit application
relates to one or more new emission units or to a
combination of new and modified emission units, a
fee of $4,000 for the first new emission unit and a
fee of $1,000 for each additional new or modified
emission unit; provided that the total base fee
under this subdivision (A) shall not exceed $10,000.
(B) If the construction permit application
relates to one or more modified emission units but
not to any new emission unit, a fee of $2,000 for
the first modified emission unit and a fee of $1,000
for each additional modified emission unit; provided
that the total base fee under this subdivision (B)
shall not exceed $5,000.
(2) Supplemental fees for each construction permit
application shall be assessed as follows:
(A) If, based on the construction permit
application, the source will be, but is not
currently, subject to Section 39.5 of this Act, a
CAAPP entry fee of $5,000.
(B) If the construction permit application
involves (i) a new source or emission unit subject
to Section 39.2 of this Act, (ii) a commercial
incinerator or other municipal waste, hazardous
waste, or waste tire incinerator, (iii) a commercial
power generator, or (iv) one or more other emission
units designated as a complex source by Agency
rulemaking, a fee of $25,000.
(C) If the construction permit application
involves an emissions netting exercise or reliance
on a contemporaneous emissions decrease for a
pollutant to avoid application of the federal PSD
program (40 CFR 52.21) or nonattainment new source
review (35 Ill. Adm. Code 203), a fee of $3,000 for
each such pollutant.
(D) If the construction permit application is
for a new major source subject to the federal PSD
program, a fee of $12,000.
(E) If the construction permit application is
for a new major source subject to nonattainment new
source review, a fee of $20,000.
(F) If the construction permit application is
for a major modification subject to the federal PSD
program, a fee of $6,000.
(G) If the construction permit application is
for a major modification subject to nonattainment
new source review, a fee of $12,000.
(H) If the construction permit application
review involves a determination of whether an
emission unit has Clean Unit Status and is therefore
not subject to the Best Available Control Technology
(BACT) or Lowest Achievable Emission Rate (LAER)
under the federal PSD program or nonattainment new
source review, a fee of $5,000 per unit for which a
determination is requested or otherwise required.
(I) If the construction permit application
review involves a determination of the Maximum
Achievable Control Technology standard for a
pollutant and the project is not otherwise subject
to BACT or LAER for a related pollutant under the
federal PSD program or nonattainment new source
review, a fee of $5,000 per unit for which a
determination is requested or otherwise required.
(J) If the applicant is requesting a
construction permit that will alter the source's
status so that it is no longer a major source
subject to Section 39.5 of this Act, a fee of
$4,000.
(3) If a public hearing is held regarding the
construction permit application, an administrative fee of
$10,000, subject to adjustment under subsection (f) of
this Section.
(c) The fee amounts in this subsection (c) apply to
construction permit applications relating to a source that,
upon issuance of the construction permit, will not (i) be or
become subject to Section 39.5 of this Act (the Clean Air Act
Permit Program) or (ii) have or require a federally
enforceable state operating permit limiting its potential to
emit.
(1) Base fees for each construction permit
application shall be assessed as follows:
(A) For a construction permit application
involving a single new emission unit, a fee of $500.
(B) For a construction permit application
involving more than one new emission unit, a fee of
$1,000.
(C) For a construction permit application
involving no more than 2 modified emission units, a
fee of $500.
(D) For a construction permit application
involving more than 2 modified emission units, a fee
of $1,000.
(2) Supplemental fees for each construction permit
application shall be assessed as follows:
(A) If the source is a new source, i.e., does
not currently have an operating permit, an entry fee
of $500;
(B) If the construction permit application
involves (i) a new source or emission unit subject
to Section 39.2 of this Act, (ii) a commercial
incinerator or a municipal waste, hazardous waste,
or waste tire incinerator, (iii) a commercial power
generator, or (iv) an emission unit designated as a
complex source by Agency rulemaking, a fee of
$15,000.
(3) If a public hearing is held regarding the
construction permit application, an administrative fee of
$10,000.
(d) If no other fee is applicable under this Section, a
construction permit application addressing one or more of the
following shall be subject to a filing fee of $500:
(1) A construction permit application to add or
replace a control device on a permitted emission unit.
(2) A construction permit application to conduct a
pilot project or trial burn for a permitted emission
unit.
(3) A construction permit application for a land
remediation project.
(4) A construction permit application for an
insignificant activity as described in 35 Ill. Adm. Code
201.210.
(5) A construction permit application to revise an
emissions testing methodology or the timing of required
emissions testing.
(6) A construction permit application that provides
for a change in the name, address, or phone number of any
person identified in the permit, or for a change in the
stated ownership or control, or for a similar minor
administrative permit change at the source.
(e) No fee shall be assessed for a request to correct an
issued permit that involves only an Agency error, if the
request is received within the deadline for a permit appeal
to the Pollution Control Board.
(f) The applicant for a new or revised air pollution
construction permit shall submit to the Agency, with the
construction permit application, both a certification of the
fee that he or she estimates to be due under this Section and
the fee itself.
(g) Notwithstanding the requirements of Section 39(a) of
this Act, the application for an air pollution construction
permit shall not be deemed to be filed with the Agency until
the Agency receives the initial air pollution construction
permit application fee and the certified estimate of the fee
required by this Section. Unless the Agency has received the
initial air pollution construction permit application fee and
the certified estimate of the fee required by this Section,
the Agency is not required to review or process the
application.
(h) If the Agency determines at any time that a
construction permit application is subject to an additional
fee under this Section that the applicant has not submitted,
the Agency shall notify the applicant in writing of the
amount due under this Section. The applicant shall have 60
days to remit the assessed fee to the Agency.
If the proper fee established under this Section is not
submitted within 60 days after the request for further
remittance:
(1) If the construction permit has not yet been
issued, the Agency is not required to further review or
process, and the provisions of Section 39(a) of this Act
do not apply to, the application for a construction
permit until such time as the proper fee is remitted.
(2) If the construction permit has been issued, the
Agency may, upon written notice, immediately revoke the
construction permit.
The denial or revocation of a construction permit does
not excuse the applicant from the duty of paying the fees
required under this Section.
(i) The Agency may deny the issuance of a pending air
pollution construction permit or the subsequent operating
permit if the applicant has not paid the required fees by the
date required for issuance of the permit. The denial or
revocation of a permit for failure to pay a construction
permit fee is subject to review by the Board pursuant to the
provisions of subsection (a) of Section 40 of this Act.
(j) If the owner or operator undertakes construction
without obtaining an air pollution construction permit, the
fee under this Section is still required. Payment of the
required fee does not preclude the Agency or the Attorney
General or other authorized persons from pursuing enforcement
against the applicant for failure to have an air pollution
construction permit prior to commencing construction.
(k) If an air pollution construction permittee makes a
fee payment under this Section from an account with
insufficient funds to cover the amount of the fee payment,
the Agency shall notify the permittee of the failure to pay
the fee. If the permittee fails to pay the fee within 60
days after such notification, the Agency may, by written
notice, immediately revoke the air pollution construction
permit. Failure of the Agency to notify the permittee of the
permittee's failure to make payment does not excuse or alter
the duty of the permittee to comply with the provisions of
this Section.
(l) The Agency may establish procedures for the
collection of air pollution construction permit fees.
(m) Fees collected pursuant to this Section shall be
deposited into the Environmental Protection Permit and
Inspection Fund.
(415 ILCS 5/9.13 new)
Sec. 9.13. Asbestos fees.
(a) For any site for which the owner or operator must
file an original 10-day notice of intent to renovate or
demolish pursuant to 40 CFR 61.145(b) (part of the federal
asbestos National Emission Standard for Hazardous Air
Pollutants or NESHAP), the owner or operator shall pay to the
Agency with the filing of each 10-day Notice a fee of $150.
(b) If demolition or renovation of a site has commenced
without proper filing of the 10-day Notice, the fee is double
the amount otherwise due. This doubling of the fee is in
addition to any other penalties under this Act, the federal
NESHAP, or otherwise, and does not preclude the Agency, the
Attorney General, or other authorized persons from pursuing
an enforcement action against the owner or operator for
failure to file a 10-day Notice prior to commencing
demolition or renovation activities.
(c) In the event that an owner or operator makes a fee
payment under this Section from an account with insufficient
funds to cover the amount of the fee payment, the 10-day
Notice shall be deemed improperly filed. The Agency shall so
notify the owner or operator within 60 days of receiving the
notice of insufficient funds. Failure of the Agency to so
notify the owner or operator does not excuse or alter the
duty of the owner or operator to comply with the requirements
of this Section.
(d) Where asbestos remediation or demolition activities
have not been conducted in accordance with the asbestos
NESHAP, in addition to the fees imposed by this Section, the
Agency may also collect its actual costs incurred for
asbestos-related activities at the site, including without
limitation costs of sampling, sample analysis, remediation
plan review, and activity oversight for demolition or
renovation.
(e) Fees and cost recovery amounts collected under this
Section shall be deposited into the Environmental Protection
Permit and Inspection Fund.
(415 ILCS 5/12.2) (from Ch. 111 1/2, par. 1012.2)
Sec. 12.2. Water pollution construction permit fees.
(a) Beginning July 1, 2003 January 1, 1991, the Agency
shall collect a fee in the amount set forth in this Section:
subsection (c)
(1) for any sewer which requires a construction
permit under paragraph (b) of Section 12, from each
applicant for a sewer construction permit under paragraph
(b) of Section 12 or regulations adopted hereunder; and.
(2) for any treatment works, industrial
pretreatment works, or industrial wastewater source that
requires a construction permit under paragraph (b) of
Section 12, from the applicant for the construction
permit. However, no fee shall be required for a
treatment works or wastewater source directly covered and
authorized under an NPDES permit issued by the Agency,
nor for any treatment works, industrial pretreatment
works, or industrial wastewater source (i) that is under
or pending construction authorized by a valid
construction permit issued by the Agency prior to July 1,
2003, during the term of that construction permit, or
(ii) for which a completed construction permit
application has been received by the Agency prior to July
1, 2003, with respect to the permit issued under that
application.
(b) Each applicant or person required to pay a fee under
this Section shall submit the fee to the Agency along with
the permit application. The Agency shall deny any
construction permit application for which a fee is required
under this Section that does not contain the appropriate fee.
(c) The amount of the fee is as follows:
(1) A $100 $50 fee shall be required for any sewer
constructed with a design population of 1.
(2) A $400 $200 fee shall be required for any sewer
constructed with a design population of 2 to 20.
(3) A $800 $400 fee shall be required for any sewer
constructed with a design population greater than 20 but
less than 101.
(4) A $1200 $600 fee shall be required for any
sewer constructed with a design population greater than
100 but less than 500.
(5) A $2400 $1200 fee shall be required for any
sewer constructed with a design population of 500 or
more.
(6) A $1,000 fee shall be required for any
industrial wastewater source that does not require
pretreatment of the wastewater prior to discharge to the
publicly owned treatment works or publicly regulated
treatment works.
(7) A $3,000 fee shall be required for any
industrial wastewater source that requires pretreatment
of the wastewater for non-toxic pollutants prior to
discharge to the publicly owned treatment works or
publicly regulated treatment works.
(8) A $6,000 fee shall be required for any
industrial wastewater source that requires pretreatment
of the wastewater for toxic pollutants prior to discharge
to the publicly owned treatment works or publicly
regulated treatment works.
(9) A $2,500 fee shall be required for construction
relating to land application of industrial sludge or
spray irrigation of industrial wastewater.
All fees collected by the Agency under this Section shall
be deposited into the Environmental Protection Permit and
Inspection Fund in accordance with Section 22.8.
(d) Prior to a final Agency decision on a permit
application for which a fee has been paid under this Section,
the applicant may propose modification to the application in
accordance with this Act and regulations adopted hereunder
without any additional fee becoming due, unless the proposed
modifications cause an increase in the design population
served by the sewer specified in the permit application
before the modifications or the modifications cause a change
in the applicable fee category stated in subsection (c). If
the modifications cause such an increase or change the fee
category and the increase results in additional fees being
due under subsection (c), the applicant shall submit the
additional fee to the Agency with the proposed modifications.
(e) No fee shall be due under this Section from:
(1) any department, agency or unit of State
government for installing or extending a sewer;
(2) any unit of local government with which the
Agency has entered into a written delegation agreement
under Section 4 which allows such unit to issue
construction permits under this Title, or regulations
adopted hereunder, for installing or extending a sewer;
or
(3) any unit of local government or school district
for installing or extending a sewer where both of the
following conditions are met:
(i) the cost of the installation or extension
is paid wholly from monies of the unit of local
government or school district, State grants or
loans, federal grants or loans, or any combination
thereof; and
(ii) the unit of local government or school
district is not given monies, reimbursed or paid,
either in whole or in part, by another person
(except for State grants or loans or federal grants
or loans) for the installation or extension.
(f) The Agency may establish procedures relating to the
collection of fees under this Section. The Agency shall not
refund any fee paid to it under this Section.
Notwithstanding the provisions of any rule adopted before
July 1, 2003 concerning fees under this Section, the Agency
shall assess and collect the fees imposed under subdivision
(a)(2) of this Section and the increases in the fees imposed
under subdivision (a)(1) of this Section beginning on July 1,
2003, for all completed applications received on or after
that date.
(g) Notwithstanding any other provision of this Act, the
Agency shall, not later than 45 days following the receipt of
both an application for a construction permit and the fee
required by this Section, either approve that application and
issue a permit or tender to the applicant a written statement
setting forth with specificity the reasons for the
disapproval of the application and denial of a permit. If
the Agency takes no final action within 45 days after the
filing of the application for a permit, the applicant may
deem the permit issued.
(h) For purposes of this Section:
"Toxic pollutants" means those pollutants defined in
Section 502(13) of the federal Clean Water Act and
regulations adopted pursuant to that Act.
"Industrial" refers to those industrial users referenced
in Section 502(13) of the federal Clean Water Act and
regulations adopted pursuant to that Act.
"Pretreatment" means the reduction of the amount of
pollutants, the elimination of pollutants, or the alteration
of the nature of pollutant properties in wastewater prior to
or in lieu of discharging or otherwise introducing those
pollutants into a publicly owned treatment works or publicly
regulated treatment works.
(Source: P.A. 87-843; 88-488.)
(415 ILCS 5/12.5 new)
Sec. 12.5. NPDES discharge fees; sludge permit fees.
(a) Beginning July 1, 2003, the Agency shall assess and
collect annual fees (i) in the amounts set forth in
subsection (e) for all discharges that require an NPDES
permit under subsection (f) of Section 12, from each person
holding an NPDES permit authorizing those discharges
(including a person who continues to discharge under an
expired permit pending renewal), and (ii) in the amounts set
forth in subsection (f) of this Section for all activities
that require a permit under subsection (b) of Section 12,
from each person holding a domestic sewage sludge generator
or user permit.
Each person subject to this Section must remit the
applicable annual fee to the Agency in accordance with the
requirements set forth in this Section and any rules adopted
pursuant to this Section.
(b) Within 30 days after the effective date of this
Section, and by May 31 of each year thereafter, the Agency
shall send a fee notice by mail to each existing permittee
subject to a fee under this Section at his or her address of
record. The notice shall state the amount of the applicable
annual fee and the date by which payment is required.
Except as provided in subsection (c) with respect to
initial fees under new permits and certain modifications of
existing permits, fees payable under this Section for the 12
months beginning July 1, 2003 are due by the date specified
in the fee notice, which shall be no less than 30 days after
the date the fee notice is mailed by the Agency, and fees
payable under this Section for subsequent years shall be due
on July 1 or as otherwise required in any rules that may be
adopted pursuant to this Section.
(c) The initial annual fee for discharges under a new
individual NPDES permit or for activity under a new
individual sludge generator or sludge user permit must be
remitted to the Agency prior to the issuance of the permit.
The Agency shall provide notice of the amount of the fee to
the applicant during its review of the application. In the
case of a new individual NPDES or sludge permit issued during
the months of January through June, the Agency may prorate
the initial annual fee payable under this Section.
The initial annual fee for discharges or other activity
under a general NPDES permit must be remitted to the Agency
as part of the application for coverage under that general
permit.
If a requested modification to an existing NPDES permit
causes a change in the applicable fee categories under
subsection (e) that results in an increase in the required
fee, the permittee must pay to the Agency the amount of the
increase, prorated for the number of months remaining before
the next July 1, before the modification is granted.
(d) Failure to submit the fee required under this
Section by the due date constitutes a violation of this
Section. Late payments shall incur an interest penalty,
calculated at the rate in effect from time to time for tax
delinquencies under subsection (a) of Section 1003 of the
Illinois Income Tax Act, from the date the fee is due until
the date the fee payment is received by the Agency.
(e) The annual fees applicable to discharges under NPDES
permits are as follows:
(1) For NPDES permits for publicly owned treatment
works, other facilities for which the wastewater being
treated and discharged is primarily domestic sewage, and
wastewater discharges from the operation of public water
supply treatment facilities, the fee is:
(i) $1,500 for facilities with a Design
Average Flow rate of less than 100,000 gallons per
day;
(ii) $5,000 for facilities with a Design
Average Flow rate of at least 100,000 gallons per
day but less than 500,000 gallons per day;
(iii) $7,500 for facilities with a Design
Average Flow rate of at least 500,000 gallons per
day but less than 1,000,000 gallons per day;
(iv) $15,000 for facilities with a Design
Average Flow rate of at least 1,000,000 gallons per
day but less than 5,000,000 gallons per day;
(v) $30,000 for facilities with a Design
Average Flow rate of at least 5,000,000 gallons per
day but less than 10,000,000 gallons per day; and
(vi) $50,000 for facilities with a Design
Average Flow rate of 10,000,000 gallons per day or
more.
(2) For NPDES permits for treatment works or sewer
collection systems that include combined sewer overflow
outfalls, the fee is:
(i) $1,000 for systems serving a tributary
population of 10,000 or less;
(ii) $5,000 for systems serving a tributary
population that is greater than 10,000 but not more
than 25,000; and
(iii) $20,000 for systems serving a tributary
population that is greater than 25,000.
The fee amounts in this subdivision (e)(2) are in
addition to the fees stated in subdivision (e)(1) when
the combined sewer overflow outfall is contained within a
permit subject to subsection (e)(1) fees.
(3) For NPDES permits for mines producing coal, the
fee is $5,000.
(4) For NPDES permits for mines other than mines
producing coal, the fee is $5,000.
(5) For NPDES permits for industrial activity where
toxic substances are not regulated, other than permits
covered under subdivision (e)(3) or (e)(4), the fee is:
(i) $1,000 for a facility with a Design
Average Flow rate that is not more than 10,000
gallons per day;
(ii) $2,500 for a facility with a Design
Average Flow rate that is more than 10,000 gallons
per day but not more than 100,000 gallons per day;
and
(iii) $10,000 for a facility with a Design
Average Flow rate that is more than 100,000 gallons
per day.
(6) For NPDES permits for industrial activity where
toxic substances are regulated, other than permits
covered under subdivision (e)(3) or (e)(4), the fee is:
(i) $15,000 for a facility with a Design
Average Flow rate that is not more than 250,000
gallons per day; and
(ii) $20,000 for a facility with a Design
Average Flow rate that is more than 250,000 gallons
per day.
(7) For NPDES permits for industrial activity
classified by USEPA as a major discharge, other than
permits covered under subdivision (e)(3) or (e)(4), the
fee is:
(i) $30,000 for a facility where toxic
substances are not regulated; and
(ii) $50,000 for a facility where toxic
substances are regulated.
(8) For NPDES permits for municipal separate storm
sewer systems, the fee is $1,000.
(9) For NPDES permits for construction site or
industrial storm water, the fee is $500.
(f) The annual fee for activities under a permit that
authorizes applying sludge on land is $2,500 for a sludge
generator permit and $5,000 for a sludge user permit.
(g) More than one of the annual fees specified in
subsections (e) and (f) may be applicable to a permit holder.
These fees are in addition to any other fees required under
this Act.
(h) The fees imposed under this Section do not apply to
the State or any department or agency of the State, nor to
any school district.
(i) The Agency may adopt rules to administer the fee
program established in this Section. The Agency may include
provisions pertaining to invoices, notice of late payment,
and disputes concerning the amount or timeliness of payment.
The Agency may set forth procedures and criteria for the
acceptance of payments. The absence of such rules does not
affect the duty of the Agency to immediately begin the
assessment and collection of fees under this Section.
(j) All fees and interest penalties collected by the
Agency under this Section shall be deposited into the
Illinois Clean Water Fund, which is hereby created as a
special fund in the State treasury. Gifts, supplemental
environmental project funds, and grants may be deposited into
the Fund. Investment earnings on moneys held in the Fund
shall be credited to the Fund.
Subject to appropriation, the moneys in the Fund shall be
used by the Agency to carry out the Agency's clean water
activities.
(k) Fees paid to the Agency under this Section are not
refundable.
(415 ILCS 5/12.6 new)
Sec. 12.6. Certification fees.
(a) Beginning July 1, 2003, the Agency shall collect a
fee in the amount set forth in subsection (b) from each
applicant for a state water quality certification required by
Section 401 of the federal Clean Water Act prior to a federal
authorization pursuant to Section 404 of that Act; except
that the fee does not apply to the State or any department or
agency of the State, nor to any school district.
(b) The amount of the fee for a State water quality
certification is $350 or 1% of the gross value of the
proposed project, whichever is greater, but not to exceed
$10,000.
(c) Each applicant seeking a federal authorization of an
action requiring a Section 401 state water quality
certification by the Agency shall submit the required fee
with the application. The Agency shall deny an application
for which a fee is required under this Section, if the
application does not contain the appropriate fee.
(d) The Agency may establish procedures relating to the
collection of fees under this Section. Notwithstanding the
adoption of any rules establishing such procedures, the
Agency may begin collecting fees under this Section on July
1, 2003 for all complete applications received on or after
that date.
All fees collected by the Agency under this Section shall
be deposited into the Illinois Clean Water Fund. Fees paid
under this Section are not refundable.
(415 ILCS 5/16.1) (from Ch. 111 1/2, par. 1016.1)
Sec. 16.1. Permit fees.
(a) Beginning January 1, 1990, Except as provided in
subsection (f), the Agency shall collect a fee in the amount
set forth in subsection (d) from: (1) each applicant for a
construction permit under this Title, or regulations adopted
hereunder, to install or extend water main; and (2) each
person who submits as-built plans under this Title, or
regulations adopted hereunder, to install or extend water
main.
(b) Except as provided in subsection (c), each applicant
or person required to pay a fee under this Section shall
submit the fee to the Agency along with the permit
application or as-built plans. The Agency shall deny any
construction permit application for which a fee is required
under this Section that does not contain the appropriate fee.
The Agency shall not approve any as-built plans for which a
fee is required under this Section that do not contain the
appropriate fee.
(c) Each applicant for an emergency construction permit
under this Title, or regulations adopted hereunder, to
install or extend a water main shall submit the appropriate
fee to the Agency within 10 calendar days from the date of
issuance of the emergency construction permit.
(d) The amount of the fee is as follows:
(1) $240 $120 if the construction permit
application is to install or extend water main that is
more than 200 feet, but not more than 1,000 feet in
length;
(2) $720 $360 if the construction permit
application is to install or extend water main that is
more than 1,000 feet but not more than 5,000 feet in
length;
(3) $1200 $600 if the construction permit
application is to install or extend water main that is
more than 5,000 feet in length.
(e) Prior to a final Agency decision on a permit
application for which a fee has been paid under this Section,
the applicant may propose modifications to the application in
accordance with this Act and regulations adopted hereunder
without any additional fee becoming due unless the proposed
modifications cause the length of water main to increase
beyond the length specified in the permit application before
the modifications. If the modifications cause such an
increase and the increase results in additional fees being
due under subsection (d), the applicant shall submit the
additional fee to the Agency with the proposed modifications.
(f) No fee shall be due under this Section from (1) any
department, agency or unit of State government for installing
or extending a water main; (2) any unit of local government
with which the Agency has entered into a written delegation
agreement under Section 4 of this Act which allows such unit
to issue construction permits under this Title, or
regulations adopted hereunder, for installing or extending a
water main; or (3) any unit of local government or school
district for installing or extending a water main where both
of the following conditions are met: (i) the cost of the
installation or extension is paid wholly from monies of the
unit of local government or school district, State grants or
loans, federal grants or loans, or any combination thereof;
and (ii) the unit of local government or school district is
not given monies, reimbursed or paid, either in whole or in
part, by another person (except for State grants or loans or
federal grants or loans) for the installation or extension.
(g) The Agency may establish procedures relating to the
collection of fees under this Section. The Agency shall not
refund any fee paid to it under this Section.
(h) For the purposes of this Section, the term "water
main" means any pipe that is to be used for the purpose of
distributing potable water which serves or is accessible to
more than one property, dwelling or rental unit, and that is
exterior to buildings.
(i) Notwithstanding any other provision of this Act, the
Agency shall, not later than 45 days following the receipt of
both an application for a construction permit and the fee
required by this Section, either approve that application and
issue a permit or tender to the applicant a written statement
setting forth with specificity the reasons for the
disapproval of the application and denial of a permit. If
there is no final action by the Agency within 45 days after
the filing of the application for a permit, the applicant may
deem the permit issued.
(Source: P.A. 86-670; 87-843.)
(415 ILCS 5/22.8) (from Ch. 111 1/2, par. 1022.8)
Sec. 22.8. Environmental Protection Permit and
Inspection Fund.
(a) There is hereby created in the State Treasury a
special fund to be known as the Environmental Protection
Permit and Inspection Fund. All fees collected by the Agency
pursuant to this Section, Section 9.6, 12.2, 16.1, 22.2
(j)(6)(E)(v)(IV), 56.4, 56.5, 56.6, and subsection (f) of
Section 5 of this Act or pursuant to Section 22 of the Public
Water Supply Operations Act and funds collected under
subsection (b.5) of Section 42 of this Act shall be deposited
into the Fund. In addition to any monies appropriated from
the General Revenue Fund, monies in the Fund shall be
appropriated by the General Assembly to the Agency in amounts
deemed necessary for manifest, permit, and inspection
activities and for processing requests under Section 22.2
(j)(6)(E)(v)(IV).
The General Assembly may appropriate monies in the Fund
deemed necessary for Board regulatory and adjudicatory
proceedings.
(b) On and after January 1, 1989, The Agency shall
collect from the owner or operator of any of the following
types of hazardous waste disposal sites or management
facilities which require a RCRA permit under subsection (f)
of Section 21 of this Act, or a UIC permit under subsection
(g) of Section 12 of this Act, an annual fee in the amount
of:
(1) $35,000 ($70,000 beginning in 2004) for a
hazardous waste disposal site receiving hazardous waste
if the hazardous waste disposal site is located off the
site where such waste was produced;
(2) $9,000 ($18,000 beginning in 2004) for a
hazardous waste disposal site receiving hazardous waste
if the hazardous waste disposal site is located on the
site where such waste was produced;
(3) $7,000 ($14,000 beginning in 2004) for a
hazardous waste disposal site receiving hazardous waste
if the hazardous waste disposal site is an underground
injection well;
(4) $2,000 ($4,000 beginning in 2004) for a
hazardous waste management facility treating hazardous
waste by incineration;
(5) $1,000 ($2,000 beginning in 2004) for a
hazardous waste management facility treating hazardous
waste by a method, technique or process other than
incineration;
(6) $1,000 ($2,000 beginning in 2004) for a
hazardous waste management facility storing hazardous
waste in a surface impoundment or pile; or
(7) $250 ($500 beginning in 2004) for a hazardous
waste management facility storing hazardous waste other
than in a surface impoundment or pile; and.
(8) Beginning in 2004, $500 for a large quantity
hazardous waste generator required to submit an annual or
biennial report for hazardous waste generation.
(c) Where two or more operational units are located
within a single hazardous waste disposal site, the Agency
shall collect from the owner or operator of such site an
annual fee equal to the highest fee imposed by subsection (b)
of this Section upon any single operational unit within the
site.
(d) The fee imposed upon a hazardous waste disposal site
under this Section shall be the exclusive permit and
inspection fee applicable to hazardous waste disposal at such
site, provided that nothing in this Section shall be
construed to diminish or otherwise affect any fee imposed
upon the owner or operator of a hazardous waste disposal site
by Section 22.2.
(e) The Agency shall establish procedures, no later than
December 1, 1984, relating to the collection of the hazardous
waste disposal site fees authorized by this Section. Such
procedures shall include, but not be limited to the time and
manner of payment of fees to the Agency, which shall be
quarterly, payable at the beginning of each quarter for
hazardous waste disposal site fees. Annual fees required
under paragraph (7) of subsection (b) of this Section shall
accompany the annual report required by Board regulations for
the calendar year for which the report applies.
(f) For purposes of this Section, a hazardous waste
disposal site consists of one or more of the following
operational units:
(1) a landfill receiving hazardous waste for
disposal;
(2) a waste pile or surface impoundment, receiving
hazardous waste, in which residues which exhibit any of
the characteristics of hazardous waste pursuant to Board
regulations are reasonably expected to remain after
closure;
(3) a land treatment facility receiving hazardous
waste; or
(4) a well injecting hazardous waste.
(g) The Agency shall assess a fee for each manifest
provided by the Agency. For manifests provided on or after
January 1, 1989 but before July 1, 2003, the fee shall be $1
per manifest. For manifests provided on or after July 1,
2003, the fee shall be $3 per manifest.
(g) On and after January 1, 1989, the Agency shall
assess a fee of $1.00 for each manifest provided by the
Agency, except that the Agency shall furnish up to 20
manifests requested by any generator at no charge and no
generator shall be required to pay more than $500 per year in
such manifest fees.
(Source: P.A. 89-79, eff. 6-30-95; 90-372, eff. 7-1-98.)
(415 ILCS 5/22.15) (from Ch. 111 1/2, par. 1022.15)
Sec. 22.15. Solid Waste Management Fund; fees.
(a) There is hereby created within the State Treasury a
special fund to be known as the "Solid Waste Management
Fund", to be constituted from the fees collected by the State
pursuant to this Section and from repayments of loans made
from the Fund for solid waste projects. Moneys received by
the Department of Commerce and Community Affairs in repayment
of loans made pursuant to the Illinois Solid Waste Management
Act shall be deposited into the Solid Waste Management
Revolving Loan Fund.
(b) On and after January 1, 1987, The Agency shall
assess and collect a fee in the amount set forth herein from
the owner or operator of each sanitary landfill permitted or
required to be permitted by the Agency to dispose of solid
waste if the sanitary landfill is located off the site where
such waste was produced and if such sanitary landfill is
owned, controlled, and operated by a person other than the
generator of such waste. The Agency shall deposit all fees
collected into the Solid Waste Management Fund. If a site is
contiguous to one or more landfills owned or operated by the
same person, the volumes permanently disposed of by each
landfill shall be combined for purposes of determining the
fee under this subsection.
(1) If more than 150,000 cubic yards of
non-hazardous solid waste is permanently disposed of at a
site in a calendar year, the owner or operator shall
either pay a fee of 95 cents 45 cents per cubic yard or,
alternatively, the owner or operator may weigh the
quantity of the solid waste permanently disposed of with
a device for which certification has been obtained under
the Weights and Measures Act and pay a fee of $2.00 95
cents per ton of solid waste permanently disposed of. In
no case shall the fee collected or paid by the owner or
operator under this paragraph exceed $1.55 $1.05 per
cubic yard or $3.27 $2.22 per ton.
(2) If more than 100,000 cubic yards but not more
than 150,000 cubic yards of non-hazardous waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $52,630 $25,000.
(3) If more than 50,000 cubic yards but not more
than 100,000 cubic yards of non-hazardous solid waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $23,790 $11,300.
(4) If more than 10,000 cubic yards but not more
than 50,000 cubic yards of non-hazardous solid waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $7,260 $3,450.
(5) If not more than 10,000 cubic yards of
non-hazardous solid waste is permanently disposed of at a
site in a calendar year, the owner or operator shall pay
a fee of $1050 $500.
(c) (Blank.)
(d) The Agency shall establish rules relating to the
collection of the fees authorized by this Section. Such
rules shall include, but not be limited to:
(1) necessary records identifying the quantities of
solid waste received or disposed;
(2) the form and submission of reports to accompany
the payment of fees to the Agency;
(3) the time and manner of payment of fees to the
Agency, which payments shall not be more often than
quarterly; and
(4) procedures setting forth criteria establishing
when an owner or operator may measure by weight or volume
during any given quarter or other fee payment period.
(e) Pursuant to appropriation, all monies in the Solid
Waste Management Fund shall be used by the Agency and the
Department of Commerce and Community Affairs for the purposes
set forth in this Section and in the Illinois Solid Waste
Management Act, including for the costs of fee collection and
administration.
(f) The Agency is authorized to enter into such
agreements and to promulgate such rules as are necessary to
carry out its duties under this Section and the Illinois
Solid Waste Management Act.
(g) On the first day of January, April, July, and
October of each year, beginning on July 1, 1996, the State
Comptroller and Treasurer shall transfer $500,000 from the
Solid Waste Management Fund to the Hazardous Waste Fund.
Moneys transferred under this subsection (g) shall be used
only for the purposes set forth in item (1) of subsection (d)
of Section 22.2.
(h) The Agency is authorized to provide financial
assistance to units of local government for the performance
of inspecting, investigating and enforcement activities
pursuant to Section 4(r) at nonhazardous solid waste disposal
sites.
(i) The Agency is authorized to support the operations
of an industrial materials exchange service, and to conduct
household waste collection and disposal programs.
(j) A unit of local government, as defined in the Local
Solid Waste Disposal Act, in which a solid waste disposal
facility is located may establish a fee, tax, or surcharge
with regard to the permanent disposal of solid waste. All
fees, taxes, and surcharges collected under this subsection
shall be utilized for solid waste management purposes,
including long-term monitoring and maintenance of landfills,
planning, implementation, inspection, enforcement and other
activities consistent with the Solid Waste Management Act and
the Local Solid Waste Disposal Act, or for any other
environment-related purpose, including but not limited to an
environment-related public works project, but not for the
construction of a new pollution control facility other than a
household hazardous waste facility. However, the total fee,
tax or surcharge imposed by all units of local government
under this subsection (j) upon the solid waste disposal
facility shall not exceed:
(1) 60¢ per cubic yard if more than 150,000 cubic
yards of non-hazardous solid waste is permanently
disposed of at the site in a calendar year, unless the
owner or operator weighs the quantity of the solid waste
received with a device for which certification has been
obtained under the Weights and Measures Act, in which
case the fee shall not exceed $1.27 per ton of solid
waste permanently disposed of.
(2) $33,350 if more than 100,000 cubic yards, but
not more than 150,000 cubic yards, of non-hazardous waste
is permanently disposed of at the site in a calendar
year.
(3) $15,500 if more than 50,000 cubic yards, but
not more than 100,000 cubic yards, of non-hazardous solid
waste is permanently disposed of at the site in a
calendar year.
(4) $4,650 if more than 10,000 cubic yards, but not
more than 50,000 cubic yards, of non-hazardous solid
waste is permanently disposed of at the site in a
calendar year.
(5) $$650 if not more than 10,000 cubic yards of
non-hazardous solid waste is permanently disposed of at
the site in a calendar year.
The corporate authorities of the unit of local government
may use proceeds from the fee, tax, or surcharge to reimburse
a highway commissioner whose road district lies wholly or
partially within the corporate limits of the unit of local
government for expenses incurred in the removal of
nonhazardous, nonfluid municipal waste that has been dumped
on public property in violation of a State law or local
ordinance.
A county or Municipal Joint Action Agency that imposes a
fee, tax, or surcharge under this subsection may use the
proceeds thereof to reimburse a municipality that lies wholly
or partially within its boundaries for expenses incurred in
the removal of nonhazardous, nonfluid municipal waste that
has been dumped on public property in violation of a State
law or local ordinance.
If the fees are to be used to conduct a local sanitary
landfill inspection or enforcement program, the unit of local
government must enter into a written delegation agreement
with the Agency pursuant to subsection (r) of Section 4. The
unit of local government and the Agency shall enter into such
a written delegation agreement within 60 days after the
establishment of such fees. At least annually, the Agency
shall conduct an audit of the expenditures made by units of
local government from the funds granted by the Agency to the
units of local government for purposes of local sanitary
landfill inspection and enforcement programs, to ensure that
the funds have been expended for the prescribed purposes
under the grant.
The fees, taxes or surcharges collected under this
subsection (j) shall be placed by the unit of local
government in a separate fund, and the interest received on
the moneys in the fund shall be credited to the fund. The
monies in the fund may be accumulated over a period of years
to be expended in accordance with this subsection.
A unit of local government, as defined in the Local Solid
Waste Disposal Act, shall prepare and distribute to the
Agency, in April of each year, a report that details spending
plans for monies collected in accordance with this
subsection. The report will at a minimum include the
following:
(1) The total monies collected pursuant to this
subsection.
(2) The most current balance of monies collected
pursuant to this subsection.
(3) An itemized accounting of all monies expended
for the previous year pursuant to this subsection.
(4) An estimation of monies to be collected for the
following 3 years pursuant to this subsection.
(5) A narrative detailing the general direction and
scope of future expenditures for one, 2 and 3 years.
The exemptions granted under Sections 22.16 and 22.16a,
and under subsections (c) and (k) of this Section, shall be
applicable to any fee, tax or surcharge imposed under this
subsection (j); except that the fee, tax or surcharge
authorized to be imposed under this subsection (j) may be
made applicable by a unit of local government to the
permanent disposal of solid waste after December 31, 1986,
under any contract lawfully executed before June 1, 1986
under which more than 150,000 cubic yards (or 50,000 tons) of
solid waste is to be permanently disposed of, even though the
waste is exempt from the fee imposed by the State under
subsection (b) of this Section pursuant to an exemption
granted under Section 22.16.
(k) In accordance with the findings and purposes of the
Illinois Solid Waste Management Act, beginning January 1,
1989 the fee under subsection (b) and the fee, tax or
surcharge under subsection (j) shall not apply to:
(1) Waste which is hazardous waste; or
(2) Waste which is pollution control waste; or
(3) Waste from recycling, reclamation or reuse
processes which have been approved by the Agency as being
designed to remove any contaminant from wastes so as to
render such wastes reusable, provided that the process
renders at least 50% of the waste reusable; or
(4) Non-hazardous solid waste that is received at a
sanitary landfill and composted or recycled through a
process permitted by the Agency; or
(5) Any landfill which is permitted by the Agency
to receive only demolition or construction debris or
landscape waste.
(Source: P.A. 92-574, eff. 6-26-02.)
(415 ILCS 5/22.44)
Sec. 22.44. Subtitle D management fees.
(a) There is created within the State treasury a special
fund to be known as the "Subtitle D Management Fund"
constituted from the fees collected by the State under this
Section.
(b) On and after January 1, 1994, The Agency shall
assess and collect a fee in the amount set forth in this
subsection from the owner or operator of each sanitary
landfill permitted or required to be permitted by the Agency
to dispose of solid waste if the sanitary landfill is located
off the site where the waste was produced and if the sanitary
landfill is owned, controlled, and operated by a person other
than the generator of the waste. The Agency shall deposit
all fees collected under this subsection into the Subtitle D
Management Fund. If a site is contiguous to one or more
landfills owned or operated by the same person, the volumes
permanently disposed of by each landfill shall be combined
for purposes of determining the fee under this subsection.
(1) If more than 150,000 cubic yards of
non-hazardous solid waste is permanently disposed of at a
site in a calendar year, the owner or operator shall
either pay a fee of 10.1 cents 5.5 cents per cubic yard
or, alternatively, the owner or operator may weigh the
quantity of the solid waste permanently disposed of with
a device for which certification has been obtained under
the Weights and Measures Act and pay a fee of 22 cents 12
cents per ton of waste permanently disposed of.
(2) If more than 100,000 cubic yards, but not more
than 150,000 cubic yards, of non-hazardous waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $7,020 $3,825.
(3) If more than 50,000 cubic yards, but not more
than 100,000 cubic yards, of non-hazardous solid waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $3,120 $1,700.
(4) If more than 10,000 cubic yards, but not more
than 50,000 cubic yards, of non-hazardous solid waste is
permanently disposed of at a site in a calendar year, the
owner or operator shall pay a fee of $975 $530.
(5) If not more than 10,000 cubic yards of
non-hazardous solid waste is permanently disposed of at a
site in a calendar year, the owner or operator shall pay
a fee of $210 $110.
(c) The fee under subsection (b) shall not apply to any
of the following:
(1) Hazardous waste.
(2) Pollution control waste.
(3) Waste from recycling, reclamation, or reuse
processes that have been approved by the Agency as being
designed to remove any contaminant from wastes so as to
render the wastes reusable, provided that the process
renders at least 50% of the waste reusable.
(4) Non-hazardous solid waste that is received at a
sanitary landfill and composted or recycled through a
process permitted by the Agency.
(5) Any landfill that is permitted by the Agency to
receive only demolition or construction debris or
landscape waste.
(d) The Agency shall establish rules relating to the
collection of the fees authorized by this Section. These
rules shall include, but not be limited to the following:
(1) Necessary records identifying the quantities of
solid waste received or disposed.
(2) The form and submission of reports to accompany
the payment of fees to the Agency.
(3) The time and manner of payment of fees to the
Agency, which payments shall not be more often than
quarterly.
(4) Procedures setting forth criteria establishing
when an owner or operator may measure by weight or volume
during any given quarter or other fee payment period.
(e) Fees collected under this Section shall be in
addition to any other fees collected under any other Section.
(f) The Agency shall not refund any fee paid to it under
this Section.
(g) Pursuant to appropriation, all moneys in the
Subtitle D Management Fund shall be used by the Agency to
administer the United States Environmental Protection
Agency's Subtitle D Program provided in Sections 4004 and
4010 of the Resource Conservation and Recovery Act of 1976
(P.L. 94-580) as it relates to a municipal solid waste
landfill program in Illinois and to fund a delegation of
inspecting, investigating, and enforcement functions, within
the municipality only, pursuant to subsection (r) of Section
4 of this Act to a municipality having a population of more
than 1,000,000 inhabitants. The Agency shall execute a
delegation agreement pursuant to subsection (r) of Section 4
of this Act with a municipality having a population of more
than 1,000,000 inhabitants within 90 days of September 13,
1993 and shall on an annual basis distribute from the
Subtitle D Management Fund to that municipality no less than
$150,000.
(Source: P.A. 92-574, eff. 6-26-02.)
(415 ILCS 5/39.5) (from Ch. 111 1/2, par. 1039.5)
Sec. 39.5. Clean Air Act Permit Program.
1. Definitions.
For purposes of this Section:
"Administrative permit amendment" means a permit revision
subject to subsection 13 of this Section.
"Affected source for acid deposition" means a source that
includes one or more affected units under Title IV of the
Clean Air Act.
"Affected States" for purposes of formal distribution of
a draft CAAPP permit to other States for comments prior to
issuance, means all States:
(1) Whose air quality may be affected by the source
covered by the draft permit and that are contiguous to
Illinois; or
(2) That are within 50 miles of the source.
"Affected unit for acid deposition" shall have the
meaning given to the term "affected unit" in the regulations
promulgated under Title IV of the Clean Air Act.
"Applicable Clean Air Act requirement" means all of the
following as they apply to emissions units in a source
(including regulations that have been promulgated or approved
by USEPA pursuant to the Clean Air Act which directly impose
requirements upon a source and other such federal
requirements which have been adopted by the Board. These may
include requirements and regulations which have future
effective compliance dates. Requirements and regulations
will be exempt if USEPA determines that such requirements
need not be contained in a Title V permit):
(1) Any standard or other requirement provided for
in the applicable state implementation plan approved or
promulgated by USEPA under Title I of the Clean Air Act
that implement the relevant requirements of the Clean Air
Act, including any revisions to the state Implementation
Plan promulgated in 40 CFR Part 52, Subparts A and O and
other subparts applicable to Illinois. For purposes of
this subsection (1) of this definition, "any standard or
other requirement" shall mean only such standards or
requirements directly enforceable against an individual
source under the Clean Air Act.
(2)(i) Any term or condition of any preconstruction
permits issued pursuant to regulations approved or
promulgated by USEPA under Title I of the Clean Air
Act, including Part C or D of the Clean Air Act.
(ii) Any term or condition as required
pursuant to Section 39.5 of any federally
enforceable State operating permit issued pursuant
to regulations approved or promulgated by USEPA
under Title I of the Clean Air Act, including Part C
or D of the Clean Air Act.
(3) Any standard or other requirement under Section
111 of the Clean Air Act, including Section 111(d).
(4) Any standard or other requirement under Section
112 of the Clean Air Act, including any requirement
concerning accident prevention under Section 112(r)(7) of
the Clean Air Act.
(5) Any standard or other requirement of the acid
rain program under Title IV of the Clean Air Act or the
regulations promulgated thereunder.
(6) Any requirements established pursuant to
Section 504(b) or Section 114(a)(3) of the Clean Air Act.
(7) Any standard or other requirement governing
solid waste incineration, under Section 129 of the Clean
Air Act.
(8) Any standard or other requirement for consumer
and commercial products, under Section 183(e) of the
Clean Air Act.
(9) Any standard or other requirement for tank
vessels, under Section 183(f) of the Clean Air Act.
(10) Any standard or other requirement of the
program to control air pollution from Outer Continental
Shelf sources, under Section 328 of the Clean Air Act.
(11) Any standard or other requirement of the
regulations promulgated to protect stratospheric ozone
under Title VI of the Clean Air Act, unless USEPA has
determined that such requirements need not be contained
in a Title V permit.
(12) Any national ambient air quality standard or
increment or visibility requirement under Part C of Title
I of the Clean Air Act, but only as it would apply to
temporary sources permitted pursuant to Section 504(e) of
the Clean Air Act.
"Applicable requirement" means all applicable Clean Air
Act requirements and any other standard, limitation, or other
requirement contained in this Act or regulations promulgated
under this Act as applicable to sources of air contaminants
(including requirements that have future effective compliance
dates).
"CAAPP" means the Clean Air Act Permit Program, developed
pursuant to Title V of the Clean Air Act.
"CAAPP application" means an application for a CAAPP
permit.
"CAAPP Permit" or "permit" (unless the context suggests
otherwise) means any permit issued, renewed, amended,
modified or revised pursuant to Title V of the Clean Air Act.
"CAAPP source" means any source for which the owner or
operator is required to obtain a CAAPP permit pursuant to
subsection 2 of this Section.
"Clean Air Act" means the Clean Air Act, as now and
hereafter amended, 42 U.S.C. 7401, et seq.
"Designated representative" shall have the meaning given
to it in Section 402(26) of the Clean Air Act and the
regulations promulgated thereunder which states that the term
'designated representative' shall mean a responsible person
or official authorized by the owner or operator of a unit to
represent the owner or operator in all matters pertaining to
the holding, transfer, or disposition of allowances allocated
to a unit, and the submission of and compliance with permits,
permit applications, and compliance plans for the unit.
"Draft CAAPP permit" means the version of a CAAPP permit
for which public notice and an opportunity for public comment
and hearing is offered by the Agency.
"Effective date of the CAAPP" means the date that USEPA
approves Illinois' CAAPP.
"Emission unit" means any part or activity of a
stationary source that emits or has the potential to emit any
air pollutant. This term is not meant to alter or affect the
definition of the term "unit" for purposes of Title IV of the
Clean Air Act.
"Federally enforceable" means enforceable by USEPA.
"Final permit action" means the Agency's granting with
conditions, refusal to grant, renewal of, or revision of a
CAAPP permit, the Agency's determination of incompleteness of
a submitted CAAPP application, or the Agency's failure to act
on an application for a permit, permit renewal, or permit
revision within the time specified in paragraph 5(j),
subsection 13, or subsection 14 of this Section.
"General permit" means a permit issued to cover numerous
similar sources in accordance with subsection 11 of this
Section.
"Major source" means a source for which emissions of one
or more air pollutants meet the criteria for major status
pursuant to paragraph 2(c) of this Section.
"Maximum achievable control technology" or "MACT" means
the maximum degree of reductions in emissions deemed
achievable under Section 112 of the Clean Air Act.
"Owner or operator" means any person who owns, leases,
operates, controls, or supervises a stationary source.
"Permit modification" means a revision to a CAAPP permit
that cannot be accomplished under the provisions for
administrative permit amendments under subsection 13 of this
Section.
"Permit revision" means a permit modification or
administrative permit amendment.
"Phase II" means the period of the national acid rain
program, established under Title IV of the Clean Air Act,
beginning January 1, 2000, and continuing thereafter.
"Phase II acid rain permit" means the portion of a CAAPP
permit issued, renewed, modified, or revised by the Agency
during Phase II for an affected source for acid deposition.
"Potential to emit" means the maximum capacity of a
stationary source to emit any air pollutant under its
physical and operational design. Any physical or operational
limitation on the capacity of a source to emit an air
pollutant, including air pollution control equipment and
restrictions on hours of operation or on the type or amount
of material combusted, stored, or processed, shall be treated
as part of its design if the limitation is enforceable by
USEPA. This definition does not alter or affect the use of
this term for any other purposes under the Clean Air Act, or
the term "capacity factor" as used in Title IV of the Clean
Air Act or the regulations promulgated thereunder.
"Preconstruction Permit" or "Construction Permit" means a
permit which is to be obtained prior to commencing or
beginning actual construction or modification of a source or
emissions unit.
"Proposed CAAPP permit" means the version of a CAAPP
permit that the Agency proposes to issue and forwards to
USEPA for review in compliance with applicable requirements
of the Act and regulations promulgated thereunder.
"Regulated air pollutant" means the following:
(1) Nitrogen oxides (NOx) or any volatile organic
compound.
(2) Any pollutant for which a national ambient air
quality standard has been promulgated.
(3) Any pollutant that is subject to any standard
promulgated under Section 111 of the Clean Air Act.
(4) Any Class I or II substance subject to a
standard promulgated under or established by Title VI of
the Clean Air Act.
(5) Any pollutant subject to a standard promulgated
under Section 112 or other requirements established under
Section 112 of the Clean Air Act, including Sections
112(g), (j) and (r).
(i) Any pollutant subject to requirements
under Section 112(j) of the Clean Air Act. Any
pollutant listed under Section 112(b) for which the
subject source would be major shall be considered to
be regulated 18 months after the date on which USEPA
was required to promulgate an applicable standard
pursuant to Section 112(e) of the Clean Air Act, if
USEPA fails to promulgate such standard.
(ii) Any pollutant for which the requirements
of Section 112(g)(2) of the Clean Air Act have been
met, but only with respect to the individual source
subject to Section 112(g)(2) requirement.
"Renewal" means the process by which a permit is reissued
at the end of its term.
"Responsible official" means one of the following:
(1) For a corporation: a president, secretary,
treasurer, or vice-president of the corporation in charge
of a principal business function, or any other person who
performs similar policy or decision-making functions for
the corporation, or a duly authorized representative of
such person if the representative is responsible for the
overall operation of one or more manufacturing,
production, or operating facilities applying for or
subject to a permit and either (i) the facilities employ
more than 250 persons or have gross annual sales or
expenditures exceeding $25 million (in second quarter
1980 dollars), or (ii) the delegation of authority to
such representative is approved in advance by the Agency.
(2) For a partnership or sole proprietorship: a
general partner or the proprietor, respectively, or in
the case of a partnership in which all of the partners
are corporations, a duly authorized representative of the
partnership if the representative is responsible for the
overall operation of one or more manufacturing,
production, or operating facilities applying for or
subject to a permit and either (i) the facilities employ
more than 250 persons or have gross annual sales or
expenditures exceeding $25 million (in second quarter
1980 dollars), or (ii) the delegation of authority to
such representative is approved in advance by the Agency.
(3) For a municipality, State, Federal, or other
public agency: either a principal executive officer or
ranking elected official. For the purposes of this part,
a principal executive officer of a Federal agency
includes the chief executive officer having
responsibility for the overall operations of a principal
geographic unit of the agency (e.g., a Regional
Administrator of USEPA).
(4) For affected sources for acid deposition:
(i) The designated representative shall be the
"responsible official" in so far as actions,
standards, requirements, or prohibitions under Title
IV of the Clean Air Act or the regulations
promulgated thereunder are concerned.
(ii) The designated representative may also be
the "responsible official" for any other purposes
with respect to air pollution control.
"Section 502(b)(10) changes" means changes that
contravene express permit terms. "Section 502(b)(10) changes"
do not include changes that would violate applicable
requirements or contravene federally enforceable permit terms
or conditions that are monitoring (including test methods),
recordkeeping, reporting, or compliance certification
requirements.
"Solid waste incineration unit" means a distinct
operating unit of any facility which combusts any solid waste
material from commercial or industrial establishments or the
general public (including single and multiple residences,
hotels, and motels). The term does not include incinerators
or other units required to have a permit under Section 3005
of the Solid Waste Disposal Act. The term also does not
include (A) materials recovery facilities (including primary
or secondary smelters) which combust waste for the primary
purpose of recovering metals, (B) qualifying small power
production facilities, as defined in Section 3(17)(C) of the
Federal Power Act (16 U.S.C. 769(17)(C)), or qualifying
cogeneration facilities, as defined in Section 3(18)(B) of
the Federal Power Act (16 U.S.C. 796(18)(B)), which burn
homogeneous waste (such as units which burn tires or used
oil, but not including refuse-derived fuel) for the
production of electric energy or in the case of qualifying
cogeneration facilities which burn homogeneous waste for the
production of electric energy and steam or forms of useful
energy (such as heat) which are used for industrial,
commercial, heating or cooling purposes, or (C) air curtain
incinerators provided that such incinerators only burn wood
wastes, yard waste and clean lumber and that such air curtain
incinerators comply with opacity limitations to be
established by the USEPA by rule.
"Source" means any stationary source (or any group of
stationary sources) that are located on one or more
contiguous or adjacent properties that are under common
control of the same person (or persons under common control)
and that belongs to a single major industrial grouping. For
the purposes of defining "source," a stationary source or
group of stationary sources shall be considered part of a
single major industrial grouping if all of the pollutant
emitting activities at such source or group of sources
located on contiguous or adjacent properties and under common
control belong to the same Major Group (i.e., all have the
same two-digit code) as described in the Standard Industrial
Classification Manual, 1987, or such pollutant emitting
activities at a stationary source (or group of stationary
sources) located on contiguous or adjacent properties and
under common control constitute a support facility. The
determination as to whether any group of stationary sources
are located on contiguous or adjacent properties, and/or are
under common control, and/or whether the pollutant emitting
activities at such group of stationary sources constitute a
support facility shall be made on a case by case basis.
"Stationary source" means any building, structure,
facility, or installation that emits or may emit any
regulated air pollutant or any pollutant listed under Section
112(b) of the Clean Air Act.
"Support facility" means any stationary source (or group
of stationary sources) that conveys, stores, or otherwise
assists to a significant extent in the production of a
principal product at another stationary source (or group of
stationary sources). A support facility shall be considered
to be part of the same source as the stationary source (or
group of stationary sources) that it supports regardless of
the 2-digit Standard Industrial Classification code for the
support facility.
"USEPA" means the Administrator of the United States
Environmental Protection Agency (USEPA) or a person
designated by the Administrator.
1.1. Exclusion From the CAAPP.
a. An owner or operator of a source which
determines that the source could be excluded from the
CAAPP may seek such exclusion prior to the date that the
CAAPP application for the source is due but in no case
later than 9 months after the effective date of the CAAPP
through the imposition of federally enforceable
conditions limiting the "potential to emit" of the source
to a level below the major source threshold for that
source as described in paragraph 2(c) of this Section,
within a State operating permit issued pursuant to
Section 39(a) of this Act. After such date, an exclusion
from the CAAPP may be sought under paragraph 3(c) of this
Section.
b. An owner or operator of a source seeking
exclusion from the CAAPP pursuant to paragraph (a) of
this subsection must submit a permit application
consistent with the existing State permit program which
specifically requests such exclusion through the
imposition of such federally enforceable conditions.
c. Upon such request, if the Agency determines that
the owner or operator of a source has met the
requirements for exclusion pursuant to paragraph (a) of
this subsection and other applicable requirements for
permit issuance under Section 39(a) of this Act, the
Agency shall issue a State operating permit for such
source under Section 39(a) of this Act, as amended, and
regulations promulgated thereunder with federally
enforceable conditions limiting the "potential to emit"
of the source to a level below the major source threshold
for that source as described in paragraph 2(c) of this
Section.
d. The Agency shall provide an owner or operator of
a source which may be excluded from the CAAPP pursuant to
this subsection with reasonable notice that the owner or
operator may seek such exclusion.
e. The Agency shall provide such sources with the
necessary permit application forms.
2. Applicability.
a. Sources subject to this Section shall include:
i. Any major source as defined in paragraph
(c) of this subsection.
ii. Any source subject to a standard or other
requirements promulgated under Section 111 (New
Source Performance Standards) or Section 112
(Hazardous Air Pollutants) of the Clean Air Act,
except that a source is not required to obtain a
permit solely because it is subject to regulations
or requirements under Section 112(r) of the Clean
Air Act.
iii. Any affected source for acid deposition,
as defined in subsection 1 of this Section.
iv. Any other source subject to this Section
under the Clean Air Act or regulations promulgated
thereunder, or applicable Board regulations.
b. Sources exempted from this Section shall
include:
i. All sources listed in paragraph (a) of this
subsection which are not major sources, affected
sources for acid deposition or solid waste
incineration units required to obtain a permit
pursuant to Section 129(e) of the Clean Air Act,
until the source is required to obtain a CAAPP
permit pursuant to the Clean Air Act or regulations
promulgated thereunder.
ii. Nonmajor sources subject to a standard or
other requirements subsequently promulgated by USEPA
under Section 111 or 112 of the Clean Air Act which
are determined by USEPA to be exempt at the time a
new standard is promulgated.
iii. All sources and source categories that
would be required to obtain a permit solely because
they are subject to Part 60, Subpart AAA - Standards
of Performance for New Residential Wood Heaters (40
CFR Part 60).
iv. All sources and source categories that
would be required to obtain a permit solely because
they are subject to Part 61, Subpart M - National
Emission Standard for Hazardous Air Pollutants for
Asbestos, Section 61.145 (40 CFR Part 61).
v. Any other source categories exempted by
USEPA regulations pursuant to Section 502(a) of the
Clean Air Act.
c. For purposes of this Section the term "major
source" means any source that is:
i. A major source under Section 112 of the
Clean Air Act, which is defined as:
A. For pollutants other than
radionuclides, any stationary source or group
of stationary sources located within a
contiguous area and under common control that
emits or has the potential to emit, in the
aggregate, 10 tons per year (tpy) or more of
any hazardous air pollutant which has been
listed pursuant to Section 112(b) of the Clean
Air Act, 25 tpy or more of any combination of
such hazardous air pollutants, or such lesser
quantity as USEPA may establish by rule.
Notwithstanding the preceding sentence,
emissions from any oil or gas exploration or
production well (with its associated equipment)
and emissions from any pipeline compressor or
pump station shall not be aggregated with
emissions from other similar units, whether or
not such units are in a contiguous area or
under common control, to determine whether such
stations are major sources.
B. For radionuclides, "major source"
shall have the meaning specified by the USEPA
by rule.
ii. A major stationary source of air
pollutants, as defined in Section 302 of the Clean
Air Act, that directly emits or has the potential to
emit, 100 tpy or more of any air pollutant
(including any major source of fugitive emissions of
any such pollutant, as determined by rule by USEPA).
For purposes of this subsection, "fugitive
emissions" means those emissions which could not
reasonably pass through a stack, chimney, vent, or
other functionally-equivalent opening. The fugitive
emissions of a stationary source shall not be
considered in determining whether it is a major
stationary source for the purposes of Section 302(j)
of the Clean Air Act, unless the source belongs to
one of the following categories of stationary
source:
A. Coal cleaning plants (with thermal
dryers).
B. Kraft pulp mills.
C. Portland cement plants.
D. Primary zinc smelters.
E. Iron and steel mills.
F. Primary aluminum ore reduction plants.
G. Primary copper smelters.
H. Municipal incinerators capable of
charging more than 250 tons of refuse per day.
I. Hydrofluoric, sulfuric, or nitric acid
plants.
J. Petroleum refineries.
K. Lime plants.
L. Phosphate rock processing plants.
M. Coke oven batteries.
N. Sulfur recovery plants.
O. Carbon black plants (furnace process).
P. Primary lead smelters.
Q. Fuel conversion plants.
R. Sintering plants.
S. Secondary metal production plants.
T. Chemical process plants.
U. Fossil-fuel boilers (or combination
thereof) totaling more than 250 million British
thermal units per hour heat input.
V. Petroleum storage and transfer units
with a total storage capacity exceeding 300,000
barrels.
W. Taconite ore processing plants.
X. Glass fiber processing plants.
Y. Charcoal production plants.
Z. Fossil fuel-fired steam electric
plants of more than 250 million British thermal
units per hour heat input.
AA. All other stationary source
categories regulated by a standard promulgated
under Section 111 or 112 of the Clean Air Act,
but only with respect to those air pollutants
that have been regulated for that category.
BB. Any other stationary source category
designated by USEPA by rule.
iii. A major stationary source as defined in
part D of Title I of the Clean Air Act including:
A. For ozone nonattainment areas, sources
with the potential to emit 100 tons or more per
year of volatile organic compounds or oxides of
nitrogen in areas classified as "marginal" or
"moderate", 50 tons or more per year in areas
classified as "serious", 25 tons or more per
year in areas classified as "severe", and 10
tons or more per year in areas classified as
"extreme"; except that the references in this
clause to 100, 50, 25, and 10 tons per year of
nitrogen oxides shall not apply with respect to
any source for which USEPA has made a finding,
under Section 182(f)(1) or (2) of the Clean Air
Act, that requirements otherwise applicable to
such source under Section 182(f) of the Clean
Air Act do not apply. Such sources shall
remain subject to the major source criteria of
paragraph 2(c)(ii) of this subsection.
B. For ozone transport regions
established pursuant to Section 184 of the
Clean Air Act, sources with the potential to
emit 50 tons or more per year of volatile
organic compounds (VOCs).
C. For carbon monoxide nonattainment
areas (1) that are classified as "serious", and
(2) in which stationary sources contribute
significantly to carbon monoxide levels as
determined under rules issued by USEPA, sources
with the potential to emit 50 tons or more per
year of carbon monoxide.
D. For particulate matter (PM-10)
nonattainment areas classified as "serious",
sources with the potential to emit 70 tons or
more per year of PM-10.
3. Agency Authority To Issue CAAPP Permits and Federally
Enforceable State Operating Permits.
a. The Agency shall issue CAAPP permits under this
Section consistent with the Clean Air Act and regulations
promulgated thereunder and this Act and regulations
promulgated thereunder.
b. The Agency shall issue CAAPP permits for fixed
terms of 5 years, except CAAPP permits issued for solid
waste incineration units combusting municipal waste which
shall be issued for fixed terms of 12 years and except
CAAPP permits for affected sources for acid deposition
which shall be issued for initial terms to expire on
December 31, 1999, and for fixed terms of 5 years
thereafter.
c. The Agency shall have the authority to issue a
State operating permit for a source under Section 39(a)
of this Act, as amended, and regulations promulgated
thereunder, which includes federally enforceable
conditions limiting the "potential to emit" of the source
to a level below the major source threshold for that
source as described in paragraph 2(c) of this Section,
thereby excluding the source from the CAAPP, when
requested by the applicant pursuant to paragraph 5(u) of
this Section. The public notice requirements of this
Section applicable to CAAPP permits shall also apply to
the initial issuance of permits under this paragraph.
d. For purposes of this Act, a permit issued by
USEPA under Section 505 of the Clean Air Act, as now and
hereafter amended, shall be deemed to be a permit issued
by the Agency pursuant to Section 39.5 of this Act.
4. Transition.
a. An owner or operator of a CAAPP source shall not
be required to renew an existing State operating permit
for any emission unit at such CAAPP source once a CAAPP
application timely submitted prior to expiration of the
State operating permit has been deemed complete. For
purposes other than permit renewal, the obligation upon
the owner or operator of a CAAPP source to obtain a State
operating permit is not removed upon submittal of the
complete CAAPP permit application. An owner or operator
of a CAAPP source seeking to make a modification to a
source prior to the issuance of its CAAPP permit shall be
required to obtain a construction and/or operating permit
as required for such modification in accordance with the
State permit program under Section 39(a) of this Act, as
amended, and regulations promulgated thereunder. The
application for such construction and/or operating permit
shall be considered an amendment to the CAAPP application
submitted for such source.
b. An owner or operator of a CAAPP source shall
continue to operate in accordance with the terms and
conditions of its applicable State operating permit
notwithstanding the expiration of the State operating
permit until the source's CAAPP permit has been issued.
c. An owner or operator of a CAAPP source shall
submit its initial CAAPP application to the Agency no
later than 12 months after the effective date of the
CAAPP. The Agency may request submittal of initial CAAPP
applications during this 12 month period according to a
schedule set forth within Agency procedures, however, in
no event shall the Agency require such submittal earlier
than 3 months after such effective date of the CAAPP. An
owner or operator may voluntarily submit its initial
CAAPP application prior to the date required within this
paragraph or applicable procedures, if any, subsequent to
the date the Agency submits the CAAPP to USEPA for
approval.
d. The Agency shall act on initial CAAPP
applications in accordance with subsection 5(j) of this
Section.
e. For purposes of this Section, the term "initial
CAAPP application" shall mean the first CAAPP application
submitted for a source existing as of the effective date
of the CAAPP.
f. The Agency shall provide owners or operators of
CAAPP sources with at least three months advance notice
of the date on which their applications are required to
be submitted. In determining which sources shall be
subject to early submittal, the Agency shall include
among its considerations the complexity of the permit
application, and the burden that such early submittal
will have on the source.
g. The CAAPP permit shall upon becoming effective
supersede the State operating permit.
h. The Agency shall have the authority to adopt
procedural rules, in accordance with the Illinois
Administrative Procedure Act, as the Agency deems
necessary, to implement this subsection.
5. Applications and Completeness.
a. An owner or operator of a CAAPP source shall
submit its complete CAAPP application consistent with the
Act and applicable regulations.
b. An owner or operator of a CAAPP source shall
submit a single complete CAAPP application covering all
emission units at that source.
c. To be deemed complete, a CAAPP application must
provide all information, as requested in Agency
application forms, sufficient to evaluate the subject
source and its application and to determine all
applicable requirements, pursuant to the Clean Air Act,
and regulations thereunder, this Act and regulations
thereunder. Such Agency application forms shall be
finalized and made available prior to the date on which
any CAAPP application is required.
d. An owner or operator of a CAAPP source shall
submit, as part of its complete CAAPP application, a
compliance plan, including a schedule of compliance,
describing how each emission unit will comply with all
applicable requirements. Any such schedule of compliance
shall be supplemental to, and shall not sanction
noncompliance with, the applicable requirements on which
it is based.
e. Each submitted CAAPP application shall be
certified for truth, accuracy, and completeness by a
responsible official in accordance with applicable
regulations.
f. The Agency shall provide notice to a CAAPP
applicant as to whether a submitted CAAPP application is
complete. Unless the Agency notifies the applicant of
incompleteness, within 60 days of receipt of the CAAPP
application, the application shall be deemed complete.
The Agency may request additional information as needed
to make the completeness determination. The Agency may
to the extent practicable provide the applicant with a
reasonable opportunity to correct deficiencies prior to a
final determination of completeness.
g. If after the determination of completeness the
Agency finds that additional information is necessary to
evaluate or take final action on the CAAPP application,
the Agency may request in writing such information from
the source with a reasonable deadline for response.
h. If the owner or operator of a CAAPP source
submits a timely and complete CAAPP application, the
source's failure to have a CAAPP permit shall not be a
violation of this Section until the Agency takes final
action on the submitted CAAPP application, provided,
however, where the applicant fails to submit the
requested information under paragraph 5(g) within the
time frame specified by the Agency, this protection shall
cease to apply.
i. Any applicant who fails to submit any relevant
facts necessary to evaluate the subject source and its
CAAPP application or who has submitted incorrect
information in a CAAPP application shall, upon becoming
aware of such failure or incorrect submittal, submit
supplementary facts or correct information to the Agency.
In addition, an applicant shall provide to the Agency
additional information as necessary to address any
requirements which become applicable to the source
subsequent to the date the applicant submitted its
complete CAAPP application but prior to release of the
draft CAAPP permit.
j. The Agency shall issue or deny the CAAPP permit
within 18 months after the date of receipt of the
complete CAAPP application, with the following
exceptions: (i) permits for affected sources for acid
deposition shall be issued or denied within 6 months
after receipt of a complete application in accordance
with subsection 17 of this Section; (ii) the Agency shall
act on initial CAAPP applications within 24 months after
the date of receipt of the complete CAAPP application;
(iii) the Agency shall act on complete applications
containing early reduction demonstrations under Section
112(i)(5) of the Clean Air Act within 9 months of receipt
of the complete CAAPP application.
Where the Agency does not take final action on the
permit within the required time period, the permit shall
not be deemed issued; rather, the failure to act shall be
treated as a final permit action for purposes of judicial
review pursuant to Sections 40.2 and 41 of this Act.
k. The submittal of a complete CAAPP application
shall not affect the requirement that any source have a
preconstruction permit under Title I of the Clean Air
Act.
l. Unless a timely and complete renewal application
has been submitted consistent with this subsection, a
CAAPP source operating upon the expiration of its CAAPP
permit shall be deemed to be operating without a CAAPP
permit. Such operation is prohibited under this Act.
m. Permits being renewed shall be subject to the
same procedural requirements, including those for public
participation and federal review and objection, that
apply to original permit issuance.
n. For purposes of permit renewal, a timely
application is one that is submitted no less than 9
months prior to the date of permit expiration.
o. The terms and conditions of a CAAPP permit shall
remain in effect until the issuance of a CAAPP renewal
permit provided a timely and complete CAAPP application
has been submitted.
p. The owner or operator of a CAAPP source seeking
a permit shield pursuant to paragraph 7(j) of this
Section shall request such permit shield in the CAAPP
application regarding that source.
q. The Agency shall make available to the public
all documents submitted by the applicant to the Agency,
including each CAAPP application, compliance plan
(including the schedule of compliance), and emissions or
compliance monitoring report, with the exception of
information entitled to confidential treatment pursuant
to Section 7 of this Act.
r. The Agency shall use the standardized forms
required under Title IV of the Clean Air Act and
regulations promulgated thereunder for affected sources
for acid deposition.
s. An owner or operator of a CAAPP source may
include within its CAAPP application a request for
permission to operate during a startup, malfunction, or
breakdown consistent with applicable Board regulations.
t. An owner or operator of a CAAPP source, in order
to utilize the operational flexibility provided under
paragraph 7(l) of this Section, must request such use and
provide the necessary information within its CAAPP
application.
u. An owner or operator of a CAAPP source which
seeks exclusion from the CAAPP through the imposition of
federally enforceable conditions, pursuant to paragraph
3(c) of this Section, must request such exclusion within
a CAAPP application submitted consistent with this
subsection on or after the date that the CAAPP
application for the source is due. Prior to such date,
but in no case later than 9 months after the effective
date of the CAAPP, such owner or operator may request the
imposition of federally enforceable conditions pursuant
to paragraph 1.1(b) of this Section.
v. CAAPP applications shall contain accurate
information on allowable emissions to implement the fee
provisions of subsection 18 of this Section.
w. An owner or operator of a CAAPP source shall
submit within its CAAPP application emissions information
regarding all regulated air pollutants emitted at that
source consistent with applicable Agency procedures.
Emissions information regarding insignificant activities
or emission levels, as determined by the Agency pursuant
to Board regulations, may be submitted as a list within
the CAAPP application. The Agency shall propose
regulations to the Board defining insignificant
activities or emission levels, consistent with federal
regulations, if any, no later than 18 months after the
effective date of this amendatory Act of 1992, consistent
with Section 112(n)(1) of the Clean Air Act. The Board
shall adopt final regulations defining insignificant
activities or emission levels no later than 9 months
after the date of the Agency's proposal.
x. The owner or operator of a new CAAPP source
shall submit its complete CAAPP application consistent
with this subsection within 12 months after commencing
operation of such source. The owner or operator of an
existing source that has been excluded from the
provisions of this Section under subsection 1.1 or
subsection 3(c) of this Section and that becomes subject
to the CAAPP solely due to a change in operation at the
source shall submit its complete CAAPP application
consistent with this subsection at least 180 days before
commencing operation in accordance with the change in
operation.
y. The Agency shall have the authority to adopt
procedural rules, in accordance with the Illinois
Administrative Procedure Act, as the Agency deems
necessary to implement this subsection.
6. Prohibitions.
a. It shall be unlawful for any person to violate
any terms or conditions of a permit issued under this
Section, to operate any CAAPP source except in compliance
with a permit issued by the Agency under this Section or
to violate any other applicable requirements. All terms
and conditions of a permit issued under this Section are
enforceable by USEPA and citizens under the Clean Air
Act, except those, if any, that are specifically
designated as not being federally enforceable in the
permit pursuant to paragraph 7(m) of this Section.
b. After the applicable CAAPP permit or renewal
application submittal date, as specified in subsection 5
of this Section, no person shall operate a CAAPP source
without a CAAPP permit unless the complete CAAPP permit
or renewal application for such source has been timely
submitted to the Agency.
c. No owner or operator of a CAAPP source shall
cause or threaten or allow the continued operation of an
emission source during malfunction or breakdown of the
emission source or related air pollution control
equipment if such operation would cause a violation of
the standards or limitations applicable to the source,
unless the CAAPP permit granted to the source provides
for such operation consistent with this Act and
applicable Board regulations.
7. Permit Content.
a. All CAAPP permits shall contain emission
limitations and standards and other enforceable terms and
conditions, including but not limited to operational
requirements, and schedules for achieving compliance at
the earliest reasonable date, which are or will be
required to accomplish the purposes and provisions of
this Act and to assure compliance with all applicable
requirements.
b. The Agency shall include among such conditions
applicable monitoring, reporting, record keeping and
compliance certification requirements, as authorized by
paragraphs d, e, and f of this subsection, that the
Agency deems necessary to assure compliance with the
Clean Air Act, the regulations promulgated thereunder,
this Act, and applicable Board regulations. When
monitoring, reporting, record keeping, and compliance
certification requirements are specified within the Clean
Air Act, regulations promulgated thereunder, this Act, or
applicable regulations, such requirements shall be
included within the CAAPP permit. The Board shall have
authority to promulgate additional regulations where
necessary to accomplish the purposes of the Clean Air
Act, this Act, and regulations promulgated thereunder.
c. The Agency shall assure, within such conditions,
the use of terms, test methods, units, averaging periods,
and other statistical conventions consistent with the
applicable emission limitations, standards, and other
requirements contained in the permit.
d. To meet the requirements of this subsection with
respect to monitoring, the permit shall:
i. Incorporate and identify all applicable
emissions monitoring and analysis procedures or test
methods required under the Clean Air Act,
regulations promulgated thereunder, this Act, and
applicable Board regulations, including any
procedures and methods promulgated by USEPA pursuant
to Section 504(b) or Section 114 (a)(3) of the Clean
Air Act.
ii. Where the applicable requirement does not
require periodic testing or instrumental or
noninstrumental monitoring (which may consist of
recordkeeping designed to serve as monitoring),
require periodic monitoring sufficient to yield
reliable data from the relevant time period that is
representative of the source's compliance with the
permit, as reported pursuant to paragraph (f) of
this subsection. The Agency may determine that
recordkeeping requirements are sufficient to meet
the requirements of this subparagraph.
iii. As necessary, specify requirements
concerning the use, maintenance, and when
appropriate, installation of monitoring equipment or
methods.
e. To meet the requirements of this subsection with
respect to record keeping, the permit shall incorporate
and identify all applicable recordkeeping requirements
and require, where applicable, the following:
i. Records of required monitoring information
that include the following:
A. The date, place and time of sampling
or measurements.
B. The date(s) analyses were performed.
C. The company or entity that performed
the analyses.
D. The analytical techniques or methods
used.
E. The results of such analyses.
F. The operating conditions as existing
at the time of sampling or measurement.
ii. Retention of records of all monitoring
data and support information for a period of at
least 5 years from the date of the monitoring
sample, measurement, report, or application.
Support information includes all calibration and
maintenance records, original strip-chart recordings
for continuous monitoring instrumentation, and
copies of all reports required by the permit.
f. To meet the requirements of this subsection with
respect to reporting, the permit shall incorporate and
identify all applicable reporting requirements and
require the following:
i. Submittal of reports of any required
monitoring every 6 months. More frequent submittals
may be requested by the Agency if such submittals
are necessary to assure compliance with this Act or
regulations promulgated by the Board thereunder.
All instances of deviations from permit requirements
must be clearly identified in such reports. All
required reports must be certified by a responsible
official consistent with subsection 5 of this
Section.
ii. Prompt reporting of deviations from permit
requirements, including those attributable to upset
conditions as defined in the permit, the probable
cause of such deviations, and any corrective actions
or preventive measures taken.
g. Each CAAPP permit issued under subsection 10 of
this Section shall include a condition prohibiting
emissions exceeding any allowances that the source
lawfully holds under Title IV of the Clean Air Act or the
regulations promulgated thereunder, consistent with
subsection 17 of this Section and applicable regulations,
if any.
h. All CAAPP permits shall state that, where
another applicable requirement of the Clean Air Act is
more stringent than any applicable requirement of
regulations promulgated under Title IV of the Clean Air
Act, both provisions shall be incorporated into the
permit and shall be State and federally enforceable.
i. Each CAAPP permit issued under subsection 10 of
this Section shall include a severability clause to
ensure the continued validity of the various permit
requirements in the event of a challenge to any portions
of the permit.
j. The following shall apply with respect to owners
or operators requesting a permit shield:
i. The Agency shall include in a CAAPP permit,
when requested by an applicant pursuant to paragraph
5(p) of this Section, a provision stating that
compliance with the conditions of the permit shall
be deemed compliance with applicable requirements
which are applicable as of the date of release of
the proposed permit, provided that:
A. The applicable requirement is
specifically identified within the permit; or
B. The Agency in acting on the CAAPP
application or revision determines in writing
that other requirements specifically identified
are not applicable to the source, and the
permit includes that determination or a concise
summary thereof.
ii. The permit shall identify the requirements
for which the source is shielded. The shield shall
not extend to applicable requirements which are
promulgated after the date of release of the
proposed permit unless the permit has been modified
to reflect such new requirements.
iii. A CAAPP permit which does not expressly
indicate the existence of a permit shield shall not
provide such a shield.
iv. Nothing in this paragraph or in a CAAPP
permit shall alter or affect the following:
A. The provisions of Section 303
(emergency powers) of the Clean Air Act,
including USEPA's authority under that section.
B. The liability of an owner or operator
of a source for any violation of applicable
requirements prior to or at the time of permit
issuance.
C. The applicable requirements of the
acid rain program consistent with Section
408(a) of the Clean Air Act.
D. The ability of USEPA to obtain
information from a source pursuant to Section
114 (inspections, monitoring, and entry) of the
Clean Air Act.
k. Each CAAPP permit shall include an emergency
provision providing an affirmative defense of emergency
to an action brought for noncompliance with
technology-based emission limitations under a CAAPP
permit if the following conditions are met through
properly signed, contemporaneous operating logs, or other
relevant evidence:
i. An emergency occurred and the permittee can
identify the cause(s) of the emergency.
ii. The permitted facility was at the time
being properly operated.
iii. The permittee submitted notice of the
emergency to the Agency within 2 working days of the
time when emission limitations were exceeded due to
the emergency. This notice must contain a detailed
description of the emergency, any steps taken to
mitigate emissions, and corrective actions taken.
iv. During the period of the emergency the
permittee took all reasonable steps to minimize
levels of emissions that exceeded the emission
limitations, standards, or requirements in the
permit.
For purposes of this subsection, "emergency" means
any situation arising from sudden and reasonably
unforeseeable events beyond the control of the source,
such as an act of God, that requires immediate corrective
action to restore normal operation, and that causes the
source to exceed a technology-based emission limitation
under the permit, due to unavoidable increases in
emissions attributable to the emergency. An emergency
shall not include noncompliance to the extent caused by
improperly designed equipment, lack of preventative
maintenance, careless or improper operation, or operation
error.
In any enforcement proceeding, the permittee
seeking to establish the occurrence of an emergency has
the burden of proof. This provision is in addition to
any emergency or upset provision contained in any
applicable requirement. This provision does not relieve
a permittee of any reporting obligations under existing
federal or state laws or regulations.
l. The Agency shall include in each permit issued
under subsection 10 of this Section:
i. Terms and conditions for reasonably
anticipated operating scenarios identified by the
source in its application. The permit terms and
conditions for each such operating scenario shall
meet all applicable requirements and the
requirements of this Section.
A. Under this subparagraph, the source
must record in a log at the permitted facility
a record of the scenario under which it is
operating contemporaneously with making a
change from one operating scenario to another.
B. The permit shield described in
paragraph 7(j) of this Section shall extend to
all terms and conditions under each such
operating scenario.
ii. Where requested by an applicant, all terms
and conditions allowing for trading of emissions
increases and decreases between different emission
units at the CAAPP source, to the extent that the
applicable requirements provide for trading of such
emissions increases and decreases without a
case-by-case approval of each emissions trade. Such
terms and conditions:
A. Shall include all terms required under
this subsection to determine compliance;
B. Must meet all applicable requirements;
C. Shall extend the permit shield
described in paragraph 7(j) of this Section to
all terms and conditions that allow such
increases and decreases in emissions.
m. The Agency shall specifically designate as not
being federally enforceable under the Clean Air Act any
terms and conditions included in the permit that are not
specifically required under the Clean Air Act or federal
regulations promulgated thereunder. Terms or conditions
so designated shall be subject to all applicable state
requirements, except the requirements of subsection 7
(other than this paragraph, paragraph q of subsection 7,
subsections 8 through 11, and subsections 13 through 16
of this Section. The Agency shall, however, include such
terms and conditions in the CAAPP permit issued to the
source.
n. Each CAAPP permit issued under subsection 10 of
this Section shall specify and reference the origin of
and authority for each term or condition, and identify
any difference in form as compared to the applicable
requirement upon which the term or condition is based.
o. Each CAAPP permit issued under subsection 10 of
this Section shall include provisions stating the
following:
i. Duty to comply. The permittee must comply
with all terms and conditions of the CAAPP permit.
Any permit noncompliance constitutes a violation of
the Clean Air Act and the Act, and is grounds for
any or all of the following: enforcement action;
permit termination, revocation and reissuance, or
modification; or denial of a permit renewal
application.
ii. Need to halt or reduce activity not a
defense. It shall not be a defense for a permittee
in an enforcement action that it would have been
necessary to halt or reduce the permitted activity
in order to maintain compliance with the conditions
of this permit.
iii. Permit actions. The permit may be
modified, revoked, reopened, and reissued, or
terminated for cause in accordance with the
applicable subsections of Section 39.5 of this Act.
The filing of a request by the permittee for a
permit modification, revocation and reissuance, or
termination, or of a notification of planned changes
or anticipated noncompliance does not stay any
permit condition.
iv. Property rights. The permit does not
convey any property rights of any sort, or any
exclusive privilege.
v. Duty to provide information. The permittee
shall furnish to the Agency within a reasonable time
specified by the Agency any information that the
Agency may request in writing to determine whether
cause exists for modifying, revoking and reissuing,
or terminating the permit or to determine compliance
with the permit. Upon request, the permittee shall
also furnish to the Agency copies of records
required to be kept by the permit or, for
information claimed to be confidential, the
permittee may furnish such records directly to USEPA
along with a claim of confidentiality.
vi. Duty to pay fees. The permittee must pay
fees to the Agency consistent with the fee schedule
approved pursuant to subsection 18 of this Section,
and submit any information relevant thereto.
vii. Emissions trading. No permit revision
shall be required for increases in emissions allowed
under any approved economic incentives, marketable
permits, emissions trading, and other similar
programs or processes for changes that are provided
for in the permit and that are authorized by the
applicable requirement.
p. Each CAAPP permit issued under subsection 10 of
this Section shall contain the following elements with
respect to compliance:
i. Compliance certification, testing,
monitoring, reporting, and record keeping
requirements sufficient to assure compliance with
the terms and conditions of the permit. Any
document (including reports) required by a CAAPP
permit shall contain a certification by a
responsible official that meets the requirements of
subsection 5 of this Section and applicable
regulations.
ii. Inspection and entry requirements that
necessitate that, upon presentation of credentials
and other documents as may be required by law and in
accordance with constitutional limitations, the
permittee shall allow the Agency, or an authorized
representative to perform the following:
A. Enter upon the permittee's premises
where a CAAPP source is located or
emissions-related activity is conducted, or
where records must be kept under the conditions
of the permit.
B. Have access to and copy, at reasonable
times, any records that must be kept under the
conditions of the permit.
C. Inspect at reasonable times any
facilities, equipment (including monitoring and
air pollution control equipment), practices, or
operations regulated or required under the
permit.
D. Sample or monitor any substances or
parameters at any location:
1. As authorized by the Clean Air
Act, at reasonable times, for the purposes
of assuring compliance with the CAAPP
permit or applicable requirements; or
2. As otherwise authorized by this
Act.
iii. A schedule of compliance consistent with
subsection 5 of this Section and applicable
regulations.
iv. Progress reports consistent with an
applicable schedule of compliance pursuant to
paragraph 5(d) of this Section and applicable
regulations to be submitted semiannually, or more
frequently if the Agency determines that such more
frequent submittals are necessary for compliance
with the Act or regulations promulgated by the Board
thereunder. Such progress reports shall contain the
following:
A. Required dates for achieving the
activities, milestones, or compliance required
by the schedule of compliance and dates when
such activities, milestones or compliance were
achieved.
B. An explanation of why any dates in the
schedule of compliance were not or will not be
met, and any preventive or corrective measures
adopted.
v. Requirements for compliance certification
with terms and conditions contained in the permit,
including emission limitations, standards, or work
practices. Permits shall include each of the
following:
A. The frequency (annually or more
frequently as specified in any applicable
requirement or by the Agency pursuant to
written procedures) of submissions of
compliance certifications.
B. A means for assessing or monitoring
the compliance of the source with its emissions
limitations, standards, and work practices.
C. A requirement that the compliance
certification include the following:
1. The identification of each term
or condition contained in the permit that
is the basis of the certification.
2. The compliance status.
3. Whether compliance was continuous
or intermittent.
4. The method(s) used for
determining the compliance status of the
source, both currently and over the
reporting period consistent with
subsection 7 of Section 39.5 of the Act.
D. A requirement that all compliance
certifications be submitted to USEPA as well as
to the Agency.
E. Additional requirements as may be
specified pursuant to Sections 114(a)(3) and
504(b) of the Clean Air Act.
F. Other provisions as the Agency may
require.
q. If the owner or operator of CAAPP source can
demonstrate in its CAAPP application, including an
application for a significant modification, that an
alternative emission limit would be equivalent to that
contained in the applicable Board regulations, the Agency
shall include the alternative emission limit in the CAAPP
permit, which shall supersede the emission limit set
forth in the applicable Board regulations, and shall
include conditions that insure that the resulting
emission limit is quantifiable, accountable, enforceable,
and based on replicable procedures.
8. Public Notice; Affected State Review.
a. The Agency shall provide notice to the public,
including an opportunity for public comment and a
hearing, on each draft CAAPP permit for issuance, renewal
or significant modification, subject to Sections 7(a) and
7.1 of this Act.
b. The Agency shall prepare a draft CAAPP permit
and a statement that sets forth the legal and factual
basis for the draft CAAPP permit conditions, including
references to the applicable statutory or regulatory
provisions. The Agency shall provide this statement to
any person who requests it.
c. The Agency shall give notice of each draft CAAPP
permit to the applicant and to any affected State on or
before the time that the Agency has provided notice to
the public, except as otherwise provided in this Act.
d. The Agency, as part of its submittal of a
proposed permit to USEPA (or as soon as possible after
the submittal for minor permit modification procedures
allowed under subsection 14 of this Section), shall
notify USEPA and any affected State in writing of any
refusal of the Agency to accept all of the
recommendations for the proposed permit that an affected
State submitted during the public or affected State
review period. The notice shall include the Agency's
reasons for not accepting the recommendations. The
Agency is not required to accept recommendations that are
not based on applicable requirements or the requirements
of this Section.
e. The Agency shall make available to the public
any CAAPP permit application, compliance plan (including
the schedule of compliance), CAAPP permit, and emissions
or compliance monitoring report. If an owner or operator
of a CAAPP source is required to submit information
entitled to protection from disclosure under Section 7(a)
or Section 7.1 of this Act, the owner or operator shall
submit such information separately. The requirements of
Section 7(a) or Section 7.1 of this Act shall apply to
such information, which shall not be included in a CAAPP
permit unless required by law. The contents of a CAAPP
permit shall not be entitled to protection under Section
7(a) or Section 7.1 of this Act.
f. The Agency shall have the authority to adopt
procedural rules, in accordance with the Illinois
Administrative Procedure Act, as the Agency deems
necessary, to implement this subsection.
9. USEPA Notice and Objection.
a. The Agency shall provide to USEPA for its review
a copy of each CAAPP application (including any
application for permit modification), statement of basis
as provided in paragraph 8(b) of this Section, proposed
CAAPP permit, CAAPP permit, and, if the Agency does not
incorporate any affected State's recommendations on a
proposed CAAPP permit, a written statement of this